Herefordshire Banknotes
Many people today may be surprised to learn that Hereford once issued its own banknotes. Several provincial cities boasted privately-run banks during the eighteenth and early nineteenth centuries, all printing their own banknotes. The Hereford City and County Bank was an early example of a private local bank that provided a service for the businessmen of the area. It was set up in 1796 and, from one of the notes that is still existing, we know that by 1812 it was owned by Charles Bodenham, Robert Phillips and John Garrett, three wealthy entrepreneurs, who took in cash and issued banknotes to the value of the investment. These notes promised to pay the bearer the face value when they were taken back to the Hereford and County bank. This allowed businesspeople to avoid carrying gold or coins and, instead, send out notes for payments.
All this sounds very familiar to us today but, until the end of the seventeenth century, only coins orpieces of gold were available for business transactions. It was the expansion of international trade that fuelled the demand for an easy way to transfer funds. The first private banks were set up in London but the idea soon spread to the provinces.
Leominster too had its own bank which issued notes. Examples of these can be found in the Leominster Museum in Etnam Street.
The first banknotes were hand-written and, as they became more common, were an easy target for forgers, even though the penalties were harsh. In the 24 years between 1797 and 1821, three hundred people were hanged in England for counterfeiting. Amazingly, the final hand-written note – the famous old white fiver, which was printed on one side only - was only withdrawn in 1957 and remained legal tender until 1961. These currently fetch around £150 at auction.
Even though Herefordshire banknotes are no longer legal tender, they have retained their value amongst collectors, who will pay several hundred pounds for good examples. Examples of these notes are shown below. Should you be lucky enough to find one under a floorboard or tucked in a beam its worth contacting a reputable coin and note dealer to get a valuation.
