10 daler silvermynt, Kontributionsverket, 1717
The Riksens Ständers Bank, predecessor of today’s Riksbank, was already independent of the king during the reign of Karl XII. This, in combination with the bank’s rigid bureaucracy, made it difficult for Karl XII to fund all the wars he ordered to be fought.
As the bank failed to provide new loans, Karl XII’s solution to the problem was to establish the Kontributionsränteri in 1712. This new institution was to administer a 2% wealth tax imposed by the king, without the consent of the Riksens Ständers Bank. Bonds and what were known as emergency coins were issued, as well as these banknotes.
