Pre-Decimal Coinage
English kings based their coinage system on that of Charlemagne. A few translations from Latin into English gave three basic coin values: the pound, the shilling and the penny. A silver pound was divided into 240 pence. For hundreds of years, the silver penny was the only coin the English minted. The earliest coins contained 1 pennyweight of silver. Twenty pennyweights make up a troy ounce, and 12 troy ounces make up a troy pound.
Units of Account
The other names were not actual coins, but rather units of account. A pound was divided into 20 shillings, and each shilling into 12 pence. Henry VIII minted the first shilling coin in the 16th century. Other early units of value included the mark, equal to 2/3 of a pound, or 160 pence, an amount that could also be expressed as 13 shillings, 4 pence. A medieval half-mark English coin was first called the noble, and later, the angel.
English kings based their coinage system on that of Charlemagne. A few translations from Latin into English gave three basic coin values: the pound, the shilling and the penny. A silver pound was divided into 240 pence. For hundreds of years, the silver penny was the only coin the English minted. The earliest coins contained 1 pennyweight of silver. Twenty pennyweights make up a troy ounce, and 12 troy ounces make up a troy pound.
Units of Account
The other names were not actual coins, but rather units of account. A pound was divided into 20 shillings, and each shilling into 12 pence. Henry VIII minted the first shilling coin in the 16th century. Other early units of value included the mark, equal to 2/3 of a pound, or 160 pence, an amount that could also be expressed as 13 shillings, 4 pence. A medieval half-mark English coin was first called the noble, and later, the angel.
Sterling Silver
Pure silver is too soft to make coins that withstand heavy use. From 1158, England adopted silver coins that were 92.5 percent silver, with the remainder consisting of base metal. The sterling standard remained in effect until 1920.
Gold Coins
Throughout the 17th and 18th centuries, the standard gold pound coin was the guinea. First issued by Charles II in 1662, the guinea varied in size and worth according to the changing ratio of the value of gold to silver. Eventually the value became 21 shillings, so it was actually worth more than a pound. Britain solved this problem by adopting a gold standard in 1816. The following year, it issued a new coin, the sovereign. This coin remained the standard pound coin until decimalization.
Debasement and Decimalization
The economic disasters of World War I led to a reduction in the silver content of English coins in 1920. Britain dropped the sterling standard, and silver coins then contained only 50 percent silver. In 1947, the remaining silver coins joined the penny and farthing, or 1/4 penny, in becoming alloys of copper and other base metals. Gold coins also disappeared after World War I, with paper notes replacing most denominations. In 1971, Britain replaced the entire system with a paper pound note that was worth 100 new pence. The pound became a base-metal coin in 1983.
Pure silver is too soft to make coins that withstand heavy use. From 1158, England adopted silver coins that were 92.5 percent silver, with the remainder consisting of base metal. The sterling standard remained in effect until 1920.
Gold Coins
Throughout the 17th and 18th centuries, the standard gold pound coin was the guinea. First issued by Charles II in 1662, the guinea varied in size and worth according to the changing ratio of the value of gold to silver. Eventually the value became 21 shillings, so it was actually worth more than a pound. Britain solved this problem by adopting a gold standard in 1816. The following year, it issued a new coin, the sovereign. This coin remained the standard pound coin until decimalization.
Debasement and Decimalization
The economic disasters of World War I led to a reduction in the silver content of English coins in 1920. Britain dropped the sterling standard, and silver coins then contained only 50 percent silver. In 1947, the remaining silver coins joined the penny and farthing, or 1/4 penny, in becoming alloys of copper and other base metals. Gold coins also disappeared after World War I, with paper notes replacing most denominations. In 1971, Britain replaced the entire system with a paper pound note that was worth 100 new pence. The pound became a base-metal coin in 1983.
