From the Tally Stick to the Bank of England

THE TALLIES, A TANGLED TALE

and

THE BEGINNING AND THE ENDING

The text is an essay in two parts, written by David Astle in 1997. The first part explores the history of the notch stick as a tool of state finance and accounting in England, from medieval times until its abolition in 1834. Astle argues that the notch stick was a debt-independent system of money creation that allowed the king to finance the state without resorting to private borrowing. The second part of the essay examines the activities of international money changers, in particular their role in influencing the issuance of money and influencing state policy. Astle argues that the growing power of the money changers, culminating in the creation of the Bank of England in 1694, undermined the sovereignty of kings and led to a financial system dominated by private interests.