主题：圣经故事与货币流动性权力 -- 唵啊吽

THE TALLY STICKS (1100 - 1854)

King Henry the First produced sticks of polished wood, with notches cut along one edge to signify the denominations. The stick was then split full length so each piece still had a record of the notches.

The King kept one half for proof against counterfeiting, and then spent the other half into the market place where it would continue to circulate as money.

Because only Tally Sticks were accepted by Henry for payment of taxes, there was a built in demand for them, which gave people confidence to accept these as money.

He could have used anything really, so long as the people agreed it had value, and his willingness to accept these sticks as legal tender made it easy for the people to agree. Money is only as valuable as peoples faith in it, and without that faith even today's money is just paper.

The tally stick system worked really well for 726 years. It was the most successful form of currency in recent history and the British Empire was actually built under the Tally Stick system, but how is it that most of us are not aware of its existence?

The tally stick system is credit-based money and not debt-based money. The king spent the tally sticks into circulation when he needed to buy something. The tally sticks were retired from circulation as they were used to pay taxes. If "money spent into circulation by king" is approximately equal to "taxes collected", then the system works and the money supply is stable.

Even though tally sticks were intrinsically worthless, taxation created a demand for them.