[MLD-Grounds-Keeper-Willie]

Well said The Saucepan Man. I think that there were of course currencies in different kingdoms and by different races and then of course different regions. Of course there was trade also. I don't think however that there was a universal currency in Middle-earth. In cases like these I think that it is best to assume that they used metals as a way a money. Of course there would be coins, probably gold ones, silver ones, bronze, etc. And the most precious, gold, was worth the most of course. But what about mithril you ask? Well I believe that there were no mithril coins. I believe this because it was such a rare metal that no one would want to use it for currency. They would want to make something beautiful out of it, like a family heirloom or something. But it is also a hard metal, not soft like gold. So it would suit better being used for armor or weaponry, like the coat that Bilbo and later Frodo gets. The Saucepan Man i sright when talking about the exchange rate, I think. I really believe that there was none. It was probably right on the spot like settling on 14 gold coins for a chicken or something. But maybe someone else would buy a chicken for 27 gold coins. And if there is no exchange rate, then is it really money? Maybe trading would be more appropriate since you still are exchanging an item for another item, and it might work better if the item being the coins have no set value.

I think that this is something that Tolkien forgot to address. He pointed out that he has seen many major and minor perfections in his works. Maybe this is one of them, but is it major or minor? I myself would say major seeing as Tolkien might come down hard on himself for leaving out something as simple yet so big as currency. I might be wrong though. Maybe he saw it as simple or maybe he didn't even realized he forgot it at all, and maybe he never intended to have it in there. Whether or not, I think it might be better without it. Middle-earth might not be that enjoyable if it was too realistic, especially if we enjoy the escapism aspect; escaping reality only to enter another...now I just got myself confused, oh well. It's kind of good to have inperfections, having ME seem real is great, but not too real.