50 Réis Casa da Moeda

Banknotes or “change currency” were issued in the country in two distinct periods: in the 1891 crisis, of a financial nature resulting from the bankruptcy of two banks, and in the period between the summer of 1914 and the summer of 1924 as a result of the inflationary process that was generated during and after the First World War (summer 1914 to autumn 1918).

The crisis of 1891 resulted from the bankruptcy of two banking institutions – Banco do Povo and Banco Lusitano – which led to a run on banks with the aim of exchanging fiat paper for gold and silver coins. At the same time, there was a hoarding of coins in noble metals, with only copper coins escaping, as they had a significant intrinsic value.

The situation experienced at that time forced the Bank of Portugal to issue, through a decree of July 9, 1891, notes of 1$000 réis and $500 réis, representing silver coins. At the same time, the scarcity of bronze coins and the delay in their minting led to, by decree of August 6, 1891, the Mint being authorized to issue 50 réis and 100 réis banknotes.

Instead of the metallic coin used for change, it was decided to resort to issuing banknotes. Banknotes printed on simple rectangles of paper, similar to bank notes, were considered “emergency money”.

See more in: https://adbgc.dglab.gov.pt/2022/11/28/arquivo-distrital-de-braganca-106-anos-ao-servico-da-memoria-coletiva-1916-2022/