Author Topic: A Gorgeous Rs 1,000 note of George VI  (Read 5410 times)

0 Members and 1 Guest are viewing this topic.

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
A Gorgeous Rs 1,000 note of George VI
« on: May 14, 2013, 07:55:57 AM »


I didn't see any Rs. 1,000/- denomination of George VI at this forum so thought let me be the first one to do so. This was really a princely sum in those days as even in late sixties, I recall my father, an engineer, received only Rs 500/- as monthly salary from which not only did he manage to meet all household expenses but also save (for us kids to blow it up later). My grandad migrated from Rawalpindi, Pakistan to India during Partition and he used to regale me with stories of how in the early Forties (pre-independence), things were so very cheap with most essential commodities available for under a Rupee.

The Rs 1,000 denomination was issued in June 1938 and demonetised on 12 Jan 1946. It is printed on white machine made paper. The only signatory for this denomination is J.B. Taylor and the note was issued from 6 circles - Bombay (Prefix A3, A7), Calcutta (A0, A6), Cawnpore (A1), Lahore (A2), Karachi (A4) and Madras (A5).

The note bears a cancelled stamp on Reverse dated 5 July 1945. I am sure that note of this high value denomination was never meant for retail use and was reserved for government, trade or business purposes.
« Last Edit: December 29, 2015, 11:27:29 AM by Niels »
In the quest for Excellence, there's no finish line.

Offline Figleaf

  • Administrator
  • Honorary Member
  • *****
  • Posts: 29 879
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #1 on: May 14, 2013, 01:40:39 PM »
In economic theory, this is called price illusion. It is very common in humans ;) If wages double and prices double, people complain that everything has become more expensive. They don't consider their wage and look only at price.

In fact, India had and has inflation on purpose, by keeping the rupee undervalued. This made Indian goods look cheap in other currencies, supporting exports. However, it made imported good look expensive to Indians, setting in a catch-up motion, where dealers in competing Indian goods (e.g. detergent) felt free to increase the price, because the price of imported detergents had increased. As wages rose to meet higher prices (otherwise known a inflation), the cycle was complete. Wars and economic stagnation added on unintended inflation and foreign investment added to the wage level.

You see the end result on this forum: older people show scarce coins they bought at incredible prices and younger people complain about how coins have become so expensive. They hardly ever look at their income when they say that, though. The truth is that a rupee in 2013 is not the same thing as a rupee in 1947.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #2 on: May 14, 2013, 01:55:40 PM »
Bang on Peter. Whenever I read about the incredible low prices at which scarce/rare coins were acquired by senior members in this forum and compare it with my price, I want to weep and wonder if I am crazy or a fool or a combination of both (my wife can certainly add more epithets that can put the number of Mughal mints to shame!). Prices have to keep up with inflation and as wages rise with multiple earners within the same household, demand and supply will push up prices as disposable income also rises. I may desire a stock at a certain price but ultimately I will have to pay the prevailing market price. Likewise for coins where published catalogues and auction realization provides a guide to the current market that determines the prevailing price.
In the quest for Excellence, there's no finish line.

Offline nomadbird

  • Meritorious Member
  • ****
  • Posts: 524
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #3 on: May 14, 2013, 02:05:00 PM »
lovely note... never seen one .... But for every demonetized note ,they would put a cancel mark ?
Thx
Nomadbird

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #4 on: May 14, 2013, 02:10:19 PM »
Well this note was cancelled approx 6 months before the demonetization so I am guessing it would have been presented to the bank to redeem for lower value bills or as settlement against an outstanding bank loan. It may also be that word may have spread about the impending demonetization and people may have started surrendering the notes in advance of the deadline.
In the quest for Excellence, there's no finish line.

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #5 on: May 14, 2013, 02:52:27 PM »
India attempted partial demonetization by promulgating on Jan 12, 1946 the High Denomination Banknote (Demonetization) Ordinance. The holders of currency notes of Rs 500, Rs 1,000 and Rs 10,000 denomination were asked to get their notes encashed at Reserve Bank of India, scheduled banks or at Govt Treasury within 15 days by giving a declaration on a prescribed form. On presentation of the high denomination note to the bank together with the declaration form, if everything was ascertained to be in order, then the equivalent face value was paid by credit to the bank account of the presenter (if he held a bank account) or in cash in lower denomination bills on presenting a valid ID. The receiving bank officer would then hold such high denomination bill separately, mark them as Cancelled with a seal and record the note denomination and serial number in a return that was forwarded to the RBI office for tallying against the circulation statistics.  In 1946, out of a stock of Rs 144 crore of these high denomination notes in circulation, only a sum of Rs 9 crore was not presented for conversion.

Demonetization as a measure of currency reform was done primary to unearth black money. The money not presented for encashment was on account of fear of government fines or penalties for unaccounted wealth.
« Last Edit: May 14, 2013, 03:16:21 PM by mitresh »
In the quest for Excellence, there's no finish line.

Offline Manzikert

  • Honorary Member
  • *****
  • Posts: 1 372
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #6 on: May 14, 2013, 05:19:48 PM »
Is the stamp on the back really a cancellation mark? Presumably if the note had been presented under the withdrawal scheme it would have been sent to the RBI for destruction? Perhaps it is part of the 9 crore that were not redeemed?

Alan

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #7 on: May 14, 2013, 05:27:35 PM »
This is a paradox. If the note was not redeemed then it would not bear the cancellation stamp, and if it was redeemed, then the note would bear the cancellation stamp and would be sent to the RBI for destruction. It seems either the note after cancellation was returned to the presenter as it could not be re-used (but this seems remote) or else not all cancelled notes were destroyed but few survived in archives that somehow made its way to the numismatic market.
In the quest for Excellence, there's no finish line.

Offline Harry

  • Moderator
  • Meritorious Member
  • *****
  • Posts: 884
  • Collect British India, Straits coins & papermoney.
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #8 on: May 16, 2013, 06:57:30 PM »
Mitresh,

Thanks again for your excellent write up and sharing this note with us. The information you provide is very valuable and I learn a lot from it. So please do keep posting as many of us enjoy reading your posts.

...  In 1946, out of a stock of Rs 144 crore of these high denomination notes in circulation, only a sum of Rs 9 crore was not presented for conversion.

Demonetization as a measure of currency reform was done primary to unearth black money. The money not presented for encashment was on account of fear of government fines or penalties for unaccounted wealth.

I thought the demonetization of high denomination notes (Rs. 1000 and higher)  to remove some of the black money circulating was a relatively new scheme that was introduced in the 1970s or 80s and not in 40s or 50s.  Yes the British India notes were desensitized, but not due to the black market.    However, post independence the Rs1000,5000 and 10,000 were used in the black economy and hence  recalled in the 70s.  This is my assumption, I could be wrong.   Today the Rs 5000 and 10,000 Independent India note is very scarce in any condition, more scarcer than the KGVI Rs 1000.   

Here is my non-cancelled KGVI  Rs. 1000, a key note in my collection.




You see the end result on this forum: older people show scarce coins they bought at incredible prices and younger people complain about how coins have become so expensive. They hardly ever look at their income when they say that, though. The truth is that a rupee in 2013 is not the same thing as a rupee in 1947.

Peter, I agree with much of the points you make about inflation in India. However, I don’t think that the high prices for India coins and notes are due to inflation, yes maybe a small factor, but the bulk of it is due to the fact that demand has shot up as many Indians (living in and outside of India) have become wealthy enough to buy, or should I say spend, on their hobbies.
Collector of British India, Straits Settlements, Malaya, East Africa coins and papermoney

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #9 on: May 16, 2013, 08:27:32 PM »
WOW!! A brilliant specimen, Harry. Great note in superb condition.
In the quest for Excellence, there's no finish line.

Offline malj1

  • Moderator
  • Honorary Member
  • *****
  • Posts: 7 091
  • "illegitimi non carborundum"
    • Mals Machine Tokens
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #10 on: May 16, 2013, 11:15:53 PM »
T too doubt the cancellation stamp, I would expect to see a prominent cancellation stamp on the front - even two as I have seen with other notes elsewhere. A search for the meaning of the stamp shown could be beneficial to confirm or otherwise.



Can you explain further the expression 'Rs 9 crore' - how much is this?
Malcolm
Have a look at  my tokens and my banknotes.

Offline Harry

  • Moderator
  • Meritorious Member
  • *****
  • Posts: 884
  • Collect British India, Straits coins & papermoney.
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #11 on: May 17, 2013, 12:43:44 AM »


A crore is a unit that is 10 million so 9 crore is 90 million.
Collector of British India, Straits Settlements, Malaya, East Africa coins and papermoney

Offline Sicador

  • Senior Member
  • ***
  • Posts: 169
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #12 on: February 27, 2014, 11:41:04 PM »
Acquired this one recently, Lahore is very rare, I never came across any circle other than Calcutta and Bombay for 1000 rupee GVI, grade is not that great (f to vf), but little better grade sold for $8100 USD in 2010 (spink auction, including buyers premium). Other than that there are no sale records of any circle other than Bombay and Calcutta as per my knowledge.
« Last Edit: March 16, 2014, 04:19:17 AM by Sicador »

Offline mitresh

  • Moderator
  • Honorary Member
  • *****
  • Posts: 2 834
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #13 on: March 01, 2014, 09:08:04 AM »
Congrats! This is indeed a rare circle and in relatively good condition too.
In the quest for Excellence, there's no finish line.

Offline Sicador

  • Senior Member
  • ***
  • Posts: 169
Re: A Gorgeous Rs 1,000 note of George VI
« Reply #14 on: March 01, 2014, 11:10:08 PM »
thank you mitresh  :)