Banknote Pricing in A Historical Context

First of all, I apologize for the extended hiatus.  I've been busy with other things as of late and haven't had very much time to devote to this blog.  In any case, today I'd like to briefly examine the reasons for the large differences in prices seen among notes, from different time periods and even within the same time period. 

Fist of all, as even the newer collectors among you have likely noticed, is that prices vary greatly by country as a general rule.  Some countries, such as the United States and Great Britain tend to have pricier issues, while others, such as Austria-Hungry and Imperial Russia are on the cheaper side.  In fact you'll notice that countries still standing today are as a rule more expensive than their vanquished or dissolved counterparts.  This is due to the fact that these nations still honor their currency, while non existing nations obviously do not.  My point is that you could still walk into a McDonald's restaurant and buy lunch with a five dollar note from 1917, but you wouldn't have much luck trying the same with a 10 ruble 1909 Russian issue (unless maybe the cashier is a collector!)

Another reason for the difference in pricing between notes of different national origin is that countries and empires that no longer exist often rapidly inflate their currencies as a last ditch effort to stave off economic ruin.  Naturally this results in a large quantity of notes, which in a short time being next to worthless in commerce.  History is littered with such examples, such as Imperial Russia in WWI, Imperial Japan occupation currency during WWII, and Wiemar Germany during the 1920s.

When collecting notes and looking through the pricing catalogs, it's important to examine the historical context of the notes when considering the reasons behind their valuations.

I'll end today's post with a question, answer in the comments and  get special mention in the next post.  "Why are Russian notes issued before 1898 very expensive to acquire?"

Imperial Russia 100 Rubles 1910

The Russian 100 ruble issue of 1910 is a rather large sized note at 260 by 122 millimeters and is printed in dark brown on a multicolored underprint.  The front features the Imperial Russian coat of arms in addition to a watermark of Catherine II, while the back features a portrait of the Tzarista along with an allegorical male figure.

These notes were, like many of the others that I've previously examined, issued largely during the rampant inflationary period immediately preceding and encompassing World War I.  As such, prices are relatively cheap, making this a very affordable specimen for most collectors.  Take care to find an example that hasn't been folded, as due to the large size I've seen this occur before at shows.   The Konshin variety is available in the following grades for roughly the following prices: VG:$15, VF:$30, UNC: $50, while the Shipov can be expected to retail for the following: VG: $8, VF: $15, UNC: $30.  As usual, here are the pictures:

Front:

 Back:

Austria-Hungary 20 Kronen 1907

This is an example of a relatively affordable note from the Austro-Hungarian Empire.  Like the German, Russian, and Ottoman empires, the Austro-Hungarian Empire dissolved following the end of World War I.  Due to inflation, and the relatively large numbers of surviving notes, many specimens can be acquired at modest prices and provide a new dimension to one's world banknote collection from a fallen empire.  The 20 kronen example is printed in blue on a red-brown and green underprint, as can be seen in the photographs.  The piece measures 153 by 91 millimeters, and could likely be acquired for the following prices based on condition( all prices approximate and in USD): Good: $6.00, Fine: $15.00, Extra fine: $50.00.  Please refer to my earlier post for determining the condition of a note.  Here are the pics:

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Note Submissions

So, I'd like to make this blog a bit more interactive than it's been up to this point.  Part of the reason is that it would be nice to create a community of imperial banknote collectors on the internet where people can compare notes and discuss challenges and particular favorites.  Also, my own collection is very limited in scope, and having other perspectives would be beneficial to everyone. 

To this end, I will be accepting note submissions (scans, written information, ect.) at imperialcurrency@gmail.com.  You will be credited on the site for all submissions used on the blog and get a chance to show off some of your favorite specimens. 

Imperial Russia 500 Rubles 1912

The 500 ruble issue of 1912 is one of the most spectacular banknotes of the imperial period due to both its sharp-looking design and sheer size.  This note is massive, and among the largest banknotes ever issued by any nation.  It measures 275mm by 127mm, and is truly a piece of artwork.  The front features the imperial coat of arms in several places, the denomination, and a watermark of Czar Peter The Great (r.1682-1725) on the left-hand side.  The back features a portrait of Peter on the left and a seated female figure towards the right side of the note.  The watermark is also visible from the reverse side.

This specimen comes in two signature varieties, Konshin and Shipov.  The Konshin examples retail for $15 in VG and $50 in UNC, while the Shipov notes go for considerably less--$8 in VG and $30 in UNC.  The difference in price between the two varieties can be attributed to the rampant inflation--brought on by World War I--that was going on in Russia during this time period.  The price of Shipov notes is less simpley because there are many more of them in existence.  

Here are the pictures:

Front:

  

Back:

Where to Find Banknotes?

So some of you may be wondering where to find banknotes for purchase, especially world banknotes.  While the banknote hobby is not nearly as large as the coin-collecting one in the United States, there are numerous way to acquire specimens for your collection. 

One such method is online, either through ebay or the sites of individual dealers.  This is perhaps the easiest way to find that banknote you've been searching for, especially if you live in an area of the country--or world for that matter--where the hobby does not have a strong presence.  The wide selection and ease of access is the major advantage to the online method of banknote collecting.  the major disadvantage, and it is a major one, is that you can't examine the banknotes in person before buying.  As I detailed in an earlier post, this can result in receiving a note different from the one you thought you were purchasing.  Whether this is due to dealer dishonesty or through legitimate differences in opinion regarding grading practices does not matter--when push comes to shove, you are getting a banknote that does not meet your expectations. 

My method of choice for expanding my collection is regional coin shows.  Some of the larger coin shows feature a number of banknote dealers in addition to their numismatic counterparts.  The advantage to having a number of dealers in one location is that you can shop around and find the best prices/notes.  In addition, while looking through the stocks, I've often come across interesting notes that I had little previous knowledge of which then opened my eyes to new branches of the hobby.  I'd highly recommend attending a moderate to large sized coin show as the entry fee is minimal (usually $5 or below, and it provides a great opportunity to see some interesting notes and talk with some (usually) very knowledgeable people. 

For some beginning collectors, collecting out of circulation may be a valid option.  Many collectors decided to focus on collecting notes with particular patterns in their serial numbers, for example a birth-year.  If this interests you, these notes can be found for just face value and a little (or a lot) or patience. 

1908 Imperial Germany 100 Marks

This banknote is an example of the 100 mark issue of 1908 from the German Empire.  This Pre-World War I note  features the imperial eagle prominently on the front and several female figures on the reverse.  This is not the first time these motifs were used on the 100 mark note, and in fact the designs were first used on the 1895 issue of the same denomination.

Like the russian 5 ruble note discussed in an earlier post, there are several major varieties of the 1908 issue: one being from the imperial period, and the other being issued during the early years of the Weimar Republic (1918-1922).  The key differentiating feature is the color of the seals.  A red seal (as in the pictured specimen) is from Imperial Germany, while a green seal designates it as being from the post-war printings.  Both of these notes are dark blue on light blue underprint.  The first variety also contains two varieties of its own, one with a long serial number (29mm) and one containing a short serial number (24mm)

A third variety features the mythical figures of Mercury and Ceres along with a different back (Germania holding a sword).  It also contains a watermark of Wilhelm I and the number '100'

The fourth and final variety of this issue features allegorical figures representing navigation and agriculture on the reverse in addition to two red seals on the front. 

The prices for these issues are as follows:

Variety 1 (long serial): VG-$2.5, UNC-$20
Variety 1 (short serial): VG-$60, UNC-$550
Variety 2 VG-$5, UNC-$20
Variety 3 VG-$30, UNC-$350
Variety 4 VG-$25, UNC-$1000

As always, here are the pictures (variety 1)

Obverse:

 


 

 Reverse:

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