The First Republic
After the proclamation of the Republic on 5 October 1910, the difficulties arising from the imminent First World War forced the Government once again to request funding from Banco de Portugal.
The monetary system was remodelled; the escudo-ouro replaced the real and was printed on the banknotes from 1914 onwards.
Common metals were used in the minting of coins, such as a bronze-aluminium alloy and iron. During the First World War (1914-1918), owing to the scarcity of low-denomination coins, the issue of cédulas (currency notes) was resumed.
In 1925 banknotes of 500 escudo was discovered in Oporto, which were all printed from one plate and had the same numbering and series. This fraud came to be known as the “Alves Reis” financial affair.
