Coin Clipping¶
Coin clipping refers to the practice of shaving or filing small amounts of precious metal from the edges of coins, then passing the lightened coins at full face value while retaining the clippings for personal profit. This form of currency debasement represents one of the oldest methods of monetary fraud and has been practiced since ancient times wherever precious metal coinage has circulated.
Method and Practice¶
Clippers would use various tools—shears, files, or specialized devices—to remove thin layers of gold or silver from coin edges. Because early coins had irregular, hand-struck edges, the removal of small amounts was difficult to detect in normal commerce. Skilled clippers could process many coins, accumulating substantial quantities of precious metal while the debased coins continued to circulate.
The practice became sufficiently widespread in many societies to pose a serious threat to monetary stability. As more coins entered circulation with reduced metal content, the effective debasement of the money supply occurred without government action, eroding trust in the coinage.
Legal Consequences¶
Authorities recognized coin clipping as a form of theft from both the state (which claimed monopoly over coinage) and the public (who received debased money). Punishments were severe across civilizations. In medieval England, clipping was classified as high treason, punishable by death. The brutal execution methods—hanging, drawing, and quartering for men; burning at the stake for women—reflected the seriousness with which authorities viewed the offense.
Despite harsh penalties, enforcement proved challenging. Clipping could be done privately, the evidence (lightened coins) was difficult to attribute to specific individuals, and the profit incentive remained strong, particularly during periods when the official precious metal content of coins made them worth more as bullion than as currency—a manifestation of Gresham's Law.
Technological Response¶
The persistence of coin clipping drove a technological innovation in monetary production: the milled edge. By creating raised patterns, reeding, or lettering on coin edges during the minting process, authorities made any subsequent removal of metal immediately visible. The English mint introduced milled-edge coinage in the late 17th century during the Great Recoinage of 1696, which withdrew and reminted England's severely clipped silver coins.
This innovation effectively ended widespread coin clipping, though it did not address the more fundamental problem of official debasement by governments themselves. While individual clipping became technologically difficult, authorities retained the power to reduce the precious metal content of newly minted coins—essentially conducting official clipping at an industrial scale.
Historical Significance¶
Coin clipping illustrates a recurring theme in monetary history: when money possesses intrinsic value (precious metal content) distinct from its face value, incentives arise to exploit the difference. The practice demonstrates how seigniorage—the profit from issuing money—tempts not only governments but private actors.
The eventual solution through milled edges represents one of the few successful technological constraints on debasement, though it addressed only unofficial debasement by private individuals while leaving governments free to continue their own monetary dilution through official channels.