Pandese Coinage

At the time of the founding of the Pandese Empire in 517 the Pandese coinage was based on metal value as in all other countries. The denarius was the most valuable coin of the realm, being made by 5 grams of pure gold. It was relatively rare, as it was uncommon to exchange such large amounts of money. In 591, Rel Vega had the denarii collected and melted down to strike a new 3 grams denarius. This was to fund the army defending the Empire from Ontaine. Later, when the Iluvar invaded Dacria, the state finances suffered once more. in 628, Beydelius Cato started to add silver to the denarius and Karamon diluted the gold further in 659 so the coin was made of the alloy called electrum. The Pandese Empire survived both the Ontaine and Iluvar onslaughts, and trade began to pick up again. In 800, Belizar III issued a decree that one gold ducat should be traded for one denarius, but that merchants with certain permits (monopolies) could exchange one gold ducat for four denarii. One effect was that traders could make greater profits selling their wares abroad, but had to increase the cost of imported items. The nobility suffered, as they were the biggest importers of foreign luxury items. In 801 Belizar addressed the senate, which at least in principle could revoke the decree, and his powers of speech convinced most that his decree would change things to the better for all. That same evening he was murdered by one of the senators who had opposed the decree, but it remained in effect. In the reign of Milatis III the nobility were assigned trade monopolies as a way of distributing the income generated from the re-conquered lands. Naturally, the emperor himself decided who were eligible for such monopoly. In the long run, Pandese traders exported more than they imported. That was good for the state of Pandese craftsmanship, but the Pandese got used to doing without items they didn't produce themselves. This applies to magic items in particular. But the Pandese Empire could not do without everything, and as the League of Cityports produced ships, paper and glass wares of a fine quality, the situation vis-a-vis the League became untenable by the end of the 9th century. So in 902, Belizar IV allowed Taunenfels, Ollyway and Hest to exchange denarii for compass roses at special shops (4 denarii for 3 compass roses, or 2 roses for 3 denarii). This arrangement greatly increased the trade between the League and the Empire and contributed to the secession of Nordacria, as the ties between the northern and southern cityports were weakened. Recently, during the siege of Taunenfels, Hardaukar III gave the privilege of exchanging denarii for compass roses to the town of Sersch, for the time being until 1120.