5 Krónur 1919 – Iceland P-7

A Transitional Note Marking Iceland’s Shift Into Modern Currency

The 5 Krónur 1919 (Pick-7) is a historically important Icelandic banknote issued shortly after World War I, during a time of major financial and political transition. This series marks one of the final issues produced under the authority of the Landssjóður Íslands (Icelandic Treasury) before the central banking functions were transferred to the newly established Landsbanki Íslands.

As one of the key banknotes of Iceland’s early 20th-century monetary reform, the 1919 5 krónur note is valued today for its rarity, elegant engraving, and its symbolic role in modernizing Icelandic currency.

Historical Background

By 1919, Iceland was moving toward full independence, which would officially arrive in 1918 with the establishment of the Kingdom of Iceland under a personal union with Denmark. In this period, demand for reliable domestic currency increased rapidly.

The Treasury responded by issuing updated banknotes, with the 1919 5 krónur replacing earlier issues from 1907. Inflationary pressure following World War I also made reissuing lower denominations necessary, as more cash entered everyday circulation.

This note therefore represents the early foundation of Iceland’s independent financial identity.

Design Characteristics

Obverse

The front of the note features:

A centered inscription „Fimm Krónur“ (Five Kronur)
The official Icelandic coat of arms of the era
Distinctive treasury signatures
High-quality Scandinavian-style guilloche patterns
Serial numbers in vivid contrasting ink
A beautifully structured ornamental frame typical of Nordic engraving firms

The engraving is more refined compared to the 1907 series, reflecting improvements in security printing.

Reverse

The reverse maintains the traditional Icelandic Treasury aesthetic:

Symmetrical, decorative linework
A large central ornamental medallion
Fine geometric patterns serving as anti-counterfeit elements
A monochromatic color palette that enhances clarity and elegance

While simple in layout, the reverse is admired for its precision and artistic balance.

Rarity & Collectability

The 5 Krónur 1919 P-7 is scarce today, especially in high grades. Reasons include:

Many were redeemed and destroyed during later banknote transitions
Heavy circulation, since 5 krónur was a commonly used denomination
Limited surviving examples with intact paper quality
Historically transitional issue, printed in comparatively lower numbers than 1920s notes

Collectors value this note highly due to its:

Transitional historical role
Attractive engraving style
Low population on the market
Key position within the early Icelandic banknote series

For collectors building a full Icelandic Treasury set, the P-7 is considered an essential piece.

Specifications

Country: Iceland
Issuer: Landssjóður Íslands (Icelandic Treasury)
Year: 1919
Denomination: 5 Krónur
Pick Number: P-7
Series: Post-WWI Treasury Issue
Type: Early 20th-century engraved paper currency

Iceland collect