If you sit and think in your mind how the government come about money then you’d be amazed that its really a long story that we can’t cover in this topic…probably next. Well, to cut it whole shorter, Government came about money and enforces on the citizens…just see the government as a little god that enforces a particular type of law which must be followed.
When the first money was used back in the 618-907 during the Chinese Tang dynasty, it wasn’t generally accepted in the whole world by other giant nations and continents of the world then.
The people’s mind were tossed from their gold and silver money and enforced with the use of the paper/coins money.
This is it:
The practises of paper money later on spread to the European nations during the 17th century a time when the Chinese who were the ancient users were already getting into financial trouble since the bills made are more than its usage.
The United States Department of Treasury for example first introduced the paper money into the system back in the year 1862. This was actually an act to cover up for both the shortage of coins in circulation and to finance the civil war back then.
In Nigeria, the issue of trade by batter was the vogue. Since monarchs were ruling, this system was far more beneficent to even the poor because its easy for them to take their goods to the person that will exchange it for something else. Shortly before the slave trade, Cowries were introduced as the formal money especially in the southern part of the country. Although migrants do come and business transactions do take place in form of trade – by – batter but yet, within a western territory (for example, the old Oyo empire) simply uses this system. Some other means of money usage are “Iwofa” that’s a Yoruba word which means “Servicing until the money is due.” let me explain that better. This act is practised when someone is owing another person(Could be products such as yam etc). If that person couldn’t pay based on the time limit set, he would either go back to that person or send his child to serve the creditor until the service meets up with the money. At times, marriage could be negotiated.
The West Africa Currency board was responsible in currency issuing for Nigeria from 1912 – 1959 although Cowries and Manilas have been used earlier.
How its made:
Since every nation now produces its own currency, therefore a body was needed to enforce and carry out the duty…within such body lies the printing department usually the “Central banks” that does the printing on a daily, weekly or monthly basis. But this printings are usually regulated to ensure good circulation so as not to cause inflation/deflation.
The Coins are usually made of copper and another element, such as zinc or nickel. Currency paper is composed of 25 percent linen and 75 percent cotton. Red and blue synthetic fibers of various lengths are distributed evenly throughout the paper. Before World War I these fibers were made of silk.
The amount of currency made (Printed) daily varies by country. For example in the United States’ Bureau of Engraving and Printing produces about 38million notes each day with an approximate value of nearly $541 million.