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What is pounds, shillings and pence mean?
£sd (occasionally written Lsd, spoken as "pounds, shillings and pence" or pronounced ell-ess-DEE) is the popular name for the pre-decimal currencies once common throughout Europe, especially in the British Isles and hence in several countries of the British Empire and subsequently the Commonwealth. The abbreviation originates from the Latin currency denominations librae, solidi, and denarii. In the United Kingdom, these were referred to as pounds, shillings, and pence (pence being the plural of penny).
Although the names originated from popular coins in the classical Roman Empire, their definitions and the ratios between them were introduced and imposed across Western Europe by Charlemagne, King of the Franks. The £sd system was the standard across much of the European continent (France, Italy, Germany, etc.) for nearly a thousand years, until the decimalisations of the 18th and 19th centuries. As the United Kingdom remained one of the few countries retaining it into the 20th century, the system became particularly associated with Britain. It was King Offa of Mercia who adopted the Frankish silver standard of librae, solidi and denarii into Britain in the late 8th century, and the system was used in much of the British Commonwealth until the 1960s and 1970s, with Nigeria being the last to abandon it in the form of the Nigerian pound on 1 January 1973.
Under this system, there were 12 pence in a shilling and 20 shillings, or 240 pence, in a pound. Although the standard ledger accounting system recorded only pounds, shillings and pence, actual minted coins could represent one, several or fractions of these units. The penny was subdivided into 4 farthings until 31 December 1960, when they ceased to be legal tender in the UK, and until 31 July 1969 there were also halfpennies ("ha'pennies") in circulation. The perceived advantage of such a system was its use in some aspects of mental arithmetic, as it afforded many factors and hence fractions of a pound such as tenths, eighths, sixths and even sevenths and ninths if the guinea (worth 21 shillings) was used. When dealing with items in dozens, multiplication and division are straightforward; for example, if a dozen eggs cost four shillings, then each egg was priced at fourpence. Basic addition, however, could be more difficult than using a decimal system.
As countries of the British Empire became independent, some abandoned the £sd system quickly, while others retained it almost as long as the UK itself. The United States of America adopted a decimal system in 1792, 10 years after independence from the British Empire, but retains many other aspects of the customary units for length and weight. Australia, for example, only changed to using a decimal currency on 14 February 1966, 65 years after independence. Still others, notably Ireland, decimalised only when the UK did. The UK abandoned the old penny on Decimal Day, 15 February 1971, when one pound sterling became divided into 100 new pence. This was a change from the system used in the earlier wave of decimalisations in Australia, New Zealand, Rhodesia and South Africa, in which the pound was replaced with a new major currency called either the "dollar" or the "rand". The British shilling was replaced by a 5 new pence coin worth one-twentieth of a pound.
For much of the 20th century, £sd was the monetary system of most of the Commonwealth countries, the major exceptions being Canada and India.
Historically, similar systems based on Roman coinage were used elsewhere; e.g., the division of the livre tournois in France and other pre-decimal currencies such as Spain, which had 20 maravedís to 1 real and 20 reals to 1 duro or 5 pesetas.
referencePosted on 23 Oct 2024, this text provides information on Miscellaneous in Business related to Business. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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