Currencies of Puerto Rico - Reemergence of Paper Money

Reemergence of Paper Money

The negative perception created by the issue of paper money between 1813 and 1815, brought the production of banknotes to a halt, while only coins circulated in the archipelago. In 1865, the Spanish Civil Code was imposed in Puerto Rico. Meanwhile, the Caja de Ahorros was founded in San Juan, a small bank, which provided an annual interest of up to 6% to its subscribers. The institution was bankrupted in 1879, but its business model was followed by other banks founded in the southern region of Puerto Rico. The Caja de Ahorros de Ponce (lit. "Ponce Savings Bank") was founded in 1873 and continued in business until 1879. The institution issued notes in denominations of 1, 3, 5 and 50 pesos which were printed by the P.W. Derhan firm. These bills were only printed in one side and were signed by members of the bank's board of directors, which was composed by eminent Puerto Rican citizens. These were redeemed mostly in Ponce and co-existed along tokens issued by local business entities.

In 1868, the Central Republican Board of Cuba and Puerto Rico was founded. The group organized expeditions to Cuba, offering supplies to movements that supported the independence of Puerto Rico and Cuba. Founded by José Francisco Basora, a Puerto Rican revolutionary and friend of Ramón Emeterio Betances, the group had connections within the wealthy sugar industry in the larger antille. Bonds for quantities of 100, 500 and 1,000 pesos were printed between June 1 and November 1, 1869, in order to cover the expenses of the two planned revolutions. On August 17, 1869, the board issued notes in denominations of 1, 5, 10 and 20 pesos, these were produced to establish an affordable alternative to the bonds. All of these issues circulated throughout North and South America as well as the Caribbean. Although they were widespread in the Spanish processions, their use was kept clandestine to avoid imprisonment by the royal authorities. However, none of them was redeemed due to the failure of the Ten Years' War and Little War in Cuba. On December 17, 1866, Maria Christina of Austria signed a decree which authorized the auctioning of a railroad in Puerto Rico. In 1888, Ivo Bosch y Puig, an engineer from Catalonia, received the concession to put the project in march. In Madrid, Bosch y Puig established the Compañía de los Ferrocarriles de Puerto Rico (lit. "Puerto Rico Railroad Company"). During this decade, Charles Skipper and East produced 5-peso banknotes in England, which were circulated after receiving the signatures of Bosch y Puig and an unidentified associate.