Great Potosí Mint Fraud of 1649
The Great Potosí Mint Fraud of 1649 was a financial fraud involving the fineness of silver coinage that began in Potosí, Bolivia. The scandal had worldwide effects that lasted for decades.[1]
Background
Potosí was founded in 1545 as a mining town near
Scandal
Rumors of the fineness of the silver coins from Potosí began to circulate in the early 17th century.[5] Slave owners and mint officials blamed the mint slaves for the reduced fineness of coins minted at Potosí.[6] Complaints from the Kingdom of Aragon and the Kingdom of Castile in 1648 asserted the coins to be worth as little as 5 reales instead of 8 reales. Royal trials confirmed the coins from Potosí contained only 75% of the silver they were supposed to contain. In response to this, King Philip sent Francisco de Nestares Marín, a former inquisitor, to investigate the situation. He began his investigation at the end of 1648.[4][1]
Marín's investigation revealed that the fraud permeated the entire silver operation. Key figures in the fraud were Francisco Gómez de la Rocha, a rich former corregidor of Potosí, and Juan Ramírez de Arellano, an assayer at the mint. Both of them were executed for their crimes, and other assayers at the mint were fined or removed from their positions.[5] The corregidor of Potosí was removed from his position and imprisoned. Several silver merchants were also executed.
Marín named Juan Rodríguez de Rodas as the head assayer of the mint, a purpose for which he had been sent from Spain.[4] Coins minted under Rodas were known as "rodases", while the debased coins were referred to as "rochunas". However the new coins, though better, were still short of the required fineness.[5]
Impact and aftermath
The scandal had a large impact on
References
- ^ a b c Lane, Kris (30 July 2019). "Potosí: The mountain of silver that was the first global city". Aeon. Retrieved 9 May 2020.
- ^ Greenfield, Patrick (21 March 2016). "Story of cities #6: how silver turned Potosí into 'the first city of capitalism'". The Guardian. Retrieved 9 May 2020.
- ^ "Coin mistakes in eye of beholder". Numismatic News. 21 March 2017. Retrieved 9 May 2020.
- ^ a b c d Jovel, Francisco; Jovel, Roberto. "Los Efectos Del 'Gran Escándalo' De Potosí" (in Spanish). Segovia Mint. Retrieved 8 December 2020.
- ^ a b c d "A Practical Introduction to the Countermarked COB 8 and 4 Reales of Potosi, Bolivia, 1649–52". Treasure and World Coin Auction # 6, October 15–16, 2009. Daniel Frank Sedwick, LLC. 2009. pp. 78–79. Retrieved 9 May 2020.
- ^ a b Lane, Kris (October 2012). "When research upends expectations..." School of Liberal Arts, Tulane University. Retrieved 9 May 2020.
- ^ "The Royal Scam: Global Repercussions of the Great Potosi Mint Fraud of 1649". ASU Events. Arizona State University. 16 March 2017. Retrieved 9 May 2020.
Further reading
- Lane, Kris (2021). Potosí: The Silver City That Changed the World. California World History Library. Berkeley: University of California. ISBN 9780520383357.