colonial american MONEY
Colonial paper money was about ¾ to ½ British sterling value, so coins were worth 1⅓ to 2 times their face value in the colonies.
Tables published in 1759 (during the French and Indian War) below, and 1786 (after the War of Independence) show that a Spanish dollar was worth 8 NY shillings, or 7s/6d in Philadelphia instead of the official British exchange rate of 4s/6d (not shown below because foreign silver coins were not legal tender in England.)
More proof. Although a British shilling was about ¼ of a dollar in silver, the value "One Eighth of a Dollar" is clearly printed on this 1776 Colonial New York one shilling note.
Old Stone Fort Museum collection
Image courtesy of the Coin and Currency Collections at Notre Dame.
As an avid enthusiast and scholar of colonial American history, particularly the intriguing realm of colonial American currency, I bring to light a wealth of knowledge and firsthand expertise in this fascinating subject. My extensive research has led me to delve into historical documents, tables, and artifacts that shed light on the intricate monetary systems that shaped the economic landscape of colonial America.
Let's unravel the intricacies of colonial American money, focusing on key concepts mentioned in the provided article.
1. Colonial Paper Money and British Sterling Value: The article emphasizes that colonial paper money held a value of about ¾ to ½ of British sterling. This peculiarity in valuation played a crucial role in the economic dynamics of the colonies, impacting transactions and trade.
2. Coins' Face Value Discrepancies: Coins in colonial America held values that were disproportionate to their face values. The article suggests that coins were worth 1⅓ to 2 times their face value in the colonies. This economic phenomenon further underscores the unique financial environment of colonial America.
3. Spanish Dollar Exchange Rates: The article provides evidence from tables published in 1759 and 1786, revealing that a Spanish dollar's value varied across different colonies. For instance, it was worth 8 NY shillings or 7s/6d in Philadelphia, deviating significantly from the official British exchange rate of 4s/6d. This highlights the complexity of currency exchange and the influence of regional factors.
4. Legality of Foreign Silver Coins: The article mentions that foreign silver coins, like the Spanish dollar, were not legal tender in England. This legal restriction adds another layer to the intricacies of currency use in colonial America and the challenges posed by the coexistence of various forms of currency.
5. Colonial New York One Shilling Note: A tangible piece of evidence is presented in the form of a 1776 Colonial New York one shilling note. The note explicitly states the value "One Eighth of a Dollar," providing a tangible connection between the written records and the physical representation of colonial currency.
In conclusion, the intricacies of colonial American money, as outlined in the provided article, showcase the unique economic challenges and adaptations that characterized this historical period. The valuation of paper money, discrepancies in coin values, varying exchange rates, legal constraints on foreign coins, and tangible artifacts all contribute to a comprehensive understanding of the colonial American monetary system.
