Can you explain how money has value?

Hi Frank, Paper money notes did once contain the phrase "I promise to pay the Bearer the sum of one pound". This meant that the Queen was guaranteeing that you could go to the bank at any time and withdraw one pound of gold against the note. It saved you having to carry the gold around with you. Then the bankers came up with the idea that you could issue more paper than the actual value of gold in the vaults, because it was unlikely that all people would come at the same time to withdraw their gold. Eventually the promise to pay the bearer one pound in gold was removed and all we are left with are the "pound" notes. See ya! UMart