Saysay ng Salapi: Philippine Coins and Banknotes Throughout the Years

by Riel A. A. Diala
March 23, 2020

Part II: The Spanish Colonial Period

During the Spanish colonial period in the Philippines, the colonizers introduced a myriad of gold and silver coins that made their way to the colony through the Galleon Trade. It was also under the Captaincy General of the Philippines when the first banknotes and coins most reminiscent of today’s currency were manufactured in the archipelago. Although bearing witness to numerous developments in Philippine currency, the Spanish colonial period was plagued by the impractical variety of coins and banknotes caused by changes mandated by the Spanish monarchy and the colonial government, as well as historical events in both Spain and the Philippines.

The Silver Tostones

The appearance of silver coins in Philippine numismatic history began with the Toston, which was brought by Ferdinand Magellan in the 1521 expedition to the present-day Philippines (Suarez et al., 2018). The toston, which was worth 4 reales or half a Spanish dollar (8 reales), did enter circulation during the Spanish colonial period; at one point, according to Bishop Domingo de Salazar (the first Bishop of the then Diocese of Manila), 4 reales could afford about three pints of rice, eight to sixteen fowls, and “a fat pig” which cost four to six reales (Barrows, 1905).  

The Galleon Trade

When the Philippines became a colony of Spain, plans were for the colony to establish its own mint. However, such a proposal did not materialize (not until the later years of the Spanish colonial period, at least), and the Philippines had to adopt the reales, which was already in circulation in the Spanish colonies in the Americas. The highest face value for a silver coin was 8 reales (hence, pieces of 8) which was equivalent to one silver peso, meaning “weight” in Spanish.  

The silver coins were transported to the Philippines through the Galleon Trade which occurred from 1565 to 1815 – approximately 250 years of sailing ships traversing the longest trade route of its time, connecting the Philippines with the colonies of Spain in the Americas. The silver utilized to mint the coins were extracted from the mines of Mexico, Peru, and Bolivia. Such pieces were subsequently brought to the East Indies via the galleons to fund the government and satisfy China’s demand for silver in the 16th and 17th centuries (von Glahn, 1996). They, in turn, would exchange the silver coins with goods that were popular with the Europeans such as tea, porcelain and silk. 

The earliest silver coins brought to the Philippines through the Galleon trade are the Macuquinas or cobs, also known locally as hilis-kalamay or hilis-kamay. These coins were made from silver ingots divided into portions of the same, proper weight, from which they were hammer-stamped manually with a cross on one side, and the Spanish royal coat-of-arms in the other, hence the term “hilis-kamay” or “cut or shaped by hand” (Suarez et al., 2018). The coin was impractical for everyday use, however, since it was worth much more than everyday expenses. Therefore, people resorted to slicing the coins into smaller portions like glutinous rice cakes (kalamay), thus the name “hilis-kalamay” (Ocampo, 2020). 

With the irregular shape of the macuquinas, users did not mind subjecting the pieces to “coin clipping”, where edges of the coin were clipped off to be melted into bullion. The coins were “debased”, as the intrinsic value of the coins had diminished and the amount of precious metal in the individual pieces had decreased. The problem was further aggravated by a decree issued by Governor-General Gaspar de la Torre in 1764, allowing coins regardless of shape or size as legal tender as long as the face value was still visible (Apuhin & Bersales, 2014). As a result of such factors, the sizes of the cobs tremendously reduced over time. 

The silver coins that followed were the Pillar Coinage or Pillar Dollars, also known as the Columnarios or Dos Mundos coins. The obverse bears the Spanish Coat-of-Arms, the denomination, the initials of the engraver, the name of the king, and the legend “D.G. HISPAN ET IND REX”, which meant “By the Grace of God, King of Spain and the Indies” (Luspo, n.d.). The reverse, on the other hand, features the minting year, as well as the royal crown above two globes, signifying the rule of Spain over both the old world (Asia, Africa, and Europe), and the new world (the Americas), hence the term “Dos Mundos”. The globes are flanked by two crowned columns or pillars, thus, the names “pillar coinage” and “columnarios”. They signify the “Pillars of Hercules” which symbolized the two promontories that flanked the Strait of Gibraltar (Brouwers, 2017) and are recurring elements for other Spanish colonial coinage. The pillars are entwined with two ribbons featuring the words “PLUS ULTRA” or “further beyond”, the national motto of Spain. “ULTRAQUE UNUM”, which can be read on the obverse, means “Both as One”, once again alluding to the rule of Spain over the two worlds. Such coins appeared with the face values of 8 Reals, 4 Reals, 2 Reals, 1 Real, and ½ Real. 

The Dos Mundos coins, minted from 1732 to 1772, were the first machine-struck coinage to originate from the Spanish Americas. Featuring milled edges and more intricate, well-executed designs compared to the macuquinas, counterfeits and coin clipping became less common. Forgeries would have been more obvious, and changes due to coin clipping would be more noticeable. They were eventually replaced, however, by the Silver Portrait coinage, minted from 1772 to 1825, and the Gold Portrait Coinage (also referred to as doubloons) which were minted from 1728 to 1824. While the silver coinage bore the denomination of reales, the gold coins were the escudos, with one escudo being equivalent to 16 reales. The silver portrait coinage was also another case of debasement, as the coins contained less silver than the Dos Mundos. The pieces featured the busts of kings Carlos III (whose reign was from 1759 to 1788), Carlos IV (1788 to 1808), and Fernando VII (1808 to 1833). 

The Dos Mundos coins, minted from 1732 to 1772, were the first machine-struck coinage to originate from the Spanish Americas. Featuring milled edges and more intricate, well-executed designs compared to the macuquinas, counterfeits and coin clipping became less common. Forgeries would have been more obvious, and changes due to coin clipping would be more noticeable. They were eventually replaced, however, by the Silver Portrait coinage, minted from 1772 to 1825, and the Gold Portrait Coinage (also referred to as doubloons) which were minted from 1728 to 1824. While the silver coinage bore the denomination of reales, the gold coins were the escudos, with one escudo being equivalent to 16 reales. The silver portrait coinage was also another case of debasement, as the coins contained less silver than the Dos Mundos. The pieces featured the busts of kings Carlos III (whose reign was from 1759 to 1788), Carlos IV (1788 to 1808), and Fernando VII (1808 to 1833). 

When Carlos IV ascended the throne after the death of Carlos III, problems arose for the manufacturing and distribution of dies for the colonial mints. Thus, the coins continued to feature the portrait of Carlos III, albeit the names on the coins were of Carlos IV. The mint of Potosi in Bolivia eventually switched to the portrait of Carlos IV in 1791 (University of Notre Dame, n.d.). 

Counterstamped Coinage

The coins became subject to chop marks, appearing as small indentations of various symbols and Chinese characters on the faces of the coins. These were applied to the coin with hammers and die punches by Chinese merchants to validate the coin’s authenticity, as well as its weight and silver content. The act of applying chop marks is an example of the now-obsolete practice of counterstamping or countermarking coins, where a design from an engraved die is applied to a pre-minted coin.

Counterstamped coins were not just the work of Chinese merchants. In fact, the Spanish colonial government had to do so as well for the coins coming from the American colonies. Although the main purpose of countermarks was to authorize a coin as legal tender, the government had another devious reason. In the 1800s, the ideologies of independence started to develop in the Americas, where revolutionary movements pushed for the liberty of Mexico, Peru, Bolivia, and the other western colonies. Along with the revolutions in the west came the minting of coins bearing relevant symbols that replaced the royal portraits and the Spanish coat-of-arms. These symbols which promoted insurgency, justice and freedom from the colonial forces were feared by the government, for they may disseminate such ideas once the coins fall into the hands of the Filipinos. Counterstamping essentially became a form of censorship for Spain to assert their sovereignty and maintain control over the Philippines.’(Paul I. de Jesus in BSP, 2021).

Initially, coins were subjected to the process of overstriking, where the pieces would be subjected to heat, and hammering to obliterate the former design. The coins were basically converted into roughly blank planchets onto which designs approved by the Governor-General and members of the government may be transferred with the use of dies and heavy machinery. Eventually, due to mechanical failure, overstrikes were discontinued and smaller dies were utilized to counterstamp coins (de Jesus in BSP, 2021). The counterstamps, which no longer completely obliterated the old coin designs, featured the Spanish crown and the initials of the reigning monarch. 

Eventually, Governor-General Pedro Antonio Salazar declared the suppression of counterstamping in 1837, and the last recorded approval for counterstamping occurred in 1839. The coins, however, did remain as legal tender until the first release of the American colonial series of coins in 1903 (de Jesus in BSP, 2021).    

Fractional Coinage

A copper 1 maravedi coin minted in 1842, featuring the bust of Isabella II of Spain. Photo by Heritage Auctions as referenced in Numista.

Such as with the macuquinas, the large denomination of the coins were impractical for use especially for everyday purchases. To solve the problem, copper maravedi coins were minted in Spain for use in the colonies. However, circulating fractional currencies in the Philippines were still scarce, and thus the Cabildo, or the municipal council, had to authorize the production of the barrilla (Ocampo, 2021). The term barilla owes its name from the barretas – copper bars from which portions would be cut and struck into coins (Ocampo, 2020). The barrillas, in fact, were struck in copper, bronze, and lead at the shipyards of Cavite. The coins varied in appearance; other than the different metals from which the coins were struck in, the pieces also featured various designs and inscriptions. It was the first to reference Manila in its design, with the name of the city or its seal (a three-towered castle over a merlion) featured on some of the coins (Pinoy Kollektor, 2015).  Other specimens feature the word “barrilla” (sometimes misspelled as “barilla”) or the monogram, “AB”. Although highly prized today considering its rarity, it was of little value during its time, it’s worth only being 1/12th of a real (Pinoy Kollektor, 2015). It also saw limited circulation, where it was only legal tender in Manila and the surrounding towns including Tondo and Cavite (Ocampo, 2021). 

Eventually, the cuartillos, possessing a value of one-fourth a real, were minted in the American colonies and entered circulation in the Philippines. This coin was favored by Carlos III since the design featured the lion, compared to the barrilla coins which was minted beforehand. Copper coins such as the quarto (¼ real) and octavo (⅛ real) were also minted by Chinese contractors to satisfy the demand for fractional currency (Suarez et al., 2018). The manufacturing of such coins were quite haphazard, however, that the designs of some pieces were not as pronounced, and some coins were subject to errors such as inverted characters and missing dates (Papercoinage, n.d.).

Sulu Sultanate Coins

Tin coin minted during the rule of Muhammad Sharaf al-Din of the Sultanate of Sulu. Photo by Stephen Album Rare Coins as referenced in NumisBids.

The Sultanate of Sulu, considered to be the first sultanate and supra-barangay state in the archipelago (Abinales & Amoroso, 2005) also minted its own coins. The coins, casted in tin, copper, and alloy, featured the name of the Sultan, and the year the coin was minted. Created as early as the 15th century, the coins were used in transactions between the Sultanate and other traders, including the Chinese, Arabs, and other Southeast Asians, though the coin still saw limited use as the communities still relied heavily on bartering (Suarez et al., 2018). 

The First Philippine Banknotes

The first Philippine banknotes, referred to as Pesos fuertes or strong pesos, were issued by the El Banco Español Filipino de Isabel II or The Spanish-Philippine Bank of Isabel II, the present-day Bank of the Philippine Islands. Although the year “1852” appears on the banknotes, they were actually first printed three years later in 1855 (Apuhin & Bersales, 2014). The notes were printed in denominations of 10, 25, 50, and 200 pesos fuertes, and featured the portrait of Queen Isabella II. As security features, they featured counterfoils – detachable stubs on both sides of the sheet – which may be compared by the bank to the note itself to verify its legitimacy.  

1877 Billete del Tesoro with the face value of un (1) peso fuerte. Photo by the Bank Note Museum as referenced in Numista.

In 1877, the Spanish treasury also issued treasury notes or billetes del tesoro with the face values of 1, 4, 10, and 25 pesos fuertes. 

After the abdication of Isabella II in 1870, the bank was renamed as the El Banco Español Filipino. Her portraits on the banknotes were replaced with the logo of the bank, the precursor to BPI’s modern-day logo. The bills themselves were uniface until 1896, when Barclay & Fry in London printed intricate designs on both sides of the banknote as another security approach against counterfeits.

The Isabelinas, Alfonsos, and Alfonsinos

In 1861, the Real Casa de la Moneda y Timbre de Manila or the Manila Mint was established by the virtue of a royal decree issued by Queen Isabella II. It was in the same year when the first coins were minted bearing the name, “Filipinas” (Abueg, 2017). 

The first coins minted at the Casa Moneda were gold and silver coins featuring the profile of Isabella II, who reigned as the Queen of Spain from 1833 until her exile in 1868 and her abdication in 1870. Referred to as the Isabelinas, they were minted with the face values of 1, 2, and 4 pesos for the gold pieces, and 10, 20, and 50 centimos de peso for the fractional silver coins. The reverse, as with the other Casa Moneda coins, featured the face value and the Spanish coat-of-arms.

Although not proven, the Isabelinas may have been the origin for “pera”, the Tagalog translation for “money”. According to historian Ambeth Ocampo (2011), “pera” may have two potential origins: the first being the Malaysian word for silver which was “perak”. The second theory, on the other hand, roots from a derogatory term attributed to Isabella II who was already receiving negative attention by the time the coins were issued.  As per the anecdotes of National Artist for Literature Alejandro Roces, those who questioned the legitimacy of Queen Isabella II’s reign in favor of her uncle Carlos referred to her as “la perra” or “the bitch”, the term later being attached to the coins as well (Ocampo, 2011).  

The Isabellinas were succeeded in production by the Alfonsos, whose obverse displays the profile of Alfonso XII whose short reign as King of Spain lasted from 1874 to his death in 1885. In contrast to the coins featuring his mother, he only appeared on the gold 4 pesos, other than the fractional centimos de peso coins. The initials of the engraver, Gregorio Sellan, appear below the neck of Alfonso XII.

The last coin minted during the Spanish Colonial period of the Philippines is the one-peso Alfonsino which was manufactured in Madrid. On the obverse is the profile of the young (and later, controversial) Alfonso XIII, who reigned as King of Spain from 1886 until his own exile in 1931. Below the bust are the initials of the engraver Bartolome Maura Montaner. On the reverse are the Spanish coat-of-arms, the face value, and a series of initials: “S.G.” which refers to the assayers Arturo Sandoval and Antonio Garcia Gonzales, and “V” which is for Remigio Vega, the weight-master (Papercoinage, n.d.). 

By the time the Alfonsinos were minted in 1897, the Philippine insurrection against Spain had already begun a year earlier in 1896 – after approximately 331 years of Spanish colonial rule. Following the revolution was the declaration of independence in 1898 and the establishment of the short-lived República Filipina in 1899. The first Philippine Republic also manufactured its own currency and introduced new designs for its coins and banknotes, ushering a new chapter in Philippine numismatic history.

Sources:

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