http://www.lendinguniverse.com/ California construction loan When the Roman Empire collapsed, the highly developed monetary systems of the ancient world collapsed with it. Subsistence agriculture and petty barter dominated the scene. Money was used only in the trickle of long-distance trade in luxuries which survived. In England, goldsmiths became predominant in the banking business, and it was the English goldsmiths who led the way in the development of bank-note currency. The English goldsmiths accepted deposits-with a promise to pay on demand-and then lent most of what they received. They gave interest-bearing receipts and permitted the holders to transfer ownership of deposits by endorsing these receipts. Presently, to make endorsements unnecessary, the receipts were made payable to the bearer. Then, because it was so convenient to make payments by giving goldsmiths’ receipts, customers became willing to take non-interest-bearing receipts. As a final step, the receipts were issued in round numbers and engraved on standard forms. These were bank notes, the earliest form of paper money. The rising volume of economic activity made many people eager to borrow and willing to pay high rates of interest. Merchants wanted to borrow to buy goods to sell abroad. Nobles rich in land but poor in money borrowed against their rents once feudal services were commuted into money rents. Monarchs were eager to borrow to finance their wars.
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