The History of Currency, 1252 to 1896 Part 34

Mark of fine silver = 20 guldens for all manner of silver coins down to the groschen or 3-kreutzer piece (ratio of silver to gold 1:14-11/21).

The silver coins authorised were--

1. Thaler (specie or convention thaler = 2 fl.), 10 to the mark, 13-1/3 loth fine.

2. Gulden (or 1/2-specie thaler), 20 to the mark, 13-1/3 loth fine.

3. 30-kreutzer piece (1/2-gulden or 1/4-specie thaler), 40 to the mark, 13-1/3 loth fine.

4. 17-kreutzer piece, 70-10/17 to the mark, 8-2/3 loth fine (only for Austria).

5. 7-kreutzer piece, 171-3/7 to the mark, 6-13/18 loth fine (only for Austria).

6. 20-kreutzer piece, 60 to the mark, 9-1/3 loth fine.

7. 10-kreutzer piece, 120 to the mark, 8 loth fine.

8. Groschen or 3-kreutzer piece, 400 to the mark, 5-1/2 loth fine.

For the lowest denomination of divisional coins, half-groschen, kreutzer, and pfennige, quite varying standards were permitted, according to the piece or locality, namely, from 20-3/4 to 33 guldens to the Koln mark.

For tolerated coin the following tariff was fixed:--

GOLD

Bavarian maxd'or and double gold gulden = 6 fl. 8 kr.

Bavarian carolus or 3-gold gulden piece = 9 fl. 12 kr.

Kremnitz ducat } Florentine gigliati} = 4 fl. 12 kr.

Venetian zecchino }

All other gold coins to be taken as bullion at a value of 280 fl.

for the Cologne mark of fine gold. All silver species of other states below the value of 1/2 florin forbidden.

Such was the Convention System or Standard, which, by the accession of the Electoral Palatinate, and of Salzburg might be practically regarded as the Imperial system.

This Convention system, and these Convention or specie thaler and other coins, remained the Mint system of Austria until modern times.

The changes which were made in the Austrian system by the Vienna Convention of 1857 have been already detailed (see text, pp. 209-12).

Ten years later Austria withdrew from this monetary treaty (in accordance with the terms of the treaty of Berlin, 13th June 1867), with the intention of acceding to the contemplated French currency treaty of 31st July 1867. She ceased the coining of German gold crowns and half-crowns, and instead minted 4 and 1-ducat pieces. From 1870 onwards she coined, in conjunction with Hungary, 8 and 4-florin gold pieces, the former 77-1/2 to the pound, .900 fine.

By a decree of 6th November 1870, the 8-florin gold piece was tariffed at 8.10 florin. At this it was made legal tender, on the basis of the French ratio of 15-1/2; but it was practically nothing more than commercial money, like the preceding _crowns_ and _half-crowns_ of the convention of 1857. The standard of Austria remained nominally the silver florin of the convention of 1857, although in actual practice the currency was paper. In March 1879 the Austrian and Hungarian Mints were closed to the coinage of silver on private account, preparatory to a reorganisation of the Austrian monetary system on a gold basis. This reform was decided on in 1892, and briefly prescribed as follows:--

The monetary unit is the krone or crown = 2 florins; but to be minted in 10 and 20-crown pieces, 1 kilogramme pure gold = 3280 crowns, .900 fine.

The crown is divided into 100 h.e.l.lers.

For the purpose of basing the new system on gold, a ratio between the old silver and the new gold standard of 1:18.22 was adopted, the existing florin being declared = 2 francs 10 cents.

Silver is fractional money only, the old florins pa.s.sing as 2 crowns.

South Germany.

From the Convention or 20-gulden system (the old Austrian system) sprang the accompanying system, the 24-gulden standard, which was nothing but the 20-gulden or Austrian standard under another name. Very soon after the establishment of the Convention standard, the Elector of Bavaria perceived or concluded that the continuance of that standard in his dominions would produce disorders so long as the other circles did not accede to the convention. He accordingly arrested the execution of the convention in his territories, and adopted a provisional arrangement. At the end, however, of a long correspondence with the Austrian state (Maria Theresa), an agreement was made that he should conform his coins in standard and weight to the convention system, but should be permitted to tariff them at one-fifth higher rate, putting i.e. the specie thaler not at 2 florins but at 2 florins 24 kr., and so on (the mark of silver being consequently worth 24 guldens, instead of, as in the Austrian or Convention system, 20 guldens).

This was the origin of the 24-gulden standard, which gradually spread over the whole of South Germany, with the exception of Austria. The three Upper Circles acceded in 1761, Salzburg in 1765, and in the following year the Rhenish powers, Mainz, Treves, the Palatinate, Hesse-Darmstadt, and Frankfort.

From this 24-gulden standard sprang towards the close of the eighteenth century a later development, due to the circulation of the kronen thaler or Brabant thaler, which, from 1755 onwards, Austria minted for her Netherland possessions. The Rhenish provinces drove this piece above its Mint rate, setting it at 2 florins 42 kreutzers, although in the 24-gulden standard its value was only 2 florins 38-10/19 kreutzers. This implied a standard of 24-6/11 guldens to the mark of fine silver, and gradually, about the beginning of the present century, Bavaria, Wurtemberg, and Na.s.sau minted convention thalers on the same footing.

Baden, Hesse, and Saxe-Coburg followed suit in their minting of kronen thalers until, by the Mint Convention of the South German states in 1837, the new standard (the 24-1/2-gulden standard) was formally recognised as the South German standard. In this convention Austria had no part.

The standard here detailed, the 24-1/2-gulden or South German standard, was a.s.similated to the Prussian system in the Dresden Convention, 1838 (see text, p. 205), and in that connection remained intact until the developments of modern times detailed in the text, p. 215.

Prussia.

The Prussian monetary system, as a separate ident.i.ty, took its rise in that same period which witnessed the independent action of Austria, above detailed. Its builder was Frederick the Great, who, for this purpose, called in the advice of a Dutch merchant, Philip Graumann. It is to this latter that is due the introduction in 1750 of the 21-gulden or 14-thaler standard, otherwise known as the Graumann standard.

Thaler = 10-1/2 to the mark, 12 loth fine (mark of fine silver therefore = 14 thalers or 21 guldens).

Thaler = 24 groschens = 288 pfennige (24 12).

Groschen and 1/2-groschen minted as divisional coins (= 1/24 and 1/48 thaler) of billon.

After the temporary debas.e.m.e.nt during the Seven Years' War, the Graumann standard was re-established in 1764, but with two differences.

1. The minting of 1/2 and 1/4-thaler pieces of 12 loth silver was ordered to cease from 1766, and to be replaced from 1764 by--

1/3 thaler, 10-2/3 loth, 28 to the mark } 1/6 " 8-1/3 " 43-3/4 " } 14-thaler standard.

1/12 " 6 " 63 " }

2. The billon divisional money (minted primarily for the Provincial States of Prussia) was greatly increased in the amount of its issue, but depreciated in standard on a varying scale according to the districts intended, Silesia, Cleves, etc., reaching in some cases even to an 18-thaler standard. Up to 1772 there was issued in these depreciated single and double-groschen pieces an amount equal to 8,979,189 thalers.

Subsequently, the standard of divisional money was reduced to 21 thalers, and at this rate, up to the death of Frederick in 1786, there were issued in 6-pfennige and other pieces 12,586,863 thalers' worth.

From this time onward, up to the decrying of this depreciated divisional money at the peace of Tilsit, there was minted a matter of 29,628,807 thaler worth.

The total, therefore, was 42,215,670 thalers; the pure silver content of which was only 28,243,780 thalers.

By the publicandum of 4th May 1808, and the edict of 13th December 1811, the value of this ma.s.s was reduced, the coins being set at from two-thirds to four-sevenths of their normal value, so that--

42 groschens } } = 1 good thaler.

52-1/2 " (Bohemia) }

but it was not till the law of 30th September 1821 that a recoinage could be accomplished.

The provisions of this law of 1821 were as follows:--

1. Gold--

Friedrichs d'or as. .h.i.therto, viz. 35 to the mark = 5 thalers.