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Paper money developed in Europe in the following manner. During the Middle Ages it was customary for wealthy families to store their gold, jewels, and coins in vaults kept in the cellars of goldsmiths' shops. The goldsmiths gave written receipts for all valuables received, and these articles could be redeemed with the receipts at any time. Eventually the receipts themselves were being used as Currency by those who didn't want to take the trouble to go to the vault every time they needed money, and businesses throughout Europe began accepting them as readily as gold. The practice gradually spread: paper money became a common form of legal tender, and its use contributed to the establishment of the banking system, which was in full swing by the sixteenth century. This website was created for free with Own-Free-Website.com. Would you also like to have your own website?
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