Hill Dollar

The Hill Dollar is a gold based currency used in Zundrbar for trading between citizens and from guilds to citizens. It is one o the two currencies in Zundrbar, the other being the Guilder, utilized by the guilds for their own trade and financing.

The Hill Dollar does not use coins, and does not have separate bills beyond the single dollar bill.

History
The Thaler was discontinued in +1504 after Sven Sootbeard created the Hill Dollar, a paper currency backed by gold. The original exchange rate between gold and the Hill Dollar was a one to one ratio, and the Thaler coins were discontinued by the mint, however they are still considered legal tender. Exchange rates were created by the guilds for silver and gold, which totalled to roughly ten ounces of silver being equal to one ounce of gold, and therefore- the exchange rate between one Hill Dollar and silver was 1:10.

After the Battle of Zundrbar, nearly all industry- including mining halted. The abdication of Sven Sootbeard spelled trouble for Zundrbar, as Folgrin Ironbeard took control in his place. The Hill Dollar was switched temporarily to a fiat currency, and not backed by any metal. Many citizens grew angry at Folgrin's actions, however Folgrin was aware of Sven's plan involving the coronation of Ghlafferge Sootbeard "when the time was right." The zundrbarian economist, Sigmund Tyrfingsson, stated that, "A fiat currency (paper) can only be sustainable for less than a generation, before the economy succumbs to inflationary risks." Folgrin Ironbeard was aware of this, and thus did not plan to have the Hill Dollar as a fiat currency for a long period of time.

The Hill Dollar remained as a fiat currency, however most industries started up again around +1950, including the mining industry. Gold and silver were rediscovered, and mined. However, the metals were stored in waiting. The issue primarily was that the zundrbarian precious metal reserves were smaller than they were before. The coronation of Ghlafferge Sootbeard in +1999 signed into effect the bill known as, "The Gold Act," which continued the backing of the Hill Dollar by gold. To match the precious metal reserve declining, the exchange rate was changed to five Hill Dollars being equal to one ounce of gold. The silver and gold exchange rate was changed from 10:1 to 100:1, due to the larger abundance of silver after the arrival of the Silverminer clan. Therefore, one hundred ounces of silver were equal to five Hill Dollars, and one Hill Dollar was equal to twenty ounces of silver.

The Gold Act also allowed for Gold, Silver, and Copper coins of the Grand Alliance to become legal tender in Zundrbar for merchants and traders.