<P> Common prototypes of bills of exchanges and promissory notes originated in China, where special instruments called feitsyan were used to safely transfer money over long distances during the reign of the Tang Dynasty in the 8th century . </P> <P> In the mid-13th century, the Ilkhanid rulers of Persia printed the "cha" or "chap" which was used as paper money for limited usage for transactions between the court and the merchants for about three years before it collapsed . The collapse was caused by the court accepting the "cha" only at progressive discount . </P> <P> Later, such documents were used for money transfer by Middle Eastern merchants, who had used the prototypes of bills of exchange--suftadja / softa from the 8th century to present . Such prototypes came to be used later by the Iberian and Italian merchants in the 12th century . In Italy in the 13--15th centuries, bills of exchange and promissory notes obtained their main features, while further phases of their development have been associated with France (16--18th centuries, where the endorsement had appeared) and Germany (19th century, formalization of Exchange Law). The first mention of the use of bills of exchange in English statutes dates from 1381, under Richard II; the statute mandates the use of such instruments in England, and prohibits the future export of gold and silver specie, in any form, to settle foreign commercial transactions . English exchange law was different than continental European law because of different legal systems; the English system was adopted later in the United States . </P> <P> The modern emphasis on negotiability may also be traced to Lord Mansfield . Germanic Lombards documents may also have some elements of negotiability . </P>

Introduction of preparation of report on various treatments of bill of exchange