Museum

The earliest promissory notes would have been made of vellum, parchment or some kind of animal skin. Paper was virtually unknown outside China until the middle of the 12th Century and came to Europe via Arabia and North Africa, Herault, in France, established in 1189, claims to have had the first paper mill in Europe.

In England the earliest kind of paper money consisted of notes issued by goldsmiths as receipts of valuables deposited by merchants in their vaults. These were used as promissory notes and accepted as legal tender following an exchequer order by King Charles II in 1965.

The first paper money to be issued in Europe was in 1661. The Stockholder Bank of Sweden issued credit notes (Kreditivse dlar) in place of the copper currency.

Paper money became popular in England and France at the end of 17th Century. The earliest American money were issued by Massachusetts Bay Colony in December, 1690.

Canada has a long and interesting history of paper money; indeed its paper money is slightly older than the U.S. In 1685, the French authorities failed in supplying money to their troops stationed in Canada; instead playing cards, on which the Governor signed a promise to pay the bearer a sum of money in coin when supply of specie arrived.