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     >> The Commonwealth of Both Nations (Republic of Poland). 1918 – 1939.
         >> Paper notes of the Bank of Poland. I issue. 1919 – 1924.
PAPER NOTES OF THE BANK OF POLAND. I ISSUE. 1919 – 1924.
The Polish mark was the currency of independent Poland after 1918. Fighting to secure its borders and lacking in Treasury revenue, Poland continued to amass debt. The Treasury debt was covered by printing money. The amount of currency in circulation was rising rapidly and accordingly the exchange rate of the Polish mark was falling fast. In the middle of 1923, inflation turned into hyperinflation. Monthly rises in prices exceeded 50%.
In the middle of December 1923 Władysław Grabski was appointed Prime Minister and remained the Minister of the Treasury at the same time. He intended to balance the budget and obtain revenue from property tax, avoiding foreign loans for fear of political concessions. At the turn of 1924, monetary disaster loomed. Prices rose by over 150% every month.
On January 11, 1924 the Sejm passed the Act on State Treasury Repair and Currency Reform.
On January 20 the statute of the Bank of Poland was passed and the bank was granted the sole right to issue notes. The activities of the Bank were organised by a five-person committee chaired by the future President Stanisław Karpiński. According to contemporary models, the central bank was established as a private joint stock company, which was supposed to ensure its independence. The shares of the Bank were held by 176,000 shareholders. The State Treasury held only 1% of stock. The Bank started its operation on April 28, 1924. It exchanged the Polish mark at an exchange rate of 1 800 000 marks to the zloty. The zloty was on par with the gold franc (i.e. Swiss franc). The initially sound condition of the budget and the balance of payments as well as the accumulated foreign currency and gold reserves provided stabilization and ensured the success of the reform.
The Ministry of Finance issued notes for 1, 2, 5, 10, 50, 100 and 500 złotych.
The success proved short-lived, however. The very poor harvest and a deep industrial crisis in 1924, and later the disastrous balance of payments in 1925 weakened the zloty dramatically. Foreign exchange interventions of the Bank of Poland proved ineffective. Fearing a decrease in modest gold and foreign exchange reserves, the Bank decided not to defend the zloty exchange rate any more.

www.nbp.pl

29.05.2009.

		Material: Paper Denomination: 1 Zloty Year: 1919 Description: Face side: In the each corner of the ornamented background – denomination in oval frame. In the left part there is a portrait of Tadeusz Kościuszko (1746 – 1817), a military leader and a national hero in circle vignette. Above – series, beneath – 6 digit serial number. To the right part there is inscription in semicircular frame – BANK POLSKI, beneath – denomination in two lines: JEDEN ZŁOTY. Beneath it there is the text: Warsawa dn. 28 lutego 1919 roku / Dyrekcja Banku Polskego and two signatures of The Bank of Poland directorate. Back side: In the each corner of the ornamented background – denomination in oval frame. In the right part of the note there is coat of arms. In the centre of left part – denomination in two lines: 1 ZŁOTY. Above – issuer information. Issued in 28.02.1919. Dimensions: 93 х 63 mm. Without watermarks. 6 digit serial number, black color, the series is designated by 2 figures and one letter. After third sign there is comma. There are: – The series is designated by one letter. – The series is designated by three letters. The note put in circulation since 14.04.1924. FMM hasn’t got this paper note yet. The image from Katalog Popularny Banknotów Polskich. Fischer A., 2008. Country or town: Polish Republic
		Material: Paper Denomination: 2 Zlote Year: 1919 Description: Face side: In the each corner of the ornamented background – denomination in ornamented frame. In the left part there is a portrait of Tadeusz Kościuszko (1746 – 1817), a military leader and a national hero in circle vignette. Above – series, beneath – 6 digit serial number. To the right part there is semicircular inscription – BANK POLSKI, beneath – denomination in two lines: DWA ZŁOTE. Beneath it there is the text: Warsawa dn. 28 lutego 1919 roku / Dyrekcja Banku Polskego and two signatures of The Bank of Poland directorate. Back side: In the each corner of the ornamented background – denomination in oval frame. In the center – denomination 2, surrounded by inscription: DWA ZŁOTE. Above and beneath it – issuer information. Issued in 28.02.1919. Dimensions: 115 х 80 mm. Without watermarks. 6 digit serial number, black color, the series is designated by 2 figures and letter (A or B). There are: – The series is designated by one letter. – The series is designated by three letters. The note put in circulation since 14.04.1924. FMM hasn’t got this paper note yet. The image from Katalog Popularny Banknotów Polskich. Fischer A., 2008. Country or town: Polish Republic
		Material: Paper Denomination: 5 Zlotych Year: 1919 Description: Face side: In the left and right upper corners of the ornamented background – denomination in oval frame, between them – inscription in frame: BANK POLSKI. In the left part of the note there is denomination 5 Z. In the right part of the note in the circle frame there is a portrait of Józef Poniatowski (1763 – 1813), a Polish leader, general, minister of war and army chief, who became a Marshal of France. Beneath the left frame there is series, beneath the right one – 6 digit serial number. Between them there is the text in two lines: Warsawa dn. 28 lutego 1919 roku. In the center of the note – denomination PIĘĆ ZŁOTYCH, beneath it – inscription: Dyrekcja Banku Polskego and two signatures of The Bank of Poland directorate. Back side: In the left and right upper corners of the ornamented background – abbreviation of the Bank of Poland (PB), between them there is inscription BANK POLSKI. In the left part of the note there is a coat of arms, in the right part – denomination 5 Z. Beneath the frames – denomination in vignette. Between two denominations – issuer information. In the center of the background – denomination in two lines: PIĘĆ ZŁOTYCH. Issued in 28.02.1919. Dimensions: 125 х 80 mm. Without watermarks. 6 digit serial number, black color, the series is designated by 2 figures and one letter. There are: – The series is designated by one letter. – The notes issued in 15.07.1924. Watermark 'B.P', series is designated by II EM. and one letter of the Polish alphabet. The note put in circulation since 14.04.1924. FMM hasn’t got this paper note yet. Image from aes.iupui.edu/rwise/countries Country or town: Polish Republic
		Material: Paper Denomination: 10 Zlotych Year: 1919 Description: Face side: In the upper part of the background there is inscription in frame: BANK POLSKI. In the left part there is a portrait of Tadeusz Kościuszko (1746 – 1817), a military leader and a national hero in circle vignette, in the right part there is watermark (portrait of T. Kościuszko) in circle frame. Beneath frames – denomination 10 Z. Between vignettes there is denomination in two lines: DZIESIĘĆ ZŁOTYCH. Under it there is the text in two lines: Warsawa dn. 28 lutego 1919 roku / Dyrekcja Banku Polskego and two signatures of The Bank of Poland directorate. In bottom part of the background – abbreviation of the Bank of Poland (PB), to the left – series, to the right – 6 digit serial number. Back side: In the left part of the note there is watermark (portrait of T. Kościuszko) in circle frame, in the right part in circle frame on red background – issuer information. Between frames – denomination 10 Z, beneath – composition from a gear, rays of wheat and rod of Mercury. Over it – frame with inscription: DZIESIĘĆ ZŁOTYCH surrounded by cornucopias. Issued in 28.02.1919. Dimensions: 150 х 88 mm. 6 digit serial number, black color, the series is designated by one figure and letter A. There are: – Clause – red background of reverse frame, the series is designated by two figures and letter A. – Clause – purple background of reverse frame, the series is designated by one figure and letter A. – The notes issued in 15.07.1924. Clause – bordeaux background of reverse frame, the series is designated by II EM. and one letter of the Polish alphabet. Banknote put in circulation 14.04.1924 and withdrawn from circulation, when banknote with new design was issued in 1926. FMM hasn’t got this paper note yet. The pictures from Katalog Popularny Banknotów Polskich. Fischer A., 2008. Country or town: Polish Republic
		Material: Paper Denomination: 20 Zlotych Year: 1919 Description: Face side: In the left and right upper corners of the ornamented background – denomination 20 Z. In the left part there is a portrait of Tadeusz Kościuszko (1746 – 1817), a military leader and a national hero in oval frame, in the right part there is watermark (portrait of T. Kościuszko) in oval frame. Above the frames – coat of arms. Between frames – semicircular inscription: BANK POLSKI, beneath denomination in two lines: DWADZIEŚA ZŁOTYCH. Under it there is the text in three lines: Warsawa dn. 28 lutego 1919 roku / Dyrekcja Banku Polskego and two signatures of The Bank of Poland directorate. Beneath the left frame – series, beneath right – 6 digit serial number. Back side: In the left part of the note there is watermark (portrait of T. Kościuszko) in oval frame, in the right part in oval frame on red background – coat of arms. Above the frames – abbreviation of the Bank of Poland (PB), between – issuer information and denomination 20 Z. Issued in 28.02.1919. Dimensions: 160 х 97 mm. 6 digit serial number, black color, the series is designated by letter A and one figure. There are: – The series is designated by letter A and two figures. – Clause – purple background of reverse frame, the series is designated by one figure and letter A. – The notes issued in 15.07.1924. Dimensions: 157 x 96 mm. The series is designated by II EM. and one letter of the Polish alphabet. Banknote put in circulation 14.04.1924 and withdrawn from circulation, when banknote with new design was issued in 1926. FMM hasn’t got this paper note yet. The pictures from Katalog Popularny Banknotów Polskich. Fischer A., 2008. Country or town: Polish Republic

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