Thanks for your email.
The only time I ever used chits was in the play of the WWII military miniatures game I co-created with Mike Reese and Leaon Tucker back in the late 1960s, TRACTICS. We used a 1-20 range for determining success, and at that time the d20 had not been "discovered."
When I wrote the initial manuscript for the D&D game in 1972, I had found an educational supply enterprise that had the Platonic solids as dice, so D&D was written assuming dice.
In the 1970s, around 1978, the person managing production at TSR did substitute paper chits for dice in the D&D Basic Set. That was an error, very poorly received by the consumers, and the matter was corrected in the next run of the game.
Regards,
Gary
"He who publishes a book runs a great hazard, since nothing can be more impossible than to compose one that may secure the approbation of every reader."
Cervantes