DEPOSITORY MONEY

Money quantity is eventually determined by the commodities’ market value, and so money is depository money. The counting character of symbolic money makes them capable for any quantitative variation; however in the constant readjustment of prices, the exchange becomes impossible by way of the double barter; thus the transactions they used to facilitate as commodity money are no longer feasible. Exchange of goods for money is done in order to exchange money for goods later on, yet the variation of the quantity of money makes them unsuited for the task. So a variation of the quantity of money should be roughly conjugated with the variation in the commodities priced by them. The internal checks and balances of credit grant that.

Historical Backdrop
• GEORG SIMMEL The Philosophy of Money: money function and substance.
• JOHN COMMONS Legal Foundations of Capitalism: money is the medium for changing hopeful assets into realized assets.