Latin Monetary Union

The Latin Monetary Union (1865-1927) was a 19th century attempt to unify several European currencies into a single currency that could be used in all the member states, at a time when most national currencies were still made out of gold and silver.

Related Topics:
19th century - Europe - Currencies - Single currency - Gold - Silver

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 1865; France, Belgium, Italy, and Switzerland joined the union and agreed to change their national currencies to a standard of 4.5 grams of silver or 0.290322 grams of gold (a ratio of 15.5 to 1) and make them freely interchangeable. They were joined later by Spain and Greece in 1868, and Romania, Austria, Bulgaria, Venezuela, Serbia, Montenegro, San Marino and the Papal State in 1889. In 1904 the Danish West Indies were also placed on this standard, but did not join the LMU itself.

Related Topics:
1865 - France - Belgium - Italy - Switzerland - Gram - Ratio - Spain - Greece - 1868 - Romania - Austria - Bulgaria - Venezuela - Serbia - Montenegro - San Marino - Papal State - 1889 - 1904 - Danish West Indies

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Due to the fluctuations of gold and silver, the union, disrupted by World War I, lasted until 1927 when it was disbanded.

Related Topics:
World War I - 1927

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

An interesting parallel can be seen between the discussions in the United Kingdom concerning the possibility of Britain joining the Latin Monetary Union http://www.oup.co.uk/pdf/0-19-924366-2.pdf, and the current discussions concerning British membership of the euro.

Related Topics:
United Kingdom - Euro

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The United States made several steps that could have prepared the country for joining the Latin Monetary Union, but never did so. Its gold coinage was already within one percent of the LMU standard at the rate of 5 LMU francs per U.S. dollar. The Mint Act of 1873 increased the mass of the dime, quarter dollar, and half dollar slightly to 25 grams of .900 fine silver per dollar, putting them on the LMU standard, a standard that was maintained until the minting of U.S. silver coins was halted in 1965. In addition, the United States Mint produced pattern coins called Stellas in 1879 and 1880 that would be worth 4 U.S. dollars or 20 French francs. However, as close as it came, the United States never joined, deciding not to resize its gold coins, and keeping its large silver dollar which was minted using a 16 to 1 ratio for silver to gold.

Related Topics:
United States - 1965 - United States Mint - Pattern coin - Stellas - 1879 - 1880 - U.S. dollar - French franc

~ ~ ~ ~ ~ ~ ~ ~ ~ ~