History of the Qaraunah Turks in India c8.125

c8.125

Hawālis,⁶⁰ muqaddams and Khūts suppressed their gold and silver, forged token coins in abundance, and paid their liabilities with them with the result that the state lost heavily, whereas private individuals made enormous profits. The goldsmiths forged copper tokens in their workshops, and everybody deceived the government by paying his dues in the new coins.⁶¹ Firishta is right in saying that the mint was not properly controlled.⁶² Foreign merchants made their payments in copper to the home manufacturers, though they themselves received for the articles they sold silver and gold in foreign markets. It was difficult to distinguish the productions of the royal mint from private forgeries, for there was no machinery to mark the difference between the two kinds of coins, and there was no check imposed by the state on private manufacture. The new currency exceeded the supply of gold and silver in circulation. Naturally, when the inferior money was put upon the market in large quantities, the superior money was driven out of it through the operation of Gresham's law. The value of gold and silver on account of their scarcity caused by universal suppression rose beyond all proportion, and Barani writes that the "gold coins from their great scarcity rose fourfold and five-fold in value," and in those places where the Sultan was feared 'the gold tankah rose to be worth a hundred of the copper tankahs.' The wise men who knew that the measure was bound to be short-lived suppressed their gold; and made their purchases with copper.⁶³ The treasury was filled with copper and brass coins; trade with foreign countries came to a stand-still, and all business was paralysed. A great confusion prevailed. The new coins were refused on all sides and became as valueless as 'pebbles or potsherds.'