Fineness_of_early_Roman_Imperial_silver_coins

A debasement of coinage is the practice of lowering the intrinsic value of

coin A coin is a small, flat (usually depending on the country or value), round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order t ...

s, especially when used in connection with

commodity money Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods. This is in contrast to representati ...

, such as

gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...

silver Silver is a chemical element with the Symbol (chemistry), symbol Ag (from the Latin ', derived from the Proto-Indo-European wikt:Reconstruction:Proto-Indo-European/h₂erǵ-, ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, whi ...

coins. A coin is said to be debased if the quantity of gold, silver, copper or nickel in the coin is reduced.

Example

Roman currency Roman currency for most of Roman history consisted of gold, silver, bronze, orichalcum and copper coinage. From its introduction to the Republic, during the third century BC, well into Imperial times, Roman currency saw many changes in form, denomi ...

, the value of the

denarius The denarius (, dēnāriī ) was the standard Roman silver coin from its introduction in the Second Punic War to the reign of Gordian III (AD 238–244), when it was gradually replaced by the antoninianus. It continued to be minted in very ...

was gradually decreased over time as the

Roman Roman or Romans most often refers to: *Rome, the capital city of Italy *Ancient Rome, Roman civilization from 8th century BC to 5th century AD *Roman people, the people of ancient Rome *''Epistle to the Romans'', shortened to ''Romans'', a letter ...

government altered both the size and the silver content of the coin. Originally, the

used was nearly pure, weighing about 4.5

gram The gram (originally gramme; SI unit symbol g) is a Physical unit, unit of mass in the International System of Units (SI) equal to one one thousandth of a kilogram. Originally defined as of 1795 as "the absolute weight of a volume of pure wate ...

s. From time to time, this was reduced. During the

Julio-Claudian dynasty , native_name_lang=Latin, coat of arms=Great_Cameo_of_France-removebg.png, image_size=260px, caption= The Great Cameo of France depicting emperors Augustus, Tiberius, Claudius and Nero, type= Ancient Roman dynasty, country= Roman Empire, estates=* ...

, the

contained approximately 4 grams of silver, and then was reduced to 3.8 grams under

Nero Nero Claudius Caesar Augustus Germanicus ( ; born Lucius Domitius Ahenobarbus; 15 December AD 37 – 9 June AD 68), was the fifth Roman emperor and final emperor of the Julio-Claudian dynasty, reigning from AD 54 un ...

. The denarius continued to shrink in size and purity, until by the second half of the third century, it was only about 2% silver, and was replaced by the

Argenteus The ''argenteus'' ( ''argentei'', 'of silver') was a silver coin produced by the Roman Empire from the time of Diocletian's coinage reform in AD 294 to ca. AD 310. It was of similar weight and fineness to the denarius of the time of Nero. The co ...

Effects

Debasement lowers the intrinsic value of the coinage and so more coins can be made with the same quantity of precious metal. If done too frequently, debasement may lead to a new coin being adopted as a standard currency, as when the Ottoman

akçe The ''akçe'' or ''akça'' (also spelled ''akche'', ''akcheh''; ota, آقچه; ) refers to a silver coin which was the chief monetary unit of the Ottoman Empire. The word itself evolved from the word "silver or silver money", this word is deri ...

was replaced by the

kuruş Kuruş ( ; ), also gurush, ersh, gersh, grush, grosha, and grosi, are all names for currency denominations in and around the territories formerly part of the Ottoman Empire. The variation in the name stems from the different languages it is us ...

(1 kuruş = 120

), with the para (1/40 kuruş) as a subunit. The kuruş in turn later became a subdivision of the

lira Lira is the name of several currency units. It is the current currency of Turkey and also the local name of the currencies of Lebanon and of Syria. It is also the name of several former currencies, including those of Italy, Malta and Israe ...

Methods

Methods of coin debasement Coin debasement is the act of decreasing the amount of precious metal in a coin, while continuing to circulate it at face value. This was frequently done by governments in order to inflate the amount of currency in circulation; typically, some o ...

* The

mint MiNT is Now TOS (MiNT) is a free software alternative operating system kernel for the Atari ST system and its successors. It is a multi-tasking alternative to TOS and MagiC. Together with the free system components fVDI device drivers, XaAES g ...

starts issuing coins of a certain face value, but with less metal content than previous issues. There will be an incentive to bring the old coins to the mint for re-minting – see

Gresham's law In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable co ...

. A revenue, called

seigniorage Seigniorage , also spelled seignorage or seigneurage (from the Old French ''seigneuriage'', "right of the lord (''seigneur'') to mint money"), is the difference between the value of money and the cost to produce and distribute it. The term can be ...

, is made on this minting process.

Related uses

*"Debasement" is also sometimes used to refer to the tendency of silver or gold coins to be " shaved", that is, to have small amounts shaved off the edges of the coins by unscrupulous users, thereby reducing the actual precious metal content of the coin. In order to prevent this, silver and gold coins began to be produced with milled edges, as many coins still do by tradition, although they no longer contain valuable metals. For example, the

U.S. The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

quarter A quarter is one-fourth, , 25% or 0.25. Quarter or quarters may refer to: Places * Quarter (urban subdivision), a section or area, usually of a town Placenames * Quarter, South Lanarkshire, a settlement in Scotland * Le Quartier, a settlement ...

and dime have milled edges. Coins that have traditionally been made purely of base metals, such as the U.S.

nickel Nickel is a chemical element with symbol Ni and atomic number 28. It is a silvery-white lustrous metal with a slight golden tinge. Nickel is a hard and ductile transition metal. Pure nickel is chemically reactive but large pieces are slow to ...

or the

penny A penny is a coin ( pennies) or a unit of currency (pl. pence) in various countries. Borrowed from the Carolingian denarius (hence its former abbreviation d.), it is usually the smallest denomination within a currency system. Presently, it is t ...

, are more likely to have unmilled edges. *By analogy, "debased currency" is sometimes used for anything whose value has been reduced, such as "

Stardom ''Stardom'' is a 2000 Canadian comedy-drama film directed by Denys Arcand and written by J.Jacob Potashnik and Arcand. It stars Jessica Paré and Dan Aykroyd. It tells the story of a young girl who tries to cope with her rise to stardom after bei ...

is an utterly debased currency"

References

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External links