page_title: Danish state bankruptcy of 1813
hierarchical_section_title: Danish state bankruptcy of 1813
caption_attribution_description: Portrait of Frederik VI (1784-1839) in gala uniform wearing the Order of the Elephant, a silver merit cross and badge and breast star as a Grand Commander of the Order of Dannebrog. After F. C. Gröger's portrait dated 1809
context_page_description: The Danish state bankruptcy of 1813 was a domestic economic crisis that began in January 1813 and had consequential effects until 1818. As Denmark struggled with the financial burden that the Napoleonic wars had on the economy, the devaluation of the currency had negative effects on merchants, citizens and businesses alike.
  As Denmark allied with France in 1807 in the aftermath of British attacks on Copenhagen, it incurred costs of rearmament as machinery, equipment and supplies were required for wartime efforts. As a result, when the economic burden placed on the state began to take its toll the collapse of the currency became imminent. The loyalty shown to Napoleon and France by Frederik VI and Denmark was eventually cause for great loss. The Treaty of Kiel, signed in January 1814, saw Denmark lose considerable power in Europe. Ceding claim to the Kingdom of Norway to Sweden, put even further pressure on export and import trading as well as an already weak economy.
  Due to consequences of the Napoleonic wars, Denmark was forced to declare bankruptcy on the 5th January 1813.
context_section_description: The Danish state bankruptcy of 1813 was a domestic economic crisis that began in January 1813 and had consequential effects until 1818. As Denmark struggled with the financial burden that the Napoleonic wars had on the economy, the devaluation of the currency had negative effects on merchants, citizens and businesses alike.
  As Denmark allied with France in 1807 in the aftermath of British attacks on Copenhagen, it incurred costs of rearmament as machinery, equipment and supplies were required for wartime efforts. As a result, when the economic burden placed on the state began to take its toll the collapse of the currency became imminent. The loyalty shown to Napoleon and France by Frederik VI and Denmark was eventually cause for great loss. The Treaty of Kiel, signed in January 1814, saw Denmark lose considerable power in Europe. Ceding claim to the Kingdom of Norway to Sweden, put even further pressure on export and import trading as well as an already weak economy.
  Due to consequences of the Napoleonic wars, Denmark was forced to declare bankruptcy on the 5th January 1813. The Danish government through monetary and economic policy had two main objectives; stabilise the economy and create a unified state-wide monetary system. The Rigsbank was the first governmental institution tasked with stabilising the economy by re-structuring the currency. In 1818, the Nationalbank, a privately operated institution was formed to extend credit benefits from citizens to businesses, and aid the revival of the Danish economy. The objective was to reinstate silver as the overarching currency in the Danish economy and restore confidence in a central banking system.
caption: Frederik VI, King of Denmark, 1809
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