pierregavin_09
why were they prohibited..?
An excellent question, I am glad you asked it :)
Suomen Yhdyspankki (SYP) (Union bank of Finland) was founded to support commercial activity on May 21, 1862.
Initially, it did not have the right to issue banknotes, and Suomen Pankki (SP) (The Bank of Finland) sought to prevent it from having the right to issue notes as it saw SYP as a competitor, and feared that SYP might abuse its right of note issue by issuing too many notes.
Shortly after its foundation, SYP proposed the issue of 25 Mk notes so as to not push any small notes of SP out of circulation, and thus not be a competitor to the State Bank. 50 Mk and 100 Mk notes were also proposed. In this era, several Swedish Private banks were issuing their own notes, establishing a precedent for private banks.
In January 1866 a decree was passed that authorised private banks in Finland to issue banknotes. SYP then decided to issue 1.5 million in notes, half the bank’s capital.
The bank petitioned the Emperor for the right to issue 5, 10, 25 and 100 mark denominations. SP were issuing denominations of 1, 3, 12 and 20 marks, and higher. After consideration, the Senate of Finland refused SYP the right to issue 5 and 10 Mk notes as they were considered to be in competition with SP small denominations. Instead, the Senate decided on 15 Mk as a replacement for the 5 and 10 Mk denominations.
Thus, SYP began to issue notes of 15, 25, and 100 Mk in April 1867, after Imperial approval.