The Imperial Bank of Persia, created with the help of two remarkable men, Naser al-Din Shah Qajar and Baron Paul Julius von Reuter, presents a tremendous story for curious numismatic collectors to explore. Before the establishment of the Imperial Bank in 1890, Persia's circulating currency consisted only of gold and silver coins. These two men, the Shah and the Baron, helped create an avenue for the development of paper currency and a banking system monopoly that lasted until 1928.

Visionary leader, Naser al-Din Shah Qajar came to power September 5, 1848. Accomplishments during his reign included balancing the country's budget by reforming the tax system, building military factories, opening the first newspaper, and improving relations with world powers to mitigate the British and Russian influence. The Shah became the first ruler of Persia to visit Europe in 1873 and to observe more modern business practices. In an effort for more modernization, Naser al-Din granted unprecedented (and unpopular) concessions to foreigners. This openness to foreign contribution toward the modernization of Persia enabled the creation of the Imperial Bank.

The foreigner in this instance was Baron Paul Julius von Reuter. Born Israel Beer Josaphat, he changed his name in 1844 when converting from Judaism to Christianity and was created a baron by the Duke of Saxe-Coburg-Gotha in 1871. The early years of Baron de Reuter's company were telegraph and news related. He began in Aachen in the Kingdom of Prussia during the 1850s and moved the company to London in 1851. Reuter's telegraph and news services continued to grow, and in 1865, Reuter restructured his company to become Reuter's Telegram Company.

Baron de Reuter initially began negotiations with the Shah to build a railroad. Reuter's first concession agreement was signed in 1872. The concession granted him control over Persian roads, telegraphs, mills, factories, extraction of resources, and other public works. In return, the Persian government received a negotiated amount and 60% of the net revenue for 20 years. The clergy in Persia were outraged by this concession and waged a public relations war, informing the public that Reuter was the devil and would destroy their country. The agreement was alarming to both the Russian and the British governments. So troubling, in fact, that the British government refused to support it. Intense public outcry and Reuter's failure to start building his railroad within fifteen months allowed Naser al-Din the opportunity to cancel the first concession in 1873.

Reuters second concession came some years after of the cancellation of the first agreement. The second concession agreement wasn't until 1889, but gave Reuter exclusive banking and mineral rights for sixty years. From its inception in 1890, the Imperial Bank was the state bank and had the sole power to issue notes. As part of the concession, the Imperial Bank was granted tax-free status for sixty years. The Imperial Bank used Naser al-Din's portrait on many of the notes that were issued.

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The Imperial Bank of Persia(https://currency.ha.com/heritage-auctions-newsletter/currency-news-the-imperial-bank-of-persia.s)