The 8 Reales coin—often called the “piece of eight”—was far more than just currency. It was a cornerstone of global commerce and a symbol of Spain’s imperial reach. Here’s a concise breakdown:

Why the 8 Reales Was So Important

• Global Currency: Minted in silver and standardized in weight and purity, it became the first truly international currency. It was accepted across Europe, Asia, and the Americas from the 16th to 19th centuries.
• Colonial Power: Produced in Spanish colonies like Mexico and Peru, it reflected Spain’s dominance in the New World and its control over vast silver resources.
• Trade Backbone: Used in trade routes from Manila to Madrid, it helped facilitate the Manila Galleon trade, connecting Asia and the Americas.
• Influence on Modern Money: The 8 Reales directly inspired the U.S. dollar, and its design elements (like the “$” symbol) trace back to it.
• Pirate Lore & Pop Culture: Known as “pieces of eight,” it became legendary in pirate stories and maritime history, adding to its mystique.

So Basically.

The 8 Reales was the Bitcoin of the Age of Exploration—a trusted, widely accepted medium that powered global trade, shaped modern currencies, and left a legacy in both economics and culture. Its influence is still felt in the coins we use today.

Spanish real

Top of Form Silver 8-real coin of 1768 from the Potosí mint.

The real (English: /ɹeɪˈɑl/ Spanish: /reˈal/) (meaning: “royal”, plural: reales) was a unit of currency in Spain for several centuries after the mid-14th century.^[1] 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 (Real de a 8) or peso which was used throughout Europe, America and Asia during the height of the Spanish Empire.

History

In Spain and Spanish America

See also: Currency of Spanish America

Silver real coined in Seville during the reign of Peter I of Castile (1350–1369).Spanish 1799 silver 8 reales, Charles IV (reverse)

The first real was introduced by King Pedro I of Castile in the mid 14th century, with 66 minted from a Castilian mark of silver (230.0465 grams) in a fineness of ¹³⁴⁄₁₄₄ (0.9306), and valued of 3 maravedíes. It circulated beside various other silver coins until a 1497 ordinance eliminated all other coins and retained the real (now minted 67 to a mark of silver, 0.9306 fine, fine silver of 3.195 grams) subdivided into 34 maravedíes.^[2]

The silver real was minted in ¹⁄₂-, 1-, 2-, 4- and 8-real denominations. After the discovery of silver in Mexico, Peru and Bolivia in the 16th century, the 8-real coin (referred to since then as a dollar, peso or piece of eight) became an internationally recognized trade coin in Europe, Asia and North America and were known variously as pesos, duros, diuros fuertes, thalers, dollars, and piastres.^[3] These reales were supplemented by the gold escudo, minted 68 to a mark of ¹¹⁄₁₂ fine gold (3.101 g fine gold), and valued at 15–16 silver reales or approximately two dollars.

This real, worth ¹⁄₈ dollar, was retained in Latin America until the 19th century but was altered considerably in peninsular Spain beginning in the 17th century. This Spanish colonial real was subsequently referred to as moneda nacional (“national money”) and underwent two more changes:

• 1728: 68 reales (or 8+¹⁄₂ dollars) minted to a mark, ¹¹⁄₁₂ or 0.9167 fine (3.101 g fine silver)
• 1772: 8+¹⁄₂ dollars minted to a mark, ¹³⁰⁄₁₄₄ or 0.9028 fine (3.054 g fine silver)

Spain – 17th and 18th centuries

The various financial crises under King Philip II gave rise starting in 1600 to the real de vellón (made of billon, or less than half silver). The relative autonomy of Spain’s constituent kingdoms resulted in reales of varying silver content and worth considerably less than the real nacional worth ¹⁄₈ of a dollar. The monetary confusion would not be resolved until the real de vellón was fixed at 20 reales to the dollar in 1737.^[3]

The first ordinance officially devaluing the Spanish non-colonial real came out in 1642, with the real provincial debased from 67 to 83+³⁄₄ to a mark of silver (hence, 10 reales to the dollar). Actual coins worth ¹⁄₂, 1, 2, 4 and 8 reales provincial (the latter worth ⁴⁄₅ of a dollar and called peso maria) were minted in 1686 and were poorly received by the public.^[4]

The same 1686 recoinage came with edicts in 1686–1687 fixing the real de vellón at one dollar = 15+²⁄₃₄ reales or 512 maravedíes (or 1 dollar = 8 reales nacionales worth 64 maravedíes). The ineffectiveness of these edicts meant that existing reales de vellón were worth even less than 15+²⁄₃₄ of a dollar (0.0664 dollars).

The confusion to the monetary situation would not be resolved until 1737 in various stages, namely:

• The dollar of 8 reales nacionales reduced in 1728 to 8+¹⁄₂ dollars to a mark, ¹¹⁄₁₂ (22 karat or 0.9167 fineness, which is 24.809 grams or 0.7976 troy ounces fine silver)
• Real nacional coins were reintroduced in 8-real and 4-real denominations worth 1 dollar and ¹⁄₂ dollar, respectively.
• Real provincial coins were limited to 2-, 1- and ¹⁄₂-real denominations worth ¹⁄₅, ¹⁄₁₀ and ¹⁄₂₀ dollar, respectively.
• The Real de vellón was finally fixed in 1737 at ¹⁄₂₀ dollar and equal to 34 maravedíes (hence 1 dollar = 20 reales = 680 maravedíes), and
• The Peso de cambio of 512 maravedíes as introduced in 1686 continued to be used as an accounting unit but worth a reduced value of ⁵¹²⁄₆₈₀ dollar (approximately ³⁄₄ of a dollar). This was divided into eight reales de cambio each of 64 maravedíes.

Subsequent changes until the end of the 18th century were minor and involved reducing the fineness of the silver dollar to ¹³⁰⁄₁₄₄ = 0.9028 fine and the gold escudo (now worth 2 dollars or 40 reales de vellón) from 0.917 to 0.875 fine. Starting 1810 silver coin denominations were revised to their more common-sense values in reales de vellón: 20, 10, 4, 2 and 1 real with 1 real = ¹⁄₂₀ dollar.

In Spain – 19th century

1 real coin, Spain, 1852, Isabella II. Silver 900.

The loss of American possessions in the first third of the 19th century cut off the inflow of precious metals into Spain and resulted in the gradual use of French coinage in local circulation. These subsequent changes to the Spanish currency system were never carried out in full:

• The first decimal currency of 1850, with the real de vellón worth ¹⁄₂₀ dollar, 10 décimas or 100 céntimos, and with maravedíes discontinued.
• The second decimal currency of 1864, with a new silver escudo worth ¹⁄₂ dollar, 10 reales de vellón or 100 céntimos de escudo (not equivalent to the gold escudo).

The real was only retired completely with the introduction in 1868 of the Spanish peseta, at par with the French franc, and at the rate of 1 dollar = 20 reales = 5 pesetas. Consequently, the term real lived on, meaning a quarter of a peseta (25 céntimos de peseta).

Coins

Relative sizes of Castilian silver coins, from ¹⁄₄ to 8 reales, according to a 1657 document.

Coins were minted in both Spain and Latin America from the 16th to 19th centuries in silver ¹⁄₂, 1, 2, 4 and 8 reales nacionales and in gold ¹⁄₂, 1, 2, 4 and 8 escudos. The silver 8-real coin was known as the Spanish dollar (as the coin was minted to the specifications of the thaler of the Holy Roman Empire and Habsburg monarchy), peso, duro or the famous piece of eight. Spanish dollars minted between 1732 and 1773 are also often referred to as columnarios. The portrait variety from 1772 and later are typically referred to as Spanish dollars or pillar dollars.

Coins were minted in Spain in copper 1, 2, 4 and 8 maravedíes, in silver coins equivalent to 1, 2, 4, 10 and 20 reales de vellón since 1737, and in gold coins equivalent to ¹⁄₂, 1, 2, 4 and 8 escudos. New coins introduced after the 1850 decimalization include copper 5, 10 and 25 céntimos de real as well as a new gold 100-real (5-dollar) coin.

Currency of Spanish America

From Wikipedia, the free encyclopedia

Charles V Spanish coin from the 1554 shipwreck in the Gulf of Mexico

This article provides an outline of the currency of Spanish America (las Indias, the Indies) 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 (capital: Mexico City), which came to include all Spanish territory north of Panama, the West Indies, Venezuela, and the Philippines, and the Viceroyalty of Peru (capital: Lima), 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.

1480–1516 Ferdinand and Isabella

1497 Medina del Campo

Real (R) = 34 Maravedíes (mrs)

After the Spanish kingdoms were united under Ferdinand of Aragon and Isabella of Castile and soon after the conquest of Granada, the Spanish monetary system was reformed. This caused some damage to the kingdom. The maravedí had served as the Spanish money of account since the 11th century, but on June 2, 1497 the Ordinance of Medina del Campo (site of the great international fairs) made the real the unit of account, with the maravedí defined as a fraction of it (the 34th part). The standard silver coin became the real of 3·434 g, 0·9306 fine (3·195 g silver), rated 34 maravedíes. There was also a half, a 3, and a 6-real coin. This reform adopted the excelente (called ducado from 1504) for gold, a copy of the Venetian ducat, 3·521 g, 23+³⁄₄ carats fine (3484·442 mg gold), rated 375 maravedíes. A third standard coin was the blanca, a small coin of 1·198 g, worth half a maravedí. The blanca was a copper coin containing a trace of silver, a type of coin known as billon, wellón in Spanish. This was the monetary system that the Spaniards brought to the New World.

1502 Copper coins for Santo Domingo

The first distinctive coins minted for Spanish America were copper 4-maravedí pieces authorized for Santo Domingo by Ferdinand on December 20, 1505 (later confirmed by his daughter, Johanna, on May 10, 1531). These coins were minted in Spain (at Burgos and Seville) and shipped to Santo Domingo (Hispaniola), and subsequently also to Mexico and Panama. The first were struck 1502–1504 in the name of Ferdinand and Isabella, with an F-I monogram obverse and pillars reverse. Ferdinand died in 1516, and Johanna’s son Charles became King Carlos I of Aragon and Regent of Castille, so the last coppers struck in the early 1520s had a Carlos-Johanna monogram.

1516–1556 Charles I

Escudo gold

Charles, who was also Holy Roman Emperor (as Karl V), reformed the gold coinage in 1537, replacing the ducado with the escudo or corona, essentially a debased ducat. The escudo, 24 mm, 3·383 g, 0·9167 fine (3101·117 mg gold), was rated 350 mrs. The ducado was not minted after 1537 but continued as a money of account (Ducado = 375 Maravedíes), especially for foreign exchange.

Tepuzque gold

Charles sent silver coins to New Spain in 1523, but this was insufficient for local commerce. A sort of “coin” was produced at Mexico City: gold discs stamped with their weight and fineness and sometimes with royal countermarks. These discs are known as Tepuzque (the Aztec word for copper) gold or peso de oro. Although not strictly coins, they did serve as money and circulated as late as 1591. No examples are known to exist.

Early Pillars type silver

Mexico City was growing and by 1525 it was petitioning the crown for a mint to produce coin locally in order to facilitate trade. This wish was granted by royal ordinance of May 11, 1535 and a mint opened and began producing silver coins at Mexico City in April 1536.

Type 1536

The first silver struck in the Indies (Spanish America), known as the pillar type because it depicted the pillars of Hercules, were hand struck, typically on a full-sized round planchet of even thickness. Obv.: the crowned shield of Leon and Castile, quartered with castle and lion, with the pomegranate of Granada at the point of the shield, and on either side a mintmark (M for Mexico), the rim inscribed KAROLVS ET IOHANA REGES. Rev.: two crowned columns (pillars of Hercules) with PLVS (for plus ultra) on a banner and the value (dots or a number) between them, the rim continuing the inscription with HISPANIARVM ET INDIARVM. The full inscription appears only on the larger coins, becoming more abbreviated as coins size decreases. The small quarter real has a crowned initial K without mintmark obverse (instead of the shield); the half real had the initials K I and the mintmark below. The assayer’s initial appears either on the reverse between the column bases (R or G), or on the obverse in place of one of the two mintmarks (P or F).

Struck at Mexico City between 1536 and 1542, undated.
Denominations:¹⁄₄,¹⁄₂, 1, 2, and 3 reales. (These coins are rare; perhaps only 300—400 specimens survive.) The 2 and 3-real coins were confused because of their similar size, so the 3 reales was discontinued in 1537. The ¹⁄₄ real was unpopular because of its small size; it was not minted after 1540.

Type 1542

The reverse of the design was modified in 1542, when waves were placed between the two pillars and the full motto PLVS VLTRA, without a banner, appeared across the field.

Struck at Mexico City (1542–1572), Santo Domingo (1542–1564), and Lima (1568–1572); undated.
Denomination: 1, 2, and 4 reales. (At least 2,500 specimens of this series survive.)

Vellón coins

Vellón (copper) coins of 2 and 4 maravedíes were minted at Mexico City (and evidently at Santo Domingo 1542–1556), authorized June 28, 1542 by Viceroy Mendoza. They had K obverse and I reverse, each flanked by a lion and castle with the value under the I. They were rejected by the public, and they were withdrawn from circulation in 1556. Copper coins, which dominated currency circulation in Spain during the 17th century, were not minted again in Spanish America until the end of the 18th century. (The reason why copper coinage was not utilized in the Spanish colonies as small change is unresolved and a matter of dispute among economic historians. Royal regulations of 1565 specifically stated that neither gold nor wellón was authorized to be minted in the Indies.)

1556–1598 Philip II

After Philip II ascended the throne in 1556, Mexico City continued minting type 1542 coins in the name of Charles and Johanna. Lima, however, used the inscription PHILIPVS II.

From 1565 until 1821 there was an annual galleon convoy (Galeones de Manila-Acapulco) that crossed the Pacific from Acapulco loaded with silver coin, which was exchanged at Manila in the Philippines for Oriental goods, chiefly for spices, silk, tea, porcelain, and lacquerware.

The output of the American mines was usually shipped to Spain in the form of ingots or of crude, temporary coins (known as macuquinas in Spanish and as “cobs” in English). Ingots and cobs were a way to account for the 20% (royal fifth, quinto real) of all treasure due the king.

Monetary law of 1566

The value of the escudo was raised on November 23, 1566 from 350 to 400 mrs, and multiples were introduced. The double escudo (doblón) was called a pistole in the rest of Europe and in England. The 8-escudo piece (onza de oro) was initially known as a double doubloon, then as a quadruple pistole, but eventually gained fame as the Spanish doubloon. This doubloon of 8 escudos eventually became the most common Spanish gold coin, equivalent to 16 silver pesos.

The 1566 reform also provided for a silver 8-real coin, the real de a ocho or peso duro (which had already been minted in Spain in limited number). This coin, 39–40 mm, 27·468 g, containing 25·561 g pure silver, was now struck in the Indies, at Lima from 1568 and at Mexico City from 1572. This coin was commonly known in English as the piece of eight.

1572 cross type silver

The new coin design of 1572 (new for America, but already being minted in Spain) is known in English as the shield or the cross type. It was known in Mexico as maquina de papalote y cruz (windmill and cross money). These were hammered coins, produced quickly, and they generally deteriorated in quality throughout the period. Most cobs were soon melted down to produce coins, jewelry, etc. But many circulated as coin, but their crude appearance invited clipping, and many were soon lightweight. Obv.: the crowned Habsburg arms, with mintmark and assayer’s initial left and the value right, the rim inscribed PHILIPVS II DEI GRATIA. Rev.: the quartered arms of Castile and León inside a quatrefoil design, the dividing lines emphasized, looking like a cross, the rim inscribed REX HISPANIARVM ET INDIARVM. The inscriptions are abbreviated on the smaller coins. Minor differences in design detail can be ascribed to a specific mint.

Struck at Mexico City 1572–1734, Santo Domingo 1572–1578, Lima 1572–1650, La Plata 1573–1574, Potosí 1574–1650, Panama 1580–1582, Cartagena (Colombia) 1622–1650, and Bogotá 1622–1650. This was the first New World type to be struck in the 8-real denomination.
Denomination: 1, 2, 4, and 8 reales^[1]

1598–1621 Philip III

Trade with the Far East and bullion shipments to Spain required ever greater quantities of processed silver. The demand for quantity led to ever poorer workmanship during the 17th century, so that coins were struck on crude pieces of silver. These roughly made lumps of silver, irregular in shape and thickness but of standard weight and fineness, conveniently served as temporary coins (macuquina or “cobs”).

Philip III continued with the shield type of 1572 (inscribed PHILIPVS III), also in denominations of 1, 2, 4, and 8 reales. Mexico City coins were dated from 1607. Potosí, where the position of mint assayer was auctioned off to the highest bidder, only began dating coins in 1617, after a scandal involving an illegal debasement of the cob coinage (1610–1617). The dates were added to the obverse inscription, but because of the irregular shape of a cob, they are rarely legible.

Philip III unleashed the era of wellón in Spain in 1599, when his government attempted to remain solvent by authorizing wellón of pure copper. It was at this time that the flood of silver from Mexico and Peru peaked. The different kinds of coin—gold, silver, and wellón—had circulated at par since 1497, but heavy issues of wellón above its intrinsic value destroyed its customary acceptance at par, and began driving silver out of circulation. By 1620 accounts in Spain were being kept in reales of wellón, no longer in silver reales.

1621–1665 Philip IV

Coinage in Spain

The output of wellón in 1621–1626 was prodigious. Since 1599 over 15 billion maravedíes worth of wellón had been minted. Silver was constantly at a premium, and prices rose sharply. Then the influx of silver began declining in the 1630s as more silver was retained in America for colonial needs.^[2]

Coinage in America

Old world coin types used in early America are known from archeological evidence of coin hoards commencing at Santo Domingo, circa 1500, and onward. Most any coin used in the old world could have migrated to the new, with explorers and settlers embarking from many ports with some local change in their purses. On arrival in America the first coins were walked about, able to be found hundreds of miles away from where their owners first stepped ashore. Coin types found in abundance, such as “blancas” of the Catholic Monarchs, were likely drivers of early commerce, and not mere keepsakes of the immigrants. The first new world mint was authorized in 1536 at New Spain, Mexico City.

Philip’s early coinage

Silver coins of the 1572 type were minted with PHILIPVS IV and a 1/2-real cob was added to the usual 1, 2, 4, and 8-real denominations. There were major gold deposits in Colombia; a mint opened at Santa Fe de Bogotá in 1620, and it produced the first gold coins (cobs) in Spanish America in 1622. Unlike silver, the gold coins show the king’s portrait obverse.

A second illegal debasement of the cob coinage in the Viceroyalty of Peru in 1631–1648 was a major scandal. The public began refusing all Peruvian coins as potentially below standard. After this affair, the cross design was replaced at all the Peruvian mints by a new pillar-and-wave design. The reputation of coins from the Mexico City mint was unblemished, and cross type cobs continued to be produced there until 1734. Meanwhile, all Peruvian coins circulating in Spain were called to the mints in 1650 to be recoined.

1651 pillars-and-waves type

After the debasement scandals in Peru, cross type cobs were replaced by a type known as pillars and waves in English and as Perulera in Spanish. These hand struck cobs, like the cross type, degraded in quality as time passed. Obv.: a cross with lions and castles (similar to the 1572 reverse). Rev.: a pair of pillars with waves below intersected by three horizontal lines of text, forming a tic-tac-toe design, the top line with the mintmark, the value, and the assayer’s initial (e.g. L 8 M = Lima, 8 reales, assayer M), the middle line PLVS VLTR[A] (abbreviated on the smaller coins), the bottom line the assayer’s initial, the last two numerals of the year, and the mintmark (e.g. M 88 L = assayer M, 1688, Lima).

Struck at the Bogotá, Potosí, Cartagena, and Lima mints from 1651 on. Even after the introduction of milled coinage in 1732, the Potosí mint continued to produce cobs of this type (the last in 1773). These cobs were generally accepted, but there were still occasional periods of debasement, and Peruvian coinage was usually considered inferior.

1665–1700 Charles II

Peso = 8 Reales

Escudo = 2 Pesos = 16 Reales

Currency reform of 1686

The overissue of wellón coin in Spain had driven gold and silver from circulation. After the failure of numerous attempts to correct this situation, the currency finally underwent a major reform on October 14, 1686, when Spain devalued silver by ≈20% and adopted a dual coinage standard. The old silver standard (plata vieja) was maintained in the American colonies, but a new devalued silver (plata nueva) was adopted for circulation in Spain itself. The old piece of eight was valued at 10 reales of the new silver coin. The new 8-real coin was known as peso sencillo, the old piece of eight as peso fuerte. Foreign exchange was quoted in pesos de cambio, based on the old piece of eight, which continued to be produced in America. After this, the monetary systems of Spain and of Spanish America differed significantly.

Coinage in America

In 1675 Mexico was finally authorized to mint gold, producing its first gold cobs in December 1679, Lima minted its first gold in 1696.

The silver coins of the 16th century bore an irregular row of dots near the rim, which became more regular during the 17th century as gold coins took on a rounder, standard shape. The circle of dots (cordoncillo) was placed closer to the edge. Silver coins followed the gold in adopting these improved details, but the piece of eight did not show a clear outline until 1709.^[3]

1700–1746 Philip V

Peso (peso fuerte, duro) = 8 Reales

Onza de oro = 16 Pesos

Various Imperial thalers, called dollars in English, were familiar to North American colonists. The piece of eight had the same intrinsic value as the thaler and by the end of the 17th century it too was being called dollar (and was so designated in Jamaican monetary legislation of 1738). By the mid 18th century the piece of eight was commonly known in British North America as the Spanish dollar. Colloquial terms used in New Spain were: pataca for the peso (real de a ocho), tostón for the medio peso (4 reales), and peseta for the 2 reales.

Gold circulation became more common in Spanish America after 1704, when the West Indies adopted a gold standard.

After 1716 the Spanish mints flooded Spain with debased silver based on the real sencillo of 3·067 g, containing 2·556 g silver. These silver coins were called plata provincial. The silver minted in America was now officially called plata nacional, but was also called plata vieja (old silver) or plata gruesa (heavy silver), and occasionally plata doble (double silver).

The British East India Company had established a regular trade with China by 1720, paying for goods with Spanish silver.

To prevent sweating and clipping, laws of 1728 and 1730 adopted modern minting techniques. Gold and silver coins were to be perfectly round and to have milled edges. There was a reduction in weight and fineness, the peso becoming 27·064 g (the same weight as the gold onza), with 24·809 g pure silver. The onza de oro or peso duro de oro (8-escudo piece) was 27·064 g, 22 carats fine, 24,808·936 mg pure gold. The Mexico City mint was the first to comply, in 1732, using an up-to-date screw press. An edge design, resembling a tulip, was put on the 8-reales to make any clipping evident. Technical problems and local resistance to design change delayed the adoption of milled coinage at Lima and Santiago until 1751.

Milled pillar silver of 1732

The milled pillar type of 1732, columnario in Spanish, was machine struck on a full-sized round planchet. Obv.: the crowned arms of Castile and León, the assayer’s initial left, the value right, the rim inscribed PHILIP•V•D•G•HISPAN•ET•IND•REX+. Rev.: two orbs (representing the Old and the New Worlds) under a crown and over the Straits of Gibraltar, flanked by two crowned pillars with PLUS VLTR[A] on banners wrapped around the columns, the inscription VTRAQUE VNUM, and below, the date, preceded and followed by the mintmark. The obverse shield is the usual lions, castles, and pomegranate, but with the center defaced by the Bourbon arms (three fleurs-de-lis). Some minor modifications were subsequently made in the location of the mintmark and assayer’s initials. The 8-real coin, 39.5 mm, was given a protective corded edge design resembling a tulip.

Produced until 1772: at Mexico from 1732, Santiago and Lima from 1751, Guatemala City from 1754, Santa Fe de Bogotá from 1759, and Potosí from 1767. During the production of these coins some minor modifications were made in the location of the mintmark and assayer’s initials. The old style cobs continued to be produced in the Viceroyalty of Peru, with the last coming from the Potosí mint in 1773.

Denominations:¹⁄₂, 1, 2, 4, and 8 reales.

The 8-reales produced from 1732 until 1772 was the coin that became a standard in the English colonies in North America: it is the coin referred to in colonial contracts calling for payment in Spanish milled dollars.

Milled gold of 1732

The first milled gold was also produced in 1732 at the Mexico City mint. The production of gold cobs continued until 1750, after which time they were completely replaced by milled coinage. The gold coins feature an obverse portrait design, and the royal arms (reverse) appear smaller than on the silver coins to allow for the encircling collar of the Golden Fleece. The royal titles are the same as on the silver, but the legends vary. The 1732–1747 type bears the inscription INITIUM SAPIENTIAE TIMOR DOMINI.^[4]

1746–1759 Ferdinand VI

Coinage in Spain

The debased Spanish provincial silver was supposed to remain in Spain, but it crossed the Atlantic to create problems. The 2-real coin was particularly common in the English colonies, where it was known as a pistareen. It was easily distinguished from the Spanish American silver because provincial silver had the crowned heraldic Habsburg shield obverse and cross with the Castile and León shield reverse, and were known as “cross” pistareens (and cross reales). The peso duro (dollar) was usually worth five pistareens.

On May 4, 1754 Ferdinand VI prohibited the circulation in America of all money coined in Spain, including national gold and silver coins identical with those minted in America. The quantity of overvalued provincial silver in circulation was so great that colonial officials lacked the means to redeem and remove it from circulation.

Coinage in America

In 1748 the inscription on the gold coins was changed to NOMINA MAGNA SEQUOR (until 1759). Lima switched from producing gold cobs to minting milled gold in 1751. A mint opened at Santiago, Chile, in 1750, which produced chiefly gold coins. The rim inscription is FERDND•VI•D•G•HISPAN•ET•IND•REX+ obverse, and +VTRAQUE VNUM+[mintmark]+[year]+[mintmark]+ reverse. On the silver 8-real coin the royal Spanish crown on top of the left pillar was replaced in 1754 by an Imperial crown.

1759–1788 Charles III

Coinage type of 1759

The silver of Charles III bore the rim inscription CAROLUS•III•D•G•HISPAN•ETIND•REX+ obverse, and +VTRA QUE VNUM+(mintmark)+(year)+(mintmark)+ reverse. The 8-real piece was commonly called the Carolus dollar in English. The inscription on the gold coins of Charles III was changed to IN UTROQ FELIX AUSPICE DEO (and remained thus until the American colonies gained independence).

Spanish dollars in China

After 1757, China restricted European trade to Canton (see Thirteen Factories for a description of this trading system). The British East India Company dominated this trade and paid for its purchases with Spanish Carolus dollars, which were accepted in China for more than the 4s:2d sterling that was considered their intrinsic value. Chinese merchants gradually became accustomed to the dependable weight and fineness of Spanish milled silver and, instead of melting the coins down, they began to use them as currency, often with a chop (seal, countermark) to guarantee its acceptability.

Coinage of 1772

Charles adopted new coin designs with the royal profile, more difficult to counterfeit, and his Pragmatic of May 29, 1772 ordered all money in circulation in Spain and the Indies to be recoined at the same weight and fineness, but he secretly instructed the mints to lower the fineness of national gold from 22 carats to 21+⁵⁄₈ and of national silver from 0·91667 to 0·90278. This gave a peso of 27·064 g with 24·433 g silver and an onza of 27·064 g with 24,386·057 mg gold.

These coins are known as the “portrait” or “modified pillar” type in English, and as busto in Spanish. (English head real was applied to the provincial silver real coined in Spain, which was 20% lighter.) Obv.: bust of the king, the rim inscribed CAROLUS III DEI GRATIA with the date. Rev.: two columns (pillars of Hercules) with the motto PLUS VLTRA on banners, but the two orbs between the columns were replaced with the crowned shield of Leon and Castile, the rim inscribed HISPAN. ET IND. REX, then the mintmark, value, and assayer’s initials. The corded (tulip) edge of the eight reales was replaced with an edge design of alternating circles and rectangles.

Coinage of 1786

Secret instructions to the mints, June 25, 1786 reduced the fineness of escudos to 21 carats (0·875). This should have produced an onza containing 23,681·257 mg fine gold, but foreign assays show the coins only 0·8698 fine, and those minted after 1800 consistently 0·8646 fine. Assays made by Bonneville on coins minted 1786–1800 showed that all silver was minted only 0·8958 fine. (The old, true standard was not restored until after 1821.)

1788–1808 Charles IV

Because of problems in supplying new dies, an edict of December 24, 1788 authorized the American mints to continue using the dies with the portrait of Charles III, while changing the name to Charles IIII by adding another Roman numeral I. New dies finally arrived in 1791. The 8 reales was struck at Potosí in 1789 and 1790 with the bust of Charles III but the name altered to “IV”, then with the new portrait of Charles IV in 1791. The first cuarto (1/4 real) was struck at Mexico City in 1794.

1808–1821 Ferdinand VII

The colonies were cut off from Spain by the French occupation and the Peninsular War of 1808–1814. They were ruled by independent juntas who refused to recognize Joseph Bonaparte (Spanish: José Napoleón Bonaparte), proclaimed King of Spain and the Indies and older brother of Napoléon Bonaparte, Emperor of the French, instead declaring allegiance to the deposed Ferdinand VII. But the independence movement had already been initiated in earnest by Francisco de Miranda, and in 1810 it broke out in full force.

The Spanish Napoleonic coinage was used only in Spain. The American mints initially minted coins with the portrait of Ferdinand VII. The minting of royalist coins effectively ended in 1821, when republican forces captured the mint at Lima (although republican coins were counterstamped as royalist at Lima in 1824).

Monetary legacy

The monetary unit in the former Spanish colonies was the silver peso, with a value of 8 reales. Silver coins were: cuartillo (1/4 R), medio (1/2 R), real, peseta (2 R), medio peso (4 R), and peso (8 R). If minted to standard, they were either 0·916 fine or (from 1772) 0·902 fine. Circulation also included a varying quantity of macuquina, worn, and of varying weight and fineness. There were also silver coins of various types that had been produced by republicans and royalists during the struggle for independence.

Gold did not circulate as common currency. It was used primarily in international trade and for hoarding, The standard coin was the gold onza, with variations in fineness, the pre-1771 coins being 0·9165 fine; the 1771 type, 0·901 fine; and the 1786 type, only 0.875 fine.

Copper coins were also in circulation, having appeared in quantity during the struggles for independence.

Technical summary

The mint standards were set by the Spanish crown and until 1686 the coinage of Spain and of the Indies (Spanish America) were identical, save in two respects. A minor difference was that coins minted in America were inscribed REX HISPANIARVM ET INDIARVM (king of the Spains and the Indies), while those minted in Spain had only REX HISPANIARVM. The major difference was that wellón or copper coins were not minted for circulation in the Spanish American colonies, while after 1602 the currency of Spain itself consisted chiefly of copper coin.

Although Mexico and Peru were the chief source of the world’s silver, after 1620 silver was always at a premium in Spain and wellón constituted the accounting unit and the chief medium of exchange (the cuarto also became a common accounting unit). The silver flowed through Spain in a steady stream to pay for imports, wars, and imperial expansion.

Philip IV reformed Spain’s monetary system in 1686 by debasing the silver coinage, which had been unchanged since 1497. This reform applied only to coins minted in Spain. The coinage of the American colonies, which had already assumed great importance in international trade, was left untouched, and the 1497 silver standard continued in use (until 1728). From this time on, the monetary systems and currencies of Spain and of Spanish America developed differently.

Coins were defined by monetary regulations as so many minted per mark weight and of a certain minimum fineness. The mint mark used was the mark of Castile. It originated when Alfonso X (1252–1284) replaced the Roman pound (libra) with the Cologne mark. Spanish numismatists usually use the weight of this mark as determined in 1799, i.e. 230·0465 grams. The measure of fineness (ley in Spanish) for gold was 24 quilates (carats), each of 4 granos (grains); the measure for silver was 12 dineros, each of 24 granos.^[5]

Mints

The four early, permanent mints in the Indies were:

• Mexico City (1536–1821)
• Lima (1568–1572, 1577–1588, 1659–1660, 1684–1824)
• Potosí (1574–1825)
• Santa Fe de Bogotá (1622–1820)

Early ephemeral mints were five:

• Santo Domingo (1542–1564, 1573–1578)
• La Plata (modern Sucre) (1573–1574)
• Panama City (1580–1582)
• Cartagena (1622–1655)
• Cuzco (1698)

Later permanent mints were three:

• Guatemala City (1733–1821)
• Santiago de Chile (1749–1817)
• Popayán (1758–1822)

^[6]

References

1.  Shaw, W.A. (1896, reprinted 1967), The history of currency 1251 to 1894: being an account of the gold and silver moneys and monetary standards of Europe and America, together with an examination of the effects of currency and exchange phenomena on commercial and national progress and well-being, New York: G.P. Putnam’s Sons, reprinted by Augustus M. Kelley, pp. 319–344, LC 67·20086 .
2.  Bischoff, William, editor 1989. The Coinage of El Perú, New York: American Numismatic Society.
3.  halmers, Robert (1893), History of currency in the British colonies, London: Eyre and Spottiswoode for Her Majesty’s Stationery Office, pp. 5–23, 101-105, 390-396 .
4.  Shaw, W.A. (1896, reprinted 1967), The history of currency 1251 to 1894: being an account of the gold nio and silver moneys and monetary standards of Europe and America, together with an examination of the effects of currency and exchange phenomena on commercial and national progress and well-being, New York: G.P. Putnam’s Sons, reprinted by Augustus M. Kelley, pp. 319–344, LC 67·20086.
5.  Real de a Ocho (1621–1700), Portal Fuenterrebollo. Retrieved on 20 March 2008 (in Spanish) Information on the early coinage in Spanish America (and contemporary Spain).
6.  Las casas de moneda españolas en América del sur Archived April 5, 2008, at the Wayback Machine. Retrieved on 20 March 2008 (in Spanish) On-line book detailing the history of the Spanish mints in South America.

• The Practical Book of Cobs 4th Ed. Sedwick
• Carson, R.A.G. (1962), Coins: ancient, mediaeval & modern, London: Hutchinson, pp. 428–430, ISBN 0-09-104820-6
• Chalmers, Robert (1893), History of currency in the British colonies, London: Eyre and Spottiswoode for Her Majesty’s Stationery Office, pp. 5–23, 101–105, 390–396, ISBN 0-665-02956-X
• Dargent Chamot, Eduardo. Las casas de moneda españolas en América del sur (in Spanish). Archived from the original on 5 April 2008. Retrieved 13 February 2015. On-line book detailing the history of the Spanish mints in South America.
• Sédillot, René (1955), Toutes les monnaies du monde, Paris: Recueil Sirey, pp. 23–24, 171–172, 432–433
• Shaw, W.A. (1967) [1896], The history of currency 1251 to 1894: being an account of the gold and silver moneys and monetary standards of Europe and America, together with an examination of the effects of currency and exchange phenomena on commercial and national progress and well-being, New York: G.P. Putnam’s Sons, reprinted by Augustus M. Kelley, pp. 319–344, LC 67·20086
• Sumner, W.G. (1898), “The Spanish dollar and the colonial shilling”, American Historical Review, 3 (3), The American Historical Review, Vol. 3, No. 4: 607–619, doi:10.2307/1834139, JSTOR 1834139
• “Real de a Ocho (1621–1700), Portal Fuenterrebollo” (in Spanish). Retrieved 13 February 2015. Information on the early coinage in Spanish America (and contemporary Spain).

Other references consulted

• Standard Catalog of World Coins: Spain, Portugal and The New World, by Krause-Mishler (2002) (Contributor: Daniel Frank Sedwick )
• Calbetó de Grau, Gabriel. 1970. Compendio de las Piezas de Ocho Reales. 2 volumes/tomos. San Juan, Puerto Rico: Ediciones Juan Ponce de León.
• Bischoff, William, editor 1989. The Coinage of El Perú, New York: American Numismatic Society.
• Cayón, Adolfo, Clemente Cayón and Juan Cayón. 1998. Las Monedas Españolas, Del tremis al euro, Del 411 a nuestros días. Madrid

Spanish colonial real

From Wikipedia, the free encyclopedia

Silver coin: 8 reales Fernando VI, Viceroyalty of New Spain – 1757 MMSilver coin: 8 reales Carlos III, Viceroyalty of New Spain – 1778 FF chopmarkSilver coin: 8 reales Carlos IV, Viceroyalty of New Spain – 1808 chopmarkSilver coin: 8 reales Fernando VII, Viceroyalty of Rio de la Plata – 1823 PTSPJSilver coin: 8 reales Carlos IV, Viceroyalty of Peru – 1800^[1]

The silver real (Spanish: real de plata) was the currency of the Spanish colonies in America and the Philippines. In the seventeenth century the silver real was established at two billon reales (reales de vellón) or sixty-eight maravedíes. Gold escudos (worth 16 reales) 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 reales (reales de vellón) 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.

History

Coins were produced at mints in Bogotá, Caracas, Guatemala City, Lima, Mexico City, Popayán, Potosí, Santo Domingo and Santiago. For details, see the:

• Colombian reales
• Mexican reales
• Peruvian reales
• Santo Domingo reales
• Venezuelan reales

After the independence of Spain’s colonies, the real was replaced by currencies also denominated in reales and escudos, including the Argentine real, Central American Republic real, Ecuadorian real, Honduran real, Paraguayan real and Santo Domingo real.

Coins

From 1572 to 1773 Spanish colonial silver coins were cobs. Initially cut from a silver bar and hammer struck on a coin die, they were accurate in weight, though sometimes debased in precious metal content. However unlike machined coins, they were often irregular in shape, especially if a too-thick coin was clipped by the mint to reach the proper weight. After 1732 similar, but better shaped cobs were produced on screw presses. Cob denominations were ¹⁄₂, 1, 2, 4, and 8 reales. When circulating in New England the larger coins might be cut to give intermediate values; since a real was nicknamed a “bit”, the expression “two bits” came to mean a quarter dollar.^[2]

Unlike in Spain, the copper coins were generally not struck by the colonial mints. Most issued silver coins in denominations of ¹⁄₄, ¹⁄₂, 1, 2, 4 and 8 reales and gold coins for ¹⁄₂, 1, 2, 4 and 8 escudos. Exceptions were the Santo Domingo mint, which did strike maravedíes in the sixteenth century and the Caracas mint which issued fraction of real copper coins in the early nineteenth century to facilitate commerce.

Columnarios

A Spanish colonial silver coin, minted in Potosí in 1768, featuring the columns and the hemispheres

Columnarios are silver coins that were minted by Spain from 1732 to 1773 throughout its New World colonies. While the majority of columnarios were struck in Mexico, smaller mints existed in Guatemala; Lima, Peru; Santiago, Chile; Potosí, Bolivia; and Colombia. The base denomination is an 8 reales coin (aka Piece of eight or Spanish dollar). Other minor denominations included 4 reales, 2 reales, 1 real, and 1/2 real. The 8 reales coin is the predecessor to the American dollar. Before the United States Mint was in production, columnarios circulated, along with other coinage, in the US colonies, as legal tender until the middle of the 19th century.

Prior to the columnario, Spanish coins were hammer struck. These rather crude looking coins were called cobs. Clipping was a problem with cobs as it was easy to shave small amounts of silver from their edges, and although this action was punishable by death, it was still a widespread occurrence. The columnario, unlike the odd-shaped cob, is a round coin with milled edges which makes clipping detectable and less likely to occur.

The design of the columnario consists on the reverse of two worlds — representing the new world and old world — with a royal crown above. Below are the waves of the sea that separate the worlds and on the left and right are columns (hence the name “columnarios”) representing the Pillars of Hercules adorned with crowns and wrapped with a banner spelling “PLUS ULTRA”, meaning “more beyond”. The reverse also has the letters “VTRAQUE VNUM”, referring to the Old and New Worlds, “Both are One”, and the date at the bottom, with mint marks on both sides.

The obverse features the crown’s name followed by “D G HISPAN ET IND REX”, meaning, “By the Grace of God, King of Spain and the Indies.” The assayer’s mark is on the left and the denomination on the right of a large Spanish shield which is adorned with a royal crown atop. Various florets, rosettes, stops, and other features are used to separate features.

The edge has a repeating laurel leaf design which is very difficult to counterfeit and is often used for authentication purposes.

Spanish escudo

From Wikipedia, the free encyclopedia

Coins of Spanish Escudos (different denominations)

The escudo was either of two distinct Spanish currency denominations.

Gold escudo

Eight Spanish Escudos (1687)

The first escudo was a gold coin introduced in 1535/1537, with coins denominated in escudos issued until 1833. It was initially worth 16 reales. When different reales were introduced, the escudo became worth 16 reales de plata in 1642, then 16 reales de plata fuerte or 40 reales de vellón from 1737.

Coins

Gold coins were issued in denominations of ¹⁄₂, 1, 2, 4 and 8 escudos, with the 2 escudos coin known as the doubloon. Between 1809 and 1849, coins denominated as 80, 160 and 320 reales (de vellon) were issued, equivalent, in gold content and value, to the 2, 4 and 8 escudo coins. Most were minted in Madrid, marked with a superscripted M or in Seville bearing an S below and left of the Royal Coat of Arms. The mintmaster’s initials appeared on the opposite side.

Silver escudo

The second escudo was the currency of Spain between 1864 and 1869. It was subdivided into 100 céntimos de escudo. The escudo replaced the real at a rate of 10 reales = 1 escudo. It was itself replaced by the peseta, at a rate of 2+¹⁄₂ pesetas = 1 escudo, when Spain joined the Latin Monetary Union. The later silver escudo was worth one quarter of the earlier, gold escudo.

Coins

Copper coins were issued in denominations of +¹⁄₂, 1, 2+¹⁄₂ and 5 céntimos; silver coins of 10, 20 and 40 céntimos, 1 and 2 escudos; and gold coins of 2, 4 and 10 escudos. The 1 escudo was introduced in 1864, followed by the other silver and gold coins in 1865 and the copper coins in 1866. All the coins were minted until 1868, with 10 escudos also minted in 1873 during the First Republic.

Historical Background of the Star of David Spanish Coin

The coin commonly referred to as the Star of David Spanish coin is most often a Felus from Spanish Morocco, minted during the 1700s to early 1800s, though some examples date back to the 1600s pirate era. Here’s how it fits into the broader historical tapestry:

🏴‍☠️ Pirate-Era Origins

• These coins circulated during a time when Spanish colonial influence extended into North Africa.
• Pirates operating in the Mediterranean and Atlantic often looted ships carrying these coins, which is why they’re sometimes called “pirate cobs”—a nod to the irregular, hand-cut Spanish colonial coins of the era.
• Some were reportedly found near shipwreck sites, adding to their mystique and collector appeal.

✡️ Symbolism of the Star of David

• The Star of David on these coins is not necessarily religious in origin. While today it’s a symbol of Judaism, its use in coinage predates its modern religious association.
• In earlier centuries, the six-pointed star was used in Islamic and Christian art, as well as in medieval heraldry, often symbolizing protection or cosmic harmony.
• Its presence on Moroccan coins may reflect regional artistic traditions or cross-cultural symbolism, rather than a direct religious statement.

🪙 Coin Characteristics

• Typically made of copper, and slightly larger than a dime.
• The design is often worn due to age, but the Star of David remains a distinctive feature.
• These coins were used in local trade and may have been minted under regional governors or colonial administrators.

📈 Legacy and Collectibility

• Today, these coins are valued more for their historical intrigue than their monetary worth.
• They’re popular among collectors of pirate memorabilia, colonial artifacts, and symbolic coinage.
• Their market value ranges from US $19 to $28, depending on condition.

It’s a coin that carries echoes of empire, trade, and maritime adventure. If you’re holding one, you’ve got a tiny relic of a world where borders were fluid and symbolism traveled across cultures. Want help identifying a specific variant or tracing its mint origin?

Standard Catalog of World Coins

From Wikipedia, the free encyclopedia

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The Standard Catalog of World Coins is a series of numismatic catalogs, commonly known as the Krause catalogs. They are published by Krause Publications, a division of Active Interest Media.

Overview

The by-century volumes list by date virtually every coin type, most of which are photographed, with mintage and other information, plus market valuations in up to 5 grades. Listings are by denomination rather than series, as in earlier World coin catalogs. The proprietary Krause-Mishler (or KM) numbers are widely used; for just a few countries earlier systems such as Y (Yeoman) and C (Craig) numbers are given instead.

The century format is considered inconvenient and expensive by some who collect geographically, because date listings are clipped at the century mark. Originally covering 1835 or so to date, the main catalog (first edition 1972) evolved into an annual 20th century-only work, plus separate 17th, 18th, and 19th century volumes which are revised on a three-year cycle. Beginning with the 34th (2007) ed, listings covering 2001 to date are included in a separate 21st Century catalog.

Data from the by-century volumes are collated together in special editions for Crowns, Gold, German, and North American coins. Fantasies and medallion issues, which do not appear in the other catalogs, are covered in a publication called Unusual World Coins. There is also a publication called Collecting World Coins that includes only 20th- and 21st-century coins that circulated regularly.

The 12th (1986) and 19th (1992) are two-volume hardcovers covering 1700-date; 13th (1987) is the last edition to include cross-references to Yeoman and Craig; 23rd (1996) is the last main edition covering 1800-date; 33rd (2006) is the last 20th century edition including 21st century listings.

List priced at $73 to $85 ($25 for the shorter 21st century catalog)^[1] they are often discounted, and can be found in many public libraries. Older editions are steeply discounted even though revisions between editions in many areas are minimal. Following the appearance of unlicensed DVD versions, DVDs were included with the 1601-1700 4th edition, the 1901-2000 36th edition, and possibly others, but are now sold as a separate product.

In 1975, the Catalog comprised a single volume with about 1,000 pages. By 2007, it had expanded to a five-volume set with more than 6,000 pages in total.^[2]

Early editions attribute authorship to the publisher Chester L. Krause, and Clifford Mishler, although starting with the second edition Colin R. Bruce II was the actual chief compiler and is given an editor or senior editor title on later editions. According to Coin World, Bruce was the lead cataloger and editor of every annual edition from 1976 through 2007, retiring in 2008.^[2] George S. Cuhaj is the current editor, with Thomas Michael credited as market analyst, although Krause collate contributions from many collecting experts and dealers.

Edition

Most recent editions, as of November 2019.

Standard Catalog of World Coins

1. Standard Catalog of World Coins: 1601–1700, 7th Edition, publication date 2018, Krause Publications, ISBN 978-1-4402-4857-3
2. Standard Catalog of World Coins: 1701–1800, 7th Edition, publication date 2016, Krause Publications, ISBN 978-1-4402-4706-4
3. Standard Catalog of World Coins: 1801–1900, 9th Edition, publication date 2019, Krause Publications, ISBN 978-1-4402-4895-5
4. 2020 Standard Catalog of World Coins: 1901–2000, 47th Edition, publication date 2019, Krause Publications, ISBN 978-1-4402-4896-2
5. 2020 Standard Catalog of World Coins: 2001–Date, 14th Edition, publication date 2019, Krause Publications, ISBN 978-1-4402-4897-9

All with digital copy available separately.

Other related catalogs

• Collecting World Coins: Standard Catalog of Circulating Coinage: 1901–present, 15th Edition, publication date 2015, Krause Publications, ISBN 978-1-4402-4460-5

Digital copy available separately.

• Standard Catalog of German Coins: 1501–present, 3rd Edition, publication date 2011, Krause Publications, ISBN 978-1-4402-1402-8

Digital copy available separately.

• Standard Catalog of World Crowns and Talers from 1601 to date, 1st Edition, publication date 1994, Krause Publications, ISBN 978-0-8734-1211-7
• Standard Catalog of World Gold Coins: With Platinum and Palladium Issues: 1601–present, 6th Edition, publication date 2009, Krause Publications, ISBN 978-1-4402-0424-1

Digital copy available separately.

• Unusual World Coins, 6th Edition, publication date 2011, Krause Publications, ISBN 978-1-4402-1702-9

Digital copy available separately.

See also

• Money portal

• Coin catalog
• Standard Catalog of World Paper Money
• A Guide Book of United States Coins

References

1.  Krause Publications. “World Coins Bookstore”. Archived from the original on 21 November 2011. Retrieved 16 September 2011.
2.  Starck, Jeff (October 23, 2017). “Numismatist, author Colin R. Bruce II dies; long-time Krause Publications editor helmed ‘Standard Catalog’ series”. Coin World. Vol. 58, no. 3002. p. 28. Archived from the original on August 28, 2019. Retrieved August 28, 2019.

External links

• NGC’s online price guide powered by Krause Publications NumisMaster
• Krause Publications
• Numismaster.com

British colony of New South Wales (Australia)

When the colony of New South Wales was founded in 1788, it ran into the problem of a lack of coinage. Foreign coins – including British, Dutch, Indian and Portuguese – were common in its early years, but much of this coin left the colony by way of trade with visiting merchant ships.^[2] Barter was a necessity amongst the colonists, with the most popular, rum, becoming an unofficial currency. One of the first attempts to restrict the practice was by Governor King, who on 19 November 1800 set an arbitrary price for foreign coinage, but there was never enough of it. To try and resolve the shortage, he requested the supply of sixpences to be used as shillings, but failed to get a hearing.^[3] The practice of using rum as a currency was prohibited by Governor Bligh in 1806,^[4] eventually culminating in the overthrow of the government in the Rum Rebellion.

To overcome this shortage of coins, Governor Lachlan Macquarie took the initiative of using £10,000 in Spanish dollars sent by the British government to produce suitable coins in a similar manner to that described above. These coins to the value of 40,000 Spanish dollars came on 26 November 1812 on HMS Samarang from Madras,^[5] via the East India Company.^[6]

With the shipment of currency were strict instructions to prevent the newly arrived coinage from leaving the country, so after consultation with the Judge Advocate and other officials,^[7] Governor Macquarie had a convicted forger named William Henshall cut the centres out of the coins and counter stamp them,^[2] thus making them useless outside the colony. The central plug (known as a dump) was valued at 15 pence (i.e., 1 shilling, 3 pence, or 1s 3d), and was restruck with a new design (a crown on the obverse, the denomination on the reverse), whilst the holey dollar received an overstamp around the hole (“New South Wales 1813” on the obverse, “Five Shillings” on the reverse). This distinguished the coins as belonging to the colony of New South Wales, creating the first official currency produced specifically for circulation in NSW.^[6] The combined nominal value in NSW of the holey dollar and the dump was 6s 3d (6 shillings, 3 pence), or 25 per cent more than the value of a Spanish dollar; this made it unprofitable to export the coins from the colony.

The project to convert the 40,000 Spanish coins took over a year to complete. Of the 40,000 Spanish dollars imported, 39,910 holey dollars and 39,910 dumps were made, with the balance assumed to have been spoiled during the conversion process.^[8] On 1 July 1813 Governor Macquarie issued a proclamation “that the said Silver Money shall be a legal Tender” and that set their value.^[9] The converted coins went into circulation in 1814.^[2]

From 1822 the government began to recall the coins and replace them with sterling coinage.^[6] By the time the holey dollar was finally demonetised in 1829, most of the 40,000 coins in circulation had been exchanged for legal tender and melted down into bullion.^[2] Experts estimate that only 350 holey dollars and 1500 dumps remain.^[10] The rarity of the Australian holey dollar ensures that even those in relatively poor condition are valuable. There are many stories of holey dollars being found in unusual circumstances.^[11][12][13]

One of the most notable holey dollars is the Hannibal Head, a one of a kind coin that features the portrait of King Joseph I of Spain. It was found in 1881 alongside other holey dollars in what is believed to be a Bushrangers hoard in Tasmania and has since been held in private collections. The coin was sold in 2018 at the Eminent colonial auctions through Coinworks, valued at an estimated $450,000 and sold to a private collector for $500,000.^[14]

NSW Holey Dollar and dump in State Library of New South Wales collection

• Dollar obverse
• Dollar reverse
• Dump obverse
• Dump reverse

The holey dollar is the logo for the Macquarie Group, an Australian investment bank.^[15]

Similar coins

Although not known as “holey dollars”, several British colonies in the Caribbean used the same method for producing coins from Spanish dollars. They include British Guiana, Dominica, Grenada, Guadeloupe, Saint Vincent, Tobago and Trinidad. The holed coins and plugs circulated alongside various other coins made by cutting Spanish and Spanish colonial coins into sections. These coinages were denominated in either shillings and pence or bits, worth nine pence. (One dollar was made up of eight bits. At 9d the bit, this meant that the eight bits were worth 6s in their markets, or 20 per cent more than a Spanish dollar.)

Principality of Hutt River

The Principality of Hutt River issued a commemorative $1 coin in 1977 to commemorate Queen Elizabeth II‘s Silver Jubilee. In 1978, another issue of the Hutt River Province Principality’s $1 coins was issued. This has no commemorative inscription. These coins are also known to numismatists as holey dollars.