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MONEY AND BANKING
PART I. MONEY
MEDIUM OF EXCHANGE
1. Division of labor and exchange. The study of money credit and banking is a division of the science of economics. Economics is the science which treats of the production, distribution, consumption and exchange of wealth. In other words, it is the science which deals with man in his business relations. Wealth is the general economic term used to include all things which satisfy human wants or which, as the economists say, have the quality of utility. In the production of wealth three primary factors are involved-land (including all natural resources), labor and capital. Economists now generally recognize a fourth factor, the entrepreneur or enterpriser, who brings together the other factors in the productive process.
The coöperation of these factors through the division of labor is a fundamental characteristic of modern industrial society. The progress of civilization, especially since the Industrial Revolution of the latter part of the eighteenth century with its introduction of machinery and power, has been marked by an ever increasing subdivision of labor and by greater specialization of employment. In a primitive society each family or community provided for itself the simple necessaries of life-food, clothing, shelter. to-day it would be hard to find among civilized peoples either a family or a community that attempts to supply all its own needs. In earlier days the village shoemaker made with his hands and a few simple tools a complete pair of