2016-12-27 Tue

On 13th January, the World Banknotes auction in New York Spink is offering Europe’s first paper money for sale. The Swedish Palmstruch of 1666 has an estimated value of $25,000-30,000. The 10 daler silvermynt note is issued by Stockholms Banco and it’s the third issue with the serial number 1870.

Paper money was used for the first time ever in the 7th century in China. However, Europe introduced paper money only a thousand years ago. The note offered at the auction was issued by the Emperor’s Treasury, unlike the ‘Palmstruch’ notes which were issued by a bank.

In 1656 Johan Palmstruch was granted a Royal Privilege to start a bank. The Thirty Years’ War resulted in economic trouble in Sweden and continuing with existing copper currency in circulation was not practical. Copper coins were deposited at the bank and paper money was issued.

The text on the note reads: “the Bearer of this credit note has a claim upon Stockholms Banco numbered 1870 for 10 dalers silvermynt is attested by us, the Bank Director, Commissioners, Bookkeepers and Cashiers of the Bank each by his signature written with his own hand and by his seal; as well as authenticated for additional security by the large and the small Bank Seal intended for such purpose”.

The signatures on the lower left of the note are: Johan Palmstruch, Jacob Barchman, Henrik Marheims and Hans Hasselhuhns, while at the low right are those of Erik Appelgrens, Henrik Stockenstroms, Eik Torbjornssons and Anders Meijers. Each signature comes embossed with a seal for authentication.