Bank of England £5 note
Smallest denomination of England's banknotes
The Bank of England £5 note, also known as a fiver, is a sterling banknote. It is the smallest denomination of banknote currently issued by the Bank of England. On 5 June 2024 and 13 September 2016, a new polymer note was introduced, featuring the images of King Charles III and the late Queen Elizabeth II on the obverse and a portrait of Winston Churchill on the reverse. The old paper note, first issued in 2002 and bearing the image of prison reformer Elizabeth Fry on the reverse, was phased out and ceased to be legal tender after 5 May 2017.
History.
Introduction.
Five pound notes (£5) were introduced by the Bank of England in 1793, following the ten pound note, which had been introduced in 1759 as a consequence of gold shortages caused by the Seven Years' War. The 5 pound note was introduced again, due to gold shortages caused by the French Revolutionary Wars and the Napoleonic Wars and was the lowest denomination of note issued until 1797. The earliest notes were handwritten and were issued to individuals as needed. These notes were written on one side only and bore the name of the payee, the date and the signature of the issuing cashier.
Restriction period.
In 1797, due to the extra money needed to fund the war and the uncertainty caused as Britain declared war on France, a series of bank runs drained the Bank of England of its gold supply. The Bank was forced to stop exchanging gold for notes and to issue notes of £1 and £2 denominations. This was known as the 'restriction period', as the exchange of notes for their value in gold was restricted.
The Restriction Period ended in 1821 as the Government had to anchor the value of the currency to gold in order to control sharply rising inflation and national debt. After a brief period to offset any sudden deflation, the UK returned to the gold standard on 1 May 1821. These notes could again be exchanged in full, or in part, for an equivalent amount of gold when presented at the bank. If redeemed in part, the banknote would be marked to indicate the amount that had been redeemed. From 1853 printed notes replaced handwritten notes, with the declaration "I promise to pay the bearer on demand the sum of five pounds" replacing the name of the payee. This declaration remains on Bank of England banknotes to this day. A printed signature of one of three cashiers appeared on the printed notes, though this was replaced by the signature of the Chief Cashier from 1870 onward.
Move away from gold standard.
The right to redeem banknotes for gold ceased in 1931, when Britain stopped using the gold standard. Metal thread was introduced on the £5 note in 1945 as a security feature. The printed black and white notes were replaced from 1957 onwards by new, two-sided notes. The first two-sided £5 notes (series B) were blue and featured a bust of Britannia on the front and a lion on the back. Series C notes, first introduced in 1963, were the first notes to feature an image of the monarch on the front, with Britannia being relegated to the back. From 1971 onward, with the introduction of series D, a British historical figure was portrayed on the reverse: the soldier and statesman the Duke of Wellington in this case. Series E notes, first issued in 1990, are multicoloured, although they are predominantly turquoise-blue. These notes feature a portrait of railway pioneer George Stephenson, as well as for the first time 'windowed' metal thread; this thread appears as a dashed line, yet forms a single line when held up to the light.
2002 Varnish issue.
In 2002, a problem was identified in which the serial numbers could be rubbed off some notes. The problem was highlighted after six members of the public complained to The Bank of England; banks as well as Post Offices stopped distributing the notes at the request of the Bank of England to stop issuing the new £5 notes. The Bank said the move was a "precautionary measure while we carry out further tests and investigative work into what might have caused the fault and how widespread the problem is". The bank consequently did rigorous testing and found the problem to be that the serial numbers were printed over the varnish rather than under it allowing the ink to be removed if enough force was applied. The Bank started to varnish the notes in an attempt to make them last longer than previous notes which only had an estimated lifespan of nine months.
A spokesman for the Bank of England said: "The notes are still legal tender and the public shouldn't have a problem spending them in the shops. As long as shopkeepers check the anti-counterfeit measures, then the lack of serial numbers is not a problem.
"If members of the public are concerned, then they should take the notes back to the bank where they will be exchanged."
The F series £5 note was never issued.
Moving to polymer.
In April 2013, the Governor of the Bank of England Sir Mervyn King announced on behalf of the bank that Elizabeth Fry would be replaced by Winston Churchill on the next £5 note which would enter circulation in 2016. It was also announced that the images featured on the reverse would include the famous 1941 portrait of Churchill ("The Roaring Lion") by Yousuf Karsh, a view of the Houses of Parliament, a quote by Churchill ("I have nothing to offer but blood, toil, tears and sweat") and a background image of Churchill's Nobel Prize in Literature, while the obverse would feature an image of Queen Elizabeth II.
In December 2013 the Bank of England announced that the next £5 note would be printed on a polymer, rather than cotton paper. The bank cited that they would be cleaner, more secure and more durable. It was also said that the new polymer notes would be more environmentally friendly, lasting 2.5 times as long as cotton paper notes, according to the Bank's own environmental testing.
The note was introduced on 13 September 2016, with an initial print run of 440 million notes (worth £2.2 billion), over the period of co-circulation. It was announced that there would be a co-circulatory period with the old series E notes, and then on 5 May 2017, the series E would cease to be legal tender. However, as with all Bank of England notes, they can be exchanged at face value at any time in the future.
Ingredients controversy.
In November 2016, there was controversy when the Bank of England confirmed that the new notes contained traces of tallow. According to an online petition on this issue, this is unacceptable to vegans, vegetarians, Muslims, Hindus, Sikhs, Jains, Jews and other groups in the UK, and one Cambridge cafe boycotted the new note. The note's manufacturer, Innovia Security, was looking into changing the recipe for the polymer used, so as to contain no animal products, which are added to polymer pellets at an early stage of production. However, on 10 August 2017 the Bank of England announced that all future notes, including future £5 note prints would continue the use of traces of tallow.
Design.
List of historical designs.
Sources from the Bank of England:
Current designs.
The series G (polymer) note is the only £5 note that is currently legal tender. The old paper series E was withdrawn, following a co-circulation period with both notes being legal tender which ended on 5 May 2017.
Circulation.
The Bank of England is responsible for printing and issuing notes to ensure a smooth monetary supply across the United Kingdom. It reports the number of notes in circulation at any given time. The £5 note circulation peaked in 1979 before the £50 was re-introduced.
Table sources from the Bank of England Statistics
References.
<templatestyles src="Reflist/styles.css" />

Banknotes of the pound sterling
Promissory notes denominated in pounds sterling
The pound sterling (symbol: £; ISO 4217 currency code: GBP) is the official currency of the United Kingdom, Jersey, Guernsey, the Isle of Man, British Antarctic Territory, South Georgia and the South Sandwich Islands, and Tristan da Cunha. The Bank of England has a legal monopoly of banknote issuance in England and Wales. Six other banks (three in Scotland and three in Northern Ireland) also issue their own banknotes as provisioned by the Banking Act 2009, but the law requires that the issuing banks hold a sum of Bank of England banknotes (or gold) equivalent to the total value of notes issued.
Versions of the pound sterling issued by Crown dependencies and other areas are regulated by their local governments and not by the Bank of England. Three British Overseas Territories (Gibraltar, Saint Helena, and the Falkland Islands) also have currencies called pounds which are at par with the pound sterling. Pound sterling paper banknotes were the first to be issued in Europe, printed and circulated by the Bank of Scotland in 1696.
Currently circulating Bank of England notes.
The pound sterling banknotes in current circulation consist of Series G Bank of England notes in denominations of £5, £10, £20 and £50. The obverse of these banknotes issued through 4 June 2024 feature the portrait of Elizabeth II originally introduced in 1990. Starting on 5 June 2024, the Bank of England began issuing notes featuring a portrait of Charles III, which will circulate alongside the Elizabeth II notes and gradually replace them. Select banks in Scotland and Northern Ireland also issue their own banknotes at par with Bank of England issues. Scottish and Northern Irish notes, which are not legal tender but are promissory notes, are occasionally rejected as payment in England by merchants unfamiliar with them, and are likely difficult or impossible to exchange outside Britain.
History.
Until the middle of the 19th century, privately owned banks in Great Britain and Ireland were free to issue their own banknotes. Paper currency issued by a wide range of provincial and town banking companies in England, Wales, Scotland and Ireland circulated freely as a means of payment.
As gold shortages affected the supply of money, note-issuing powers of the banks were gradually restricted by various acts of Parliament, until the Bank Charter Act 1844 gave exclusive note-issuing powers to the central Bank of England. Under the act, no new banks could start issuing notes; and note-issuing banks gradually vanished through mergers and closures. The last private English banknotes were issued in 1921 by Fox, Fowler and Company, a Somerset bank.
However, some of the monopoly provisions of the Bank Charter Act 1844 only applied to England and Wales.
The Bank Notes (Scotland) Act 1845 was passed the following year, and to this day, three retail banks retain the right to issue their own sterling banknotes in Scotland, and four in Northern Ireland. Notes issued in excess of the value of notes outstanding in 1844 (1845 in Scotland) must be backed up by an equivalent value of Bank of England notes.
Following the partition of Ireland, the Irish Free State created an Irish pound in 1928; the new currency was pegged to sterling until 1979. The issue of banknotes for the Irish pound fell under the authority of the Currency Commission of the Republic of Ireland, which set about replacing the private banknotes with a single Consolidated Banknote Issue in 1928. In 1928, the Currency and Bank Notes Act 1928 reduced the fiduciary limit for Irish-bank issued sterling banknotes circulating in Northern Ireland to take account of the reduced size of the territory concerned.
Elizabeth II was not the first British monarch to have her face on UK banknotes. George II, George III and George IV appeared on early Royal Bank of Scotland notes and George V appeared on 10/– and £1 notes issued by the British Treasury between 1914 and 1928. However, prior to the issue of its Series C banknotes in 1960, Bank of England banknotes generally did not depict the monarch. Today, notes issued by Scottish and Northern Irish banks do not depict the monarch.
The monarch is depicted on banknotes issued by the Crown dependencies and on some of those issued by overseas territories.
Everyday use and acceptance.
The wide variety of sterling notes in circulation means that acceptance of different sterling banknotes varies. Their acceptance may depend on the experience and understanding of individual retailers, and it is important to understand the idea of "legal tender", which is often misunderstood (see section below).
In summary, the various banknotes are used as follows:
Bank of England banknotes.
Most sterling notes are issued by the Bank of England. These are legal tender in England and Wales. Bank of England notes are generally accepted in the Overseas Territories which are at parity with sterling. In Gibraltar, there are examples of pairs of automatic cash dispensers placed together, one stocked with Bank of England notes, and the other with local ones.
Scottish banknotes.
These are the recognised currency in Scotland, although they are not legal tender (nor are Bank of England notes). They are always accepted by traders in Scotland, and are usually accepted elsewhere in the United Kingdom. However, some outside Scotland may be unfamiliar with the notes and they are sometimes refused. Institutions such as clearing banks, building societies and the Post Office will readily accept Scottish bank notes. Branches of the Scottish note-issuing banks situated in England dispense Bank of England notes and are not permitted to dispense their own notes from those branches. Modern Scottish banknotes are denominated in sterling, and have exactly the same value as Bank of England notes; they should not be confused with the former pound Scots, a separate currency which was abolished in 1707.
Northern Irish banknotes.
Banknotes issued by Northern Irish banks have the same legal status as Scottish banknotes in that they are promissory notes issued in pounds sterling and may be used for cash transactions anywhere in the United Kingdom. However, they are rarely seen outside of Northern Ireland. In England and Wales, although they might be accepted by any shop, they are often not accepted without explanation. Like Scottish notes, clearing banks and building societies will accept them. Northern Irish pound sterling banknotes should not be confused with the Irish pound (or "punt"), the former currency of the Republic of Ireland, which was replaced by the euro in 2002.
Banknotes of the Crown dependencies.
The Bailiwicks of Jersey and Guernsey, and the Isle of Man, are possessions of the Crown but are outside the UK; they are in currency union with the United Kingdom and issue pound sterling banknotes in local designs (Jersey and Guernsey pounds are freely interchangeable within the Channel Islands). In the United Kingdom, they are intermittently accepted by merchants. However, they are accepted by banks and post offices and the holder can exchange these notes for other sterling banknotes. They also issue their own coinage.
British Overseas Territories.
There are fourteen British Overseas Territories, many of which issue their own currencies which are distinct under ISO 4217: Gibraltar, the Falkland Islands, and St Helena, Ascension Island and Tristan da Cunha have their own pounds which are at par with sterling. These notes cannot be used in the UK or outside the territories of origin. Falkland Island pounds are also valid in South Georgia and the South Sandwich Islands and the British Antarctic Territory. Saint Helena pounds, however, cannot be used in the constituent territory of Tristan da Cunha, where sterling is the only official currency.
The remaining British Overseas Territories use the Bermudian dollar, the Cayman Islands dollar, the Eastern Caribbean dollar, the Euro, the New Zealand dollar, or the United States dollar.
Legal tender.
In the UK legal tender specifically relates to the settlement of debts: a debtor cannot successfully be sued for non-payment if they pay the exact amount into court in legal tender. Legal tender is solely for the guaranteed settlement of debts, and does not imply a right to pay with cash in other contexts.
Banknotes do not have to be classed as legal tender to be acceptable for trade; millions of retail transactions are carried out each day in the UK using debit cards and credit cards, none of which is a payment using legal tender. Equally, traders may offer to accept payment in foreign currency, such as the euro, yen, or US dollars. Acceptability as a means of payment is essentially a matter for agreement between the parties involved. Where a transaction is subject to VAT, the transaction must be converted to sterling for tax purposes.
Millions of pounds' worth of sterling banknotes in circulation are not legal tender, but that does not mean that they are illegal or of lesser value; their status is of "legal currency" (that is to say that their issue is approved by the British parliament) and they are backed up by Bank of England securities.
Bank of England notes are the only banknotes that are legal tender in England and Wales. Scottish and Northern Irish banknotes are not legal tender anywhere, and Jersey, Guernsey and Manx banknotes are only legal tender in their respective jurisdictions. Although these banknotes are not legal tender in the UK, this does not mean that they are "illegal" under English law, and creditors and traders may accept them if they so choose. Traders may, on the other hand, choose not to accept banknotes as payment, as contract law across the United Kingdom allows parties not to engage in a transaction at the point of payment if they choose not to.
In Scotland and Northern Ireland, no banknotes, not even those issued by local banks, are legal tender. They have a similar legal standing to cheques or debit cards, in that their acceptability as a means of payment is essentially a matter for agreement between the parties involved, although Scots law requires any reasonable offer for settlement of a debt to be accepted.
Until 31 December 1984, the Bank of England issued £1 notes, and these notes did have legal tender status in Scotland and Northern Ireland while they existed. The Currency and Bank Notes Act 1954 defined Bank of England notes of less than £5 in value as legal tender in Scotland. Since the English £1 note was removed from circulation in 1988, this leaves a legal curiosity in Scots law whereby there is no paper legal tender in Scotland. HM Treasury has proposed extending legal tender status to Scottish banknotes. The proposal has been opposed by Scottish nationalists who believe it would reduce the independence of the Scottish banking sector.
Most of the notes issued by the note-issuing banks in Scotland and Northern Ireland have to be backed by Bank of England notes held by the issuing bank. The combined size of these banknote issues is well over a billion pounds. To make it possible for the note-issuing banks to hold equivalent values in Bank of England notes, the Bank of England issues special notes with denominations of one million pounds ("Giants") and one hundred million pounds ("Titans") for internal use by the other banks.
Banknotes are no longer redeemable in gold, and the Bank of England will only redeem sterling banknotes for more sterling banknotes or coins. The contemporary sterling is a fiat currency which is backed only by securities; in essence promissory notes from the Treasury that represent future income from the taxation of the population. Some economists term this "currency by trust", as sterling relies on the faith of the user rather than any physical specie.
Issuing banks and authorities.
The following table lays out the various banks or authorities which are authorised to print pound sterling banknotes, organised by territory:
Bank of England notes.
In 1921, the Bank of England gained a legal monopoly on the issue of banknotes in England and Wales, a process that started with the Bank Charter Act 1844 when the rights of other banks to issue notes was restricted.
The bank issued its first banknotes in 1694, although before 1745 they were written for irregular amounts, rather than predefined multiples of a pound. It tended to be times of war, which put inflationary pressure on the British economy, that led to greater note issue. In 1759, during the Seven Years' War, when the lowest-value note issued by the Bank was £20, a £10 note was issued for the first time. In 1793, during the war with revolutionary France, the Bank issued the first £5 note. Four years later, £1 and £2 notes appeared, although not on a permanent basis. Notes did not become entirely machine-printed and payable to the bearer until 1855.
At the start of the First World War, the government issued £1 and 10/– Treasury notes to replace the sovereign and half-sovereign gold coins. The first coloured banknotes were issued in 1928, and were also the first notes to be printed on both sides. The Second World War saw a reversal in the trend of warfare creating more notes: to combat forgery, higher denomination notes (some as high as £1,000) were removed from circulation.
There are no Welsh banknotes in circulation; Bank of England notes are used throughout Wales. The last Welsh banknotes were withdrawn in 1908 upon the closure of the last Welsh bank, the North and South Wales Bank. An attempt was made in 1969 by a Welsh banker to revive Welsh banknotes, but the venture was short-lived and the notes did not enter general circulation, surviving today only as a collectors' curiosity.
All Bank of England notes issued since Series C in 1960 through June 2024 depict Elizabeth II, who was monarch at the time, on the obverse side, in full view facing left; her image also appears as a hidden watermark, facing right; recent issues have the anti-photocopier security EURion constellation around.
In September 2022, following the death of Elizabeth II, speculation arose as to precisely when the Bank of England would begin replacing banknotes with her portrait on for ones with the portrait of Charles III. After the end of the mourning period, the Bank announced that the portrait of the King intended for use on its banknotes would be released by the end of 2022. New banknotes with the portrait of the King would circulate alongside existing banknotes with the image of the late Queen for an unspecified period of time. Images of the revised notes featuring a new portrait of the King, as well as his personal cypher, were released by the Bank of England on 20 December 2022, and entered circulation on 5 June 2024. The portrait of Charles III is based on a photograph taken when he was in his early 60s.
The Bank of England has a set of criteria for choosing characters for banknotes – initially, it looks at who has previously featured, to allow for a reflection of the diversity of society. It does not accept fictional characters, or any living people with the exception of the reigning monarch, but instead aims for individuals that are both widely admired, and are considered to have made an important contribution to British society and culture. The final criterion is that the individual has an easily recognisable portrait available for use. This does not need to be a painting, as, up to 2025, there have been two sculptures and two photographs used.
Series D.
In the mid-1960s, shortly after the introduction of Series C, the Bank of England proposed to introduce a new banknote series featuring people from British history. In addition to enhancing the appearance of banknotes, the complexity of the new designs was intended to make counterfeiting harder. The task of designing the new Series D notes was given to the Bank's new in-house designer, Harry Eccleston, who not only designed the notes themselves, but also created three individual portraits of the Queen. It was initially envisaged that all of the denominations of notes then in circulation would be issued under Series D. To that end, a Series D 10/– note was designed, featuring Sir Walter Raleigh, and which would become the 50 pence note upon decimalisation, and intended to be the first of the new series to be issued. However, inflation had shorted the estimated lifespan of the note to roughly five months in circulation. As a result, the new note was not introduced, and the 10/- note was instead replaced with a 50p coin in 1969. Instead, the £20 note was the first Series D note to enter circulation in 1970, with William Shakespeare on the reverse.
Runaway inflation through the 1970s also considerably eroded the lifespan of the £1 note, and the Series D £1 note, featuring Sir Isaac Newton, was discontinued in 1984, having been replaced by a coin the year before, and was officially withdrawn from circulation in 1988. Nonetheless, all banknotes, regardless of when they were withdrawn from circulation, may be presented at the Bank of England where they will be exchanged for current banknotes. Other banks may also decide to exchange old banknotes, but they are under no obligation to do so.
Series E.
When Series E was introduced in 1990, a new portrait of the Queen was commissioned based on photographs by Don Ford, one of the Bank of England's photographers. In this portrait, intended for all of the Series E banknotes, the Queen is shown wearing the Girls of Great Britain and Ireland Tiara, Queen Alexandra's cluster earrings and Queen Victoria's Golden Jubilee necklace. Two different Series E sets were produced, each with a different set of historical figures - the first Series E banknote was the £5 featuring George Stephenson, followed by the £20 (Michael Faraday), the £10 (Charles Dickens) and the £50 (Sir John Houblon). The three lower denominations were replaced by the Series E (Variant) series, featuring Elizabeth Fry, Charles Darwin and Sir Edward Elgar; the £50 note was not replaced during this period.
Series F.
The Series F banknotes consists of the £20 note introduced in 2007 and the £50 introduced in 2011; no £5 or £10 notes were designed for this series. Its launch was announced on 29 October 2006 by the Governor of the Bank of England. These notes were withdrawn on 30 September 2022, after which they are only exchangeable for Series G banknotes.
The first of these new notes, a £20 note, features the Scottish economist Adam Smith, the first Scot to appear on an English note. (The first non-Englishman, Anglo-Irish Field Marshal Arthur Wellesley, Duke of Wellington, appeared on the Series D £5 in 1971.) Smith also features on £50 notes issued by the Clydesdale Bank. Previous issues of Bank of England £20 notes were known to have suffered from a higher incidence of counterfeiting (276,000 out of 290,000 cases detected in 2007) than any other denomination. The note, which also includes enhanced security features, entered circulation on 13 March 2007.
The next new Series F banknote, the £50 note, entered circulation on 2 November 2011. It is the first Bank of England banknote to feature two Britons on the reverse: James Watt (another Scotsman) and Matthew Boulton.
Series G.
In 2011, the Bank of England announced plans to begin introducing a new set of banknotes, which were to become Series G. As part of the initial consultation, the bank obtained opinion on whether the planned new banknotes should continue to be made from banknote paper, or if they should be polymer. Having made the decision to switch to polymer banknotes, the first note of Series G, the polymer £5 note, entered circulation on 13 September 2016; the £10 note on 14 September 2017; the £20 note on 20 February 2020; and the £50 on 23 June 2021. The material used to make the banknotes is biaxially oriented polypropylene.
In April 2013, the Bank of England announced that its next planned new note issue, intended to be the £5 note in 2016, would feature former British Prime Minister Winston Churchill. The selection of Churchill to replace Elizabeth Fry raised some debate about the representation of women on British banknotes, with critics raising concerns that Bank of England notes would portray exclusively male figures, other than Elizabeth II who appears on every sterling coin and Bank of England note. In July 2013 it was announced that the Series F £10 note design would bear a portrait of 19th century author Jane Austen. In 2015, the Bank announced that they were accepting suggestions from the public for a figure from the visual arts to appear on the £20 note to replace Adam Smith, with the new note to be introduced in 2020. In April 2016, it was announced that J. M. W. Turner had been selected to appear on the new £20 note.
In September 2013 the Bank of England opened a period of public consultation about the introduction of polymer, or plastic, banknotes, which would be introduced into circulation from 2016 if the proposals were supported. The polymer notes will be "around 15% smaller" than the notes being replaced. Following the consultation, in December 2013, the Bank confirmed that plastic or polymer notes would be brought into circulation in 2016 with the introduction of the £5 note featuring Sir Winston Churchill. A spokesman for LINK, the company that operates many of the cash machines in the United Kingdom, said there would need to be significant investment as machines would need to be altered to fit the polymer £5 banknotes, which would be smaller than the previous ones. The Jane Austen polymer £10 note went into circulation in September 2017. The £20 shows J. M. W. Turner (from a ), the quote "Light is therefore colour" from an 1818 lecture by Turner, and a view of "The Fighting Temeraire".
In March 2018, the Treasury began a consultation looking at the potential withdrawal of the £50 note, as well as the one and two pence coins, on the basis that they are used significantly less than other denominations, with an additional rationale over the £50 note being the perception in the UK of its use in money laundering, tax evasion and other financial crime, despite the demand for it overseas. The Series F version was introduced in 2011, while its predecessor was in circulation for twenty years, so there was some consideration to withdrawing the £50 note entirely as a way of combatting tax evasion, and the fact that cash transactions using such a high value note are becoming increasingly rare. However, in October 2018 the Bank of England announced plans to introduce a Series G polymer £50 note, following the review by the government. The new £50 note is planned for introduction once the Series G £20 note featuring J. M. W. Turner is released. In July 2019, it was announced that the new note would feature computer pioneer Alan Turing, from a photograph taken by the Elliott & Fry photographic studio in 1951, a table of formulae from Turing's 1936 work "On Computable Numbers, with an application to the Entscheidungsproblem", an image of the Automatic Computing Engine Pilot machine, technical drawings of the British bombe machine, the quote "This is only a foretaste of what is to come, and only the shadow of what is going to be" from an interview Turing gave to "The Times" on 11 June 1949, and a ticker tape showing Turing's date of birth in binary code.
High-value notes.
Not since 1945 have notes with a higher value than £50 been issued for general circulation by the Bank of England, although banks in Scotland and Northern Ireland still use £100 notes. However, the Bank of England does produce higher-value notes that are used to maintain parity with Scottish and Northern Irish notes. Banknotes issued by Scottish and Northern Irish banks have to be backed pound for pound by Bank of England notes (other than a small amount representing the currency in circulation in 1845), and special £1 million and £100 million notes are used for this purpose. Their design is based on the old Series A notes.
Scotland and Northern Ireland.
While provincial banks in England and Wales lost the right to issue paper currency altogether, the practice of private banknote issue has continued in Scotland and Northern Ireland. The right of Scottish banks to issue notes is popularly attributed to the author Sir Walter Scott, who, in 1826, waged a campaign to retain Scottish banknotes under the pseudonym "Malachi Malagrowther". Scott feared that the limitation on private banknotes proposed with the Bankers (Scotland) Act 1826 would have adverse economic consequences if enacted in Scotland because gold and silver were scarce and Scottish commerce relied on small notes as the principal medium of circulating money. His action eventually halted the abolition of private banknotes in Scotland.
Scottish and Northern Irish banknotes are unusual, firstly because they are issued by retail banks, not central banks, and secondly, as they are technically not legal tender anywhere in the UK – not even in Scotland or Northern Ireland – as they are in fact promissory notes.
Six retail banks have the authority of HM Treasury to issue sterling banknotes as currency. Despite this, the notes can be refused at the discretion of recipients in England and Wales, and are often not accepted by banks and exchange bureaus outside of the United Kingdom. This is particularly true in the case of the Royal Bank of Scotland 's £1 note, which is the only £1 note to remain in circulation within the UK.
In 2000, the European Central Bank indicated that, should the United Kingdom join the Euro, Scottish banks (and, by extension, Northern Irish banks) would have to cease banknote issue. During the 2007–2008 financial crisis, the future of private banknotes in the United Kingdom was uncertain as several banks were rescued from collapse by the United Kingdom government. The Banking Act 2009 was passed to improve protection for holders of banknotes issued by the authorised banks, so that the notes would have the same level of guaranteed value to that of Bank of England notes. Critics of the 2009 Act expressed concerns that it would restrict the issue of banknotes by commercial banks in Scotland and Northern Ireland by removing many of the provisions of the earlier Acts quoted above. Under the original proposals, banks would have been forced to lodge sterling funds with the Bank of England to cover private note issue for a full week, rather than over a weekend, thereby losing four days' interest and making banknote production financially unviable. Following negotiations among the UK Treasury, the Bank of England and the Scottish banks, it was agreed that the funds would earn interest, allowing them to continue to issue their own notes.
During the public debate leading up to the 2014 Scottish independence referendum, the question of Scotland's future currency was discussed. Whilst the SNP advocated a currency union between an independent Scotland and the remaining United Kingdom, HM Treasury issued a statement in April 2013 stating that the present relationship with the Bank of England could be changed after independence, with the result that Scottish banks might lose the ability to issue banknotes backed by Bank of England funds.
Scotland.
Until 1701 Scotland issued its own pound, the Pound Scots. The issuing of retail-bank banknotes in Scotland is subject to the Bank Charter Act 1844, Banknotes (Scotland) Act 1845, the Currency and Bank Notes Act 1928, and the Coinage Act 1971. Pursuant to some of these statutes, the Commissioners for Revenue and Customs publishes an account of "the Amount of Notes authorised by Law to be issued by the several Banks of Issue in Scotland, and the Average Amount of Notes in Circulation, and of Bank of England Notes and Coin held" in the "London Gazette". See for example "Gazette" Issue 58254 published 21 February 2007 at page 2544.
Bank of Scotland notes.
All Bank of Scotland notes bear a portrait of Sir Walter Scott on the front in commemoration of his 1826 "Malachi Malagrowther" campaign for Scottish banks to retain the right to issue their own notes. Bank of Scotland's 2007 redesign of their banknotes are known as the "Bridges of Scotland" series. These notes were introduced on 17 September 2007, and show Scotland's most famous bridges on the reverse side. The "Bridges of Scotland" series is currently being refreshed with the issue of new polymer notes with designs that follow the same basic theme of "bridges". The previous "Tercentenary" series notes are being withdrawn from circulation and replaced with the 2007 series (or polymer series as these are issued), but remain legal currency.


First Brazilian Republic
1889–1930 federal republic in South America
The First Brazilian Republic, also referred to as the Old Republic (, ), officially the Republic of the United States of Brazil, refers to the period of Brazilian history from 1889 to 1930. The Old Republic began with the coup d'état that deposed emperor Pedro II in 1889, and ended with the Revolution of 1930 that installed Getúlio Vargas as a new president. During the First Republic, the country's presidency was dominated by the most powerful states of São Paulo and Minas Gerais. Because of the power of these two states, based on the production of coffee and dairy, respectively, the Old Republic's political system has been described as "milk coffee politics". At local level, the country was dominated by a form of machine politics known as "coronelism", in which the political and economic spheres were centered around local bosses, who controlled elections.
The country was also marked by a series of rebellions and revolutions against the ruling oligarchies, which culminated into the Revolution of 1930, when the Liberal Alliance, a force of urban middle-class, planters from outside São Paulo and military reformists composed mostly by junior officers (known as "Tenetism"), deposed ruling president Washington Luís (representative of the São Paulo oligarchies) and led to the ascension of Getúlio Vargas as president, heralding the start of the Vargas Era.
Overview.
On November 15, 1889, Field Marshal Deodoro da Fonseca deposed Emperor Pedro II, declared Brazil a republic, and reorganized the government.
According to the new republican Constitution enacted in 1891, the government was a constitutional democracy, but democracy was nominal. In reality, the elections were rigged, voters in rural areas were pressured or induced to vote for the chosen candidates of their bosses (see coronelismo) and, if all those methods did not work, the election results could still be changed by one sided decisions of Congress' "verification of powers commission" (election authorities in the República Velha were not independent from the executive and the Legislature, dominated by the ruling oligarchs). This system resulted in the presidency of Brazil alternating between the oligarchies of the dominant states of São Paulo and Minas Gerais, who governed the country through the Republican Party of São Paulo (PRP) and the Republican Party of Minas Gerais (PRM). This regime is often referred to as ""café com leite"", 'coffee with milk', after the respective agricultural products of the two states.
The Brazilian republic was not an ideological offspring of the republics born of the French or American Revolutions, although the Brazilian regime would attempt to associate itself with both. The republic did not have enough popular support to risk open elections. It was a regime born of a "coup d'état" that maintained itself by force. The republicans made Deodoro president (1889–91) and, after a financial crisis, appointed Marshal Floriano Vieira Peixoto Minister of War to ensure the allegiance of the military.
Rule of the landed oligarchies.
The officers who joined Field Marshal Deodoro da Fonseca in ending the Empire had made an oath to uphold it. The officer corps would eventually resolve the contradiction by linking its duty to Brazil itself, rather than to transitory governments. The Republic was born rather accidentally: Deodoro had intended only to replace the cabinet, but the republicans manipulated him into founding a republic.
The history of the Old Republic was dominated by a quest for a viable form of government to replace the monarchy. This quest lurched back and forth between state autonomy and centralization. The constitution of 1891, establishing the United States of Brazil ("Estados Unidos do Brasil"), granted extensive autonomy to the provinces, now called States. A federal system was adopted, and all powers not granted in the Constitution to the Federal Government belonged to the States. It recognized that the central government did not rule at the local level. The Empire of Brazil had not absorbed fully the regional provinces, and now they reasserted themselves. Into the 1920s, the federal government in Rio de Janeiro was dominated and managed by a combination of the more powerful states of São Paulo, Minas Gerais, Rio Grande do Sul, and to a lesser extent Pernambuco and Bahia.
Because the monarchy had been overthrown by the Brazilian military, the history of the outset of republic in Brazil is also the story of the development of the Army as a national regulatory and interventionist institution. With the monarchy suddenly eliminated, the Army was left as the country's only long-lasting and powerful national institution. Although the Roman Catholic Church continued its presence throughout the country, it was not national but rather international in its personnel, doctrine, liturgy, and purposes. The Army assumed this new position strategically; the monarchy had become unpopular with Brazil's conservative economic elite after the abolition of slavery, and the Army capitalized on that shift in opinion to amass support for itself within the upper class. Thanks to their success in this area, the Army's prestige managed to eclipse even other military institutions, like the Navy and the National Guard. The Navy's attempts to prevent such hegemony were defeated militarily during the early 1890s. Although it had more units and men in Rio de Janeiro and Rio Grande do Sul than elsewhere, the Army's presence was felt throughout the country. Its personnel, its interests, its ideology, and its commitments were national in scope.
In the last decades of the 19th century, the United States, much of Europe, and neighboring Argentina expanded the right to vote. Brazil, however, moved to restrict access to the polls. In 1874, in a population of about 10 million, the franchise was held by about one million, but in 1881 this had been cut to 145,296. This reduction was one reason the Empire's legitimacy foundered, but the Republic did not move to correct the situation. By 1910 there were only 627,000 voters in a population of 22 million. Throughout the 1920s, only between 2.3% and 3.4% of the total population could vote.
The instability and violence of the 1890s were related to the absence of consensus among the elites regarding a governmental model, as the armed forces were divided over their status, relationship to the political regime, and institutional goals. The lack of military unity, and the disagreement among civilian elites about the military's role in society, explain partially why a long-term military dictatorship was not established. Although the military did not directly control Brazil, military men were very active in politics; early in the decade, ten of the twenty state governors were officers. The Constituent Assembly, which drew up the constitution of 1891, was divided between two factions. One group sought to limit executive power, which was dictatorial in scope under President Deodoro da Fonseca; the other was the Jacobins, radical authoritarians who opposed the paulista coffee oligarchy and who wanted to preserve and intensify presidential authority. The constitution created by this assembly established a federation that was officially governed by a president, a bicameral National Congress (Congresso Nacional; hereafter, Congress), and a judiciary. However, the real power was held by the states, and by local potentates called "colonels." The colonels largely controlled Brazil's internal politics through a system of unwritten agreements known as "coronelismo". Coronelismo, which supported state autonomy, was called the "politics of the governors". Under it, the local oligarchies chose the state governors, who in turn selected the president.
This informal but real distribution of power emerged, the so-called politics of the governors, to take shape as the result of armed struggles and bargaining. The populous and prosperous states of Minas Gerais and São Paulo dominated the system and swapped the presidency between them for many years. The system consolidated the state oligarchies around families that had been members of the old monarchical elite. And to check the nationalizing tendencies of the army, this oligarchic republic and its state components strengthened the navy and the state police. In the larger states, the state police were soon turned into small armies. The Head of the Brazilian army ordered that it would doubled so they could defend them.
"Latifúndio" economies.
Around the start of the 20th century, the vast majority of the population lived in communities that were essentially semi-feudal in structure, though accumulating capitalist surpluses for overseas export. Because of the legacy of Ibero-American slavery, abolished as late as 1888 in Brazil, there was an extreme concentration of such landownership reminiscent of feudal aristocracies: 464 great landowners held more than 270,000 km2 of land ("latifúndios"), while 464,000 small and medium-sized farms occupied only 157,000 km2.
After the Second Industrial Revolution in the advanced countries, Latin America responded to mounting European and North American demand for primary products and foodstuffs. A few key export products— coffee, sugar, and cotton— thus dominated agriculture. Because of specialization, Brazilian producers neglected domestic consumption, forcing the country to import four-fifths of its grain needs. As in most of Latin America, the economy around the start of the 20th century therefore rested on certain cash crops produced by the "fazendeiros", large estate owners exporting primary products overseas who headed their own patriarchal communities. Each typical "fazenda" (estate) included the owner's chaplain and overseers, his indigent peasants, his sharecroppers, and his indentured servants.
Brazil's dependence on factory-made goods and loans from the technologically and economically superior North Atlantic diminished its domestic industrial base. Farm equipment was primitive and largely non-mechanized; peasants tilled the land with hoes and cleared the soil through the inefficient slash-and-burn method. Meanwhile, living standards were generally squalid. Malnutrition, parasitic diseases, and a lack of medical facilities limited the average life span in 1920 to twenty-eight years. Because of the comparative advantage system and lack of an open market, Brazilian industries could not compete against the technologically superior Anglo-American economies. In this context the Encilhamento (a Boom & Bust process that first intensified, and then crashed, in the years between 1889 and 1891) occurred, the consequences of which were felt in all areas of the Brazilian economy throughout the subsequent decades.
The middle class was not yet active in political life. The patron-client political machines of the countryside enabled the coffee oligarchs to dominate state structures to their advantage, particularly the weak central state structures that effectively devolved power to local agrarian oligarchies. Known as "coronelismo", this was a classic boss system under which the control of patronage was centralized in the hands of a locally dominant oligarch known as a coronel, who would dispense favors in return for loyalty.
Thus, high illiteracy rates went hand in hand with the absence of universal suffrage by secret ballot and the demand for a free press, independent from the then dominant economic influence. In regions where there was not even the telegraph, far from major centers, the news could take 4 to 6 weeks longer to arrive. In those circumstances, for lack of alternatives, along the last decade of the 19th century and the first of the 20th, a free press created by European immigrant anarchists started to develop, and, due to non-segregated conformation (ethnically speaking) of Brazilian society, spread widely, particularly in large cities.
During this period, Brazil did not have a significantly integrated national economy. Rather, Brazil had a grouping of regional economies that exported their own specialty products to European and North American markets. The absence of a big internal market with overland transportation, except for the mule trains, impeded internal economic integration, political cohesion and military efficiency. The regions, "the Brazils" as the British called them, moved to their own rhythms. The Northeast exported its surplus cheap labor and saw its political influence decline as its sugar lost foreign markets to Caribbean producers. The wild rubber boom in Amazônia lost its world primacy to efficient Southeast Asian colonial plantations after 1912. The nationally oriented market economies of the South were not dramatic, but their growth was steady and by the 1920s allowed Rio Grande do Sul to exercise considerable political leverage. Real power resided in the coffee-growing states of the Southeast— São Paulo, Minas Gerais, and Rio de Janeiro— which produced the most export revenue. Those three and Rio Grande do Sul harvested 60% of Brazil's crops, turned out 75% of its industrial and meat products, and held 80% of its banking resources.
Brazil in World War I.
Preceding.
Political dynamics.
Following the creation of the republic in 1889, there were many political and social rebellions that had to be subdued by the regime, such as the Two Naval Revolts (1891 & 1893–94), the Federalist Rebellion (1893–95), War of Canudos (1896–97), Vaccine Revolt (1904), Revolt of the Whip (1910) and the Revolt of Juazeiro ("Sedição de Juazeiro", 1914). The Contestado War, a rebellion pitting settlers against landowners, also raged from 1912 to 1916. Therefore, with the onset of World War I, Brazilian elites were interested in studying the events of the Mexican Revolution with more attention than those related to the War in Europe.
By 1915 it was also clear that the Brazilian elites were dedicated to making sure Brazil followed a conservative political path; they were unwilling to embark upon courses of action, whether domestically (i.e. adopting the secret ballot and universal suffrage) or in foreign affairs (making alliances or long-term commitments), that could have unpredictable consequences and potentially risk the social, economic, and political power held by the Brazilian elite. This course of conduct would extend throughout the 20th century, an isolationist foreign policy interspersed with sporadic automatic alignments against "disturbing elements of peace and international trade".
Ruy Barbosa was the main opposition leader, campaigning for internal political changes. He also stated that, due to the natural conflict between Brazilian commercial interests and the Central Powers' strategic ones (demonstrated for example in the German submarine campaign as well as in the Ottoman control over the Middle East), Brazilian involvement in the war would be inevitable. So he advised that the most logical way to proceed would be to follow the United States, which was working for a peace agreement but at the same time since the sinking of the RMS "Lusitania" was also preparing for war.
Social Dynamics.
The formation of the operary class takes its place at the end of 19th century, and it was related with the ongoing changes caused by the expansion of the coffee economy. Because of that expansion, the "progress" of the capitalist economy sufficed the conditions for the establishment of a "nucleus" of service and fabril workers at São Paulo. Beyond that, many immigrants from Europe had arrived, and between them were the refugees of the Paris Commune, bringing communist and anarchist ideas. Because of those ideas, problems for the very conservative regime of large estate owners emerged. Further on, masses of industrial workers became unhappy with the "status quo" and began engaging in massive protests, mostly in São Paulo and Rio de Janeiro. After a General Strike in 1917, the government attempted to brutally repress the labor movement in order to prevent new movements from beginning. This repression, supported by legislation, was very effective in preventing the formation of labor unions considered to be really free by the workers involved.
War.
There were two main lines of thought regarding Brazil's joining the war: One, led by Ruy Barbosa, called for joining the Entente; another side was concerned about the bloody and fruitless nature of trench warfare, nurturing critical and pacifist feelings in the urban worker classes. Therefore, Brazil remained neutral in World War I until 1917. However, as denunciations of corruption exacerbated internal problems in the state, President Venceslau Brás began feeling the need to divert public attention from his government; this goal could be accomplished by focusing on an external enemy and thus stoking a sense of unity and patriotism.
During 1917, the German Navy sank Brazilian civilian ships off the French coast, creating such an opportunity. On October 26 the government declared war on the Central Powers: Germany, Austria-Hungary, and the Ottoman Empire. Soon after, the navy was ordered to capture Central Powers' ships found on the Brazilian coast, and three small military groups were dispatched to the Western Front. The first group consisted of medical staff from the Army, the second consisted of Army sergeants and officers, and the third consisted of military aviators, both of Army and Navy. The Army's members were attached to the French Army, and the Navy's aviators to the British Royal Air Force. By 1918 all three groups were already in action in France.
By that time Brazil had also sent a Naval fleet, the Naval Division in War Operations or "DNOG", to join the Allies' Naval Forces in the Mediterranean.
During 1918, protests broke out against the military recruitment; this, in conjunction with the news of the ongoing revolution in Russia, only strengthened the isolationist sentiment among the Brazilian elites. In addition, the devastating advent of Spanish flu further prevented the Brás administration from getting involved more deeply. Ultimately, the armistice in November 1918 prevented the government from carrying out its plan for war. Despite its modest participation, Brazil gained the right to partake in the Paris Peace Conference.
Demographic changes.
From 1875 until 1960, about 3 million Europeans emigrated to Brazil, settling mainly in the four southern states of São Paulo, Paraná, Santa Catarina, and Rio Grande do Sul. Immigrants came mainly from Portugal, Italy, Germany, Spain, Japan, Poland, and the Middle East. The world's largest Japanese community outside Japan is in São Paulo. In contrast, Brazil's indigenous population, located mainly in the northern and western border regions and in the upper Amazon Basin, continued to decline during this same period; largely due to the effects of contact with the outside world such as commercial expansion into the interior. Consequently, indigenous full-blooded Amerindians now constitute less than 1% of Brazil's population.
Developments under the Old Republic.
In the early twentieth century, demographic changes and structural shifts in the economy threatened the primacy of the agrarian oligarchies. Under the Old Republic, the growth of the urban middle sectors, though slowed by dependency and entrenched oligarchy, was eventually strong enough to propel the middle class into the forefront of Brazilian political life. In time, growing trade, commerce, and industry in São Paulo undermined the domination of the republic's politics by the landed gentries of that state (dominated by the coffee industry) and Minas Gerais, dominated by dairy interests, known then by observers as the politics of "café com leite"; 'coffee with milk'.
Long before the first revolts of the urban middle classes to seize power from the coffee oligarchs in the 1920s, Brazil's intelligentsia and farsighted agro-capitalists, dreamed of forging a modern, industrialized society inspired by positivism— the "world power of the future". This sentiment was later nurtured throughout the Vargas years and under successive populist governments, before the 1964 military junta repudiated Brazilian populism. While these populist groups were somewhat ineffectual under the Old Republic, the structural changes in the Brazilian economy opened up by the Great War strengthened these demands.
The outbreak of World War I in August 1914 was the turning point for the dynamic urban sectors. Wartime conditions prevented Britain from exporting goods to Brazil, thus creating space for Brazil's domestic manufacturing sector to grow. These structural shifts in the Brazilian economy helped to increase the ranks of the new urban middle classes. Meanwhile, Brazil's manufacturers and those employed by them enjoyed these gains at the expense of the agrarian oligarchies. This process was further accelerated by the declining world demand for coffee during World War I. The central government, dominated by rural gentries, responded to falling world coffee demand by bailing out the oligarchs, reinstating the valorization program. Valorization, government intervention to maintain coffee prices by withholding stocks from the market or restricting plantings, had some successes in the short term; however, coffee demand plunged even more precipitously during the Great Depression, creating a decline too steep for valorization to reverse.
Paradoxically, economic crisis spurred industrialization and a resultant boost to the urban middle and working classes. The depressed coffee sector freed up the capital and labor needed for manufacturing finished goods. A chronically adverse balance of trade and declining rate of exchange against foreign currencies was also helpful; Brazilian goods were simply cheaper in the Brazilian market. The state of São Paulo, with its relatively large capital base, large immigrant population from Southern and Eastern Europe, and wealth of natural resources, led the trend, eclipsing Rio de Janeiro as the center of Brazilian industry. Industrial production, though concentrated in light industry (food processing, small shops, and textiles) doubled during the war, and the number of enterprises (which stood at about 3,000 in 1908) grew by 5,940 between 1915 and 1918. The war was also a stimulus for the diversification of agriculture. Growing wartime demand of the Allies for staple products— for instance, sugar, beans, and raw materials— sparked a new boom for products other than sugar or coffee. Foreign interests, however, continued to control the more capital-intensive industries, distinguishing Brazil's industrial revolution from that of the rest of the West.
Struggle for reform.
With manufacturing on the rise and the coffee oligarchs imperiled, the old order of "café com leite" and "coronelismo" eventually gave way to the political aspirations of the new urban groups: professionals, government and white-collar workers, merchants, bankers, and industrialists. Increasing support for industrial protectionism marked 1920s Brazilian politics with little support from a central government dominated by the coffee interests. Under considerable middle class pressure, a more activist, centralized state adapted to represent the interests that the new bourgeoisie had been demanded for years — one that could utilize a state interventionist policy consisting of tax breaks, lowered duties, and import quotas to expand the domestic capital base. Manufacturers, white-collar workers, and the urban proletariat alike had earlier enjoyed the respite of world trade associated with World War I. However, the coffee oligarchs, relying on the decentralized power structure to delegate power to their own patrimonial ruling oligarchies, were uninterested in regularizing Brazil's personalistic politics or centralizing power. Getúlio Vargas, leader from 1930 to 1945 and later for a brief period in the 1950s, would later respond to these demands.
During this time period, the state of São Paulo was at the forefront of Brazil's economic, political, and cultural life. Known colloquially as a "locomotive pulling the 20 empty boxcars" (a reference to the 20 other states) and still today Brazil's industrial and commercial center, São Paulo led this trend toward industrialization due to the foreign revenues flowing into the coffee industry.
Prosperity contributed to a rapid rise in the population of recent working class Southern and Eastern European immigrants, a population that contributed to the growth of trade unionism, anarchism, and socialism. In the post-World War I period, Brazil was hit by its first wave of general strikes and the establishment of the Communist Party in 1922.
Meanwhile, the divergence of interests between the coffee oligarchs— devastated by the Depression— and the burgeoning, dynamic urban sectors was intensifying. According to prominent Latin American historian Benjamin Keen, the task of transforming society "fell to the rapidly growing urban bourgeois groups, and especially to the middle class, which began to voice even more strongly its discontent with the rule of the corrupt rural oligarchies". In contrast, the labor movement remained small and weak (despite a wave of general strikes in the postwar years), lacking ties to the peasantry, who constituted the overwhelming majority of the Brazilian population. As a result, disparate social reform movements would crop up in the 1920s, ultimately culminating in the Revolution of 1930. The 1920s revolt against the seating of Artur Bernardes as president signaled the beginning of a struggle by the urban bourgeoisie to seize power from the coffee-producing oligarchy.
This era sparked the Tenente revolts as well. Junior military officers ("tenentes", or lieutenants), who had long been active against the ruling coffee oligarchy, staged their own revolt in 1922 amid demands for various forms of social modernization, calling for agrarian reform, the formation of cooperatives, and the nationalization of mines. Though ultimately unsuccessful, the Tenente revolts illustrated the conflicts that would go on to underpin the Revolution of 1930.
Fall of the Old Republic.
The 1930 general election.
The Great Depression set off the tensions that had been building in Brazilian society for some time, spurring revolutionary leaders to action.
The elections of 1930 pitted Júlio Prestes, of the pro-establishment Republican Party of São Paulo, against Getúlio Vargas, who led a broad coalition of middle-class industrialists, planters from outside São Paulo, and the reformist faction of the military known as the "tenentes".
Together, these disparate groups made up the Liberal Alliance. Support was especially strong in the provinces of Minas Gerais, Paraíba and Rio Grande do Sul, because in nominating another Paulista to succeed himself, outgoing President Washington Luís had violated the traditional alternation between Minas Gerais and São Paulo. Vargas campaigned carefully, needing to please a large range of supporters. He used populist rhetoric and promoted bourgeois concerns. He opposed the primacy of São Paulo, but did not challenge the planters' legitimacy and kept his calls for social reform moderate.
The election itself was plagued by corruption and denounced by both sides: when the victory of Prestes with 57,7% of votes was declared, Vargas and the Liberal Alliance refused to concede defeat, sparking tensions in the country. On July 26, 1930, vice-presidential candidate João Pessoa of the Liberal Alliance was assassinated in Recife, sparking the beginning of the Brazilian Revolution.
The Revolution.
The 1930 revolution began in Rio Grande do Sul on October 3 at 5:25pm. Osvaldo Aranha telegraphed Juarez Távora to communicate the beginning of the Revolution. It spread quickly through the country. Eight state governments in the northeast of Brazil were deposed by revolutionaries.
On the 10th of October, Vargas launched the manifesto, "Rio Grande standing by Brazil" and left, by rail, towards Rio de Janeiro, the national capital at the time.
It was expected that a major battle would occur in Itararé (on the border with Paraná), where the federal troops were stationed to halt the advance of the revolutionary forces, led by Colonel Góis Monteiro. However, on October 12 and 13, the Battle of Quatiguá took place (possibly the biggest fight of the revolution), although it has been little studied. Quatiguá is located to the east of Jaguariaíva, near the border between São Paulo state and Paraná. The battle did not occur in Itararé since the generals Tasso Fragoso and Mena Barreto and Admiral Isaiah de Noronha ousted President Washington Luís on October 24 and formed a joint government.
At 3pm on November 3, 1930, the junta handed power and the presidential palace to Getulio Vargas; the new administration abrogated the 1891 Constitution, dissolved the National Congress and started to rule by decree, ending the Old Republic. A Constituent Assembly was convened in 1934, following the failed Constitutionalist Revolution of 1932: the Assembly enacted a new Constitution and elected Vargas as new President of Brazil, starting the Second Brazilian Republic.
Notes.
<templatestyles src="Reflist/styles.css" />

Decline and fall of Pedro II of Brazil
1880s events surrounding Pedro II of Brazil
The decline and fall of Pedro II of Brazil took place in the 1880s. It coincided with a period of economic and social stability and progress for the Empire of Brazil, with the nation achieving a prominent place as an emerging power in the international arena.
While Pedro II's rule began in 1840, the roots of the collapse of the monarchy can be traced as far back as 1850, when Pedro II's youngest male child died. From that point onward, the emperor himself ceased to believe in the monarchy as a viable form of government for Brazil's future, as his remaining heir was a daughter. Although constitutionally permitted, a female ruler was considered unacceptable by both Pedro II and the ruling circles. This issue was deferred for decades, while the country became more powerful and prosperous. So long as the emperor was in good health, the question of succession could be ignored.
From 1881 on, Pedro II's health began to fail, and he gradually withdrew from public affairs. Weary of being tied to a throne that he doubted would survive his death, he persevered because there seemed to be no immediate alternative and because it was his duty. His daughter and heir, Isabel, also did not exhibit a desire to assume the crown. Both, however, had the support of the Brazilian people. The royal family's indifference to the Imperial system allowed a discontented republican minority to grow bolder and eventually launch the coup that overthrew the Empire.
Pedro II may be considered a rare instance of a head of state who, despite being considered a highly successful ruler to the end, was ultimately overthrown and exiled.
Decline.
During the 1880s, Brazil became more prosperous and socially diverse, seeing the first wave of women's rights activism. The country had changed greatly in the five decades since Pedro II's accession to the throne. The liberalism adopted by successive government cabinets favored private initiatives and resulted in decades of economic prosperity. Brazil's international trade reached a total value of Rs79.000:000000 (see Brazilian currency) between 1834 and 1839. This continued to increase every year until it reached Rs472.000:000000 between 1886 and 1887 (an annual growth rate of 3.88% since 1839). Brazilian economic growth, especially after 1850, was on par with that of the United States and European nations. Brazilian journalist and historian Hélio Vianna estimates the value of GDP at Rs 50.000:000000 in 1840, reaching the figure of Rs 500.000:000000 in 1889 (an annual growth rate of 4.81% from 1840 to 1889, totaling 49 years of GDP growth of 4.81%). Obtaining a per capita income of 34882 thousand réis in 1889. The national revenue, which amounted to Rs11.795:000000 in 1831, rose to Rs160.840:000000 in 1889. By 1858, it was the eighth largest in the world. To give an idea of the economic potential of the country during the Empire, if "it had been able to sustain the level of productivity achieved in 1870 and managed to increase exports at a pace equal to that verified in the second half of the 19th century, its "per capita" income in 1950 would be comparable to the average per capita income of the Western European nations".
There was large-scale development during this period, which anticipated similar initiatives in European countries. In 1850, there were 50 factories valued at more than Rs7.000:000$000. At the end of the Imperial period in 1889, Brazil had 636 factories (representing an annual rate of increase of 6.74% from 1850) valued at approximately Rs401.630:600$000 (annual growth rate of 10.94% since 1850). As one historian reported, "building in the 1880s was the second greatest in absolute terms in Brazil's entire history. Only eight countries in the entire world laid more track in the decade than The Brazilian Empire." The first railroad line, with only 15 kilometers, was opened on 30 April 1854 at a time when many European countries had no rail service. By 1868, there were 718 kilometers of railroad lines, and by the end of the Brazilian Empire in 1889, this had grown to 9,200 kilometers (with another 9,000 kilometers under construction), making it the country with "the largest rail network in South and Latin America and also the ninth country with the largest rail network in the world".
Topik continues: "Factories also sprang throughout the Brazilian Empire in the 1880s at an unprecedented rate, and its cities were beginning to receive the benefits of gas, electrical, sanitation, telegraph, and tram companies. " It was the fifth country in the world to install modern sewers in cities, the third to have sewage treatment, and one of the pioneers in installing telephone lines (the Empire of Brazil being the second country in the world and second in the Americas, after the United States and the first in South and Latin America to have a telephone). What's more, it was the first South American nation to adopt public electric lighting (in 1883) and the second in the Americas (behind the United States and the first in South and Latin America) to establish a direct telegraph connection to Europe (in 1874). The first telegraph line had been installed in 1852 in Rio de Janeiro. By 1889, there were 18,925 kilometers of telegraph lines connecting the country's capital to distant Brazilian provinces such as Pará, and even linking to other South American countries such as Argentina and Uruguay.
The Brazilian Empire was admired internationally for its democratic system and for its respect for freedom of speech. In politics there were "solid and competitive parties, an active parliament, a free press, open debate". The Argentine President Bartolomé Mitre called the country a "crowned democracy" and Venezuelan President Rojas Paúl, after learning of the Emperor's fall, said, "It has ended the only republic that existed in [South] America: the Empire of Brazil." The Brazil of the last year of Pedro II's reign was a "prosperous and [internationally] respected" nation which held unchallenged leadership in Latin America (the Empire of Brazil (1870-1889) no rivals in Latin America). The Brazilian Navy was among the 10 most powerful (due to the acquisition of the battleships Riachuelo in 1883 and Aquafaba in 1885, both equipped with torpedo launch tubes) in the world (1883-1889) and the most powerful warships in the Americas (the battleships Riachuelo (1883) and Aquafaba (1885).The Emperor was beloved by the Brazilian people and was regarded with "respect, almost veneration" in North America and Europe. The remarks made by a former U.S. consul at Rio de Janeiro, who met Pedro II in late 1882, tell much of the general view that foreigners had of Brazil and its Emperor by the end of the 1880s:
<templatestyles src="Template:Blockquote/styles.css" />Dom Pedro II, Emperor of Brazil … has an intellectual head, eyes a grayish blue … beard full and gray, hair well trimmed, also gray, complexion florid, and expression sober. He is erect, and has a manly bearing … During this long period [of his rule] there have been some provincial rebellions and some local turmoil, but the Emperor has always shown tact, energy, and humanity that helped much to restore order, quite, and good feeling. Thus, while he has held the scepter his country has continued to prosper. Its vast area has been held intact, and it has become an important Empire. As I have looked at his gray head, when he has been driving in his carriage through the streets of Rio, I have said to myself, 'There certainly is an august