Regarding the history, here's a good post [1] on getting small farmers to pay rent and/or taxes. This goes back to ancient times and money wasn't required, though it made it more efficient:
> The oldest – and in pre-modern societies, by far the most common – form of rent/tax extraction is extraction in kind, where the farmer pays their rents and taxes with agricultural products directly. Since grain (threshed and winnowed) is a compact, relatively transportable commodity (that is, one sack of grain is as good as the next, in theory), it is ideal for these sorts of transactions, although perusing medieval manorial contacts shows a bewildering array of payments in all sorts of agricultural goods. In some cases, payment in kind might also come in the form of labor, typically called corvée labor, either on public works or even just farming on lands owned by the state.
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> if you want to collect taxes in money, you need the small farmers to have money. Which means you need markets for them to sell their grain for money and then those merchants need to be able to sell that grain themselves for money, which means you need urban bread-eaters who are buying bread with money, which means those urban workers need to be paid in money. And you can only get any of these people to use money if they can exchange that money for things they want, which creates a nasty first-mover problem.
> We refer to that entire process as monetization – when I talk about economies being ‘monetized’ or ‘incompletely monetized’ that’s what I mean: how completely has the use of money penetrated through this society. It isn’t a one-way street, either. Early and High Imperial Rome seem to have been more completely monetized than the Late Roman Western Empire or the early Middle Ages (though monetization increases rapidly in the later Middle Ages).
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> The irony of all of this extraction is that while it is often nasty and predatory, it can have some positive long-term effects, because the extra food that the farmers are being effectively forced to produce moves through either state-redistribution or market mechanisms to an increasing population of specialist non-farmers who in turn provide benefits for the broader society, sometimes including the farmers.
> Metal tools, improved plows, large mills and bakeries would all be impossible without specialist smiths, wood-workers, architects, millers and bakers, for instance. And those merchants, moving food around from where it is common to where it is scarce can – if there are enough of them and trade is sufficiently unrestricted by things like wars – serve a valuable stabilizing role on the otherwise wildly destructive volatility of prices for things like food and other essentials. Moreover, specialization and trade encouraged distance travel, which might bring foreign disease, but might also bring new agricultural technologies.
[1] https://acoup.blog/2020/08/21/collections-bread-how-did-they...