From the mid-fourteenth century to the mid-fifteenth century
the Wendish Monetary Union maintained and guarded a common monetary standard for
cities of the Hanseatic League. The Wendish Monetary Union ranks among the first
of the European examples of monetary union, a distant ancestor to the
contemporary European Monetary Union.
The Hanseatic League was an association of north German towns, mainly
maritime towns and inland towns engaged in foreign trade, that dominated Baltic
trade during the fifteenth century. The league negotiated trade concessions and
monopoly privileges from foreign countries such as England, Norway, and Russia,
often at the expense of local merchants. The league operated self-government
trading compounds, called kontors, at trading centers such as London, and
these kontors were shared by the merchants who were citizens of Hanseatic
towns.
The Wendish Monetary Union was formed in 1379 and officially included only
four cities of the Hanseatic League, Lubeck, Hamburg, Wismar, and Luneburg.
Other towns adopted the standard unofficially, making the union influential over
a broad area, including all of Scandinavia. The union regulated the currency of
northern Germany until 1569 and its monetary system was based upon a silver
standard.
The union struck a silver coin equivalent to the Lubeck mark, containing 18
grams of fine silver, and bearing the coats of arms of the four member towns.
The union purchased the precious metal and supervised its coinage, including the
activities of goldsmiths and the mint’s employees. Compliance with the
regulations of the union was voluntary, and regular reminders issued by the
union suggest that it had a difficult time maintaining cooperation.
The spread of gold coinage in the fourteenth century was met with a
less-than-hearty reception among the towns of the Hanseatic League. During the
mid-fifteenth century in Wendish towns the penalty for buying goods with gold
was confiscation of the goods. Apparently, the union feared the destabilizing
effects of fluctuating exchange rates between gold and silver, perhaps
reinforced by the union’s own unsuccessful efforts to maintain a fixed ratio
between gold and silver. In 1340 Louis IV, emperor of the Holy Roman Empire,
granted Lubeck the privilege to mint gold coins, leading to the introduction of
the Lubeck gold florin, which was comparable to the Florentine
florin in weight and fineness.
Unlike many feudal governments the merchants of the Hanseatic League never
sought to profit from currency debasement. Often governments dominated by
merchant princes or commercial classes displayed a strong commitment to currency
integrity, perhaps to help attract commercial activity. Venice, living on an
empire of trade and finance, maintained the value of the ducat for over
500 years, and in the nineteenth century England became the staunch defender of
the gold standard against bimetallism, which would have allowed debtors to
substitute silver for gold in the repayment of debts.
See also:
References:
Dollinger, Phillipe. 1970. The German Hanza.
Williams, Jonathan, ed. 1997. Money: A History.