Why the Old Pound Was Divided into 240 Pence and 20 Shillings?
The division of the old British pound into 240 pence and 20 shillings is a fascinating aspect of historical currency. This article will explore the historical context, practical reasons, and cultural influences behind this specific division.
Historical Context
The roots of the old British pound's division into shillings and pence can be traced back to earlier systems of currency. The pound was originally a weight of silver, with various divisions arising as trade and commerce evolved. The system was significantly influenced by the Roman monetary system, which used a counting system based on the duodecimal (base-12) system.
Division by 12
The use of 12 as a base for shillings made calculations more straightforward in certain contexts. Twelve can be easily divided by 1, 2, 3, 4, 6, and 12. This facilitated a variety of fractional amounts, which was particularly useful for merchants and traders who needed to calculate prices and make change.
240 Pence
The choice of 240 pence arises from multiplying the 20 shillings by the 12 pence per shilling. This division is noteworthy because 240 is a highly composite number, meaning it has more divisors than most smaller numbers. This characteristic allowed for various pricing and division scenarios, making the system flexible and practical for everyday transactions.
Trade Practices
The division into 240 pence was practical for everyday transactions, especially during a time when many transactions were conducted in cash. A 12 and 20-based system provided a more versatile framework for calculating prices and making change compared to a 30-based system, which would have fewer divisors and less flexibility.
In contrast, a division into 360 pence (30 shillings) would not have offered the same ease of calculation and flexibility. The number 30 is less versatile in terms of its divisors, meaning it would make it harder to perform various calculations and divisions. Therefore, the 240 pence system became the standard in British currency until the decimalization of the pound in 1971.
Origins of the Pound Sterling
Interestingly, the concept of the pound as a weight of silver was reflected in the currency system. A pound of silver weighed 240 sterling silver pennies, and a shilling was originally just an accounting unit of 12 silver pennies. When shilling coins were eventually minted in 1551, 20 of these coins again contained 1 lb of sterling silver. Even today, the official currency of the United Kingdom is the pound sterling, reflecting the historical roots of the pound.
The silver coins being minted in Carolingia weighed a nominal 1/240th of a Troy pound, a standardization based on half a late Roman denarius. The concept of a shilling was introduced as an accounting shorthand, used before the actual minting of shilling coins. The numbers 12 and 20 were chosen because they were easier to work with than the more complex numbers, such as 8 or 30, used in some other systems.
Understanding the historical context and practical benefits of the 240 pence and 20 shilling system provides insights into the evolution of currency and trade in early modern Britain. This system not only facilitated trade but also reflected the cultural and economic developments of the time.