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Mr. B. Rajagopalachary, the
first Registrar of Madras Central Bank, Ltd., was instrumental in the
founding of The Salem District Urban Bank, Ltd. in Mysore. It was
started to help the poor by encouraging savings and was inaugurated on
6 January 1904 with 16 members and a share capital of 1,000,000
Rupees. The Salem Dist Urban Bank Ltd. was governed by the Government
Of India.
A quantity of 10,000 of the above "banknotes" were printed and issued
without charge to local patrons along with a "savings box", similar to
the Kiddy Bank and Andhra Bank models, as a way to encourage poor
people to start saving.
The 1 Rupee was issued in unique way for the purpose of helping poor
people in the district of Salem. It was not really a true currency
note, or a check or a Hundi but was a note that could be cashed in
Salem District Bank. This 1 Rupee token became so popular in
proportion to other financial instruments that within a few months of
issue it began passing on from one person to another.
The Salem District Union Bank also initiated reforms to prohibit the
use of liquor and encouraged people to save their money in the form of
the Salem "banknote." It also started an anti-leprosy drive, hiring
its own leprosy Doctor, which proved to be very successful. Because of
the power that was being amassed by the Salem District Union Bank, the
British Crown began to suppress it fearing that might be supporting
the independence movement of India.
A new building of the Salem Urban Bank Ltd. was inaugurated by the
Prince of Mysore on 11April 1932 at a site that cost 15,000 Rupees
with a construction that reportedly cost 45,000 Rupees.
For a period of time the Salem Bank exhibited an anti-British and
pro-Indian stance and as a result the deposits began rolling in. Then
under the pressure of British Government they stopped all of their
development schemes including the issue of 1 Rupee note. At this point
in its history the Bank withdrew its notes not to be issued
again.
Because of this alignment with the freedom movement the Bank suffered
in many ways. As a result, the Salem Bank then stopped the anti-liquor
drive, dismissed the doctor who was treating the leprosy patients and
discontinued the Kiddy Bank program.
It is thought that the 1 Rupee notes were destroyed by the Bank under
the pressure of British Crown. This is the only reported instance in
India where a Bank issued a banknote unilaterally for the benefit of
poor and initiated other important social programs that had a
significant impact on the people.
This phenomenon has been studied by visitors from other parts of
India, Ireland and the U.S.A.
MD
We gratefully acknowledge Indian numismatist
Musham Damo dhar
of Adarsh Stamps & Coins for
submitting these images. Please visit his website:
http://www.philanumis.com/
where you will find a wide array of numismatic, philatelic and other
unique material.
This site also includes a very interesting history of playing cards,
including the ancient Ganjifa Indian playing cards.
Musham Damodhar
also has a blog where you
can find information about his son, who is one of the youngest
accomplished stamp collectors in the world.
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INDIA
Paper Money, Salem District Urban Bank, 1904 Issues