1 Giulio – Papal States

In 1681, the Papal States operated under a complex and often chaotic monetary system, typical of many Italian states in the early modern period. The primary unit of account was the scudo, specifically the scudo di moneta, which was divided into 100 baiochi, each of which was further divided into 5 quattrini. However, the physical currency in circulation was a bewildering array of coins from various origins. Alongside locally minted papal coins—bearing the image of the reigning Pope Innocent XI—there circulated a significant volume of foreign specie, particularly Spanish silver reales and gold scudi from other Italian states like Tuscany and Genoa. This proliferation of different coins, each with fluctuating intrinsic metal values, created constant challenges for trade and taxation.

The integrity of the currency was a persistent concern. The papal mint in Rome faced difficulties in maintaining consistent silver content in its coinage due to the high cost of bullion and the temptation of debasement to generate seigniorage revenue for the state's coffers. Furthermore, counterfeiting was rampant, and "clipped" coins (with precious metal filed off the edges) were common, eroding public trust. While the Pope held supreme temporal authority, the practical control over monetary policy was often inconsistent, leading to periodic attempts at reform that would declare official exchange rates between the myriad of coins in an effort to impose order, with varying degrees of success.

Economically, this unstable monetary environment reflected the broader fiscal pressures of the Papal States. As a theocratic state with limited industrial or agricultural output, it relied heavily on revenue from ecclesiastical taxes, tributes from distant territories, and the influx of wealth from pilgrims and the ecclesiastical court. The confusion in the currency system thus mirrored the administrative challenges of governing a diverse set of territories across central Italy, where local economic conditions often dictated the effective, if not official, value of money changing hands in Rome, Bologna, or the port of Ancona.