A country's unit of currency speaks volumes about the history of the issuing nation. The design of bills reflects those things that a society considers important and the bills therefore become a medium for the communication of ideas as well as a means of tender.
Traditionally, the bills of Costa Rica have been printed with remembrances of important historical figures who influenced the political, social and economic development of the country. Other images include depictions of the principal economic activities, political acts and institutions as well as the material and cultural progress of the country. A recent addition to currency design is Costa Rica's biological diversity.
The history of paper money in Costa Rica began in 1839, when the head of state, Braulio Carrillo, authorized the emission of 30,000 pesos, in values of 5 and 10, in order to pay the salaries of state employees. The funds were issued to creditors who used them to pay their taxes and to purchase neglected land. This first phase in the history of Tico tender is an outgrowth of a simple scarcity of the coined currency then in circulation.
The period of war against U.S. filibusterers, between 1856 and 1857, the government issued currency to pay the Costa Rican soldiers. That currency was possibly paper-based and also served needs similar to those faced by Carrillo as well as the financing needs of a government at war.
The first bank to be founded in Costa Rica was the Banco Nacional Costarricense (Costa Rican National Bank) in 1858. The bank issued bills in denominations of 1, 2, 10 and 20 in two series: A and B. The bank was founded by Argentine businessman, Crisanto Medina, with the support of then president Juan Rafael Mora Porras. Although the bank was short-lived, closing in 1859, it inaugurated the second phase of paper money. A bank's need for currency had been established. Clients turned in their coins and were reimbursed in the paper money equivalent. A metal deposit secured each bill issued, so that the bills were essentially guarantees of coin-based holdings. The bills were transferable and worked much like today's checking accounts.
In this sense, the paper money used after 1858 has a common characteristic of serving to facilitate commercial transactions of great cost and value.
Other banks opened in the second half of the Nineteenth Century, such as: Banco Anglo Costarricense (1863), Banco de la Union which became Banco de Costa Rica in 1890 (1877) and Banco Herediano (1879), among others. Many of these institutions were short-lived.
The monetary reform of 1896 established the Colon as the currency and the Banking Law of 1900 enabled any bank with more than 1 million Colones to issue notes. So, during the first two decades of this century, bills from Banco de Costa Rica, Mercantil, Comercial, Anglo and International banks were in circulation.
Banco Internacional (International Bank) was created in 1914 as the state bank and, in 1921, became the sole issuer of national currency, thereby eliminating the issue power of the private banking sector. In 1936, the institution was reformed, became Banco Nacional de Costa Rica (The National Bank of Costa Rica) and created the Departamento Emisor, or Issuing Department.
The Civil War of 1948 and the Political Constitution of 1949 gave birth to a new form of investor state. This was manifested in the nationalization of the banking industry as a means of rechanneling credit to economic diversification and industrial development. In this context, the Banco Central de Costa Rica was founded in 1950, assuming the responsibilities of the Issuing Department at Banco Nacional. This organization also handled monetary, credit and foreign-exchange policies. IN 1951, it began issuing currency based on the format of Banco Nacional, but with a seal saying "Banco Central de Costa Rica", "Serie Provisional". After 1951, the bank produced its own bills.
The Museo de Numismatica de los Museos del Banco Central (a fancy way of saying "Currency Museum") is presently offering the exhibit, "Paper Money: Origin and Function". This exhibit presents a carefully selected set of bills, art, photographs and samples of Costa Rican bills. All serves to illustrate the history as well as the fabrication process of the local tender. Also on display is a set of test prints of various historical editions all bearing the number 000000; the collection serves to illustrate the common themes in the design of Tico bills.
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