Coin clipping was a historical practice involving the act of shaving small amounts of precious metal, typically gold or silver, from the edges of coins.
Here’s how it worked and why it was a significant issue:
- Motivation: Individuals would perform coin clipping to illegally accumulate valuable metal shavings. These shavings could then be melted down and sold as bullion or even used to mint new coins, all for personal profit.
- Method: Clippers used tools like knives, files, or shears to carefully remove small amounts of metal from the coin’s edges, aiming to do so without making the coin noticeably smaller or lighter initially. They might smooth the edges to mimic natural wear and avoid suspicion.
- Economic Impact: Coin clipping significantly impacted the economy and public trust in currency. As clipped coins circulated, their reduced metal content effectively devalued the currency. This could lead to inflation, as people and merchants lost confidence in the true value of the coins, causing prices to rise. The proliferation of clipped coins also undermined the monetary system, making it difficult to ascertain the true value of individual coins.
- Government Response: Governments across different periods (ancient Greece and Rome, medieval Europe, Colonial America, Chinese dynasties, and Islamic caliphates) responded to coin clipping with severe penalties, including fines, imprisonment, mutilation, and even execution.
- Modern Context: The practice of coin clipping largely died out as minting technology advanced. Coins with milled (or reeded) edges were introduced, making it much more difficult to clip coins without the tampering being evident. Furthermore, modern coins are typically made from base metals like copper and nickel, [making clipping unprofitable according to atkinsonsbullion.com] . However, the concept of currency debasement, in various forms, continues to be a relevant topic in discussions about economic stability and financial regulation today.
What does it mean when a coin is clipped?
Coin clipping is the practice of physically shaving down or clipping metal coins as a form of taxation. Coin clipping was practiced by many ancient empires, and it is an early example of currency debasement. Coin clipping degrades the fungibility of a currency.
Who practiced coin clipping?
Coin clipping was not unique to England; it was a widespread issue across medieval Europe. Both Christian and Jewish populations engaged in this practice, driven by economic necessity and the ease with which coins could be clipped.
How did criminals make money from clipping coins?
Thanks for asking. When done by an individual, precious metal was physically removed from the coin, which could then be passed on at the original face value, leaving the debaser with a profit.
What was the coin clipping scandal?
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.