Mexico Banknotes 10 Pesos 1823 Imperio Mexicano - First Mexican Empire
On January 1, 1823, the first 1 peso note (valued at 8 Mexican reales) was introduced. It was predominantly white in color with black ink. Displayed on the obverse was the coat of arms of Mexico with the value and a promise to pay the bearer the written value of the note. There was no design on the reverse of this issue.
Brief History of the Mexican Bank Note
Due to the huge mining wealth of the New Spain Viceroyalty, during the three hundred years of colonial rule in Mexico, currency consisted only of gold, silver and, in a smaller quantity, copper coins. Paper money did not appear until the 19th century in Mexico, after the independence was reached.
The political and social order of the New Spain Viceroyalty was disturbed by the Independence Revolt that started in 1810, resulting in a deep economic crisis due to the abandonment of mines (the economy's pillar) and capitals fly back to the Iberian Peninsula. Thus, the lack of currency was another problem of the torn colony. Several emergency necessity mintings and the first paper money appeared in Mexico; among these, in 1813, curious half a real pieces of orange cardboard appeared in San Miguel el Grande, Guanajuato, the issuers of which are unknown. Another background to the Mexican banknote is found in the late 18th century, at the former Spanish colony Louisiana, where banknotes in several denominations were issued.
Banknotes of the First Empire
After the consummation of the Independence in 1821, Mexico adopted a monarchic government leaded by the criollo Agustin de Iturbide, who faced a terrible economic penury resulting from the eleven year war. In order to solve this situation, Iturbide tried several measures: he gave considerable support to mining production, resorted to mandatory loans, wage deductions for both civil and military personnel and tax increases; nevertheless, the results of such actions were not as expected to afford the growing Court's expenditures and proved even counterproductive by raising the Emperor's discredit. As as drastic resort, paper money was issued (December 20th, 1822). These notes -the first official issue in Mexico- are also considered the first provisional necessity banknotes in this country. These pieces are printed on a single face, on an almost square shaped white paper, bear the legend IMPERIO MEXICANO (MEXICAN EMPIRE), and were issued in 1, 2, and 10 peso denominations. The fate of the banknotes was not different from other actions taken by the imperial government. They were never accepted by the public, that was used to handling coins; furthermore, these banknotes were suitable to mishandling among officials and payers, and contributed to the government discredit. Although many reasons caused the quick overthrown of Iturbide's government, the failure of his treasury and monetary policy was vital.
The 1823 Republican Banknote.
In 1823, Mexico became a Federal Republic. The new government tried to correct the treasury mistakes made by the Empire and to restore public trust in the government's financial management. Therefore, among other actions taken, mandatory loans stopped and the imperial banknote was withdrawn from circulation. Nevertheless, the serious treasury penury was not solved and paper money was issued once more to finance the state. This time, in order to halt the popular reject to this exchange medium, it was printed on cancelled papal bulls, which were expected to be accepted due to the religiousness of the Mexican people. The result was not different from the obtained by Iturbide: banknotes were not accepted by the public and soon they had to be withdrawn from circulation.