NUMISMATICS: The "new" hryvnia banknotes - not a first for Ukraine (01/31/93)

NUMISMATICS: The "new" hryvnia banknotes - not a first for Ukraine

by Borys Zayachkivsky

Ukraine takes a decisive step to full independence with the introduction of new banknotes this year. These banknotes will be issued in hryvnia values, which carry deep ties to Ukrainian statehood.

Over the past century, there have existed many types of currencies on Ukrainian territory, including the ruble, karbovanets, korona, zloty and hryvnia. Of these, only the karbovanets and hryvnia have a Ukrainian connection.

The karbovanets was the original choice of the Central Rada for the state currency of the Ukrainian National Republic in 1917. It was soon replaced by the hryvnia. The karbovanets was reestablished as a state currency by the Hetmanate in 1918. During the period 1918-1920, there existed a confusing dual currency system in Ukraine where 2 hryvni were equal in value to 1 karbovanets. This currency duality was indicated on several banknotes of the period.

Although the name "karbovanets" had persisted on Soviet banknotes to the present, the hryvnia disappeared from circulation on Ukrainian territory in 1920. Of the two Ukrainian currencies used in modern times, the karbovanets and hryvnia, only the hryvnia is free of any Soviet connection.

The hryvnia is a very old term used for an ancient Ukrainian currency. According to the Encyclopedia of Ukraine published by the University of Toronto Press, 1988, the hryvnia was a silver coin used as an exchange medium in Kyyivan Rus'.

In modern times, the hryvnia was first established in March 1918 to replace the circulating karbovanets banknotes which were prone to counterfeiting. The printing of the Ukrainian hryvnia banknotes, in values of 2, 10, 100, 500, 1,000 and 2,000 hryvni, was ordered at the German State Printing House in Berlin. The hryvnia notes were delivered to Ukraine in October 1918 during the rule of the Hetmanate.

This new form of currency gained wide acceptance in Ukraine as the state currency because of its attractive appearance, quality of paper and the introduction of watermarks as protection against counterfeiting. The hryvni banknotes of 1918 were designed by three of Ukraine's most celebrated graphic artists of the time including Y. Narbut, V. Krychevsky and I. Mozalevsky. The hryvni notes are among the most attractive, masterfully designed banknotes of all time.

In 1918, a series of promissory notes (similar to savings bonds) were issued by the Hetmanate with values of 50, 100, 200 and 1,000 hryvni. Each bond was issued with eight redeemable coupons in shah values (100 shah = 1 hryvnia). To prevent counterfeiting, the bonds were also printed on watermarked paper.

The hryvni promissory notes also gained acceptance in Ukraine and carried the popular folk name, aeroplanes, because of the symmetrical distribution of coupons on either side of a certificate.

During the period of the Directorate of the Ukrainian National Republic, only one additional hryvnia banknote was issued by the Ukrainian government. The hryvnia banknote printed in Stanislaviv (present-day Ivano-Frankivske) in the late spring of 1919 was the only state-issued banknote on the territory of the Western Ukrainian National Republic and also the last state issue of the Ukrainian National Republic. The 5-hryvnia note combined elements of previously issued banknotes and stamps in its design.

Of the 24 Ukrainian state banknotes issued in the period 1917-1920, 11 carried hryvni values including the 4 promissory notes.

Hryvni banknotes were also issued by cities in Ukrainian 1918-1919. As a result of the continuing state of war in Ukraine in 1917-1920, delivery of state banknotes to various towns and cities was often sporadic to non-existent. To offset the non-delivery of state banknotes, many cities opted to issue their own local (or city) banknotes.

Ukrainian local banknotes are listed in several catalogues, although the most complete listing is that of the well-known Russian collector, N. Kardakoff, published in 1953. Kardakoff lists 559 local banknotes, including some color and print variations, issued on Ukrainian territory (not including the Crimea) in 77 towns and cities in 1917-1920. According to Kardakoff, there were 74 local hryvni banknotes issued in 12 cities. In the Podillia region, local hryvni notes circulated in Dunayivtsi, Kamianets-Podilsky, Mohyliv-Podilskyi, Proskuriv and Zinkiv. In the Volyn region, local hryvni banknotes were issued in Lutske and Ostrih. On the territory of Halychyna, Brody, Sokal, Ternopil, Zbarazh and Zolochiv also issued local hryvni banknotes.

The hryvnia disappeared from Ukraine with the fall of the Ukrainian National Republic 72 years ago. It is only fitting that the hryvnia is now being resurrected as the state currency of independent Ukraine.

Borys Zayachkivsky, a geologist by profession, is a numismatist.

| Home Page |