UNIT 6 TOURISM DEVELOPMENT: PRODUCTS AND
for a more convenient system of a store of value and a medium of exchange for goods and services.
Among the Babylonians, record keeping of economic transactions were done on clay tablets (cuneiform) while payments of goods were sometimes made in kind with grains but the prices were calculated in terms of silver and copper. Owing to the cumbersome nature of carrying these heavy metals around, the merchants deposited them in the temples and the temple priests issued receipts written on cuneiforms. These receipts became known as letters of credit and became recognized among the temples engaged in the same business. This transaction marked the very beginning of the modern banking institution and paper money.
Coinage first occurred in Lydia in Asia Minor in the 6th B.C. the first coin was made of electrum, a mixture of gold and silver. The first official coin was issued by king Croeseus of Lydia about 500 B. C. This was followed by that of King of Persia, 558 – 486 B .C. which bore his stamped image and from then on the idea spread to the Mediterranean coast.
The first international coins were issued in Arthens in Greece cirta 430 B. C. This Arthenians had large quantities of silver from Larium. Their coins had the head of Pallas Arthena the patron goddess on the obverse side, a culture which has been handed down and is still practiced to this day. The Unit of the Arthenian money was the drachma. The use of the Greek coin spread to Persia and Egypt and even as far as the Eastern part of India and for a long time Greek coins were used in Eastern Europe, Asia and North Africa. The subject of the debasement of coins has a lot to do with the evolution of the modern banking system.
The first recorded case of debasement of coins was in Greece when a Greek legislator was reported to have lessened the amount of silver used in making a drachma in 600 B.C. resulting in a lighter piece. The idea was not to cheat but an attempt to equalize the Greek with the Persian to facilitate neutral trade.
Rome because a world power in the 3rd century B. C, and started minting her own coins. In the preceeding 4th century Roman money was made of crude copper. But the conquest of Terenbtum in the Italian Pennisular provided her with vast deposits of silver and enabled her to issue bimetallic coins-silver and bronze. The silver coin was called denarius and, later, gold coins known as aureun were struck prices, noblemen and soldiers were given permission by the Roman senate to strike their own coins. Julius Caesar (100 – 44 B. C) was one of tho se who enjoyed this privilege. But when Augustus became Emperor (278 B. C. – A. D.14) the privilege was abolished.
Rome was very rich from the spoils of war but squandered them on the maintenance of the army at home and in far-flung lands. Much money was also spent on monumental buildings and luxury goods. These actions led to a severe strain in the economy and the debasement of the denarius became the order of the day. In consequence, by the time of Gallienus (A. D. 260 – 268) the denarius lost all r espect and value and Rome returned to trade by barter. Finally, the Empire collapsed.
The collapse of the Roman Empire meant that there was no more real power in Europe. Coining was now left in the hands of rich merchants and strong kings and princes. The situation was chaotic. But the rise of trade in the Italian cities of Florence and Venice led once more to the introduction of the Florentine florin in 1252 and the Venetian ducat or sequin in 1342. These were widely accepted in Europe and, in the 15th century, the Spaniards who had become rich by exploiting gold in the Americas, introduced the scudo. The English who plundered the Spanish ships were now also rich enough to introduce the guinea and the crow.
These coins were popular in Europe until the introduction of paper money during the outbreak of the First World War. With the outbreak of the Second World War, many countries come down and adopted copper and nickel alloys for coins in place of silver and gold, using gold bars for international trade only.
In the former British, French, Spanish, Portuguese and German territories in Africa coins of the colonial masters were used supplemented by the Autrian Maria Theresa Dollar. This was first struck in Austria in 1780 at the death of Empress Maria Theresa. It went out of use in Austria in 1854 but its issue for export continued long after that.
Because of its popularity the British Royal Mint was authorized to make them for the British overseas trade in Africa in 1937 and 150,000 of them were issued. It circulated in the former Anglo-Egyptian Sudar, Aden and the Red sea area. The Italian Government also struck them for Ethiopia after its conquest in 1936. In Nigeria where it gained wide circulation, it was noted that in 1858,on Maria Theresa Dollar was worth 2,500 cowries in Kano and 3,200 in Borno. In 1820 the Emir of Kano who determined rates of exchange fixed one Maria Theresa to be worth 2,00 cowrie shells and in 1851, it was 2,500 shells to a dollar. Although its importation was officially stopped in 1903 its circulation continued not only as currency but as ornament particularly among the Fulani women.
Other coins which according to some authors accidentally appeared in West Africa include a Roman coin of the age of Constantine found in Buea in the Camerouns in 1931 and two other Roman coins dated to 58 B. C and 2 B. C. discovered at Resserant in Mauritania. According to David Biver of the School of oriental and African studies in the University of London in a personal communication with Ekpo Eyo, a
coin of Constantine was found in Jos but was sent to Kuduna. Another author Arnett claims that silver groat of Edward III (1327 – 1377) was found in Birnin Kebbi.