The Spanish dollar, also known as the piece of eight (Spanish : Real de a ocho) or the peso, is a silver coin of approximately 38 mm (1.5 in) diameter worth eight Spanish reales. It was minted in the Spanish Empire following a monetary reform in 1497.
The Spanish dollar was widely used by many countries as the first international currency because of its uniformity in standard and milling characteristics. Some countries countersigned the Spanish dollar so it could be used as their local currency.
The Spanish dollar was the coin upon which the original United States dollar was based, and it remained legal tender in the United States until the Coinage Act of 1857. Because it was widely used in Europe, the Americas, and the Far East, it became the first world currency by the late 18th century.Aside from the U.S. dollar, several other currencies, such as the Canadian dollar, the Japanese yen, the Chinese yuan, the Philippine peso, and several currencies in the rest of the Americas, were initially based on the Spanish dollar and other 8-real coins. Diverse theories link the origin of the "$" symbol to the columns and stripes that appear on one side of the Spanish dollar.
The term peso was used in Spanish to refer to this denomination, and it became the basis for many of the currencies in the former Spanish colonies, including the Argentine, Bolivian, Chilean, Colombian, Costa Rican, Cuban, Dominican, Ecuadorian, Guatemalan, Honduran, Mexican, Nicaraguan, Paraguayan, Philippine, Puerto Rican, Peruvian, Salvadoran, Uruguayan, and Venezuelan pesos. Of these, "peso" remains the name of the official currency in Argentina, Chile, Colombia, Cuba, Dominican Republic, Mexico, Philippines, and Uruguay.
Millions of Spanish dollars were minted over the course of several centuries. They were among the most widely circulating coins of the colonial period in the Americas, and were still in use in North America and in South-East Asia in the 19th century.
In the 16th century, Count Hieronymus Schlick of Bohemia began minting a coin known as a Joachimsthaler (from German thal, modern spelling Tal , "valley", cognate with "dale" in English), named for Joachimsthal , the valley in the Ore Mountains where the silver was mined (St. Joachim's Valley, then part of the Kingdom of Bohemia within the Holy Roman Empire, now Jáchymov , part of the Czech Republic). Joachimstaler was later shortened to taler, a word that eventually found its way into Norwegian, Danish and Swedish as daler, Russian as талер (táler), Czech and Slovene as tolar, Polish as talar, Dutch as daalder, Amharic as ታላሪ (talari), Hungarian as tallér, Italian as tallero, Greek as τάληρο (taliro), Spanish tálero and English as dollar.
The Joachimsthaler weighed 451 Troy grains (29.2 g) of silver. So successful were these coins that similar thalers were minted in Burgundy and France. The Burgundian Cross Thaler depicted the Cross of Burgundy and was prevalent in the Burgundian Netherlands that were revolting against the Spanish king and Duke of Burgundy Philip II. After 1575, the Dutch revolting provinces replaced the currency with a daalder depicting a lion, hence its Dutch name leeuwendaalder.
Specifically to facilitate export trade, the leeuwendaalder was authorized to contain 427.16 grains of 0.750 fine silver, lighter than the large denomination coins then in circulation. Clearly it was more advantageous for a Dutch merchant to pay a foreign debt in leeuwendaalders rather than in other heavier, more costly coins. Thus, the leeuwendaalder or lion dollar became the coin of choice for foreign trade. It became popular in the Middle East, and colonies in the east and west.
They also circulated throughout the English colonies during the 17th and early 18th centuries. From New Netherland (New York) the lion dollar spread to all thirteen colonies in the west. English speakers began to apply the word "dollar" also to the Spanish peso or "piece of eight" by 1581, which was also widely used in the British North American colonies at the time of the American Revolution, hence adopted as the name and weight of the US monetary unit in the late 18th century.
See also: Spanish real, Peso
After the introduction of the Guldengroschen in Austria in 1486, the concept of a large silver coin with high purity (sometimes known as "specie" coinage) eventually spread throughout the rest of Europe. Monetary reform in Spain brought about the introduction of an 8-real (or 1-peso) coin in 1497, minted to the following standards:
This was supplemented In 1537 by the gold escudo, minted at 68 to a mark of gold 0.917 fine (fineness reduced to 0.906 in 1742 and 0.875 in 1786). It was valued at 15–16 reales or approximately 2 dollars. The famed Gold Doubloon was worth 2 escudos or approximately 4 dollars.
From the 15th to the 19th centuries the coin was minted with several different designs at various mints in Spain and the New World, having gained wide acceptance beyond Spain's borders. Thanks to the vast silver deposits that were found mainly in Potosí in modern-day Bolivia and to a lesser extent in Mexico (for example, at Taxco and Zacatecas), and to silver from Spain's possessions throughout the Americas, mints in Mexico and Peru also began to strike the coin. The main New World mints for Spanish dollars were at Potosí, Lima, and Mexico City (with minor mints at Bogotá, Popayán, Guatemala City, and Santiago), and silver dollars from these mints could be distinguished from those minted in Spain by the Pillars of Hercules design on the reverse.
The dollar or peso was divided into 8 reales in Spanish Latin America until 19th century when the peso was divided instead into 100 centavos. However, monetary turbulence in Spain beginning under the reign of King Philip II resulted in the dollar being subdivided as follows in Spain only:
Spain's adoption of the peseta in 1869 and its joining the Latin Monetary Union meant the effective end of the last vestiges of the Spanish dollar in Spain itself. However, the 5-peseta coin (or duro) was slightly smaller and lighter but was also of high purity (90%) silver.
In the 1990s, commemorative 2,000-peseta coins were minted, similar in size and weight to the dollar and also with high fineness.
Following independence in 1821, Mexican coinage of silver reales and gold escudos followed that of Spanish lines until decimalization and the introduction of the peso worth 8 reales or 100 centavos. It continued to be minted to Spanish standards throughout the 19th century, with the peso at 27.07 g of 0.9028 fine silver, and the escudo at 3.383 g of 0.875 fine gold. The Mexican peso or 8-real coin continued to be a popular international trading coin throughout the 19th century.
After 1918, the peso was reduced in size and fineness, with further reductions in the 1940s and 1950s. However, 2- (1921), 5- (1947) and 10- (1955) peso coins were minted during the same period with sizes and fineness similar to the old peso.
The term cob was used in Ireland and the British colonies to mean a piece of eight or a Spanish-American dollar, because Spanish gold and silver coins were irregularly shaped and crudely struck during this period.
After the colony of New South Wales was founded in Australia in 1788, it ran into the problem of a lack of coinage, particularly since trading vessels took coins out of the colony in exchange for their cargo. In 1813, Governor Lachlan Macquarie made creative use of £10,000 in Spanish dollars sent by the British government. To make it difficult to take the coins out of the colony, and to double their number, the centres of the coins were punched out. The punched centre, known as the "dump", was valued at 15 pence, and the outer rim, known as the "holey dollar", was worth five shillings. This was indicated by overstamping the two new coins. The obverse of the holey dollar was stamped the words "New South Wales" and the date, 1813, and the reverse with the words "five shillings". The obverse of the dump was stamped with a crown, the words "New South Wales" and the date, 1813, and the reverse with the words "fifteen pence". The mutilated coins became the first official currency produced specifically for circulation in Australia.The expedient was relatively short lived. The British Parliament passed the Sterling Silver Money Act in 1825, which made British coins the only recognised form of currency and ended any legitimate use of the holey dollar and dump in the Australian colonies.
The Coinage Act of 1792 created the United States Mint and initially defined the United States dollar at par with the Spanish dollar due to its international reputation:
By far the leading specie coin circulating in America was the Spanish silver dollar, defined as consisting of 387 grains of pure silver. The dollar was divided into "pieces of eight," or "bits," each consisting of one-eighth of a dollar. Spanish dollars came into the North American colonies through lucrative trade with the West Indies. The Spanish silver dollar had been the world's outstanding coin since the early 16th century, and was spread partially by dint of the vast silver output of the Spanish colonies in Latin America. More important, however, was that the Spanish dollar, from the 16th to the 19th century, was relatively the most stable and least debased coin in the Western world.
The Coinage Act of 1792 specified that the U.S. dollar would contain 371.25 grains (24.057 g) pure or 416 grains (26.96 g) standard silver. This specification was based on the average weight of a random selection of worn Spanish dollars which Alexander Hamilton ordered to be weighed at the Treasury. Initially this dollar was comparable to the 371–373 grains found in circulating Spanish dollars and aided in its exportation overseas. The restoration of the old 0.9028 fineness in the Mexican peso after 1821, however, increased the latter’s silver content to 24.44 g and reduced the export demand for US dollars.
Before the American Revolution, owing to British mercantilist policies, there was a chronic shortage of British currency in Britain's colonies. Trade was often conducted with Spanish dollars that had been obtained through illicit trade with the West Indies. Spanish coinage was legal tender in the United States until the Coinage Act of 1857 discontinued the practice. The pricing of equities on U.S. stock exchanges in 1⁄8-dollar denominations persisted until the New York Stock Exchange converted first to pricing in sixteenths of a dollar on 24 June 1997, and shortly after that, to decimal pricing.
Long tied to the lore of piracy, "pieces of eight" were manufactured in the Americas and transported in bulk back to Spain, making them a very tempting target for seagoing pirates. The Manila galleons transported Mexican silver to Manila in the Spanish Philippines, where it would be exchanged for Philippine and Chinese goods, since silver was the only foreign commodity China would accept. In Oriental trade, Spanish dollars were often stamped with Chinese characters known as "chop marks" which indicated that particular coin had been assayed by a well-known merchant and determined to be genuine. The specifications of the Spanish dollar became a standard for trade in the Far East, with later Western powers issuing trade dollars, and colonial currencies such as the Hong Kong dollar, to the same specifications.
The first Chinese yuan coins had the same specification as a Spanish dollar, leading to a continuing equivalence in some respects between the names "yuan" and "dollar" in the Chinese language. Other currencies also derived from the dollar include the Japanese yen, Korean won, Philippine peso and the Malaysian ringgit.
Contemporary names used for Spanish dollars in Qing Dynasty China include benyang (本洋), shuangzhu (双柱), zhuyang (柱洋), foyang (佛洋), fotou (佛頭), foyin (佛銀), and fotouyin (佛頭銀). The "fo" element in those Chinese names referred to the King of Spain in those coins, as his face resembled that of images of the Buddha; and the "zhu" part of those names referred to the two pillars in the Spanish coat of arms.
In modern pop culture and fiction, "pieces of eight" are most often associated with the popular notion of pirates.
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Dollar is the name of more than 20 currencies, including those of Australia, Canada, Hong Kong, Jamaica, Liberia, Namibia, New Zealand, Singapore, Taiwan, and the United States. The U.S. dollar is also the official currency of the Caribbean Netherlands, East Timor, Ecuador, El Salvador, the Federated States of Micronesia, the Marshall Islands, Palau, and Zimbabwe. One dollar is generally divided into 100 cents.
The thaler was a silver coin used throughout Europe for almost four hundred years. Its name lives on in the many currencies called dollar and the Samoan tālā, and, until 2007, also in the Slovenian tolar.
The Mexican peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 10th most traded currency in the world, the third most traded currency from the Americas, and the most traded currency from Latin America.
The peso was a monetary unit that originated in Spain and is now the name of the monetary unit of several countries in the Americas and the Philippines. The silver peso worth eight reales was also known in English as a Spanish dollar or piece of eight and was a widely used international trade coin from the 16th to 19th centuries.
The doubloon was a two-escudo or 32-real gold coin, weighing 6.867 grams in 1537, and 6.766 grams from 1728, of .917 fine gold. Doubloons were minted in Spain and the viceroyalties of New Spain, Peru, and Nueva Granada. The term was first used to describe the golden excelente either because of its value of two ducats or because of the double portrait of Ferdinand and Isabella.
Trade dollars are silver coins minted as trade coins by various countries to facilitate trade with China and the Orient. They all approximated in weight and fineness to the Spanish dollar, which had set the standard for a de facto common currency for trade in the Far East.
The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver specie standard was widespread from the fall of the Byzantine Empire until the 19th century. Following the discovery in the 16th century of large deposits of silver at the Cerro Rico in Potosí, Bolivia, an international silver standard came into existence in conjunction with the Spanish pieces of eight. These silver dollar coins played the role of an international trading currency for nearly four hundred years.
Holey dollar is the name given to coins used in the early history of two British settlements: Prince Edward Island and New South Wales. The middle was punched out of Spanish dollars, creating two parts: a small coin, known as a "dump" in Australia, and a "holey dollar". This coin was one of the first coins struck in Australia.
The real was a unit of currency in Spain for several centuries after the mid-14th century. It underwent several changes in value relative to other units throughout its lifetime until it was replaced by the peseta in 1868. The most common denomination for the currency was the silver eight-real Spanish dollar or peso which was used throughout Europe, America and Asia during the height of the Spanish Empire.
The piastre de commerce was the currency of French Indochina between 1885 and 1952. It was subdivided into 100 cent, each of 5 sapèque.
The silver real was the currency of the Spanish colonies in America and the Philippines. In the seventeenth century the silver real was established at two billon reals or sixty-eight maravedís. Gold escudos were also issued. The coins circulated throughout Spain's colonies and beyond, with the eight-real piece, known in English as the Spanish dollar, becoming an international standard and spawning, among other currencies, the United States dollar. A reform in 1737 set the silver real at two and half billon reals or eighty-five maravedís. This coin, called the real de plata fuerte, became the new standard, issued as coins until the early 19th century. The gold escudo was worth 16 reales de plata fuerte.
The pataca was a monetary unit of account used in Portuguese Timor between 1894 and 1958, except for the period 1942–1945, when the occupying Japanese forces introduced the Netherlands Indies gulden and the roepiah. As in the case of the Macanese pataca which is still in use today, the East Timor unit was based on the silver Mexican dollar coins which were prolific in the wider region in the 19th century. These Mexican dollar coins were in turn the lineal descendants of the Spanish pieces of eight which had been introduced to the region by the Portuguese through Portuguese Malacca, and by the Spanish through the Manila Galleon trade.
The Philippine real was the currency of the Philippines during the Spanish Colonial Era. Brought over in large quantities by the Manila galleons, eight silver reales made up a silver peso or a dollar. 16 silver real were equal to one gold escudo.
This article provides an outline of the currency of Spanish America from Spanish colonization in the 15th century until Spanish American independencies in the 19th. This great realm was divided into the Viceroyalty of New Spain, which came to include all Spanish territory north of Panama, the West Indies, Venezuela, and the Philippines, and the Viceroyalty of Peru, which included Panama and all Spanish territory in South America except Venezuela. The monetary system of Spanish America, originally identical to that of Spain, soon diverged and took on a distinctive character of its own, which it passed on to the independent nations that followed after.
The currency of Venezuela has been in circulation since the end of the 18th century. The present currency unit in Venezuela is the Venezuelan bolívar.
Currency in Colombia has been used since 1622. It was in that year, under a licence purchased from King Philip III of Spain, that Turrillo de Yebra established a mint at Santa Fe de Bogotá and a branch mint at Cartagena de las Indias, where gold cobs were produced as part of Colombia's first currency. Silver milled coins date from 1627. In 1831, Gran Colombia dissolved into Venezuela and New Granada. In 1836, in New Granada, new monetary laws were passed, to standardise the money produced in the country. From 1861-1862, due to financial instability, the United States of New Granada accepted British currency, the name of the country becoming the United States of Colombia in 1862. In 1880, Colombia pegged the peso to the gold standard due to the falling price of silver. In 1886, the paper peso was introduced. In 1931, Colombia abandoned the gold standard and switched to the current form of the peso.
The article provides a historical summary of the currency used in Ecuador. The present currency of Ecuador is the United States dollar.
The United States dollar is the official currency of the United States and its territories per the Coinage Act of 1792. The act created a decimal currency by creating the following coins: tenth dollar, one-twentieth dollar, one-hundredth dollar. In addition the act created the dollar, half dollar, and quarter dollar coins. All of these coins are still minted in 2019.
The history of Philippine money covers currency in use before the Hispanic era with gold Piloncitos and other commodities in circulation, as well as the adoption of the peso during the Hispanic era and afterwards.