£sd

£sd is the popular name for the pre-decimal currencies once common throughout Europe. The abbreviation originates from the Latin currency denominations libra, solidus, and denarius. Under this system, there were 12 denarii in a solidus and 20 solidi in a libra. In the countries of the British Empire, these were called pounds, shillings, and pence, with 12 pence in a shilling and 20 shillings in a pound.
Although the names originated from popular coins in the classical Roman Empire, their definitions and the ratios between them were introduced and imposed across Western Europe by Emperor Charlemagne. King Offa of Mercia adopted the Frankish silver standard of librae, solidi, and denarii into Britain in the late 8th century.
The £sd system was the standard across much of the European continent for over a thousand years, until the decimalisations of the 18th and 19th centuries. The United Kingdom remained one of the few countries retaining it into the 20th century, resulting in the system becoming particularly associated with Britain. For much of the 20th century, £sd remained the monetary notation of most countries in the British Empire – with the exceptions of Canada and India – until the 1960s and 1970s, with Nigeria being the last to abandon it in the form of the Nigerian pound on 1 January 1973.
Historically, similar systems based on Roman coinage were used elsewhere; e.g., the division of the livre tournois in France and other pre-decimal currencies such as Spain, which had 20 maravedís to 1 Spanish real and 20 reales to 1 duro or 5 Spanish peseta.

Origins

The classical Roman Empire originally used a decimal currency system based on the "as" whereby 1 denarius = 10 asses. The silver denarius was the common circulation coin, but accounting was in sestercii. Later Roman Emperors undertook multiple coinage reforms, redefining weights and coins' relative values and introducing new coins and new accounting systems for them. Since most reforms were not even completed before the next one began, the late Roman Empire had a veritable mess of multiple overlapping systems of weights and currencies.
file:Denier Charlemagne1.jpg|thumb|Carolingian denarius
Around the 780s, the Frankish emperor Charlemagne cut through the mess by creating a new uniform system. He defined the "libra" as a new measure of weight equivalent to around , and ordered 240 silver units known as denarii to be struck from the new Carolingian pound of pure silver, each denarius containing of silver. To help accounting, Charlemagne also decreed that the pound was divisible into 20 solidi, each of 12 denarii. Thus began the Carolingian monetary system.
The new coinage and accounting system was imposed uniformly across the vast Carolingian Empire and also infiltrated countries on its periphery. In the late 8th century, King Offa of Mercia imported the system into Britain to facilitate transactions with the Roman Catholic Church. But it was not the sole system in Britain – the £sd system would have to compete for a while with the Viking "mark" accounting system, introduced into Danelaw regions. Although £sd ultimately prevailed in Britain, the "mark of account" system lingered on in North Sea trade and areas of Hanseatic influence through much of the Middle Ages.
Charlemagne's new monetary system prevailed across much of Western Europe including France, Italy, the Holy Roman Empire and in England. The English name pound is a Germanic adaptation of the Latin phrase libra pondo 'a pound weight'. On the Iberian peninsula, the Kingdom of Aragon adopted the Carolingian monetary system, but those of Portugal and Castile retained the currency system inherited from al-Andalus.
During the early Middle Ages, only the denarius (denier) was issued as an actual coin; the libra and solidus were merely units of account. But over time, Europe's silver resources were gradually exhausted and the coins became repeatedly debased by mediaeval monarchs, prompting the minting of larger coins from the 13th century. It also led to specification of currencies by mint of origin in contracts and accounting.
To facilitate larger transactions, gold coins began to be minted in western Europe around the same time. The French franc, introduced in 1360, was the first coin anywhere to represent exactly £1 and the gold "sovereign", first minted in 1489, was the first English £1 coin.
Although the £sd system remained intact in ledger accounting, the variety of new coins of various multiples and qualities led to common expression of quantities in terms of number of coins But they would all have to be converted into formal £sd units in accounts.

Decimalisation

The £sd system continued in much of Western Europe for nearly a thousand years, until the "decimalisations" of the 18th and 19th centuries. Britain considered following the continental example. A parliamentary select committee was set up in 1821 to inquire into decimalisation, but ended up recommending retaining the £sd system. However, pressure groups were formed inside Britain advocating the adoption of decimalisation of the currency, and Parliament returned to the matter in the 1850s. Various decimalisation schemes were considered – the Pound-and-Mil scheme, the Farthing scheme, the Half-penny scheme, the Alb scheme, etc. – but all were determined to have deficiencies, and transition would be too difficult and expensive. The £sd system was maintained in Britain until 1971.
As countries of the British Empire became independent, some abandoned the £sd system quickly, while others retained it almost as long as the UK itself. The United States of America was among the first to drop the £sd system and adopt a decimal currency in 1792, 10 years after independence from the British Empire, but retains many other aspects of the customary units for length and weight. Australia, on the other hand, only changed to using a decimal currency on 14 February 1966. New Zealand did so on 10 July 1967. Still others, notably Ireland, decimalised only when the UK did. The UK abandoned the old penny on Decimal Day, 15 February 1971, when one pound sterling became divided into 100 new pence. This was a change from the system used in the earlier wave of decimalisations in Australia, New Zealand, Rhodesia and South Africa, in which the pound was replaced with a new major currency called either the "dollar" or the "rand". The British shilling was replaced by a [Five pence (British coin)|5 new pence coin] worth one-twentieth of a pound. In Europe, decimalisation of currency began in Revolutionary France with the law of 1795, replacing the £sd accounting system of the Ancien régime with a system of 1 franc = 10 decimes = 100 centimes. Decimalisation was carried by French armies to neighboring European countries during the Napoleonic wars. By the mid-19th century, most of continental Europe had decimalised, leaving the United Kingdom as the only major country to continue to maintain the £sd system.
All countries and territories that formerly used the £sd system have now decimalised their currency, with most decimalisations occurring after the Second World War. Malta decimalised its currency in 1972, while Nigeria decimalised in 1973. The British pound sterling and Irish pound were among the last to be decimalised, on 15 February 1971.
In places where £sd was used, there were several approaches to decimalisation:

The pound remained the base unit, but was subdivided into new fractional units of of a pound. The new fractional unit was worth 2.4 old pence. Malta also created a fractional unit worth of a pound, called the "mil", worth slightly less than a farthing.
A new base unit was created equal to ten shillings, and subdivided into 100 fractional units, with one fractional unit equal to of a shilling or 1.2 old pence. This was the approach adopted in South Africa, Australia, New Zealand, Jamaica, Fiji and many other countries.
A new base unit called the "dollar" was created at parity with the United States dollar. This was done in Canada in 1858 and in many places in the West Indies in the nineteenth and twentieth centuries. In Bermuda in 1970, as the pound was fixed at US$2.40 i.e. US$1 = 100d., this made the new Bermudian dollar equal to exactly 100 old pence, with the new cent equal to one old penny.
Some countries have adopted alternative approaches, such as Ghana, which created a new base unit equal to 100 old pence, with a fractional unit equal to one old penny, Bahamas, which adopted a new base unit equal to seven shillings, with a fractional unit equal to 0.84 old pence, and The Gambia, which created a new base unit equal to four shillings, with a fractional unit equal to 0.48 old pence.

The following table shows the conversion rates of common denominations of coins of the £sd systems. The d, 1d and 3d coins were all demonetised on decimalisation; in the UK and Ireland, the 6d continued in use until demonetised subsequently.

Coin	Amount	New £p
Halfpenny	d.	p ≈ 0.2083p	c ≈ 0.4167c
Penny	1d.	p ≈ 0.4167p	c ≈ 0.8333c
Threepence	3d.	p	c
Sixpence	6d.	p	5c
Shilling	1/–	5p	10c
Florin	2/–	10p	20c
crown (British coin)\|Half crown]	2/6	p	25c

The following coins were not in common circulation in the UK at the time of decimalisation, though the ten shilling note and the pound note were.

Common name	Amount	New £p
Crown	5/–	25p	50c
sovereign (British coin)\|Half sovereign]	10/–	50p	$1
Sovereign	£1	£1	$2

The half crown might have continued in use as 12p but had already been demonetised.

Pre-decimal coins and banknotes

The penny was subdivided into 4 farthings until 31 December 1960, when they ceased to be legal tender in the UK and Ireland. Until 31 July 1969, there was also a halfpenny in circulation. The last £sd coins to cease being legal tender in the UK after Decimal Day were the sixpence, the shilling and the florin. Commemorative crowns minted post decimalisation are still legal tender, but are rarely, if ever, spent.
The last £sd banknote to cease to be legal tender anywhere was the Isle of Man ten shilling note, which ceased to be legal tender there in 2013.

Computing

Computers and calculators sold pre-decimalisation – mostly in the 1960s – occasionally came with special support for the £sd system in the form of a fixed-point currency datatype. The IBM 1401 is one such machine; on Sterling models with £sd support, it had a switch for selecting between IBM and BSI data layouts of £sd on its auxiliary console. The ICT 1301 and the PL/I language also had £sd support.

Writing conventions and pronunciations

In the UK, there were several ways to represent amounts of money in writing and speech, with no formal convention; for example:

: three pounds, seventeen shillings, and ten-and-a-half pence)
£2/3/6, spoken, unless there was cause to be punctilious, "two pound, three and six". Whether "pound" or "pounds" was used depended upon the speaker, varying with class, region and context.
d.
d.
2d: two pence, commonly spoken as tuppence.
3d, commonly spoken as thruppence. The coin commonly referred to as a "threepenny bit".
6d known as a "tanner" or half a shilling.
11d.
1/–, colloquially "a bob"; the slash sign derives from the older style of a long s for "solidus", which is also one name for the sign itself; the '–' is used in place of '0', meaning "zero pence".
2/–
2/6
4/3: "four and threepence", the latter word pronounced "thruppence", "threppence", "throopence" with -oo- as in "foot", or "four-and-three")
5/–
£1/1/– one guinea - historically an amount paid for settlement of legal disputes, but currently still the wager on the winner of a horse race.
£1/10/– : one pound, ten shillings; one pound ten, "thirty bob"
£1/19/ : one pound, nineteen shillings and elevenpence three farthings: a psychological price, one farthing under £2)
£14/8/2 : fourteen pounds, eight shillings and twopence. Commonly read "fourteen pound

Halfpennies and farthings were represented by the appropriate symbol after the whole pence. British typewriters had these precomposed characters as standard, as .
A convention frequently used in retail pricing was to list prices over one pound all in shillings, rather than in pounds and shillings; for example, £4/18/0 would be written as 98/–. This is still seen in shilling categories of Scottish beer, such as 90/– beer.
Sometimes, prices of luxury goods and furniture were expressed by merchants in guineas, although the guinea coin had not been struck since 1799. A guinea was 21 shillings. Professionals such as lawyers and physicians, art dealers, and some others stated their fees in guineas rather than pounds, while, for example, salaries were stated in pounds per annum. Historically, at some auctions, the purchaser would bid and pay in guineas but the seller would receive the same number of pounds; the commission was the same number of shillings. Tattersalls, the main auctioneer of racehorses in the United Kingdom and Ireland, continues this tradition of conducting auctions in guineas at its UK sales. The vendor's commission is 5%. The word "guineas" is still found in the names of some British horse races, even though their prize funds are now fixed in pounds – such as the 1,000 Guineas and 2,000 Guineas at Newmarket Racecourse.

Colloquial terms

Coin	Pronounced	Slang	Slang	Notes
Farthing and ha'penny bit	ˈfɑːðɪŋ, /ˈheɪpni/	"Mag"		UK: Originally made from copper and made a ringing noise when dropped. The game of "penny pitching" was called "mag flying".
Threepenny bit	Thrupney bit or threpney bit	Joey	Australia: trey, or a trey bit, from the French "trois" meaning three. South Africa and Southern Rhodesia: tickey.	UK: When the new threepence coin replaced the fourpence coin in circulation in 1845, it took over its nickname. The coin was silver or silver alloy from 1845 to 1937 and a 12-sided bronze coin from 1937 to 1971.
Fourpenny bit	ˈfɔːpni	Joey		UK: Also known as "groat", from the mediaeval four-penny silver coin of the same name. "Joey" was from the first name of Joseph Hume, the Radical Member of Parliament who championed its reintroduction.
Sixpenny bit	ˈsɪkspns	Tanner, tester, testoon, sprasi	Australia: zack	UK: "Tanner" was derived from the Romany word tano, meaning "small", because it was smaller than a shilling. Tester and testoon derived from the French coin teston. Sprasi, described by Bernard Levin, is unknown.
Shilling	ˈʃɪlɪŋ	Bob or "thin 'un"	Australia: bob, deener	UK: "Thin 'un" because it was thinner than a sovereign coin. Australia: "deener" is likely to have derived from the Latin "dinar" or "denarius".
Two-shilling piece, florin		Two bob, two-shilling bit, two-bob bit	Australia: two bob	UK: Perhaps an early attempt at decimalisation, being ).
Half a crown or half crown				An equivalent coin was not issued in the 1971 decimal currency range since there was no need for a New Pence coin. Australia never had a half crown coin.
Crown or five-shilling piece		Dollar
Ten-shilling note		Ten bob, half a bar	Australia: ten bob	UK: First printed in 1914 by the Treasury during World War I to conserve silver. These early Treasury notes were nicknamed "Bradburys", from the prominent stylised signature of Sir John Bradbury, Permanent Secretary to the Treasury.
Pound		Both coins and notes: quid, nicker. Coins: "sov", "thick 'un". Notes: bar, sheet, note.	Australia: quid, fiddly-did	"Quid" may have originated in the Latin phrase quid pro quo. UK: "Thick 'un" because it was thicker than a shilling. Australia: Fiddly-did was derived from word association.

In popular culture

The currency of Knuts, Sickles and Galleons in the Harry Potter books is a parody of the £sd system, with 29 Knuts to a Sickle and 17 Sickles to a Galleon. It serves as the currency of the Wizarding World, while pounds are still used by Muggles, the non-magical people.
Lysergic acid diethylamide was sometimes called "pounds, shillings and pence" during the 1960s, because of the abbreviation LSD. The English rock group the Pretty Things released a 1966 single titled "£.s.d." that highlighted the double entendre. The Chemical Defence Experimental Establishment called the first field trial with LSD as a chemical weapon "Moneybags" as a pun.
The score of 26 at darts was sometimes called "half-a-crown" as late as the 1990s, though this did start to confuse the younger players. A 26 score is also referred to as "Breakfast", since 2/6, or half a crown, was the standard cost for breakfast pre-decimalisation.