Latin Monetary Union
The Latin Monetary Union ( officially Union monétaire latine ) was a monetary union between France, Belgium, Italy, Switzerland and Greece, the practice, until 1914, and formally consisted of 23 December 1865 to 31 December 1926.
Some other countries also minted their coins by the provisions of the Monetary Union, but without her join.
History and Fundamentals of Monetary Union
1795 led France as the second decimal currency after the U.S. dollar, the franc 100 centimes a. The weight of the silver coins was so standardized that 1 Franc exactly 5 grams 900/1000-Silber, that weighed 4.5 grams of fine silver. Within the same monetary system and gold coins were minted, the value ratio of silver and gold was fixed at 1:15,5. The simple and clear system was soon imitated by other countries, such as Belgium and Switzerland.
After Italy, this system has already been brought to the Italian campaign of Napoleon (1796 /97). Even before the official start of monetary union thus existed in several countries similar conditions, with partly the coins and banknotes of other states and were accepted as means of payment.
The set in the Latin Monetary Union between bimetallism gold and silver coins was expressed as follows:
On these bases, signed in 1865 France, Belgium, Italy and Switzerland ( entry into force on 1 August 1866), a treaty that the expenditure policy and the mutual recognition of regulated uniformly addition to the technical details of these coins. On December 21, 1868 Greece joined the Union. Fluctuations in silver and gold price led to the the bimetallism own problems for the Monetary Union, since the forces of the market partially counteracted the provisions of the contract. Thus, some coins were hoarded or melted down, others were against it in excess to find in circulation.
The contract, which was due to expire the end of 1879, was initially renewed on 5 November 1878 to 31 December 1885 and due to the sharp fall in silver price meantime setting the severity of silver 5 -franc pieces was decided.
In Germany ( pounds) were prevalent before 1871 silver coins; the currency was backed by silver ( silver standard ). After 1871 the gold standard was replaced by the silver. The silver largely lost its monetary significance. The value ratio decreased from 1:14 to 1:100 for some time, later it rose again slightly. As of 1873 the price of silver fell due to the large German silver sales. The silver inflation in the 1880s prompted the Latin Monetary Union, 1885 to adopt the gold standard.
On November 6, 1885 came a new contract with partially amended provisions, which remain until 1 January 1891 in force and should be extended tacitly for a further year if no contract notice has been given by a Member State.
The scheme closed from paper money. This loophole exploited Italy and Greece in order to increase the paper money in circulation, for there was no more noble metal cover. Greece was punished for this procedure and 1908 excluded, recorded two years later. On November 4, 1908 the Belgian Congo was officially a member of the Monetary Union.
The outbreak of the First World War led to an enormous demand for money. The States Parties ( with the exception of Switzerland ) were forced to turn away from one currency to precious metal Kurantmünzen basis. Parts of the contract work were gradually lifted. The Scandinavian Monetary Union was abolished as a result of the First World War. According to the de facto dissolution of the Latin Monetary Union Belgium announced in 1926 its membership. To January 1, 1927, Switzerland has the last country in the coins of other states except price.
Münzausprägungen
Each Member State minted its own coins with their own denominations. The currency units, which were in the ratio of 1:1 to each other, the franc were 100 centimes in France and Belgium, the Swiss franc to 100 cents in Switzerland, the lira to 100 Centesimi in Italy and the drachma to 100 Lepta in Greece.
The following coins were authorized under the provisions of the Treaty:
Before the introduction of contract standards contained in this system also gold coins to 40 francs and 80 francs ( lire ) and silver coins were minted to 0.25 francs. These were soon withdrawn after the signing of the contract, as older coins, although they correspond to the weights of the contract, but not the fineness or diameter. Not all approved coins were minted by all member countries.
The coins of 2 francs down had a lower fineness, which meant that their denomination was not fully covered by their metal value, so it was coins. Coinage of base metals were not part of the contract and were being issued by Member State according to various standards.
It was for the public coffers of member countries compulsory acceptance for the gold coins and the 5 -franc pieces (corresponding to lire, francs, drachmas ). For smaller silver denominations, he was limited to 100 francs. The circulation of its own paper money and foreign currencies was placed in the control authority of each Member State.
Adoption of the system of Monetary Union without a contract accession
The following states and territories dominated coins according to the same system, but with its own national currency name, but without being officially joined the Monetary Union:
- Finland 1860-1918
- Papal States 1866-1870
- Romania 1867-1944
- Spain 1869-1934
- Serbia 1873-1915
- Venezuela 1879-1965
- Bulgaria 1880-1916
- Argentina 1881-1893
- Tunisia 1891-1928
- Danish West Indies 1904-1905
- Poland 1924-1925
- Albania 1925-1938
Character as a means of payment in the contracting
The period marked by the non-members according to the system of the Monetary Union coins were in the Contracting States not legal tender; some of them ( the gold and large silver coins ) in circulation but still internationally.
Indirectly, Austria -Hungary and Russia were on their almost straight exchange rate: 4 Gulden ( 1892: 8 crowns) = 10 Francs, or 1 ( Gold ) ruble = 4 francs in fact a member of this monetary union. Already in 1870 coined Austria -Hungary, gold coins at 4 and 8 guilders as trade coins, bearing the additional value name 10 Fr or 20 Fr.
The Russian-Finnish gold coins of 10 and 20 markka also corresponded to the fineness of the 10 - and 20 -franc pieces, while the silver coins were not marked in accordance with the provisions of the Latin Monetary Union.
Pictures of various coins of the Latin Monetary Union
- Coins of the contracting countries
Italy 1882 20 Lire
Switzerland 1889 20 francs
Belgium 1874 20 Francs
- Coins some non- treaty countries
Monaco 1879 20 Francs
Romania 1883 20 Lei
Austria / Hungary 1892 20 francs (= 8 Guilder / Florin )