The History of Currency, 1252 to 1896

by William Arthur Shaw

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.