Paper Money - Vol. XXX, No. 3 - Whole No. 153 - May - June 1991

VOL. XXX No. 3 WHOLE No. 153 MAy/JuNE 1991 .„.„.„„ ,,,,,,,, llllllllllllllllllllllllllllllllllllllll ,„„„,„„, ,„ III ALE)(AND ER HAMILT •••••••° 4 ipeciallied POI et. rylci:L'sn'oliflable 1 itost Publisher's Money-Back Guarantee If not completely satisfied, return within 14 days for a refund. Available from your favorite hobby shop or direct from the publisher. MasterCard or VISA customers call toll-free 800-258-0929 6:30 am - 8 pm, Mon.-Fri., 8 am 2 pm, Sat.. CST. Non-orders please use our regular business line, 715-445-2214. Standard Catalog of World Paper Money, 6th edition, Vol. I, Specialized Issues by Albert Pick Colin R. Bruce II, Neil Shafer, editors 1008 pages, hardcover, 8 1/2" x 11" $55.00, plus shipping The 6th edition is the most comprehensive special- ized world paper money reference ever assembled. Volume I brings you details of various early provin- cial and state level government notes as well as nu- merous issues sponsored by banks, regional authorities and even military authorities. New to the 6th edition are: 1. Completely new valuations in up to the three most common states of preservation. Also in- cluded for the first time are many valuations for issues that have been previously listed, but un- priced. 2.Exciting new historical facts gleaned from the ar- chives of The American Bank Note Company. Many classic proofs and specimens printed by that company and its acquisitions for banking firms around the world will soon be available for collectors through Christie's auction sales. 3.Pre-World War II listings for the Republic of Vene- zuela. Many early banks and their respective note issues are now confirmed in this greatly ex- panded section, with supportive illustrations. 4. The very unusual Argentine Provincial lottery ticket/currency issues that have run the gamut from exchangeable notes to worthless paper. 5. More than 16,700 total listings, resulting in the largest edition of this reference ever published. 6.More than 365 note-issuing authorities are com- piled in this volume, spanning more than 300 years. 7. More than 7,660 original photos - many upgraded - to help you attribute your notes. GC v.k.r iJ cOMMEPLIAL s orSTO(.r20 06031.6,1tON COVTUACrt donsimenton) 250 years Of names • 365 nosing authorities 16,700 notes toted • 7,660 volginat pelotas • featuring 641y revised and new market valuations throughEnn Connft0seenttlina "laoyAbert Pe*twe Shan:Wain ttiS Yes! send me Pick's new specialized paper money volume I Please send me copy(ies) of the Standard Catalog of World Paper Money, 6th ed., Vol. I, Specialized Issues, at $55.00 each plus shipping. $2.50 per book to U.S. addresses; $5.00 per book to foreign addresses. Payable in U.S. funds. Amount for books Shipping and Handling $ ( 1 Check or money order (to Krause Publications) ( 1 MasterCard ( ) VISA Total Amount Enclosed S Credit Card No. Name Address City Mail with payment to: Krause Publications, Book Dept. JYF State Zip 700 E. State St., Iola, WI 54990. Expires: Mo Yr. Signature Phone No JYF SOC I ET Y OF PAPER MONEY COLLECTORS INC. PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors. Second class postage paid at Dover, DE 19901. Postmaster send ad- dress changes to: Bob Cochran, Secretary, P.O. Box 1085, Florissant, MO 63031. © Society of Paper Money Collectors, Inc., 1991. All rights reserved. Reproduction of any article, in whole or in part, without express written per- mission, is prohibited. Annual Membership dues in SPMC are $20; life membership is $300. Individual copies of PAPER MONEY are $2.50. ADVERTISING RATES SPACE Outside 1 TIME 3 TIMES 6 TIMES Back Cover $152 $420 S825 Inside Front & Back Cover $145 $405 $798 Full Page $140 $395 $775 Half-page $75 $200 $390 Quarter-page $38 $ 1 05 $198 Eighth-page $20 $55 $105 To keep rates at a minimum, advertising must be prepaid in advance according to the above schedule. In exceptional cases where special artwork or extra typing are required, the advertiser will be notified and billed extra for them accordingly. Rates are not commissionable. Proofs are not supplied. Deadline: Copy must be in the editorial office no later than the 10th of the month preceding issue (e.g., Feb. 10 for March/April issue). Camera-ready copy will be accepted up to three weeks beyond this date. Mechanical Requirements: Full page 42-57 picas; half- page may be either vertical or horizontal in format. Single column width, 20 picas. Halftones acceptable, but not mats or stereos. Page position may be requested but cannot be guaranteed. Advertising copy shall be restricted to paper curren- cy and allied numismatic material and publications and accessories related thereto. SPMC does not guar- antee advertisements but accepts copy in good faith, reserving the right to reject objectionable material or edit any copy. SPMC assumes no financial responsibility for typographical errors in advertisements, but agrees to reprint that portion of an advertisement in which typographical error should occur upon prompt noti- fication of such error. All advertising copy and correspondence should be sent to the Editor. Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XXX No. 3 Whole No. 153 MAY/JUNE 1991 ISSN 0031-U62 GENE HESSLER, Editor P.O. Box 8147 St. Louis, MO 63156 Manuscripts and publications for review should be addressed to the Editor. Opinions expressed by the authors are their own and do not necessarily reflect those of SPMC or its staff. PAPER MONEY reserves the right to reject any copy. Deadline for copy is the 10th of the month preceding the month of publication (e.g., Feb. 10th for March/April issue). Camera-ready copy will be accepted up to three weeks beyond this date. IN THIS ISSUE THE PAPER COLUMN THE RISE AND FALL OF $1 AND $2 NATIONAL BANK NOTES Peter Huntoon 73 SYNGRAPHIC VIGNETTES Robert H. Lloyd 77 CIVIL WAR PAPER MONEY TALES Joseph D. Karr 78 THE GREEN GOODS GAME Forrest Daniel 79 NEW LITERATURE 80 THE USE OF "OLD ENGLISH" STYLE PLATE LETTERS "I" AND "J" Robert J. Lindesmith 81 YOUR BROOM NEEDS REPAIRING! CLIMB ABOARD!!! Leonard T. Lemiesz 83 TOM MOSES AND THE CARDBOARD SCRIP OF FORT WALLACE, KANSAS Steven Whitfield 85 STARTING OUT ON THE WRONG FOOT Bob Cochran 87 TAZWELL COUNTY NATIONAL BANK OF DELAVAN, ILLINOIS Walter Herget 88 CHARLES F. ULRICH, "BOSS CUTTER" Brent Hughes 90 AUTHOR'S CORRECTION Gene Hessler 92 SOCIETY FEATURES IN MEMORIAM William R. Higgins 93 STATEMENT OF OPERATIONS 93 ON THE COVER: The portrait of Alexander Hamilton, our first Secretary of the Treasury, was engraved by Charles Burt. Inquiries concerning non-delivery of PAPER MONEY should be sent to the secretary; for additional copies and back issues con- tact book coordinator. Addresses are on the next page. Paper Money Whole No. 153 Page 69 SOCIETY OF PAPER MONEY COLLECTORS OFFICERS PRESIDENT RICHARD J. BALBATON, P.O. Box 911, N. Attleboro, MA 02761-0911 VICE-PRESIDENT AUSTIN M. SHEHEEN Jr., P.O. Box 428, Camden, SC 29020 SECRETARY ROBERT COCHRAN, P.O. Box 1085, Florissant, MO 63031 TREASURER DEAN OAKES, Drawer 1456, Iowa City, IA 52240 APPOINTEES EDITOR GENE HESSLER, P.O. Box 8147, St. Louis, MO 63156 MEMBERSHIP DIRECTOR RON HORSTMAN, P.O. Box 6011, St. Louis, MO 63139 BOOK SALES COORDINATOR RICHARD J. BALBATON, P.O. Box 911, N. Attleboro, MA 02761-0911 WISMER BOOK PROJECT Chairman to be appointed LEGAL COUNSEL ROBER1 J. GALIETTE, 10 Wilcox Lane, Avon, CT 06001 LIBRARIAN WALTER FORTNER, P.O. Box 152, Terre Haute, IN 47808-0152 For information about borrowing books, write to the Librarian. PAST-PRESIDENT ROGER H. DURAND, P.O. Box 186, Rehoboth, MA 02769 BOARD OF GOVERNORS DR. NELSON PAGE ASPEN, 420 Owen Road, West Chester, PA 19380 BOB COCHRAN, P.O. Box 1085, Florissant, MO 63031 CHART ES COLVER, 611 N. Banna Avenue, Covina, CA 91724 MICHAEL CRABB, Jr., P.O. Box 17871, Memphis, TN 38187-0871 C. JOHN FERRERI, P.O. Box 33, Storrs, CT 06268 MILTON R. FRIEDBERG, Suite 203, Pinetree Rd., Cleveland, OH 44124 GENE HESSLER, P.O. Box 8147, St. Louis, MO 63156 RON HORSTMAN, P.O. Box 6011, St. Louis, MO 63139 ROBERT R. MOON, P.O. Box 81, Kinderhook, NY 12106 JUDITH MURPHY, P.O. Box 24056, Winston Salem, NC 27114 DEAN OAKES, Drawer 1456, Iowa City, IA 52240 BOB BABY, 2597 Avery Avenue, Memphis, TN 38112 AUSTIN SHEHEEN, Jr., P.O. Box 428, Camden, SC 29020 STEPHEN TAYLOR, 70 West View Avenue, Dover, DE 19901 FRANK TRASK, P.O. Box 99, East Vassalboro, ME 04935 WENDELL W. WOLKA, P.O. Box 929, Goshen, IN 46426 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 American Numismatic Association. The annual meeting is held at the Memphis IPMS in June. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. JUN- IOR. Applicants must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. They will be preceded by the letter "j". This letter will be removed upon notification to the secretary that the member has reached 18 years of age. Jun- ior members are not eligible to hold office or vote. Members of the ANA or other recognized numismatic so- cieties are eligible for membership. Other applicants should be sponsored by an SMIPC member or provide suita- ble references. DUES—Annual dues are $20. Life membership, payable in installments, is $300. Members who join the Society pri- or to Oct. 1st receive the magazines already issued in the year in which they join. Members who join after Oct. 1st will have their dues paid through December of the follow- ing year. They will also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. PUBLICATIONS FOR SALE TO MEMBERS ALABAMA OBSOLETE NOTES & SCRIP, Rosene $12 RHODE ISLAND AND THE PROVIDENCE PLANTA- ARKANSAS OBSOLETE NOTES & SCRIP, Rothert $17 TIONS, OBSOLETE NOTES & SCRIP OF, Durand $20 INDIANA OBSOLETE NOTES & SCRIP, Wolka $12 TERRITORIALS—A GUIDE TO U.S. TERRITORIAL INDIAN TERRITORY/OKLAHOMA/KANSAS OBSOLETE NATIONAL BANK NOTES (softcover), Huntoon $12 NOTES & SCRIP, Burgett and Whitfield $12 VERMONT OBSOLETE NOTES & SCRIP, Coulter $12 IOWA OBSOLETE NOTES & SCRIP, Oakes $12 MICHIGAN. EARLY MICHIGAN SCRIP, Bowen $40 MAINE OBSOLETE PAPER MONEY & SCRIP, Wait $12 MISSISSIPPI, Leggett $44 MINNESOTA OBSOLETE NOTES & SCRIP, Rockholt $12 SCOTT'S STANDARD PAPER MONEY CATALOG. PENNSYLVANIA OBSOLETE NOTES AND SCRIP, Hoober $28 1894. Reprint NATIONAL BANK NOTES. Guide with prices, Kelly $ 7 $34 Non-members add $3 per item ($5 if priced over $12). Postpaid. JOSEPH FALATER d.b.a. CLASSIC COINS Box 95 Allen, MI 49227 Page 70 Paper Money Whole No. 153 alpw. al t, er..2/ Nationals topic. of secoqd edition 1 REEOMI COMPLETE MONTNLY GUIDE FOR PAPER MONEY COI. LECTORS 4, Christie's first auction of of te American Ban $3 Ilion Archives brings $ Paper Money Whole No. 153 Page 71 U.S. PAPER MONEY COLLECTORS! Bank Note Reporter is for you! U.S. paper money collectors! Get more news of your particular collecting interest, every month, in Bank Note Reporter. Bank Note Reporter is the only independently produced publication that blankets the entire paper money spectrum. You'll get all the news you need. And, you'll find it a convenient way r I Mail to: Bank Note Reporter Circulation Dept. 700 E. State St. Iola, WI 54990 Enter my Bank Note Reporter subscription as follows: ( ) New I ( ) Renewal/Extension (attach your mailing label) ( ) 1/2 year (6 issues) $12.95 Foreign addresses send $20.65. Payable in U.S. funds. ( ) Send me a free sample issue (U.S. addresses only) L ( ) Check or money order (to Bank Note Reporter) to keep current on U.S. and world notes, plus all other related fiscal paper. Bank Note Reporter is your one-stop paper money information source. Make sure you're in the know, by entering your subscription now. Take advantage of our special half-year offer. Or request a free sample issue (U.S. addresses only). Name Address City State Zip ( ) MasterCard/VISA Credit Card No Expires: Mo Yr Signature Note: Charge orders will be billed as Krause Publications. = C P4 J Paper Money Whole No. 153Page 72 foUW . am. 1,14,,111.1 el. . • s ,.114r. • vs.!, CRY. kr-% BANK) (Clinton "tiank •:;". 111T.0 4111,17.141T.A., pig Don't miss our next auction in June. Viewing at the Memphis International Show. Send $12.50 for catalog & prices realized. $55 for an annual subscription. ********************************** R.M. Smythe & Co. Auctions reach the most important collectors & dealers in U.S. & International Currency, Coins, Stocks & Bonds, Autographs, Ex- onumia & related material. Call today or send for our free color brochure describing the wide range of specialized and personal services we offer. BUYING ALL U.S. PAPER MONEY & STOCKS AND BONDS Please visit our table at Central States. We have a large inventory of Obsolete, CSA and Colonial Currency for sale! ********************************** (NA7 BUYING ■ Obsolete, Confederate, Colonial and Federal Currency ■ Antique Stock & Bond Certificates ■ Rare Autographs We will purchase your material outright i fyou desire. Call or write today. R. M.SNINTHE 26 Broadway Suite 271 New York, NY 10004-1701 SWABIA/51HE I) lftftt) TOLL FREE 800-622-1880 NY 212-943-1880 FAX: 212-908-4047 Paper Money Whole No. 153 Page 73 issues consisted only of state bank and private promissory notes, which continued to circulate in volume until 1865. The Act of February 25, 1863 did not provide for national bank notes of denominations less than $5; the hope being that specie, legal tender notes or, at worst, state bank and private promissory issues would fill that void. However, when the act of June 3, 1864 was drafted, to supersede the 1863 act, suspen- sion of specie payments was wearing into its third year with no end in sight, and small denomination federal notes and coin were in short supply. THE PAPER COLUMN by Peter Huntoon The Rise and Fall of $1 and $2 National Bank Notes ABSTRACT The $1 and $2 Original Series and Series of 1875 national bank notes were provided for in the Na- tional Bank Act of June 3, 1864, to augment the volume of small denomination notes in circula- tion. Their issuance was a direct outgrowth of the lack of coins resulting from the suspension of spe- cies payments by the treasury and commercial banks following the outbreak of the Civil War. The Act of June 3, 1864, required that the $1 and $2 na- tional bank note cease to be issued upon the resumption of specie payments, an event which took place on January 1, 1879. The first $1 and $2 national bank notes were placed in circulation in 1865. During the next 15 years, 23,169,677 $1s and 7,747,519 $2s were issued, comprised of 80 percent Original Series and 20 percent Series of 1875 notes. CIVIL WAR HOARDING T HE issuance of $1 and $2 national bank notes was a somewhat delayed result of crisis attending the suspen- sion of specie (gold and silver coins) by the treasury and commercial banks at the outbreak of the Civil War. What happened was that financial insecurity caused by the outbreak of the Civil War resulted in widespread hoarding of gold and silver. There was popular concern that the federal government might not be able to meet its obligations due to the cost of the war. Making the matter worse was the fact that the government was giving itself loans by issuing legal tender notes that were supposed to be redeemable in coin, yet there were more notes outstanding than coin in the treasury. On December 30, 1861, the New York banks suspended payments in gold and silver coins (Childs, 1947). Soon the treasury was forced to follow suit. Coins virtually ceased to circulate and postage stamps, pri- vate scrip, and ultimately fractional currency took the place of small change. Federal currency available in 1861 consisted of $5 and higher denomination demand notes. After August 1862, $1, $2 and higher denomination legal tender notes and fractional cur- rency appeared. Lower denomination currency before the 1862 $1 AND $2 NATIONALS WANTED National currency required backing in the form of bonds pur- chased by the banks in lawful money, specifically specie and legal tender notes. In addition, both the acts of 1863 and 1864 required that the banks hold legal tender reserves to be used to redeem their notes. Therefore the issuance of national bank notes reduced the circulating supply of legal tender notes. Sensing this constriction, Congress provided for small denomination national bank notes in the Act of 1864. Section 22 of the National Bank Act of June 3, 1864, provided for the following denominations: $1, 2, 3, 5, 10, 20, 50, 100, 500, and 1000, provided 'That not more than one sixth part of the notes furnished to an association shall be of a less denomination than five dollars, and that after specie payments shall be re- sumed no association shall be furnished with notes of a less denomination than five dollars!' Clearly the intent here was to provide an additional supply of small denomination notes until gold and silver coins began to circulate again. On March 3, 1865 Congress passed an act that imposed a 10 percent per year tax on state bank notes, thus forcing the non- federal currency from circulation. This placed further impor- tance on the availability of small denomination national bank notes. The first shipment of Original series $1 and $2 national bank notes was sent to The First National Bank of Akron, Ohio, charter 27, on April 1, 1865. The shipment consisted of 1-1-1-2 sheets with bank serial numbers of 1-1000, and treasury serial numbers 2023-3022. The first 1-1-1-2s printed were for The First National Bank of Washington, DC, (26) bearing treasury serial numbers starting at 9 (red); however, the first of these were not sent to that bank until March 18, 1869. The earliest plate dates found on Original Series $1 and $2 national bank notes is January 2, 1865, in contrast to November 2, 1863, for several other plate combinations. CONVERTIBILITY OF NATIONAL CURRENCY The value of national bank notes was tied entirely to the value of legal tender notes into which they were convertible. Figure 1 shows the value of legal tender dollars and thus national bank dollars against gold during this suspension period. The value was governed by the confidence of the public in the ability of the government to ultimately honor the redemption of its legal tender promissory notes. Notice that this faith reached a low in the final months of the Civil War as the treasury became in- creasingly depleted. The primary source of revenue at this time was customs taxes, payable in specie, but foreign trade was seri- ously curtailed by the war. The instability in the value of legal tender notes was injurious to all types of commerce, and dual accounts had to be maintained for balances in specie and balances in legal tender. The return to specie payments-placing the country on a firm gold standard-was fraught with anxiety. Fear was focused on the concern that if specie payments were resumed, there would First National Bank Notes Issued Resumption of Specie Payments ($1 LT = $1 gold) Low = 0.387 $1 Last Issues — $2 o coco Years _u Lc) c0 co co co 0a> CO 0 co Page 74 Paper Money Whole No. 153 $1.00 .90 0z a) D .70 To a)co .60 .50 o .40 0 .30 C•- .80 C• - 1-1 ') .20 0 C.) .10 0 C D oo LO CO End of Civil War I 1 I i I I I i 1 I I I N— CO m 0 ,— CV CO '1' 1.C) CO h- a) (3) N CA — Years Figure 1. Value in gold of $1 in legal tender notes on July 1 for the years shown. $1 in gold equals 25 8/ grains of gold. National bank notes were convertible into legal tender notes. Data from the Comptroller of the Currency (1877, 1878). be a run on the coin in the treasury and there simply wasn't enough of it to redeem all of the outstanding legal tender notes. Amid heated controversy, on January 14, 1875 the Congress passed an act requiring the resumption of specie payments on January 1, 1879. This legislation dictated the convertibility of legal tender notes into gold at par. Because national bank notes were convertible into legal tender notes, they too would have value equal to gold. Thus, all the nation's money would circu- late at par. Dual bookkeeping would no longer be necessary. RESUMPTION As January 1, 1879 approached it was in no one's interest for a run to develop on the treasury, or for the banking community to subvert the intent of the Act of January 14, 1875, to force all forms of currency and specie to circulate at par. To this end, the powerful New York Clearinghouse Association adopted recom- mendations that required its members to obliterate the distinc- tions between legal tender currency and gold coin by January 1, 1879 (Comptroller of the Currency 1878, p. xxxi). Passage of the resumption act boosted confidence and the late 1870s were prosperous. The following statistics were reported by the Comptroller of the Currency (1879, p. xiii-xv). Crops were excellent, and a surplus in foreign trade prevailed in the late 1870s, reaching $294 million for the year 1879. Surplus revenues were accumulated in the treasury (customs taxes were paid in specie), and between 1877 and 1879 the treasury sold $90 million in bonds at par or above in return for coin. On the day of resumption, the treasury had accumulated $135 million in gold and $32 million in silver, the gold alone representing almost 40 percent of the $346 million in legal tender notes then outstanding. The banks held a third of the outstanding legal tender notes, and the public held $320 mil- lion in national bank notes. General confidence in the economy, as well as confidence in the ability of the treasury to convert the paper into coin, was sufficient that there were no significant redemptions despite the fact that the treasury only held about $1 in specie for each $4 in outstanding legal tender and national bank notes. Instead, within ten months, the government's stock of gold actually increased by another $36 million. The $1 and $2 national bank notes ceased to be issued to the banks in January 1879 under the terms of Section 22 of the Na- tional Bank Act of June 3, 1864. The last shipment was sent January 22 to The First National Bank of Warren, Rhode Island (673) and included bank serial numbers 1001-2000. Thus these beautiful low denomination notes slid into history. 6 0c3 -5z 0 ts 4 0 Figure 2. Numbers of outstanding $1 and $2 national bank notes on October 31 for the years shown. Date from Comptroller of the Currency (1917). OZEktEMVPROMPOOZ.DEMWOUDOAVIROCKIZOMEOVaito itir*t N-tititortl I% "C'14464'.1'4,',IL01) ittke V-11-Ltak..4.0.V;-0_ - ,,,,/„„/„.„/„/, • ,.gp ///.; i/r7 ////, f2)t 1,2 4...41,2': 60X3'2AffROOMOt AwrxoNAL 1))71 ree' ft 4i)) t OUBEYliget te` 110NA C1MELRENCY rp000lizalevvetecaietogo.oaw_vaR490 ,4:10: l tERCOMSWOre 614)V6 4finit Natiiiita ottoii:‘,._,...,, „,_.„ ,,, --)...4 . ,,...„, _,. („„,„:„,„.„,„,„ q-Ji---/7-:a ...\ ,;(,.../..„,,,,,,,,, ....i.„,... _sk."404,4Po4ittotitr .,;an,- iotioe sol,„ First National Bank 01,,ctamintrirptiiim //,,,,r/. „„v /,at) r .;„ WAITIONAT, ,CURRENCY x4iro Paper Money Whole No. 153 Page 75 Certified proof of a 1-1-1-2 combination plate after it was converted from an Original Series to Series of 1875 plate. (Smithsonian Institution photo 84-4630.) Page 76 Paper Money Whole No. 153 $1 AND $2 ISSUES The total number of $1 and $2 national bank notes issued was 23,169,677 and 7,747,519 pieces, respectively. Approximately 80 percent of the issues were in the form of Original Series notes and 20 percent were Series of 1875 notes. Most bank notes were issued in 1-1-1-2 sheet combinations. Four banks utilized the 1-1-2-2 combination: The Washington County National Bank of Greenwich, New York (1266), The Westchester County National Bank of Peekskill, New York (1422), The Merchants National Bank of Bangor, Maine (1437) and The City National Bank of Manchester, New Hampshire (1520) (Huntoon, 1984). Each of these four issued Original Series $1s and $2s but only The Washington National Bank of Greenwich, New York (1266) is- sued 1-1-2-2s in the Series of 1875. The First National Bank of Philadelphia, Pennsylvania (1) holds the distinction of being the only bank to have a 1-1-1-1 plate prepared for it. However, the 500 sheets of Original Series notes printed from this plate in March of 1865 were never issued, having been cancelled on June 14, 1867 (Huntoon and Raymond, 1985). No $3 national bank notes were prepared even though they were authorized in the National Bank Act of June 3, 1864. The $1 and $2 denominations were again authorized in an amend- ment to the National Bank Act dated October 5, 1917, which limited the issuance of such denominations by any bank to no more than $25,000. These denominations for the then current Series of 1882 and 1902 were, of course, never prepared, nor were they contemplated for the 1929 series that followed. HISTORICAL POSTSCRIPT According to Comptroller of the Currency John Jay Knox, the resumption of specie payments couldn't have worked out better for the nation. Using the measure of accumulating gold in the treasury, the economic engine that was the United States began harvesting the rewards for conquering its frontiers. The growth of this wealth fostered visions of greater frontiers beyond, for the nation was poised to try its hand as a colonial power in less than 20 years. If manifest destiny was the religion, gold was the Sacra- ment. You can read in Knox's words his delight in the situation (Comptroller of the Currency, 1880, p. v-vi, x-xiv). Notice at the end of these quotes that he was not a fan of silver. The movement of the currency and the operations of the banks have never been more interesting than during the months which have in- tervened since the resumption of specie payments. To most of the po- litical economists of this and other countries the resumption of coin payments by the United States at the time fixed by law, and its suc- cessful maintenance, were deemed almost impossible. No country had ever before successfully maintained payments in coin with so large a volume of currency outstanding, or with an amount of currency greatly in excess of its coin. Even those who were known to be ear- nestly in favor of resumption, both in and out of Congress, doubted the ability of the government and of the banks to commence and con- tinue coin payments without a preparatory reduction of the amount of notes in circulation. They said, truthfully, that no nation maintains at par a convertible paper currency which has not in its banks or among its people an equal amount of coin, and that, if successful, the United States would be an exception, and the only exception, in this respect, among commercial nations. But the resumption act giving authority for the purchase of coin in the markets of the world with United States four and one-half, or five per cent. bonds made resump- tion certain, if the bonds for a sufficient amount could be readily mar- keted at not less than par, as authorized by law. Purchasers for the bonds were promptly found, and resumption came so easily that many persons now believe it could have been as well accomplished one year earlier, if Congress had fixed upon January 1, 1878, instead of upon the following New Year's day. Since the date of resumption the country has been month by month growing richer in coin, not by the sales of bonds, which have been rapidly increasing in value, but by the production of the mines and the influx of specie in return payment for the excess of exports of our abundant products over our imports. The whole country has become so habituated to the use of paper money that the difficulty has been— not to provide means for its payment, for scarcely a dollar has been demanded—but to supply the people with Treasury and national-bank notes, which have been almost universally preferred. For many years past, large amounts of currency have been annu- ally drawn from the banks of the city of New York by the banks in the interior, for the purchase and shipment of grain and other products. The banks in the West and South supply the grain-buyers with money, who pay it to the farmers, and by them it is disbursed to the country merchants. It then goes to the wholesale merchants in the larger cities of the interior, by whom it is deposited in the banks and returned again to the money centers in the Eastern States. Thus the money which was paid out in the fall returns again to the city of New York, long before midwinter, whereby much of the currency of the country, instead of continuing to circulate, accumulates in the New York banks both before and after the time for the large movements of produce. This ebb and flow of the currency continued yearly up to the time of the great harvest of 1879. The drain of coin and currency from the large cities, amounting to more than 100 million dollars during the fall of that year, made currency scarce in New York notwithstanding the unprecedented influx of gold from abroad. The usual return of the currency in the winter was expected, but did not occur. The experience of 1879 was considered exceptional, but another year has nearly passed and the experience of the former year has been, to a considerable extent, repeated. A large portion of the avails of pro- duce has been retained, either for the liquidation of debts, for em- ployment in trade and commerce at home, or in the many new and extensive enterprises for which the West is distinguished, where there would appear to be no limit for the safe and profitable employment of capital. The coin in the banks has increased from 41 millions on January 1, 1879, to 109 millions on October 1, 1880. The Treasury holds its immense hoard of gold, not surpassed in amount by any other depository in the world. The merchant, the manufacturer, and the farmer are alike prosperous; the people have paid their debts to an unprecedented degree, and hold their earnings in the paper currency of the govern- ment and of the banks in larger amounts than have hitherto been known. The receipts of the government have been so large that, after refunding many millions of 5 and 6 per cent. bonds into 4 per cents., it has still been able during the year to purchase in the market at a premium more than 100 millions of its bonds for cancellation. The deposits of the banks have everywhere increased, and money has been abundant wherever business or investment has invited capital, and there has probably never been a period when it has generally com- manded so low a rate of interest as during the last two years. When the rates of interest are low there is danger that bank managers, in their desire to use their available means, may be induced to loan upon securities which are not of the best character, and thus in the end diminish rather than increase their earnings. The loans were at the highest point in the year 1875, and the two previous years, and the national banks were then enthusiastic over the high rates of in- terest, their large deposits, and their large earnings and dividends; but the delusion has been dispelled by the enormous losses which they have been obliged to charge off during the past five years, reaching the extraordinary sum of 100 millions, which were largely the result of overtrading during the period when gold coin was a commodity, and the legal standard a promise to pay, unfulfilled and fluctuating in value for seventeen years. The great losses experienced during these years, which will not soon be forgotten, enforce the principle that no legitimate business is safe which is conducted upon a varying stan- dard of value; and the crisis of 1873 will always be remembered as a striking example of the evil results arising from business conducted during "good times" upon a fictitious basis. Paper Money Whole No. 153 Page 77 The imports of gold in excess of exports, from the date of resump- tion to November 1, 1880, have been $119,384,795, not including im- ports outside of New York City in October of this year, and the estimated gold production of the mines is $67,449,929; in all, $186,834,724. During this period the gold in the Treasury has increased $20,976,007, and in the banks $73,976,149, and the remainder, $91,882,568, has been dispersed throughout the country or used in the arts. * * The amount of Treasury notes has remained the same since January 1, 1879, as provided by law. There was an increase of bank notes for the first ten months of 1879 of $13,389,744, and for the present year of $6,652,689. The total net increase of national-bank notes issued since resumption is $20,042,433, and the total increase of gold $175,701,904 and of silver $51,697,524. The gold in the Treasury has increased $20,976,007, and the banks $73,976,149, releasing $50,768,829 of paper currency in the Treasury and $37,608,585 in the banks. The increase of gold outside of the Treasury and the banks is 80.7 millions and of paper currency 108.4 millions. The amount of standard dollars coined is $72,847,750, of which $47,156,588 are in the Treasury and $25,691,162 in circulation . The remainder of the silver, $85,423,577, is subsidy and trade dollars, and bullion, of which $30,820,561 is in the Treasury and $54,603,016, is in use in place of the previous fractional paper currency which, on March 23, 1874, was at its highest point, and amounted to $49,566,760. The additional amount of gold coin, of silver dollars, and paper cur- rency outside of the Treasury and the banks is thus estimated to be $195,274,401, which amount has been dispersed among the people since the date of resumption. The average prices and value of manufactured goods, of breadstuffs, of provisions, and of other products have largely increased. The la- borer has been steadily employed at remunerative wages. The fron- tier has rapidly receded. All classes of people have been liquidating their debts, and much greater amounts of money have been held in the tills of country traders and at home for ready use. The hoarding of a small amount by each of fifty millions of people, or by millions of families, is of itself sufficient to account for the disappearance from the usual places of deposit of a large portion of the addition to the circulating medium since the date of resumption. One year ago it was urgently recommended "that all the national banks should take advantage of the present influx of gold to accumu- late in their vaults an amount equal to the total cash reserve required by law:' and the hope was then expressed "that the reports of another year might show them to be possessed of at least 100 millions in gold coin:' On June 14 of the present year the banks reported 99 millions of specie, and on October 1 more than 109 millions of coin (including nearly six and one-half of silver), which more than equals one-third of the total circulation of the banks in operation. The amount of gold coin now held is but 18 millions less than the whole cash reserve re- quired, and would undoubtedly have been still greater except for the high rates charged for the transportation of gold coin, which are greatly disproportioned to the cost of moving paper currency and which, it is to be hoped, will by some means, be largely reduced. Much newspaper criticism has appeared in the mean time, com- plaining of the comparatively small amount of legal-tender silver dollars held by the banks, and some of the banks have themselves encouraged this criticism. The arguments used in favor of the accumu- lation of silver under existing laws are unsound in principle and against all experience. No one prefers to put away for future use a product which will spoil by lapse of time, or which will deteriorate in value. The banks, if well managed, will transact business upon the same general principles as those on which an individual of superior judgment would conduct his own affairs, holding in reserve that coin which is known to be of uniform value everywhere in preference to that which, by the operation of the laws of trade or business, will be likely to become of less value. The law compels the citizen and the corporation to receive all legal-tender money in payment of debts; but it does not, and ought not to, require any one to receive on de- posit that which will not as readily be received in turn by the depositor. SOURCES OF DATA Childs, C.F., 1947, Concerning U.S. government securities, a condensed re- view of the nation's currency, public debt, and the market for represen- tative United States government loans, 1635-1945, also a chronology of government bond dealers: C.F. Childs and Company, Chicago, Il- linois, 584 pp. Comptroller of the Currency (1878, 1879, 1880, 1917) Annual reports of the Comptroller of the Currency to the Congress of the United States: Washington: Government Printing Office. Comptroller of the Currency (various dates) Ledgers showing receipts of national bank notes from the engravers, and shipments to the banks: U.S. National Archives, Washington, D.C. Huntoon, P., 1984. Evolution of treasury serial numbering on national bank notes: Paper Money, v. 23, pp. 181-185. Huntoon, P., and W.K. Raymond, 1985, National bank notes with serials 1 and 1000000, part 3: Paper Money, v. 24, pp. 266-268, 277. United States Statutes, Acts of February 25, 1863, June 3, 1864, March 3, 1865, January 14, 1875, pertaining to national banks, taxation of non- federal currency, and specie payments. Syngthpitic Vignette5 by ROBERT H. LLOYD C ONTINUING on the theme of my first "vignette", the early 'twenties were the genesis of collecting foreign cur- rency in the U.S. When one perused dealer stocks, there were the usual Mexican, Central and South American, Confeder- ate, and a few Chinese notes. But now a great infusion of post- war European bills came on the market. As I studied the double page circulars of the Public State Bank of Chicago, I found that I could obtain sets or partial sets by ordering just one note of each kind on the list. The real speculators could order ten, a hundred or a thousand. But my memory told me that many other coun- tries whose inflation got out of hand did not honor old tenor notes. So single notes were for me. The notes of the Austro-Hungarian Bank were particularly in- teresting. Each one of these carried its denomination in as many as six or eight languages. They were meant to circulate in that hodge-podge of peoples known as the Austro-Hungarian Empire, and spill over into Italy and Romania as well. Several numbers on the German side indicated Vienna, on the Hungarian side meant Buda-Pest issues. The Austrian 1,000 kronen notes were beautifully engraved, and the paper was not usually white as in our country, but tinted blue or green with moire overlays. The early 1,000 kr. notes were the same, face and back, but after the separation of the two coun- tries, the Vienna notes came out with a lithographed back in a new design. Many old notes were overprinted "Oesterreich" in red or green. Multi-lingual bills were going out of use. The next change that made the collection of these notes fas- cinating was the change in size. The 100, 1,000 and 10,000 kr. notes all came out smaller. In the Hungarian set, the 1,000 forint note was reprinted in exactly the same design, but reduced one- third in size. So, from 1920 to 1923 European currency was great fun to collect and study. As the currencies stabilized in the mid-'twenties, new issues appeared that did not depreciate, but were more expensive. It took almost four decades before the collecting of foreign notes became popular again Page 78 Paper Money Whole No. 153 Civil War Paper Money Tales by JOSEPH D. KARR There are myriad recorded events from the American Civil War, 1861-1865. Among the most interesting, tantalizing, intriguing and incredible are those linked to paper money and minted coins. The following is just a simple look at a few of those incidents. Some of the anecdotes recorded herein may not "square" with the facts as we understand them today. They do, however, remain as the testimonies of those who maintained their authenticity: the par- ticipants themselves. I T is probably safe to say that Confederate currency from its beginning was not worth more than ninety-five cents- on-the-dollar in gold. An exception is found however in the person of private Elum Hodge Stephenson. Private Stephenson enlisted in Company C, Tenth Mississippi Infantry, CSA, on March 26, 1861, at Saltillo, Mississippi. After completion of his first 12 months of service, he and his entire company were called on to re-enlist. Private Stephenson states that he was given "a new $50 Confederate bill." He went on to say, "I took my new bill home with me and sold it to old Charley Howard of Fulton, Mis- sissippi for $52.50 in silver!' Mr. Howard was either a great patriot, or could it be that the $50 note was a Type 4, Criswell-4, Mont- gomery, Alabama-issued interest-bearing note? One of the most amazing events recorded comes from the first attempt by James Andrews, in April 1862, to steal a Southern train. Four members of the Andrews' party, after crossing Fed- eral lines, set out for Tullahoma, Tennessee. "After a walk of seven miles, they were ready for breakfast and stopped [to eat] with a strong rebel. [Frank] Hawkins paid for the breakfast with a twenty dollar gold piece (US), and received thirty eight dollars change—in Confederate money! (A second attempt to take a Southern train, known as the Great Locomotive Chase, would cost Andrews and seven others their lives.) The value of Confederate currency continued to drop as the overall condition of the Confederacy declined. The monetary for- tune of Private Johnny Green, of the 9th Kentucky, CSA, seemed to be in high stride. Private Green states that in January 1863 he had written to his cousin, Corr elius Fellowes, in Mobile, Ala- bama. Private Green asked for a loan of $25 to buy shoes and socks. In his own words: "The next mail brought me one half of a $100 bill issued by the Canal Bank of New Orleans with the information that on the succeeding day he would send me the other half of the same bill & it came to hand all right & when pasted together gave me $100 of the best money in the south, for this bank redeemed all its notes in gold or silver!' The year 1863 would continue to offer some amusing events as paper money continued to change hands. After the 48-day siege and final fall of Vicksburg, Mississippi on July 4th, Private Z. McDonald, Company E, 27th Louisiana Inf. Regt., picked up two reams of Confederate writing paper. While waiting for his parole and exchange he went to watch the Federal fleet come in. It was "here I saw my first greenback money. A Federal officer came up and asked if that was Confederate paper and I told him it was, and he wanted to buy some, and I sold him a ream for seventy-five cents in greenback!' Private Henry Meyer, Company B, 2nd Texas Infantry, also made the best of a bad situation at Vicksburg. He states "I bought a skiff from a Yankee soldier for 50 cents in silver. Now I was the owner of a marina and charged four Arkansas fellows $20 apiece to put them accross [sic] (The Mississippi River), which took me all clay:' During the Confederate retreat from Gettysburg, Pennsylvania, Private George W. O'Neal, Company G, 31st Georgia Infantry, shows us another aspect of profitable dealings. O'Neal, while passing through Maryland, made a stop at a local farmhouse in search of food. The man of the house asked O'Neal what he wanted. The farmer was informed of the purpose of the mission and that O'Neal had money to spend. The farmer then com- mented "he was very well supplied with Confederate money. I then told him that I would pay him with greenback. I told him that I had $20, and he became very much interested about my affairs and wanted to make a trade. . . and that he would give me forty dollars Confederate money for my twenty dollars in greenback; he loaded me up with butter, light bread and milk and gave me the forty dollars; and I ... went on my way re- joicing!" Confederate fortunes continued to decline as witnessed by W.R. Smith, Company D, 12th Texas Cavalry, a veteran of about one year of service. In late April 1864, while serving in Northern Louisiana, he gave a comrade $5 to bring back some food. His money netted him "a pone of cornbread, and it had a thin white crust on it, but nevertheless it was good!' Captain Francis A. Dawson, an artillery officer, recorded several current prices (1864): cavalry boots, $35; coffee, $15 a pound; sugar, $10 a pound; a linen collar, $5; a pocket handkerchief $10; a Richmond paper, 504; tobacco, $8-$9; trousers, $100. Captain Dawson also stated that in August of the same year he paid $5 to have his boots blacked. Dawson further says that "the shoe shiner would have felt well paid, if he had received a 104 Yankee shin plaster!" While the economy was dropping in the East and South, things were looking up in the West. The most incredible event of all took place on the 19th of September, 1864 in the Indian Territory. At about midnight, Confederate Generals Stand Watie (Cherokee) and R.M. Gano of Texas attacked a Federal wagon train. The 300-wagon train had sought refuge at a wooden stockade guard- ing the natural ford at Cabin Creek. The wagon train was heading for the Federal stockade located at Fort Gibson. A good brisk fight ensued and 295 of the wagons fell into Confederate hands. A search was made through the captured goods, estimated at $1,500,000 in US currency, and a pay box for the over 3,000 Fed- eral soldiers at Fort Gibson was discovered. Privates James Knox Polk Yearly and John N. Chapman, Company F, 5th Texas Par- tisan Rangers, were among the finders. The Texans remained patri- otic though and in their own words "despised the Lincoln money.' What did they do with this large haul? A large number of wagons had been damaged during the battle and could not be moved. The money, along with the damaged goods, was burned! The Green Goods Game Conducted by Forrest Daniel Paper Money Whole No. 153 Page 79 Inflation soared as the value of CSA notes continued to drop. The estimated value in early 1865 was 2-3Q on the dollar. Still, there were those who could profit by the state of affairs. The 18th Missouri Infantry (US), as part of William T. Sherman's infamous "March to the Sea," moved back to partially-burned Columbia, South Carolina on 18 February 1865. A boxcar full of newly printed CSA bonds & currency was broken-into (Columbia had become the printing center for the Confederacy). For "one heady hour several poor country boys from Northern Missouri were Confederate millionaires!' General Nelson A. Miles (US) observed a similar incident fol- lowing the Battle of Saylers Creek, Virginia, April 6, 1865. Several wagons were captured during the running battle. A few held what the general called the "assets of the Confederate Treasury!' A "Monte Carlo was suddenly improvised in the midst of the biv- ouac of war!" Comments were fast and furious among the Fed- eral soldiers. Blankets were spread and the game was on: "$10,000 was the usual 'ante'; often $20,000 to come in; a raise of $50,000 to $100,000 was not unusual. Frequently from one to two mil- lions of dollars were in the poor As the death throes of the Confederacy continued, Johnny Green, now Sergeant Major of the 9th Kentucky (CS), adds this anecdote. When the so called Confederate 'Treasure Train" (see PAPER MONEY, Volume 122, The Confederate treasurer's report, by Brent Hughes) arrived at Washington, Georgia, Mr. Green says simply'The Confederacy had not paid us even in our depreciated currency, but now a large goods box of Confederate money was set open in our camp and we were told to help ourselves if we wanted any. Some specie belonging to our poor country had also been sent here to be distributed to us. I got, I think, $2.50 in silver and I believe each officer got $5 in gold:' As the war ended in the East at Appomattox, for the Army of Northern Virginia, on April 9, 1865, it was coming to a close in the West as well. When Private William F. McKee of Company C, 2nd Texas Partisan Rangers, turned-in his horse at Shreveport, Louisiana in May 1865, he was paid in what he called "nigh worth- less" CSA notes for his mount. He then paid $20 for a plug of black tobacco. Sergeant Willie Tunnard, Commissary Sgt., 3rd Loui- siana Infantry, went one step further. "Paper money became worthless; rations were issued in large quantities; such as coffee and other delicacies!' The date was May 10th. Value must be "in the eye of the beholder" A case in point follows. On July 12th, 1865 Major General Philip H. Sheridan wrote to his commanding officer from New Orleans, "Probably about $4,500,000 of bank securities, all worth their face, and in the hands of rebels at Shreveport. They were Louisiana State secu- rities. If the Government has no claims on them I propose to turn them over to the state auditor!' The reply from his commanding officer would be approved by Secretary of War E.M. Stanton on the 13th. "Send the bank securities captured at Shreveport to the Adjutant General at Washington. They will be held here for fu- ture decision!' Signed: U.S. Grant. Anders, L. (1968). The Eighteenth Missouri. Bobs-Merrill. Dawson, F.W. (1980). Reminiscences of Confederate service 1861-1865. Baton Rouge, LA: LSU Press. The war of the rebellion: a compilation of the official records of the Union and Confederate armies (1881). Series I, Vol. XLI. Washington, D.C.: Govern- ment Printing Office. Tunnard, W.H. (1970). A southern record. Baton Rouge, LA: Momingside Bookshop. Personal recollections and observations of General Nelson A. Miles. (1897). Werner Co. Yeary, M. (1986). Reminiscences of the boys in gray 1861-1865. Dallas, TX: Momingside Press. A TRICKSTER TRICKED "He was such a nice, pleasant, smooth spoken guy," said the Madison Avenue trolley conductor ruefully, "that when he skinned off a clean looking 'ten spot' from his roll and gave it to me to take his fare from and said it was the very smallest thing he had in his pocket, I didn't have the heart to put him off. I told him the company didn't require us to give change for more than $2, but it was all right this time, and he rode from Forty-second to Fifty-ninth and got a transfer for nothing. 'Two days after that I picked up the same 'geezer' at Forty- second, and before I got around to him we were almost to Fif- tieth. He fumbled around in his pockets for three more blocks and ended by fishing out the same old 'tenner: I kicked, but he seemed so sorry about it that he deadheaded right along to Fifty-ninth and got off, after apologizing about his forgetful- ness. He was the most gentlemanly, high bred cuss I ever saw. "It wasn't more than a week before I got him again at the same old place, and with the same old 'X: He seemed to be loaded with big money, and he chinned me against my will right along to Fifty-ninth again before I got on to myself. Then I made up my mind to lay for him. "I got around among the boys at the car house and bought up at half price all the old 'half caste' coins I could get hold of up to $10 worth. I got together 420 pennies of every age, size and color from the dark ages up. Some were greasy, others were worn smooth and others still had been stepped on and run over until they were broad, flat and smooth. There were 15 or 20 Canadian 10 cent pieces, a teacupful of worn and battered nickles (sic), a few French francs and the balance in those an- cient quarters that have been worn until they look like smooth white disks. "It was a beautiful quart of junk, and I carried it around in an old sock in my back pocket for three days before I picked up the kazabo I was laying for. The car was crowded, but I made right for him. "'Fare', said I innocentlike. "Sure enough, he flashed the same old ten bones, throwing in a graceful apology and gentlemanly song and dance about his deuced forgetfulness. "'Don't mention it, says I, taking the bill, which made him start a little. Then pulling out the sock I began unloading money on him. I had the motorman tipped to go slow, and by hustling lively I got the whole business counted out to him be- fore I got to Fifty-ninth. He filled his pockets and tied up a bunch of metal in his handkerchief, while the other passengers guyed him good and plenty. "Transfer?' said I at last. "'Yes, please, said he meekly and got off at Fifty-ninth. 'The boys had a great laugh over it at the carhouse, and I felt mighty proud of my feat. I was just about to tell the story to the cashier when I went to turn my money in at the end of the day, when, after looking at the $10 note, he flung it back at me. "'No good. Counterfeit, said he. Page 80 Paper Money Whole No. 153 "I didn't say a word, but went back behind a car and kicked myself good and hard. "I've been waiting for that well dressed gent ever since, but he doesn't take my car any more'.=New York Times.—Winona (Minn.) Daily Republican, Sept. 28, 1900. VERITABLE "JIM THE PENMAN" Many stories of skill in imitating penmanship are told, but the following, related by an English authority, is probably the most wonderful authentic case ever recorded. "In 1866 Robert Stewart, a famous master of penmanship, ex- ecuted a five-pound Bank of England note with such marvelous accuracy and reality that he was waylaid in the streets one night and robbed of the note by a ruffian who had seen it in his pos- session a few hours previously. Stewart, indignant at the treat- ment to which he had been subjected, gave chase to the thief and with the assistance of the police succeeded in recovering the sham note. "At the subsequent police court proceedings no one seemed to have the slightest suspicion as to the genuineness of the note, which was handed around to the various persons en- gaged in the case. "A few weeks later, Stewart, who was a personal friend of the cashier of the local (Newcastle-on-Tyne) bank, took the note to him one morning and asked that it might be cashed. In return for it he received five sovereigns and left the bank. "An hour or two after he paid a second visit to his friend the cashier, and, taking him to one side, confessed that the money was a forgery, and refunded him the money. The cashier, whose surprise was great, refused to believe the note was a counterfeit, and was not convinced until Stewart had executed another one in his presence.tButte (Mont.) Miner, Feb. 23, 1896. New Literature Standard Catalog of National Bank Notes. Second Edition. By John Hickman and Dean Oakes, 81/2" x11" hardbound. 1249 pages. $95.00 postpaid from Krause Publications, 700 East State Street, Iola, WI 54990. This is the long-anticipated update to the classic reference first issued in 1982. The work actually combines the work of three individuals—Louis Van Belkum, John Hickman and Dean Oakes. Louis Van Belkum began the organized research of national currency nearly twenty years ago, when he systematically reviewed the records of the Comptroller of the Currency in the National Archives in Washington, DC. His research provided for the first time the 12,544 of the 14,320 national banks char- tered between 1863 and 1935 which issued currency. Further, he was able to document the major types of notes that these banks issued, the denominations that were issued, and the exact number of notes of each type and denomination issued by each bank. Van Belkum was also able to determine the dollar amount of unredeemed large and small size currency of each bank. John Hickman began cataloging national bank notes over thirty years ago. His personal file of photocopies of existing notes now numbers over 135,000. By combining the data provided by Van Belkum with his own extensive observations, he devised a rarity scale for the surviving issues of large- and small-size notes from each issuing charter. This scale is applied in those cases where different titles appear for the same charter number. For the purpose of applying a general value, the book also contains a rarity scale for the reported survivors of each state and territory. The rarity scale ranges from "6" (rarest) to "1" (most common) for surviving issues. Rarity "6" applies to those titles where the number of reported survivors is zero to two. Sure to be of interest to collectors and dealers in this second edition is a listing for each state of those titles for which no survivors are known. Dean Oakes applied computer technology to the data gener- ated by Van Belkum and Hickman, and used his many years as a collector and dealer to generate values for the individual issues of each bank. These values apply to notes in the condi- tions for which they are most often found—very good, very fine and almost uncirculated. Although the values were generated by a computer program, Dean applied his knowledge of the real marketplace to adjust the values accordingly. Notes from certain states and in- dividual banks are always in demand, even though they may be considered "common"; the converse is true for some of the "rarer" banks, because there are few collectors interested in them. The authors recognize that the true value of any note is the price a seller and buyer agree upon at a particular point in time. They clearly state that the quoted valuations are "intended merely to serve as a guide in evaluating the worth of any na- tional bank note Another group accorded due appreciation for their efforts are the more than 300 individuals and organizations who provided information about notes to the authors. The information is listed alphabetically by state, community and bank title. Each listing contains the following information: Charter Number Rarity (large and small if applicable) Bank Title as used on the notes Date organized Previous organization (if applicable) Fate (if applicable) Types issued, including denominations Number of sheets issued, including serial number range Total amount of circulation in dollars Total number of notes issued (large- and small-size if ap- plicable) Amount of circulation outstanding (large- and small-size if applicable) The introduction to this catalog would stand by itself as a separate publication, as it provides valuable basic information for both the beginning and experienced collector. Of special in- terest is the information furnished about the national gold bank notes, and Dean Oakes' suggestions as to how one might go about collecting these fascinating pieces of history. I cannot imagine anyone who collects or deals in national bank notes being without this valuable reference. Bob Cochran Alabama Sl, Cr. 1, first se es, plate letter "I." N SUMS OF TWSNTY•DOLLARS AND Lwwanos. 1,6!-% (7, • T WREN rRESENTSO .rn EA Sll -.„14)6;.Y. Paper Money Whole No. 153 Page 81 The Use of "Old English" Style Plate Letters "I" and "J" — One Interpretation — by ROBERT J. LINDESMITH S EVERAL years ago I tried to make sense out of why my collection contained plate letters A, B, C, D, E, F, G, H, I, J, K, L, & M of Alabama $1 notes, Cr. 1. "1ST SERIES" At that time, I made a tracing of "E'; "I" and "J" from some reference source. It was not of much help as it only indicated that J.T. Paterson & Co. of Augusta, Ga. used a slightly different style of "Old English" letters. Evidently, a lack of spare time made me put this project aside for future reference. to make an identification could explain why J.T. Paterson & Co. did not use the Old English style "I" and "J" on the same sheet. Along this same line, I note that the North Carolina $1 Cr. 89 note in my collection has an identical plate letter "I". This would suggest that Cr. 89 with a plate letter "J" does not exist. As a second illustration, I find that North Carolina Cr. 131, 132 and 133 have a plate letter "J". A very similar "I" to that found on the Alabama note is turned upside down to make an "L" While I have all the plate letters for the "1ST SERIES" and "2ND SERIES" Alabama $1 notes, I do not have all the plate letters of North Carolina Cr. 89, 131, 132 and 133. How- ever, I do believe the notes I have will back up my observa- tions. In any event, I'm certain that the illustration of the three Alabama $1 notes will make it a great deal easier to make sense out of the listing of "Old English" plate letters "I" and "J" FIRST REPORT OF "I" ERROR Since writing the preceding, I have had a chance to check a As it is evident that the sheet ?, contained 12 notes and that the money-making concerns of the South made a point of not ;i1-` ' using the Old English style "I" f, and "J" on the same sheet, it was % logical that there had to be a different answer. A study of several notes with the same plate letter revealed that the plate letter varies in position on the notes. This would indicate that the plate letters were added to the sheet in a second operation. Thus it is possible that someone failed to turn the "I" stamp upside down in order to make an "L" This would explain the rarity of the "I" variety. I have examined over one hundred $1 notes in the 1st and 2nd Series and have yet to find a duplicate. In my early study I had the impression that if a collector had only the plate letter "I" note there would be a problem in determining whether it was "I" or"J" The fact that it was not easy Plate letter "L" reference guide I made on Alabama obsolete notes some 25 years ago. I discovered that the section on Southern State Notes contains three very interesting entries. The first shows that John E. Morse reported the "I" error variety back in 1923 (Bradbeer 1—not 10): tibiABL TREASURY NO 4 ' . THE STAI 17:1' Page 82 v0,,em40 rneAcunv tiTg$ 4j rR f L - ir