Ephraimiten
Encyclopedia
From 1756, Ephraimiten were the inferior coins which dominated the economy of the kingdom of Prussia
during the Seven Years' War
. They were traded by normal citizens at the value of coins with the pre-war precious metal content, but they were in fact inferior to them in fineness
.
Veitel Heine Ephraim (1703–1775) from Berlin who produced these "fake coins" named after him "Ephraimiten".
"In Leipzig the entrepreneurs Ephraim, Itzig and company produced vast masses of low-valued money, in Tympfs, six-, three- and most often in eight penny pieces. At first they used Saxon stamps found in 1753 and later on newly-produced indentors of the Saxon type.“Emil Bahrfeldt: Brandenburgisch-preußische Münzstudien"; Berlin: Verlag der Berliner Münzblätter, 1913 (Reprint: Transpress 1986). (reference and footnote missing)
The financial gain was that the content of gold and silver was significantly lower than legally ordered, and large amounts of silver
were replaced by inferior copper
, for example.
However, the coins were initially put in circulation with their full value and accordingly yielded big profits.
The older but original coin stamps which were mainly used came from other countries, preferably from Saxony
. These Saxon coin stamps mainly dated back before 1756 and could be confiscated in the Duchy of Saxony which was under Prussian occupation at that time.
The actual fraud committed by Frederic II.
lay in the awareness of the low content of precious metal and hence lower costs per coin.
Ordinary citizens could not identify the inferior value of the coin at first sight, as coin stamps were in use that had produced full-value coins before the war. Citizens initially accepted the "Ephraimiten" still according to the (pre-war) face value
just to find out at the next occasion that the better informed merchants and, shortly after that, also the other tradesmen, artisans and innkeepers would not accept this money at its full face value (=old price of goods and services) any more.
From 1757, however, even Prussian 1/6 thaler coins were significantly reduced in fineness by Prussia
without official announcement. There are Prussian full copper counterfeits of the 1/6 thaler piece from this time which were silver-coated only on the outside. This leads to the possible assumption that in the chaos of war there were also private counterfeiters at work.
The Saxon-Polish eight penny coin, the Polish 18 penny coin (Tympf) and the golden five thaler piece, also called August d'or, or, in German "goldener August", were reduced in fineness frequently. See also Friedrich d'or
.
These coins were copied in Prussia or the mint
in Leipzig, respectively. Afterwards they were reimported to Saxony as "trade coins" by the military. Interestingly, they were still negotiable in Prussia with reduced value until 1820. By law this was published in so called "Valvationstabellen" (=tables on coin value) and at the same time they were called in for definite change and elimination.
Examples for the "real value" of two pieces of five thaler coins (August d'or) from 1758 and the Tympf according to a Prussian value table from 1820:
The fake five thaler coins differed from the real ones in their size and colour: they were thicker and had a reddish colour. As the weight had to be correct in the era of coinbalances and copper has a higher specific weight, this led to the unusual thickness of the coins to reach the "mandatory" weight.
The fraud was not as easy to identify by thickness in the case of the silver coins. Since the specific weight of copper is only thirty per cent lower than that of silver.
The "Ephraimiten" with fine metal content can be at best called a value-reduced currency coin, because they were not accepted at their full nominal value as were the "Scheidemünzen" (literally: sheath money).
Coins reduced in fineness can easily be tested for their fineness. (...)
The real value of the "Ephraimiten" could be hence be detected by the gross weight. The fraud thus worked for only three years. Through the low number of experts who were qualified enough the fraud could last longer in rural than in urban areas.
A contemporary saying about the coins went like this:
„Von außen schön, ("Nice without,
von innen schlimm, bad within,
von außen Fritz, Fritz without
von innen Ephraim!“ Ephraim within")
Kingdom of Prussia
The Kingdom of Prussia was a German kingdom from 1701 to 1918. Until the defeat of Germany in World War I, it comprised almost two-thirds of the area of the German Empire...
during the Seven Years' War
Seven Years' War
The Seven Years' War was a global military war between 1756 and 1763, involving most of the great powers of the time and affecting Europe, North America, Central America, the West African coast, India, and the Philippines...
. They were traded by normal citizens at the value of coins with the pre-war precious metal content, but they were in fact inferior to them in fineness
Fineness
The fineness of a precious metal refers to the ratio of the primary metal to any additives or impurities.A piece of alloy metal containing a precious metal may have the weight of its precious component referred to as its fine weight. For example, 1 troy ounce of 18 karat gold may be said to have a...
.
Financing the cost of war
Frederic the Great used them to finance the Seven Years War which started in 1756. By producing and issuing such coins of low value the royal treasure could make a considerable profit. This was mainly the task of the banker and court JewCourt Jew
Court Jew is a term, typically applied to the Early Modern period, for historical Jewish bankers who handled the finances of, or lent money to, European royalty and nobility....
Veitel Heine Ephraim (1703–1775) from Berlin who produced these "fake coins" named after him "Ephraimiten".
"In Leipzig the entrepreneurs Ephraim, Itzig and company produced vast masses of low-valued money, in Tympfs, six-, three- and most often in eight penny pieces. At first they used Saxon stamps found in 1753 and later on newly-produced indentors of the Saxon type.“Emil Bahrfeldt: Brandenburgisch-preußische Münzstudien"; Berlin: Verlag der Berliner Münzblätter, 1913 (Reprint: Transpress 1986). (reference and footnote missing)
The financial gain was that the content of gold and silver was significantly lower than legally ordered, and large amounts of silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
were replaced by inferior copper
Copper
Copper is a chemical element with the symbol Cu and atomic number 29. It is a ductile metal with very high thermal and electrical conductivity. Pure copper is soft and malleable; an exposed surface has a reddish-orange tarnish...
, for example.
However, the coins were initially put in circulation with their full value and accordingly yielded big profits.
The older but original coin stamps which were mainly used came from other countries, preferably from Saxony
Saxony
The Free State of Saxony is a landlocked state of Germany, contingent with Brandenburg, Saxony Anhalt, Thuringia, Bavaria, the Czech Republic and Poland. It is the tenth-largest German state in area, with of Germany's sixteen states....
. These Saxon coin stamps mainly dated back before 1756 and could be confiscated in the Duchy of Saxony which was under Prussian occupation at that time.
The actual fraud committed by Frederic II.
Frederick II of Prussia
Frederick II was a King in Prussia and a King of Prussia from the Hohenzollern dynasty. In his role as a prince-elector of the Holy Roman Empire, he was also Elector of Brandenburg. He was in personal union the sovereign prince of the Principality of Neuchâtel...
lay in the awareness of the low content of precious metal and hence lower costs per coin.
Ordinary citizens could not identify the inferior value of the coin at first sight, as coin stamps were in use that had produced full-value coins before the war. Citizens initially accepted the "Ephraimiten" still according to the (pre-war) face value
Face value
The Face value is the value of a coin, stamp or paper money, as printed on the coin, stamp or bill itself by the minting authority. While the face value usually refers to the true value of the coin, stamp or bill in question it can sometimes be largely symbolic, as is often the case with bullion...
just to find out at the next occasion that the better informed merchants and, shortly after that, also the other tradesmen, artisans and innkeepers would not accept this money at its full face value (=old price of goods and services) any more.
From 1757, however, even Prussian 1/6 thaler coins were significantly reduced in fineness by Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...
without official announcement. There are Prussian full copper counterfeits of the 1/6 thaler piece from this time which were silver-coated only on the outside. This leads to the possible assumption that in the chaos of war there were also private counterfeiters at work.
The Saxon-Polish eight penny coin, the Polish 18 penny coin (Tympf) and the golden five thaler piece, also called August d'or, or, in German "goldener August", were reduced in fineness frequently. See also Friedrich d'or
Friedrich d'or
The Friedrich d'or was a Prussian gold coin nominally worth 5 silver Prussian Reichsthalers. It was used from 1741 to 1855 and since it was a silver standard regular issue coin and trade coin at this time, it had a different purpose to domestic silver coinage or Kurantgeld, the so-called window...
.
These coins were copied in Prussia or the mint
Mint (coin)
A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...
in Leipzig, respectively. Afterwards they were reimported to Saxony as "trade coins" by the military. Interestingly, they were still negotiable in Prussia with reduced value until 1820. By law this was published in so called "Valvationstabellen" (=tables on coin value) and at the same time they were called in for definite change and elimination.
Examples for the "real value" of two pieces of five thaler coins (August d'or) from 1758 and the Tympf according to a Prussian value table from 1820:
- Two "middle August d'or" (nominal 10 talers) = six thalers, 21 pennies, six Pfennige (Prussian Courant), i.e. there was a difference of at least one and a half thalers to the nominal value per five thaler coin
- One eight penny coin = three pennies (Prussian courant), i.e. a difference of five pennies (however, the Saxonian penny was slightly higher in value than the Prussian)
The fake five thaler coins differed from the real ones in their size and colour: they were thicker and had a reddish colour. As the weight had to be correct in the era of coinbalances and copper has a higher specific weight, this led to the unusual thickness of the coins to reach the "mandatory" weight.
The fraud was not as easy to identify by thickness in the case of the silver coins. Since the specific weight of copper is only thirty per cent lower than that of silver.
The "Ephraimiten" with fine metal content can be at best called a value-reduced currency coin, because they were not accepted at their full nominal value as were the "Scheidemünzen" (literally: sheath money).
Fraud unmasked and resulting devaluation
(...)Coins reduced in fineness can easily be tested for their fineness. (...)
The real value of the "Ephraimiten" could be hence be detected by the gross weight. The fraud thus worked for only three years. Through the low number of experts who were qualified enough the fraud could last longer in rural than in urban areas.
A contemporary saying about the coins went like this:
„Von außen schön, ("Nice without,
von innen schlimm, bad within,
von außen Fritz, Fritz without
von innen Ephraim!“ Ephraim within")