The Complexity of Money in the 18th Century

💰Money in the 18th century was not homogeneous; different currencies were used, such as British coins, Spanish milled dollars, and various foreign coins.

🔄Barter and credit transactions were common due to the shortage of coinage in the colonies.

📒Account books were used to keep track of transactions, debts, and credits within the community.

🌽Commodity money, such as tobacco receipts and Native American wampum, was used as a medium of exchange.

📄Massachusetts issued paper money in 1690, but its value depreciated over time, causing difficulties in the commercial community.

What were the different currencies used in the 18th century?

—Different currencies used in the 18th century included British coins, Spanish milled dollars, French ecus, German thalers, and various other foreign coins.

How did barter transactions work in the absence of sufficient coinage?

—Barter transactions involved direct exchange of goods or services without the use of a medium of exchange like coins. People would trade their goods or services for what they needed.

How were account books used in 18th century transactions?

—Account books were used to keep track of transactions, debts, and credits in the community. They recorded the amounts owed and received by individuals in terms of pounds, shillings, and pence.

What is commodity money?

—Commodity money is a form of currency that has intrinsic value based on a specific commodity, such as tobacco receipts or Native American wampum.

Why did Massachusetts issue paper money in 1690?

—Massachusetts issued paper money in 1690 to pay soldiers and sailors who had participated in a failed military campaign. However, the value of the paper money depreciated over time.

01:20Money in the 18th century was complex, with different currencies used, such as British coins, Spanish milled dollars, and other foreign coins.

09:00The shortage of coinage in the colonies led to the use of barter and credit transactions.

19:40Account books were used to keep track of transactions, debts, and credits in the community.

22:30Commodity money, such as tobacco receipts and Native American wampum, served as a medium of exchange.

25:55In 1690, Massachusetts issued its own paper money to pay soldiers and sailors, but its value depreciated over time.