currency in the form of a loan to further add strength to the newly established Rigsbanken. This immediate cash inflow became the basis of the Rigsbank's allocation of capital. Remaining banknotes from the Napoleonic wars could be exchanged to the new currency at a ratio of 6:1, a great devaluation of finance. The objective; to cease the issuing of notes until silver and banknotes were interchangeable. Nationalbanken, 1818 On 4 July 1818, King Frederik VI enacted Denmarks Nationalbank, authorising the institution to operate as the central bank. The Nationalbank’s constitution was signed and allowed the bank to have sole handling of the countries issuing of banknotes. It was formed to ensure independence from the government and provide assurance to the Danish people that in future the state would not over issue the currency. The Nationalbank halved the circulation of banknotes between 1818 and 1838, culminating in the restoration of silver and notes being of equal value in 1838. The success of the Nationalbank is grounded in historical power. The institution is today the central bank in Denmark and is attributed with restoring financial trust. Stabilisation The work of the Nationalbank and the Rigsbanken eventually stabilised the economy. During the period of bankruptcy, primary education between the ages of seven and fourteen was made compulsory, in an effort to minimise the disparity between the wealthy and peasant citizens, all of which were being effected. In 1838, the circulation of banknotes and silver had reached equality. This meant that debt repayments began and the economy began to return to the once former power it originally held. By reducing the amount of notes in circulation, the Nationalbank was able to allow the convertibility of silver into banknotes by 1845. References External links History of Denmarks Nationalbank Bankruptcy 1813 in economics Economic history of Denmark January 1813 events Bankruptcy Sovereign default Frederick VI of Denmark