Copper coins of Ferdinand VII

The final series of Spanish Colonial copper coinage issued by the Mexico City mint came during the reign of Ferdinand VII. In total three types were produced for this series in the denominations of 1/16 Real (1/8 Pilon), 1/8 Real (1/4 Tlaco) and 1/4 Real (2/4 Tlaco) with various dates known for each type. These are by far the most common of any of the Spanish Colonial copper issues; however, they are extremely rare in high grade.

KM-59 1/16 real (⅛ vellón) 1814 Mo (Stack’s-Bowers NYINC Auction, 19 January 2023, lot 42616)

1814
1815/4
1815

 

KM-63 ⅛ real (¼ vellón) 1814 Mo (Stack’s Bowers NYINC auction, 24 January 2024, lot 51296)

1814
1815
1816

 

KM-64 ¼ real (2/4 vellón) 1814 Mo

KM-64 ¼ real (2/4 vellón) 1816 Mo

1814
1815
1816
1818
1821

 

On the obverse, these coins have two intertwined letters F with "VII" in the centre under a royal crown, all between Mo and the value, the legend "FERDIN·VII·D·G·HISP·REX" (Ferdinand VII by the grace of God King of Spain),with the date below. On the reverse, a floral cross with the Bourbon coat of arms in the centre and cantoned with castles and lions is shown inside a laurel wreath. This design was the was a hybrid of two existing coins, on one side a proclamation medal of 1808 in allusion to Ferdinand VII{footnote}The obverse has the shield of Spain surrounded by a fleece collar, with the legend FERDINAND VII DG HISPAN ET IND REX. and the reverse the initials of Fernando VII, with a laurel below and a star above and the legend ACCLAMATIO AVGVSTA MATR D 24 AVG AN 1808{/footnote} and on the other hand a maravedis coin of the Segovia mint.

Proclamation medal of Ferdinand VII, 1808

KM 426 2 maravedis, Charles IV, Segovia, 1808 (Stack’s Bowers Auction, 23 October 2019, lot 72776)

The ornate design of the reverse was originally created in 1770 by the engraver Tomás Francisco Prieto.

These coins, despite their original purpose, never managed to eradicate the name tlaco or pilón, nor to eliminate tlacos from circulation; it is estimated that these coins circulated until 1840, when they were amortized by President Antonio López de Santa Anna.

Ben Nibert {footnote}Ben Nibert, “Understanding the Nomenclature of the Colonial Copper Coinage 1814-1821” in USMexNA journal Vol. IX, No. IV, December 2004{/footnote} writes that this series presents problems to modem numismatists due to the forgotten intricacies of the archaic Spanish pecuniary policy. Early numismatists incorrectly assumed that the values represented on the coins were in standard reales, while the later use of the terms “tlaco” and “pilon”, while not technically incorrect, do not accurately illustrate their legal values. The series should be known for the denominations as intended by the government, not colloquial terms.

The term tlaco comes from the Nahuatl language word tlachco, meaning half or least quantity. The tlaco became the value of half a quartilla or one eighth real, while the term pilon came to mean half a tlaco or one sixteenth real. In later times, tlaco became a generic term for small value coins: The use of this term survived well into the time of centavos.

Tlacos were tokens (or coins) of necessity created as far back as the mid sixteenth century due to a lack of change under the value of the smallest silver coin; the half real. Originally created by merchants, these tokens could be given to a customer if small change was required after a coin of larger value was tendered for a purchase. These tokens could only be "spent" at the store of issue; they had little or no value elsewhere and of course, no official backing. Soon many types of merchants were issuing tokens, as were farms, haciendas, mines and businesses that paid them to their workers with. the expectation that they would be spent at the company store. Municipalities soon issued tokens, which became locally accepted small change: this practice to be later imitated by some state governments.

As for the basics of the Spanish and colonial monetary system, two distinct types of gold and silver money existed in Spain and its colonies. Jn peninsular Spain, provincial coinage was used which was lighter and baser than national coinage, which circulated in both Spain and the Indies. One reason for provincial coinage was to discourage the export of deliberately, less valuable money. A subsidiary coinage, provincial was not intended to circulate in the colonies, National coinage fundamentally had full silver and gold value and was relatively stable and universally accepted.
To complicate matters, a third monetary system also existed, which was called vellón. It provided small change. in copper in addition to serving as money of account. By the second half of the eighteenth century, business was transacted and records were kept in terms of vellón as were all mint records. The official monetary relationships in the second half of the eighteenth century were that the national silver real was fixed at 85 vellón maravedis while the provincial real was 68 vellón maravedis. The vellón one real was equal to 34 maravedis. Gold had a more flexible relationship.
As for Mexican history, vellón had not circulated in Mexico, except briefly for the failed maravedis issue of 1542. Small change under one half real was frequently made with cocoa beans which were commonly used until at least the middle of the eighteenth century. In a memorial presented to the Crown in December 1766, Augustin de Corona y Paredes described the tlaco tokens, which were being issued by the merchants of Mexico City, which in his opinion caused hardship for the poor. Jn October 1767, Charles III ordered a stop to the use of tlacos and instructed the Viceroy to consult the merchant guild at Mexico City on the desirability of coining vellón in New Spain. This, the guild rejected; it was against their economic interest to eliminate tokens. So, in December 1769, the Crown decided against vellón coinage. The prohibition of the use of tlacos was not enforced nor was a substitute found for the small change problem. Finally in August of 1789, Viceroy Revillagigedo denounced the token system and urged the Crown to coin copper vellón for use as soon as possible. Still, the Crown refused to introduce vellón but did introduce a silver quartilla, which was a new denomination, authorized by royal decree. These quartillas proved to be of inconvenient size as well as being struck in inadequate quantities. In 1814 Viceroy Calleja again ordered the removal of the token tlaco and pilones from circulation to be replaced with official coins.

The new coinage has its beginning with the decree of 28 March 1814 in which the Spanish, Superior Council of Finance mandated that vellón copper be minted in Mexico. On 4 June 1814 Viceroy Calleja ordered the circulation and use of vellón copper. On 23 August 1814 Calleja announced that vellón copper coins of one half, one and two quartos (2, 4 &. 8 maravedis) had already been minted and were ready for circulation. These were some of the same denominations circulating in Spain. In the vellón system we find the derivatives:

2 maravedis equals one ochavo or ⅛, the denomination on the smallest coin,
4 maravedis equals two ochavos, equals one quarto or ¼, the denomination on the middle size coin,
8 maravedis equals four ochavos, equals two quartos or ²/₄, the denomination on the largest coin.

Equivalents of their values were. spelled out as follows: ⅛ equivalent to a pilon or sixteenth real; ¼ equivalent to a tlaco or eighth real; or 2/4 equivalent to a quarto or quarter real, However, the Viceroy’s decree specified that the new coins be called by their values; the use of colloquial terms was forbidden. The new coins were to replace tokens and remove them from circulation, not to perpetuate their use.

The relationship of this coinage was to be in terms of national currency in which the new copper was to be an extension of the lowest value silver coin, namely the half real. vellón was valued in relation to national coinage which in practice at this time was one real de plata equals two reales de vellón. It is interesting to note the placement of values on both the Spanish and Mexican vellón coins are essentially the same but the Mexican product utilizes maravedis derivatives. Neither have any indication of the value system (maravedi, real, etc).

In conclusion:
1. The denominations of the coins are in vellón, i.e., maravedis or their derivatives. These values must be converted to national in order to find the actual value.
2. In discussing their denominations, the values on the coins should be used with the term vellón, indicating they represent a different accounting system, i.e. ²/₄ vellón or 2 quartos vellón; ¼ vellón or l quarto vellón; ½ vellón or 1 octavo vellón. The use of colloquial terms as values was not intended and is confusing to the numismatist.
3. The colonial and Spanish vellón value systems were the same and should be spoken of in the same way,
4. The equivalents, tlaco, pilon, etc, are useful from a historic point of view but ¼, ⅛, and ¹/₁₆ are more accurate in describing actual value in relation to the existing silver coinage.

The difficult survival of the first successful copper coin of Viceregal Mexico

by Pablo Luna Herrera{footnote}based on his website (in Spanish){/footnote}

The issue of small (or low-denomination) coins by the official authority in the Viceroyalty period was always complicated, due to a currency shortage for centuries and few successful cases of low value copper issued in almost three hundred years.

The object of this study has its roots in multiple previous attempts by the Spanish Crown to mint copper coins of low value: some examples are:

1. Copper patterns of 1768 and 1769,
2. Silver quarters (named Lion and Castle type) produced from 1796 to 1816 (KM #62).

Regarding the latter, the increasing cost of manufacturing them, their inconvenient size, insufficient quantities struck{footnote} Ben Nibert, Understanding the nomenclature of the colonial copper coinage 1814-1821 in U.S. Mexican Numismatic Association, Journal Vol IX. December 2004. No. IV. Hemet, California{/footnote} as well as the various Insurgent movements marked their end. Alfredo Lagunilla Iñárritu{footnote} Alfredo Lagunilla Iñárritu, Historia de la Banca y Moneda en México. Editorial JUS. México D.F.,1981{/footnote} points out that the silver “cuartillas” described above were insufficient to satisfy the needs for small change; even Viceroy Felix Maria Calleja in 1814 -when authorizing the coins that concern us- addressed the same reasons. Furthermore, Ricardo Fernández Castillo{footnote} Ricardo Fernández Castillo, Los enigmas en la formación del sistema monetario mexicano durante la transición de la Nueva España al México independiente. Thesis to obtain the degree of Doctor en Historia. El Colegio de México, Centro de Estudios Históricos. México, 2019{/footnote} explains the main objectives of issuing minor copper coins in the period were:

1. A response to the increasingly Insurgent money flows, mainly made of copper,
2. An attempt to extinguish the use of unofficial currency, such as tlacos, pilones, and other local coins,
3. Consolidation of the role of the Mexico City mint, struggling to achieve a path that would give it back the power lost since 1810,
4. To earn a position of useful and legitimate fiat currency, above its rebel counterparts.

In other words, the purpose was to facilitate retail trade and reduce the use of unofficial means of exchange, as well as to respond to the revolutionary issuers of fiduciary currency.

To understand why these coins were authorized at the end of the viceroyalty, we need to talk about the so-called “moneda del pueblo” (people’s currency), the existence of unofficial currency. José Enrique Covarrubias{footnote} José Enrique Covarrubias, “La Moneda de Cobre en México 1760-1829. Una perspectiva administrativa”, in La Moneda en México 1750-1920, (J. A. Batiz & J. E. Covarrubias, coord), Instituto de Investigaciones Dr. José María Luis Mora. México D.F.,1998{/footnote} explains why it was difficult to introduce small copper coins:

“Although the problems caused by the use of tlacos existed from early days of the colonial period, it was not until the middle of the 18th century that they began to be a reason for continuous discussions, to the point of inciting the highest authorities of the Spanish empire to a deep consideration of them themselves. Around 1760, laws and regulations are published on the conditions for circulation of the aforementioned tlacos. [...] The final intention [...] is none other than to request an official minting of copper coins that puts an end to the scams made by local merchants when they give and accept change [...]. The proposal, however, ran into opposition from the powerful Consulate of Merchants from Mexico City, reluctant to any initiative for copper coins endorsed by the king. For major businesses, a massive mintage of copper coins obviously represented the risk of having to admit official copper currency instead of their own money.”

Now we can understand that although the viceregal authority recognized the need to issue low-value copper coins (vellón) there was resistance and opposition given that New Spain was a silver economy, with privileges for major merchants. Moreover, the same author also mentions the technical difficulties in producing copper coins.

“One of the fundamental elements (in coining copper) was the lack of adequate techniques for casting and especially refining that metal […] the workers of the copper mines in the Michoacán area were not characterized by an innovative spirit regarding such works […] copper is a metal that comes in many different qualities and that often requires being properly refined to have it in its purest possible presentation, New Spain copper was from a low-quality purity”.

The technical troubles described before are another issue that helps to explain the lack of a national copper coin.

Whereas Enriqueta Quiroz{footnote}Enriqueta Quiroz, "La moneda menuda en la circulación monetaria de la ciudad de México. Siglo XVIII" in Mexican Studies/Estudios Mexicanos, 22(2), 2006, pp 219–249{/footnote} explains that more than a problem of the lack of minor coinage, the issue was fractional values in the colonial economic system, the half or quarter real was not enough and these new coins were a proposal to solve the problem.

That same argument is subscribed by Luis Gómez Wulschner{footnote}Luis Gómez Wulschner, “Vicisitudes de la Moneda de Cobre 1536-1861” in El Boletín Numismático No. 225 (Octuber -December 2009). Sociedad Numismática de México. México D.F.{/footnote}, who mentions the following:

“In 1814, by order of Viceroy Félix María Calleja, copper was minted to correct the anarchy that prevailed in those times in relation to private minor coinage. Also, in order to achieve a monetary organization, since private issues, from villages and farms, counterfeits, etc. abounded.

On this occasion, the denomination was not expressed in maravedíes, instead it used the values that people knew, “but without giving them other names than those that remain settled.” This is how coins were minted in three values: two quarters, one quarter and one eighth, equivalent to one quarter, one eighth and one sixteenth of a real respectively. The intention was to extinguish the existence of tlacos and pilones.”

Now that we know the backgrounds it is time to move to the coin themselves: the introduction of the new copper coinage can be traced in different steps: on 28 March 1814 the Consejo Superior authorized the coining of small change (moneda de vellón) in New Spain; on 4 July Virrey Calleja authorized their minting; on 23 August he published the decree stating the denominations, for immediate circulation, and then, on 20 December, a proclamation ordered that prices be given in the new currencies and forbade their refusal{footnote}Brad Yonaka, A variety guide to the silver and copper coinage of the Mexico City Mint 1772-1821, Agorocu Consulting Incorporated, United States, 2020{/footnote}.

Special emphasis needs to made regarding the authorization given by Viceroy Calleja to mint three new coins, -struck by his own initiative{footnote}ibid.{/footnote} - he argued that: “…in order to prevent the existence of the hateful private currency as tlacos y pilones. We look to fight against the circulation of these types of coins and establish a safe national money for all the people in the State and for their interests…”

KM-63. 1814 1/8 Real (1/4 Tlaco) (Stack’s-Bowers NYINC Auction, 19 January 2023, lot 42616)

1/4 Real 1814. Stack´s Bowers, June 2022 World Collectors Choice Online auction, lot #72032

2/4 Real 1815. Aureo & Calico, auction 389, lot #148

The design of the coins is interesting{footnote}for more information, see Yonaka, op. cit.{/footnote}, the aforementioned decree said: “… carrying on the obverse the name of our grand and beloved sovereign Ferdinand VII, the initial of the Royal Mint, and the sign that represent the value, in the other side the shield of Castilla and Leon…”

We can notice on the reverse two “F” letters intertwined and inside a “VII” at the center, all crowned, to the left the Mexico City mark and to the right the value, the inscriptions surrounding the coin “FERDIN-VII-D-G-HISP-REX” (Ferdinand VII by the grace of God King of Spain), and the date of the year in the exergue. On the obverse, surrounding a laurel wreath, is at the center the Bourbon shield with castles, lions and a fleur-de-lis.

However, it is relevant to notice that all the described designs were hybrid of two previous pieces already minted, on the one hand an 1808 Madrid proclamation medal of the same king and for the other side a Segovia 8 maravedis, as the following pictures illustrate:

Ferdinand VII, proclamation medal, Madrid, 1808. Classical Numismatic Group, auction 363, lot #491.

8 Maravedís 1808, Charles IV. Aureo & Calico, auction 258, lote #263

The ornate design on the obverse was originally created in 1770 by the engraver Tomas Francisco Prieto, together with the bust type monetary family (circulating since 1772 in Mexico).

Production started in July 1814. The quantity minted are the following:

Year	Total production amount, all copper denominations, cumulative amount in pesos
1814	103,555	All values produced.
1815	101,356	All values produced.
1816	125,281	Only ¼ and 2⁄4 produced.
1821	12,500{footnote}12,700 other authors{/footnote}	Only 2⁄4 produced.
Total	342,962

The mintage was irregular in the first three years of production. Pilar Gonzalez Gutiérrez{footnote}Pilar Gonzalez Gutierrez, "Creación de la primera Casa de Moneda en Nueva España" in Estudios de Historia Social y Económica de América, No. 12, pp. 55-72. Universidad de Alcala. Espana, 1995{/footnote} in her work records data from the Indies Archives in Spain, that shows the monthly production, and that any records were found regarding copper striking in 1821.

Month	1814	1815	1816
January	0	10,000	0
February	0	11,300	0
March	0	10,700	0
April	0	13,600	30,000
May		10,400
June
July	34,900	15,000	30,000
August	16,000
September	19,870
October	14,900		30,000
November		17,000	30,000
December	17,885	13,356	5,281
Total:	103,555	101,356	125,281

 
As a hypothesis, the reason why minting was suspended after three continuous years of fairly uniform production, is probably due to the appeasement of the war conflicts, which partially ceased by the middle of the decade, added to the sufficient quantity produced in stock. On the other hand, the reduced amount of production for the last year is likely due to the early conclusion of the viceregal administration, with multiple changes in 1821.

In addition, although the initial circulation was foreseen mainly for Mexico City, a significant amount of copper coin was sent to various areas of the Viceroyalty{footnote}Fernández Castillo, op. cit,{/footnote}:

Remittances of copper currency sent to other territories. (1815)
Guanajuato	8,500 pesos
Valladolid	4,500 pesos
Querétaro	3,000 pesos
Puebla	10,000 pesos

Further, Ben Nibert{footnote}Nibert, op.cit.{/footnote} argues - with reason - that confusion exists in the collectors’ guild regarding the correct reading of the issued denominations, since their value was determined by three different factors: (i) the value engraved on the coin, (ii) the value granted by the government and (iii) the value named colloquially by the people: the same theory is shared by Brad Yonaka{footnote}Yonaka, op. cit.{/footnote}. Therefore, the following information is provided for a better understanding:

Value engraved:	Value Spanish system:	Popular name:	KM#
1/8	1/16 Real	Pilon (a half )	59
1/4	1/8 Real	Tlaco	63
2/4	1/4 Real	Senal	34

 
 The reasons that caused the end of the copper coins are headed by the Independence movement, culminating in victory in the last year of production. However, it is well known that the production of silver coins with the royal bust continued beyond 1821; with the copper metal this was not the case due to:

• Rumors spread by the Insurgents that the issue of copper coins would withdraw all the silver and gold coins from circulation.

• It is a fact that the coins helped with previous trade issues related to minor coinage, but they also worsened the diversity of monetary types. That same explanation is shared by Brad Yonaka (2020) when he asserts “...The total coin produced were completely inadequate to the task of flushing out tlacos.”

• Rejection and resistance: business and shops preferred their own minor coinage (that gave them private benefits) to a national coin not regulated by them.

• Counterfeits.

Finally, the also named “Calleja coins” continued to circulate decades beyond, their total amortization (withdrawn for new coins) would not come until the Antonio López de Santa Anna administration in the 1840s.

For more information consult Chapter VI, page 203 to 235, Chapter VI, of La casa de moneda en México bajo la administración borbónica 1733-1821, by Victor Manuel Soria Murillo, available on the USMexNA online library.

Coinage of Ferdinand VII

The amounts coined during Ferdinand's reign were:

	Gold	Silver	Copper	Total
1809	1,464,818.00	24,708,164.31¼		26,172,982.31¼
1810	1,095,504.00	17,950,684.43⅜		19,046,188.43⅜
1811	1,085,364.00	8,956,432.34⅜		10,041,796.34⅜
1812	381,646.00	4,027,620.09⅜		4,409,266.09⅜
1813		6,133,983.06¼		6,133,983.06¼
1814	618,069.00	6,902,481.56¼	103,555.00	7,624,105.56¼
1815	486,464.00	6,454,799.62½	101,356.62½	7,042,620.25
1816	960,393.00	8,315,616.03⅛	125,281.75	9,401,290.78⅛
1817	854,942.00	7,994,951.00		8,849,893.00
1818	533,921.00	10,852,367.93¾		11,386,288.93¾
1819	539,377.00	11,491,138.62½		12,030,515.62½
1820	509,076.00	9,897,078.12½		10,406,154.12½
1821	303,504.00	5,600,022.43⅜	12,700.00	5,916,226.43⅜
	8,833,078.00	129,285,339.58⅝	342,893.37½	138,461,310.965⅛