the scandinavian currency union 1872-1924 andrew c. hedberg
TRANSCRIPT
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The Scandinavian Currency Union
1872-1924
Andrew C. Hedberg
![Page 2: The Scandinavian Currency Union 1872-1924 Andrew C. Hedberg](https://reader035.vdocuments.mx/reader035/viewer/2022062803/56649f2f5503460f94c499ac/html5/thumbnails/2.jpg)
What Will Be Covered
• Why was it formed
• Who was in the SCU
• What were the ramifications of the SCU
• What did the currency consist of
• Effects of the SCU
• Why did the SCU fail
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Why Was The SCU Formed?
- France, Italy, and Switzerland formed the Latin Monetary Union in 1865.
- Germany and Austria joined together in a German Monetary Union.
- Denmark and Sweden considered joining the LMU but the French-German war changed this.
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Who Was Involved?
-First meeting December of 1872
-Sweden and Denmark signed agreement-May of 1873
-Norway later signs in October of 1875
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What Was Agreed To?
-Decimal System
-Backed by gold
-Common Currency
-Swedish and Norwegian Krona
-Danish Krone
-1 Krona = Riksdaler (old Swedish currency)
-Adjustment period was 8 years
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What Did The Currency Consist Of ?
- Gold Coins
- Also allowed to mint coins in silver and bronze called token coins.
- The SCU originally did not list any agreement of paper money.
- Paper notes were agreed to in 1901
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Denmark’s Token Coins
What did they look like?
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What did they look like?
Norway’s Token Coins
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What did they look like?
Sweden’s Token Coins
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Exchange Rates
-Although Scandinavia had a common currency, it’s exchange rate varied from country to country.
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Effects of SCU
-The three countries were only bound by monetary aspects
-Inter-Scandinavian trade fell-As compared with German and English
trade-Increased labor?
-Sweden yes-Norway and Denmark no
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Why Did It Fail?
-World War I
- Gold Embargo
-Token coins were no longer convertible in the three countries
-Economic Differences
-Trade
-Population growth
-Pressure from Sweden to end the SCU
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Questions?