In 1853 it had been agreed to accept the situation by which we had come to have gold for large payments, and to relegate silver to a limited service in the subsidiary coins. In 1873 we find a simple legal recognition of that which had been the immediate result of the act of 1853, and which had been an admitted fact in the history of our coinage during the preceding twenty years. And later the World War II in 1939 to 1945.The Demonetization of Silver Part I, Chapter VII The repeated cycles of turmoil in Germany paved the way to the socialists in 1930’s and the rise of Hitler to power. Moreover, the revaluation was bound on the exchange rate mark and United States dollar to obtain the value of the Goldmark. In principle, the German government followed the line of market-oriented reasoning that the dollar index and the wholesale price index would roughly indicate the true price level in general over the period of high inflation and hyperinflation. The calculation of the conversion relation was considerably judged to the dollar index as well as to the wholesale price index. Neither the living standard price index nor the share price index was judged as relevant. The government argued in detail that the interests of creditors and debtors had to be fair and balanced. The German government had the choice of a revaluation law to finish the hyperinflation quickly or of allowing sprawling and the political and violent disturbances on the streets. As well, it can mean revalorization, the restoration of the value of a currency depreciated by inflation. The term normally refers to the raising of the exchange rate of one national currency against other currencies. One of the important issues of the stabilization of a hyperinflation is the revaluation. In the first half of 1922, the mark stabilized at about 320 marks per dollar. As the mark sank in international markets, more and more marks were required to buy the foreign currency that was demanded by the Reparations Commission. That was initiated by Germany decision to suspended the gold standard.įrom August 1921, Germany began to buy foreign currency with marks at any price, but that only increased the speed of breakdown in the value of the mark. It caused considerable internal political instability in the country, the occupation of the Ruhr by foreign troops as well as misery for the general populace. That grave instability was followed later by massive hyperinflation in the Weimar Republic between June 1921 and January 1924. As a result, the United States Congress passed the Coinage Act of 1873, which changed the country's silver policy. Such decision caused a drop in demand and downward pressure on the value of silver this had a knock-on effect in the USA, where much of the supply was then mined. Its name lives on in the many currencies called dollar and, until recently, also in the Slovenian tolar. The thaler was a silver coin used throughout Europe for almost four hundred years. Historians blame the decision of the German Empire to cease minting silver thaler coins in 1871, to cause the depression that followed the Civil War in US. That Panic was the first one known as the "Great Depression", and long before the events in the early 1930s in the United states of America. That stagnation weakened the country's economic global leadership. In Britain, for example, it started two decades of stagnation known as the "Long Depression". Such panic lasted from 1873 until 1879, and even longer in some countries (France and Britain). A panic happened in Germany because of that decision and led to a financial crisis that triggered a depression in Europe and North America. In 1873 Germany decided to cease dealing with the thaler silver coin as accepted currency.
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