The Schilling: How he saved Austria from great inflation!

The Schilling: How he saved Austria from great inflation!

Österreich - Exactly 100 years ago Austria completed an important chapter in its currency history. On December 20, 1924, the Austrian crown was replaced by the Schilling. This decision was a reaction to the massive money devaluation that the country experienced after the First World War. Inflation in the early 1920s led to a drastic loss of values ​​of the Austrian-Hungarian crown, which strongly endangered the economic stability of the new Republic of Austria. Kosmo reports that Federal Chancellor Ignaz and his successors were looking for ways to get this crisis and bring the Austrian economy back on track.

The legal basis for this far -reaching currency reform was determined in the Schilling calculation law, which was signed by National Council President Wilhelm Miklas and the secretary Albert Sever. This law officially came into force on January 1, 1925, which created the legal framework for the transition from the crown to Schilling. The Austrian National Bank (OENB), which was founded in 1922, also played a crucial role in the implementation of this currency reform Oesta.

The introduction of the shilling

The shillings' first banknotes were brought into circulation from March 1925. It was crucial that the schilling was initially introduced as a book currency before the physical banknotes and coins were gradually issued. The first one-shilling coin adorned the Austrian parliamentary building, a symbol for the new beginning of the unsettled nation. The conversion course was set with 10,000 crowns for a shilling, which illustrates the dimension of inflation at that time Kosmo.

The Schilling Calculation Act turned out to be a test for the National Bank. Internal documents show that there were concerns that too fast introduction of the shilling calculation could be problematic. In order to ensure a smooth transition, a changeover period of two to three months was determined, which should be completed by June 30, 1925 at the latest.

public reactions and the long -term effect

The reactions to the currency reform were mixed. Many citizens hoped for a decisive improvement in the economic situation, while experts regarded careful planning and implementation of the reform as an opportunity and as a risk. Historically speaking, the currency reform of 1924 was considered an important step towards stability, which should help Austria get out of the post -war period and to create a new economic basis.

The Schilling remained the Austrian cash currency until the introduction of the euro on January 1, 2002. This represents a remarkable long -lasting stability sign [Wikipedia] (https://dem.wikipedia.org/wiki/w3%A4hnungs reform_in_%C3%96 Austria), especially in the context of the numerous currency reforms that Austria has been through since the 19th century. From the first paper money output in 1762 to the switch to today's euro currency, it can be seen how crucial currency reforms are for the economic identity of a country.