Note Payable

Jean Baptiste Monge (artist)

Notes payable are legal instruments that allow individuals in a barter economy to make formal agreements surrounding payments to be made in the future, either at a set date or upon the payee's request, based on predefined conditions. When someone entrusts goods to another party, and repayment is necessary, the party responsible for repayment can issue a "promissary" note. This effectively functions as a private currency, representing the full value of the deposited goods and promising their eventual settlement.

In a designated local, commonly a hamlet or village, the payee introduces the note to a creditor before a predetermined date. Within regions operating on a bartering system, especially in a developed hex that lacks a coin symbol, personal acquaintance among all three parties — the payer, payee, and creditor — is essential. A payer won't commit to a note for an unknown entity, and similarly, the creditor won't recognize a note without familiarity with both involved parties.

Challenges of a Barter Economy

In the absence of a standardized currency or a centralized banking system, trust plays a pivotal role in a barter economy. As seen in the scenario, personal acquaintance and trust among all parties involved are prerequisites for transactions. This reliance on personal relationships often limits the scope and scale of trading, making expansive trade networks challenging.

The introduction of a "creditor" and the use of notes suggest an emergent credit system. This is an advanced concept within a barter economy, allowing for time-delayed exchanges and potentially enabling more complex transactions than simple direct trades.

The arrangement most commonly occurs with the delivery of farm produce to a garner or a carter post, where either carries no coin with which to remunerate the farmer. In turn, the farmer has no wish to be paid in coin that must be carried and kept at home, only to be then carried to a village market. Thus the farmer instead carries the note, which is remunerated in the village, which the farmer can then use to buy goods and services, which are then brought home, alleviating the farmer of ever having to carry money.

Likewise, a carter may pay a garner to carry away the goods in the garner's keeping; the garner then carries the carter's note the village in the same manner as the farmer.

Banking

In places where bank branches are found, notes payable serve as a means to transfer the request for sums between large cities where bank houses exist. Such notes are elaborate and often magically protected, to ensure their security.

See also,
Coin (symbol)
Debt