Power politics and princely debts: why Germany's common currency failed, 1549–56 (Volckart)Justyna Wubs-Mrozewicz
After taking a few weeks off to report on the #historyinconflict webinar, we’re back with our #retroconflictinspirations #microreview series. For our first review, we’re looking at Oliver Volckart’s 2017 article on Charles V’s failure to unify his Empire’s currency.
By the sixteenth century, the Holy Roman Empire’s overlapping coinage jurisdictions had produced acute problems. Not least, the ‘trade in coinage’: Coins of high material value from some states were frequently exported to neighbouring mints as raw material lower value coins. The trade drove conflict in the Empire. Bavaria, Swabia, and Franconia all complained about it, as did the Salzburg's bishop and Hamburg's magistrates. The trade, they said, devalued coins throughout the Empire, violating a key value of premodern politics, ‘the common good’. Standardizing exchange rates between the coins was an appealing fix for this issue, but required coordination among the Empire’s estates. Volckart argues that the inability to reconcile non-monetary conflicts between estates was the main driver of this project’s failure. Previous research identified conflict over the value of coins as key to the project's failure, pitting silver producing estates against those reliant on imports. Others saw weak imperial political institutions at the heart of the failure. For Volckart, the root conflict lies elsewhere. Following the Schmalkaldic War, the silver-producers’ were more confident that Charles could enforce coinage reform, so were prepared to make concessions on value. Meanwhile, imperial institutions were more effective negotiators in the lead up to the 1551 Currency Bill than was previously assumed. What undermined the single currency project was not conflict over the monetary questions themselves, but the intrusion of other conflicts. The Emperor and his allies wanted to press their advantage and use the issue to weaken their enemy Saxony by devaluing its currency, the Thaler. But, when Charles’ conversion system was introduced, the Saxon Thaler’s face value was significantly lower than its real value. Merchants thus preferred it to the overvalued Imperial Guldiner, and Saxon authorities didn’t enforce the exchange rate between the coins, leading the system to collapse. Volckart’s article is a powerful illustration of how conflict in one domain can spread to another as actors seek new strategies to manage the situation to their advantage.
You can find it, here: [url]https://onlinelibrary.wiley.com/doi/abs/10.1111/ehr.12421 [/url]