13.4 Coinage and Banking

Coinage revolutionized ancient Greek trade. It all started in Lydia with electrum coins, then spread to Greek city-states. The Athenian "owl" tetradrachm became the most trusted coin in the Mediterranean, boosting trade and cultural exchange.

Money changers and bankers played a key role in the Greek economy. They exchanged currencies, made loans, and provided credit. This system of coinage and banking fueled economic growth, allowing for more complex trade and the rise of new professions.

Coinage in Ancient Greece

Origins and Development

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  Attica, Athens, 454-404 BC, AR Tetradrachm, Old-Style Owl, Full Incuse Square | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, Large Flan, gVF | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, VF | Ancient Coin Traders View original

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  Attica, Athens, 454-404 BC, AR Tetradrachm, Old-Style Owl, Full Incuse Square | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, Large Flan, gVF | Ancient Coin Traders View original

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Top images from around the web for Origins and Development

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  Attica, Athens, 454-404 BC, AR Tetradrachm, Old-Style Owl, Full Incuse Square | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, Large Flan, gVF | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, VF | Ancient Coin Traders View original

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  Attica, Athens, 454-404 BC, AR Tetradrachm, Old-Style Owl, Full Incuse Square | Ancient Coin Traders View original

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  Athens Old-Style "Owl" Tetradrachm, 449-413 BC, Large Flan, gVF | Ancient Coin Traders View original

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• The earliest coins in ancient Greece were minted in Lydia in the late 7th century BCE, made from electrum (a naturally occurring alloy of gold and silver)
• The island of Aegina was the first Greek city-state to mint its own silver coins around 550 BCE
  • Followed by Athens and Corinth
• The use of coins spread rapidly throughout the Greek world
  • Each city-state issued its own coins with distinctive designs and denominations
• The introduction of coinage facilitated trade and commerce
  • Provided a standardized medium of exchange
  • Replaced the earlier system of barter and the use of raw metal bullion
• The Athenian "owl" tetradrachm became the most widely used and trusted coin in the ancient Mediterranean world
  • Featured the goddess Athena and her sacred owl

Impact on Trade and Economy

• Coinage provided a more efficient and standardized means of exchange compared to the earlier barter system
  • Reduced transaction costs
  • Facilitated trade
• The use of coins enabled the development of a more complex and specialized economy
  • Emergence of new professions and industries (craftsmen, merchants)
• Coinage allowed for the accumulation of wealth and capital
  • Could be invested in trade, agriculture, and manufacturing
  • Stimulated economic growth
• The widespread use of the Athenian tetradrachm as an international currency fostered trade and cultural exchange throughout the Mediterranean region
• The ability to collect taxes and pay for goods and services in a standardized currency strengthened the fiscal capacity of ancient Greek city-states and empires
• The control over the minting of coins became a symbol of political sovereignty and economic power for Greek city-states and rulers

Coin Types and Denominations

Silver Coinage

• The drachma was the principal silver coin used in ancient Greece
  • Weight and value varied slightly among city-states
• The tetradrachm, equal to four drachmae, was the most common larger denomination coin
  • Used for major transactions and international trade
• Smaller denominations included:
  • Obol (one-sixth of a drachma)
  • Hemiobol (half an obol)
  • Chalkous (a copper coin of low value)

Gold and Other Coinage

• Gold coins, such as the Athenian chrysous (gold stater), were minted less frequently
  • Primarily used for large-scale transactions (paying mercenaries, making offerings to temples)
• Each city-state had its own distinct coin designs
  • Often featured local deities, symbols, or rulers (Athena on Athenian coins, Pegasus on Corinthian coins)
  • Served as a form of civic pride and identity

Money Changers and Bankers

Role of Trapezitai

• Money changers, known as trapezitai, played a crucial role in exchanging coins from different city-states and foreign currencies
  • Enabled smooth transactions between merchants from various regions
• Trapezitai also functioned as early bankers
  • Accepted deposits
  • Made loans
  • Provided credit to merchants and entrepreneurs
• Bankers often operated from tables (trapezai) set up in the agora (the central marketplace of a Greek city)

Other Banking Practices

• Some wealthy individuals and temples also acted as bankers
  • Lent money at interest
  • Financed trade expeditions
• The development of banking practices further facilitated long-distance trade and the growth of the ancient Greek economy
  • Use of credit
  • Issuing of letters of credit

Impact of Coinage on Trade and Economy

Standardization of Exchange

• The introduction of coinage provided a more efficient and standardized means of exchange compared to the earlier barter system
  • Reduced transaction costs
  • Facilitated trade
• The widespread use of the Athenian tetradrachm as an international currency fostered trade and cultural exchange throughout the Mediterranean region

Economic Growth and Development

• The use of coins enabled the development of a more complex and specialized economy
  • Emergence of new professions and industries (craftsmen, merchants)
• Coinage allowed for the accumulation of wealth and capital
  • Could be invested in trade, agriculture, and manufacturing
  • Stimulated economic growth
• The ability to collect taxes and pay for goods and services in a standardized currency strengthened the fiscal capacity of ancient Greek city-states and empires
• The control over the minting of coins became a symbol of political sovereignty and economic power for Greek city-states and rulers