Numismatic Significance

Change of style of coins

Colonization of the new world was first lead by the Spanish Empire, controlled by the Habsburg Dynasty.

Most traveled there in search of their own fortunes. Explorers brought only enough old world capital to finance their individual expeditions.  Merchants brought with them primarily trade goods.   Silver and gold was the major export product.  It was needed to fuel the first deficit spending autocracy of the renascence. 

Minting of coinage in the three rapidly growing “audencias”, of El Peru, Mexico and Colombia was authorized first in the early 16th century; and then bid out to private individuals, to provide the currency needed for local day-to-day transactions.   These coins were never meant to stay in circulation—once they made their way back to Europe.   Manufacture of the coins was by slave labor, loosely controlled at best—often by delegated mint operators retained by absentee owners back home in Europe. 

Silver or gold was smelted into tubular bars, then cut into roughly weighed blanks in 1/8th fractions up to a 28.5 gram ounce.   These blanks were placed upon a planchet.  Next a die, carved by a native artisan who usually could neither read or write was placed on top, held in place by the slave laborers, who struck it with a hammer.  Often the hammer would bounce, causing a double strike.  The golden doubloons or silver Pieces of Eight were then clipped to the proper weight for their denomination. 

   It did not take long for enterprising and unscrupulous mint operators to realize they could benefit by either miss-alloying or miss weighing the coins.  By the end of the decade of the 1640’s this became so rampant that a scandal erupted, causing an official devaluation of the currency minted in Potosi.  Back then platinum was considered a junk metal and at first, discarded during the refining process.  Its high melting point created a problem in wood fired smelting kilns.  Many of the coins were “debased”, by platinum being used instead of the officially designated copper alloy that was authorized by the crown.  By 1650’s , few would even take a coin minted in Potosi. To alleviate this crisis a royal decree called, “The Cedula of 1650”, was passed.  It called for all the coins from before 1650 from Potosi to be recalled.  They were then to be melted, refined and properly alloyed; then to be re struck with a new design to identify them as sound currency.   These were to become known as the “Pillar and Wave”, variety coinage and have the possibility of having the date in up to three locations.  Our vessel was only carrying this variety of coinage.