A Kabba man arrived at a quaint, poor village. Everyone owed everyone else. The hotel manager asked the would-be lodger for an advance payment which would be repaid to the Kabba man if the latter is not satisfied with the hotel and didn't lodge there. The Kabba man paid the manager #10,000.
Immediately, the manager went and paid his cook, the same amount he owes the cook. The cook took the#10,000 and paid the meat seller he owes. The meat seller took the money and went and paid the doctor who he owes #10,000 for treating his wife's rheumatism. On receipt of the money, the doctor paid off the nurse he owed #10,000 each as salary. The nurse took the money and went to pay the hotel manager. She's been lodging in the Hotel temporarily before she secured accommodation in the village.
She paid off the #10,000 she was owing the manager. The Kabba man ultimately decided on not lodging at the hotel. The hotel manager happily gave him back his #10,000. And the man went his merry way. His #10,000 had settled all debts in the village without him knowing.
This goes to show that the essential nature of money is credit (debt). If all the money loans were paid, no one could have money in hand, and there would not be any money in circulation. In other words, If there were no debts in the money system, there wouldn't be any money. What a thought.
