— SECTION III — Stamps on Banknotes By Brian Latonas

A. Stamps Applied to Banknotes to Increase Value

HUNGARY (1944-1946)

Veszprém (1944-1945)

A series of banknotes were printed in Veszprém by the evacuated Szálasi government and circulated in the Nazi-ruled part of Hungary in 1944.These consisted of 1944 reprints of the 100-pengö banknote of 1930 (Pick 98) and the 10-pengö banknote of 1936 (Pick 100) containing a star in the serial number. Some of the 100-pengö banknotes were affixed with a1000-pengö adhesive stamp (Pick 112). These were later replaced by the 1000-pengö bill of 1943. As an aside, in 1944, there was a plan to issue a new series of 10, 100 and 1000- pengö banknotes — all designed by Endre Horváth. Due to lack of time, only the 1000 pengö was officially put into general circulation. The 10-pengö banknotes were also printed, but only used by the evacuated troops in Austria.

Postwar Inflation Series (1945–1946)

In December 1945, the Hungarian government tried (and failed) to control inflation by introducing a one-time capital levy. Stamps were added to banknotes already in circulation to add to their value. Owners of the banknotes were required to pay three-quarters of their value. In return, owners received an appropriate stamp to verify payment. Three varieties of these banknotes abound: 1000-pengö banknotes with red stamps affixed (Pick 118a), and 10,000-pengö banknotes with either brown or blue stamps affixed (Pick 119a and 119b, respectively). This costly experiment was a failure. In 1946, inflation climbed to an astounding ratio of 1,000,000,000,000,000 old pengö to one new bilpengö.

B. Stamps Applied to Banknotes for Tracking/Counting Purposes

CZECHOSLOVAKIA (1944-1945)

After WWII, two varieties of banknotes received control stamps. The first were Czechoslovakian banknotes printed in Russia and brought into the country for use by the Russian Army. Records were improperly kept as to the number of banknotes that were issued. It became necessary to count the banknotes to determine the quantity in circulation. To accomplish this, each counted note received a stamp. Those circulating without stamps continued to be counted while stamp- bearing banknotes were not counted again. Only banknotes in denominations of 100, 500 and 1000 koruna were counted (Pick 48, 49 and 50, respectively). Once counted, each received a similar blue control stamp that featured the Czechoslovakian statesman Masaryk with a block letter “E” in its lower corners. The stamps were overprinted either “100” in black (Pick 53), “500” in red (Pick 55) or “1000” in red (Pick 57), depending upon the denomination of the corresponding banknote. The second variety of banknotes were former Slovakia issues counted and stamped for the same purpose. The Slovakia banknotes received their own stamps: yellow Masaryk stamps (profile facing right with cap) with “2K” in the lower corners and without overprint (Czechoslovakia Pick 51 and 52) affixed to 100-koruna banknotes (Slovakia Pick 10 and 11); similar orange Masaryk stamps with a block letter “B” in the lower corners and without overprint (Czechoslovakia Pick 54) affixed to 500-koruna banknotes (Slovakia Pick 12); and, a larger red Masaryk stamp (profile facing left with no cap) with a block letter “Y” in the lower corners and without overprint (Czechoslovakia Pick 56) affixed to 1000-koruna banknotes (Slovakia Pick 13). As an emergency expedient, the Czechoslovakian banknotes mentioned on the previous page and the banknotes of the former state of Slovakia circulated side by side until they could be replaced with post-war issues.

C. Stamps Applied to Authenticate Banknotes

CZECHOSLOVAKIA (1918)

After the disintegration of the Austrian-Hungary Empire (1918), several political entities re-emerged. Among these were Czechoslovakia and Yugoslavia. (Also, see below.) Each country developed its own monetary standard. Czechoslovakia changed the then circulating Austria- Hungarian banknotes into their own currency by adding tax stamps for which one percent of the face value was charged: Pick 1: 10-haleru blue stamp on 10-korona banknote (Austria Pick 19); Pick 2: 20-haleru red stamp on 20-korona banknote (Austria Pick 13); Pick 2A: 20-haleru red stamp on 20-korona banknote (Austria Pick 14); Pick 3: 50-haleru brown stamp on 50-korona banknote (Austria Pick 15); and, Pick 4: 1-korona orange stamp on 100-korona banknote (Austria Pick 12). For the large 1000-korona banknote (Pick 5), no stamp was actually affixed. Rather, an impression, appearing like a stamp, was printed to the obverse of Austria Pick 8.

YUGOSLAVIA (1919)

Like Czechoslovakia (above), Yugoslavia produced its own currency by affixing adhesive control stamps to circulating Austria-Hungarian 10-, 20-, 50-, 100- and 1000-koren banknotes. Smaller denominations received no stamps. The stamps showed no value, but differed in colour, and were variably inscribed in Slovenian, Croatian and Serbian, which created several varieties: Pick 6: orange adhesive stamps with text in three languages affixed to 10-kronen banknotes (Austria Pick 9 and 19); Pick 7: lilac adhesive stamps with text in three languages affixed to 20- kronen banknotes (Austria Pick 13 and 14); Pick 8: green adhesive stamps with text in three languages affixed to 50-kronen banknotes (Austria Pick 6 and 15); Pick 9: brown adhesive stamps with text in Serbian (Cyrillic letters) affixed to 100-kronen banknotes (Austria Pick 12); Pick 9A: brown adhesive stamps with text in Serbian affixed to 100-kronen banknotes (Austria Pick 12); Pick 9B: brown adhesive

-2- stamps with text in Slovenian affixed to 100-kronen banknotes (Austria Pick 12); Pick 10: blue, brown and orange adhesive stamps with text in Serbian (Cyrillic letters) affixed to 1000-kornen banknotes (Austria Pick 8); and, Pick 10A: blue, brown and orange adhesive stamps with text in Croatian affixed to 1000-kornen banknotes (Austria Pick 8).

BULGARIA (1919)

Thrace was annexed from the Ottoman Empire in November 1912, and Western Thrace in August 1913. At the Treaty of Neuily-sur Seine (1919), Bulgaria ceded Thrace to Greece. At this time, Bulgarian National Bank issues (Pick S101-114) surfaced with “Thrace Internalliee” re-validation adhesive stamps affixed either in white or blue, depending on the note. At least one other type is known with a black overprint that reads: “Government de la Thrace Occidentale Administration Civil de District Gumuldjina”. Others, show circular hand stamps that contain similar elements to the Trace Internalliee adhesive stamps, but it is unknown whether or not these hand- stamped notes are genuine.

GERMANY and AUSTRIA – Notgeld Private Issues (1919-1923)

The largest release of emergency money (Notgeld) occurred in Germany and Austria at the close of WW1 with over 36,000 different types of notes issued by over 3,500 municipal savings banks and private or state-owned firms. Some private issuers were known to attach stamps to their notes to fix the value. Two examples include Muller 20- and 50-pfennig issues (Besigheim) and Schreiber mark notes (Siersleben). As Notgeld issues emerged, they became popular among collectors. Orders from collectors were often filled without first applying the stamps to the notes. As the stamps were not mentioned in the text, most owners were unaware that to be complete, such pieces needed the appropriate postage stamp (or, in some cases, the appropriate savings stamp) to be attached. Stamp varieties are difficult to find. A few other issuers placed stamps on parchment covers along with printed text. Notgeld was not permitted by law, but most issuers, forced by necessity, ignored the law and printed their own notes anyway as a means of providing small change. Officials did not intervene, as the law was impossible to enforce. Cities known to specifically use stamps included Alfred, Meuselwitz, Gossnitz and Burgel (postage stamps), and Krefeld and Wittenberg (savings stamps).While Notgeld is most commonly issued in the form of paper money, it has also been issued in other forms, such as coins and encased stamps. [Also see Section I: Encased Postage Stamps as Emergency Money — Germany (1919-1923).]

EAST GERMANY DDR (1948)

On June 18, 1948, a currency reform was announced for the western zones of Germany. Subsequently, on June 20, 1948, the reichsmark and the rentenmark were abolished in the western occupation zones and replaced with the deutsche mark issued by the Bank Deutscher Länder (later the Deutsche Bundesbank). Because the reichsmark was still legal tender in the Soviet occupation zone, the currency flooded into the east from the west, where it caused sudden inflation and became worthless. The German Economic Commission, in consultation with the Soviet Military Administration, had anticipated this situation and printed stamps (June 19, 1948) to be placed on the older series of

-3- German banknotes, thereby authenticating their origin. Stamps displayed the same value as the banknotes to which they were attached in denominations of 1, 2, 10, 20, 50 and 100 marks (Pick 1-7, respectively). Only banknotes with stamps could be exchanged when the Deutsche Notenbank issued the new deutsche mark on July 24, 1948.

JAPAN (1946)

During February and March of 1946, the Japanese government required existing Japanese currency to be exchanged for new currency. When the quantity of the new currency was insufficient for demand, specially prepared shoshi (stamps) were issued for 10, 100, 500 and 1000 yen and applied to old banknotes (Pick 40, 51, 56 and 77, respectively) in the upper right corner (usually over the denomination value in that corner) to re-validate them (Pick 79-82). Banknotes denominated up to 500 yen were re-validated on a 1:1 ratio. The 1000-yen banknote was subject to a reduction in value. (See Other Demurrage-Based Currency below.) These stamped notes then became valid and circulated alongside existing new notes until other new notes could be printed and replace them.

RYUKYU ISLANDS (1946)

The Ryukyu Islands came under regulations promulgated by the US Military Government. Effective April 15, 1946, then circulating old-issue Japanese notes over five yen were required to be re-validated with the same shoshi as used in Japan. The re-validated notes were valid for use until September 1, 1946 when the new Bank of Japan banknotes became the only legal tender.

MANCHURIA (1945) — Red Army Occupational Notes

When the Russians entered the war against Japan (six days before hostilities ceased), they brought with them their own occupational money (China Pick M31-34). A brown Guandong Bank re-validation ten-yuan adhesive stamp was affixed to10-yuan banknotes (China Pick M35) and green 100-yuan stamps to the 100-yuan banknotes (China Pick 36) to limit their circulation to the port of Dairen in the Kwantung Leased Territory.

SOUTH AFRICA – Boer War, Marshall Hole (1900)

The Siege of Mafeking was the most famous British action in the Second Boer War (1899-1902). It took place at the town of Mafeking (now Mafikeng), in South Africa, over a period of 217 days, from October 1899 to May 1900. The Relief of Mafeking (the lifting of the siege) was a decisive victory for the British and a crushing defeat for the Boers. The 2 shillings, 6 pence Marshall Hole banknote (S667) from Bulawayo, Rhodesia dated 1900 (at left) is typical of the series. The note bears a Rhodesia (British South Africa) stamp (Scott 35) on the reverse. The obverse states: “Please pay in cash to the person producing this card the face value of the stamps affixed thereto if presented on or after the 1st August 1900. The card must be produced for redemption not later than 1st October. 1990”. The reverse of the siege note also displayed

-4- the signature of the Secretary (H. Marshall Hole) and the seal of the administrative office. Marshall Hole siege notes are the first Rhodesian banknotes (being issued at Bulawayo, Matabeleland). They are also the only banknotes to have been issued by the British South Africa Company. There are very few pieces in existence. British South Africa postage stamps were used from the 1896 issue, the 1897 issue and the 1898-1902 issue to denote the denomination of the banknotes. Denominations included: 2 pence (S661; Scott 28 or 52), 3 pence (S662; Scott 29 or 53), 4 pence (S663; Scott 30 or 54), 6 pence (S665; Scott 31, 55 or 65), 1 schilling (S665; Scott 33 or 66), 2 schillings (S666; Scott 34), 2 schilling, 6 pence (S667; Scott 35), 4 schillings (S668; Scott 37), 5 schillings (S669; Scott 38) and 10 shillings (S670; Scott 39). High values above four schillings are exceptionally rare. Robert Bradshaw Clarke Urry, the then manager of the Standard Bank at Mafeking in South Africa, co-signed the 10-shilling siege notes along with the army pay master.

CZECH REPUBLIC (1993)

Following dissolution of Czechoslovakia (1993), the Czechs and Slovaks initially agreed to keep their monetary union in place to minimize disruptions to economic activity. They agreed to maintain a common currency for a period of at least six months. However, markets did not concur, so – just five weeks later – authorities reversed course and decided in favour of monetary separation. The Czech Republic generated provisional banknotes (Pick 1-3) by affixing adhesive control stamps to former Czechoslovakian banknotes ((Pick 91, 93 and 98 — denominated 100, 500 and 1000 koruna and dated 1961, 1973 and 1985, respectively). The lower denominations circulated unchanged during this transitional period.

There are several advantages in printing and affixing stamps to existing banknotes when executing a currency switch rather than relying entirely on new banknotes. Stamps take far less time to design and print than banknotes. They can be rapidly distributed, thanks to their small size, and are cheaper to store. In the case of Czechoslovakia, for six days in February 1993, all koruna banknotes were brought in to have the proper Czech (or Slovak) stamp affixed to them. After the six-day period, any unstamped currency was declared worthless. Cross-border movements of cash between the Czech Republic and Slovakia were made illegal for that period and cash withdrawals from banks were suspended. The stamped banknotes were gradually exchanged, at par, for new koruna banknotes when released in August 1993.

SLOVAKIA (1993)

Similar to the Czech Republic (above), following dissolution of Czechoslovakia (1993), the Republic of Slovakia devised their own provisional banknotes (Pick 15-19) by affixing adhesive control stamps bearing the coat of arms of Slovakia and the denomination of the former Czechoslovakian banknotes to which they were affixed: 20, 50, 100, 500 and 1000 koruna (Pick 95, 96, 91, 93 and 98, respectively). These banknotes were gradually exchanged, at par, with new koruna banknotes when released in August 1993.

-5- TRANSNISTRIA (1991)

Transnistria — officially, the Pridnestrovian Moldavian Republic — is an area located adjacent to the former USSR Republic of Moldavia. The area has had a turbulent history shifting between Russian and Romanian control. When the USSR collapsed (1991), Moldavia declared its independence. The Russian people of Transnistria, located between Moldavia and the Ukraine, did not want to become a part of Moldovia Moldavia. In 1992, failing to solve the issue militarily, Transnistria declared its own sovereignty. The country — which boasts a president, parliament, an army and police forces — abandoned Moldavia banknotes and created their own (Pick 1-15) by affixing stamps to obsolete Soviet currency. The stamps display an effigy of A.V. Suvorov together with a value equal to that of the banknotes to which they are affixed. Various issues of USSR banknotes were utilized in denominations of 10 roubles (Pick 233 and 240), 25 roubles (Pick 234), 50 roubles (Pick 241 and 247), 100 roubles (Pick 242 and 243), 200 roubles (Pick 244 and 248), 500 roubles (Pick 245 and 259) and 1000 roubles (Pick 246 and 250), 5000 roubles (Pick 252, 224 and 239) and 10,000 roubles 9pick 253). In1994, these temporary banknotes were replaced by the first series of Transnistria paper money.

D. Stamps Applied to Banknotes to Relieve a Shortage of Small Change

HUNGARY (1945-1949)

To address a shortage of small coins following WWII, Hungary converted 1921 low-denomination first-issue state notes (Pick 54-61) into small change by affixing 1919-1920 definitive postage stamps (Scott 174-197). The example (left) shows a 2-koruna banknote (Pick 58) with a 5-fillér and a 15- fillér stamp attached (Scott 177 and 180).

KOREA (1917)

In 1905, the Korean Empire reluctantly signed a protectorate treaty with Japan. Korea remained under Japanese suzerainty until formally annexed by Japan (1910). As Japanese currency rapidly replaced Korean currency (1910-1945), the Bank of Joseon (formerly, the Bank of Korea, founded 1909) issued notes denominated in both yen and sen. To combat a shortage of metal coinage during WWI, the bank issued a 5-sen banknote (Pick 26) by affixing a Japanese Tazawa 5-sen postage stamp (Scott 121) onto a specially created form called a Tokubetsu Yubin Kitte Daishi (Special Postage Stamp Card). The form was printed on both sides with vertical lines of text, and had a place for a cancellation mark on the reverse.

CHINA REPUBLIC – TAIWAN (1917-1918)

Between 1895-1945, Taiwan (including the Penghu Islands) was a dependency of the Empire of Japan. Similar to Korea (above), Japan issued emergency postage stamp subsidiary coinage by affixing Japanese Tazawa stamps onto Tokubetsu Yubin Kitte Daishi (Special

-6- Postage Stamp Cards). The 1917 denominations were as follows: 5 sen violet (Scott 121) on a blue form (Pick 1914); 10 sen blue (Scott 122) on a pink form (Pick 1915); 20 sen claret (Scott 123) on a green form (Pick 1916); and, a 50-sen note comprising of two 20-sen stamps (Scott 123) and one 10-sen stamp (Scott 122) on an orange form. In 1918, an additional issue comprised the following: 1 sen orange (Scott 116) on an orange form (Pick 1918); 3 sen rose (Scott 119) on a purple form (Pick 1919); and, 5 sen violet (Scott 121) on a red form (Pick 1920). Like the Korean issue, the 1917 Taiwan forms had vertical text on both sides with a place for a cancellation mark on the reverse. The 1918 issue had vertical text on the obverse, but only a place for a cancellation mark on the reverse. (See also SECTION II — Postage Stamp Money for postage stamps affixed to cardboard and other material to produce emergency money.)

E. Demurrage Currency

GERMANY (1923) — Schwundgeld (“Dwindling”) Money

Silvio Gesell (1862-1930), a German economic theorist, proposed that money was more cherished than goods. Goods will wear out, go out of fashion, etc., but money will keep its value (at least in stable times). Therefore, Gesell reasoned, many people save their money and buy only what they need. Gesell further theorized that all businesses would do better if money were also subject to depreciation. He proposed to reduce the value of money by a certain percentage at specific intervals. The easiest way to implement this depreciation was to restore the nominal value of the note by affixing stamps to squares on the reverse of the note corresponding to the periodical depreciation dates. The holder of the banknotes would buy these stamps from the issuer (or the issuer’s agent). Stamp values were equal to the depreciation rate. Despite opposition by treasuries and banks, the mining town of Schwanenkirchen, which had gone bankrupt, agreed to accept banknotes of the “schwundgeld” type (known today as “stamp script”). Upon being paid wages, miners quickly used the banknotes (which they called “Wara”) so as not to lose a percentage to depreciation. The practice was also followed by merchants. Most people bought for the whole sum, and by this means business flourished. By 1931, the so- called “free economy movement”, based on currency of the “schwungdgeld” type, spread throughout Germany. It involved more than 2,000 corporations and a variety of commodities backed by the “Wara”. In November 1931, the German Central Bank prohibited use of the “Wara”.

AUSTRIA (1932-1933) — Certified Compensation Bills

In 1932, the small town of Worgl in the Austrian Tyrol, suffering like every other town in Europe and America from the Great Depression, took the unlikely step of issuing its own currency — “Certified Compensation Bills” — modelled after Gesell and the Schwanenkirchen experiment. (See Germany - above.) The bills were issued in denominations of 1, 5 and 10 schillings, and became valid only after being stamped at the town hall, after which they depreciated monthly by one percent of their nominal value. It was possible for the holders to “revalue” them by the purchase, before the end of each month, of stamps from the town hall, in the process creating a relief fund. The Certified Compensation Bills managed to complete a long list of projects. Soon afterwards, 200 townships in Austria wanted to copy the strategy. However, the central bank (somewhat like in Germany) decided to assert its monopoly rights with respect to the

-7- issuance of currency. The township of Worgl sued the central bank, but lost the case in November 1933. The case went to the Austrian Supreme Court, but was lost again, after which it became a criminal offence in Austria to issue “emergency currency”.

UNITED STATES (1932-1936) — Depression Script

Irving Fischer — an American economist — analysed the Worgl case. (See Austria - above.) He published various articles about its success. More than 400 cities and thousands of communities all over the US started to issue a form of emergency money. However, the US altered the German-Austrian approach by issuing “Depression Script” which only depreciated when its ownership changed hands. Whenever a banknote was given as payment, a supplementary stamp was affixed to the banknote, usually for a reduction of two percent. When 52 stamps were on a banknote, it was deemed mature and ready for redemption.

CANADA – Alberta Prosperity Certificates (1936)

Somewhat like the US, Alberta’s Social Credit government introduced “prosperity certificates” in an attempt to alleviate the effects of the Great Depreciation. The Prosperity Certificate Act (1936) authorized the issue of twenty-five cent, one-dollar and five-dollar denomination notes. However, only the one-dollar denomination was printed and issued. Every week, the holder of the note had to affix a one-cent stamp to maintain the bill’s validity. The intent, as in other countries, was to increase the velocity of circulation and to discourage hoarding. The Alberta Government injected the “prosperity certificates” into circulation by using them to pay part of the salaries of provincial civil servants. The intent was that the banknotes would be redeemed by the provincial treasurer after two years, by which time 104 stamps would be attached, yielding the government a profit. However, the prosperity certificate experiment only lasted one year. The necessity of affixing one-cent stamps was not popular, and to make matters worse, the stamps fell off. Newspapers spearheaded a campaign to boycott the banknotes. Of the 250,000 issued, only 19,639 were redeemed. This was the only province-wide use of depression script, and the only Canadian depression script to use adhesive stamps. Although illegal, many municipalities in Canada provided relief payment to its most destitute citizens using depression script that would be accepted by merchants in exchange for food and clothing, but these were not demurrage-based currencies. Some script issues were printed to provide wages for teachers and municipal workers. Sometimes the script could be redeemed through a bank account kept by the municipality, but in the case of the most cash-strapped jurisdictions, the script was only redeemable against future tax levies.

F. Other Demurrage-Based Currency

The above are examples of “demurrage-based currencies” (i.e., currencies where the value is designed to depreciate at a fixed rate over time). Other countries (France, Japan, Sweden, Brazil) also introduced demurrage-based systems using dated stamp script. Using stamps has several advantages. In particular,

-8- their use avoids both the complexity of requiring merchants to calculate the value of a note at any point and the uncertainty of potentially losing cash holdings. Dated stamp scrip also provides the added benefit of producing revenue for the issuer. That is, stamp payments basically act as an additional revenue stream to help finance the operation of the new monetary system. By connecting the value of the currency to current stamps, issuers essentially make the system self-enforcing. Merchants, for example, know that if they accept currency without the stamps, they are liable to pay the owed currency tax before they can spend the newly received money. Thus, those receiving the scripts also essentially act as ad hoc tax enforcers.

There are, of course, many types of demurrage-based systems that do not specifically use stamps. The most notable example is the “chiemgauer” (a private local currency with roughly eight percent annual demurrage) that has operated in Germany since 2003. This new and relatively successful concept has also exported to Austria (“waldviertier”), France (“abeille”) and the UK (“Stroud pound”). All contemporary currencies that operate with demurrage are used in tandem with a more established, widely accepted and relatively stable currency, such as the Euro. When this is the case, the economic effects of demurrage (unlike in the Great Depression) are dramatically reduced, nearly to the point of insignificance. Individuals tend to hold non-depreciating currency for uses that require accumulation of capital (such as long-term savings) and quickly exchange depreciating currency for small, regular expenditures. Contemporary demurrage-based systems, therefore, often impose a penalty for conversion into other currency units. The economic effects of demurrage varies with the extent to which the currency is accepted and the ability of the penalty to deter conversion to alternative monetary systems.

G. Stamps Affixed to Banknotes for Tax Purposes

CHINA (1921)

In 1907, the Empress Dowager Cixi (1835-1908) wanted to tighten control of taxes in China. To achieve this, she employed two Americans (designer Lorenzo Hatch and his assistant, a master engraver, William Grant) to produce tax stamps of the highest quality. They imported the best printing and engraving equipment available, and began to produce the new stamps at the Chinese Bureau of Engraving and Printing. Stamp duty came into force on October 21, 1912 (several years after the demise of the Empress Dowager) with the introduction of the “Stamp Act”. In the provinces, stamp duty was implemented on March 1, 1913. In 1916, production was moved to a new facility in Peking: the Bureau of Printing and Engraving. The early issues were then re-printed from new dies. All stamps featured the same design of the Great Wall of China and hence, are known as “Great Wall Revenue Stamps” The original stamps were engraved, but subsequent reprints and local issues were produced by a range of methods with minor changes occurring in size, colour and perforation. These stamps were used for tax purposes in the form of a purchase tax. In 1917, this charge was extended to passports, marriage certificates, examination certificates, diplomas, guarantees and a host of other legal and semi-legal forms. The Bode Museum in Berlin has, in its

-9- Numismatic Collection ( Münzkabinett), a private issue of a one-yuan banknote from Tainjin, Honan Province dated 1921 (left) with two 1-fen “Great Wall” revenue stamps attached.

MEXICO (1874-1932)

The Revenue Stamp Tax of Mexico required specific values of stamps to be affixed to all documents in ordinary, everyday transactions and principle mercantile operations, including banknotes. Banknotes from 5-10 pesos required 2 centavos in stamps to be attached. Similarly, banknotes from 11-50 pesos required 5 centavos. From 51 pesos upward, each additional 50 pesos, and fraction thereof, required a further addition of 5 centavos. For this reason, many older banknotes of Mexico have tax stamps affixed to signify that the banknote tax has been paid. Examples (above) show a 5-peso banknote from the state of Puebla (S381) issued 1904-1910 by the Banco Oriental de Mexico with two 2-centavo tax stamps, and a 100-peso banknote from the state of Tamaulipas (S433) issued 1902 by the Banco de Tamaulipas with a 5-centavo tax stamp attached. Tax stamps are commonly seen on Mexican banknotes; postage stamps are rarely encountered.

PALESTINE (1914)

The economic climate in the “Holy Land”, which was never very good, worsened just before and during WW1. Around 20,000 Jews left due to economic hardship, or were expelled by the Turks, from 1905- 1915. The towns of Tel Aviv and Jaffa were especially hard hit and circulating money was in short supply. The Jewish population in the region had to set up their own banking facilities, and often issued tokens to supplement the sparse Turkish and foreign coinage. The Anglo-Palestine Company (now Bank Leumi, Israel’s largest bank) issued franc-denominated registered cheques that were personally signed and backed by leading members of the community and circulated as money. Some of these circulating cheques were affixed with tax stamps required (ironically) by the Turkish Empire to support its war effort. In 1915, Ottoman authorities ordered the bank liquidated and attempted to confiscate all circulating cheques. However, with American support and pressure, together with acts taken by bank administrators (such as being sure that most of the cash and cheques would not be found in bank offices), the Anglo-Palestine Company continued to operate undercover for the duration of the war and therefore, was able to support, finance and assist the Jewish community.

GERMAN EAST AFRICA (1918)

In the last year of WWI, the German colonial army was forced to withdraw from the southern portion of German East Africa. They then crossed into the neighbouring colony of Mozambique where they held out until the end of the war. The troops paid the local population for their provisions in their own East African “rupie” banknotes (left). The local population, already accustomed to colonial paper money, accepted them. After the war,

-10- the Portuguese authorities collected these notes and paid their owners, but in doing so deducted a tax amount. For this purpose, a tax stamp was affixed to the banknote. Later, Germany made good on these banknotes by refunding their full value to Portugal. Notes with actual tax stamps attached are now extremely rare.

POLAND – Zywiec (1923)

The Polish government commissioned a paper manufacturing plant (along with others) to produce a series of banknotes, namely the 10,000, 20,000, 50,000 100,000 and 500,000 marek “inflation” notes dated September 15, 1923. The government prescribed that all notes have tax stamps affixed to their reverse side. For some unknown reason, banknotes from the city of Zywiec are the only ones that feature a tax stamp: Stamps are lacking on banknotes from other manufacturers. All five Zywiec banknotes feature a 100-marek general duty revenue stamp (1921-1923) on their reverse. The stamps show the Polish eagle, the denomination and the inscription “OPLATA STEMPLOWA” (Stamp Fee). They were used in Poland for tax collection on a wide variety of commercial paper: receipts, cheques, agreements, mortgages, etc. and, apparently, also on banknotes.

MACAU (1923-1944)

During the 1920s and 1930s, the private banks of Macau issued various circulating cashier’s checques in dollars to facilitate trade with Chinese firms (S107-S171). These cashier’s cheques circulated with the pataca issues of the Banco Nacional Ultramarino, which were in short supply. Most examples have appropriate colonial revenue adhesive stamps affixed as found on other commercial paper, such as bills of exchange and private cheques. The example at left, is a 50 dollar cashier’s cheque issued by the Kwong Yuen Bank (S108) with a 5 avos postal tax stamp.

H. Stamps Applied to Modern First Day Issues and Commemorative Banknotes

UNITED STATES (1976)

On April 13, 1976, the US Treasury Department (as a cost-saving measure) reintroduced the two-dollar banknote that had been discontinued in 1966. The 1976 two-dollar bills (Pick 461) were redesigned and issued as Federal Reserve Notes. The obverse design remains basically unchanged since 1928, and features the same portrait of Jefferson. A green treasury seal and serial numbers replaced the red used on previous US banknotes. Since the reissue of the banknotes coincided with the United States Bicentennial, a bicentennial theme was used to replace the typical Monticello reverse design: an engraved rendition of John Trumbull’s The Declaration of Independence, but with five figures removed to make the image fit the bill. First day issues of

-11- the new banknotes could be taken to a post office and stamped “APR 13 1976” with, or without, a 13- cent postage stamp (i.e., the cost of mailing a letter in 1976). This was the first use of postage stamps on banknotes to authenticate them as first day issues.

PHILIPPINES (1980 to Date)

Starting in the 1980s the Bangko Sentral ng Pilipinas (BSP) gave consent for different government departments and non-government bodies to overprint stocks of demonetised notes remaining in the bank’s vault to commemorate anniversaries and events. These unofficial overprints were not applied with any uniformity. Very few (if any) are the same. Many of the notes were issued in an unofficial collaboration with the Philippine Postal Service and thus, were affixed with postage stamps. The 2- peso banknote (top left) commemorates the centenary of the martyrdom of Jose Rizel (an ophthalmologist and Filipino nationalist at end of the Spanish colonial period) on a 1974-1985 Ang Bagong Lipunan series note (Pick 152) affixed with a 1996 postage stamp (Scott 2458). The 5-peso banknote (bottom left) commemorates the visit of Pope Francis in 2015, again on a 1974-1985 Ang Bagong Lipunan series note affixed with a 2015 postage stamp (Scott 3564).

References

References to soon be added.

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