by kind (grain) instead of banknotes. The Treaty of Kiel and the loss of geographic claim saw Denmark encounter problems with the circulation of banknotes. As Denmark's total population reduced, this was not met with a reduction in the stock of circulating banknotes, only increasing inflationary effects on the currency. As a result of the war, Denmark was forced to suspend foreign debt and interest payments until 1815. Political Denmark, before France was defeated by Russia in 1812, were offered permission to side with Britain and its allied forces. This would have reduced the burden that was placed on Denmark following the war and allowed the state to retain claims to land already conquered. Michael Bregnsbo, argues that Frederik VI was loyal to Napoleon, as he believed Napoleon would be the leading figure in the peace proposals if victory was achieved. Historian, Morten Ottosen, argues that the stubbornness of Frederik VI in remaining loyal to Napoleon was foolish and was at the heart of future failures. Social The British blockade on Norway and Denmark was having consequences on the entire population. The halting of trade meant employment opportunities stopped as goods were not being made, financial incentives were not either. In response to the bombardment of Copenhagen, King Frederik VI, prohibited all trade and communication with Great Britain in 1807. However, merchants and citizens understood the need for a relaxed prohibition as British goods were valued at a premium. Instances of corruption were widespread as the financial burden of inflation and lower wages took a toll on the population. Civil servants were increasingly being tried for corruption, most commonly, in regards to embezzlement. The betrayal of the King by his civil servants put pressure on the monarchy to instil public confidence in an absolutist rule in order to dispel ideas of democracy. Economic resolution Rigsbanken On January 5, 1813, the "Decree on changing the currency system for the Kingdoms of Denmark and Norway and the duchies of Schleswig and Holstein” was declared by the Minister for Finance, Ernst Schimmelmann. The Decree stated: The revival of the economy began with the establishment of the Rigsbanken, who were given authority to re-issue banknotes in a new currency, the rigsbankdaler. A compulsory 6% priority mortgage rate was to be paid in silver as well as a 6% interest rate placed on all real estate. The government had requested the donation of silver or