The Danish state bankruptcy of 1813 was a domestic economic crisis that began in January 1813 and had consequential effects until 1818. As Denmark-Norway 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-Norway 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-Norway was eventually cause for great loss. The Treaty of Kiel, signed in January 1814, saw Denmark lose considerable power in Europe. Frederik VI had to renounce the Kingdom of Norway to the king of Sweden. This event put even further pressure on export and import trading, as well as an already weak economy. Due to consequences of the Napoleonic Wars, Denmark-Norway was forced to declare bankruptcy on 5 January 1813. The 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. History Napoleonic Wars Denmark-Norway had remained adjacent to early precedings of the Napoleonic Wars. Russia and France both had vested interest in Denmark-Norway and its naval fleet and its use of Norwegian-Danish trade routes. The British understood they would need to lay siege to the fleet if they were to gain control over vital sea lanes. In September 1807, the British empire bombed Copenhagen, the capital of Denmark, in order to capture or destroy the Dano-Norwegian fleet. The bombardment on the Danish capital allowed the British to take vital sea lanes in the Baltic and North Sea. Frederik VI and his monarchy viewed the ruling of Norway as essential to its European power. A lack of stability in the Norwegian grain supply as well as the chance for French