By Dr. Richard Pankhurst:-
Difficulties with Menilek’s Currency
The issue of the Menilek currency, which was initiated in 1894, was 
especially difficult in view of the fact that even the Maria Theresa 
dollar – an innovation then already three-quarters of a century old – 
was still not circulating well. The British ethnographer Percy 
Powell-Cotton recorded at the turn of the century that it was often very
 difficult to get the old dollar accepted. Describing a journey from 
Addis Ababa to Asmara, he observed:
“Every piece offered is carefully scrutinised, two or three friends 
being often called in for their opinion. A new one, or one that is much 
worn or on which the ornaments of the neck, especially the points of the
 star, are not clear, is at once rejected. I have had as many as thirty 
of these coins refused out of fifty, but fortunately no two men agree as
 to what should be accepted and what not, so that when I reached Asmara 
there were only some 25 of the 1,500 that no one would look at.”
“Kind-Hearted Menilek Has Minted Coins for Me”
The story of the Menelik dollar is of particular interest in view of 
the difficulties encountered at the time of the introduction of the 
Maria Theresa dollar. A certain amount of popular enthusiasm for the new
 coins is, however, apparent from the following translations of Amharic 
poems from Gojam, collected, many years ago, by our friend Ato Alemayehu
 Mogos. They refer to the advantages of Menilek’s dollar over the amole,
 or salt bar, and the cartridge, both of which were traditionally used 
instead of money.
The first poem goes, in English translation, as follows:
I was greatly inconvenienced by the bulk and weight of the amole, But kind-hearted Menilek has now minted coins for me
To spare us the trouble of loading beasts of burden (with amoles) And
 to save us from the boastful pretensions of the ferenge (i.e. 
Europeans) Kind-hearted Menelik made his dollars for us.
The second poem runs as follows:
Go out of the market, you salt and bullets, Abba Dagnew (i.e. 
Menelik) has made the white man’s dollars. Dagnew, give us many of the 
dollars you have made, And let your servant be rich, and without need.
Popular Resistance
Notwithstanding the spirit embodied in such poems, Menilek’s currency
 seems to have met with considerable popular resistance. The Emperor was
 obliged to issue a proclamation, in 1895, in which he declared, “Let 
anyone who refuses this thaler (dollar) be taken by force and brought 
before us.”
Fourteen years later, in 1909, a similar decree was issued which 
prohibited people from the continued use of bullets instead of money, 
and imposed a fine of a dollar for every bullet used as currency.
Such decrees had little effect in overcoming public suspicion, or 
dislike, of the new currency. All evidence suggests that the Ethiopian 
public were now obstinately wedded to the Maria Theresa dollar, which, 
as we have seen, they had earlier only been accepted with great 
difficulty.
The limited success of the new coins may be seen from the fact that 
between 1894 and 1911 only one and a quarter million Menilek dollars 
were issued, whereas, in the same period the Vienna mint produced no 
less than 58 million Maria Theresa dollars, the majority of which are 
believed to have been exported to Ethiopia and Eritrea. The British 
banker MacGillivray, who visited Addis Ababa in 1905, states that only 5
 per cent of the coins in the treasury were Menilek dollars.
The remaining 95 per cent, dear reader, were of course Maria Theresa thalers.
Bank Notes Not Accepted at the Customs or Post Office
Bank notes were issued, by the then Bank of Abyssinia, in 1914-1915. 
The French envoy and scholar Maurice De Coppet states that they were 
accepted neither at the Ethiopian Customs, nor at the Addis Ababa Post 
Office. Notes were in fact used mainly by Europeans in the capital, who 
found it inconvenient to employ dollars for large transactions. A sack 
of 500 of silver coins weighed a full 14 kilos.
The “Tallero Eritreo” Abandoned
The difficulties accompanying the introduction of Menilek’s currency 
were closely paralleled by those encountered by the Italians in Eritrea,
 where the Tallero Eritreo, a special coin issued for use in the Italian
 colony, (and adorned with the fine mustache of the King of Italy) was 
instituted in 1890. Notwithstanding Italian attempts to popularise the 
new coin, the public in large measure refused to accept it. People 
called it the “bad ” dollar in contradistinction to the “good” dollar of
 Maria Theresa. The Tallero was in fact such a failure that the Italians
 were soon obliged to suspend its production.
The Bank of Abyssinia
In 1905 Emperor Menilek founded the Bank of Abyssinia, as an 
affiliate of the National Bank of Egypt. The new institution was 
conceived as an instrument of innovation. In his first report, the first
 Governor, MacGillivray, declared:
“The Bank for the first few years of its existence will not be a Bank
 in the ordinary sense of the word. It will have to do many things 
unknown in banking. For example, if the Emperor wishes for 1,000,000 
cartridges, he will naturally ask the Bank to get them for him, and if 
he thinks he is being cheated of his Customs receipts, he will expect 
the Bank to right things for him. In a word, the Bank must look after 
the Emperor’s financial interests.”
The Bank, however, could not make a rapid contribution to the 
country’s economic life as a whole, for it took time for the public to 
understand its workings. In 1908 the British envoy, Lord Hervey, 
reported, spitefully, that the general impression on the establishment 
of the bank seemed to be that it had been “created to lend money to all 
and sundry who might apply for it, such trifling considerations as 
collateral security or guarantees being ignored.”
Sophistication in banking matters developed only slowly. A quarter of
 a century later a British woman resident of Addis Ababa, Fan C. 
Dunckley, observed that the typical yokel believed that he always 
withdrew the identical dollar he paid in, that in fact when he paid in 
his dollar the Bank set it aside to be withdrawn by himself exclusively.
Innovation in Education
The Menelik era was also a period of innovation also in the fields of
 education and health. Missionaries had long been active in education, 
and had done good work in teaching their students various trades. The 
British traveller August B.Wylde, often a stern critic, nevertheless 
observed that Ethiopians cared so much for their religion that it was 
usually the “more worthless ones – people who were willing to change 
their faith the same as they would their clothes – who found their way 
to the mission stations.”
A statement worth pondering over!
Menilek, as his successor Emperor Haile Sellassie later declared, 
nevertheless recognised that the opening up of relations with foreign 
states had rendered the traditional system of Ethiopian education 
“insufficient and that it was necessary to bring it into line with 
theirs.”
Menilek appears also to have realised that development could not be 
achieved merely by the import of foreigners with special skills, as many
 of the earlier rulers had imagined, but necessitated the training of 
Ethiopians to do the work themselves.
Students Sent Abroad for Study
The first Ethiopian students to be sent abroad by Menilek for modern 
education left the country in 1894. Only three in number, they went to 
Switzerland, and later to Italy. Suspicion as to their lack of loyalty, 
during the subsequent Italian invasion of 1895-1896, may well have 
discredited the idea of study in Catholic Western Europe. A further five
 students, however, went shortly afterwards to Russia, a country which 
was preferred on account of its Orthodox faith and monarchical 
institutions.
This early band of foreign educated Ethiopians included at least two 
notable innovators. Afewerk Gabre Yesus, who was educated in 
Switzerland, and later Italy, became, as we shall see, a strong advocate
 of modernisation. Takla Hawaryat, who was educated in Russia and 
patronised by Princess Volkonsky, granddaughter of the Decembrist of 
that name, subsequently emerged as one of the more important modernisers
 of the Tafari Makonnen regency period.
The foreign educated, however, also included other innovators, among them Tessema Eshete, who had studied in Germany.
The Menilek II School, Ethiopia’s first government school, was 
established in 1908, a French community school having been set up in the
 previous year. To avoid the conservative objection that the country’s 
religion might be undermined by the teaching of foreigners of another 
faith, Coptic teachers were imported from Egypt for the Menilek school. 
According to the modern Ethiopian scholar, our friend Dr Haile Gabriel 
Dagne, one of the most strenuous opponents of foreign-type education was
 Abuna Matheos, the Egyptian head of the Church, who was thus placated 
by handing over education to his fellow Copts.
Most of the pupils were children of the nobility, many of them 
brought up at the Palace, whose attitudes the Emperor wished to 
modernise. These pupils, as Emperor Haile Sellassie later observed, were
 “under strict orders” to attend their lessons.
Did Ignorance Make Cannon and Aeroplanes?
The excitement with which the opening of these schools was greeted by
 at least one enlightened Ethiopian of the time may be seen from an 
anonymous essay. Its author, who blends references to cannon and 
aeroplanes with allusions to the Bible, declared that “the construction 
of schools is more important than anything else.” He goes on to argue 
that:
“learning means the foundation of civilisation, of wealth, of honour,
 of purity, of good character. If we examine the history of former times
 we will ascertain that a learned man is more honoured than an 
unlettered one. Our evidence for this is the Holy Bible.”
Turning, more practically, to modern, times he concludes, by asking:
“Do you think it is ignorance which has constructed for man’s 
advantage, cannon, aeroplanes, telegraphs, railways, submarine … No !
“Now, why should we be the last of all in introducing knowledge in 
our midst, and what is it that prevents us from sending our children to 
school?”
Good questions, dear anonymous essayist!
Source: http://www.linkethiopia.org
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