The History of the Bank of England

According to knop whether or not the actual physical money stuff in circulation corresponds to this imaginary money is not particularly important. It makes no real difference whether its pure silver, debased silver leather tokens or dried cod, provided the state is willing to accept it in payment of taxes. Modern bank notes actually work on a similar principle, except in reverse. The i o u can operate as money only as long as henry never pays his debt. To this day, this loan has never been paid back. If it ever were, the entire monetary system of great britain would cease to exist.