Money History
The word money comes from the Latin 'Moneta' - which is the first Roman coinage that was minted at the temple of Juno Moneta in 344BC. Before coinage, various objects such as cattle, pig's teeth and shells had been used as money.
For most of its history money has taken the form of coins made of precious metal. The money has had intrinsic value. Many of the units of modern money recall their origin in amounts of precious metal (e.g the pound sterling was originally the Roman pound (twelves ounces) of silver.)
The Beginning of Banking in Britain
In Great Britain, the modern age of banking began in 1640 when King Charles I, needed cash to pay the (English) army that he was raising against Scotland ( of which he was also King.)to seized the golf bullion that many merchants and nobles had placed in the Tower of London for safe-keeping.
In 1642, a further warfare broke our with the English Civil War between the King and Parliament. London was the stronghold of Parliament and was the safest city in the Kingdom. So those who desired not to have their bullion seized by the side or the other placed their gold in the hands of goldsmiths in city. Who naturally had their own methods of safe-keeping.
Goldsmiths: The First Bankers
In exchange for this gold, the depositors received a receipt: 'promissory notes'. These notes, the first banknotes. Once their veracity was established proved to be very popular with their recipients as gold was heavy and cumbersome. Soon, these notes began to be used as currency.
The Bank of England
Then in 1694, this practice of creating money out of thin air effectively legitimised with the founding of Bank of England. It was not the first bank to be founded (Coutts was founded in 1690). But the nature of its creations was central to the role that banks went on the play in the supply of money.
In 1694, England was still a predominantly rural country. Most people still grew their own food, built their own homes, collected their own firewood for fuel, drew their own water from wells and frequently made their own clothes. Money was not the necessity that it is today for most people, but it was still needed in large amounts when the nation went to war.
More importantly, they were given the authority to create £1.2 million in paper money for private lending. This paper money was theoretically backed by the gold, but as that had been lent to the King. It meant that the same sum of money was lent out twice over. The validity of this practice was never testes on the a court of law. As it remained a matter that was hidden from the general public. Even today, the banks like to draw a veil over their activities.
Growth During the Industrial Revolution
The 18th and 19th century saw the growth and development of the British banking system, which soon spread around the world with the Empire.
Here are some images of the Trip that I went to which is the Peoples History Museum which had an exhibition on Money.
Pictures of Manchester's History Museum - Money Exhibition
The word money comes from the Latin 'Moneta' - which is the first Roman coinage that was minted at the temple of Juno Moneta in 344BC. Before coinage, various objects such as cattle, pig's teeth and shells had been used as money.
For most of its history money has taken the form of coins made of precious metal. The money has had intrinsic value. Many of the units of modern money recall their origin in amounts of precious metal (e.g the pound sterling was originally the Roman pound (twelves ounces) of silver.)
The Beginning of Banking in Britain
In Great Britain, the modern age of banking began in 1640 when King Charles I, needed cash to pay the (English) army that he was raising against Scotland ( of which he was also King.)to seized the golf bullion that many merchants and nobles had placed in the Tower of London for safe-keeping.
In 1642, a further warfare broke our with the English Civil War between the King and Parliament. London was the stronghold of Parliament and was the safest city in the Kingdom. So those who desired not to have their bullion seized by the side or the other placed their gold in the hands of goldsmiths in city. Who naturally had their own methods of safe-keeping.
Goldsmiths: The First Bankers
In exchange for this gold, the depositors received a receipt: 'promissory notes'. These notes, the first banknotes. Once their veracity was established proved to be very popular with their recipients as gold was heavy and cumbersome. Soon, these notes began to be used as currency.
The Bank of England
Then in 1694, this practice of creating money out of thin air effectively legitimised with the founding of Bank of England. It was not the first bank to be founded (Coutts was founded in 1690). But the nature of its creations was central to the role that banks went on the play in the supply of money.
In 1694, England was still a predominantly rural country. Most people still grew their own food, built their own homes, collected their own firewood for fuel, drew their own water from wells and frequently made their own clothes. Money was not the necessity that it is today for most people, but it was still needed in large amounts when the nation went to war.
More importantly, they were given the authority to create £1.2 million in paper money for private lending. This paper money was theoretically backed by the gold, but as that had been lent to the King. It meant that the same sum of money was lent out twice over. The validity of this practice was never testes on the a court of law. As it remained a matter that was hidden from the general public. Even today, the banks like to draw a veil over their activities.
Growth During the Industrial Revolution
The 18th and 19th century saw the growth and development of the British banking system, which soon spread around the world with the Empire.
Here are some images of the Trip that I went to which is the Peoples History Museum which had an exhibition on Money.
Pictures of Manchester's History Museum - Money Exhibition
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