Silver Threads: The Rise of Ludlow's Economy in the Shadow of the Castle

Silver Circulating among the Villagers. From the Tavern to the Butcher to the Blacksmith to the Weaver and so on.

The passage below is an account of Silver circulating in 12th Century Europe (Present day UK) This is just a simplified snapshot taking in account a period in history in between the emergence of global reserve currencies and after the dominance of the Roman empire.

In the shadow of Ludlow Castle, perched high above the River Teme in the Welsh Marches, a bustling economy thrived in the 12th century.

The castle, one of the first stone fortifications built after the Norman Conquest, stood as a symbol of Norman power and a bulwark against Welsh incursions. Its presence brought both protection and prosperity to the growing town of Ludlow.

As the sun rose over the castle's imposing walls, the village square came to life. Soldiers, their pockets jingling with silver pennies minted by order of the Crown, made their way to the various stalls and shops that had sprung up to cater to their needs.

These coins, bearing the likeness of King Henry I, were a testament to the growing monetary economy of medieval England.

Marta, the tavern keeper, was one of the first to benefit from this influx of silver. Her establishment, nestled in the shadow of the castle's outer bailey, bustled with activity as soldiers exchanged their shiny pennies for hearty stews and strong ales.

Marta's business boomed, fueled by the constant thirst of the garrison for wine and merriment.

Across the square, the rhythmic clanging of Tomas the blacksmith's hammer rang out. Tomas, whose forge stood near Mortimer's Tower, found himself with more silver pennies than he'd ever seen.

Soldiers paid him handsomely for repairing their armor and sharpening their swords, essential tasks for the defenders of the Marches.

Tomas took some of his silver to Elena, the local weaver, whose shop was tucked away in one of Ludlow's narrow streets. He exchanged coins for warm blankets and sturdy clothes for his children, preparing for the harsh winters that often beset the region. Elena, in turn, used some of that silver to buy meat from Gregor the butcher, whose shop stood near the town's eastern gate.

Gregor, flush with silver from both soldiers and villagers, hired young Piotr to help in his shop, paying him a few silver pennies each week. Piotr, excited by his first wages, spent some of his silver at Marta's tavern, enjoying a mug of ale and a hot meal while listening to tales of skirmishes with Welsh raiders.

When Marta needed repairs for her tavern, she hired Aldric the carpenter. Aldric's workshop, located near the castle's Great Hall, was always busy with orders from both the castle and the town. He took the silver he earned from Marta and purchased new tools from Tomas the blacksmith, completing the circle of trade.

Tomas, remembering a toothache that had been bothering him, visited Healer Greta, whose knowledge of herbs and remedies was renowned throughout Ludlow. Greta's small apothecary, nestled against the town walls, was a testament to the growing sophistication of medieval medicine.

As the days passed, Ludlow saw a remarkable transformation. The increase in silver circulation, driven by the soldiers' pay from the local lord and the Crown, meant that villagers could specialize more in their trades.

Farmers in the fertile lands surrounding Ludlow could focus on growing crops, confident that they could exchange their harvest for silver pennies.

The local economy became more dynamic and resilient. When Welsh raids threatened the outlying farms, the villagers had enough silver saved to purchase food from traveling merchants.

When winter came, those who had earned extra silver during the busy summer months were able to sustain themselves through the lean times.

The presence of Ludlow Castle and its garrison not only provided protection but also stimulated economic growth. The constant need for supplies, from food and drink to weapons and armor, created a thriving market town.

Ludlow's strategic position on the Welsh Marches meant a steady flow of travelers and traders, further boosting the local economy.

As night fell and the castle's imposing silhouette loomed over the town, the villagers of Ludlow counted their silver pennies, each coin a small piece of the larger economic tapestry.

From the highest towers of the castle to the humblest village hut, the circulation of silver had woven together the fates of soldiers, craftsmen, and common folk alike, creating a vibrant community in this frontier town of medieval England.

Tracking Sources of Silver from Greco-Roman Era towards today

It's important to note that the concept of a "global reserve currency" as we understand it today didn't truly emerge until the late 19th and early 20th centuries. Prior to that, currencies were often based on their precious metal content, particularly gold and silver.

The Spanish dollar, also known as the "piece of eight," was perhaps the first truly global currency, widely used in international trade from the 16th to 19th centuries due to the abundant silver supplies from Spanish America.

The French livre was the currency of France until 1795. During the height of the French colonial empire, France sourced silver from its colonies in Africa and North America (New France).

However, it's worth noting that the French livre was not as globally dominant as some of the other currencies listed, particularly the Spanish dollar or the British pound sterling.

The French colonial empire expanded significantly in the 17th and 18th centuries, and France established control over various regions in Africa, North America, and the Caribbean. These colonies likely provided sources of silver and other precious metals that supported the French currency.

After the French Revolution, the livre was replaced by the franc in 1795. The franc continued to be an important currency throughout the 19th and 20th centuries, particularly in France's colonial territories.

The British pound sterling became the dominant global currency in the late 19th century as the UK became the primary exporter of manufactured goods and services, with over 60% of world trade invoiced in pounds sterling.

The U.S. dollar emerged as the world's primary reserve currency after World War II, following the Bretton Woods agreement in 1944. This status was further cemented when President Richard Nixon suspended the convertibility of the USD to gold in 1971, creating a fully fiat global reserve currency system.

As of 2020, the U.S. dollar remains the dominant reserve currency, representing about 59% of global currency reserves, followed by the euro at 21.2%.

As of 2024 BRICS appear to have the momentum to challenge US dollar hegemony.

Citations:
https://en.wikipedia.org/wiki/Reserve_currency
https://www.visualcapitalist.com/cp/how-reserve-currencies-evolved-over-120-years/
https://home.treasury.gov/system/files/206/Appendix1FinalOctober152009.pdf
https://www.ft.com/content/c967ba48-f21b-4222-9f11-beb61ce710ae
https://www.investopedia.com/articles/forex-currencies/092316/how-us-dollar-became-worlds-reserve-currency.asp
https://www.elibrary.imf.org/view/journals/022/0004/003/article-A007-en.xml
https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency
https://www.researchgate.net/figure/Global-reserve-currencies-since-1450_fig4_359134517