50 Centavos – Honduras

In 1908, Honduras found itself in a precarious monetary situation characterized by a chaotic and devalued currency system. Following decades of political instability and heavy borrowing from foreign banks, the country's primary circulating medium was the silver Honduran peso, which had severely depreciated against the gold standard. More critically, the financial landscape was dominated by a flood of low-value, privately issued banknotes from various domestic banks. These notes were often inconvertible into specie (hard currency) and of dubious value, leading to widespread public distrust and economic inefficiency.

This monetary anarchy was a direct result of the "Ley de Bancos de Emisión" (Law of Issuing Banks) of 1902, which had granted note-issuing privileges to multiple commercial banks with minimal government oversight. The system invited abuse, as banks printed excessive currency to finance loans to the very government and allied elites, fueling inflation. By 1908, the situation had reached a crisis point, severely hampering domestic commerce and foreign trade, as international merchants refused the unstable Honduran currency.

Recognizing the need for reform, the government of President Miguel R. Dávila took decisive action in 1908. It initiated a process to centralize and stabilize the currency, which culminated in the creation of the Banco de Honduras later that year. This new bank was granted a monopoly on note issuance, marking the first major step toward a uniform national currency. While full stabilization was a gradual process, the reforms of 1908 laid the essential groundwork for the eventual introduction of the Honduran lempira in 1931, finally establishing a stable and unified monetary system.