Although we all admire the beautiful coins that have been produced by Cuba over the last century, there are other areas of monetary collectibles that sometimes get overlooked. Such items as Treasury Bonds from the Cuban Government and local Cuban municipalities, fund-raising bonds for several revolutions, merchant scrip, lottery tickets, and the occasional political satirical note, which all fall under the broad definition of EPHEMERA.

Then, of course, there are the beautiful bank notes, which were first produced for circulation by El Banco Espanol de la Habana as early as 1857. The National Bank of Cuba (Banco Nacional de Cuba), although short lived, produced a series of four notes in 1905. After the brief Spanish American War, and American intervention, independence was declared from Spain in 1902, and Cuba used the United States dollar as its circulating paper money of choice.

It was not until 1934, when the Cuban Government Mint was operative, that the first domestic Cuban paper money was printed. Over the past 150 years, paper money from Cuba can be broken down into three distinct classifications. They are:

1. Colonial Cuba and pre-government issues (1857-1905).
2. Government Issues:
     A. 1934-1949. Republica de Cuba Certificos de plata.
     B. 1949-1960. Banco Nacional de Cuba.
     C. 1961 – Current date. Castro era.
3. Revolutionary Bonds:
     A. 1868-1878. Ten Years War.
     B. 1895-1898. Second War of Independence.
     C. 1950-1959. Castro Revolutionary Bonds.

COLONIAL CUBA AND PRE-GOVERNMENT ISSUES (1857-1905)
El Banco Espanol de la Habana

The Spanish Government founded El Banco de la Habana by Royal Decree in 1856, and in 1857, the bank issued its first banknotes of 50, 100, 300, 500, and 1000 peso denominations. In 1867, a second series of colorful, and beautifully engraved notes of 25, 50, 100, 300, 500, and 1000 pesos were released.

This issue was replaced just two years later in 1869, as well as the addition of 5 and 10 peso denominations. Again, in 1872, a new series of notes were authorized. This time, the denominations did not change from the previous issue, but an additional separate second series of one (1) and three (3) peso notes were issued. These lower denomination notes must have been a welcome addition to the daily commerce, considering the fact that the majority of these notes in existence today, are very worn.

The average citizen most likely had very little use for the higher value notes that were initially printed, but made good use of the smaller one and three peso bills. The first four issues were 5” by 8”, while the one and three peso notes were a more manageable 3” by 7”. In 1872, to further facilitate the need for small change, banknotes of 5, 10, 25 and 50 centavos were produced. They were issued again in 1876, with the exception of the 25 centavo note. In 1883, additional 5 and 10 centavo notes were printed. In 1889, a 50 centavo note, featuring Christopher Columbus, was issued.

Sometime between 1889 and 1896, the bank officially changed its name to Banco Espanol de la Isla de Cuba. In 1896, under its new name, it issued new notes of 5 and 50 centavos, plus 1, 5, 10, 50, 100, 500, and 1000 pesos. Again, in 1897, it issued notes of 10 and 20 centavos. The bank was reorganized in 1904, and continued to operate until the 1920’s, when it was forced into liquidation. Banco Nacional de Cuba The Banco Nacional de Cuba was organized in 1901 with money and influence from bankers in the United States. It issued a series of 1, 2, 5, and 10 peso notes in 1905.

During the first 20 years of the 20th century, several other banks were formed in Cuba. One of these was the Banco Internacional de Cuba, which opened in 1918. In 1920, it had more than 100 branches throughout Cuba but had over- extended itself. On October 10, 1920, Banco Internacional de Cuba suspended payments, which caused runs on all the banks throughout Cuba, including the long established Banco Espanol de la Habana and Banco Nacional de Cuba banks. The moratorium ended on December 1, 1920, but irreparable damage had been done.

The public lost confidence in the banks, which took some years to be restored. Until 1934, Cuba’s monetary system consisted almost entirely of the American dollar, and Cuban coinage, which was minted in Philadelphia.

GOVERNMENT ISSUES Republica de Cuba. (Certificados de plata).

1934-1949 In 1934, the Republic of Cuba issued its first paper currency of 1, 5, 10, 20, 50, 100, 500, and 1000 peso notes, which were at par with the US dollar, and backed by a silver reserve. The notes portrayed Revolutionary and National heroes of Cuba. They were:

Banco Nacional de Cuba (1949-1960)
In 1949, banknotes were issued in the name of the Banco Nacional de Cuba, which was created by the Cuban Government to act as the treasury and issuer of circulating currency. Although the name was identical, this bank was not associated with the non-governmental defunct bank of 1905-1920. A new series of notes was issued in the same denominations as the previous Certificados de plata, with the addition of a rarely used, or needed, 10,000 peso note, portraying I. Agramonte. To augment this series, the bank issued a 1953 one (1) peso, commemorating the centennial of the birth of Jose Marti.

Smaller size one (1) peso notes, dated 1956 and 1959, and newly designed 5 and 10 peso notes were issued in 1958 and 1960. In 1959, the color on the 100 peso note was changed from purple to orange. January 1, 1959 was a jubilant day for Cuba. New Years bells rang, as Dictator Batista fled Cuba, and Fidel Castro and his followers were welcomed as national heroes, as they triumphantly entered Havana.

Assuming power, Castro appointed Felipe Pazos, a trusted friend, to the presidency of Banco Nacional de Cuba. Pazos had joined Castro in the struggle to overthrow Batista during the latter years of the revolution, and enjoyed great respect from Castro. Additional banknotes were ordered and issued in 1959 imprinted with the Pazos signature. However, in October 1959, Pazos was removed as president of the bank. He was replaced by Che Guevara on November 25, 1959, on orders of Castro and the Council of Ministers. Due to this sudden change, several denominations of bank notes were reordered with the Che Guevara signature.

On August 4, 1961, all 1949-1960 notes were recalled and demonetized. Soon after, a entire new series of notes was introduced by Castro’s government.

Castro Era (1961 – Present)

On August 4, 1961, all 1949-1960 bank notes were demonetized, and a totally new series of notes were issued in the denominations of 1, 5, 10, 20, 50, and 100 peso. National heroes were again portrayed on the face of the notes:

The back panel of each denomination illustrated a revolutionary scene or theme. These notes were printed, as need demanded, until 1990. In 1975, a 1 peso note was issued, commemorating the 15th anniversary of the nationalization of banking. A 3 peso note was issued for circulation in 1983, depicting Che Guevara.

In 1990 and 1991, a new, and very attractive, series of notes were printed in denominations of 5, 10, 20, and 50 pesos, depicting the same individuals as the 1961 issues. The Banco Nacional de Cuba also issued a series of four different types of peso certificates, designated A, B, C, and D. They resembled traveler’s checks, and were to be used for foreign exchange. Values varied from 1 to 500 pesos.

In 1994, the Banco Nacional, seizing the opportunity to acquire hard cash, issued a series of Peso Convertibles in 1, 3, 5, 10, 20, 50, and 100 peso denominations. These notes were on par with the US dollar. These bright and colorful notes depicted monuments, which had been erected in Cuba in honor of: Jose Marti (1p), Che Guevara (3p), A. Maceo (5p), M. Gomez (10p), C. Cienfuegos (20p), C. Garcia (50p) and Manuel de Cespedes (100p). In 1995, two very poorly printed notes, depicting Jose Marti on the 1 peso, and Che Guevara on the 3 peso, were issued. In 1997, Banco Nacional de Cuba was changed to Banco Central de Cuba.

Several years ago, an interesting 1 peso note, dated 1995 and commemorating the death of Jose Marti, was issued. All known notes were overprinted “Specimen”, which indicated that they were not for general circulation to the public. The strange thing about this note is that it was printed with the Banco Central de Cuba name, which did not formally exist until two years after the issue. It is believed that approximately 1000 of the “Specimen”s were printed, and today, they are highly treasured collector items. In 1998, the Banco Central de Cuba issued a new series of 1, 5, 10, 20, 50, and 100 peso notes.

REVOLUTIONARY BONDS

Cuba was discovered by Christopher Columbus in 1492, which was the start of Spanish colonization. The colony of Santiago de Cuba was established in 1514, followed by Habana in 1515. The Spanish colonial population increased and the economy prospered during the 16th and 17th centuries.

By the middle of the 16th century, the native Indians had been virtually exterminated by the Spanish settlers, and slaves had to be imported to work on the plantations. By the early 1800’s, Spanish colonialism had become so oppressive that independence movements, including violent uprisings, had begun throughout Central and South America. Most of these uprisings were poorly planned and organized, and had literally no chance of success. The instigators were imprisoned, banished from their country, or put to death. However, the successful revolutionary results of Simon Bolivar, between 1810 and 1825, soon left Cuba and Puerto Rico as the only remaining countries under Spanish rule in the Western Hemisphere.

The Ten Year War (1868-1878)

The first war for Cuban Independence began on October 10th, 1868, when Creole planter Carlos Manuel de Cespedes freed his slaves, then formed a militia, which overran the eastern end of the island. This effort ended 10 years, and 200,000 deaths later, with a signed pact, granting the rebels amnesty. Although independence had not been obtained, much had been learned and a network of support had been formed, which would be very useful in the future.

During this period, two different types of notes were issued. The first notes were issued in July 1869, and drawn on the La Republica de Cuba in denominations of 50 centavo, as well as 1, 5, 10, 50, 500, and 1000 pesos. The second, totally different, series of 1, 5, 10, and 20 peso notes were issued only a month later in August 1869 by the Junta Central Republicana de Cuba y Puerto Rico. This organization was based in New York City, and headed by Jose Morales Lemus, who had been appointed by Cespedes to represent the Cuban Revolutionary Government in Washington, DC.

Second War of Independence (1895-1898)

During this period, no known banknotes or bonds were issued by the revolutionary forces. However, there are numerous very collectible and intriguing receipts for donations to the cause available to the collector. These receipts were issued from such diverse locations as Key West and Tampa, FL., and New York City. They demonstrate considerable support for the revolutionary movement that was based earlier in the USA during the Ten Year War.

Castro Revolutionary Bonds (1950-1958)

During the early years of Castro’s fight against the dictatorship of Batista, Castro raised funds by issuing several different series of bonds. After his triumphant entry into Havana on New Years Day, 1959, he proceeded to establish the new government.

In March 1962, Castro revealed his true intentions and announced that Cuba was to be established as a Communist State. Due to this declaration, as well as other unfavorable relations with the United States, the US Embargo Act of Cuba was passed, and became effective on July 8, 1963. Forty one years later, the embargo is still in effect, preventing US citizens from importing or exporting any Cuban numismatic material issued after the embargo date.

Some US citizens interpret the law that it is illegal to own or collect these items. In either case, US citizens are urged to adhere to these regulations, since strict fines, penalties, and even confiscation may be imposed on violators. Collectors, who reside in other countries not affected by the US Embargo Act, have a large selection of Cuban revolutionary bonds and bank notes to choose from, and should consider collecting these interesting Cuban currency.

The author considers it a pleasure for him to share his knowledge of Cuban Currency with his fellow CNA members.