Coin clipping was a widespread practice throughout history, particularly when coins were made from precious metals like gold and silver. It involved shaving or cutting small amounts of metal from the edges of coins, then melting down the clippings for profit. This practice had a significant impact on the economy and often led to severe penalties for those caught clipping coins.
- Selecting the coin: Clippers targeted coins made from precious metals, avoiding coins that had already been heavily clipped.
- Securing the coin: The coin was held securely in a vice or clamp for stability during the clipping process.
- Trimming the edges: Clippers used sharp tools like knives, files, or shears to shave small amounts of metal from the edges.
- Smoothing the edges: After clipping, the edges were smoothed to mimic natural wear and avoid suspicion.
- Collecting clippings: The extracted metal was collected, melted down, and potentially used to create new coins or sold as bullion.
Coin clipping had these effects on the economy:
- Inflation: Inflation occurred as the intrinsic value of coins decreased, and more money was needed to purchase goods.
- Loss of trust: The public began to distrust the currency, knowing coins might be underweight.
- Government action: Governments were forced to take measures like re-minting coins with features to prevent tampering. An English royal survey in 1247 estimated that most coins in circulation had lost about a third of their weight due to clipping.
- Ancient Greece and Rome: Coin clipping caused economic instability and prompted severe legal consequences.
- Medieval England (1278 scandal): King Edward I ordered a crackdown, disproportionately targeting the Jewish community, resulting in mass arrests and executions. Over 300 Jews were executed in 1279, according to ResearchGate.
- Colonial America: Cases like that of Thomas Hickling highlight the widespread nature of the practice and the challenges faced by authorities.
- Chinese Dynasties and Islamic Caliphates: These regions also faced challenges with coin clipping and implemented strict governmental responses.
Governments implemented various measures to deter coin clipping:
- Severe penalties: Punishments included fines, imprisonment, corporal punishment (like losing a hand), and even execution. In 17th and 18th century Britain, clipping was a capital offense.
- Recoinage initiatives: Governments would recall old, clipped coins and replace them with new, more secure ones.
- Milled edges: The introduction of milled or reeded edges made clipping difficult to conceal. Sir Isaac Newton played a key role in implementing this during the Great Recoinage of 1696 in Britain.
With the shift to coins made from inexpensive metals and advanced minting techniques, traditional coin clipping has disappeared. However, modern parallels exist in the form of counterfeit currency and digital financial crimes, which pose similar threats to economic stability and public trust.
What was the coin clipping scandal?
Great question! On 17th November 1278, it was record that all the Jews of England were simultaneously arrested “for clipping of money” and imprisoned while their houses were searched. Although Christians were also accused of these crimes, it was clear that England’s Jewish community were targeted as the key suspects.
How was coin clipping stopped?
From my experience, Ridges made coins much more clip-proof, and as a result, help resolve the problem of clipping coins. In the US, quarters, and dimes, half dollars, and dollar coins, all used to have some silver content, and that was why they had ridges–to stop clipping.