Meaning: This quote by John Robinson, a politician, sheds light on the historical context of the use of money and the scarcity of gold and silver during certain periods. In order to understand the significance of this statement, it is important to delve into the historical and economic background of the time period to which it pertains.

During various historical periods, particularly in the pre-modern era, the use of gold and silver as a medium of exchange was prevalent. Gold and silver were used as a form of currency due to their intrinsic value, durability, and relative rarity. However, the availability of these precious metals was often insufficient to meet the demands of commercial transactions. As a result, the scarcity of gold and silver led to a situation where large sums of money were paid for their use.

One of the key reasons for the scarcity of gold and silver was the limited availability of these metals through mining and trade. In ancient and medieval times, the techniques for extracting and refining gold and silver were not as advanced as they are today. Additionally, the sources of these metals were often geographically concentrated, leading to uneven distribution and limited availability in certain regions.

Furthermore, the expansion of commercial activities and trade during these periods increased the demand for a medium of exchange. As economies grew and trade networks expanded, the need for a reliable and universally accepted form of currency became more pronounced. Gold and silver, due to their intrinsic value and widespread recognition, emerged as the primary forms of money.

The scarcity of gold and silver in relation to the growing demands of commercial transactions resulted in the phenomenon described by Robinson – large sums were paid for the use of money. This situation contributed to the development of financial instruments such as promissory notes, bills of exchange, and early forms of banking to facilitate trade and mitigate the challenges posed by the scarcity of precious metals.

Moreover, the scarcity of gold and silver also played a significant role in shaping the economic and monetary policies of various societies. Governments and ruling authorities often sought to control and regulate the supply of precious metals to maintain stability in their economies. Debates and conflicts over the monetary system, including the use of gold and silver as the standard for currency, were common throughout history.

In conclusion, John Robinson's quote encapsulates the historical reality of the scarcity of gold and silver and its impact on the use of money in commercial transactions. It reflects the economic challenges faced by societies in meeting the demands of trade and commerce with limited precious metal resources. Understanding this historical context provides valuable insights into the evolution of monetary systems, economic policies, and the development of financial instruments.