Currency of Spanish America: From Conquest to Reform

The currency of Spanish America has a rich and complex history, spanning centuries from the conquest to the present day. The first currency introduced in Spanish America was the Spanish dollar, which was widely used in the 16th century.

The Spanish dollar was equivalent to 8 reales, and it played a significant role in the economy of Spanish America. It was used in various forms, including gold and silver coins.

In the 18th century, the Spanish government introduced the real, which replaced the Spanish dollar as the standard unit of currency. The real was divided into 8 reales, just like its predecessor.

The introduction of the real brought about significant changes in the economy of Spanish America, including the establishment of a new monetary system and the creation of a national currency.

Spanish America was the hub of early commerce in the Americas, with coins from the old world circulating widely. Coins like the "blancas" of the Catholic Monarchs were likely used for trade rather than kept as keepsakes.

The first coins to arrive in America were carried by explorers and settlers, who brought them from various ports in the old world. These coins were then dispersed across the continent, with some being found hundreds of miles away from where their owners first set foot.

The first new world mint was established in 1536 at New Spain, Mexico City, marking a significant step in the development of currency in Spanish America.

In Spanish America, there are 20 countries where Spanish is the official language.

The largest Spanish-speaking country in the world is Mexico, with a population of over 127 million people.

Spanish is the official language in many countries, including Argentina, Chile, Colombia, Peru, and Uruguay.

The Spanish language is spoken by over 460 million people worldwide, making it one of the most widely spoken languages globally.

In some countries, such as Spain and Ecuador, there are two official languages: Spanish and another native language.

America was a melting pot of old world coin types, with explorers and settlers bringing their local change with them from various ports.

The first coins to arrive in America were likely "blancas" of the Catholic Monarchs, which were abundant and played a significant role in early commerce.

These coins were able to travel far and wide, with some being found hundreds of miles away from where their owners first stepped ashore.

The first new world mint was authorized in 1536 at New Spain, Mexico City, marking a significant milestone in the development of coinage in America.

Old world coin types continued to migrate to the new world, with many different types being used in early America.

Tepuzque Gold was a makeshift currency produced in Mexico City, made from gold discs stamped with their weight and fineness, sometimes with royal countermarks.

These discs, also known as peso de oro, served as money and circulated as late as 1591.

No examples of Tepuzque Gold are known to exist.

The lack of a reliable currency was a major issue in New Spain, where Charles sent silver coins in 1523, but they were insufficient for local commerce.

In Spain, a significant amount of wellón was minted between 1599 and 1626, with over 15 billion maravedíes worth of it being produced.

The peso, also known as the peso fuerte or duro, was equivalent to 8 Reales.

The influx of silver into Spain began to decline in the 1630s, as more silver was retained in America for colonial needs.

In Spanish America, you'll often hear locals referring to money in various ways, and understanding these terms can be helpful when navigating everyday transactions.

Papel moneda and billetes are the common terms for paper money and paper bills, respectively.

If you need to pay cash, look for signs that say "sólo en efectivo" to ensure the establishment accepts physical money.

Cambio can refer to the change from a transaction, and it's essential to know that the exchange rate is either the tasa de cambio or tipo de cambio.

If you're trying to avoid counterfeit money, be aware that it's known as dinero falso or dinero falsificado.

Some slang terms for money, like plata (silver) and lana (wool), are more widespread in Spanish America, but be aware that their meanings can vary by region.

When paying a bill at a restaurant, you'll likely receive a cuenta, which is the bill given to the customer.

A cheque from a checking account is called a cheque, while a money order is a giro postal.

After 1757, China restricted European trade to Canton, and the British East India Company dominated this trade, paying for its purchases with Spanish Carolus dollars.

These dollars were accepted in China for more than their intrinsic value of 4s:2d sterling.

Chinese merchants 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.

They would often add a chop, or seal, to guarantee the coin's acceptability.

Spanish dollars became a widely accepted currency in China, and it's fascinating to think about the impact this had on trade and commerce in the region.

The Spanish Conquest and History of Spanish America was a pivotal moment in shaping the region's economy, including its currency. The conquest began in the early 16th century with the arrival of Spanish conquistadors, who brought with them new technologies and trade networks.

The Spanish Empire's vast territories in South America were largely acquired through the conquest of the Inca Empire in the 16th century. This led to the establishment of Spanish colonies, which would eventually become the foundation for the modern-day countries of Spanish America.

The legacy of the Spanish Conquest can still be seen in the architecture, language, and culture of Spanish America today.

The Spanish Conquest was a pivotal moment in history, marked by the arrival of Spanish conquistadors in the Americas in the early 16th century.

The conquistadors were led by Hernán Cortés, who arrived in Mexico in 1519 with a small army of around 500 men.

The Spanish conquest of the Aztec Empire was swift, with Cortés and his men capturing the capital city of Tenochtitlán in 1521.

The Aztecs were vastly outnumbered, with estimates suggesting they had around 300,000 warriors, but the Spanish had the advantage of superior firearms and armor.

The conquest of the Inca Empire was also swift, with the Spanish capturing the capital city of Cuzco in 1533.

The Spanish conquest of the Americas had a profound impact on the indigenous populations, leading to the deaths of millions of people due to disease, violence, and forced labor.

Philip II ascended the throne in 1556, marking a significant shift in Mexico City's minting practices.

Mexico City continued to mint type 1542 coins in the name of Charles and Johanna, but with a slight modification in Lima, where the inscription PHILIPVS II was used instead.

The American mines produced a vast quantity of silver, which was often shipped to Spain in the form of ingots or crude, temporary coins known as macuquinas or "cobs".

These crude coins were a way to account for the 20% royal fifth, or quinto real, of all treasure due to the king.

Trade with the Far East and bullion shipments to Spain required an enormous quantity of processed silver, leading to a decline in workmanship during the 17th century.

Coins were struck on crude pieces of silver, resulting in irregularly shaped and thick coins, but of standard weight and fineness.

During Philip III's reign from 1598 to 1621, the Spanish coinage saw significant changes. Philip III continued with the shield type of 1572, using denominations of 1, 2, 4, and 8 reales.

Mexico City coins were dated from 1607, but Potosí didn't start dating coins until 1617, after a scandal involving an illegal debasement of the cob coinage. This debasement had occurred from 1610 to 1617.

The dates were added to the obverse inscription, but due to the irregular shape of a cob, they are rarely legible. Philip III also unleashed the era of wellón in Spain in 1599, when his government authorized wellón of pure copper to remain solvent.

The flood of silver from Mexico and Peru peaked during this time, and the different kinds of coin—gold, silver, and wellón—had circulated at par since 1497. However, heavy issues of wellón above its intrinsic value destroyed its customary acceptance at par, driving silver out of circulation.

By 1620, accounts in Spain were being kept in reales of wellón, no longer in silver reales.

Philip V was the ruler of Spain from 1700-1746. He was a significant figure in Spanish history.

During his reign, various Imperial thalers, known as dollars in English, were familiar to North American colonists. These thalers were used alongside other coins like the piece of eight.

The piece of eight had the same intrinsic value as the thaler and was also called a dollar by the end of the 17th century. It was designated as the Spanish dollar in British North America by the mid 18th century.

Colloquial terms used in New Spain included pataca for the peso, tostón for the medio peso, and peseta for the 2 reales. These terms give us a glimpse into the local language and currency usage of the time.

Laws were passed in 1728 and 1730 to prevent sweating and clipping, which involved adopting modern minting techniques. This included making gold and silver coins perfectly round with milled edges.

The peso was reduced in weight and fineness, becoming 27·064 g with 24·809 g pure silver. The onza de oro or peso duro de oro was also standardized to 27·064 g with 24,808·936 mg pure gold.

Ferdinand VI was a Spanish monarch who ruled from 1746 to 1759. He made significant changes to the Spanish currency during his reign.

The 2-real coin, also known as a pistareen, was a common problem in the English colonies due to its debased provincial silver. It was easily distinguished from Spanish American silver due to its crowned heraldic Habsburg shield obverse and cross with the Castile and León shield reverse.

Ferdinand VI prohibited the circulation in America of all money coined in Spain, including national gold and silver coins, on May 4, 1754. This was due to the large quantity of overvalued provincial silver in circulation.

The peso duro, or dollar, was usually worth five pistareens. This made it difficult for colonial officials to redeem and remove the overvalued provincial silver from circulation.

In 1748, the inscription on the gold coins was changed to NOMINA MAGNA SEQUOR, a change that lasted until 1759.

Ferdinand VII was the ruler of the Spanish colonies from 1808 to 1821.

During this time, the colonies were cut off from Spain by the French occupation and the Peninsular War of 1808-1814. The colonies were ruled by independent juntas who refused to recognize the French-backed King of Spain and the Indies.

The Spanish Napoleonic coinage was used only in Spain, but the American mints initially minted coins with the portrait of Ferdinand VII.

In 1686, Spain underwent a major currency reform, devaluing silver by approximately 20% and adopting a dual coinage standard. This led to significant differences in the monetary systems of Spain and Spanish America.

The old silver standard, known as plata vieja, was maintained in the American colonies, while a new devalued silver, plata nueva, was adopted for circulation in Spain. The old piece of eight was valued at 10 reales of the new silver coin.

A new 8-real coin, called peso sencillo, was introduced, while the old piece of eight was known 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.

The monetary systems of Spain and Spanish America began to diverge significantly after this reform.

The monetary legacy of the Spanish colonies is a fascinating topic. The silver peso was the standard unit of currency, equivalent to 8 reales.

The Spanish colonies used a variety of silver coins, including the cuartillo, medio, real, peseta, medio peso, and peso. Each had a specific value, with the peso being the most valuable.

These coins were minted to standard, with some being 0.916 fine and others 0.902 fine, starting from 1772. The standard coin was the gold onza, but it was mostly used in international trade and for hoarding.

The gold onza had variations in fineness, with pre-1771 coins being 0.9165 fine, the 1771 type being 0.901 fine, and the 1786 type being only 0.875 fine. Copper coins also circulated during the struggles for independence.

Copper coins appeared in quantity during this time, but their value and circulation were not as widespread as the silver coins.

In China, the Spanish dollar, also known as the Carolus dollar, was widely accepted and used as currency after 1757.

The British East India Company dominated trade in China and paid for its purchases with Spanish dollars, which were valued at more than their intrinsic value of 4s:2d sterling.

Chinese merchants preferred 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 or seal to guarantee their acceptability.

The Spanish dollar became a staple currency in China, and its widespread use had a lasting impact on the country's economy.

In fact, the Chinese yuan was initially based on the Spanish dollar, and its global acceptance was the origin of the symbol "$" that was used in account books all over the world.

The piece of eight was a widely accepted currency in Spanish America, equivalent to 8 reales. It was a silver coin that weighed 27.468 grams and contained 25.560 grams of pure silver.

The piece of eight was initially known as a real de a ocho and was minted in Spain and the Americas. It was a valuable coin that was used in trade and commerce throughout the Spanish Empire.

By the 16th century, the piece of eight had become a standard unit of currency in Spanish America, with a value of 8 reales. It was widely accepted in trade and commerce, and its value was even used as a basis for foreign exchange.

The piece of eight was also used as a form of currency in the English colonies, where it was known as a pistareen. It was easily distinguished from the Spanish American silver because it had a crowned heraldic Habsburg shield obverse and cross with the Castile and León shield reverse.

The value of the piece of eight was raised on November 23, 1566, from 350 to 400 maravedís, and multiples were introduced. The double escudo, or pistole, was called a pistole in the rest of Europe and in England.

The piece of eight was also used as a form of currency in China, where it was accepted for more than its intrinsic value. Chinese merchants became accustomed to the dependable weight and fineness of Spanish milled silver and began to use it as currency.

By the mid-18th century, the piece of eight was commonly known in British North America as the Spanish dollar. It was a widely accepted currency that was used in trade and commerce throughout the Spanish Empire.

The piece of eight was eventually replaced by the peso, which was introduced as a new currency in the 19th century. However, its legacy as a widely accepted currency in Spanish America endured.

The monetary law of 1566 was a significant event in the history of Spanish America's currency. It raised the value of the escudo from 350 to 400 mrs and introduced multiples, including the double escudo, also known as a pistole.

The double escudo was initially known as a double doubloon and later gained fame as the Spanish doubloon. This coin was equivalent to 16 silver pesos.

The 1566 reform also introduced a silver 8-real coin, the real de a ocho or peso duro. This coin was 39-40 mm in size and weighed 27.468 g, containing 25.561 g of pure silver.

The real de a ocho or peso duro was commonly known in English as the piece of eight. It was struck in the Indies, at Lima from 1568 and at Mexico City from 1572.

The piece of eight was a widely used coin in trade, including with the British East India Company, which established a regular trade with China by 1720, paying for goods with Spanish silver.