The Mount Damavand Collection of Persian Banknotes

3 October 2024

Starting at 1:00 PM

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The Mount Damavand Collection of Persian Banknotes

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The Mount Damavand Collection of Persian Banknotes

Foreword

The Mount Damavand Collection is among the finest collections of Persian banknotes ever to come to market. The collection is named for the immense dormant volcano located in northern Iran; Damavand is the highest peak in the country, and features prominently in Iranian folklore and Persian mythology, as well as being of great spiritual significance to Zoroastrians. The mountain appears for the first time on the first and second issues of the 500 Iranian Rials in the early 1930s, proofs and specimens of which can be found in this collection.

The collection is formed mainly of notes from the first and second issues of the Imperial Bank of Persia. The designs of these notes are nothing short of iconic - a term that is often overused, but is in this case entirely appropriate. Printed by Bradbury, Wilkinson & Co. or Waterlow & Sons, the notes represent a pinnacle of banknote design and engravers’ art, and are instantly recognisable to any collector of world banknotes.

The issued notes of the Imperial Bank of Persia are a collector’s dream come true: in addition to their beauty, they are available enough to make a collection achievable, but rare enough to make it challenging. In addition, the notes were issued in around 30 different locations, with huge additional varieties in signatures, serial number styles, and dates.

The Mount Damavand Collection also contains a significant number of colour trials, specimens and proofs, for the Imperial Bank as well as the first and second issues of the Bank Melli Iran. These items are generally very beautiful and, in some cases, exceptionally rare or unique. They also give us crucial information about how the bank worked, and how the note issues were printed and organised.

We very much hope you enjoy this wonderful catalogue and, as ever, it only remains for us to wish all of you the best of luck with your bids.

The Noonans Team,
Andrew, Thomasina, Mike and Barnaby



A Short History of the Imperial Bank of Persia

The Imperial Bank of Persia was technically a London bank, and was run largely from the United Kingdom. Its founder was personally granted exclusive rights to issue notes in Persia in 1873, for a fixed period of 60 years. When he subsequently founded the Imperial Bank of Persia in 1889, this previous banking concession meant that, despite being a private bank, the Imperial Bank of Persia became the de facto central bank and bank of issue. The first issue of banknotes followed in 1890 and a second issue of notes replaced the first in 1923. These notes were used for a further decade until the 60-year concession ran out, and the bank was forced to cease its banknote operations entirely.

The bank was generally unpopular and was widely distrusted. It employed no local people as managers, and was generally reluctant to lend money to them. This distrust resulted in several serious ‘runs on the bank’, particularly in the early years of issuance. The management attempted to combat this in a number of ways, most notably by overprinting or stamping the notes with the issue location, and by refusing to accept those notes at full value in any other location.

The bank was eventually forced to evolve, and in 1952 it abandoned most of its operations in Iran, subsequently being renamed The British Bank of the Middle East. In 1959 it was acquired by HSBC, and operates to this day as a subsidiary under the name HSBC Middle East Bank.

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