Inflation in Poland reached its apogee in the fall of 1923. This led not only to the necessity of issuing the highest denominations of Polish money - 5 and 10 million marks in a single banknote - but also to a significant destabilization of the economy, the inability to effectively regulate state obligations and social unrest, and, as a result, the collapse of the government of Wincenty Witos. On December 19, 1923, a new government was formed, with Wladyslaw Grabski taking the portfolio of Prime Minister and Treasury Minister.
It is Wladyslaw Grabski who we now know as the main architect of the monetary reform, which was the overarching goal set before his government. Grabski accomplished this goal brilliantly.
As early as January 1924, a decree was issued establishing a new currency, the Polish zloty, and appointing a new body responsible for its issuance, the Bank of Poland, which replaced the previous issuer: Polska Krajowa Kasa Pożyczkowa.
The Bank of Poland began its operations on April 28, 1924, and on that day the new rules of the monetary system in Poland took effect.
Polish zlotys were introduced into circulation, circulation of the previous Polish mark was retained only until the end of June, with an exchange ratio of 1 zloty = 1.8 million marks.
According to the rules of the new monetary system, the zloty circulation was to include bank tickets (banknotes) and silver coins and coinage. Unfortunately, the State Mint in the initial period after the reform could not keep up with production, to meet the needs of circulation. Even assisting with production at foreign mints did not help - the amount of coins let loose in circulation was insufficient.
Aware of the problem and anticipating it, the Treasury Ministry prepared to introduce pass tickets as well. The first ones were ready already on the day the reform was implemented and the Bank of Poland was opened. They were made by reprinting the remnants of inflationary banknotes - 500 thousand and 10 million mkp. for new 1 and 5 pennies. They were also soon followed by individually prepared pass tickets with denominations of 10, 20 and 50 pennies.
All penny pass tickets featured images of the coins in which they circulated as a substitute. The purpose of this was, among other things, to familiarize the population with the appearance of the new coins, which were successively produced and put into circulation.
Already in the second half of 1924, the amount of coinage in circulation was so large that penny pass tickets began to be successively withdrawn from circulation, finally withdrawing them on November 1, 1924, and retaining the possibility of exchange until January 31, 1925. Saturation of circulation with coinage thus took only a few months, and so was the short period of circulation of penny pass tickets.
In 1925, the Treasury Ministry noted that silver coins in the denominations of 2 and 5 zlotys were still missing from circulation, however. It decided to repeat the previously successful procedure with the introduction of the penny pass tickets, implementing it through the issuance of pass tickets with zloty denominations.
On April 30, 1925, a 2 zloty ticket was introduced with an image of the already circulating 2 zloty coin with the Harvester. On July 1, a 5 zloty coin depicting the 5 zloty "Constitution" coin designed by Stanisław Lewandowski and planned for circulation was introduced. At that time, however, the coin did not yet exist in circulation, and as a result, it never entered circulation either. The 5 zloty coin was not introduced until 1928 and it was a coin with Nike.
However, the introduction of pass tickets in 1925 with denominations of 2 and 5 led to a conflict between their issuer - the Treasury Ministry - and the Bank of Poland, which was responsible for monetary circulation in the Republic at the time. The Bank accused the Ministry of not responding to the real needs of the market with the issuance of zlotys, but of patching the budget deficit with their issuance, thus destabilizing the newly introduced, currency.
The paper 2 zlotys were withdrawn from circulation at the end of March 1928, and the 5 zlotys at the end of June 1929. However, a long period of as much as 2 years was retained for the exchange of each of them at the cash desks of the Bank of Poland.
Very few un-exchanged pass tickets remained on the market. Both of these denominations are now among the very rare and sought-after values on the collector market, and are very occasionally found in uncirculated states. The clearly rarer of the two is naturally the higher denomination of 5 zlotys - by virtue of its greater purchasing power more scrupulously mentioned in the era.
The 5 zloty is also particularly visually appealing, as it depicts a very rare, unseen, never-introduced Constitution 5 zloty coin.
The 5 zloty ticket was issued in 7 series: from A to G, using 7-digit numbering.
The subject of this auction is a piece of the E series. Banknote in uncirculated condition with no deflection, only a small spot on the edge of the left margin. Rated by PMG at note 64.
A great rarity in this condition! Pieces in the OneBid archive with a grade of 64 were only offered 3-cronies, and never with a numerically higher note.
A very attractive item.
Definitely recommended.
