Well into the twentieth century, credit was an essential element of exchange between farmers, storekeepers, produce merchants, labourers and others in rural Australia.  The principles of classical economics might suggest that credit is simply one element of an efficient but impersonal exchange of goods and services between utility-maximising, atomistic individuals.  This paper will argue that economic exchange, including credit, can only be adequately understood by reference to its social and cultural contexts.  Using bankruptcy records from the rural areas surrounding Dubbo during the period 1880-1930, and drawing on the concept of social capital, this paper reveals what flows of credit might uncover about the influence of trust, obligation, and social networks in shaping local exchange.  This very local history, by focusing attention on the farming community as a unit rather than the town or village, also contributes to an understanding of the dynamics of Australian rural society during an era of rapid and significant change.