March 2007

Next club meeting Monday 26^th March 2007. Please note the early date for this meeting due to the Easter Holidays.

• This will be a talk on Reflections from the Royal Mint Museum by Kevin Clancy.

Meetings are held at the Abbey Baptist Church ,Abbey Square, commencing at 7.00 p.m.

March meeting.

Twenty three members and three guests turned up to see Michael Gouby speak on The Development of Early Banknotes.

The earliest notes started about 1000 years ago in China, thought to be in the reign of Hien Tsung 806-821 in Szechuan province. China used mainly copper coins and these were not convenient for large transactions and there were periodic shortages of copper. Merchants could deposit coin in the central treasury and got notes as receipts, which circulated as currency. The merchants also issued their own notes. The earliest notes were printed using woodblocks and issued by merchants and were called Jiao Zi. The government took over in 1024 and used copper plates instead of the woodblocks. Notes were printed on Mulberry paper, which made it very difficult to forge the notes. However forgery did take place, though the penalties were very severe.

The first European country to print notes was Sweden because it relied on copper currency and inflation had made the copper currency (plate money) unwieldy. The first notes were issued in 1661, originally for copper denominations but in 1666 for silver currency also. Originally the bank only issued notes up to the value of the reserve held, but the Bank got greedy, issuing more notes than reserves and eventually went bankrupt.

Up until 1640 England there were no banknotes, as yet, only coins and it was the custom of merchants and the wealthy to deposit their cash and valuables in the Tower of London and get a receipt for them.

In 1640 Charles I seized some £120,000 from the Tower for his own use and it took a lot of protesting and many months for the merchants to get their money back. Due to the king’s action the merchants lost faith with the monarch and decided instead to turned to the ‘Guild of Goldsmiths’ for an alternative.

The Goldsmiths had secure premises and were very willing to issue receipts to all the merchants and noblemen that wanted to deposit goods and cash with them. Due to the ‘Guild of Goldsmith’s’ honest and reliable reputation other merchants had no hesitation in accepting these receipts when doing business and so these deposit notes were accepted as currency – not that they had any legal tender status.

In 1694 the Bank of England was formed and adopted a similar principle of issuing notes against deposits, for which three criteria were adopted:

• Giving out running = cash = notes (either running notes or later fixed value notes).
• Keep accounts with the creditor: in a book or paper of his own. (Deposit book system).
• To accept notes drawn on the bank. (A type of cheque book system).

The earliest notes had spaces for all the relevant details, which were filled in by hand, a number, the depositor's name (followed by 'or bearer') , the date, signature(s) of cashier(s) and of course the amount. They were issued in different denominations up to £100 or more depending on the amount deposited.

Running notes were so called because they could be taken back to the bank and amounts withdrawn. The amount withdrawn would be entered onto the bank and a ‘running total’ entered into the Bank’s records. If the note became worn out, it could be exchanged for a new one. The Bank issued ‘Specie’ notes (future exchange for like coins) in 1697 during the period of the great re-coinage.

The ‘Specie’ notes were the first notes to use a ‘watermark’ as an anti-forgery device. The paper was made at the Sutton Courtney Mill, in Berkshire. In 1724, the contract for making the paper, went to Henry Portal, who was based at Bere’s Mill, in Whitchurch, Hampshire. Partly pre-printed notes from £20 and upwards were made with this better paper.

Over the years many differences occurred particularly in the vignettes. In 1782 the denominations, dates and banknotes numbers were printed twice so that notes could be cut in half and sent separately (for security).

Well done to Michael for entertaining us so well and winning the battle with the computer wizardry!

Spring social / Skittles Evening

This will once again be a skittles evening at the Red Lion pub, Theale on Saturday 19th May. We intend to start gathering around 7pm for an 8pm kick off.

The price is £15 per head (£30 per couple) and includes a good buffet. If you would like to come please sign up at the April/May meeting.

Library

Be advised that the 2006 BNJ is now in the library.

Future Events.

• Linda Monk Fairs, Jury's Hotel, Great Russell St. 17^th March.
• Croydon Coin Auctions, Jury's Hotel, Great Russell St. 18^th March.
• Bonhams (Glendining) Auction. - 27^th March.
• Spink Auction 29^th March
• Midland Coin Fair at the National Motorcycle Museum 8^th April.

Past Events

This evening 30 years ago Raymond Lax gave a talk on 'Seige Pieces of the Great Rebellion in England 1642-49'.

Ten years ago, Graham Hornby talked on 'The Development of the Military Medal'.