2 Thalers – Hungary
Hungary
Obverse
Description:
Laureate bust in elaborate dress, breaking top and bottom inscriptions. No inner circle. Inscription begins with a crowned Hungarian shield and ends with a Madonna and child stamp.
Inscription:
CAR : VI · D : G : R : I : S : A : G : HI : H : B : REX ·
Reverse
Description:
Imperial eagle with divided K B mintmark on tail. Straight-topped U-shaped cartouche on chest with crowned fourfold arms. Central crowned Hungarian shield. No inner circle, date ends inscription.
Inscription:
ARCHID : AU : D : BU : M : MOR : COM : TY : 1737 ·
K B
K B
Edge
Plain
Mints
| Name | Mark |
|---|---|
| Kremnica | KB |
Mintings
| Year | Mint Mark | Mintage | Quality | Collection |
|---|---|---|---|---|
| 1740 | KB | — |
Historical background
In 1740, the currency situation in the Kingdom of Hungary was characterized by significant instability and complexity, largely inherited from the preceding decades under Habsburg rule. The monetary system was a fragmented mix of domestic and foreign coins circulating simultaneously. The primary unit of account was the Hungarian forint (gulden), but the actual circulating medium included silver thalers from the German states, Dutch ducats, and older, often debased, domestic silver coins. This created a chaotic environment for trade, as the value of coins depended not only on their metal content but also on their origin and prevailing exchange rates, which were highly localised and volatile.
The root of this instability lay in the chronic shortage of precious metals and the Crown's persistent fiscal difficulties. The Habsburg monarchy, engaged in costly wars like the War of the Polish Succession (1733-1738), frequently resorted to debasing the coinage to finance its expenditures. By reducing the silver content in minted coins while maintaining their face value, the authorities sought to generate seigniorage profit. This practice, however, led to a classic manifestation of Gresham's Law, where "bad money drives out good." Higher-quality full-weight coins, such as the Conventionsthaler, were either hoarded by the population or exported, leaving the economy flooded with inferior, debased currency, which in turn drove inflation and eroded public trust.
The year 1740 itself marked a critical juncture, as it was the accession year of Maria Theresa following the death of her father, Emperor Charles VI. The new monarch inherited this dire monetary situation, which was further exacerbated by the imminent outbreak of the War of the Austrian Succession. The pressing need to fund the defense of her realms against multiple adversaries would soon force Maria Theresa to continue and even intensify the practices of currency manipulation and debasement in the years immediately following 1740, making monetary reform an urgent yet repeatedly deferred necessity amidst the struggle for dynastic survival.
The root of this instability lay in the chronic shortage of precious metals and the Crown's persistent fiscal difficulties. The Habsburg monarchy, engaged in costly wars like the War of the Polish Succession (1733-1738), frequently resorted to debasing the coinage to finance its expenditures. By reducing the silver content in minted coins while maintaining their face value, the authorities sought to generate seigniorage profit. This practice, however, led to a classic manifestation of Gresham's Law, where "bad money drives out good." Higher-quality full-weight coins, such as the Conventionsthaler, were either hoarded by the population or exported, leaving the economy flooded with inferior, debased currency, which in turn drove inflation and eroded public trust.
The year 1740 itself marked a critical juncture, as it was the accession year of Maria Theresa following the death of her father, Emperor Charles VI. The new monarch inherited this dire monetary situation, which was further exacerbated by the imminent outbreak of the War of the Austrian Succession. The pressing need to fund the defense of her realms against multiple adversaries would soon force Maria Theresa to continue and even intensify the practices of currency manipulation and debasement in the years immediately following 1740, making monetary reform an urgent yet repeatedly deferred necessity amidst the struggle for dynastic survival.
✨ Legendary