The History of Currency, 1252 to 1896

The foundations of a national Mint, or monetary system for the Netherlands, were first laid by the ordinance issued by the Emperor Maximilian at Breda on the 14th December 1489.

According to this ordinance the gold double florin was to be struck at a tale of 44 3⁄4 to the mark Troy, of a fineness of 23 7⁄8 carats, and issued at an equivalence of 80 gros.

The remaining gold coins were to comprise the St. Andries florin = 40 groschen (and its half); while the silver coins were to comprise—

Gros = 1 gros.
Pattart = 2 gros.
Double pattart = 4 gros.
Grand double = 8 gros.

In great part this is to be regarded as an ideal or unrealised system. The first effectual regulation of the silver coinage was made in the ordinance of Charles V. of 22nd February 1542.

This ordinance prescribed the minting of the silver carolus, in imitation of the Dutch thaler.

The practical effect of this measure, therefore, was to introduce a coin equal to, and therefore representative of, the hitherto fictitious or merely ideal gulden.

The remaining tariffs of the succeeding hundred years or so, together with the bimetallic experience of the Netherlands, have been already briefly described in the text (supra, pp. 71, 77). On the declaration of independence by the Northern Provinces, and the separation of the United Netherlands from the Southern or Spanish Netherlands, which succeeded, the monetary history of these two portions of the Low Countries bifurcates.

We are here concerned only with that of the Northern or United or Dutch Provinces, as being of more commercial interest in European history of the seventeenth and eighteenth centuries.

By Article 12 of the Union, each of the seven United Provinces was bound to conformity in the course or tariffing of its money, while left free to determine the species and mere numismatic detail of the coins.

The various tariffs therefore, already described, contain the Mint law as applied to the United Provinces; but it was not until 1606 that a serious attempt at systematisation was made. By the great plakkaat of 21st March 1606, completed by that of 6th July 1610, a new and very full tariff was imposed; an important regulation was made, declaring all coins which lacked more than 1 1⁄2 engels over and above the remedy, to be taken as bullion and not current as coin, and the indenture details of the gold coins were fixed, as it proved, throughout the life of the Republic.

The gold rijder and the gold ducat were prescribed as follows:—

GOLD RIJDER.

Weight (gross), 207.2 azen (= 9.95 grs.).
Weight (of fine gold), 187.77 azen (= 9.11 grs.).
Standard, 22 carat (= .9167).
(Equivalence = 10 fl. 2 st.).

GOLD DUCAT.

Weight (gross), 72 1⁄2 azen (= 3.494 grs.).
Weight (of fine gold), 71.43 azen (=3.432 grs.).
Standard = 23 carat 8 grs. (= .9826).
(Equivalence = 3 fl. 16 st.).

By Article 23 of this same ordinance of 1606, the further minting of billon money was forbidden, and at the same time it was enacted, with regard to the lower denominations of silver coins (schillings and smaller pieces), that not more than one-tenth of any total settlement should be tenderable in them, in case of sums exceeding 100 guldens.

The succeeding experience of the effect of these tariffs, involving, as they did, the almost total disappearance of the great silver coins, even already by the year 1638, led in 1659 to the institution of two new silver coins—(1) the silver ducat, .868 fine, and containing 507 azen fine silver; and (2) the silver rijder, .937 fine; and containing 634.75 azen fine silver.

By the plakkaat of 25th December 1681, the states of Holland and West Friezland prescribed the minting of the gulden piece, thus at last making the gulden, so long simply an ideal money or money of account, a real coin, and laying the basis of a truer national currency system.

By subsequent proclamations and resolutions of the States-General of the 17th March 1694, and 31st December 1699, this was adopted for all the United Provinces.

The single gulden piece was to be of the standard of 10 pf. 22 1⁄2 grs., and to contain 200 azen fine silver.

This coin remained the mint coin of the Dutch system, without any further alteration of tariff, or any need of it till 1806.

With regard to the development of a specific law of tender, the legislation of the United Provinces was peculiarly involved. The first declaration of a wide nature was that of the 26th September 1686, which reduced certain coins,—the silver ducat and two others—to the position of trade money merely. This was repeated in the declaration of the States-General of the 7th August 1691. The declaration of the 1st August 1749 ascribed a similarly restricted character, of trade money merely, to all gold coins except the gold rijder and its half. These latter were fixed at an equivalence of 14 and 7-florin respectively. The gold ducats were not fixed, their course as trade money might fluctuate daily. They might be taken freely by weight, and at values determined by the course of trade.

The meaning of this provision can only be read in the light of the experience of the preceding half century. Up to this date (1749) there had existed, in theory, a silver standard with gold rated to it by each succeeding tariff. The fall of silver throughout the seventeenth century had acted adversely on gold, and for long the currency had consisted almost entirely of silver. This fall received some slight check in the earlier part of the eighteenth century, and the result was a reverse tendency. Gold came back into circulation, and the full weighted silver coins began to flow out and away. A bitter cry was accordingly raised in 1720 by the commercial community, and already in 1720 the Mint authorities had proposed the adoption of the gold rijder as standard, in order to stop the drain.

In 1749, however, the Mint officials felicitated themselves on the non-adoption of this proposal, and prayed that the ducat should be merely declared trade money (26th March 1749); and it was on this advice that the plakkaat of 31st March 1749 passed. It proved insufficient to prevent the export of silver, and on the 1st August following, the States-General issued an order creating the gold rijder provisionally the standard. The right of coining it was reserved to the State, so that there was no standard in the modern sense.

The influence of this measure proved to be very slight, and 172 merchants of Amsterdam petitioned the States-General to declare the tenderableness of the ducat again. The result of a further communication from the Mint officials was the proclamation and ordinance of 1st May 1750, according to which only the gold rijder and half-rijder were declared standard, and all other gold species only trade money. Gradually, however, what the Government had been unable to effect by legislation was accomplished by the mere force of a rise in gold or fall in silver. The gold rijders began to disappear, the complaints as to the disappearance of silver ceased, and the regulations of 1749 and 1750 were superseded. At the time of the French Revolution, therefore, the silver standard was actually in force. Nominally the gold rijder was still legal tender at 14 florins, but actually few specimens of it were in circulation.

In 1798 the establishment of the Batavian Republic necessitated the creation of a Batavian Mint, and on the 12th February 1800 the First Chamber was called upon to consider the coins.

It was not, however, until the year 1806, after the Republic had been superseded by the imposition of Louis Napoleon as King of Holland, that an effectual system was enunciated. By the resolution of 15th December 1806, a double standard was adopted.

With the annihilation of the Napoleonic structure this scheme perished, and the law of 28th September 1816 erected a system in which elements of both those previously existing were combined.

The coinage was prescribed to consist of gold and silver standard pieces, and gold and silver trade pieces.

The standard coins were—

1. The Silver Gulden—
Weight = 7 engels (= 10.766 grms.).
Content of fine silver = 200 azen (= 9.613 grms.).
Standard = .893.

This was to be the unit, and divided decimally.

2. The gold piece of 10 Gulden .900 fine.
Weight 140 azen (6.729 grms.).

TRADE COINS.

1. Silver Dukaat—
Weight 18 engels 8 2209⁄11200 azen (28.78 grs.).
Standard, 10 pen. 10 grs. (= .868).

2. Silver Rijder—
Weight, 21 engels 5 59⁄80 azen (= 52.574 grs.).
Standard, 11 pen. 5 3⁄4 grs. (= .937).

3. Gold Dukaat—
Weight, 2 engels 8 24⁄55 azen (= 3.494 grs.).
Standard, 23 kr. 7 grs. (= .983).

The trade money was only minted for private accompt. The unit gulden and the 3-gulden piece were also minted for private accompt, but the divisional silver money, the copper money, and the gold standard 10-gulden piece were only to be minted on Government account.

By Article 15 of this law the franc was adopted in the Southern provinces on a footing of

1 franc = 47 1⁄4 carats.
1 gulden = 2 francs 11 61⁄100 centimes.

Finally, by Article 18, the tender of copper was limited to 1 gulden, and that of the smaller silver denomination to one-fifth of the amount of settlement.

By the succeeding law of 22nd March 1839, the silver Netherland gulden was prescribed to be of the weight of 10 wigtje's or grms., and .945 fine.

This prescription was retained as to the gulden in the more important Act of 26th November 1847.

This Act definitely established the silver standard. The standard coins were declared to be the gulden (and its half) and the rijksdaalder (= 2 1⁄2 guldens). The gold William and the gold dukaat were declared to be trade money, and the minor or divisional silver coins (25 cents and under) were fixed at a fineness of .645. The gold William was to weigh 6.729 grms., .900 fine (content of pure gold, therefore, to be 6.056 grms.). The gold dukaat was to weigh 3.494 grms., .983 fine (therefore to contain 3.4345 grms. fine gold).

The coinage of standard silver coins, and of gold trade coins, was left free to individuals (Article 18). The trade money was expressly declared to be no legal tender (geen wettig betaalmiddel, Article 20).

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 passed 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.

APPENDIX V

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—

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 heller and kreutzer were only alternative forms of the pfennige, not subdivisions of it (heller = Hällische pfennige); but the irregular course of depreciation established a difference in character.[24]

In 1407, in the Bishopric of Würzburg, pfennige were minted at a tale of 400 to the mark and 6 loth fine; Heller 544 to the mark and 4 loth fine. Fifty years later, at Nürnberg, pfennige were being minted 512 to the mark and 5 1⁄4 loth fine (= 1560 8⁄21 to the mark of fine silver), and Heller 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 heller (or 376 hellers), but the ordinance remained ineffectual.

The depreciation against which it vainly strove was not confined to the lower species, such as pfennige and heller. 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 Nürnberg 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 Löwen 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 résumé 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 heller, 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.
3. Zähender = 1⁄10 Rhenish gold gulden, 80 to mark, 15 loth fine.
4. Groschen = 1⁄21 Rhenish gold gulden, 12 loth fine, 136 to mark.

Besides these coins, the ordinance recognised temporarily a whole series of then-current pfennige. Thus—

As explained in the text (p. 96), this ordinance came nowhere into observance, and twenty-nine years later Charles V. issued his second Imperial Ordinance at the Reichstag of Augsburg (1551).

The system then attempted to be instituted was based on a mark of fine silver = 10 florins 12 1⁄2 kreutzers but in denomination a double system was employed—

1. The Reichs gulden (= 1 gold gulden = 72 kreutzers) was prescribed thus—7 1⁄2 to the mark, 14 loth 2 grs. fine (see account of thaler, supra).

2. The kreutzer-piece was prescribed—237 to the mark, 6 loth 1 gr. fine (= 626 3⁄4 to the mark of fine silver).

3. The groschen (= 1⁄24 Reichs gulden)—94 1⁄2 to the mark, 7 loth 5 grs. fine (= 207 99⁄131 to the mark of fine silver).

Accompanying these regulations, however, there was a tariff as before, but more comprehensive, for the temporary recognition of a miscellaneous mass of coins of the Rhine, the Netherlands, Lower Saxony, Higher Saxony, Franconia, and the mark of Brandenburg. Thus—

This ordinance obtained no more vogue than its predecessor, the main cause of its slighting being the dissatisfaction of the powers of Upper and Lower Saxony at the tariffing of the thaler, which they declared to be too low, and accordingly advanced (1555) to 24 groschen (= 32 Marien groschen = 72 kreutzers).

The third Imperial Ordinance was issued at Augsburg on the 19th August 1559. Practically the same standard and basis was maintained as in the preceding ordinance, the mark of fine silver being coined into 10 florins 13 1⁄2 kreutzers in the larger species.

But in the detail of these larger species an important difference was established.

The silver gulden had hitherto been equal to the gold gulden. The actual specie silver gulden in pieces of the time was nominally equivalent to 60 kreutzers. But since 1551 there had been minted a Reichs gulden in specie equal to 72 kreutzers.

In order to mark the difference it was determined to coin in future only silver gulden = 60 kreutzers, while the gold gulden was put at 75 kreutzers.

The specie authorised by this third Imperial Ordinance therefore were—

1. Gold gulden, 72 to mark, 18 1⁄2-carat fine, to equal 75 kreutzers.

2. Silver Reichs gulden, 9 1⁄2 to the mark, 14 loth 16 grs. fine, to equal 60 kreutzers.

3. Thaler, or 72 kreutzers silver gulden, to be discontinued.

4. Kreutzer, to equal 1⁄80 gulden, 243 1⁄2 to the mark, 6 loth 4 grs. fine (= 626 1⁄7 to the mark fine).

5. Reichs groschen, to equal 1⁄24 gulden, 8 loth fine, 108 1⁄2 to the mark; and a few other species.

The lower denominations (pfennige and heller) were minted on the basis of the mark = 11 florins 5 kreutzers.

Almost immediately, protestations were raised against this ordinance, especially by the Lower Westphalian Circle, and it remained quite inoperative. The succeeding Reichstag at Augsburg again authorised the issue of the thaler (8 to the mark, 14 loth 4 grs. fine, so that the fine mark = 10 florins 12 kreutzers).

As late as the Reichstag of Regensburg (1594) desultory attempts were made to establish a uniform system, but all practical idea of it had long ceased, and the regulation of Mint matters henceforth fell into the separate jurisdiction of the various Circles. The Lower Circles went their own way at their meetings at Cologne (1566, 1572, and 1582), as did the Upper Circles in their separate meetings in 1564 and 1572 at Nördlingen and Nürnberg.

At its meeting at Lüneburg in 1568 the Lower Saxon Circle adopted a system not far removed from that of the third Imperial Mint Ordinance of 1559. The mark of fine silver was to be coined into 10 florins 43 11⁄67 kreutzers, and the thaler was fixed at 24 groschen (=72 kreutzers).

Underneath this separately concerted action of the Circles, however, licence and disorder prevailed in the issue of smaller pieces of a grossly depreciated nature, before which the good heavy silver species disappeared, leaving the greatest confusion, together with a continual rise in prices or fall in the standard. The imperial proclamations of 20th January and 24th September 1571 were of no avail against this process, and by 1585 the mercantile rate had risen, thus—

In 1596 the Imperial Commissioners at Frankfort provisionally recognised as a tariff—

But later in the same year these authorities at Strasburg set the Reichs thaler at 84 kreutzers (mark of fine silver = 12 fl. 36 kr.). As the disorder of the Kipper und Wipper Zeit broke over the Empire, in consequence of the process of wilful depreciation, the Emperor made several public attempts at its arrestation by letters addressed to the various Circles separately (1601, 1603, and 1607). Meanwhile, the Reichs thaler had risen to 90 kreutzers (mark of fine silver = 13 1⁄2 florins).

According to this valuation the gulden of 1551 of 72 kreutzers was set at 94 kreutzers, and the gulden of 1559 of 60 kreutzers was set at 79 kreutzers.

It was on this latter basis (of the 60-kreutzer Reichs gulden of 1559 = 79 kreutzers) that was founded the later Misnian, Franconian, and Kammer-Gerichts currencies of the eighteenth century, which did not materially differ amongst themselves, thus—

Misnian gulden @ 31 groschen (= 78 2⁄3 kr.)
Franconian gulden @ 20 batzen (= 80 kr.)
Kammer-Gerichts gulden = 78 kr. 2 10⁄23 thalers.

In 1623 the Higher Circles adopted by their Mint determination the following system:—

Thaler = 90 kr.
Gold gulden = 1 fl. 44 kr.
Ducat = 2 fl. 20 kr.

In the smaller pieces the basis was the mark of fine silver = 16-florin = 10 2⁄3 thaler.

For example—