LA. Pl’SLIC LIBRARY - ART/RECREAIiQII THE NUMISMATIC HISTORY OF EL SALVADOR BY JOSE A MEJIA DEC 10 2011 m b Copyright © 2011 Jose A Mejia All rights reserved. . ISBN:10:061548154xy/ ISBN-13:978-0615481548 To buy the best and rarest Latin American coins visit www.alliancelimitedcollectibles.com Table of Contents Introduction Pg4 Chapter 1: Back in the Days: The Kingdom of Guatemala under Spanish Rule Pg6 Chapter 2: A United Front: The Central American Federation Pg 9 Chapter 3; Independence at Last: The State 1840-1880 Pg 45 Chapter 4: The Beginning of the Liberal State: Land Privatization and the Creation of The Modem State 1880-1892 Pg67 Chapter 5: La Casa De Moneda: The Central American Mint Limited 1892- 1896 Pg 78 Chapter 6: A New Millennium: The Aristocratic Presidencies 1900-1932 Pg 94 Chapter 7: The End of a Dream: The Dictatorship of General Martinez 1932- 1944 Pgll9 Chapter 8: The Youth in Charge: The Beginning of the Juntas and Military Presidents Pg 138 Chapter 9: Into the Abyss: The Civil War 1979-1992 Pgl55 Chapter 10: A New Beginning and the end of the Colon: Peace and Globalization in the 21st Century Pg 165 Chapter 11: Collecting History Pgl74 Chapter 12:20th Century Coins by Decades Pg203 Bibliography Pg 247 ~ 3 ~ Introduction On Januaryl, 2001, part of the nation's heritage became a relic of history. The mighty dollar had replaced the age of the Colon in the 21st century. Decades of political and civil unrest had recently ended, thus allowing the nation to convert her currency to that of the dollar. It had taken El Salvador over 50 years to establish her own currency and it had been replaced in just a matter of months. The history of the colon is one that needs to be told, since few people know little if anything about this nation's coins. This book will study the history of the national coins usage from the time it was a colony of Spain under the Guatemalan Kingdom to her status as a state in the Central American Federation all the way to her independence. El Salvador's lack of currency created a problem in terms of keeping a detailed record of what foreign currency or goods were used as legal tender during the early years of the republic. Therefore, as much as I have tried to verify the existence of foreign currency in the country, there is a good likelihood that numerous international coins were used as tender that we have no record of. Furthermore, I couldn't write this book without briefly going over the political history of the country, since politics determined economic policy. • 'v 4 ^ . Why was Colon the adopted currency name? Where was the national mint located? When were the first colones minted? Why did it take so long to establish a national currency? I hope to address and answer these and many other questions that the reader might have. Planting the Seeds: The Kingdom of Guatemala and The Federal Republic of Central America The nation we call El Salvador was discovered by Spain in 1524. Like most nations in Latin America, El Salvador was settled and colonized by the Spanish. The Spanish crown decided to divide the Latin American colonies by region with each being controlled by a vice regent or governor. The three regions in Latin America were divided as follows: the vice regent of Mexico, the vice regent of Guatemala and the vice regent of Peru. El Salvador at the time was called San Salvador and was under the control of the vice regency of Guatemala which controlled Central America Each region was governed by rules established by the crown, but enforced by each vice regent. All three vice regents had established mints to cover each regions currency needs. The seat of power in Central America was Guatemala and a mint was built there for the purpose of minting currency for the region. Vice Regent of Guatemala Mint As we have briefly discussed, the vice regency of Guatemala was in charge of minting coins for use in Central America, with the region's mint being established in Guatemala. Several coins were produced during the time in this mint, which was chartered in 1600 and function till 1801. Independence As Spain's influence started to fall in the region many states took up the cause of independence and together they advocated their right for self rule. The first two decades of the 19th century were chaotic for Spain. With Spain's army and navy being stretch to the point of breaking, the states that composed the Kingdom of Guatemala declared their independence on September 12,1821 without a single shot being fired. Mexican Empire under Emperor Agustín de Iturbide Independence came without a fight in the Central American region of the Spanish empire. Spain was too busy fighting the Mexican revolutionaries and other revolutionaries in South America to give the Central American region any importance. The states in the vice regency declared their independence once they saw that Spain was too weak and that local Spanish authorities would pose no resistance. On September 15,1820 all states in Central America declared their independence from Spain without as much as firing single shot.