Full resolution (JPEG) - On this page / på denna sida - XI. Banking, Credit, and Insurance - 1. Coinage. By K. A. Wallroth - Hall-marking of Gold, Silver, and Pewter Wares. By K. A. Wallroth - 2. Banking. By I. Hultman
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XI. BANKING, CREDIT, AND INSURANCE.
silver wares seems to have been prohibited until 1826. They were first
hallmarked in 1832.1
The Table on page 462 shows the quantities of gold, silver, and pewter wares
hall-marked since the introduction of official hall-marking in 1754.
As to trade in gold and silver wares, only such wares as conform to the
required standards may be offered for sale. Exemptions from this rule are
conceded only in special cases.
2. BANKING.
Historical Sketch.
The Riksbank in Ancient Times. The first bank in Sweden,
Palm-struch’s Bank, obtained its charter in 1656. It consisted of two
departments, the deposit or current account bank, and the lending or loan
bank. The deposit bank was prohibited from lending money deposited
or crediting anyone for amounts which had not been deposited. The
lending bank was for loans on corporeal securities, such as real property,
certain kinds of commodities, and other objects of value; it also received
deposits at interest. In 1661 the bank began to issue notes.
The Palmstruch Bank was mismanaged and before long found itself
unable to meet its engagements. It proved impossible for it to stave off
bankruptcy, notwithstanding that the State came to its relief, inter alia by
declaring its notes to be legal tender and guaranteeing their being met
in cash. In 1668, in place of the Palmstruch Bank, a State Bank was
founded. At that time it was designated "Rikets Ständers Bank", that
is, the "Estates of the Realm Bank", but it is now known as Sveriges
Eiksbank, the Bank of Sweden. It was to be governed by the Estates
of the Realm solely, the Government being excluded from all
participation in its management. Its business was to be the same in kind and be
prosecuted on the same lines as that of the Palmstruch Bank, but subject
to an express prohibition against the issue of notes. In 1701, however,
the right of note-issue was accorded to the Riksbank.
At the outset the number of notes in circulation was very small but later on,
when the Bank had obtained the right to issue notes for small values, it began,
with the laudable intention to encourage industry, to transact its lending business
in far too generous a spirit, the consequence being that the issue of notes was
swelled beyond the bounds of prudence and the Bank in 1745 was obliged to
suspend payment of its notes. In conjunction with the coinage reforms of 1776,
whereby copper was ousted from its place of primacy and silver alone became the
standard metal, the Bank once more resumed payment of its notes at about
half their face value, that being the degree of depreciation they had experienced.
It was not long, however, before the Bank monetary machinery was again out
of gear. When the State, owing to the war with Russia in 1788—1789, found
1 In 1832 even gold and silver wares which fell below the above standards were
permitted to be imported: they were stamped with a special hall-mark.
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