The King’s currency: Gustav II Adolf and the copper standard (1619–1632)

Abstract

ABSTRACTKing Gustav Adolf ruled Sweden from 1611, until his death on the battlefield in 1632. The king was at war in Russia, Poland, and Germany, throughout this period. Sweden was a poor and backward country; the crown struggled to pay and feed its armies. The Swedish crown did, however, operate the largest copper mine in Europe, and enjoyed a near monopoly on exports to the continent. In 1624 the crown began a bimetallic standard by minting copper coins alongside the existing silver standard. Eminent scholars from the last century, including Eli F. Heckscher, wrote that the crown’s intention was to manipulate the copper prices in Europe by restricting supply. The crown planned to consume substantial quantities of copper in the royal mints instead of exporting copper as ingot. I will seek to demonstrate that the king had another, parallel, purpose for establishing the copper standard. In addition to influencing the price of copper abroad, he also sought a rapid and simple means of turning copper into a fungible currency, which he could use to sustain his armies. Alongside manipulation, therefore, the king’s motive was to improve his liquidity and cash flow to fuel his military and political ambitions.