2 Pies – Madras Presidency

By 1825, the currency situation in the Madras Presidency was a complex and often chaotic system, characterised by the simultaneous circulation of multiple metallic currencies and a severe shortage of small change. The primary unit was the silver Star Pagoda, but the most ubiquitous coin in daily use was the gold pagoda, alongside silver rupees (largely Arcot rupees) and a bewildering variety of copper coins. This multiplicity led to fluctuating exchange rates between gold, silver, and copper, which varied not only over time but also between districts, causing significant inconvenience for trade and revenue collection.

The East India Company administration had long struggled to impose order. Their attempts to introduce a uniform silver standard, such as the Company Rupee, competed with the entrenched popularity of the gold pagoda, especially for larger transactions and zamindari revenue payments. Furthermore, a critical problem was the chronic scarcity of reliable copper coins for small transactions, which was filled by a flood of inferior, privately minted copper tokens and even lead pieces from local rulers and merchants. This undermined official currency and facilitated widespread counterfeiting, eroding public confidence in the monetary system.

Consequently, in 1825, the Presidency stood at a monetary crossroads. The authorities recognized the urgent need for simplification and control, viewing the chaotic currency as an impediment to efficient administration and economic growth. This year fell within a period of active reform, shortly preceding the more decisive actions of the late 1820s and 1830s, which would eventually lead to the demonetization of the gold pagoda and the firm establishment of a uniform silver standard based on the Company Rupee, laying the groundwork for a more unified subcontinental currency system.