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Milling, also called reeding, was first added to the edges of gold and silver coins during the Middle Ages to combat a form of theft called "shaving".

When coins had smooth edges crooks would scrape tiny bits of metal from around the rim. Done carefully, shaving didn't make the diameter obviously smaller so the criminals simply re-spent the coins at their original value. The scrapings were then sold for an added, uh, profit.

Adding reeds to coins' edges made shaving much more obvious. Anyone who tried to spend a shaved coin would immediately arouse suspicion, which greatly reduced its incidence.

Shaving is no longer a threat because modern circulation coins are don't contain gold or silver, but many mints still add reeding to their coins' edges. In the US and Canada reeding is retained mostly a matter of tradition, but other countries use it to help make coins more easily recognizable to people with visual impairments. For example, many euro coins are similar in size but different denominations are distinguished by having narrow (closely-spaced) reeds, wide reeds, or even "interrupted" reeds; i.e. alternating segments of reeded and smooth surfaces.

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Related Questions

Why did the Phoenician government require coins to be milled?

It prevented thieves from shaving off precious metal from around the edges of coins.


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