8 Reales – Mexico

In 1810, the currency situation in Mexico, then the Viceroyalty of New Spain, was a complex and deteriorating system under severe strain. The official currency was based on the Spanish monetary system, centered on silver reales and gold escudos, with the peso de ocho (eight-real piece) as a key unit. The colony was the world's foremost silver producer, with coins minted at the Mexico City Mint fueling global trade. However, the outbreak of the War of Independence in September 1810, initiated by Miguel Hidalgo's Grito de Dolores, triggered a profound financial crisis. The royalist government, facing massive military expenses, began to requisition silver and issue debased copper coins, while insurgent forces seized mining centers and minting facilities, disrupting the silver supply that was the bedrock of the economy.

This disruption led to a chaotic proliferation of currency. Both sides began issuing their own emergency money to fund the war effort. The royalist authorities, led by Viceroy Francisco Xavier Venegas, authorized the issuance of low-denomination copper tlacos and pilones, which were already commonly used as small change by merchants and haciendas, but now flooded the market. More significantly, the government began printing paper money, known as vales reales (royal vouchers), which quickly depreciated due to lack of public confidence and insufficient silver backing. Meanwhile, insurgent leaders minted their own crude coins, often from confiscated silver, bearing revolutionary symbols and slogans to legitimize their cause and pay their troops.

Consequently, the monetary landscape fragmented, leading to rampant inflation, severe coin shortages, and a collapse of public trust in any circulating medium. The simultaneous circulation of royalist silver, debased copper, depreciating paper, and various insurgent issues created a confusing and unstable environment for commerce. This currency chaos mirrored the broader breakdown of colonial authority and economic structures, as the war severed financial ties with Spain and paralyzed the silver mining industry. The financial disarray of 1810 thus marked the beginning of a prolonged period of monetary instability that would challenge Mexico long after independence was achieved.