Editing Cash (section)

==History==
{{Accounting}}
In Western Europe, after the [[fall of the Western Roman Empire]], coins, silver jewelry and [[hacksilver]] (silver objects hacked into pieces) were for centuries the only form of money, until [[Republic of Venice|Venetian]] merchants started using silver bars for large transactions in the [[early Middle Ages]]. In a separate development, Venetian merchants started using [[banknote|paper bills]], instructing their [[bank]]er to make payments. Similar marked silver bars were in use in lands where the Venetian merchants had established representative offices. The [[Byzantine Empire]] and several states in the [[Balkan]] area and [[Kievan Rus]] also used marked silver bars for large payments. As the world economy developed and silver supplies increased, in particular after the colonization of South America, coins became larger and a standard coin for international payment developed from the 15th century: the Spanish and Spanish colonial coin of [[Peso|8 reales]]. Its counterpart in gold was the Venetian [[ducat]].

Coin types would compete for markets. By conquering foreign markets, the issuing rulers would enjoy extra income from [[seigniorage]] (the difference between the value of the coin and the value of the metal the coin was made of). Successful coin types of high nobility would be copied by lower nobility for seigniorage. Imitations were usually of a lower weight, undermining the popularity of the original. As feudal states coalesced into kingdoms, imitation of silver types abated, but gold coins, in particular, the gold ducat and the gold [[Florin (Italian coin)|florin]] were still issued as trade coins: coins without a fixed value, going by weight. Colonial powers also sought to take away market share from Spain by issuing trade coin equivalents of silver Spanish coins, without much success.

In the early part of the 17th century, [[English East India Company]] coins were minted in England and shipped to the East. In England, over time the word ''cash'' was adopted from [[Sanskrit]] कर्ष karsa,{{dubious|date=May 2012}} a weight of gold or silver but akin to the [[Old Persian]] [[wikt:𐎣𐎼𐏁|𐎣𐎼𐏁]] karsha, unit of weight (83.30 grams). East India Company coinage had both [[Urdu]] and English writing on it, to facilitate its use within the trade. In 1671, the directors of the East India Company ordered a mint to be established at [[Bombay]], known as Bombaim. In 1677 this was sanctioned by the Crown, the coins, having received royal sanction, were struck as silver rupees; the inscription runs "The rupee of Bombaim", by the authority of Charles II.

Around that time, coins were also being produced for the East India Company at the [[Madras]] mint. The Tamil the word for money is kaasu,<ref>{{Cite web|url=https://en.wiktionary.org/wiki/%E0%AE%95%E0%AE%BE%E0%AE%9A%E0%AF%81|title=kācu|access-date=2023-05-08}}</ref> which may  have been modified into 'cash'.  Both words, 'kaasu' and 'cash', have the same meaning, unlike money box. The currency at the company's Bombay and Bengal administrative regions was the rupee. At Madras, however, the company's accounts were reckoned in ''pagodas'', ''fractions'', ''fanams'', ''faluce'' and ''cash''. This system was maintained until 1818 when the rupee was adopted as the unit of currency for the company's operations.

[[File:Ancientchinesecoins.jpg|thumb|Traditional holed Chinese coinage is also known as ''[[Cash (Chinese coin)|cash]]''.]]
[[Paper money]] was first used in China during the [[Tang dynasty]] 500 years prior to it catching on in Europe.<ref>{{Cite magazine|url=https://content.time.com/time/specials/packages/article/0,28804,1914560_1914558_1914593,00.html|title=Top 10 Things You Didn't Know About Money|date=2009-08-05|magazine=Time|access-date=2019-10-06|language=en-US|issn=0040-781X}}</ref> During his visit to China in the 13th century, Marco Polo was amazed to find that people traded paper money for goods rather than valuable coins made of silver or gold. He wrote extensively about how the Great Kaan used a part of the Mulberry Tree to create the paper money as well as the process with which a seal was used to impress on the paper to authenticate it. Marco Polo also talks about the chance of forgery and states that someone caught forging money would be punished with death.<ref>{{Cite web|url=http://thecantosproject.ed.ac.uk/index.php/canto-17-27-overview/xviiia/xviii-sources/280-marco-polo-kublai-s-paper-money|title=The Cantos Project – Marco Polo: Kublai's paper money|website=thecantosproject.ed.ac.uk|access-date=2019-12-07}}</ref> In the 17th century, European countries started to use paper money in part due to a shortage of precious metals, leading to fewer coins being produced and put into circulation.<ref>{{Cite web|url=https://www.napoleon.org/en/history-of-the-two-empires/articles/a-history-of-the-franc-the-key-moments/|title=A history of the Franc: the key moments|website=napoleon.org|language=en-US|access-date=2019-10-06}}</ref> At first, it was most popular in the colonies of European powers. In the 18th century, important paper issues were made in colonies such as [[Sri Lanka|Ceylon]] and the bordering colonies of [[Essequibo (colony)|Essequibo]], [[Demerara]] and [[Berbice]]. [[John Law (economist)|John Law]] did pioneering work on banknotes with the ''Banque Royale''. The relation between [[money supply]] and inflation was still imperfectly understood and the bank went under rendering its notes worthless, because they had been over-issued. The lessons learned were applied to the [[Bank of England]], which played a crucial role in financing the [[Peninsular War]] against French troops, hamstrung by a metallic Franc de Germinal.

The ability to create paper money made nation-states responsible for the management of [[inflation]], through control of the [[money supply]]. It also made a direct relation between the metal of the coin and its denomination superfluous. From 1816, coins generally became [[token money]], though some large silver and gold coins remained standard coins until 1927.{{citation needed|date=January 2017}} The [[World War I]] saw standard coins disappear to a very large extent. Afterward, standard gold coins, mainly [[Sovereign (British coin)|British sovereigns]], would still be used in colonies and less developed economies and silver [[Maria Theresa thaler]]s dated 1780 would be struck as trade coins for countries in East Asia until 1946 and possibly later locally.

Cash has now become a very small part of the money supply. Its remaining role is to provide a form of currency storage and payment for those who do not wish to take part in other systems, and make small payments conveniently and promptly, though this latter role is being replaced more and more frequently by electronic [[payment system]]s. Research has found that the demand for cash decreases as debit card usage increases because merchants need to make less change for customer purchases.<ref>{{cite web|url=http://www.chicagofed.org/digital_assets/publications/working_papers/2007/wp2007_04.pdf |title=Federal Reserve Bank of Chicago, ''Debit Card and Cash Usage: A Cross-Country Analysis'', March 2007 |access-date=15 November 2013}}</ref>

Cash is increasing in circulation. The amount of the [[United States dollar]] in circulation increased by 42% from 2007 to 2012.<ref>{{cite web|last=Williams|first=John|title=Cash Is Dead! Long Live Cash!|url=http://www.frbsf.org/our-district/about/annual-report/annual-report-2012/2012-annual-report-essay-cash-is-dead-long-live-cash/|publisher=Federal Reserve Bank of San Francisco}}</ref> The amount of [[pound sterling]] banknotes in circulation increased by 29% from 2008 to 2013.<ref>{{cite web|title=Banknote Statistics|url=http://www.bankofengland.co.uk/banknotes/Pages/about/stats.aspx|publisher=Bank of England|access-date=2013-10-17|archive-date=2017-11-16|archive-url=https://web.archive.org/web/20171116141402/http://www.bankofengland.co.uk/banknotes/Pages/about/stats.aspx|url-status=dead}}</ref> The amount of [[euro]] in circulation increased by 34% from August 2008 to August 2013 (2% of the increase was due to the adoption of euro in [[Slovakia]] 2009 and in [[Estonia]] 2011).<ref>{{cite web |title=Banknotes and coins circulation |date=29 January 2021 |url=http://www.ecb.europa.eu/stats/policy_and_exchange_rates/banknotes+coins/circulation/html/index.en.html |publisher=European Central Bank}}</ref>