Editing Coins of the pound sterling (section)

===The penny after 1500===

During the reign of Henry VIII, the silver content was gradually debased, reaching a low of one-third silver. However, in Edward VI's reign in 1551, this debased coinage was discontinued in favor of a return to sterling silver with the penny weighing 8 grains. The first crowns and half-crowns were produced that year. From this point onwards till 1920, sterling was the rule.

Coins were originally [[Hammered coinage|hand-hammered]] – an ancient technique in which two dies are struck together with a blank coin between them. This was the traditional method of manufacturing coins in the Western world from the classical Greek era onwards, in contrast with Asia, where coins were traditionally cast. Milled (that is, machine-made) coins were produced first during the reign of [[Elizabeth I of England|Elizabeth I]] (1558–1603) and periodically during the subsequent reigns of [[James I of England|James I]] and [[Charles I of England|Charles I]], but there was initially opposition to mechanisation from the moneyers, who ensured that most coins continued to be produced by hammering. All British coins produced since 1662 have been milled.

By 1601 it was decreed that one [[troy ounce]] or 480 grains of sterling silver be minted into 62 pennies (i.e. each penny weighed 7.742 grains). By 1696, the currency had been seriously weakened by an increase in clipping during the [[Nine Years' War]]<ref>Kleer, Richard. [http://www.litencyc.com/php/stopics.php?rec=true&UID=1304 "The 1696 Recoinage (1696–1699)"]. {{webarchive|url=https://web.archive.org/web/20100114145107/http://litencyc.com/php/stopics.php?rec=true&UID=1304 |date=14 January 2010 }}. ''The Literary Encyclopedia''. University of Regina.</ref> to the extent that it was decided to recall and replace all hammered silver coinage in circulation.<ref name="nandthec">[[Thomas Levenson|Levenson, Thomas]]. ''Newton and the Counterfeiter''. Faber & Faber. {{ISBN|978-0-571-22992-5}}</ref> The exercise came close to disaster due to fraud and mismanagement,<ref>Murray, Athol L. (1999). [http://ads.ahds.ac.uk/catalogue/adsdata/PSAS_2002/pdf/vol_129/129_861_886.pdf "The Scottish Mint after the recoinage, 1709–1836"]. {{webarchive|url=http://archive.wikiwix.com/cache/20090822230936/http://ads.ahds.ac.uk/catalogue/adsdata/PSAS_2002/pdf/vol_129/129_861_886.pdf |date=22 August 2009 }}. Society of Antiquaries of Scotland.</ref> but was saved by the personal intervention of [[Isaac Newton]] after his appointment as [[Warden of the Mint]], a post which was intended to be a [[sinecure]], but which he took seriously.<ref name=nandthec /> Newton was subsequently given the post of [[Master of the Mint]] in 1699. Following the 1707 [[Acts of Union 1707|union]] between the [[Kingdom of England]] and the [[Kingdom of Scotland]], Newton used his previous experience to direct the [[Scottish coinage|1707–1710 Scottish recoinage]], resulting in a [[Economic and monetary union|common currency]] for the new [[Kingdom of Great Britain]]. After 15 September 1709 no further silver coins were ever struck in Scotland.<ref>Murray, Athol L. (1997). [http://ads.ahds.ac.uk/catalogue/adsdata/PSAS_2002/pdf/vol_127/127_921_944.pdf "Sir Isaac Newton and the Scottish recoinage, 1707–10"]. {{webarchive|url=http://archive.wikiwix.com/cache/20090821045144/http://ads.ahds.ac.uk/catalogue/adsdata/PSAS_2002/pdf/vol_127/127_921_944.pdf |date=21 August 2009 }}. Society of Antiquaries of Scotland.</ref>

As a result of a report written by Newton on 21 September 1717 to the [[HM Treasury|Lords Commissioners of His Majesty's Treasury]]<ref>[[Isaac Newton|Newton, Isaac]] (21 September 1717). [http://www.pierre-marteau.com/editions/1701-25-mint-reports/report-1717-09-25.html "On the Value of Gold and Silver in European Currencies and the Consequences on the World-wide Gold- and Silver-Trade"]. {{webarchive|url=https://web.archive.org/web/20170128201847/http://www.pierre-marteau.com/editions/1701-25-mint-reports/report-1717-09-25.html |date=28 January 2017 }}.</ref> the bimetallic relationship between gold coins and silver coins was changed by [[royal proclamation]] on 22 December 1717, forbidding the exchange of gold guineas for more than 21 silver shillings.<ref>[https://archive.org/details/numismaticser1v05royauoft "By The King, A Proclamation Declaring the Rates at which Gold shall be current in Payments"]. ''The Numismatic Chronicle and Journal of the Royal Numismatic Society'', vol V., April 1842 – January 1843.</ref> Due to differing valuations in other European countries this unintentionally resulted in a silver shortage, as silver coins were used to pay for imports, while exports were paid for in gold, effectively moving Britain from the [[silver standard]] to its first [[gold standard]], rather than the [[Bimetallism|bimetallic standard]] implied by the proclamation.

The coinage reform of 1816 set up a weight/value ratio and physical sizes for silver coins. Each troy ounce of sterling silver was henceforth minted into 66 pence or 5{{frac|2}} shillings.

In 1920, the silver content of all British coins was reduced from 92.5% to 50%, with some of the remainder consisting of [[manganese]], which caused the coins to tarnish to a very dark colour after they had been in circulation for long. Silver was eliminated altogether in 1947, except for [[Maundy money|Maundy coinage]], which returned to the pre-1920 92.5% silver composition.

The 1816 weight/value ratio and size system survived the debasement of silver in 1920, and the adoption of token coins of [[cupronickel]] in 1947. It even persisted after decimalisation for those coins which had equivalents and continued to be minted with their values in new pence. The UK finally abandoned it in 1992 when smaller, more convenient, "silver" coins were introduced.