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THE HISTORY OF SILVER
Silver standard
Article # : silver126
Silver standard
The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. The silver standard was widespread until the 19th century, when it was replaced in most countries by the gold standard.
Ancient Greece
The first metal used as a currency was silver more than 4,000 years ago, when silver ingots were used in trade. During the heyday of the Athenian empire, the city's silver tetradrachm was the first coin to achieve "international standard" status in Mediterranean trade.
China
China had long used silver as monetary units, along with the cast copper-alloy cash. The use of silver ingots can be traced back as far as the Han dynasty (206 BC-220 AD). But prior to Sung era (960-1280 AD), those silver ingots were used mainly for hoarding wealth. During Yuan dynasty, silver ignots were made into the shape like boat or Chinese shoe, and was called "yuan pao" (元寶) - literally "treasure of Yuan". This often became the shape of silver ignots in the following centuries. Paper money were issued as monetary standard at the beginning of Ming (1368-1644 AD) dynasty, but in 1436, the first year of Zhengtong Emperor, change was made and tax were officially required to be paid by silver. From late Ming to Ching dysnasty (1644-1911 AD), the silver ignots were used enormously in foreign trade until the modern silver coin was esblished in 1889.
The silver standard was codified by the newly established republic in 1914, with one yuan being equal to 7 mace and 2 candereen 0.9 fine silver. However, the silver standard was officially abandoned in 1935 in favor of the four national banks "legal note" issues. China would be the last country to abandon the silver standard.
Persia
The dirham was a silver coin originally minted by the Persians. The Caliphates in the Islamic world adopted these coins, starting with Caliph Abd al-Malik (685–705). Silver remained the most common monetary metal used in ordinary transactions until the 20th century.
Bohemia
Beginning in 1515, silver coins were minted at the silver mines at Joachimsthal - Jáchymov (St. Joachim's Valley) in Bohemia, now part of the Czech Republic). Although formally called Guldengroschen, they became known as Joachimsthalers, then shortened to thaler. The coins were widely circulated, and became the model for silver thalers issued by other European countries. The word thaler became dollar in the English language.
Spain
Rich deposits of silver in the Spanish colonies of the New World allowed Spain to mint great quantities of silver coins. The Spanish dollar was a Spanish coin, the "real de a ocho" and later peso, worth eight reals (hence the nickname "pieces of eight"), which was widely circulated during the 18th century.
By the American Revolution in 1775, Spanish dollars were backed by paper money authorized by the individual colonies and the Continental Congress. In addition to the American dollar, the 8-real coin became the basis for the Chinese yuan.
Source: Wikipedia