40 Groschen - John George I

The 40 Groschen denomination was a creature of the Kipper- und Wipperzeit, the currency debasement crisis that swept the German states between roughly 1619 and 1623. Mints across Saxony and neighboring territories engaged in competitive debasement — clipping, lightening, and revaluing coins — to extract seigniorage profit as the Thirty Years' War drained public finance. John George I initially resisted but ultimately permitted debased issues to prevent Saxon currency from being driven entirely out of circulation by inferior coins from neighboring mints.

The 40 Groschen was an awkward denomination by design, bridging the Thaler and smaller groschen issues during a period when no one fully trusted the coinage they were handling.