Germany consisted of several sovereign states with individual political and economic systems until 1871 when Germany became unified. Prussia and Saxony issued the first state paper money in 1806, initially to reorganise the state treasury. Cash Vouchers ("Kassenscheine") were used in Saxony and safe vouchers ("Tresorscheine"). Further issues followed with initially simple designs becoming more complex, as paper and printing quality improved as well as deterrents for forgery.
Other German states were slow to issue paper money. No other German state issued paper money until 1851.
looney_tunes Moderator 19 year member
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The wording of the question suggest that the expected answer is Hanover, which was an electorate (meaning their leaders were part of the group that selected leaders of the Holy Roman Empire) from 1692, and associated with the British when the prince-elector of Hanover became king of Great Britain in 1714.
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