Monetary system in medieval Serbia

Monetary system in medieval Serbia rested on the exploitation of rich mines which in the course of the entire period of the minting of coins represented their foundation. The production of silver had an important part in profit making, but exerted a negative impact on the development of local economy. It evolved slowly, because many items were purchased somewhere else at cheap silver. Precious metal in the form of ingots and coins were exported to Venice, for the most part through the mediation of Dubrovnik merchants. Silver was exported without fulfilling its basic monetary function.
The first Serbian coins of King Radoslav and the renewed coinage in the time of King Dragutin rested on the monetary systems of their respective epochs: the coins of King Radoslav on the Byzantine monetary system, and the one of King Dragutin on the Venetian system, representing the main monetary unit on these territories. With the passage of time, money of account developed on the basis of the perpero with the value of 12 grossi. During the entire period, the monetary system was under constant pressure for numerous reasons, such as the devaluation of the dinar for financing a budget deficit, an increasing demand for coins, payments in coins, etc. it was also influenced by external factors mirrored in the disappearance of silver from circulation and its outflow, the general trend of the deterioration of coins, fluctuation between the prices of gold and silver, etc. An important role was certainly played by non-monetary factors, which primarily include: diminishing of territories, the problem of population density, climate conditions, plague, prices, trade decline, reconversion of trade – decline in the export of one article and its replacement by a new, more perfect one, and many others. Due to numerous pressures, the value of Serbian coins from the beginning of their minting in 1276 to the beginning of the 15th century constantly declined with lesser or larger oscillations; from theoretical 2.178 g it was reduced to only 0.40 g. On the other hand, this mutation of the dinar was followed by the gradual decline in the monetary stock. This process began in the time of the Emperor Uroš and was certainly correlated with the political and economic crisis, as well as the general decline in the quantity of precious metal in Europe.
Further currents of the monetary system were determined by the gradual dissolution of the Serbian Empire and the rule of independent local rulers. In spite of having been divided into several wholes, it ought to be stressed that monetary systems remained connected. The main trend of this period, as well as the previous one, until the creation of the Serbian despotate, was the continuous depreciation of the dinar, with smaller or larger interruptions.
A sharp increase in the price of this metal at the end of the 14th and the beginning of the 15th century brought about a search for new mines and their opening. In this period new mines were opened in Serbia, and the old ones considerably increased their production. The decline in the production of silver in Europe was partially halted by the influx of new quantities of this metal, most probably originating from Balkans.
The monetary reform of the Despot Stefan Lazarević, carried out after 1402, in which the weight of dinar, that is, its value, considerably increased, should be viewed in this light. Other measures undertaken by the Despot were aimed at the preservation of revenue. With the aim of preserving the monetary system, in 1421 the Despot Stefan Lazarević forbade the export of silver and gold to the Ragusa’s.
In spite of the significant production of silver, negative trends of monetary currents were also felt in Serbia, primarily as the consequence of the political crisis, the incursion of the Turks and the loss of territories. With the fall of Smederevo in 1459, the Serbian medieval state ceased to exist.
One year prior to this, Serbian coinage, for two centuries representing one of the most important monetary markets in the Balkans, ended with the coinage of the Despot Lazar Branković. Numerous types of coins which marked this development testify to the political strength and economic power of Serbian kings, emperors, feudal lords, towns and despots. They left behind them coins, frequently as the only source, behind whose shine the still unexplored world is hidden.

From book “Serbian medieval coinage” of Vujadin Ivanišević

New Serbian coins minted in 2009

20-Dinar Coin issued by the National Bank of Serbia
Issued in: 2009
Minted in: 2009
Obverse: Nominal value, portrait of Milutin Milanković
Reverse: Great Coat-of-Arms of the Republic of Serbia
Alloy: 70% Cu, 12% Ni, 18% Zn
Diameter: 28 mm
Weight: 9,00 g
In circulation from: June 26, 2009


10-Dinar Coin issued by the National Bank of Serbia
Issued in: 2009
Minted in: 2009
Obverse: Nominal value, motifs of the 25th Summer Universiade in Belgrade
Reverse: Great Coat-of-Arms of the Republic of Serbia
Alloy: 70% Cu, 12% Ni, 18% Zn
Diameter: 26 mm
Weight: 7,77 g
In circulation from: June 26, 2009

BANKNOTES OF FNRY 1949/51 - TRIAL ISSUES OR SOMETHING ELSE?

Unissued banknotes of the FNRY - Federal People’s Republic of Yugoslavia - belong to the category of Yugo slav notes for which we do not have any official data. They should not be seen as one, but as two different series. The first one has 10 denominations, all dated 1950, while the second one consists of 6 banknotes, dated May 1, 1945, May 1, 1950, November 1, 1950 and 1951. The first series (consisting of 1, 2, 5, 10, 20, 50, 100, 500, 1000 and 5000 Dinara) is undoubtedly the so-called reserve series, planned to be put into circulation in case of war. It had been issued at the time of difficult political situation, after Tito’s break up with Stalin and the formation of Informbiro, pact of communist countries; at the same time the Trieste crisis at western boarders of the New Yugoslavia also provided very tense moments. Specimens that we find on the numismatic market today mostly do not have serial numbers, so it is difficult to calculate the exact quantity issued. After being officially destroyed in the Banknote Printing Establishment in Belgrade (ZIN), it is believed that only some uncut sheets had been retained and later smuggled to the numismatic market, for the banknotes we observe on the market are improperly cut in most cases. The second series, which includes various dates of issue, we could not treat as the “reserve notes”, nor should they be connected with the “Informbiro” issues. It seems that the first note issued in this series was the highest denomination: 5000 Dinara dated November 1, 1950. It had been produced by the same technology as the “reserve notes” from the previous se ries. The 100 Dinara note dated May 1, 1949 and 50 Dina ra dated May 1, 1950 followed, and after them the banknotes dated 1951 and 1952, for they had been produced on paper of higher quality. There also exist two different types of numerations. Finally, the most illogical “case” is the banknote of 1000 Dinara dated May 1, 1949. It had been produced in the most advanced “intaglio” printing system on machines that Yugoslavia did not have at that time. The only possible conclusion is the hypothesis that it was printed in the Bundesdruckerei Munich, for the quality of paper, security devices and general appearance is similar to the German 5 DM notes dated 1948. This is quite logical having in mind that at the same period of time negotiations with Germany had been carried out for the war reparations, including the question of returning the eq uipment taken from the Belgrade Mint by Wehrmacht in 19- 44. It is therefore likely that a kind of compensation was printing of this note in the well-equipped Banknote printing esta blishment in Munich.

Nikola Tesla was a numismatist

It is well known that many famous people - rulers, scientists, artists... had been interested in numismatics. Starting with Roman Emperors Augustus Octavian and Hadrian, up to Italian king Victor Emanuel III and Egyptian King Farouk and up to famous poets Petrarca and Goethe etc. Among them was also the famous scientist and inventor Nikola Tesla, a Serb born in Smiljan, Lika, in 1855, died in New York in 1943.
Tesla lived and worked for a long time in Colorado Springs, now the seat of the headquarters of the American Numismatic Association. In 1900, when Tesla moved to Long Island due to the construction of the giant Power Plant for J.P. Morgan, he had officially became the member of the American Numismatic and Archaeological Society. Detailed articles about Nikola Tesla as numismatist have been published by Edward C. Rochette in his book The Other Side of the Coin,
and in the Numismatist Vol. 101, no. 1, under the title The Man Too Soon for His Time. Nothing is known however about Teslas numismatic collecting interests, nor about the destiny of his collection.

Exchange of krunas of Austro–Hungarian on the Territory the Kingdom Serbs, Croats and Slovenians

Exchange of krunas of Austro–Hungarian on the territory of the Kingdom of Serbs, Croats and Slovenians was being solved as a temporary measure, stamping of Austro–Hungarian krunas was ordered. Only particu­lar authorities of state organs and banks had the authorization for money stamping. As the population of the Kingdom of Serbs, Croats and Slovenians was mainly illiterate, smugglers started using postmarks in foreign languages. Seeking the way out of the then current monetary chaos, it had been decided that attaching of appropriate stamps on remaining krunas was to be executed immediately. During the stamping of krunas, 20 % of krunas submitted for stamping was being retained, allegedly on behalf of ”obligatory loan”. The Kingdom of SHS used these funds, as it was afterwards explained, ”to cover the deficits that appeared with the reconstruction of Serbia”.

Banknotes of Bosnia and Herzegovina printed in England

The Government of Republic of Bosnia and Herzegovina signed a contract with English banknote printing works Thomas de la Rue in Janu­ary or in February 1992. The aim of this step was to ensure the first quanti­ties of banknotes for independent Republic. The contract was secret, without knowledge of Governor of National Bank of Bosnia and Herzegovina. The first banknotes were printed with signature of Prime Minister Mr. Pelivan as Governor, and they were the first series.
The second, proof, series with signature of Governor Mr. Andrijić (sig­nature was not genuine) followed in the first months of 1993.
As the combination of basic elements of previous two series, the third series followed immediately.
Although the ”London” banknotes were printed in total amount of about 17 billion dinars these notes did not reach the circulation, National Bank refused to accept them from the printer and just a small amount of 50 and 1000 dinars notes of the third series reached the numismatic market. Seven different banknotes are known to exist (two of first, two of second and three of third series), but author expects that each four banknotes in each three series are printed.

The London issue of Bosnian and Herzegovinian dinars 1992

Banknotes in denominations of 50, 100, 500 and 1000 dinars of Nati­onal Bank of Bosnia & Herzegovina appeared on the numismatic market without date and the year of emission and with a signature of Stijepo Andrijic. According to Mr. Andrijic‘s claim, the National Bank of B&H, at the time he was its governor, had no connection with that bank–note emission and that signature on them is not his own. It is shown in his work that these bank–notes had been issued in London and that all had been executed via diplomatic representative of Bosnia & Herzegovina in Turkey, according to the order of official governmental organs and without cooperation and consent of the emission bank (i.e. the National Bank of Bosnia & Herzegovina and his governor), using the name of the bank and tacitly agreeing with forging the governor‘s signature.