Sir Thomas Gresham, a 16th century financial agent of the English Crown in the city of Antwerp, was one in a long series of proponents of the law, which he did to explain to Queen Elizabeth I what was happening to the English shilling. Her father, Henry VIII, had replaced 40% of the silver in the coin with base metals, to increase the government's income without raising taxes. Astute English merchants and ordinary subjects saved the good shillings from pure silver and circulated the bad ones. Hence, the bad money would be used whenever possible, and the good coinage would be saved and disappear from circulation.
Sir Thomas Gresham, a 16th century financial agent of the English Crown in the city of Antwerp, was one in a long series of proponents of the .law, which he did to explain to Queen Elizabeth I what was happening to the English shilling. Her father, Henry VIII, had replaced 40% of the silver in the coin with base metals, to increase the government's income without raising taxes Astute English merchants and ordinary subjects saved the good shillings from pure silver and circulated the bad ones. Hence, the bad money would be used whenever possible, and the good coinage would be saved and disappear from circulation.