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NMAH and London School of Economics

Smithsonian Staff

NMAH and London School of Economics's collections

 

South African lesson 4: Bretton Woods, national currencies and South Africa's new money

<p>Why do nations want their own currency?</p> <p>We have looked at a few examples of how money has been used and how the value of money has been determined in the past.</p> <p>In the previous lesson we looked at how money changed after WWI, and that in light of the economic destruction of the war, countries left the gold standard.</p> <p>This lesson looks at what happened to money in South Africa after WWII and why countries around the world use different currencies.</p> <p>*This lesson was developed by a South African History graduate (Amy Rommelspacher, amyrom@sun.ac.za), as part of a collaboration between Stellenbosch University, the London School of Economics and the Smithsonian with a goal of creating lesson plans for South African students using objects from the National Numismatic Collection. There are four lessons in total.</p> <p>Find the other lessons here:</p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-1-a-quick-history-of-money-what-can-money-tell-us-about-the-world/ILqb3tDWHw9Rryea">South African lesson 1: A quick history of money</a></p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-2-minerals-and-money/3zt8IfdTrVQCvnUA">South African lesson 2: Minerals and money</a></p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-3-the-great-depression-the-gold-standard-and-south-africa/HPZ2cJN1jRXri3mg">South African lesson 3: The Great Depression, the gold standard and South Africa</a></p> <p></p>
NMAH and London School of Economics
13
 

South African lesson 3: The Great Depression, the gold standard and South Africa

<p>This lesson looks at the Great Depression and the gold standard in South Africa and how these impacted the way that money worked in the country, and many other countries in the world.</p> <p>*This lesson was developed by a South African History graduate (Amy Rommelspacher, amyrom@sun.ac.za), as part of a collaboration between Stellenbosch University, the London School of Economics and the Smithsonian with a goal of creating lesson plans for South African students using objects from the National Numismatic Collection. There are four lessons in total.</p> <p>Find the next lesson here:</p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-4-bretton-woods-national-currencies-and-south-africa-s-new-money/DvAXfJ1hzRn5YxpU">South African lesson 4: Bretton Woods, national currencies and South Africa's new money</a><br></p>
NMAH and London School of Economics
14
 

South African lesson 2: Minerals and Money

<p>This lesson explores how currencies are used in different economies, with a focus on South Africa and how the Mineral Revolution in South Africa affected its economies and currencies.</p> <p>*This lesson was developed and created by a South African History graduate (Amy Rommelspacher, amyrom@sun.ac.za), as part of a collaboration between Stellenbosch University, the London School of Economics and the Smithsonian with a goal of creating lesson plans for South African students using objects from the National Numismatic Collection. There are four lessons in total.</p> <p>Find the next lessons here:</p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-3-the-great-depression-the-gold-standard-and-south-africa/HPZ2cJN1jRXri3mg">South African lesson 3: The Great Depression, the gold standard and South Africa</a></p> <p><a href="https://learninglab.si.edu/collections/south-african-lesson-4-bretton-woods-national-currencies-and-south-africa-s-new-money/DvAXfJ1hzRn5YxpU">South African lesson 4: Bretton Woods, national currencies and South Africa's new money</a></p>
NMAH and London School of Economics
13
 

How did new African countries use money to show their independence?

<p>Starting in the late 1950s, African nations became independent from European colonial powers. They used their new currencies to demonstrate their sovereignty by replacing European heads of state with national leaders.  The new national coins and banknotes also depicted indigenous currencies like cowrie shells in Ghana and kissi pennies in Liberia, celebrating African cultural heritage. </p>
NMAH and London School of Economics
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What did money look like under colonial rule in West Africa?

<p>How did colonialism affect the lives and livelihoods of Africans? The kinds of money people used can provide some clues. This collection contains coins and notes introduced by the colonial powers which  Africans received in return for the sale of produce and used for paying taxes. It also includes cowrie shells, kissi pennies and manillas, which Africans often used to buy everyday goods in local markets despite colonial government policies banning them. </p>
NMAH and London School of Economics
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U.S. Dollars in Liberia

<p><strong><em><a href="https://americanhistory.si.edu/national-numismatic-collection/galleries-and-exhibitions">The Value of Money</a></em> exhibition's new acquisition case is currently featuring a display on the use of <a href="https://americanhistory.si.edu/blog/dollars-liberia">U.S. Dollars in Liberia</a>.  This Learning Lab makes this display available digitally. </strong></p> <p><strong><u>U.S. Dollars in Liberia </u></strong></p> <p>From 1820 to 1904, about 16,000 people formerly enslaved in the United States sailed to West Africa and established the country now known as Liberia. The American Colonization Society, which sought to create a colony in Africa for formerly enslaved people, issued currency like this 1833 token and established a government led by white officials. <br></p> <p>In 1847 Liberian migrants declared independence from the American Colonization Society and issued their own coins as a symbol of nationhood. The coins were minted in England and circulated alongside indigenous currencies like the Kissi penny. In the late 19th and early 20th century, the Liberian government struggled with debt, making it difficult for the Liberian dollar to maintain its value. As a result, merchants and then the government began to use the colonial currency of British West Africa instead. </p> <p>In 1943, with financial help from the U.S. government, the U.S. dollar replaced British West African shillings as the primary currency in circulation. The Liberian dollar continued to be in use as small change. Today Liberia is one of few nations with a dual currency system, as both American and Liberian dollars circulate alongside each other. In 2019 the National Numismatic Collection acquired contemporary Liberian banknotes to help tell this story. </p> <p><strong><u>Suggested Reading:</u></strong></p> <p>Gardner, Leigh A. "The rise and fall of sterling in Liberia, 1847-1943." <em>Economic History Review</em> 67, no. 4 (2014): pp. 1089-1112. </p> <p>Rosenberg, Emily S. <em>Financial Missionaries to the World: The Politics and Culture of Dollar Diplomacy 1900-1830</em>. Chapel Hill: Duke University Press, 2007. </p> <p><br></p> <p>To see all of the West African currency objects in the National Numismatic Collection, click <a href="https://americanhistory.si.edu/collections/search?edan_q=west%20african%20currency&edan_local=1&edan_fq%5B%5D=topic:%22West+African+Currency%22">here</a>.  <br><br><br><br></p>
NMAH and London School of Economics
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