Coins Born of Necessity: Madeira Tokens
‘Coins of necessity’ were issued by private companies to overcome a shortage of change and sustain the local economy, as illustrated by the Madeira tokens.
Museu Casa da Moeda
Underpinned by a system of trust, this collection of tokens reflects a part of Portugal’s economic history.
The First Tokens
Created in 1899 by José Fernandes de Azevedo (JFA), this 250-denomination zinc coin stands out from the rest due to its unusual rectangular shape. Five other denominations minted by this issuer are known to share this same feature: 200, 150, 120, 100 and 80.
Issued in 1799 by Vicente de Oliveira & Co., a company specialising in the export of Madeira wine, this 40-réis token is one of the oldest on the island. Its creation was prompted by several instances of counterfeit currency. With the firm’s name stamped on the obverse, the pioneering adoption of these tokens was essential to circumventing the lack of official currency and facilitating daily local transactions.
British influence on Madeira’s tokens
Issued in 1804 by Colson, Smith & Robinson, this 50-réis copper token reflects the English influence in Madeira. Although convertible into official currency, its widespread acceptance in Funchal’s commercial circles meant it was frequently used as currency.
Issued in 1803 by the firm Phelps, Page & Co., this token is an example of the commercial sector’s response to the shortage of currency in Madeira. The reverse bears the inscription ‘PAGARÃO AO PORTADOR’ (‘Payable to the bearer’), assuring the population that the face value (100 réis) was redeemable for legal tender. The Phelps family, of British extraction, played a central role in Funchal society, boosting the economy, education and cultural life through the profits from the Madeira wine trade.
Minted in 1831, this 80-réis copper token from Diogo Adams & Co. is one of five different denominations: 100, 60, 50 and 40 réis. These tokens are notable for their design. The obverse features the issuer’s name surrounding the figure of a lion lying on its left side. The use of the English language underscores the significant British influence on Madeira’s economy. Indeed, it was the British community that popularised the issue of these tokens to facilitate local trade.
Issued in 1897 by Krohn Brothers & Co., these 150- and 300-réis brass tokens are notable for their circular or hexagonal shape, edged with dots. Four further denominations issued by this firm are also documented: 240, 200, 100 and 40 réis. Between the 19th and early 20th century, these tokens were essential in enabling businesses to cope with the constant shortage of small change in everyday life across the archipelago.
Madeira’s ‘coins of necessity’ illustrate the island’s commercial resilience. Between the 18th and 20th centuries, the chronic lack of official change threatened daily life. Led by British merchants, large companies issued their own tokens. Accepted on the basis of trust among the local populace, these ‘coins of necessity’ ensured the continuity of local trade. Today, they can be seen as a testament to the survival of Madeira’s economy.
Curation - Museu Casa da Moeda
For more information about the collection, visit Museu Casa da Moeda.
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