AMERICA’S OTHER MONEY

Many foreign coins were used by the early settlers of Colonial America and are of special interest to collectors who appreciate their importance as a reflection of the economic conditions of that time. Prior to 1652 there was no local coinage and the only money in circulation was whatever came here from Europe through trade or travel.

The largest quantity of coinage consisted of English crowns, shillings, and pence, and Spanish and Spanish-American silver pieces-of-eight and their fractions, all of which circulated throughout colonial settlements until being sent back to England for critically needed supplies. Additional quantities of coins came from trading furs, lumber and other exports that provided a limited but much needed supply of hard currency. Of equal importance to commerce were similar coins of other European countries. The large silver Dutch leeuwendaalder [Lyon or Lion Dollar] and French écu saw extensive circulation, as did the gold coins of Europe and their New World colonies. Some New York bills of 1709 were even denominated in Lyon Dollars. Collectors often include examples of these coins and their fractions as examples of the many varieties of coins that were extensively used in early colonial times.

The most familiar currency in Colonial America was the Spanish-American piece of eight, the Dutch Lion Dollar and Native American wampum.

From the very beginning of commerce in America “hard money” was needed for trade with overseas nations. European merchants were eager to purchase fish and pelts from the Americans who could obtain quantities by bartering with Native Americans who eagerly sought their knives, hatchets, beads and blankets. The settlers established trade with Europeans following the same procedure to

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obtain guns, powder, shot, nails, and other essentials. Out of necessity barter became the prime means of private transactions among the settlers.

For a short period of time strings of shell beads called wampum became a standard medium of exchange between Native Americans and settler to settler. Six of the white beads or three purple beads equaled one English penny. Records were kept in the traditional English pounds, shillings and pence, but debts and taxes were paid in corn, beaver pelts or money; the money being whatever foreign coins were available. The terms “country pay” or “corn” referred to a number of different kinds of grain or even peas. Standard exchange rates were established and “country pay” was lawfully received at the Colonial treasury for taxes. Very many private transactions were simply done on credit with payment due at some future date.

In 1630 wages and prices were strictly regulated in an effort to control the economy. A common laborer could receive no more than twelve pence per day, a skilled carpenter no more than sixteen. Despite the rigid regulations, by 1640 England and Ireland had drained the colonies of nearly all cash money, and coins became so scarce and coveted that they were worth far more than their normal exchange value in goods. The value of wampum rose to four white or two purple per penny.

One account of this period tells of a master unable to pay his servant’s wages for another year. The servant volunteered to work in exchange for cattle, but the master answered “What will I do when my cattle are all gone?” The servant replied, “Then you will work for me until you own them again.”

The desperate need for coinage brought action in 1650-1652 when plans were made to establish a mint in Boston, and John Hull was appointed mintmaster and began his career that is historically documented in many issues of Massachusetts silver coins. These coins, although mostly dated 1652 were produced for a period of thirty years. Measures were taken to ensure that these coins remained in the colonies by reducing the weight by about 22% of the English money, and laws were passed prohibiting exportation. Even so, the colony continued to be plagued by an acute shortage

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of circulating money, and continued to rely on foreign coins to facilitate trade.

A feeble attempt was eventually made by Great Britain to supply some of the much needed coinage in the form of plantation tokens and Virginia coppers, but those measures did little to alleviate the situation. By the beginning of the eighteenth century the colonists had experimented with paper money as a substitute for hard currency but with little success. In September 1749, reimbursement in coin was made by the British Parliament for expenses incurred by Massachusetts on account of the expedition against Cape Breton. A large amount of silver and copper coins was thus deposited in the Massachusetts treasury. Ten tons of these were in farthings and halfpennies of current British coinage, most of them dated 1749. This event accounts for so many pieces of this date being found in America. These often overlooked issues are a pivotal and interesting part of our history and are often included in many collections of Early American coins (see listing on page 66).

A fortunate development toward a national coinage came with the plan conceived by Thomas Jefferson in 1785 in which he advocated the decimal system with a dollar as the basic currency unit. This plan was adopted by Secretary Alexander Hamilton in 1791. It was a radical plan of the greatest foresight, without which the country today would be unable to cope with its multitude of economic transactions. The scarcity of coinage, however, continued in America even after the opening of the United States Mint in 1793, but the creation of a national coinage was a major step in unifying the various systems in use between states, and establishing a sound currency.

Selected world silver and gold coins were made legal tender by Congress in an era when federal coins were in short supply in circulation. It was not until the mid-1850s that there were more federal coins than world coins in domestic commerce, and not until after 1834 that federal gold coins became common. The Act of February 21, 1857, repealed the legal tender status of all foreign coins, effective two years after the legislation, and a period that was later extended by six months.

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America’s monetary system has undergone many radical changes since those days when transportation from England cost about 125 pounds of tobacco. While the most unusual forms of money were used long before modern times, even now changes continue to be made in the gradual transition from barter and trade to hard money and credit currency. As recently as fifty years ago silver coins flowed freely in America’s tills of commerce and everyone believed that without ‘hard coin’, or paper money backed by precious metals, there could be no suitable currency. Yet a more realistic generation now accepts token coins made of base metal that serve the same function. The future will likely see even more radical changes where traditional checks and paper money are replaced by electronic transfers.

One need not become a specialist in world coins to enjoy the thrill of owning a piece of Colonial Americana. The most common of the colonial coins encountered today are the ones that had originally enjoyed the widest circulation. Foreign coins of the period, particularly Spanish-American pieces-of-eight and their fractions are a fundamental part of such a collection. No study of American history can be complete without consideration of its currency which had its beginning in Colonial days. The evolution of a monetary system from barter to banking has been achieved through a long and trying series of experiments that are well documented through numismatic evidence provided by the foreign coins that were once in daily use in America. They deserve a place of honor alongside the more colorful and intriguing local issues that were made in the colonies.

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SPANISH-AMERICAN COINAGE OF THE NEW WORLD Values shown for these silver coins are for the most common dates and mint-marked pieces of each issue. Similar pieces were struck at Spanish-American mints in Bolivia, Chile, Colombia, Guatemala, Dominican Republic, Guatemala, Mexico, Panama and Peru.

Spanish-American cob coinage Philip II to Charles III

VG F VF EF Cob Type ½ Real (1556-1773) $40 $90 $150 $400Cob Type 1 Real (1556-1773) 40 100 175 425Cob Type 2 Reales (1556-1773) 90 175 250 650Cob Type 4 Reales (1556-1773) 110 250 300 800Cob Type 8 Reales (1556-1773) 150 300 500 900

Values are for coins with partial or missing dates. Fully dated coins are valued much higher.

Spanish-American silver coinage of Philip V 1732-1747, Ferdinand VI 1747-1760, and Charles III 1760-1772

VG F VF EF Pillar Type ½ Real 1732-1772 $15 $30 $75 $125Pillar Type 1 Real 1732-1772 30 50 80 175Pillar Type 2 Reales 1732-1772 40 65 120 300Pillar Type 4 Reales 1732-1772 150 425 750 900 Pillar Type 8 Reales 1732-1772 120 200 450 675

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Spanish-American Bust Type coinage of Charles III 1772-1789,Charles IV 1789-1808 and Ferdinand VII 1808-1825

VG F VF EF Bust Type ½ Real 1772-1825 $10 $15 $35 $100Bust Type 1 Real 1772-1825 20 35 50 120Bust Type 2 Reales 1772-1825 30 50 75 180Bust Type 4 Reales 1772-1825 100 300 500 800Bust Type 8 Reales 1772-1825 50 75 100 250

Parallel issues of Spanish-American gold coins were made during this period which saw extensive use for international trade and somewhat lesser use in domestic transactions. The Spanish silver pistareen was also a popular and convenient coin in circulation.

TYPICAL WORLD COINAGE USED IN COLONIAL AMERICA

VG F VF EF Netherlands Lion dollar 1601-1693 $50 $110 $225 $450Netherlands ½ dollar 1601-1653 $50 $130 $275 $550

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French silver coinage of Louis XV and Louis XVI

VG F VF EF France, ½ Écu 1715-1792 $20 $80 $150 $325France, Écu 1715-1792 40 100 225 375

See additional listings of silver, billon and copper French coins authorized for use in North America on pages 51-53.

British silver coinage of Charles I to George III

VG F VF EF

England, Threepence 1625-1820 $10 $25 $60 $90England, Sixpence 1692-1787 20 35 80 100England, Shilling 1692-1787 30 50 100 200England, Half Crown 1692-1750 80 150 350 600England, Crown 1692-1730 200 450 800 1,200

English copper coins and their imitations circulated extensively in early America and are described on pages 65-67.

Other items frequently used as money in early America included cut fraction of various silver coins. The quarter 8 reales coin was “two bits”.

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