World Library  
Flag as Inappropriate
Email this Article

Hungarian korona

Article Id: WHEBN0006019972
Reproduction Date:

Title: Hungarian korona  
Author: World Heritage Encyclopedia
Language: English
Subject: Austro-Hungarian krone, Fillér, Economic history of Hungary, Paper money of the Austro-Hungarian gulden, Crown (currency)
Collection:
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Hungarian korona


The Hungarian korona (Hungarian: magyar korona; korona in English is "crown") was the replacement currency of the Austro-Hungarian Krone/korona amongst the boundaries of the newly created post-World War I Hungary. It suffered a serious inflation and was replaced by the pengő in 1925. The last korona banknotes were withdrawn from circulation in 1927.

Introduction

According to the Treaty of Trianon and other treaties regulating the situation of countries emerging from the ruins of the dissolved Austro-Hungarian Empire, the former banknotes had to be overstamped by the new states and - after a given transition-period - replaced by a new currency. In the case of Hungary, this currency was the korona, which replaced its Austro-Hungarian counterpart at par. Hungary was the last country to fulfil the replacement obligation of the treaties and the stamps used for overstamping were very easy to copy, so a large portion of the common currency circulated in Hungary. This was a factor contributing to the process which finally led to a serious inflation. Finally, in 1925, the korona was replaced by the pengő at a rate of 12,500 korona = 1 pengő.

Coins

Körmöcbánya (today: Kremnica, Slovakia), the site of the only mint of Hungary (since the Gyulafehérvár mint in Transylvania (today: Alba Iulia, Romania) was closed in 1871) was awarded to the newly created Czechoslovakia according to the Treaty of Trianon. Thus, the mint machinery was moved to Budapest and set up at different places until the Hungarian State Mint was created.

Only 10 and 20 fillér coins were minted as part of the korona system: first in 1919 under the Soviet Republic with the original Körmöcbánya coin dies (1916 and 1918 restrikes); then in 1920 and 1921 with the correct years of minting but still using the same design and the K.B. Körmöcbánya mintmark.

Paper money

The first paper money printed in Hungary were 1, 2, 25 and 200 korona banknotes - similar to those issued in Vienna during the end of the war. However, the use of these banknotes was limited to Austria and Hungary, and later even Austria considered the Hungarian issues to be counterfeits. Later, as there was no national bank in Hungary, the Postal Savings Bank received the right to print bills denominated 5, 10 and 20 korona. The overstamping of the banknotes of the Austro-Hungarian Bank started only in 1920 - the last of all states emerged on the ruins of the former Monarchy. Finally, the Hungarian Royal State Note Institute was founded and granted the right to issue treasury notes.

Further reading

  • (Hungarian) (English)
  • (Hungarian) (summary in (German) (English) (Russian))
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 



Copyright © World Library Foundation. All rights reserved. eBooks from World eBook Library are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.