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Gold coin, minted in Turkey
AROUND 550 BC
‘As rich as Croesus’. It’s a phrase that echoes down the centuries and is still used in advertisements for get-rich-quick investment wheezes. But how many of those who use it ever pause to think about the original King Croesus, who, until a twist at the end of his life, was indeed fabulously rich and, as far as we know, very happy with it?
Croesus was a king in what’s now western Turkey. His kingdom, Lydia, was among the new powers that emerged across the Middle East about 3,000 years ago, and these are some of the original gold coins that made Lydia and Croesus so rich. They are examples of a new type of object that would ultimately become a power in its own right – coinage.
We’ve all grown so accustomed to using little round pieces of metal to buy things that it’s easy to forget that coins arrived quite late in the history of the world. For more than 2,000 years states ran complex economies and international trading networks without a coin to hand. The Egyptians, for example, used a sophisticated system that measured value against standard weights of copper and gold. But as new states and new ways of organizing trade emerged, coinage began to make an appearance. Fascinatingly, it happened independently in two different parts of the world at almost the same time. The Chinese began using miniature spades and knives in very much the same way that we would now use coins, and virtually simultaneously in the Mediterranean world the Lydians started making actual coins as we would still recognize them – round shapes in precious metals.
These early Lydian coins come in many different sizes, from about the scale of a modern British 1p piece right down to something hardly bigger than a lentil. Lydian coins are not all the same shape. The largest one here is a kind of figure-of-eight shape – an oblong, slightly squeezed in the middle – and on it are a lion and a bull facing each other as if in combat, and about to crash together head-on.
These coins were minted under Croesus around 550 BC. It’s said that Croesus found his gold in the river that once belonged to the legendary Midas – he of ‘the golden touch’ – and it’s certain that the region was rich in gold, which would have been extremely useful in the great trading metropolis of Lydia’s capital city, Sardis, in north-west Turkey.
In small societies there isn’t really a great need for money. You can generally trust your friends and neighbours to return any labour, food or goods in kind. The need for money, as we understand it, grows when you are dealing with strangers you may never see again and can’t necessarily trust – that is, when you’re trading in a cosmopolitan city like Sardis.
Before the first Lydian coins, payments were made mostly in precious metal – effectively just lumps of gold and silver. It didn’t really matter what shape the metal was, just how much it weighed and how pure it was. But there is a difficulty. In their natural state, gold and silver are often found mixed with each other and, indeed, mixed with other less valuable metals. Checking a metal’s purity was a tedious task, likely to hold up every business transaction. Even once the Lydians and their neighbours had invented coinage, about a hundred years before Croesus, this problem of purity still remained. They used the naturally occurring mixture of gold and silver, not the pure forms of the metals. How could you know exactly what a particular coin was made of and therefore what it was worth?
The Lydians eventually solved this problem, speeded up the market and, in the process, became hugely rich. They realized that the answer was for the state to mint coins of pure gold and pure silver, of consistent weights that would have absolutely reliable value. If the state guaranteed it, this would be a currency that you could trust completely and, without any checking, spend or accept without a qualm. How did the Lydians manage to pull this off? Dr Paul Craddock, an expert in historical metals, explains:
The Lydians hit on the idea of the state, or the king, issuing standard weights and standard purity. The stamps on them are the guarantee of the weight and the purity. If you’re guaranteeing the purity, then it is absolutely necessary that you have the ability not just to add elements to the gold but also to take them out. To some degree, taking out elements like lead and copper is not too bad; but unfortunately the main element that came with the gold out of the ground was silver, and this had not been done before. Silver is reasonably resistant to chemical attack, and gold is very resistant to chemical attack. They took either a very fine powder of the gold straight from the mines, or else got bigger pieces of old gold hammered out into very thin sheets and put these in a pot along with common salt, sodium chloride. They then heated that in a furnace to about 800 degrees centigrade, and ultimately they were left with pretty pure gold.
So the Lydians learnt how to make pure gold coins. No less importantly, they then employed craftsmen to stamp on them symbols indicating their weight, and thus their value. These first coins have no writing on them – dates and inscriptions on coins were to come much later – but archaeological evidence allows us to date our coins to around 550 BC, the middle of Croesus’s reign.
The stamp used to indicate weight on his coins was a lion, and as the size and therefore the value of the coin decreased, ever smaller parts of the lion’s anatomy were used. So, for example, the smallest coin shows only a lion’s paw. This new Lydian method of minting moved the responsibility for checking the purity and weight of the coins from the businessman to the ruler – a switch that made the city of Sardis an easy, swift and extremely attractive place to do business in. Because people could trust Croesus’s coins, they used them far beyond the boundaries of Lydia itself, giving him a new kind of influence – financial power. Trust is of course a key component of any coinage – you’ve got to be able to rely on the stated value of the coin, and on the guarantee that it implies. It was Croesus who gave the world its first reliable currency. The gold standard starts here. The consequence was great wealth.
It was thanks to that wealth that Croesus was able to build the great Temple of Artemis at Ephesus – the rebuilt version of which became one of the Seven Wonders of the Ancient World. But did Croesus’s money bring him happiness? We’re told that he was warned by a wise Athenian statesman that no man, however rich and powerful, could be considered happy until he knew his end. Everything would depend on whether he died happy.
Lydia was powerful and prosperous, but it was threatened from the east by the rapidly expanding power of the Persians. Croesus responded to this threat by seeking advice from the famed Oracle at Delphi. He was told that, in the coming conflict, ‘a great empire would be destroyed’ – the archetypal Delphic utterance that could be interpreted either way. It was his own empire, Lydia, that was conquered, and Croesus was captured by the great Persian king Cyrus. In fact, his end wasn’t so bad. Cyrus shrewdly appointed Croesus as an adviser – I like to think as his financial adviser – and the victorious Persians quickly adopted the Lydian model, spreading Croesus’s coins along the trade routes of the Mediterranean and Asia, and then minting their own coins in pure gold and pure silver at Croesus’s mint in Sardis. It echoes the way the Kushites absorbed Egyptian culture when they conquered their northern neighbour.
It’s probably not a coincidence that coinage was invented at pretty much the same time in China and in Turkey. Both developments were responses to the fundamental changes seen across the world around 3,000 years ago, from the Mediterranean to the Pacific. These military, political and economic upheavals brought us not only modern coinage, but something else that’s resonated till the present day – new ideas about how people and their rulers saw themselves. In short, the beginning of modern political thinking, the world of Confucius and Classical Athens. The next stage of that journey starts with the empire that toppled Croesus – the Persians.