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8

I would say all those possibilities you listed are correct. Trade could be paid in paper money, which could then be redeemed for metal and shipped home. But even in the early 1800s, trade could be conducted on credit. Of course, under normal trading conditions, credit earned from exports was credit that could then be used to pay for imports of other goods ...


6

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

Economic history's great attempt to produce a great price/wage series for Southern England's monasteries, agricultural labourers, and modern workers failed. It leaves us with the series used by Measuring Worth, but the series is untrustworthy: 1) Wage labour was not generalised until the 19th century, this makes "wages" and "prices" meaningless. 2) Series ...


5

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.


5

At that time the trade of the United States was primarily with Britain or the Spanish main. The English trade was conducted in pounds sterling and the Spanish trade in the Spanish milled dollar. Ultimately the dollar was selected as the U.S. standard of value. The merchants themselves would have dealt primarily in bank notes, but the banks eventually would ...


4

Understanding historical prices is a difficult problem, and even historians of economics use methods that I would consider inadequate. Many published estimates of ancient prices and value are often wildly wrong. Regular historians (not economists) are even worse at value estimation and rarely suggest modern equivalents with any meaningful accuracy. There is ...


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 ...


1

To declare I don't have a definite answer, but with my answer I might get you somewhat closer to the ultimate method. To estimate a value back in time is especially hard because of the following factors: There were various monetary systems (not just currencies) over time. For example the silver/gold backed 1 Krone in Austro-Hungarian empire worth 0,3 ...



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