Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 2. Banking. By I. Hultman
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HISTORICAL SKETCH.
667
I
The Buildings of the Bank of Siveden, Stockholm, with the Riksdag Buildings at the
background.
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itself obliged to raise new loans, the Estates of the Realm undertook to be
responsible for the management of the National Debt, establishing a special
board of commissioners under their own supervision to administer it, viz.
Riksgäldskontoret or the National Debt Board. In order to procure the money
required by the State, this Office was authorized among other duties to issue
notes and to carry on a certain kind of banking business. However its notes,
the "riksdaler riksgälds" as they were called, soon depreciated in value, whereas
the notes of the Bank, the "riksdaler banco", retained their value unimpaired.
In 1802 it was resolved that the Bank should redeem the Riksgäldskontoret
notes with its own at the then average exchange value of the former (i. e. at
two-thirds ’of their nominal value, one Riksdaler Banco being thus equal to one
and a half Riksdaler Riksgälds). Partly in consequence of this measure and
partly owing to a loan to the .Government during the war of 1808—1809, the
financial position of the Bank became so much impaired that in 1810 it was
actually compelled to stop redeeming its own notes, which in consequence fell
considerably in value. After years of negotiations the authorities finally
succeeded in 1830 in putting the monetary affairs of the country into order by a
so-termed "realization". It was then resolved that the Bank should resume the
redemption of its own notes in silver, though at only three-eighths of their
nominal value, which corresponded pretty closely to the exchange value of the
notes. Towards the close of the year 1834 this resolution was carried into
effect. Since that time the Riksbank notes have continued to be convertible
into cash (temporary interruption in 1914 on account of the war).
The lending business of the Bank consisted originally, as has been stated,
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