Can Money Be Found Along the South Bay Beaches? The History of Shell Money By Author, Speaker, Expert Fred Fuld III
Can Money Be Found Along the South Bay Beaches? The History of Shell Money
By Author, Speaker, Expert Fred Fuld III
Do you know what the earliest form of money was? It was the cowry (also spelled cowrie) shell, which comes from the monetaria moneta small sea snail species. Not all cowries were considered money, just the small white or beige varieties.
Cowries came into use as money thousands of years ago and were used as currency in Asia, India, Africa and North America. As a matter of fact, cowries were used in ancient Egypt in 3100 BC. China began using cowries in 1000 BC.
Most of the shells used in early trade originated in the Maldives, an island country in the Indian Ocean.
So why were cowries chosen by traders? In order for something to be considered money, it has to have at least three characteristics:
• A medium of exchange
• A common unit of value
• A store of value
The cowries fit these requirements. They were items that could be exchanged for something else; because each shell was relatively the same size and color, they became a common way to measure value of something; and if someone had many of these shells, they could be stored without losing value (unlike milk or a banana, for example).
In addition, cowries had other benefits. First, due to their size, shape, and color, they have uniformity. They are small, which provides portability. It is easier to carry 20 shells in a pouch than carrying 20 spears or 20 canoes.
They are durable, so they won’t wear out. Cowries are also easily counted. Going back to the milk example, if a bowl of milk was used as money, then how much is a bowl? Suppose your bowl and my bowl differ in size. If I want to trade some of my milk, how do I measure it? You can see how little shells make it much easier to determine quantities.
Although not a big problem in early days, cowries defy counterfeiting. Who wants to go to the trouble of recreating little shells?
Cowries had the big advantage of acceptability. Traders in most continents readily accepted the shells. Another advantage was the limited supply of these shells in most countries. With a limited amount available, it helped maintain the value of the cowries.
The beauty of the shells and the fact that they could be converted into other uses, such as jewelry, made them popular forms of exchange. Some shells were even used to make masks.
Finally, and it may not have been much of a factor in the early days, but you never know, is that cowry shells had anonymity, unlike modern day checking accounts where your money is diligently tracked. So if someone wanted to spend some shells, there was no traceability of where the shells came from previously, or who spent how many shells for whatever was purchased.
So while you are walking along the beaches of the South Bay, keep your eyes open. Maybe you can find some money in the form of shells.
About the author:
Fred Fuld III is a financial historian who grew up on the Palos Verdes Peninsula. He is the author of several books,
If you are looking for great gifts, you can click on the following links to his books:
Beach Detective: Exploding Surfboard (a mystery novel set in Redondo Beach)
He was a former executive in the financial services industry who started out working as a stockbroker, and later as a market maker on the options floor of the Pacific Stock Exchange. He then became vice president of a San Francisco-based investment management firm. He also worked as an adjunct professor for the College of Business of California State University East Bay.
He is the publisher of WallStreetNewsNetwork.com and has written numerous articles for various publications, including Friends of Financial History Magazine and the Bond and Share Society Journal. Television appearances include CNBC, Fox Business News, and Globo TV.
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