2 Kronor (Reign of King Oscar II) – Sweden

In 1897, Sweden was operating under a de facto gold standard, having suspended the convertibility of its silver riksdaler in 1873 to join the Scandinavian Monetary Union (SMU) with Denmark. This union, established in 1873 and joined by Norway in 1875, created a unified currency system based on gold. The new common currency was the krona (crown), subdivided into 100 öre, which replaced the older riksdaler. While each country issued its own coins and banknotes, they were legally accepted at par across all three nations, facilitating trade and economic integration.

However, by the 1890s, strains within the Monetary Union were beginning to show. The system functioned without a central coordinating bank, relying on the mutual acceptance of each other's coins. This led to practical problems, as high-value Swedish coins often circulated in Denmark and Norway, while lower-value Danish coins flooded into Sweden, causing minor domestic inconvenience. More critically, the onset of the First World War would later expose fatal flaws, but in 1897, the system was still perceived as largely successful and a symbol of Scandinavian cooperation and modern financial stability.

The year 1897 itself was one of economic confidence and international exposition, most notably marked by the Stockholm World's Fair. This event showcased Sweden's rapid industrialization and required substantial financial transactions, underscoring the practical utility of a stable, gold-backed currency. The Riksbank, Sweden's central bank, held gold reserves to back the circulating money supply, and the krona's value was firmly pegged to gold. Thus, the currency situation in 1897 was characterized by stability, international alignment, and a widespread belief in the enduring strength of the gold-based Scandinavian Monetary Union.