Today we use the dollar as our standard of value but rarely think how all of this came about. The word “dollar” and its concept as money actually evolved from a small beginning in central Europe more than 500 years ago.
From the fall of the Western Roman Empire in 476 A.D. to the mid-15th century, there were great changes in the use of money. At first, because trade and commerce were severely limited, little except gold coins were seen and even these were restricted to wealthy families and great merchants. Over a period of time, however, trade revived and there arose a need for more coined money in the marketplaces. By the 9th century, several Western European states had begun to strike small silver coins; in England, for example, these were known as pennies.
The continuing rise of trade and the natural desire of the common people for better food and clothing led to a desire for even more coinage. It became an increasingly irksome task for a merchant to have to count out thousands of coins in whatever local currency was being used. Gold was of course minted to a limited extent, but there was not enough around for a heavy coinage.
One solution was to strike larger silver coins. In England, for example, this took the form of a groat or 4-penny piece. The groat was widely used
