ABSTRACT
The definition of the monetary standard requires a definition, on the one hand, of the metal used as the basis of the monetary system and, on the other, of the amount of that metal which constitutes the monetary unit. But the coins in circulation representing the monetary unit do not consist only of the prescribed amount of the pure metal. They always contain at least a small proportion of alloy. In order to discover the monetary standards of the ancient East from a consideration of their coins, it is now desirable to consider what proportion of the weight of ancient coins was alloy and how much was the monetary metal. This consideration may be of great importance when, for any reason, attempt is made to reduce the standard. The change may be effected without any reduction in the weight of the coins, by merely increasing the proportion of alloy which they contain and reducing the proportion of the metal of the standard. If the coins are freely issued they will fall in value until they reach the value of the new mixture in the coins. The mere fact that this debasement enables the issuing authority to keep up appearances while it makes the change renders this method of depreciation attractive. It is necessary, therefore, to examine ancient coins with a view to discovering firstly the proportion of alloy which it was customary to use, and, secondly, the frequency with which the proportion was changed. The result of the second discovery will reveal whether debasement of money was a common means of inflation in early times.
