The paper
promise to pay became a bank-note, passed from hand to hand. It had no
intrinsic value, but as the money lender promised to pay cash for the
note on demand, it was accepted in payment of debts or for the purchase
of commodities.
When a shirt-maker turns out a product and exchanges it for a pair of
shoes made by a shoemaker there are no overhead costs. Each producer
adds to his wardrobe an item that makes his life more satisfactory.
Examples of simple barter are seldom found in market economies.
Civilized society assembles quantities and varieties of goods and
services in the market place, invites consumers to choose among the
wares and provides money to make transactions quick and easy. Civilized
society supplements money with credit on the principle: buy and use
today; pay tomorrow. Civilization goes beyond these bare essentials of
merchandizing by furnishing transportation and communication, making
long term loans at interest, writing insurance, developing the
techniques of accounting and management. Customers who visit the market
have basic human needs--the necessities of life. Beyond these
necessaries, there are conveniences, comforts, luxuries. The markets of
civilization cover the entire range of human needs and human wants from
necessaries to luxuries.
Civilized merchandizers take two other steps aimed to activate
consumption. They develop new lines of merchandise that will have more
customer appeal, leading to new wants.
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