» Tue Feb 01, 2011 8:43 pm
Originally, coins were nothing more than a way to guarantee the quantity and purity of gold, silver, or other precious metal used. A king would "mint" coins with his likeness as a way of stating "I guarantee that this coin is made of X amount of precious metal of acceptable purity". The next king would come along and mint new coins with his own face, but the earlier coins were still as valid as when they were new (or invalid, if he had a bad enough reputation for "chiselling" on the purity of material in his coins). As long as the merchants could weigh the coins and be assured that the purity was within acceptable limits, they could accept them. Local or well-known coins didn't even require weighing, because you could accept them at "face value" - the value guaranteed by the ruler whose face appeared on it.
A program of "recall" isn't needed. As taxes are paid using the old coins, the new ruler melts them down and reissues them with his own face. The coins serve as a constant reminder to the Legions of who's paying them, or to the general public of who's in charge. The new coins eventually replace the old over a period of a few years. Since the older coins begin to lose their size (and intrinsic value) by being "shaved" several times, it makes more sense to hand them in for "face value", rather than paying taxes with the new and full-sized ones.
The ridges on the sides of some coins were a way to make it more difficult to "shave" material off the edges, which was a common way of stealing from the coinage. A lot of early gold and silver coins are reduced to just over half their original size, to where the lost edge material infringes on the stamped portrait. Common metal coinage put a stop to that, because the metal isn't worth stealing.
Now, our "base metal" coinage is solely a guarantee of redeemable value by the minter, with a few rare exceptions such as the South African gold Krugerand (if those are still in production). The intrinsic metal value in most cases is almost nothing. Up until the 1960's, the US issued Silver Certificates, which were redeemable for a set amount of silver upon demand. Now, even those have been removed from circulation, and the coinage is based almost entirely upon trust in the government's ability to enforce its value, with only a few cents on the dollar supported by gold reserves. Thanks to inflation, and to the inability of the government to maintain the value of the existing money supply while constantly printing or minting more, the value of the coinage has plummeted to an abysmal low.
Around the time of the Americal Civil War, with increasing reliance on cash purchases as opposed to direct barter of goods, the US introduced the half-cent. That allowed for "small purchases", such as a single loaf of bread, because a penny was too large and cumbersome an amount for daily transactions. Compare that to the value of the dollar today......
If the king of Skyrim had the last name "Fishystick", "Fishysticks" would be the most likely form of currency being minted at the time, although there most likely would be more Septims still in use than the new coins.