The History of Currency, 1252 to 1896Shaw, William Arthur
History
The History of Currency, 1252 to 1896
Shaw, William Arthur
Money -- History
In 1665 complaints were loudly made of the corrupt and debased state of
the coin, due to export and culling. There is, indeed, quite a
literature of these same complaints. The language of the
_Reichstattisches conclusum_ (Ratisbon, 12th September 1666) expressly
attributes this export to the higher value set upon the gold in foreign
countries, especially Venice. And the statement of the warden of the
Mint of the three corresponding circles--Franconia, Bavaria, and
Swabia--delivered in his _Gutachten_ of the preceding May, was that the
place of these good German ducats had been taken by very depreciated
coins of Italy, France, England, and Holland. The three higher circles,
accordingly--Franconia, Bavaria, and Swabia--met in conference and
determined on a thorough investigation. The advice submitted to them
was to raise the thaler from 90 to 96-kreutzer (see account of German
coinage, Appendix V.), implying a lowering of the ratio from 15 to
14-1/8. This proposed scheme was accepted, _in comitia_, in 1667, the
fifth article of the resolution specially mentioning the infliction of
numerous intruding base foreign divisional money. From this scheme
Brandenburg and Saxony held off, maintaining that the ratio had not been
sufficiently lowered, considering the condition of the production of
gold; and, in the same year, by a Mint treaty between Frederick William
of Brandenburg and the Elector of Saxony, the so-called _Zinnaische_
standard was adopted for those two states. According to this standard,
the Reichs thaler was raised to 105-kreutzer (1 florin 45 kreutzers) and
a ratio of 13-5/9 was established.
The result of this action of Saxony and Brandenburg was to strip the
three higher circles of their silver, and in two years (1669) they
anxiously met again to consider the question, not only of the foreign
base coin everywhere prevalent, but also of the damaging exchange "and
ceaseless melting down and exchange of proper coin from the circles."
By a strenuous effort the three circles carried through the Reichstag of
1680 their resolution to reduce the Reichs thaler to 90 kreutzer (ratio
15-1/4). From this decision the Emperor stood apart, with Bavaria and
Salzburg, in putting the Reichs thaler at 96 kreutzer.
In view of such contrariety the impossibility of any general régime for
the empire became apparent, and further attempts at it were practically
abandoned. It was the perception by the mercantile community, as well as
by the various Governments, of the consequences of such disorder, that
led to the establishment of the so-called Leipzig standard in 1690. This
standard was promoted by John George III. of Saxony, and established by
treaty between Saxony, Brandenburg, and Brunswick-Luneburg. According to
it the Reichs thaler was raised to 120 kreutzers, or 2 florins, the mark
being minted into 12 thalers or 18 guldens.
Public-domain text, read in full here on John Shaqi.
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