Swedish riksdaler
Encyclopedia
The riksdaler was the name of a Swedish
coin first minted in 1604. Between 1777 and 1873, it was the currency
of Sweden
. The daler, like the dollar
, was named after the German Thaler
. The similarly named Reichsthaler
, rijksdaalder, and rigsdaler
were used in Germany
and Austria-Hungary
, the Netherlands
, and Denmark-Norway, respectively. Riksdaler is still occasionally used as a colloquial term for kronor
in Sweden.
, 32 öre
or 192 penningar
(singular penning). In 1604, the name was changed to riksdaler ("daler of the realm", c.f. Reichsthaler
). In 1609, the riksdaler rose to a value of 6 mark when the other Swedish coins were debased but the riksdaler remained constant.
From 1624, daler were issued in copper as well as silver. Because of the low value of copper, large plate money (plåtmynt) was issued. These were rectangular pieces of copper weighing, in some cases, several kilograms. (The largest one is worth 10 daler and weighs almost 20 kilograms) They circulated until 1776. As silver became scarce, the silver daler rose in value relative to the copper daler, with the exchange rate between the two eventually being set at a ratio of 3 to 1. Denominations in copper money were marked K.M. or KMT, with S.M. or SMT denoting silver money.
Sweden was the first country in Europe to produce a national paper money issue. This was introduced in 1661 as an emergency measure to reduce the need for the copper plate money. The notes lost much of their value due to over production but succeeded in alleviating the immediate problem. They were issued until 1667. In 1681, the silver daler was debased, such that 1 riksdaler = 2 silver daler, with a further debasement in 1712 resulting in 1 riksdaler = 3 silver daler.
The new currency was issued in banknotes (fiat money
) and silver and copper coins. At first, only the Riksens Ständers Wexel-Banco (the Bank
of the Riksdag of the Estates
) could issue banknotes but, in 1789, the Riksgälds Contor (Swedish National Debt Office
) was established and given the right to issue its own banknotes. The riksdaler specie was minted in silver, the riksdaler banco was issued by the Bank and the riksdaler riksgälds was issued by the Debt Office. Both the Bank and Debt Office issued copper coins.
The riksdaler specie was protected against inflation
through its connection to silver but the banknotes suffered heavily from a seigniorage
induced inflation. In 1803, the values of the two paper moneys were tied, with 1 riksdaler banco = 1½ riksdaler riksgälds. In 1830, the exchange rate to the silver coinage was also fixed, with 1 riksdaler specie = 2⅔ riksdaler banco = 4 riksdaler riksgälds. The value of the copper coins of the Riksens Ständers Wexel-Banco fell (relative to silver) in line with the bank's paper money. Thus, from 1830, there were 128 bank skilling to the riksdaler specie and these became the new standard subdivision of the riksdaler specie in 1834, carrying the name skilling banco.
replaced the riksdaler riksmynt in 1873 with a new currency, the krona
. An equal valued krone/krona of the monetary union replaced the three Scandinavian currencies at the rate of 1 krone/krona = ½ Danish rigsdaler
= ¼ Norwegian speciedaler
= 1 Swedish riksdaler riksmynt.
The now obsolete 25 öre coin was also often referred to as tolvskilling (12 skilling) during most of the 20th century. Although it is correct that 25 öre = ¼ krona (after 1873) = ¼ riksdaler riksmynt (1855–1873) = ¼ riksdaler riksgälds (to 1855) = 12 skilling riksgälds, no such coins ever existed! However, since 1 riksdaler riksgälds = ¼ riksdaler specie (silver), 12 skilling riksgälds = riksdaler specie = 3 skilling specie (silver). Coins in the denomination riksdaler specie were actually issued up to 1855. It is not clear if the name tolvskilling was used as a common name for this coin or if it simply was used to help people to get accustomed to the new decimal system.
After the reform of 1777, silver coins were issued in denominations of , , , ⅓, ⅔ and 1 riksdaler. The Riksgäldscontoret issued ¼ and ½ skilling tokens (pollet) between 1799 and 1802, followed by issues of the Riksens Ständers Wexel-Banco in denominations of , ¼, ½ and 1 skilling from 1802.
In 1830, following the fixing of the relationship between the copper and silver coinages and the various paper money issues, copper skilling were introduced, together with a new silver coinage in denominations of , ⅛, ¼ and ½ riksdaler. The new silver coins were all struck in .750 fineness and were weight related. Production of skilling, , and ⅓ riksdaler ceased.
In 1835, a new copper coinage was introduced, consisting of , ⅓, ⅔, 1 and 2 skilling banco, along with silver riksdaler pieces. Production of the riksdaler ceased. Copper 4 skilling coins were introduced in 1849, followed by silver riksdaler in 1851. These last two coins, which were equal in value, were only minted until 1855 and 1853, respectively.
The reforms of 1855 introduced a new coinage consisting of bronze ½, 1, 2 and 5 öre, silver 10, 25 and 50 öre, 1 and 2 riksdaler riksmynt and 1 riksdaler specie. The silver coins retained the .750 fineness of the preceding issues, causing the 10 öre coin to weigh just 0.85 grams.
In 1777, banknotes were introduced in denominations of 2 and 3 riksdaler, although notes with hand written amounts continued to be issued until 1836. In 1802, smaller denominations of 8, 12 and 16 schillingar were introduced, followed by notes for 10 and 14 skillingar in 1803.
The Riksgälds Contor introduced notes with handwritten denominations in 1790. Printed denominations of 12, 16 and 24 schillingar, 1, 2 and 5 riksdaler were introduced in 1791, followed by 10, 50 and 100 riksdaler in 1816. The Riksgälds Contor ceased printing paper money in 1834.
From 1834, the Riksens Ständers Wexel-Bank issued notes for 8, 12 and 16 schillingar banco and 2 and 3 riksdaler banco. The schillingar banco notes were issued until 1849 but the riksdaler notes were only issued until 1836.
Between 1835 and 1836, the Rikes Ständers Bank introduced notes in denominations of 32 skilling banco, 2, 6⅔, 10, 16⅔, 33⅓, 100 and 500 riksdaler banco. The notes were also marked with the denominations in riksdaler riksgälds (1, 3, 10, 15, 25, 50, 150 and 750) and riksdaler specie (¼, ¾, 2½, 3¾, 6½, 12½, 37½ and 187½). The last of these notes were produced in 1857.
From 1858, the Rikes Ständers Bank issued notes for 1, 5, 10, 50, 100, 500 and 1000 riksdaler riksmynt. Production of these notes was taken over by Sveriges Riksbank
in 1869, with the notes issued until 1873.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
coin first minted in 1604. Between 1777 and 1873, it was the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
of Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
. The daler, like the dollar
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...
, was named after the German Thaler
Thaler
The Thaler was a silver coin used throughout Europe for almost four hundred years. Its name lives on in various currencies as the dollar or tolar. Etymologically, "Thaler" is an abbreviation of "Joachimsthaler", a coin type from the city of Joachimsthal in Bohemia, where some of the first such...
. The similarly named Reichsthaler
Reichsthaler
The Reichsthaler was a standard Thaler of the Holy Roman Empire, established in 1566 by the Leipzig convention. It was also the name of a unit of account in northern Germany and of a silver coin issued by Prussia.-Reichsthaler coin:...
, rijksdaalder, and rigsdaler
Rigsdaler
Rigsdaler is a unit of currency.Rigsdaler may refer to:* Danish rigsdaler* Danish West Indian rigsdaler* Greenlandic rigsdaler* Norwegian rigsdalerSee also* Swedish riksdaler...
were used in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
and Austria-Hungary
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, and Denmark-Norway, respectively. Riksdaler is still occasionally used as a colloquial term for kronor
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
in Sweden.
Penning accounting system
The daler was introduced in 1534. It was initially intended for international use and was worth 4 markMark (money)
Mark was a measure of weight mainly for gold and silver, commonly used throughout western Europe and often equivalent to 8 ounces. Considerable variations, however, occurred throughout the Middle Ages Mark (from a merging of three Teutonic/Germanic languages words, Latinized in 9th century...
, 32 öre
Öre
Öre is the discontinued centesimal subdivision of the Swedish krona. The plural and singular are the same in the indefinite forms, whereas the singular definite form is öret and the plural definite is örena. The name derives from the Latin aureus , the name of a coin worth 25 denarii...
or 192 penningar
Swedish penning
The penning was a Swedish coin first minted between 995 and 1030 and then from about 1150 until 1548. It remained a unit of account until 1777....
(singular penning). In 1604, the name was changed to riksdaler ("daler of the realm", c.f. Reichsthaler
Reichsthaler
The Reichsthaler was a standard Thaler of the Holy Roman Empire, established in 1566 by the Leipzig convention. It was also the name of a unit of account in northern Germany and of a silver coin issued by Prussia.-Reichsthaler coin:...
). In 1609, the riksdaler rose to a value of 6 mark when the other Swedish coins were debased but the riksdaler remained constant.
From 1624, daler were issued in copper as well as silver. Because of the low value of copper, large plate money (plåtmynt) was issued. These were rectangular pieces of copper weighing, in some cases, several kilograms. (The largest one is worth 10 daler and weighs almost 20 kilograms) They circulated until 1776. As silver became scarce, the silver daler rose in value relative to the copper daler, with the exchange rate between the two eventually being set at a ratio of 3 to 1. Denominations in copper money were marked K.M. or KMT, with S.M. or SMT denoting silver money.
Sweden was the first country in Europe to produce a national paper money issue. This was introduced in 1661 as an emergency measure to reduce the need for the copper plate money. The notes lost much of their value due to over production but succeeded in alleviating the immediate problem. They were issued until 1667. In 1681, the silver daler was debased, such that 1 riksdaler = 2 silver daler, with a further debasement in 1712 resulting in 1 riksdaler = 3 silver daler.
Riksdaler accounting system
In 1776, a new currency system was announced, which came into use at the beginning of 1777. The new currency was based on the riksdaler subdivided into 48 skilling (worth two old öre, sometimes spelled schilling with the plural schillingar), with each skilling further subdivided into 16 runstycken. Pre-existing copper coins were halved in value and only the most recent silver coins retained their face values.The new currency was issued in banknotes (fiat money
Fiat money
Fiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.Fiat money originated in 11th...
) and silver and copper coins. At first, only the Riksens Ständers Wexel-Banco (the Bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
of the Riksdag of the Estates
Riksdag of the Estates
The Riksdag of the Estates , was the name used for the Estates of the Swedish realm when they were assembled. Until its dissolution in 1866, the institution was the highest authority in Sweden next to the King...
) could issue banknotes but, in 1789, the Riksgälds Contor (Swedish National Debt Office
Swedish National Debt Office
The Swedish National Debt Office founded by the Riksdag of the Estates in 1789, is a Government agency in Sweden. The first task of the Debt office was to finance the War against Russia started by King Gustav III....
) was established and given the right to issue its own banknotes. The riksdaler specie was minted in silver, the riksdaler banco was issued by the Bank and the riksdaler riksgälds was issued by the Debt Office. Both the Bank and Debt Office issued copper coins.
The riksdaler specie was protected against inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
through its connection to silver but the banknotes suffered heavily from a seigniorage
Seigniorage
Seigniorage can have the following two meanings:* Seigniorage derived from specie—metal coins, is a tax, added to the total price of a coin , that a customer of the mint had to pay to the mint, and that was sent to the sovereign of the political area.* Seigniorage derived from notes is more...
induced inflation. In 1803, the values of the two paper moneys were tied, with 1 riksdaler banco = 1½ riksdaler riksgälds. In 1830, the exchange rate to the silver coinage was also fixed, with 1 riksdaler specie = 2⅔ riksdaler banco = 4 riksdaler riksgälds. The value of the copper coins of the Riksens Ständers Wexel-Banco fell (relative to silver) in line with the bank's paper money. Thus, from 1830, there were 128 bank skilling to the riksdaler specie and these became the new standard subdivision of the riksdaler specie in 1834, carrying the name skilling banco.
Decimal system
In 1855 two reforms took place, the introduction of the riksdaler riksmynt and the change to a decimal system. One riksdaler specie was equal to 4 riksdaler riksmynt, each of which was divided into 100 öre. The Scandinavian Monetary UnionScandinavian Monetary Union
The Scandinavian Monetary Union was a monetary union formed by Sweden and Denmark on May 5, 1873, by fixing their currencies against gold at par to each other...
replaced the riksdaler riksmynt in 1873 with a new currency, the krona
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
. An equal valued krone/krona of the monetary union replaced the three Scandinavian currencies at the rate of 1 krone/krona = ½ Danish rigsdaler
Danish rigsdaler
The rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....
= ¼ Norwegian speciedaler
Norwegian speciedaler
The speciedaler was the currency of Norway between 1816 and 1875. It replaced the rigsdaler specie at par and was subdivided into 120 skilling . It was replaced by the Norwegian krone when Norway joined the Scandinavian Monetary Union...
= 1 Swedish riksdaler riksmynt.
The now obsolete 25 öre coin was also often referred to as tolvskilling (12 skilling) during most of the 20th century. Although it is correct that 25 öre = ¼ krona (after 1873) = ¼ riksdaler riksmynt (1855–1873) = ¼ riksdaler riksgälds (to 1855) = 12 skilling riksgälds, no such coins ever existed! However, since 1 riksdaler riksgälds = ¼ riksdaler specie (silver), 12 skilling riksgälds = riksdaler specie = 3 skilling specie (silver). Coins in the denomination riksdaler specie were actually issued up to 1855. It is not clear if the name tolvskilling was used as a common name for this coin or if it simply was used to help people to get accustomed to the new decimal system.
Coins
In the 1770s, before the introduction of the new currency, coins were being issued in denominations of 1 öre K.M., 1, 2, 4, 8 and 16 öre S.M., 1 and 2 daler S.M. and 1 riksdaler.After the reform of 1777, silver coins were issued in denominations of , , , ⅓, ⅔ and 1 riksdaler. The Riksgäldscontoret issued ¼ and ½ skilling tokens (pollet) between 1799 and 1802, followed by issues of the Riksens Ständers Wexel-Banco in denominations of , ¼, ½ and 1 skilling from 1802.
In 1830, following the fixing of the relationship between the copper and silver coinages and the various paper money issues, copper skilling were introduced, together with a new silver coinage in denominations of , ⅛, ¼ and ½ riksdaler. The new silver coins were all struck in .750 fineness and were weight related. Production of skilling, , and ⅓ riksdaler ceased.
In 1835, a new copper coinage was introduced, consisting of , ⅓, ⅔, 1 and 2 skilling banco, along with silver riksdaler pieces. Production of the riksdaler ceased. Copper 4 skilling coins were introduced in 1849, followed by silver riksdaler in 1851. These last two coins, which were equal in value, were only minted until 1855 and 1853, respectively.
The reforms of 1855 introduced a new coinage consisting of bronze ½, 1, 2 and 5 öre, silver 10, 25 and 50 öre, 1 and 2 riksdaler riksmynt and 1 riksdaler specie. The silver coins retained the .750 fineness of the preceding issues, causing the 10 öre coin to weigh just 0.85 grams.
Banknotes
Between 1661 and 1667, the Stockholms Banco issued notes in a large range of denominations of riksdaler specie (50 up to 1000), silver daler (50 up to 1000) and copper daler (12½ up to 1000). Paper money production resumed in 1701, with issued from the Kongliga (later Riksens) Ständers Wexel-Banco. Many of these notes had the value written in by hand at the time of issue. Printed denominations were 6, 9, 12, 24 and 36 copper daler (daler KMT).In 1777, banknotes were introduced in denominations of 2 and 3 riksdaler, although notes with hand written amounts continued to be issued until 1836. In 1802, smaller denominations of 8, 12 and 16 schillingar were introduced, followed by notes for 10 and 14 skillingar in 1803.
The Riksgälds Contor introduced notes with handwritten denominations in 1790. Printed denominations of 12, 16 and 24 schillingar, 1, 2 and 5 riksdaler were introduced in 1791, followed by 10, 50 and 100 riksdaler in 1816. The Riksgälds Contor ceased printing paper money in 1834.
From 1834, the Riksens Ständers Wexel-Bank issued notes for 8, 12 and 16 schillingar banco and 2 and 3 riksdaler banco. The schillingar banco notes were issued until 1849 but the riksdaler notes were only issued until 1836.
Between 1835 and 1836, the Rikes Ständers Bank introduced notes in denominations of 32 skilling banco, 2, 6⅔, 10, 16⅔, 33⅓, 100 and 500 riksdaler banco. The notes were also marked with the denominations in riksdaler riksgälds (1, 3, 10, 15, 25, 50, 150 and 750) and riksdaler specie (¼, ¾, 2½, 3¾, 6½, 12½, 37½ and 187½). The last of these notes were produced in 1857.
From 1858, the Rikes Ständers Bank issued notes for 1, 5, 10, 50, 100, 500 and 1000 riksdaler riksmynt. Production of these notes was taken over by Sveriges Riksbank
Sveriges Riksbank
Sveriges Riksbank, or simply Riksbanken, is the central bank of Sweden and the world's oldest central bank. It is sometimes called the Swedish National Bank or the Bank of Sweden .-History:...
in 1869, with the notes issued until 1873.
See also
- History of copper currency in SwedenHistory of copper currency in SwedenThe Swedish Empire had the greatest and most numerous copper mines in Europe as it entered into its pre-eminence in the early 17th century as an emerging Great Power. Through poor fiscal policies and in part the Treaty of Älvsborg, Sweden lost control of its reserves of precious metals, primarily...
- Danish rigsdalerDanish rigsdalerThe rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....
- Norwegian rigsdalerNorwegian rigsdalerThe rigsdaler was the unit of currency used in Norway until 1816 and in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively.-History:...
- Norwegian speciedalerNorwegian speciedalerThe speciedaler was the currency of Norway between 1816 and 1875. It replaced the rigsdaler specie at par and was subdivided into 120 skilling . It was replaced by the Norwegian krone when Norway joined the Scandinavian Monetary Union...
- Swedish kronaSwedish kronaThe krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...
- Danish kroneDanish kroneThe krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
- Norwegian kroneNorwegian kroneThe krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
- Icelandic krónaIcelandic krónaThe króna is the currency of Iceland. The króna is technically subdivided into 100 aurar , but in practice this subdivision is no longer used....