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19

Tally sticks were credit-based money used by the King of England from roughly the XIII to the XIX century. The idea was quite simple: in a credit based system, you have to find a way to represent the credit which is uncounterfeitable and cheap to produce. It also had to have no value as an object, otherwise you can have a market for the object rather than ...


14

Please don't use CPI. CPI only measures consumption bundles for wage workers. If you want to measure inflation you need to ask why you're equating the value of money over time. www.measuringworth.com goes into this, in great detail, with multiple theoretical papers and multiple measuring systems for US inflation. what amount of modern currency would ...


9

The first evidence of usage of currency dates back to the code of Lipit-Ishtar, a set of laws dating to about 2000 BC. In this code there is mention of shekels of silver paid in compensation for various infractions. Since this is stated so clearly in a law created by a king, it must be presumed that such currency was in common use already by the people of ...


6

Just speculating here, but moving sterling from Britain to India would have been rather expensive back in the day. Also, minting sterling in India would have been risky to the currency back home since in those days currencies were based on the gold standard and Indian mints could easily have diluted the metals and thereby the home currency. also, it sounds ...


6

The first evidence we have for the usage of actual coinage as currency is the "Lydian Lion", a stamped coin of electrum from, as the name would imply, the region of Lydia in Anatolia. Herodotus indicates these started showing up in the early 7th Century BCE. See here for more info on the history of the first Lydian coinage: ...


6

From 1516 to 1917 it was Ottoman money, named gold liran asmali. To be specific, from 1807 to 1918 they used a different Ottoman currency named tamashlik,onlic,sikwin. In 1914 when the Ottomans lost in WWI, French Liran gold became prevalent. In 1917/11/23 the British announced that Egyptian money was legal, as well as Ottoman, and any money from allies. ...


5

The £ symbol is just a shorthand for pounds sterling, and it was in use in all of the colonies. Almost all of the "official" documents such as treasury notes, government transcripts, title transfer documents, etc. spell out the word "pound" as a matter of convention or formality. Take a look at a current U.S. bill, and you will see that the same convention ...


5

Currency comes in many different forms, and since you mention "abstract" currency here, that excludes coins that were traded for their metal value, which is the case of most early coinage, where the stamp was an mark guaranteeing that it was reasonably pure metal. The first abstract coinage is probably dependent on your opinion on what "abstract" means. The ...


5

From the wikipedia Following the Indian Mutiny in 1857, the British government took direct control of British India. Since 1851, gold sovereigns were produced en masse at the Royal Mint in Sydney, New South Wales. In an 1864 attempt to make the British gold sovereign the "imperial coin", the treasuries in Bombay and Calcutta were instructed to ...


5

Taking the link SevenSidedDie found, it looks like a penny in 2007 would have been worth roughly 0.037 cents at the founding of the Republic. The interesting thing is that if you look at the graph, almost all of this inflation happened after the 1930's. For most of the history of the USA, the buying power of our currency was fairly stable. What changed ...


4

The very first national coinage system in the United States of America under the Washington Administration were half-cent, cent, half-dime, dime, quarter, half-dollar, dollar, quarter-eagle, half-eagle, and eagle ($10). Later there was also a double-eagle. If you live in the US, there's a good chance you've seen those being hawked on late-night TV ...


4

I think the loss of British Empire about that time had something to do with that. If you have fiat currency, valued primarily on the perception of your total assets, and you loose a large portion of those assets, you'd better voluntarily adjust your exchange rate or face devaluation due to loss of trust in your currency by other players.


3

This is a fascinating question. There are short, simple answers: The great devaluation of 1949 - 30% Post war, Britain was heavily indebted to the USA. Despite a soft loan agreement with repayments over fifty years, the pound remained once again under intense pressure In 1949 Stafford Cripps devalued the pound by over 30%, giving a rate of $2.80 ...


3

If we grant that the dollar changed insignificantly until the 1934 when the dollar was detached from the gold standard, then we are left with some way of attaching value to something else that is constant. Because all companies and their products are expressed in dollars, it would be a circular reference to attempt to use those. I see only one constant: the ...


3

These are the basic characteristics of a currency: easy to carry: if you have something to exchange, you should be able to relocate and carry it where ever you wish. If you can do that, it is practical to make it currency. This characteristics formed shells and other smaller stones, shiny things like silver and gold and precious stones to currency. rare: ...


1

Shells, bones, etc. worked as currency because they were "hard," and durable, and because (small groups of) people could come to an agreement on their value. The same was true of more "advanced" currency based on coins of metals such as copper, silver, or gold. Thus, they functioned as a store of (monetary) value.



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