Currencies and Exchange Systems of the Hanseatic League: A Comprehensive Overview

The Hanseatic League, a confederation of merchant guilds and market towns in Northwestern and Central Europe from the late medieval period to the early modern period, facilitated trade among its members primarily in the 13th to 17th centuries. Unlike the perception that it operated with a single currency, the League did not have a uniform currency system. Instead, it relied on a variety of exchange methods to conduct its extensive trade.

Primary Currency: Silver Coins

The Hanseatic League predominantly used silver coins as the primary medium of exchange. Different regions had their own currencies, but some more widely recognized coins included:

Schilling: Various regions used this as a standard currency, which was subdivided into smaller units. Groschen: A popular silver coin used across many of the member cities. Pfenning: A smaller denomination also used in trade.

In addition to these coin types, merchants often engaged in barter and used bills of exchange to settle debts without the physical transfer of currency. This system was crucial for facilitating trade across the diverse regions of the Hanseatic League, where different currencies were in circulation.

Medieval Currency Standard: The Silver Penny

Before delving deeper into the Hanseatic League's currency usage, it is important to understand the broader context of medieval European currencies. All medieval Catholic Europe, from approximately 1502 onwards, used a single currency in theory. This was the silver penny, known by various names across different languages:
Denier in French Dinero in Spanish Denaro in Italian Penny in English Penning in Dutch Pfennig in German

This penny was first introduced by Charlemagne, who standardized currency throughout his empire around the year 800. Each silver coin was intended to weigh 1/240 of a pound of silver, or, in practical terms, the royal mints were required to make 240 coins from each pound of silver.

While the value of a silver penny was theoretically fixed at 1.7 grams of pure silver, in practice, its value varied greatly depending on the prosperity of the country and the control over minting. The temptation to mint underweight or debased coins led to significant divergence in coin value across regions.

Regional Developments and Treaties

Lübeck, as a leading city of the Hanseatic League, played a crucial role in developing its own currency system. The city began minting coins under the authority of its feudal lord from 1159, with the original coins being standard silver pennies. In 1226, Lübeck introduced Hohlpfennige, lighter and cheaper to produce coins, but these were not widely accepted alone.

By 1255, Lübeck and Hamburg signed a treaty agreeing that their Hohlpfennige would be of the same weight and completely interchangeable. A century later, in 1379, these cities, along with Wismar, founded the Wendish Currency Union, expanding to include other core Hanseatic cities. Under this agreement, member cities struck coins of the same weight and standard, or accepted each other's coins at the same valuation.

Emergence of Gold Coins and Large Units of Account

In addition to silver coins, gold coins began to circulate. The Byzantine Empire and Middle East retained gold coinage, and in the 13th century, the Italian city of Florence revived gold coinage known as florins. These coins, nominally worth 240 silver pennies, were used for high-value transactions.

In Germany, Emperor Louis IV granted permission to Lübeck to mint its own gold coins in 1340, calling them gulden. However, these coins were primarily used for internal transactions and not for international trade.

Much like silver pennies, the silver ingots valued at one mark played a significant role in long-distance trade. These ingots, worth one mark, were a popular trade item for Hanseatic traders in the Baltic region.

Over time, the term 'mark' transitioned from a weight of silver to simply denoting 192 pennies. This change occurred as the value of the silver penny eroded due to inflation.

Conclusion

The Hanseatic League's currency and exchange systems were complex and adaptable, reflecting the diverse economic landscape of medieval and early modern Europe. While the concept of a single currency existed, the practical reality was a network of regional currencies and agreements that facilitated trade among the League's member cities.

Keywords: Hanseatic League, Medieval Currency, Silver Pennies, Mark (Currency)