The History of Currency, 1252 to 1896

APPENDIX I

Throughout the history of independent Florence her gold coin type is always the florin. In its first beginning her monetary system had relation to that of the restored Empire. The silver fiorino of which the first mention occurs was equivalent to 12 denari, as in the Charlemagne system. Presumably this would be equal to some hypothecated soldo, and the multiple of it a hypothecated fiorino d'oro, gold florin (= 20 soldi), would be equal to the lira or libra, or unit of weight. This will explain how it is possible to have mention of gold florins almost a century before the actual issuing of a real coin so named. Such mention occurs in the monetary ordinances and schedules of France as early as 1180. (See Preface, supra, p. xiii, also De Saulcy, Documents, i. 115. Le Blanc was unable to explain this apparent contradiction of history.)

What the particular Florentine weight unit or lira (libbra) was, however, is uncertain. According to the researches of Neri (in Argelatus, i. 157) the scheme of weights was—

When it actually emerges, the gold florin has a weight of 53 (English) grs., or 72 Florentine; which would give a mark of 6912 grs. Its standard was of absolute fineness, 24 carats, a standard which was never departed from through the whole of its history. Very little change, too, was made in the weight, hardly more than 4 1⁄2 grs. in all (or 6 1⁄4 per cent.).

It was issued at an equivalence of 20 soldi, which were represented by 20 silver florins, already known.

The variation of this coin with regard to the unit coin of lower denomination will be found in the Table below.

There is a second variation of the gold florin, apparently with regard to itself, which has given rise to much misunderstanding, and requires explanation. As the process of wear and tear and abrasion went on in the coins, with lapse of time the custom grew of subdividing or hypothecating a gold florin of ideally perfect weight and condition as the standard for transactions. This became book or bank money, and the actually circulating medium was rated to it at a certain discount. This ideal florin is known as fiorini di suggello or sigillo, florin of the public seal, and there is a series of such denominations. The first apparent adoption of such a method—which also emerges in the currency history of Hamburg and Amsterdam—was in 1321, and the florins of that date are styled "of the first sigello"; the second was in 1324, the third in 1345, and so on. Between the years 1328 and 1462 there was a series of eight, as follows:—

Subsequently, by law of 30th May 1464, this various advantage was transferred from the fiorini di suggello to a new denomination, fiorini d'oro larghi, with an advantage of 20 per cent. above the fiorini di suggello; and once again, by the law of 14th October 1501, the process was repeated. An advantage of 19 per cent. over the fiorini d'oro larghi was announced in favour of the newest denomination, fiorini d'oro larghi in oro. The advantage of these last, therefore, over the fiorini di suggello of 1461 amounted to 39 per cent.

It appears quite clear that this advantage represents a differentiation, not of good bank abstract florins from worn current gold florins, but of the former from the actual current medium of payment, and that this latter was silver.

The cause of the advantage was the depreciation of the silver denomination, from the aggregate of which was formed the lira, in which was expressed the value of the gold florin.[23]

For illustration:—

In 1464—

120 fiorini di suggello = 100 fiorini d'oro larghi at 4 lire 8 sol. 4 den. each = 530 lire.

Therefore each fiorino d'oro largo ought to = 5 lire 6 sol., which by the tables of the time it actually did.

Similarly, in 1501—

100 fiorini larghi d'oro in oro = 119 larghi di grossi at 5 lire 11 sol. 4 den. = 660 lire.

Therefore fiorino largo d'oro in oro should = 6 lire 12 sol. which it actually did.

The silver monies of Florence were based on the silver florin = 1⁄20 of gold florin (= 38 1⁄2 grains).

From the time of the Mint Law of 1296, these silver coins are styled grossi, and subsequently soldi, grossi, Guelfi, etc. etc.

The alloy gradually sank—

remaining at the last-named figure until the reopening of the Pisan Mint in 1597.

As the gold rose in value by the process already indicated, and the idea of the lira as 20 soldi = 1 gold florin, became inapplicable, the lira came to be looked on as a fractional part of the gold piece or florin. This usage grew up in Florence from the beginning of the twelfth century, and so continued till the days of Cosimo I., who in 1534 coined the first lira, i.e. an actual silver coin.

This imaginary lira of mediæval Florence was itself divided, like the florin, into soldi and denari, similar aliquot parts. Hence the custom of keeping Florentine accounts, (1) a oro, or (2) a moneta di piccioli, the one in terms of the florin of gold, the other in terms of the imaginary lira.

The confusion to which this led was due to the unstable nature of the imaginary money, which from 1312 continually depreciates in value, as compared with the actual hard florin money. In 1314, as some measure of reform, it was ordained that the florin of gold should not equal more nor less than 29 of the soldi of this lira, and that it should never change from such course—the distinction of moneta bianca and nera being introduced for the purpose. The ceasing of the observation of this regulation in the sixteenth century made way for every kind of confusion.

For the explanation of the text in Part I., pp. 19-23, it need only be added that 20 of these imaginary soldi formed the lira a fiorino spoken of.