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Auction: 391 - World Banknotes at NY INC
Lot: 343

Mercantile Bank of India, London & China (Ceylon), specimen 5 Shillings, Kandy, 1866-81,
the Mercantile Bank of India, London, and China, later rebranded as Mercantile Bank Ltd, stood as a prominent Anglo-Indian financial institution with a principal focus on East Asia. Originating as the Mercantile Bank of Bombay in October 1853, it expanded into East Asia in November 1854 by inaugurating an office in Shanghai. In 1857, it received a royal charter and solidified its presence in Hong Kong, prompting a name change to the Mercantile Bank of India, London, and China in the same year, with London as its headquarters in 1858.
Throughout its formative years from 1853 to 1900, the Mercantile Bank engaged in vigorous competition with other major British banks. Its primary focus revolved around facilitating trade between India and China, as well as other British territories east of Suez. By 1860, the bank's total assets had surged to US$21.7 million, positioning it as a medium-sized bank compared to contemporaries like the Oriental Bank Corporation, which was approximately three times larger.
The completion of the Suez Canal in 1869 and the establishment of the Indo-European telegraph line from London to Calcutta, extending to China in 1871, played pivotal roles in facilitating the expansion and development of business for British banks, including the Mercantile Bank.
The bank significantly broadened its presence, establishing branches across India, the Straits Settlements, Federated Malay States, Hong Kong, and Shanghai. It assumed the role of a banknote issuer in Penang, Singapore, and Hong Kong, notably serving as the issuer of Hong Kong banknotes from 1859 to 1892. One noteworthy banknote from the bank is this specimen 5 Shillings, printed for the Ceylon branch, Kandy, ND (1866-81), graded by PMG as 63 Choice Uncirculated. This banknote stands as an incredibly rare and significant piece of Ceylon's financial history.
However, adversity struck in 1893, resulting in the loss of its charter and necessitating its reconstitution as the Mercantile Bank of India Ltd.
This transformative period marked a pivotal juncture in the bank's history, embodying the challenges and adaptations of the banking sector during that era
(Pick Unlisted), in PMG holder 63 Choice Uncirculated, an incredibly rare and important piece of Ceylon's financial history

Sold for
£3,500

Starting price
£350