[hollerith]

"No credit" is an exaggeration: gold and silver (and notes redeemable for gold and silver) were the standard currencies in Europe (and probably other place) for many centuries, during which time there was plenty of lending and borrowing going on.

For most of that time, the total quantity of gold and silver in existence remained approximately constant.

[greiskul]

Was the gold and silver being mined negligible compared with the amount in circulation?