ISSN 2299-632X Money Centre No 9 in memory of Sławomir S. Skrzypek 1st Q 2017 Bankoteka HISTORY • ECONOMY • EDUCATION Visit our website www.cpnbp.pl The NBP Money Centre Magazine Dear Readers Starting from this issue, the “Bankoteka” viewed at the NBP Money Centre. We also magazine will be published on a quarterly describe the history of the smallest coin basis. In the regular sections we are going to presented in the Money Centre. The enlarged publish material which on the one hand draws photograph will allow you to see all the details attention to the most interesting elements of of this miniature lump of ore. the NBP Money Centre, and on the other hand offers broader knowledge about the exhibits “Multimedia” is a section in which we will and issues presented in the exhibitions. disclose what is sometimes hidden in these items of the exhibition. Their secrets include “Education” is the most important section texts with additional information on the topic of the magazine, devoted to the educational presented in the given room, photographs and activities in the field of economics and graphics. We begin with a discussion about finance carried out by Narodowy Bank the attractiveness of multimedia elements. Polski. The educational purpose is served by both the Money Centre and the activities of The Money Centre is adapted in order to the Education and Publishing Department of enable viewing by visitors with various types Narodowy Bank Polski. of disabilities. This is confirmed by a certificate, and verified in practice by our guests. In this In this issue’s “Education” section we present issue, we write about a visit of children and the contemporary, post-war history of youth from one of Warsaw’s schools. Polish money. Many people, and especially the young, who haven’t yet visited the NBP The last section is “Money museums of Money Centre, will be surprised to learn the world”. We travel from Warsaw to Lisbon, that there was once a 2 złoty banknote in where the Museu do Dinheiro – the Money Poland. They can find this out by viewing Museum – was opened last April. This facility this banknote on display. On the cover of presents the history of Lisbon and Portugal the magazine we present not only the 2 złoty through the history of money. It’s an amazing banknote, but also a banknote with place! I can say this with conviction, because a denomination one million times higher. Yes, I visited it during last year’s conference of we used to have a 2,000,000 złoty banknote the representatives of the European Union at one point as well! money museums. In the “Exhibits” section you can read Enjoy your reading. about the latest Polish banknote with a denomination of 500 zł, which went into Stanisław Gorący circulation on 10 February 2017 and can be Editor of the “Bankoteka” magazine 3 Education The 2 złoty banknote The history of the initial design of the NBP building p. 5–6 Redenomination of the złoty, or how Poles stopped being “millionaires” Once there was a 2,000,000 złoty banknote... part I p. 8–10 4 The NBP Money Centre Magazine The 2 złoty banknote The fate of the post-war banknote – with a denomination of 2 zł – is intertwined with the history of the head office of Narodowy Bank Polski. The reverse side of the banknote depicts the initial design of the NBP building, created by a team of architects led by Bohdan Pniewski. The building presented on the 2 zł banknotes was never erected and ultimately passed into oblivion in the 1960s when NBP ceased the issue of the 2 zł banknote. The history of the 2 złoty banknote began in regime of the Polish Committee of National Before the new money appeared in eastern the summer of 1944, during the “second Soviet Liberation. Poland, on 26 July 1944 Edward Osóbka- occupation”, that is, after Eastern Poland was -Morawski signed an agreement with The decree of the Polish Committee of Natio- seized by the Red Army. Three different types the Soviet government in Moscow on the sur- nal Liberation of 24 August 1944 introduced of money were used in those territories: Ger- render of the Polish territory to the jurisdiction banknotes in denominations of 50 gr and 1, 2, man occupation-era złoty banknotes printed of the Red Army. Then on 27 August, he signed 5, 10, 20, 50, 100 and 500 zł in the “liberated” in Kraków, German marks and Soviet rubles. the “Agreement between the Polish Commit- territories. This currency, known as the “Lublin In this situation there was a clear need to issue tee of National Liberation and the Soviet series”, appeared in the Białystok, Lublin and new “unified” money, both as a means of eco- government on the Polish-Soviet border”, pur- Rzeszów voivodeships as early as 27 August nomic exchange and as an excellent means suant to which Poland lost nearly half of its 1944. The banknotes were issued by the Cen- of propaganda for the emerging Communist pre-war territory to the Soviet Union. tral Treasury Office, established pursuant to a decree of the Polish Committee of National On 15 January 1945, two days before Liberation, which was subsequently transfor- the Soviets crossed over to the left bank of med into the Ministry of Treasury, and in 1948 Warsaw, the Polish Committee of National renamed as the Ministry of Finance. Liberation established Narodowy Bank Pol- ski. Its temporary head office was located in The head of the Department of Economy and the building of the former National Agricul- Finance of the Polish Committee of National tural Bank at Nowogrodzka Street, which Liberation, Jan Stefan Haneman, who was survived the war unscathed. Narodowy Bank a former low-rank bank official and a member Polski was granted the exclusive right to issue of the Polish Socialist Party, brought the new banknotes. Less than a month later, in Febru- banknotes in hemp sacks aboard an aero- ary 1945 the embryo of the NBP head office plane from Moscow. The banknotes, printed launched its activities. in the Moscow “Goznak” printing house, were designed by Soviet graphic designers from Due to the destruction of the Polish Security a team led by Ivan Dubasov, a famous designer Printing Works in Warsaw, the printing of of Russian banknotes, medals, military deco- banknotes was moved to Kraków and Łódź, rations and postage stamps (he co-designed where the company was relocated along with the emblem of the Soviet Union). its pre-war employees. The first delivery of banknotes from the former National Printing The banknotes, released to the market by House in Kraków, converted into the seat of the Treasury and not by the bank of issue, were the Polish Security Printing Works, arrived known as treasury notes (at that time it was at Narodowy Bank Polski on 21 March 1945. impossible to resume the operation of Bank Polski SA, associated with the Polish govern- By May 1946, the banknotes introduced into ment-in-exile). However, these first treasury circulation included the denominations of 1, Postwar NBP head office at 50 Nowogrodzka notes already carried the name of the future 2, 5, 10, 20, 50, 100, 500 and 1,000 zł. Bankno- Street in Warsaw. Photo by NAC. bank of issue: Narodowy Bank Polski. tes of the highest denominations (100, 500, 5 Education 1,000 zł) contained socialist-realist depictions of workers and peasants. At the same time, the new authorities were preparing a large-scale money exchange ope- ration. The exchange was announced on 28 October 1950 in the Journal of Laws No. 50, item 459. All the banknotes introduced into circulation in 1950 were designed by Wacław Borowski. The face values of 2 and 5 złoty were printed in the Łódź branch of the Polish Security Printing Works, while the 10, 20, 50, 100 and 500 złoty banknotes (with the date of issue of 1 July 1948) were printed abroad – in Sweden, Czechoslovakia and Hungary. After 1950, the production of all denominations was moved to the Polish Security Printing Works in Warsaw. The new złoty, equal to one ruble and one quarter of a dollar, with a theoretical value of 0.222168 grams of pure gold, entered into circulation on 30 October 1950. Salaries were exchanged at a rate of 100 old złoty to 3 new złoty, and cash at the rate of 100 old złoty to 1 new złoty. Less than ten days later, on 8 November 1950, the money that was in cir- culation prior to 30 October was invalidated. Meanwhile, the press and the radio proudly informed that since 100 old złoty was now equal to 3 new złoty, the “purchasing power of the new złoty is more than 33 times higher than the purchasing power of the old złoty”. In reality, the introduction of the new złoty depri- ved the Poles of two-thirds of their savings. CENTRAL BANK room. 2 złoty, issue from 1 July 1948. The “Sztandar Ludu” (People’s Banner) new- spaper claimed at the time that the Soviet economy was developing so well because in coins facilitated small payments and were used for nearly thirty years; only the denominations the years 1947-1950 three currency reforms in pay phones. of 2, 5 and 10 zł were being withdrawn from were carried out in the Soviet Union, com- circulation from 30 June 1960. The 2 zł deno- bined with a reduction in the prices of basic mination became a coin. consumer goods. The banknote with the lowest denomination was the 2 złoty banknote with the date of issue The exchange of 1950 was linked with of 1 July 1948.