United States Dollar - Etymology

Etymology

In the 16th century, Count Hieronymus Schlick of Bohemia began minting coins known as Joachimstalers (from German thal, or nowadays usually Tal, "valley", cognate with "dale" in English), named for Joachimstal, the valley where the silver was mined (St. Joachim's Valley, now Jáchymov; then part of the Holy Roman Empire, now part of the Czech Republic). Joachimstaler was later shortened to the German Taler, a word that eventually found its way into Danish and Swedish as daler, Dutch as daler or daalder, Ethiopian as ታላሪ (talari), Hungarian as tallér, Italian as tallero, and English as dollar. Alternatively, thaler is said to come from the German coin Guldengroschen ("great guilder", being of silver but equal in value to a gold guilder), minted from the silver from Joachimsthal.

The coins minted at Joachimsthal soon lent their name to other coins of similar size and weight from other places. One such example, was a Dutch coin depicting a lion, hence its Dutch name leeuwendaler (English lion daler).

The leeuwendaler was authorized to contain 427.16 grains of .750 fine silver and passed locally for between 36 to 42 stuivers. It was lighter than the large denomination coins then in circulation, thus it was more advantageous for a Dutch merchant to pay a foreign debt in leeuwendalers and it became the coin of choice for foreign trade.

The leeuwendaler was popular in the Dutch East Indies and in the Dutch New Netherland Colony (New York), and circulated throughout the Thirteen Colonies during the 17th and early 18th centuries. It was also popular throughout Eastern Europe where it lead to the current Romanian and Moldovan currency being called leu(literally "lion").

Among the English speaking community the coin came popularly to be known as lion dollar – and is in fact the origin of the name Dollar. The modern American-English pronunciation of dollar is still remarkably close to the 17th-century Dutch pronunciation of daler.

By analogy with this lion dollar, Spanish pesos – with the same weight and shape as the lion dollar – came to be known as Spanish dollars. By the mid-18th century, the lion dollar had been replaced by Spanish dollar, the famous "piece of eight", which were distributed widely in the Spanish colonies in the New World and in the Philippines. Eventually dollar became the name of the first official American currency.