The Coins and Currency of the Pilgrims: A Journey to the New World

When the Pilgrims set sail aboard the Mayflower in 1620, they carried more than dreams of religious freedom and a new beginning—they brought with them the economic tools of their time. Currency, in its various forms, was essential for trade and survival, even in the rugged, uncertain landscapes of the New World. But what kind of money did the Pilgrims use, and how did their financial systems evolve in the early years of settlement?

This blog explores the forms of currency the Pilgrims relied on, the challenges they faced in establishing a viable economy, and how their monetary practices laid the groundwork for colonial America’s financial systems.

The Economic Context of the Pilgrim Migration

Before understanding what coins and currency the Pilgrims used, it’s important to consider the economic environment of 17th-century England and Europe. The Pilgrims were a group of religious separatists who sought to escape persecution under King James I of England. They initially fled to the Netherlands but later decided to establish a new settlement in the Americas. Funding this ambitious endeavor required significant financial backing.

To finance their voyage, the Pilgrims entered into an agreement with a group of investors known as the Merchant Adventurers. These backers provided the necessary capital in exchange for a share of the colony's profits, which were expected to come from resources like timber, fur, and fish.

This arrangement influenced the types of currency the Pilgrims brought with them, as they needed to trade both with the indigenous peoples and with European merchants.

Coins in Use During the Pilgrim Era

At the time of the Pilgrims’ departure, England did not have a standardized paper currency. Coins made of precious metals, primarily gold, silver, and copper, were the primary medium of exchange. The following were among the most commonly used coins in England and Europe in the early 17th century:

1. Gold Coins:

   • Guinea: Introduced later in the 17th century, this gold coin would become a staple of English currency.
   • Double Sovereign: A large gold coin with high value, rarely used by common people but significant for large transactions.

2. Silver Coins:

   • Shilling: A key silver coin, valued at 12 pence.
   • Sixpence and Groat: Smaller denominations used for everyday transactions.
   • Spanish Reales (Pieces of Eight): These widely circulated silver coins were prized for their high silver content and used in international trade.

3. Copper Coins:

   • Farthing: A small copper coin, useful for minor purchases.
   • Halfpenny: Another copper coin for low-value transactions.

While English coins dominated the Pilgrims' monetary supply, foreign coins like the Dutch Guilder and Spanish Real were also common, especially in international trade and areas where English coins were scarce.

Currency in the New World: Bartering and Coinage

Upon arriving in Plymouth, the Pilgrims quickly realized that their European coins had limited use. The New World lacked the structured economies and markets of Europe, and there was no local mint to produce currency. As a result, the Pilgrims adapted their financial practices to fit the realities of their new environment.

Bartering as the Primary System

Barter was the primary means of exchange in the early years of the Plymouth Colony. The Pilgrims traded goods and services directly, often using items with intrinsic value as currency. Common barter items included:

• Corn and Grain: Staples of survival and trade.
• Fur and Animal Pelts: Highly valued in European markets.
• Tools and Equipment: Essential for building and farming.

Wampum: The Currency of the Indigenous Peoples

The Pilgrims also adopted wampum, a form of currency used by the Native American tribes. Wampum consisted of beads made from shells, typically white or purple, and was strung together in intricate patterns. The beads had cultural and ceremonial significance for Native Americans but were also used as a medium of exchange.

For the Pilgrims, wampum became an essential trade item, especially in dealings with the indigenous peoples. Over time, it gained wider acceptance as a form of currency within the colonies.

The Lack of a Mint and Early Colonial Challenges

One of the most pressing financial issues for the Pilgrims and other early settlers was the absence of a mint in the New World. Without a facility to produce coins, the settlers had to rely on whatever currency they brought with them or could acquire through trade.

Foreign Coins in Circulation

Foreign coins, especially the Spanish Real, played a significant role in the colonial economy. Known as “pieces of eight,” these coins were widely accepted due to their consistent silver content and use in international trade. The Spanish Real became so prevalent that it influenced the development of the U.S. dollar centuries later.

Challenges with Coin Supply

Coins were often in short supply in the colonies. This scarcity forced the Pilgrims to be resourceful, using a combination of barter, wampum, and credit systems to facilitate trade. The lack of standardized currency also led to disputes over value and exchange rates, complicating economic transactions.

The Evolution of Currency in Plymouth Colony

As Plymouth Colony grew and became more established, so did its economic practices. The settlers began to incorporate more structured systems of trade and currency.

Commodity Money

In addition to wampum and coins, the Pilgrims used commodity money—goods that had intrinsic value and could be exchanged for other items. Examples included:

• Tobacco: Used as currency in some colonies, though less common in Plymouth.
• Livestock: Sheep, cows, and pigs often served as a medium of exchange.
• Furs and Skins: A valuable export item and trade currency.

Credit Systems

The Pilgrims also relied on credit systems, particularly in transactions with European merchants. These systems allowed settlers to receive goods and supplies on credit, with the understanding that payment would be made later, often in the form of agricultural products or raw materials.

The Influence of Pilgrim Currency Practices on Colonial America

The economic practices established by the Pilgrims and other early settlers had a profound influence on the development of colonial America’s financial systems. Key legacies include:

1. Adoption of Foreign Coins: The widespread use of Spanish Reales and other foreign coins set the stage for the diverse and decentralized currency systems of colonial America.

2. Bartering and Commodity Money: The reliance on barter and commodity money persisted in rural areas for decades, shaping local economies and trade practices.

3. Wampum as Currency: The Pilgrims’ use of wampum highlighted the importance of cultural exchange and adaptation in the New World.

4. The Importance of Credit: The use of credit systems in early settlements laid the groundwork for more complex financial instruments in later colonial economies.

Conclusion

The coins and currency used by the Pilgrims reflect a fascinating intersection of European monetary systems, indigenous practices, and the unique challenges of establishing a new society in an unfamiliar land. From the coins they carried on the Mayflower to the wampum and barter systems they adopted in Plymouth, the Pilgrims’ approach to money was resourceful, pragmatic, and adaptive.

Their financial practices not only ensured their survival but also influenced the broader economic development of colonial America. Today, the story of the Pilgrims’ currency serves as a testament to the ingenuity and resilience of the settlers who laid the foundation for a new nation.