Primarily because people left their gold with the goldsmiths for safekeeping, they were to become the the first bankers in early England. The first paper money were “Receipts” for those gold deposits representing the gold in storage. These were easier to carry around, and safer, thus making paper money more popular. Eventually the goldsmiths realized that few people ever came back to trade in their “receipts” for the gold at any one time. It was then that Goldsmiths realized they … Continue reading →