Wampumpeag was a famous currency used by the American
Indians, particularly but not exclusively along the eastern seaboard, and became
widely accepted by the English colonists. The name of the currency, a bit of a
mouthful, was usually shortened to wampum. The peag meant “beads”
in the language of the Indians, and the wampum referred to the white
color of the beads. The most common color was white but some of the beads were
black. Wampum rose to the status of legal-tender currency in 1643 when
Massachusetts set the value of the white beads at eight and the black at four to
the penny for sums no more than 40 shillings. In 1649 Rhode Island set the value
of black beads at four to the penny, but reduced the value in 1658 to eight to
the penny regardless of the color of the beads. White beads, however, were taken
in payment for taxes at six to the penny. As the white man with improved tools
learned to manufacture wampum at a faster rate, the supply increased, and in
1662 Rhode Island ended the acceptance of wampum for payment of taxes.
The shells of clams and other similar bivalves furnished the raw materials
for the manufacture of wampum. The estuarine rivers of the northeast of America
and Canada made fertile breeding grounds for these clams and bivalves. A typical
piece of wampum was a cylindrical bead about one-half inch in length, and about
one-eighth to one-quarter inch in diameter. The beads were strung through a hole
drilled lengthwise through each bead. The ornamental value of wampum remained an
important part of its attraction as a medium of exchange. Wampum strings that
traded as money were usually either 18 inches or six feet in length. They were
usually counted in cubits and fathoms, but could be divided into smaller values.
The black wampum usually traded at twice the value of the white wampum. Both the
English and the Dutch made use of this currency. In 1644 Peter Stuyvesant,
directory general of New Netherland, negotiated a loan of between 5,000 and
6,000 guilders in wampum, which was used to pay workers who were building a fort
in New York.
Several factors caused wampum to gradually lose its value. The Stone Age
technology of some of the tribes known for producing wampum had kept the supply
somewhat in bounds. The colonists brought with them steel drills that
substantially increased wampum production, and the colonists themselves began to manufacture wampum. Also, part of the value of wampum
hinged upon its usefulness in the purchase of beaver skins. As these skins
declined in value, wampum lost some of its value as well. In a matter of a few
years the Indians saw the value of wampum fall by 50 percent, which they
interpreted as efforts of the white man to cheat the Indian.
Nevertheless, in New England the demand for wampum remained strong into the
eighteenth century. In 1760 J. W. Campbell built a wampum factory in New Jersey
and boasted that one person could manufacture 20 feet of wampum per day. This
factory remained in operation for 100 years. The manufacture of wampum still
contributes to the tourist industry.
The history of wampum as money among the American colonists shows that
advanced societies will find a medium of exchange when more official supplies of
money are in short supply.
See also:
References:
Hepburn, A. Barton. 1924. A History of Currency in the United
States.
Martien, Jerry. 1996. Shell Game: A True Account of Beads and
Money in North America.
Taxay, Don. 1970. Money of the American Indians, and Other
Primitive Currencies of the Americas.