The History of Currency, 1252 to 1896 Part 31

The tender of silver divisional coins was limited to 10 guldens, and that of copper coins to 1 gulden.

This silver standard continued in force until 1872. In that year, however, in consequence of the fall of silver, a Bill was pa.s.sed to suspend the coining of silver for private accompt. The Mint was closed to its coinage, and for a time Holland had no metallic standard at all, as gold was only merchandise or trade money. This state of things led to the enactment of the law of 6th June 1875, which introduced the gold standard, but under peculiar arrangements.

The standard coins were declared to be--_beside_, or in addition to, the silver standard coins minted previously to the new law--the gold 10-gulden piece, .900 fine, containing 6.048 grs. fine gold (weight, therefore, 6.720 grms.).

The minting of these latter was declared free to the individual, and the minting of the gold Williams ordered to cease (Articles 5 and 6).

No further declaration was made as to tender, so that the standard is to be regarded as a limping rather than a gold standard proper.

TABLE OF THE SILVER COINS OF THE NETHERLANDS.

From Mees, '_Geschiedenis van het bankwezen in Nederland,'_ with additions from 1690.

+-------------+--------------------+------------+---------------+-----------+-------------+---------------+ | | | | | | | | | Date of | | | | | | Weight of | | Law. | Name of Species. | Weight. | Standard. | Weight of | Equivalence.| Metal Fine in | | | | | | Metal | | the Gulden. | | | | | | Fine. | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+ | | | Eng. Az. | Penn. Grein. | Az. | Guil. St. | Az. | |Feb. 22, 1542|Karolus gulden | 14.30 | 9 23 | 396.674 | 1 0 | 396.674 | |June 4, 1567 |Bourgondrische or | | | | | | | | Kruisdaalder | 19.1 | 10 16 | 541.333 | 1 12 | 338.333 | |Feb. 10, 1577|Staten daalder | 20.0 | 8 22 | 475.555 | 1 12 | 297.222 | |Apr. 19, 1583|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 15 | 534.792 | 2 2 | 254.663 | |Aug. 4, 1586 |Nederland reaal | 22.13 | 9 23 | 595.01 | 2 10 | 238.004 | |Mar. 21, 1606|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 7 | 224.894 | | " |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 1 18 | 225.263 | | " |10-stuiver piece | 3.28 | 11 0 | 113.666 | 0 10 | 227.333 | |Tolerantie,} | | | | | | | | June 28, } |Nederland | | | | | | | 1608 } | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 8 | 220.208 | | Tariff, } |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 1 18 | 225.263 | | July 6, } |10-stuiver piece | 3.28 | 11 0 | 113.666 | 0 10 | 227.333 | | 1610 } | | | | | | | |Sep. 26, 1615|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 8 | 220.208 | | " |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |Feb. 13, 1619|Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |July 21, 1622|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 10 | 211.4 | |Tolerantie, |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |Oct. 9, 1638 |Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 10 | 211.4 | |Mar. 6, 1645 |Dakaton of Brabant | 21.7 | 11 6-1/2 | 637.741 | 3 3 | 202.458 | | " |Patacon (or | | | | | | | | kruisdaalder or | | | | | | | | kruisrijksdaalder)| 18.12 | 10 11 | 512.458 | 2 10 | 204.983 | |Aug. 11, 1659|Nederland silver | | | | | | | | rijder | 21.5.72 | 11 6 | 635.362 | 3 3 | 201.702 | | " |Nederland silver | | | | | | | | dukaat | 18.8.2 | 10 10 | 507.118 | 2 10 | 202.847 | |Sept. 25,} | | | | | | | | 1681 } | | | | | | | |Dec. 22, } | | | | | | | | 1686 } |3-gulden piece |20.17-86/100| 11 0 | 603.038 | 3 0 | 201.013 | |Aug. 7, } |Gulden | 6.27-46/100| 10 22-1/2 | 200.035 | 1 0 | 200.035 | | 1691 } | | | | | | | |March 17,} | | | | | | | | 1694 } | | | | | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+ |1806 (Louis} |Gulden | 6.27-23/20 | 10.22-3/4 | ... | ... | ... | | Napoleon) } |50-stuiver piece |17.4-7/32 | 10.22-3/4 | ... | ... | ... | |Sep. 28, 1816|Gulden | 7.0 | 0.893 fine | 200 azen | ... | ... | |Nov. 26, 1847|Gulden | 10 grms. | 0.945 fine |9.-450/1000| ... | ... | | | | | | grms. | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+

TABLE OF THE GOLD COINS OF THE NETHERLANDS.

(From Mees, as above, with additions.)

+-------------+----------------+----------+-----------+---------+------------+-------------+ | Date of | | | |Weight of| |Weight of | | Law. |Name of Species.| Weight. |Standard. | Metal |Equivalence.|Metal fine in| | | | | | Fine. | | the Gulden. | +-------------+----------------+----------+-----------+---------+------------+-------------+ | | |Eng. Az. |Kar. Grein.| Az. | Guil. St. | Az. | |Dec. 14, 1489| Hungary dukaat |2.8-24/35 | 23 7 | 71.424 | 1 6 | 54.941 | | | | | | | | | |Feb. 4, 1520 | " " |2.8-24/35 | 23 7 | 71.424 | 1 18 | 37.591 | | | | | | | | | |July 11, 1548| " " |2.8-24/35 | 23 7 | 71.424 | 2 1 | 34.841 | | | | | | | | | |Feb. 7, 1573 | " " |2.8-24/35 | 23 7 | 71.424 | 2 15 | 25.972 | | | | | | | | | |Dec. 3, 1575 | " " |2.8-24/35 | 23 7 | 71.424 | 3 0 | 23.808 | | | | | | | | | |May 7 and | | | | | | | | 20, 1583 | Holland dukaat |2.8-24/35 | 23 7 | 71.424 | 3 5 | 21.976 | | | | | | | | | |Aug. 4, 1586 |Nederland dukaat|2.8-24/35 | 23 7 | 71.424 | 3 8 | 21.007 | | | | | | | | | |April 2, 1603| " " |2.8-24/35 | 23 7 | 71.424 | 3 14 | 19.304 | | | | | | | | | |Mar. 21, 1606|Nederland rijder| 6.16 | 22 0 |190.666 | 10 2 | 18.878 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 3 16 | 18.796 | | | | | | | | | |July 6, 1610 |Nederland rijder| 6.16 | 22 0 | 190.666 | 10 12 | 17.987 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 0 | 17.856 | | | | | | | | | |Sept. 26, | " rijder| 6.16 | 22 0 | 190.666 | 10 16 | 17.654 | | 1615 | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 1 | 17.635 | | | | | | | | | |Feb. 13, 1619| " rijder| 6.16 | 22 0 | 190.666 | 10 16 | 17.654 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 2 | 17.42 | | | | | | | | | |July 21, 1622| " rijder| 6.16 | 22 0 | 190.666 | 11 6 | 16.873 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 5 | 16.805 | | | | | | | | | |Tolerantie, }| " rijder| 6.16 | 22 0 | 190.666 | 12 0 | 15.888 | |Oct. 9, 1638}| " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 10 | 15.872 | | | | | | | | | |March 6, }| | | | | | | | 1645 and }| " rijder| 6.16 | 22 0 | 190.666 | 12 12 | 15.132 | |Jan. 6, }| " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 15 | 15.037 | | 1653 }| | | | | | | | | | | | | | | |March 31, | | | | | | | | 1749 | " rijder| 6.16 | 22 0 | 190.666 | 14 0 | 13.619 | | | | | | | | | +-------------+----------------+----------+-----------+---------+------------+-------------+ | | | | | | | | |1806 (Louis }| | |{22 carat }| 8.4-3/4 | 10 francs | ... | | Napoleon) }| | |{ gold }| | | | | | Gold penning | 8.28-4/9 |{16 grs. }| | | | | | | |{ silver }| | | | | | | | | | | | |1816 | 10-gulden piece| 4.12 | 0.900 fine| ... | ... | ... | |1875 | " " |6-720/1000| 0.900 fine|6.048 | ... | ... | | | | grms. | |fine gold| | | +-------------+----------------+----------+-----------+---------+------------+-------------+

APPENDIX V

THE MONETARY SYSTEM OF GERMANY

The German Mint system inherited from that of Charlemagne the common features noticed already in the case of Florence, the Netherlands, and other countries, namely, the division of the silver libra into 20 solidi (_schillingen_), and of the solidus into 12 denarii (_pfennige_), so that 240 denarii = 1 libra. The solidus occurs (theoretically or in accompt) in both gold and silver. The gold solidus of the German system originally weighed less than the Frankish, which was 72 to the libra, while the German was 80 to the libra.

The ratio of gold to silver was 12:1, so that theoretically 1 pound silver = 1 oz. gold = 6-2/3 gold schilling.

In actual coins, 1 gold schilling = 3 silver schillingen = 36 pfennige.

Gradually this system was superseded by that of reckoning by the mark.

The particular mark which obtained widest acceptance was the Cologne mark, which was thus subdivided--

Cologne mark = 8 Oz.

= 16 Loth.

= 64 Quintlein.

= 256 Pfennige.

= 512 h.e.l.ler.

= 4352 Eschen or Grain.

For the purpose of standard of alloy the mark was differently subdivided. Thus--

Gold alloy weight--

1 mark = 12 carats = 288 grs. (12 x 24).

Silver alloy weight--

1 mark = 16 loth = 288 grs. (16 x 18).

Subsequently, when the gold gulden began to be minted, and to displace in reckoning the gold solidi (6-2/3 to the oz.), a third system of reckoning by gulden, schillingen, and pfennige was adopted. But long before this had become general, the downward course of the pfennige had proceeded apace.

In 1255, in Swabia, the silver mark was minted into 660 pfennige; and in 1276, in Magdeburg, the mark of silver (15 loth fine) into 528 pfennige.

Originally h.e.l.ler and kreutzer were only alternative forms of the pfennige, not subdivisions of it (h.e.l.ler = Hallische pfennige); but the irregular course of depreciation established a difference in character.[24]

In 1407, in the Bishopric of Wurzburg, pfennige were minted at a tale of 400 to the mark and 6 loth fine; h.e.l.ler 544 to the mark and 4 loth fine. Fifty years later, at Nurnberg, pfennige were being minted 512 to the mark and 5-1/4 loth fine (= 1560-8/21 to the mark of fine silver), and h.e.l.ler at 704 to the mark and 3-1/2 loth fine (= 3218-2/7 to the mark fine).

The course of depreciation proceeded from the unregulated, irresponsible mintings of the small states, and from base financier craft. During the fourteenth century it proceeded apace, in spite of the attempts at a reform made by the Emperor Charles IV. In 1356 he prescribed the minting of the mark of silver into 31 schillingen 4 h.e.l.ler (or 376 h.e.l.lers), but the ordinance remained ineffectual.

The depreciation against which it vainly strove was not confined to the lower species, such as pfennige and h.e.l.ler. The close of the thirteenth century had witnessed the introduction of a new large silver money, which for a time stood by the side of the schilling, and then gradually displaced it. The new coin--the _groschen_, minted in imitation of the gros Tournois of France--made its first appearance in Bohemia in 1296, when its tale was 63-1/2 to the mark, 15 loth fine. The same process of depreciation at once began to affect it, and during the fourteenth century the downward course of the coin was very rapid, especially in Saxony (see Tables infra., and pp. 30, 97). With the commencement of a gold coinage in the middle of the same century, a third element of confusion was introduced, and quickly the same diversity of weight, alloy, and type began to prevail as in the silver coinage (see Table of the depreciation of the gold gulden, infra., and pp. 31, 98).

The Reichstag, which met at Nurnberg in 1438, found itself driven to record, in simple terms, the right of everybody who could mint to do so according to what standard of fineness and weight he pleased, "seeing the impossibility of a common standard and weight."

The close of the century witnessed the introduction of the last of these numerous confusing elements, but one which was to become of prime importance in the history of German currency, namely, the _thaler_. In its first form it was intended as the silver equivalent of the _gold gulden_, being minted 8 to the mark (i.e. 1 oz. weight per piece), and of fine (or 16 loth) silver. It received the name _gulden groschen_ when first coined by Archduke Sigismund of Austria in 1484; but in the sixteenth century, on account of its great manufacture in Bohemia, it became known as the _Joachims thaler_ (or _Schlicken thaler_, or _Lowen thaler_). The subsequent depreciation of the thaler, which came as a matter of course, was very unequal in the different circles, being most strongly marked in Saxony.

By the first of the Imperial Mint Ordinances, which will be spoken of immediately, the weight of this piece was still retained at 1 oz., but the standard was reduced to 15 loth fine. In 1549 the Elector Maurice fixed the standard at 14 loth 8 grs. fine, while still retaining the tale of 8 to the mark.

The second Imperial Mint Ordinance of 1551 was constructed as a double basis--

1. Of the gulden groschen (i.e. thaler) = 1 gold gulden = 72 kr.

2. Of the gulden groschen (i.e. thaler) = 1 gold gulden = 60 kr.

The tale was altered from 8 to 7-1/2 to the mark, but the standard was lowered still further to 14 loth 2 grs. fine (= 8-120/254 to the mark of fine silver). But in the accompanying tariff the actual specie thaler-piece was set at 22 groschen, or 66 kreutzers.

The third Imperial Mint Ordinance established an important difference from this system. The actual thaler or silver gulden (= 72 kreutzers) was ordered to be discontinued, and no more minted, and a different basis adopted of silver Reichs guldens = 60 kreutzers, at a tale of 9-1/2 to the mark, 14 loth 16 grs. fine.

This intended exclusion of the thaler, however, proved quite ineffectual. Protestations were raised against it, and in the Reichstag at Augsburg the minting of the thaler was again authorised--8 to the mark, 14 loth 4 grs. fine.

The immediately succeeding movement of the thaler is given in the text (see Table, p. 103).

Further than, as above, it is out of the question in so brief a resume to specify the minuter confusions and conflicting variations of the German monetary system at the opening of the sixteenth century. During the course of that century three separate attempts were made to establish an imperial system that should displace all minor ones, and thus remedy the confusion.

The first attempt was made by Charles V. in his Imperial Mint Ordinance issued at Esslingen on the 10th November 1524.

The basis of this ordinance was the mark of silver = 8 florins 10 schillings 8 h.e.l.ler, and the pieces ordained were--

1. A silver piece = 1 Rhenish gold gulden, 8 to the mark, 15 loth fine (see the account of the thaler above).

2. _Orth_, 32 to mark, 15 loth fine.