1970's $10 Military Payment Certificate // British Armed Forces Series M48 // PMG Certified Gem Uncirculated 66 EPQ

Between 1946 and 1972, the British Armed Forces issued their own banknotes as a solution to the challenges they faced while occupying Germany after World War II. Following the Potsdam Conference, the Allies' job was to disband the German military, rebuild infrastructure, and assist a population on the brink of starvation. However, a black market emerged, causing a loss of millions of pounds for British taxpayers. To combat this issue, the occupying forces created a unique monetary system in March 1946, known as the British Army of the Rhine (BAOR).

In the past, soldiers serving overseas were paid in the local currency instead of their "home" currency. As a result, most of their cash went directly into the local economy. However, in areas with a damaged economy, the presence of a strong currency like the British pound circulating freely alongside weaker currencies could create serious problems, leading to high inflation.

There were other issues to consider as well; when the pound was circulating in a combat region, the opposing side could use it as currency or obtain it to support their war effort elsewhere. Its high purchasing power and easy transfer back to Britain also provided a strong incentive for black market activities. While the use of local currencies was feasible with cooperation from local authorities, it became impractical in combat zones where the government may be hostile, ambivalent, or non-existent. In these cases, the military would issue "military currency" at a fixed exchange rate and declare it as legal tender in occupied areas under the authority of local commanders.

Following a short preparation period, the first set of 52,400,000 British Armed Forces Special Vouchers (BAFSV) was printed by Thomas De La Rue and officially distributed on August 1, 1946. However, the resourcefulness of the local population and troops ultimately undermined the intended purpose of the first issue, which was to curb black market activities. To combat this, a new issue was secretly prepared and released on January 6, 1948, with the first issue being demonetized to prevent the illegal conversion of vouchers.

Offered here is a high-grade example of one of the more popular Military Payment Certificates issued between 1946 and 1972. You will receive the unique certificates shown in the photos with a certificate of authenticity.