Text 3. Money

Money is used for buying or selling goods, for measuring value and for storing wealth. Almost every society now has a money econo­my based on coins and paper notes of one kind or another. However, this has not always been true. In primitive societies a system of barter was used. Barter was a system of direct exchange of goods. Somebody could exchange a sheep, for example, for anything in the market place that they considered to be of equal value. Barter, however, was a very unsatisfactory system because people's precise needs seldom coincid­ed. People needed a more practical system of exchange, and various money systems developed based on goods which the members of a society recognized as having value. Cattle, grain, teeth, shells, feath­er, salt, tobacco have been used. Precious metals gradually took over because, when made into coins, they were portable, durable, recog­nizable and divisible into larger and smaller units of value.

A coin is a piece of metal, usually disc-shaped, which bears lettering, designs or numbers showing its value. Until the eighteenth and nine­teenth centuries coins were given monetary worth based on the exact amount of metal contained in them, but most modern coins are based on face value, the value that governments choose to give them, irrespective of the actual metal content. Coins have been made of gold (Au), silver (Ag), copper (Cu), aluminium (Al), nickel (Ni), plastic and in China even from pressed leaves. Gold proves to be the most popular. Since civiliza­tion began gold has been regarded as a symbol of power and wealth. In many societies gold was seen as a magic substance which could protect people against illness or evil spirits. Mankind never seems to have enough gold and the search for it has driven men mad. The need to search for gold has been compared to a disease, and is called 'gold fever'.

Most governments now issue paper money in the form of notes, which are really 'promises to pay'. Paper money is obviously easier to handle and much more convenient in the modern world. Cheques, bank­ers' cards, and credit cards are being used increasingly and it is possible to imagine a world where 'money' in the form of coins and paper currency will no longer be used.

EXERCISES

Exercise 1.Write down the questions for these answers.

1. Money is used for buying or selling goods, for measuring value and for storing wealth.

2. In primitive societies a system of barter was used.

3. Barter is a system of direct exchange of goods.

4. Barter was not a very practical system.

5. Cattle, grain, teeth, shells, feath­er, salt, tobacco were used instead of money.

6. People started to make coins from precious metals because they were portable and durable.

7. A coin is a disc-shaped piece of metal.

8. Coins have been made of gold (Au), silver (Ag), copper (Cu), aluminium (Al), nickel (Ni), plastic and in China even from pressed leaves.

9. Gold is a symbol of power and wealth.

10. 'Gold fever' is the need to search for gold.

11. Paper money is more convenient then coins.

12. Cheques, bank­ers' cards, and credit cards are becoming very popular.

13. It is possible that one day 'money' in the form of coins and paper currency will no longer be used.

Exercise 2. Explain the meaning:

1. money econo­my

2. system of barter

3. precious metals are portable

4. precious metals are durable

5. precious metals are recog­nizable

6. precious metals are divisible into larger and smaller units of value

AMERICAN MONEY

American dollar is subdivided into one hundred cents. The dollars are issued by the Federal Reserve System, es­tablished by Congress in 1913. All the banknotes bear the words: In Cod We Trust.

On the face of American dollars one can see the por­traits of the following famous persons:

• George Washington (1732—1799), the first President of the United States of America, who gave his name to the capital of the country. George Washington became the first President after the successful war of 13 British colonies for independence. After they won the war they formed 13 states and united to make the United States of America. Thus Independence was proclaimed on July 4, 1776.

• Abraham Lincoln (1809—1865), who was President from 1861 to 1865 after the war between the northern and southern states. It was he who proclaimed freedom of slaves of the south.

• Alexander Hamilton (1755—1804), a famous American statesman, who fought in the Independence War together with gen­eral George Washington. Later he became the first Secretary of the Treasury.

• Andrew Jackson (1767—1845), who was President of the USA from 1829 to 1837, when Texas won independence from Mexico.

• Ulysses Grant (1822—1885), who was President of the USA from 1869 to 1877 when the Centennial Exposition was held in Philadelphia.

• Benjamin Franklin (1706—1790), a very popular public figure, writer, diplomat and scientist. It was he who invented bifocal spectacles among many other things.

On the back of banknotes various famous buildings are a lured, such as:

• Lincoln Monument, one of the monuments in Washington

• US Treasury Building, in Washington

• White House, house of every President, except George Wash­ington, who only planned the capital of the USA.

• US Capitol, which houses the Senate and the House of Representatives

• Independence Hall, in Philadelphia, where Independence of the 13 British colonies was proclaimed.

EXERCISES

Exercise 1. Translate into English:

1. Именно он стал первым президентом страны.

2. Это его портрет изображен на оборотной стороне этой банкноты.

3. Именно в 1999 г. большинство стран Евросоюза перешли на евро.

4. В этой, да именно в этой стране началось производство стали.

5. Именно в Лондоне в 1851 г. проводилась первая всемирная выставка.

Exercise 2. Choose the correct voice form of the Verb given in brackets:

1. The American dollar (subdivides, is subdivided) into 100 cents.

2. The English pound (subdivides, is subdivided) into 100 pence.

3. The dollar (issues, is issued) by the Federal Reserve System.

4. On the back of many American banknotes various famous buildings (featured, are featured).

5. It was Abraham Lincoln who (proclaimed, was proclaimed) freedom of slaves.

6. All the banknotes (bear, are borne) the words «In God We Trust».

7. The Federal Reserve System (established, was established) by Congress in 1913.

8. Independence of the States (proclaimed, was proclaimed) on July 4,1776.

Exercise 3. Sum up what the text says about:

the issuer of American dollar notes the inscription on the face

the famous buildings on the back American coins

Exercise 4. Write what you know about the famous persons, whose portraits are featured on the face of American dollars: George Washington, Abraham Lincoln and Benjamin Franklin.

Exercise 5. Say what is unscripted on the face and on the back of Russian banknotes.