Nilaish Paper Money Collection

Nilaish Paper Money Collection

Thursday, September 17, 2015

Book of the month!

The blogger of this blog; Nilaish has lovingly authored a book on the history of Indian paper money called, "FROM RUPEES  TO PAPER PROMISE : A history of Indian Paper Money".

Book Title: From Rupees To Paper Promise - A History of Indian Paper Money 
Author & Publisher: Nilaish, Esq. 
Pages: 308. British Library catalogue records is available for this book. 
To buy a copy of this book please email us at: nilaish86@gmail.com
Synopsis 
BOOK TITLE: ‘From Rupees to Paper Promise’.

SUBTITLE: A history of Indian Paper Money.  

BRITISH LIBRARY CATALOUING-IN-PUBLICATION DATA: A pre-publication catalogue record for this book is available.

AUTHOR: Nilaish


BACKGROUND & PURPOSE: The history of Indian paper money is not readily available for researchers, collectors and numismatists. This book is an attempt to present a good history of Indian paper money between 1770 and 1975.

            I am a collector for past 18 years and this work is a distillation of research done on this subject, which will help collectors to understand the subject in wider sense and will help them in a just way, in their pursuit of collecting Indian banknotes. When, I was a collector it was hard to find any source available for a collector across India and elsewhere, a book of this sort!

            I decided to write a history with credible research and using proper citations. This pursuit took me to Warburg Institute (University of London) in 2011, Fellowship of Royal Numismatic Society (2011-2012), Bank of England Museum (John Keyworth), British Museum (South Asia Department), Ashmolean Museum (University of Oxford) and many other museums. With the help of these visits, I collected information and made substantial preliminary notes to write this book.

            There are pictorial catalogues printed on Indian Paper Money, which are printed but all are short lived publications and are available at very high price. It is also important to highlight that there is no book of this sort in current publication which encompasses the history of Indian banknotes with credible research.



CONTENTS SUMMARY: The book starts with background history of British rule in India. It begins with very brief history of East India Company consolidating its power in Indian subcontinent. The events are mentioned in the order of its occurrence. The Company rule reached its zeniths and later it is found that, due to outbreak of ‘sepoy mutiny’ in 1857; the company’s power was shifted to the Crown of Great Britain: Queen Victoria. However, the change in rule impacted the judicial system in India. This impact can be seen in Currency notes of British rule.

            The second chapter deals with early joint stock banks which led the foundation of banking in India. Currency notes were issued as early as 1770, however there is no currency notes which have survived earlier than 1812. It is interesting to note that Bank of Bengal was established as Bank of Calcutta in 1806. Later the charter was granted in 1809 to form Bank of Bengal by governor general in council, Lord Minto. There were other private banks, which issued notes or were in preparation of issuing banknotes in the presidency towns. These banknotes were not accepted at the government treasury but usage at public booths was allowed.  

            The third chapter deals with Presidency Banks, Bank of Bengal, Bank of Madras and Bank of Bombay. Bank of Bengal notes issues are provided with details. Bank’s setup and officers details are highlighted. All types of currency notes are listed with illustration. The facts about currency notes are given with source citations. A brief history of Bank of Bengal between 1809 and 1860 is presented. Similarly, banking history of Bank of Bombay and Bank of Madras is presented in the chapter.

            The fourth chapter deals with Currency Act of 1861. However, the main idea is to present the major reform occurred due to this act. The currency notes issuance was handed over to Government of India, department of currency management. The main proposer of the bill was James Wilson. A very interesting essay on happenings of new currency reforms are mentioned in this chapter.

            The fifth chapter deals with Uniface series issued between 1877 and 1925. The amalgamation of three presidency banks into Imperial Bank of India in 1921 is presented with its implications. The facts related with currency notes are mentioned in the book in relation to the government acts. Later due to RBI Act of 1934 resulted in formation of RBI in 1935. Later chapters are divided into governor’s timeline. A brief account of Sir Osborne Smith, Sir James Taylor and Sir Chintaman Deshmukh are given. The illustrations of currency notes issued with their signatures are also depicted. A separate chapter on Pakistan issues is also listed with picture of currency notes. A brief overview INA’s contemplated paper money, Andaman Paper Tokens and Cash Coupons are also given. Chapters on Prisoners of War coupons, note issued by Indian Princely states are also covered in this book. A very good essay on Portuguese and French India issues are also covered in this book. Last chapter deals with description of paper promise and how far that paper promise is sustainable to the public of India.


TARGET AUDIENCE: Banknote collectors worldwide, numismatists, history buffs and economics researchers.


BENEFITS TO AUDIENCE: For a reader of this book these are following benefits: a) A very good historical panorama of Indian Paper Money, b) Guide to know many historical facts regarding banknotes, and c) History with citations using Harvard Referencing style.





TABLE OF CONTENTS:

PREFACE

1 Company Raj to British Raj   

2 Beginning of Banknotes in Bengal Presidency: an introduction    

3 Presidency Bank Issues 

3.1 Bank of Bengal (1809-1860)    

3.2 Bank of Bombay (1840-1860)  

3.3 Bank of Madras (1843-1860)    

3.4 Private Banks

4 Paper Currency Act of 1861 

4.1 Government non portrait issues  

4.2 George V Portrait Issues 

4.3 Burma Issues 

5 Reserve Bank of India Act 1934   

5.1 Time of Sir Osborne Smith 

5.2 Time of J.B. Taylor

5.3 Time of C.D. Deshmukh 

5.4 Pakistan Issues    

6 Prisoners war coupons    

7 INA’s Contemplated Paper Money

8 Andaman Tokens

9 Paper Money of princely States

10 Cash Coupons 

11 Portuguese & Indo-French Issues   

12 RBI after 1950 till 1975

13 Promissory text changes why?

BIBLIOGRAPHY              

SUGGESTED READING 
 
Copyright 2015 by Nilaish, Esq.

Monday, July 6, 2015

British India One Rupee Notes

by Nilaish (Life Member of IBNS-IBCC)

"One Rupee Notes: A legal tender for silver rupee coins to nickel rupee coins, in 1947 all silver content was gone from the rupee." 

1917 First issue: 
One rupee notes were first issued on 30th November 1917 representing 1917 one rupee silver coin. These notes were issued roughly in two types based on the following facts.

Type 1: The notes were issued in booklet of 25 notes with each note appearing as cheque leaf having perforations on the left. These notes were printed in England. Signed by A.C. Mc Watters. These booklets appeared like modern day cheque-books [see below].

1917 One Rupee booklet with 25 notes signed by A.C. McWatters 
Image Courtesy: Rezwan Razack 

Prefixes issued in booklets were, Y and Z only. Sometimes inside cover, advertisements were printed. The obverse of the note has serial numbers diagonally left to right. ONE RUPEE in bold in the centre. On the left top we see obverse of rupee coin with portrait of King George V [see below]. 


1917, Government of India, One Rupee, signed by A.C. McWatters, Y-prefix. We see the obverse of 1917 one rupee coin on the extreme left. You can observe perforations on the left. The reverse shows the language panel with one rupee in Urdu, Devanagari, Bengali, Oriya, Telugu, Tamil, Kannada, Gujarati;  royal cypher on the left and reverse of 1917 one rupee coin on the right. 

Type 2: The notes without perforations on the left. Signed by M.M.S. Gubbay, H. Denning. It came in packets wrapped in a brown paper ribbon [see next]. This issue was signed by M.M.S. Gubbay in some prefixes: A, B, C, D, K, L, M and R. On the reverse in the language panel incorrect Gujarati: 'Rupaya' in place of 'Rupayo'. 

1917 one rupee packet of 25 notes. 
Image Courtesy: Rezwan Razack 

1917 One Rupee, Type 2, correct Gujarati on the reverse, the prefixes which has correct Gujarati on the reverse D, E, F, G, H, J. One variation with correct Gujarati in the language panel without perforation with signature of A.C. McWatters has X prefix. 


WATERMARK: There are two types of watermark in the notes: 1) Type 1: Enclosed star. 2) Type 2: Rayed Star for H. Denning and A.C. McWatters signatures notes for prefixes Z, P, S [see next]. 

1917 one rupee, signed by H. Denning, watermark: Type 2. 

H. Deninng signed notes were issued in S prefix only. These notes were universalized issue. The prefixes earlier stand for circles of issue. For example, A = Cawnpore, B = Bombay, C = Calcutta, K = Karachi, L = Lahore, M = Madras, R = Rangoon. D onwards = Universalized issues. If we read the promissory text on the notes we observe: "I promise to pay the Bearer the sum of / ONE RUPEE / on demand / at any office of issue." These notes were convertible to one rupee silver coins. It is known from people who used these notes that, "...the acceptance of paper money was less in comparison of coins", confirmed by Rointon Andhyarujina when he commented about his father's time. However, British Administration encouraged people to use paper money for one rupee denomination as well. The main reason for the use of paper money convertible to silver rupees was an idea to curb silver deposits for World War I. These notes were withdrawn in 1926. 

1935 Second Issue: 
These notes were printed on hand made moulded paper. The notes depicts 1935 one rupee silver coin on the obverse and reverse. However, this issue was issued on 24th July 1940. This type was not issued with promissory text which made these notes token money for silver coin used around 1940. The are four types of this issue. All notes were signed by J.W. Kelly. The use term, 'Fiat Money' is also observed for these notes, similar to US dollar notes.

Type 1: Watermark GOVT OF INDIA, stars spread on the paper. These notes were issued in booklet with perforations and printed by Currency Note Press, Nasik [see next]. 

Perforations on the left, printed on hand moulded paper. Serial number font is distinct from other types in this case, E/65 (above). These notes were issued in brown booklets shown below. 

One rupee notes in booklet were stitched by thread. 

Type 2: These notes were printed by Bank of England press without perforation with watermark seen from reverse GOVT / OF INDIA with King George V head profile facing left. Serial number has different pattern [see next]. 

Serial number pattern, for example above: 01 A 865493, and without perforation. All other specifications are similar to type 1. Two prefixes were issued namely, A, B. 

Type 3: Serial number font is distinct from type 1, type 2 [see next]. Printed in England by Waterlow and Sons. Prefixes known ranges from 01C to 80C with watermark variety as in type 2. 

Serial number pattern and font is different from Type 1, type 2. Obverse is similar to other types. 


Type 4: Serial number pattern is different from type 1, type 2, type 3. The prefix known is XX/D. An example is shown below: 

18/D 650, 608 serial number in above type. The numbers are also separated by a comma. 

This design was made in 1935 by Tom I. Archer. The new design notes were issued with portrait of King George VI in 1944. It may be noted that the coins at that time were containing rupee coins with half silver content in the metal. Hence, the rupee reduced its value by half by the end of the issue. 

1944 Third Issue: 
The design depicts 1940 silver rupee coin on the obverse and reverse with the portrait of King George VI. However, these notes were issued in 1944 and withdrawn on 27th October 1957. These notes were signed by C.E. Jones, Secretary (Finance Department), Govt of India. There are four types of this issue. 

Type 1: Serial number in black and issued in prefixes A-Z, no inset alphabet [see below]. 

Type 1, 1944 issue. 

Type 2: Serial number in green with inset alphabet A in bold. Prefixes issued of this series were A-W [see next]. 

Type 2, 1944 issue. 

Type 3: Serial number in black with inset alphabet A in bold. Prefix issued of this series was in W/XX (This type is the most scarce type of all series). 

Type 3, 1944 issue, reverse similar to other types. 
Image Courtesy: Spink & Son Ltd (London) 

Type 4: Serial number in red with inset alphabet. These notes were issued on the eve of independence, 15th August 1947 [see next] and withdrawn in October 1957. This type is also scarce type and seldom seen in the collector's market. 

1947 issue with red serial. 

By 1946 the silver content of rupee coins was lost due to devaluation of old silver rupee. These new rupee coins were made of nickel. As a matter of fact, the rupee was no longer having precious metal silver in it. Hence, we observe the legal tender term appeared on Burma overprint notes issued for British Military Administration and Burma Currency Board for use in Burma. As India awakes to freedom at midnight, all the silver content of our rupee coins were drained to United Kingdom or Great Britain with the end of their diplomatic colonial rule. 

Notes & References: 
1. Razack, R.; Jhunjhunwalla, K.; (2012) "The revised standard reference guide to Indian paper money", Currencies & Coins, Mumbai. 
2. Shaikh, B.; Srinivasan, S.; (2009) "The Paper & The Promise", RBI Press. 
3. The image which is not from my collection is highlighted with owner's name. 
4. This article may have error but it is written for collectors and numismatists of the world to refine the content further to the scope of this work. 
5. Rointon Andhyarujina, is a collector of paper money of Colonial period and is a life member of International Banknote Society. 

Copyright 2015 by Nilaish, Esq. 

Saturday, June 13, 2015

The first Rupees notes!

Very few collectors know that the first 'RUPEES' notes were printed by Bank of Bengal. Although, Bank of Bengal issued currency notes since 1812 in the Bengal Presidency. The "Rupees" issue came much later after the Coinage Act of 1835. Earlier the currency notes were denominated in Company's Rupees (Notes issued prior to 1856). The new issue witnesses the famous "Sepoy Mutiny" of 1857. The very first rupee notes were issued in 10 Rupees (image shared), 25 Rupees, 50 Rupees, 100 Rupees, 500 Rupees and 1,000 Rupees. This new design was called, "Britannia Issues". It depicts on the top centre: Britannia (Personified lady) sitting on lion, on her left the personified lady depicting commerce and on her right personified lady depicting justice. In the background Sarnath on the right with elephant, Rhino on the left with natural background. These notes are without watermark and were printed and engraved by W.H. Lizars, Edinburgh (Scotland). It is also known that the design was taken from Banker's Competition of 1852 held at London? A very elusive part of my collection. It was dream to own this note when I first saw this in Victoria Memorial (Kolkata).

1857 Bank of Bengal, 10 Rupees

Monday, May 4, 2015

Indian paper money collecting has future?

By Nilaish
Life Member of IBNS-IBCC

"It is dear to those who loves currency notes and its history, but is there any future for stock pickers?"  


Collecting paper money hobby is a very educative hobby, but I suspect that very few collectors understand it?! I started collecting Indian paper money since 1998 and yet not grown out of my boyhood passion. I saw many trends in the market culture of traders of Indian paper money. Sometime back it was very high ... and now it is low! There are few things, which I noted during my journey of 18 years of collecting. This article focuses on the collector-side and as well as the investor-side of this hobby!

Earlier, I had observed: October 18, 2000 edition of the magazine: "Intelligent Investor" which published an article about investing in and collecting Indian paper money. The article was titled, "GET NOTE WORTHY!" authored by Chumki Bharadawaj. She defined the hobby of collecting paper money of India in an investment magazine for the first time? The subtitle of the article read as, "All of us love those bank notes, but it takes a special passion to crave the ones that can't buy you anything - even if they are worth a lot."

In the last two decades, I know few collectors and scholars who have enriched the knowledge of collectors about rare notes through their research on the subject. They are namely; Amiya Bagachi (Author), P.L. Gupta (Author), Rezwan Razack (Author & Collector), Late Aftab Joya (Author & Collector), Bazil Shaikh and Sandhya Srinivasan (Authors & RBI Directors). There are also some good collectors, whose names are not listed here.

It was mentioned in the magazine that, there are many collectors who collect these bank notes for fun rather as an investment. Despite of this, since then a big crowd of investors started hoarding rare bank notes of India. They paid a price based on the past demand of collectors, but never considered that if they are collected already in a collection; it will not have comparable future value, as liquidity of the asset is dependent on the same old demand which matches his investment passion. This market based sub-culture of stock pickers hiked the price of bank notes. At present, some suggestions are mentioned to stop downside.

STOP FALLS... SUGGESTIONS 
(i) The price of KGVI 100 Rupees signed by JB Taylor was sold earlier in the range of Rs. 30,000-60,000. Now the price of the notes has gone down and it is sold in the range of Rs. 15,000-30,000. It has happened because of stock pickers of today, who are not collecting for the sake of collecting but for other reasons. I am sorry to inform that in future... collectors will buy only from veteran collectors not from these stock pickers. The reason is very obvious, many fakes are sold to these layman hoarders as they don't know how to confirm authenticity of these notes. This is the main reason, price of these notes are have gone down. Advanced collectors still tend to buy from foreign auctions and do not mingle with these howler dealers.

(ii) History of currency notes are also not known to the new collectors, hence they fear buying for correct price...as they don't know the correct price! Provenance is a major issue for new collectors who wants to buy rare notes. Again in this case, new collectors will buy from veteran collectors as it much safer!

(iii) Stop following the trend of collecting portrait notes of KGV and KGVI, they are plenty available, the price will never be up in future! There is one section in Indian paper money which is neglected so far....Bank notes of Private and Presidency Banks (Bank notes used before 1860, during Company Raj). I know that there are less than 200 notes remaining dating before 1860. These notes are extremely rare whence, these portrait notes are not! It is also remarkable to know that, first bank notes were issued by Bank of Hindostan (1770-1832), Bank of Bengal (1809-1858) [An example shown below], Bank of Bombay (1840-1860) and Bank of Madras (1843-1860). To have any one example of these bank's note is a big accomplishment for a collector! Now they are sold at much cheaper price ranging from Rs. 70,000-5,00,000. As in future if collectors are aware of the history more, their demand will shoot up more! However, happy collecting!

1813, Bank of Bengal, 250 Sicca Rupees, PMG 20 (very fine), Sign cut and cancelled (norm and not to be considered a damaged note), Less than 10 examples remain, only PMG graded example of this type. 


Thursday, April 30, 2015

Persian Gulf Specimen of 10 Rupees is sold for over GBP 20,000!

Auction: 15008 - World Banknotes: Lot: 2031
 Gulf Rupees (Oman, Bahrain, Qatar and the Trucial States), specimen 10 rupees, ND (1959), serial number 0/00 000000, red and green and pale orange, for the Reserve Bank of India, Ashoka pillar at right, signature of H.V.R.Lengar low right, reverse red and mauve, dhow and seal at centre (Pick R3s, Razack-Jhunjhunwalla 6.12.3.1), black SPECIMEN overprint, ink letter 'A' top left, good extremely fine and very rareSubject to 20% VAT on both Hammer Price and Buyer’s Premium. For more information please view Terms and Conditions for Buyers. [Courtesy: SPINK & SONS LTD]. 

Sold for GBP 19,000 + 20% VAT 
Reported from SPINK WEB / CATALOGUE