Vom Zettel zum Geldschein: Deutsche Einflüsse auf das Design und den Druck von Banknoten im Großfürstentum Finnland

[From piece of paper to banknote: German influence on the design and printing of the banknotes of the GrandDuchy of Finland]

The banknotes of the Grand Duchy of Finland, which was established in 1809, have been used as a startingpoint in the description of the development of banknotes from a piece of paper to a trusted means ofpayment. In the 18th and early 19th centuries, banknotes were commonly issued to finance wars or for someother reason related to state finances. They often lost most of their value in the course of time due toinflation. Numerous counterfeiting incidents heightened mistrust in them. Even though there were alsopositive experiences with banknote issuance, it was not surprising that banknotes and paper money wereoften viewed with disgust and treated with contempt and suspicion. They were seen as an inadequatesubstitute for coins.

During the 19th century, however, paper money was increasingly required to meet the needs of growingindustrialisation and the liberalisation of trade. Banknotes were needed, in particular, for the larger paymentsrequired by commerce and industry. The authorities therefore took a number of steps to foster trust inbanknotes. Three measures were of particular importance in this respect: the creation of a central bankmonopoly over issuance, metal backing of issuance, first by silver and then by gold, and the development ofthe design and security of banknotes against new counterfeiting methods.

Starting from Johannes Gutenberg, the German role in the development of printing is well known. Hisinnovation gained a foothold everywhere. What is less documented, however, is the German role in thedesign, engraving and printing of banknotes outside of Germany during their above-mentioned developmentphase. Even though the Grand Duchy of Finland was part of the Russian Empire, Germans had a role in everyseries of Finnish banknotes during the Russian period. This applied even to banknotes printed in St.Petersburg, as all of the parties contracted by the Bank of Finland in the printing process were of Germanorigin.

During the first part of the 19th century, there was no significant banknote printing industry in Germany, andordinary print shops and paper mills were mostly responsible for banknote production. However, as Germanyevolved into a leading industrial power during the latter part of the century, the need for finance grew tounprecedented levels. Shares and bonds as well as issuance of non-interest-bearing debt instruments,banknotes, were used to meet financial requirements. This led to considerable investments in the securityprinting industry.

As a result of the liberalisation of trade, economic links developed, and German companies found customersabroad. Due to longstanding cultural relations, Finland was a fertile hunting ground in this respect. Printerseducated in Germany were also encouraged to practice their profession abroad. A further important route bywhich Germans became involved with banknote production abroad was the role of journeyman. It wascommon for workers who had successfully completed an official apprenticeship qualification in a craft to gain experience abroad as part of their training. It was not exceptional that after this training the journeymenfound a permanent position abroad.

These three channels of German influence on banknote design and printing were significant in the banknotehistory of the Grand Duchy of Finland in the 19th and early 20th centuries. Development in Finland was almostentirely based on foreign contributions, and the global nature of the industry and labour mobility wereimpressive.

It was only towards the end of the 19th century that the Bank of Finland established its own printing works,still using foreign, mostly German, designers, engravers and printers, however. Other countries also developedsimilarly. The book sheds light on this German role, which is sparingly addressed in the German-languageliterature.

The orientation of the Grand Duchy of Finland is also reflected in the themes and symbols of the banknotes,which grew in significance as nation-state thinking evolved. This became apparent in the growing role of theFinnish coat of arms at the expense of the Russian double-headed eagle, and in politically motivated symbols.A corresponding phenomenon appeared on German banknotes.

The significance of banknote design to the national identity has increased considerably in politico-sociologicalresearch over the last couple of decades. The general conclusion has been that the themes represent theagenda of the political decision-makers, with which they legitimise their actions. Several examples of the useof the same themes and design elements across borders, however, also highlight the role of designers andprinting works in this respect.

After the independence of Finland in 1917, the Bank's own printing works took full responsibility for Finnishbanknotes. This model was practised until the early phase of euro banknote production, at which time theBank of Finland turned once again to Western European know-how, and banknote printing interestinglyturned full circle. The Bank began to use many of the same printing works as during the second half of the 19thcentury and the early 20th century, even though most of the companies had in the meantime acquired newnames due to political changes or for commercial reasons.

The book is written by Antti Heinonen and published by the Bank of Finland and Giesecke+Devrient StiftungGeldscheinsammlung on their respective websites. The author has had a long international career in the fieldof banknotes, having chaired, for example, the Banknote Ethics Initiative (BnEI) and the Executive Committeeof the Central Bank Counterfeit Deterrence Group (CBCDG) and being the first Director, Banknotes at theEuropean Central Bank (ECB). Prior to joining the ECB in 1998, Heinonen was the Chief Cashier of the Bank ofFinland.

To read the complete article, see:
https://www.suomenpankki.fi/globalassets/bof/fi/julkaisut/muut_julkaisut/vom-zettel-zum-geldschein-english-summary.pdf

To read the complete book, see:
https://www.suomenpankki.fi/globalassets/bof/fi/julkaisut/muut_julkaisut/bank-von-finnland-vom-zettel-zum-geldschein-compressed.pdf