Nicolaus Copernicus - Good coin
The city of Olsztyn is making great efforts to use its most famous citizen, Nicolaus Copernicus, to promote the city. Over the past two years, three short documentaries have been made showing the achievements of the famous astronomer in Olsztyn. The first, is an extremely interesting documentary about Nicolaus Copernicus’ astronomical table, the only research instrument in the world made by the scientist’s hand, which has survived to the present day and can be seen in Olsztyn Castle. The second, is a story about the defense of Olsztyn, which Copernicus led during the Polish-Teutonic war waged in 1519 -1520.
The third, on the other hand, is “Good Coin”. – a very interesting short film telling the story of Copernicus’ economic law. It brilliantly introduces us to the figure and work of the great scientist, and at the same time makes viewers aware of the importance of his stay in Olsztyn in his life.
The latest film was produced on the initiative of the Office of Promotion and Tourism of the Olsztyn City Hall. The idea was initiated by Krzysztof Otoliński. The realization was undertaken by the Warsaw based studio Elmoko – Creative Agency, and directed by Michał Adaszewski. The well-known radio and television journalist Jakub Porada talked about Copernicus’ law on the screen. The film was made thanks to the financial involvement of The Citi Handlowy Leopold Kronenberg Foundation.
Nicolaus Copernicus lived in Warmia for more than 40 years, four of them in Olsztyn as administrator of the estates of the Warmian chapter. From the Olsztyn castle in 1516-1519 and 1520-1521 he administered the church estates in the bailiwick of Olsztyn and Pieniężno (then Melzak). He was subordinate to the officials of the area as well as the townspeople and peasants. He solved social and economic problems, including the settlement of villages depopulated by war. One can learn about this from Copernicus’ manuscript titled. “The Locations of Abandoned Lands,” which contains records of the placement of settlers in the Varmia villages.
At the castle in Olsztyn he conducted scientific research, primarily astronomy. He worked on the principles of the calendar reform commissioned by the Pope, and here he continued his work on the heliocentric theory. Finally, in Olsztyn, he formulated the economic law later called the Copernicus-Gresham law.
As a careful observer of economic life, Copernicus noticed that the fiscal problems of Royal Prussia, to which Warmia belonged, were largely due to the decline in the value of newly minted money. Commissioned by Bishop Fabian Luzjański, he wrote a treatise on money reform.
by the content of precious metal, such as gold or silver…
The first version, for the bishop only, was written in 1517. The second, expanded, published in 1519 as a treatise with the title “Principles of Minting Coinage,” consisted of two parts. In the first, he formulated the law later called Copernicus’ Gresham’s Law. In the second part, Copernicus dealt with what he called “spodlenie”, i.e. the decline in the value of money minted in Royal Prussia.
The law formulated by the scholar concerned the displacement of better money from circulation by inferior money. Copernicus noted that coin minters commonly committed the practice of “spodlenie,” or spoiling the value of money. This was done by rulers, kings and princes, as well as by cities issuing new coins. It was also done by coinmakers, or mint workers. The spoilage consisted in underestimating the weight of new coins or changing the proportions of silver and copper to the detriment of the precious metal. Often both were done.
In the introduction to the treatise, he wrote:
“Although there are innumerable calamities as a result of which kingdoms, principalities and republics used to collapse, in my opinion, four are the most potent: discord, mortality, infertility of the land and the debasement of coinage. The first three are so obvious that no one contradicts them, but the fourth, concerning coinage, is recognized only by a few, and those who think more deeply as a result of the fact that it affects the collapse of the state not immediately and violently, but slowly and secretly. “
Among the mistakes, according to Copernicus, was also the simultaneous presence on the market and old and new inferior coins. He postulated the withdrawal of old money when new money was issued and exchange according to the actual bullion content, not according to the previous estimate of the coin. This was his most important demand to money issuers. In the treatise he wrote: “Where we wish to introduce new coinage, we should withdraw the old coinage completely, and at the mint issue for the old coinage brought there-new coinage, but not according to the previous estimate of the old coinage, but according to the value of the silver in them, and where this is not done, the old coinage will infect the estimate of the new” .
Copernicus was a great supporter of transactions using money, and believed that trade was definitely made easier by coins with a mark to announce how much gold or silver parts it contained. The mark on the coin itself should inspire confidence in buyers and sellers.
Among the postulates to heal the circulation of money, Copernicus recommended the establishment of a single mint for the country, which could issue coins in the name of the ruler or different cities, but of the same weight and value. All types of coins should be released at the same time to maintain the proportion of their value. Too much money should not be released into the market. Old coins should be withdrawn from circulation and even their use banned. Bullion content should be taken into account when exchanging it. New money should not be introduced without consulting meaningful citizens.
Copernicus presented a treaty on the principles of coinage at the congress of Prussian states in Grudziadz on March 21, 1522. Unfortunately, with monetary reforms, not all his demands were taken into account.
English merchant and financier Thomas Gresham came to a very similar conclusion to Copernicus. In 1560, he published in “Letters to Queen Elizabeth” an explanation of why older coins, with a higher content of precious bullion, disappear from circulation after new, lighter ones are introduced. This phenomenon was identified by his name. It was not until the 19th century that it came to the attention of economists that decades earlier Nicolaus Copernicus had similarly formulated this law. It is now referred to as the Copernicus-Gresham law.
When visiting Olsztyn you have to go to the castle to the Museum of Warmia and Mazury. There you can see where Nicolaus Copernicus lived and created his astronomical theories and economic laws. In his chamber with a magnificent crystal vault there is an exhibition dedicated to him. In the cloisters you can see the famous astronomical table drawn by his hand. Nearby, in the castle park next to the Evangelical church, you’ll find a monument – Copernicus’ bench. On the other side of the castle in the park between Zamkowa and Nowowiejskiego streets is an old monument from the early 20th century depicting a bust of the astronomer. Among Olsztyn’s important tourist attractions associated with Copernicus is the Astronomical Planetarium on Piłsudski Avenue. It was opened in 1973, on the 500th anniversary of the astronomer’s birth. Among other things, there is an exposition called “Copernicus’ Experiment Room” where the instruments he used have been recreated and you can see how he conducted his observations.
Author of the text: Zbigniew Żmudzki
Translation: Wojciech Jaworek