2020-02-12 Wed

The paper currency started in the United Kingdom then England at the beginning of the 17th century. Along the way, it witnessed the excessive circulation of paper currency with the Industrial revolution. The amalgamations of banknotes in the later 19th and 20th centuries reflect the wider spread of Britain’s economic graph.

It is also phenomenal to note the term ‘Banker’ was used during Queen Elizabeth I’s ruler as a reference to the exchange broker. Another important fact was during King William III’s region the First bank of England was established to support the war against France. The Bank started to issue notes in return of deposits. These bankers were the goldsmith-banker, who began to accept deposits. The transfer of loans and funds and gave receipts for cash.

These early receipts were known as ‘Running cash notes’. These were made out in the name of the depositors and promised to pay him on demand. Many of these also carried the world ‘or bearer’ after the name of depositor which allowed the money to regulate in a restricted manner. The phrase ‘I promise to pay the bearer on demand the sum of ...’ still depicted on English Banknotes to date.

In 1694 the bank of England started issuing note in return of the deposit. These notes were initially handwritten at the start and were signed by the cashiers. Today all the British banknotes illustrate Chief Cashier’s signature. The smallest denomination was £ 50. Many people at that time have not seen these notes; the average annual income was less than £ 20.

Image Courtesy: realbanknbotes