Billon Coin

Billon Coin

 

a small-denomination devalued metallic coin whose face value exceeds the value of its metal content and its minting expense. It is a replacement for gold and is, in the final analysis, a sign of value. Used mainly in the retail trade, the billion coin fulfills only the function of a means of exchange and, to a limited extent, of a means of payment. Since 1933 only billon coins have been put into circulation by all countries.

Billon coins are minted from low-grade silver and from copper, nickel, aluminum, and other metals. The minting of billon coins, in contrast to minting coins of full value, brings the state a monetary profit and is a closed minting—that is, it is produced from metal belonging to the state. The release of billon coins is limited by the exigencies of monetary circulation, and their distribution among coins of various denominations and their maximum wear limits are decided on the basis of practical experience. The release of billon coins is strictly limited by the requirements of monetary circulation. In tsarist Russia, the release of billon coins was limited to 3 rubles per capita. In the USSR, small-denomination coins are produced from nonprecious metals in denominations of 1 ruble and 50, 20, 15, 10, 5, 3, 2, and 1 kopek.

M. IU. BORTNIK

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(3) That edict stipulated that the billon coins produced by the new hydraulic machine at Segovia were to contain no silver.
With the rise to power of Philip III and his advisor, the Duke of Lerma, monetary policy went down a path which we would today term "inflationary." The five first years of his reign were characterized by a return to the minting of low-grade billon coins or coins with no silver content at all as per the late schemes of his father.
In the prologue, in case it was not clear enough through a simple reading of the text, he underscored that the issue of monetary policy respecting billon coins was among the most important facing Spain at the time and it was what had motivated him to pen the present work.
Small coins lose a certain percentage when traded for silver, as is the case with billon coins and ardites in Spain, or when they are used for large payments.