INTRODUCTION OF COINAGE In the early 1700s, the Superior Government of Manila issued a document that recommended, in part, that coinage be introduced into the Marianas since the lack of currency was supposedly the principal cause of certain problems or ills that needed correction. In 1706, the Very Reverend Gerardo Bowens, S J, Vice Provincial of the Marianas' Mission, commented on the document and indicated that it was not clear to him how such ills as oppression and injustice could be corrected by introducing coinage. The reverend father went on to state that the oppression and injustices inflicted on the Chamorros could be corrected by: not working them excessively; not abusing them; and not compensating them with money, but with items such as "bolos" (machetes), "carajayes" (iron frying pans) and other tools and ornaments that would be of use to them.
The attempt to introduce coinage into Guam in the early 1700s was unsuccessful. Coinage was eventually introduced into Guam but not because it was mandated by government officials in Manila, but because of the start-up of various economic activities as well as the need for a medium of exchange as Guam's contacts with the outside world increased. These contacts were primarily through the Philippines. For example, there were frequent personnel transfers and visits (involving Spaniards, Filipinos, Mexicans, and South Americans) between the Philippines and Guam. Also, supplies for the colony in Guam often came from the Philippines. And last but not least, Guam was initially ruled as a colony separate from the Philippines but its administration was transferred from the Viceroy of Mexico to the Governor-General of the Philippines in 1817. Because of these links between Guam and the Philippines, it can be deduced that the coinage used in the Philippines was also used in Guam during the Spanish era. Although Spain and the Philippines played dominant roles in introducing coinage into Guam, visiting ships from other countries also imported money into Guam.
COUNTERSTAMPED COINS The first coinage used by the general populace on a large scale in both colonies were counterstamped coins. On October 31, 1828, the Governor-General of the Philippines inaugurated the counterstamping of Spanish-American coins during the reign of Spain's Ferdinand VII (1808 to 1833). Use of the first counterstamps (between 1828 and 1830) was politically rather than economically motivated.
Because of the numerous coins minted in the newly formed republics such as Mexico, Bolivia and Peru that bore slogans pertaining to freedom and liberty, Spanish officials became concerned regarding the influence these coins would have on their subjects in their colonies in the Philippines and Guam. Hence, the early counterstamps were serrated designs that were intended to obliterate the lettering around the rims of coins from the former Spanish-American colonies. King Ferdinand's counterstamp "F.7" was implemented in 1830. This counterstamp was retired in 1834 after the death of Ferdinand VII and was replaced by "Y-II", a counterstamp for Isabel II, Spain's monarch from 1833-1868.
Consequently, during the period 1828 to 1837, foreign money was imported into Guam and the Philippines from the insurgent republics of Spanish-America (primarily Mexico, Bolivia and Peru). Large quantities of silver coin were counterstamped by Spanish officials in Manila as "coin of the realm". The Mexican 8-reales piece was the predominate coin counterstamped. Note that silver coins became Philippine colonial coinage upon being counterstamped. Many of the coins counterstamped by the Spaniards also bore chopmarks. A chopmark was a counterstamp by either a Chinese merchant or banker. The Chinese placed chopmarks on silver coins as a defense against counterfeit coins as a chopmark authenticated a coin as being genuine.
ECONOMIC ACTIVITIES The use of the counterstamped coinage in Guam coincided with a period of economic reform instituted by Governor Francisco Ramon de Villalobos (1831 to 1837). Villalobos established new economic policies that allowed for private enterprise. For example, he implemented the collection of port fees from visiting ships and initiated the production of articles for export including dyewood, indigo, tortise shell, mother-of-pearl, and arrowroot. Additionally, Villalobos changed the name of the "governor's store" (which had been in existence since the late 17th century) to "government store" and discontinued the governor's monopoly on the store.
Port visits by whaling ships (primarily American and British) also spawned economic activity. Starting in 1823, whalers stopped in Guam for thirty or more days for ship repairs, to take on water and provisions, and for rest and recreation. Approximately thirty to sixty whalers stopped in Guam and Saipan each year. Each whaling vessel spent about 600 pesos during each port visit and the whalers expended a total of 40,000 pesos per year. Selling provisions, "aquardiente" (locally distilled liquor), other local products, imported articles and providing entertainment to the whalers were the primary sources of income for local residents during the 1840s. The commercial activity generated by the whalers was short lived, however. It lasted only thirty years (between the 1820s and 1850s) as the whaling vessels switched their port visits to New Zealand and Hawaii in order to follow the whale to other feeding grounds.
PERIOD OF UNCERTAINTY
Spanish officials issued an order to halt the counterstamping of foreign coins in 1837. Consequently, confusion resulted as there was no uniformity in the coinage being circulated. During the period 1837 to 1861, Spanish American coins were used alongside Spanish maravedis, quartos and pesetas. Maravedis are copper coins that were minted in Spain. Thirty-four maravedis is equivalent to one "real". The quartos are copper coins that were manufactured in the Philippines by Chinese contractors and were used as colonial currency in both the Philippines and Guam. Four quartos is equivalent to one "real".
An interesting coin that was minted in Spain during this period is the duro, a silver coin that was valued at 20 reales. Transactions involving the duro are described in Governor Luis de Ibanez y Garcia's "History of the Marianas, Caroline and Palau Islands" which was written in 1886. Ibanez-Garcia describes a conversation between a Chamorro and a Spaniard who had just arrived in port. While being transported by boat from ship to shore, the visitor inquired as to the cost of the boat ride. The Chamorro replied, " a half duro". The Chamorro also informed the Spaniard that transportation between Piti and the capital city of Agana, a distance of two Spanish leagues (about seven miles), would cost three and a half duros-two and a half for a wagon, and one duro for a horse. Both coins bear the bust of Isabella II.
ROYAL MINT
In 1857, a royal decree by Queen Isabel II provided for the creation of a Royal Mint in Manila. A second decree in 1861 called for the removal of Spanish-American silver coins from circulation and provided for new silver coinage as well as gold to be made at this mint. Between 1861 and 1868, gold was coined in three denominations-4 pesos, 2 pesos, and 1 peso. Each denomination bears the bust of Isabella II. A second series of 4-pesos gold pieces was minted between 1880 and 1885. Each of these 4-pesos coins bears the bust of Alphonso XII.
Silver Coinage by the Manila mint began in 1864 with three denominations-10, 20, and 50 centimos. The only indication that these coins were intended for circulation in the Philippines and Guam was their valuation-not in Spanish reales, pesetas, or escudos, but in fractions of a Philippine peso. Like the gold coins, the silver coins were produced by the royal mint until the 1880s. There were two series of silver coins minted. The first series (1864 to 1868) bears a bust of Isabella II on the front of each denomination, while a bust of Alphonso XII adorns the front of each denomination of the second series (1880 to 1865). Although Spanish-American coins were removed from circulation by royal decree, coins from Spain per se were still used alongside Philippine coinage minted in Manila. One such coin is a 5-peseta silver coin minted in Madrid in 1870 and is displayed in the Guam Museum.
MEXICAN SILVER PESOS The most important commodity available to Europeans for trade with Chinese merchants was silver. The great majority of silver coins used for exchange came from Spanish-America-primarily from Mexico, Bolivia and Peru. The preferred coin was the Mexican peso which the Chinese referred to as "Dollar Mex". This coin was so highly thought of that in 1876, Spanish officials authorized Mexican silver pesos to be circulated at par with Philippine gold pesos. These silver coins were by far the most frequently used medium for exchange in the Philippines and Guam. They were part of the Mexican Liberty Cap series. The liberty cap on the front of the coin is a symbol of freedom dating back to ancient Rome. The coin bears a liberty cap within a glory of rays and starting in the early 1920s, began representing Mexico's freedom from Spain.
LAST SILVER PESO In 1897, a large quantity of Philippine silver pesos were made by the mint in Madrid. The words "Isles Philippines" were inscribed n the reverse side of the coin. These silver pesos were the last coins minted for use in the Philippines and Guam before the Spanish-American War. These coins were used in Guam until 1900 when Mexican coin or the American equivalent became the legal tender of Guam. They remained in circulation in the Philippines until 1904 when the U S Civil Governor in Manila declared that they would no longer be accepted as legal tender after September 30 of that year. Additional Philippine coinage used during the latter part of the century include 10-centimos, 20-centimos, and 50-centimos pieces.
TO BE CONCLUDED…….
From Calcoin News, Vol 52, No. 3, Summer 1998