2 Silver Dalers – Sweden

In 1770, Sweden operated under a complex and strained monetary system, a legacy of decades of war and political turmoil. The nation was on a de facto silver standard, but the currency in circulation was a mixture of Swedish daler silvermynt (silver coins), foreign coins, and a vast quantity of depreciated paper money known as riksdaler riksgälds. This paper currency, originally issued by the Riksens Ständers Bank (precursor to the Riksbank) to finance wars during the "Age of Liberty," was not fully convertible to silver and traded at a significant discount. The result was a dual-price system where goods often had one price in silver coin and a higher price in paper notes, creating confusion and economic friction.

The situation was exacerbated by a severe shortage of physical coinage, particularly small change necessary for everyday transactions. This "coin famine" crippled local trade and wages, leading to widespread use of makeshift solutions like private tokens and promissory notes. Furthermore, the value of the paper riksdaler was unstable and influenced heavily by political events and the public's perception of the state's creditworthiness, which was low following the disastrous Pomeranian War and the heavy national debt.

Consequently, the year 1770 fell within a period of intense monetary debate and pressure for reform. The Riksdag (parliament) was deeply divided over how to stabilize the currency, with factions arguing between devaluing the paper money to match its market rate or attempting a painful return to full silver convertibility. This financial instability formed a critical backdrop to the broader political crisis that would culminate in King Gustav III's coup d'état in 1772, as economic distress fueled public discontent and the monarch's argument for stronger central authority to restore order.