The Great Debasement
The Great Debasement (1544–1551) was a currency debasement policy introduced in 1544 England under the order of Henry VIII which saw the amount of precious metal in gold and silver coins reduced and in some cases replaced entirely with cheaper base metals such as copper. Overspending by Henry VIII to pay for his lavish lifestyle and to fund foreign wars with France and Scotland are cited as reasons for the policy's introduction. The main aim of the policy was to increase revenue for the Crown at the cost of taxpayers through savings in currency production with less bullion being required to mint new coins. During debasement gold standards dropped from the previous standard of 23 karat to as low as 20 karat while silver was reduced from 92.5% sterling silver to just 25%. Revoked in 1551 by Edward VI, the policy's economic effects continued for many years until 1560 when all debased currency was removed from circulation.
Background
In the 16th century, after suffering from the effects of the
Further debasement under Henry VIII
Gold and silver standards continued to drop under Henry VIII: in 1545 gold was reduced to 22 karat and again to 20 karat in 1546. Silver content also dropped numerous times from the previously
Debasement under Edward VI
After Henry VIII's death in 1547, nine-year-old Edward VI was crowned king. The debasement policy continued under Edward; however, in 1548 an attempt was made to improve fineness by increasing gold fineness to 22 karat (a standard that became known as crown gold), at the cost of reducing coin size. Silver content, by contrast, reached a new low of just 25% in 1551. The debasement policy was officially revoked in October 1551, and silver fineness was returned to the pre-debasement standard of 92.5% fine silver.
Coins
Over the course of the seven years that the debasement occurred, gold and silver content in coins fluctuated, as well as the coins' weights. During debasement the following coins circulated.
- Sovereign
- Half sovereign
- Angel
- Half-angel
- Quarter-angel
- Crown
- Half crown
- Testoon
- Groat
- Half groat
- Penny
- Halfpenny
- Farthing
Penny
During debasement the silver content of the penny dropped by more than 83%.[5]
1509–1526 | 1526–1544 | 1544–1547 | Ref. | |
---|---|---|---|---|
Weight | 12 gr | 10 | 10 gr | |
Fineness | 11 oz 2 dwt | 11 oz 2 dwt | 6-4 oz |
Groat (fourpence)
1544 the fineness of the silver was steadily debased from the normal .925 fine down to .333 fine.
1509–1526 | 1526–1544 | 1544–1547 | Ref. | |
---|---|---|---|---|
Weight | 48 gr | 42 gr | 40 gr | [6] |
Fineness | 11 oz 2dwt | 11 oz 2dwt | 6-4 oz |
Angel
1509–1526 | 1526–1544 | 1544–1547 | Ref. | |
---|---|---|---|---|
Weight | 80 gr | 80 gr | 80 gr | [6] |
Fineness | 23 ct | 23 ct | 23 ct |
Half Sovereign
Half-sovereigns were produced in four different standards.
Standard 1 | Standard 2 | Standard 3 | Standard 4 | Ref. | |
---|---|---|---|---|---|
Issue date | 1544–1545 | 1545–1546 | 1546–1551 | 1549–1550 | [7] |
Weight | 6.48 g | 6.22 g | 6.22 g | 5.49 g | |
Fineness | 23 karat (.958) | 22 karat (.916) | 20 karat (.833) | 22 karat (.916) |
Sovereign
Sovereigns like that half sovereigns were also produced in four different standards.
Standard 1 | Standard 2 | Standard 3 | Standard 4 | Ref. | |
---|---|---|---|---|---|
Issue date | 1544–1545 | 1545–1546 | 1546–1547 | 1549–1550 | [8] |
Weight | 12.96 g | 12.44 g | 12.44 g | 10.98 g | |
Fineness | 23 karat (.958) | 22 karat (.916) | 20 karat (.833) | 22 karat (.916) |
Restoration under Elizabeth I (1558–1603)
By the time
In 1560, under the instructions from the queen, Thomas Gresham withdrew all debased coinage from circulation and had the withdrawn coins melted down and replaced with newly minted coins with high fineness. An estimated £50,000 was gained by the crown in the process. In 1561 milled coinage was introduced into England by French moneyer Eloy Mestrelle replacing the often crude hammer struck coins.
References
- ^ Robinson, Bruce (17 February 2011). "An Overview of the Reformation". BBC. Retrieved 3 April 2017.
- ^ "The Testoons of Henry VIII". AMR Coins. Retrieved 2 April 2017.
- ^ Li, Ling-Fan (2009). After the Great Debasement, 1544-51: Did Gresham's Law Apply?. London School of Economics. p. 9.
- ^ Owen, James (19 December 2012). "Old Coppernose – Quantitative easing, the medieval way". Royal Mint. Retrieved 3 April 2017.
- ISBN 9781134066155.
- ^ ISBN 978-0198217060.
- ^ "Tudor Half-Sovereign". Royal Mint. Retrieved 3 April 2017.
- ^ "Tudor Sovereign". Royal Mint. Retrieved 4 April 2017.
Further reading
- Allen, Larry (2009). The Encyclopedia of Money (2nd ed.). ISBN 978-1598842517.