½ Rupee – Bengal Presidency
India
Obverse
Description:
Legend: Struck across seven climes by divine grace, protector of faith Muhammad Shah Alam. (AH date)
Inscription:
شاه عالم بادشاه
حامي دين محمد
ساى فضل لله
سكة زد بر حفت كشور
حامي دين محمد
ساى فضل لله
سكة زد بر حفت كشور
Reverse
Description:
Zarb Murshidabad, sanat 19 julus maimanat manus.
Edge
Plain
Mintings
| Year | Mint Mark | Mintage | Quality | Collection |
|---|---|---|---|---|
| — | 8 | — | ||
| 1769 | 11 | — | ||
| 1770 | 12 | — | ||
| 1773 | 15 | — | ||
| — | 19 | — |
Historical background
In 1767, the Bengal Presidency was grappling with a severe and multifaceted currency crisis, a direct consequence of the East India Company's (EIC) transition from a trading entity to a territorial ruler following the Battle of Plassey (1757) and the assumption of the diwani (revenue rights) in 1765. The core of the problem was a drastic shortage of silver specie (rupees), the primary medium for revenue collection and large-scale trade. This scarcity was caused by several factors: the massive export of silver bullion to China to pay for tea, the hoarding of coins by a nervous populace amidst political instability, and the systematic drain of wealth ("tribute") sent to Britain, which depleted the region's monetary stock.
The crisis was exacerbated by a chaotic and debased coinage system. While the EIC minted its own rupees in Calcutta, these competed with a plethora of older, often inferior, Mughal and regional coins still in circulation. Widespread counterfeiting and the clipping of coins further eroded public confidence in the currency. This monetary instability crippled commerce, as merchants struggled to ascertain the value of transactions, and made the EIC's own revenue collection inefficient and unpredictable. Collecting taxes in devalued or suspect coinage effectively reduced the real value of the Bengal revenues, which were the financial bedrock of the Company's operations.
Faced with this emergency, the EIC administration under Governor Henry Verelst took decisive action in 1767. The government demonetized a wide range of old and suspect coins, announcing that only the Company's Calcutta-minted rupees would be accepted for revenue payments after a set deadline. This bold move aimed to establish a uniform, trusted currency and flush out debased coins from the fiscal system. While causing short-term dislocation, the reforms of 1767-68 marked a critical step in the Company's consolidation of fiscal control, laying the groundwork for a more standardized monetary regime that would underpin its colonial rule in Bengal.
The crisis was exacerbated by a chaotic and debased coinage system. While the EIC minted its own rupees in Calcutta, these competed with a plethora of older, often inferior, Mughal and regional coins still in circulation. Widespread counterfeiting and the clipping of coins further eroded public confidence in the currency. This monetary instability crippled commerce, as merchants struggled to ascertain the value of transactions, and made the EIC's own revenue collection inefficient and unpredictable. Collecting taxes in devalued or suspect coinage effectively reduced the real value of the Bengal revenues, which were the financial bedrock of the Company's operations.
Faced with this emergency, the EIC administration under Governor Henry Verelst took decisive action in 1767. The government demonetized a wide range of old and suspect coins, announcing that only the Company's Calcutta-minted rupees would be accepted for revenue payments after a set deadline. This bold move aimed to establish a uniform, trusted currency and flush out debased coins from the fiscal system. While causing short-term dislocation, the reforms of 1767-68 marked a critical step in the Company's consolidation of fiscal control, laying the groundwork for a more standardized monetary regime that would underpin its colonial rule in Bengal.
✨ Legendary