ABSTRACT
An attempt has been made in this paper to show that, though multiple currencies were used simultaneously in many parts of early modern India, especially before the Colonial rule, there existed a complimentary relationship among different varieties of currencies, and as such there was hardly any confusion or chaos in the monetary system. It worked quite smoothly because of the indigenous system of money-changing (there were numerous shroffs (money-changers) in most parts of the country) and long-distance credit, known as hundi (bill of exchange), facilitating the smooth functioning of the monetary system. That there was no chaos is evident from the fact that none of the contemporaries, whether merchants/bankers (led by the Jagat Seths who were the greatest bankers of the then world, as attested by the English and Dutch Company officials), or primary producers, or even foreigners, ever referred to any chaos, unlike the case in China1 or some other countries. It was only after the English East India Company gained complete mastery over Bengal politics and economy following the British conquest of Bengal in 1757 that one hears about the chaos and confusion in the monetary system resulting from multiplicity of currencies in the country.
