Some of the many fascinating objects held in The Royal Mint Museum is their collection of merchant books. These rare and early examples of merchant books are some of the oldest printed material in their collection, and highlight the importance of a reliable coinage that can be traded across different countries.
Here we explore more about how merchants ensured quality control following The Great Debasement to prove that their coins, and the coins they were trading with, were accurate – and the importance of this in England’s credibility in global trade.
The Great Debasement
During the reign of King Henry VIII, England faced significant economic changes, notably marked by the Great Debasement. The Great Debasement refers to a deliberate policy undertaken by Henry VIII to devalue the currency as a means to bolster the royal treasury and address financial woes.
In order to increase revenue for the Crown, from 1544, Henry VIII began reducing the amount of precious metal in gold coins. This act aimed to create more coins from the same quantity of silver, effectively increasing the money supply. However, the consequence was a decline in the value of currency, leading to inflation and economic instability.
The process of debasement continued with subsequent reductions in the silver content of coins. In some cases, the precious metal content was replaced almost entirely with cheaper base metals such as copper. This policy had a profound impact on the economy, resulting in rising prices, economic uncertainty, disruption of trade, and a loss of public trust in the currency.
Watch NowWhile the Great Debasement temporarily aided the Crown’s financial situation, it ultimately contributed to economic turmoil and long-term consequences for England’s monetary system, requiring subsequent monarchs to address and stabilise the currency.
Impact on trade
The accuracy of a coin’s value was not just important internally, but also of upmost importance for merchants trading oversees – both for their personal credibility and indeed the credibility of the nation.
The devalued currency caused by the Great Debasement led to a decline in the purchasing power of English coins abroad. This made English goods more expensive for foreign buyers, diminishing the competitiveness of English exports in international markets. As a result, England faced challenges in maintaining its previous levels of trade and struggled to sustain favourable trade balances with other countries.
Furthermore, the fluctuating value of the currency caused uncertainty for foreign merchants and traders engaging in commerce with England. The diminished value of English coins made transactions and negotiations complicated, affecting trust and confidence in trade dealings.
Merchants’ Scales and Weights, probably made in the mid-17th century in Cologne
Image Credit: Brandeis University / Robert D. Farber University Archives and Special Collections
Recovery
The recovery of English trade after the Great Debasement was gradual and spanned several decades. Subsequently, to cover their backs, 17th century merchants carried their own scales and weights to do quality control checks themselves, proving and verifying that their coins, and the coins they were trading with, were accurate. They also used ‘merchant books’ which detailed all of the characteristics, dimensions and weights that coins should be, as well as featuring drawings of all their coins.
During the late 16th and early 17th centuries, under the reign of Elizabeth I, England began to witness a resurgence in trade. On ascending to power, Elizabeth I restored coins back to an accurate value, restoring faith in England’s coins. However, it’s hard to overstate just how much the Great Debasement had affected trade relations and the way in which foreign merchants, and foreign countries viewed England’s coinage.
Coins from the reign of Elizabeth I
Image Credit: The Royal Mint
However, eventually the Elizabethan Era saw significant advancements in trade and commerce. England’s maritime exploration, including voyages led by explorers like Sir Francis Drake and Walter Raleigh, opened up new trade routes and expanded commercial opportunities. Additionally, the establishment of trading companies, such as the East India Company in 1600, further bolstered England’s trade endeavours, leading to economic growth and prosperity. This would not have happened should the Great Debasement have still been in effect.
