Paper Money - Vol. LV, No. 5 - Whole No. 305 - September/October 2016

Paper Money Vol. LV, No. 5, Whole No. 305 www.SPMC.org September/October 2016 Official Journal of the Society of Paper Money Collectors Happy Birthday MPC!!! Stack’s Bowers Galleries takes tremendous pride in the expertise and competency of our associates, which include some of the most prominent numismatic authorities in the world. Whether you are a seasoned collector or are looking forward to your  rst consignment, the experts at Stack’s Bowers are just a phone call away, ready to share our numismatic knowledge and guidance to help you earn top dollar for your currency. Stack’s Bowers Galleries is accepting consignments to auctions throughout the year, including the O cial Auctions of the Whitman Baltimore Expos and the ANA World’s Fair of Money. Professionals You Can Trust Call one of our currency consignment specialists to discuss opportunities for upcoming auctions.  ey will be happy to assist you every step of the way. 800.458.4646 West Coast Offi ce • 800.566.2580 East Coast Offi ce Peter A. Treglia Aris Maragoudakis John M. Pack Peter A. Treglia LM #1195608 John M. Pack LM # 5736 Peter A. Treglia John M. Pack Brad Ciociola Brad Ciociola Boston, Massachusetts. Mount Vernon Bank. December 1, 1860. $100. About Uncirculated. Proof. From the Peter Mayer Collection, Part III. Realized $9,400. Fall River, Massachusetts. Massasoit Bank. ND (186x). $50. About Uncirculated. Proof. From the Peter Mayer Collection, Part III. Realized $9,400 Marblehead, Massachusetts. Marblehead Bank. ND. $50. Choice Uncirculated. Proof. From the Peter Mayer Collection, Part III. Realized $10,575 Fr. 2231-A. 1934 $10,000 Federal Reserve Note. Boston. PMG Choice Uncirculated 64 EPQ. From the Holecek Family Foundation Collection. Realized $227,050 Fr. 1890-G★. 1929 $100 Federal Reserve Bank Note Star. Chicago. PMG Gem Uncirculated 65 EPQ. Realized $58,750. Pueblo, Colorado Territory. $1 Original. Fr. 382.  e First NB. Charter #1833. PMG About Uncirculated 55 EPQ. Realized $28,200 Fr. 95b. 1863 $10 Legal Tender Note. PMG Gem Uncirculated 65 EPQ. Realized $29,375 Fr. 1197. 1882 $50 Gold Certi cate. PMG Choice Uncirculated 64. Realized $19,975 Fr. 2221-H. 1934 $5000 Federal Reserve Note. St. Louis. PMG Choice Uncirculated 64 EPQ. From the Holecek Family Foundation Collection. Realized $258,500 Manning Garrett 800.458.4646 West Coast Offi ce • 800.566.2580 East Coast Offi ce 1231 East Dyer Road, Ste 100, Santa Ana, CA 92705 • 949.253.0916 Info@StacksBowers.com • StacksBowers.com California • New York • New Hampshire • Hong Kong • Paris SBG PM Gen Cons 160810 America’s Oldest and Most Accomplished Rare Coin Auctioneer Showcase Auctions Terms and Conditions  PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 711 Signal Mt. Rd #197, Chattanooga, TN 37405. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Jeff Brueggeman, 711 Signal Mtn. Rd, #197, Chattanooga, TN 37405. ©Society of Paper Money Collectors, Inc. 2014. All rights reserved. Reproduction of any article in whole or part without written approval is prohibited. Individual copies of this issue of PAPER MONEY are available from the secretary for $8 postpaid. 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Vol. LV, No. 5 Whole No. 305 September/August 2016 ISSN 0031-1162 Benny Bolin, Editor Editor Email—smcbb@sbcglobal.net Visit the SPMC website—www.SPMC.org Happy Birthday MPC Joe Boling & Fred Schwan ............................................ 315 ADVERTISING All advertising on space available basis. Copy/correspondence should be sent to editor. All advertising is payable in advance. All ads are accepted on a “good faith” basis. Terms are “Until Forbid.” Ads are Run of Press (ROP) unless accepted on a premium contract basis. Limited premium space/rates available. To keep rates to a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork, or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. 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Stack’s Paymaster Auction Report Fred Schwan ................................................................ 324 Populations of MPC Known in Collector’s Hands Carlson Chambliss......................................................... 328 AAFES Pogs-- William Myers ............................................................... 337 Fractional MPC Benny Bolin ..................................................................... 38 3rd Example of Postage Currency Used as Postage Rick Melamed ............................................................... 345 Chester Krause ................................................................... 346  ADVERTISING RATES Eighth page B&W 45 125 225 Required file submission format is composite PDF v1.3 (Acrobat 4.0 compatible). If possible, submitted files should conform to ISO 15930-1: 2001 PDF/X-1a file format standard. Non-standard, application, or native file formats are not acceptable. Page size: must conform to specified publication trim size. Page bleed: must extend minimum 1/8” beyond trim for page head, foot, front. Safety margin: type and other non-bleed content must clear trim by minimum 1/2” Advertising copy shall be restricted to paper currency, allied numismatic material, publications and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable or inappropriate material or edit copy. The SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. Post-Date Back Series of 1882 & 1902 NBN Peter Huntoon ............................................................. 348 Series of 1886 Silver Dollar Back $5 Silver Certificates Lee Lofthus .................................................................. 352 Small Notes—Jamie Yakes ................................................. 360 Rise & Fall of John Parkman—Charles Derby ...................... 365 Corp. of Richmond, VA Currency Notes—Josh Kelly ........... 381 Isaac Young and the Bank of St. Croix—Shawn Hewitt ....... 379 Obsolete Corner—Robert Gill ............................................. 386 Interesting Mining Notes—David Schenkman .................... 388 President’s Message ............................................................. 391 Editor Sez .............................................................................. 392 Chump Change—Loren Gatch ............................................. 393 New Members ....................................................................... 394 Space 1 Time 3 Times 6 Times Full color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 313 Society of Paper Money Collectors Officers and Appointees ELECTED OFFICERS: PRESIDENT--Pierre Fricke, Box 1094, Sudbury, MA 01776 VICE-PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 SECRETARY—Jeff Brueggeman, 711 Signal Mtn., Rd. #197, Chattanooga, TN 37405 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Jeff Brueggeman,711 Signal Mtn. Rd #197, Chattanooga, TN Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Loren Gatch 2701 Walnut St., Norman, OK 73072 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Scott Lindquist, Box 2175, Minot, ND 58702 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Vacant Vacant Vacant APPOINTEES: PUBLISHER-EDITOR-----Benny Bolin, 5510 Bolin Rd. Allen, TX 75002 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 1211 Greenwood, IN 46142 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton,TX, 75011-7060 IMMEDIATE PAST PRESIDENT- - Mark Anderson, 115 Congress St., Brooklyn, NY 11201 WISMERBOOKPROJECTCOORDINATOR--PierreFricke, Box 1094, Sudbury, MA 01776 REGIONAL MEETINGCOORDINATOR--Judith Murphy, Box 24056, Winston-Salem, NC 27114 Pierre Fricke—Buying and Selling Confederate and Obsolete Money!  P.O. Box 1094, Sudbury, MA 01776; pfricke@csaquotes.com; www.csaquotes.com  And many more CSA, Southern and Obsolete Bank Notes for sale ranging from $10 to five figures  The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show in Memphis, TN. Information about the SPMC, including the by-laws and activities can be found at our website, www.spmc.org. .The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards, but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the S o c i e t y prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date which can be found on the label of Paper Money. Renewals may be done via the Society website www.spmc.org or by check/money order sent to the secretary. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 314 U n c o u p l e d : Paper Money’s Odd Couple Happy Birthday MPC! Joseph E. Boling Fred Schwan GREETINGS - The line above was the usual salutation of a letter notifying a draftee that he had been selected for induction into the armed forces of the United States. Yes, it was “he,” because to this day we have not drafted women for military service. This year, 2016, is the seventieth anniversary of the introduction of military payment certificates as a medium of exchange among US military forces in overseas areas of operation. Millions of draftees used MPC during almost three decades of use. This issue of Paper Money pays special attention to MPC on this 70th anniversary. As you might have expected, I will address them as security documents. When compared to other forms of paper money, MPC are on the low-tech side. They were designed to be used in limited areas for limited periods of time, with 100% replacement intended every few years. The costs of production would come out of military budgets. Users would not generally have access to sophisticated copying equipment. Users would be subject to military discipline. In light of these conditions, decision- makers chose to use a low-end production technology—offset lithography. When compared to intaglio, lithography is both cheaper and faster, with less production wastage. But—some form of security would still be desirable. At the time that the first MPC were designed (1946), in the absence of intaglio printing, the only other common security features were found in the paper—watermarks or inclusions. Both are integral to the paper; Boling continued on page 318 September 16th is the 70th anniversary of the introduction of military payment certificates. War Department and Army finance officers, government officials, the Bureau of Engraving and Printing, and a private printing contractor (Tudor Press) were very busy in mid-1946 preparing for the introduction of the new money. On the occasion of this anniversary we will review some (most, actually) of what we know about the introduction. Most of the following information is taken from The Comprehensive Catalog of Military Payment Certificates and much of that was based on work by the late Walter Rundell in Black Market Money. On 18 February 1946, Secretary of the Treasury Fred M. Vinson proposed in a letter to the secretary of war that overseas troops be paid in a combination of scrip and local currencies. At that time soldiers were usually paid in the currency of the country in which they were serving. In spite of the fact that soldiers had the legal right to exchange pay into dollar credits to send home, Secretary Vinson suggested that soldiers draw only enough local currency for immediate expenditures on the foreign economy, and that there be no reconversion privilege. He described his proposal for scrip as a refinement of a suggestion made by the Treasury Department on 17 October 1945 that overseas forces be paid in military payment orders that they could cash for indigenous currencies, but that they not be allowed to convert local currencies back into dollar instruments. Secretary Vinson’s letter attested to the Treasury’s annoyance with the War Department’s apparent lack of concern with currency control. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 315 When collectors speak of the reasons for the introduction of MPC, they usually mention suppressing the black market and supporting the local government as sort of moral and even strategic reasons. No surprise here that the real reason was money. When soldiers sold goods in the black market, they usually realized large profits, but in local currency. When the military had to buy back local currency worth more than the soldiers had been paid, an overdraft was created. True, the lever for creating the overdraft was some sort of black market activity, but the real reason for fighting it was the money. After MPC were introduced, Army finance officers were able to calculate the overdraft that had developed. The amount as of 31 December 1946 was staggering—$530,775,440! The features of scrip that were stressed in the communications were (1) the non-acceptance of scrip from unauthorized personnel (scrip finding its way into black markets would not be redeemable by the local population) and (2) the fact that local currencies could not be converted into dollar credits. Any amount of scrip could be exchanged for local funds, but once exchanged, it could not be reconverted. By collecting through such channels as finance offices, Army post offices, and post exchanges only what it had disbursed—United States-issued scrip—the Army would have an effective safeguard against any further overdraft. If soldiers acquired scrip from civilians in the black market and converted it into dollar credits, there would be no overdraft since the scrip had been originally issued by the United States Army and was therefore supported by appropriated funds. When the War Department seriously contemplated converting to scrip, it requested the reactions of overseas theaters to the feasibility of adopting scrip and to any possible drawbacks connected therewith. These included any possible implications for morale, and the disciplinary aspects of regulating soldiers’ use of scrip in the black market (although any involvement could not affect appropriated funds, since only Army-issued scrip would be acceptable in official channels). The former might arise if soldiers found themselves temporarily without local currency and unable to get to a finance office to acquire some. The overseas commands with serious currency control problems were unanimously in favor of scrip. Those theaters whose currency control problems were slight uniformly opposed the introduction of scrip. The Middle East Command contended that the administrative difficulty connected with conversion to scrip would outweigh by far any advantages to be gained in the Middle East. The Mediterranean theater likewise complained. The India-Burma Theater opposed scrip because it had only 19,000 men and was phasing out on 30 June 1946. The civil affairs division of the War Department special staff favored Treasury’s proposal to institute scrip. It reasoned that if soldiers knew they could not convert local currency into dollar credits, that they would have much less desire to accumulate sizable quantities. Since the demand for local currencies had kept foreign economies constantly inflated, the cessation of this demand would have a stabilizing influence. When the War Department received replies from the large overseas theaters favoring scrip, a conference was called for April 1946. Attending were fiscal and staff representatives from the European theater, the Mediterranean theater, and the Pacific command, as well as War Department representatives from G-1 (personnel), the operations division, the budget division, and the office of the chief of finance. The consensus of the conference was that scrip should be introduced as quickly as possible. The chairman of the conference, Colonel Pforzheimer, therefore proposed to the budget officer that the War Department adopt a scrip. Colonel Pforzheimer felt that its greatest advantage was that its circulation within the military enclave would be exclusively controlled by the Army. A month and a half after the budget officer received the conference’s recommendation, he proposed to the secretary of war the production of military payment certificates. He also mentioned that around 1 August 1946, the British Army ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 316 planned to adopt a similar scrip (termed canteen money and eventually named British armed forces special vouchers) to regulate excess conversions arising in its zones of occupied Germany and Austria. He further proposed that the Pacific command be allowed to run a trial on scrip with the Allied military type A yen, which had originally been prepared for use in Korea, but was mostly sitting in vaults. If this experiment proved successful, the War Department would adopt scrip for other overseas commands. Robert P. Patterson, secretary of war, approved both proposals. The above text appears in my own Comprehensive Catalog of Military Payment Certificates. I do not know when I last read it, but like many things, I had some new ideas from rereading it. The first thing I thought was that Colonel Pforzheimer could be the patron saint of MPC collecting because of his role in the April 1946 conference. That sent me to the Internet to learn more about the colonel. I have not (yet) learned a great deal, but I have learned something. First of all, his full name was Carl H. Pforzheimer. He died in 1996 at age 89. What a shame. It might have been possible to interview him about the April conference and other MPC matters if I had been more astute. I have added his first name, initial, and life span (1907-1996) to the MPC book. That is a very small addition, but still worthy of inclusion. Now for the more interesting part. Carl H. Pforzheimer was a collector. He, his father, and his son (all named Carl H.) were book collectors on a big scale. An interview could have been even more fruitful because he had that defective collector gene. All three Pforzheimers were Wall Street mavens and very wealthy. The obituary states that our Carl served in World War II. My guess is that he received a direct commission and served only a few years during the war, but I intend to do more research in this area. The paragraph above after the introduction of Colonel Pforzheimer includes some details that are well known among collectors about use of Series 100 yen type A as an experimental scrip. It also introduces British armed forces special vouchers and casually introduces the term “military payment certificates.” It would be entirely different to say that production of a scrip issue was recommended, but this statement clearly indicates that serious consideration had been given to what the new issue would be named. As far as I know, we collectors do not know how, when, and by whom the military payment certificate name was coined. Many other names were of course possible. I would love to know the details of the decision. Moving on. The creation of Series 461 was quite remarkable. A very interesting letter from A. W. Hall, director of the BEP, to Harland Wilbur, president of Tudor Press, dated 2 August 1946 outlines the entire process with significant details and gives a clue to the future. Dear Mr. Wilbur: I have been advised that the recent contract you entered into with this bureau has placed you in an embarrassing position with some of your commercial customers. The purpose of this letter is to give you as much of the background, as is permissible, on a project that is classified “top secret” by the War Department. If you feel that this letter will, to some degree, pacify your customers, you are authorized to allow them to read it. Of all the work we had to perform for the War, Navy and State Departments during the war, none nearly approached the urgency of the one you are now engaged upon. For the first time the War Department set aside army planes for our use in dispatching material and personnel to any point in the United States. It was with the greatest reluctance that we approached you to undertake this work since you are already engaged in the printing of Siamese currency, which is desperately needed by Siam. After failing to procure the services of other commercial printers, we were forced to persuade you to take on the work. This could only be done by setting aside the Siamese currency. After you agreed to take over the work, ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 317 we forwarded to you on July 26, by a special army plane, glass positives and printing inks. The records show that you had to photo- compose and make plates for six separate designs. It was then necessary to print the backs in two colors, allowing an interval sufficient to permit them to dry and next print four colors on the face. Following the printing you had to prepare the printed work for shipment. Although a period of twenty-four hours is required for shipments to this bureau, we received the first one at 1 P.M. on Monday, July 29. This accomplishment we consider to be truly amazing, particularly in view of the fact that the paper had been made only a few hours before it was printed. Since your first delivery on Monday, we have received an additional shipment of 40,000 sheets. You promised to continue to supply us as nearly 50,000 sheets daily as possible, which will enable us to process the work and make complete delivery of the first order to the War Department before September 1. This projected program exceeds our original expectations by more than a month. We have been informed that the situation is so critical that delivery cannot be completed too soon. I feel certain that when your customers know the full story behind this important project, and what it means to the United States Government to expedite it as much as humanly possible, they will be glad that they made a sacrifice in behalf of their country. When the Secretary of the Treasury and the Secretary of War learn how diligently you are meeting the demands placed upon you, they will join me in expressing gratitude and thanks. Very truly yours, A. W. Hall Director Even as we celebrate the 70th anniversary of the birth of MPC, new research is being done and discoveries are being made (see the story in the last issue of Paper Money about the World’s Fair of Money® Stack’s-Bowers sale of MPC). I think that this is wonderful. Series 691 first printing $5 specimen (from the Paymaster Collection) under incandescent light and similar first printing note under ultraviolet light (photo by Joseph Boling). Ultraviolet sensitive inks were the secret process introduced with MPC in 1946. Boling Continued they are introduced to the paper before it has become paper, while it is still a free-flowing slurry. Inclusions commonly available in 1946 were colored bits of thread, fragmented paper strips, or planchettes (small paper discs). Embedded metallic threads were just coming into use (Britain added a metallic thread to their white notes in 1944, in response to Germany’s Operation Bernhard counterfeits). Holograms and optically variable ink did not yet exist. The designers chose planchettes—and the low end of that choice as well. Plain paper planchettes in two colors (red and blue), 1.3-1.5mm in diameter, would be mixed into the paper slurry when the paper was made. Higher tech planchettes existed—ones with ultraviolet (UV) light sensitivity and ones with tiny threads embedded in the planchettes. Those were not selected. However, a cutting edge security feature was also selected—UV-reactive inks. Contemporary documents refer only to a “secret process” for this additional security feature. We don’t know ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 318 whether UV-emitting equipment was available to finance offices in the field (or even at theater level). But obviously somebody intended to use this feature of MPC to separate genuine notes from bogus ones at some level of enforcement. Traditionally, the underprint inks of notes (the non-intaglio inks) have been called tints. Since MPC have no intaglio frames or vignettes, we refer to the background colors as the tints. On each MPC at least one of the tint inks on the face is UV-reactive (usually a blue-green ink that fluoresces golden yellow under long-wave UV illumination). In most cases, the serial and position numbers are also UV-reactive—they turn brown. In addition, on some certificates major design elements or a second tint color are also UV reactive (and other parts are completely non- reactive, giving a sharp contrast between the design components when viewed under UV light). For instance, on the series 471 $10 note, the red frame and ornate counter at upper left are black under UV, while the red text and counter at lower right are brown, as are the serials, position numbers, and series designation (all in addition to the golden yellow of the blue-green tint). MPC under UV can be spectacular. As you would have expected, MPC were indeed counterfeited. MPC were authorized to be used only by GIs, their dependents, civilians attached to the military forces, and some diplomatic personnel. But GIs spent MPC on the local economy (in violation of regulations), and merchants accepted them (although there was a continual risk of an unannounced conversion to a new series, at which time notes in the hands of unauthorized users would not be exchangeable and would become worthless literally overnight). Since notes traded in commerce outside the gates, entrepreneurs outside the gates copied them. For this column I have counterfeits of five series of MPC, showing a wide variation in quality. Series 461 was probably the easiest series for forgers. The notes are primarily red and blue. Remember that the planchettes used in the paper are also red and blue. This means that the fakers could print imitation planchettes using the same plates as the major designs and tints, greatly simplifying their work. No other series could be replicated using so few colors. Of course, if the counterfeiter chose to ignore the planchettes, as many did, one or two passes through the press were saved. Figures 1 and 2 (below) are genuine and counterfeit series 461 $10 notes. What appears to be a light blue tint is actually three colors—light blue, blue-green, and violet, all intertwined so as to make it difficult for counterfeiters to separate the colors. Note also that the tint is pictorial, showing images of leaves and stems—more detail intended to thwart copiers. Figures 3 and 4 show the three tints near the lower right position number—genuine in 3, counterfeit in 4. You can see how well this counterfeiter has separated and copied the colors. Fig 3 also shows a genuine red planchette, partly buried in the paper. But the counterfeiter has not succeeded in copying the ultraviolet characteristics of the tint inks (he probably didn’t even know this feature existed). Figure 3 Figure 4 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 319 Figure 5 (below) shows both notes under UV light; the genuine note (at top) is much brighter because of the UV reaction of the blue-green tint. Serial numbers are hard to copy. First you have to match the font, then you have to find a numbering machine with eight positions. Alternatively, you can typeset the first five or six digits of the serial, and cozy them up to a numbering machine with only three or two print wheels. Figure 6 shows serials on two series 461 $10 notes—genuine at top, counterfeit below. You can see that the counterfeiter did not make an exact font match. There also seems to be a slight horizontal and vertical displacement between the 5th and 6th digits of the serial. This counterfeiter (not the same one who made the fake of figures 2, 4, and 5) may have used the technique I just described. (You can also see a printed “planchette” near the counterfeit serial number.) What printing technology was used for the main effort - the principal plate and the tints? Recall that the genuine piece is printed by offset lithography, for all elements except the serials, position number, and series number (all printed in one pass in dark blue letterpress). Lithography of either sort (offset or direct-plate) requires a fairly substantial press. Many counterfeiters don’t have the capital needed to acquire such a press. A small platen press printing 3-4 notes on a sheet may prove to be perfectly adequate. That technology is letterpress (also known as typography). That’s how the note of Figure 2 was printed. Typically you see ink ridges along the edges of printed elements using this technology, unless the printer is very adept at barely kissing the paper with the type. This printer was adept—there are almost no typical letterpress diagnostics present on this note. But a good place to look for them is on thin straight lines and at corners. Figure 8 shows the upper left corner of this note, with the ink ridges visible on the horizontal frame border and on the design element just below it. Figure 7 shows the same location on the genuine note, printed by offset lithography (and also showing a genuine red planchette on the note’s top edge). Now for something completely different. Figures 9 and 10 show genuine and counterfeit series 472 $10 notes. Notice how muddy the counterfeit looks. In this case the counterfeiter created a screened image of the black plate, including the black portion of the tint, and even inserted screen dots into areas that should have no black content. Figures 11 and 12 show one of the small numbers “10” in the counter at top right. On the genuine note, the three face tints (light blue, dark blue, and blue-green) are overlaid by the wavy black lines of the main plate to make a very dense complex of lines (figure 13). The Figure 6 Figure 8 Figure 7 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 320 counterfeiter used only one color (light blue) under the black wavy lines and all the new black dots (figure 14). It’s dense, but not very pretty. Figures 15 and 16 show these two notes under UV illumination. The counterfeit remains black and blue; the genuine note’s main black face plate turns brown in its entirety (along with the serials, position number, and series number), with golden rays on the right 80% of the note. On the back (not shown), the purple lathework tint is replaced on the counterfeit by a uniform screen of brown dots in parallel lines. Only one accidental planchette is apparent (accidental because it was copied from the original note and left as brown). This letterpress counterfeit was probably made in Japan or Korea. I bought it at the Tokyo International in 1998, where it was offered as a genuine note. Jumping ahead almost twenty years brings us to Vietnam. My first VN counterfeit is a series 641 $10 note. The face is done fairly well (figures 17 and 18), the back somewhat less nicely. Under Figure 17 (above) Figure 18 (below) magnification you can see lots of detail loss, but in-hand, the face is deceptive except for the crude serials. The main plates of the counterfeit are lithographed face and back. The lines of the orange tint on the back and the overlying brown wavy lines of the main back plate are much thicker than the same lines on the genuine, giving the back of the counterfeit a muddy look (figures 19, genuine, and 20, counterfeit). Figure 9 (above) Figure 10 (below) Figure 11 Figure 12 Figure 13 Figure 14 Figure 15 (above) Figure 16 (below) ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 321 As on the genuine series 472 note above, there are three colored face tints (light blue, blue-green, and orange) overlaid by brown wavy lines from the main face plate. The counterfeiter has omitted the light blue color. The serial prefix and suffix are lithographed (as are the position numbers); the eight-digit letterpress serial number is irregular and crudely printed, especially at the left end (figure 21). Under UV, the genuine serials turn brown and the note lights up well (figure 22). No imitation planchettes are seen on the counterfeit. Figure 21 (above) Figure 22 (below) Series 641 gave way to series 661; I was there for the conversion. Figures 23 and 24 show the genuine (as a short snorter) and my counterfeit. Again the lithographed counterfeit is a pretty good reproduction, and again one tint color has been omitted (blue green). It’s possible that the counterfeiter did not see it; on my genuine note that color is very faint (and on this note, the UV- reactive tint is the light blue one, not the blue- green one—and the serials only barely turn brown) (figures 25 and 26). As on the previous counterfeit, the letterpress serials are somewhat irregular on the series 661 counterfeit (figure 27). Figure 27 Figure 19 Figure 20 Figure 23 (above) Figure 24 (below) Figure 25 (above) Figure 26 (below) ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 322 Planchettes are attempted, but they are too regular and too small—a row of them across the bottom of the back, less than a millimeter in diameter and 6.5mm apart in triplets (figure 28 below). A couple more triplets are also buried in the main back plate—not at all deceptive. And now we reach the least credible MPC counterfeit I have (and I don’t recall ever seeing one worse than this one). See figures 29 and 30 for a pair of series 681 $20 notes. The counterfeit Figure 29 (above) Figure 30 (below) is crude letterpress, with even more crude serials (figure 31). It’s hard to tell whether some of the spots are intended to be planchettes or are just dirt. Figures 32 and 33 show this pair under UV. Figure 32 (above) Figure 33 (below) So when is a counterfeit not a counterfeit? When it’s a color changeling. See figures 34-36 for photos of a damaged series 591 50¢ note. Something encountered in circulation radically changed the colors of the bottom note in figure 34. But when you check the UV characteristics (original in figure 35 and changeling in figure 36) you see that the damaged note still has most of its UV reaction. Part of the right end (as seen by a viewer) has had its UV sensitivity removed or neutralized, but enough is still there at the left end to show that the off-color note is genuine. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 323 Figure 35 (above) Figure 36 (below) Send any questions to joeboling@aol.com. Sale of the Paymaster Collection by Fred Schwan I could not make it to the Anaheim American Numismatic Association (aka World's Fair of Money) until Wednesday August 10th. That meant that the day would be really busy. Actually, that was good because I was nervous about the sale of the Paymaster collection that evening. I was interested in buying a few lots and was especially interested in seeing the action. There had never been an event like this for MPC collectors and I was not the only one to think that. During the day I saw many MPC collectors whom I had not seen in several years. Everyone was excited. They were all in the hall early, but the mood was somber. I think that everyone was dealing with their spending limits. I know I was. Jim Fitzgerald was the auctioneer for Stacks- Bowers. That seemed to be fitting and appropriate to me. Jim had been the auctioneer for Heritage ten plus years ago for the first sale of a first PCS MPC book (progressive, composite, specimen). That sale was at a Florida United Numismatists auction. The book was of Series 681. It is hard to believe that I can say this, but the sale started out a little weak with the early lots-- high grade replacements--selling for less than the low estimates. I was very surprised when the uncirculated Series 471 $5 replacement did not receive a bid, but the action was too fast and intense for me to think too much about it at the moment. I found out later that a dealer who had been too slow at the moment had bought the replacement at the end of the night for the opening bid. While this was not the crushing record that I expected, it was still a healthy price with juice at $10,575.00. Shortly thereafter was the important sale of a Series 481 $5 certificate that we are describing as being from an unrecorded fourth printing. Only one such item had been known in collections. Over the years, very high estimates had been discussed for this single note. Now another, similar note was confirmed and being sold. It was the first recorded sale of this fascinating note. Would it be a break out or a bust? Well, I suppose as you would expect, it was neither. It sold for $7,050 (with juice). That seems to be a just respectable price to me. I have some more thoughts on that below (after the Series 521 $5 replacement). To me, the Series 521 $5 uncirculated replacement was the key item in the sale. Oh, I forgot to mention, it is from the second printing. This is a very interesting certificate that takes some study to appreciate. This is a replacement from the second printing. The total printing of the regular issues was only 800,000. These notes are very scarce to rare. Not surprisingly, no replacements were known of this note until the Paymaster Collection. The replacement in the sale is serial number E00624014 (position 27). Without going into detail (perhaps we will do the detail some time here), all of this demonstrates that this replacement is from sheet number 14. This does not actually prove anything, but it supports the notion that not many replacements were printed. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 324 It sold to a floor bidder for $18,800 (including juice). That is a record price for a single military payment certificate. Only a few lots later was another candidate for a record: uncirculated second printing Series 541 $5 replacement. Before the Paymaster Collection there were only a few of these replacements known by type with none in high grade. It sold for a little over $10,000 ($10,575 including juice) to a dealer on the floor. I think that it was a great bargain. The rest of the sale was of MPC specimens Series 591-701. The formats were a little different, but every series was fascinating in its own right. There have not been many sales of MPC specimen sets in the past so this was uncharted territory. Most of the sets sold at the opening bids. Again, I thought that they were great bargains. The exception to the opening bid comment above was the Series 701 specimens. This set included the first examples of fractional denominations of Series 701 and was a highlight of the entire sale. All of the fractional certificates generated floor action, but still I thought that they sold at bargain prices--about $3000 each. As exciting as all of the above was, they were the preliminaries. The remainder of the sale consisted of three composite impression books (Series 461, 471, 472, 481) and a Series 701 progressive, composite and specimen book (PCS). Note that all four of these books feature sheets of four of each denomination. The PCS book includes specimen and proof printings. All of the composite books sold. The first three (Series 461, 471, 472) sold in the estimated range. The fourth (Series 481) was another bargain. The Series 481 book sold for the opening bid ($11,750). That was a great, but subtle, bargain in my humble opinion. The first three books consisted of replacement certificates. Great to be sure and easy for collectors to understand. This Series 481 book consisted of apparent regular issue notes except that the serial numbers for the $5 certificates are from the fourth printing as described above. The example above sold for $7,050. This book has four of those! Like I said, the book was a great bargain! The last item was the highlight of this or any MPC sale: the only reported and newly discovered Series 701 Progressive Impressions, Composite Impressions, and Specimens. The estimate was $100,000 to $150,000. By the Stacks-Bowers rules, that made the starting bid $60,000. It did not take long. Auctioneer Fitzgerald asked for $60,000. After a short pause the bid was placed. The auctioneer asked for an advance and receiving none, counted it down. It was sold. There was a small round of applause and the sale of the Paymaster Collection, the greatest MPC sale ever, was history. I stood up and announced to the assembled throng that there would be a mini Fest across the hall. The eighteen MPC fans in attendance had behaved very well in the auction hall. They were quiet and mannerly. Not so at the mini Fest. Everyone was excited. Some because they had obtained something for their collections (or inventories) others for witnessing MPC collecting history. Bill Myers distributed a mini Fest certificate that he had prepared for the convention and sale. A challenge was issued and (largely) met and a few pictures taken. What will history say about the auction? Good question. It was certainly very important from an MPC research point of view. I think that we still have things to learn from the material sold here. The catalog was well done and is now an important addition to an MPC library. Note there are two varieties of the catalog! There is a perfect bound which was sent before the auction and a spiral bound that was available at the sale. As always prices realized are as difficult to evaluate as they are to forecast and I am not even going to try--at least not now. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 325 PMGnotes.com | 877-PMG-5570 United States | Switzerland | Germany | Hong Kong | China | South Korea | Singapore | Taiwan | Japan THE CHOICE IS CLEAR Introducing the New PMG Holder PMG’s new holder provides museum-quality display, crystal-clear optics and long-term preservation. Enhance the eye appeal of your notes with the superior clarity of the PMG holder, and enjoy peace of mind knowing that your priceless rarities have the best protection. Learn more at PMGnotes.com 16-CCGPA-2889_PMG_Ad_NewHolder_PaperMoney_JulyAug2016.indd 1 5/27/16 8:12 AM Central States Numismatic Society 78th Anniversary Convention April 26-29, 2017 (Bourse Hours – April 26 – 12 noon-6pm Early Birds: $125 Registration Fee) Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: www.centralstates.info Bourse Information: Patricia Foley (414) 698-6498 • foleylawoffice@gmail.com Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive • Call (847) 303-4100 Ask for the “Central States Numismatic Society” Convention Rate. Problems booking? - Call Convention Chairman Kevin Foley at (414) 807-0116 Free Hotel Guest and Visitor Parking. • Numismatic Educational Forum • Educational Exhibits • 300 Booth Bourse Area • Heritage Coin Signature Sale • Heritage Currency Signature Sale • Educational Programs • Club and Society Meetings • Free Hotel Guest and Visitor Parking • Complimentary Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois AN INVESTIGATION OF THE POPULATIONS OF MPCs KNOWN IN COLLECTORS’ HANDS by Carlson R. Chambliss When I first met Fred Schwan way back in the 1990s he asked me how many MPCs of all types I thought existed on the outside. I suggested about 500,000 notes in all, and he agreed with me that this was probably a pretty good guess. At that time only about 2000 MPC replacements were recorded, and since then this total has roughly doubled. A ratio of 100 / 1 or perhaps 200 / 1 seems reasonable for the numbers of normal notes versus replacements, and so a revision of the estimate I made in the 1990s might seem logical. This might bring the total closer to 1,000,000 than to 500,000, but both totals seem fairly realistic. Incidentally my estimate for the total number of large-size U. S. Federal notes including Nationals (1861-1929) is 800,000, so these two totals are more or less the same. Many MPCs, however, are of little interest to serious collectors. This would be particularly true of really common series such as 641 that are in well circulated condition, and many such notes will probably continue to remain outside of numismatic channels. When these items are taken to American Legion or VFW posts, however, they can serve to remind younger veterans of the sorts of “funny money” that was once used by GIs in military bases in foreign countries. At one of the MPC Fests that are held annually in Port Clinton, Ohio, I gave a presentation of the relative rarities of normal (i.e., non-replacement) MPCs. Although Douglas Bell is to be congratulated on his attempts at obtaining censuses of all MPCs, his data are far from complete and a fair amount of guess work and extrapolations are needed to come up with totals that look realistic. We do have very good data on the series that were not normally issued (i.e., the Series 651 fractionals and the Series 691 and 701 notes), but for the other series only intelligent guesses are presently possible. I usually regard there as being a total of 91 different notes in these series, since I tend to think of the “left” and “right” varieties of the Series 481 $1 notes as being distinct major types. All of the normal fractional and $1 notes can be regarded as plentiful when one disregards special printings for some of these, but naturally some are more common than others. Series 641 notes of the lower denominations, for instance, are hugely common, while Series 591 notes are moderately scarce. Among the 91 varieties of normal MPCs that were regularly issued, almost all of the rarities are among the $5 notes. Why is it that the penultimate denomination rather that the top value ($10 for 10 of the 13 series) is the scarcest for most series? I think that the major reason for this is that there were never any $50 and $100 MPCs and $20s only appeared with the three last series used in Vietnam. To make fairly large payments with MPCs $10s would normally be preferred rather than larger numbers of $5s. The four rarest $5 MPCs are definitely those of Series 471, 521, 541, and 591. Usually the Series 471 $5 note has been considered the rarest of this quartet, but that is true only for notes in strictly uncirculated condition. The Series 471 $5 MPC is often rated as the rarest of the $5 MPCs, although in fact it is the third rarest of the regularly issued MPCs. Most of the Series 471 $10 replacement MPCs are in high grade as is indeed this example that is also from my personal collection. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 328 Series 591 and especially Series 541 are definitely rarer in more typical grades such as VF or XF. Series 521 then comes in as number four on this rarity scale. At the other end of the rarity scale I would regard the Series 641 $5 as being more abundant than Series 661 when notes in all grades are considered. Series 661, however, is by far the most common $5 MPC for notes in CU condition, since there are several large hoards of these. For the other seven $5 notes I would regard the MPCs of Series 472 – 611 – 481 – 651 – 461 – 692 – 681 to fall into that sequence from scarcest to most abundant, but some people may differ from me on the relative abundances of some of these series of notes. The Series 541 $5 MPC is rated as the rarest of the normally issued MPCs, while the $10 of this series is a rarity in replacement form. These notes, which are from my personal collection, are in choice CU and XF condition, respectively. The items in the Paymaster Collection were somewhat better, since the notes in that sale were both replacements, the $5 graded CU-64 (much the finest of the three known) and CU-65, respectively. The latter is also the finest known. Of the ten known $10 replacements mine is the third finest known. The Series 461 $1 and $5 specimen notes that were taken from a booklet. These are from my collection, and they have attached tabs that are typical for these. They also feature SPECIMEN perforated cancellations that are normal for specimen MPCs of the first three series. The specimen notes from the Paymaster Collection were unusual in that they lacked these cancels. The Series 591 $5 normal issue and Series 611 $10 replacement from my collection. The former depicts Ann Izard as painted by Gilbert Stuart, but the resemblance to a Japanese Geisha is striking. The latter portrays an allegorical female, but her resemblance to Marilyn Monroe is also striking. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 329 There are also 13 different $10 notes for these series, and in most cases they are significantly more abundant than are their $5 counterparts. The exceptions begin to appear when the $10 note becomes the penultimate denomination rather than the top value as is the case for Series 661, 681, and 692. For those three series the $20 notes are more abundant than are their $10 counterparts. By a very wide margin the $10 note of Series 641 is the most abundant for this denomination. This is one of the very few MPCs that often sells for significantly under its face value when in only F-VF condition. At the other end I think that it is almost a dead heat between Series 541 and 591 for the title of the rarest regular $10 MPC. Series 661 is also decidedly scarce. I would put the other nine $10 notes in a sequence Series 471 – 692 – 611 – 521 – 651 – 472 – 481 – 681 – 461 in that order from scarcest to most abundant, but some persons may differ from me on a few of these relative ratings. Series 461 $10 notes are relatively common in part because they had a huge printing of more than 40 million examples, a total that is exceeded by no other type of MPC. Although scarce in gem CU, it is an easy matter to assemble a set of all seven values of Series 461 in F-VF condition. These notes were in circulation for only about six months, but it is my opinion that many persons were confused by the fact that all notes of this new and still rather unfamiliar form of currency that they were holding had to be turned in on C-day for a new issue of currency, and consequently numerous Series 461 MPCs were left unredeemed or unspent. Series 471 MPCs were in circulation for a longer period of time, but by then persons using them were aware of how the currency had to be exchanged on short notice. As a result Series 471 notes are far scarcer than Series 461. For the $20 notes there is no debate whatsoever as to relative rarities. Series 681 is the most abundant, while Series 661 is the scarcest with Series 692 falling in the middle of this rarity scale. None of these, however, are rare, since as the top values these notes accounted for a large percentage of the total dollar amount of MPCs in circulation where these series were in use. In the presentation that I gave in Port Clinton, I also offered “guesstimates” of the total populations of the rarest normal MPCs. For the $5 notes I suggested totals of 250 for Series 471, 400 for 472, 350 for 521, 150 for 541, and 200 for Series 591. For the $10 notes my estimates were 325 for Series 541, 350 for 591, and 400 for Series 661. At that time I considered a figure of 500,000 to be a realistic total for all MPCs, but as I have indicated this total may need some upward revision. That might lead me to consider estimates for the scarcer $5 notes as being more like 375 or 400 for 471, 600 for 472, 500 for 521, 225 or 250 for 541, and 300 for 591. With such revisions concerning the $10 notes totals of 450 for 541, 500 for 591, and 600 for Series 661 would seem about right. Among the other varieties of “normal” MPCs in the 13 series that were regularly issued, I would expect that the populations of each variety would be well over 500, and figures of 1000 or more examples would seem to be probable for almost all of these varieties. If the total population of MPCs approaches one million for all series, it follows that for a really common series such as 641 the total census would be something like 250,000 to 300,000 examples for all seven denominations. Among the unissued MPCs, we now have a good idea of what presently exists in collectors’ hands. For several years Marvin Mericle was keeping a careful census by serial numbers of the numbers of the known Series 651 fractional notes. It seems that he recorded about 90 each for the unissued 5c, 10c, and 25c notes of this series. The 5c notes have sheet position numbers 63 or 74, the 10c notes have numbers 66, 69, or 82, and the 25c notes numbers of 59 or 78. The earlier known 50c notes had numbers 7, 72, or 84. Although all of the three lower denomination notes are in CU, a few of the 50c notes are in circulated grades. Apparently these circulated for a very short time at Wheelus Air Force base in (pre- Qadhafi) Libya. In May, 2002, however, a sizeable and previously unrecorded group of 50c notes appeared on the market. There were about 120 notes in this group (all CU), and all have position number 73. The very latest estimates would put the populations of Series 651 fractionals at very nearly 100 each for the three lower denominations and about 225 for the 50c notes. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 330 A great deal has been written about the numbers and status of the unissued Series 691 and 701 MPCs, and I think that we now have a fairly good picture of the numbers of notes that we should expect. Two things immediately became obvious to all who first handled these notes in the year 2000. Both series exist in two radically different printings, and these differ considerably in their chemical and UV reflection properties. The notes released in sets to those who made contributions to the American Red Cross or the USO were all of the second printing that was apparently printed in about 1984. There were precisely 50 sets of four distributed for each series, and the sheet position numbers are always 31, 16, 14, and 5 for Series 691 and 35, 1, 17, and 5 for Series 701 for the $1, $5, $10, and $20 notes of these series, respectively. Although the $1 notes were printed in the standard 70-subject sheet format, the higher values used some format other than 50 subjects per sheet. Using 56 subjects per sheet, I can reproduce the sheet numbers from the serial numbers fairly easily for the $20 notes, but for the $5 and $10 notes there appear to be gaps in the serial numbers that are needed to bring the serial numbers into line with the sheet position numbers. Possibly 28 subjects per sheet might also work, but I don’t think that this mystery is completely solved. Incidentally the first printings of these notes that were made about 1970 used the standard 50-subject sheet format used for all other larger MPCs, and there are no problems whatsoever with the position numbering of these. A very small number of Series 701 notes of the first printing do exist in private hands, but they are great rarities. At present only three sets are known. I believe that all have position numbers of 53, 38, 12, and 9 for the $1, $5, $10, and $20 notes, respectively. All three sets have two holes punched into their designs on their left sides. The dollar values in the Paymaster auction will probably attract less attention than will the Mark Twain fractionals, but the person who purchases lots #10226 through 10229 (this really should have been offered as a single set) will have the only first printing specimen set of this series in private hands that is free of holes. It should be noted, however, that enormous quantities of these notes do exist in government custody. At present they are mostly in Fort Jackson outside of Columbia, SC, and some of these are on display at the U. S. Army Finance Corps Museum that is located on this base. The situation with the first printing Series 691 notes is quite different. Fairly large quantities of the $1 and $20 notes were released in about the year 2000, and they should not be regarded as rarities. My estimate is that there about 500-700 of the first printing $1 notes and about 300-400 of the $20 notes presently in numismatic channels. The sheet position numbers are usually 68 and 28, respectively, but I have seen notes with a few other possibilities. There are a number of $1 notes that have VOID printed on their faces and either the American Red Cross or the USO printed on their backs, but these are purely private fabrications. The situation with the first printing $5 and $10 notes is quite different. These have sheet position numbers of 40 and 13, respectively, and they are much rarer than their second printing counterparts. It is Of the various unissued MPCs (i.e. the Series 651 fractionals and the Series 691 and 701 notes) there are only two varieties that exist in replacement form. These are the first printings of the Series 691 $1 and $20 notes, and they are also by far the most abundant of these various issues in normal form. The Paymaster Collection was a bit unusual in that all of its notes from Series 591 through 701 were either specimens or proofs. My collection is different since all my notes of this vintage are either normal issues or replacements. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 331 not clear just how many of these notes exist, but MPC dealer David Seelye is of the opinion that about 12- 15 notes exist for each of the two denominations. The first printing $1 and $20 notes of Series 691 exist in replacement form. Probably about 10- 12 replacement notes exist for each value, and the $1 notes have position number 47 while the $20 notes have position number 1 or 23. The big question about Series 691 and 701 is does the government plan at any time in the future to release any of the large quantities of these notes that it presently has in storage? If there were any large-scale releases of any types of these notes, such actions, of course, would have a huge effect on the market values of these items. For many years Fred Schwan has been keeping a detailed census of the numbers of MPC replacements, and the syngraphic community can be thankful to him for keeping these detailed records. Shortly he shall be publishing the fifth edition of his MPC catalog, and that will contain new census data that have not yet been seen in public. I expect that the total number of MPC replacements in this census will either be just under or just over a total of 4000 such notes. In my catalog of MPCs that was published in 2012 I quote the total numbers of replacement MPCs for several earlier censuses. These data are as follows, and I am also giving some growth data that I calculated as shall be explained: total % growth per annum Schwan-Boling (1995) 1882 ------- Schwan (1997) 2000 3.20 % Chambliss (1999) 2109 2.71 % Schwan (2002) 2485 5.61 % Hessler-Chambliss (2006) 2996 4.79 % Chambliss (2012) 3560 2.93 % The sources of these totals are Schwan and Boling, World War II Remembered, Schwan, 3rd Edition MPC Catalog, Chambliss, U. S. Paper Money Handbook and Guide, Schwan, 4th Edition MPC Catalog, Hessler and Chambliss, 7th Edition Comprehensive Catalog of U. S. Paper Money, and Chambliss, Concise Catalog of MPCs, respectively. The growth rates are exponential rates per annum derived from these data and taking calendar years as whole years. For the entire 17-year interval, this rate is 3.82% per annum. Based on these data we can say that the census of recorded MPC replacements has been growing steadily at about 4% per annum. This total certainly will or already has exceeded 4000 notes, but whether it will approach 5000 asymptotically or sail right through this total number remains to be seen. With one exception replacement notes are recorded for all 91 of the normal MPCs that were regularly issued (by my definition given previously) plus the $1 and $20 first printing varieties of the unissued Series 691. The one note that should be there but still is missing is the $5 MPC of Series 651. Thus a complete collection of MPC replacements (i.e., lacking this unknown item) would contain 92 different examples, and a full set of these has been achieved by Fred Schwan. A few other collectors have achieved more than 80 different varieties. My own collection of MPC replacements now stands at 73. One has to settle for mixed grades on these. Some varieties are available only in CU or AU-CU, while a few are known only in VG or VG-F. No MPC replacements are excessively common, but several can be regarded as extremely rare. Apparently MPC replacements were printed in advance of the normal printing runs so that they could be quickly inserted into packs of the latter where there were cases of spoilage. Replacements for Series 651 are all extremely rare, apparently because there seems to have been very little spoilage in the production of this issue. On the other hand, a few MPC are relatively abundant when compared with their normal counterparts. An example is the Series 541 50c replacement that is not worth greatly more than its normal counterpart. Incidentally Series 541 features some replacements with very high serial numbers that lie well outside the production totals for this series. We are still uncertain as to why this is the case. The Paymaster Collection contains a truly fabulous selection of MPC replacements, and these shall fundamentally change the price structures for several varieties. As an extreme example let us consider the data for the $5 and $10 notes of Series 472. Prior to 2016 three replacements for the former ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 332 were known – one in G only, one basically new but with serious damage, and finally a single nice VF note. Two years ago I was the underbidder on the last of these, and I can thank my lucky stars that I did not acquire it for about $14,000. The Paymaster Collection features a single $5 note graded AU-58 and a set of all seven of these notes in uncut blocks of four in uncirculated that includes the $5 value. The data for the $10 replacements of this series are rather similar, the three notes that were previously known are all in either fine or VG condition. The Paymaster Collection contains a $10 replacement graded AU-58 and a block of four in new condition in the aforementioned book. Suddenly we go from three notes all in rather low grades to a total of eight, five of which are in very high grades. The same thing is true for the rare $5 replacement note of Series 471. Previously three replacements for this variety were known with grades all in the VG-F range. The notes that are being sold in August include one graded CU-65 along with the block of four in new condition that is in the specimen book. It is not really possible to give enough “hype” to lots 10230, 10231, and 10232 of this auction. These are officially described as composite impressions books of Series 461, 471, and 472. Each contains a full set of all seven values of these series in new condition and in blocks of four. Unlike normal specimen notes of this vintage these notes have no perforation holes, and so they can be classed as replacements that are in absolutely top condition. Whether or not these fabulous items will remain intact after this sale remains to be seen. They should, of course, be preserved in their original form, but collector demand will be huge for single notes of some of the rarer varieties in these sets. The fourth lot in this fabulous group will have a more predictable future. It consists of blocks of four for the notes of Series 481. These items, however, are non-replacement notes with serials at the high end of their production runs. Any tampering with this book (and especially any cutting apart of the blocks) would severely reduce its value, and no sane person would want this to happen. The Paymaster Collection also contains two great replacement rarities from Series 541. These are a $5 note (the third known) and a $10 note, both in CU-65. The later series in this collection are all specimens or proofs rather than replacements, so bidders will not have an opportunity to acquire a Series 591 25c note or a Series 611 50c note in replacement form in this auction. Both of these are presently acknowledged as unique. The Series 651 items are also all specimens rather than replacements. Before discussing specimen notes let me mention some of the hazards that can occur when acquiring rare MPC items. When the Series 651 fractionals first hit the market in complete set form it was felt that only a tiny number of these sets were in existence. An Ohio dealer paid $10,000 for a set of these, and for some time tried to it for $13,000. After a few years it then became clear that several dozen sets were available, and prices fell sharply. At the moment I have two sets of these in my collection. One I acquired several years ago at a price of somewhat under $3000 (though to be a very good buy at that time), but I recently acquired a second set in auction for only about a third of this amount. I may keep both sets, since for three of the notes the sheet position numbers are different. For the 5c notes, however, both have position number 74 and their serial numbers are near “clones” of each other. I would like to acquire a 5c note with the other available position number (#63), and I would offer my second #74 note in trade. Needless to say my note is in perfect CU condition. The only note of this set for which circulated notes exist is the 50c value for which a couple of notes in F-VF condition do exist. This was the very first variety of this rare quartet to hit the market, and prices as high as a few thousand dollars were paid for one of these. Today such as note would sell for little more than $100. The prices on the Series 651 fractionals appear to have stabilized, since we now know how many of these items still exist and no new notes have entered the market. Expect to pay something like $1000-$1200 for a set of these, and this appears to be a price that has remained stable for the past few years. I confess that I was an “insider” when I acquired my second printing sets of the unissued Series 691 and 701 sets, and soon prices rose on these. In the past few years the prices of these sets have remained relatively stable at about $2000-$2500 per set of four for either series. The prices for first printing $1 and $20 notes of Series 691 are quite a bit less, and I think that with some effort you should be able to acquire the $1 note of this printing for not much more than $100 and the $20 note for something like $200. I probably paid much too much, however, for my first printing $5 and $10 notes of Series 691 and maybe a bit too much for my replacements of the $1 and $20 notes. In the case of the second printing ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 333 sets we know how many of each exist – 50 sets of each and no more – but for the first printing $5 and $10 notes and the replacement $1 and $20 notes, the numbers of items that exist are less certain – probably 12-15 examples each for the first pair and something like 10-12 items each for the latter duo. The Paymaster Collection includes items that have never been seen before, and it also has items in very high grade that were never previously seen in such condition. Persons who paid high prices for low grade examples of Series 472 $5 and $10 replacements will just have to swallow their losses. For several years the only specimen set of Series 661 that was on the market was a set in which some of the notes had severe gum stains. Now the sale in August will offer three of these sets all in perfect condition. If the set with gum stains has been put back together again (re-united so to speak), the collector who owns it will have to settle for a large loss. Although I don’t think that we are going to see anything quite as dramatic with MPCs as once happened with 1903-O and 1904-O Morgan silver dollars, prices can change dramatically when new supplies of a previously thought very rare item suddenly come onto the market. I have actually handled packs of first printing Series 701 MPCs at the U. S. Army Finance Corps Museum in South Carolina, but so far as I can determine, the Federal government has absolutely no intention of selling any of these to the public. All specimen MPCs are decidedly rare, and some possible varieties remain unknown even today. It is usually believed that typically about 200 specimen booklets were distributed to military channels for each new series that was issued. There is some question, however, as to whether specimen books for Series 481 and 651 were actually distributed in this fashion at the times when these notes were issued. Probably more than just a couple hundred booklets were released for Series 461, since it was felt that banks and other agencies needed to become aware of this entirely new type of currency. Specimen books were prepared for the unissued Series 691 and 701, but these had a much more limited distribution. Largely through the efforts of Fred Schwan and some other researchers, we now have a fairly good idea of how many specimen MPCs are in private hands today. Our census of known MPC specimens has been augmented considerably by the sale of the Paymaster Collection of MPCs by Stack’s-Bowers Galleries in August, 2016. It should be noted that the specimen notes of Series 461, 471, and 472 were normal replacement notes that received perforations spelling out the word SPECIMEN. Possibly this was the case also for Series 481, but no specimen booklets of this series that would have been distributed to military officials are presently known in either private or institutional hands. The specimens of almost all later MPCs (i.e., Series 521 through 701) featured serial numbers consisting of eight zeros. The unique specimen booklet of Series 541 features notes with replacement numbers but also with large holes. The most readily available (if that term can be used for any of these rarities) of the MPC specimen sets is Series 461. At least eight sets of these are known in private hands. These specimen notes feature various replacement numbers, and it appears that these notes were chosen randomly from surplus stocks of these. Some of these notes have been detached from the booklets, while other sets are still in their original holders that feature very plain thin cardboard covers. At least 14 additional specimen sets of this series are known in government hands. The recent Stack’s-Bowers sale featured an item previously unknown in private hands. Entitled “Composite Impressions of Military Payment Certificates” it consisted of seven blocks of four (5c through $10) of Series 461 with replacement serial numbers but without the specimen perforations. At the present time only one regularly distributed specimen booklet of Series 471 specimens is known in private hands, and someone years ago removed the $5 note from this unique item. At least 28 additional specimen booklets of Series 471 are recorded, but these are all in government hands. In the recent Paymaster Collection auction, however, a composite impressions book of Series 471 quite similar to that for Series 461 was offered for sale. All denominations are in blocks of four, and these have replacement numbers but without perforations. The situation with Series 472 is quite similar to that of Series 471. Only one specimen booklet of single notes is known in private hands, but at least 20 specimen booklets are known in institutional collections. The recent Stack’s-Bowers auction also featured an impressions book for Series 472, and like the others the notes inside have replacement serial numbers and are without perforation holes. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 334 Although some types of specimen notes were prepared for Series 481, it is quite possible that no specimen books containing perforated notes were distributed. The Paymaster Collection, however, did contain an impressions book for Series 481, but this time the notes had normal and not replacement serial numbers. These serial numbers were high, and thus they must have been printed late in the production runs of this series. For several years a single $5 note from the fourth printing of this series was known, but it seems that all of the $5 notes that were regularly issued were of the first three printings. The fourth printing notes, however, appear in these booklets. It seems that the Series 481 specimen booklet that was sold by Stack’s-Bowers was from the very last rather than from the earliest printings for this series. The next three series of MPCs remain great rarities in specimen form. Prior to the 2016 sale, in fact, no specimen notes of Series 521 were known. This auction did include a full set of Series 521 specimens along with an extra $10 note. On these notes the serials consist of eight zeros only without an initial or terminal letter E. For Series 541 a unique specimen book has been known for several years, but the 2016 sale featured a pair of sets of Series 541 that were more like proofs than specimens. These notes included no serial numbers or sheet position numbers, and they were in the form of vertical pairs. The unique specimen book features notes with replacement serial numbers and the notes are hole punched. Series 591 had one of the lowest printings of MPCs, and it remains a difficult series to collect especially in replacement form. A few years ago an intact booklet for this series was uncovered, and it remains unique. The Paymaster Collection offered a second specimen set, all having serial numbers G00000000G. The proofs offered are uniface items that probably are of less interest to most MPC enthusiasts than items that more closely resemble the finished products. Series 611 offers some rather plentiful replacements (i.e., the 5c, 10c, and $1 values), but the 50c note remains unique in this form. Prior to 2016 only a single specimen book was known. The Paymaster Collection included a full set of seven in specimen form with serials H00000000H and also a set of these notes in pairs but minus the $10 value. This time, however, these notes are indeed specimens and not proofs lacking any serial numbers. Series 641, which was in use in Vietnam for three years, remains by far the most abundant of all the MPC issues. Specimen sets of this issue are rare, however, and only three were known prior to 2016. The Paymaster Collection featured three additional sets, and two of these were attached together as pairs. Series 641 along with Series 461 remain the most “collectible” of the MPC specimen sets. Series 651 had a fairly long life in Korea, but it is a much more enigmatic issue than is Series 641 that it closely resembles. The fractional values were basically never issued and remained unknown to collectors for several years. The dollar values were indeed issued, but they still remain extremely rare when in replacement form. No specimens of Series 651 were known to collectors prior to the Paymaster Collection sale. It included a full set of all seven values with serial numbers A00000000A together with a set of pairs that lacked the $5 value. Prior to 2016 two specimen sets of Series 661 were known. One of these was part of a larger group that also included progressive proofs, while the other had been mounted using a harsh and basically indelible glue. The glue stains on some of the notes were fairly minor, but the $10 note showed some discoloration and the 50c had actually become damaged by the glue. For a while I was the owner of the three high values of this set, but I sold them a couple of years ago in what indeed proved to be a very wise move on my part. The Stack’s-Bowers sale in 2016 featured three specimen sets of Series 661, two of which were attached together as pairs, but none of these had any glue stains. Series 681 is the most “militaristic” in design of the MPC series, and it remains very popular with collectors. Although mostly common in normal form and for some denominations reasonably plentiful as replacements, this series remained unknown in specimen form to private collectors until very recently. In the year 2009 a large book containing 72 sheets of process proofs and specimens came to light and its transfer to a major collection was negotiated in a private sale. This book, however, will probably remain intact and it is presently in very strong hands. The Paymaster sale at least has offered other collectors the chance to own a set of Series 681 in specimen form. The sale featured one set of specimen singles and two other sets attached to each other as vertical pairs. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 335 Series 692, the last of the MPC issues actually used in Vietnam, is slightly more available in specimen form than is its predecessor. Two specimen books of this issue were previously known, and the Paymaster sale offered a third. Also in this auction was a set of specimen singles. All of these items feature the serial number E00000000E. Back in 2008 a large book quite similar to that for Series 681 that featured 72 sheets, each with four subjects, for Series 692 was offered by sale by Heritage Auctions. Both process proofs, uniface proofs, and specimens were featured in this book. It sold for $115,000, which was by far the highest price obtained up to then for an MPC item at a public sale. (It should be noted, however, that there were actually 288 individual notes in this book, although it seems unlikely that this unique treasure will ever be broken apart.) It does seem likely that a similar book was prepared for Series 661, since a full set of these in single form (rather than blocks of four) does exist in private hands. In the year 2000 significant numbers of two series of MPCs came to light that had never been issued. These were Series 691 and Series 701. As previously noted, Series 691 had two different printings that were made about 15 years apart. All specimen notes, however, would refer only to the first printing. The 2016 sale offered a set of Series 691 in specimen form, and these notes feature the serial D00000000D. The sheet position numbers are 8, 33, 32, and 34 for the $1, $5, $10, and $20 values, respectively, and these numbers are quite different from what appear on the normal notes. Although the $1 and $20 notes of this printing were released in some quantity, the $5 and $10 notes of this printing are very rare. In specimen form this set remains unique, and it has never appeared in the market prior to 2016. In the August, 2016 auction this set was offered as a single unit rather than as four separate lots. Probably the most exciting items in the entire Paymaster Collector sale were the specimen notes of Series 701. All featured the serial number F00000000F, and all of these notes were of the first printing whereas nearly all of the dollar notes of Series 701 on the market are of the second printing that is chemically quite different from the first printing that was made about 15 years earlier. The most significant items of all, of course, are the Mark Twain fractional notes that have never been sold before. I have stated previously that they were “forbidden fruit” rather like the gold certificates of Series 1934. Each note of this set was sold individually. That might have increased realizations, but it will certainly make it more difficult for someone to obtain a complete set unless the other bidders bow out and let a single individual buy all four lots.. The ultimate lot in this sale is the specimen book that contains 72 blocks of four of all eight values of Series 701. Naturally in this fantastic book there are 144 different proofs or specimens of the Mark Twain notes. Some of the progress proofs appear rather unexciting, but we will have to wait until when this sale is over to see what the realization will be, and this time the prize goes to a single bidder since it is a single lot. The amount should be higher than the prices attained by either the Series 681 and 692 proof and specimen books, but whether that is the case we shall soon know. I do wish to thank several persons for providing me with some of the data and several of the insights that went into the writing of this article. Foremost among these is Fred Schwan, who remains the world’s leading authority of the subject of MPCs. Also I wish to thank Douglas Bell, Dick Freyser, Marvin Mericle, and David Seelye for providing me with information on various aspects of MPC collecting and on individual MPC issues. BIBLIOGRAPHY Chambliss, Carlson R., U. S. Paper Money, Guide and Handbook, BNR Press, Port Clinton, Ohio, 1999 Chambliss, Carlson R., A Concise Catalog of U. S. Military Payment Certificates, Speckles Press, Kutztown, PA. Chambliss, Carlson R., and Hessler, Gene, The Comprehensive Catalog of U. S. Federal Large-Size Notes, 1861 – 1929, Speckles Press, Kutztown, PA, 2014 Hessler, Gene, and Chambliss, Carlson R., The Comprehensive Catalog of U. S. Paper Money, 7th Edition, BNR Press, Port Clinton, Ohio, 2006 Schwan, Fred, Comprehensive Catalog of Military Payment Certificates, 3rd Edition, BNR Press, Port Clinton, Ohio, 1997 Schwan, Fred, Comprehensive Catalog of Military Payment Certificates, 4th Edition, BNR Press, Port Clinton, Ohio, 2002 Schwan, C. Frederick, and Boling, Joseph E., World War II Remembered, BNR Press, Port Clinton, Ohio, 1995 Stack’s Bowers Galleries, The August 2016 ANA Auction, U. S. Currency, Anaheim, California, 2016 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 336 AAFES POGS by William Myers The events of 11 September 2001 led to increased U.S. military operations and thus military deployments. Military Payment Certificates (MPC) were not issued for these operations but there is a collectable numismatic issue available from this period. Army Air Force Exchange Service (AAFES) provides multiple services to the military deployed in support of Operation Enduring Freedom and Operation Iraqi Freedom. Post Exchanges (PX), barber shops, beauty shops, gift shops, movie theaters and food courts are among some of the facilities available. There is a significant cost in transporting goods from the United States to Kuwait, Iraq and Afghanistan and other overseas theaters. AAFES wanted to make maximal use of the available shipping weight for goods for the soldiers, and not use up part of that weight to ship coins for use in its facilities. They therefore instituted the use of lighter weight plastic discs (polystyrene, 1.5816 in (40 mm) in diameter) in the values of 5 cents, 10 cents and 25 cents as a substitute for change. They are “Gift Certificates”, as only the U.S. government can manufacture money, and are known as POGs. No 1 cent POGs were issued so prices were rounded off to the nearest 5 cents. They are printed on 29 by 40 inch sheets with 24 horizontal rows and 15 vertical rows. They are punched out of the sheet and shipped in trays with 500 POGs in a tray for the 5 and 10 cents and 400 POGs in a tray of 25 cents. They are shipped in boxes that contain 10 trays. “POGs” originally were a children’s toy which is modeled after the milk bottle caps that children collected and used to play a game in the 1920s to the 1950s. The Haleakala Dairy in Maui produced juice with paper caps on the bottles. One of these juices was a mixture of passion fruit, orange and guava. The first letter of each juice is the source of the name POG. POGs were then manufactured as toys. Since the equipment and material to manufacture POGs already existed the decision was made by AAFES to use POGs for change. There were 15 releases of AAFES POGs, but there were no 5 cents POGs issued for the 8th, 12th and 13th printing as there were enough already in circulation. The first POGS were a simple design and has “Gift Certificate” across the top, “AAFES” across the bottom and the denomination in the center on one surface of the POG. On the other side, the denomination is located at the top, “AAFES” on the bottom and three lines of text in the middle which state: “This gift certificate has a retail (line 1) value of (5, 10 or 25) cents and is redeemable (line 2) only at your BX/PX” (line 3). The background is white/grey on the 5 cents, brown on the 10 cents and red/brown on the 25 cents. For the 2nd to the 14th printing the denomination side was the same at the first printing except for the addition of Bassett on one 10 cents POG in the 5th printing and ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 337 the Pizza Hut and Taco Bell logo for the on POGs in the 11th printing. AAFES was replaced with EXCHANGE on the15th printing due to a name change by AAFES. Except for the 1st printing the background color of the POGs is blue for the 5 cents POG and is a photograph of water, green-brown for the 10 cents POG which is a picture of rust on a vehicle and red for the 25 cents POG which is a photograph of fire made by battleship guns. For the 2nd to the 15th printing the side with the disclaimer on it had a picture as the background. There were a variety of images used but some themes were military aircraft and equipment, classic photos, the Greatest Generation (noted as GG on the POG), Elvis Presley (6th printing), NASCAR, images from series 681 MPC (face of $1, $5, $10), Marvel comics, photo contest (9th & 11th printings) and U.S. presidents. There were also POGs with a metallic coating, three dimensional image and lenticular images (different images when tilted). The picture was replaced by the logo of Sprite, Coca Cola, AT & T and Red Bull. It needs to be noted that the use of a company logo on POGs was to show appreciation for the company’s support of military family support programs. Starting with the 5th printing there were POGs with and without the overprint OPERATION IRAQI FREEDOM and OPERATION ENDURING FREEDOM. OPERATION NEW DAWN replaced OPERATION IRAQI FREEDOM for the 15th printing. Starting with the 4th printing AAFES replaced BX/PX in the disclaimer and AAFES was replaced with Army Air Force Exchange for the 15th printing. There is additional information on the POGs with Elvis (©EPF {Elvis Presley Enterprises}), photo contest (photo credit), U.S. presidents (photo credit) and AAFES Commander (name & title). Errors do exist and they can be classified as being due to printing (missing ink, different color or one side printed off-center) and cutting (off-center, multiple cuts). The most sought after error is a POG with parts of 3 images on one POG. A total of 497 different POGs were issued (135 - 5 cents, 180 - 10 cents and 182 - 25 cents) with a face value of $70.25. They can be used in any AAFES facility, domestic or abroad. AAFES did produce two POG themed items that include a trifold POG holder in 2003, composed of 3 pages, each with 13 slots for POGs. One slot is to display the denomination side and 12 for each picture design. It cost $4.95, but the POGs would not stay in the slot so further issues were not manufactured. The other item is a 2008 calendar that featured the photograph contest winners from the 9th printing. There are 3 classification systems. The system used most often was an alpha numeric system created by Doug Bell and Steve Swoish. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 338 The printing is designated by a number for the printing followed by a letter for the POG (A-M with no I), then the denomination (5, 10, 25) and then 1 (for one each, later this was dropped). If it comes with and without an overprint then it is followed by W (with) or WO (without). For example 14D251WO is the 14th printing, POG D, 25 cents without overprint. The Standard Catalog of World Paper Money Specialized Issues has them listed after MPC from M121 to M591. The POGs with and without overprints are subcategorized as (a) for POGs with the overprint and (b) for the POGs without the overprint. The Concise Catalog of U.S. Military Payment Certificates list the POGs as number 1- 502 (five POGs were listed in error that do not exist). The POGs with and without overprints have separate numbers. Each printing of POGs was only printed once and issued. The last printing of POGs is the 15th printing dated 2011. The POGs available to collectors are those that have been kept or are being used in military facilities overseas. POGs turned in to AAFES in the U.S. are destroyed. Getting all of the POGs can be a challenge but the collector will be rewarded with an interesting numismatic item from the conflicts spawned by the attacks of 11 September 2001. REFERENCES Myers, William AAFES POGs, Funtopics Summer 2006 pp 14-16. Myers, William AAFES POGs, Funtopics Summer 2008 pp 57-58. Schwan, Fred. Military Payment Certificates. 4th ed. BNR Press 2002. pp 186-241. Schwan, C Frederick, Boling, Joseph E. World War II Remembered. History in your Hands-a numismatic study. BNR Press 1995. pp 402-411. Cuhaj, George S. Standard Catalog of World Paper Money Specialized Issues. 12th ed. 2103. pp.1243-1254. Chambliss, Carlson R. A Concise Catalog of U.S. Military Payment Certificates. Speckles Press. 2012. pp. 109-118. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 339 Fractional MPC A Venture into a New Collecting Area by Benny Bolin As a collector of numismatic related items since 1964, I have ventured into many different collecting areas. Coins held my attention until 1982 when I began to collect paper money. I have never looked back on that change. I began collecting fractional currency and South Carolina obsoletes and am still at it today, although I have sold most of both of these collections. Still having the collecting bug, it was intriguing when Fred Schwan brought up the idea of an MPC focused issue of Paper Money to celebrate its birthday and then said “You could write an article as well!” Since I did not collect MPC, I decided that before I wrote an article, I had to at least begin to collect it to get the full experience. But what area of MPC to collect? I decided to keep to my paper roots and begin with, what else, fractional MPCs starting with the five-cent notes and eventually moving on. But first I read the book—well two of them, the definitive works on MPCs by Schwan and Chambliss. The field of MPCs is truly a very interesting one. It has many of the same properties as U.S. fractional, small denominations, issued in times of need for small change substitutes, extremely beautiful and well engraved and full of history. There are thirteen issues of MPCs (fifteen if you count series 691 and 701) all but one of which had five-cent denomination notes issued. Two issues, series 611 and 651 were above my expense limit for a new collecting area. It is interesting to note that each series was issued on the same date that the next issue was withdrawn with no (very little) overlap. Fred breached his idea(s) in May which provided with an exceptional opportunity to see, learn and begin to collect MPC at the International Paper Money Show in Memphis (the last one in Memphis) in early June. Going around to a number of different tables/dealers and talking with collectors gave me a great start. Not only did I get to see almost the whole gamut of MPC, but I also learned about replacement notes, multiple printings in a series and other things like specimens, errors, etc. But wait—what about modern MPCs (POGs)? Yes, I came upon a few of those as well, also in the five-cent denomination. Series 461, was the first series and had 7,616,000 five-cent notes printed. It was issued between Sept. 16, 1946 until they were withdrawn on March 10, 1947. All denominations are similar, printed in light blue/gray on the face and red/brown on the back, with just a few differences in the designs. Series 471 was printed from the time series 461 was withdrawn until March 22, 1948 with a total printing of five-cent notes of 8,288,000. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 340 Series 472 was issued in two printings upon the withdrawal of series 471 until June 20, 1951 with a total five- cent printing of 7,960,000 notes. The different printings in each issue are easily identified by the serial numbers. Series 481 was issued when series 472 was withdrawn of until May 25, 1954. 23,968,000 five-cent notes were issued in four different printings. All of the fractional notes of this series had a vignette on the face of “Commerce” which was engraved by Marcus W. Baldwin. Series 521 was issued upon the withdrawal of series 481 and withdrawn May 27, 1958. 26,544,000 five- cent notes were issued in three different printings. This series was one of the first that began to have different colors and designs for the different denominations. All of the fractional notes of this series had a common face and a back design engraved by Arthur Wasserbach but of different colors, all bright. Series 541 was issued between May 27, 1958 and May 26, 1961. 18,816,000 five-cent notes were issued. The face vignettes on all the fractionals of this series were also engraved by Arthur Wasserbach. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 341 Series 591 notes were issued from the withdrawal of series 541 until January 6, 1964. 7,392,000 five- cent notes were printed. All fractionals of this series had a vignette on the right of the face of the head of the Statue of Liberty, but each denomination was printed in a different color. Series 611 was printed from January 6, 1964 until it was withdrawn on April 28, 1969. The five-cent printing comprised 9,408,000 notes. The face vignette of Liberty was based on a C.R. Chickering painting and was engraved by Arthur Dintaman. Series 641 was printed exclusively for use in Vietnam in three printings from August 31, 1965 to October 21, 1968. 22,848,000 five-cent notes were printed. The faces of the fractional notes all had the head of a female that was engraved by R. Bower. Series 651 was printed primarily for use in Korea. The designs are the same as series 641 except that a minuteman was added to the very left side of the note. These were withdrawn November 19, 1973 and 4,032,000 five-cent notes were printed. Series 661 notes were printed until August 11, 1969, the second issue printed exclusively for use in Vietnam. 23,520,000 five-cent notes were issued. The fractionals had the vignette of Hypatia painted by R. Seifert and engraved by J. Eissler. This same vignette was used on the backs of the $1 MPC in series 521. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 342 Series 681 was issued after series 661 was withdrawn until October 7, 1970. 14,112,000 five-cent notes were issued. The face show the nuclear submarine Thomas Edison and the back shows Maj. Edward White doing a spacewalk during the Gemini 4 mission that was engraved by E. Felver. Series 692 was printed after series 681 was withdrawn until June 1, 1971. 14,112,000 were also printed in the five-cent denomination. The face shows the vignette The Guardian engraved by James F. Fraser and designed by Len Buckley. The back vignette is the eagle that was used on the $5,000 & $10,000 Treasury notes. Series 691 did not have any fractional denominations printed, nor was it ever issued. Series 701 (below) are also never issued but did have fractional denomination. Many varieties are available and are reasonably priced, especially in circulated grades. I look forward to expanding my collection to other fractional denominations of MPCs and then maybe to the whole dollar denominations and POGs. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 343 WW2 USA POW Chits Wanted Excursion Island, AK Camp Perry, OH Camp Cooke, CA Camp Madill, OK Fort Ord, CA Fort Reno, OK Trinidad, CO Fort Sill, OK Farragut, ID McAlester, OK Fort Benjamin Harrison, IN Indiantown Gap, PA Camp Phillips, KS Tyson, TN Concordia, KS Camp Howze, TX Fort Warren, MN Camp Wallace Fort Leonard Wood, MO Fort Sam Houston, TX Weingarten, MO Hill Field, UT Clinton, MS Ogden, UT Fort Crook, NE Rupert Ogden, UT Scottsbluff, NE Toole, UT Mitchell Field, NY Ettinger, VA Pine Camp, NY Fort Eustis, VA Sampson, NY Peary, VA Shanks, NY Ashford General Hospital, WV Any POW chit from; Alaska, Connecticut, Hawaii, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, West Virginia. If you have any of these available for purchase or trade please contact me. David E. Seelye ANA LM IBNS P.O. Box 13117 NI LM PCDA Prescott, AZ 86304-3117 SPMC davideseelye@gmail.com 585-305-4848 cell ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 344 3rd Example of Postage Currency used as Postage from Howland/Byrne Surfaces by Rick Melamed After publishing an article in the May/June 2016 edition “Paper Money” titled “Postage Currency Used as Postage Stamps,” a 3rd example addressed by Jesse Howland to his son-in-law Pappy Byrne has surfaced. Jesse Howland was an avid stamp/coin/currency collector. He owned a successful marine contracting business which afforded him the disposable income to indulge his hobby. His son-in-law, Captain Pappy Byrne, was a famed naval test pilot in the middle of the 20th century flying all over the world. Howland would send Byrne letters to get the different postmarks. Postal covers were widely collected back then; the more exotic the better. Very similar to the examples highlighted in the original article, the new discovery also made its way into President Franklin D. Roosevelt’s personal collection. In an interview, Captain Byrne's daughter indicated that her father often flew the President to his summer home in Campabello, Maine; thus establishing the intimate connection between FDR and Captain Byrne. The new example, with various postmarks from August 1939 (the other 2 examples are from the same time period), contains a 1st issue 10¢ postage note (FR1242) and an unusual 3rd issue 3¢ fractional note (FR1226). While 1st issue postage notes had a strong connection to postage stamps, the 3¢ note is a fractional with no connection to the postal service. There are approximately 10 known examples of envelopes with postage currency notes; this new discovery is the first record of an envelope with a fractional affixed to it. The new specimen has period US stamps on the face (2x15¢; 1x10¢; 1x30¢). The reverse has (3) Irish postage stamps, a Foynes, Ireland registration stamp and (18) postal cancellations including several from “Luimneach Deimhnithe and “Faing Co. Luimnigh” in Ireland.” Adding to its desirability, the prominent stamp action house from H.R. Harmer stamped the FDR provenance clearly on the reverse. Of the 3 known Byrne/Howland envelopes with postage notes, 2 resided with FDR. The previously documented examples are well traveled with postmarks from Newfoundland, Portugal, France and The Azores. With all 3 examples surfacing recently, the possibility of additional Howland/Byrne envelopes is likely. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 345 CHESTER L. KRAUSE December 16th, 1923 to June 25th, 2016  In  late  June,  the  SPMC,  the  paper  money  community,  the  greater  numismatic  and  collectibles  community and an enormous community of family, friends and acquaintances  lost a great pioneer and  friend, Chet Krause. Chet, a founding member of the Society [member #9] and voted into the SPMC Hall  of Fame’s  inaugural class  in 2014,  is arguably responsible for, or was significantly  involved  in, the vast  majority of the developments  in the numismatic hobby over the  last 60 years, as well as  in numerous  other hobby fields.  Born  in Helvetia, Wisconsin, Chet began collecting coins as a youth. His  family moved  to  Iola  in 1940  after a fire destroyed the family home  in nearby Helvetia. He graduated from Iola High School in 1941,  and in February of 1943, aged nineteen, he was drafted into the U.S. Army. As part of George Patton’s  3rd Army, he served as a mechanic in the 565th Anti‐Aircraft Artillery Battalion, working on every variety  of military  vehicle  involved  in  the  Second World War,  as  the 565th worked  its way  through Belgium,  Luxembourg and finally Germany. This experience would inspire Chet’s later delight in collecting World  War  II military  vehicles,  first  building  a  general  collection  of  over  100 working  pieces,  and,  later,  a  specialized jeep collection.  After  his  return  to  Iola,  he  took  up  homebuilding  as  a  profession,  and  resumed  his  coin  collecting  activities.  Before  the  publishing  business  became  his  primary  focus,  he  built  homes,  churches,  a  ski  jump, and Krause Publications’  first headquarters. However, his efforts to continue to build and enjoy  his coin collection while  living  in rural Wisconsin  led to the realization that collectors needed a way to  communicate with each other about their hobby and to buy, sell, and trade  items for their collections.  The solution, Numismatic News, was born on  the  family’s kitchen  table  in October of 1952, and what  started as a part‐time venture would become his full time occupation five years later, and remain so for  forty years. In 1992, after arranging, via an ESOP, for Krause Publications to become an employee owned  firm, he retired from active management of the company.  Chet’s numismatic and related accomplishments, as he grew Krause Publications over the years, and the  multiple fashions in which he impacted the many hobby fields Krause served, are countless. In the paper  money  field  alone,  in  addition  to  acquiring  and  publishing  Bank  Note  Reporter,  Chet  and  Krause  Publications  worked  with  Albert  Pick  to  make  the  Standard  Catalog  of  World  Paper  Money  the  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 346 comprehensive  standard  it  is  today. We are  similarly  indebted  for  the mammoth  four  volume Haxby  Obsolete work, and numerous specialty currency catalogs.  Chet was an indefatigable collector and built several impressive currency collections, including fractional  currency, world currency, encased postage, depression scrip, a world currency reference collection and  others. Likely the best known in the field are his astounding collection of Wisconsin obsoletes and scrip  and  his Wisconsin  National  Bank  Notes.  These  collections  were memorably  exhibited  at  the  ANA’s  annual  convention  in Milwaukee  in  2007,  after which  he  began  dispersing  them  into  the  hands  of  collectors.  As well known as he was for his activities in the hobby, less well known was his extraordinary generosity,  in  terms  of  his  personal  time,  financial  support  and  other  resources,  to  organizations,  and  activities  inside  and  outside  his  home  community.  Here  again,  the  list  of  causes  is  innumerable,  but  include  educational, healthcare, assisted living, historical, recreational, alumni, veterans, and civic causes. While  outside  the  currency  field, Chet’s  creation of  the  Iola Old Car Show may be  the best example of  the  practical  ingenuity he brought to fund‐raising activities. In 1972, he  invited a group of  local vintage car  owners  to display  their cars at an  Iola pig  roast and auction  fundraiser. That event developed  into an  annual  institution  that now not only  fills  large  fields  in  Iola with  cars on display, but  cars  for  sale or  trade, parts for sale or trade, and related activities. The multi‐day Car Show draws and feeds thousands  of visitors, and has raised millions of dollars for multiple charitable institutions.  The services for Chet were held on July 1st, a Friday, in the Iola‐Scandinavia High School Gymnasium. The  room was  filled, with hundreds of Chet’s  friends and  family  in attendance. The  floor of  the gym was  covered with  rows of  chairs  for attendees, and  they were all occupied. The  rollout  “bleachers” were  opened  and well  populated  as well.  The  services  began with  the  presentation  of  the  colors  by  the  Rawhide Boys Ranch About Face Color Guard,  included a very fine eulogy from Clifford Mishler, Chet’s  longtime associate and friend and ended with crisp and touching Military Rites. Chet was buried  in the  family plot  in  Iola, on a brilliant summer afternoon. Touchingly, several  Iola businesses and residences  displayed signage thanking Chet and wishing him well.         It is difficult to even begin to imagine what our hobby would be like if Chet had not come along. So many  aspects of our special world have benefitted, directly or  indirectly, over  the many decades of his care  and attention. He brought a gentlemanly but productive directness to making the objects of his energies  better.  Because  he was  a  visible  and  active  traveler  to  conventions  and  events,  and  gregarious  by  nature, many of us are fortunate to have made his acquaintance over the years. On a personal level, no  matter  how  large  or  complex  Krause  Publications  and  his multiple  other  activities  came  to  be,  he  remained accessible and genuine. He was truly, as his biography suggests, “Just Plain Chet.”  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 347 Post-Date Back Series of 1882 and 1902 National Bank Note Changeover Serial Numbers Introduction My article in the January-February 2015 issue of Paper Money was a comprehensive look at how the Treasury handled the transition from the date back to post-date back national bank notes. The transition began on July 1, 1915 with the expiration of the Aldrich-Vreeland Act. A piece of that puzzle that was not treated was a summary of the key Treasury sheet serial numbers involved in the changeover. The critical Treasury serial numbers and the dates when they were delivered to the Comptroller of the Currency of most interest are (1) the last Series of 1882 and 1902 date backs and (2) the first Series of 1882 value backs and 1902 plain backs for each sheet combination. Getting at those serials is a very technical proposition because the delivery schedules for 1915 where the Treasury serial were recorded became water damaged so they were discarded. Table 1 represents the current state-of-the- art in my attempt to reconstruct them. It represents a work in progress that can be refined as new Treasury serial numbers become available in our census data bases. Post-Date Back Changeover The complication that made the switch to the post-date back designs so different from the startup of the date backs was that there was simultaneous production of the date and post-date back types within five of the eight available sheet combinations. Those five were the 1882 10-10-10-10 and 50-50-50-100 and 1902 5-5-5-5, 10-10-10-20 and 50-50-50-100 combinations. The result was that Treasury serial numbering alternated back and forth between the types during the periods of concurrent production. Concurrent production lasted in the extreme for eleven years for the 1902 50-50-50-100 combination. The period during which the mixing occurred and the range of impacted Treasury serial numbers can be read from Table 1 as the difference between the first post-date back and last date back entries for a particular sheet combination. A given printing for a specific bank during the period of mixing always consisted of one type. The following rigid protocol dictated which faces were mated with which backs.  Printings from new face plates without the “or other securities” clause always had to be mated with 1882 value or 1902 plain backs depending on the series.  Printings from “or other securities” face plates had to be mated with feed stock consisting of backs with dates until those stocks were consumed. Only after the date back feed stocks were depleted were “or other securities” faces mated with new backs. The changeovers to the new backs were abrupt only within the Series of 1882 5-5-5-5 and 10-10- 10-20 and 1902 10-10-10-10 combinations. These three changeovers were abrupt – within a day or so in the numbering division - because no post-date back face plates had been made in those combinations prior to the depletion of available preprinted date back feed stocks. Consequently there were no printings with new backs that had to be inserted into the ongoing production streams. The Paper Column by Peter Huntoon ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 348 Obviously we would like to know the key Treasury serial numbers and also the banks that received them for all eight of the available combinations. This is not possible because the 1915 delivery schedules are missing for 1915. However much of the information can be recreated or approximated so the results are presented on Table 1. Table 1.  Key national bank note Treasury sheet serial numbers during the transition to the post‐date back types.  Italics indicate sheet combinations where the changeover between the date back and post‐date back types did not  involve mixed concurrent production of the types for more than at most a day or so.    Bank Serial  Delivery Datea  Bank Ch No  Treasury Serial  if Known  First Series of 1882 value backs  5‐5‐5‐5  Jul 30‐Aug 5, 1915  unknown        R622663 calculated  ‐‐‐  10‐10‐10‐10  Apr 10, 1915  Wells Fargo Nevada NB  San Francisco  CA  5105  B42356  341001  10‐10‐10‐20  Aug 24‐27, 1915  unknown   T484649 calculated  ‐‐‐  50‐50‐50‐100  Feb 11, 1919  Winters NB  Dayton  OH  2604  A161090  1    First Series of 1902 blue seal plain backs  5‐5‐5‐5  Jul 1, 1915  Hartford‐Aetna NB  Hartford  CT  1338  approx M260000B  1  10‐10‐10‐10  Jul 19, 1915  First NB  Vian  OK  10573  N107789  1  10‐10‐10‐20  Jul 1, 1915  First NB  Hebron  ND  10741  approx N820000B  1  50‐50‐50‐100  Aug 5, 1915  Atlantic NB  New York  NY  1080  A733557 calculated  1  Last Series of 1882 date backs  5‐5‐5‐5  Jul 30‐Aug 5, 1915  unknown   R622662 calculated  ‐‐‐  10‐10‐10‐10  Sep 21, 1921  Des Moines NB  Des Moines  IA  2583  B199580  52750  10‐10‐10‐20  Aug 24‐27, 1915  unknown   T484648 calculated  ‐‐‐  50‐50‐50‐100  Sep 2, 1921  Second NB  Danville  IL  2584  A172139  2960  Last Series of 1902 date backs  5‐5‐5‐5  Jul 6, 1915  unknown   approx M300000B  ‐‐‐  10‐10‐10‐10  Jul 9‐19, 1915  unknown   N107788  ‐‐‐  10‐10‐10‐20  Jul 7, 1915  unknown   approx N856000B  ‐‐‐  50‐50‐50‐100  Feb 15, 1926  Northern NB  Ashland  WI  3607  none  1339  a..Delivery Date  is when  the shipment containing  the sheet was delivered  from  the Bureau of Engraving and Printing  to  the  Comptroller of the Currency.  Entries with a range of dates imply that the changeover occurred between the dates shown based  on the current status of recorded Treasury serial numbers in the National Currency Foundation census.  I recreated as much of the missing data as possible using available delivery schedules, certification dates on face plate proofs in the National Numismatic Collection, and calculated production totals from the BEP annual reports. If I knew the date when a desired unknown Treasury serial was printed, I could estimate its number using bracketing Treasury serials in the National Currency Foundation census that I could date in the National Currency and Bond Ledgers. Conversely if I knew a Treasury serial but not when it was printed, I could obtain bracketing dates for it using adjacent Treasury serials from the National Currency Foundation census, which I could date in the National Currency and Bond Ledgers. The only hope for resolving the ambiguities that remain awaits discovery of notes that can be used to prove or tighten the information that is presented. Be aware that the data in Table 1 revises and renders obsolete similar data that I have published in the past. Two important first post-date back Treasury serials will be profiled in order to demonstrate how the entries on Table 1 were obtained. These discussions are rather arcane but it is appropriate that I record how I got at some of the data presented in Table 1. First 82VB 10-10-10-10 Sheet Ironclad information exists for the first Series of 1882 10-10-10-10 value back sheet. Only four banks utilized Series of 1882 value back notes printed from 10-10-10-10 plates. They ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 349 were: The Wells Fargo Nevada National Bank of San Francisco (5105), The First National Bank of Chickasha, Oklahoma (5431), The City National Bank of Holyoke, Massachusetts (2430), and The Peoples National Bank of Lawrenceburgh, Indiana (2612). The first delivery dates for their 10-10-10-10 value backs were April 16, 1916, March 28, 1917, July 25, 1917 and October 8, 1921, respectively. The delivery schedule exists for the all-important Wells Fargo Nevada printing. It shows that the first 10-10-10-10 value back sheet carried sheet serial numbers B42356-341001. First 02PB 50-50-50-100 Sheet I was able to compute the first Treasury sheet serial number used on a Series of 1902 plain back 50-50-50-100, but be forewarned that this one is not ironclad. The first Series of 1902 50-50-50-100 face plate made without an “or other securities” clause after the Aldrich-Vreeland Act expired on June 30, 1915 was for the Atlantic National Bank of the City of New York (1080). It was certified for use July 23, 1915. The bank had undergone a title change on July 13th from The Merchants Exchange National Bank of the City of New York so a new plate was required. Printings from it had to be mated with plain backs because it did not have an “or other securities” clause. There were no other Series of 1902 50-50-50-100 face plates without the clause at the time. Consequently printings from the New York plate were the first to use 50-50-50-100 plain backs. The National Currency and Bonds Ledgers reveal that the first printing from it consisted of 120 sheets that were received at the Comptroller’s office on August 5, 1915. However, Treasury serials were not recorded in those ledgers. Furthermore no notes are reported from the printing and the delivery schedules for 1915 are missing that could yield the first Treasury serial. To get at it I used the fact from the National Currency and Bond Ledgers that the first printing of the New York 1902 50-50-50-100s was delivered to the Comptroller’s office on August 5, 1915. Next I arranged all the 1902 50-50-50-100 Treasury serials in the National Currency Foundation census in order. Then I sequentially looked up in the National Currency and Bond Ledgers all the 1902 50-50-50-100 deliveries for notes printed after the Aldrich-Vreeland Act expired until I passed the deliveries made on August 5, 1915. There were no others on August 5th, but through good fortune there was a reported 02DB $50s from The Manufactures National Bank of Newark, New Jersey (2040), bearing numbers A733327- 1171 from a delivery consisting of sheets 1101 to 1400 received August 4, 1915, the day before the New York delivery. Assuming there were no intervening 50-50-50-100 date back printings sandwiched between the Newark and New York deliveries yields a first 02PB Treasury sheet serial on the New York printing of Figure 1. The first Series of 1882 value back 10-10-10-10 Treasury sheet serial number, B42356, was used on the first printing from the EE-FF-GG-HH plate for The Well Fargo Nevada National Bank. The plate was a duplicate that happened to be the first of its combination made after expiration of the Aldrich-Vreeland Act. Faces printed from it had to be mated with value backs because it didn’t have the Aldrich- Vreeland “or other securities” clause. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 350 A733557. Potential intervening deliveries were invisible to me because no notes from them are recorded in the census. Probably there weren’t any because 50-50-50-100 deliveries were infrequent. Hopefully a $50 or $100 note from the first printing for the Atlantic National Bank will turn up to validate or correct my calculation. Realities The completeness of Table 1 suffers from missing delivery schedules because the all-important 1915 schedules were lost many decades ago. That information was typed on thin brittle paper and bound into thick books with cardboard covers using cord stitched through two punch holes on the left margin of the forms. The surviving schedules reveal that a flood caused considerable damage to them, probably when they were still housed in the Treasury Building. It appears that the books on the bottom of the heap were damaged beyond salvation so they were discarded. Acknowledgment The Central States Numismatic Society, Society of Paper Money Collectors and National Currency Foundation sponsored this research. Sources of Data Comptroller of the Currency, 1863-1935, National Currency and Bond Ledgers: Record Group 101, U. S. National Archives, College Park, MD. Comptroller of the Currency, 1916-1923, National currency, schedules of work to be delivered: Record Group 101 (101:550/63/01/03-04 boxes 2-8) U. S. National Archives, College Park, MD Bureau of Engraving and Printing, yearly, Annual report of the Director of the Bureau of Engraving and Printing: U. S. Government Printing Office, Washington, DC. Bureau of Engraving and Printing, 1875-1929, Certified proofs lifted from national bank note face plates: National Numismatic Collection, National Museum of American History, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, 1924-1935, National bank note delivery schedules: Record Group 318 (318:450/79/21/05-06) U. S. National Archives, College Park, MD. Huntoon, Peter, 2015, The national bank note Series of 1882 and 1902 post-date back transition: Paper Money, v. 54, p. 4-19. National Currency Foundation, http://nbncensus.com Figure 2. The first Series of 1902 plain back 50-50-50-100 Treasury sheet serial number was used on the first printing from the Atlantic National Bank plate, a title change plate that was the first of that combination made after the expiration of the Aldrich-Vreeland Act. The number is calculated to have been A733557. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 351 Series of 1886 Silver Dollar Back $5 Silver Certificates by Lee Lofthus The Series of 1886 five dollar silver certificates, popularly known as “Silver Dollar Backs,” are highly coveted by numismatists for their elaborate and artistic designs. Largely unknown is their controversial beginning during a period of contentious debate between pro-silver and pro-gold forces in the country. This is the story of the iconic silver certificates with the five 1886 Morgan silver dollars on the back. Small Denomination Silver Certificates Prior to the summer of 1886, silver certificates were authorized to be issued in denominations of ten, twenty, fifty, one hundred, five hundred, and one thousand dollars, but no smaller denominations. Similarly, Gold Certificates of the 1882 Department Series widely circulated, but in denominations of $20 and above. The need for the smaller $1, $2, and $5 denominations was filled by Legal Tender notes. However, the currency landscape changed significantly with the Act of August 4, 1886, when the issuance of silver certificates was authorized by Congress in denominations below ten dollars, i.e. one, two, and five dollar notes. Treasury designated the new certificates the Series of 1886. The small denomination silver certificates were needed to help sop up the tens of millions of silver dollars that were piling up in the Treasury vaults. Since 1879, Philadelphia and the branch mints were coining roughly 28 million silver dollars annually. Most went into vault storage since only four or five million made it into actual circulation each year. Consequently, by the time the new small denomination silver certificates were being contemplated in 1886, the Treasury had amassed over 181 million newly minted silver dollars in its vaults. The enormous number of $1,000 face value bags of silver dollars in the Treasury vaults would back the large printings of lower denomination silver certificates. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 352 Figure 1 Pro-silver political interests in the country successfully gained legislation in 1878 that required the monthly purchase of domestic silver for coining into silver dollars. Treasury’s vaults were soon filled with $1,000 bags of silver dollars that were unwanted in circulation except for a few western states. Photo courtesy of the Library of Congress. Bimetallism and the Silver Question The seeds of the Series of 1886 silver certificates were sown eight years earlier with the passage of the Bland-Allison Act in 1878, pro-silver legislation that was passed only after Congress overrode a veto by Republican President Rutherford B. Hayes. Hayes felt the Act, which required the government to purchase $2 million to $4 million of domestic silver a month and mint standard silver dollars that contained less than a dollar’s worth of silver, was detrimental to a sound financial system. Hayes also saw that provisions in the Act for the acceptance of silver dollars in payment of customs dues would deprive the Treasury of its gold revenues, as coin holders would naturally use the lesser-valued silver dollars to pay their duties rather than gold coin. Hayes was supported by sound-money gold advocates and Eastern bankers, but arrayed against him was a formidable silver faction, a combination of friends of the mine owners of the great Comstock Lode in Nevada and the rich Colorado mines plus representatives, many from agricultural states, who sought greater a money supply in general. Among this group were Democratic Senator Richard “Silver Dick” Bland of Missouri, Republicans William Allison and John Kasson of Iowa, and Republican William Kelley of Pennsylvania, to name just a few. Hayes argued his case but could not derail the single-minded silver faction. The Congress and its pro-silver forces, primarily from the Western mining states, overrode the presidential veto and the silver bill was passed. The Western states support for silver dollars was epitomized by a petition sent to Congress on February 18, 1886, by 115 citizens of Wyoming Territory, entitled “praying for the continued coinage of the standard silver dollar.” Pro-silver forces also pushed through other legislation to aid their interests. The Act of July 12, 1882, authorized a new series of gold certificates, but also included a provision that authorized both gold and silver certificates to be held by banks as reserves, another coup for the silver forces as it created a sustainable use for more silver certificates and hence more minting of silver dollars. The silver faction also managed to include in the 1882 Act a provision that prohibited any national bank from joining any clearing house that refused to use silver certificates in settling balances. Grover Cleveland, a Democrat, took office as president in March 1885, facing the continued crisis with the government’s subsidized silver purchases, which were vainly trying to prop up ever-falling ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 353 Figure 2. Edward Graves, right, was the BEP chief who championed the new artistic designs and used on the Series of 1886 silver certificates and oversaw automation of the presses needed to meet the large demand for them. Lorenzo Hatch, left, was the renowned BEP engraver who engraved the silver dollars on the back and vignette of Ulysses S. Grant on the face of the $5s. Photographs courtesy of the BEP and Heritage Auctions. silver prices. The domestic silver woes were compounded by, and inextricably linked with, falling silver prices overseas, particularly in Europe where England and France faced similar silver miseries. Cleveland and his new Treasury secretary, Daniel Manning, moved quickly to find a use for the stockpiled silver. Treasury immediately took action to curtail the small denomination legal tender notes in circulation, thus creating a void that could be filled by either the unlikely actual use of silver dollars in commerce, or, if approved by Congress, by new small denomination silver certificates. After a report to Congress by the Treasury in March 1886, which cautioned again of the ills of unlimited free coinage of silver, pro-silver factions in Congress dodged any rational action to curtail silver purchases. Instead, Congress took a work-around action and authorized new silver certificates in the denominations of $1, $2, and $5 to fill the void created by the withdrawal of the small denomination legal tenders. Thus was born a new series of paper currency whose beauty did not convey the monetary and political turmoil behind its issue. BEP Prepares the Series of 1886 With the authorization of the new denominations, the BEP began work on the new designs. Edward Graves, Chief of the Bureau of Engraving and Printing (BEP), reported in October 1886 that the engravers had completed the one dollar Martha Washington dies on September 6, 1886, with the first delivery of printed notes sent to the Treasurer on September 20th. Graves proudly pointed out the BEP prepared the new design, engraved the dies, made the plates, and printed the sheets in less than seven weeks from the passage of the authorizing legislation. The plates for the two dollar Winfield Scott Hancock notes were prepared next, with the first notes arriving at Treasury on November 27, 1886. The new one- and two-dollar certificates were well received, with a New York Times headline reading “Designs for the One and Two Dollar Bills – Handsome Portraits of Martha Washington and General W. S. Hancock Adorn Them.” ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 354 The five dollar design, with Ulysses S. Grant on the face and the array of five Morgan silver dollars on the back, was prepared last, with work beginning in early October. BEP engraver Lorenzo Hatch engraved Grant’s portrait for the face and also the elaborate silver dollar design for the back. The Times again reported on the coming new designs, telling its readers on November 14, 1886, that the new five dollar certificates would have a back in a light shade of green, with “five standard silver dollars grouped so as to overlap each other.” The first of the $5 silver certificates of the new design were delivered to the Treasurer on February 9, 1887. Engraver Hatch was employed by BEP from April 1879 to December 1887, being hired after one of his engravings of President Washington caught the attention of O. H. Irish, the then-chief of the BEP. The Series 1886 $5 silver certificate was one of Hatch’s last and crowning BEP achievements, but it was one among many. After his retirement, Hatch’s engravings were used for the Grant and Sheridan portraits on the back of the $5 Series 1896 Educational silver certificates, and for the Robert Fulton and Samuel Morse portrait engravings on the back of the $2 Educational notes. Hatch moved on from the BEP to a Chicago bank note engraving firm in 1888, and soon after became the head engraver for the American Bank Note Company in New York. When the government of China wanted to improve the security and quality of its paper money and stamp production, Hatch went to China with his family in 1908 to advise on setting up new currency production capabilities modeled after the procedures used by the U.S. Bureau of Engraving & Printing. Hatch died in China in 1914 at age 58. Graves took pains to note in his 1886 annual report to the Secretary of the Treasury that in preparing the new Series, “the so-called patent lettering has been discarded. This change has not only led to better and more artistic results, but has greatly reduced the expenses of the engraving branch. It is the purpose to gradually replace the plates produced by this method with new plates engraved by hand.” It was this burst of BEP’s engraving artistry that created the now-revered numismatic classics like the Hancock Deuce, the Silver Dollar Back fives, and the Martha one-dollar bill. The same artistic reawakening extended to national bank notes, as the patent lettering was abandoned for the lettering in the title blocks and replaced with new layouts, premier among them being the elegant “Circus Posters” that came along in 1886-87 on the Series 1882 Brown Back $5 nationals for some 50 lucky banks. The BEP produced the Series 1886 notes in sheet form, but due to an arrangement directed in 1885 by newly appointed Secretary Manning, the sheets were sent to the Treasurer’s office for the overprinting of the seals and separation into individual notes. See Huntoon and Lofthus 2014. The sealing and separating work did not return to the BEP until 1910 when BEP Chief Joseph Ralph convinced Congress the work could be done more efficiently, at a lower cost and with equal security, if carried out at the BEP. Silver Dollar Back Production The Silver Dollar Back five dollar notes were printed for six years between fiscal years 1887 and 1892. The Grant $5 face design continued as part of the Series of 1891 for another six years, but the fancy silver dollar back was replaced by a more open design believed to be a better deterrent to counterfeiting. Both the old and new Grant $5 designs were produced in fiscal year 1892 (July 1, 1891 to June 30, 1892). The large printings of the Series of 1886 small denomination certificates required the BEP to implement labor saving devices. In January 1887, the BEP began to print the backs of the $1 Martha Washington notes on steam presses in lieu of hand operated presses. The backs for the $2 Hancock notes followed at the end of April 1887, and the five dollar backs came after that. The BEP reported that 210 employees working with steam powered presses could perform the work of at least 335 employees working hand spider presses. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 355 Figure 3. the Silver Dollar Back five dollar notes were printed for six years between fiscal years 1887 and 1892. This page from the BEP master printing ledger by series shows the production by fiscal year for the Silver Dollar Backs and other Series of 1886 denominations. Image from U.S. Treasury holdings in the National Archives. Design Variations For a short lived series, the Silver Dollar Backs are replete with varieties. The six year production of Silver Dollar Backs saw four signature combinations mixed with four varieties of Treasury seals. While famous old-time collectors like Albert Grinnell sought one of every variety, most collectors today seek a single note to represent the type, or seek the various seal designs. Combined, there are seven varieties of Silver Dollar Backs: Rosecrans/Jordan with small plain red seal; Rosecrans/Hyatt small plain red seal; Rosecrans/Hyatt large peach (often cited as red) seal; Rosecrans/Huston large peach seal; Rosecrans/Huston large brown seal; Rosecrans/Nebeker large brown seal; and Rosecrans/Nebeker small red scalloped seal. The notes carry Friedberg numbers Fr. 259 through Fr. 265. Hoards of the Rosecrans/Hyatt large peach seal variety, as well as hoards of the brown seal Rosecrans/Huston notes, have surfaced over the years and made it into numismatic circles. These hoards, with a fair number of notes of each variety clustered in several serial number groupings, have provided a supply of higher graded notes for the unwavering numismatic demand. The first signature combination, Rosecrans/Jordan with the small plain red seal, and the last combination, Rosecrans/Nebeker with the small red scalloped seal, are scarcer varieties, as are the Rosecrans/Huston large peach seal and particularly the Rosecrans/Nebeker large brown seal notes. Extensive Circulation The new Series of 1886 silver certificates were a huge success in spite of the silver controversy that spawned them. Early on demand far outstripped supply and U.S. Treasurer Conrad Jordan announced that the Treasury could not furnish more than $80,000 of the new one dollar notes a day [N.Y. Times, Oct 2, 1886]. Bank orders were limited to 1,000 notes at a time in order to spread the $80,000 daily limit among as many banks as possible. It wasn’t until almost a year later that the Washington Post reported that the Treasurer had finally accumulated “a supply of one and two dollar silver certificates sufficient to meet the current heavy demand, [and] has arranged for the prompt delivery of these notes to banks, bankers, and others. . . .” [Washington Post, Aug. 15, 1887]. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 356 Figure 4. A collectors dream: this rare 1890 photograph shows two Bureau of Engraving employees with stacks of uncut currency sheets. Prominently visible are stacks of $5 Silver Dollar backs and $10 “Tombstone” silver certificate sheets. Photograph courtesy of the Library of Congress. Ultimately, Secretary of the Treasury Charles S. Fairchild was able to report in 1887 that “The five, two, and one dollar [silver] certificates furnish a convenient currency, and it is evident that the future use of the silver dollar will be almost exclusively in that form.” The new small denomination silver certificates filled pockets and cash registers across the country. Treasury reported that as of July 1, 1887, the circulation of coin and paper money in denominations less than $20 had expanded by $109 million, and almost all the increase was in the form of the new small denominations. BEP Chief Graves noted that except for lack of operating funds, he could have produced even more small denomination silver certificates to meet demand. In 1888 the new series really took off, with silver certificate circulation increasing from $142.1 million to $229.8 million, an increase of 61 percent. The Post reported on May 11, 1888 that “The Bureau of Engraving and Printing is engaged night and day in printing one and two dollar silver certificates, and to date has finished $26,000,000 ones and $17,000,000 twos.” 1888 and 1889 were the high water years for printing the Silver Dollar backs. Because silver dollars themselves were still unpopular except in parts of the west, the silver certificates took their place in circulation. Treasury reported in 1888 that “the circulating medium in small denominations has been largely converted into silver certificates.” Treasury’s satisfaction with the new silver notes was did not mean the government was satisfied with the silver problem itself. Treasury Secretary Fairchild lamented the continued minting of vast quantities of silver dollars, saying “It is seldom that any one wishes to have his silver certificate exchanged for the silver dollar itself, consequently a limited number of coined dollars” would be sufficient to back the circulating notes. He continued: “it is a waste to coin and store any more silver dollars at present. There is no function which those that are coined after this time will probably ever perform, except to lie in Government vaults and be a basis upon which silver certificates can be issued.” Fairchild was right, but the 1878 Bland-Allison Act required that the government-purchased silver be coined into silver dollars in order to back silver certificates – bullion would not do. Treasury was stuck with the expense of coining and storing bulky dollars that would not circulate instead of more conveniently storing silver bars. Knowing a direct attack on the silver purchases and the silver dollar would likely be unsuccessful, Fairchild attempted to take some sensible measure to stop the minting of unneeded silver dollars but still appease the silver faction. He proposed that Treasury be permitted to back silver certificates with bullion silver, not coined silver dollars, but opposition from the silver faction meant his idea would wait another 48 years to be implemented, when FDR and Congress approved the Series of 1934 small size silver certificates. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 357 Figure 5. Another rare photograph shows a BEP employee applying serial numbers to sheets of Silver Dollar Backs. Photograph courtesy of the Library of Congress. Conclusion During the heyday of the Series of 1886 Silver Dollar Backs, Treasury officials were sorely conflicted over the monetization of silver because they perceived it as being highly inflationary, many preferring a rigid gold standard. Treasury and the BEP took understandable great pride in the artistic designs of the Series of 1886 notes, yet both the Republican administration of Hayes and the Democratic administration of Cleveland alike were against the unlimited issue of silver coinage or silver backed money. The 1880’s gold vs. silver debate was still largely regionally driven rather than political party driven, with western mining interests and their allies finding opponents among both Democrats and Republicans. The William Jennings Bryan (D) vs. William McKinley (R) “Cross of Gold” party lines would not be fully drawn until the presidential elections of the 1890’s. Meanwhile, the late 1880’s perspective of the Treasury Department was succinctly summarized by Secretary Fairchild, who felt it was his duty to warn Congress about the pitfalls of an over-minted standard silver dollar “and its representative, the certificate, [which] are so widely distributed.” He characterized the vast hoard of silver dollars in the Treasury vaults as a “reservoir which held the silver dollars that people did not want. . . .” Fairchild worried that a flood of silver coin and currency would depreciate compared to gold coin and hurt American consumers. When the nation faced the financial crisis of 1893, time would prove Fairchild right on both counts. The Panic of 1893 set in as fear that the United States would adopt an inflationary silver standard caused gold to pour out of the Treasury. European holders of U.S. securities cashed out in gold, and Americans holding legal tender notes redeemed them at such a pace they drew out more gold from Treasury in seven months than had been redeemed over the prior thirteen years combined. The ill-advised Sherman Silver Purchase Act of 1890 failed to prop up falling silver prices. Worse, the government purchased the silver with Treasury notes of 1890, which were redeemable in gold, further draining the Treasury. Gold was at a premium, silver’s value was declining as Fairchild predicted, and by summer citizens were hoarding cash of any kind. Many banks curtailed cash payments, and a full scale crisis was at hand. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 358 Cleveland called an emergency session of Congress in August 1893 to stem the crisis. After a three month struggle with the never-say-die silver faction, Cleveland cobbled together enough sound- money Democrats and Republicans to repeal the Sherman Act on November 2, 1893, and end the silver purchases. It would take the rest of the decade for the silver vs. gold debate to resolve itself. Today’s numismatists share none of Treasury’s 1880-90 era misgivings about silver-backed paper money. Instead, they avidly collect the Series of 1886 Silver Dollar Backs and their renowned one-and two-dollar brethren with the same enthusiasm that the notes were greeted by the public back in those distant times. The notes are numismatic icons, scarce and beautiful representatives of a growing industrial nation and its burgeoning power. Acknowledgements Peter Huntoon made valuable suggestions to the manuscript. Sources Archives of American Art. Lorenzo James Hatch and Hatch family papers, 1902-1937. Smithsonian Institution, Washington DC. 2015. Bluestone, Barney. The Celebrated Albert A Grinnell Collection of United States Paper Currency. Syracuse, NY, 1944-1946. Reprint by William Anton Jr. and Morey Perlmutter. Anton and Perlmutter. 1971. Bowers, Q. David. Whitman Encyclopedia of U.S. Paper Money. Whitman Publishing, LLC. Atlanta, GA. 2009. Congressional Record. 49th Congress, First Session. Wyoming petition, p. 1584. Government Printing Office, Washington DC. 1886. Donlon, William P. Revised by A.M. and Don Kagin. United States Large Size Paper Money 1861 to 1923. 6th Edition. A.M. and Don Kagin, Des Moines, IA. 1979 Friedberg, Arthur L. and Ira S. Paper Money of the United States. The Coin and Currency Institute Inc, Clifton, NJ. Fifteenth Ed. Hepburn, A. Barton. A History of Currency in the United States. Macmillan Company, NY. 1915. Huntoon, Peter, and Lofthus, Lee. The Birth of Star Notes – the Back Story. Paper Money, Whole No. 294, November/December 2014. Library of Congress, Prints and Photograph Collection. Silver Dollar Back sheet photograph titled Bureau of Engraving and Printing #32. Call No. Lot 8861, Catalog No. 2015647067. Washington, DC. 1890. Also, Gold and Silver Vault #2, Catalog No. LC-F82-426 1914. New York Times. “New Silver Certificates – Designs for the One and Two Dollar Bills – Handsome Portraits of Martha Washington and General W. S. Hancock Adorn Them” August 1, 1886; “The New Silver Certificates,” October 2, 1886; “The New Silver Certificates,” November 14, 1886. New York, NY. 1886. The Washington Post. “Small Silver Certificates.” August 15, 1887; “Making Lots of Money.” May 11, 1888. Washington DC. 1887. U.S. Treasury. Annual Report of the Secretary of the Treasury. Government Printing Office, Washington DC, 1886 through 1893. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 359 Series 1995 $5 FRN Back Plate Varieties By Jamie Yakes Two varieties exist for Series 1995 $5 Federal Reserve Notes printed at the Bureau of Engraving and Printing facility in Washington, D.C. Notes with serial numbers printed from June 1995 to January 19961 have back plate serials from 196-2182 (old backs). See Table 1. Table 1. Series 1995 $5 FRNs with Old Backs  FR Bank   Serials    Boston    A00000001A‐A51200000A   A00000001*‐A00640000*  New York  B00000001A‐B96000000A  B00000001B‐B70400000B   B00000001*‐B01920000*  Philadelphia  C00000001A‐C38400000A  Richmond  E00000001A‐E32000000A  Atlanta    F00000001A‐F96000000A  F00000001B‐F12800000B Notes printed from February 1996 until the last 1995 D.C. notes were printed in May 1998 have low-numbered backs starting at 1 (new backs). See Figure 1. January 1996 was the transition month when new backs started replacing old backs in the press room. Three serial ranges were printed that month: B06400000B-B70400000B, B00000001*-B01920000* and C00000001A-C38400001A. The New York stars can be found with both backs. The B-B and C-A blocks have been observed only with new backs, but it's possible for those serials to also have new backs. Figure 1. Series 1995 $5 notes with three-digit back plates, such as the note on the left with serial 214, were old backs carried from Series 1993. Notes with lower serials, like serial 4 on the note on the right, were part of a new set of back plates introduced during Series 1995. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 360 Old backs were the last of a sequence of $5 back plates first used during printing of Series 1988A and throughout Series 1993. Those and the new backs were the last of the $5 back design introduced in 1928 that was replaced by a revamped design for Series 1999 Next Generation notes. In addition to 1995, replacement of old $5 back plates with new backs also occurred in Series 1981, 1985 and 1988A. The pattern for each was similar: Old backs were supplanted by new backs during the first year or so the series was being printed. Similar replacements occurred in other 1980s- and 1990s-series denominations, such as Series 1981 $1s and 1993 $10s. It's unknown why the BEP occasionally switched to new back plate sequences mid-series. In a 1981 article, the late Robert Lloyd stated that a "start-over" of back plates during Series 1981 was "supposedly to record a shallower engraving of the plates."3 An FOIA inquiry to the BEP is necessary to obtain more information and confirm Lloyd's theory. These modern back plate varieties remain uncharted territory and potentially collectible varieties. At least for $5s, the old backs were typically the lesser-printed, but this may not be true for all series and denominations. For eager collectors and budding researchers they represent new and fertile ground for research. Acknowledgments The Professional Currency Dealers Association supported this research. Sources Cited 1. http://www.uspapermoney.info/serials/f1995_q.html. Accessed August 8, 2016. 2. Author's observations; not inclusive of every serial between 196 and 218. 3. Lloyd, Robert H., "Plate Numbers and Check Numbers." Paper Money 22, no. 2 (1983, Mar/Apr): 64-65. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 361 Triple Obstruction Overprinting Error Peter Huntoon Error enthusiast Bob Liddell landed this $10 FRN Series 1950D error where three different parts of the overprint were obstructed. If you don’t spot the third obstruction, notice that the upper right district number also is missing from the overprint. Our interpretation is that a piece of selvage got mixed in with the sheets and passed through the overprinting press when the sheet containing this note was numbered. Liddell has seen plenty of obstructions of all types over the decades, but never one that affected three different parts of an overprint on one note. The 1933 photograph of women trimming sheets prior to overprinting nicely reveals the potential source for obstructions of just the right size. . ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 363 The Meteoric Rise and Fall of John M. Parkman, President of the First National Bank of Selma by Charles Derby Beginnings John McGee Parkman’s life growing up in Selma must have been grand. His father, Elias Parkman, moved to Selma when it was a new town in wild territory, in 1817 1. Elias built one of the first houses in Selma and was a very successful merchant. Elias was a solid citizen, including serving as a trustee on the Ladies Education Society Academy. John was born on January 12, 1838, the first child of four for Elias and his wife, Maria 2. But two of the children died by the age of two, so it was his sister, Alla (Catherine Alathena), three years younger than John, who he grew up with and became very close. Misfortune struck the family suddenly: Elias died in 1853 of yellow fever 1. John, the only and oldest son, even though only 15, became the provider. He was described as being hard working and even a “prodigy” at least in a business sense, which included his father’s occupation of selling dry goods. Success in the Bank of Selma   Then, an opportunity appeared. The Bank of Selma opened in 1858, and John got a job as a clerk. He must have done very well. By 1860, he was teller at the Bank, had accumulated $8,000 in real and personal estate, and was living with his mother Maria and his sister Alla 2. He soon became the bank’s bookkeeper, and then, in 1861, cashier, the position second only to president. He was the third cashier in the short history of the Bank of Selma, following Charles Lewis (1857-1859) and Robert Lapsley (1859- 1861). The bank’s president, Washington McMurray Smith, and board of directors must have thought very well of John. During its brief existence (1858-1865), the Bank of Selma issued five notes in denominations of $100, $50, $20, $10, and $5. Examples are shown in Figure 1, all (except the bottom right $5 note) hand dated in 1862 and signed by J.M. Parkman cashier, W. M. Smith president, and W. J. Greene as Comptroller of Public Accounts for the state of Alabama. 3 While the notes look similar, they were actually printed by two different printers. The $20, $10, and $5 notes were produced by the American Bank Note Company and bear its imprint. They were printed in the late 1850s and some have the signed date of the 1850s; the $5 note on the bottom right side of Figure 1 is dated July 4, 1859, and signed by Charles Lewis. With the war, inflation became a fact of life and the Bank of Selma, as with other banks, needed larger denominations. The Bank of Selma contracted with the American Bank Note Company for $50 and $100 notes. It produced proof notes, as shown in Figure 1 for a $50 note. The $50 proof has “Confederate States of America” written on the scroll on the top left, so the note must have been produced after the CSA’s establishment in February 1861. With enforcement of trade restrictions between the North and the South, the contract between the American Bank Note Company and the Bank of Selma ended before delivery of notes. Instead, the Bank of Selma turned to the printing firm of Leggett, Keatinge & Ball of Richmond, which printed notes for the Confederacy. Leggett, Keatinge & ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 365 Figure 1. Notes issued by The Bank of Selma, 1858-1865. Bank of Selma notes from Heritage Auctions. Ball produced $100 and $50 notes with a general appearance of the earlier $20, $10, and $5 notes by the American Bank Note Company, but that differ in having the “Leggett, Keatinge & Ball, Richmond VA” imprint and having “186_” rather than “18__” as the date. Since Leggett was with Keatinge & Ball only from September 1861 to March 1862 4, the $100 and $50 notes must have been produced during that time. John Parkman and the Bank of Selma contributed to the war effort in other ways. The Bank was a Confederate depository, and an example of a CSA interim depository receipt is shown in Figure 1, signed by bank president W. M. Smith. In that capacity, the Bank of Selma also rented office space and sold office supplies to Confederate officials. An invoice for a check book and a memorandum book, costing $15 and signed by Parkman as cashier, is shown in Figure 2. Business was so good for John Parkman that he bought a mansion, later called Watts-Parkman- Gillman house and now known as Sturdivant Hall, shown in Figure 3. It was designed by Thomas Helm Lee (a cousin of Robert E. Lee), completed in 1856 for its original owner, Edward Watts, who sold it to Parkman on February 12, 1864, for $65,000, the equivalent of more than $1 million today! ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 366 Figure 2. Invoice from the Bank of Selma to the Confederate States, signed by John Parkman as cashier. From the National Archives. Figure 3. Sturdivant Hall, John Parkman’s home in Selma from 1864 until his death. Figure 4. Washington McMurrray Smith, President of the Bank of Selma 6. Figure 5. Four fractional notes for the City of Selma, Oct. 1865, which John Parkman arranged for the ABNCo. to print. From Heritage Auctions. Soon thereafter, the situation soured for Selma, the Bank of Selma, and John Parkman, as it did and would for others in the South. Brig. Gen. James H. Wilson and his Union Army Cavalry Corps captured Selma on April 2, 1865. Since the Bank of Selma was a CSA depository, its funds were heavily invested in the Confederate notes and bonds. William McMurray Smith (Figure 4), as president of the bank, tried to hide the bank’s hard money, and was reported to have burned most of the bank’s notes on April 20, 1865, to prevent their being captured in Wilson’s raid. The Bank of Selma officially closed August 11, 1868.5 Parkman’s Role in Producing Currency for the City of Selma John Parkman played a major role in the production of a set of four fractional notes for the City of Selma immediately after the end of the War. The Selma City Council authorized the mayor, Madison Jackson Williams, to produce some much needed fractional currency for running city business, and he turned to his friend, John Parkman. Parkman was paid $1,050 to travel to New York and have the American Bank Note Company print $20,000 in notes of 5₵, 10₵, 25₵, and 50₵, shown in Figure 5. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 367 Figure 6. U.S. pardon for John Parkman, dated July 25, 1865, and signed by President Andrew Johnson (bottom left) and Secretary of State William Seward (bottom left and right, respectively). From The National Archives. Official Pardon from President Andrew Johnson The general amnesty that President Johnson provided to Southerners at the end of the war did not apply to Parkman, because he fell into “exemption 13” of the amnesty proclamation: “all persons who have voluntarily participated in said rebellion, and the estimated value of whose taxable property is over twenty thousand dollars.” Parkman had friends in high places, and they wrote on his behalf. He received his pardon, signed by President Andrew Johnson and Secretary of State William Seward, on July 25, 1865, shown in Figure 6. As required to make it official, he signed the pardon and took the oath of allegiance in August 1865, then returned to Selma in September. The Founding of the First National Bank of Selma Parkman founded the first national bank in Alabama, under the National Bank Act of 1864. This was the First National Bank of Selma, organized on August 24, 1865, with charter number 1537, established with $100,000 capital and Parkman as its principal stockholder and president, Charles Bruce Woods, Parkman’s brother-in-law, who married Alla in 1863, was cashier. Parkman again used people in high places to help him win this prize. A letter of support from June 12, 1865, came from the Secretary of the U.S. Treasury, Hugh McCulloch, and from the collector of internal revenue for the southern district of Alabama, Mobile, and the former U.S. Representative from Michigan, Francis William Kellogg, shown in Figure 7. The bank printed $85,000 worth of national currency. This was in the form of 4,250 sheets of notes, serial numbers 1-4250, each sheet having four $5 notes with plate letters, A, B, C, and D. In 1915, only $375 (or 75 notes) were recorded as unredeemed. No surviving notes are known. 7 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 368 Figure 7. Letter of support for Parkman’s bid for a national bank in Selma, signed by Hugh McCulloch and Francis W. Kellogg, respectively. From the National Archives. Speculating in Cotton Parkman earned money through various business ventures, one was cotton. In a letter to President Johnson dated September 30, 1865, Parkman complained of mistreatment at the hands of the U.S. District Attorney James Q. Smith, and the U.S. Marshall, Middle District of Alabama, John Hardy 8. On September 28, 1865, Smith and Hardy seized his cotton, even though Parkman had all the required paperwork. They arrested him for resisting the U.S. Marshall’s orders, and only released him upon his payment of $7,000 bond. Parkman’s letter spurred President Johnson to have his Attorney General, James Speed, investigate the matter. Speed contacted Smith, and this led to the immediate release of Parkman’s cotton. But the matter of the charge of Parkman’s warrant continued until May 1866. On May 19, Parkman again wrote President Johnson 9, expressing the frustration of feeling that he was being extorted and “with the hope that you will take such action as will relieve not only myself but others from the continued annoyances and impostion of both the U S Attorney & Marshall.” Speed ordered Hardy not to make any more unlawful seizures, and this matter was settled. Undoubtedly, there was bad blood between Parkman and Smith and Hardy. They were on opposite sides of the political spectrum: Hardy and Smith were anti-secessionists before the war, unionists during the war, and Republicans after the war,10 and Parkman was a Democrat and, as Smith called him, “an original precipitating fire eater of the Yancey school.” 8,9 Besides indicating the difficult nature of post-war commerce and government interactions, this event also indicates the extent to which Parkman was investing in cotton futures in 1865 and 1866, and forebodes what transpired next. The Fall Parkman was speculating heavily in cotton, and it was not going well for him. He bought lots of cotton, and the price fell. The situation may have resolved itself had he invested only his personal funds, but that was not the case. He was investing funds from the First National Bank of Selma, whose major depositor was the U.S. government. On April 1, 1867, the U.S. government successfully withdrew $50,000 from the bank. When the government tried to withdraw $75,000 more a few days later, Parkman asked for delay in payment. On April 14, the government demanded payment. Parkman promised payment the next day. But that night, ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 369 Figure 8. Brig. Gen. Wager Swayne. From the National  Archives. he reported a robbery, and he placed in the local newspaper, the Selma Messenger, the following item that appeared on April 16, 1867: “Messrs Editors:—The severe loss of one hundred and sixty thousand dollars sustained by the First National Bank this afternoon, by robbery, prompts me to make this statement: The robbery occurred between 2 and 3 p m., while the cashier, book-keeper, and runner of the bank were absent at dinner, or on business, the undersigned being alone in the bank; and if any carelessness can attach to any one, he alone is the party to bear it. It is evident the robbery was committed from the side door of the bank, while the writer was engaged at the front counter. John M. Parkman, President “20,000 REWARD. I will give twenty thousand dollars reward for the recovery of the $160,000 stolen from the First National Bank today, and in that proportion for the amount recovered. John M. Parkman, President.” Brigadier General Wager Swayne, the military governor of Alabama (Figure 8), went to Selma immediately and investigated the robbery. Under orders from the U.S. Secretary of the Treasury, Swayne took charge of the bank, including its building, property, effects, books, and papers. The bank’s officers were arrested; however, they were given immediate parole so they could reside at home. The next day, April 17, Parkman went missing, escaping Selma on horseback. He had jumped parole. Over the course of the day, Swayne’s investigation showed malfeasance and illegal activities on the part of the officers of the bank: as reported in the Selma Messenger: “the capital of the bank was never paid in, the circulation was used to pay for the bonds upon which it was obtained, and the bonds deposited to secure the government.” There was a deficiency in the $200,000 cash account. There had been no robbery as reported by Parkman. The next day, on April 18, Swayne placed the following item in the Selma Messenger: “$1,500 REWARD. For account of the treasury department, a reward of fifteen hundred dollars is offered for the arrest and delivery to the military authorities at any point within this state of John M Parkman, the defaulting and absconding president of the First National Bank of Selma, Ala. For the recovery of such money or valuable securities as said Parkman may have in his possession, a further reward will be paid, proportioned to the amount restored to the government. Wager Swayne, Major General.” Two weeks later, on April 30, the First National Bank of Selma went into receivership, with Cornelius Cadle, Jr., appointed as the receiver. 11 On May 28, the Comptroller submitted a charge of a violation of the bank’s charter, and a summons was issued for the bank’s directors to appear. No directors showed. On June 1, a decree of non-appearance, pro confesso, was filed in the U.S. District Court, and the bank forfeited all the rights, franchises, and privileges – the bank failed and went into receivership, just 20 month after it opened its doors. Parkman was captured on April 19 in Wilcox County, returned to Selma, then imprisoned in the county jail at Cahaba. On May 23, he attempted to escape, and died. There are many stories about his escape and death: his friends had devised an escape from jail, involving whisky; he was shot by a guard and died; and so on. The consensus of newspapers at the time12-15, including the Selma Times, as well as later writing 16, is that Parkman escaped from his jail cell, was shot at but was unharmed as he ran 75 yards distant to the Alabama River, jumped in, and floated 20 yards downstream to the steamer Gertrude. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 370 People on board saw him reach the wheel of the boat, which was not in motion, pause, then release and drift under the boat and out of sight 13. His body was recovered days later, when it was returned to Selma for burial on May 31 in the grand cemetery of Live Oak, bearing the simple marker, "In Memory of John M. Parkman. Born January 12, 1838. Died May 23, 1867." Only 29 years old! The Selma Times 13 framed his sad end in this way: “Mr. Parkman’s rapid success in business and his pleasant social qualities had won for him the kindly interest of our best people. His errors in the closing scenes of his bank should, we think, be attributed to his youth and ambition, and not to any mature fraudulent intentions concerning its affairs.” Epilogue Tragedy struck Parkman’s family following his death. His wife, Sadie, and their two small girls, Emily and Huntie, were “overwhelmed with the sad calamities of a few weeks and exciting the tenderest sympathies of the entire community” 16. John’s sister, Alla, and his former cashier, Charles Bruce Woods, delivered a baby boy just three months after his death, and named him John Parkman Woods. But only four months later, in December 1867, Alla died, and four days later, Charles’ mother died. Sadie, her two girls, Alla’s three small children, and John’s mother, Maria, were living together in Sturdivant Hall 2. But they had to sell the mansion in 1870 for $12,500, a mere fraction of their purchase price of $65,000. Selma, a growing city in the 1860s, eventually got another national bank, the City National Bank of Selma, three years after the failure of the First National Bank of Selma. The City National Bank of Selma had a much longer existence, from 1870 to 1983. The notes associated with John Parkman are a prized find. The City of Selma fractional notes and the Bank of Selma $20, $10, and $5 notes are more common than the $100 and $50 Bank of Selma notes, which are rare. Finding a $5 note from the First National Bank of Selma would be exception since none are known currently.7 References  1 Hardy, John. 1879. Selma; Her Institutions, Her Men. Times Book and Job Office: Selma, Alabama. 2 U.S. Censuses of 1850, 1860, 1870, 1880. 3 Garrett, William. 1872. Reminiscences of Public Men in Alabama, for Thirty Years, with an Appendix. Plantation Publishing Company’s Press, Atlanta, Georgia. 4 Stacks’ Bowers: http://www.stacksbowers.com/ NewsMedia/Blogs/TabId/780/ArtMID/2678/ArticleID/64741/A-Brief- History-of-Confederate-Currency-Printers-Leggett-Keatinge--Ball-.aspx 5 Rosene, Walter, Jr. 1984. Alabama Obsolete Notes and Scrip. Society of Paper Money Collectors. 6 Jackson, Sharon J. 2014. Selma. Arcadia Publishing, Charleston, SC. 7 Kelly, Don C. 2008. National Bank Notes. 6th edition. The Paper Money Institute, Inc. 8 Bergeron, Paul H. (editor). 1992. The Papers of Andrew Johnson. Vol. 9: September 1865 – January 1866. Univ. of Tennessee Press, Knoxville. 9 Bergeron, Paul H. (editor). 1992. The Papers of Andrew Johnson. Vol. 10: February-July 1866. Univ. of Tennessee Press, Knoxville. 10 Howard, Milo B. Jr. 1969. “John Hardy and John Reid: Two Selma men of letters.” Alabama Review 22, 44-52. 11 Dana, William B., editor. 1868. The Merchants Magazine and Commercial Reviewer. Vol. 59. William B. Dana, Publisher and Proprietor, New York. 12 “A grand bank swindle.” The Stillwater Messenger (Minnesota), Volume May 1, 1867: https://archive.org/details/jan2186617thes 13 "The Selma Bank Robbery - Suicide of the President, John M. Parkman," Selma Times, May 24, 1867, and Cincinnati Daily Enquirer (Ohio), June 3, 1867: www.newspapers.com/newspage/32009950 14 The Daily News and Herald (Savannah, Georgia): June 14, 1867. 15 “Suicide of a bank president at Selma, Alabama”: New York Times, May 25, 1867. 16 Sommerville, Diane Miller. 2014. “Cumberer of the Earth”: suffering and suicide among the faithful in the Civil War South.” In: Death and the American South. Craig Thompson Friend and Lorri Glover, editors. Cambridge University Press, UK. Acknowledgments: I thank Bill Gunther and David Hollander for valuable comments on a draft of the manuscript, Anne Knight for helpful discussions about John Parkman, and Catherine Gordon for her information and tour of Sturdivant Hall. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 371 Corporation of Richmond Virginia Currency Notes of April 19th 1861 by Josh Kelley--jkell1980@gmail.com edited by Bob Schreiner Richmond Virginia has a storied history as a place where revolutions intermittently begin or end. It should have been no surprise that when the Richmond City Council met on April 19th 1861, not even a week since the commencing of violence at Fort Sumter, that it would soon find itself in a situation to add to the list. Two days before, after voting against it less than two weeks earlier, the Virginia Secession Convention had voted to end the state's 72 year association with the United States of America. Governor John Letcher had then let it be known that “whatever Virginia does she is not going to be dragged out of the union at the tail of a Southern Confederacy.” Although the state had yet to announce an alignment with the Confederate States, the Richmond City Council could see the writing on the wall, and the financial and social problems that would come with secession. As the fire breathing increased, all of the Richmond banks suspended specie payment by Nov. 22 1860, and by 1861 specie had all but disappeared from circulation. By the time the violence erupted, currency used in the City of Richmond was notes of the various banks of the state (and elsewhere, particularly known solvent banks of North Carolina). Gold and silver coins were now hoarded by the banks, and when coin was found, it circulated at a significant, up to twenty percent, premium. The recently issued Treasury notes of the Confederate Government, which had started to circulate, were of little help since they had no place of redemption, and the local banks refused to take them on deposit. When the Richmond City Council was called to order on April 19th 1861, Council member Peachy Ridgway Grattan spoke to the necessity of having sufficient funds to meet the present and prospective needs of the city. In an attempt to procure the same, he submitted An Ordinance For the Issuing of Notes By the City. It was unanimously adopted the same day, with the Richmond Daily Dispatch commenting about the “wise acts of our council” and claiming “the propriety and necessity of the ordinance at this time cannot be questioned.” This measure allowed for a local currency receivable for taxes, water and light bills or any debt due or payable to the City of Richmond. These small change notes were also to be paid out for any debt due by the city and were to be exchangeable for any money or bank notes taken by the local banks. In a letter to the Council in November of that year, City Council President David Saunders, who had served in the role since 1857 and would continue to serve until Federal troop occupation on April 3rd 1865, stated that he had been authorized to contract with some entity to print the notes. He chose the Richmond lithography firm of Hoyer & Ludwig, Germans who had relocated to Richmond in the 1840's and who would become well known during the war for their State of Virginia currency as well as currency of Virginia localities and other entities. They would become one of the first and most prominent issuers of the Confederate States of America government currency up until their refusal to relocate to Columbia, South Carolina in 1862. Relocation was ordered by Confederate Treasury Secretary Christopher Memminger as Union General George McClellan closed in from the eastern peninsula in an eventual failed attempt to siege and capture Richmond. As recalled by Saunders, Lewis Hoyer himself traveled to the sympathetically Southern city of Baltimore where the paper for the notes was purchased for just over $700. Although there is no record of when the notes were received from the printers, it was clearly a very short process since the notes began to be signed on May 1st 1861, less than two weeks after the issue had been approved by the Council. The original ordinance had called for $300,000 worth of notes. These were to be signed as needed to avoid having over $10,000 worth at any time in the possession of Council Chamberlain Thomas Lawson, who was in charge of finances. The $300,000 would be the combined value of denominations of one dollar, fifty-cent and twenty-five cent notes. This was allocated as $200,000 in one dollar notes and $50,000 each of the fifty-cent and twenty-five cent notes. Three days later, with the Council's approval of a two dollar note, the amounts were altered to $100,000 each of the one and two dollar denominations, and the number of fifty and twenty-five cent notes staying the same. The twenty-five cent note was never issued. On May 4th, three days after they began to be signed, the one dollar Corporation of Richmond notes began to circulate. Local newspapers encouraged the population to get all the notes they wanted from the Chamberlain as “no one need be victimized a cent for silver.” When the fifty cent notes began to circulate five ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 372 days later, the City Council, in a move no doubt related to the recent release of city currency and at the urging of General Robert E. Lee, then in command of Virginia state troops, approved an appropriation of $500,000 for the defense of the city, the first time the Council would contribute to the fortifications then being built. In late May the Richmond Whig wrote that when the notes were released, the demand was so great that some notes were introduced to the public in sheets, with the receiver left to cut the notes apart. Although the original ordinance stated that President Saunders and Chamberlain Lawson must sign the new currency, Saunders son and another Council member, Moseley L. Stratton, were later approved to sign them. The demand for the local currency was so great that in mid-July two more Council members, David Judson Burr and Peachy Ridgway Grattan were approved for note signing duties. In early August the council approved $10,000 for the use of the Committee on the Defense of the City, with the loan to be paid in small Corporation of Richmond notes that the Richmond Examiner said were very much needed to make change in the State Quartermaster's Department. Shortly thereafter the Daily Dispatch reported that “twenty-five cent notes for making change are badly wanting in this city,” and expressed a belief that the Council had authorized that denomination. Nevertheless, the Council repealed the authorization for twenty-five cent notes, and authorized an additional $50,000 in two dollar notes, bringing to $150,000 the total approved value of all two dollar issues. The Council also permitted redeemed notes termed not fit for circulation to be destroyed. While even in October signs were still seen in barrooms cautioning that change would not be given, the notes had been successful, a temporary economic savior for the city. That same month, with the number of issued notes resulting in a higher number of hands and time needed to sign them, the Council decided to have the Finance Committee look into a “reasonable compensation” for the signing and numbering of city notes. Throughout the spring and summer of 1861, Richmond's military units received clothing, tents and other supplies from city funds, allowing the city to a large extent take care of its own troops. Such actions were funded in significant part by the Council's issue of notes. But this came to an abrupt stop in early November when the Circuit Court of the city indicted Saunders, Lawson and the city itself for misdemeanors. The Court ordered Saunders to stop issuing city currency. The Council had run afoul of a Virginia law making it unlawful to issue notes in denominations under five dollars. The city had been chartered as a Municipal Corporation and in its charter had been given “all the rights, franchises, capacities and powers appertaining to municipal corporations” including the right that “the council of the city may in the name and for the use of the city contract loans, and cause to issue certificates of debt or bonds.” With this legal authorization in mind, the Council had issued their currency under the name of the “Corporation of Richmond” as opposed to the “City of Richmond” as would be seen on later city issues of 1862. Saunders immediately went to work to save his scrip, campaigning for a state legislature act to legitimize what the city had already issued. He created a list of how $188,231.33 of the proceeds from the $278,542.50 worth of notes already issued had been spent: -$100,000 for equipping Richmond's volunteer troops in service of the Confederacy. -$50,000 loaned to the Confederate States of America central government. -$15,000 for defenses around the city (noting the total required would be about $100,000). -$7,000 for the cash payment on the “Confederate White House” bought for Jefferson Davis. -$7,942.34 for the furniture in Davis's house. -$5,000 for the support of the wives and children of the volunteers in service. -$3,288.99 for Davis's stay at the Spotswood hotel before the house was ready. On November 4th the city suspended the issuing of notes and officially asked for the Convention of Virginia, later to be known as the Secession Convention, and in session to draft a new state constitution, to legalize their act. While other local issuers such as the Southern Manufacturer's Bank scurried to call in and redeem their currency, hoping to avoid charges, the Council drafted their case to the State. They noted the banks' withdrawal of a large portion of circulating gold and silver, with that not being hoarded commanding a large premium. In late April, in an attempt to provide circulating currency, banks had been authorized to issue notes in denominations of under five dollars, although few had. Reissuing previously circulated small banknotes was also a problem since The Farmers Bank of Virginia was the only local institution with the “good sense” to retain any of their redeemed currency. The Council pleaded that they were being proactive when faced with the impeding war and the unwanted title of the Capital of the Confederate government, and that they were compelled to entertain all possibilities to provide funds for imminent expenditures. Richmond banks, they argued, had begun accepting small change notes of “the thousand and one banks of the other states,” institutions the solvency of ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 373 which a large portion of the population was ignorant. Surely a local, Council sponsored currency was safer than that. The Council was at a loss to understand how a law, however wise when enacted, could stand in the way of the resources that were needed to protect homes and defend against an enemy. Even Governor Letcher, while speaking out against the proliferation of individuals and institutions now issuing local shinplasters, had sanctioned the issue of the city's currency, calling the city “generous in their appropriations to aid in providing for our volunteers and their families.” Some of the Council's laundry list of good intentions read as a scolding as they chided “and now are we to be told that the families of our volunteers, now standing in defense against invasion, shall suffer for bread to eat and a fire to warm them, rather than the City of Richmond shall issue a one dollar or a two dollar note, as good and safe a currency as any bank in the state can issue.” If the state could still not see their point of view they added “it is whilst we have thus been exerting ourselves to guard the business interests of the city, to provide for the comfort of our volunteers in the camp and their families at home, to prepare Richmond itself for defense against our enemies, that we find ourselves arraigned as malefactors subject to fine and imprisonment for the adoption of the only measures within our power for the accomplishment of these objectives.” They enumerated uses that the noted had found, in being called for in large quantities for payment to troops and banks having no choice but to pay them out at their counters, stressing that bank notes had gladly been exchanged for them as “they are at least as safe as the notes of any bank in this state or elsewhere.” This assertion would be validated by February of 1863 when the Council's yearly report showed just less than ninety percent of the notes awaited redemption, demonstrating not only the necessity of the notes but also the public faith in them. They ended by respectfully asking the Convention to legalize their past actions and permit the notes. The letter stating the above arguments was approved by the Council on November 11th and it was decided that 200 copies would be printed for distribution. Meanwhile, in the same session, the Council recommended specific payment to members for signing the currency. Eight people were to be paid for their part in signing and issuing of notes. The recommendation took care to point out that the Finance Committee had doubts about paying anyone at all, and that there was no suggestion of payment for future services or extra labor. The proposed payment evidently caused a stir, with the Daily Dispatch reporting the members in considerable discussion with one another. Some members willing to add more pay and some members were unwilling to provide any additional compensation for what many outside the Council saw as duty related to their appointment and already sustained by their current salaries. The Richmond Whig reported that Saunders had inquired at the Richmond branch of the Farmers Bank of Virginia, which held the majority of the City's assets, and was told that clerks there received $1.25 for signing every one hundred sheets and $2 for numbering one hundred sheets. These payments were based on four-subject sheets. According to Saunders calculations, if the same rates were payed for signing and numbering the Corporation of Richmond notes, three members would be due significantly more money than was already offered. He was no doubt referring to himself as signing the notes had occupied him six months and two weeks, “to the almost total neglect of his private business.” On November 29th the Virginia Convention declined to act on the Council's plea to legitimize their currency. They stated that they were determined not to act on any subject that may be acted on by the General Assembly, which was about to be in session. In December the Daily Dispatch noted that while the populous was opposed to the endless variety of shinplasters being issued by irresponsible private parties, they were “almost clamorous for the convenient currency furnished by the corporation,” whose notes were known to be “good and useful.” The Council resolved to present the petition to the General Assembly. On March 19th & 29th 1862 the Legislature of Virginia passed an act validating the Corporation of Richmond currency notes of April 19th 1861, unburdening the City Council from spending any more time on the matter. Prices had started to skyrocket and for the first time the city sensed its own mortality. Although the banks that had been closed during McClellan's advance would reopen on August 6th of 1862, thus allowing Chamberlain Lawson to no longer secure the city treasury in his office, Richmond's economic situation would continue to spiral downward. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 374 Cast of Characters: David Judson Burr (1820-1876) – Born in Richmond and a Yale University graduate. After graduating he had returned to Richmond and studied law under fellow Council member Grattan. Investing into different industries, he co-founded the manufacturing firm of Spiller & Burr. This company would secure the first Confederate Ordnance Department contract for pistols, producing a Navy revolver that is highly sought after by collectors to this day. Burr served on the City Council for seven years, from 1859-1866. He was concurrently a member of the Virginia House of Delegates from 1863-64 and founded the Richmond Chamber of Commerce in 1867. Signer of the $1 notes. He is buried in Hollywood Cemetery in Richmond. 50 Cent Corporation of Richmond April 19th 1861 Featuring Richmond City Hall in center Amount issued: $44,741.50 (89,483 notes) Signers: For Chamberlain: Moseley L. Stratton For President: David Saunders Jr. $1 Corporation of Richmond April 19th 1861 Amount Issued: $83,801 (83,801 notes) Signers: President: David Saunders For President: Peachy Ridgway Grattan (P.R. Grattan) Chamberlain: Thomas Lawson For Chamberlain: David Judson Burr (D.J. Burr) Note: Contemporary Counterfeits exist with printed signatures of Burr and Grattan. Some of these also have printed serial numbers. $2 Corporation of Richmond April 19th 1961 Featuring Governor John Letcher in center Amount issued: $150,000 (75,000 notes) Signers: President: David Saunders Chamberlain: Thomas Lawson Note: Contemporary counterfeits exist with printed signatures of Saunders and Lawson. Some of these also have printed serial numbers. It is interesting to note the frequency in which these notes are seen with contemporary backings. In this authors opinion it is a testament to the vast circulation that these notes found in the harsh military and civilian life. This backing would seem to show the owner having more faith in the value of the Corporation of Richmond note than the Confederate States of America currency that it is backed with. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 375 Peachy Ridgway Grattan (1801-1881) Home schooled, he moved to Richmond in 1835 to study law and by 1840 he was a reporter for the State Court of Appeals. He served in this position until his death, becoming author of the reports of the Court known as the “Grattan Reports”. As a practicing lawyer he was prominent in the political as well as civic affairs of the city and state. Elected to the City Council in 1858, he served this role until 1863. In 1865 he was again elected to the City Council as well as the Virginia House of Delegates. Signer of the $1 notes. He is buried in Hollywood Cemetery in Richmond. Thomas Lawson (died 8/7/1864) - As Chamberlain of the City Council he was in charge of city finances, serving in this role since 1855. He resigned his position on December 9th 1861 due to ill health. Signer of the $1 and $2 notes. David Jason Saunders Sr. (1811-1873) Moved to Richmond in 1833 and worked as a grocer. He served on the City Council for 18 years starting in 1847. Ten years later in 1857 he was elected Council President, being continuously reelected in this position until Federal troop occupation in April 1865. He was also elected to the Virginia House of Delegates three times during the war years. During Federal occupation, in June 1865 he was appointed Provisional Manager of the City by the Governor. In July he was reelected to the Council and soon became the Council-elected Mayor, serving until a proper election could be held in 1866. He was then again reelected to the Council until being removed by Federal authorities in 1868. Having always been active in the financial community, he served both the Bank of Virginia and the Farmers Bank of Virginia in the bankruptcy proceedings following the war. Signer of the $1 and $2 notes. He is buried in Hollywood Cemetery in Richmond. David Jason Saunders Jr. (1838-1872) Son of Council President David Saunders Sr. Shortly after selling his grocery business in 1860, he was elected 2nd Clerk in the City Auditor's office, resigning this office in October 1862. Signer of the 50 cent notes. He is buried in Hollywood Cemetery in Richmond. Moseley Ligon Stratton (1802-1863) Register of the Richmond City Water Works until being elected City Auditor. He served five years in this position until his death in June 1863. Signer of the 50 cent notes. Timeline: 4/12/1861- Hostilities commence with the battle at Fort Sumter, SC. 4/15/1861- President Lincoln calls for 75,000 troops to put down the rebellion in South Carolina. 4/17/1861- The State of Virginia secedes from the United States of America. 4/19/1861- Richmond City Council passes ordinance for issue of 1861 notes. 4/22/1861- Richmond City Council amends note ordinance, regarding amounts and denominations. 4/23/1861- Major General Robert E. Lee accepts command of all Virginia forces. 4/24/1861- The State of Virginia votes to join the Confederate States of America. 5/1/1861- Corp. of Richmond notes begin to be signed. 5/4/1861- Corp. of Richmond $1 notes first appear in circulation. 5/9/1861- Corp. of Richmond 50 cent notes first appear in circulation. Richmond City Council appropriates $500,000 for the defense of the city. 5/13/1861- David Saunders Jr. and Moseley L. Stratton approved to sign notes. 5/29/1861- Jefferson Davis arrives in Richmond and resides at the Spotswood Hotel at city expense. 6/6/1861- All Virginia forces are transferred to the command of the Confederate States government. 7/13/1861- Richmond City Council passes ordinance allowing Burr and Grattan to sign notes. 7/21/1861- First major Civil War battle happens at Manassas Junction, VA. 8/12/1861- Richmond City Council appropriates $10,000 for use of the Committee on the Defense of the City. Loan to be paid in small Corp. of Richmond notes which are very much needed for change in the Quartermasters Department. 8/26/1861- Richmond City Council repeals issue of 25 cent notes, allows for another $50,000 of $2 notes to be issued, now totaling $150,000 in $2 notes. Council also passes ordinance allowing redeemed notes that are termed not fit for circulation to be destroyed. 10/14/1861- Richmond City Council has Finance Committee look into reasonable compensation for signing and numbering city notes. 11/1/1861- Superior Court of Richmond orders city to stop issuing notes. 11/4/1861- Richmond City Council suspends any further issue of notes. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 376 11/11/1861- Council drafts letter to State Convention in support of its issuance of notes. Council approves pay for signers of notes. 11/29/1861- Virginia Convention declines to act on the Council's plea to legitimize their currency. 3/29/1862- VA General Assembly passes act allowing certain localities to issue currency notes of less than $1, to an amount not exceeding $500,000. Any notes already in circulation to be included in this amount. Richmond City Hall in July 1865. Richmond City Hall, April 14th 1865. Sources: -Manarin, Louis H. Richmond at War: The Minutes of the City Council 1861-1865. Chapel Hill: The University of North Carolina Press, 1966. -Thomas, Emory M. The Confederate State of Richmond: A Biography of the Capital. Baton Rouge: Louisiana State University Press, 1998. -Norman, Matthew W. Colonel Burton's Spiller & Burr Revolver: An Untimely Venture In Confederate Small Arms Manufacturing. Macon: Mercer University Press, 1996. -Littlefield, Charles Edgar. United States Supreme Court. Commonwealth of Virginia vs. the State of West Virginia, In Equity. Vol. 1 Part 2: Record of Hearings. Charleston, W.V.: A.A. Lilly, 1914 -Richmond Whig, 1861 -Richmond Daily Dispatch, 1860, 1861 -Richmond Examiner, 1861 -findagrave.com Image Credits: -Richmond City Hall illustration courtesy of harpersweekly.com. -Richmond City Hall image courtesy of the Library of Congress. -Corporation of Richmond currency note images courtesy of Heritage Auctions. -David Judson Burr image courtesy of the Richmond Chamber of Commerce. -Peachy Ridgway Grattan image courtesy of the Valentine Museum, Richmond Virginia. -Backed currency note image courtesy of Bob Schreiner. Peachy Ridgway Grattan David Judson Burr ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 377 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: lyn@lynknight.com - support@lynknight.c om Whether you’re buying or selling, visit our website: www.lynknight.com Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency Isaac Young and the Bank of Saint Croix  by R. Shawn Hewitt  Almost as soon as they made their public debut, notes of the Bank of Saint Croix were perceived  as fraudulent.  While the bank never had a physical presence or the sanction of a Minnesota legislature,  an argument can be made  that  the man behind  the notes was more naïve  than corrupt.   His  idea  to  create a bank of issue in the new Minnesota Territory was instead a poorly conceived plan to start a new  career  at  a  time  of  mid‐life  change.    This  is  the  untold  story  of  Isaac  Young,  the  man  who  was  responsible for the earliest of Minnesota banknotes.  Before St. Louis claimed  its title of Gateway to the West, there was Cincinnati.    Its  location on  the  Ohio  River  greatly  facilitated  travel  to  points west  before  overland  routes  became  established.   Opportunity was everywhere, especially for young men anxious to learn a trade.  By 1836, a 24‐year old  man  in Cincinnati named Isaac Young had put away his timber saw and taken up a new skill as saddler  and leather worker, opening a shop on busy  Main Street.   He was quite good.    In  just a  few  short  years  he  and  his  teenage  apprentice were routinely being recognized  by  their  peers  and  winning  awards  at  competitions  for  the quality of  their work.   Among  Isaac’s  achievements  were  accolades  from  the  fairs of  the Mechanics’  Institute  in Cincinnati and  the American  Institute  in New York.   He would  later  judge  competitions of  the  trade at  state  fairs.   Correspondingly,  his  business  enterprise  at  100  Main  Street  prospered.  His elegant engraved full page advertisement in the  1844 city directory was the publication’s virtual centerfold, and  suggested a level of sophistication associated with his products. On his 32nd birthday, on January 12, 1844, Isaac married  Eliza McLean, daughter of Major Nathaniel and Hester McLean,  at  their  home  in  Lebanon,  Ohio,  just  to  the  northeast  of  Cincinnati.  Eliza was almost twenty years old, and undoubtedly  met Isaac through her father, who viewed the talented saddler  as being a good choice of husband for his daughter.   Isaac and  Eliza had a son later that year.  Early advertisement for Isaac’s saddlery business in Cincinnati. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 379 By 1847, Isaac reached the pinnacle of his profession by earning the U.S. Government contract  for making mail carriers’ saddle bags for the next four years.  But this time marked a turning point in his  life, and his growing family probably had much to do with it.  Influences from the family, both his own  and  that of Eliza’s parents,  led  Isaac  to  sell his business on Main Street  to Slocum & Hickey  in 1848.   Nathaniel McLean  was  about  this  time  appointed  to  be  the  next  Indian Agent at Fort Snelling in the  unorganized  area  known  as  Minnesota, which was on the path  to  soon  become  the  nation’s  newest  territory.    The  role  of  the  Indian  Agent  was  to  be  an  advocate  for  Indians  in  their  dealings  with  white  men;  something  that  Nathaniel  thought  was  both  noble  and  adventuresome.   For better or worse, Isaac and Eliza decided to follow her father and their family to start a new  life  in  the West.   The entire population of Minnesota at  that  time was only about 5,000  inhabitants,  whereas Cincinnati alone was a city of over 100,000.   Resuming his profession as a saddler was not a  practical option.   Having  the proceeds of his  former  shop put  Isaac  in  the class of “capitalists,”  so he  thought, and  the concept of putting his money  to work appealed  to him.   Having seen  the success of  local bankers, and having considered the opportunities of a new territory, he conceived the idea to open  the first bank in Minnesota.  In preparation for his bank, Isaac contracted with Danforth and Hufty in New York to execute a  $1‐$2 plate of banknotes.   His knowledge of their new destination suffered as he directed the  location  to be engraved as “St. Pauls, Minesota” (sic).  As a matter of Ohioan pride he also selected the portrait  of Ohio Senator and politician Thomas Corwin, who was also from Lebanon, to appear on the $1 note.   Certainly Isaac personally knew Corwin, at least through the McLean family, and while it would have lent  credence  if  the  notes were  to  circulate  in  Ohio,  it was  a  bit  shortsighted  for  Isaac  to  assume  that  Minnesotans would recognize or appreciate the Corwin effigy.   Nonetheless, all agreed that the notes  were  handsomely  engraved  and  professionally  executed,  and  not  the  routine  work  of  fly‐by‐night  fraudsters that plagued the era.  Isaac likely tried to reach out to individuals who could help steer authorization of a bank through  the political process.   Congress approved the establishment of Minnesota Territory on March 3, 1849,  but the government was not installed until June 1, when Alexander Ramsey took office as governor.  It  was later said that Henry Jackson, a legislator in the first Minnesota Territorial House of Representatives,  was  supportive  of  granting  authority  to  the  Bank  of  Saint  Croix,  but  after  the  fiasco  that  would  eventually erupt, he flatly denied it.  Nathaniel was also busy in preparing for the move, as he decided to resume his former career as  a newspaper publisher, an activity with which he could engage while Indian Agent.  Rather than starting  anew,  he  bought  an  interest  in  an  existing paper,  and  formed  the partnership of McLean & Owens,  publishers of  the Chronicle and Register.   Nathaniel  learned  the printing business at  the office of  the  Liberty Hall in Cincinnati.  In 1806 his brother, John McLean, who would much later become a Supreme  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 380 Court Justice, started a newspaper  in Lebanon called the Western Star.   Nathaniel was one of the first  printers who worked on the Star.    As  the expected  time  to move approached,  it became clear  that  there would be delays.   Eliza  was expecting another child, who was born in Cincinnati on June 14, 1849.  The McLean family was also  delayed due to  illness.   The families finally arrived  in St. Paul via riverboat  in August 1849.   Nathaniel’s  newspaper enterprise took off immediately, publishing their first edition the same month he arrived.    There  was  no  apparent  progress  on  getting  recognition  for  the  Bank  of  Saint  Croix  in  the  legislature, however.  At this time Isaac made the critical mistake of acting outside of his good judgment,  and  tried  to make his Bank of Saint Croix gain popular support  through his own promotion.    It was a  complete  failure  that would  result  in his  self‐imposed exile  from Minnesota.   The Pioneer of St. Paul  rendered its account on November 15, 1849:  Sometime in September last there came to Saint Paul a burly looking middle aged man  of medium stature dressed in a drab suit and wearing a drab colored fur hat who called  himself Isaac Young and represented that he had formerly been a saddler in Ohio.  This  man closeted himself with a Mr. Sawyer who was then in Saint Paul and got him to sign  a  large number of handsomely engraved pieces of paper on which were engraved  the  words  Bank  of  Saint  Croix  Saint  Paul Minnesota  or  something  of  that  purport.   Mr.  Young disappeared from Saint Paul.  The next we hear of Mr. Young he is in Saint Louis  buying printing paper and negotiating for goods to send to Saint Paul.  Notes of the Bank  of Saint Croix at Saint Paul are quoted  in  the Eastern bank note  lists at one per  cent  discount  the quotation being  furnished by some accomplice  in  the  fraud  living  in Wall  street New York.   Mr. Young has not reappeared  in Saint Paul and probably never will.   Mr. Sawyer we learn was duped in this affair.  We don’t know who Mr. Sawyer was.  Whether Isaac told a convincing story of his future plans  for the bank, or how much Sawyer was paid will be forever unknown.  It is interesting to note that in St.  Louis  Isaac used his banknotes  to buy printing paper  for his  father‐in‐law’s newspaper business.   This  account also begs a second question, of how did Isaac get the banknote reporters to extend a favorable  quotation for his notes.  In the January 1850 edition of their Counterfeit Detector, the St. Louis publisher  Presbury & Co. stated  that  they had stricken  the Bank of Saint Croix  from  the Detector, and gave  the  following explanation:   A  few  days  previous  to  the  issuing  of  our  October  number Mr.  Daniels  of  this  city  introduced to us a gentleman by the name of Young who informed us that he with some  other capitalists were about to establish a bank at St. Paul and showed us two notes one  of the denomination of one dollar and one for two dollars.  He also stated that but few  had  been  signed  and  that  no  more  would  be  issued  until  the  charter  had  been  sanctioned  by  the  authority  of  law.    He  left  those  two  notes  with  us  and  money  sufficient  to  redeem all  that was  issued.   Upon  this  representation we mentioned  the  money  in  the Detector  giving  holders  of  the  notes  information when  they would  be  redeemed.  Since the mention of the paper above alluded to we have been advised that  it is improbable that the Legislature of the Territory will grant any such charter.  If nothing more was known of  Isaac Young  than  these commentaries surrounding  the Bank of  Saint Croix, then the conclusion that his contemporaries drew do not seem overly harsh.   But there  is  more  to  his  story.    The  scheme would  have  been  a  fraud  if  Isaac  floated  notes  that  could  not  be  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 381 redeemed, regardless of whether there actually existed a Bank of Saint Croix.  While we don’t know how  much money Isaac left with Presbury & Co. for the redemption of notes, there is no evidence to suggest  that anyone of the public was left holding worthless banknotes.  Contemporaries cite as much as $700  of Saint Croix notes were circulated, which is an amount that is relatively constrained; that is, he could  have  issued much more  if he was determined  to execute a  fraud.   Furthermore,  Isaac would a couple  years  later make  it  relatively easy  for any  such note holder  (or newspaper)  to  track him down, as he  resumed  to use his name  and his  familiar  looking banknotes  in  a quasi‐legitimate banking operation  downstream in Memphis.  According  to  the 1850  Federal Census,  the McLean  family had  settled  at  Fort  Snelling  in  the  newly  organized Minnesota  Territory.   Nathaniel’s  occupation was  given  as  printer.   Also  living with  them  was  Eliza  Young  and  her  children,  but  Isaac  was  not  among  them.    In  fact,  he  was  not  in  enumerated  in any Federal census.    It was clear to  Isaac that his reputation  in Minnesota and  in river  cities as far south as St. Louis, was severely damaged due to his  imprudent actions.   He made himself  scarce in the upper Mississippi River valley through 1851.  In early 1852 a group of capitalists in Memphis, including Isaac Young, sought a charter from the  Tennessee  legislature to open a savings bank, patterned after one already operating  in Nashville.   This  one would be known as The Memphis Savings Institution.  Having learned his lesson, Isaac secured the  proper authorization before circulating banknotes.  After receiving the charter, Isaac had the plate of the  Bank of Saint Croix notes altered to that of The Memphis Savings Institution.    The overall design similarity is readily apparent.  Close examination of the Memphis notes shows  where the lettering of the Minnesota bank was worked out of the plate, and then engravers at Danforth  engraved new text  into the plate.   Some elements of the original design,  like the date  line that passes  through the large numeral “1” could not be removed, and remain on the Memphis version.  Sometime  after  the  earliest  of  the Memphis  notes  circulated,  the  plate was  altered  again  to  include  a  line  for  Register, which seems to imply that the notes carried an endorsement from a state authority.  In point  of fact, the Savings Bank charter had little in the way of consumer protection, and it is evident that Isaac  took the easiest possible route to the profession of banker.  Isaac himself signed his name as Register on  some of those early notes.   The Memphis banknotes were certificates of deposit  instead of traditional  banknotes, and were loosely regulated as such.  There is little doubt that Isaac depended on the typical  non‐redemption of a percentage of banknotes and lack of regulation for the profitability of his bank.  In connection with his Memphis Savings Institution, Isaac operated under the name of the Bank  of the State of Tennessee.  He advertised his bank in Evansville, Indiana, and likely other towns along the  Notes of  The Memphis  Savings  Institution.    Isaac  Young  signed  the $1 note  as president.    The $2 note was probably issued after Isaac left the operation in 1857.  $1 note from the author’s collection; $2 note courtesy of Heritage Auctions  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 382 river highways.   Some of The Memphis Savings  Institution notes are stamped with a guarantee by the  Bank of the State, seemingly a self‐serving gesture.  It is unknown if Eliza and the children moved to Memphis with Isaac, or whether she chose the  stability of her parents and siblings in Minnesota Territory.  The journey from St. Paul to Memphis was  closed for the winter months, but otherwise the Mississippi River was a virtual highway, with frequent  and routine steamboat traffic in the early 1850s.  It would not be difficult for either party to venture to  St. Paul or Memphis.  Isaac may have had a good sense of timing when  it came to start a new career.    In May 1857,  after the river had opened for transportation for the season, Isaac  left the banking business  in time to  avoid the financial conflagration of the Panic of 1857.  He and his family moved to Leavenworth, Kansas  Territory  to  start  a new  life once  again.   By 1860,  Isaac had  redirected his  capital  into  a  saw mill  in  Leavenworth, returning to the occupation of his youth, although this time he was running the operation.   His mill had  ten workers who on average earned $40 per month and produced 80,000 board  feet of  lumber a year worth $120,000.   At this time his daughter Hessie was eleven years old, but her siblings  were no longer living with the family.  Isaac had  taken on  the  title of Colonel upon moving  to Kansas, another self‐serving effort.    It  certainly  sounded  like  it  commanded  respect,  though  it  is  doubtful  that  Isaac  shared much  of  his  previous life with the people of Leavenworth.  He came in with wealth to start a new business, and that  is all that people needed to know.  In these later years he would go on to earn the trust of Leavenworth  and become  a public  servant  to  some measure.   The highlight of his public  service was  to  represent  Kansas at the 1867 Paris Exposition, where he spent four months promoting the merits of Kansas to the  world.  Isaac’s wanderlust  of  1849  returned  in  1875  as  he moved with  Eliza  to Dodge  City,  Kansas,  trading  in  the  saw mill of  Leavenworth  for a grocery and provision business.   The  Leavenworth Daily  Commercial early that year recited a newspaper clipping from Dodge City:  Col. Isaac Young, who  is well known to every Leavenworthian at this place, he  looks as  hale and hearty as ever and weighs almost as heavy as “fatty Brown.” He has a splendid  tract  of  land  adjoining  the  city,  besides  several  houses  and  town  lots.   He  has  been  recently  in Colorado where he  invested  largely  in silver mines which promises to yield  largely.  The Colonel attends strictly to his business.  But his obituary appeared only a few short months later in the Leavenworth Times:  At  Leavenworth,  Kansas, Wednesday,  November  3rd,  1875,  Col.  Isaac  Young,  in  the  (63rd)  year  of  his  age.    Funeral,  Friday  at  10  a. m.,  from  the  late  residence, No.  510  Shawnee street.  Friends are invited to attend.  Thus ends the story of  Isaac Young.   There  is no question that he was skilled with his hands  in  the manufacture of leather goods.  When it came time to change careers he was determined to succeed,  although he would be among  the  first  to concede  that he made mistakes along  the way.   He quietly  redeemed himself in later years and earned again the respect in his community that he cherished during  his early years in Cincinnati.    ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 383 Acknowledgements:  Thanks  to Wendell Wolka  for  identification of  the Corwin portrait,  and  to  Dennis  Schafluetzel  for  data  on  the  Memphis  Savings  Institution.  Sources:  Acts of the State of Tennessee, Passed at the First Session of the  Twenty‐ninth General Assembly for the Years 1851‐2. Nashville:  Bang & McKennie, Printers to the State, 1852.  The Banner.  Louisiana, Missouri: May 31, 1847.  Boucher, John Newton, and John W. Jordan.  History of  Westmoreland County, Pennsylvania.  New York: Lewis Pub., 1906.  Cincinnati Directory, for the Year 1829.  Cincinnati:  Robinson and  Fairbank, 1829.  Cincinnati Directory Advertiser, for the Years 1836‐37.  Cincinnati:   J. H. Woodruff, 1836.  Eliason, Adolph O. "Beginning of Banking in Minnesota." Minnesota Historical Society Collections (1908).  Kansas, 1860 Federal Census: Population Schedules. Washington: National Archives & Records  Administration, 1950.  Kimball & James' Business Directory for the Mississippi Valley, 1884.  Cincinnati: Kendall & Barnard.   Leavenworth Daily Commercial.  Leavenworth, Kansas: Apr. 19, 1875.  Leavenworth Times.  Leavenworth, Kansas: Apr. 26, 1874; Nov. 4, 1875.  Leavenworth Weekly Times.  Leavenworth, Kansas: Nov. 20, 1913.  Minnesota, 1850 Federal Census: Population Schedules. Washington: National Archives & Records  Administration, 1964.  Morrow, Josiah.  The History of Warren County Ohio.  Part III.  Chicago: W. H. Beers Co., 1882.  Patchin, Sydney A. The Development of Banking in Minnesota. St. Paul: MN Historical Society, 1917.  Pioneer.  St. Paul, Minnesota: Nov. 15, 1849; Jan. 2, 1850.  Proceedings of the Second Annual Fair of the Ohio Mechanics' Institute, Held during the Third Week in  June, in the City of Cincinnati.  Cincinnati:  Ohio Mechanics' Institute, 1839.  Rainey’s City Memphis Directory, for 1855‐6.  Memphis: E. R. Marleit, M.D. & W. H. Rainey, 1855.  Schafluetzel, Dennis, and Tom Carson. "Tennessee Obsolete ‐ Merchant Scrip & Banknotes." N.p., n.d.  Web. 04 May 2016. .   Transactions of the New York State Agricultural Society for the Year 1841.  Albany: New York State  Agricultural Society, 1841.  The Western Address Directory, for the Year 1837.  Baltimore: W. G. Lyford, 1837.  Williams, J. Fletcher. A History of the City of St. Paul to 1875. N.p.: Minnesota Historical Society, 1983.  Williams’ Cincinnati Guide &General Business Directory for 1848‐9. Cincinnati: C.S. Williams & Son, 1848.  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 384   Before and  after  comparison  of the  notes.  ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 385 The Obsolete Corner The Peoples Bank of St. Peter, Minnesota by Robert Gill As the year begins to wind down, I've had another good one as far as my Obsolete sheet collection goes. A few good auctions have produced some nice sheets for me to enjoy, and at this past June's Memphis show I acquired a very tough one. Memphis, in itself, was not a show that gave me the opportunity to make a notable addition to my collection. But thru a pre-arranged deal I made a fabulous acquisition. In this issue of Paper Money, I'm going to share with you my Memphis trophy, that being, The Peoples Bank of St. Peter, Minnesota. In his excellent book, A History & Catalogue of Minnesota Obsolete Bank Notes & Scrip, Shawn Hewitt tells us that John W. North and Franklin Steele, both Minnesota residents, filed to organize The Peoples Bank on March 23, 1859. It was to do business in St. Peter, Minnesota. Operating capital was to be $50,000. While the bank used Minnesota Railroad Bonds to back its circulation, it survived attempted runs and redeemed its notes in specie. On March 24, 1859, the state auditor authorized Bald, Cousland & Co. to engrave a 1-2-3-5 plate. A total of 7,000 sheets amounting to $77,000 were printed. The bank’s first issue of notes was May 27, 1859. On October 3, 1859, this institution changed ownership. St. Paul resident Erastus S. Edgerton purchased the bank. Delos A. Monfort served as cashier. In 1866, $5,000 of railroad bonds worth about $900 remained with the auditor to secure the remaining $2,700 outstanding at the time, although all notes that were presented for redemption were paid at par. Later that same year Edgerton closed the Saint Peter office, and under the National Banking Act, organized The Second National Bank of Saint Paul. Of the $41,049 in notes that were issued, at the bank’s closing, $1,620 was left unredeemed. When I took possession of this sheet from the previous owner, he told me that at one time he knew of 3 surviving sheets on this bank. But he also knows that the other two have been cut into singles. Because we don't know what is "hiding in the wood work", we have to use the term UNIQUE very cautiously. But this prize is probably the only surviving one left. With the availability of Minnesota remainder sheets being extremely low, I was elated when this one came my way. As I always do, I'd like to invite any comments to my personal email address robertgill@cableone.net I can also be contacted by my cell phone (580) 221-0898. Until next time, HAPPY COLLECTING. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 386 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 387 INTERESTING MINING NOTES by David E. Schenkman A Rare Note from Hiteman, Iowa Collectors of mining scrip soon learn that the absence of the word “coal” or “mine” in the issuer’s name doesn’t necessarily mean the note wasn’t issued by a mining company. Frequently coal companies owned general merchandise stores which were operated as “supply” companies. There were various reasons for doing this; for example, according to Scrip, a book written by Stuart E. Brown, Jr. and published in 1978, a Pennsylvania “Act of June 9,1891 prohibited the operation of company stores. However, both the limitation and the prohibition often were evaded through the simple expedient of forming a separate entity, usually a corporation, to own and operate a company store.” For this reason, most twentieth century Pennsylvania scrip does not mention coal, but instead has “supply company,” “mercantile company,” or something of the sort. Named after John Hiteman, a local farmer who owned extensive tracts of land in the area, the unincorporated town of Hiteman, Iowa was established on September 1, 1890. I haven’t found anything to suggest that Hiteman was associated in any way with either the coal mine or the supply company. However, he sold mineral rights and land to the Wapello Coal Company, which was incorporated in 1880 and was owned by the Chicago, Burlington, and Quincy Railroad. Wapello, one of the largest mining companies in Iowa, came to Hiteman in 1890, after their mines at Kirkville were exhausted. The town grew rapidly, and by the mid-1890s had a population of nearly fifteen hundred people, most of them miners. Many of them relocated from other areas where the mines had petered out, and some of them even cut their houses in half and took them along. According to an early history, “the lots of Hiteman were also leased to the people to put their own house on. One of the first leases, dated May, 1891, stated that the person leasing the ground could erect a one frame dwelling and the necessary out building. Terms: one year for $7.00 in advance.” According to an 1896 history of Monroe County, the Hiteman Supply Company was incorporated in 1890 and was the largest mercantile store in the county. It was also the only such business in the town. The president of Wapello Coal Company, J. C. Peasley, was also president of Hiteman Supply Company. In 1916 the Hiteman mine was acquired by the Smoky Hollow Coal Company, who continued to operate it until the late 1930s. In addition to the illustrated five cents note, which is dated 1890, a twenty-five cents denomination is also known. Hiteman Supply Company also issued aluminum tokens dated 1897; 5 cents and 10 cents denominations are known. The notes and tokens are all rare, and I feel sure other denominations of each type were issued. A logical assumption is that the metal tokens were issued because the company felt they would last longer than their paper counterparts, and would thus be less expensive in the long run. Numismatic items such as these were normally used as advances against pay, and of course they could only be spent in the company-owned store, where prices were generally higher than they were in independent stores. So, they kept the miner in debt to the company. There is a lot of truth to the words in the song Sixteen Tons, which was written by Merle Travis and made a hit by Tennessee Ernie Ford: “Saint Peter, don't you call me, cause I can't go, I owe my soul to the company store.” ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 388 Comments, questions, suggestions (even criticisms) concerning this column may be emailed to dave@turtlehillbanjo.com or mailed to P.O. Box 2866, La Plata, MD 20646. ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 389 President’s Column Sept/Oct 2016 There were many positives to reflect upon when it comes to the 40th and final International Paper Money Show held in Memphis. While there will be memories for years to come, many Board members reported that enthusiasm for the future of the show was at a high level. So many participants are eager to continue their participation as we move forward to Kansas City. One thing we will be looking at is to establish a relationship with the Kansas City Federal Reserve and look toward setting up some educational activities in conjunction with SPMC and the Paper Money Show in Kansas City next year. Your Board is open to ideas, leadership to drive the activity and participation, so please contact me. It is with great sadness that we learned of the passing on June 25 of Chester L. Krause. Chet was a founding member of the SPMC, a member of the Hall of Fame, friend and mentor to many collectors, a numismatic pioneer, and a man of incomparable generosity. I’ve immensely enjoyed his publications over the years and, more recently, the pleasure of knowing this great man personally. I enjoyed meeting with him at ANA and other events and learning from his vast experience about numismatics history, cool things to collect and how. We miss him already. Check out the calendar at the Society’s web site - http://www.spmc.org/calendar. You will find many events logged to help you plan future trips. The calendar is also open to add things to as you see fit, just click the “Members: Add an event” link at the upper left of the calendar. There is a pretty rich set of events already logged and you can peruse these into the future months as well. See the advertisement section at – https://www.spmc.org/ads. This is a great way to reach fellow collectors and dealers and you accumulate the points to do so using classified ads! Members of SPMC are awarded 2000 points annually, which can be used to purchase classifieds ads. Points equate to $0.01 each. The current rate for classified ads is $0.15 per word per month. You can place your classified ad by clicking here: Create a Classified Ad. Graphic Ads are priced at $30 per month. Discounted rates are available for multiple concurrent ads. The blog section of the website is another interesting place to visit - https://www.spmc.org/blogs. Loren Gatch does a wonderful job summarizing and posting the weekly news and events from our hobby. Occasionally there are other blogs, it would be good to see more. Additionally, another section to pay a visit to is the SPMC forum where online discussions take place - https://www.spmc.org/forums/forums/general- discussion. Here we see a variety of topics about paper money questions ranging from obsolete scrip notes to large size vignettes and many other topics. This is an easy to get involved area of the Society by posting questions and answering others. It’s a good way to meet fellow paper money aficionados virtually if you cannot make it to Kansas City, ANA, GNA or FUN shows where we have significant presence. SPMC also has dealer members set up at numerous other shows and you can check out our dealer list on the web site. The obsolete database continues along. At the July Board conference call, VP Shawn Hewitt reported that his Memphis presentation went well and was well received. Next steps include working to get Washington DC designs in the Database. The Ohio Design is uploaded. We are using monies from the Wismer Fund to make the obsolete database even stronger and easier to use. Since this fund was setup to fund obsolete publishing projects and this online database represents a newer form of publishing it only make sense to do this to enhance the hobby. We are looking for a couple of leaders to fill open Board seats; we have one candidate moving through the process now. While you don’t have to be a Board member to lead meetings, do presentation or lead major or minor projects, the opportunity exists for those who want to shape the future of the hobby. Have a great numismatic autumn! Pierre Fricke ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 390 Editor Sez Well, fall has fell—almost anyway. We set a new heat record last week as it was 107o F on Friday with a heat index of 123o F due to the humidity. Even in Texas that is hot! But, the very next day it was only 97o F and raining and it has been raining off and on for a week. Really rare here in that great stated of Texas. That all means that school is ready to start. I have been working for quite a while to get things ready and opened my clinic this week to prepare for the 5,000 soph- senior student that enter the hallways tomorrow (Monday 8/22— already well underway by the time you read this)! Unfortunately, we start off this issue with new of the passing of the great and legendary Chet Krause. Chet was a real gentleman’s gentleman. He did so much not only for our hobby but for the city of Iola and other collecting groups as well. Chet will be sorely missed but I encourage you to all take after him and do as much as you can to give back to others. Not just money, but time which can be more important and influential than money. I want to thank Mark Anderson for putting together the wonderful piece on Chet that leads this tome. R.I.P. Chet! I write this just after the ANA show in Anaheim and here it was a good show. The highlight to many who read this was the Stack’s auction of the Paymaster collection of MPCs. In it were many notes that range from rare to almost non- collectible including the never before released Series 701 notes. In May, Fred Schwan asked me about doing an issue focused on MPC not only to coincide with this auction, but also with the anniversary of MPC. In September 1946, the first MPCs were issued, Series 461. Fred snuck up on me and then told me I also needed to write an article on MPC for the issue. Well, I did not collect them, but agreed and started off reading his and Carlson Chambliss’ books on the subject and then at the IPMS in June bought a number of 5ɇ notes and wow—now I am hooked. I encourage all of you to delve into the land of MPC and I think you will be surprised at the history, beauty and overall wonderful appeal of that area of our hobby. I plan on expanding my collection into other than fractional MPCs and get into POGs and maybe even Allied MPC. Who knows where and how far this new train will go. Yes, for those of you with good ears, that was a big GROAN from my wife. Don’t worry honey—I promise not to overspend (famous last words-huh?). From all indications, the hobby remains strong. We are heading to a fairly busy time, Long Beach, CPMX, PCDA and then FUN kicks off the New Year. The fun just doesn’t seem to stop! From an SPMC side, all is going well. We have a couple of governor slots open if you want to join us in leading this fine group. From this newsletter/magazine side of things, we have a lot of good articles in the queue. I still would like articles of filler length—2-4 pages and would like some articles on the less often seen areas of our hobby like obscure scrip, college currency, etc. I also would like more on colonials, world, large size and maybe some National Bank history! Until next time—have a good time. Benny Texting and Driving—It can wait! ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 391 Chump Change Loren Gatch The Art of Trompe l’Oeil  Back in June, Sotheby’s auctioned three American trompe l’oeil currency paintings which, unlike its mega-million Warhol sale of the previous year, were cheap enough to give me a case of vicarious buyer’s remorse (that is, remorse in the sense that I regret not being the buyer). Victor Dubreuil’s A Few Bills, blew past its estimate and sold for over $20,000, which I suppose I could’ve raised in a pinch if selling one of my kidneys were legal. A second painting by Charles Alfred Meurer fetched about half that, while some etchings by Otis Kaye (a particularly reclusive trompe l’oeil painter) rounded out the sale. Both Kaye and Meurer carried on the practice of currency painting begun in the 19th century by William Harnett, John Frederick Peto, John Haberle, and Dubreuil. Unfortunately for our understanding of the significance of this tradition, the lives and motives of these artists remain obscure in many ways. Meurer intrigues me a bit because he lived a long life in Terrace Park, Ohio, a small and tidy suburban village east of Cincinnati, just off the Wooster Turnpike. A goodly number of my own extended family have lived there over the last century. Indeed, my great-uncle and namesake, Loren Greeno Gatch, made his home on Miami Ave., the same street on which Meurer resided and maintained his studio. I’ve no reason to think it ever happened, but I still wonder if Messrs. Gatch and Meurer ever crossed paths. Art and paper money intersect in different ways. Currency itself can lay fair claim to be art, both in terms of technical excellence and aesthetic appeal. In turn, art makes use of currency as a topic and motif (art can also cost a lot of money, but that’s less interesting). Often I am ambivalent about artists’ treatments of money and currency since they frequently reflect judgments about some aspect of the economic system that the artists don’t like. The results can be overly didactic and predictable. The trompe l’oeil tradition avoids falling into this rut in part because the sheer execution of the paintings is so technically ingenious. Alfred Frankenstein’s appreciation of Harnett* contends that paper money was simply a good device for overcoming the challenge of depth in illusionist art. According to Frankenstein, trompe l’oeil works best with flat or shallow objects. In particular, it exploits two physiological phenomena relating to vision: binocular accommodation, and binocular parallax. The first refers to the fact that our eyes adjust according to whether objects are near or distant to us. Binocular parallax refers to the difference with which an object appears when seen either by the left or the right eye. Painters adopt characteristic conventions in order to represent three-dimensional objects on a two-dimensional plane. Yet, our eyes comprehend a two-dimensional painting as such; we are not easily fooled into misperceiving a two-dimensional representation as a three-dimensional construct. By reducing the depth of a picture to a minimum, the discrepancy between three-dimensional representation and two-dimensional reality can be minimized. Done well, the effect can be uncanny. Years ago, when I first encountered this tradition of painting, I thought it had to connect with the debates about money and currency that roiled late 19th century American politics. In particular, after reading David Ames Wells’ delightful tract, Robinson Crusoe’s Money (1876), I was certain that the perspectival illusions enacted by trompe l’oeil paintings of currency segued with arguments about the legitimacy of fiat-issued Greenbacks. Goldbugs posited that paper currency could only represent metallic money, and not be money itself; their Greenbacker opponents countered that government could create money out of anything it wanted. Wells argued that treating paper currency as money mistook shadow for substance—and that doing so was a form of collective insanity. By painting banknotes that looked three-dimensional on a two-dimensional space, Harnett, Haberle and the rest seemed to be addressing that controversy by similarly conflating illusion and reality. But if that were true, what exactly did they want to say? Alas, there seems to be little direct evidence that these artists engaged the monetary issues of their day. Frankenstein, for one, rejected the idea that these painters—Harnett in particular—were motivated by any kind of financial radicalism when they painted money. Though Harnett was the first American to paint money, his most famous work, After the Hunt, depicts no currency at all. After tangling with the law in 1886, Harnett avoided monetary motifs. In contrast, Haberle enjoyed thumbing his nose at the authorities. Dubreuil, a murkier character, spent the 1880s and 1890s painting nothing but filthy lucre. The Secret Service even confiscated one of his paintings, and eventually destroyed it. And thus was Our Republic protected. *After the Hunt. William Harnett and Other American Still Life Painters 1870-1900 (University of California Press, 1969). ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 392 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk—SPMC M_m\_rship Dir_]tor NEW MEMBERS 07/05/2016 14521 Raymond Walker, Tom Denly 14522 Greg Breshears, Jason Bradford 14523 Travis Brown, Website 14524 G.G. Birdsall, Website 14525 Robert Lee, Jason Bradford 14526 Robert Davies, Frank Clark 14527 Jason Cherrick, Scott Lindquist 14528 Jimmie Ranes, Jason Bradford 14529 David Little, Website 14530 Timothy Kennedy, Jason Bradford 14531 Doug Long, Website 14532 Chris Grater, Website 14533 Douglas Baker, Scott Lindquist 14534 Keith Klinedinst, Gerald Tebben 14535 Buddy Shoemake, Gerald Tebben REINSTATEMENTS None LIFE MEMBERSHIPS None NEW MEMBERS 08/05/2016 14536 Anne Snider, ANA 14537 Michael Hazen, Gerald Tebben 14538 Donald Angerman, Jason Bradford 14539 Mark Baskin, Rob Kravitz 14540 Edward Azoyan, Jason Bradford 14541 Steve Votta, Jason Bradford 14542 Nora Motter Stark, 1 Website REINSTATEMENTS None LIFE MEMBERSHIPS None   For Membership questions, dues and contact information go to our website www.spmc.org ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 393 Paper Money will accept classified advertising on a basis of 15¢ per word(minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbreviations, figure combinations and initials count as separate words. Editor does NOT check copy. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are run on a space available basis. Special: Three line ad for six issues only$20.50! Authors can request a free one-time ad. Contact the Editor WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with description (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 Vermont National Bank Notes for sale. For list contact. granitecutter@bellsouth.net. WANTED: Any type Nationals from Charter #10444 Forestville, NY. Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701-4129. Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. dombongo@earthlink.net WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277-1779; Casebeer@law.miami.edu WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy and sell. Mention PM receive $3 credit. 661-298-3149. Gary Snover, PO Box 1932, Canyon Country, CA 91386 www.garysnover.com. TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need. Have many in the low printings. Free list. Ken Kooistra, PO Box 71, Perkiomenville, PA 18074. kmk050652@verizon.net BUYING ONLY $1 HAWAII OVERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. Captaincookcoin@aol.com "Collecting Paper Money with Confidence". All 27 grading factors explained clearly and in detail. Now available at Amazon.com AhlKayn@gmail.com W A N T E D : R e p u b l i c o f T e x a s “ S t a r ” ( 1 s t i s s u e ) n o t e s . A l s o “ M e d a l l i o n ” ( 3 r d i s s u e ) n o t e s . V F + . S e r i o u s C o l l e c t o r . r e p t e x p a p e r @ g m a i l . c o m $$ money mart WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page above -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. ONLY $20.50 / YEAR ! ! ! (wow) ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 394 Florida Paper Money Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Books available mcfarlandpub.com, amazon.com, floridamint.com, barnesandnoble.com MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional Colonial Small Currency Large Currency Auction Foreign Currency Checks 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00 8 x 5 $32.00 $58.00 $265.00 $465.00 9-5/8 x 4-1/4" $32.00 $58.00 $265.00 $465.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00 National Sheet Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00 Stock Certificate End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00 Map & Bond Size End Open 18" x 24" $82.00 $365.00 $665.00 $1530.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Out of Country sent Registered Mail at Your Cost Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY’S OF BOSTON P.O. Box 29, Dedham, MA 02027 • 781-326-9481 ORDERS: 800-HI-DENLY • FAX 781-326-9484 www.denlys.com DBR Currency We Pay top dollar for *National Bank notes *Large size notes *Large size FRNs and FBNs www.DBRCurrency.com P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 info@DBRCurrency.com Fax: 858-679-7505 See out eBay auctions under user ID DBRcurrency HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 www.TheHigginsMuseum.org email: ladams@opencominc.com Open: Tuesday-Sunday 11 to 5:30 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards Maryland Paper Money: An Illustrated History, 1864-1935 This 348-page hardcover book documents Maryland’s national currency era of banking from 1864 to 1935. Almost 300 photos of surviving notes are shown, including many rarities from the landmark Marc Watts Collection of National Currnecy. “This is a wonderful specialized work on Maryland nation bank and their notes that is destined to be the guidebook for generations to come.” Mark Hotz. Available for purchase online at lulu.com and www.marylandpapermoney.com Foreign Oversize Foreign Jumbo 10" x 6" $23.00 $89.00 $150.00 $320.00 10" x 8" $30.00 $118.00 $199.00 $425.00 ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 395 You are invited to visit our web page www.kyzivatcurrency.com For the past 13 years we have offered a ,good selection of conservatively graded. reasonably priced currency for the collector. All notes are imaged for your review Fractional Currency Collectors Join the Fractional Currency Collectors Board (FCCB) today and join with other collectors who study, collect and commiserate about these fascinating notes. LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALLSIZESTARNOTES OBSOLETES New members get a copy of Milt Friedberg’s updated version of the Encyclopedia of United States Postage and Fractional Currency as well as a copy of the Simplified copy of the same which is aimed at new collectors. Nst ew members will also get a copy of Rob CONFEDERATES Kravitz’s 1 edition “A Collector’s Guide to Postage ERROR NOTES TIM kYZIVAT (708) 784-0974 P.O. BOX 401 WESTERN SPRINGS, IL 60558 e-MAIL: TKYZIVAT@KYZIVATCURRENCY.COM and Fractional Currency” while supplies last. New Membership is $30 or $22 for the Simplified edition only To join, contact William Brandimore, membership chairman at 1009 Nina, Wausau, WI 54403. Buying & Selling • Obsolete • Confederate • Colonial & Continental • Fractional • Large & Small U.S. Type Notes Vern Potter Currency & Collectibles Please visit our Website at www.VernPotter.com Hundreds of Quality Notes Scanned, Attributed & Priced P.O. Box 10040 Torrance, CA 90505-0740 Phone: 310-326-0406 Email: Vern@VernPotter.com Member •PCDA •SPMC •FUN •ANA United States Paper Money specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency StarorReplacementNotes Specimens, Proofs, Experimentals Frederick J. Bart Bart,Inc. website: www.executivecurrency.com (586) 979-3400 POBox2• Roseville,MI 48066 e-mail: Bart@executivecurrency.com ___________________________________________________________Paper Money * September/October 2016 * Whole No. 305_____________________________________________________________ 396 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site pcdaonline.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. The Professional Currency Dealers Association For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: PCDA James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 Or Visit Our Web Site At: www.pcdaonline.com Paul R. Minshull #LSM0605473; Heritage Auctions #LSM0602703 & #LSM0624318. BP 17.5%; see HA.com. 40573 THE WORLD’S LARGEST NUMISMATIC AUCTIONEER DALLAS | NEW YORK | BEVERLY HILLS | SAN FRANCISCO | CHICAGO | PALM BEACH PARIS | GENEVA | AMSTERDAM | HONG KONG Always Accepting Quality Consignments in 40 Categories Immediate Cash Advances Available 950,000+ Online Bidder-Members U.S. CURRENCY SIGNATURE® AUCTIONS September 7–12, 2016 | Long Beach | Live & Online Selections From our Upcoming Official Long Beach Auction Visit HA.com/3548 to view the catalog and place bids online. To consign to an upcoming auction, contact a Heritage Consignment Director today. 800-872-6467, ext. 1001 or Currency@HA.com Fr. 2221-G $5,000 1934 Federal Reserve Note PMG Choice Uncirculated 64 Fr. 167a $100 1863 Legal Tender PCGS Very Fine 30PPQ Fr. 344 $100 1891 Silver Certificate PMG Choice Extremely Fine 45 EPQ Santa Cruz, CA - $5 1929 Ty. 1 Santa Cruz County NB Ch. # 9745 Uncut Sheet PCGS About New 50 Mitchell, SD - $10 1875 Fr. 422 The First NB Ch. # 2645 PMG Choice Very Fine 35 T1 $1,000 1861 PF-1 Cr. 1 PMG Very Fine 25 Net