During the First World War, Portugal fought with the English & Americans
against the Germans. By the end of the conflict ( 1918 ), the Portuguese
economy lay in ruins. Well into the following years the country was
immersed in a civil war, which further destabilized the economy,
so much so, that most coinage disappeared from use. The national government
began to crank out low value banknotes in amounts of a few centavos, but
unfortunately this was not enough to meet the demands of the populace.

So, many local organizations such as civic groups, hospitals, and Chambers of
Commerce began issuing their own small change notes. Here, for example is
a 5 Centavos banknote from the town of Cuba, showing the Portuguese
Coat of Arms within an attractive border, duly signed by the President of the
executive committee. On the reverse is a depiction of the civil hospital of Cuba