1 Scudo – Papal States

In 1712, the Papal States operated under a complex and debased monetary system, a legacy of chronic fiscal strain. The primary unit was the scudo (plural: scudi), a silver coin that served as the theoretical standard, but its value and silver content had been eroded over decades to finance state expenditures, including military costs and lavish papal projects. Alongside it circulated a multitude of other coins: the giulio (a smaller silver coin), the baiocco (copper), and the gold doppia. Crucially, the value of these coins was not fixed by their metal content alone but was often set by papal decree (cours forcé), leading to a disconnect between their face value and intrinsic worth.

This period fell within the lengthy reign of Pope Clement XI (1700-1721), whose papacy was mired in the geopolitical turmoil of the War of the Spanish Succession. The Papal States' precarious neutrality and occasional military interventions drained the treasury, exacerbating the temptation to engage in currency manipulation. The practice of "crying up" or "crying down" coins—officially altering their exchange rates—created confusion and hindered commerce. Furthermore, the circulation of foreign coins, particularly Spanish pieces of eight and coins from other Italian states, added to the monetary chaos, as merchants and citizens had to constantly navigate fluctuating exchange rates.

Consequently, the monetary situation in 1712 was one of instability and localized inflation, particularly in Rome. The disparity between officially decreed values and market values encouraged hoarding of better-quality coins and the export of precious metal, a problem known as Gresham's Law ("bad money drives out good"). This environment frustrated merchants, burdened the poor, and reflected the broader administrative and economic challenges facing the Papal States, which struggled to maintain a unified and sound currency across its disparate territories in central Italy.