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Watermarks in Banknotes
A watermark is a recognizable design, image or pattern in a sheet of paper. It appears lighter when viewed against the light. Paper with watermarks has been used for the production of banknotes already in the 17th century. The watermarks are not only a design feature of the banknote, but are also used as a method against counterfeit. Detailed and graphically sophisticated watermarks are harder to forge, although this aspect has lost its importance over the years.
Watermarks can be faked in different ways. Sometimes the paper is scratched away to make the paper thinner and simulate the watermark. When brought in fluid on a "thinned" paper the watermark will whiten, while a real watermark will not. It is also very important to check the size, locations and pattern of a watermark to decide, if it is real.
Watermarks vary greatly in their visibility; while some are obvious on casual inspection, others require some study to make them out. Various aids have been developed to help making them visible, such as watermark fluid that wets the paper without damaging it. The early banknotes have often watermarks that are synchronised with the print design. Later banknotes often have a dedicated space that was not printed on, to make them easier to see.
A watermark is very useful in the examination of banknotes, because it can be used for dating, identifying printers and specific issues. Many issuers and printers of banknotes have used a specific paper to produce their banknotes. In times of monetary emergency (e.g. the German inflation) it was not always possible to use the usual paper. So we find that many German Notgeld and inflation bills have been printed on different sorts of paper – showing different watermarks. Again this is an interesting area, where the collector can specialise in collecting the many versions available.
Examples of banknotes with interesting watermarks:
Watermark history
Originally a watermark used to be made by impressing a metal stamp or "dandy roll" onto the paper during the manufacturing process, while the paper was still wet. The stamp left a thinner mark in the drying paper. Today there are many different ways to produce watermarks during the paper production process.
Watermarks have been used for a long time. The first modern watermarks were introduced in Bologna, Italy in 1282. They have been used by paper makers to identify their products. Later they appeared also on postage stamps, currency, and other government documents to discourage counterfeiting and certify the authorship.
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