Paper Money - Vol. L, No. 4 - Whole No. 274 - July - August 2011

PAPER MONEY OFFICIAL JOURNAL OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. L, NO. 4, WHOLE NO. 274 WWW.SPMC.ORG JULY/AUFUST 2011 Obsoletes, Confederates, Nationals, Modern U.S., Foreign -- What’s your pick? Check ’em out inside this jam-packed issue What’s it? July-August cover 8/10/11 6:04 AM Page 1 July-August cover 8/10/11 6:04 AM Page 2 Paper Money • July/August 2011 • Whole No. 274 241 TERMS AND CONDITIONS PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 5510 Bolin Rd., Allen, TX 75002. Periodical postage is paid at Dover, DE 19901. Postmaster send address changes to Secretary Benny Bolin, 5510 Bolin Rd., Allen, TX 75002. © Society of Paper Money Collectors, Inc., 2011. All rights reserved. Reproduction of any article, in whole or part, without written permission, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for $6 postpaid. 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Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). Camera-ready copy, or electronic ads in pdf format, or in Quark Express on a MAC CD with fonts supplied are acceptable. ADVERTISING RATES 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 Eighth page B&W 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but not guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertise- ments, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that por- tion of an ad in which a typographical error occurs upon prompt notification. v Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. L, No. 4 Whole No. 274 July/August 2011 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 118162, Carrollton, TX 75011 Visit the SPMC web site: www.spmc.org FEATURES The Paper Column: Series of 1929 Type 2 Serial Numbers . . . . 244 By Peter Huntoon, Lee Lofthus & James Simek Origin of Banknote vignettes (U.S.) 2: The Young Students . . . . 250 By Walter D Allan, FCNRS and Donald C. O’Brien Weyauwega Wisconsin & the Racine Connection . . . . . . . . . . . . 257 By Tom Snyder Don’t Try This at Home . . . or Econ 101 . . . . . . . . . . . . . . . . . . . 259 By Carson Miller New Zealand’s First Government Issue of Bank Notes . . . . . . . . 262 By Carlson R. Chambliss Serial Number Rarities In the Red Seal $1 Series 1928 USNs . . 268 By R. Logan Talks A Confederate Note that Tells a Good Story . . . . . . . . . . . . . . . . 274 By Steve Feller Quest for the Stones, Part 4: The Last Mission of CSA Note Bureau 284 By Tom Carson, George Tremmel & Crutch Williams What’s it? turns out to be note canceling hammer . . . . . . . . . . . . 289 By Col Crutch Williams CSA How Rare are Fancy Serial Numbers? . . . . . . . . . . . . . . . . . . . . 293 By Dave Undis The Buck Starts Here: Artist Darley responsible for many designs . . 300 By Gene Hessler Small Notes: Mellon’s Two Signatures . . . . . . . . . . . . . . . . . . . . 301 By Jamie Yakes Bank of Dixie, Fayetteville, Arkansas January 8, 1862 . . . . . . . . 302 By Quintin Trammell The Paper Column: What does ‘Large Out’ Really Mean? . . . . . 306 By Lee Lofthus & Peter Huntoon SOCIETY NEWS Information and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242 CSA fake note study an eye-opener says Texas author . . . . . . . . . . . . . . 260 Reviewed by James Bevill New U.S. paper money books highly recommended . . . . . . . . . . . . . . . . 260 Reviewed by John & Nancy Wilson President’s Column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .298 By Mark Anderson *July-August 2011 Paper Money 8/9/11 1:29 PM Page 241 Paper Money • July/August 2011 • Whole No. 274242 Society of Paper Money Collectors OFFICERS ELECTED OFFICERS: PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 VICE-PRESIDENT Pierre Fricke, Box 52514, Atlanta, GA 30355 SECRETARY Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 TREASURER Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Pierre Fricke, Box 52514, Atlanta, GA 30355 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Matt Janzen, 3601 Page Drive Apt. 1, Plover, WI 54467 Robert J. Kravitz, P.O. Box 6099, Chesterfield, MO 63006 Fred L. Reed III, P.O. Box 118162, Carrollton, TX 75011-8162 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Lawrence Schuffman, P.O. Box 19, Mount Freedom, NJ 07970 Neil Shafer, Box 170138, Milwaukee, WI 53217 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 APPOINTEES: PUBLISHER-EDITOR Fred L. Reed III, P.O. Box 118162, Carrollton, TX 75011-8162 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 ADVERTISING MANAGER Wendell A. Wolka, P.O. 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 PAST PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 WISMER BOOK PROJECT COORDINATOR Pierre Fricke, Box 52514, Atlanta, GA 30355 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING HUGH SHULL P.O. Box 2522, Lexington, SC 29071 PH: (803) 996-3660 FAX: (803) 996-4885 CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Auction Representation 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR SPMC LM 6 BRNA FUN 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 SPMC meeting is held in June at the Memphis International Paper Money Show. Up-to-date information about the SPMC, including its bylaws and activities can be found on its web site www.spmc.org. SPMC does not endorse any company, dealer, 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 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed 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 eligi- ble to hold office or vote. DUES—Annual dues are $30. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world add $10. Life membership — payable in installments within one year is $600, $700 for Canada and Mexico, and $800 elsewhere. The Society has dispensed with issuing annual membership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join as available. Members who join after October 1 will have their dues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in a fall issue of Paper Money. Checks should be sent to the Society Secretary. v *July-August 2011 Paper Money 8/9/11 1:29 PM Page 242 Paper Money • July/August 2011 • Whole No. 274 243 WANTED GREAT RESEARCH AND FEATURE ARTICLES ON ALL PHASES OF BANKS, BANK NOTES, FINANCE, CURRENCY, BONDS, STOCKS, & ETC. IT’S VERY SIMPLE TO SUBMIT ARTICLES AND ART ELECTRONICALLY VIA EMAIL DON’T WAIT SEND YOUR BEST STUFF NOW TO fred@spmc.org Time is passing . . . . . . Remember, we have a special offer for NEW authors -- five $100 prizes for short (1,200 words or less) articles published this year have been donated by one of SPMC’s veteran authors! *July-August 2011 Paper Money 8/9/11 1:29 PM Page 243 Paper Money • July/August 2011 • Whole No. 274244 THE STORY OF THE CHANGEOVER FROM TYPE 1 TO TYPE2 Series of 1929 notes has not been told previously. The followingexplanation is pieced together from the correspondence files of theBureau of Engraving and Printing and Bureau of the Public Debt in the National Archives. It is necessary to examine the steps in the manufacture of the Series of 1929 notes as well as some long-established traditions for the numbering of bank notes on sheets in order to fully understand the evolution to the Type 2 style of serial numbering. The intaglio backs and faces of Series of 1929 sheets were printed on 12- subject presses from flat plates. All 12 subjects on a given plate were the same so separate plates were used for the different denominations. The sheets, which consisted of two columns of six notes each, were cut vertically into halves. The bank information was overprinted in black on the half sheets, and finally the half sheets were sealed and numbered in 6-subject form using brown ink. The completed half sheets were sent to the Comptroller of the Currency’s office where they were distributed to the banks. The delivery of uncut sheets to bankers was an established tradition dating from long before the Bureau of Engraving and Printing came into existence. Sheets were convenient when bankers had to hand-sign their notes, but that convenience vanished once the sig- natures were printed. A second inherited tradition was that of using the same serial number on all the notes on a given sheet. Different plate letters were used to distinguish between like subjects on the sheet. Sheet numbering of National Bank Notes originated with the bank note companies in 1863 and was passed forward to the Bureau of Engraving and Printing in 1875. The tradition of issuing the notes in sheet form and using the same serials on all the subjects on a sheet was adopted without question during the conversion to small size Series of 1929 Type 1 nationals. However, the concept was taken one step further. The stock from which the 6-subject sheets were printed originated from 12-subject plates whereon the subjects were lettered A through L. Once the sheets were cut in half, the G through L plate letters on right halves made no sense for accounting purposes. Series of 1929 Type 2 Serial Numbers The Paper Column by Peter Huntoon, Lee Lofthus and James Simek *July-August 2011 Paper Money 8/9/11 1:29 PM Page 244 Paper Money • July/August 2011 • Whole No. 274 245 The solution was to employ prefix letters A through F in the serial num- bers to indicate the position of the notes on the half sheets regardless of which half of the 12-subject sheet was being serial numbered. The plate letters were ignored. This is a wonderful example of human inertia. Everyone simply kept moving in the same direction, creating whatever convolution was necessary to stay the course. The problem with adopting the Type 1 sheet serial numbering style was that those who handled and issued the sheets found themselves locked into an archaic format that quickly forced them to do their accounting in units of six notes, instead of individual notes. Initially, in 1929, the Comptroller’s clerks would receive notification from the Treasury Redemption Agency that some dollar amount of notes had been redeemed for a given bank, and the clerks would issue new notes, which commonly involved cutting notes from the sheets to make up the correct total. This led to cumbersome entries in the ledgers and greatly complicated the recti- fying of the accounts. In short order, the Comptroller requested that the Treasury Redemption Agency certify redemptions in 6-note multiples so that the Comptroller’s office could issue whole sheets to the banks. This complicated the bookkeeping in the Redemption Agency, which added to their costs and forced them to hold odd numbers of notes for varying periods at the expense of expedi- tiously processing the all the notes on behalf of the issuing banks. Much worse though was that having the same serial number on all six notes on a sheet ultimately scuttled the desire of all involved, especially the bankers, to handle the notes in cut form rather than in sheets. The problem was that the repetitious serials confounded bookkeeping once the notes were separat- ed because like numbers would cause confusion in packaging the notes and the accounting for them. Figure 1. This is the very first Type 2 $50 that was printed. The number 1 Type 2 sheets for all five denomina- tions for this new Chicago bank were part of a printing order for $600,000 placed with the Bureau of Engraving and Printing on May 31, 1933. This order happened to contain the first request for Type 2 $50s and $100s. They were delivered from the BEP to the Comptroller on June 24th. (Photo courtesy of James Simek) Figure 2. The Bank of America was the only bank in the country to issue sufficient numbers of Type 2 notes for the prefix letter to advance to B. The $5 serials issued by the bank were A000001-A999996 and B000001- B172602, representing $5,862,990. $5 serials through C074856 were printed in 1933, but C-prefix and remaining B-prefix sheets were not sent to the bank because the Series of 1929 was terminated before they were needed. *July-August 2011 Paper Money 8/9/11 1:29 PM Page 245 Paper Money • July/August 2011 • Whole No. 274246 In contrast, Type 2 serials were note numbers arranged consecutively down the half sheets with a prefix, but no suffix, letter. In addition, a brown charter number was overprinted next to each serial number adjacent to the cen- tral portrait. The first order for Type 2 notes was requisition number 1099 sent from the Comptroller’s office to the Bureau of Engraving and Printing on May 13, 1933. The instructions on how to set up the presses to do this work were finalized in the serial numbering section on May 24, 1933. The first of the Type 2 sheets was sent from the Bureau to the Comptroller’s office on May 27, 1933, with $5s for Demopolis, Alabama (10035), $10s for Denver, Colorado (1651) and $20s for Williamstown, New Jersey (7265) leading the pack. The last of the Type 1 notes was sent two days later. At first, the primary incentive to convert to the Type 2 numbering style was annoyance on the part of bankers that they still had to cut the notes from their sheets. Needed were notes numbered in numerical order that could be separated and packaged like other currency. Requests for deliveries in note form from bankers across the country were reaching all the agencies involved with the national bank issues. Important was a lobbying effort in late March, 1930, by a Mr. Mountjoy of the American Bankers Association requesting that serious consideration be given to the mat- ter. By 1930 the agency people already were converging on the idea of delivering the notes to the banks in 100-note packages. There were proposals for the Comptroller’s office to purchase cutting machines so operatives there could cut the sheets before shipping them to the banks. An alternative proposal was for the Comptroller to return the 4.5 million sheets in his inventory at the time to the Bureau to have them cut and packaged over there. However, the problem of multiple notes with the same number on the Type 1 sheets loomed large in the deliberations for change. From the outset of the 1929 issues, the Redemption Agency was receiv- ing mutilated notes where the bank information was completely washed off making identification by bank of issue difficult to impossible. However, sorters often could read the serial numbers because the brown ink penetrated more deeply into the paper than the black ink used to overprint the bank information. Furthermore, if a badly eroded note was sent in for redemption, the core of the note surrounding the portrait usually was intact, whereas the borders containing the black charter numbers might be totally missing. The plan quickly evolved that if new numbering blocks had to be pur- chased to allow for consecutive numbering down the sheet, they could also be designed to add charter numbers adjacent to the respective sides of the portrait. The advantage of the extra charter numbers was that they would be printed with the deeper penetrating brown ink and they would be placed in the critical core of the note. Figure 3. $50 and $100 Type 2 notes are highly prized by collectors because they were issued in small quantities by a limited number of banks. This jewel recently went by on eBay, the highest grade Type 2 $100 reported from the bank so far from the 288 printed and issued. (Photo courtesy of William Herzog) *July-August 2011 Paper Money 8/9/11 1:29 PM Page 246 Paper Money • July/August 2011 • Whole No. 274 247 Thus the Type 2 concept would kill two birds with one stone: (1) con- secutively number the notes, and (2) add two charter numbers to facilitate identi- fication of mutilated notes. The idea for including the two charter numbers in brown came from William S. Broughton, Commissioner of the Public Debt Service in a memo to Bureau Director Alvin W. Hall dated April 2, 1930. Broughton suggested that the charter and serial numbers be stacked on the respective sides of the notes. Putting the numbers in-line with the charter numbers adjacent to the portrait was the suggestion of Director Hall in a response dated April 22, 1930. Hall was concerned about potential crowding and overlap of design elements on the notes if the numbers were stacked. Besides, having the numbering discs for the two numbers on the same axle within the numbering blocks was far easier to accommodate mechanically. The fact is that the discussions leading to the adoption of the Type 2 numbering style progressively focused more on the additional brown charter numbers than on providing pre-cut notes for the bankers! Leading the charge for the additional brown charter numbers was the Redemption Agency staff. Even though there was consensus on the merits of the Type 2 concept in early 1930, the agency people dithered, so implementation stalled. But time marched on. On April 28, 1931, Mr. Broughton signaled the frustration of Treasury officials when he wrote to BEP Director Hall: “Something should be done about National Bank Notes. Everyone has agreed (1) that the notes should be separated before shipment, and (2) that additional means of identifying the bank of issue should be provided. . . . Moreover, the Secretary has promised the banks in due course that the notes will be delivered separated. . . . Several plans have been considered and at least one has been approved but misunderstandings or compli- cations have invariably arisen which have prevented the proposal being carried out.” Broughton’s memo was designed to light a fire under the agencies, but the BEP in particular. Instead the issue smoldered and weakly at that. An interagency Currency Committee was formed and recommended on July 18, 1932, that the BEP be authorized to purchase new numbering blocks to print the Type 2 notes, but “That the matter of separating sheets into notes prior to shipment be abandoned for the time-being.” The committee went on to explain “It has been the purpose of the Department to furnish the banks with separated notes but the difficulties are so great that it is deemed wise to give no further consideration to the matter at this time.” Broughton, a member of the Currency Committee, in a memo written two days later to Assistant Secretary James H. Douglas Jr. lamely elaborated: National Bank Notes are produced as job orders. It is not prac- ticable to separate and exactly collate National Bank Notes at the Figure 4. The number discs compris- ing each serial-charter number pair turned on the same axle, but the fonts differed between the two types of numbers to distinguish them. The charter numbers were dialed in and locked during setup of the press. It was inevitable that someone would misdial the charter numbers as hap- pened here. Two of these are report- ed, respectively with plate letters J and L, corresponding to positions 4 and 6 on the half sheets. The other is A002332. Consequently, it appears that all the brown charter numbers were incorrectly set on this press run, which consisted of serials 1501-3264, received at the Comptroller’s office September 23, 1933. *July-August 2011 Paper Money 8/9/11 1:29 PM Page 247 Paper Money • July/August 2011 • Whole No. 274248 Bureau. It would add many times to the cost. It is possible to separate the notes without undue expense, but not to collate them. If a change from sheet to separated notes were made the Comptroller’s vault equipment would be wholly obsolete. A complete change in vault con- trol and shipping procedure would be necessary at considerable expense and reduced security. The present is considered a bad time to make a change, and so the proposal to separate notes before shipment is being abandoned for the time-being. The recommendations of the committee were approved August 1, 1932, by Douglas. All the agency people agreed that the addition of the extra charter numbers printed in the deeper penetrating brown ink next to the portraits was sufficient justification on its own merits to make the change. Deputy Comptroller of the Currency Frank Awalt sent a memo to Broughton on November 21, 1932, stating “. . . it is requested that each denomi- nation for each bank start with A000001 as it will greatly facilitate the keeping of records of this office.” Orders were then placed for the new numbering blocks. Separation of the notes never did occur. Delays were caused by deciding whether the Bureau of Engraving and Printing or the Comptroller’s office should Figure 5. This Mount Olive bank had the highest charter number to appear on a Type 2 $100. The entire issuance from the bank consisted of 250 of these 100s. Needless to say, the note is a rarity. *July-August 2011 Paper Money 8/9/11 1:29 PM Page 248 Paper Money • July/August 2011 • Whole No. 274 249 separate the notes. The favored option was to have the Bureau do the cutting. If the Bureau was to separate and handle the notes, suitable vault space with furnishings and equipment had to be arranged, additional counters had to be hired, and new procedures had to be developed for distributing the notes directly to banks without the notes having to pass through the Comptroller’s office. Also, it was desirable to wait until the stocks of Type 1 sheets could be depleted because handling them in separated form was undesirable for accounting purpos- es. No progress was made on cutting the sheets by the time the series was phased out in 1935. The long sought desire of bankers to receive their notes in individual form had been a topic of discussion since the inception of the series, yet the only progress in that direction was to start numbering the notes consecu- tively down the sheets beginning belatedly in 1933. The fact is, the bankers lost out because it was inconvenient for the agencies to separate the notes. Besides, there remained large numbers of Type 1 sheets in the Comptroller’s inventory that would be a pain to deal with thanks to the repetitious sheet serial numbers on them. There was momentary consideration of simultaneously shipping Type 1 notes to the banks in sheet form and the Type 2s in cut form, but this idea was quickly dropped because the bankers receiving the Type 1s would feel discrimi- nated against and probably would howl loudly. Ironically, there was a bookkeeping benefit to both the Comptroller’s office and the Redemption Agency attending the use of the Type 2 sheets. No longer was the Redemption Agency bound to certifying redemptions in 6-note increments. Instead they could report and clear all redemptions exactly as they came through, and the Comptroller’s clerks could issue new notes in serial num- ber order to those exact amounts by cutting the necessary numbers of notes from sheets if need be. The practice of cutting one or more notes from sheets to make up deliv- eries to offset redemptions closed out the Type 2 era, and explains why the final Type 2 serials issued to many banks are not evenly divisible by 6. The irony in all of this is that the primary incentive to adopt Type 2 numbering was so that individual notes could be delivered to the great conve- nience of the bankers. The actual reason that Type 2 numbering was adopted was to take advantage of the duplicate charter numbers that were applied inciden- tally in the process in order to facilitate identification of mutilated notes turned in for redemption. Banker constituency: lose! Agency personnel: win! The Type 1 serial numbers were sheet numbers; whereas, the Type 2 numbers were note numbers. Three serial numbering conventions were common to both the Type 1 and Type 2 issues. Serial numbering started at 1 for each different denomina- tion. Serial numbering started over when bank titles were changed. However, serial numbering did not start over when bank signatures changed. Sources of Data Bureau of Engraving and Printing. Bureau of Engraving and Printing Central Correspondence Files: Record Group 318, U. S. National Archives, College Park, MD, 1913-1939. Bureau of Engraving and Printing. Schedules of the delivery of national bank currency: Record Group 318, U. S. National Archives, College Park, MD, 1924-1935. Bureau of the Public Debt. Series K Currency: Record Group 53, U. S. National Archives, College Park, MD, various dates. Comptroller of the Currency. Requests to print currency: Bureau of Engraving and Printing Historical Resource Center, Washington, DC, 1929-1935. v Discover . . . YOUR pot of gold HERE! Advertise in PAPER MONEY *July-August 2011 Paper Money 8/9/11 1:29 PM Page 249 Introduction Editor’s note: Walter Allan’s life-long avocation has been researching the origin of bank note vignettes and Don O’Brien’s interest has been researching individual engravers. Recently they discovered that they had a mutual interest in a vignette, “Mutual Improvement,” It appeared in the June 1857 issue of The Ladies Repository, a Methodist magazine published in Cincinnati from 1841-1876. Along with much literary and religious material the editors usually published two steel engravings in each monthly issue including the following: “Holfield Painter -- Engraved Expressly or the Ladies Repository by F.E. Jones” While Allan has amassed a collection of bank notes with this vignette, O’Brien has been working on a manuscript, “The Engraving Trade in Early Cincinnati,” and has accumulated new information on bank note engravers work- ing in the city especially prior to 1850. He has also become extremely interested in the engraver of this vignette, F. E. Jones, although he was never bank note engraver as far as it is known. Paper Money • July/August 2011 • Whole No. 274250 Origin of Banknote vignettes (U.S.) 2 The Young Students or Mutual Improvement after D. Holfeld By Walter D Allan, FCNRS and Donald C. O’Brien Above: “Holfield Painter – Engraved Expressly for The Ladies Repository” – F. E. Jones “Mutual Improvement.” *July-August 2011 Paper Money 8/9/11 1:29 PM Page 250 Paper Money • July/August 2011 • Whole No. 274 251 *July-August 2011 Paper Money 8/9/11 1:29 PM Page 251 Fitz Edwin Jones F[itz] Edwin Jones (fl. 1840-1872) was a mezzotint and stipple engraver who worked for the Methodist Book Concern in New York City before transfer- ring to Cincinnati in 1851. Over the next quarter century he engraved more than 150 plates for the Repository. Many were after original works of art while others were copied from daguerreotypes or from engravings such as “Mutual Improvement” after the French artist, Dominique Hippolyte Holfeld (1822- 1872). Jones may have owned a book with plates for he had already engraved a work after this artist that appeared in the January 1851 issue of the Repository and it is most likely that he copied other works from these same books. With its publication, “Mutual Improvement” offered a view of three small, innocent children studying the subject of latitude and longitude. Hence it was no wonder that the National Bank Note Company [NBN] added this pleasant subject matter to its inventory a few years later although they changed the title on their vignette to “The Young Students” and reduced the size. “The Young Students,” National Bank Note Co. A $3 Merchants’ Bank of Trenton New Jersey note has the same oval vignette. The note was printed with a green tint and dated in ink, Nov. 20, 1864. He also has a similar $1 note for the Bank of Pontiac, Michigan. Obviously, these were some of the last state bank notes issued before the U.S. government green backs dominated. Merchants’ Bank, Trenton, New Jersey, National Bank Note Co. Paper Money • July/August 2011 • Whole No. 274252 *July-August 2011 Paper Money 8/9/11 1:29 PM Page 252 Bank of Pontiac, Pontiac, Michigan, National Bank Note Co. “Mutual Improvement” and other attractive vignettes plus the elaborate lathe work on the notes was probably completed by NBN’s Alfred Jones (1819- 1900) or James Smillie (1807-1885), two of the best vignette engravers who ever lived. Interestingly, there was no relationship between F.E. and Alfred Jones, according to David McNeely Stauffer who knew Alfred Jones personally. Stauffer wrote in his first volume of American Engravers Upon Copper and Steel (2 vols., New York: The Grolier Club, 1907), that F.E. Jones’ first known whereabouts was working as a copper plate printer in Carlisle, PA before moving to New York City. Alfred Jones migrated from England to work for Rawdon, Wright & Hatch in the 1840s. Undoubtedly, they knew each other in their early days and probably admired each other’s work. The same vignette engraved by NBNCo appears on checks of The City Banking Company of Macon, Geo. One is in blue tint with an orange revenue imprint and an engraved date, 186_. Written over it in ink is May 7, 1870, indi- cating that the checks were printed in the 1860s, but this particular one was not used until the next decade. The bank ordered new checks that were now printed on off white paper and with a different orange revenue imprint. The engraved date was then changed to187_ and signed in ink, November 6, 1870. Sometime later the bank’s name was changed to The City Bank of Macon, Geo. New checks were issued, but now it included an orange revenue imprint with the portrait of Franklin [RN-D1]. These are dated Jan. 8, 1874, and Jany. 23, 1874. The City Banking Company of Macon, Geo., May 7, 1870, National Bank Note Co. 253Paper Money • July/August 2011 • Whole No. 274 *July-August 2011 Paper Money 8/9/11 1:29 PM Page 253 Paper Money • July/August 2011 • Whole No. 274254 The City Bank of Macon, Geo., Jan. 8, 1874, National Bank Note Co. Another exquisite example of the use of this vignette is an Un Peso note for the El Banco del Pobre in Santiago, Chile, with an engraved date de 187_. Besides the fine vignettes and lathe work the face has a partial terracotta tint while the back is highly engraved with a shade of green. Banco del Pobre, Un Peso, Compania Nacional de Billetes de Banco, Nueva, New York (NBNCo) NBNCo joined the American Bank Note Company [ABNCo] in early 1879 along with the Continental Bank Note Company and their dies were obvi- ously transferred to the new company. “Mutual Improvement” or “The Young Students” as it had been renamed by NBNCo was not forgotten. The new ABNCo used it on an 1881 fifty peso back for the República Argentina and a face for EL Banco de España 25 pesetas. *July-August 2011 Paper Money 8/9/11 1:29 PM Page 254 255Paper Money • July/August 2011 • Whole No. 274 Republica Argentina, Fifty Peso [back], American Bank Note Co. El Banco de Espana, 25 pesos, American Bank Note Co. Another beautiful example is an 1888 100 Pesos note of the El Banco Minero in Chihuahua, Mexico. The face has three exquisite vignettes and is stamped in black ink at the top, 21 de Febrero 1914. The back contains “The Young Students” as well as extremely elaborate lathe work. El Banco Minero [Back], American Bank Note Co. Finally the author’s collection has back proofs, $5, $10, $20, and $100, for The Home Bank of Canada, issued initially in 1904. As can be readily seen “The Young Students” is flanked by delicate geometric lathe work in different colors. *July-August 2011 Paper Money 8/9/11 1:29 PM Page 255 The Home Bank of Canada, One Hundred [Back], American Bank Note Co., Ottawa The authors have also located photographs of other foreign and domestic bank notes with the vignette, “Mutual Improvement.” For NBNCo these include notes for the Bank of Ontario [NY], Columbia Bank [NY], El Banco de Lima [Peru], Pathsande Bank [NY], and the Taunton Bank [MA]; and for ABNCo, back of Banco de Jose Bunster [Chile] and Merchants Bank [Milwaukee, Wisconsin]. Interestingly, the painting was also lithographed for some unknown pub- lication. It was probably copied from the engraving, but reduced overall by one inch and the name was changed to “Make Home Attractive.” One such litho- graphed example appears on a check for The State of Mississippi Adams County and dated in ink, 3rd day of November 1874. It was lithographed by Van Beek, Barnard & Tinsley St. Louis. The State of Mississippi Adams County, Van Beek, Barnard & Tinsley, St. Louis The painting by Dominique Hippolyte Holfeld probably had limited exposure outside its native France. F.E. Jones made it somewhat well known through his engraving, “Mutual Improvement,” when it went into the home of thousands of subscribers to The Ladies Repository. And NBNCo and later ABNCo certainly exposed to the world their vignette, “The Young Students,” through their numerous bank notes, checks, and no doubt other financial documents, too. Paper Money • July/August 2011 • Whole No. 274256 Walter D. Allan welcomes information pertaining to his interest in the origin of bank note vignettes. He can be reached at Johnson’s Harbour, Tobermory, Ontario, Canada NOH 2RO: wdavignettes@amtelcom.net Donald C. O’Brien welcomes information pertaining to the graphic arts industry in Cincinnati prior to 1860. He is particularly interested in learning about obscure bank note engravers or examples of bank notes. He can be reached at 2368 Old Salem Road, Auburn Hills, MI 48326: Dobrien853@aol.com v *July-August 2011 Paper Money 8/9/11 1:29 PM Page 256 257Paper Money • July/August 2011 • Whole No. 274 The account below is taken from the History of Racine County (1916): THE NORTHROP FAMILY The Northrop family traces their ancestry from the Northrops and Booths of Yorkshire and Kent counties, England, who emigrated to America in 1637, settling in Fairfield county, Connecticut, where many of their descendents still reside. Doctor Booth Northrop married Miss Huldah Shepard, October 15, 1812, at Newtown, Connecticut, and began to practice medicine at Galway, Saratoga County, New York. To them were born three daughters and three sons. Two sons, the subjects of this narrative, located in Racine – George Chester Northrop and Byron Booth Northrop. Their older brother, Rev. Henry Horatio Northrop, was a Presbyterian clergyman, serving important parishes in the state of Michigan. He was regent of the State University. He died at Flint, Michigan, February 26, 1905, in his ninety-first year. George Chester Northrop, born April 6, 1818, a lawyer by profession, came to Racine county in 1849, stopping for a time at Rochester, Wisconsin, then moving to Racine. He became a member of the Racine county bar. In 1854, join- ing with Horatio B. Munroe, Reuben M. Norton and Henry S. Durand, he orga- nized the Racine County Bank, and was cashier and manager for several years. He was then twice honored by his fellow citizens with the office of mayor, being elect- ed by large majorities in 1861 and 1863. In the fall of 1864, he was elected to the state legislature and lacked only a few votes of being chosen speaker of the assem- bly. For one year he served the city as superintendent of the public schools, when his health began to fail and his earthly life closed July 15, 1874, leaving an only daughter, Sarah, now the wife of Will R. Banks of Lamar, Missouri. Their chil- dren are Northrop Banks and Mary Booth Banks. Byron Booth Northrop was born October 2, 1830, at Galway, Saratoga County, New York. He was educated at Yates Academy in Orleans County New York and Westcott Academy at Homer, Michigan. In 1847 he entered the University of Michigan at Ann Arbor, taking the classical course and graduated with the class of 1855. The degree of A.M. was conferred upon him in 1877. For several years he was in the employ of A. S. Barnes & Company, publishers, New York City, as general agent for Michigan and Wisconsin, introducing their school text books to the public and private schools of those states. During his sales trav- els, much by rail, he found that Weyauwega, Wisconsin, did not have a bank and convinced his brother that an opportunity was at hand in that community. At age Weyauwega Wisconsin & the Racine Connection by Tom Snyder Above Weyauwega $2 Bank Note signed by Geo. C. Northrop, presi- dent and B. B. Northrop, cashier. The signed bank note illustrated is the sole surviving specimen of $1 and $2 notes issued by the bank. (Formerly from the Chet Krause collection) *July-August 2011 Paper Money 8/9/11 1:30 PM Page 257 Paper Money • July/August 2011 • Whole No. 274258 28 this was his beginning of what was to be a half century career in the banking business. In 1858, he along with his brother George established the first bank in Weyauwega, Waupaca County, Wisconsin, being a bank of issue called the Bank of Weyauwega. However, in late 1859, he disposed of this business, came to Racine and again, along with his brother George established the bank of B. B. Northrop & Company. This bank continued in successful business for twelve years, when along with the Bank of Racine, Henry J. Ullman, president they merged to form the Manufacturers National Bank of Racine, Charter #1802 in March, 1871. Mr. Ullman was elected vice president and B. B. Northrop, cashier. Mr. Jerome I. Case, was elected president. Mr. Northrop was annually re-elected for the next 37 years at which time, his hearing becoming sadly impaired, he retired in January 1908. On January 20, 1863, Byron Booth Northrop and Miss Alice Theresa Porter, the youngest daughter of the late Allen Porter, formerly of Hartford, Connecticut, were united in marriage in the First Presbyterian Church of Racine by the pastor, Rev. Charles J. Hutchins. (Andrew Parsons and Miss Martha Giles were married at the same time in a double wedding ceremony.) This union was blessed with two sons and one daughter. Their sons, Allen Booth Northrop and George Porter Northrop are conducting the W. A. Porter Furniture Company, which was established by their uncle William Allen Porter. The daughter, May was married May 21, 1891, to Philip Mayer Wackerhagen by Rev. Henry H. Northrop, of Flint, Michigan. To them were born a daughter, Alice and a son, Edward, both named after grandparents. Alice is a graduate of Vassar College and Edward is in his second year in the Racine High School. Their father, Philip M. Wackerhagen, associated with the J. I. Case Threshing Machine Company, passed away December 10, 1915, from Myocarditis. The family continues to reside at 1211 Main Street, which is the site of the Porter homestead, where grandmother played when a child six years old. The native burr oak trees still casting their benign shadows over the place as in the earliest days when Racine was a wilderness. This narrative would be incomplete without mention that B. B. Northrop was in 1877 a delegate to the Republican state convention at Madison and was placed upon the important committee on resolutions. In 1878 he was elected a school commissioner from the second ward, and was by the board of education chosen as its president. In 1885 he was elected an alderman from the second ward and appointed by the mayor, Hon. Joseph Miller, chairman of the finance com- mittee of the city council. He also served during his term of two years on three most important committees of the council, viz: revision of the city charter, lake shore protection and city water works. In 1887, he was nominated school commis- sioner from the second ward by Hon. D. A. Olin, mayor, confirmed by the council and by the board of education elected president. He was reappointed and re-elected, holding the office of president for four years. During these years, Hon. Horatio G. Winslow, a man of learning and distinguished ability, was superintendent of the public schools and the cause of popular education was decidedly advanced. In conclusion, it can be safely said that in every effort made to promote the welfare of the city, Mr. B. B. Northrop has loyally endeavored to lend a help- ing hand. In church work, in Young Men’s Christian Association work. in charita- ble endeavor and all kindred efforts he has sought to do his duty. And now, after an active and strenuous life, as an octogenarian (1916) he is enjoying a quiet and hopeful life in his commodious home at 845 Main Street. Mr. B. B. Northrop passed away at his home in 1920 at the age of ninety years. The Porter Furniture Company closed in 2010 after more than 150 years in business. v 1908 Photo from Racine Journal Times announcing Mr. Byron Booth Northrop’s retirement from banking. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 258 Paper Money • July/August 2011 • Whole No. 274 259 IN THE PAST FEW YEARS, IT SEEMS THAT THERE HAS BEEN Asignificant growing interest in U.S. paper money, especially high grade largesize notes. Why not! In my opinion our currency (as well as coins) is beauti-ful, displaying truly wonderful examples of American art. With the relatively recent advent of currency certification, however, cur- rency collectors may be falling into the same “trap” as coin collectors did when numismatic certification began around 30 years ago. This “trap” is simple for me to state: The raw uncertified notes in our collections or offered for sale may not live up to the standards of certification. Here is what I did recently to test out this notion. It comes with a warn- ing label: DO NOT TRY THIS AT HOME…unless you have lots of disposable money that can be placed at risk! I purchased 17 raw large Unites States notes. The costs varied from $65 to $3,500. All were described as Uncirculated, Choice Crisp Uncirculated, high grade, and nice AU. The notes were purchased about equally from major dealers, at major national show auctions, and from on-online auctions. All of the notes looked pretty nice to me! But the big question was: How would these notes hold up to the scrutiny of certification? The notes were shipped off to PMG and PCGS Currency. Some of the results are highlighted as follows: My “choice Crisp Uncirculated” 1899 $5 “Chief” Silver Certificate came back EF40. The 1918 “pristine, Crisp Uncirculated” $1 “Green Eagle” landed at EF40, but the similarly graded 1899 “Black Eagle” only dove down to AU58. My 1918 $2 “Battleship” in “Crisp Uncirculated” limped back to port at EF40. One of my bigger hits was the “choice Crisp Uncirculated” “Bison.” It roamed back home as Apparent VF35 with an expertly repaired corner wound (shown at right) that I certainly did not detect. And the greatest disappointment was the “choice Crisp Uncirculated” $5 “Date Back” that was a real “set back” at Choice VF35. The remainder of the notes all returned with similar results. None of the 17 notes were certified at the grade as advertised. The largest discrepancy was the $5 Date Back noted above. The least grade change was a 1922 $10 Gold Certificate that was advertised as “crisp Uncirculated” and came back AU58PPQ. But here is where things get better. The seller of the Bison note with the repaired corner returned my money with an apology, even after the note had been away at certifi- cation for two months. (Serial numbers don’t lie.) I have kept many of the notes in my personal collection because the grade on the holder was relatively consistent with its value, so I “got what I paid for.” And there is even better news. Some of the now certified notes were re-resold at a value higher than the purchase price. All-in-all, things worked out okay. But one must wonder: why the big discrepancy in grades? There are a couple reasons in my mind. First, grading remains subjective. Using an example from coin collecting, it is not unusual to Don’t try this at home…or Econ 101: Maybe you get what you pay for! By Carson Miller *July-August 2011 Paper Money 8/9/11 1:30 PM Page 259 Collector’s Guide to Modern Federal Reserve Notes, Series 1963 – 2009, 2011, by Robert Azpiazu, 2011, published by Whitman Publishing, LLC The recently released Whitman Publishing LLC, Collector’s Guide to Modern Federal Reserve Notes, Series 1963 – 2009 by Robert Azpiazu is another in a long line of “An Official Whitman Guidebook(s).” The reference covers 29 dif- ferent series of Federal Reserve Notes in denominations from $1 through $100. Star or replacement notes are also covered. It has a soft cover, is spiral bound and contains 448 well illustrated pages, about the same size as most of the Whitman “Redbook” references. The foreword was written by noted cataloger Art Friedberg, who said the book is especially valuable to collectors and dealers, at every level. The book lists the key notes for each denomination, which is especially useful since the number of notes printed does not always tell the whole story of what is truly scarce. This collector’s guide to modern Federal Reserve notes is written in an easy to read and understand format. The nine-page introduc- tion contains all the preliminary information you will need if you want to start collecting these small size notes. You will learn how to differentiate between the notes printed in Washington and Fort Worth, how notes are laid out on 32-subject sheets, and the elements of Federal Reserve notes, i.e. just what appears on the face and back of each note. We recommend that you always call paper money face and back, not obverse and reverse. The introduction also contains suggestions on using the book, various ways to collect the notes, paper money terms, information on low and fancy numbers, mules, runs (there are 15 different runs in current $1 Federal Reserve Note produc- tion. A run consists of 6,400,000 notes), series and district des- ignators and finally serial numbers. The author has spent countless hours in researching the information for this reference. The oldest Bureau of Engraving and Printing (BEP) Production Report that he could find was for 1976. He goes on to point out that many printings were omitted or the wrong information was given in these reports. Over many years, we have seen Robert looking at auction lots and attending just about every major paper money sale held. He also had bourse tables (or an early-bird badges), at most of the major coin and paper money shows. At these events he was constantly asking collectors and looking at dealers stocks of small size Federal Reserve Notes. Over the course of all these years of research, searching for needed informa- tion, buying and selling, he has listed prices for these notes which are a true barometer of just where the market stands at present. All this information is contained in this reference. We collect small size Federal Reserve Notes and many times we just are not sure how common or scarce a note is that we are about to purchase. With this easy to carry reference, we can look up the information with ease and know exactly what a note is worth. Though other paper money references include the pricing of the notes which are covered in this book, we feel this reference is the one to have for this series of notes. Author Robert Azpiazu has given us a reference that will enhance the collecting of small size Federal Reserve Notes. Some of the later issues of these notes can still be found in banks for face value. This reference will also be very useful from what ever source you are using to either buy or sell notes listed in the book. We have many small size FRNs in our col- lection, and with this reference we can review the notes and we can determine which are common and which are scarce. Paper Money • July/August 2011 • Whole No. 274260 find an AU58 coin that has luster, fewer marks, and eye appeal far beyond its tech- nical grade, yet has an almost undetectable wear condition. Coins of this nature have been referred to a “sliders.” Uncertified examples will often pass for Uncirculated and can easily be found offered as such. And so it is with currency. I have some notes that are crisp, look com- pletely Uncirculated, and are graded AU55 and 58. Frankly, I have an EF45EPQ that baffles me – it appears brand new! And second, the third party grading stan- dards are not yet fully understood by collectors and dealers. Our standard refer- ence books typically include only a few descriptive measures for grading. The new measures have become significantly more comprehensive and, therefore, much more challenging to the collecting community to grasp. We all have much to learn, and eventually there will be a wide selection of improved currency grading guidelines that are typical of numismatics today. Hope it doesn’t take 30 years! v New U.S. paper money books highly recommended By John & Nancy Wilson *July-August 2011 Paper Money 8/9/11 1:30 PM Page 260 Both the dealers and collectors now have a very useful guide to price their collection or stock in a fair and equitable way. According to the publisher of this book, “We feel this book has the same potential to revolutionize and invigorate paper money variety collecting that the Cherrypickers’ Guide had for the U. S. coins back in the early 1990s.” We wholeheartedly agree and think that a steady and upward movement is in the cards for the series of notes cov- ered in this reference. The retail price of the reference is $29.95. For informa- tion regarding the book or purchasing a copy, you can contact: Whitman Publishing, LLC, 3101 Clairmont Road, Suite B, Atlanta, GA 30329, Phone (404) 235-5300 or (800) 546-2995, Email info@whitmanbooks.com Web Page http://whitman- books.com A Guide Book of United States Paper Money, “The Official Red Book,” 3rd ed., 2011,by Arthur L. and Ira S. Friedberg, Introduction by David L. Ganz, published by Whitman Publishing, LLC This Third Edition of, A Guide Book of United States Paper Money, by Arthur and Ira Friedberg has many improvements from the last edition which was published by Whitman in 2008. This 3rd edition has 446 pages, is well illustrated, and has many full-color plates (face and back) of virtually every issue of U. S. paper money from 1861 to pre- sent. The color plates are beautifully done and would be hard to improve on in future edi- tions. The book covers market values in grades (with some exceptions) from Very Good to Uncirculated 63. The quantities of small size notes printed will also be very use- ful. Arthur and Ira Friedberg have been involved in U. S. paper money for over three decades. Robert Friedberg (1912-1963) was the author of the 1953 edition (and subsequent editions) of Paper Money of the United States, which became the standard reference over this time. Today, that reference is in its 19th Edition (published late 2010) by Coin and Currency Institute. The Friedbergs have brought their vast experience and knowledge from that publica- tion to Whitman for the publication of this standard reference. We particularly liked the comments in the Introduction by attorney David L. Ganz, a past ANA President. Quoting him, “Encyclopedic in scope, it is lushly illustrated and filled with accurate valu- ations, and it contains the essential Friedberg numbering sys- tem that measures your collection’s completeness and facili- tates cataloging.” The introduction includes information on the “Civil War Years,” and will explain the rationale used for the issuance of paper money starting in 1861. The history of the Bureau of Engraving and Printing (BEP) follows. The “World at our Fingertips,” explains how paper money is used worldwide and how it dates back to the 9th Century A D. in China. “The “Bank of the United States” gives information on this famous bank which opened in 1791 and went out of business in the late 1830s. Following are sections on, “How to Collect United States Paper Money,” and “Grading U. S. Currency,” which we feel is a very important section especially if you are a newcomer. One way we have found to collect U. S. paper money is by denomination. We have a type deuce collection which we have exhibited in the past. A less costly way is to collect Aces or all the $1 denomination notes issued between 1862 – 1923. The “Storage and Care of Paper Money,” will give you infor- mation needed for the preservation of the notes in your collec- tion. Notes should be stored in a safe environment (away from sun, heat or dampness), as well as in a proper holder, such as acetate or Mylar. Too many notes have been damaged due to improper storage and the use of polyvinyl holders. The next section covers the “Types of U. S. Currency.” They are listed in the order of first passage of the legislation authorizing them. The catalog has all the notes of all the vari- ous issues listed by denomination(s) from 3¢ up to the $10,000. Page 344 mentions the special $100,000 Gold Certificates Series of 1934 (small size), of which 42,000 were printed. They were issued to facilitate internal transactions with the government and all but a few were redeemed. U. S. Postage and Fractional Currency (1863-1876) fol- lows and covers all five issues of denominations from 3 cents to 50 cents. Fractional Currency shields are mentioned and the three types are listed with prices. Specimen notes are not covered in this reference and the Friedbergs refer you to their book on U. S. paper money. We consider U. S Postage and Fractional Currency, the most undervalued of all numismatic paper money. Seven pages of the Treasury Notes of the War of 1812 follow and we appreciate the upgraded prices of this rare series. Not listed in the refer- ence is a $3 remainder sheet of four notes which was part of the Ford holdings. This sheet resides in our collection and should be part of the census list- ed in this book. The ten pages of Encased Postage Stamps cover the subject very thoroughly. The color plates are wonderfully done, like all illustrations in this catalog. The Error Note section will give you the basic information need- ed if your interest lies in that area. Appendix A contains the Signatures of United States Currency and it is always interest- ing to see how long these officials served. Of great importance is Appendix B, which contains a cross reference to the Friedberg numbers by page. Appendix C contains the Modern Uncut Sheets of U. S. Currency offered by the BEP. A Glossary and bibliography finishes out this wonderful refer- ence. We don’t think any country has ever produced a finer currency then the United States. We highly recommend this reference, priced at $24.95. See contact info above. v Paper Money • July/August 2011 • Whole No. 274 261 *July-August 2011 Paper Money 8/9/11 1:30 PM Page 261 Paper Money • July/August 2011 • Whole No. 274262 OF THE VARIOUSdominions of theBritish EmpireNew Zealand was the last to adopt a central bank and a national currency. Paper money in New Zealand, however, does go back to the early days of British colonization in the 1840s. Several centuries prior to that New Zealand was the last major group of islands to be inhabited by people, and this took place only about 1,000 years ago. The Maoris are East Polynesians who came to New Zealand from what are today the Cook Islands and French Polynesia. The Maori language is also very closely related to languages such as Tahitian and Hawaiian and somewhat more dis- tantly to West Polynesian languages such as Samoan or Tongan. Although united by a common language and culture, the Maori peo- ple were divided into numerous tribes, and intertribal warfare was a characteristic feature of Maori history until well into the 19th centu- ry. The first European to visit New Zealand was the Dutch explorer Abel Tasman, who briefly visited the country in 1642 and gave it the European name which is still used. It is not a particularly appropriate name, however, since the Dutch province of Zeeland is quite flat. The Maori name of Aotearoa (Long White Cloud) is indeed much more appropriate for this highly mountainous nation. In 1769-70 James Cook of the Royal Navy made a thorough survey of New Zealand and produced a map that was remarkable for its overall accuracy. On February 6, 1840, the British authorities resident in New Zealand signed a treaty with a large number of Maori chiefs under which suzerainty over New Zealand was ceded to the British Crown. This was the famous Waitangi Treaty which resulted in New Zealand becoming a British colony. Exactly what was ceded, however, is still a matter of controversy, as are the precise meanings of the words suzerainty and kawanatanga, the Maori equivalent that appears in the Maori language version of the treaty. New Zealand’s First Government Issue of Bank Notes By Carlson R. Chambliss *July-August 2011 Paper Money 8/9/11 1:30 PM Page 262 Paper Money • July/August 2011 • Whole No. 274 263 The first trading banks appeared in New Zealand very soon after the signing of the Waitangi Treaty. These were the New Zealand Banking Co., which proved to have only an ephemeral existence, and the Union Bank of Australia, which endured to become one of the six long-lived trading banks in New Zealand. The next few decades were to see sharply increased European settlement, a gold rush on both islands, serious land disputes and open warfare with some of the Maoris mostly in the central part of the North Island. Several more trading banks were also established. Some of these were short- lived, but six of these includ- ing the Union Bank men- tioned above were to contin- ue in business for many decades. There was even an ephemeral Maori bank, Te Peeke o Aotearoa (The Bank of New Zealand), that pro- duced a few one pound notes in the 1880s. This was organized by the so-called Kingite faction of the Maoris who did not recognize British colonial authority at that time. Up until the 1930s New Zealand was content to use as currency British and Australian coins and notes of its six well-established trading banks. Actually only two of these were New Zealand institutions, the other four being branches of Australian banks. Up until 1914 the notes of these banks were convertible into gold, but unlike Australia New Zealand went off the gold standard at the beginning of World War I. Ten shilling notes had not been pre- viously issued, but these were now required to replace the half sovereigns that were removed from circulation. In 1924 the so-called “uniform” notes were issued by the six trading banks in New Zealand. Although the designs were dif- ferent for each bank these notes, all had the same size (180 x 90 mm), and they had a uniform color scheme – orange for £10 notes, violet for £1, blue for £5, and brown for £10 notes. There were also notes for £20, £50, and £100, but not all of the six banks issued these higher denominations. Both New Zealand and Australia were severely affected by the Great Depression. Among other things this caused Australia to abandon the gold stan- dard in 1931. In 1933 both countries devalued their currencies relative to the British pound. In both cases one pound (Australian or New Zealand) was made equivalent to 16/- in British money. The U. S. equivalent of the New Zealand pound was then very nearly $3.20. Although Australia had had its own coins for several decades, New Zealand issued its first coinage in 1933. The Reserve Bank of New Zealand was organized in this year, but it was not until the following year that its first notes were issued. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 263 Paper Money • July/August 2011 • Whole No. 274264 The organization of the Reserve Bank and its issue of currency took con- siderable planning. The governor of the bank was Leslie Lefeaux, a Briton who had previously been an officer of the Bank of England and came to New Zealand in the 1930s to help with the establishment of the Reserve Bank. It was decided to retain the size of the “uniform” notes adopted in 1924 (180 x 90 mm), but only four denominations of these notes were issued. The choice of 10/-, £1, and £5 notes was obvious, but the lack of a £10 note was perhaps a bit peculiar. Apparently it was felt that this denomination was higher than was needed for retail transactions in depression-ridden New Zealand, but it was not large enough for interbank transfers. So a £50 note was issued instead. The basic colors of these notes were those of the “uniform” notes of the 1920s. The 10/- note was orange red, the £1 note violet, the £5 note dark blue, and the £50 note was rose red. With only four colors to choose from, it is most odd that the 10/- and £50 notes had rather similar shades. Some confusion did arise, although only a small percentage of the population ever saw or handled the £50 notes. This note had a face value equal to about $160 in U. S. money, and that was far too much for the average collector to put aside. All four notes of this series have basically the same face and back designs. A portrait of Tawhaio Te Wherowhero (1825-94) is featured on the right side, while the left side depicts a vignette of a kiwi bird, the national symbol of New Zealand. Tawhaio Te Wherowhero was the individual who organized the short- lived Maori bank in the 1880s. The New Zealand coat of arms appears at the center of these notes, and there is also a colored guilloche that differs in shade for Although quite similar in appear- ance, note the differences in the borders of the 10/- and £1 notes. Wood carvings appear at either side and kowhaiwhai (rafter painting) designs are featureed at the tops and bottoms of these notes. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 264 Paper Money • July/August 2011 • Whole No. 274 265 each denomination. The notes are all dated August 1, 1934, and are domiciled to Wellington, the national capital. The signature is that of L. Lefeaux, the gover- nor of the Reserve Bank. The borders of each denomination differ somewhat, but all feature Maori wood carvings together with kowhaiwhai (panel painting) or tukutuku (reed work) designs. The back sides of these notes all depict Mitre Peak and Milford Sound, the latter a deep fjord on the South Island. Although these notes are basically monocolored, the backs have subtle shading in light blue, light green, orange yellow, and light green on the 10/-, £1, £5, and £50 notes, respectively. The serial numbers appear twice on the face of each note, and their colors are black, red, green, and dark blue on the respective four denominations. These notes were printed by the venerable British firm of Thomas de la Rue, Limited. All notes feature a watermark RESERVE BANK OF NEW ZEALAND in block letters. No silk fibers or metallic threads were used on these notes. The three lower denominations were actually issued on August 1, 1934, the date inscribed on these notes, although the issue of the £50 notes was delayed until December 3rd of that year. The notes of the six trading banks retained their legal tender status only until January 10, 1935, although they could still be redeemed at the Reserve Bank as late as 1976. Although some £345,000 in face value of the trading bank notes remain unredeemed, most of these have been lost or destroyed. Only a small fraction of these are presently in collections. When New Zealand established its Reserve Bank, it followed quite a different policy from Canada, where Bank of Canada notes were first issued in 1935 but where the chartered banks retained the right to issue their own notes up to 1945. In The £5 and very rare £50 notes used border patterns that differed from the other values. The £5 note utilizes tukutuku (reed work) rather than kowhaiwhai (panel painting) at its top and bottom. The fact that the 10/- and £50 notes had rather similar col- ors led to occasional confusion between these two values. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 265 Paper Money • July/August 2011 • Whole No. 274266 Canada it was not until 1950 before the chartered banks were required to turn in their notes for redemption. In New Zealand the entire changeover process took only a few months. Almost all New Zealand notes have been issued in serial number blocks of one million, and that was the case with the issue of 1934. The totals issued for these notes were as follows: 10/- 11,395,000 £1 31,560,000 £5 4,825,000 £50 52,000 Not unsurprisingly the total number of blocks are 12, 32, 5, and 1, respectively, for these notes. For the three lower denominations the notes exist either without or with an initial numeral before the serial letter. In the first case for the 10/- notes the letters Z and Y were used (in that order), for the £1 notes it was the letters A, B, and D, and for the £5 notes it was the letter K. In combina- tion with numerals 1Z through 9Z plus 1Y were used on the 10/- notes, and 1K through 4K on the £5 notes. For the £1 notes there are blocks of 1A through 9A, 1B through 9B plus 10B through 12B, 3C through 9C, and 1D. The £50 notes exist only with serials having an initial letter T. Although very few collectors attempt to obtain all of these serial number blocks, some do try to obtain the three lower denominations both with and without initial numerals. The Reserve Bank notes of 1934 were replaced by a series of notes that were first issued on February 6, 1940, the 100th anniversary of the Treaty of Waitangi. This series included a portrait of James Cook, and also included a £10 note printed in green. This time the sizes of the notes were different, and the 10/- note was now brown in color. The 1934 types, however, continued to be The backs of these notes all depict Mitre Peak and Milford Sound, which are located in the southwest part of the South Island. It is also the rainiest region in New Zealand, as well as being one of the rainiest places in the world. The 1934 issues of the Reserve Bank carry an imprint of Thomas de la Rue directly below this vignette. The notes printed in Australia in 1942 for use in Fiji lack this imprint. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 266 Paper Money • July/August 2011 • Whole No. 274 267 issued as late as March, 1941 for the 10/- and £5 notes and up to January, 1942 for the £1 notes. The £50 notes, however, were not issued after May, 1940. The 1934 notes were never systematically removed from circulation, but by the 1950s they were not normally seen in trade. The New Zealand Reserve Bank notes of 1934 were first issued when this nation was in the grips of the Great Depression, and they ceased being issued when it was engaged in World War II. It is hardly surprising that not many of these notes were saved by collectors. The three lower denominations are all very rare in Uncirculated condition, and the £50 note may not even exist in this grade at all. In circulated grades the £1 note is by far the most abundant. In a grade of Fine the 10/- is about as difficult to acquire as a £5 note, but in XF or AU the 10/- note is probably more difficult to acquire than is the £5 note. The £50 note is very rare in all grades. For a denomination that was largely used only for interbank transfers, it is surprising that the majority of these notes are typically in low grades of VG or fine. Although these notes ceased to be issued at the beginning of 1942, they retained their legal tender status along with the notes of the 1940 types. Both of these issues are still redeemable by the Reserve Bank, although they are no longer legal ten- der. According to Alistair Robb the numbers of the 1934 notes unredeemed by 1998 were 23,000 for the 10/- notes, 53,000 for the £1, 12,000 for the £5, and 400 for the £50 notes. The numbers actually believed to be in collections or accumulations, however, are much lower than this, and Mr. Robb estimates these at something like 900 for the 10/-, 3,000 for the £1, 600 for the £5, and only about 80 for the £50 notes. A very small number of specimen sets of the 1934 notes are also in existence. During 1942 a special emergency use was made of this issue of notes. Although Fiji was never directly threatened by the Japanese, it did serve as a stag- ing area for Allied troops. The large influx of British Commonwealth and American military personnel into these islands resulted in a hugely increased demand for currency. By this time the plates for the 1934 issue of New Zealand notes were at the Commonwealth Bank of Australia. Consequently large num- bers of 10/-, £1, and £5 notes were printed there and overprinted Government of Fiji on both sides. The 10/- notes were never issued and are excessively rare today. About 31,000 of the £5 notes were issued, but these are also very rare. About 500,000 of the £1 notes were issued, and this note is still collectible. In all cases the serial number blocks of these notes differ from those used for the notes issued in New Zealand. The overprinted Fiji notes stated that they were legal tender in Fiji only, and they have never been treated as issues of the Reserve Bank of New Zealand. Reference: Robb, Alistair. The Bank Notes of New Zealand. Wellington, 2004. v *July-August 2011 Paper Money 8/9/11 1:30 PM Page 267 Paper Money • July/August 2011 • Whole No. 274268 The $1 Series 1928 United States Note has long been a very popularseries with collectors. This one-time issue of just 1,872,012 notes is amust for the type note collector as well as anyone who appreciates thebeauty of it’s striking red seal and serial numbers. While only a small number of notes were printed, a good number of these, many in Uncirculated condition, were saved and are in collectors’ hands today. The highly desirable and valuable star notes of this series are also offered occasionally in major auctions. Although these notes are from the series of 1928 they were actually print- ed in 1933 with Woods and Woodin’s signatures as opposed to the $1 1928 series Silver Certificates that were issued in July 1929 with Tate and Mellon signatures. The first 5,000 $1 red seal United States Notes were issued in 1933. The first 120 of these notes were in 10 uncut sheets of 12. The first sheet was cut with the A00000001A note going to the Smithsonian. Over the years some of the other sheets have been cut as well making notes with 2 digit serial numbers occasionally available to collectors albeit at significantly higher prices than other serial num- bers. Serials numbers under 5000, while not as plentiful as higher serial num- bers, can usually be found often enough to meet collector’s demands. These under 5000 serial numbered notes show up in auctions and some sealer’s price lists and always generate interest. To many collectors these $1 1928 Red Seals are most attractive and desirable with low serial numbers. These low numbers from the first 10,000 print- ed, are particularly striking and attractive because of the four or more leading zeros in the serial number. There is, however, a vast difference in rarity in serial number ranges within these first 10,000 notes. Virtually the only low serial numbers available to collectors are those under A00002000A or in the A00004XXXA range. Only occa- sionally are A00002XXXA serial numbered notes available and virtually never are any notes seen from the A00003XXXA range. Notes from the second 5,000 print- ed, having serials from A00005001A through A00009999A are virtually never seen as well. Scarce serial number range A00002XXXA Serial numbers in the A00002XXXA range are scarce and are only occa- sionally available. Over the past 30 years I have seen several Uncirculated notes in this range as well as a few circulated examples. This is in sharp contrast to the more frequently observed A00000XXXA, A00001XXXA and A00004XXXA serial Serial Number Rarities In the Red Seal $1 Series 1928 United States Note Issue By R. Logan Talks *July-August 2011 Paper Money 8/9/11 1:30 PM Page 268 Paper Money • July/August 2011 • Whole No. 274 269 United States Paper Money special selections for discriminating collectors 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 Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: www.executivecurrency.com (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail: Bart@executivecurrency.com BUYING AND SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Certificates, Treasury Notes, Federal Reserve Notes, Fractional, Continental, Colonial, Obsoletes, Depression Scrip, Checks, Stocks, etc. Foreign Notes from over 250 Countries Paper Money Books and Supplies Send us your Want List . . . or . . . Ship your material for a fair offer LOWELL C. HORWEDEL P.O. BOX 2395 WEST LAFAYETTE, IN 47996 SPMC #2907 (765) 583-2748 ANA LM #1503 Fax: (765) 583-4584 e-mail: lhorwedel@comcast.net website: horwedelscurrency.com WANTED TO BUY Obsolete notes relating to coal and other types of mining. Top prices paid for anything I can use. I’m also seeking notes and information for a forthcoming catalog of coal mine obsolete notes and scrip. David E. Schenkman, PO Box 366, Bryantown, MD 20617 phone: 301-274-3441 email:dave@turtlehillbanjo.com Advertise in Paper Money Sell duplicates or unwanted notes in Paper Money. Advertise for items you desire here. FACT: The people who buy and sell notes read Paper Money. We’re in the RESULTS business, not just the impressions business. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 269 Paper Money • July/August 2011 • Whole No. 274270 numbered notes. While notes in this A00002XXXA range are not nearly as rare as the A00003XXXA and A00005XXXA to A00009XXXA notes they are scarce. Rare serial number range A00003XXXA Serial numbers in the A00003XXXA range are inexplicably rare. In the many years I have compiled data on the $1 Series 1928 USN series, I have record- ed only two serial numbers in the A00003XXXA range. It is also interesting to note that within the first 5000 notes fancy serial numbers A00001111A, A00002222A and A00004444A are known to exist but A00003333A has not been observed. This only helps to confirm that there is something very different about the A00003XXXA notes. It seems as if nearly all of the notes in this serial range have disappeared into a black hole never to be seen again. I don’t know why notes in this serial number range are so rare – but they are. Perhaps the original issue was distributed in some manner to the public from both the top and bottom of the stack leaving most of the A00002XXXA and all of the A00003XXXA serials in the middle to be placed into circulation after the initial demand for these notes was satisfied. We may never know how these early notes were dispersed. The two notes listed below are the only examples I know of from this serial range: A00003072A XF A00003396A VG Rare serial number range A00005000A to A00009999A Low serial numbers are very collectible on any type of currency, but the distinctive $1 Series 1928 Legal Tender red seal notes starting with four zeros are especially appealing. While notes with serial numbers under 5,000 can readily be found the second 5,000 notes with serials A00005001A through A00009999A are virtually non existent. These notes seem to have fallen off a cliff. Of the few notes known in this range all are in circulated grades. The twelve notes listed here are *July-August 2011 Paper Money 8/9/11 1:30 PM Page 270 Paper Money • July/August 2011 • Whole No. 274 271 the only examples I know of from the second 5,000 notes issued: A00005798A VG A00007796A VG A00006007A XF A00007979A VG/F A00006485A VG A00008273A VG A00006586A F A00008300A VG A00006765A VF A00009723A VG/F A00007039A F A00009913A XF *July-August 2011 Paper Money 8/9/11 1:30 PM Page 271 Paper Money • July/August 2011 • Whole No. 274272 THE TENNESSEE SCRIP AND OBSOLETE BANKNOTEreference that Tom Carson and Dennis Schafluetzel started in 2003, has been completed on the website pages for everything that is known (published or discovered). SPMC awarded Carson and Schafluetzel the Wait award in 2009 to assist in publishing this book. They used the Wait award to purchase necessary software to work on the project. Editing and correction of the website is underway. “We will begin converting it to book format next,” Schafluetzel noted. Paul Garland listed some specific types of scrip. “However, a Tennessee scrip reference has not been pub- lished. Charlie Sedman allowed us to use his scrip listing and photocopy images for documenting Tennessee scrip. Bill Sharp supplied images and notes on his whole Tennessee Obsolete collection and R. M. Smythe and Spink provided images from the Schingoethe sales. “Every week dealers and collectors e-mail or send me additional information and images,” he continued. The first webpage has a “what’s new” section where every contribution is listed. Our website has color images of 776 bank notes and 919 scrip notes. We have listed an additional 949 banknotes and 202 scrip notes that existed at one time. “We need your help to provide images of these notes as well as add others that we do not have listed,” the author con- tinued. “Please access the website and help us make this refer- ence a composite of what is currently known. Our experience indicates if you have a Tennessee scrip collection 25% to 50% of them are not listed because so many of them are unique. Many early banknotes are also unique. If you do not share them they will remain unknown,” he added. Schafluetzel explained use of the website. “To access the website at http://www.schafluetzel.org click on Tennessee Obsolete Merchant Scrip & Banknotes link and it will ask for your user name: use SPMC, and the password, SPMC6000, SPMC must be capitalized. The title page will appear. Select one of 100+ TN cities, counties or railroads to view known merchant scrip and bank notes from that location. If you do not find what you are looking for, view the Merchant Scrip for that city. “We still need your help to review and contribute histori- cal information, color images, new scrip listings, upgrades and corrections. The authors plan to publish a “field guide” book “that is easy to carry on the bourse floor for reference with the images and listings,” according to Schafluetzel. The book will include a CD with large color images and access to the website for an initial period. The website will continue as a complete refer- ence and will include updates and additions for those that pur- chase the book. Dennis Schafluetzel may be contacted at 1900 Red Fox Lane, Hixson, TN 37343 or dennis@schafluetzel.org Tom Carson may be contacted at 5712 N. Morgan Lane, Chattanooga, TN 37415 or tcarson@ewkm.net v Comparative Rarity of Serial Number Ranges and Star Notes Over the years I have recorded serial number data on many scarce or rare small size notes, including star notes from the $1 Series 1928 USN series. To date I have recorded 51 star notes with serial numbers between *00000002A and *00007982A. These $1 red seal star notes may be found in some prominent collections and are seen occasionally in major auctions. While very highly prized, and high priced, these star notes are not as rare as many collectors might assume. By comparison, notes from the A00003XXXA, and A00005XXX to A00009XXXA serial number ranges are much rarer than the star notes! Notes with serial numbers in these coveted ranges are real prizes and add another dimension to any collection. I would welcome any further informa- tion on notes with serial numbers in these special ranges that other collectors can provide. Please correspond to me at HHICL@aol.com. v Tennessee authors ‘complete’ website-based obsolete note project *July-August 2011 Paper Money 8/9/11 1:30 PM Page 272 Paper Money • July/August 2011 • Whole No. 274 273 SPMC NEW MEMBERS - 04/05/2011 13504 George Parola, 1449 Ridge Road, Elizabethton, PA 17022 (C), Website 13505 Ron Rego, 1560 Barber St, Sebastian, FL 32958 (C, US), Allen Mincho 13506 Joe Peruski (D), Mark Anderson 13507 Michael Rybacki (C), Mark Anderson 13508 Brian Miller (C), Tom Denly 13509 Russell Wiginton, PO Box 111, Bailey, MS 39320 (C, Errors, Deuces, Stars), Website 13510 Ty Parker, PO Box 202, Mills, WY 82644 (C, Wyoming Nationals, Fractionals, US Large, Stars), Website 13511 Kelly Smith (C), Website REINSTATEMENTS None LIFE MEMBERSHIP None SPMC NEW MEMBERS - 05/05/2011 13512 Donald Tremblay (C), Website 13513 Barry R. Forst, 10429 E. Knowles Ave, Mesa, AZ 85209 (C, 1899 $1 Silvers, 1914 FRN's, US Small), Lyn Knight 13514 Jeffrey Gaughan, 31 Home Depot Drive #242, Plymouth, MA 02360 (C, Nationals, US Large), Website 13515 H. Brasco (C), Fred Reed 13516 Arnold Flor, 137 Avoca Ave, Massapequa Park, NY 11762 (C), Website 13517 Kirk Aberg (C), Jason Bradford 13518 Dale Ayers (C), Jason Bradford 13519 Burnell Brown (C), Jason Bradford 13520 Jonathan Cheung (C), Jason Bradford 13521 Collectors Paradise Gallery (C), Jason Bradford 13522 James Crisp (C), Jason Bradford 13523 Kenneth Deffenbacher (C), Jason Bradford 13524 James Dellinger (C), Jason Bradford 13525 Elchanan Finestone (C), Jason Bradford 13526 Gerald Grammer (C), Jason Bradford 13527 Larry Gross (C), Jason Bradford 13528 Rick Hall (C), Jason Bradford 13529 Eric Harshberger (C), Jason Bradford 13530 Joseph Hillesheim (C), Jason Bradford 13531 HSC International (C), Jason Bradford 13532 Adam Kase (C), Jason Bradford 13533 Terry Knight (C), Jason Bradford 13534 Jeff Marcley (C), Jason Bradford 13535 Gregory Muselli (C), Jason Bradford 13536 Joseph Vickery (C), Jason Bradford 13537 Robert Wall (C), Jason Bradford 13538 Robert Westfield (C), Jason Bradford 13539 William White (C), Jason Bradford 13540 Paul Wojcik (C), Jason Bradford 13541 Joseph T. Price, 2879 Hot Springs Rd, Minden, NV 89423-7625 (C Nationals, Hawaii Notes, and Errors), Website 13542 Simsion (C), Jason Bradford 13543 Allan Vrooman (C), Jason Bradford 13544 Lawrence Struble (C), Benny Bolin 13545 Ronald Foley, 115 Spring St, Faurhaven, MA 02719- 4113 (C), Benny Bolin 13546 Tan Chiang Ting (C), Benny Bolin 13547 Robert Wagar (C), Website 13548 Sneed Colard (C), Website 13549 John Hvasta, 7235 Neshoba Circle, Germantown, TN 38138 (C), Mike Crabb REINSTATEMENTS None LIFE MEMBERSHIP None v WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell dupli- cates, advertise wants, increase your col- lection, and have more hobby fun. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * • extra charges apply for longer ads • 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. 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 mid-May thru mid-September History of National Banking & Bank Notes Turn of the Century Iowa Postcards *July-August 2011 Paper Money 8/9/11 1:30 PM Page 273 Paper Money • July/August 2011 • Whole No. 274274 ILOVE CONFEDERATE NOTES THAT PEOPLE ACTUALLY HANDLEDin the war and who left stories on the notes. This article is about one suchnote with contemporary graffiti from a union soldier. The soldier wrote onthe note at the very end of the Civil War. Using the internet it is possible to gather much information on this person —more than you might at first imagine. In the Heritage Auctions, Inc. internet paper money auction of May 6, 2007, was the following description of a very common note as lot 22124: “T68 $10 1864. A nice penned inscription dated May 9, 1865, by a bugler in a regiment of New York Volunteers is found on the back of this $10. The note is crispy with soiling. Fine.” I gladly bought the note for $45 total on a bid of just $36. To me it is a great bargain. It is literally history in my hands. Shown above is this fascinating Type-68 Confederate $10 note: On its back across the bottom is handwritten in ink: Chas Hisgen Chief Bugler 43rd Regt N.Y.S.Vols 3th(sic) Brig 2nd Div 6th army Corps On the right side vertically is written in the same pen: Danville Va. 9th May. 1865. A Confederate Note that Tells a Good Story By Steve Feller *July-August 2011 Paper Money 8/9/11 1:30 PM Page 274 Paper Money • July/August 2011 • Whole No. 274 275 This is wonderful detail. As you will shortly see it is impressive what was learned about this note using the internet and a little sleuthing. From: http://www.itd.nps.gov/cwss/regiments.cfm, a U.S. government website on the Civil War, we learn about Charles Hisgen: Charles Hisgen Regiment Name 43 N.Y. Infantry Side Union Company A Soldier's Rank_In Pvt. Soldier's Rank_Out Chief Bugler Also we can use the online roster of his unit compiled by the New York State Adjutant General Office. This was part of a set of 43 volumes published between 1893 and 1905. Their official titles are Annual Report of the Adjutant- General of the State of New York for the Year ... : Registers of the [units numbers]. Here then is the entry for Charles Hisgen: HISGEN, CHARLES.—Age, 19 years. Enlisted, August 3, 1861, at Albany, to serve three years; mustered in as private, Co. A, August 25, 1861; appointed musician, no date; re-enlisted as a veteran, December 24, 1863; appointed chief musician, February 12, 1864; mustered out with non-commissioned staff, June 27, 1865, at Washington, D. C Thus the U.S. and N.Y. governmental civil war records match the infor- mation on the note. The census of 1880 (found for free at ancestry.com) provides some further interesting biographical information: Charles HISGEN Male Birth Year 1843 Birthplace PRUSSIA Age 37 Occupation Painter Marital Status Married Race White Father's Birthplace PRUSSIA Mother's Birthplace PRUSSIA Census Place Hopkinsville, Christian, Kentucky (Source:http://www.familysearch.org /Eng/Search/Census/individ- ual_record.asp?indi_code=1880US_13480962_0&lds=5®ion=0&re gionfriendly=1880+US+Census&frompage=99) From this we can deduce that Charles was about 17 to 19 when he entered the army and 21 to 23 when he penned his words on the note. However, further biographical information was found online in Google Books from a scanned copy of History of Kentucky, Volume 4 by William Elsey Connelley, Ellis Merton Coulter published in 1922: C. H. Hisgen was born at Leipzig, Germany, in 1844, and died at Hopkinsville in 1917. When he was seventeen years old he came to the United States, and upon landing, enlisted, as did so many of his countrymen at that time, in the Union army and fought during the war between the North and the South, serving as a bugler. After the close of the war he came as far west as Evansville, Indiana, and there he made practical use of the artistic talents he inherited from his father and became a painter and decorator, specializing in frescoing. A good business man, he succeeded, and invested some of his earnings in a steamboat enterprise. About 1864 he moved to Hopkinsville to decorate the new buildings for the State Asylum for the Insane, and continued to follow his trade as a painter and decorator, becoming the leading man in his line. First a democrat, he later became a republi- can. The Presbyterian Church held his membership, and he was a zealous member of Hopkinsville Lodge No. 37, A. F. & A. M. C. H. Hisgen married Emma Balsover, of English parentage, who survives him and lives at Hopkinsville. She was born at Evansville, Indiana. Their children were as follows: C. W., who is the eldest; Florence, who married Flavius Turner, an oil operator of Houston, Texas; *July-August 2011 Paper Money 8/9/11 1:30 PM Page 275 Paper Money • July/August 2011 • Whole No. 274276 Victor Hugo, who is a painter and paper hanger and proprietor of Saint Charles Court, the leading apartment house of Hopkinsville, resides in this city; Q. L., who is in partnership with C. W., lives at Hopkinsville; Alberta, who married R. S. Ambrose, a lumber dealer of Hopkinsville; and John, who is a photographer of Valparaiso, Indiana. Note the small inconsistency with Hisgen’s birth year. This report gives us 1844 which leads to his enlistment at age 16 or 17. Thus the various biograph- ical sources confuse his age of enlistment from 16-19 and consequently his age when the war ended at 20 to 23. The official online record of the 43rd Regiment Infantry “Albany And Yates' Rifles" is a detailed cross section of the Eastern aspect of the Civil War itself and is as follows: Organized at Albany, N.Y., August and September, 1861. Left State for Washington, D.C., September 21, 1861. Attached to Hancock's Brigade, W. F. Smith's Division, Army of the Potomac, to March, 1862. 1st Brigade, 2nd Division, 4th Army Corps, Army of the Potomac, to May, 1862. 1st Brigade, 2nd Division, 6th Army Corps, to February, 1863. Light Division, 6th Army Corps, to May, 1863. 3rd Brigade, 2nd Division, 6th Army Corps, Army of the Potomac, to July, 1864, Army of the Shenandoah to December, 1864, and Army of the Potomac to June, 1865. • SERVICE.--Duty in the Defenses of Washington, D. C., until March, 1862. Expedition to Vienna and Flint Hill February 22, 1862. Advance on Manassas, Va., March 10-15. Moved to Alexandria March 16, thence to Fortress Monroe, Va. Advance on Yorktown April 4-5. Siege of Yorktown April 5-May 4. Lee's Mills April 16. Reconnaissance toward Lee's Mills April 28. Battle of Williamsburg May 5. Duty at White House until May 18. Picket duty near Richmond until June. Seven days before Richmond June 25-July 1. Garnett's Farm June 27. Garnett's and Golding's Farms June 28, White Oak Swamp June 30. Malvern Hill July 1. At Harrison's Landing until August 16. Movement to Fortress Monroe, thence to Centreville August 16-28. In works at Centreville August 28-31, and cover Pope's retreat to Fairfax Court House September 1. Maryland Campaign September 6-22. Sugar Loaf Mountain September 10-11. Crampton's Gap, South Mountain, September 14. Battle of Antietam September 16-17. Duty at Hagerstown, Md., until October 30. Movement to Falmouth, Va., October 30-November 19. Battle of Fredericksburg, Va.. December 12-15. "Mud March" January 20-24, 1863. At Falmouth until April. Chancellorsville Campaign April 27- May 6. Operations about Franklin's Crossing April 29-May 2. Battle of Maryes Heights, Fredericksburg, May 3. Salem Heights May 3-4. Banks' Ford May 4. Operation at Franklin's Crossing June 5-13. Battle of Gettysburg, Pa., July 2-4. Pursuit of Lee July 5-24. Duty on line of the Rappahannock until October. Bristoe Campaign October 9-22. Advance to line of the Rappahannock November 7-8. Rappahannock Station November 7. Mine Run Campaign November 26-December 2. Duty near Brandy Station until May, 1864. Campaign from the Rapidan to the James May 3-June 15. Battles of the Wilderness May 5-7; Spottsylvania May 8-12; Spottsylvania Court House May 12-21. Assault on the Salient or "Bloody Angle" May 12. North Anna River May 23-26. On line of the Pamunkey May 26-28. Totopotomoy May 28-31. Cold Harbor Juno 1-12. Before Petersburg June 17-18. Siege of Petersburg June 17 to July 6. Jerusalem Plank Road, Weldon Railroad, June 22-23. Moved to Washington, D.C., *July-August 2011 Paper Money 8/9/11 1:30 PM Page 276 Paper Money • July/August 2011 • Whole No. 274 277 June 6-9. Repulse of Early's attack on Fort Stevens and Northern Defenses of Washington July 11-12. Pursuit of Early July 14-22. Sheridan's Shenandoah Valley Campaign August 7-November 28. Gilbert's Ford, Opequan Creek, September 13. Battle of Winchester September 19. Fisher's Hill September 22. Battle of Cedar Creek October 19. Duty in the Shenandoah Valley until December. Moved to Petersburg December 13-16. Siege of Petersburg December 16, 1864, to April 2, 1865. Fort Fisher, Petersburg, March 25, 1865. Appomattox Campaign March 28-April 9. Assault on and fall of Petersburg April 2. Pursuit of Lee April 3-9. Sailor's Creek April 6. Appomattox Court House April 9. Surrender of Lee and his army. Moved to Danville, Va., April 23-27, and duty there until May 18. Moved to Richmond, thence to Washington, D.C., May 18-June 2. Corps Review June 8. Mustered out June 27, 1865. Regiment lost during service 13 Officers and 110 Enlisted men killed and mortally wounded and 1 Officer and 120 Enlisted men by disease, Total 244. (Source - A Compendium of the War of the Rebellion by Frederick H. Dyer) Note that Hisgen's regiment was, in fact, in Danville, VA on May 9, 1865. Also from the internet is this marvelous monument at Gettysburg that was dedicated to the 43rd NY Infantry on September 17, 1889: Taken from Final Report on the Battlefield of Gettysburg (“New York at Gettysburg”) by the New York Monuments Commission for the Battlefields of Gettysburg and Chattanooga. Albany, NY: J.B. Lyon Company, 1902. INSCRIPTIONS Front - 43D NEW YORK INFANTRY, 3D BRIG. 2D DIV. 6TH CORPS. ARRIVED ON FIELD 4 P. M., JULY 2, 1863. HELD THIS POSITION FROM THE MORNING OF JULY 3, UNTIL CLOSE OF BATTLE. Reverse - THE STATE OF NEW YORK ERECTED THIS MON- UMENT IN HONOR OF THE FORTY-THIRD REG'T NEW YORK INFANTRY. ORGANIZED AT ALBANY, N. Y. MUS- *July-August 2011 Paper Money 8/9/11 1:30 PM Page 277 Paper Money • July/August 2011 • Whole No. 274278 TERED INTO THE U. S. SERVICE SEPT. 22, 1861. SERVED WITH THE 6TH CORPS, ARMY OF THE POTOMAC, THROUGHOUT THE WAR. MUSTERED OUT JUNE 27, 1865. BORE A PART IN THE ENGAGEMENTS OF YORKTOWN, WLLLIAMSBURG, THE SEVEN DAYS' BATTLE, CRAMP- TON'S PASS, ANTIETAM, FREDERICKSBURG, MARYE'S HEIGHTS, SALEM HEIGHTS, GETTYSBURG, RAPPAHAN- NOCK STATION, MINE RUN, WILDERNESS, SPOTSYLVA- NIA, NORTH ANNA, TOTOPOTOMOY, COLD HARBOR, PETERSBURG, 1864, FORT STEVENS, WINCHESTER, FISH- ER'S HILL, CEDAR CREEK, PETERSBURG, 1865, SAILOR'S CREEK, APPOMAT-TOX COURT HOUSE. Regarding Chief Bugler Hisgen’s duties, I found a site that described them at http://www.tapsbugler.com/CWbuglers/CivilWarbuglers2.html. This source yielded this: Regulations called for the assignment of field musicians in each compa- ny and a Principal Musician (Chief Bugler) to be assigned at the regi- mental level. The Chief Buglers were responsible for the training, appearance, and performance of buglers under them. They sounded calls from headquarters which in turn were echoed by the company buglers. The Chief Bugler occupied the same position and status as Drum Major or Principal Musician of a band. Chief Buglers found life a little easier than that of regular soldiers. They were exempt from guard duty and other ordinary duties, but were used as orderlies.” Oliver Willcox Norton of the 83rd Pennsylvania Volunteer Infantry wrote home about his duties: “I thought the subject of bugler was exhausted, but I see you want to know more about it. I am chief bugler of the brigade. My duties are, in camp to sound the calls for roll calls, drills, inspections, guard mount- ing, etc., at regular hours each day; on the march, to attend on the gen- eral in command and sound the calls to march or halt and rest, strike tents and form in line, etc. In short to act as mouthpiece for the general. So much for duties. As to privileges-one, I've nothing to do but bugle; two, my luggage is carried in the headquarters wagons; three, I get bet- ter rations than in the regiment, and more of them; four, I get my wood hauled, and in the regiment the men have to carry all they burn a long distance. Well, there are four, perhaps that's enough, but I might add others." What excellent detail we have learned here. . Apparently Charles was at some of the key moments of the war including Antietam and Gettysburg and the surrender of General Lee! There is even a hint of intrigue as he went with his unit to Danvile, VA where the present note was signed—the site of the last capital of the Confederacy and the launch place of the Confederate Treasure train. On line I found this at http://www.losttreasure.com/content/archives/state-treasure-georgia and it is by Anthony M. Belli From page 39 of the June, 2010 issue of Lost Treasure After Richmond fell to Union forces, the bulk of the Confederate treasury was transported to Georgia, where much of it vanished without a trace. On April 6, 1865, Jefferson Davis fled Danville, Virginia, with a Confederate treasure train of five wagons. The value of the treasure was $777,022. Of that amount, $450,000 was in coin and specie checks from Richmond banks. The remaining $327,022 consisted of gold and silver *July-August 2011 Paper Money 8/9/11 1:30 PM Page 278 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, hugh shull Paper Money • July/August 2011 • Whole No. 274 279 MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00 Colonial 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00 Small Currency 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00 Large Currency 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00 Auction 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00 Foreign Currency 8 x 5 $32.00 $58.00 $265.00 $465.00 Checks 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 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 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 See Paper Money for Collectors www.denlys.com Harlan J. Berk, Ltd. “The Art & Science of Numismatics” 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 www.harlanjberk.com e-mail: info@harlanjberk.com A Ful l -Serv ice Numismat ic F irm Your Headquarters for Al l Your Col lect ing Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA HARRY IS BUYING NATIONALS — LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES 7379 Pearl Rd. #1 Cleveland, Ohio 44130-4808 1-440-234-3330 *July-August 2011 Paper Money 8/9/11 1:30 PM Page 279 Paper Money • July/August 2011 • Whole No. 274280 coins, bullion, donated jewelry, and the floor sweepings from the Dahlonega mint.Another 39 kegs of Mexican silver dollars weighing 9,000 pounds was also part of the treasury, but evidence indicates the kegs never left Danville and were buried in a cemetery. Of the gold loaded onto the treasure train, Davis reportedly arranged for $100,000 of it to be separated and taken to Savannah, where it was to be loaded onto a ship destined for France as re-payment on a loan. But on May 24, 1865, the train stopped and set up camp at the Chennault Crossroads. The land where they camped, and the neigh- boring Chennault Plantation, was owned by Dionysius Chennault, an elderly planter and Methodist minister. That night a group of gunmen robbed the treasure train within 100 yards of the Chennault home. The loss was reported to be $251,029. Historic documents indicate bank officials eventually recovered $111,000 of the treasure. The federal government recovered another $95,263, which remained in litigation until June 22, 1893. The U.S. Court of Claims decreed that the claimants on behalf of the defunct Richmond banks would receive $16, 987. The remaining $78,276 remained the property of the government. The balance of $44,766 in gold has never been recovered. The day Chief Bugler Charles Hisgen signed the note was interesting in that the final Confederate army East of the Mississippi River surrendered and President Johnson issued an important proclamation. Using the following websites http://billslater.com/nbf_bye.htm and http://www.presidency.ucsb.edu/ ws/index.php?pid=72146 I found: Headquarters, Forrest's Cavalry Corps Gainsville, Alabama May 9, 1865 SOLDIERS: By an agreement made between Liet.-Gen. Taylor, commanding the Department of Alabama. Mississippi, and East Louisiana, and Major-Gen. Canby, commanding United States forces, the troops of this department have been surrendered. I do not think it proper or necessary at this time to refer to causes which have reduced us to this extremity; nor is it now a matter of mate- rial consequence to us how such results were brought about. That we are BEATEN is a self-evident fact, and any further resistence on our part would justly be regarded as the very height of folly and rashness. The armies of Generals LEE and JOHNSON having surren- dered. you are the last of all the troops of the Confederate States Army east of the Mississippi River to lay down your arms. The Cause for which you have so long and so manfully struggled, and for which you have braved dangers, endured privations, and suffer- ings, and made so many sacrifices, is today hopeless. The government which we sought to establish and perpetuate, is at an end. Reason dic- tates and humanity demands that no more blood be shed. Fully realiz- ing and feeling that such is the case, it is your duty amd mine to lay down our arms -- submit to the “powers that be” -- and to aid in restor- ing peace and establishing law and order throughout the land. The terms upon which you were surrendered are favorable, and should be satisfactory and acceptable to all. They manifest a spirit of magnanimity and liberality, on the part of the Federal authorities, which should be met, on our part, by a faithful compliance with all the stipulations and conditions therein expressed. As your Commander, I *July-August 2011 Paper Money 8/9/11 1:30 PM Page 280 Paper Money • July/August 2011 • Whole No. 274 281 *July-August 2011 Paper Money 8/9/11 1:30 PM Page 281 Paper Money • July/August 2011 • Whole No. 274282 sincerely hope that every officer and soldier of my command will cheer- fully obey the orders given, and carry out in good faith all the terms of the cartel. Those who neglect the terms and refuse to be paroled, may assuredly expect, when arrested, to be sent North and imprisoned. Let those who are absent from their commands, from whatever cause, report at once to this place, or to Jackson, Miss.; or, if too remote from either, to the nearest United States post or garrison, for parole. Civil war, such as you have just passed through naturally engen- ders feelings of animosity, hatred, and revenge. It is our duty to divest ourselves of all such feelings; and as far as it is in our power to do so, to cultivate friendly feelings towards those with whom we have so long contended, and heretofore so widely, but honestly, differed. Neighborhood feuds, personal animosities, and private differences should be blotted out; and, when you return home, a manly, straightfor- ward course of conduct will secure the respect of your enemies. Whatever your responsibilities may be to Government, to society, or to individuals meet them like men. The attempt made to establish a separate and independent Confederation has failed; but the consciousness of having done your duty faithfully, and to the end, will, in some measure, repay for the hardships you have undergone. In bidding you farewell, rest assured that you carry with you my best wishes for your future welfare and happiness. Without, in any way, referring to the merits of the Cause in which we have been engaged, your courage and determination, as exhibited on many hard-fought fields, has elicited the respect and admiration of friend and foe. And I now cheerfully and gratefully acknowledge my indebtedness to the offi- cers and men of my command whose zeal, fidelity and unflinching brav- ery have been the great source of my past success in arms. I have never, on the field of battle, sent you where I was unwilling to go myself; nor would I now advise you to a course which I felt myself unwilling to pursue. You have been good soldiers, you can be good citi- zens. Obey the laws, preserve your honor, and the Government to which you have surrendered can afford to be, and will be, magnanimous. N.B. Forrest, Lieut.-General Headquarters, Forrest's Cavalry Corps Gainesville, Alabama and Executive Order - To Reestablish the Authority of the United States and Execute the Laws Within the Geographical Limits Known as the State of Virginia May 9, 1865 Ordered , first. That all acts and proceedings of the political, mili- tary, and civil organizations which have been in a state of insurrection and rebellion within the State of Virginia against the authority and laws of the United States, and of which Jefferson Davis, John Letcher, and William Smith were late the respective chiefs, are declared null and void. All persons who shall exercise, claim, pretend, or attempt to exer- cise any political, military, or civil power, authority, jurisdiction, or right by, through, or under Jefferson Davis, late of the city of Richmond, and his confederates, or under John Letcher or William Smith and their confederates, or under any pretended political, military, or civil commission or authority issued by them or either of them since the 17th day of April, 1861, shall be deemed and taken as in rebellion *July-August 2011 Paper Money 8/9/11 1:30 PM Page 282 Paper Money • July/August 2011 • Whole No. 274 283 against the United States, and shall be dealt with accordingly. Second. That the Secretary of State proceed to put in force all laws of the United States the administration whereof belongs to the Department of State applicable to the geographical limits aforesaid. Third. That the Secretary of the Treasury proceed without delay to nominate for appointment assessors of taxes and collectors of customs and internal revenue and such other officers of the Treasury Department as are authorized by law, and shall put in execution the revenue laws of the United States within the geographical limits afore- said. In making appointments the preference shall be given to quali- fied loyal persons residing within the districts where their respective duties are to be performed; but if suitable persons shall not be found residents of the districts, then persons residing in other States or dis- tricts shall be appointed. Fourth. That the Postmaster-General shall proceed to establish post-offices and post routes and put into execution the postal laws of the United States within the said State, giving to loyal residents the preference of appointment; but if suitable persons are not found, then to appoint agents, etc., from other States. Fifth. That the district judge of said district proceed to hold courts within said State in accordance with the provisions of the act of Congress. The Attorney-General will instruct the proper officers to libel and bring to judgment, confiscation, and sale property subject to confiscation, and enforce the administration of justice within said State in all matters, civil and criminal, within the cognizance and juris- diction of the Federal courts. Sixth. That the Secretary of War assign such assistant provost- marshal-general and such provost-marshals in each district of said State as he may deem necessary. Seventh. The Secretary of the Navy will take possession of all public property belonging to the Navy Department within said geo- graphical limits and put in operation all acts of Congress in relation to naval affairs having application to the said State. Eighth. The Secretary of the Interior will also put in force the laws relating to the Department of the Interior. Ninth. That to carry into effect the guaranty by the Federal Constitution of a republican form of State government and afford the advantage and security of domestic laws, as well as to complete the reestablishment of the authority and laws of the United States and the full and complete restoration of peace within the limits aforesaid, Francis H. Peirpoint, governor of the State of Virginia, will be aided by the Federal Government so far as may be necessary in the lawful measures which he may take for the extension and administration of the State government throughout the geographical limits of said State. In testimony whereof I have hereunto set my hand and caused the seal of the United States to be affixed. ANDREW JOHNSON. By the President: W. HUNTER, Acting Secretary of State. In summary the internet is a powerful took for doing numismatic research. A souvenir inscription done 145 years ago on the most common of all Confederate notes has led to all of this information reported here! v *July-August 2011 Paper Money 8/9/11 1:30 PM Page 283 Paper Money • July/August 2011 • Whole No. 274284 The Almost Conclusion of the Quest AFTER A GRUESOME JOURNEY TO GET THE CONFEDERATENote Bureau back in operation in Anderson, SC it all ended with theYankees raiding the town on May 2nd. There, the Confederates brokesome of the litho stones and threw them down a well. The Yankees were not concerned with the paper money, they ransacked the note bureau look- ing for the Confederate Gold. Little did they know that the gold was a short dis- tance away by railroad. Fred Reed found the following article that, at first, sounds like 50 years had caused questionable memories. Confederate veterans too, of course, were interested in the CSA treasury notes. In fall 1913 their national publication, Confederate Veteran, published W.P. Spurlin’s account of the disposition of the final issue of Confederate bills. According to Spurlin at the war’s end one of the engravers, his brother a printer, and a Captain Sprague loaded a wagon with the last printed, but not-yet-signed notes, lithographic stones for the notes and “part of one of the three presses” and skedaddled to avoid the federals capturing them. One of the brothers, J.H. Crosland had designed and engraved the artillery bat- tery vignette on the CSA Series 1864 $10 bill (see enlarged image at right), according to Spurlin. It was intended to represent, his relation, Captain Bragg’s battery. The trio moved the cache to Camden, AL spending unsigned notes along the way to whomever would accept them. In Camden a falling out ensued over a horse resulting in a homicide. At a later date the Crosland residence burned down, but the lithographic stones were saved. A Dr. J.H. Crosland, a son and nephew of the original brothers, then living in Montgomery, had inherited the Quest for the Stones, Part 4 By Tom Carson, George Tremmel & Crutch Williams The Last Mission of the Confederate Treasury Note Bureau *July-August 2011 Paper Money 8/9/11 1:30 PM Page 284 Paper Money • July/August 2011 • Whole No. 274 285 lithographic stones. He later displayed them in 1892 at the Virginia building of the World’s Columbian Exposition in Chicago. His recollections, two decades later, were that they were for the $100, $50, and $5 denominations. No indication is given for the disposition of the stones. This opened several other questions. Did these events actually happen? Who were the characters? Did Crosland actually engrave the vignette? And most importantly, where are the three stones? Attempts the questions involved a cast of people working around the globe. Did it actually happen? There are no official records for this time period. The only way to prove it beyond a shadow of doubt would be to find actual records. Another other way to prove it, circumstantially at least, would be to vali- date the people. James H. Crossland (also spelled Crosland, Crosslin, Crosslan) According to the article, J. H. Crossland was an engraver who engraved the vignette of his relation Captain Bragg’s Battery. Dr. Ross Brooks PhD from Australia was the first to offer information on Crossland. Amongst the informa- tion Tom sent, Brooks wrote, the identity of the engraver, artist and purloiner of Confederate currency J. H. Crosland fascinated me. Searching the Census records finds that James H. Crosslin or Crosslan was born in North Carolina in 1834. In June 1862, Blanton Duncan listed him as his engraver and in December 1863 he is mentioned in a letter from Jamison to Memminger on the Marquis and Stresse counterfeiting ring. Stresse had confessed to Crossland that he was involved in counterfeiting and tried to entice Crossland to join them. • In the 1850 Census for Wilcox County, Camden, James H. Crosslin is listed as 16 years of age. Living at home. Dad John V. Crosslin. Born North Carolina Willam A. Crosslin 17 years of age. Born NC. • In the 1870 Census for Wilcox County, Camden, William A Crosslan, a miller, had a three-year-old son James H. (Was the three year old son named in memory of his murdered uncle?) [The son was owner of the stones at the time of World Columbian Exposition] We were unable to find a grave for Crossland or the Sheriffs records for that time period. We assumed Crossland was the victim of the homicide, but the article is ambiguous. William A. Crossland More luck was found with W. A. Crosland (his elder brother). At 29 years of age William A Crossland enlisted in the Wilcox Mounted Rifles, April 25 1861, at Camden, Alabama. He was discharged from service near Pensacola, *July-August 2011 Paper Money 8/9/11 1:30 PM Page 285 Paper Money • July/August 2011 • Whole No. 274286 Florida in August 1861. A man by the name of "W. A. Crossland" of Camden, Alabama held a contract with the Confederate government to make barrels from December 1864 to at least March 1865. His name appears on a post- war (late 1800s) list of survivors of the Wilcox Mounted Rifles. Captain Sprague Luckily the name Sprague is not that common. Hank Boyd was not able to find a Captain Sprague in the regular Confederate Military, but a letter was found: “Hdqrs. Dept. Miss. And E. La., Vicksburg May 9, 1863 Maj. Gen. W.W. Loring, Commanding &c: “The lieutenant-general commanding direct that you guard Baldwin’s and Hall’s Ferries, and also the private ferries nearest them. As General Stevenson’s line is too long for him to attend to them, you will also inform General Stevenson of the disposition of our troops, and keep him constantly advised of your movements. “I am, very respectfully, / Sturgis Sprague” Hanks brought his friend Carl Hill in to help with Sprague. The following letter shows that Sprague was employed by the Treasury: “Richmond Va Aug. 8th 1864 Hon. G. A. Trenholm /Sect of the Treasury Sir, Having understood from Maj. Walker commercial agent at Bermuda, that Maj. Heyliger, Commercial at Nassau, would need an assistant this coming season. I have the honor to apply to be assigned to that position. In the meanwhile, until you can hear from the Maj. and ascertain whether he needs anyone. I would ask leave to visit Griffin Geo and settle my private business. Very Respectively / Your Most ob?? /Sturgis Springer” This letter shows Sprague worked for Treasury and was at a high-enough level to write to the Secretary. Ross found him listed in the 1850 Census - Sprague was born in Mississippi, 1827 (or 1831) and living in Natchez, Adams County, and that is all the information recorded. Given Sprague's age he may have gone filibustering during the next decade. His father, Sturges Sprague, was brother-in-law and partner to William B. Howell - father of Varina Howell Davis (Mrs. Jeff Davis), who died in Washington Co. Mississippi before May 1867. If your first cousin of the first lady, you would have inroads into the highest level of politics. We have been unable to determine where he obtained the title of Captain, but Jamison, Evans and Keatinge were all Captains when the Columbia Local Defense Regiment of South Carolina State Troops was organized and on 27 June 1864, according to the website of Bill Brasington of Houston Texas. As officers they were exempt from military service. This journey was probably an official mission. The cousin of the first lady, a printer and engraver do not make a trip carrying the heavy stones through hostile territory on a lark. They had to be headed to Texas to join the remnants of the Confederacy Trans-Mississippi. The Vignette Ross added the following insights: “I find the vignette of the battery on the T-68 interesting, because the uniform caps look like those worn by Confederates rather than the ‘wheel caps’ worn during the Mexican War. A clear connection between Crosslin/Crosslan/Crossland/Crosland and Braxton Bragg would back up the story that the image is of Captain Bragg's Battery in the Mexican War. “As for the incidents surrounding J. H.’s death, the disjuncture resulting from the collapse of the Confederacy meant that few newspapers existed to record them and a search of those available proved fruitless.” A check of the Crossland family genealogy site on Ancestry.com revealed that Margaret Crossland was the mother of Braxton Bragg. The Braggs and Crosslands were originally from North Carolina and one of Braggs brothers settled in Camden Alabama. This would verify that Bragg was Crossland’s relation and we know from the records that he was an engraver for the Confederate Treasury Note Bureau. From the information presented, there appears to be enough information to confirm that J. J. Crossland *July-August 2011 Paper Money 8/9/11 1:30 PM Page 286 was the engraver of the version of Captain Bragg’s Battery found on the Confederate T-68. The Missing Stones We have contacted every museum we can think of trying to find the stones. They are not at the Smithsonian. Dr. Richard Doty verified that and helped us with other museums. They are not at the Museum of the Confederacy or any other museum we could find in Virginia. The Museum of the Confederacy does have a stone for post-war souvenir notes and a piece of a map stone from the well in Anderson. The idea occurred to check with the Chicago History Museum. Charles Gunther of Chicago had a tremendous collection of Civil War artifacts. The col- lection became so large that in 1889 he purchased Libby Prison in Richmond and moved it in 132 railroad cars to be rebuilt on Wabash Avenue in Chicago. Gunther had the money to purchase any piece of Civil War history he wanted. The brochure lists some of the many items from his holdings. Confederate cur- rency is spread throughout the collection. Note in number 25: A piece of the machinery used at the mint at Columbia SC for making Confederate money list- ed in the brochure for Libby Prison War Museum. When Gunther died, the Chicago Historical Society purchased his collection. The curator was very gra- cious, but does not have the stones. NOTE: Someone living in Chicago should spend some time there. There could be considerable finds. The Crossland Heirs J. H. Crossland, who inherited the stones, was a prominent dentist in Montgomery. He had a sister Nan and brothers William and Tunstall. J.H and Nan never married. J.H died first and Nan inherited his estate. She moved back to Camden and died there in 1925. Hank found her will; she left her clothes to a niece and the remainder of the estate to the brothers. Nan was in Camden when the Confederate Veteran article was written and Spurlin probably would have stated that Nan had the stones. One of the co-authors (Tom) sent a letter to every Crossland in Alabama. Out of 36 letters, Bill Crossland was the only one who replied. J.H. had been his great uncle. He had never heard of the stones. His grandfather was one of Nan’s heirs. The Almost Conclusion This story is not finished until the stones are found. Hank is afraid they were resurfaced and reused. We may never know. The search has added to the knowledge of Confederate Currency. With the help of the internet, we were able to e-storm the research. The ad hoc team was as follows. George Tremmel – Author and researcher on Confederate counterfeit currency from Raleigh, North Carolina. Crutchfield Williams – Prominent dealer and researcher on Confederate currency from Texas. Pierre Fricke – Noted Confederate currency specialist and author from Atlanta, Georgia. Hank Boyd – Civil War researcher from Chattanooga, Tennessee. Carl Hill – Civil War researcher from South Carolina. Dr. Ross Brooks PhD – Civil War historian from Australia. Fred Reed - Author and Editor of Paper Money from Texas Tom Carson – Unlucky enough to find the fragment and curious enough to try to solve the mystery from Tennessee. v Paper Money • July/August 2011 • Whole No. 274 287 *July-August 2011 Paper Money 8/9/11 1:30 PM Page 287 Paper Money • July/August 2011 • Whole No. 274288 ALTHOUGH IT’S BEEN OUT SEVERAL YEARS, I’D like totake another look at George B. Tremmel’s A Guide Book of Counterfeit Confederate Currency, History, Rarity, and Values (Whitman Publishing, LLC 2007), War profiteering has existed from the beginning of time, how- ever, the sheer volume of counterfeit Confederate notes produced by northern printing operations during the Civil War is staggering. Tremmel’s book is an entertaining, meticulously documented and handsomely illustrated study of the onslaught of counterfeit money which was unleashed on the Confederate States of America (CSA), largely by individuals who sought to profit by exploiting the newness of the southern currency. This book should have great appeal to col- lectors of the confederate paper money series, as well as military his- torians on both sides of the conflict. Tremmel divides his well written and logically organized book into two parts. The first part (84 pages) lays the historical narrative, and the second part (222 pages) is a full color catalogue of the various issues which were produced by counterfeiters during the war. The narrative begins with a history of counterfeiting during the period and in the formation of a paper money system to facilitate the fund- ing of the Confederate cause. CSA Treasury Secretary C.G. Memminger was forewarned by southern bankers not to use a variety of non-standardized designs for notes of the same denomination. But the Treasury’s haste in implementing a new monetary system, and the massive volume of low quality notes invited public confusion regarding the identification of the new currency – one which would be rapidly exploited by counterfeiters. As predicted by the bankers, a large number of bogus notes began circulating in the south as early as the spring of 1862, literally forcing the rebel government to recall and exchange an early series of notes entirely, replacing them with a new series and creating even more uncertainty among the public. The replacement notes, which like virtually all that followed, would also be extensively counterfeit- ed. The counterfeiting problem was so pervasive that it was once described by CSA Senator Clement Clay during a session of the Confederate Congress as follows: “Now, sir, I regard this as one of the most dangerous, and, it may be, one of the most destructive blows made against our government. Its aim and tendency is to destroy all faith in the currency of the country, to destroy the credit of the Government itself and to disable it from raising and supporting armies”. This picture that the author paints for us in relation to the CSA government efforts to restore order to the money supply is one of endless frustration and helplessness. Everyone was suspect. Tremmel cites concerns shown in the Treasury Department correspondence that employees in the CSA’s legitimate printing operations were suspected of removing stolen lithographic transfers for later use in producing counterfeits. In the spring of 1863, 10,000 blank $20 CSA notes were stolen from an authorized CSA printing contractor in Columbia, SC unleashing a torrent of legitimate bills upon the public – except with forged dates and bogus signatures. Even Jefferson Davis’ household slave was arrested for stealing blank Treasury notes from the customs house, then signing, dating and passing the notes on unsuspecting storekeep- ers before being caught. The author also provides a behind the scenes look into the counterfeiters’ operations. Some of these men, like Samuel Upham of Philadelphia, began by producing facsimiles of CSA issues for sale as “souvenirs” of the southern rebellion. The souvenir notes were sold for only pennies on the dollar and were of such high quality that Upham’s operation soon evolved into the production and sale of tens of thousands of notes representing millions of dollars of face value. Many of these notes had their facsimile edge lettering removed, find- ing their way into general circulation via Union troops which freely spent the bogus money with unsuspecting merchants in the south. As the war progressed, Upham soon adapted his printing prowess to suit the needs of counterfeit passers by providing high quality counterfeit bills which could later have signatures and serial numbers added by the purchase. Another counterfeiter, Winthrop E. Hilton of New York City, openly advertised his counterfeit notes for sale in newspapers, stating “So exactly like the genuine that one will pass current, the other will go equally well.” The U.S. Government turned a blind eye to these operations, as they did not recognize the Confederate States as a legitimate government. To the amusement of Confederate officials, Hilton was later arrested and his operation terminated by federal agents when he allegedly shifted the target of his counterfeiting efforts to reproduce the U.S. currency. One of the most damaging methods by which counterfeit bills entered the south were from organized gangs which obtained their notes from the northern printers as well as clandestine operators in St. Louis, Missouri and Nauvoo, IL. By the summer of 1862, these various printers had produced a high quality product from skillfully engraved plates which were almost indistinguishable from the legiti- mate notes. These individuals often posed as buyers for the Confederate Army, convincing prominent southerners that the gov- ernment’s CSA money would not be accepted in the border states of Kentucky and Missouri, and an exchange could be had on favorable terms for other assets, including legitimate bank notes, gold, silver and diamonds – which would then be taken to the border states to purchase thousands of head of cattle on behalf of the government required to feed the embattled Confederate troops. Even the most seasoned civil war historians will be awestruck by the sheer volume and variety of counterfeit notes which circulated in the Confederate States during the war years. Tremmel’s study esti- mates that as much as $36 million in counterfeit notes circulated dur- ing the war. Of these, the author meticulously illustrates and describes 221 distinct varieties of bogus confederate notes, 61 differ- ent “shinplasters” or low denomination issues, 11 “fantasy notes”- printed with the markings of legitimate CSA issues and which circu- lated in the south as part of a pervasive northern scam. The book also includes a fully illustrated chapter on counterfeit bonds and a well organized appendix which provides a good examination of the various printing methods in mid-nineteenth century America - all of which were used by northern counterfeiters to enrich themselves at the expense of the south during the war. This book is a real eye opener. Collectors will relish in this meticulously organized catalogue of counterfeit notes, high quality illustrations, and the detailed numbering system. However, the true value in the book is in the magnificently written historical narrative which focuses on an unbridled form of economic warfare. This lays the groundwork for placing the hundreds of examples into their proper context. This book belongs in the library of every serious Civil War historian, regardless of whether they have ever attempted a col- lection of CSA paper money. -- James P. Bevill James P. Bevill is author of The Paper Republic, The Struggle for Money, Credit and Independence in the Republic of Texas. v CSA fake note study an eye-opener says Texas author *July-August 2011 Paper Money 8/9/11 1:30 PM Page 288 Paper Money • July/August 2011 • Whole No. 274 289 Many readers of Paper Money are aware of our diverse Confederate studygroup, known as “TRAINMEN” we share common interest in 1862 $100interest-bearing Treasury notes. My specialty is “Trains,” Criswell Types39/40, with train vignettes that inspired our group name. A while back one of our newer members, Mike Stair who lives in Maine, sent a link to a group showing us the bank hammer in the antique collection of old hand tools owned by Lee Valley Tools, Ltd. A freelance writer, D.S. Orr, had written about the implement for the company’s Woodworking Newsletter. Orr wrote in part: “This hammer or small sledge-type device was initially thought to be a logstamping hammer or a blacksmith's tool for severing metal or scoring an “X,” but the tool's sharp edges would never have been retained if it were used in either manner. It has now been tentatively iden- tified as a currency-destroying hammer that was used to remove paper currency or sensitive documents from public circulation. . . . “Prior to banknotes being withdrawn from circulation (for damage or other reasons). . ., the cur- rency hammer was used,” Orr wrote. The striking action of the tool severed or mutilated the paper and prevented the notes from being recirculated. The cut or shredded material was then incinerated, he added. I found the appearance of this currency-can- celing hand tool very interesting, as did other members of the Trainmen. Kate Lewis of Lee Valley Tools took what I wrote and published it as a followup letter to the editor in the publication in which Orr’s article had appeared. Since few have seen one of these bank hammers (only the evidence of their use on our notes and checks, etc.) I thought readers of Paper Money might be similarly edified: “Dear Lee Valley, “First of all, I would like to thank you for displaying a bank hammer on your ‘What Is It?’ page (Volume 2, Issue 6). A group of us Trainmen collect and study American-Confederate currency. Like pre-War notes, most Confederate money was cancelled after being funded What’s it? turns out to be note canceling hammer By Col Crutch Williams CSA The scale of the bank hammer is shown in this image. (Photo courtesy of Lee Valley Tools Ltd.) Originally thought to be a marking tool for the timber industry, this bank hammer turned out to be a canceling device for banknotes and other fiscal documents. (Photo courtesy of Lee Valley Tools Ltd.) *July-August 2011 Paper Money 8/9/11 1:30 PM Page 289 Paper Money • July/August 2011 • Whole No. 274290 (i.e. traded in for any other type of fiscal document, such as a bond, a stock, etc.) by using a bank hammer to put cuts in the paper. It was then packaged, if not held at the main office in Richmond, Virginia (the capital city of the Confederate States of America), and shipped back to be recounted, registered and burned, as your article states. “They also used pen knives, razors and various-sized hole punches for cut, punch or hole-out cancelling at the larger depositories and the main treasury. They could cancel large stacks of notes by hitting them with one of the sharp-edged sledgehammers, such as you display. These were called Bank Hammer Cancel Tools. . . . “The bank hammer was most used from the mid- to late-1840s and through the American Civil War. It was also used in Canada, where currency was handled in the same manner as in the United States. After 1865 (or thereabouts), especially in the U.S.A., the only money that was printed was done so by the government. The notes would be reused until worn out and then were replaced. The old bills were either macerated or destroyed by burning. “After the War, bank hammers were primarily used for cancelling checks. This practice went on well into the 20th century but gave way to small multiple hole punch machines and various ink stamps. “My group was discussing the cut cancellation of an 1862 Confederate $100 bill. It was an interest-bearing note, and few of those notes were ever cancelled, unlike all the other issues of 1861-1863. Basically, when a note was funded (traded in), the life of the note ended. It was recorded, cancelled in some manner and returned for verification and destruction. After mid-1862, it became impossible to cancel all the notes and even if they were cancelled, it took too much time to ship them back to the capital and destroy them. “They were simply warehoused and later picked up as souvenirs of the American Civil War. The 1862 $100 bills, as interest-bearing documents, remained in commerce, but were usually closely held by banks, private institutions and individual investors. The sharp edges of the canceling tool could deface multiple sheets of paper. (Photo courtesy of Lee Valley Tools Ltd.) *July-August 2011 Paper Money 8/9/11 1:30 PM Page 290 Paper Money • July/August 2011 • Whole No. 274 291 “I just wanted to say how much I appreciate both your interest in historical tools and being given the chance to see what they look like. The various cancellations found on pre-War and old Confederate money, indicate that there were all types of these tools. The design of the sharp implement on one end could vary a great deal.” I sent her two images that showed the front and the back of a cancelled 1862 $100 bill. It had four hammer cancels, two on each side with one above the other. “The cutter was slightly different in that it was missing two edges; instead of having eight edges like your tool has, this one only had six,” I wrote. “Perhaps it was designed that way, or perhaps one part had broken off. Most likely, it had fewer edges because it was damaged. The difference in this design (other than the damage) and your tool showed in the newsletter is that the center is circular on the cancelled note” images that I sent her. Cancels on the note shown above, however, have all eight straight edges. Kate Lewis supplied additional information on the canceling device. According to Kate, “The head measures 1-11/32” wide, 1-3/16” high and it is 3-3/4” long. The handle is 12-5/8” long up to the head and it appears to be made of hickory. The cross on the head gives an imprint 11/32” on the diagonal and the lines are 17/64” apart. Weight of the hammer is 1 lb. 10 oz.” Kate also supplied various images of the implement that are used to illustrate this article courtesy of Lee Valley Tools Ltd. One that particularly interested me was the name of the implement company stamped on the size of the hammer head. It reads “Wade & The shape and size of the cancel on this CSA T-32 note, with tape cancel repairs, appears to be similar if not identical to that delivered by a blow from the Lee Valley Tools Co. antique hammer. (Photo courtesy Heritage Auctions) Closeup of the business end of the canceling device. (Photo courtesy of Lee Valley Tools Ltd.) *July-August 2011 Paper Money 8/9/11 1:30 PM Page 291 Paper Money • July/August 2011 • Whole No. 274292 Ford NY.” I was able to find out some information on the manufacturer of the canceling hammer. An entry for Wade and Ford appears in American Surgical Instruments by James M. Edmonson (Jeremy Norman & Co., 1997). According to Edmondson, Wade and Ford was a successor to the New York City firm of Goulding & Ford (William R. Goulding, Jr. and William E Ford), a surgical instrument maker located from 1855-57 at 85 Fulton and 137, 139, 141 Elm ("factory"). From 1857-60, both George Wade and William E. Ford occu- pied 85 Fulton. Thereafter the listing of “Wade & Ford (George Wade and William E. Ford)” appears at 85 Fulton from 1860-1866. Thereafter listings are for William E. Ford & Co. (William E. Ford and George Gilman) at 85 Fulton from 1866-71. In 1870, Shepard & Dudley list themselves as “sole agents for W. E. Ford, instrument maker to the New York Kiry, Bellevue, and New York State Woman's Hospital,” according to The Medical Register of New York and Vicinity. . . (1870). William F. Ford appears at 150 William from 1872-73 and in 1874 at Broadway & 24th. From 1875-90 William F. Ford is located at 1099 Broadway. Obviously following the Civil War, the partnership of Wade and Ford was dissolved. In March 1866 Wade sold his share of the business to William F. Ford. Ford operated the business at the 85 Fulton Street address until 1870. Ford then sold the business to Shepard and Dudley in 1870, who began business at 150 William Street." This information is supported by medical society and other busi- ness documents in New York during the 1870s. Wade & Ford are listed elsewhere as Civil War surgical tool makers. They were only in business from 1861-1866. Is is possible that this Wade was the father or grandfa- ther of what later became Wade American Tool Company c. 1912, and the later Wade Percision Tool Company? I’ll leave that research for another day. We share our knowl- edge at www.CSATrainmen.com. v Closeup of the maker’s mark stamped on the side of the canceling hammer reads “Wade & Ford NY.” (Photo courtesy of Lee Valley Tools Ltd.) “Wade & Ford, 85 Fulton St., N.Y.” imprint shown on a Civil War era surgical kit. This New York City firm manufactured implements like the bank hammer and doctor’s surgi- cal tools from 1860-1866 during the Civil War era. (Photo courtesy of Mike Stair) *July-August 2011 Paper Money 8/9/11 1:30 PM Page 292 Paper Money • July/August 2011 • Whole No. 274 293 NOTES WITH FANCY SERIAL NUMBERS COMMANDa premium from some currency collectors. A solid serialnumber, a radar, a ladder, or several other types of fancyserial numbers can make a note worth much more than other notes with the same denomination, from the same series, and in the same condition. Just how rare are these fancy serial numbers? Modern United States currency features eight-digit serial numbers from 00000001 to 99999999. There are 99,999,999 different eight-digit serial numbers. To keep things simple, we’ll assume that all serial numbers are equally likely to appear on a randomly selected note. In reality, some serial numbers are harder to find because the Bureau of Engraving & Printing usually removes them from pro- duction before circulation, replacing them with star notes. Also, print runs don’t always start at 00000001 or go all the way up to 99999999. But this doesn’t really affect our analysis much. (To make some of the arithmetic below simpler, we’ll sometimes include the non-existent 00000000 serial number, making a total of 100,000,000 serial numbers, but we’ll always remember to remove that non-exis- tent note from our totals.) In a solid serial number, every digit is the same. There are nine solid serial numbers: 11111111, 22222222, 33333333, 44444444, 55555555, 66666666, 77777777, 88888888, and 99999999. How Rare are Fancy Serial Numbers? By Dave Undis *July-August 2011 Paper Money 8/9/11 1:30 PM Page 293 Paper Money • July/August 2011 • Whole No. 274294 In a ladder serial number, each digit is one number higher (or lower) than the previous digit. There are six eight-digit ladder serial numbers: 01234567, 12345678, 23456789, 76543210, 87654321, and 98765432. (There are eight if you also count 34567890 and 09876543.) In a radar serial number, the second four digits are the reverse of the first four digits. Examples are 11188111 and 20066002. In a repeater serial number, the second four digits are a repeat of the first four digits. Examples are 11181118 and 20062006. In calculating the number of radars and repeaters, it’s useful to divide the eight-digit serial number into its first and second halves. Consider the first half. There are 10,000 possible numbers: 0000 through 9999. Now consider the second half. Again, there are 10,000 possible numbers. Of these 10,000, only one will be the same as the first half and only one will be the reverse of the first half. So there are 10,000 repeaters and 10,000 radars. These totals include the non-existent 00000000 number and the nine solids. Excluding these, there are 9,990 radars and 9,990 repeaters. A super radar is a special kind of radar. A super radar is a radar in which the middle six digits are all the same. Examples are 71111117 and 98888889. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 294 Paper Money • July/August 2011 • Whole No. 274 295 There are 99 super radars: 01111110, 02222220, 03333330 … 97777779, 98888889, and 99999999. Nine of these are solids. Excluding these, there are 90 super radars. A super repeater is a special kind of repeater. A super repeater is a repeater in which the first two digits are repeated four times. Examples are 26262626 and 78787878. There are 99 super repeaters: 01010101, 02020202, 03030303 … 97979797, 98989898, and 99999999. Nine of these are solids. Excluding these, there are 90 super repeaters. A radar repeater is both a radar and a repeater. Examples are 26622662 and 87788778. There are 99 radar repeaters: 01100110, 02200220, 03300330 … 97799779, 98899889, and 99999999. Nine of these are solids. Excluding these, there are 90 radar repeaters. In a double quad serial number, the first four digits are all the same and the last four digits are all the same, but a different number. Examples are 11114444 and 22226666. There are 99 double quads: 00001111, 00002222, 00003333 … 99997777, 99998888, and 99999999. Nine of these are solids. Excluding these, there are 90 double quads. *July-August 2011 Paper Money 8/9/11 1:30 PM Page 295 Paper Money • July/August 2011 • Whole No. 274296 In a seven-in-a-row serial number, seven digits in a row are all the same. Examples are 11111112 and 35555555. For each of the nine solid serial numbers, you can make 18 seven-in-a-row serial numbers: nine by changing the first digit and nine by changing the last digit. For example, the nine seven-in-a-row serial numbers you can make by changing the first digit of solid serial number 99999999 are 09999999, 19999999, 29999999, 39999999, 49999999, 59999999, 69999999, 79999999, and 89999999. You can also make 18 seven-in-a-row serial numbers by changing the first or last digit of the non-existent 00000000 serial number. So there are 180 seven-in-a-row notes. In a seven-of-a-kind serial number, seven of the digits are all the same. Examples are 44444424 and 99899999. For each of the nine solid serial numbers, you can make 72 seven-of-a-kind serial numbers: nine by changing each of the eight digits. You can also make 72 seven-of-a-kind serial numbers by changing each of the eight digits of the non-existent 00000000 serial number. So there are 720 seven-of-a-kind notes. This includes the 180 seven-in-a-row notes. In a binary serial number, only two numbers appear in the eight digits. Examples are 10100111 and 11181888. To see how many binary serial numbers there are, pick two different numbers from zero through nine. 20% of all serial *July-August 2011 Paper Money 8/9/11 1:30 PM Page 296 THIS SERIES 1929 NATIONAL CURRENCY $100 NOTEseems harmless enough. The note is in fairly nice shape. It has some writing near the right edge of the face; the back has some minor ink staining along the lower edge. The paper is fairly crisp with two almost invisible tiny holes in the top margin, but there are no strong folds or tears. Its color is nice. The note is quite col- lectible. Yet, if you are not a collector, know nothing about currency, and tried to spend this note, it could place its bearer in a heap of trou- ble. That is where I begin: The date is October 11, 2010. The location is a major “super” retail store in Rockport, TX. An unsuspecting elementary school teacher is checking out and presents a $100 bill in payment for gro- ceries. The bill seems unusual to the clerk. Suspecting it might be fake, the checkout clerk summons the store manager. The manager concludes the note is counterfeit and calls the police. Upon arrival, the officers take the note and request our third grade teacher of near- ly 30 years to accompany them to the station…in the police car. It gets worse. Our shopping teacher is finger printed, the note confiscated, and a “Counterfeit Note Report” is prepared. She is given the opportunity to call her husband, who comes to the police station and takes her home. By now our school teacher, as told to me, was a basket case – in fear of friends and family relations and more fear about placing her career in jeopardy for “passing counter- feit money.” As required in such a process, the person surrendering the note must “initial each counterfeit note with pen and ink in border areas of the note for identification.” Hence the initials “LH” over “10/11/10” on the right side of the note. The note and “Counterfeit Note Report” were forwarded to the United States Secret Service office in San Antonio, TX on October 18, 2010. Meanwhile, our coun- terfeit passing, school teach- ing shopper waited for the rest of her life to crumble. On October 21, 2010, a Certified Mail letter arrived from the United States Department of Homeland Security’s Secret Service office in San Antonio. Her fate was sealed in this envelope. Well, I’m sure you suspect the outcome. A one line letter stated that “The note…received in this office…has been determined to be genuine and is being returned to you.” The note was stapled to the top of the letter (accounting for the two tiny holes). For our teacher, life as usual returned. So how did I come by this note? In retirement my wife and I leave the cold weather of Ohio and become Winter Texans in Port Aransas. I ran one of my ads locally. Our school teacher read the ad and wondered if I would be interested in the note. The story con- veyed to me is true. This very nice person was quite upset about the entire incident and wanted the note out of her life. I purchased it and copies of all correspondence and reports regarding this bizarre tale- mostly for the story behind it. v Paper Money • July/August 2011 • Whole No. 274 297 numbers have one of these two numbers as the first digit. Of these, 20% have one of these two numbers as the second digit. Of these, 20% have one of these num- bers as the third digit. Continue similarly through the eighth digit. So 20% x 20% x 20% x 20% x 20% x 20% x 20% x 20% of all serial numbers have one of these two numbers for all eight digits. That’s 256 serial numbers. Two of these 256 serial numbers are solids, leaving 254. There are 45 different ways to choose two differ- ent numbers from zero through nine. Multiplying 254 by 45 tells us there are 11,430 binary serial numbers (excluding solids). The table below shows how many different fancy serial numbers appear in a run of 99,999,999 notes. It also shows the odds of seeing each type of fancy serial number on a randomly selected note from a run of 99,999,999 consecutive notes. Fancy serial Number of occurrences Odds that a random number type in a 99,999,999 note run note will be this type Solid 9 1 in 11,111,111 Ladder 6 1 in 16,666,667 Radar 9,990 1 in 10,010 Repeater 9,990 1 in 10,010 Super radar 90 1 in 1,111,111 Super repeater 90 1 in 1,111,111 Radar repeater 90 1 in 1,111,111 Double quad 90 1 in 1,111,111 Seven-in-a-row 180 1 in 555,556 Seven-of-a-kind 720 1 in 138,889 Binary 11,430 1 in 8,749 As previously mentioned, a random note will typically not come from a run of 99,999,999 notes. But this table still gives a good starting point for further analysis and collecting enjoyment. v School teacher’s sad tale related by Carson Miller *July-August 2011 Paper Money 8/9/11 1:30 PM Page 297 Paper Money • July/August 2011 • Whole No. 274298 Dear Fellow Paper Money Lovers: As I begin to “pen” this, the Mississippi River is flooding at several points in the wondrous journey it makes through the heart of this country. Levees have been literally blown up to relieve the pressure and height of the water downstream. Part of the river’s course includes a place called Memphis, where in almost exactly a month the “Big Dance” for paper collectors kicks off, the “Big Dance” being the 35th Memphis International Paper Money Show. Since this morning’s televi- sion coverage included a shot of a reporter standing in waders in the water on lower Beale Street, and since the media are currently predicting the river’s cresting in a week, your faithful correspondent is just a wee bit worried about how this year’s event may go. I am not worried about the level of interest in Memphis as an event. As of this evening’s writing, we have already sold 111 tickets to the 2011 SPMC breakfast. The early high level of interest displayed in Chicago, about which I wrote in last issue’s column, has continued. At last year’s event, we served 104 breakfasts, and we are already, a month before the event, well ahead of that number. So if the popularity of this year’s breakfast can be construed as a “leading hobby event indica- tor,” we can infer that Memphis will be an even bigger event than usual. This year’s event is more important than most to the Society. We are celebrating the 50th anniversary of the Society’s founding in 1961. While we are making every effort to celebrate this milestone all across the country and all year long, it is fair to say that Memphis is the natural place to reach the largest group of our members. As such, it will be the cen- terpiece of the more social forms of celebration, the breakfast, the meetings, and the Saturday evening reception. This last event is still taking shape, and is being planned in conjunction with the International Bank Note Society, who are also cele- brating their own 50th anniversary and in conjunction with the highly supportive Lyn Knight, who will really deserve all the credit for whatever transpires in Memphis this year. Aside from the weather, that is. If I did not know that this column would reach you all after the 2011 Memphis event is over, I would not have the courage to write of the river’s height, for fear of discouraging even one member from attending this quite special event. So all I can do is hope and pray, and you can certainly expect some comment in the next issue’s column. In last month’s column I provided an overview of the var- ious activities and improvements that we can expect to make Memphis 2011 quite exceptional. One of the emphases Lyn has brought to bear since acquiring the show is a renewed focus on exhibits – improving the quantity, the quality, the topical breadth, the size, you name it. Exhibiting is one of those things that has been suggested to me as something that I “would enjoy” doing, and that is a “nice complement” to col- lecting. Historically, yours truly, a collector for over 40 years, has resisted all entreaties to date to “do an exhibit.” Partly, it seemed like a lot of work. Partly, I didn’t feel I had a story worthy of viewership. And finally, the quality of most of the exhibits I have been exposed to over the years has been so high that I have just plain been intimidated. Well, in the spirit of Memphis, and in recognition of Lyn’s efforts, I have finally caved in. And while I have a plan, and have organized my thoughts and the material, I know already I was right about this being a lot of work. And I have not even taken a first cut on a mat board. Wish me a little luck, but I am looking for- ward to this challenge. Once again, coming up on the end of my second year as your President, I find myself proud of the Society and its con- tinued fulfillment of its mission. Thanks to a dedicated group of members and contributors, along with an equally dedicated and professional editor, our principal work, the magazine you hold, remains full of valuable content and continues to receive well deserved praise as a quality numismatic periodical. Your Board continues to work hard on the multiple aspects of the life of the Society, from creating, coordinating, and publiciz- ing events of interest to our members and consistent with the Society’s mission, to the very interesting work currently in progress to upgrade the Society’s website. Our new member- ship secretary has made notable strides in reinvigorating mem- bership lapses, and our Treasurer will again likely report in Memphis that the Society is fiscally healthy. The founders of the Society, who banded together in 1961 to create this fine entity of which we are the fortunate members, organized it with six principle goals, as cited in the original Constitution and By-Laws: The Purpose of the Society shall be: A. To promote, educate and encourage the study and collecting of paper money. B. To cultivate fraternal collector relations. C. To encourage research and publish books and arti- cles pertaining to the study of paper money. D. To dispense information and knowledge in a Society bulletin. E. To advance interest and prestige and promote meet- ings and exhibits at conventions. F. To encourage more realistic and consistent market valuations. While they have been revisited, revised and re-worded over the years, the current by-laws are remarkably unchanged from the original guidance, and the charter members would have to agree [with the understandable exception of Item F], that the Society continues the original work in true spirit. Interestingly, at a very early meeting of the Society, it was observed that one day the Society might grow to “200 mem- bers.” When dues were $3 per year! Whether you are planning to visit Memphis, or the Chicago ANA, or not, I send only best wishes from the SPMC for a safe and relaxing summer, wherever your plans pull you. Sincerely, The President’s Column Mark v *July-August 2011 Paper Money 8/9/11 1:30 PM Page 298 Paper Money • July/August 2011 • Whole No. 274 299 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 opposite -- 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. (Please Print) ______________________________ ___________________________________ ___________________________________ ___________________________________ 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 abbrevia- tions, figure combinations and initials count as separate words. No checking copies. 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 contribu- tion to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues = only $20.50! CHINA CURRENCY BUYER!, 1853 thrugh 1956. Singles to Packs. $2 to $2,000 notes wanted. All singles, groups, packs & accumulations needed. Package securely with your best price or just ship for our FAST Top Offer! Send to G. Rush Numi, P.O. Box 470605, San Francisco, CA 94147. Contact Goldrushnumi@aol.com. Full-Time Numismatists since 1985. Member ANA, FUN, IBNS, FSNC, SPMC (279) PHOTOGRAPHERS’ MONEY WANTED. Advertising notes (Handbills that resemble currency). Daguerreotypists of the 1840s to modern times. ngraver@rochester.rr.com or NM Graver, 276 Brooklawn Dr., Rochester, NY 14618 (276) WANTED: ALBANY GA NATIONAL BANK NOTES. Any charter, size, denomination, or type. Email: gaanderson.1966@yahoo.com (276) ERROR NOTES AND OTHER SMALL-SIZE U.S. currency. Buy, sell, trade my duplicates for yours. - MrCashMan@hotmail.com (276) WRITING A NUMISMATIC BOOK? I can help you with all facets of bring- ing your manuscript to publication. Proven track record for 40 years. Create a legacy worthy of your efforts. Contact Fred Reed fred@spmc.org (276) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with descrip- tion (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (276) WANTED: 1/0 BINARY SMALL-SIZE NOTES. All possible combinations of 1’s and 0’s in 8-digit serial numbers. Doug Merenda, 215 W. Troy St. #1009, Ferndale, MI 48220. ddm_50@yahoo.com (278) WILDCAT BANKS OF WAYNE COUNTY (Ohio), 80 pages, $30 postpaid. Raymond E. Leisy, 450 N. Bever St., Wooster, Ohio 44691 (A) WANTED TO BUY: Small Change Notes Dated March 12, 1792, Which Were Issued by “The Union Society” Located in Smithtown, New York. Anthony Bongiovanni, Box 458, Rocky Point, NY 11778 (274) FREE TO GOOD HOME. 5 CAA auction catalogs, 1997-1999 (duplicates in my collection). For list, etc. karl@rochester.rr.com (A) HAWAII KINGDOM AND REPUBLIC CURRENCY, proofs, and related paper. Please offer. Thank you. jimscoins@sbcglobal.net, 608-233-2118, James Essence, 702 N. Midvale Blvd B-2, Madison, WI 53705 (278) $$ money mart *July-August 2011 Paper Money 8/9/11 1:30 PM Page 299 Artist Darley responsible for many banknote designs TODAY, MOST PAPER MONEY DESIGN ANDengraving is done by computer program. During the 19th and most of the 20th century, artists were hired by secu- rity companies to create original artwork or adapt the work of others for use on paper money and other security instruments. These images were drawn or painted in such a way that engravers could easily transform them into smaller images for bank notes, bonds, stock certificates and postage stamps. On occasion the artist and engraver were the same per- son. A few of the outstanding artists who created bank note images were Felix Octavius Carr Darley, Edwin White (1817-1877), Theodore August Liebler (1830-1890), Alonzo Foringer (1877-1948) and Robert Lavin (1919- 1997). With no record of teach- ers, we can assume that F.O.C. Darley (1821-1888) was self-taught in Philadelphia, his place of birth. He worked there for two years and then moved to New York in 1848. Four years later he was declared an academician at the National Academy of Design. Darley had a studio at 102 12th Street in New York City where in 1853 he created his first bank note art for Toppan, Carpenter & Company (TC&Co). In 1858 TC&Co, along with seven other bank note companies joined to form American Bank Note Company. Darley created most of his bank note art for this new compa- ny, that soon became the most prestigious security printing company in the world. In the 19th century this company printed bank notes for more than 150 countries. Darley also created artwork for the Continental, National and Western Bank Note Companies and the U.S. Bureau of Engraving and Printing. Examples of Darley’s work appear on notes for obsolete private banks, paper money for the U.S. federal government and notes and securities for other coun- tries. Darley’s bank note art often portrayed life in early America including numerous scenes with native Americans. He also created patriotic images including The Battle of Lexington, which appears on the back of a $20 National Bank Note, and Washington’s Encampment on the Bank of the City of Petersburg, Virginia $1 note, Parting Words on a $2 note for the County of Erie, Pennsylvania, Patriots at War on a $10 note for Continental Bank of Boston, Massachusetts, War Alarm on the City of Leavenworth, Kansas $2 note, and News from Home on a coupon bond for the Republic of Argentina. The work of some of the most popular authors of the 19th century, Harriet Beecher Stowe, James Fenimore Cooper, Washington Irving and Charles Dickens included illustrations by Darley to enhance their stories. For Cooper alone Darley created more than 500 illustrations and some of these were adapted for use on paper money. F.O.C. Darley’s ability to work as an illustrator made him a natural to create artwork on paper money, which is a form of illustration. In 1866 Darley exhibited his work at the Paris Exposition and at the Centennial Exposition in Philadelphia in 1876. During his time in Europe Darley also visited Belgium, England, Germany and Italy studying the art of painters who preceded him. During his life- time Darley cre- ated more than 4,000 images and some of the attendees at the U.S. Centennial Exposition proba- bly had paper money in their pockets that i n c l u d e d engraved images by this P h i l a d e l p h i a artist. He was also an engraver. As part of the history of magazine and book illustrations in the U.S., F.O.C. Darley is an American icon. There are numerous web sites that are worth visiting for more information about F.O.C. Darley, one is: www.angelfire.com/de/focdarley. F.O.C. Darley was the right person to be practicing his art when he did, and the paper money in the hands of collectors reflects this. F.O.C. Darley can easily be considered America’s pre- miere illustrator. When he died in 1888 Darley was working on illustrations for the Charles Dickens’ Old Curiosity Shop. Reprinted with permission from Coin World, July 26, 2004 v Paper Money • July/August 2011 • Whole No. 274300 A Primer for Col lec tors BY GENE HESSLER THE BUCK Starts Here F.O.C. Darley’s War Alarm on City of Leavenworth $2 note *July-August 2011 Paper Money 8/9/11 1:30 PM Page 300 TWO DISTINCTLY DIFFERENT STYLES OFTreasury Secretary Andrew W. Mellon’s signature appear on 1928 series notes. The telling difference between them is the longer tail on the ‘n’ on the first. No significant varieties resulted from their use because the BEP paired them exclusively with signatures of dif- ferent Treasurers. The first was paired with Treasurer Tate’s signature, and appears on Series of 1928 $2 United States Notes; 1928 $1 Silver Certificates; and 1928 $5, $10 and $20 Federal Reserve Notes. They second was mated with Treasurer Woods’ signature, and appears on 1928A $2 and 1928 $5 United States Notes; 1928A $1 Silver Certificates; 1928A and 1928B $5, $10 and $20 Federal Reserve Notes; 1928 and 1928A $50 and $100 Federal Reserve Notes; 1928 $500 and higher Federal Reserve Notes; and all denomi- nations of 1928 Gold Certificates. I became aware of the two signatures while researching the Bureau of Public Debt files at the National Archives in Maryland during a recent visit. I came across a large group of documents from 1929 and 1930 that discussed the changes made during those years to the district seals on 1928 Federal Reserve notes. I quickly skimmed the information and photographed every document included in the pile. Only after my trip did I more closely analyze those pages. Buried within them was a letter written in October 1929 by the then-Treasury Under- Secretary Ogden Mills (Mills, 1929). He was addressing comments circulating throughout the Federal Reserve banks about the new style of Mellon’s signa- ture appearing on new notes, and described how the variation became possible. When Woods replaced Tate in 1929, the BEP obtained not only a signature from him, but a new specimen of Mellon’s signature. They then used these on the Woods-Mellon plates. Mellon’s second signature persisted until Mills succeeded him in 1932. Different signatures styles of the same officials are found on Original Series and Series of 1875 National Bank Notes. Those vari- eties came about in the same way. Signature variants also appear on early legal tender notes with varieties of Spinner’s signature that Fred Reed has written about in Bank Note Reporter. However, I am unaware of this happening on other large-size or small-size types. I am keeping an eye out, though, and want to learn about other examples. Email them to me at fivedollarguy@optonline.net. Acknowledgments The Professional Currency Dealers Association supported this research. Peter Huntoon reviewed the manuscript and made sugges- tions for improvement. Reference Mills, O., Under-Secretary of the Treasury. Letter to W. Harding, Governor, Federal Reserve Bank of Boston, regarding changes to Secretary Mellon’s signa- ture, October 30, 1929. Bureau of Public Debt, Series K Currency, Record Group 53 (53/450/54/01/05, box 12, file K723), U.S. National Archives, College Park, MD. v Paper Money • July/August 2011 • Whole No. 274 301 Small Notes by Jamie Yakes Mellon’s Two Signatures Painting depicts The Adams Bank note partial sheet Paper Money’s January-February 2011 cover featured a painting of a distinguished bank note signer by artist J.H. Keeley, courtesy of dealer Rex Stark. Reader Leslie Deerderf tried to figure out the precise notes. Haxby lists Adams Banks in both Massachusetts and New York, but unfortunately listings do not appear to describe the note portions shown. She’d like sugges- tions from other readers, based perhaps on notes in their collections. Contact the Editor. *July-August 2011 Paper Money 8/9/11 1:31 PM Page 301 Paper Money • July/August 2011 • Whole No. 274302 SCRIP NOTES, LIKE NATIONAL BANK NOTES, TELL A STORY IFone but listens. Most of these fascinating stories have never been told.Knowing the history behind the note makes collecting and owning themmuch more enjoyable. According to Matt Rothert, Sr.’s book, Arkansas Obsolete Notes and Scrip (SPMC, 1985), there were no banks in Arkansas before it became a state in 1836. After formation as a state, the Legislature, in September 1836, authorized two banks: The first act of the legislature created the Real Estate Bank of Arkansas and the second act created the Bank of the State of Arkansas. However, both of these banks soon failed causing the loss of millions of dollars to depositors and the State. As a result of these failures, the first amendment to the Constitution of Arkansas of 1836, ratified by the State Legislature on November 17, 1846, read: “No bank or banking institution shall be hereafter incorporated or established in this State.” Rothert further notes in his book that “As a result of this amendment, there were no commercial banks in Arkansas from 1846 until after the end of the Civil War.” Even though banks were outlawed, Rothert writes that two companies used the work “bank” in their names, but had no state banking charter – the Exchange Bank of Helena and the Bank of Dixie. The Bank of Dixie was operating, I presume, on the square in Fayetteville, Arkansas at the start of the Civil War. It was apparently owned by W.L. Wilson who signed all the notes of the bank. Accordingly, the Bank of Dixie was an illegal bank that operated without benefit of a state charter or legal authority. Apparently, the laws were not enforced or maybe since it WAS the “Bank of Dixie,” southern furor at the start of the war allowed the bending of laws. Had it been named the Bank of the Union...well, who knows? Bank of Dixie Fayetteville, Arkansas January 8, 1862 By Quintin Trammell *July-August 2011 Paper Money 8/9/11 1:31 PM Page 302 Paper Money • July/August 2011 • Whole No. 274 303 *July-August 2011 Paper Money 8/9/11 1:31 PM Page 303 Paper Money • July/August 2011 • Whole No. 274304 Bank of Dixie notes are listed by Rothert as R-7 which means only 1-5 of each denomination were believed to exist at that time. All reported notes are dated January 8, 1862, and this note illustrated is serial number 167. Denominations include 25 cent, 50 cent, 75 cent, and one dollar. Rothert assumed larger denomina- tions may have been issued. This note is signed by W. L. Wilson who had also been the president of the failed Branch Bank of the State of Arkansas at Fayetteville. Wilson apparently made once last attempt at banking even though it violated the Arkansas Constitution. It, like most businesses, was destroyed along with the much of Fayetteville during the war. The following information is taken from the History of Washington County, Arkansas, 1989, by the Shiloh Museum: Washington Lafayette (W.L.) Wilson was born in Verona, Oneida County, New York on May 8, 1810. He married Catherine Drysdale and moved to Fayetteville, Arkansas in the early 1830s with his first land pur- chase recorded on June 27, 1839. W.L. was one of Fayetteville’s earliest merchants, operating a dry good store on the north side of the Fayetteville square. Records show that his frame home was located on the north east corner of the square, that he was a representative of Washington County to the General Assembly of Arkansas in 1838, that he served in the Mexican War and died in Fayetteville in 1864. Catherine also died in Fayetteville in 1860. Both are buried in the Wilson plot just across from the entrance to the Confederate Cemetery in Fayetteville. Washington County Historical Society Flashback articles reveal the follow- ing: Washington L. Wilson came to Fayetteville, Arkansas around 1831, helped organize the Masonic Lodge in 1835, was one of the Grand Lodge of Arkansas organizers in 1838, served as Master of the Washington County Lodge No. 1 in 1851 and High Priest of Far Western Chapter in 1854. His Paternal granddaughter reports in the Flashback that W.L. Wilson conducted the meeting of the Masonic Lodge the night before his death. He died suddenly of a heart attack. His wife had preceded him in death several years before. Wilson was the president of the Branch Bank of the State of Arkansas and signed notes issued by that bank for a time around the 1838-1840 period and then in January 1862 issued notes under the name Bank of Dixie. It appears he conducted these banking activities in addition to his mercantile business. The exact location of the Bank of Dixie has not been established. It could well have been located in his store. W.L. had seven children (four girls and three boys). According to the arti- cles in the Flashback, one son, Drysdale, joined the Confederate Army at age 14, lost a leg at Pea Ridge (Fayetteville Arkansas in the Civil War by Russell L. Mahan, 2003, page 54), and died a few years later. A daughter married John Thomas who, in the 1840s, owned the farm where the Frisco railroad curves south across Dickson Street in Fayetteville. The Thomas Family cemetery plot is now Evergreen Cemetery in Fayetteville. Another daughter, Sarah, married Henry Rieff, a well-known Fayetteville merchant. According to Mahan, Henry Rieff was appointed Colonel of the 20th Regiment of the Arkansas Militia and raised a militia company in Fayetteville called “The Washington Rifle Guards.” Mahan also reports that Kate Wilson (spelling) died on November 16, 1859, after a long illness. It is also reported in the Flashback that W.L. gave a very young Stephen K Stone his first job upon arriving in Fayetteville clerking in his store. S.K. Stone would one day be one of Fayetteville's wealthiest citizens. v *July-August 2011 Paper Money 8/9/11 1:31 PM Page 304 305Paper Money • July/August 2011 • Whole No. 274 SPMC members take to proverbial road in April Above, Dave Bowers addresses an April 11th joint meeting of the Currency Club of New England and Boston Numismatic Society at Trinity Congregational Church hall, Waltham, MA. Looking on are CCNE presi- dent David Leong and C. John Ferreri, organizer of the event. At right, Dave Sundman makes a point about a National Bank Note at the same event. The evening also featured Anne Bentley, Curator at the Massachusetts Historical Society. (Photos courtesty of Richard J. Hand Jr.) Meanwhile on April 2nd a pair of SPMC board members Wendell Wolka (below) and Fred Reed (below right) spoke at the Central States Numismatic Society Educational Forum hosted by the Old Fort Coin Club in Fort Wayne, IN. Wendell spoke about Civil War era banking, and Reed unveiled his upcoming new Lincoln book for Whitman Publishing Abraham Lincoln: Beyond the American Icon. (Photos courtesy of Gerald Tebben and Dave Heinrich) *July-August 2011 Paper Money 8/9/11 1:31 PM Page 305 Paper Money • July/August 2011 • Whole No. 274306 FOR NEARLY THIRTY YEARS THE “LARGE OUTSTANDING”data listed for national banks in the Kelly and Hickman-Oakes catalogshave been used widely as a measure of national bank note rarity. A smalloutstanding number can trigger a bidding frenzy, but those Large Out numbers are not what they seem. The Large Out figures were faithfully abstracted by pioneering national bank note researcher Louis Van Belkum from the last ledger sheet for each bank in the National Currency and Bond Ledgers maintained by the Comptroller of the Currency’s office. He collected those data as he compiled his listing of the serial numbers issued to the banks. The Large Out numbers were incorporated in the listings by the cataloguers as critical pieces of information along with the serial number data. The Large Out data in the ledgers were used by the Comptroller to track the circulating notes that were the liability of the issuing bank (Figure 2). A pri- mary reason for doing this was that the bankers had to pay taxes on their circula- tion. However, prior to July 1908, there were two circumstances where out- standing notes were excluded from the bank totals and reassigned as the liability of the Treasury. The first involved cases where the bankers sold bonds to reduce their circulation. The second, discussed in detail here, involved the write off of old series notes after the charter of a bank was extended. The Large Out totals for thousands of banks were impacted, involving millions of dollars worth of notes that were excluded from the outstanding totals. Consequently, the Large Out amounts vastly undercount the actual value of out- standing notes. The result is that the Large Out data in our catalogs greatly over- state the apparent rarity of notes for huge numbers of banks. The problem is that the Large Out numbers recorded by Van Belkum were believed by numismatists to be a direct measure of surviving notes at the time the numbers were posted. In fact, Large Out was the Comptroller’s means of determining the outstanding circulation for which a bank was liable, a materi- ally different calculation. Large Out never was designed to track all the notes from the bank that remained in circulation. The purpose of this article is to focus on the Large Out data for banks that were extended up through July 1908, and to demonstrate how the closeout accounting practices used to write off the old series notes during that era render the reported Large Out data unusable for rarity purposes. What does ‘Large Out’ Really Mean for National Bank Note Collectors? Circulation Closeouts for Extended Banks are Another Reason ‘Large Out’ Data are Unreliable The Paper Column By Lee Lofthus and Peter Huntoon *July-August 2011 Paper Money 8/9/11 1:31 PM Page 306 Paper Money • July/August 2011 • Whole No. 274 307 *July-August 2011 Paper Money 8/9/11 1:31 PM Page 307 Paper Money • July/August 2011 • Whole No. 274308 Closeout Requirements in the Acts of 1882 and 1902 The amendment to the National Bank Act signed into law on July 12, 1882, provided for one 20-year extension of corporate life for existing national banks. Section 6 of the act required that “. . . at the end of three years from the date of the extension of the corporate existence of each bank the association so extended shall deposit lawful money with the Treasury of the United State suffi- cient to redeem the remainder of the circulation which was outstanding at the date of its extension.” The process to accomplish this was called closeout. Section 6 also stipulated that the design of all new notes issued after extension “shall make them readily distinguishable from the circulating notes heretofore issued.” The Act of April 12, 1902, provided for a second 20-year extension of cor- porate life, and included identical requirements for the closeout of the previous series and distinguishable new notes after extension. U. S. Treasurer Walter Woods, writing in 1932, described the Section 6 process as follows. “It was formerly the rule that each National Bank’s charter Figure 1. This $5 note is from the $186,100 in Original/1875 series notes issued by the FNB of Cheyenne, Wyoming. The liability for the redemption of this note was transferred to the Treasury in 1894 when the bank’s charter was extended and $12,090 worth of out- standing Original/1875 series notes were closed out from the bank’s books. This and all the other Orignal/1875 notes became the lia- bility of the Treasury, so any that remained outstanding are not repre- sented in the $190,600 Out at Close amount shown in our catalogs. Figure 2. This 1891 statement for The Cheyenne National Bank, Wyoming, charter #3416, lists the bond-secured national bank note cir- culation as a liability. Knowing who was financially liable for a given outstanding note – the bank or the Treasury Department – is critical to understanding the meaning of Large Outstanding as calculated by the Comptroller of the Currency. *July-August 2011 Paper Money 8/9/11 1:31 PM Page 308 Paper Money • July/August 2011 • Whole No. 274 309 Catalogs Will Be Available in July or View and Bid Online at www.stacksbowers.com Call one of our currency consignment specialists to discuss opportunities for upcoming auctions. They will be happy to assist you every step of the way.  :HVW &RDVW 2IILFH ‡  (DVW &RDVW 2IILFH )LWFK,UYLQH&$‡ LQIR#VWDFNVERZHUVFRP‡ZZZVWDFNVERZHUVFRP &DOLIRUQLD‡1HZ