Cowries and coins

Abstract

This article examines the establishment, operation and evolution of the dual–denomination monetary system of the Bengal Sultanate, 1205–1576. The Sultans ruled a populous country blessed with a consistent surplus production of agricultural commodities and textiles which they redistributed through their system of state revenue and expenditure. Also, traders drew on this surplus for the Indian Ocean trade. Both levels of the economy were served by the monetary system. A heavy, high purity silver coin met the needs of government and trade, while cowry shells met the needs of low-value transactions for most of the population. A private financial industry brokered the exchange of the two denominations. Over time the relative importance of cowries and silver tankas shifted, with the metallic currency predominant by the sixteenth century. This reflected the expansion of the Sultanate, the growing maturity of its state system and the improved availability of bullion. Bengal’s money appears to have been almost exclusively domestic in circulation and impact. However, neither silver nor cowry shells were available locally, and had to be imported. The high capacity of Bengal to absorb cowries and silver into its money supply must have been a significant driver of overland and maritime trading patterns.