What Is Money?
It is quite difficult to give a broad definition of money that will be understood by all, for in different ages and lands many things have been used as money besides the coins and bills which we think of only when we think at all what money is. Anything that passes freely from hand to hand in a community in the payment of debts and for goods purchased, accepted freely by the person who offers it without any reference to the person who offers it, and which can be in turn used by the person accepting it to give to some one else in payment of debt or for the purchase of goods, is money. This is rather a long sentence and perhaps difficult to understand, and so we will try to analyze what this means. If some one offered you a pretty stone as money in payment of a debt, it would be as good as any kind of money if you in turn could pass it on to any other person to whom you owed a debt or in payment of something you bought. The stone might appear to you to be valuable but it would not be good money unless you could count on every one else in the community accepting it at the same value. If everybody accepts it at the same value, it is as good as any kind of money. So that anything which is acceptable to the people in any community as a unit of value to pay debts, is good money, provided everybody thinks so and accepts it that way. In this case, then any kind of substance might become money provided it was used and accepted by everyone.