NOMISMA

Those Who Made Counterfeit Money, and Those Who Pursued Them

We trace the history of the forgery and investigation from the records of Chaloner, Newton, and others.

Time to read the text: about 8 min
The review questions are optional and not included in this time.
What you can read: the course opening and contents are free; the full text is for those who have purchased
After purchase, you can read the full text once your access starts.

Fake Money and Its Guardians in 3 Minutes

  1. See it
  2. In numbers
  3. What would you do?
  4. Read more

1See it

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1 / 8

Counterfeit prevention evolved as a way to make it easier to check money.

Stamps → Milled edges → Machine precision → Invisible features

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1640

After machines arrived in Paris, it took 87 years for them to become widespread because of opposition from craftsmen.

The enemies of security technology aren't just counterfeiters.

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From 1696

Newton worked at the mint and hunted down counterfeiters.

Only those who were caught are in the records.

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July 1871

A domain made fake bills, and Masayoshi Matsukata, who was the prefectural governor, exposed them.

The domain lost 470,000 koku.

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Fake money makes people doubt real money, too. It's an act that kills the real thing.

The tricky part is when you can't tell which is real.

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During World War II

Nazi Germany forced people in concentration camps to counterfeit pound banknotes.

The crime lies not with the hands that did the work, but with those who ordered it.

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2021

Today's 500-yen coin has slanted milling that changes angle and three layers.

It also has tiny letters you can't read with the naked eye.

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Machines do the checking now. People don't have to.

The better the security technology gets, the more anonymous its guardians become.

2In numbers

87years

The number of years from 1553, when machines arrived in Paris, to 1640, when machine-struck coins became widespread.

3What would you do?

A coin is made by the government, but its intrinsic value is much lower than its face value. Is this 'fake money'?

Pick one

It's not fake money, because the government made it.

Legally, that's correct. The law decides based on 'who was authorized to make it.' But the person receiving it loses out if the content is debased.

It's fake money, because the content isn't enough.

For the person receiving it, that's the big problem. But since the law decides based on 'who was authorized,' it's legally genuine.

4Read more

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ReconstructionThose Who Made Counterfeit Money, and Those Who Pursued Them — course frontispiece

What you will understand after this course

  • You can explain in what order anti-forgery technique advanced.
  • You can treat "counterfeit" and "official coin of lowered quality" as distinct things.
  • You can give an example where forgery carried a political meaning.
More about this course

Course number: C10

Supervised by: Mitsuru Hayama

Beyond the text: 10 exercises · 2 coins · 10 readings · 1 references How reading times are calculated

You will also understand

  • You can explain what today's anti-forgery measures are actually protecting.
  • Can discuss the lineage of the protectors (masters of machinery, whistleblowers, modern designers) by citing key figures.
  • Can discuss Operation Bernhard, including its dual nature of perpetration and victimization.

You can start this course without reading any other course.

Also worth reading, to see the connections (optional)

  • How Were Coins Made?
    What you learn: You can tell striking from casting by the look of a finished coin.
    The text refers to this course in section 1.

If you want to know more about checking sources (optional)

Assessment

10 exercises in this course (7 check, 0 compare, 3 written). Progress is recorded by self-assessment.

The 8 chapters of this course
  1. How anti-counterfeiting technique advancedThe aim of anti-forgery has always been to spare the checking. Today's devices are invisible to the eye.
  2. The New Government Minted Them, Too — The Two Definitions of a Counterfeit Coin"Counterfeit" has two definitions, quality and authority. Law defines by authority; the receiver cares about quality.
  3. Counterfeiting becomes a tool of politicsForgery makes even the genuine suspect. It is at once the making of a fake and the killing of the real.
  4. Newton as the pursuerOnly the caught forgers leave records. So the surviving record cannot tell us the rate of success.
  5. Until the Machine Took Root — Varin and the ArtisansMilled coinage, which entered Paris in 1553, became widespread in 1640, 87 years later. The enemies of security technology were not just counterfeiters.
  6. The Governor Who Made the Accusation — Masayoshi Matsukata and the Counterfeit Notes of ChikuzenIt was a single prefectural governor who exposed the domain's counterfeiting. Twelve days later, the domains were abolished and prefectures established. There is an order to the executioners.
  7. Those Ordered to Counterfeit — The Ambiguity of Operation BernhardJewish prisoners in concentration camps were forced to make counterfeit notes in one of the largest counterfeiting operations. The perpetrators' tools and the victims were one and the same.
  8. Modern Designers — The Front Line of an Anonymous StruggleHelical ridges, micro-lettering, and a three-layer structure. Modern pursuers win the battle through design, before an incident occurs.
Readings (10)
  • Edo, the Kinza Japan The upheaval at the end of the shogunate and the counterfeit coin 1868–1869
    Section 2. A scene where the account books are opened, revealing that the new government also minted low-quality currency.
  • The Kenmu Restoration Japan 1334–1335 Nijo-gawara, Kyoto
    §3. A lampoon in which forged imperial edicts come second on the list.
  • From reconstruction to the palm of the hand Japan 2021 the Mint
    §1. Today's anti-forgery measures. Note "unreadable by the naked eye."
  • The birth of the yen Japan 1872 Frankfurt
    The scene of ordering precise printing technology from abroad as a countermeasure to forged notes.
  • The louis d'or and machine striking France 1640–1672 The Paris mint
    Section 5. The eighty-seven-year internal front from 1553 to 1640: another enemy of the art of defense.
  • Tokyo, Takanawa Japan The upheaval at the end of the shogunate and the counterfeit coin 1869–1871
    Section 6. A record of accusation, read with the restraint of "I will not call it karma."
  • A history of false money Overview: the world AD 1942 Counterfeit Pounds Printed in the Camp
    Section 7. The strategy where the instrument of harm and the victim were one and the same.
  • The Tester Greece 375/4 BC The money-changer's table in the Agora
    This is one of the oldest examples of the pursuers' system being codified into law. The articles stipulate everything from seating arrangements to fifty lashes for neglecting one's duties—please note the level of detail.
  • The republic and the escudo (2) Portugal 1925 A printing works in London
    This was a case where what was forged was not the banknote itself, but the authority to order its printing. Please consider at what point a banknote, produced with genuine plates and paper through the official process, becomes a counterfeit.
  • Infalsificables Mexico 1916 Carranza Government
    A paper currency named "Unforgeable" fell to one-hundredth of its value in six months. This serves as a confirmation that the technology to prevent counterfeiting and the power to protect value are two different things.
References
  • Isaac Newton, Warden and Master of the Royal Mint 1696-1727 — The Royal Mint Museum A primary account of the Great Recoinage of 1696. Newton became Warden of the Mint in 1696, and Master of the Mint from 1699 until his death (1727). He emphasized the accuracy of weight and fineness, and completed the recoinage in 3 years.

The books and materials referred to in this course.

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