century. Before the XXII^>nd century they were produced manually from copper, bronze, gold. As a rule the coins had the images of a family coat of arms – tamga and indicated the title of the main sovereign ruler – kagan. At that times each of them issued their own coins with their title that’s why they greatly differed from each other not only by the images but also by their thickness and form.

Later in the middle centuries in Kypchakiya the territory of which marched with the territory of modern Kazakhstan a silver tanga and a copper poul circulated. The copper coins usually were used for everyday buyings and silver for the foreign trade operations.

After Kazakhstan joint to Russia in the beginning of the XVIII^>th century little by little the Russian coins and monetary units began to circulate in our country. In the pre-revolution Kazakhstan during the monetary reform of 1895-1897 the system of gold monometallism was established with the gold-coin circulation.

The gold, silver and copper coins were used in circulation. The basic type of the monetary units was the State Bank credit notes which on 92 % were ensured by gold. The basic part of the monetary stock consisted of the nominal instruments of circulation which could be freely exchanged on the full-bodied money – gold coins and thus they had the population’s credibility.

Having an inmost value the full-bodied money depends on neither the other types of wealths nor the market conditions in which it circulates. All the types of commodity money belong to the full-bodied money – gold and silver coins.

The token money (the substitute of real money) is money the nominal value of which is higher than real, i.e. its purchasing power exceeds the intrinsic value of the commodity which plays role of the monetary relations bearer. The purchasing power of this money is determined by the market conditions exceptionally whereby the inmost value of token money doesn’t influence on it. The token money includes all the types of paper money, credit notes and metal symbols of value (billion coins – small coins manufactured from copper and aluminum).

In the course of historical development first of all the system of metal circulation formed which was based on the metal coins usage.

Initially (in particular in the XVI^>th-XVIII^>th centuries) the system of bimetallism existed.

Bimetallism is the system where the role of the total equivalent is played by two metals – gold and silver. It means that these two metals circulated on equal basis and had a fixed correlation.

The unlimited circulation, free issue and two prices determination on one good are supposed. This system existed in the XVI^>th-XVIII^>th centuries and in some countries of West Europe even in the XIX^>th century. However such system didn’t provide the stability of money circulation.

There are three systems of bimetallism:

Of the parallel currency where the correlation between the gold and silver coins is spontaneous.

Of the double currency where the government fixed the correlation between metals and the gold and silver coins issue and their popularity were made by this correlation.

Of the limping currency where the gold and silver coins were the legal means of payment but with unequal terms. For example if the silver coins issue was made privately thus practically they played role of the gold symbols.

In the result of silver production cheapening in the end of the XIX^>th century and its devaluation the gold coins began to go out of circulation to treasures, i.e. «bad money drives out good».