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Help: 1857 Coinage Reform Act And Mexico Decimal Auth.

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Pillar of the Community

United States
685 Posts
 Posted 11/01/2014  11:11 pm Show Profile   Bookmark this topic Add Westwood Arms to your friends list Get a Link to this Message Number of Subscribers
I posted this earlier as an OT reply to an earlier topic.

In February 1857 the US made foreign coins/currency non legal standard, it was a while before this became regular practice.

In March, 1857 Mexico authorized production of decimal coinage. They did not get around to it until 1863, the 1C at SLP.

This was within an month, in 1857! I do not believe this was a coincidence, and have asked all the experts I know. Any thoughts or idea's for research?

Thank you
New Member
United States
33 Posts
 Posted 11/02/2014  02:32 am  Show Profile   Bookmark this reply Add pruebas to your friends list Get a Link to this Reply
Mexico had been considering decimalization for a while. There is a pattern Centavo dated 1841 and a pattern Peso dated 1842, both struck in Mexico City. (There is also a pattern Centavo dated 1862, but that was after the decree.)
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PatAR's Avatar
United States
262 Posts
 Posted 11/03/2014  3:09 pm  Show Profile   Bookmark this reply Add PatAR to your friends list Get a Link to this Reply
Good question! These historical quandaries are a large part of what makes numismatics so interesting to me.

The climate of industrialization and expanded commerce between nations had made apparent the need for more uniform systems of measurement and currency for quite awhile. Beginning with France, USA, and continuing with Spain and her former colonies in the Americas (most of which had become their own nations by the 1820's) the urgent need for decimalization of both measurement systems and coinage was recognized by many countries in the 19th century. By the 1840's most countries had either implemented decimalization or were considering it in legislation or committee. Such changes in governmental regulations always take time. Some countries likely took longer than others. I'm no expert on the coinage history or legislation of Mexico. However, I would consider it more likely the timing you mention was coincidence rather than precise coordination.

One way to find out more would be to review legislative documents from that period. If you were so inclined, you could see if you can find an online portal for Mexico's archives and search finance dept documents leading up to that time.

Hope this helps!
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swamperbob's Avatar
United States
5362 Posts
 Posted 11/04/2014  12:00 am  Show Profile   Bookmark this reply Add swamperbob to your friends list Get a Link to this Reply
I think the key area of study is the new economic reality that developed (mid 19th century) in a world moving towards a globalized economy based on trade a more uniform monetary policy was needed. China was the gorilla in the closet when it comes to the monetary balance of trade in silver on a worldwide basis. The Chinese consumed anywhere from 25 to 40% of all silver produced worldwide.

The entrance of China as a big player in the silver market triggered several simultaneous actions by the west which were aimed at controlling world monetary policy AGAINST the interests of the Chinese.

1) China based their economic policy on silver - not gold. They so dominated that market that most other countries began moving AWAY from silver and toward gold.

2) The UK introduced opium into China as a commodity and then went to war with China TWICE (between 1840-1856) to force the Chinese to accept the sale of opium in China. This helped eliminate the UK deficit of payments of $56 million per year.

3) The burgeoning US trade in tea, silk and porcelain resulted quickly in a US trade deficit of $30 million per year with the Chinese. Only the Civil War had the effect of slowing that impact in the US. By the 1870's the US started taking steps to limit the amount of silver being shipped to China.

4) Germany long a major user of silver switched to a gold standard and dumped millions of ounces of silver on the open market in the 1870s.

5) The US opened mines in Nevada and the US west using new mining and refining techniques to increase US production of silver to unprecedented levels.

I think that a detailed study that combines the economy and monetary policies of the period from 1840 - 1890 will show a worldwide effort to modernize all major players in the silver/gold production and consumption business. That would include decimal standards for transactions and standardized metallic policy.

Sidelining or marginalizing China as a result seems to be a component inherent to all of these efforts.

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RealPeso's Avatar
United States
426 Posts
 Posted 11/19/2014  7:05 pm  Show Profile   Bookmark this reply Add RealPeso to your friends list Get a Link to this Reply
Very interesting.
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wonghinghi's Avatar
Hong Kong
1270 Posts
 Posted 11/20/2014  08:14 am  Show Profile   Bookmark this reply Add wonghinghi to your friends list Get a Link to this Reply
"This was within an month, in 1857! I do not believe this was a coincidence,"

I also believe it is not a coincidence. US is a big economy entity. When she starts to have a new coinage policy, it is very natural to Mexico to follow suit - that is, to start a new decimal system and also a new denomination, Peso, in 1866.
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