By
Nilaish, MBA
Bank
of Bengal was founded in 1809 by the Charter of Governor General in Council
Lord Gilbert Minto. Bank of Bengal (see
below) issued currency notes in Bengal Presidency since 1810 but no currency
note prior to 1812 is survived. It is known that Bank of Bengal issued three
broad categorical series; Uniface, Commerce and Britannia (Razack et al. 2012).
Bank of Bengal notes were also cut into two halves and were sent for encashment
to the bank partly to safeguard its theft or loot. There are a few examples
which were not cut and survived till today.
Bank of Bengal circa 1900
There is no
record or note known till today that half currency notes prior to 1850-58 were
used for encashment. However, it is known that half notes were paid to owners
through Indemnity Bond (Razack et al. 2012):
“Deed
of Indemnity between Bank of Bengal and owner of half the note, the other half
being mutilated or lost in transit. The owner indemnifying the bank against
loss of claim by another person who might have the other half at a later date.”
An Indemnity bond is in the private
collection (Razack et al. 2012) reads:
No. ....................
Dated............................... of
....................... 185X
Name
To
BANK OF BENGAL
BOND OF INDEMNITY
Printer, Type No. 14, Loll Bazar
WHEREAS, the above named..................................... was possessed of or otherwise entitled to a Note of the Bank of Bengal Number .................... dated ............................................... and expressed to be for the sum of Company’s Rupees ............... (mentioned as 50 in one example of 100 Rs.)
AND WHEREAS, the said Note was divided
into two parts for the purpose of safe remittance or otherwise and whereas one
of such parts of the said Note has not been alienated or pledged or in any way
negotiated by the said ..................................................
KNOW ALL MEN BY THESE PRESENTS that
We,.............................................. are held firmly bound to the
Bank of Bengal in the sum of Company’s Rupees .................................
of lawful Money of Bengal to be paid to the said Bank of Bengal their
successors or Assigns to which payment We bind ourselves and each of us our and
each of our Heirs Executors Administrators and Representative firmly by these Presents
and We do hereby jointly and severally for ourselves and our respective heirs
executors administrators and Assigns covenant promise and agree to and their
successors and Assigns that if any dispute or difference shall arise or happens
touching this Bond or Writing obligatory or the condition hereunder written the
same shall and may be heard tried and determined in the Supreme Court of
Judicature at Fort William in Bengal waive all pleas and objection to the
jurisdiction of the said Supreme Court touching or respecting the said matters
or any of them sealed with our respective seals dated ................... day
of ........................ in the year of Christ One Thousand Eight Hundred
and ......................
the value of said Bank Note on his
indemnifying the said Bank of Bengal against all claims and demands which may
be made upon the said Bank of Bengal in respect of the said part of the said
note. Now the condition of this obligation is such that if the above bounden
.................................do and shall at all times hereafter save and
keep harmless and indemnified the said Bank of Bengal of and from all and all
manner of actions suits claims and demands whatsoever for or on account of the
said part of said Note so cost mislaid or destroyed as aforesaid and of and
from all damages costs and charges whatsoever which the said Bank of Bengal may
at any time hereafter sustain bear or be put unto by reason or means of the
non-payment of the said half note and if the said
.............................................. do and shall when and as soon as
the said part of the said Note so lost or destroyed as aforesaid shall be found
deliver the same to the said Bank of Bengal. Then this obligation shall be void
or else to remain in full force and virtue.
Signed Sealed and Delivered in the presence
........................................................
END.
In addition to this practice of the Bank
of Bengal they also seemed to pay half notes, half their face value. There are
two examples which I have surfaced so far. These examples are dated:
BANK OF BENGAL HALF NOTES NO. 1 & NO. 2
1. 100 Company’s Rupees half
note dated 15th April 1853 having serial number 00415. This half
note appears too been paid by Bank for 50 Company’s Rupees. On the reverse of
note it is noted in blue ink that, “Paid Rs. 50 and signature” (ABOVE).
2. 50 Rupees half note dated 10th
October 1857 having serial number C/01409. This half note appears too been paid
by the Bank for 25 Rupees. On the obverse of the note scribbled on the top
right corner, “Pay 25/- only” and signed (ABOVE). We can observe the signature of W. Maples?/G.W. Moultrie?, Secretary during that time of Bank of Bengal.
The reason behind payment of these notes
could be related that bank wanted to pay off their outstanding claims towards
their currency notes. The other half of these notes might have been looted or destroyed
or mutilated. In lack of documentary evidence of the system of payment by the
bank, we can only assume this as a measure adopted for paying those people who
somehow lost the other parts. However, it is a very interesting history in the
currency notes issue of Bengal presidency.
According to Scutt Symes (1904), from
April 1858 the Bank’s notes were signed only by the Secretary, Deputy
Secretary, and Accountant, and not by director as was previously the
custom. This year was principally
noticeable for the frauds which were discovered in the Bank Note department.
They were alluded to in the half yearly report:
“Frauds
have been discovered to have been perpetrated by some of the Subordinate Native
Officers of the Bank Note Exchange Department, in surreptitiously introducing
lost and stolen notes into parcels of notes intended for cancellation, and
taking therefrom notes of a like amount. The guilty parties have not yet been
detected, but those officers, upon whom strong suspicion rested of being
accessories to the frauds, have been dismissed,
and a more efficient system of check such
practices introduced. The full amount, Rs. 20, 100, thus fraudulently
abstracted, has been removed from the khazanchee, who has the appointment of,
and is responsible for, the fidelity of the officers of the department.”
References
Bagachi; Amiya; (1987), “Evolution
of the State Bank of India: Part I”, Oxford University Press, 1st
edn., Out of print.
Razack, R.; Jhunjhunwalla, K. (2012) The
revised standard reference guide to Indian Paper Money, Currencies & Coins: Mumbai, 1st
edn.
Scutt
Symes, G.P.; (1904), “The History of the Bank of Bengal”, The Bank of
Bengal Press, Calcutta, 1st edn.
COPYRIGHT 2014 BY NILAISH, ESQ.
