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c. 3000-2000 BCEGeneral source · 2 sourcesDebated

Mesopotamian Temples Record Debt on Clay Tablets

Before anyone struck a coin, Sumerian scribes were already keeping ledgers of who owed what to whom

On the timeline · around c. 3000-2000 BCE · Barter and Early MoneyBarter and Early MoneyMesopotamian Temples Record Debt on Clay Tablets3,000 BCE2,750 BCE2,500 BCE2,250 BCE2,000 BCE1,750 BCE1,500 BCE

Quick facts

Standard silver loan interest
20 percent
Standard barley loan interest
30 percent
Primary record medium
Clay tablets in cuneiform script
Institutions extending credit
Temples and palaces

What happened

In the temple and palace economies of Sumerian cities such as Uruk and Ur, scribes recorded loans, debts, and obligations on clay tablets in cuneiform script. Silver and barley functioned as the standards of value: Mesopotamians made loans of silver or barley at interest rates set by custom and law, typically 20 percent for silver and 30 percent for barley, and the resulting agreements, along with sales contracts, rental agreements, and records of debt, made up a large share of surviving cuneiform tablets. Temples held stores of grain and other goods, and the credit they extended, and the debts they later had to cancel when borrowers could not repay, ran the ancient economy centuries before any coin existed anywhere in the world.

Why it matters

These tablets are the earliest hard evidence of how money-like systems actually functioned in the ancient world, and they sit at the center of a real scholarly argument: whether money grew out of barter, as economists from Adam Smith onward assumed, or out of credit and debt recorded by institutions, as many economic anthropologists and historians argue from this same evidence. Mesopotamia had a working system of accounts, loans, and interest without coinage, which is exactly why the debate has never been settled.

How we know

Tens of thousands of cuneiform tablets recording loans, interest, sales, and debts survive from Sumerian and later Mesopotamian cities and have been translated and studied by Assyriologists, giving a direct textual record of ancient lending practice.

Sources

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Part of a timelineHistory of Money26 events · Clay tablets that recorded debt before coins existed, a Chinese dynasty that printed the first paper money, and a currency divorced from gold in a single televised announcementView all →