Bankers know that history is inflationary and that money is the last thing a wise man will hoard.

Will Durant’s quote, “Bankers know that history is inflationary and that money is the last thing a wise man will hoard,” highlights the economic truth that the value of money declines over time due to inflation. By pointing this out, Durant emphasizes that wealth should not be measured by how much cash one holds, but by how one invests or uses resources productively. To merely hoard money is to watch its value erode, while those who understand history seek more durable and meaningful ways to preserve or grow wealth.

The meaning of the statement lies in its critique of blind accumulation. Durant suggests that a wise man recognizes the lessons of history, which show that periods of economic growth are often accompanied by inflation. This makes money itself a poor long-term store of value. Instead, wisdom lies in placing wealth into endeavors that maintain or increase their worth over time—whether land, knowledge, or creative enterprise—rather than simply piling up cash.

The origin of this idea comes from Durant’s broader work as a historian and philosopher. In The Story of Civilization and his other writings, he often explored the rise and fall of economies and empires, noting how inflation repeatedly undermined societies. His perspective was shaped by observing both ancient examples of debased currency and modern economic turmoil in the early 20th century. Thus, his words blend historical insight with practical advice about the dangers of treating money as static wealth.

Ultimately, this quote underscores Durant’s belief that history provides practical lessons for living wisely. By showing that inflation is a recurring force, he warns against the illusion of security that comes from hoarding money. True wisdom, he suggests, lies in understanding the impermanence of cash and using it in ways that outlast the shifting tides of economic history.