Pound Scots
Encyclopedia
The pound Scots was the national unit of currency
in the Kingdom of Scotland
before the country entered into political
and currency union
with the Kingdom of England
in 1707 (see Acts of Union 1707
). It was introduced by David I
, in the 12th century, on the model of English
and French
money, divided into 20 shilling
s each of 12 pence
. The Scottish currency was later debased
relative to sterling and, by the time of James III
, the pound sterling was valued at four pounds Scots.
In addition to the pound Scots, silver coins were issued denominated in merk, worth 13 shillings 4 pence (two thirds of a pound Scots). When James VI became King James I of England in 1603, the coinage was reformed to closely match that of England, with 12 pounds Scots equal to the pound sterling. In 1707, the pound Scots was replaced by the pound sterling at a rate of 12 to 1, although the pound Scots continued to be used in Scotland as a unit of account for most of the 18th century.
Today there is no distinct Pound Scots; but Scotland
's three largest national clearing
banks (the Royal Bank of Scotland
, the Bank of Scotland
and the Clydesdale Bank
) still print paper pound notes for domestic circulation. These notes may be accepted as payment throughout the United Kingdom
, but are much more commonly seen in Scotland; they represent the same Pound Sterling
value as do Bank of England
notes in England and Wales. (Technically, no paper money, whether issued by the Bank of England or by one of the various Scottish or Northern Irish banks chartered to print notes, is mandated to be legal tender
in Scotland.)
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
in the Kingdom of Scotland
Kingdom of Scotland
The Kingdom of Scotland was a Sovereign state in North-West Europe that existed from 843 until 1707. It occupied the northern third of the island of Great Britain and shared a land border to the south with the Kingdom of England...
before the country entered into political
Political union
A political union is a type of state which is composed of or created out of smaller states. Unlike a personal union, the individual states share a common government and the union is recognized internationally as a single political entity...
and currency union
Currency union
A currency union is where two or more states share the same currency, though without there necessarily having any further integration such as an Economic and Monetary Union, which has in addition a customs union and a single market.There are three types of currency unions:#Informal - unilateral...
with the Kingdom of England
Kingdom of England
The Kingdom of England was, from 927 to 1707, a sovereign state to the northwest of continental Europe. At its height, the Kingdom of England spanned the southern two-thirds of the island of Great Britain and several smaller outlying islands; what today comprises the legal jurisdiction of England...
in 1707 (see Acts of Union 1707
Acts of Union 1707
The Acts of Union were two Parliamentary Acts - the Union with Scotland Act passed in 1706 by the Parliament of England, and the Union with England Act passed in 1707 by the Parliament of Scotland - which put into effect the terms of the Treaty of Union that had been agreed on 22 July 1706,...
). It was introduced by David I
David I of Scotland
David I or Dabíd mac Maíl Choluim was a 12th-century ruler who was Prince of the Cumbrians and later King of the Scots...
, in the 12th century, on the model of English
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
money, divided into 20 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
s each of 12 pence
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
. The Scottish currency was later debased
Debasement
Debasement is the practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins...
relative to sterling and, by the time of James III
James III of Scotland
James III was King of Scots from 1460 to 1488. James was an unpopular and ineffective monarch owing to an unwillingness to administer justice fairly, a policy of pursuing alliance with the Kingdom of England, and a disastrous relationship with nearly all his extended family.His reputation as the...
, the pound sterling was valued at four pounds Scots.
In addition to the pound Scots, silver coins were issued denominated in merk, worth 13 shillings 4 pence (two thirds of a pound Scots). When James VI became King James I of England in 1603, the coinage was reformed to closely match that of England, with 12 pounds Scots equal to the pound sterling. In 1707, the pound Scots was replaced by the pound sterling at a rate of 12 to 1, although the pound Scots continued to be used in Scotland as a unit of account for most of the 18th century.
Today there is no distinct Pound Scots; but Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
's three largest national clearing
Clearing (finance)
In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Clearing is necessary because the speed of trades is much faster than the cycle time for completing the underlying transaction....
banks (the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
, the Bank of Scotland
Bank of Scotland
The Bank of Scotland plc is a commercial and clearing bank based in Edinburgh, Scotland. With a history dating to the 17th century, it is the second oldest surviving bank in what is now the United Kingdom, and is the only commercial institution created by the Parliament of Scotland to...
and the Clydesdale Bank
Clydesdale Bank
Clydesdale Bank is a commercial bank in Scotland, a subsidiary of the National Australia Bank Group. In Scotland, Clydesdale Bank is the third largest clearing bank, although it also retains a branch network in London and the north of England...
) still print paper pound notes for domestic circulation. These notes may be accepted as payment throughout the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, but are much more commonly seen in Scotland; they represent the same Pound Sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
value as do Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
notes in England and Wales. (Technically, no paper money, whether issued by the Bank of England or by one of the various Scottish or Northern Irish banks chartered to print notes, is mandated to be legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
in Scotland.)
See also
- Scottish coinageScottish coinageThe coinage of Scotland covers a range of currency and coins in Scotland during Classical antiquity, the reign of ancient provincial kings, royal dynasties of the ancient Kingdom of Scotland and the later Mediaeval and Early modern periods....
- Penny ScotsPenny ScotsPenny was used in Scottish parlance for money generally; for example, a "penny-fee" was an expression for wages, a "penny-maister" would be a town treasurer, and a "penny-wedding" was one where every guest contributed to pay for the thing...
- Mark (money)Mark (money)Mark was a measure of weight mainly for gold and silver, commonly used throughout western Europe and often equivalent to 8 ounces. Considerable variations, however, occurred throughout the Middle Ages Mark (from a merging of three Teutonic/Germanic languages words, Latinized in 9th century...
- Banknotes of the pound sterling