The History of Currency, 1252 to 1896Shaw, William Arthur
History
The History of Currency, 1252 to 1896
Shaw, William Arthur
Money -- History
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.
Public-domain text, read in full here on John Shaqi.
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