J. К. Galbraith begins his book on the history and current problems of money with the following statement: “There is much that is diverting in the history of money, but even more that provides a rich reflection of human behavior and human folly.”

The train has stopped in the night. It is the end of winter, 1920; it is very cold, about 25 degress below zero, some hundred kilometers west of Irkutsk. Along the train soldiers mount guard; ahead, a party of the detachment is clearing the track. Many of the soldiers have makeshift bandages around their wrists and feet: the Siberian frost has taken its toll. There is no question, however, of withdrawing the guard or stopping the work. This train is the most precious treasure of the Soviet. Republic, transporting the greater part of the State gold reserves: 355 m. tons. Previously housed in the vaults of the Kazan Bank in Tartary by the Tsarist government, it was removed in 1918 by admiral Kolchak; the greatest coup in history! Not that it brought the admiral any good luck: in Siberia, at the height of the civil war, the richest man in the world was only able to get a few shipments of gold through to Vladivostok, to pay his debts to the Americans and buy arms from them. And then Kolchak died: he was shot on February 7th, the gold now returning to Kazan.

The special links between money and history transcend that routine course of events with which are associated the great - majority of the works of mankind. It is rare to come across articles that since their initial manufacture have preserved their form almost intact for twenty-five centuries, and thus for almost the entire historical span of the civilized world, while playing an identical role in the lives of societies as diverse as those of Europe and the whole of Asia. It is rare, furthermore, to find articles that are of such generalized use and interest, often even the source of common feelings. Finally, similar articles are rare, if they exist at all, which—as is the case with money—may be just as closely connected with the great currents of the political, economic and social history of entire nations and continents as with the personal fates of individuals and families: in other words, articles whose presence might equally well record the succession of epochs as the passage of days.

Magic and religion are at the origin of the concept of money as a unit for measuring value. Actually, they determined the first forms money took: precious objects, engraved stones, amulets and talismans which conferred a special power, within a social group, on the one who possessed them. In time, this power came to include the power of acquisition in commercial terms, but its original ties with magic were never lost. Aristotle clearly saw the relationship between a certain concept of money (in Politica) and a new ethical concept as a corrective for the imbalances within a social community (in Ethica Nicomachea). If we look closely, we see that this ethical concept is not in opposition to the former but emphasizes the double aspect of the idea of money in antiquity, an idea which has survived, with some modifications, in Christianity and the modern era.

The history of money is several thousand years old., since, it is said, the Chinese first put coins into circulation in about 1100 B.C.

Many things have passed as money: salt in Abyssinia, tea-bricks in Asia, sugar in the West Indies, barrels of oil in Texas … and metals everywhere. The list seems endless. However, as transactions increased, wealth accumulated, and states levied taxes, such proto-moneys moved from the simple “double coincidence of wants” into more rational and complex forms. They catered for a market or hierarchy of markets. “Money,” said Carl Menger, “is not a political invention.”

The growing contradictions inherent in capitalism are concentrated, as though at a focal point, in the monetary field—the most, vulnerable point in the whole capitalist economy. The extended period of the general crisis of capitalism is punctuated by periodic bursts of monetary crisis.