The Pinetree Shilling: A Glimpse into Early American Currency

Early American coins like the Pinetree Shilling have a fascinating history. Before the United States had its own currency, colonists used various forms of money, including coins from other countries and even shell beads. One of the most famous early American coins was the Pinetree Shilling, minted by the Massachusetts Bay Colony.

Colonial Money Systems

The American Colonies’ Early Economy

Before the Revolutionary War, the American colonies didn’t have their own national currency. Each colony had its own ways of trading and paying for goods. Colonists used money from other countries like Spanish and Dutch coins, as well as wampum (shell beads). This variety of currencies caused confusion and made trade difficult.

Creating the Pinetree Shilling

In 1652, the Massachusetts Bay Colony started minting its own coins to solve the problem. These coins were made from silver and were called “shillings.” They featured a pine tree on one side, which is why they are known as the “Pinetree Shilling.” Although the coins were marked with the year 1652, they were minted for several years after.

Colonial Currency Types

Currency Type	Description	Used In
Wampum	Shell beads used as money	New England
Spanish Dollars	Silver coins often shaved or altered	Various Colonies
Dutch Leeuwendaalder	Coin introduced by Dutch settlers	New York

Timeline of the Pinetree Shilling

Year	Event
1652	Massachusetts Bay Colony starts minting coins
1661	Wampum law is repealed
1665	King Charles II demands minting to stop

The Role of the Dutch and English Currencies

Influence of Foreign Currencies

The word “dollar” comes from the Dutch word “leeuwendaalder,” a coin used in the Netherlands. The Dutch settlers in New York brought these coins with them, and their influence on American currency remained strong. English money and Spanish dollars were also used in trade, but these were often altered or reduced in value.

Wampum as Currency

Wampum, beads made from shells, was commonly used in trade, especially in New England. However, it didn’t have a fixed value, and Spanish dollars were often not trustworthy either. The uncertainty in value led the Massachusetts Bay Colony to mint their own coins, resulting in the Pinetree Shilling.

Challenges with the Pinetree Shilling

Legal and Political Issues

While the Pinetree Shilling helped stabilize the colony’s economy, it also created political problems. Only the English crown had the right to mint money, and the Massachusetts Bay Colony’s actions were considered illegal. However, England was going through a turbulent time with the overthrow of King Charles I and the rule of Oliver Cromwell. The colony continued minting the coins until King Charles II came to power and ordered them to stop.

End of the Wampum Law

The success of the Pinetree Shilling eventually led to the repeal of the wampum law in 1661. This law had required people to accept wampum as a form of payment. With stable silver coins in circulation, the colony no longer needed wampum as currency.

Conclusion

The story of early American money, like the Pinetree Shilling, shows how the colonies were evolving in their economic practices. By creating their own coins, the colonists sought to solve problems of currency instability and make trade easier. Despite the political challenges they faced, the Pinetree Shilling remains a fascinating part of American history, representing the ingenuity and determination of the early settlers.

FAQ’s