Austro-Hungarian Florin

The florin (german: Gulden, hu, forint, hr, forinta/florin, cs, zlatý) was the currency of the lands of the House of Habsburg between 1754 and 1892 (known as the Austrian Empire from 1804 to 1867 and the Austro-Hungarian Monarchy after 1867), when it was replaced by the Austro-Hungarian crown as part of the introduction of the gold standard. In Austria, the florin was initially divided into 60 kreutzers (german: Kreuzer, hu, krajcar, hr, krajczár cs, krejcar). The currency was decimalized in 1857, using the same names for the unit and subunit.

Name

The name ''Gulden'' was used on the pre-1867 Austrian banknotes and on the German language side of the post-1867 banknotes. In southern Germany, the word Gulden was the standard word for a major currency unit. After 1867 Austrian coins used the name ''Florin''. "Florin" is derived from the city of Florence, Italy where the first florins were minted, from 1252 to 1533.

History

The florin (German: ''Gulden'') first emerged as a common currency of the Holy Roman Empire after the 1524 ''Reichsmünzordnung'' in the form of the ''Guldengroschen''. In the succeeding centuries the gulden was then defined as a fraction of the ''Reichsthaler'' specie or silver coin.

As of 1690 the florin used in Southern Germany and the Austrian Empire adhered to the Leipzig standard, with the florin worth th a Cologne Mark of fine silver or reichsthaler specie coin, or 12.992 g per florin. Below is a history (in terms of grams of silver) of the standards of the Austro-Hungarian florin from 1690 until the gold standard was introduced in 1892.
MAIN reference p 360-393: German monetary system https://books.google.com/books?id=GrJCAAAAIAAJ&pg=PA360#v=onepage&q&f=false A comparison with the lower-valued South German gulden is also included. The course of value of the florin before 1618 is found under ''Reichsthaler''.

The florin departed from the Leipzig standard in the 1730s when the gold-silver price ratio dropped from 15 to 14.5, prompting several states to reissue their gulden in cheaper gold. The Austro-Hungarian florin then departed from the South German gulden after it valued the Carolin d'or of 7.51 g fine gold at 9 Austrian florins, versus 11 gulden in Southern Germany. This made the Austrian florin worth 7.51/9 = 0.834 g fine gold or 0.834x14.5 = 12.1 g fine silver.

As Austria was the leading state of the Holy Roman Empire, it initiated the currency convention of 1754 in which the ''Conventionsthaler'' replaced the reichsthaler specie as the standard currency of the Holy Roman Empire. The ''Gulden'' was defined as half of a Conventionsthaler, equivalent to of a Cologne mark of silver, or 11.6928 g. The ''South German gulden'' was set lower at 24 florins per Cologne mark of silver, or 2.4 florins per Conventionsthaler, or 9.744 g. The ''North German Reichsthaler currency unit'' was then defined as Gulden or a Conventionsthaler, or 17.5392 g. Following the winding up of the Holy Roman Empire in 1806, the Gulden became the standard unit of account in the Habsburg lands and remained so until 1892. The florin was subdivided in 60 ''kreuzer'', each of 4 ''pfennig'' or 8 ''heller''.

In 1857, the ''Vereinsthaler'' was introduced across the German Confederation and Austria-Hungary, with a silver content of grams. This was slightly less than times the silver content of the Gulden. Consequently, Austria-Hungary adopted a new standard for the florin, containing two-thirds as much silver as the Vereinsthaler, or g. This involved a debasement of the currency of 4.97%. Austria-Hungary also decimalized at the same time, resulting in a new currency system of 100 kreutzers = 1 florin and florins = 1 Vereinsthaler.

In 1892 the Austro-Hungarian florin was replaced by the crown, with each crown containing grams of gold, at a rate of 2 crowns = 1 florin (gold-silver ratio 18.2).
In 1946 the Hungarian florin (''magyar forint'') was re-introduced and remains the official currency in Hungary.

Coins

Austria

Copper coins were initially issued in denominations of 1 ''heller'' ( kreutzer) up to 1 kreutzer, with silver coins in denominations from 3 kreutzers up to 1 Conventionsthaler. The Turkish and Napoleonic Wars led to token issues in various denominations. These included a 12 kreutzer coin which only contained 6 kreutzers worth of silver and was later overstruck to produce a 7 kreutzer coin. In 1807, copper coins were issued in denominations of 15 and 30 kreutzers by the Wiener Stadt Banco. These issues were tied in value to the bank's paper money (see below). The coinage returned to its prewar state after 1814.

When the florin was decimalized in 1857, new coins were issued in denominations of (actually written ), 1 and 4 kreutzers in copper, with silver coins of 5, 10, and 20 kreutzers, , 1 and 2 florin and 1 and 2 Vereinsthaler and gold coins of 4 and 8 florin (or 10- and 20 francs). Vereinsthaler issues ceased in 1867.
Vereinsthaler = florins

Hungary

Following the florin's introduction, Hungary issued relatively few coins compared to Austria, but the Kingdom of Hungary started minting its own gold florins in 1329. The only copper coin was a ''poltura'' worth kreutzers, whilst there were silver 3-, 5-, 10-, 20-, and 30 kreutzers and and 1 Conventionsthaler. All issues ceased in 1794 and did not resume until 1830, when silver coins of 20 kreutzers and above were issued. Only in 1868, following the Austro-Hungarian Compromise of 1867, did a full issue of coins for Hungary begin. Denominations were fewer than in Austria, with copper , 1 and 4 krajczár, silver 10 and 20 kreutzers and 1 florin, and gold 4- and 8 florins.

Paper money

Between 1759 and 1811, the ''Wiener Stadt Banco'' issued paper money denominated in florins. However, the banknotes were not tied to the coinage and their values floated relative to one another. Although the notes did have a slight premium over coins early on, in later years, the notes fell in value relative to the coins until their value was fixed in 1811 at one fifth of their face value in coins. That year, the ''Priviligirte Vereinigte Einlösungs und Tilgungs Deputation'' ("Privileged United Redemption and Repayment Deputation") began issuing paper money valued at par with the coinage, followed by the "Austrian National Note Bank" in 1816 and the "Privileged Austrian National Bank" between 1825 and 1863. In 1858, new notes were issued denominated in "Austrian Currency" rather than "Convention Currency".

From 1866, the ''K. K. Staats Central Casse'' ("Imperial and Royal State Central Cashier") issued banknotes, followed from 1881 by the ''K. K. Reichs Central Casse'' which issued the last Gulden banknotes, dated 1888.

The banknotes after Austro-Hungarian Compromise of 1867 that were issued by the Austro-Hungarian Bank had their value that was guaranteed with gold as enacted in the Banking Act. State notes were issued by the treasury and had no such cover.

References

External links

Geldschein.at - Picture gallery of Austrian gulden banknotes

{{Guilder

Currencies of Austria
Gulden
Economic history of Austria