Book 2
16
The people of Clazomenae, suffering from dearth of grain and scarcity of funds, passed a resolution that any private citizens who had stores of oil should lend it to the State at interest; this being a produce which their land bears in abundance. The loan arranged, they hired vessels and sent them to the depots whence they obtained their grain, 〈and bought a consignment〉 on security of the value of the oil.
16
The same people, owing their mercenaries twenty talents of pay and being unable to find it, were giving the leaders of the troop four talents of interest each year. But failing to reduce the capital debt, and committed to this fruitless drain on their revenue, they struck an iron coinage of twenty talents, bearing the face-value of the silver. This they distributed proportionately among the wealthiest citizens, and received from them silver to the same amount. Through this expedient, the private citizens possessed a currency which was good for their daily needs, and the state was relieved of its debt. Next, they proceeded to pay interest out of revenue to those who had advanced the silver; and little by little distributed repayment among them, recalling at the same time the currency of iron.Plut. Lycurgus speaks of an iron currency at Sparta, and Seneca De beneficiis of a leather one. These, not being exchangeable abroad, threw the nation upon its own resources and prevented the import of luxuries.
