During World War II, an Allied soldier named Robert Radford spent several years in a large German prisoner-of-war camp. At times more than 50,000 prisoners were held in the camp, with some freedom to move about within the compound.

Radford later wrote an account of his experiences. He described how an economy developed in the camp, in which prisoners traded food, clothing, and other items.

Services such as barbering also were exchanged. Lacking paper money, the prisoners began to use cigarettes (provided monthly by the Red Cross) as money.

Prices were quoted, and payments made, using cigarettes. ( LO4 )

a. In Radford’s POW camp, how did cigarettes fulfill the three functions of money?

b. Why do you think the prisoners used cigarettes as money, as opposed to other items of value such as squares of chocolate or pairs of boots?

c. Do you think a nonsmoking prisoner would have been willing to accept cigarettes in exchange for a good or service in Radford’s camp? Why or why not?