Damon Mcknight
Austrian money has had a rich and convoluted history, with several currencies and coins being used throughout the ruled land during the Austro-Hungarian Monarchy. The Austro-Hungarian krone was introduced in 1892 upon the country's adoption of the gold standard. However, the krone fell during World War I, and the collapse of the monarchy and the subsequent independence of Austria in 1919 further changed the country's monetary landscape. In the early 1920s, Austrian cities and towns began issuing their own money, and the Austrian government secured financial aid from the League of Nations, which led to the foundation of the Austrian Central Bank. The Austrian schilling was then introduced in 1925 and became one of the most stable currencies in Europe. However, the schilling was abolished in 1938 following Germany's annexation of Austria and was replaced by the Reichsmark.
| Characteristics | Values |
|---|---|
| Time period | 1925 to 1938 and 1945 to 1999 |
| Currency | Austrian Schilling |
| Reason | Germany's annexation of Austria |
| Replacement | Euro |
| Exchange rate | €1 = 13.7603 schillings |
| Division | 100 groschen |
| Symbol | S or öS |
| First introduction | 1 March 1925 |
| Reintroduction | 30 November 1945 |
| Paper money denominations | 50 groschen, 1, 2, 5, 10, 20, 25, 50, 100, and 1000 schillings |
| First coins | Issued in 1946 |
| Exchange rate to Reichsmark | 1.50 schillings to one Reichsmark |
| Stabilisation | 1950s |
| Exchange rate to US dollar | $1 = 26 schillings |
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What You'll Learn
Austrian cities and towns issued their own money after World War I
The history of solely Austrian money began after World War I, when Austria became a republic as part of the peace agreement. Austrian cities and towns issued their own money during this time, as the country's economy was in a state of flux. The Austrian krone was introduced in 1892 when the country adopted the gold standard. However, the krone was not the only currency in use in Austria at this time. During the Austro-Hungarian Monarchy, several currencies and coins were used throughout the ruled land. During the 16th, 17th, and 18th centuries, the Austro-Hungarians used the florin and the crown/krone.
The Austrian schilling was introduced in 1925 as part of Austria's economic reconstruction programme following the collapse of the Austro-Hungarian Empire after World War I. The introduction of the schilling was made possible by financial aid from the League of Nations in 1922, which led to the foundation of the Austrian Central Bank. The schilling was established by the Schilling Act (Schillingrechnungsgesetz) of 20 December 1924, at a rate of one schilling to 10,000 kronen, and the first schillings were issued on 1 March 1925. Over time, Austria's strict hard-currency policy saw the schilling become one of the most stable currencies in Europe, earning it the nickname 'Alpendollar'.
The Austrian schilling was the currency of Austria from 1925 to 1938 and was then reintroduced after World War II in 1945. It continued to be used until 1999 when it was replaced by the euro. The schilling was divided into 100 groschen, and the symbol for Austrian money was 'S' or 'öS'. During World War II, the paper money was issued in denominations of 50 groschen, 1, 2, 5, 10, 20, 25, 50, 100, and 1000 schillings. The first coins were issued in 1946. The schilling was stabilised in the 1950s, with the currency being tied to the US dollar at a rate of $1 = 26 schillings.
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The Austrian krone's value fell during the war
The Austro-Hungarian Empire was dissolved in 1918, and Austria became an independent state within the German Reich. The krone was the official currency of Austria-Hungary from 1892 until 1918. The krone was initially expected to remain the common currency of the Empire's successor states, but this did not come to pass. The Austrian economy did not stabilise after World War I, and a period of hyperinflation followed. The money supply increased from 12 to 30 billion Kronen in 1920, and to about 147 billion Kronen at the end of 1921. In August 1922, consumer prices were 14,000 times greater than before the war. The highest-denomination banknote issued was the 500,000 Kronen note, in 1922.
In 1922, the Austrian government secured financial aid from the League of Nations, which led to the foundation of the Austrian Central Bank. In 1923, the League of Nations Financial Committee, with support from the Bank of England, provided a loan to allow Austria to stabilise the krone against the US dollar in exchange for austerity measures. In December 1923, the Austrian Parliament authorised the government to issue silver 5,000, 10,000, and 20,000-kronen coins, which were to be designated half-Schilling, Schilling, and double Schilling. The Schilling became the official currency of Austria on 20 December 1924, at a rate of 10,000 Kronen to 1 Schilling.
The Austrian schilling was the currency of Austria from 1925 to 1938 and from 1945 to 1999, and it continued to circulate until 2002 when it was replaced by the euro. The schilling was abolished in 1938 following Germany's annexation of Austria. It was exchanged at a rate of 1.50 schillings to one Reichsmark. The schilling was reintroduced after World War II on 30 November 1945 by the Allied Military, who issued paper money in denominations of 50 groschen, 1, 2, 5, 10, 20, 25, 50, 100, and 1000 schillings. The first coins were issued in 1946.
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The Austrian government secured financial aid from the League of Nations in 1922
The Austrian schilling was the national currency of Austria from 1925 to 1938 and from 1945 to 1999. It continued to circulate until 2002 when it was replaced by the euro. The schilling was divided into 100 groschen and was established by the Schilling Act (Schillingrechnungsgesetz) of 20 December 1924, at a rate of one schilling to 10,000 kronen. The first schillings were issued on 1 March 1925.
In the years following the First World War, Austria's finances were in a dire state. The country was responsible for paying reparations to the victorious nations, and various governments held claims on Austrian assets. The Austrian government's attempts to raise loans domestically and abroad had failed. By 1922, the country's currency had depreciated rapidly, losing 99% of its value between 1921 and 1922.
In October 1922, the Austrian chancellor, Ignaz Seipel, secured a large loan through the League of Nations, enabling Austrian finances to be stabilized. The loan was guaranteed by Great Britain, France, Italy, and Czechoslovakia. This led to the foundation of the Austrian Central Bank and, over time, a strict hard-currency policy that saw the schilling become one of the most stable currencies in Europe. In return for the loan, Austria had to agree to remain independent for at least 20 years.
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The Austrian schilling was reintroduced after World War II
The Austrian schilling was reintroduced as the official currency of Austria after World War II, from 1945 to 1999, and continued to circulate until 2002 when it was replaced by the Euro. The schilling was initially established in 1924, at a rate of one schilling to 10,000 kronen, and the first schillings were issued on 1 March 1925. The currency was abolished in 1938 following Germany's annexation of Austria and the introduction of the Reichsmark.
After World War II, the Allied Military reintroduced the schilling on 30 November 1945, issuing paper money in denominations ranging from 50 groschen to 1000 schillings. The Nationalbank also began issuing schilling notes in 1945, and the first coins were issued in 1946. The schilling was divided into 100 groschen. The currency was stabilised in the 1950s, with the schilling being tied to the US dollar at a rate of $1 = 26 schillings. This link to the US dollar paved the way for Austria's membership of the International Monetary Fund.
During the period between the world wars, the schilling was one of the most stable currencies in Europe, earning it the nickname 'Alpendollar'. This was due to Austria's strict hard-currency policy. After World War II, the schilling continued as the official currency of Austria until the introduction of the Euro. The Oesterreichische Nationalbank will still exchange unlimited amounts of schilling banknotes and coins of the last series into euros for an unlimited period. The exchange rate is fixed at €1 = 13.7603 schillings.
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The schilling was replaced by the euro in 1999
The Austrian schilling was introduced in 1925 as part of Austria's economic reconstruction programme following the collapse of the Austro-Hungarian Empire after World War I. The schilling was abolished in 1938 following Germany's annexation of Austria, but it was reintroduced after World War II in 1945.
The schilling was a former currency of Austria from 1925 to 1938 and from 1945 to 1999, and it continued to circulate until 2002 when it was replaced by the euro. The euro was introduced at a fixed parity of €1 = 13.7603 schillings. The schilling was divided into 100 groschen.
The history of the schilling as Austrian money can be divided into two distinct periods. The first was from 1925 to 1938, when it was established at a rate of one schilling to 10,000 kronen. This first iteration of the schilling was abolished following Germany's annexation of Austria in 1938, when it was exchanged at a rate of 1.5 schillings to one Reichsmark. The second period was from 1945 to 1999. The schilling was reintroduced after World War II in 1945 by the Allied Military, who issued paper money in denominations of 50 groschen to 1000 schillings. The exchange rate to the Reichsmark was 1:1, limited to 150 schillings per person.
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Frequently asked questions
Austrian money became worthless in 1920, after the country's post-World War I economic reconstruction programme led to hyperinflation.
The Austrian krone.
The purchasing power of the krone fell dramatically. Austrians could get less and less for their money as the inflation continued.
The krone was replaced by the Austrian schilling in 1925, which was then replaced by the euro in 1999.
