MONETARY CIRCULATION IN THE KINGDOM OF KARTL-KAKHETI (1744-1801)

Abstract

Our goal is to study the circulation of various monies on the territory of the Kingdom of Kartl-Kakheti (henceforward, the KKK). The study material comprises both monetary and written primary sources, i.e. single coin finds as well as monetary hoards contemporary to the KKK and deposited on its territory, and narratives by foreign travellers as well as contemporary Georgian state and private documents. Two new, previously unpublished coin hoards are of particular significance; we provided general information on their composition. We studied monetary circulation in the KKK separately according to coin metal: gold, silver, and copper; reviewed both the corresponding monetary complexes and relevant written sources. It was established that the monetary stock within the KKK economy was not homogenous, but constituted a mixture of monies different in terms of both their material substance, i.e. the physical specifics of the coinage, and its varying economic functions. Considering the local traditions and realities, local market more or less rejected the credit / token coinage; the authorities found it difficult to force the population to accept at the very least the semi-credit copper coins of major denominations. The copper coinage had only auxilary role, mostly serving the petty trade; the authorities renovated it intermittently; consequently, the copper coinage played a very limited role and was hardly eligible for depositing. Major transactions were served by full-bodied silver and gold currencies with full intrinsic value. However, the gold and silver had different status. The KKK was a state with economy based on silver monometallism, whereas the (mostly imported) gold coins constituted mere commodity, without stable and legal value of single unit. Initially, the silver monometallism of the KKK was based on all kind of both local and imported silver coins; the monetary market was an open one. Later on, it was closed following and due to the monetary reform conducted by king Irakli II, when abundant new silver coinage – sirma tetri started inundating the market; the imported and antiquated silver coins lost their status of legal tender and also became a commodity.

Keywords: Kingdom of Kartl-Kakheti; monetary market; monetary circulation; silver monometallism; commodity money; token coinage;