1. Paper money is bigger than metal money!

2. But if you have much of it, metal money is hard to carry around.

3. Because large sum of metal money is heaved and inconvenient to handle, government issue paper money.

4. Metal money was certainly better than salt or shell or stone money.

5. Second, in addition to prevailing in the Tang dynasty bronze coin, there are gold and silver to mint coins, the development of the physical form of metal money.

6. This paper considers that the above-mentioned theories is not correct. The former is true when the money is metal money and it is false when the money is credit money.

7. According to their value foundation, Legaltender can be divided into Legal Metal Money and Fiat Money.