From paper to money

Miscellaneous cabosan July 25, 2016 0 11
Quickly fished a paper banknote in your wallet and paid. But as easy as now, a payment was not always. Therefore we do not even go to the South Pacific where stone money in the form of discs with three-meter diameter section is found. And in Europe was awkward coinage until 1661 very common. As the largest coin from Sweden weighed around 20 kilos. But which also consisted entirely of copper.

The stone money of Yap

The stone money of Yap, near Gachpar always stayed in the same place and only occasionally exchanged hands. The longer and more exciting story of the production and transport of such currency ?? ??, the more valuable was which.

The history of our paper money

Roughly 350 years ago, in 1661, was issued in the Kingdom of Sweden Europe ?? s first banknote. That was a major advance over the then largely big and clumsy coins. The value of the currency in those days was equal to the value of the metal it existed.

One Palmstruch the "Stockholm Banco"

All that fiddling with large and heavy coins was one Johann Palmstruch but very impractical. The merchant from Riga, who had lived long in trading nation par excellence Netherlands, in 1661 founded the "Stockholm Banco". He financed the Swedish national budget and previously acquired the right to set up a bank to lend money under his terms. Half of its turnover, however, resulted in the Swedish treasury.

Banknotes and bearer

Palmstruch took the big copper coins and previously wrote a kind of receipt from the first notes. They were printed and put in round figures of five for copper in 1000 dollars. Moreover, the bearer. A bearer certificates means that anyone in possession of such a bill, was entitled to assert its value in metal. It was not a named worker admission of guilt.
Also, savings bonds were bearer
In the seventies and eighties of the last century Dutch banks gave tens of thousands of so-called savings bonds, grow some letters or interest some proofs. That was bearer. Its owner was also the rightful owner. Savings bonds were not registered in the name and it presented itself to purchase nor to legitimize. But if lost or stolen you had a problem. Blocking was not possible. For that reason, were kept in those years for many millions of black money in the safe counters of Dutch banks. Until some time in the eighties when the tax authorities put a stop to it. But this aside. The theme was, after all, the generation of banknotes.

Gold coin to paper money

Banknotes were at that time so a written confirmation that a certain amount of valuable metal, copper or gold, was deposited at the bank and the owner of the banknote was entitled to redeem the actual worthless paper against the precious metal.

Elemental lending

But Johann Palmstruch went a step further. For he loved the metal is not all the time at the bank stock, but lent it to turn off. So he earned double it:
  • on the one hand in the writing of the confession;
  • on the other, lending the value metals.

In fact, there was lending its most basic form: there were indeed issued IOUs without previously held metal as collateral.