Appendix Iv

THE MONETARY SYSTEM OF THE NETHERLANDS

In its earliest known form the Netherlands monetary system reproduces those features of the Carlovingian system which reappear alike in Italy, France, and England.

The ideal Flemish pound was divided into 20 schellingen, the schelling into 12 grooten.

This was entirely an ideal system; the actual coins being, at first, the silver denarius, divided into obols. This ideal system of pounds, schellings, and groots survived in Flanders and the Southern Netherlands (now the kingdom of Belgium) long after it had been superseded in the Northern Provinces (the United Netherlands) by another equally ideal system, that of the gulden and stiver.

According to this latter system the Flemish pound was divided into 6 gulden, the gulden into 20 stivers. As between the two systems, therefore, the Northern gulden was equal to 3-1/3 Southern schellings, and the Northern stiver to 2 Southern groots.

The earliest mention of the stivers occurs in 1355, but it was a considerable time before the new system displaced the old one in the Northern Provinces, and the reckoning by schellings and groots as well as, or alongside of, that by gulden and stivers occurs in Holland even as late as the sixteenth and seventeenth centuries.

The weight system employed for the precious metals was as follows:--

1 pound troy = 2 marks. 1 mark = 8 oz. 1 oz. = 20 engels. 1 engel = 32 azen.

So that 160 engels or 5120 azen made up the mark.

In reckoning the standard or alloy, the weight system was--

For silver--1 mark = 12 pfennige or deniers. " = 288 grs. (12 x 24). For gold--1 mark = 24 carats. " = 288 grs. (24 x 12).

Although forming part of the Holy Roman Empire (being included in the Burgundian Circle), the Mint system of the Empire has apparently never obtained in the Netherlands. The Counts of Holland, from the days of Floris II. and Jan I. (i.e. from 1256 onwards) have minted on their own account, as have also the Counts of Flanders from a much more remote date. The silver deniers of the Counts of Flanders date from at least the days of Count Arnold II. (964-989). The introduction of "la grosse monnaie" (whence gros and groots), in imitation of the French money, dates from the reign of Marguerite, Countess of Flanders (1244-1280), or possibly earlier; and the gold coinage (royaux, in imitation of those of Philip the Long of France, and florins, in imitation of those of Florence) dates from Count Louis de Crecy (1322-1346).

The interest, however, attaching to the monies of the Counts of Flanders and Holland up to the close of the fifteenth century is prevailingly numismatic, as, in the absence of a continuous series of Mint indentures, it is a matter of almost insuperable difficulty to construct tables of the coins. The chief indications are contained in the tariffs already referred to (supra, text, pp. 79-83), but their testimony bears more expressly on exchange rates rather than upon Mint rate and standard.

The table of the groot, according to this source, is as follows:--

Engel. Azen. 1336. 9-pfennige weight, 1 9 1376. 4.16 " 2 4 1388. 5 " 1 23 1393. 5 " 1 20 1422. 4 " 2 16 1489. 5 " 1 5

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 " Double pattart = 4 " Grand double = 8 "

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.

Weight to be 14 engels, 30 azen. Standard to be 10 pfennige (= .853 fine). Equivalence to be 20 stivers.

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.). " (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.). " (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.

GOLD STANDARD COINS.

Gold Penning of 20 francs, 18 to the mark. Alloy, 22 carats gold, 16 grs. silver. Weight, 8 engels 28-4/9 azen. Content of fine gold, 260-3/4 azen.

STANDARD SILVER COINS.

Fifty-stuiver piece--9-5953/17543 to the mark. Weight, 17 engels 4-7/32 azens. Standard, 10 pen. 22-3/4 grs.

Gulden--23-6111/17543 to the mark. Weight, 6 engels 27-23/80 azens.

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.

TABLE OF THE SILVER COINS OF THE NETHERLANDS.

From Mees, 'Geschiedenis van het bankwezen in Nederland,' with additions from 1690.

+-------------+--------------------+------------+---------------+-----------+-------------+---------------+ | | | | | | | | | Date of | | | | | | Weight of | | Law. | Name of Species. | Weight. | Standard. | Weight of | Equivalence.| Metal Fine in | | | | | | Metal | | the Gulden. | | | | | | Fine. | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+ | | | Eng. Az. | Penn. Grein. | Az. | Guil. St. | Az. | |Feb. 22, 1542|Karolus gulden | 14.30 | 9 23 | 396.674 | 1 0 | 396.674 | |June 4, 1567 |Bourgondrische or | | | | | | | | Kruisdaalder | 19.1 | 10 16 | 541.333 | 1 12 | 338.333 | |Feb. 10, 1577|Staten daalder | 20.0 | 8 22 | 475.555 | 1 12 | 297.222 | |Apr. 19, 1583|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 15 | 534.792 | 2 2 | 254.663 | |Aug. 4, 1586 |Nederland reaal | 22.13 | 9 23 | 595.01 | 2 10 | 238.004 | |Mar. 21, 1606|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 7 | 224.894 | | '' |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 1 18 | 225.263 | | '' |10-stuiver piece | 3.28 | 11 0 | 113.666 | 0 10 | 227.333 | |Tolerantie,} | | | | | | | | June 28, } |Nederland | | | | | | | 1608 } | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 8 | 220.208 | | Tariff, } |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 1 18 | 225.263 | | July 6, } |10-stuiver piece | 3.28 | 11 0 | 113.666 | 0 10 | 227.333 | | 1610 } | | | | | | | |Sep. 26, 1615|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 8 | 220.208 | | '' |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |Feb. 13, 1619|Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |July 21, 1622|Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 10 | 211.4 | |Tolerantie, |Leeuwendaalder | 18.0 | 8 22 | 428.0 | 2 0 | 214.0 | |Oct. 9, 1638 |Nederland | | | | | | | | rijksdaalder | 18.28 | 10 12 | 528.5 | 2 10 | 211.4 | |Mar. 6, 1645 |Dakaton of Brabant | 21.7 | 11 6-1/2 | 637.741 | 3 3 | 202.458 | | " |Patacon (or | | | | | | | | kruisdaalder or | | | | | | | | kruisrijksdaalder)| 18.12 | 10 11 | 512.458 | 2 10 | 204.983 | |Aug. 11, 1659|Nederland silver | | | | | | | | rijder | 21.5.72 | 11 6 | 635.362 | 3 3 | 201.702 | | " |Nederland silver | | | | | | | | dukaat | 18.8.2 | 10 10 | 507.118 | 2 10 | 202.847 | |Sept. 25,} | | | | | | | | 1681 } | | | | | | | |Dec. 22, } | | | | | | | | 1686 } |3-gulden piece |20.17-86/100| 11 0 | 603.038 | 3 0 | 201.013 | |Aug. 7, } |Gulden | 6.27-46/100| 10 22-1/2 | 200.035 | 1 0 | 200.035 | | 1691 } | | | | | | | |March 17,} | | | | | | | | 1694 } | | | | | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+ |1806 (Louis} |Gulden | 6.27-23/20 | 10.22-3/4 | ... | ... | ... | | Napoleon) } |50-stuiver piece |17.4-7/32 | 10.22-3/4 | ... | ... | ... | |Sep. 28, 1816|Gulden | 7.0 | 0.893 fine | 200 azen | ... | ... | |Nov. 26, 1847|Gulden | 10 grms. | 0.945 fine |9.-450/1000| ... | ... | | | | | | grms. | | | +-------------+--------------------+------------+---------------+-----------+-------------+---------------+

TABLE OF THE GOLD COINS OF THE NETHERLANDS.

(From Mees, as above, with additions.)

+-------------+----------------+----------+-----------+---------+------------+-------------+ | Date of | | | |Weight of| |Weight of | | Law. |Name of Species.| Weight. |Standard. | Metal |Equivalence.|Metal fine in| | | | | | Fine. | | the Gulden. | +-------------+----------------+----------+-----------+---------+------------+-------------+ | | |Eng. Az. |Kar. Grein.| Az. | Guil. St. | Az. | |Dec. 14, 1489| Hungary dukaat |2.8-24/35 | 23 7 | 71.424 | 1 6 | 54.941 | | | | | | | | | |Feb. 4, 1520 | " " |2.8-24/35 | 23 7 | 71.424 | 1 18 | 37.591 | | | | | | | | | |July 11, 1548| " " |2.8-24/35 | 23 7 | 71.424 | 2 1 | 34.841 | | | | | | | | | |Feb. 7, 1573 | " " |2.8-24/35 | 23 7 | 71.424 | 2 15 | 25.972 | | | | | | | | | |Dec. 3, 1575 | " " |2.8-24/35 | 23 7 | 71.424 | 3 0 | 23.808 | | | | | | | | | |May 7 and | | | | | | | | 20, 1583 | Holland dukaat |2.8-24/35 | 23 7 | 71.424 | 3 5 | 21.976 | | | | | | | | | |Aug. 4, 1586 |Nederland dukaat|2.8-24/35 | 23 7 | 71.424 | 3 8 | 21.007 | | | | | | | | | |April 2, 1603| " " |2.8-24/35 | 23 7 | 71.424 | 3 14 | 19.304 | | | | | | | | | |Mar. 21, 1606|Nederland rijder| 6.16 | 22 0 |190.666 | 10 2 | 18.878 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 3 16 | 18.796 | | | | | | | | | |July 6, 1610 |Nederland rijder| 6.16 | 22 0 | 190.666 | 10 12 | 17.987 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 0 | 17.856 | | | | | | | | | |Sept. 26, | " rijder| 6.16 | 22 0 | 190.666 | 10 16 | 17.654 | | 1615 | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 1 | 17.635 | | | | | | | | | |Feb. 13, 1619| " rijder| 6.16 | 22 0 | 190.666 | 10 16 | 17.654 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 2 | 17.42 | | | | | | | | | |July 21, 1622| " rijder| 6.16 | 22 0 | 190.666 | 11 6 | 16.873 | | | " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 5 | 16.805 | | | | | | | | | |Tolerantie, }| " rijder| 6.16 | 22 0 | 190.666 | 12 0 | 15.888 | |Oct. 9, 1638}| " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 10 | 15.872 | | | | | | | | | |March 6, }| | | | | | | | 1645 and }| " rijder| 6.16 | 22 0 | 190.666 | 12 12 | 15.132 | |Jan. 6, }| " dukaat|2.8-24/35 | 23 7 | 71.424 | 4 15 | 15.037 | | 1653 }| | | | | | | | | | | | | | | |March 31, | | | | | | | | 1749 | " rijder| 6.16 | 22 0 | 190.666 | 14 0 | 13.619 | | | | | | | | | +-------------+----------------+----------+-----------+---------+------------+-------------+ | | | | | | | | |1806 (Louis }| | |{22 carat }| 8.4-3/4 | 10 francs | ... | | Napoleon) }| | |{ gold }| | | | | | Gold penning | 8.28-4/9 |{16 grs. }| | | | | | | |{ silver }| | | | | | | | | | | | |1816 | 10-gulden piece| 4.12 | 0.900 fine| ... | ... | ... | |1875 | " " |6-720/1000| 0.900 fine|6.048 | ... | ... | | | | grms. | |fine gold| | | +-------------+----------------+----------+-----------+---------+------------+-------------+