>>60596446 (OP)"If nothing else, this approach helps solve one of the obvious mys-
teries of the fiscal policy of so many early kingdoms: Why did they
make subjects pay taxes at all? This is not a question we're used to
asking. The answer seems self-evident. Governments demand taxes be-
cause they wish to get their hands on people's money. But if Smith was
right, and gold and silver became money through the natural workings
of the market completely independently of governments, then wouldn't
the obvious thing be to j ust grab control of the gold and silver mines?
Then the king would have all the money he could possibly need. In
fact, this is what ancient kings would normally do. If there were gold
and silver mines in their territory, they would usually take control of
them. So what exactly was the point of extracting the gold, stamping
one's picture on it, causing it to circulate among one's subjects-and
then demanding that those same subjects give it back again ?
This does seem a bit of a puzzle. But if money and markets do not
emerge spontaneously, it actually makes perfect sense. Because this is
the simplest and most efficient way to bring markets into being. Let
us take a hypothetical example. Say a king wishes to support a stand-
ing army of fifty thousand men. Under ancient or medieval conditions,
feeding such a force was an enormous problem-unless they were on
the march, one would need to employ almost as many men and ani-
mals j ust to locate, acquire, and transport the necessary provisions. 17
On the other hand, if one simply hands out coins to the soldiers and then demands that every family in the kingdom was obliged to pay
one of those coins back to you, one would, in one blow, turn one's
entire national economy into a vast machine for the provisioning of
soldiers, since now every family, in order to get their hands on the
coins, must find some way to contribute to the general effort to provide
soldiers with things they want."