1 Crown – United Kingdom

In 1818, the United Kingdom was navigating the complex aftermath of the Napoleonic Wars, with its currency system at a critical juncture. Since 1797, the country had operated under a "paper pound" as the Bank of England had been relieved of its obligation to convert banknotes into gold—a period known as the Restriction. This had led to significant inflation and a depreciation of the pound's value against gold. By 1818, the government, led by Lord Liverpool, was firmly committed to a return to the gold standard, seeking to restore monetary stability and London's financial credibility. The pivotal Resumption Act of 1819 was being prepared, which would mandate the full return to convertibility by 1823.

The immediate currency situation was one of tension and debate. While paper notes circulated widely, their value was unstable, and the gap between the paper pound and its nominal gold value created economic uncertainty. "Bullionists," who advocated for a swift return to gold convertibility, argued that this was essential to curb inflation and discipline government spending. Opposing them were "anti-bullionists" and many landowners and industrialists, who feared that a sudden contraction of the money supply and a stronger pound would lead to crippling deflation, falling agricultural prices, and increased burden of debt.

Thus, 1818 represents the calm before a monumental policy shift. The decision to resume cash payments in gold was effectively being made, setting the stage for the deflationary pressures of the 1820s. This move would firmly re-establish the gold standard for over a century, prioritizing international financial prestige and price stability, but at a significant short-term cost to parts of the domestic economy, particularly agriculture, which faced falling prices as the pound regained its pre-war gold value.