MAKING MONEY Coin, Currency, and the Coming of Capitalism Making Money Coin, Currency, and the Coming of Capitalism CHRISTINE DESAN Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © C Desan 2014 The moral rights of the author have been asserted First Edition published in 2014 Impression: All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Crown copyright material is reproduced under Class Licence Number C01P0000148 with the permission of OPSI and the Queen’s Printer for Scotland Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America British Library Cataloguing in Publication Data Data available Library of Congress Control Number: 2014935041 ISBN 978–0–19–870957–2 ebook ISBN 978–0–19–102539–6 Printed in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY Links to third party websites are provided by Oxford in good faith and for information only Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work To Bob in another currency altogether Acknowledgements I thought that this book had given me the most exciting intellectual journey I’d ever taken; then I realized it was the people in and around the book who made that adventure happen Some of them lived centuries ago Fortunately for me, the rest are those who talked, argued, engaged, and helped me throughout the process Their support came in thousands of ways and these thanks are small change compared to the very large debt I owe Still, the offering is heartfelt This book was informed from the start by critical legal studies and related efforts to understand liberalism as a legal project It has been a stroke of great fortune (not to mention a lot of fun) to consider capitalism in the company of Mort Horwitz I thank Lucie White deeply for her vision, teaching, and heart and I am endlessly grateful to Jerry Frug for his guiding wisdom on the process of social change and life more generally Duncan Kennedy’s restless imagination regularly upended my conclusions, an experience that brought more alternatives than I expected into view Scholars and students from a wide variety of methodologies and disciplines vetted this work at the Institute for Global Law and Policy, a venue made possible by the creative and generous enterprise of David Kennedy More generally at Harvard Law School and the neighboring law teaching communities, I have benefited enormously from conversations with Betsy Bartholet, Tomiko Brown-Nagin, Dan Danielson, Pnina Lahav, Janet Halley, David Barron, David Grossman, Tammy Lothian, Todd Rakoff, Jim Rogers, Gerry Leonard, and Ken Mack I thank my colleagues at the HLS Faculty Workshop for a great many insights across the years and I am particularly grateful for the engagement at the very beginning of the project by David Charney Many legal historians and fellow travelers nurtured this research Charlie Donahue shared his tremendous erudition with such goodwill that the medieval became a terrain as inviting as it was intimidating For their pioneering work on institutions and their invaluable advice, I thank Dirk Hartog, Stan Katz, Tom Greene, and Dan Ernst For comments and conversations that shaped the project, I am indebted to Paul Brand, Al Brophy, Colleen Dunlavy, Karen Engel, Howard Erlanger, Josh Getzler, Bob Gordon, Sally Hadden, Dan Hamilton, Adam Kosto, Ken Lipartito, Bruce Mann, Bill Nelson, Jeremy Paul, Claire Priest, Jeff Sklansky, Avi Soifer, Rob Steinfeld, and Chris Tomlins Bill Novak gave me counsel I found extremely productive; I am also grateful to him for a workshop at the University of Michigan Participants there and at workshops at Boston College Law School, Boston University School of Law, University of Connecticut Law School, University of Minnesota Law School, Newcastle University School of Law, New York University School of Law, Oxford University, the University of Texas at Austin, and Yale Law School were very helpful David Fox and Wolfgang Ernst organized a project at Cambridge University on Money in the Western Legal Tradition; their contributions, along with those of Andreas Thier and other participants at the conference were an essential aid David Seipp, along with Carol Lee, gave expertise both in person and by way of the magnificent Seipp database Steven Wilf took an amazing eye to the introduction and told me to undertake changes long after I wanted to rethink anything; he was absolutely right At many points, Barbara Welke graced this project with the intellect and generosity that is her trademark Malick Ghachem and I began talking about money and finance long ago; I will draw from Malick’s acumen for many years to come My thanks to Sven Beckert for sharing, in fact exuding, his sheer joy in the project of understanding the past; I’ve benefited enormously from co-teaching with him the Workshop on the Political Economy of Modern Capitalism for the last ten years The Workshop furnished a forum for discussing this project, both formally and informally, and the work both by students and more senior scholars done there has greatly affected my own Special thanks to Seth Rockman for his superb insight, both narrative and methodological; to Betsy Blackmar, Barry Cohen, Mike Merrill, and Walter Johnson for discerning commentary at critical moments; and to Jack Womack for his gift for going to the heart of the matter Alex Keyssar provided the very model of a scholar who unlocks history in order to address its legacies I have gained immensely from many others who brought their expertise to bear on this project, including Joanna Gray, Stanley Engermann, Tamar Herzog, George Kenney, Mark Kishlansky, and Vishaal Kishore Steve Pincus, Justin duRivage, Lucy Kaufman, and others at the Yale University Transitions to Modernity Colloquium improved several chapters of the manuscript Dan Smail graciously entertained queries that came of the blue, and then organized one of the most exciting seminars I’ve had the opportunity to attend; I am grateful to the scholars who assembled there including Maryanne Kowaleski, Phillipp Schofield, Michael McCormick, Sally Livingston, and Alan Stahl Frederick Schnabel was kind enough to share his unparalleled knowledge about the financial world of the 16th century Bill Sewell read a critical chapter of the manuscript and gave me comments I continue to think about today To the people who chase money in history and theory rather than more lucrative places, I am especially beholden In his scholarship, Nicholas Mayhew decodes a world He generously illuminated point after point for me (I also treasure a thrilling trip to the Ashmolean coin room.) With characteristic graciousness, Angela Redish shared an expertise that spans the medieval and the modern; Carl Wennerlind illuminated the early modern age Perry Mehrling contributed his formidable knowledge about modern “inside money.” Randy Wray displayed similar erudition on modern “outside money.” A number of theorists and scholars of money and finance gave me comments or read portions of the manuscript that helped greatly, including Martin Allen, Matthew Forstater, Jeffrey Frankel, Geoffrey Ingham, Fadhel Kaboub, Anush Kapadia, Steve Keen, Stephanie Kelton, Marc Lavoie, Gillian Metzger, Jim Millstein, Bill Maurer, and Francois Velde Steve Marglin approached the project with a gravity and generosity that enabled real exchange, a concept he fundamentally redefines Chris Fauske, Richard Kleer, and Ivar McGrath organized a series on Money, Power, and Print, where I benefited from commentary by them and others, including Scott Breuninger, Alan Downie, Joyce Goggin, Jim Hartley, Eoin Magennis, Sean Moore, Anne Murphy, Helen Paul, Stephen Timmons, and Patrick Walsh One of the best teachers I ever had was a student, now a Ph.D in economics, Ryan Taliaferro, who guided me through many of the economic models of money (but is not responsible for what I made of them) Lauren Coyle brought amazing knowledge and creativity to the project when she was a J.D student, now a Ph.D in anthropology Helen Lu, now a finance lawyer, brought critical social scientific skills to the project as she collected monetary data and conceptualized the definitional issues it raised I thank a decade of great research assistants, including Jane Gimian, Stephen ChaKim, Meryl Holt, Elizabeth Jensen, Karl Lisberger, Clayton Simmons, Sarah Levin, Sahand Moarefy, Mo Chen, Rose Francis, Christopher Harrington, Pooja Nair, Melanie Griswold, Adejumoke Osha, Christopher Taggart, Luke Appling, Adam Ringguth, David Landau, Aaron Lamb, and Kevin Burke Iain Frame, Zach Howe, Leia Castaneda, and Mara Caden taught me through their own research I also benefited from the experience of presenting work to the Modern Money Network, a valuable platform for debate about money created by Rohan Gray and developed by Raul Carrillo I am blessed with a money network of my own, a cluster of people without whom this book could not have been written Farley Grubb engaged conversation at any level from the granular to the abstract; his determination to understand the early American experience animates a great economic imagination Rowan Dorin combines astonishing erudition and artistry in his approach to all things medieval, including its money The many-sided dialogue between Morgan Ricks, Nadav Orian Peer, and Roy Kreitner together and separately has been an intellectual joy that was elemental to the manuscript Here’s to Morgan for his analytic drive and eye-opening work and to Nadav for his infectious curiosity and an approach to knowledge that manages to be disciplined and wild at the same time As for Roy, his rare vision, counsel, and friendship matter more than I can say He has informed this project from the beginning Like the monetary adventure itself, the institutional support for this project comes down to people Deans Elena Kagan and Martha Minow of Harvard Law School helped the book move forward in many ways, including research time and funds The Harvard Law School reference librarians, especially Meg Kribble and Janet Katz, spent hours providing sources and expertise on them I am extremely grateful to the staff of FRIDA, particularly Louise Ragno along with Melinda Kent, Ashley Pierce, and Heather Pierce Amanda Cegielski, staff assistant extraordinaire, brought research skills, technical prowess, and an ingenuity that shredded her job description Sarah Davitt, Jennifer Campbell, Joely Merriman, and Joei Perry also provided critical administrative help Matt Seccombe, editor with many portfolios, contributed both historical expertise and conceptual wizardry to the work Alex Flach at the Oxford University Press brought this book to fruition with an extraordinary blend of advice and support; I am deeply grateful Matthew Humphrys beautifully steered the production process, and I appreciate the work of Emma Brady, Natasha Flemming, Kathryn Swift, Katherine Marshall, and Jenifer Payne, as well as three anonymous readers who identified important areas for improvement I thank Carol Oja and Jill Kneerim for good advice about publishing, and Mike Trotman for his ace proof-reading skills I am indebted to Abelardo Morrell for sharing his stunning photography of bank money Finally, I thank the people closest to home Peg Burhoe, Whit and Susan Larrabee, Amy Parker, Diane Piktialis, Elizabeth Mendizabal, Nina Dwyer, and Carol Smith, along with Laurie Lasky and the entire gang at Emerson Park anchored every day with their friendship Karen Jacobson, Richard Nasser, and Amy Shapiro treated reports from the medieval and early modern fronts as breaking news; theirs was essential encouragement over a decade-long project My family lived the whole enterprise most intimately I am grateful beyond words to Elizabeth Desan, who moved heaven and earth for this project, and to Wilfrid Desan, whose constant vocation was a better world Sally Husson, Brenda Husson, Tom Faulkner, “the cousins,” and the Desan-Avila clan rooted for the book with great spirit Barbara Forrest brought inspired judgment to key decisions I love my brother, Paul, for his combination of clear-eyed critique and loyal advocacy, and my sister, Suzanne, for the brilliant sense of history and narrative that rescued me from a black hole more than once Though they had my heart from the beginning, David and Jay would have won it all over again given everything they provided, from comic relief to serious support as they grew up with the book To Bob, who held fast over a thousand years of history and the drama it produced in the present day, I dedicate this work Contents Summary List of Figures Table of Cases Table of Statutes Introduction Creation stories From metal to money: Producing the “just penny” Commodity money as an extreme sport: Flows, famines, debasements, and imitation pennies The high politics of medieval money: Strong coin, heavy taxes, and the English invention of public credit The social stratigraphy of coin and credit in late medieval England Priming the pump: The sovereign path towards paying for coin and circulating credit Interests, rights, and the currency of public debt Reinventing money: The beginning of bank currency Re-theorizing money: The struggle over the modern imagination 10 The 18th century architecture of modern money 11 Epilogue to the 18th century: The Gold Standard in an era of inconvertibility Conclusion: From blood to water Primary Sources Secondary Sources Index money as 1, 24, 49, 58, 59, 61, 70, 71, 78, 81, 83, 107, 269, 336, 359, 427 paper money as 2, 295, 311–20, 328, 404, 407 see also payment modern concepts of money: abstract quality of 20, 32, 33, 427 and capitalism 5–6, 21–2, 296, 328, 360 classical dichotomy (“real” market and “formal” money) 23, 34–7 coin and bullion equated in 238–9 constitutional compromise in 404, 414 development of 11–16, 20, 23–37, 404, 414 exchange as money creator in 2, 4, 20, 404, 434 factors neglected in 4, 20, 22, 427, 430, 432 Gold Standard and 16–17, 19–20, 404, 414–15 governmental power in 19, 20, 414–15, 421 and individual pursuit of profit 11, 14, 20 and Lockean theory 16, 360–1, 381, 404 and medieval, compared 3–4, 20, 21, 239, 398, 427–8 metallism and nominalism in 128 money as natural or sovereign product, compared 239, 380–1 money-as-water image in 426–7 private concept and public architecture of 20, 328–9, 360–1, 404, 414, 434 and Whig monetary system 370, 381 see also medieval doctrine of money; money money: asset pricing model of 45, 46 Bank notes as 2, 14–15, 17, 172, 231, 249–50, 295, 299, 301, 304, 311, 328, 331, 360, 386, 388, 390, 404–7 and barter, compared 27, 61, 200, 228, 271–2 as blood (metaphor) 422–3, 425, 426, 427 and bullion, compared 353–5, 358–9, 423, 430 as capital 373 and capitalism 2, 5, 21–2, 296, 328, 360, 373 cash premium of 47–9, 64, 69, 96–7, 111, 112, 113–14, 117–19, 120, 238, 335, 343, 427, 432 classical dichotomy (“real” market and “formal” money) 23, 34–7, 432 coin and paper money, relationship of 14–15, 295, 304, 312, 318–19, 320–1, 330, 336, 360, 362, 363, 375, 385, 388, 403, 406–7 coin as 2, 8–9, 27, 51–2, 58, 96–7, 107, 109, 330–1, 336, 346, 360 commercial bank currencies 361, 389 and commodification 23, 27 and n10, 59 as a commodity 6, 16, 23, 97, 171, 373, 424 commodity money, generally 8–11, 16–17, 29–32, 97, 107, 109–20, 149–50, 229n113, 235, 331, 346, 353–6, 360, 376, 381, 424, 427–8 as constitutional project 1, 7–8, 20, 69, 106–7, 152–2, 192, 337, 403, 404, 434 content and count of 82–3, 109–10, 120 continuity of 15, 155, 301 as a contract 375 as counted unit of value 24, 58, 69, 71, 73, 83, 88, 109–10, 131, 133, 148 credit as complement to 105, 206, 215, 254 and credit, compared 206, 254 credit-based and commodity-based definitions, compared 330–1 credit currencies 232, 243, 332 debt payment, as function of 2, 71, 255n87, 347 defined 1, 16, 23, 35, 49, 148, 171, 255n87, 259, 330–1, 345–6, 416, 421 in domestic and international use, compared 16, 20, 21, 346–9, 418, 426 as domestic credit 330, 331–41 as a domestic medium 16, 21, 272, 347, 356, 418, 425–6, 427 as engineered resource or system 1, 8, 20, 49, 61, 69, 71, 84, 97, 109–10, 120, 149–50, 293–4, 328–9, 347, 360, 403, 427 as an extant stock, or a created resource 421 extrinsic or intrinsic value of 273, 346, 347 and fair exchanges 271, 331 fiat money 32, 172, 320, 385, 403, 404–7 fiscal value of 14–15, 17, 22, 44, 45, 46, 49, 189, 386, 388, 416, 427 as a form of credit 16, 17, 60, 254, 300, 330, 337, 341, 410 functionality of 1, 27, 35, 58, 332, 335–7 as governance of resources 1, 7, 24, 42, 106, 154, 192, 432 government’s provision of 2, 11, 231, 235, 238–9, 264, 296, 327, 365, 426 as information 35, 36, 425, 427, 432 as instrument of market exchange 6, 20, 27, 35, 421 international trade, money linked to 16, 19, 20, 345–9, 359, 430 lawful money 77–8, 94, 268, 381n82, 406–7 law in modern conception of 11, 17–18, 128, 267, 427 liberal theory of 16, 235, 372–4, 430 Locke’s theory of 16, 346–59, 360, 368, 372–3, 404, 409 and markets 6, 16, 20, 23, 27, 33–7, 49, 59, 65, 68, 99–100, 110, 294, 359, 421, 432, 433, 434 materiality of 49 as material value plus liquidity 388 as measure of value 1, 7, 27, 49, 58, 71, 271, 432 medieval and modern, compared 3–4, 20, 21, 231, 235, 398, 427–8 as medium of exchange 1, 15, 24, 27, 28, 35, 49, 58, 60, 61, 70, 78, 82, 83, 96, 107, 133, 336, 346, 348–9, 425, 427, 432 as mode of governing 1, 24, 45, 58, 78, 131, 432, 434 as mode of payment 1, 24, 49, 58, 59, 61, 70, 71, 78, 81, 83, 107, 269, 336, 359, 427 as nation-building 350 natural or political value of, compared 273–4, 331 as natural product or resource 6, 16, 28, 238, 331, 380 neutrality of 23, 31, 36, 267, 432, 433, 434 opacity of 1, 20, 32 paper money, generally 14–15, 31, 295–6, 299–301, 304–6, 328–9, 331–4, 360, 403, 404 payment to government for 2, 8, 9, 47, 58, 62, 64, 70–1, 78–9, 96–7, 101, 186, 189, 231, 264, 327, 398, 427 political identity of 1, 2, 131, 272–4, 331, 335, 350, 404 pre-political character of 351–2, 373, 421 private concept and public architecture of 19–20, 328–9, 360–1, 403 private currencies 337 as a promise 15, 16, 109, 294, 295, 375, 386, 398, 399, 417, 428 public bonds and, compared 249, 254–5 public credit currencies 171, 172, 179, 232, 290–1 public debt and paper money 14, 249–50, 295–6, 298–300, 303–4, 306, 320, 328–9, 386, 428 public or private origins of 19–20, 264–5, 267, 301, 350–2, 404, 421, 427 public–private interaction and 8, 328–9 public purpose of 8, 11–12, 20, 271–2, 331, 346, 350–1 quantity theory of 103n115 as a receipt for resources contributed 7, 43, 432 revolution, monetary 1–4, 5–6, 11–19, 172, 231, 235, 295–6, 328–9, 403 social role of 1, 7, 24, 60, 78, 110, 350, 351–3, 422–3 as sovereign debt 13, 15, 335 sovereignty, money as attribute of 2, 11, 13, 16, 131, 161, 170, 238, 269–70, 350, 425 in stakeholder theory 7, 24, 43–4, 427, 432 as store of value 1, 27, 35, 58, 71, 82 tallies as 10, 153, 171, 172, 178–9, 189, 231, 239, 429 tokens as 17, 43–4, 51, 171n65, 237, 257, 341n48, 360, 376 as unit of account 1, 7, 14, 24, 35, 49, 52 and n84 58, 61, 70, 73, 83, 84, 107, 148, 269, 336, 359, 418, 427, 430, 432 as a veil 35n38, 36 velocity of 10, 72, 97, 102–3, 107, 258 and n100 as water (metaphor) 423–5, 426–7, 430, 432 see also coins; commodity money; medieval doctrine of money; modern concepts of money; money creation; money supply; nominalism; paper money; stakeholder theory; tallies money creation: Bank of England, as agent of 14, 235, 299, 303–4, 306, 328–9, 397, 418, 419, 426, 428 commercial banks, as agents of 17, 361, 389, 414, 428–30 compared to flow of exchange model 421 as constitutional project 1, 7–8, 37–8, 69, 106–7, 403, 404 conventional account of 3, 24–37, 328 convergence theory of 28–9, 37–8 country banks, Bank of England, and money market in 397 denial or obscuring of process 1, 3–4, 20, 32, 421 by exchange 4, 16, 20, 23–4, 27–8, 36, 171, 351–2, 359, 360, 404, 434 in Gold Standard system 414, 418, 421 government’s monopoly over 2, 231, 427, 428 by groups or communities 6–7, 425, 434 historical approach to 1–2, 5, 6, 11, 38, 50, 107, 163, 229–30, 328–9, 427, 432 investors and 14, 329 Locke’s theory of 16, 350, 351–2, 404 and the market 6, 38, 163, 329, 418, 421, 434 medieval and modern, compared 2–4, 231, 235, 398, 425–6 modern transformation of 1–4, 11–17, 231, 235, 404, 421 monetary and fiscal policy in, compared 329 as natural or sovereign act, compared 238–9 by Parliament 17, 338–9, 381 by private collective action 6, 337 private profit orientation and 14, 235, 265, 296 profitability of 340, 419–20, 428 and n18, 429 from public debt instruments 189, 249–50, 295, 298–9, 303–4, 306, 328, 428 public or private character of 264–5, 300–1, 329, 349–50, 361, 403, 404, 418, 421, 428 royal authority over 11, 52, 54, 55–6, 67, 70, 71, 72, 73–4, 78, 231, 270, 272, 350 by social convention 27, 32, 350, 351–2 as social or collective activity 6–7, 28, 32, 106–7, 337, 351–2, 404 as sovereign’s task 2, 11, 161, 170, 231, 270, 272, 337, 381, 425 stakeholder theory of 7, 24, 42–50, 58, 317, 427, 432 see also convergence theory; money; stakeholder theory money supply: and alternative credit systems 335 and balance of trade 358 bank lending and 18, 229n114, 426–7 Bank of England notes in 328, 379, 387, 417 Bank of England’s responsibility for 401, 410, 417–18 bills of exchange in 380 boom and bust cycle, effect of 413–14 in classical economics 45–6 and coinage crisis of 1690s 349, 358 commercial bank currencies in 361, 389, 420 country bank notes in 379 credit and 105n120, 206, 224–7, 228, 254–5, 263, 298, 335, 379–80, 413 demand for, in cash economy 99–100, 102 depreciation of coin, effect of 122, 123 in 18th century 320, 328, 379–80, 387 equilibrium of, through trade 418, 424 Exchequer bills and 341, 380 expansion of 2–3 and n1, 18, 24, 47, 61, 64, 98–9, 234, 238, 320, 328, 379–80, 420, 399, 420, 426–7 fiat money and management of 408, 412–13 foreign coin in 143–4, 202–3 in 14th and 15th centuries 102, 116, 151–2, 158, 163, 190, 204, 225, 226 and n103 fractional reserve banking and 390, 394, 413 fragility of 255, 361, 399 gold coin in 99n102, 102, 116, 226, 298, 380 Gold Standard in management of 20, 409, 412, 413–14 Great Recoinage’s effect on 366–7 interest rates and 298, 304, 326, 328, 366 in Locke’s theory of money 358 in macroeconomic theory 23, 255 and minting on demand 64, 101 modern bank currency in 420 money scarcity and commodity money system 101, 116–17, 119, 163, 190 in 19th century 379, 399 and n152, 416 paper money in 179, 304, 308, 317, 321n124, 328, 379–80, 387, 407, 419–20 as political or balance-of-trade issue 358 prices and monetary expansion 45–6, 433–4 prices and money scarcity 14, 103–4, 116–18, 151–2, 163, 225, 255–6, 366 private and local notes in 378–9 public credit and 254–5, 341, 380 ratio of gold and silver coin in 54–5, 99n102, 102, 116, 226, 257, 258, 297, 298 recalibration by incentive 122 recoinage and 140, 298, 317, 339, 366 in 17th century 237, 238, 258, 264, 297, 298, 328, 349, 366 in 16th century 234, 236–7 small change, shortage of 106, 116, 118–19, 151–2, 163, 167, 197, 199, 204 sovereign’s authority over 425 tallies in 171, 176, 179, 259, 317 in 12th and 13th centuries 98–9, 143 see also money; prices Montague, Charles 302, 313n88, 344n62, 361–2, 363, 369–70 Murphy, Anne 291, 368n34 National Land Bank, see under banks Navarre 160, 164, 169, 193 Neale, Thomas 333n12, 334, 336, 340, 345n66, 369 neutrality of money 23, 31, 36, 267, 432, 433, 434 critique of 1, 23, 36, 49–50, 69, 432, 433–4 Newton, Isaac 313n88, 331, 349, 383–4 noble (coin) 135 fractions of 196 introduction of 112, 196 value of 196 nominalism: in Anglo-Saxon and Roman law 50, 59, 133 and Case of Mixed Money 267–74, 371 in common law 8–9, 59, 71, 83, 88n67, 92, 110, 129, 133–7, 146, 148, 272n21 exceptions to 146–7 legal nominalism and Locke’s theory, compared 352–3 and metallism 9, 110, 127–33, 137–8, 150, 371 parity in value, maintained by 129–30 and public exchanges 130–1, 135 and sovereign control over value 13, 131, 267–70, 272–4 Normans (and Normandy) 66, 97, 157, 161 North, Douglass 288–9, 292, 293 Northumbria 57 and n110 numeraire 6, 23, 430–1 Oakington 213, 221 obligations, see debt Offa 42, 56n107, 57, 67 orders to pay, see bills of exchange Oresme, Nicholas 110, 138, 160–1, 169, 350, 372n48 De Moneta of 138, 169 Oxford 108, 146, 271 paper money: advantages of, compared to coin 388 anticipation of taxes, as basis of 15, 295, 299–300, 316–17, 319–20, 330, 331, 333–4, 369, 385–6, 406, 417, 428 assignability of Bank bills and notes 308, 311 Bank bills, as money 14, 308–10, 322–3 Bank notes, as money 14, 249–50, 295, 299, 301, 304, 310–11, 328, 331, 360, 386, 388, 390, 404–7 and coin, relationship to 14–15, 295, 304, 312, 318–19, 320–1, 330, 336, 360, 362, 363, 375, 380, 385, 388, 403, 406–7 in colonial America 21, 45n64, 101n109, 172, 179, 186, 187n124, 240n36 country bank notes 17, 328, 378, 379, 390, 396, 397 defined 295 denominations of 310, 337, 339, 388, 401 encashment of 14, 18, 19, 317–18, 324n139, 340, 388 Exchequer bills 15, 47, 254, 307, 314, 315, 323, 326, 330, 332, 339–40, 360, 362, 369–70, 380, 406, 407, 418 in fiat loop (bank–government–taxpayer) 14–15, 316, 319–20, 322, 385–6 fiat regimes of 320, 385–6, 404–7 fiscal system as basis of 14–15, 318–19, 386, 406 forgery of 314 goldsmiths’ notes 262, 300 government’s creation and management of 14–15, 295–6, 299–301, 304–6, 328–9 inconvertibility of 17, 19, 321, 401–3, 404, 408n13, 410, 418, 419 interest-bearing 279, 309–10, 322–4, 325, 326, 340 legal status of 311, 312, 313, 328, 401n158, 406–7 legitimized by gold and silver 318–19, 360, 363, 374, 375, 380 local notes 328, 378–9, 396, 397 market instability of 18–19 as medium of exchange 15, 295, 308–11, 301, 377, 401, 404, 405 as mode of payment 2, 295, 311–20, 328, 404, 407 in money supply 179, 304, 308, 317, 321n124, 328, 379–80, 387, 407, 419–20 origins of 2–3, 11, 14–16, 31, 172, 295–6, 298–301 payment for 301, 322–7, 398 private bank notes 320 proposals for 279, 295–6, 298–301, 330–4, 336–7 public debt as basis for 12, 14, 249–50, 295–6, 298–300, 303–4, 306, 320, 328–9, 386, 417, 426, 428 purchasing power of 316, 320 specie reserve and 31, 318–19 as store of value 316 tallies as model for 10, 172, 299 tax funding of 305, 316, 327 taxes paid with 14, 299, 312, 313–14, 315, 316n103, 321, 333, 340, 369, 385–6 transition from Bank bills to Bank notes 322–7 and unit of account 15, 295, 311, 320–2, 329, 337, 405, 407 see also Bank of England; banks; money Paris, Matthew 140 Parliament: and Bank of England 305, 314, 315, 316, 339, 401, 407 bank regulation by 429 in Civil War 276, 277–8 conflict with Stuart monarchs 240, 242–3, 245, 269, 276 control over money’s value 381, 385 control over payment of public debt 13, 287–8, 289 control over taxation 153, 158, 167, 233, 282n56, 332 credit-based money, author of 332 and creditors 13, 292, 373 and Crown’s authority over money’s value 125, 153, 168, 170 on current and lawful money 78, 81, 94, 381 and n82 in culture of legislation 168 debt payments, delayed or reduced by 287–8, 289 development of 158, 160 and financial elite 292 fiscal power of 13, 125, 151, 158, 167, 168, 282 and n56, 287–8, 332, 338–9 Glorious Revolution and 288, 338 and the Great Recoinage 363, 364, 367 on legal status of paper money 311, 314–15, 407 and Lockean ideology 360, 381 management of money by 17, 360, 381 on money as outside politics 370 money creation by 17, 332, 338–9, 381 on money scarcity 106n124 and private interests 277–8, 288, 292 private theory and public engineering of money in 360–1, 381 prohibition of copper coins 237 on promissory notes 244–5 as source of credit 338 on spending limits and tallies 178 strong money, support for 162, 166–7 on unit of account 381 Whig economic program in 302–3, 363–4, 381 and William III 338, 363 see also Commons, House of; Crown; law; Lords, House of party politics and economic interests 254, 302–3, 338, 361–2 Paterson, William 298, 299, 302, 303, 304, 307, 308, 312–13, 316n103, 317, 334, 336, 338 payment: cash payment in consumption credit 220–2, 224 dichotomized patterns of 44 see also mode of payment; money Peel, Robert 416 penny (silver): an anchoring denomination 73, 191, 196, 207, 273, 360 Anglo-Norman strong penny policy 156, 157 Anglo-Saxon (sceattas) 54–5, 57, 61n123, 79, 80 breaking of 141, 204n41 depreciation of 9, 73n9, 123, 124, 166, 167–8, 194, 273 Edward I’s recoinage of 141 fifteenth penny tax 191 foreign or imitation pennies 80, 94, 96, 108–9, 113n10, 126, 138, 142–9, 203, 272, 342, 364 fractions of 9, 73, 104, 112, 191 Henry III’s redesign of 139–40 Irish pennies, debasement of 268, 273 “just pennies” 8, 76–7, 78, 97, 111, 125, 126 limits of, in exchange 112, 171, 191, 195, 199 Long and Short Cross 126, 139, 140 as mandated mode of payment 8, 59, 78, 80, 83, 93, 94, 97 multiples of 73, 80, 87, 94n93, 112 proportion of, among silver coins 197, 198, 199 public status of 2, 59, 76–7, 78, 93, 96–7, 125, 144, 156, 191, 192, 273, 360 purchasing power of 9, 97, 103, 104, 112, 163, 191, 193–4, 195 reliance on, in exchange 8, 10, 54–5, 57, 68, 73, 82, 93, 96, 97, 102, 104, 125, 191, 195, 196, 207, 360, 430, 433 specifications for 72 and n7, 76, 141 superseded by guinea as key denomination 360–1, 376, 384–5 in tallies 173, 183 as unit of account 58, 59, 73, 93, 96–7, 115, 127, 196, 273, 355, 360, 361, 376, 381, 430 as unit of taxation 8, 191 velocity of 10, 97, 102–3, 104–5 weight of 72 and n7, 73 and n9, 123, 156, 157, 166 see also farthing; halfpenny; sceattas Pepys, Samuel 244, 263, 264 Petty, William 264 Philip IV 162 Philip VI 151, 162, 166 Pitt, William 401 Plantagenet monarchs 70, 426 Plato 350 political economy: of capitalism 15, 21–2 credit in 206, 230 early modern 289, 293 effect of paper money on 403 of English strong money system 152–3, 160–1, 167, 189–90, 192, 194, 206, 230 of European money and tax systems 154–5 under the Gold Standard 414–15 governmental power for commercial purposes 414 inequality–growth trade-off 373 landed elite and Crown, alliance of 151–3, 164, 166, 167, 168–9 liberal model of 12–13, 289, 372–4 modern 15, 20–1, 37, 289, 370 modern money in 15, 20–1, 37, 403, 404 and party politics 254, 302–3, 338 political identity of money 1, 2, 131, 272–4, 331, 335, 350, 404 private profit and public finance in 280 social consequences of strong or weak money 153, 160–1, 167, 190, 191–2, 205 and strategic use of gold and silver coin 125 Whig policies and 254, 302–3, 370, 372–4 pollards and crockards 76n24, 81, 109n3, 142–4, 146, 147, 148, 270 pound: Bank note for 401 as gold sovereign 411n21 minted and in tallies, compared 176 as monetary multiple 73, 87 sterling weight of 123n43, 411n21 in tallies 173, 183 as unit of account 430 prerogative powers, revenue from 233, 240 Pressnell, L S 378, 387, 397 prices: bank notes and 387, 404–5 bullion-based pricing, absence of 63 and coinage crisis of 1690s 341–2 in commodity money system 29–31, 62–3, 116–17, 162–3 deflation 14, 19, 64, 116–17, 123, 151–2, 158, 162–5, 193n2, 218n75, 225, 226, 256, 257, 344, 371, 408, 416 and depreciation of coin 116–17, 122, 123, 160, 167–8, 193n2, 194, 232 effective interest in 188 effect of money and money creation on 432–3 under the Gold Standard 19, 416 of goods, and minting choices 30, 117–18 Great Debasement and 232–3 inflation 122, 141, 149, 160, 164, 167, 193 and n2, 194, 201, 232–3, 341–2, 399, 404–5 in macroeconomic theory 255 mint price 58, 64, 94, 96, 101, 117, 121, 140, 154, 163, 236, 237, 239, 343, 344, 356, 376 and money as counted value 1, 58, 73, 96 money as price information 421, 425 and money scarcity 14, 103–4, 105, 116–18, 151–2, 163, 167, 192, 193–4, 225, 226, 255–6, 342, 366 price adjustment, distortions in 255–6 price controls of Edward I 145 priced exchange and unit of account 430 revaluation or devaluation, effects of 344 and shortage of bullion 119n30, 226 and shortage of small change 116, 118, 193–4, 196, 205, 377 wages and prices, in 18th century 377 wages and prices, in late medieval period 103–4, 112, 118, 122n39, 193–4, 196 wartime spending, effect of 232, 405 see also money supply private concepts of money: Bank money as private credit 410 under the Gold Standard 19, 410 interaction of private and public decisions 8, 328–9 liberalism and 250, 430 and Locke’s theory 373, 404 market as a private space 20, 421 money creation by private action 19, 20, 265, 328, 337, 360, 403, 404, 410, 430 private profit motive in 265 public architecture required for 19, 328–9, 360–1, 403, 404, 414 compare public realm; see also private rights private currencies 337 private exchange and credit 95–6, 262 private interests, see under interests private rights 267, 286, 288, 292–3 Privy Council: on political identity of money 11, 272–4, 350 on public purpose of money 271–2 on sovereign’s authority 11, 137, 269–70, 272–4, 283, 350 profit motive: changing view of 266, 275, 280–1 in economic theory 274, 434 and individual exchange, in capitalism 434 and money creation 11, 14, 265, 296, 434 and private and public interests 12, 266, 280–1 Protestantism and 275 see also interests; investment; private concepts of money; self-interest promises, money based on 15, 16, 109, 295, 375, 386, 398, 399, 417, 428 promissory notes 95, 244–5, 317–18 property rights, construction and protection of 169, 292–3, 415 Protestantism 275, 277 public bills, see bills, public public credit, see under credit public debt, see debt, public public realm: classical liberal view of 431 interests as a political matter 12, 276–9 lawful money, public status of 8, 76–8 monetary rescues as public response to private action 19, 403, 429 money as a public promise 15 money as public resource 8, 11–12, 20, 49–50, 430 and money–market dichotomy 37 and private concepts of money 19, 20, 328–9, 360–1, 403, 404, 414 public and private interests aligned 12, 250, 266, 277–9, 286 public exchanges, nominalism and 130–1 public origin and private use of money, complementary 49–50, 60, 67–8, 106–7, 154 public or private origins of money, compared 19–20, 23–4, 264–5, 300–1, 328–9, 350–1, 403, 404, 427 public purpose of money 8, 11–12, 20, 189, 271–2, 331, 346, 350–1 role of money in 8, 24, 49–50, 60, 67–8, 106–7, 131, 154, 346 compare private concepts of money purchasing power: of English coins 9, 97, 103, 107, 112, 118, 163, 191, 192, 193–4, 377 of European coins 194 of paper money 316, 320 quantity identity of money, see equation of exchange quantity theory of money 103n115 quarter-guinea 377 quarter-noble 196 recoinages, see under coins Redish, Angela 101, 111n6, 112, 121, 123n43, 384n95 renovatio monetae, see under Anglo-Saxon England resources: distributed by money 7, 24, 68, 106 marketability of 59 money as governance of 7, 24, 42, 154, 192, 432 stakeholder’s mobilization of 7, 24, 42, 59, 432 revenue, see taxation revolution, monetary, see under money Ricardo, David 29, 296n4, 405, 406, 416, 430 Richard I 106 Richard II 180n100 Rohan, duke of 276 Roman empire: aftermath of, in England 39–41, 50–1 authority over money in 50, 272 coins of 39, 50, 51 and n82, 52, 60 iconography of, in English coins 53, 54, 270 law of, supporting money 39, 50, 84–6, 87, 133–4 monetized economy of 39, 50, 84 nominalism in 50, 59, 84–6, 88, 133–4 Ruding, Rogers 105, 166, 203, 204–5 Russell, Edward 302 Sargent, Thomas 111n6, 117–19, 124n46, 128n62, 120, 197n11, 199n26, 203, 365, 376 Scandinavia 65n136, 69, 156 sceattas: abundance of 54–5, 57 iconography of 55 minting of 55, 61n123 Scotland 142 coins of 96, 202 seignorage 79, 116n20, 122, 154, 159n25, 189, 236, 238, 419, 429 self-interest: and capitalism in English society 5, 12–15, 266, 277–9 medieval view of 274–5 and modern money 5, 12–13 and public interest, aligned 12–13, 266, 277–9, 280, 281 see also interests; profit motive Seneca 273, 335 Shaftesbury, Anthony Ashley Cooper, earl of 345n65, 349 Shakespeare, William 237 sheriffs: and Halfpenny Proclamation 108–9, 135, 137, 148–9 liability of for substandard money 75, 108–9, 148 as tax collectors 80–1, 108–9, 148–9, 172 shilling: as a monetary multiple 73, 87, 80 money supply in, in 14th and 15th centuries 102 in tallies 173, 183 as unit of account 115, 430 wearing and weight of 114 see also thrymsas (gold shilling) silver: in bimetallic system 115, 196, 344n59, 376 coins bought with 8, 62, 70, 94, 101 competition for, in England and Europe 108–9, 116, 225, 428 creation of coins from 27, 61–2, 72 dilution of, in coin 9, 10, 109, 121, 122, 123, 152, 154, 159, 232, 268 flow of 106, 108, 119, 140, 142, 151, 155, 163, 196, 225, 234, 237, 341–2, 377, 382, 384 gold and silver at mint, compared 116, 140, 196, 199, 226, 234, 237, 257, 344n59, 376, 384 in international trade and credit 16, 95, 115, 196, 229n113, 345–9, 353, 358 and n117 in Locke’s theory of money 16, 345–9, 354–9 mint price and market price of 196, 343, 344 as raw material, 21, 52, 70, 72, 119 shortage of 119, 151, 162, 196, 202, 225, 226 sterling standard of 72 and n7, 232, 364 supplies of, in Europe 119, 124, 151, 155, 162, 225, 234 as tangible value in coin 72, 110, 354n97 traders’ silver 16, 331, 345–6, 347, 353 value of, as bullion or coin 30, 62, 63n127, 64, 90, 94–5, 101, 117, 258, 342–3, 354n97 value of, compared to gold 9, 115, 196, 341, 376, 383, 384 white silver 202 see also gold; silver coins silver coins: abundance of, in exchange 54–5 arbitrage between gold and silver coins 115, 349 in bimetallic system 112, 115, 124, 196, 297, 349, 355n103, 376 as commodity money 2, 8, 30–1, 62, 101, 110, 353–8 count and content of 82–3, 112, 342, 349, 353–8 crisis of, in 1690s 330, 341–5 debasement of 151, 152n4, 154, 159, 163, 164, 169, 232–3, 268 devaluation proposal for 342, 344–5, 348, 362 dilution of silver content in 9, 10, 109, 121, 122, 123, 154, 169, 232, 268 free minting of 8, 62, 70–1, 101, 111 and gold coin, in money supply 54–5, 99n102, 116, 205, 226, 258, 297–8, 384n96 and gold coin, relative values of 9, 10, 115, 122, 297, 342, 343n56, 355, 382n87, 383, 384–5 in Great Recoinage 362–7 in hierarchy of exchange 205 in international trade 63n128, 114, 115, 346–9 in Locke’s theory of money 346–9, 353, 358 in money supply 98–9, 106, 116, 196, 226, 258, 297–8, 358, 384 origins of 2, 27, 61–2, 70, 72, 111 physical production (or manufacture) of 74, 138 shortage of, in 14th and 15th centuries 10, 106, 116, 196–9, 205, 225, 226 shortage of, in 17th century 257–9, 297–8, 341–2 small change as proportion of 197–8 and small transactions 10, 112, 195–6 sterling standard of 72, 76, 232, 269, 273, 364 subordinated to gold coin 17, 380, 382, 384–5 as unit of account 58, 71, 72, 115, 321n126, 346, 352, 376, 381 value of, compared to bullion 30, 62, 70, 94–5, 101, 117, 258, 342–3, 354n97 see also farthing; groat; halfpenny; penny; sceattas; shilling; silver Simmel, Georg 23, 31 Smith, Adam: on commodity money 35n39, 258, 385 on individual agency 24–5, 274 on the market 328 on money supply 412 on paper money 385–6, 387, 406 and stakeholder theory 16 social aspects of money: community-building and nation-building 60, 346, 350–1 and consumption credit 206, 215, 218, 223–4, 227–8, 229 and effects of Gold Standard, 416 and effects of recoinage 130, 132, 366 and inequality–growth trade-off 373 and money-as-blood imagery 422–3 money creation by social convention 349–50, 351–3 money scarcity and the poor 10, 263 social disparities and access to money 10, 205, 257–8, 433 strong or weak money, social consequences of 153, 160–1, 167, 190, 193, 205 stratification and strong money system 10, 125, 161, 167, 191–2, 205 see also money: social role of; stratification Somers, John 281–3, 285, 287, 302, 345, 363, 374 Song against the King’s Taxes 164, 165–6, 191, 203–4 Song of the Husbandman 100–1 Southampton, Thomas Wriothesley, earl of 259n105 South Sea Company 289–90, 292–3 sovereign (coin) 411n21 sovereigns: authorship of money 2, 3, 11, 16, 52, 54, 73, 131, 189, 231, 269, 270, 331, 332, 337, 346, 350, 381, 425 control over value 10, 13, 74, 125, 152–3, 168, 170–1, 231, 267–70, 272–4, 331, 346, 381, 425 in Locke’s theory of money 346 money as sovereign or natural product, compared 16, 238, 273, 331 relations with subjects, and monetary regime 2, 131, 152–3, 154, 285, 350 sovereign debt 13, 15, 335 sovereign immunity 184, 283 sovereign or communal power over money, compared 169, 350 as unique authority or contracting party 285 see also authority; Crown; government Spain 159, 234, 237, 256 specie reserve 308, 318–19, 367 Spufford, Peter 39, 67, 93, 124, 168, 209 stakeholder theory (and stakeholders): community leaders as stakeholders 7, 41, 42–3 and individuals’ exchanges 59 and money creation 7, 16, 24, 42–50, 58, 67, 317, 427, 432 and resource mobilization 24, 42–3, 59, 60, 432 Steel, Anthony 185 Stephen 70 sterling standard 72 and n7, 76, 123n43, 232, 269, 273, 364 Stockholm, Bank of 304n38 stratification: of access to cash 102, 191, 257–8, 433 in consumption credit system 192, 206, 212–13, 227–8, 229 and effects of recoinage 366 in exchange 10, 116, 124, 190, 191–2, 205, 229 gold–silver–barter hierarchy in 205 public creditors in 292 and strong money system 10, 116, 125, 167, 190, 191–2, 205, 229 Strongbow (Richard de Clare) 268 Stuart monarchs 12, 235, 288 borrowing strategies of 240–1 conflict with Parliament 240, 242–3, 269 early coinage policies 236–7 early revenue policies 233, 240 reliance on prerogative power 240, 242 see also Charles I; Charles II; James I; James II Talbot, Charles 302 tallies: as anticipated tax revenue 10, 153, 171, 174–5, 179, 190, 231, 239, 240, 259, 289, 298, 367 assignment of 174–5, 181 Bank of England’s absorption of 314, 321–2, 327 as circulating public debt 10, 153, 171, 180–1, 189, 239 circulation of, as a currency 10, 171, 172, 179, 180, 189, 231, 249, 323 creation of 153, 171, 173–4 customs farmers’ handling of 241–3 decline of 12, 171–2, 239–40, 259–60, 298n15, 380n78 denominations recorded in 173, 183 discounting of 180, 183, 185, 187–8 in Europe 174n77 as Exchequer receipts 80, 174, 181 and n101, 297 as fiat money 172 as interest-free loans 153, 171, 186–7, 190 interest granted for 186, 246, 260 laws and ordinances on 184–5, 186 loan, tallies of 247–8 as money 10, 153, 171, 172, 178–9, 189, 231, 239, 429 in the money supply 171, 176, 179, 259, 317 paper money, model for 10, 172, 299 and prices 179 proportion of revenue in tally form 175–6 private and public, compared 174, 181n101 and public bonds, compared 250, 259 as public debt 10, 153, 171, 183–4, 189, 239 range of values of 183 and n104 replacement of, by bonds 10, 235, 259–60 taxation: Anglo-Norman 156–7 Anglo-Saxon 155–6 anticipation of taxes, as basis of paper money 15, 295, 299–300, 316–17, 319–20, 330, 331, 333–4, 369, 385–6, 406, 417, 428 assignment of anticipated revenue 174–5 burden of, on commoners 158, 163, 165, 191, 319–20 Charles II’s reform of 246 Commons’ power over, and leverage with Crown 151, 167 customs farmers in tax system 242–3 excise, customs, and land tax collection 292, 387–8 in fiat loop of paper money 316–17, 319–20 fifteenth penny tax 191 and fiscal value of money 14–15, 44, 45, 46, 78, 83, 316–17, 319–20, 386–7 for funding of paper money 305, 316, 327 for funding of public bonds 250, 259, 260n106, 287–8, 289 limits of, early modern 296–7 money scarcity and tax collection 256, 264, 297–8 paper money, tax payments in 14–15, 299, 312, 313–14, 315, 316n103, 321, 333, 340, 369, 385–6 Parliament’s control over 153, 158, 167, 233, 282n56, 332, 338 payment required in money 78, 80–1, 83, 100, 163, 191 and policing of coin quality 81–2 prerogative powers, revenue from 233, 240 for recoinage costs 365 strong money and high taxation tradition 153, 155, 158, 159, 161, 163, 190 tallies as anticipated tax revenue 10, 153, 171, 174–5, 179, 190, 231, 239, 240, 259, 289, 298, 367 tax evasion, prosecution of 292 tax farmers 172 transition from feudal dues to national taxation 157–8 Temple, Richard 345n66, 356, 364n11 Thornton, Henry 405, 406, 410 thrymsas (gold shillings) 51, 53, 54 Times of London 406 tin coins and tokens 171n65, 257n94 token money: copper and tin token coins 171n65, 257n94 in denominational structure 17, 171n65, 237, 257, 341n48, 360, 376 design of 378 re-introduction of, in 18th century 17, 360, 376, 378 Roman 39, 51 tokens in stakeholder theory 43–4 tontines 246, 254, 261 Tory party 303, 362, 370 land-based ideology of 254, 338 and National Land Bank 368 Treasury: on recoinage in 1690s 344–5 Treasury Orders 247, 248, 251, 255n87, 259, 260, 261, 279, 281, 289, 290, 295, 301, 323, 324 valuation of guineas by 383n90 see also bonds, public; Exchequer Treatise on the New Money 70 and n1, 72, 73–4, 75–6, 77, 93–4 Trenchard, John 302 trial of the pyx 75–6, 197, 199 Tudor monarchs 12, 178 and n91, 232–3, 270 see also Edward VI; Elizabeth I; Henry VII; Henry VIII United States: devaluation in 131, 132 financial crisis and monetary policy in 4, unified monetary system in 21, 131 see also America (colonial) unite (gold coin) 115 unit of account: and accounting system 58 and n116, 73 Bank notes as 15, 18, 301, 311, 405, 407 and bimetallic system 115 in consumption credit 207, 211 countable units 24, 71, 73 divisibility or bluntness of, compared 104 effect of lack of, in barter 200, 205 fractions and multiples of 73 gold coin as 17, 364n15, 376, 381, 382, 409 and Gold Standard system 17, 409 government control over 13, 58, 148, 231, 239, 286, 381, 419 guinea as 17, 360–1, 376, 382, 385, 403 judicial enforcement of 286 and lawful money 72–8 laws on 59 material character of 52n84 money as 1, 7, 14, 24, 35, 49, 52 and n84, 58, 61, 70, 73, 83, 84, 107, 148, 269, 336, 359, 418, 427, 430, 432 and nominalism 13, 129–30, 148, 269, 352 paper money and 15, 18, 295, 299, 301, 320–2, 328–9, 405, 407 penny as 58, 59, 73, 93, 96–7, 115, 127, 196, 273, 355, 360, 361, 376, 381 role of, in priced exchange 1, 205, 430 silver coin as 58, 71, 115, 321n126, 346, 352, 376, 381 sovereign’s authority over 10, 13, 58, 231, 269, 381 as sovereign’s receipt for resources contributed 7, 43, 432 transition from silver to gold coin as 376 usury prohibition 224, 226, 275–6, 279n46 value: based on use or functionality 332, 335n23 collective creation of 293 as commodity or convention, compared 32 compound value of coin 9, 111, 113, 128–9, 149 counted units of, money as 58, 69, 71, 73, 83, 88, 109–10, 131, 133, 148 established by social convention 352 external touchstone for 375, 411 extrinsic or intrinsic value of money 273, 346, 347 fiscal value of money 14–15, 17, 22, 24, 44, 45, 46, 49, 189, 386, 388, 416, 427 material value plus liquidity, money as 388 measure of 1, 7, 254, 271 modern vocabulary of of money and other resources, equated 264n132 money as measure of 1, 7, 27, 49, 58, 71, 254, 271, 432 money as store or promise of 16, 27, 35, 58, 71, 82, 294, 295, 375 natural or political value of money, compared 273–4 nominalism and relative value 129–30 paper money as store of 316 political identity as source of 331 public promises and 16, 294, 295, 428 scale of, in exchange 376 sovereigns’ control over 10, 13, 74, 125, 152–3, 168, 170–1, 231, 267–70, 272–4, 331, 346, 425 Velde, Francois 111n6, 117–19, 124n46, 128n62, 120, 197n11, 199n26, 203, 365, 376 velocity of money 10, 72, 97, 102–3, 107, 258 and n100 Venice: coins of 123, 194n5, 202 municipal bonds of 240 public banks at 304 wage payments, currency for 377, 378, 379 Wales 89, 141, 142 war, see military needs Warden of the Mint 74, 75 water, money as 423–5, 426–7, 430, 432 wear and tear, see under coins Weingast, Barry 288–9, 292, 293 Wessex 51, 57, 65 Wharton, Thomas 302 Whig party: and Bank of England 302–3, 362, 368, 370 on National Land Bank 369 on political economy and money 254, 302–3, 362, 370 on revaluation of coinage 345, 362–4 theory of money 319, 345 See also Locke, John “white money” 202, 203 Wickham, Chris 40, 41, 51, 54n95, 57 William I 69 strong penny policy of 156, 157 taxation under 156, 161n32 William II 156 William III 283, 297, 323 ministry of 302, 349 and Parliament 338, 363 on recoinage 363, 367 and Whig party 302 Wren, Christopher 331, 349, 363n6 Writtle (Essex) 210–11, 212, 213–14, 216, 219, 227n106 York, minting at 198 Yorkshire 146 ... MAKING MONEY Coin, Currency, and the Coming of Capitalism Making Money Coin, Currency, and the Coming of Capitalism CHRISTINE DESAN Great Clarendon Street, Oxford,... taxes The political birth of the Bank B The paradigmatic medium of the modern world: money from the Bank The medium of exchange—bills and notes The mode of payment, or how to make a fiat loop The. .. period in England to the coming of capitalism there during the 17th century The account ends after considering the way the British developed their new system in the following century and institutionalized