CURRENCIES HISTORY LESSON British goldsmiths: The rise of modern banking? One of the earliest precursors to our modern banking system began with a united group of 17th-century British goldsmiths during the reign of Charles I. These craftspeople worked with precious metals and collaborated to meet their common needs for the safe storage of gold, silver and currency. To achieve this, they commissioned the construction of secure vaults. But during the tumultuous English Civil War of the 1640s, the goldsmiths realized that their money was far safer in the hands of numerous borrowers than locked in a vault where thieves could reach it. In addition to loans, they expanded their services to include money transfers between towns and individuals, trading foreign currency, and discounting bills of An early handwritten banknote for £22 dated 18th June 1697 exchange. The paper receipts they gave as proof of loans became so widely accepted that paper bills soon became a more accepted form of currency. -Julie Kendrick MSSP redefi ned. SEI Sphere SM Cybersecurity I Network operations I Cloud sphere@seic.com 610-676-7700 seic.com/sphere Photo © Bank of England (accession I/004)http://www.seic.com/sphere