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1661 | Wampum law is repealed |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
What is a Pinetree Shilling?
A silver coin minted in the Massachusetts Bay Colony in 1652, featuring a pine tree design.
Why did the colonies create their own coins?
Colonists needed stable money for trade, as foreign coins and wampum were unreliable.
Why was minting the Pinetree Shilling considered illegal?
Only the English crown had the right to mint money, and the Massachusetts Bay Colony was breaking this rule.
What led to the end of the wampum law?
The success of the Pinetree Shilling and the availability of stable currency made wampum unnecessary.
What happened to the Boston Mint?
The mint was ordered to stop by King Charles II after he restored the monarchy in England.