This statement is fully borne out by the evidence of Xenophanes[257], and also by the coins themselves, although some writers, _e.g._ Th. Mommsen[258], have held that it was in the great cities of Ionia, Phocaea and Miletus that money was first coined. “From the little we know of the character of this people (the Lydians) we gather that their commercial instinct must have been greatly developed by their geographical position and surroundings, both conducive to frequent intercourse with the peoples of Asia Minor, Orientals as well as Greeks.” About the time when the mighty Assyrian empire was falling into decay, Lydia, under a new dynasty called the Mermnadae, was entering upon a new phase of national life. “The policy of these new rulers of the country was to extend the power of Lydia towards the West, and to obtain possession of towns on the coast. With this object Gyges (who, according to the story told by Plato, was a shepherd who owed his good fortune to the finding of a magic ring in an ancient tomb, and who was the founder of the dynasty of the Mermnadae, circ. B.C. 700) established a firm footing on the Hellespont, and endeavoured to extend his dominions along the whole Ionian coast. This brought the Lydians into direct contact with the Asiatic Greeks. “These Ionian Greeks had been from very early times in constant intercourse, not always friendly, with the Phoenicians, with whom they had long before come to an understanding about numbers, weights, measures, the alphabet, and such like matters, and from whom, there is reason to think, they had received the 60th part of the _heavy_ Assyrio-Babylonian mina as their unit of weight or _stater_. The Lydians on the other hand had received, probably from Carchemish, the 60th of the _light_ mina. “Thus then, when the Lydians in the reign of Gyges came into contact and conflict with the Greeks, the two units of weight, after travelling by different routes, met again in the coast towns and river valleys of Western Asia Minor, in the borderland between the East and the West. “To the reign of Gyges, the founder of the new Lydian empire as distinct from the Lydia of more remote antiquity, may perhaps be ascribed the earliest essays in the art of coining. The wealth of this monarch in the precious metals may be inferred from the munificence of his gifts to the Delphic shrine, consisting of golden mixing cups and silver urns, amounting to a mass of gold and silver such as the Greeks had never before seen collected together.” This treasure was called the Gygadas, and is described by Herodotus[259].