Post offices, payments and the central bank.. finding the crucial letter of De Nederlandsche Bank

Yesterday I blogged about the end of the era of Post Offices here in the Netherlands. And with that, both the Postal Office and the postal order as a payment instrument are officially gone in the Netherlands.

It's interesting to realize that about 100 years ago the situation was quite different. The economy required smooth payments and funds for the business community. And there was quite some debate on the possible introduction of a national giro-system. How that debate proceeded is a long story, but suffice to say that the central bank (De Nederlandsche Bank, DNB) was asked their opinion about starting a girosystem in the Netherlands.

DNB replied that it did not have the means and resources but suggested as an alternative to lower the fees for the postal order. Yet, the actual letter in which DNB wrote this to the Ministry of Finance, could for a long time not be found. The official historian of DNB couldn't get it, no one could and we were left with a footnote in the official historiography of DNB that the letter could not be found.

Well, that footnote triggered my curiosity and so I went searching in the national archives and used some lateral thinking. And there it was. In the archives of the Ministry of Economic Affairs. Before me, the letter of DNB of April 15, 1910, outlining that DNB themselves would not be able to set up a giro system. As such this kickstarted and paved the way for the further development and introduction of the PCGD.

Perhaps you can imagine the rush of sensation that came over me when I found this letter (already about 10 years ago). At that point in time I still thought I would quickly finish my PhD on the history of payments in the Netherlands. My plan has changed a bit however. While I may still sometime officially finalize that PhD-research-project I intend to publish bits and parts of my research on this blog.

So while I am busy writing a 'light-version' of the history of payments/banking in the Netherlands, it is with pride that I present the bit of Dutch financial history contained in this weblog: the letter of De Nederlandsche Bank NV on the introduction of girosystems in the Netherlands.

Last Post Office closes ....

This week the last independent Post Office in the Netherlands, in Utrecht, closes. It's a beautiful building as we can see from these old postcards:

Post Offices, by tradition and definition, also play a role in financial history. They would physically transfer cash when money was sent via the Post. Also, instruments such as the 'Postwissel' (postal order) would provide a means of sending money to other people, without the need for sending the money itself. This postal order worked either within the country or to people in other countries. 

But, as the Post Offices themselves are closing, with TNT Post and ING choosing their own locations for the delivery of their respective services, the postal order is by now a thing in the past. That is: here in the Netherlands; it is still available in other countries and one can of course always also use the US equivalent... Western Union.

Update as of Friday 28 October: There is a really smashing panorama foto available through ab-c media weblab and thanks to fotographer Frank van der Pol. It's a very nice example of the possibilities of panorama-photography with augmented reality touch.

I am placing a smaller embed here, but you would most certainly want to look fullscreen (right button) and check out the Dutch page of ab-c media weblab that explains all the features and the building.