Today, virtually all paper money in circulation around the world is issued by national, centralized governments, often under the auspices of a national banking system. This, however, has not always been the case, and in fact, one could argue that in the past only a small part of the currency supply in the world was issued in that manner. Instead, the currency (meaning paper money, primarily) in circulation was issued by a variety of private institutions, some of which were more legitimate than others. For collectors, many of these issues were listed in the Standard Catalog of World Paper Money: Specialized Issues (commonly known as the “Pick” catalog, after the original author, Albert Pick). While now out of print, in the introduction of the 12th edition the editor, George S. Cuhaj, wrote the following, which gives us a nice introduction to what these notes actually are:
“Falling within the scope of this Specialized issues volume are all state, local, municipal and company issues which circulated under auspices of recognized regional governments and their banking agents – thus notes which enjoyed limited circulation in their respective countries.”
While this is a very basic definition, and the catalog leaves out many issues that can be considered such issues, it is still the best and most complete (generic) catalog we have of these items. The next best thing, the digitally published Banknote Book, is a work in progress, and while private issues for certain countries have already been added, more needs to be done. Collectors of many countries will be familiar with the specialized works of literature that go beyond the Pick catalog and will typically refer to those works. But what, then, can we include? The list is almost endless, but collectors will typically exclude notes of no official nature (although exceptions exist), such as handwritten “I.O.U.” messages. On the other hand, certain notes exist from institutions that were never in business that remain highly collectible. An example would be the many fraudulent banks listed in Haxby that had notes printed in the United States prior to the American Civil War. Individuals were able to have notes printed by reputable printing companies, and with little banking oversight, were able to circulate them, quickly pocketing and exchanging genuine notes before disappearing.
To give an idea of the extent of issues that can be collected, here is a partial list of the more commonly seen categories:
- • Private banking institutions: This is the largest category, featuring a wide array of banks with financial backing ranging from solid to non-existent.
- • Merchant Bank Notes: These were issued by private merchants in lieu of cash. Depending on the company’s standing, they circulated freely.
- • Mining and Company Scrip: Companies often paid their employees in mining scrip, which could either be spent in a small geographical area or only at the company store.
- • Emergency banknotes: These are issued temporarily, often during times of war or crisis, to alleviate a sudden shortage of circulating currency. Also included in this category is siege money, issued during a siege when a town or region is cut off from the outside world and needs circulating money.
- • Military issues: Divided into two categories. Notes meant for circulation among military personnel (such as Military Payment Certificates) or notes issued by a military government for circulation among the general public.
Even more categories exist, such as camp money, ship money, church money, and clearing house notes.
As you can see from the list above, there is a wide variety of notes that can be collected beyond those issued by a national government. While the notes from private banking institutions are often well documented, the same cannot be said for the other categories, and new discoveries are made on a regular basis. For example, I recently came across an extremely rare piece of mining scrip from Mexico in a rather unassuming group of Central and South American paper money. While a lower denomination issued by the company had been reported, this was a higher value, and it was unknown until now. I will write more about that note in a future blog post.
Another appeal of these issues their local aspect. It can sometimes be difficult to tie a national issue to a specific region – for example, where one grew up. In the United States, national banknotes fill this void for many people, but outside the United States, collectors often do not have that luxury. Certain specialized issues can be a welcome alternative. For example, in the town where my parents live in the Netherlands (Doetinchem), during World War II, a hastily prepared issue of emergency coupons was issued when coins were hoarded on a massive scale. Except for some medals and the like, these are the sole numismatic items I have found for that town, where I lived for a while and still visit regularly. The complete set is certainly a prized group in my own collection, and I have seen very few examples of that issue in recent years.
What are your favorite specialized issues in your collection? Did you ever discover a previously unpublished note? Let the author know at [email protected].
