People place a lot of importance on
money, which is understandable. Bartering was once the major method
of payment. In some eras something as simple as salt or spices were
worth more than gold. The more rare an object the more its worth in
comparison to other goods and services. The more rare the tradesmen,
the more their worth.
People can't provide everything they
need for themselves. Let's say that a farmer needs a cow for milk.
The cow cost ten chickens. Most cows are raised in a different
village so the farmer has to haul the ten chickens to that village
for trade. Most times he takes 11 chickens because one might die on
the way.
Someone decided a long time ago that
gold coins were a lot easier to carry around. One gold coin is worth
10 chickens. The farmer doesn't need a wagon to carry a single gold
coin with which to buy the cow. He simply sold ten chickens to a
village that was closer. Sounds pretty simple doesn't it? Well it was
until the bankers came along.