Coins of Muhammad Bin Tughluq
Muhammad Bin Tughluq introduced copper currency in 1330 A.D. Because of Sultan’s reckless generosity and various visionary plans, the Sultan got his treasury greatly drained. In order to increase his financial resources, Muhammad Bin Tughlaq had no other alternative but to introduce copper currency. Muhammad Bin Tughlaq ordered that coins of copper currency should be considered equal in value of those of silver and gold coins.
But in issuing these new coins, the Sultan had not idea of cheating his subjects nor did he want to harm anybody and in doing so he did no wrong.
But he failed in spite of his good intentions simply because he was much ahead of his time. In those days there was no elaborate machinery to prepare stands coins and consequently, the coins minted by the state could not be easily distinguished from private forgeries. So every goldsmith and silversmith began to make copper coins in large numbers.
In due course of time, the people began to pay their taxes in the false coins. The Governors pay their annual tribute, the farmer their land revenues in the same faked coins. The people grew rich, the state of Muhammad Bin Tughlaq was impoverished. At last Muhammad Bin Tughlaq had so other alternative but to with draw the copper coins from circulation. The treasury was greatly drained because of exchange of copper coins with gold and silver coins.