Matters 8

Commerce, Banking and Economics

People live in proximity to one another. They rely on them for small, personal actions and services. Help with building a fence, working some farm tasks, sewing clothes, sharing or trading produce, celebrating special events and sharing meals and their preparation to mark the festivities. For larger transactions, we buy and sell things to one another. This micro commercial activity expands to the community, and then to larger regions and markets.

Trading on scale requires a means of compensating trading partners in some form of money. In early days such ‘money’ was in the form of gold, precious stones, and similar small entities of value. Establishing stable values for each was a problem, so currency and coinage were created by state governments, soon followed by the national government in 1750. Alexander Hamilton came up with the idea for a Federal Reserve Bank and system. That established the means of managing the national economy through these functions:

·         Conduct monetary policy to promote jobs and growth of same

·         Stabilize financial transactions among the states and internationally

·         Promote stability of individual financial institutions, banks

·         Foster payment and settlement system safety among banks

·         Protect consumers and community development through regulations and research

Of course, financial transactions were also accomplished by simply trading goods and services with other goods and services. Many farming communities perfected this form of commerce, expanding it to other towns and counties within their region. Statewide commerce and interstate transactions demanded a larger system, thus the creation of the national banking system and Federal Reserve system.

International trade agreements were facilitated by the Federal Reserve, and this supported shipping and trade networks. Over the years industrial standards were created that formed trust and credibility for most commercial activity.

A system of economics emerged from all of this requiring coordination and operational management. The state and national governments are essential partners in this system. This is our governance system at work for all of our benefit. And it is led on a national scale by the federal government.

September 19, 2025

Comments

Post a Comment

Popular posts from this blog

Intimacy

As we mature, we become deeply involved in relationships. Some of this is basic family relations – siblings, parental – and the like. Next is friends who enter our homes and we theirs. Neighbors, classmates, mutual hobbyists and so forth. Then we develop friendships that go much deeper. We comfort one another when we are hurting physically or emotionally. We discuss the matters of life and learn much more about ourselves and each other. We can even anticipate how others will react to various situations and stimuli. Good friendships do not spread to everyone we know. No, good friendships are special, close and deeply personal. We focus attention and brainpower on these few friends. Some special relationships focus on specific topics of interest and importance. Yes, we have specialized friendships. Most common. But one day, we get to know one person very well. An emotional connection forms with deep roots. A need to know the person more fully expands in personal ways. We sense this b...
Read more

Bits & Pieces

Pie: Apple pie more specifically. With Thanksgiving just passed, many of us enjoyed a good apple pie. Sure, there was pumpkin to accompany the turkey, but in our family multiple pies are offered in the holidays. Apple is surely one. Pecan, pumpkin and others, too. But I almost always choose apple. When I was in college, I was asked what kind of pie did I eat most often. In front of my mom, I answered apple, because I was always looking for a pie as good as mom’s own. Of course my mother was pleased, but it was a true statement just the same. When I was married, Ann’s pie was darned good. Her mother’s recipe. But we fiddled with the recipe until it took on its own generational name, and boy, was it good! Today I still order apple pie for dessert because I am always looking for a great pie to challenge our family recipes. I rarely do find such a prize. Do others do the same? Do you search for a great pie of choice, continually? If you do, what’s your story? Why do you do this? ...
Read more

Remembering Tom Sherlock

Tom Sherlock died on Wednesday, April 3rd. He was 65 years old and did not survive a heart surgery. That was his unexpected end and sad enough. But there is more to his story. Tom joined Dan Schuyler and George Safford to create what became the Village Chronicles, a weekly newspaper serving Warrenville, Illinois. That paper expanded to serve Winfield and then West Chicago. The paper published for eight years and built a good reputation for itself. Tom served the paper in several ways. He was our information technology guru, provided hardware and software to support the paper's operations. He was our sole bookkeeper, accountant and financial manager. He designed our distribution process and provided office space for meetings and layout and typesetting. His efforts supported the work of 32 volunteers who wrote and reported on the communities we served.  The newspaper broke even financially most of the time, but it was a struggle. Tom managed to find money to keep the newspaper afloat...
Read more