The Island of Stone Money

"The Island of Stone Money". The Economic Journal. 25 (98): 281. June 1915. doi:10.2307/2222196. ISSN 0013-0133.

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Abstract: The article "The Island of Stone Money," published in The Economic Journal in June 1915, explores the unique monetary system of the island of Uap (Yap), where stone disks called "fei" ( or Rai Stones) are used as currency. These stones are valued based on their size, quality, and the labor involved in transporting and shaping them. A notable feature of this system is how value is retained even if the stones are not physically accessible, as demonstrated by a story of a valuable fei that remained recognized as wealth despite lying at the bottom of the sea after being lost in a storm. The article highlights the philosophical implications of such a system, comparing it to modern monetary practices where physical possession is not essential for wealth recognition, akin to the way gold reserves or paper certificates represent value without physical exchange.

Additionally, the article describes the practical aspects of using such heavy stones as currency, including their deterrent effect on theft and their role in a community-initiated public works project ordered by the government, which marked certain stones as a form of tax payment. This system is presented as an example of logical and philosophical currency practices, suggesting that modern economies might learn from the islanders' approach.

Extra details:

OpenAlex: W4255151600
MAG: 192419731
CorpusID: 173816250