Encyclopedia of Early Modern History Online

Get access

Banknote
(742 words)

Banknotes in the form of slips of paper or bank slips were not means of payment in the Early Modern period but simply a promise of payment by the bank that had brought them into circulation. They became popular in the mid-17th century when the London goldsmiths first offered a wide range of modern banking services. Merchants and aristocratic landowners maintained an account with the goldsmith, which they used both for overdraft credit and for transfers.

The so-called goldsmith bankers discounted bills of exchange, IOUs and state papers (Discount), i.e. they cashed credit papers be…

Cite this page
North, Michael, “Banknote”, in: Encyclopedia of Early Modern History Online, Editors of the English edition: Graeme Dunphy, Andrew Gow. Original German Edition: Enzyklopädie der Neuzeit. Im Auftrag des Kulturwissenschaftlichen Instituts (Essen) und in Verbindung mit den Fachherausgebern herausgegeben von Friedrich Jaeger. Copyright © J.B. Metzlersche Verlagsbuchhandlung und Carl Ernst Poeschel Verlag GmbH 2005–2012. Consulted online on 23 March 2019 <http://dx.doi.org/10.1163/2352-0272_emho_SIM_017316>
First published online: 2015
First print edition: 20160321



▲   Back to top   ▲