The Short-lived Panama “Arias” Issue.

 

One of the shortest-lived currency issues on record is that of Panama in 1941. Although Panama used coins denominated in “balboas”, they were the same size and value as corresponding U.S. pieces.

Back in 1903, after Columbia – who at that time owned the whole isthmus – refused to allow the U.S. to construct a canal across the narrowest section, an “independent” Republic of Panama was proclaimed with the backing of the U.S. The Panama Canal then proceeded to be built across the isthmus of this new republic, the “Canal Zone” itself directly under U.S. control.

As sort of American “client state”, the currency “balboa” of Panama was guaranteed by the U.S. at par and although coinage was in “balboas”, the usual paper money was American “greenbacks”. There were a couple of attempts made to issue paper notes in “balboas”: the first was the “Sosa Issue” of 1933 which never got out the door; the second did – for a while.

In October, 1941, a nationalist Panamanian president, Arnulfo Arias, decided to eliminate English in an officially bi-lingual Panama . U.S. currency was to be withdrawn in favour of a unilingual “balboa issue” and accordingly, denominations of 1-, 5-, 10- and 20-balboas were ordered, printed (by the Hamilton Bank Note Company of New York , nonetheless) and circulated. Unfortunately, within days, Arnulfo was overthrown in a pro-U.S. bloodless coup, the notes called in by his successor, Ricardo de la Guardia, and destroyed, the republic returning to U.S. dollars. They circulated about a week. Needless to say, they are rare today.

At this time, the ousted pro-Arias forces brought out a facsimile 1-balboa in the same colours and wording as the genuine note then being retired. It was overprinted "Facsimil del Billete, Simbolo de Soberania" ("Facsimile of the Panamanian note, Symbol of sovereignty"). Its distribution was very limited and it is even scarcer than the genuine.

Wayne Jacobs is a numismatic expert. Currently secretary and editor of the "Mid-Island Coin Club Numismatic Journal"of Nanaimo, Vancouver Island , British Columbia, he is the award winning author of numerous articles. The MICC journal are hosted here: MICC webpages Copyright 2006 Wayne Jacobs. This article may be reprinted freely for non commercial purpose only if the resource box is left intact, linking back to us.