Before the adoption of banknotes and flat coins, Thailand used Cowrie Shells, Prakab (Baked Clay Coins) and Pot Duang as the money.
Cowrie Shells
Prakab
Pot Duang or Bullet Coins
During
the period of His Majesty King Mongkut, Thailand had established
diplomatic relations with the great power countries from the west and
implemented the free trade. Trade increased enormously as did the need
for money. The production of Pot Duang was insufficient to meet the
demand as it was a hand-made and counterfeiting also became widespread.
In 1853, King Mongkut thus decreed that the first paper money called Mai
Mai were
printed on white paper with designs on both sides in black ink. To
prevent forgeries, each note was stamped with red Chakra, the emblem of
the Chakri Dynasty, and a red Thai-style crown, the insignia of King
Rama IV. Mai were originally divided into three types: low - value,
medium - value and high - value. Despite the effort to promote the use
of this paper money, people still preferred Pot Duang and it thus
failed to meet the king's intention.
Low-value Mai
Medium-value Mai
High-value Mai
During the period of His Majesty King Chulalongkorn, in 1873, there was
insufficient of low-value copper coins since the value of tin and
copper on world market rose above the face value of the coins.
Therefore, speculators melted copper and tin coins into blocks and
exported them abroad. This shortage caused the public to rely on porcelain Pee or
gambling chips used in the gambling house. People could keep and
exchange the Pee into money with the gambling house operator later. If
the gambling house operator failed to obtain a license, he had to make
an announcement to those who held the Pee issued by him to have the Pee
changed into money during a specific time. However, people could lose
money if they could not exchange on specific time. To
alleviate the shortage of small change that disrupted the small
business and to counteract the gambling house’s exploitation, the King
Chulalongkorn had decreed to issue a low-value paper money called Att Kradat (Low-value Paper Money)to
supply the demand of copper coins, which it was not preferred to use,
while was waiting for the copper coins ordered from England. The
government had issued to use those coins in 1875 and at the same time
had completely withdrawn Att Kradat from circulation.
Att Kradat (Low-value Paper Money)
Bat Thanakarn or Banknotes. As
the government could not supply Thai coins in response to the expansion
of economy and trade, Three foreign commercial banks including the Hong
Kong and Shanghai Banking Corporation, the Chartered Bank of India,
Australia, and China and the Banque de L’ Indo-Chine had been granted
permission to operate and issue banknotes to expedite the clearing of
debts between the bank and its customer in 1889, 1898 and 1899 respectively, Even
though the government had granted the commercial bank to issue their
banknotes, the government had reserved its right to deny or accept
them. The circulation of banknotes had limited only to a circle of
people who were in contact with those three commercial banks. However,
it was continually circulated for 13 years (1889 to 1902), making
people to be more familiar with paper currency and used to calling them
by the English name as banknote or bank which has commonly referred
to government-issued banknotes until the present time.
400 Ticals Banknote, The Hongkong & Shanghai Banking Corporation.
80 Ticals Banknote, The Chartered Bank of India, Australia & China.
5 Ticals Banknote, The Banque de L' Indo-Chine.
The
government had continued to explore several avenues to tackle the
shortage of money so as to be able to provide sufficient money supply.
The government had considered issuing paper money and announce it to be
money of the country replacing banknotes issued by commercial banks. In
1890, the government had prepared to issue a paper money called Ngoen Kradat Luang or Treasury Notes by
placing an order with Giesecke & Devrient, Germany. There were 8
denominations in various colors and sizes. Unfortunately these notes
were never put into circulation due to inefficiency in banknote
management.
80 Ticals
100 Ticals
400 Ticals
The
year 1902 marked an important landmark in the inauguration of paper
money in Thailand. By Royal Command, the Siamese Currency Notes Act,
R.E. 121 was promulgated on June 24, 1902. There were efforts to
introduce paper money to replace silver coins during the King Rama IV's
reign, and the success eventually came in the reign of King Rama V by
officially inaugurating Thai Banknotes Department under the Ministry of
Finance. The department had responsibility in issuing and exchanging
banknote which officially served the public for the first time on
September 23, 1902. This marked the inauguration of modern Thai
banknotes.
Thai Banknote Evolution
