Peru, 1881 5 Reales de Inca on 5 Soles, Republica del Peru bank note, Pick # 12. For Sale

FOR SALE IS A
Peru, 1881 5 Reales de Inca on 5 Soles, Republica del Peru bank note, Pick # 12,OVERPRINT ON PERU#S132.PMG 20 VERY FINE.
The significance of the Peru 1881 5 Reales de Inca on 5 Soles banknote (Pick #12, overprint on P# S132) lies in its nature as an emergency, provisional wartime currency issued during a period of national crisis—the War of the Pacific (1879–1884) against Chile.
1. Emergency Wartime EconomyDuring the War of the Pacific, the Chilean military occupied Lima. The Peruvian government faced an extreme economic collapse, severe inflation, and a complete lack of silver or gold bullion to back paper money. Rather than printing entirely new currency from scratch—which was impossible due to disrupted resources—the provisional Republic of Peru administration seized unissued private bank stocks.2. Upcycling a Private Bank Note (The Host Note)The underlying "host" note is Pick #S132, originally printed in 1873 for the Banco de la Compañía General del Perú. Because that bank failed or left its stock unused, the government repurposed these leftover 5 Soles notes. The overprint features the text "BILLETE PROVISIONAL" directly across the top to void the bankrupt private institution's name and transition the liability to the Republic of Peru.3. Creation of a Short-Lived Currency: The "Inca"By supreme decree, Peru introduced a brand-new currency called the Inca to replace the rapidly devaluing old Sol.

• The Exchange Rate: 1 Inca was equal to 10 Soles.
• The Math: Because 1 Inca was divided into 10 Reales de Inca, 5 Reales de Inca represented exactly 0.5 Incas.
• Therefore, the old 5 Soles note was revalued down via overprint to match its exact economic equivalent: 5 Reales de Inca.

4. Graphic HighlightsThe note represents a visual clash of eras:

• The Base Design: Features a portrait of José Gálvez (wearing a laurel crown) alongside early industrial themes like a steam locomotive and a train of mules.
• The Overprint: Crudely stamped in black ink on September 1, 1881, effectively "vandalizing" the beautiful engraving by the American Bank Note Company to adapt to harsh wartime realities.

Front (Obverse)The front of the note features a tri-vignette design combining historical portraiture with industrialized and rural transport scenes

• Right Profile Portrait: A distinct portrait of José Gálvez Egúsquiza wearing a victory laurel crown. He was the celebrated Peruvian Defense Minister who became a national hero after dying at the Battle of Callao in 1866.
• Upper Center Vignette: A rural landscape depicting a man on a horse leading a mule train through a mountain pass.
• Lower Center Vignette: Positioned directly beneath the mule train is a detailed illustration of a steam locomotive (train).

Back (Reverse)The back of the note—printed by the American Bank Note Company—utilizes a split layout showcasing two distinct regional vignettes:

• Left Vignette: A classic pastoral depiction of a man standing alongside a herd of llamas, representing the traditional Andean culture and geography.
• Right Vignette: A corresponding illustration of a steam train, mirroring the theme of technological advancement and modern infrastructure seen on the front.

Do check my summary picture with other offerings from Peru from 1879-1881.
The note you see is the note you get. Thanks for visiting my page.Check out my other SPECIMEN Bank Notes from Mexico and Venezuela.Top Pops, High Graded Notes, and BEP Packs.