The first coins issued in current-day Switzerland were Celtic issues of gold staters in imitation of the coinage of Philip II of Macedon. Switzerland became part of the Roman Empire in the first century BC as the province of Rhaetia. After the fall of Rome, Switzerland became part of the Frankish Kingdom in the sixth century and Merovingian gold tremisses were produced in the west while coins were issued under German emperors in the ninth century on in the north.
Although the Switzerland began its process of confederation in the thirteenth century, coinage remained local for centuries with gold and silver coins issued according using local monetary systems.
The Peace of Westphalia recognized the sovereign independence of the members of the Swiss Confederation on February 8, 1649. Napoleonic troops occupied Switzerland between April 12, 1798 and March 10, 1803, and set up the Helvetic Republic. The Congress of Vienna in 1815 guaranteed Switzerland’s independence and neutrality. The current Federal constitution went into effect on November 21, 1848, and was further revised in 1874 and 1999.
Although each canton had its own monetary system up until 1848, five systems dominated. Freiburg, in western Switzerland, used a system based upon the Kreuzer (XCHF) as in Austria with 1 Freiburg Thaler divisible into 3 Gulden, 24 Piecette, 42 Batzen, 168 Kreuzer, 336 Vierer or 672 Denier.
Geneva used a system similar to France’s with the Sol and Pistole (XCHP) being the primary units. Under Geneva’s system, 1 Pistole was equal to 2.75 Thalers and divisible into 21 Livre, 35 Florins, 420 Sols, 1680 Quarts or 5040 Deniers. Geneva briefly adopted the Genevoise (XCHG), equal to 10 Decimes and 100 Centimes between 1794 and 1795. Geneva was the first canton to formally adopt the French Monetary System based upon a Franc of 100 Centimes on February 7, 1838.
Luzern, in central Switzerland, used a system based upon the Gulden and Thaler (XCHL) with a Duplone divisible into 2 Ducats, 4 Thalers, 12 Gulden, 16 Franken, 160 Batzen, 480 Schillinge, 640 Kreuzer, 1600 Rappen or 3200 Angster. In southern Ticino, next to Italy, a system Similar to Italy’s was used with 1 Ticino Franco (XCHT) divisible into 20 Soldi or 240 Denari between 1815 and 1848. In Zurich, in the north, a system based upon the Thaler (XCHZ) was used with 1 Zurich Thaler divisible into 20 Gulden, 72 Schillinge, 288 Rappen or 864 Heller.
The Helvetic Republic adopted the Swiss Franc as its monetary unit on March 17, 1799. After Switzerland regained its autonomy in 1803, it redefined the Swiss Franc as its monetary unit with 1 Swiss Franc equal to 1.5 French Francs. However, in 1815, the Swiss cantons regained the right to issue their own coins. Though the Agreement of 19 Cantons on July 14, 1819 adopted the Swiss Franc as the principle monetary unit, local cantons could still issue minor specie money on this basis.
This right ended in 1848 when the Swiss Constitution of September 12, 1848 reserved the right of issue to the Confederation. The Swiss Franc was adopted as the single monetary system for all of the Swiss Confederation on May 7, 1850 with 1 Swiss Franc equal to 1 French Franc. The system was based upon 1 Franc equal to 100 Rappen, though allowance was made for Schilling and Heller coins to be minted as well until 1850 when the Confederation became the sole issuer of Swiss Francs. Private banks were allowed to issue banknotes until June 20, 1910. On June 20, 1907 the Schweizerische Nationalbank/Banque Nationale Suisse was founded and became the sole note issuing authority.
The Swiss Franc was the strongest currency in the world during the Twentieth Century, possibly because it avoided costly wars and social programs that have led to inflation in the rest of the world. |
