In the last part, we looked at the rise of trade and the emergence of empires as the contributing factors towards the growth of banking. In this part, we will look at two other major factors that drove banking in the early parts of human history – wars and paper money. The horror of wars Empires were not built on dialogues and discussions. Along with tactical nous, they also needed strong-arm tactics and military might. Loyalty would not have been the only drug that propelled millions of soldiers to fight for their kings. Machines, weapons, cavalry, horses, chariots – all needed money to be built or to be maintained. In the pre-historic age, when kings ruled with an iron fist, the king and a few religious leaders controlled the money of each state. In times of war, the king could always levy extra taxes. As nations grew, the distribution of wealth amongst its citizens became more widespread. The concept of ownership shifted from the concept of kingship to individualism. Kings and...
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