1 Peseta – Spain

In 1876, Spain’s currency situation was characterized by the dominance of the peseta, which had been established as the sole national currency by the 1868 decree following the Glorious Revolution. This move aimed to unify a chaotic monetary system that had previously circulated a mix of regional coins, old reales, and foreign currencies. By 1876, the peseta was firmly entrenched, part of a broader European trend of monetary standardization tied to the Latin Monetary Union's principles, though Spain was not an official member. The country operated on a bimetallic standard (gold and silver), but this system was under immense international strain due to the falling global price of silver, which was beginning to distort the fixed legal ratio between the two metals.

The year itself fell within the Bourbon Restoration period, a time of relative political stability that fostered economic recovery. However, the currency faced significant challenges. The overvaluation of silver under the official bimetallic law led to Gresham's Law in practice: gold coins were increasingly hoarded or exported, while cheaper silver flooded into circulation, threatening the gold reserves. This effectively pushed Spain toward a de facto silver standard, isolating it from the major European powers like Britain and Germany, which were moving toward a gold standard. Consequently, international exchange rates for the peseta became more volatile and unfavorable.

This unstable monetary foundation contributed to persistent budget deficits and inflation, problems the government struggled to control. While the peseta provided domestic unity, its external value and the underlying standard were becoming contentious issues. The debates of 1876 thus set the stage for future monetary reforms, culminating in the eventual suspension of silver coinage in 1883 and Spain's definitive shift toward a de jure gold standard in the early 20th century, a prolonged process born from the vulnerabilities exposed in this era.