1 Peseta Zarza-Capilla

Zarza-Capilla is a small municipality in Badajoz province, Extremadura — deep in territory that saw intense Republican-Nationalist contest during the opening phase of the Civil War. Like hundreds of Spanish towns in 1937, the local council issued its own emergency fractional currency after the national coinage supply collapsed. These municipally-issued notes, known collectively as billetes locales or papel moneda local, were produced under wildly varying conditions, often on whatever stock was available, with authorization from the Republican government's decree permitting local emergency emissions.

Survival rates for Zarza-Capilla issues are low. The town's population was small, production runs were limited, and post-war suppression of Republican-associated material destroyed much of what circulated.