The Bank of Panama

Green design with central portrait:The obverse shows an engraved portrait framed by ornamental ovals and the figures “1” repeated at the ends, with the legend of bearer payment typical of private banking at the time. The reverse displays a double floral medallion with the bank's name in the center.

Historical and Issue Context

Panama, Colombian territory:Until its separation in 1903, Panama was part of Colombia as a Sovereign State and then as a Department, under the sovereignty of the United States of Colombia and, later, of the Republic of Colombia. The banknotes issued in the isthmus during these years circulated as Colombian currency and are traditionally cataloged within the section of regional and private banks of Colombia.¹

The second Bank of Panama:In 1869, when the license of the Pérez y Planas Circulation and Discount Bank expired, Ricardo Planas partnered in New York with William Francis Kelly to found a new bank of issue, exchange, and discount under the name of El Banco de Panamá. José Agustín Arango, Planas's brother-in-law, was also invited to the partnership, and he contributed the same 40% as Kelly, while Planas kept the remaining 20%. The bank issued its own paper currency, printed by the American Banknote Company of New York.²

Opening and sunset:according to historian Fernando Barriga del Diestro, El Banco de Panamá opened on August 14, 1869, amid a difficult period for the isthmus's economy: the opening of the transcontinental railroad in Utah diminished the importance of the Panama route, several foreign companies left the country, and the government had to seek loans from the bank itself during the crisis. A fire affecting the offices and business premises of Planas y Cía., together with partner Kelly's withdrawal, compounded these problems —factors that led to the bank's liquidation, leaving Panama without a single bank by about 1875.⁴

No central bank:As in the rest of the country, Panamanian banking at the time operated during the period of Colombian free banking (1871–1886), when each bank issued banknotes backed by its own credit, without forced currency or unified monetary authority.³

Key Details Visible on Banknotes

• Obverse of the One Peso:engraved central portrait, the heading “El Banco de Panamá” within an ornamental frame, and the denomination “UN PESO” repeated on both sides alongside the serial number.
• Vignette of the Cinco Pesos:portrait of Antonio Planas in an oval at left and, at right, an allegorical vignette with a ship, globe, and train —symbols of the commerce and progress represented by the isthmus as an interoceanic crossroads.
• Ornamental reverses:Both bills show medallions and borders engraved with the name of the bank in the center, in green for the One Peso and in blue for the Cinco Pesos.
• Printer:Both copies bear the imprint of the American Banknote Company of New York, a house that engraved a good part of the Colombian paper money of the time.