Legal Definitions - goldsmiths' notes

Goldsmiths' notes refers to a historical type of promissory note issued by goldsmiths, particularly in 17th-century England. At that time, goldsmiths often acted as early bankers, providing secure storage for people's money and valuables. When a customer deposited money (typically gold or silver coins) with a goldsmith, the goldsmith would issue a written note acknowledging the receipt of the funds and promising to pay that money back to the customer upon demand. These notes were essentially early forms of bank notes or deposit receipts, representing a claim on the deposited funds.

• Example 1: Safekeeping for a Merchant
  A wealthy merchant, Sir Reginald, has just received a substantial payment in gold ducats for a successful trade venture. Concerned about the security of keeping such a large sum of gold in his home, he takes the ducats to a reputable goldsmith, Master Thomas, for safekeeping. Master Thomas counts the gold and, in return, issues Sir Reginald a written document—a goldsmith's note—promising to pay him the equivalent value in gold upon demand. Sir Reginald can then present this note whenever he wishes to withdraw his funds.

  This illustrates the goldsmith acting as a secure depository for money. The note serves as a formal receipt and a promise to return the deposited funds, much like a modern bank deposit slip but with the added promise of payment.

• Example 2: Facilitating a Large Purchase
  Lady Eleanor needs to purchase a new estate but finds it cumbersome and risky to transport a chest full of heavy silver coins across the countryside to the seller. Instead, she deposits her silver with a local goldsmith, who provides her with a goldsmith's note for the full amount. She then presents this note to the estate seller, who, trusting the goldsmith's reputation, accepts the note as payment, knowing he can redeem it for silver from the goldsmith later.

  Here, the goldsmith's note functions as a form of transferable currency or payment instrument. Lady Eleanor uses it to settle a debt without physically moving the coins, demonstrating its utility as a secure and convenient medium of exchange, backed by the goldsmith's promise to pay.