Silver coins are valuable nowadays because they are often given as priceless gifts or tokens. However, silver coins are not a particularly frequent present. However, there was a period in history when almost everyone owned and used silver coins. But at one time, for a very important reason, their circulation unexpectedly ceased. Are you aware of its nature?
According to historical accounts, the East India Company released the first silver coin, worth Re 1, in 1757. This coin, which had King George II’s face on it, weighed around 11.5 grams. This first one-rupee coin was initially minted on August 19, 1757, in Kolkata, then known as Calcutta.
The East India Company kept on minting these coins from 1757 until 1835. The British administration continued to produce silver coins even after establishing a stronger presence in India. According to reports, these coins were widely utilized in everyday transactions, and workers paid on a daily rate of between Rs 3 and Rs 4 would normally get four coins in exchange for their labor.
However, the first was released in 1917, which caused the number of coins in circulation to decrease. King George V. was depicted on this new note. Due to its widespread usage, silver also became rare during World War I, creating a scarcity of this priceless metal. Coins were scarce and more expensive, making it harder for the British government to mint them. They thus switched to produce notes with the picture of the popular one-rupee coin instead.
Girish Veera, a collector from Mumbai, said, “During World War I, silver prices surged, prompting the printing of notes bearing the image of the prevalent one-rupee coin.” “Since then, every Re 1 note has featured the one-rupee coin of that year,” he said. The silver coin was eventually returned, but with less silver and less of it in circulation.