page_title: Credit theory of money
hierarchical_section_title: Credit theory of money
caption_attribution_description: English: Tally sticks from the Swiss Alps: Alpbeilen from Alp Blattiberg (Lauenen BE), 1786/1815. Front: name of entitled person, reverse: notches for cow rights. For this alp, there are 87 cow rights divided among 23 owners. Alpbeilen from Alp Hinterschneit (Saanen BE), 1778 Alpbeilen from Alp Langenlauenen (Lauenen BE), 1754/1792/1823 Krapfentesseln and reconstructed matching tally ("Beitessel"). The notches indicate cow rights and both pieces (one held by the farmer, the other by the alp corporation) have to correspond for the tally to be valid. Box for beitesseln, 1766 Double tessel from Alp Blümatt (Turtmann VS), 1893 Schaftesseln from Visperterminen VS, before 1913. The marking on the leather ears correspond to marking on the real sheep's ears. Leather schafbeilen from Lourtier (Bagnes VS), before 1916, identity marks for sheep. Schafbeilen from Grindelwald BE, before 1916 Deutsch: Schweizer Alprechtshölzer: Alpbeilen der Alp Blattiberg (Lauenen BE), 1786/1815. Vorne Name des Berechtigten, hinten Striche für Kuhrechte. Diese Alp umfasste 87 Kuhrechte verteilt auf 23 Inhaber. Alpbeilen der Alp Hinterschneit (Saanen BE), 1778 Alpbeilen der Alp Langenlauenen (Lauenen BE), 1754/1792/1823 Krapfentesseln und rekonstruiertes Einlegestück ("Beitessel"). Die eingekerbten Kuhrechte, die Form und Nummer mussten übereinstimmen; ein Teil lag bei der Alpgenossenschaft und der andere beim Bauern. Schachtel für Beitesseln, 1766 Doppeltessel der Alp Blümatt (Turtmann VS), 1893 Schaftesseln aus Visperterminen VS, vor 1913. Die Lederohren tragen die gleichen Familienzeichen wie die echten Schafohren. Leder-Schafbeilen aus Lourtier (Bagnes VS), vor 1916, Erkennungsmarken für Schafe. Schafbeilen from Grindelwald BE, before 1916
context_page_description: Credit theories of money, also called debt theories of money, are monetary economic theories concerning the relationship between credit and money. Proponents of these theories, such as Alfred Mitchell-Innes, sometimes emphasize that money and credit/debt are the same thing, seen from different points of view. Proponents assert that the essential nature of money is credit, at least in eras where money is not backed by a commodity such as gold. Two common strands of thought within these theories are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of debt. Some proponents of credit theories of money argue that money is best understood as debt even in systems often understood as using commodity money. Others hold that money equates to credit only in a system based on fiat money, where they argue that all forms of money including cash can be considered as forms of credit money.
  The first formal credit theory of money arose in the 19th century.
context_section_description: Credit theories of money, also called debt theories of money,  are monetary economic theories concerning the relationship between credit and money. Proponents of these theories, such as Alfred Mitchell-Innes, sometimes emphasize that money and credit/debt are the same thing, seen from different points of view. Proponents assert that the essential nature of money is credit (debt), at least in eras where money is not backed by a commodity such as gold.  Two common strands of thought within these theories are the idea that money originated as a unit of account for debt, and the position that money creation involves the simultaneous creation of debt. Some proponents of credit theories of money argue that money is best understood as debt even in systems often understood as using commodity money. Others hold that money equates to credit only in a system based on fiat money, where they argue that all forms of money including cash can be considered as forms of credit money.
  The first formal credit theory of money arose in the 19th century. Anthropologist David Graeber has argued that for most of human history, money has been widely understood to represent debt, though he concedes that even prior to the modern era, there have been several periods where rival theories like metallism have held sway.
caption: Single and split tally sticks in the Swiss Alpine Museum – similar items may have been used in debt based economic systems thought to pre-date the use of coinage.
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