, ▁under ▁the ▁o vers ight ▁of ▁the ▁pri ests ▁and ▁the ▁r uler . ▁Lo ans ▁were ▁made ▁at ▁a ▁custom ary ▁fixed ▁ 2 0 % ▁interest ▁rate ; ▁this ▁custom ▁was ▁continued ▁in ▁Bab yl on , ▁Mes op ot am ia ▁and ▁written ▁into ▁the ▁ 6 th ▁Century ▁B CE ▁Code ▁of ▁Hamm ur abi . ▁ ▁The ▁first ▁known ▁bond ▁in ▁history ▁dates ▁from ▁circa ▁ 2 4 0 0 BC ▁in ▁N ipp ur , ▁Mes op ot am ia ▁( mod ern - day ▁Ira q ). ▁It ▁guaranteed ▁the ▁payment ▁of ▁gra in ▁by ▁the ▁principal . ▁ ▁The ▁sure ty ▁bond ▁guaranteed ▁re imb urs ement ▁if ▁the ▁principal ▁failed ▁to ▁make ▁payment . ▁Corn ▁was ▁the ▁currency ▁of ▁that ▁time ▁period . ▁ ▁In ▁these ▁ancient ▁times , ▁lo ans ▁were ▁initially ▁made ▁in ▁cattle ▁or ▁gra in ▁from ▁which ▁interest ▁could ▁be ▁paid ▁from ▁growing ▁the ▁her d ▁or ▁c rop ▁and ▁returning ▁a ▁portion ▁to ▁the ▁l ender . ▁ ▁Silver ▁became ▁popular ▁as ▁it ▁was ▁less ▁per ish able ▁and ▁allowed ▁large ▁values ▁to ▁be ▁transport ed ▁more ▁easily , ▁but ▁unlike ▁cattle ▁or ▁gra in ▁could ▁not ▁naturally ▁produce ▁interest . ▁ ▁Tax ation ▁derived ▁from ▁human ▁labor ▁evol ved ▁as ▁a ▁solution ▁to ▁this ▁problem . ▁ ▁By ▁the ▁Plant agen et ▁era , ▁the ▁English ▁Crown ▁had ▁long - standing ▁links ▁with ▁Italian ▁financi ers ▁and ▁mer ch ants ▁such ▁as ▁Ric ci ardi ▁of ▁Lu