Early Scottish banknote to go for thousands

AUCTION: 20 shilling note one of the first issued by the Royal Bank of Scotland

One of the first banknotes ever issued by the Royal Bank of Scotland 290 years ago is expected to fetch thousands of pounds at auction next week.

The 20 shilling note was part of RBS’s very first issue of paper money, printed on December 8 1727 at the bank’s then head office just off Edinburgh’s Royal Mile.

It is thought to be one of only two or three in existence and the first to become available to collectors on the open market.

The note, which features a groundbreaking portrait of King George II, has been in a private Scottish collection until now.

It will go under the hammer at Bonhams’ sale of Medals, Bonds, Banknotes and Coins in London on Wednesday.

The note is estimated to fetch between £3,000 and £5,000, but specialists say it could spark a bidding war among collectors and institutions around the world – and achieve a far greater sum – because of its historic importance.

Michael O’Grady, Bonhams’ specialist in paper money, said: “This is as rare a Scottish banknote as you can get.

“The Royal Bank of Scotland opened for business in 1727 and this was part of its first series of notes.

“There are only one or two others known in existence and this is the first time one has come on to the collectors’ market.

“There is already a lot of interest, and I think we might see bids from collectors around the world. Institutions too, such is its historical significance.”

RBS obtained its Royal Charter of Incorporation on May 31 1727 and issued its first notes dated December 8 that year.

They were the first British banknotes to include a royal portrait, depicting King George II, who had come to the throne earlier that year.

Although the portrait was a difficult and expensive feature to produce, it was an excellent anti-counterfeiting measure.

According to RBS archivists, “people are so attuned to distinguishing between faces that a misplaced line in a portrait stands out where a similar error elsewhere might go unnoticed”.

The notes were printed on a taille douce, a rolling press invented in the 1540s that forced dampened paper into inked lines engraved in copper plates heated by a furnace to keep the ink fluid.

After printing, each note was hand-signed by the bank’s accountant and cashier, and given a unique number.

Often added by hand was also the value in old Scots currency – £12 Scots on a 20 shilling note.

Picture: Saltire News. The note, which features a portrait of King George II, will go under the hammer in London next week.