By: Martha, Laramie, Blake, Dakota, and Joseph
Paper currency first developed in Tang Dynasty China during the 7th century. Notes or bills were often referred to in 18th century novels and were often a key part of the plot such as a "note drawn by Lord X for £100 which becomes due in 3 months' time". 1695 used as a bill on demand to pay someone an exact amount to a certain person or place. They were first issued by the bank of England to raise money for King George the 3 war against France. Originally, the banknote was simply a promise to the bearer that he 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. The modern banknote rests on the assumption that money is determined by a social and legal consensus.