Coinage in Ancient Greece

In antiquity, like today, trade was crucial for the survival of cities, and the earliest system used was barter. Each group placed a value upon its goods and negotiated with the other party to reach an agreement. In its simplest form, one would merely exchange one good for another (e.g., a pig for a bushel of wheat).

This system worked well for simple transactions, but difficulties could arise if there was disagreement. For example, if one vendor said that his pig was larger than the rest, did he deserve more wheat? The system of barter also made it cumbersome for small exchanges.

It was soon recognized that some goods could be exchanged for an intermediary item, which could then be exchanged (in whole or in part) for another item. This intermediary was metal bars such as copper, bronze, or iron, which could be formed, shaped, and created in different sizes. The parties could then agree upon their worth. In this example, a pig weighing ten pounds would be valued at one bar, another at fifteen pounds at one-and-a-half bars, and so forth.

These bars were often rolled into rods (obelos in Greek) which were one-and-a- half meters. The Greek coin called the obol was derived from this term. The Greeks believed that an individual could hold six rods per handful. The Greek word drattomai, meaning “to grasp,” became the root for the word drachma, signifying a handful, and later a coin worth six obols.

Tetradrachm coin from Athens, 475–465. (The J. Paul Getty Museum, Villa Collection, Malibu, California)

The next step was to turn these bars and rods, typically made of a base metal, into a smaller and more portable form. Since smaller amounts of gold and silver equaled larger amounts of base metals, coins were often made from gold and silver for the sake of convenience. Determining the relative value of coins probably occurred by examining the natural content of metals in nature. In other words, 1 pound of gold existed where 12 pounds of silver and 1,000 pounds of copper were found naturally. By knowing the relative percentages in nature, one could then determine a rough formula for gold, silver, copper, or bronze.

The system of coinage then developed according to how people valued the metals. For example, if copper or bronze was rare and gold or silver common, the bars would be made out of gold and silver and the coins bronze or copper. Problems could arise with this system. Were the bars pure copper or bronze? Were the lengths standard? Who guaranteed these items? The creation of coinage attempted to address these questions.

Alyattes, king of Lydia in Asia Minor, was credited with inventing coinage in electrum in the early sixth century. Naturally occurring electrum in the same region contained 70 to 90 percent gold, but these electrum coins only had 50 percent gold. The debased electrum coins may have been created in order to reduce the amount of gold in payments or increase the profit margins. Legend had it that the Lydian king Croesus (595-546) invented the first gold coin, which was known for purity and standardized.

While Croesus probably did not invent gold coinage, his status in legend made him the inventor of gold and even all coinage Whoever it was who created coinage made the decision to guarantee the value and purity of the coins by putting a mark on the metal. This mark allowed individuals to know that the king authorized its production, guaranteed its value, and accepted it for trade, and by extension for taxation. Typically, the coins were not exactly equal to the weight of the metal since there was overhead in its production, but if one accepted the value of a coin, its popularity would grow.

A further problem existed if someone or some state decided to manipulate the weight and purity of a coin. If the coin had its metal content altered so that more base metals were used instead of gold or silver, then individuals might not accept it. Some states would attempt to reduce the size of coins so as to produce more coins than before with the same amount of metal. All of these cost-saving plans, however, came at a price. If people did not accept the change in question, they might do business elsewhere, or merchants might adjust their prices in response to the change, producing inflation. If the coinage system were to work, the state would have to ensure that people trusted it.

Aegina is credited with creating the earliest Greek coinage in the west, around 600, by using silver and putting the mark of a turtle on coins as its symbol, as it was a maritime city. The turtle was easily recognized, and coins from Aegina became popular. Athens and Corinth soon followed, with Athens using the symbol of the owl of Athena and Corinth using a figure of Pegasus. Coinage spread due to trade, but mainly through the military. Soldiers, especially mercenaries, needed to be paid in a form of currency that they could carry easily.

This then translated into a form of pay whereas all workers in the state received the same type of commodity (now coins). One of the problems with using coins in trade was that each city had its own system of weights and purity, and as such, barter continued for most trade transactions in the early period of coinage. But for transactions in and around a city, coinage became the most convenient way to do business. A common occurrence was that in Athens, the jurors on the law courts received their small amount of pay, and they would carry the coins in their mouths for convenience, as their clothes had no pockets.

Production of coins was usually controlled by the state, which had a vested interest in ensuring their purity and consistency. Coins were issued in gold, silver, electrum, bronze, and copper. The ore was melted using a forge, and the molten metal was poured into standardized molds to create blank coins (known as flans). An engraver would create the design of the coin in relief on a metal die, usually iron or bronze. The earliest coins had a design on only one side.

The obverse die was put into an anvil for holding a warm blank, which the moneyer (the individual who ran the mint) placed on top of the die, and with the other die in his hand, the minter would strike it, leaving an impression on the coin. Later, the die held by the minter was also inscribed on the reverse, so both sides had an impression.

To create different values, the weights and sizes would be altered. In Athens, the smallest coin was the obol, and six of these made a drachma. A day’s wage in Athens for a common laborer was two obols. Typically, the obverse of the coin had the most ornate design, such as the owl or turtle, while the reverse was a simple geometric design. Later, the reverse designs were elaborated to not only extol the virtues of the city, but also the moneyer; often he would sign the design, similar to an artist signing his painting.

The owl on the Athenian tetradrachm, or four-drachma coin, was the most famous obverse, and on the reverse side was Athena. Cnossos portrayed the labyrinth, while Thebes had the Boeotian shield. Cities that had a strong maritime influence often had symbols of the sea, like Aegina and its turtle, dolphins for Syracuse, and Poseidon for Poseidonia. Other cities often used plants, such as an ear of wheat for Metapontum or a rose for Rhodes. Some featured the symbols of their patron god, like Delos and the lyre of Apollo.

Individuals also tried to manufacture counterfeit coins. Typically, these coins were not pure; they often were only plated in gold and silver over a lead core. In some cases, a clay coin was baked and then plated with metal. The early coins, which lacked intricate designs, were easier to counterfeit. Two of the reasons why cities began to put designs on their coins were to make counterfeiting more difficult and to symbolize their authority to mint coins. Merchants could test the purity of coins by striking them against something called a strike plate and seeing what color was left behind.

Coins provide the modern scholar with valuable information. In addition to the weight and purity, which can give signs about the health of the economy, coins provide visual clues about a society. The images can point to a change in political policy or ideas and even help identify monuments. Also, since coins are valuable, their safety was important. Individuals would often gather their coins together and hide them. Sometimes these hidden troves would not be recovered, and as a hoard they provide information about events such as wars or other disasters. Coins, then, open a window to the past and how society functioned both economically and politically.