It wasn’t until the early 1700s, however, that the pre-printed form of the check – as we know it today – was first used by the Bank of England. To keep track of the exchange of checks, banks simply kept a tally of balances until they settled with each other. In all of these historical cases, it seems to me that the whole idea of depositing and cashing check is all built on some notion of trust.
Read the rest of the article in the Austin Post.
Watch this excerpt from The Shepherd of the Hills (fast forward to 8:33)
"A check is a letter to the bank, where I have my money, telling them to pay cash to whoever has that letter.”--Daniel Howitt, The Shepherd of the Hills