In order to understand the nature of banks of issue in Spain one must appreciate the series of stages Spanish liberalism went through during those years, in a process leading to a unitary market, a unitary State, and ultimately a unitary issuing authority for banknotes.

The Bank of Bilbao arose out of a process which began in November 1855, with the agreement of the Board of Trade to create a bank in the city, and culminated, through the Banks Act of 28 January 1856, in the publication of its statutes in the Madrid Gazette on Thursday 28 May 1857. It opened to the public the following August. Its issues of currency occurred in stages, covering the bank’s total capacity by May 1860. The Board of Governors requested an increase of 100% in its capital, but only received permission to raise it by 2 million reals, to 10 million reals. This increased its capacity to issue notes by a further 6 million reals. However, the total of 30 million reals in notes was never issued in full, for various reasons, the most important of which was the exclusive issuing right granted to the Bank of Spain by the Decree of 19 March 1874.

According to Section 9 of the Banks Act of 28 January 1856 — under the aegis of which the Bank of Bilbao was founded — banks could issue paper money for up to three times their paid-up capital. The initial capital of the Bank of Bilbao was 8 million, and it was therefore able to issue up to 24 million reals in banknotes. It began by putting 25% of its capacity into circulation, for a total of 6 million reals, in notes with denominations ranging from 100 to 4000 reals: Series A (4000 reals), B (2000 reals), C (1000 reals), D (500 reals), E (200 reals) and F (100 reals).

Obverse: semicircular copperplate engraving with the name of the issuing institution, “Bank of Bilbao”, in a curved and the denomination in words, “one hundred billon reals”, along the base. It depicts a matron against an allegorical background of Commerce and Navigation, and two stamps, each depicting industrial facilities. Serial number of the note stamped twice at the top.

Reverse: calligraphic designs with classical heads enclosed in a .

Manuscript signatures of “the Chief Controller of Financial Administration”, “the Member of the Board of Governors”, “the Managing Director” (Barandica), “the Cashier” (Mandoya). The value of the note is “in cash”, payable to the bearer on demand.