PREVIEW: WORLD BANKNOTES: 29 FEBRUARY

Founded in 1842 as an Exchange bank, the Oriental Bank Corporation (OBC) built a formidable reputation over the following four decades as it expanded across the Far East, extending as far as Australia, New Zealand and even San Francisco.

Established under British rule, it became pre-eminent among banks in India and China within 20 years, having merged with the failing Bank of Ceylon in1851 and obtained a Royal Charter in order to compete with the East India Company.

It also became the first bank in Hong Kong, as well as the first to issue banknotes there, but its dominance was to prove short lived after it over-extended its loans to coffee plantations in Ceylon and sugar plantations in Mauritius. When these went bad, the bank risked failing and had to suspend payments in 1884, and was liquidated in a Chancery ruling, failing a second time in 1892.

By this time, however, it had claimed its place in history as an institution that had played an instrumental role in the shaping of economic development of trading hubs in India, the Far East and the Pacific region.

This auction presents two OBC issues from its final years. The first is a Ceylon 10 Rupees, issued out of Kandy, dated 1 January 1881, and with the serial number K133057. With two manuscript signatures and printed on superb original paper, with annotation on the reverse, this extremely rare note, especially in issued format, is estimated at £7,000-9,000.

The second OBC note is a printer’s archival specimen 5 Rupees issued in Galle, Ceylon, dated 1 December 1883, and with the serial number range G060001 to G080000. Perforated SPECIMEN B.W.&Co. LONDON, this very rare uncirculated note has a guide of £4,000-5,000.

A further highlight is a Government of Ceylon, 100 Rupees, dated 1 June 1926, with the serial number D/4 62608, and Fletcher and Woods signatures. Very rare in any condition – this being the only such note graded by PMG – the estimate is £4,000-6,000.