A great article I found from the website.
http://www.notepassion.com/Articles/NP-BN-FNS.htmlPhotos are available on the site.
The first known banknotes of Singapore, then part of the Straits Settlements, were issued in 1861 by the Chartered Bank of India, Australia and China. They were printed by W.W. Sprague and Co. London. The first issue can be identified by the denomination being written in full in two panels at the top left and right on the note. Later issues, of 1878, show the panel denominations as figures and also have “Singapore” in the bottom margin. The later notes were printed by Waterlow and Son.
All these early Singapore notes are extremely rare, the total of the first issue comprising only $80,000. Five denominations were prepared but the $500 was never in fact issued, though it exists in proof form. Only 100 notes of the $100 were issued, and 300 of the $50. The lower denominations comprised the $5 with a printing of 6,000 and the $10 with a printing of 2500.
But paper money was needed in Singapore long before the first formal issue, it being an important trading centre together with Malacca and Penang on the Malay peninsula. The colony was united under one government as a presidency of India in 1826 and in 1830 was incorporated under Bengal.
It came under direct British control in 1867 and in 1886 Christmas Island, Labuan and Cocos Island joined the colony. From 1941 to 1945 Singapore was occupied by Japanese armed forces. After the war the Straits Settlements were disbanded and Singapore became a separate Crown Colony until it joined the newly consitituted federation of Malaysia in 1963, leaving it in 1965 to become an independent republic.
The importance of Singapore as a trading centre started in the 14th Century but its modern history began when Sir Thomas Stamford Raffles established the town of Singapore in 1819 while acting as an agent for the British East India Company.
In the middle of the 19th Century, the Chartered Bank of India, Australia and China was spreading its influence throughout the area. An early charter had allowed the bank to open branches, and issue notes, in India, Australia and China but until 1861, when a supplement charter was obtained to open a branch in Singapore, its foodhold in Singapore was that of an Agency. This meant it did not have authority to issue banknotes.
By 1859 the need for paper money was becoming a major problem and the agent, David Duff, found a way to issue “banknotes”. He had on hand a stock of Post Bills payable three days after sight. Together with the accountant, Mr. C.S. Sherwood, he issued these Post Bills to himself or the accountant and “Accepted” them as Agent. The Post Bills were then able to circulate locally and perform the function of a banknote.
In all, six issues of Post Bills for use as banknotes were made : March 1, August 1 and December 1, 1859 ; April 2, July 1 and August 27, 1860. The following year they were replaced by normal banknotes.
Some of these Post Bill notes bear various chop-marks and signatures on the reverse showing the use from hand to hand. But many of them only bear the signature of the agent or accountant and were passed from hand to hand without the need to transfer by signature.
Records are incomplete but it is known that about $93,500 were issued and the known issues are : $5 – 300, $50 – 500, $100 – 500. It is thought about 200 $10 were issued and 75 $500.
The very first issue was made on March 1, 1859. Shortly, after that the Agent, David Duff, was in trouble with his firm. He lent a local dignitary a very large sum of money, far in excess of his authority to lend, and as a result he was dismissed. Mr. C.S. Sherwood was appointed Agent and carried on the practice of issuing Post Bills for use as currency, with a new accountant, Mr. Anderson.
These early Post Bills are therefore of great historical important in that they are the first paper money used as banknotes in Singapore.
