½ Skilling – Norway

In 1867, Norway found itself in a complex monetary situation, operating under a dual currency system that was a legacy of its union with Sweden (since 1814). The country was officially on a silver standard, with the speciedaler as its primary unit. However, a parallel currency, the riksdaler, was also in widespread use, valued at four riksdaler to one speciedaler. This system was cumbersome and inefficient for daily commerce and national accounting, creating confusion and complicating trade both domestically and internationally.

Economically, the period was marked by significant deflation and a severe banking crisis. A post-Napoleonic Wars boom had led to speculative lending and a credit bubble, which burst in the late 1850s. By 1867, the aftermath was still being felt, with falling prices, bankruptcies, and a crisis of confidence in the paper notes issued by private banks. The value of these notes fluctuated wildly against the official silver coinage, further destabilizing the economy and highlighting the weaknesses of the existing financial architecture.

This turbulent context created a powerful consensus for reform. The events of 1867 served as a final catalyst, accelerating political efforts to establish a modern, unified, and stable monetary system. These efforts culminated just a few years later with the landmark Parliamentary decision in 1873 to adopt the gold standard and join the Scandinavian Monetary Union (with Sweden and Denmark), introducing the Norwegian krone as the new, single national currency in 1875.