50 Øre – Norway

In 1909, Norway’s currency situation was defined by its membership in the Scandinavian Monetary Union (SMU), established in 1873 with Denmark and joined by Sweden in 1875. This union created a fixed exchange rate and free circulation of gold-backed coins between the member nations, effectively making the Norwegian krone, Danish krone, and Swedish krona interchangeable. The system was underpinned by the gold standard, which provided monetary stability and facilitated trade by eliminating exchange rate uncertainty within Scandinavia. By 1909, this framework had been successfully operating for over three decades.

However, the union was beginning to show significant strain. The fundamental weakness was that it was a coin union without a central bank or unified policy; each country issued its own banknotes, which were not legally required to be accepted across borders. During financial tensions, such as the outbreak of World War I a few years later, this led to the hoarding of gold and the rejection of each other's notes, crippling the system. While still formally intact in 1909, underlying economic disparities and the lack of a true supranational authority meant the union's practical solidarity was fragile.

Domestically, Norway was served by Norges Bank, which held the sole right to issue banknotes. These notes were convertible to gold upon demand, anchoring the krone's value. The period was one of economic growth and industrialization, requiring a stable and reliable currency. Consequently, while the international gold standard and the SMU provided a framework for stability, Norwegian monetary authorities in 1909 were increasingly mindful of the need to maintain sufficient gold reserves and manage credit independently, foreshadowing the union's eventual dissolution after World War I and Norway's subsequent focus on managing its own sovereign monetary policy.