Gresham, Sir Thomas (1519?-1579), an English merchant and financier, founded the Royal Exchange in London. He is famous for stating the economic principle now known as Gresham’s law. This law states that “bad money drives out good.” By this, Gresham meant that if two coins have the same purchasing power but differing values as metal, people will tend to hoard the more valuable coin, leaving the less valuable one in circulation.
Gresham was born in London and educated at Cambridge University. He became a member of the Mercers’ Company in London and amassed a great fortune. From 1559 to 1561, he was English ambassador to the Netherlands. Queen Elizabeth I knighted him for his services.
After his only son died in 1564, Gresham devoted all his wealth to charity and public services. Gresham began building the Royal Exchange in 1566. It was completed in 1568. Gresham died on Nov. 21, 1579. Gresham College was founded at his home in Bishopsgate Street, London, after his death, to provide free public lectures on astronomy, divinity, law, music, medicine, and rhetoric. The lectures have been given since 1597.
See also Gresham’s law .
