Instead, we simply present the papyrus for exchange on demand.” We won’t have to lug fishes, apples and salt around all the time. This will make it easier for us to trade among ourselves. (Papyrus grows in near unlimited quantities nearby, to the obvious benefit of Pete).” Pete continues “One papyrus mark will represent 1 fish or 5 apples or 2 bags of salt (equivalent to current barter exchange rates).
One day Pete says: “Instead of fish, from now on I will give you pieces of papyrus with numbers marked on them. You’d exchange your salt for Pete’s fishes and Tom’s apples, while they would exchange fishes and apples between them. Imagine that you live on a small island mining the local salt mine, together with Pete the fisherman and Tom the apple grower.
