Origin of Bank Notes.

Manawatu Herald, Volume III, Issue III, 13 February 1892, Page 3

Origin of Bank Notes.

The Chinese are credited with being the first to use bank notes. This was in the reign of the Em peror Ou-ti, who, being very hard up, gave his treasurer to understand that this intolerable state of affairs must not continue, At. that time it was customary for princes and courtiers on entering the royal presence to cover their faces with a piece of skin. Taking advantage of this custom, the treasurer caused a decree to be issued forbidding the use of any other skins for this purpose except those of certain white deer in the royal parks. Immediately there was a demand for pieces of these skins, which, being a monopoly, were sold at a high price, and the . royal coffers re-filled. This high price enabled, them to pass from one nobleman to another just like money. For all this,- however, we decline to agree with some writers who compare these pieces of skin with bank notes. Bank notes are simply promises to pay, and have no intrinsic value. These skins have nothing of the nature of a promise about them, but did possess an intrinsic value due to the purpose for which they were , used. More than a thousand years ipago, however, in the reign of Hiant song, the Chinese had bank notes, which they called " flying money " The temptation to over issue these notes were too great, however, and we find that shortly after their introduction it took 11,000 mm, or something like £3,000 to buy a cake of rice. — Cassell's Saturday Journal.