Charlemagne (747 – 814), King of the Franks and later Holy Roman Emperor, set up a new monetary system based on a system introduced by his father, Pippin. Pippin’s system, in turn, was based on the old Greek and Roman Libra, Solidus and Denarius (l. s. d.) This old system was based on gold which became scarce after the conclusion of peace with Byzantium and the resulting loss of trade routes to Africa and the East.

Denier from the era of Charlemagne

Charlemagne’s new standard was based on silver. The livre (pound) which was worth 20 sous (like the solidus, and later the shilling) or 240 deniers (like the denarius, and eventually the penny). Initially the only coin minted was the denier; the livre and sou were simply counting units. This system was introduced into Charlemagne’s empire, which was most of Europe. England also adopted it.

Charlemagne’s Empire

After Charlemagne’s death, his empire and his reforms in the monetary system, accounting and education began to disintegrate. Continental coinage became totally degraded and the high quality English coinage became the chosen standard up to the 12^th century