Latin Monetary Union-ABOUT Latin Monetary Union
Latin Monetary Union (1865 -1880 thousand years) is founded in the 19th century a European single currency organizations.
Latin Monetary Union - Early European Monetary Union The early 19th century, Europe's currencies varied, to unify the currency in circulation among countries, in 1806, Napoleon wrote to his brother, king of Holland, the future Napoleon III's father, Louis, when he wrote: "brother If the mint coins, I recommend that you use the same unit with the French, your side of the coin you like printed on one side and printed logo of your army. so that the whole of Europe on the unified currency, and so there are trade a big advantage. " As the French military occupation of Europe, the French monetary system was pushed to the Netherlands, Belgium, Switzerland, Italy and other places. But the battle of Waterloo, so the plan was temporarily shelved up.
1838, the North German Prussia adopted a number of Bangguo, 14 Tall-based system and 21 shield-based system. 1853, Sueddeutsche the Bangguo made use of the Austrian monetary system, based on 500 grams of "pounds", a pound of silver is equal to 45 the Austrian florin, or 52.5 suddeutscher shield. In addition, the Federation of French-speaking cantons of Switzerland and German states have also given up to join the French or German currency areas, currency areas the proposal to accept a unified currency.
The Latin Monetary Union - the establishment of the Latin Monetary Union 1865, Emperor Napoleon III of France's initiative, Belgium, France, Italy and Switzerland, the four countries meeting in Paris, which aims to adopt a uniform in Europe, commonly used in coinage. The four countries signed the agreement on the single currency, marking the Latin Monetary Union was established. Under the agreement, countries maintain the original name of the base currency (the exception of Italy are called francs) to France's monetary system, based on the main currency of the gold content are set at .2903225 grams of gold or 4.5 grams of silver, can be equivalent between countries Circulation. The main currency denominated 100,50,20,10,5 franc coins, will also be issued 5,2,1 and 50,20 francs centimes for silver. Less than 20 centimes coin can not flow between countries. As the country had basically the same in the implementation of the monetary system, so little impact on the economy.
Latin Monetary Union in August 1, 1866 came into effect to January 1, 1880 to terminate. If the January 1, 1879 dissolution of the Member States have not previously requested, then the treaty will remain in force for 15 years.
Latin Monetary Union - the development of Latin Monetary Union for the flow of capital between member countries, financial transactions and commerce, tourism brings a great convenience, but also satisfactorily resolved due to strict regulations in France the proportion of gold and silver dollar rise in the value of silver caused the problem. European countries are trying their own currency with such a stable currency linked to stabilize the currency. Papal States in 1866 to join the Latin Monetary Union, Spain and Greece joined in 1868. Austro-Hungarian Empire, Romania, Serbia, Montenegro, Bulgaria, San Marino and Venezuela joined in 1889.
The Latin Monetary Union in order to expand the influence of Napoleon III in 1867 held a meeting again to discuss a single issue of the global monetary system. The United States issued after the Civil War Eagle Emblem Gold Coin 5 U.S. dollars (about 25.85 francs), while the United Kingdom issued a Schaffrin gold (Sovereign, together 30 shillings or 1.5 pounds, approximately equivalent to 25.20 francs). Both values are close to 25 francs, so the two countries proposed to France 25 francs gold coin issued way to establish contacts with the Latin Monetary Union, but this proposal was worried about the cost and loss of money recast the French rejection of the dominant position. Bismarck's Prussia explicitly refused to consider joining the Latin Monetary Union possibilities.
After the 1870 Franco-Prussian War, France to Germany to pay reparations of 5 billion francs, Germany, to the establishment of a separate gold standard - marks. Gold and silver price ratio in the latter half of the 19th century continue to beat, leading to the basis of the Latin Monetary Union - gold and silver bimetallic system had collapsed. In France, gold and silver price ratio from 1807 to 1870 of 1:15 into a 1874 1:16.17, a large number of outflow of gold, the French had in 1876 introduced the gold standard, repealed 5 francs silver coins in circulation, and eliminate free casting silver to the Order. Latin Monetary Union Member States limit per person will be holding a six francs in silver. Latin Monetary Union at that time had been at risk. Although since then many countries to join the alliance, but the monetary system is no longer based on the French monetary system, but on the basis of equivalent gold content.
After 1878, due to the implementation of the gold standard of the pound and mark the impact of other members of the Latin Monetary Union have also changed to the gold standard. Subsequently appeared on the international financial markets based on the gold standard based on international currency exchange system, the United Kingdom, the United States, Germany, the Latin Monetary Union member states and the Scandinavian Monetary Union member states have established their own currencies gold content, between the various currency area to a fixed exchange rate between the currency exchange, free flow of information. To 1914 World War I broke out, the Latin monetary union has in fact disappeared. The termination of the gold standard in 1927, France, and in the following year enactment of the new currency law, the official demise of the Latin Monetary Union.
