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133-426: A banknote  – also called a bill ( North American English ), paper money , or simply a note  – is a type of negotiable promissory note , made by a bank or other licensed authority, payable to the bearer on demand. Banknotes were originally issued by commercial banks , which were legally required to redeem the notes for legal tender (usually gold or silver coin) when presented to

266-408: A creditor on a schedule with a maturity date specified in written contractual terms . Law 122 stipulated that a depositor of gold , silver , or other chattel/movable property for safekeeping must present all articles and a signed contract of bailment to a notary before depositing the articles with a banker , and Law 123 stipulated that a banker was discharged of any liability from

399-457: A central bank in 1791 and 1816 , but it was only in 1862 that the federal government of the United States , began to print banknotes. Originally, the banknote was simply a promise to the bearer that they could redeem it for its value in specie, but in 1833, the second in a series of Bank Charter Acts established that banknotes would be considered as legal tender during peacetime. Until

532-452: A central bank was in 1661 by Stockholms Banco , a predecessor of Sweden's central bank, Sveriges Riksbank . Napoleon issued paper banknotes in the early 1800s. Cash paper money originated as receipts for value held on account "value received", and should not be conflated with promissory "sight bills," which were issued with a promise to convert at a later date. The perception of banknotes as money has evolved over time. Originally, money

665-436: A compelling issue. In the 18th century, banknotes were produced mainly by copper-plate engraving and printing , and they were single-sided. Note-making technologies remained largely unchanged during the 18th century. The first banknotes were produced by intaglio printing : this involved engraving a copper plate by hand and then covering it in ink to print the bank notes. Only with this technique, at that time, could one force

798-436: A contract of bailment if the notary denied the existence of the contract. Law 124 stipulated that a depositor with a notarized contract of bailment was entitled to redeem the entire value of their deposit, and Law 125 stipulated that a banker was liable for replacement of deposits stolen while in their possession . Carthage was purported to have issued bank notes on parchment or leather before 146 BC. Hence Carthage may be

931-514: A disgraced shi from the State of Jin led a suicidal charge of chariots to redeem his reputation, turning the tide of the battle. In the Battle of Bi , 597 BC, the routing chariot forces of Jin were bogged down in mud, but pursuing enemy troops stopped to help them get dislodged and allowed them to escape. As chariot warfare became eclipsed by mounted cavalry and infantry units with effective crossbowmen in

1064-405: A double-edged sword known as the jian , and armour. The shi had a strict code of chivalry . In the battle of Zheqiu, 420 BC, the shi Hua Bao shot at and missed another shi Gongzi Cheng, and just as he was about to shoot again, Gongzi Cheng said that it was unchivalrous to shoot twice without allowing him to return a shot. Hua Bao lowered his bow and was subsequently shot dead. In 624 BC

1197-436: A gold- or silver-backed national paper currency standard, which changed the geographic restriction. The range of varying values for these banknotes was perhaps from one string of cash to one hundred at the most. Ever after 1107, the government printed money in no less than six ink colors and printed notes with intricate designs and sometimes even with mixture of a unique fiber in the paper to combat counterfeiting. The founder of

1330-547: A government agency that was later taken over by the Monetary Authority of Singapore . As with any printing, there is also a chance for banknotes to have printing errors. For U.S. banknotes, these errors can include board break errors, butterfly fold errors, cutting errors, dual denomination errors, fold over errors, and misalignment errors. Prior to the introduction of banknotes, precious or semiprecious metals minted into coins to certify their substance were widely used as

1463-542: A growing amount of gentry, while the number of official posts remained constant, the graduates who were not appointed to government would provide critical services in local communities, such as funding public works, running private schools, aiding in tax collection, maintaining order, or writing local gazetteers . Since Neolithic times in China , agriculture was a key element to the rise of China's civilization and every other civilization. The food that farmers produced sustained

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1596-480: A large commercial enterprise run by scholar-officials. The state also had to contend with the merchant guilds ; whenever the state requisitioned goods and assessed taxes it dealt with guild heads, who ensured fair prices and fair wages via official intermediaries. By the late Ming dynasty, the officials often needed to solicit funds from powerful merchants to build new roads, schools, bridges, pagodas, or engage in essential industries, such as book-making, which aided

1729-452: A martial class, the samurai became civil administrators to their daimyōs during the Tokugawa shogunate . No exams were needed as the positions were inherited. They constituted about 5% of the population and were allowed to have a proper surname. Older scholars believed that there were Shi-nō-kō-shō ( 士農工商 ) of "samurai, peasants ( hyakushō ), craftsmen, and merchants ( chōnin )" under

1862-403: A medium of exchange. The value that people attributed to coins was originally based upon the value of the metal unless they were token issues or had been debased. Banknotes were originally a claim for the coins held by the bank, but due to the ease with which they could be transferred and the confidence that people had in the capacity of the bank to settle the notes in coin if presented, they became

1995-470: A person may go throughout the Great Kaan's dominions he shall find these pieces of paper current, and shall be able to transact all sales and purchases of goods by means of them just as well as if they were coins of pure gold In medieval Italy and Flanders , because of the insecurity and impracticality of transporting large sums of cash over long distances, money traders started using promissory notes . In

2128-452: A popular means of exchange in their own right. They now make up a very small proportion of the "money" that people think that they have, as demand deposit bank accounts and electronic payments have negated much of the need to carry notes and coins. Banknotes have a natural advantage over coins in that they are lighter to carry; but they are also less durable than coins. Banknotes issued by commercial banks had counterparty risk , meaning that

2261-447: A practical reality. The commercialization of Chinese society in the Song and Ming periods further blurred the lines between these four occupations. The definition of the identity of the shi class changed over time—from warriors to aristocratic scholars, and finally to scholar-bureaucrats. There was also a gradual fusion of the wealthy merchant and landholding gentry classes, culminating in

2394-430: A precise amount and issued on deposit or as a loan. There was a gradual move toward the issuance of fixed denomination notes, and by 1745, standardized printed notes ranging from £20 to £1,000 were being printed. Fully printed notes that did not require the name of the payee and the cashier's signature first appeared in 1855. The Bank of Scotland was established in 1695 to support Scottish businesses, and in 1696 became

2527-464: A rope. Merchants found that the strings were too heavy to carry around easily, especially for large transactions. To solve this problem, coins could be left with a trusted person, with the merchant being given a slip of paper (the receipt) recording how much money they had deposited with that person. Their coins would be restored when they went back and gave that person the paper. True paper money, called " jiaozi ", developed from these promissory notes by

2660-447: A smaller plot. As government control weakened in the 8th century, land reverted into the hands of private owners. Song dynasty (950–1279) rural farmers engaged in the small-scale production of wine, charcoal, paper, textiles, and other goods. By the Ming dynasty (1368–1644), the socioeconomic class of farmers grew more and more indistinct from another social class in the four occupations:

2793-458: A social classification. In the sixteenth century, lords began to centralise administration by replacing enfeoffment with stipend grants, and placing pressure on vassals to relocate into castle towns, away from independent power bases. Military commanders became rotated to avert the formation of strong personal loyalties from the troops. Artisans and merchants were solicited by these lords and sometimes received official appointments. This century

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2926-415: A social disturbance for excessive accumulation of wealth or erratic fluctuation of prices. Beneath the four occupations were the "mean people" ( Chinese : 賤民 jiànmín ), outcasts from "humiliating" occupations such as entertainers and prostitutes. The four occupations were not a hereditary system. The four occupations system differed from those of European feudalism in that people were not born into

3059-566: A travelogue of a visit to Prague in 960 by Ibrahim ibn Yaqub , small pieces of cloth were used as a means of trade, with these cloths having a set exchange rate versus silver. Around 1150, the Knights Templar would issue notes to pilgrims. Pilgrims would deposit valuables with a local Templar preceptory before embarking for the Holy Land and receive a document indicating the value of their deposit. They would then use that document upon arrival in

3192-537: A university and school system, alongside a civil service examination system. The government was managed by the Seissei , Sanshikan and the Bugyo (Prime Minister, Council of Ministers and Administrative Departments). Yukatchu who failed the examinations or were otherwise deemed unsuitable for office would be transferred to obscure posts and their descendants would fade into insignificance. Ryukyuan students were also enrolled into

3325-478: A virtual currency account (usually a coin no longer physically existing), was used more often. All physical currencies were physically related to this virtual currency; this instrument also served as credit. The shift toward the use of these receipts as a means of payment took place in the mid-17th century, as the price revolution , when relatively rapid gold inflation was causing a re-assessment of how money worked. The goldsmith bankers of London began to give out

3458-453: A weight of 80 to 90 grams per square meter. The cotton is sometimes mixed with linen , abaca , or other textile fibres. Generally, the paper used is different from ordinary paper: it is much more resilient, resists wear and tear (the average life of a paper banknote is two years), and also does not contain the usual agents that make ordinary paper glow slightly under ultraviolet light. Unlike most printing and writing paper, banknote paper

3591-400: A written order to pay the amount to whoever had possession of the note. These notes are credited as the first modern banknotes. The first short-lived attempt at issuing banknotes by a central bank was in 1661 by Stockholms Banco , a predecessor of Sweden's central bank, Sveriges Riksbank . These replaced the copper-plates being used instead as a means of payment. The peculiar circumstances of

3724-415: Is a simple-looking security component found in most banknotes. It is, however, often rather complex in construction, comprising fluorescent, magnetic, metallic, and microprint elements. By combining it with watermarking technology, the thread can be made to surface periodically on one side only. This is known as windowed thread and further increases the counterfeit resistance of the banknote paper. This process

3857-576: Is applied as a portrait window for the higher denominations of the Europa series (ES2) of the euro banknotes. Windows are also used with the Hybrid substrate from Giesecke+Devrient which is composed of an inner layer of paper substrate with thin outer layers of plastic film for high durability. When paper bank notes were first introduced in England, they resulted in a dramatic rise in counterfeiting. The attempts by

3990-472: Is called "Sĩ, nông, công, thương (士農工商). The main difference in adaptation was the definition of the shi (士). From existing literary evidence, commoner categories in China were employed for the first time during the Warring States period (403–221 BC). Despite this, Eastern-Han (AD 25–220) historian Ban Gu (AD 32–92) asserted in his Book of Han that the four occupations for commoners had existed in

4123-477: Is infused with polyvinyl alcohol or gelatin, instead of water, to give it extra strength. Early Chinese banknotes were printed on paper made of mulberry bark. Mitsumata ( Edgeworthia chrysantha ) and other fibers are used in Japanese banknote paper (a kind of Washi ). Most banknotes are made using the mould-made process, in which a watermark and thread are incorporated during the paper forming process. The thread

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4256-479: Is mostly because historians tend to be more interested in a theoretical understanding of how money worked rather than how it was produced. The first great deterrent against counterfeiting was the death penalty for forgers, but this was not enough to stop the rise of counterfeiting. Over the 18th century, far fewer banknotes were circulating in England compared to the boom of bank notes in the 19th century; because of this, improved note-making techniques were not considered

4389-432: Is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes. The economist Nicholas Barbon wrote that money "was an imaginary value made by a law for the convenience of exchange". A temporary experiment of banknote issue

4522-405: Is the basis for the history of central banks backing their currencies in gold or silver. Today, most national currencies have no backing in precious metals or commodities and have value only by fiat . With the exception of non-circulating high-value or precious metal issues, coins are used for lower valued monetary units, while banknotes are used for higher values. Counterfeiting , including

4655-555: Is the first foil application ( Kinegram ) to a paper banknote in the history of banknote printing. The application of optical features is now common throughout the world. Many countries' banknotes now have embedded holograms . North American English North American English is the most generalized variety of the English language as spoken in the United States and Canada . Because of their related histories and cultures, plus

4788-530: The Yingzao Fashi printed in 1103, an architectural building manual written by Li Jie (1065–1110), sponsored by Emperor Huizong (r. 1100–1126) for these government agencies to employ and was widely printed for the benefit of literate craftsmen and artisans nationwide. In the late of Ming dynasty there were many porcelain kilns created that led the Ming dynasty to be economically well off. The Qing emperors like

4921-734: The Bank of England , prints notes which are legal tender in England and Wales ; these notes are also usable as money (but not legal tender) in the rest of the UK (see Banknotes of the pound sterling ). In the two Special Administrative Regions of the People's Republic of China , arrangements are similar to those in the UK; in Hong Kong , three commercial banks are licensed to issue Hong Kong dollar notes , and in Macau , banknotes of

5054-498: The Confucian classics , from which Emperor Wu would select officials. In the Sui dynasty (581–618) and the subsequent Tang dynasty (618–907) the shi class would begin to present itself by means of the fully standardized civil service examination system , of partial recruitment of those who passed standard exams and earned an official degree. Yet recruitment by recommendations to office

5187-484: The Han dynasty (202 BC–AD 220). In 165 BC, Emperor Wen introduced the first method of recruitment to civil service through examinations, while Emperor Wu (r. 141–87 BC), cemented the ideology of Confucius into mainstream governance installed a system of recommendation and nomination in government service known as xiaolian , and a national academy whereby officials would select candidates to take part in an examination of

5320-569: The Kangxi Emperor helped the growth of porcelain export and by allowing an organization of private maritime trade that assisted families who owned private kilns. Chinese export porcelain , designed purely for the European market and unpopular among locals as it lacked the symbolic significance of wares produced for the Chinese home market, was a highly popular trade good. In China, silk-worm farming

5453-684: The Macanese pataca are issued by two different commercial banks. In Luxembourg , the Banque Internationale à Luxembourg was entitled to issue its own Luxembourgish franc notes until the introduction of the Euro in 1999. As well as commercial issuers, other organizations may have note-issuing powers; for example, until 2002, the Singapore dollar was issued by the Board of Commissioners of Currency, Singapore ,

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5586-566: The United States and Canada . In North America, different English dialects of immigrants from England , Scotland , Ireland , and other regions of the British Isles mixed together in the 17th and 18th centuries. These were developed, built upon, and blended together as new waves of immigration, and migration across the North American continent, developed new dialects in new areas, and as these ways of speaking merged with and assimilated to

5719-408: The Warring States period , it was replaced by a system of private land ownership. It was first suspended in the state of Qin by Shang Yang and other states soon followed suit. From AD 485–763, land was equally distributed to farmers under the equal-field system (均田). Families were issued plots of land on the basis of how many able men, including slaves, they had; a woman would be entitled to

5852-547: The Warring States period , the participation of the shi in battle dwindled as rulers sought men with actual military training, not just aristocratic background. This was also a period where philosophical schools flourished in China , while intellectual pursuits became highly valued amongst statesmen. Thus, the shi eventually became renowned not for their warrior's skills, but for their scholarship, abilities in administration, and sound ethics and morality supported by competing philosophical schools. Under Duke Xiao of Qin and

5985-506: The Western Zhou (c. 1050–771 BC) era, which he considered a golden age . However, it is now known that the classification of four occupations as Ban Gu understood it did not exist until the 2nd century BC. Ban explained the social hierarchy of each group in descending order: Scholars, farmers, artisans, and merchants; each of the four peoples had their respective profession. Those who studied in order to occupy positions of rank were called

6118-506: The Yuan dynasty , Kublai Khan , issued paper money known as Jiaochao . The original notes were restricted by area and duration, as in the Song dynasty, but in the later years, facing massive shortages of specie to fund their rule, the paper money began to be issued without restrictions on duration. The fact that the state was guaranteeing the Chinese paper money impressed Venetian merchants. According to

6251-466: The bone-rank system (골품제도), and their power was limited by the royal clan who monopolized the positions of importance. From the late 8th century, succession wars in Silla, as well as frequent peasant uprisings, led to the dismantling of the bone-rank system. Head rank 6 leaders sojourned to China for study, while regional governance fell into the hojok or castle-lords commanding private armies detached from

6384-758: The chungin , a class of privileged commoners who were petty bureaucrats, scribes, and specialists. The chungin were actually the least populous class, even smaller than the yangban. The yangban constituted 10% of the population. From the mid-Joseon period, military officers and civil officials were separately derived from different clans. Vietnamese dynasties also adopted the examination degree system (khoa bảng 科榜) to recruit scholars for government service. The bureaucrats were similarly divided into nine grades and six ministries, and examinations were held annually at provincial level, and triennially at regional and national levels. The Vietnamese political elite consisted of educated landholders whose interests often clashed with

6517-464: The first European bank to issue banknotes in fixed values. It continues to issue banknotes and is the longest continuous banknote issue in the world. The Scottish economist John Law helped establish banknotes as a formal currency in France, after the wars waged by Louis XIV left the country with a shortage of precious metals for coinage. In the United States , there were early attempts at establishing

6650-407: The forgery of banknotes, is an inherent challenge in issuing currency . It is countered by anticounterfeiting measures in the printing of banknotes. Fighting the counterfeiting of banknotes and cheques has been a principal driver of security printing methods development in recent centuries. Code of Hammurabi Law 100 ( c. 1755–1750 BC) stipulated repayment of a loan by a debtor to

6783-527: The scholar-officials of Imperial China, and were traditionally seen locally as upholders of the Confucian social order and peaceful coexistence under the Dutch colonial authorities. For much of its history, appointment to the Chinese officership was determined by family background, social standing and wealth, but in the twentieth century, attempts were made to elevate meritorious individuals to high rank in keeping with

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6916-464: The shi (scholars). Those who cultivated the soil and propagated grains were called nong (farmers). Those who manifested skill ( qiao ) and made utensils were called gong (artisans). Those who transported valuable articles and sold commodities were called shang (merchants). The Rites of Zhou described the four groups in a different order, with merchants before farmers. The Han-era text Guliang Zhuan placed merchants second after scholars, and

7049-456: The shi were a knightly social order of low-level aristocratic lineage compared to dukes and marquises . The shi were distinguished by their right to ride and command battles from chariots, while they also served civil functions. Initially rising to power through controlling the new technology of bronzeworking , from 1300 BC, the shi transitioned from foot knights to being primarily chariot archers , fighting with composite recurved bow,

7182-423: The 11th century, during the Song dynasty . By 960, the Song government was short of copper for striking coins, and issued the first generally circulating notes. These notes were a promise by the ruler to redeem them later for some other object of value, usually specie . The issue of credit notes was often for a limited duration, and at some discount to the promised amount later. The jiaozi did not replace coins but

7315-434: The 11th to 13th century, the number of exam candidates participating in taking the exams increased dramatically from merely 30,000 to 400,000 by the dynasty's end. Widespread printing through woodblock and movable type enhanced the spread of knowledge amongst the literate in society, enabling more people to become candidates and competitors vying for a prestigious degree. With a dramatically expanding population matching

7448-471: The 1760s, these bills of credit were used in the majority of transactions in the Thirteen Colonies. The first bank to initiate the permanent issue of banknotes was the Bank of England . Established in 1694 to raise money for the funding of the war against France , the bank began issuing notes in 1695 with the promise to pay the bearer the value of the note on demand. They were initially handwritten to

7581-902: The American spelling prevails over the British (e.g., tire rather than tyre ). Dialects of American English spoken by United Empire Loyalists who fled the American Revolution (1775–1783) have had a large influence on Canadian English from its early roots. Some terms in North American English are used almost exclusively in Canada and the United States (for example, the terms diaper and gasoline are widely used instead of nappy and petrol ). Although many English speakers from outside North America regard those terms as distinct Americanisms , they are just as common in Canada, mainly due to

7714-531: The Bank of England and the Royal Mint to stamp out currency crime led to new policing strategies, including the increased use of entrapment. The characteristics of banknotes, their materials and production techniques (as well as their development over history) are topics that are not usually thoroughly examined by historians, even though there are now a number of works detailing how bank notes were actually constructed. This

7847-588: The Bark of Trees, Made into Something Like Paper, to Pass for Money All Over his Country ". All these pieces of paper are, issued with as much solemnity and authority as if they were of pure gold or silver... with these pieces of paper, made as I have described, Kublai Khan causes all payments on his own account to be made; and he makes them to pass current universally over all his kingdoms and provinces and territories, and whithersoever his power and sovereignty extends... and indeed everybody takes them readily, for wheresoever

7980-403: The Dutch government appointed Chinese officers , who held the ranks of Majoor , Kapitein or Luitenant der Chinezen with legal and political jurisdiction over the colony's Chinese subjects. The officers were overwhelmingly recruited from old families of the ' Cabang Atas ' or the Chinese gentry of colonial Indonesia. Although appointed without state examinations, the Chinese officers emulated

8113-508: The Holy Land to receive funds from the treasury of equal value. In the 13th century, Chinese paper money of Mongol Yuan became known in Europe through the accounts of travelers, such as Marco Polo and William of Rubruck . Marco Polo's account of paper money during the Yuan dynasty is the subject of a chapter of his book, The Travels of Marco Polo , titled " How the Great Kaan Causeth

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8246-902: The Malay court position of Kapitan Cina Yap Ah Loy , arguably the founder of modern Kuala Lumpur . Overseas Chinese merchant families in British Malaya and the Dutch Indies donated generously to the provision of defence and disaster relief programs in China in order to receive nominations to the Imperial Court for honorary official ranks. These ranged from chün-hsiu , a candidate for the Imperial examinations, to chih-fu ( Chinese : 知府 ; pinyin : zhīfŭ ) or tao-t'ai (Chinese: 道臺 ; pinyin: dàotái ), prefect and circuit intendant respectively. The bulk of these sinecure purchases were at

8379-543: The National Academy ( Guozijian ) in China, at Chinese government expense, and others studied privately at schools in Fujian province such diverse skills as law, agriculture, calendrical calculation, medicine, astronomy, and metallurgy. In Japan , the shi role, unlike the scholars in China, became a hereditary class known as the samurai , and marriage between people of unequal class was socially unacceptable. Originally

8512-540: The Qin or Han law codes specifically mentions the four occupations, some laws did treat these broadly classified social groups as separate units with different levels of legal privilege. The categorisation was sorted according to the principle of economic usefulness to state and society, that those who used mind rather than muscle (scholars) were placed first, with farmers, seen as the primary creators of wealth, placed next, followed by artisans, and finally merchants who were seen as

8645-498: The Song government was amassing large amounts of paper tribute . It was recorded that each year before 1101, the prefecture of Xin'an (modern Shexian , Anhui ) alone would send 1,500,000 sheets of paper in seven different varieties to the capital at Kaifeng. In 1101, the Emperor Huizong of Song decided to lessen the amount of paper taken in the tribute quota because it was causing detrimental effects and creating heavy burdens on

8778-497: The Swedish coin supply were what led to this banknote issue. Cheap foreign imports of copper had forced the Crown to steadily increase the size of the copper coinage to maintain its value relative to silver . The heavy weight of the new coins encouraged merchants to deposit it in exchange for receipts. These became banknotes when the manager of the bank decoupled the rate of note issue from

8911-661: The Tang dynasty (618–907), as merchants and wholesalers desired to avoid the heavy bulk of copper coinage in large commercial transactions. Although government issued centralized paper money did not appear until the 11th century, during the Song dynasty . In Europe, cloth banknotes were in use in Praga in 960 and as part of the banking scheme of the Knights Templars around 1150. The first short-lived attempt at issuing banknotes in Europen by

9044-587: The Warring States-era Xunzi placed farmers before scholars. The Shuo Yuan mentioned a quotation which stressed the ideal of equality between the four occupations. Anthony J. Barbieri-Low, Professor of Early Chinese History at the University of California, Santa Barbara , writes that the classification of "four occupations" can be viewed as a mere rhetorical device that had no effect on government policy. However, he notes that although no statute in

9177-406: The annual 200,000 cash-coin income of a marquess who collected taxes from a thousand households. Some merchant families made fortunes worth over a hundred million cash, which was equivalent to the wealth acquired by the highest officials in government. Itinerant merchants who traded between a network of towns and cities were often rich as they had the ability to avoid registering as merchants (unlike

9310-545: The artisan. Artisans began working on farms in peak periods and farmers often traveled into the city to find work during times of dearth. The distinction between what was town and country was blurred in Ming China, since suburban areas with farms were located just outside and in some cases within the walls of a city. Artisans and craftsmen—their class identified with the Chinese character meaning labour —were much like farmers in

9443-489: The bank currency reserves. Three years later, the bank went bankrupt after rapidly increasing the artificial money supply through the large-scale printing of paper money. A new bank, the Riksens Ständers Bank , was established in 1668, but did not issue banknotes until the 19th century. The idea that social and legal consensus determines what constitutes money is the foundation of modern banknotes. A gold coin's value

9576-828: The bank may not be able to make payment when the note was presented. Notes issued by central banks had a theoretical risk when they were backed by gold and silver. Both banknotes and coins are subject to inflation . The durability of coins means that even if metal coins melt in a fire or are submerged under the sea for hundreds of years, they still have some value when they are recovered. Gold coins salvaged from shipwrecks retain almost all of their original appearance, but silver coins slowly corrode. Other costs of using bearer money include: The different advantages and disadvantages of coins and banknotes imply that there may be an ongoing role for both forms of bearer money, each being used where its advantages outweigh its disadvantages. Until recently, most banknotes were made from cotton paper with

9709-455: The banks to refine the technologies employed. In 1801, watermarks, which previously were straight lines, became wavy—an idea of William Brewer, a watermark mould maker. This made counterfeiting bank notes harder still, at least in the short term, and in 1803 the number of forged bank notes fell to just 3000, compared to 5000 the previous year. Banks asked skilled engravers and artists to help them make their notes more difficult to counterfeit during

9842-405: The beginning, these were personally registered, but they soon became a written order to pay the amount to whoever had it in their possession. These notes are seen as a predecessor to regular banknotes by some but are mainly thought of as proto bills of exchange and cheques. The term "bank note" comes from the notes of the bank ("nota di banco") and dates from the 14th century; it originally recognized

9975-464: The case, and historically, private banks frequently handled all of a country's paper currency. Thus, many different banks or institutions may have issued banknotes in a given country. Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932. In the last of these series, the issuing bank would stamp its name and promise to pay, along with

10108-577: The central government. Although all land theoretically was the ruler's, and was supposed to be distributed equitably by the equal-field system (chế độ Quân điền) and non-transferable, the court bureaucracy increasingly appropriated land which they leased to tenant farmers and hired labourers to till. It was unlikely for individuals of common background to become Mandarins, however, since they lacked access to classical education. Degree-holders were frequently clustered in certain clans. Chinese official positions, under various different native titles, go back to

10241-464: The central regime. These factions coalesced, introducing a new national ideology that was an amalgamation of Chan Buddhism , Confucianism and Feng Shui , laying the foundation for the formation of the new Goryeo Kingdom. King Gwangjong of Goryeo introduced a civil service examination system in 958, and King Seongjong of Goryeo complemented it with the establishment of a Confucian-style educational facilities and administration structures, extending for

10374-615: The chief cashier of the originating bank. These commercial banknotes only traded at face value in the market served by the issuing bank. Commercial banknotes have primarily been replaced by national banknotes issued by central banks or monetary authorities . National banknotes are often, but not always, legal tender , meaning that courts of law are required to recognize them as satisfactory payment of money debts . Historically, banks sought to ensure that they could always pay customers in coins when they presented banknotes for payment. This practice of "backing" notes with something of substance

10507-420: The chief minister and reformer Shang Yang (d. 338 BC), the ancient State of Qin was transformed by a new meritocratic yet harsh philosophy of Legalism. This philosophy stressed stern punishments for those who disobeyed the publicly known laws while rewarding those who labored for the state and strove diligently to obey the laws. It was a means to diminish the power of the nobility, and was another force behind

10640-692: The colonial government's so-called Ethical Policy . The merchant and labour partnerships of China developed into the Kongsi Federations across Southeast Asia, which were associations of Chinese settlers governed through direct democracy. On Kalimantan they established sovereign states, the Kongsi republics such as the Lanfang Republic , which bitterly resisted Dutch colonisation in the Kongsi Wars . There were many social groups that were excluded from

10773-706: The courts of precolonial states of Southeast Asia , such as the Sultanates of Malacca and Banten , and the Kingdom of Siam . With the consolidation of colonial rule, these became part of the civil bureaucracy in Portuguese, Dutch and British colonies, exercising both executive and judicial powers over local Chinese communities under the colonial authorities, examples being the title of Chao Praya Chodeuk Rajasrethi in Thailand's Chakri dynasty , and Sri Indra Perkasa Wijaya Bakti ,

10906-404: The daimyo, with 80% of peasants under the 5% samurai class, followed by craftsmen and merchants. However, various studies have revealed since about 1995 that the classes of peasants, craftsmen, and merchants under the samurai were equal, and the old hierarchy chart has been removed from Japanese history textbooks. In other words, peasants, craftsmen, and merchants are not a social pecking order, but

11039-456: The effects of heavy cross-border trade and cultural penetration by the American mass media. The list of divergent words becomes longer if considering regional Canadian dialects, especially as spoken in the Atlantic provinces and parts of Vancouver Island where significant pockets of British culture still remain. There are a considerable number of different accents within the regions of both

11172-426: The end of the Warring States period , agricultural land was distributed according to the well-field system (井田), whereby a square area of land was divided into nine identically-sized sections; the eight outer sections (私田; sītián ) were privately cultivated by farmers and the center section (公田; gōngtián) was communally cultivated on behalf of the landowning aristocrat. When the system became economically untenable in

11305-505: The financing of World War I by the Central Powers (by 1922 1 gold Austro-Hungarian krone of 1914 was worth 14,400 paper Kronen), the devaluation of the Yugoslav dinar in the 1990s, etc. Banknotes may also be overprinted to reflect political or economic changes that occur faster than new currency can be printed. In 1988, Austria produced the 5000 Schilling banknote ( Mozart ), which

11438-452: The first time to local areas. However, only aristocrats were permitted to sit for these examinations, and the sons of officials of at least 5th rank were exempt completely. In Joseon Korea, the Scholar occupation took the form of the noble yangban class, which prevented the lower classes from taking the advanced gwageo exams so they could dominate the bureaucracy. Below the yangban were

11571-462: The gentry class in education for the imperial examinations. Merchants began to imitate the highly cultivated nature and manners of scholar-officials in order to appear more cultured and gain higher prestige and acceptance by the scholarly elite. They even purchased printed books that served as guides to proper conduct and behavior and which promoted merchant morality and business ethics. The social status of merchants rose to such significance that by

11704-434: The government as the kingdom's finances were frequently deficient. Due to the growth of this class and the lack of government positions open for them, Sai On allowed yukatchu to become merchants and artisans while keeping their high status. There were three classes of yukatchu, the pechin , satonushi and chikudun , and commoners may be admitted for meritorious service. The Ryukyu Kingdom's capital of Shuri also featured

11837-522: The greater American dialect mixture that solidified by the mid-18th century. Below, several major North American English accents are defined by particular characteristics: A majority of North American English (for example, in contrast to British English) includes phonological features that concern consonants, such as rhoticity (full pronunciation of all /r/ sounds), conditioned T-glottalization (with satin pronounced [ˈsæʔn̩] , not [ˈsætn̩] ), T- and D-flapping (with metal and medal pronounced

11970-484: The late Ming dynasty. In some manner, this system of social order was adopted throughout the Chinese cultural sphere . In Japanese it is called "Shi, nō, kō, shō" ( 士農工商 , shinōkōshō ) , and the three under the samurai class were equal social and occupational classifications, while the shi was modified into a hereditary class, the samurai. In Korean it is called "Sa, nong, gong, sang" (사농공상), and in Vietnamese

12103-428: The late Ming period, many scholar-officials were unabashed to declare publicly in their official family histories that they had family members who were merchants. The scholar-officials' dependence upon merchants received semi-legal standing when scholar-official Qiu Jun (1420–1495), argued that the state should only mitigate market affairs during times of pending crisis and that merchants were the best gauge in determining

12236-413: The level of t'ungchih (Chinese: 同知 ; pinyin: tóngzhī ), or sub-prefect, and below. Garbing themselves in the official robes of their rank in most ceremonial functions, these wealthy dignitaries would adopt the conduct of scholar-officials. Chinese language newspapers would list them exclusively as such and precedence at social functions would be determined by title. In colonial Indonesia ,

12369-463: The meantime had also benefited from and utilized Confucian ethics in their business practices. By the Song period, merchants often colluded with the scholarly elite; as early as 955, the Scholar-officials themselves were using intermediary agents to participate in trading. Since the Song government took over several key industries and imposed strict state monopolies, the government itself acted as

12502-515: The merchants, they formed their own guilds . Researchers have pointed to the rise of wage labour in late Ming and early Qing workshops in textile, paper and other industries, achieving large-scale production by using many small workshops, each with a small team of workers under a master craftsman. Although architects and builders were not as highly venerated as the scholar-officials, there were some architectural engineers who gained wide acclaim for their achievements. One example of this would be

12635-614: The merchants, traders, and peddlers of goods were viewed by the scholarly elite as essential members of society, yet were esteemed least of the four occupations in society, due to the view that they were a threat to social harmony from acquiring disproportionally large incomes, market manipulation or exploiting farmers. However, the merchant class of China throughout all of Chinese history were usually wealthy and held considerable influence above its supposed social standing. The Confucian philosopher Xunzi encouraged economic cooperation and exchange. The distinction between gentry and merchants

12768-428: The mid-nineteenth century, commercial banks were able to issue their own banknotes, and notes issued by provincial banking companies were the common form of currency throughout England, outside London. The Bank Charter Act of 1844 , which established the modern central bank, restricted authorisation to issue new banknotes to the Bank of England , which would henceforth have sole control of the money supply in 1921. At

12901-590: The oldest user of lightweight promissory notes. In China during the Han dynasty , promissory notes appeared in 118 BC and were made of leather. Rome may have used a durable lightweight substance as promissory notes in 57 AD, which have been found in London . However, the first known banknotes were first developed in China during the Tang and Song dynasties, starting in the 7th century and were called " flying money ". Its roots were in merchant receipts of deposit during

13034-491: The paper into the lines of the engraving to make suitable banknotes. Another difficulty in counterfeiting banknotes was the paper, as the type of paper used for banknotes was rather different from the paper commercially available at that time. Despite this, some forgers successfully forged notes by dealing with and consulting paper makers, in order to make a similar kind of paper themselves. Furthermore, watermarked paper has also been used since banknotes first appeared; it involved

13167-402: The people of the region. However, the government still needed masses of paper products for the exchange certificates and the state's new issuing of paper money. For the printing of paper money alone, the Song government established several government-run factories in the cities of Huizhou , Chengdu , Hangzhou , and Anqi. The workforce employed in these paper money factories was quite large; it

13300-444: The receipts as payable to the bearer of the document rather than the original depositor. This meant that the note could be used as currency based on the security of the goldsmith, not the account holder of the goldsmith-banker. The bankers also began issuing a greater value of notes than the total value of their physical reserves in the form of loans, on the assumption that they would not have to redeem all of their issued banknotes at

13433-404: The respect that they produced essential goods needed by themselves and the rest of society. Although they could not provide the state with much of its revenues since they often had no land of their own to be taxed, artisans and craftsmen were theoretically respected more than merchants. Since ancient times, the skilled work of artisans and craftsmen was handed down orally from father to son, although

13566-456: The right of the holder of the note to collect the precious metal (usually gold or silver) deposited with a banker (via a currency account). In the 14th century, it was used in every part of Europe and in Italian city-state merchants colonies outside of Europe . For international payments, the more efficient and sophisticated bill of exchange ("lettera di cambio"), that is, a promissory note based on

13699-421: The same time period, which historians refer to as "the search for the inimitable banknote." During this time, bank notes also began to be double-sided and have more intricate patterns. The ease with which paper money can be created, by both legitimate authorities and counterfeiters, has led to a temptation in times of crisis such as war or revolution, or merely a spendthrift government, to produce paper money which

13832-404: The same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt. The Act gave the Bank of England an effective monopoly over the note issue from 1928. Today, a central bank or treasury is generally solely responsible within a state or currency union for the issue of banknotes. However, this is not always

13965-460: The same time. This was a natural extension of debt-based issuance of split tally sticks used for centuries in places like St. Giles Fair, however, done in this way, it was able to directly expand the expansion of the supply of circulating money. As these receipts were increasingly used in the money circulation system, depositors began to ask for multiple receipts to be made out in smaller, fixed denominations for use as money. The receipts soon became

14098-488: The same values permeated and prevailed across other East Asian societies where China exerted considerable influence. Japan and Korea were heavily influenced by Confucian thought that the four occupational social hierarchy in those societies were modeled from that of China's. A similar situation occurred in the Ryūkyū Kingdom with the scholarly class of yukatchu , but yukatchu status was hereditary and could be bought from

14231-718: The same), at least one of the LOT vowel mergers (the LOT – PALM merger is completed among virtually all Americans and the LOT – THOUGHT merger among nearly half, while both are completed among virtually all Canadians), and yod-dropping (with tuesday pronounced /ˈtuzdeɪ/ , not /ˈtjuzdeɪ/ ). The last item is more advanced in American English than Canadian English. Four occupations#The shang (商) The system did not factor in all social groups present in premodern Chinese society, and its broad categories were more an idealization than

14364-454: The same, as [ˈmɛɾɫ̩] ), L-velarization (with filling pronounced [ˈfɪɫɪŋ] , not [ˈfɪlɪŋ] ), as well as features that concern vowel sounds, such as various vowel mergers before /r/ (so that, Mary , marry , and merry are all commonly pronounced the same ), raising of pre-voiceless /aɪ/ (with price and bright using a higher vowel sound than prize and bride ), the weak vowel merger (with affected and effected often pronounced

14497-435: The sewing of a thin wire frame into paper mould. Watermarks for notes were first used in 1697, by Rice Watkins, a Berkshire paper maker. Watermarks and special paper made it harder and more expensive to forge banknotes, since more complex and expensive paper-making machines were needed. In the early 19th century (the so-called Bank Restriction Period , 1797–1821), the dramatically increased demand for bank notes slowly forced

14630-517: The shopkeepers), Chao Cuo (d. 154 BC) states that they wore fine silks, rode in carriages pulled by fat horses, and whose wealth allowed them to associate with government officials. Historians like Yu Yingshi and Billy So have shown that as Chinese society became increasingly commercialized from the Song dynasty onward, Confucianism had gradually begun to accept and even support business and trade as legitimate and viable professions, as long as merchants stayed away from unethical actions. Merchants in

14763-679: The signatures of its president and cashier on a preprinted note. By this time, the notes were standardized in appearance and not too different from Federal Reserve Notes . In a small number of countries, private banknote issuing continues to this day. For example, by virtue of the complex constitutional setup in the United Kingdom, certain commercial banks in two of the state's four constituent countries ( Scotland and Northern Ireland ) continue to print their own banknotes for domestic circulation, even though they are not fiat money or declared in law as legal tender anywhere. The UK's central bank,

14896-468: The similarities between the pronunciations (accents), vocabulary, and grammar of American English and Canadian English , the two spoken varieties are often grouped together under a single category. Canadians are generally tolerant of both British and American spellings, with British spellings of certain words (e.g., colour ) preferred in more formal settings and in Canadian print media; for some other words

15029-528: The specific classes, such that, for example, a son born to a gong craftsman was able to become a part of the shang merchant class, and so on. Theoretically, any man could become an official through the Imperial examinations. From the fourth century BC, the shi and some wealthy merchants wore long flowing silken robes , while the working class wore trousers. During the ancient Shang (1600–1046 BC), Western Zhou (1046–771 BC), Spring and Autumn (770-481 BC), and early Warring States (475-221 BC) periods,

15162-445: The strength of a nation's riches in resources. The Imperial court followed this guideline by granting merchants licenses to trade in salt in return for grain shipments to frontier garrisons in the north. The state realized that merchants could buy salt licenses with silver and in turn boost state revenues to the point where buying grain was not an issue. Merchants banded in organisations known as huiguan or gongsuo ; pooling capital

15295-460: The throne from his predecessor, was said to be a merchant. Archaeological artifacts and oracle bones suggest a high status was accorded to merchant activity. In the Spring and Autumn period , Hegemon of China Duke Huan of Qi appointed Guan Zhong , a merchant, as Prime Minister. He cut taxes for merchants, built rest stops for merchants, and encouraged other lords to lower tariffs. In Imperial China,

15428-499: The transformation of the shi class from warrior-aristocrats into merit-driven officials. When the Qin dynasty (221–206 BC) unified China under the Legalist system, the emperor assigned administration to dedicated officials rather than nobility, ending feudalism in China, replacing it with a centralized, bureaucratic government. The form of government created by the first emperor and his advisors

15561-451: The whole of society, while the land tax exacted on farmers' lots and landholders' property produced much of the state revenue for China's pre-modern ruling dynasties. Therefore, the farmer was a valuable member of society, and even though he was not considered one with the shi class, the families of the shi were usually landholders that often produced crops and foodstuffs. From the ninth century BC (late Western Zhou dynasty ) to around

15694-505: The work of architects and structural builders were sometimes codified, illustrated, and categorized in Chinese written works. Artisans and craftsmen were either government-employed or worked privately. A successful and highly skilled artisan could often gain enough capital in order to hire others as apprentices or additional laborers that could be overseen by the chief artisan as a manager. Hence, artisans could create their own small enterprises in selling their work and that of others, and like

15827-479: Was a period of exceptional social mobility, with instances of merchants of samurai-descent or commoners becoming samurai. By the eighteenth century samurai and merchants had become interwoven intimately, despite general samurai hostility toward merchants who as their creditors were blamed for the financial difficulties of a debt-ridden samurai class. In Silla Korea , the scholar-officials, also known as head rank 6, 5, and 4 (두품), were strictly hereditary castes under

15960-406: Was a very high level of overlap and mixing between the gentry and the merchants. Han dynasty writers mention merchants owning huge tracts of land. A merchant who owned property worth a thousand catties of gold—equivalent to ten million cash coins—was considered a great merchant. Such a fortune was one hundred times larger than the average income of a middle class landowner-cultivator and dwarfed

16093-441: Was based on precious metals . Banknotes were seen by some as an I.O.U. or promissory note : a promise to pay someone in precious metal on presentation (see representative money ). But they were readily accepted—for convenience and security—in London , for example, from the late 1600s onwards. With the removal of precious metals from the monetary system, banknotes evolved into pure fiat money . The first banknote-type instrument

16226-511: Was carried out by Sir William Phips as the governor of the Province of Massachusetts Bay starting on December 20, 1690, to help fund the war effort against France . The other Thirteen Colonies followed in Massachusetts' wake and began issuing bills of credit , an early form of paper currency distinct from banknotes, to fund military expenditures and for use as a common medium of exchange . By

16359-453: Was compared with the putting-out system used in European textile industries between the 13th and 18th centuries. As the interregional silk trade grew, merchant houses began to organize manufacture to guarantee their supplies, providing silk to households for weaving as piece work . In Ancient pre-Imperial China, merchants were highly regarded as necessary for the circulation of essential goods. The legendary Emperor Shun , prior to receiving

16492-490: Was invented by Portals, part of the De La Rue group in the UK. Other related methods include watermarking to reduce the number of corner folds by strengthening this part of the note. Varnishing and coatings reduce the accumulation of dirt on the note for longer durability in circulation. Another security feature is based on windows in the paper, which are covered by holographic foils to make it very hard to copy. Such technology

16625-562: Was not as clear or entrenched as in Japan and Europe, and merchants were even welcomed by gentry if they abided by Confucian moral duties. Merchants accepted and promoted Confucian society by funding education and charities, and advocating Confucian values of self-cultivation of integrity, frugality, and hard work. By the late imperial period, it was a trend in some regions for scholars to switch to careers as merchants. William Rowe's research of rural elites in late imperial Hanyang, Hubei shows that there

16758-785: Was not supported by precious metal or other goods; this often led to hyperinflation and a loss of faith in the value of paper money, e.g. the Continental Currency produced by the Continental Congress during the American Revolution , the Assignats produced during the French Revolution , the paper currency produced by the Confederate States of America and the individual states of the Confederate States of America ,

16891-431: Was originally restricted to women, and many women were employed in the silk-making industry. Even as knowledge of silk production spread to the rest of the world, Song dynasty China was able to maintain near-monopoly on manufacture by large scale industrialization, through the two-person draw loom, commercialized mulberry cultivation, and a factory production. The organization of silk weaving in 18th-century Chinese cities

17024-412: Was popular as it distributed risk and eased the barriers to market entry. They formed partnerships known as huoji zhi (silent investor and active partner), lianhao zhi (subsidiary companies), jingli fuzhe zhi (owner delegates control to a manager), xuetu zhi (apprenticeship), and hegu zhi (shareholding). Merchants had a tendency to invest their profits in vast swathes of land. Outside of China,

17157-423: Was recorded in 1175 that the factory at Hangzhou alone employed more than a thousand workers a day. However, the government issues of paper money were not yet nationwide standards of currency at that point; issues of banknotes were limited to regional areas of the empire, and were valid for use only in a designated and temporary limit of three years. Between 1265 and 1274, the late southern Song government introduced

17290-887: Was still prominent in both dynasties. It was not until the Song dynasty (960–1279) that the recruitment of those who passed the exams and earned degrees was given greater emphasis and significantly expanded. The shi class also became less aristocratic and more bureaucratic due to the highly competitive nature of the exams during the Song period. Beyond serving in the administration and the judiciary, scholar-officials also provided government-funded social services, such as prefectural or county schools, free-of-charge public hospitals, retirement homes and paupers' graveyards. Scholars such as Shen Kuo (1031–1095) and Su Song (1020–1101) dabbled in every known field of science, mathematics, music and statecraft, while others like Ouyang Xiu (1007–1072) or Zeng Gong (1019–1083) pioneered ideas in early epigraphy , archeology and philology . From

17423-493: Was used alongside them. The central government soon observed the economic advantages of printing paper money, issuing a monopoly for the issue of these certificates of deposit to several deposit shops. By the early 12th century, the amount of banknotes issued in a single year amounted to an annual rate of 26 million strings of cash coins. By the 1120s, the central government started to produce its own state-issued paper money (using woodblock printing ). Even before this point,

17556-490: Was used by later dynasties to structure their own government. Under this system, the government thrived, as talented individuals could be more easily identified in the transformed society. However, the Qin became infamous for its oppressive measures, and so collapsed into a state of civil war after the death of the Emperor. The victor of this war was Liu Bang , who initiated four centuries of unification of China proper under

17689-451: Was used in China in the 7th century, during the Tang dynasty (618–907). Merchants would issue what are today called promissory notes in the form of receipts of deposit to wholesalers to avoid using the heavy bulk of copper coinage in large commercial transactions. Before these notes, circular coins with a rectangular hole in the middle were used. Multiple coins could be strung together on

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