The concept of tallies, commonly related to vote counting during elections, was historically used as a method of record-keeping in England for various commercial transactions and debt obligations. This system, which used willow or hazel-wood sticks with notches and markings, served as an acknowledgement of a transaction between parties, and even worked as a payment method for resolving debts and taxes. Astonishingly, this system was also instrumental in forming debt markets for rulers and parliaments.
This intriguing usage of tallies is among the many insights revealed in the book “Money & Promises,” which explores the evolution of money through transformative deals that have shaped history. The author, a veteran banker, meticulously traces the origins of money back to 12th-century Pisa and navigates readers through milestones, including the founding of the Bank of England and the establishment of the first public bank in North America by Alexander Hamilton and Thomas Jefferson. The book reveals how societies across time and geographies have strived to devise universally accepted mediums of exchange and value.
Whilst the book is academically rigorous and enlightening, its detailed explorations are presented with clarity and light-heartedness, making it an enjoyable read. The book’s visual appeal doesn’t diminish its seriousness as a study tool. However, further explanations could be beneficial for some of its more complex subjects.
The book’s main revelation is the profound economic significance of how currencies are created. It underlines that money is not merely the creation of central banks or governments, but rather “debt backed by debt” – the combination of bank debts and clients’ obligations. Though a final chapter syncing the different narratives discussed would have rendered the book more comprehensive, readers seeking to understand the fascinating origins of money and the importance of finance and banks for economies will nevertheless find it illuminating and engaging.
The book’s review is provided by Paschal Donohoe, the Minister for Public Expenditure and president of the Eurogroup.