Emergency money
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Emergency money is the name given to the money of low value, generally considered change money, when made in paper, in contrast to the name “note”, which is reserved for the same paper money, but of higher values. Certain authors call values under 1$00 emergency money. Others say that it is the paper money issued by the Mint House and even town councils and private individuals, while it is the Bank of Portugal that issues notes.
In technical financial terms, emergency money is distinguished from the note by the fact that emergency money can be converted into poor metals and the note into silver or gold. |
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Change money is high in circulation, so when it is made out of paper, it deteriorates quickly. This is why it is only used exceptionally when, for some reason, there is no metal available. This is one of the main reasons for calling it emergency money.
In Portugal, there were two main periods in which emergency money was issued, both of which were very different. The first was during the financial crisis of 1891, the second at the end of the First World War, between 1917 and 1922, a period in which there was high inflation which meant metal money was valued and disappeared out of circulation because people hoarded it.
