The text shown below is taken, with permission, from an article titled “Unofficial Paper Money in the Ottoman Period” published on the website of the İzmir Numismatic Association. Portions related specifically to numismatics have been removed for this publication.
From the very moment paper money entered circulation, it brought along a series of problems. First and foremost, due to the printing techniques of the time, these notes were easily counterfeited, which became the most significant source of difficulty. The earliest issue of kaime banknotes were handwritten, making them extremely easy to imitate; therefore, the state first transitioned to printed notes, and later to fully typeset kaimes. Yet despite the precautions taken against counterfeiters, forgery continued to undermine the credibility of paper money with every new emission.
Since paper notes circulated simultaneously with metal coins, the state failed to maintain their value against the gold lira, and the gap between them widened continuously. At times this difference reached as much as fivefold, fueling speculative gains pursued by bankers. These bankers grew in influence and eventually obtained privileges from the state — becoming one of the underlying causes of the unhealthy financial structure that characterized the late Ottoman economy.
Naturally, the group that felt the burden of these poorly executed monetary policies most acutely was the general public. The disruption of payment balances, the inability to pay civil servant salaries, rising living costs, and inflation were experienced across all layers of society, down to the very lowest levels.
Another flawed financial practice was the state’s tendency to print paper money mostly in high denominations, while neglecting the small denominations needed by the public for daily transactions. The limited quantities of silver and copper coins that were minted were quickly withdrawn from circulation and hoarded as a means of savings, especially when compared to paper notes whose value was steadily eroding.
Because the state failed to act with sufficient sensitivity — or, in other words, failed to produce a valid and lasting solution — severe difficulties emerged, reaching a point where everyday commerce nearly came to a standstill. The remedy, however, came from those who were directly affected. Tradesmen, bakers, market vendors, and certain institutions such as places of worship and charitable associations that survived through donations were forced to develop their own solutions in order to continue functioning. They issued small‑value paper tokens (also referred to as paper jetons or money tickets) and put them into circulation.
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Stamp money was the most practical method the financial administration devised to address the shortage of small change. In 1876, the treasury conducted its first experiment by releasing certain official stamps into circulation as a solution to the scarcity of coins and the substitute “ticket money” that had been issued in their place. When the same problem resurfaced during the First World War, the treasury once again resorted to this method.(1)
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The 1876 issue of the 10‑ and 20‑para stamps and the plate showing their print quantities Collection of Mehmet Tezçakın |
Moreover, because the method proved successful, Hilal‑i Ahmer (Red Crescent) stamps were also used as money in the early years of the young Republic. Before perforation, these stamps were affixed onto thick paper and then overprinted, allowing them to circulate as small‑change substitutes.(2)
As for the stamps used as money toward the end of the First World War: on 1 January 1917, stamps with denominations of 5 and 10 para were printed, corresponding to a total value of 100,000 lira. As with all stamp‑money issues, they were mounted on cardboard backing and circulated in that form. Examples can be found with pink, yellow, or green cardboard on the reverse.
The 5‑para stamp, depicting an artillery battery and officers, was issued in a total value of 1,950,000 kuruş, amounting to 15,600,000 pieces. The 10‑para stamp, depicting Sultan Ahmed Square, was issued in a total value of 7,625,000 kuruş, amounting to 30,500,000 pieces.(3)
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The 1917 Vienna‑printed 5‑para stamp‑money Collection of Güçlü Kayral |
The 1917 Vienna‑printed 10‑para stamp‑money Collection of Uzay Togay |
The rapid deterioration of the first stamp‑money issues caused them to fall out of use quickly, creating a renewed need for small change. However, the government, burdened by wartime expenses, had no financial resources to allocate for producing new coinage. As a result, a previously withdrawn issue — the Hejaz Railway Donation Certificates — was adopted as a substitute. These certificates were reintroduced into circulation on 11 March 1919, mounted on cardboard backing and overprinted, thereby transforming them into stamp‑money.
The stamps bearing the overprint “10 Kıymeti on paradır” (Its value is ten para) were issued in a total value of 47,350,000 kuruş, amounting to 18,940,000 pieces.
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Stamp‑money created from the Hejaz Railway Donation Certificates, overprinted with a value of 10 para Collection of Güçlü Kayral |
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These stamps bear the inscription “This is a certificate issued for the benefit of the Hejaz Railway.” The reason they were referred to as ilmuhaber (certificate) stems from the consequences of an empire whose economy had collapsed and which had mortgaged nearly everything it possessed in order to pay its debts. To ensure repayment of foreign loans, the state had transferred several major revenue sources, including the privilege of printing postage stamps, to the Ottoman Public Debt Administration (Düyun‑u Umumiye). By calling these issues ilmuhaber, that is, by using a different term instead of “stamp,” the matter was resolved in a somewhat improvised manner. (4)
Sources:
(1) Archival documents from Mehmet Tezçakın’s private collection.
(2) Atom Damalı, Social Aid Stamps.
(3) Niyazi Asım, Report Presented to the Esteemed Ministry of Finance Regarding the Minting and Transactions of the Fiscal Year 1336.
(4) Ufuk Gülsoy, The Hejaz Railway.
