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Farewell Sixpence and Shilling! a Hundred Pennies Make a Pound Alex Thomson

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Farewell Sixpence and Shilling! a Hundred Pennies Make a Pound Alex Thomson University of Mississippi eGrove Haskins and Sells Publications Deloitte Collection 1970 Farewell sixpence and shilling! a hundred pennies make a pound Alex Thomson Follow this and additional works at: https://egrove.olemiss.edu/dl_hs Part of the Accounting Commons, and the Taxation Commons Recommended Citation H&S Reports, Vol. 07, (1970 autumn), p. 24-26 This Article is brought to you for free and open access by the Deloitte Collection at eGrove. It has been accepted for inclusion in Haskins and Sells Publications by an authorized administrator of eGrove. For more information, please contact [email protected]. ByAlexThomson We are the last of the major countries inheriting European civilization to give up our ancient currency system. The United States, with the enterprise of their newly independent people, were first, in 1792. They introduced a dollar/ cent currency based on the silver dol­ lar which already circulated widely in America. France followed the next year, discarding a system of livres, sous and deniers with similar origins to our own, in favor of a franc/centime sys­ a specific weight of silver, about Farewell tem. The Commonwealth countries 1/240th of a pound, or 22/2 grains. The have now changed. We, the Republic origin of this weight is not known, but Sixpence of Ireland and the small islands round it is similar to that of a late Roman coin our coasts are the only such countries (Thrymsa) still circulating in Europe still keeping to the old system. in the eighth century, when the first and Shilling! Three units of currency: pounds, pennies are known to have been struck shillings and pence, and three systems in England. The authorized version of a Hundred of notation: 10, 12 and 20. And why the Bible translated the Roman coin mark pence with a d, and pounds with denarius as a penny, and when today Pennies an L when shillings are marked with we write d for pence we are referring an s? It is confusing to our own school­ to this Roman coin. The symbol for our children, confusing to our visitors from pound (<£.) is an ornamental L, the Make abroad and needlessly slow. initial letter of libra, the Latin for The difficulties of our present system pound. a Pound have been apparent for many years. Although the Romans introduced To any American—in fact to anyone The first suggestion of a decimal cur­ trade and currency from the Indian from the rest of the world who has rency recorded in England was in the Ocean to the Atlantic, and from the visited Britain—the ancient British translation of a suggestion by a Dutch­ Danube to the Sahara, they never in­ currency system is a source of man (Simon Stevin) in 1608 for deci­ vented a satisfactory system of express­ confusion for at least the first few days. mal currency and weights, and a num­ ing numbers. Every schoolboy learned All other currencies are based on the ber of writers during the seventeenth to use the abacus, a wire frame with decimal system, cumulating in units, century wrote of its advantages. Among beads which enabled calculations to be tens and hundreds. We count dollars them was the famous engineer and done on the decimal system. But in and cents in the same way we count architect, Sir Christopher Wren, the writing down numbers no improvement everything other than money. builder of London's famous cathedral, had been made on the old system of I For centuries in Britain, however, St. Paul's. He suggested a coin divided for one finger, of V for the five fingers twelve pence have been required to into tenths, and tenths again, "which and of X for the fingers on two hands. make a shilling and twenty shillings to continual division will be very proper For a hundred and a thousand the ini­ make a pound. As a result, visitors make for accounts." tial letters (C and M) for these words mistakes checking a hotel or restaurant Little more was heard of these pro­ were used. bill. American servicemen in World posals until 1824 when a motion for When the English first introduced War II had trouble with their change decimal currency was put forward in their silver pennies they needed some until a little fast action with poker and the House of Commons. Royal Com­ way of counting them up to one pound dice taught them to think fast in British missions were appointed in 1857 and weight. To help them count money the money terms. One can imagine the 1920; both reported unfavorably. In Saxon and medieval accountants and difficulties met by the British i960 a committee formed jointly by the treasurers used a chequerboard, simi­ schoolchild, or the time lost by the British Association for the Advance­ lar to that used for the game of chess. bookkeeper in small business ment of Science and the Association of Pennies were placed in the penny line transactions, when the system of adding British Chambers of Commerce re­ of squares until they reached twelve, (or dividing) money does not ported in favorable terms. This report when the pile or a counter was trans­ correspond to the decimal system of led the Government to decide in 1961 ferred to the shilling line of squares. counting. that a change to decimal currency was When twenty shillings had been Now all this is going to be changed. desirable, and it appointed the Hals- reached this was transferred to the In February 1971 Britain is joining the bury Committee to advise on the best pound line. Counting by twenties con­ rest of the word in shifting its money method to proceed. tinued until a hundred pounds was system to a decimal base. Mr. Alex On February 15, 1971 the old sys­ reached, and so on. It is from this prac­ Thomson of the London office of tem finally goes. To appreciate the full tice that the Government's chief ac­ Deloitte, Plender, Griffiths & Co. significance of this historic change we countant, the Chancellor of the Ex­ prepared a paper on currency must consider its origins. chequer, derives his title. decimalization for the 1969 seminar of Until 1914 all the main currency The first coins of twelve pence value the United Kingdom staff of Deloittes. units, in this as in other countries, ob­ were not issued until about 1544. The HirS Reports presents here a tained their value from the weight of name shilling means a piece cut off shortened version of Mr. Thomson's gold or silver which they contained. a larger piece, and may owe its origin paper explaining the coming The first penny, accordingly, contained to the practice in previous centuries 25 changeover and the history behind it. tions will be Mp, lp, 2p, 5p, lop and 5op. The lowest three in value will be bronze coins, with weight proportional to their value. The new 5p and lop pieces, already in circulation, are round cupro-nickel coins, with the same value and the same weight and size as the present one shilling and florin (two shilling) coins. A novelty is the new 5op coin (equivalent to the 10 shilling note) of using a piece cut off a silver amulet which is also made of cupro-nickel but as a means of payment. is seven-sided—a shape not previously During the tenth and eleventh cen­ used for currency anywhere in the turies, while the medieval English mer­ world. It is the only new coin which chants, stewards and chancellors of the displays Britannia, the seated woman exchequer were struggling with £, s, with a shield, which first appeared on d and Roman numerals, the Arabic the Roman Emperor Hadrian's coin in numerals became known in Europe. So 134 AD, was reintroduced by Charles for a thousand years this knowledge II in 1672 on the first copper half­ has been available to make a simple penny made and has continued on our system of currency; the change which coinage since then. takes place on February 15, 1971 has As professional accountants we can been a long time coming. be thankful the Government reached In December 1961 the Government the decision to retain the pound. Our appointed the Halsbury Committee to wives might find shopping easier with a box of matches can contain more or advise on the form which a decimal the familiar shillings retained in the fewer matches. The length of a fare currency might take, the timing of the currency. But we in accounting have zone for a bus can be altered, or the changeover and the probable cost of rarely to deal with shillings and pence, length of time on a telephone. For our such a proposal. Statements made in and the retention of the pound means clients a great deal of time and man­ the House of Commons following this that no alteration is required to finan­ power will be involved in these conver­ appointment showed that the Govern­ cial and accounting records of the past sions, but it seems unlikely that it will ment had already decided in favor of to make them comparable with the new have much effect on our work as audi­ a decimal currency, unless the new currency. tors. committee found serious difficulties. Although the system adopted, £, p I have concluded that the effects of The committee reported in September and %p, can be adversely criticized as the decimal currency on our work as 1963, making these main recommenda­ not being a true decimal currency, the auditors will embrace these: tions: adoption by the United King­ decision, taken by banks and agreed 1.
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