8 Skilling – Norway

In 1727, Norway was part of the dual monarchy of Denmark-Norway, and its currency system was fundamentally tied to that of Copenhagen. The primary circulating coin was the riksdaler specie, a large silver coin that served as the monetary standard. However, the system was chronically strained by a severe shortage of small change for everyday transactions, a problem plaguing much of Europe at the time. This scarcity led to widespread use of worn, clipped, and foreign coins, creating confusion and hindering local trade.

The situation was exacerbated by the monetary policies of the Danish crown. In the preceding decades, the state had repeatedly debased the subsidiary currency—the skilling—to generate seigniorage revenue for the royal treasury, particularly to finance military engagements like the Great Northern War (1700-1721). By 1727, the link between the theoretical value of coins and their intrinsic metal content was weak, fostering public distrust. The shortage of official small coinage also led to the proliferation of private tokens issued by merchants and mining companies, like the Kongsberg Silver Works, which filled a critical gap but further complicated the monetary landscape.

Consequently, the year 1727 fell within a period of monetary instability and transition. The economic pressures would eventually lead to significant reforms, most notably the establishment of Denmark-Norway’s first central bank, the Kurantbanken, in 1736. This institution aimed to stabilize the currency by issuing regulated paper notes, marking the beginning of a long journey toward a more unified and reliable monetary system for the kingdom, though its initial decades would be challenging.