Kootut teokset | Samlade skrifter | Selected Works
Writing: A Remedy for the Country

A Remedy for the Country, § 7

Previous Section:

Next Section:

Font size: A A A A


Viewing Options:

§ 7

He who would wish to absolve our ancestors, several centuries ago, from numerous and grave mistakes in the regulation of our monetary system would be inadequately informed about the financial history of the kingdom, while he, on the other hand, who would deny that we ourselves have contributed the most to this situation would be too blind and conceited.

Nine hundred and sixty years ago there were 16 lod of fine silver in one coined mark – that is, 1 mark in coin really did weigh 1 mark of silver – although in 1762, at an exchange rate of 108 mark, it corresponded to 864 mark in coin, each of which weighed about the same as a peppercorn, or 1/864 of a mark of silver.

Throughout these 900 years the tale-value has always gradually risen, and the commodity prices have risen accordingly, and if one takes the trouble to examine the causes of this development, one will always find them in the debasing of the intrinsic worth and weight of the coinage itself under the denominations of öre, mark and daler, which the rulers wanted to be regarded as larger proportions of a full-weighted mark than those in which they actually struck them for their own purposes.

By as much, therefore, as the coined mark was short of 16 lod of fine silver,

so much was it at once debased.

In 1170 the coined mark had already been debased by 100 per cent, in 1422 by 800 per cent; that is to say, 1 riksdaler specie was then equivalent to 1 coined mark. During the reign of Gustavus Vasa1 it was found to be so weak that 2 mark or more were reckoned as equal to a riksdaler. This state of disorder was perpetuated to such an extent that 100 years later, 120 mark were minted from 1 mark of silver, and in 1716 240 mark, or 36 coined mark per riksdaler.

It is upsetting to read in old documents how the changes in our coinage have always been brought about, the deplorable disorders that have arisen from that in commerce and enterprise, and how the subjects have barely extricated themselves from one chaotic situation before they have been led into another by the rulers.

The denominations in daler and mark have thus not denoted any specific quantity of fine silver, but as soon as the rulers have noticed that the subjects had been able to ascertain the intrinsic worth of the minted daler, mark, öre and örtug coins in pure silver and to adjust the value of their commodities and bills of exchange accordingly, they have been ready to mint coins of an even lower intrinsic worth with the same daler and mark denominations, which initially, and as long as their intrinsic worth could be kept secret, retained the value of the better ones, but once that became known and the old currency had been melted down and disappeared, the daler and mark denominations that were either stamped on the silver coins or prescribed by monetary regulations did indeed remain but represented less silver than before; that is to say, the new daler had a smaller ratio to a mark of pure, 16-lod silver than the previous one, which gave rise to new disorders.

I therefore fully concur with Board of Trade Counsellor Polhem when, in his memorial to the Board of Trade of 14 February 1715, he says that “the many mintings, one time after another, have amounted to the same as granting elevated titles to lowly and common people, when the individuals are not made any better or nobler thereby but the title is debased and demeaned.” “For that reason,” he says, “there is no basis on which to value1 anything by a coined mark unless it can be done against a mark of fine silver, or its parts, and in so far as 4 mark constitute a daler, the daler has the same status as the mark.”

On the other hand, it is clear that if such a change in the metal standard of common denominations had never been allowed or one could have used other impressions than those that have denoted the quantity of fine silver that the coins contained, and if everyone had possessed the right to weigh, test and assess them, as is still done in China, such a debasement would never have occurred, nor could the tale-value have been raised or any financial disorders arisen.


  1. Gustavus Vasa (1496–1560) was king of Sweden from 1523 until his death.

Original documents

Previous Section:

Next Section:

Places:

Names:

Biblical references:

Subjects: