Key Arguments

• He defines nonchartal means of exchange and payment as those "in natura" and differentiates them technologically and economically: "Nonchartal means of exchange and payment are those that are in natura. These can be differentiated as follows: a) technologically ... b) economically: according to their employment—"
• He distinguishes token from substantial money by whether their own material value matters: "Money and means of exchange and payment are tokens (zeichenmäßig) insofar as they do not (as a rule, no longer) possess value on their own account beyond their use as a means of exchange or of payment; and substantial (stoffmäßig), insofar as their material valuation is, or can be, influenced by estimation of their employability as usable goods."
• He divides money into coin and paper: "Money is either a) monetary (coinage) or b) paper (legal instrument)."
• He introduces three ideal types of coin depending on how issuance is oriented: "Coin will be called 1. free money or commercial money (Verkehrsgeld) ... 2. restricted or administrative money ... 3. regulated if, although restricted, the nature and extent of the creation of money is effectively regulated by norms."
• He differentiates paper instruments into circulating medium and certificate depending on convertibility and cover: "A legal instrument functioning as paper money will be called a circulating medium if its acceptance as “provisional” money is oriented to the Chance that its exchange on demand for “definitive” coin or a given weight of monetary metal is secured under all normal conditions. It is called a certificate if this is defined by regulations securing complete cover in coin or metal for reserve holdings."
• He defines scales of exchange/payment as fixed tariffs among non‑monetary means: "Scales of exchange or payment will refer to the conventionally or legally obligatory reciprocal values of particular means of exchange and payment in natura within an organisation, laid down as a fixed tariff."
• He defines currency, monetary material, currency metal, monetary tariff, and currency relation as distinct but related concepts tied to a monetary organisation’s decisions: "Currency is the money form that a monetary organisation endows as such as a means of payment with unlimited validity; monetary material is the material from which a money form is made; and currency metal is the same in the case of money used in commerce. The monetary tariff is the valuation underlying the division and denomination of money forms differing in natural material or administrative uses; the currency relation is the same with regard to money used in commerce but being composed of differing materials. Intercurrency means of payment is that means of payment that ultimately (if payment is not deferred) serves to settle transfers between different monetary authorities."

Source Quotes

Means of exchange employed in transactions involving nonmembers of the group will be called “external means of exchange.” Nonchartal means of exchange and payment are those that are in natura. These can be differentiated as follows: a) technologically 1. with respect to the natural good that they represent (especially jewellery, clothing, useful objects, and apparatus); or 2. according to their use or otherwise by weight (pensatorisch);22 b) economically: according to their employment— 1. primarily for purposes of exchange or of status (the prestige conferred by ownership); 2. primarily as a means of domestic or foreign exchange, or as a means of payment.

These can be differentiated as follows: a) technologically 1. with respect to the natural good that they represent (especially jewellery, clothing, useful objects, and apparatus); or 2. according to their use or otherwise by weight (pensatorisch);22 b) economically: according to their employment— 1. primarily for purposes of exchange or of status (the prestige conferred by ownership); 2. primarily as a means of domestic or foreign exchange, or as a means of payment. Money and means of exchange and payment are tokens (zeichenmäßig) insofar as they do not (as a rule, no longer) possess value on their own account beyond their use as a means of exchange or of payment; and substantial (stoffmäßig), insofar as their material valuation is, or can be, influenced by estimation of their employability as usable goods. Money is either a) monetary (coinage) or b) paper (legal instrument).

Money and means of exchange and payment are tokens (zeichenmäßig) insofar as they do not (as a rule, no longer) possess value on their own account beyond their use as a means of exchange or of payment; and substantial (stoffmäßig), insofar as their material valuation is, or can be, influenced by estimation of their employability as usable goods. Money is either a) monetary (coinage) or b) paper (legal instrument). Paper money tends to conform to the pattern of monetary coinage, or its nominal values are historically related to such coinage.

Paper money tends to conform to the pattern of monetary coinage, or its nominal values are historically related to such coinage. Coin will be called 1. free money or commercial money (Verkehrsgeld) when at the initiative of a possessor of monetary material an issuing office is prepared to transform it into any desired amount of chartal coinage, hence such payment is oriented to exchanging parties’ need for means of payment; 2. restricted or administrative money if transformation into chartal form depends primarily on the agreement of an organisation that, while formally free, is primarily oriented to the material financial needs of the group’s administrative executive, and is effected at its will; 3. regulated if, although restricted, the nature and extent of the creation of money is effectively regulated by norms. A legal instrument functioning as paper money will be called a circulating medium if its acceptance as “provisional” money is oriented to the Chance that its exchange on demand for “definitive” coin or a given weight of monetary metal is secured under all normal conditions.

Scales of exchange or payment will refer to the conventionally or legally obligatory reciprocal values of particular means of exchange and payment in natura within an organisation, laid down as a fixed tariff. Currency is the money form that a monetary organisation endows as such as a means of payment with unlimited validity; monetary material is the material from which a money form is made; and currency metal is the same in the case of money used in commerce. The monetary tariff is the valuation underlying the division and denomination of money forms differing in natural material or administrative uses; the currency relation is the same with regard to money used in commerce but being composed of differing materials.

Currency is the money form that a monetary organisation endows as such as a means of payment with unlimited validity; monetary material is the material from which a money form is made; and currency metal is the same in the case of money used in commerce. The monetary tariff is the valuation underlying the division and denomination of money forms differing in natural material or administrative uses; the currency relation is the same with regard to money used in commerce but being composed of differing materials. Intercurrency means of payment is that means of payment that ultimately (if payment is not deferred) serves to settle transfers between different monetary authorities.

The monetary tariff is the valuation underlying the division and denomination of money forms differing in natural material or administrative uses; the currency relation is the same with regard to money used in commerce but being composed of differing materials. Intercurrency means of payment is that means of payment that ultimately (if payment is not deferred) serves to settle transfers between different monetary authorities. Every new ordinance of a monetary organisation is inevitably based on the fact that particular means of payment have been used for debt.

Key Concepts

• Nonchartal means of exchange and payment are those that are in natura.
• Money and means of exchange and payment are tokens (zeichenmäßig) insofar as they do not (as a rule, no longer) possess value on their own account beyond their use as a means of exchange or of payment; and substantial (stoffmäßig), insofar as their material valuation is, or can be, influenced by estimation of their employability as usable goods.
• Money is either a) monetary (coinage) or b) paper (legal instrument).
• Coin will be called 1. free money or commercial money (Verkehrsgeld) when at the initiative of a possessor of monetary material an issuing office is prepared to transform it into any desired amount of chartal coinage, hence such payment is oriented to exchanging parties’ need for means of payment; 2. restricted or administrative money if transformation into chartal form depends primarily on the agreement of an organisation that, while formally free, is primarily oriented to the material financial needs of the group’s administrative executive, and is effected at its will; 3. regulated if, although restricted, the nature and extent of the creation of money is effectively regulated by norms.
• Currency is the money form that a monetary organisation endows as such as a means of payment with unlimited validity; monetary material is the material from which a money form is made; and currency metal is the same in the case of money used in commerce.
• The monetary tariff is the valuation underlying the division and denomination of money forms differing in natural material or administrative uses; the currency relation is the same with regard to money used in commerce but being composed of differing materials.
• Intercurrency means of payment is that means of payment that ultimately (if payment is not deferred) serves to settle transfers between different monetary authorities.

Context

§6, middle definitional paragraphs, where Weber systematises various forms of money, coin, paper instruments, and related monetary concepts for later sociological analysis.