Our Banknotes

Our first banknotes

Many of Ireland's early banks depended for their survival on the issue of banknotes. Note issue was profitable as it amounted to borrowing money free of charge to lend again at interest.

Ulster Banking Company’s first banknotes were issued in denominations of £1, 25s, 30s, 35s, £2, £3, £5, and £10. The notes, printed in black and white on one side only, had a common style and size and depicted the industrial strengths of Ulster - shipbuilding, the linen trade and agriculture. Commissioned months earlier, the notes were ready for issue on Ulster Banking Company's proposed first day of business, 1 June 1836. In the event, the bank actually opened a month later than planned, but some of the first banknotes featured the earlier date.

Ulster Banking Co opened nine branches in Ulster during 1836. By law, branches could only accept notes that they had previously issued and consequently the name of the issuing branch had to be stated on each of its banknotes. Rather than having different printing plates for each branch, Ulster Banking Co overprinted unissued notes from the Belfast office with individual branch names. From the beginning each denomination had its own serial numbers and every note was signed by the chief cashier. Careful records were kept of issued and returned notes, so that duplicated serial numbers (indicating forgery) would be spotted, and lost or damaged notes could be accounted for.

Legislation, growth and change

In 1845, a period of financial crisis throughout Britain prompted legislation to be passed in Ireland to regulate the issue of notes. This made Ulster Banking Co one of only six Irish banks authorised to issue banknotes. It was at this time that Ulster Banking Co withdrew the 25s, 30s and 35s notes, as the new law required only complete pound denominations to be issued.

As Ulster Banking Company continued to open new branches at a rapid rate the bank switched to using notes carrying the names of all the bank’s branches, rather than the issuing branch only. Initially, the branches were listed alphabetically, but as more branches were established these were added chronologically at the end of the list. Periodically new printing plates were made and the alphabetical order was restored.

In 1883 brand new banknotes were issued, when Ulster Banking Co changed its name to Ulster Bank Ltd. The new note denominations, which remained unchanged until the pound coin was introduced in 1983, were £1, £5, £10, £20, £50 and £100. The original motif portraying Ulster’s industrial strengths continued to feature.

In 1920 the Banknotes (Ireland) Act ended the practice of making notes payable only at specific branches. Instead, notes could be redeemed at the bank's head office. This allowed lists of branches to be omitted and replaced by the location of the principal offices alone. In 1920 Ulster Bank issued a new series of banknotes.

A new currency

Soon afterwards, in 1927, the Currency Act dramatically changed note issue in the Irish Free State. The Currency Commission was established to control note issue and coins. As a result Irish Pounds or Punts, linked to sterling, were introduced. From 1928, the Currency Commission issued legal tender notes that included a depiction of Lady Lavery as the Irish Cailin (girl). This image was to represent the Irish spirit on banknotes for the next 50 years.

Meanwhile, Ulster Bank and other note-issuing banks were admitted to the Currency Commission as Associated Banks and their right to issue individual bank notes was withdrawn. Instead, they were allowed to issue consolidated notes overprinted with individual bank names. The agricultural scene depicted in the design led to them becoming known as 'ploughman notes', although they were never legal tender.

Double-sided notes

In Northern Ireland, Ulster Bank continued to issue its own notes after 1929, and to use up old stock of £1 notes, initially overprinting them with 'Northern Ireland Issue'. New designs were soon made for all denominations with a new serial prefixing system - another measure to combat fraud.

From 1935 Ulster Bank started to print its banknotes on both sides for the first time. On the reverse an engraving of the head office in Waring Street was introduced as a security device. This image was later enhanced to include rays radiating from the building. Banknotes ceased to be signed by the bank's chief cashier in 1956. Instead a lithographic process that included a signature was used for the new design of the £1 and £5 notes.

For 130 years the overall design of Ulster Bank's notes had remained largely unchanged, but in 1966 the notes were fully modernised. New individual views of Ulster began to be featured, although the design still paid homage to the industries shown on the original notes. The reverse of the notes was updated to incorporate the coat-of-arms and motto of Ulster Bank, surrounded by the four heraldic arms of the provinces of Ireland. New security features were also incorporated to combat forgery.

From Central Bank of Ireland to the Euro

Meanwhile, there were further changes to the currency system in the Irish Free State, following the publication in 1938 of a report on the Currency Commission and the state of banking in the south. The main recommendations were to establish a central bank with more powers than the existing commission and to terminate the issue of consolidated notes. The Central Bank of Ireland came into being on 1 February 1943. Ulster Bank, with five of the Associated Banks, ceased dealing in consolidated notes on 1 March 1954. Gradually the other remaining banks followed and circulation ceased on 31 December 1956. Since then only the Central Bank of Ireland has had the right to issue notes in the Republic of Ireland.

For many years there had been a move in the Republic to break away from the parity link with sterling. After much debate, the Republic of Ireland joined the European Monetary System in 1978. In the late 1980s further steps were taken to create a single European Monetary Union (EMU) with countries ceasing individual currency issue. The Republic of Ireland, along with 10 other member states, had their currencies locked to the EMU by the European Central Bank in December 1998, although it was not until January 2002 that Euro notes and coins were issued as legal tender throughout the participating EU countries. The notes were issued in denominations of 5, 10, 20, 50, 100, 200 and 500 Euros. The designs, which were common throughout the Euro zone, symbolised the openness and co-operation of the European spirit.

Recent years

Ulster Bank continues to issue its own notes in Northern Ireland. In 2006 Ulster Bank issued its first ever commemorative banknote, celebrating the career of the great Northern Irish footballer George Best. The demand from fans around the globe for the new £5 note was overwhelming and the limited edition of one million was sold out in just ten days. The following year the design of Ulster Bank’s notes was refreshed to reflect the bank’s adoption of the RBS daisy wheel brand and to include new, more modern lettering.

Today Ulster Bank’s notes continue to be found in pockets, wallets and purses across Northern Ireland, their holders often quite unaware of the notes’ long and distinguished pedigree.