Kingdom of Kartl-k’akheti vs. Caucasian khanates: peculiarities of monetary policy in the 2nd half of the 18th century - early 19th century
The monetary policy pursued by the monarchs of the south-east-Caucasian polities after the murder of Nader Shah, and lasting through the 1st quarter of the 19th century, when they were one by one either annexed by the Russian Empire or Qajar Iran.
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Diagram 8. Hoards discovered on the territory of Talesh Khanate Talesh Khanate (Diagram 8):
1) Kyz-ordu area of the settlement Orand, Lerik rayon (1930): hoard of silver coins, including Georgian-Russian 2-abaz coins, Qajar coins of Fath-`Al! Shah, and Shamakhi `abbasls of the end of the 18th-beginning of the 19th cc. Pakhomov, 1966: 104, #2149.; deposited in the first third of the 19 th c.; (first third of the 19th c.);
2) Bala-Shuruk, Lenkoran rayon (1951): a hoard of (32?) silver coins, including 6 anonymous `abbas!s of Quba; 3 anonymous `abbas!s of Derbend; 9 anonymous `abbas!s of Shamakh!; the latest coin dated AH 1220 (1805/6) Pakhomov, 1957: 85-86, #1862.; deposited in the late 1800s?.
The meta-analysis makes it clear that the KKK aimed at and succeeded in controlling its monetary market tightly enough. After the introduction of the sirma currency in AH 1179 (1765/6), its share in the hoards deposited on the territory of the Kingdom amounted to 100% (except for the long-term accumulation ethnographic hoards, like Mtianeti I and Pshaveli hoards) Paghava, 2023: 239-248, diagrama 3-4. (Diagram 1). King Irak'li II even regulated the exchange rate of Russian roubles when the Russian Empire expeditionary force was operating (mostly) against the Ottomans on the territory of Georgia in 1769-1774 Idem: 248-256, tskhrili 4..
In contrast, the khanates were not capable of comparable control over their monetary market: The hoards deposited on the territory of any khanate were hardly ever as homogenous as those in the KKK. The KKK sirma abazis dominated the circulation on the territory of the Irawan and Nakhjewan Khanates, albeit the `abbasls of Irawan and Ganja also circulated; not a single hoard comprises the coins of Nakhjewan (Diagram 2; Daralagyoz hoard). Tiflls silver also entered the monetary circulation of the Ganja, Qarabagh, Shak! and Shirwan Khanates, but played an insignificant role (Diagrams 3-6; Shaki uyezd, Shusha uyezd, and Qarabagh I hoards). The Ganja and Shirwan Khanates were the major suppliers of the money circulating on the territory of the khanates in the last decades of the 18th c. (Diagrams 3-6; Qarabagh 1830, Shusha uyezd, Qarabagh I, Baskhal, Nukha 1825, and Shaki uyezd hoards); perhaps except for the Irawan and Nakhjewan Khanates only (Daralagyoz and Irawan II hoards); Shamakh! coins were more prominent than those of Ganja in the Caspian littoral khanates (Diagrams 7-8), while their share was more or less similar in those located further to the west; remarkably, the Shamakh! coins were deposited on the territory of the Ganja Khanate, and vice versa (Diagrams 3, 6). Share of Ganja and Shamakh! coins decreased only when the Khanates of Qarabagh, Shak!, and Quba-Derbend initiated their own currency, which started to infiltrate the local monetary circulation: for instance, the Nukha hoard (2007) comprised only local coins; the late hoard deposited on the territory of the Qarabagh Khanate comprised up to 46.9% of Panahabad coins; Quba mint produce was as high as 44.8% in the late hoard of Quba or 33.3% in the Bala-Shuruk hoard (Talesh Khanate); the share of Derbend coins was relatively low even in the hoards deposited locally - 0% in Derbend hoard, 3.2% in Quba hoard, but 16.67% in Bala-Shuruk hoard (Diagrams 7-8). But even then the Shamakh! and Ganja coins were still deposited, i.e. presumably retained the status of valid (and presumably freely circulating) currency.
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Different approaches to state monetary policy in the KKK and south-caucasian khanates could be foredestined by various circumstances.
The economic geography of the region was one of the principal and self-evident predisposing factors.
Availability vs. presumably limited supply of the traditional coin metals in correspondingly the KKK and khanates was of particular significance. Having invited the Greek madanchis from Gumushkhane, king Irak'li II of the KKK founded the mining industry in his realm Idem: 73-83.; the output of coin metals varied (and decreased sharply after the invasion of Omar Khan of Avaria in 1785), but amounted to approximately 6-16.5 kg of gold, 236-650 kg of silver, and almost 200 tons of copper annually Idem: 83-105, diagrama 1, tskhrili 2..
To our knowledge, there was no alternative source of coin metals, i.e. no oresmelting industry elsewhere in south-eastern Caucasus. Consequently, the mints of all the local petty states except for Tiflis mint of the KKK were dependent on importing the silver and probably also copper for producing the coinage in these metals locally. That explains the fact the some of the khanates never issued any substantial amount of coinage, or abstained from minting it whatsoever, or struck coins only sporadically and intermittently, or issued debased silver coinage. In contrast, the KKK was seemingly the only local state capable of controlling its monetary market very tightly, almost banning the free circulation of imported silver coins, whereas the monetary market of the neighbouring khanates constituted a mish-mash of all kinds of silver currencies of many different dynasties and states. Similarly, local production of gold explains the fact that the KKK was the only local polity capable of issuing gold coinage more or less systematically.
Involvement in international trade, i.e. location with regard to trade routes Rajabli, 1997: 161-162. (opportunity to import coin metals?) could be yet another factor affecting the plausability of issuing coinage locally.
Naturally, the limited territory (and population) of these petty Caucasian states and hence numerically limited number of coins that could be struck clearly made operating more than one mint redundant.
The local minting traditions and paradigm constituted yet another factor.
All of south-eastern Caucasus remained within the SafavId (after the monetary reform of `Abbas I) monetary area of control for more than a century. The Ottomans and Afsharlds adhered to the same, as we would call it, post-SafavId system. Beyond doubt, both population and ruling elites were accustomed to the SafavId triadic approach to various currencies: Gold coinage to be issued sporadically, mostly for non-economic purposes; Silver coinage constitutes the primary currency, i.e. backbone of economy; the precious metal coins can be minted exclusively in the name of the ruling shah;
anonymous Copper coinage is minted by regional rulers, and being renovated on a regular basis circulates only locally Matthee, Floor, and Clawson, 2013: 24-37.; only the kings of Kartli (eastern Georgia) indicated their abbreviated names on Tiflls coppers.
Minting money was a decentralized activity in the Safavid State, as well as in its successors in the region, the Ottoman and Afsharid states; the realm was covered by an extensive network of mints Idem: 7-9.. Considering the significant influx of silver from the northwest, many extremely prolific mints were located in the north-western part of the Safavld State, i.e. south-eastern Caucasus and adjacent area: Tiflls, Irawan, Nakhjewan, Ganja, Shamakhi, Tabriz Idem: 51-55.. Having occupied the area in 1720s, the Ottomans continued to issue coins locally at the mints of Tiflis, Rewan, Ganja, and Tabriz. Understandably enough, it were the Tiflis, Irawan, Nakhjewan, Ganja, ShamakhI and Tabriz mints which issued the coinage in the area after the murder of Nader Shah, over a span of decades, till almost the very end of the 18th c., when new mints like Panahabad, Shaki, Quba, and Derbend were gradually set into action. It is not fortuitous, that Tiflis, Ganja and Shamakhi manufacture dominated the local monetary markets at the initial stage.
The copper coinage of the khanates and KKK mostly retained the civic copper visual style of the late-Safavid issues. Basically, only the KKK managed to overstep the boundaries of civic coinage on a regular basis, and then only perhaps at least partially due to an innovation adopted by Vakhtang VI of Kartli, who was the first monarch to indicate Georgian letters on Tiflis coppers. The non-civic elements (like tughra, or crown) appearing on the aforementioned issues of Shaki and Qarabagh were ephemeral and simply borrowed from the Ottoman and Russian Empire coinage (icluding the Georgian- Russian issues). However, the innovative approach of Derbend mint with regard to copper coinage produced there is also noteworthy.
In addition to visual semblance with civic copper coinage, kings of the KKK and khans also continued to renovate their copper coinage, exactly as it was practised in the late-Safavid epoch. Considering the dearth of precious metals limiting the scale of minting silver, the khans presumably drew significant income from issuing the copper coinage.
As to the silver coinage, consequent reductions of the weight standard were not unheard of in the previous numismatic history of the region Album, 2011: 274-295.; however, one has to admit that this process had never been so fast and recurrent as, for instance, in the Ganja Khanate Cf. Idem: 297-299; Akopyan, 2016..
In contrast to renovatio monetae and weight reductions, local rulers also employed some relatively original and unprecedented (in the region, for the previous century and a half) methods for gaining some more profit, like debasing the alloy as a state policy rather than abuse on part of mint authorities, and countermarking the coins (the latter was common in the Safavld realm, but only in the 16th century).
Farming the mint to private entrepreneurs, as well as producing the coinage by hammering it manually shall also be considered the Safavld legacy. The technique employed in the KKK and khanates reflected the available technology level of local societies.
The omnipresent foreign threat was perhaps the most significant factor.
King of the KKK and khans enjoyed full internal autonomy, but their stance within the regional geopolitical system was quite precarious. The region was disputed by the regional super-powers like the Russians, the Ottomans, and various Iranian leaders, of which the most formidable were Karim Khan and the Qajars. Not a single local ruler, not even the most successful ones, like Irak'li II of the KKK or Fath-`Ali Khan of Quba- Derbend, dared to declare the independence de jure, by taking liberty to appropriate the right of sikka; considering the declarative nature of the precious metal coinage, they all opted to acknowledge the then prevailing foreign overlord, or issue posthumous or anonymous coinage, frequently immobilizing their coinage, as without the right of sikka the monarch perhaps had less of an incentive to alter the coin type. This reservedness affected the design of the local currencies impactfully.
We would consider a mindset of the local monarchs, specifically their perception of and adherence to historical tradition as yet another factor.
The visual transformation of the KKK coppers became possible only due to the traditionally specific, local status of the copper coinage in the post-Safavid world. However, the khans also had an opportunity to indicate their name, or at least their sigil, at least on their copper coins. None of them did. On the contrary, the foreign visual elemens like the crowns or branches were servilely imitated. Was it a mere coincidence, or, as we are inclined to think, a pattern?
Georgian kings of the KKK pertained to Bagrationi (Georgian Bagratid) dynasty, ruling in Georgia incessantly for more than a millennium; Teimuraz II and Irak'li II obtained from Nader Shah a consent to be crowned as Christian kings (in the Safavld and then Ottoman period Georgian Bagratids had to convert to Islam therefor). Undoubtedly, the appearance of the king's name in medieval Georgian script, as well as specific royal, national and Christian iconography clearly demonstrates that the Georgian monarchs had that feeling of being part of the (multi-)millennial national tradition. We would conjecture, that this sense did affect the monetary policy of the monarchs of the KKK.
As to Muslim and mostly Turkic khans, many of them being the self-made men of no particularly prominent descendance, they clearly had nothing to do with local Albanian or Armenian tradition of statehood (both collapsed many centuries ago). The point at issue is, whether they considered themselves bearers of any other, Muslim / Turkic (TurkI or Qizilbashl, or, otherwise stated, Adherbaljam) historical inheritance, like that of the late-medieval Shirwan, or the Safavld state. The khanate coins demonstrate no evidence thereof.
How could we assess the effectiveness of the monetary policy pursued by the south-eastern Caucasian states in the 2nd half of the 18th century - 1st quarter of the 9th century?
As a starting point we would state that the majority of these polities did pursue some active monetary policy, as they issued their own currency, predominantly in silver and copper. Their rulers enjoyed the full internal autonomy Cf. Petrushevskiy, 1949: 46., and presumably also exerted immediate control over the local mint . Therefore, we consider all the coinage, including the copper one, issued by TifUs, Irawan, Nakhjewan, Ganja, ShakI, Panahabad, Quba, Derbend, and, possibly Baku mints after the murder of Nader Shah as the state issues of the corresponding khanates and KKK.
Despite the visual semblance with Persian civic coppers in many cases (but not always!), the copper issues of the khanates, let alone those of the KKK, were designed and issued at the behest of the local (semi-)sovereign monarchs; issuing these coins was an integral part of the more or less self-sufficient monetary policy pursued by the latter. Therefore, we consider these monetary series as a pseudo-civic, state coinage, an integral part of the monetary policy pursued by the Georgian kings and local khans Pagava, 2013b: 205-211..
Remarkably, even the khanates operating no mint, or minting coins only during the limited period of time, still had to deal with and perhaps even (attempted to) regulate the money circulation on their territory.
Except for the scanty documents from the KKK, we hardly have any written data regarding the monetary policy of the local polilties, let alone its efficacy. The coins proper, as well as money circulation indices, like hoard evidence, constitute our primary source of information.
The documentary evidence testifies to the fact that in the 1790s the mint farming provided the king of the KKK with annual (?) income of up to 500 tumans; while relatively substantial, the percentage of the KKK state income generated by issuing coinage had been much less than it was considered earlier Paghava, 2023: 173-182.. In the khanates the income from the mint would be comparable, or probably less (since they presumably had less silver available for minting). Nevertheless, operating their own mint, many khans obtained some extra income.
The KKK and the Ganja and Shirwan Khanates managed to supply their local as well as regional economy with substanial number of silver coins. Probably the income from minting coinage was the most substantial in these three polities.
The meta-analysis of the hoards makes it clear that generally the KKK and khanates were capable of saturating at least the local economy with their coinage, thereby 1) supplying it with money (as medium of exchange, unit of account and store of value), and 2) gaining some profit. Naturally, some of the local polities were more successful in doing this, some less. At least Irak'li II of KKK was capable of even regulating the monetary market in his realm.
Remarkably, the kings of the KKK strived to transform their copper coinage visually, more or less successfully converting it into a powerful mass-media outlet aggrandizing the Georgian monarch and disseminating Christian iconography.
Analysis of the coins makes it clear that the kings of the KKK and khans manipulated the coinage minted and circulating locally in many different ways (altering or immobilizing the weight and silver standards as well as the general design; countermarking; restriking; renovating the coinage) in order to gain more profit. However, it is hard to say exactly how lucrative was this policy, and whether it was efficient and reasonable in the long term.
Further studies would hopefully elucidate the monetary policy pursued by the khans better. Nevetheless, it is already clear that by producing the coinage of some specific design and then manipulating the circulating coins the local monarchs of the KKK and the khanates strived to achieve a number of economic and political goals both within and beyond their petty realms.
The gold and particularly silver and copper currencies issued, as well as circulating in south-eastern Caucasus in the 2nd half of the 18th century - 1st quarter of the 9th century are evidently not just a subject of study per se, but also a powerful tool for researching various issues of regional economic history and both internal and external policy of these local petty states.
The relatively short story of the KKK and khanates ended in Russian conquest; however, that was an instructive and consequential phase in the history of the region and its population, albeit an abortive one. Modern statehood of Georgia and particulary of Republic of Azerbaijan (and perhaps to a lesser degree that of Republic of Armenia) stems from this very period, via the short-lived independent South-Caucasian republics of 1918-1920-1921. Consequently, the numismatic history of these 18th-19th c. polities gains particular significance and deserves further research and recognition.
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