As a child, I collected
coins. Mostly old British (I did like the pre-decimal system of 12d
in a shilling, 20s in a pound, 21s in a guinea, 5s in a crown, 2s in
a florin. It was delightfully complex) but also a few foreign ones.
We think of coins as
being small, round, copper, silver and gold-coloured. And that’s
true for a surprisingly large amount of history.
But not all of it.
Pre-unification, China
was split into several different kingdoms, each of which had their
own currency. These were often in strange shapes, such as spades or
knives, some with holes, some without. One, Chu, had small square
coins of gold.
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Qing-era Chinese coins from the 17th to 20th century |
It wasn’t long before
a different design was settled upon, though. Qin, the ultimate victor
(Qin Shi-Huangdi uniting China and becoming the first emperor) opted
for round coins very similar to what we have today in basic shape.
Except the round coins had square holes in them. This was actually
quite cunning. If you’ve read ancient Chinese classics (I recommend
Outlaws of the Marsh) you may have read the term ‘strings of cash’.
These refer to, er, strings upon which coins were placed. Hence the
need for a hole.
However, there was
still the odd return to fancy shapes, including the Yi Dao Ping Wu
Qian, a knife coin (a round coin with a hole, from which a key-like
limb stretched) which came into being in the 1st century
AD.
In the West, Lydia was
reportedly the first country to use metal coins. They were neither
gold nor silver, but an alloy of the two called electrum. The immense
wealth of Lydia, aided by the quality of its coinage, helped Croesus
to fund the Temple of Artemis, a Wonder of the Ancient World.
However, this didn’t stop him taking dodgy advice from an oracle
and starting a war with Persia, which he lost (although Cyrus was a
nicer chap than many of his successors and Croesus became his adviser
and friend). The Persians themselves used both gold and silver
(separately) in their coinage.
Earlier, you may have
noticed I used 12d rather than 12p to describe pre-decimalisation
British pence. This was not a mistake. Just as the Russians sometimes
claimed to be the Third Rome, the British Empire quite liked
emulating the Romans. The ‘d’ is for denarii. Yes, I know we
didn’t use denarii then, but that’s still what it stands for. In
the same way that the £ sign is effectively an L with a line through
it (for libra pondo, the Latin for a pound by weight), the imperial
British did like the Roman links (they weren’t alone in that, of
course. Just look at the architecture of America’s chief political
buildings).
The Romans used not
only silver and gold but also large amounts of bronze in their money.
Bronze bullion weighing about 3lb, in fact, which is not only money
but also a doorstop, or a last ditch weapon if someone tries to mug
you.
When Augustus became
the first emperor, the Republic gave way to the Empire and coins from
then on bore the image of the man (or men) who claimed to be emperor.
This feels very natural to us (well, those of us living in a
monarchy). Prior to this, images of the gods or of Romulus were
commonplace.
However, Rome ended up
with a money problem. The problem was caused by the donative, which
was effectively a massive bonus every soldier in the army got when a
new emperor took over. It doesn’t take a genius to see that this
could cause soldiers (especially disaffected ones) from trying to
impose a new emperor, to get the bonus (imagine if you gave every
child in class £5,000 every time they got a new teacher. Teacher
life expectancies would go down rather quickly). Not only did this
cause mass instability and civil war (especially in the third
century), it also caused massive inflation. This meant the prices of
ordinary goods increased rapidly, making them less affordable for
ordinary folk, who didn’t get a placating bribe thrown at them by a
nervous new emperor.
Related to this was the
debasement of the coinage (debasement being when the silver or gold
content in a coin was diminished in favour of far less valuable, base
metals). This meant more coins could be made but their ‘real’
value declined. Historically, people were very aware of this, and
they’d know the ‘same’ coin from five years ago might be worth
more than one made yesterday. Paying large numbers of soldiers
(separate from the inflation-stoking donative) was another factor, as
sufficient coins had to be minted, and if a massive military effort
was under way there simply might not be enough silver to do it
without reducing the content in each coin.
Debasement and
inflation were not problems unique to the Romans. Henry VII was
careful with cash, but Henry VIII was not. He spent a fortune, which
then meant he ran out of money and chose to ransack the monasteries.
During his time, the coinage was debased significantly, which in turn
led to very high inflation.
It’s also worth
noting inflation can happen in weird ways. The Black Death of the
14th century immensely reduced the work force. This meant
both that farm labour was more valuable, increasing wages, and food
scarcer, increasing food prices. However, the cost of things like
swords declined. Because so many people had died, there were a lot of
weapons and suchlike that belonged to the recently departed.
Inflation, therefore, was affected in opposite directions for
different things but caused by the same plague.
During the medieval
period, there was another type of coin which did not survive to the
imperial British era: the mark. The mark was two-thirds of a pound,
or 13s 4d in old money. It’s an interesting value, and looks quite
clunky to modern eyes, used as we are to 100p in £1. However, it
could be handy. Suppose you wanted a vile criminal to be taken. You
might offer fifty pounds for him alive, and fifty marks for him dead.
Generally, from the Qin
period to today, coins have been round. There are variations (the new
British £1 will be twelve-sided, or a dodecahedron) but they’re
basically all the same. Now and then a funky shape shows up, but,
essentially, coins now are round and occasionally have a central
hole.
Historically, silver
and gold were used to determine value, that value varying in
practical (though not nominal) terms according to the percentage of
precious metal used. Nowadays, coins have very little inherent value
(with rare exceptions, such as gold sovereigns).
Which does raise an
interesting point. The actual coins you have are worth almost
nothing. But because society all agrees to pretend they have value,
they do.
Anyway, a bit of a
ramble (just for a change), but there we are. Coins. They’re
marvellous. You can even use them to buy my excellent new book,
Journeys, featuring stories by Adrian Tchaikovsky, Julia Knight et
al.,
Thaddeus