Banknotes, a variety of credit money issued by the issue banks, and substituting for metal money as a means of circulation and payment. Banknotes have their origin in the development of commodity-money relations and payment turnover. As commodity-money relations expanded, commercial bills, i. e., promissory notes issued by individual capitalists, began to partially replace metal money as a means of payment. Subsequently, bankers and banks began to discount bills of exchange and themselves issue bills, banknotes, which began to circulate as credit money. At first banknotes were issued by individual bankers and commercial banks; then as issue banks were established, they took over the emission of banknotes, which became subject to state control. Prior to World War I banknotes could usually be freely exchanged for gold. In the period of the general crisis of capitalism banknotes have lost more and more of their stability. With the onset of the 1929-33 world economic crisis the convertibility of banknotes for gold was stopped in all capitalist countries, and non-convertible banknotes began to be issued: this effectively signified their transformation into state paper money with a compulsory exchange rate. The excessive issue of non-convertible banknotes in the capitalist countries following World War II has led to increased inflation. Unlike the banknotes of the capitalist countries, the notes of the USSR State Bank and those of other socialist countries are released into circulation at a controlled rate on the basis of cash and credit plans, as a form of short-term credit of the economy and in accordance with goods turnover requirements in ready money. They are backed first of all by all of state commodity production as well as by the gold, precious metals and other assets of the USSR State Bank.