Now we have computer systems that can instantly determine the funds available in an account when a transaction occurs. One bank can also contact another bank instantly when an individual wants cash from a bank that they are not a member of.
How did people manage to do this when there were mountains, oceans, and seas between one bank another?
In: Economics
Checks were first implemented (so far as we know) with the Knights Templar in their escorting people to the Holy land. People would deposit gold/silver/jewels and the like at a Templar location in Europe. They would be issued a note/letter stating how much was deposited (minus fees) and then they and their Templar Guards would be given a ciphered pass code (each different). When they got to their destination they would take the note to a different Templar depository, give their pass codes proving they were entitled to the money and it would be given to them.
Similar concepts were done with various banks who trusted each other in the following centuries but the modern concept and usage of a check was not common until large chain banks, or event national banks were implemented and by that point in time we had long range communications of the telegraph.
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