Thursday, November 22, 2012

The first European paper money experiment

Bank notes are considered paper money, but there are other forms of paper money. The first European bank notes were created in 1661 by the Stockholms Banco in Sweden. The bank was founded in 1657 by Johan W. Palmstruch.

This bank note is dated 1666. Palmstruch engaged in dishonest accounting practices and created more bank notes than he could account for. The bank collapsed in 1668.

Palmstruch was arrested and imprisoned for "dishonest accounting." The father of European paper money died in prison in 1671. 

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