Did you know that the first ever American banknote was issued today?
On February the 3rd in 1690, the first paper money of America was issued by the British colony of Massachusetts, to pay soldiers fighting a war against the French in Quebec. The money issued in 1690 was called a ‘bill of credit’ and it represented the colony's obligation to the soldiers.
These certificates issued in lieu of paying with coins could later be redeemed for "real money." This trend of caught on and the British government continued with it and introduced in other colonies also.
This No.1009 bill is signed by John Phillips, Penn Townsend, and Adam Winthrop and is printed on a thin laid paper.
A promise made on paper would be redeemed for coins and the people trusted the government to pay them and that’s how a random paper became valuable!
Image Courtesy: Google Images