Paper Money - Vol. LI, No. 4 - Whole No. 280 - July - August 2012

PAPER MONEY OFFICIAL JOURNAL OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. LI, NO. 4, WHOLE NO. 280 WWW.SPMC.ORG JULY/AUGUST 2012 P.S. You’ll never own five of these unique Civil War postage stamp envelopes, which are unknown outside the Smithsonian’s National Numismatic Collection. Also unique, the C.W. Van Buren stamp envelope was discovered in March 2010 and is in private hands. The encased stamp is available though not inexpensive. Clockwise from above left: Reed PE258; Reed PE460; Reed PE780; Reed PE724; Reed LT03; Reed PE564; Reed PE474; Summer - Fall 1862: 150 Years ago this was your small change July-August 2012 SPMC cover_Jan/Feb Cover 7/12/12 6:12 PM Page 1 Don’t be such a sour puss . . . Advertise here in Paper Money © Lola Dupré 2010 July-August 2012 SPMC cover_Jan/Feb Cover 7/12/12 6:13 PM Page 2 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site pcdaonline.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. Or Visit Our Web Site At: www.pcdaonline.com James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 July-August 2012 SPMC cover_Jan/Feb Cover 7/12/12 6:13 PM Page 3 C U R R E N C Y AU C T I O N S 23290 July-August 2012 SPMC cover_Jan/Feb Cover 7/12/12 6:13 PM Page 4 Paper Money • July/August 2012 • Whole No. 280 241 TERMS AND CONDITIONS PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 101-C North Greenville Ave. #425, Allen, TX 75002. Periodical postage is paid at Hanover, PA. Post master send address changes to Secretary Benny Bolin, 101-C North Greenville Ave. #425, Allen, TX 75002. © Society of Paper Money Collectors, Inc., 2012. 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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Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LI, No. 4 Whole No. 280 July/August 2012 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 Forced Issue Notes of the Bank of Louisiana . . . . . . . . . 243 By Steve Feller Notes from North of the Border: Completion Approaching . . 256 By Harold Don Allen Tax Anticipation Scrip during the Great Depression . . . . . . . 259 By Loren Gatch The Paper Column: Spelling Created Trouble with Nationals . . . . . .268 By Peter Huntoon & Bob Liddell Mrs. Emma Reed, National Bank President . . . . . . . . . . . . 277 By Karl Sanford Kabelac About Nationals Mostly: The FNB of Farmersville, TX . . . . . . 278 By Frank Clark Edgar Allan Poe Signed Checks . . . . . . . . . . . . . . . . . . . . . . 280 By Michael Reynard Mrs. S.R. Coggin, National Bank President . . . . . . . . . . . . . . 283 By Karl Sanford Kabelac A Theoretical Model of Mormon Currency of Kirtland, OH . . . 285 By Douglas A. Nyholm The Buck Starts Here: The First Greenbacks . . . . . . . . . . . . 297 By Gene Hessler Small Notes: New Ones on Letter-Seal 1928 FRN Plates . . . 293 By Jamie Yakes Civil War Stamp Envelopes Circulated as Small Change . . . 298 By Fred L. Reed A checklist of Civil War Postage Stamp Envelopes . . . . . . . . 306 By Fred L. Reed SOCIETY & HOBBY NEWS Information and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242 Your Subscription to Paper Money Has Expired If . . . . . . . . . . . . . . . . . . . 246 New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273 President’s Column by Mark Anderson . . . . . . . . . . . . . . . . . . . . . . . . . . . . .292 Back of the Back Page with Loren Gatch and Fred Reed . . . . . . . . . . . . . .317 The Back Page with Paul Herbert and John Davenport . . . . . . . . . . . . . . . .318 Paper Money • July/August 2012 • Whole No. 280242 Society of Paper Money Collectors OFFICERS ELECTED OFFICERS: PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 vICE-PRESIDENT Pierre Fricke, Box 1094, Sudbury, MA 01776 SECRETARY Benny Bolin, 101-C North Greenville Ave. #425, 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 1094, Sudbury, MA 01776 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 VACANT Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 VACANT 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 1094, Sudbury, MA 01776 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 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. 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SPMC LM 6 BRNA FUN Paper Money • July/August 2012 • Whole No. 280 243 The Forced Issue Notes of the Bank of Louisiana in New Orleans I. Introduction Last March (2011) I happened in on Colin Narbeth’s Shop on Cecil Court near Leicester Square in London. There I saw Simon, Colin’s son. It is a wonderful shop with a counter devoted to banknotes. I quickly purchased their new book Collecting Paper Money, A Beginners Guide, a redo of Colin’s earlier volume with Simon now as a coauthor. Then, I asked to look at notes in my favorite categories including Confederate notes. Simon pointed out to me some Forced Issue notes of the Bank of Louisiana in New Orleans, a note that is featured in his book. The description in the Narbeths’ book reads: One particular private bank deserves attention for those interested in the Confederacy and that is the New Orleans Bank of Louisiana. Major General Butler had taken his men into New Orleans and one of the first things he did was to make the bankers issue more notes. The bankers were against this, but General Butler was not asking them, he was telling them at the point of a bayonet. So the bankers had the notes over-stamped “Forced Issue.” New Orleans had surrendered 28 April, 1862 without fighting. He became nicknamed “The Beast Butler,” as many things he did outraged the people. A Somewhat Frequent Series on Wonderfully Historic Confederate Notes -- 2 By Steve Feller Vanessa & Simon Narbeth in the shop. (from www.colin-narbeth.com) Paper Money • July/August 2012 • Whole No. 280244 In this second column on Confederate notes I examine these most curious notes. Research has revealed some new information whereas many questions remain. Illustrated below is the $20 note I purchased. I love its central vignette of the ante- bellum and impressive Bank of Louisiana building in New Orleans, see the close up opposite along with a modern picture of the bank at 334 Royal Street in the French quarter, just a block off rambunctious Bourbon Street. Exterior of the store. (from www.colin-narbeth.com) Face and Back of Twenty Dollar Note of the Bank of Louisiana, May 22, 1862, Haxby LA-75-G18-c. Paper Money • July/August 2012 • Whole No. 280 245 I like the added overstamp, a curious and historical one, indeed, as it reads: FORCED ISSUE ______...________ REGISTERED ______...________ P.H. MORGAN Commissioner FOl.______________ According to Gardner’s New Orleans Directory of 1861, P.H. Morgan was the judge of the Second District Court of New Orleans. Curiously, Judge Morgan was the subject of a suit brought to the United States Supreme court. In 1875 the Court sided with Morgan regarding his Associate Judge seat on the Louisiana Supreme Court. Furthermore Judge Morgan’s daughter wrote a great book: A Confederate Girl's Diary by Sarah Morgan Dawson, This book has very interesting details on life in and escape from Civil War New Orleans. The full text and the following image maybe found at: http://doc- south.unc.edu/fpn/dawson/dawson.html II. The Overstamps Now back to the overstamps. In the overstamp next to FOl, which I think stands for folio, is one or more numbers. Is there a pattern in these? Also, some of the 1862 Bank of Louisiana notes are overstamped while others are not. Again is there a pattern? The answers are certainly not obvious. In order to check I did a preliminary survey of 31 of the notes, most of them easily found on the inter- net at the Heritage and Denly sites as well as at Ebay. Here’s what I’ve seen on these notes, some images are at the end of the article: Close up of the Bank of Louisiana. Modern view of the Bank of Louisiana building. Paper Money • July/August 2012 • Whole No. 280246 If your label reads July or August 2012 this is your LAST ISSUE. You need to renew to Paper Money immediately, or you will be dropped from the Society’s membership rolls.
Listen up, Your subscription expires if . . . Paper Money • July/August 2012 • Whole No. 280 247 Table 1: Bank of Louisiana issues of May 22, 1862 and June 14, 1862 Paper Money • July/August 2012 • Whole No. 280248 Table 1: Bank of Louisiana issues of May 22, 1862 and June 14, 1862 (continued) Paper Money • July/August 2012 • Whole No. 280 249 N O B O D Y does paper money better than PAPER MONEY • best reproduction • best audience • best rates . . . IN FULL LIVING COLOR, too! If you REALLY want to sell your killer notes . . . not just admire them in your inventory, this is . . . THE PLACE Discover . . . YOUR pot of gold HERE! Advertise in PAPER MONEY The sampling has provided the following information: 1. Only two dates from this period were seen: May 22, 1862 (20 notes) and June 14, 1862 (11 notes). No correlation appears between serial number and issue date; also see item 4 below. 2. Different designs for the same denominations were used for both dates. Based on Haxby the notes were essentially retreads of notes issued before the war and apparently ready in the bank’s vaults. 3. The Forced Issue overstamps were used for both dates without apparent pattern. Each type was sometimes printed with the overstamp and some- times not. The overstamp is quite common and was applied to both the left (8 notes in the sample) and right side (15 notes in the sample) of the note. There is no clear correlation between the serial number and the over- stamp. 4. The folio numbers, used by the bank, I think simply to keep track of the forced issues, usually consist of a range of small numbers like 1 or 2 or 16- 18. They are hard to characterize with such a small sample size. For exam- ple, shown here is the part of Table 1 dealing with the $5 note (Eagle vignette, Haxby LA-75-G10) dated May 22, 1862: Serial Folio 605 35 1118 15-18 1640 38-39 2028 15-16 2560 No overstamp 2735 15-18 Now if we add the two eagle $5 notes dated June 22, 1862: Serial Folio 910 16-18 1760 1-6 3616 No overstamped The folio numbers do not obviously correlate with serial number; it seems as if the folio numbers were done after the serials and issue dates were randomized Paper Money • July/August 2012 • Whole No. 280250 Table 1: Bank of Louisiana issues of May 22, 1862 and June 14, 1862 (continued) Paper Money • July/August 2012 • Whole No. 280 251 from being in circulation. We see that the 910 serial of June 14, 1862, falls between the 605 and 1118 of May 22, 1862, with a folio of 16-18 similar to the 1118 serial’s folio of 15-18. This might imply that the notes were overstamped after June 14, 1862. This would explain why some issued notes have no overstamp; perhaps notes not overstamped were simply not culled out of the notes in circulation. Another pos- sibility is that these notes were still in the bank’s vaults whereas only a fraction of the bank’s vault holdings were overstamped. Both explanations would mean that the overstamps were applied after June 14, 1862, perhaps in the summer of 1862. III. Further Historical Information We can put the dates May 22, 1862, and June 14, 1862, in further historical context. As mentioned above New Orleans surrendered April 28, 1862, to Union forces commanded by Admiral Farragut. On May 1, 1862, General Benjamin “Beast” Butler became the Union Major General in charge of the occupation of New Orleans. He began to issue orders at once including several related to the currency situation. His first proclamation (number 1) was issued the same day he took com- mand and included: The circulation of Confederate bonds, evidences of debt (except notes in the similitude of bank-notes) issued by the Confederate States, or scrip, or any trade in the same, is forbidden. It has been represented to the commanding general by the civil authorities that these Confederate notes, in the form of bank notes, in a great measure, are the only substitutes for money which the people have been allowed to have, and that great distress would ensue among the poorer classes if the circu- lation of such notes should be suppressed. Such circulation, therefore, will be permitted so long as anyone will be inconsiderate to enough to receive them, until further orders. On May 16, 1862, General Butler ordered that Confederate money and New Orleans scrip be withdrawn as of eleven days later, on May 27. This created a shortage of notes that the Bank of Louisiana’s forced issues of May 22, 1862, and June 14, 1862, presumably sought to alleviate. On May 19, 1862, General Butler issued his infamous General Order 30. Its provisions included: Ordered: I. That the several incorporated banks pay out no more Confederate notes to their depositors or creditors, but that all deposits be paid in the bills of the banks, United States treasury notes, gold, or silver. II. That all private bankers, receiving deposits, pay out to their depositors only the current bills of city banks, or United States treasury notes, gold, or silver. The need for the banks to issue their own notes is clear. There were still more proclamations but the above is indicative of the nature of General Butler. Eventually the Confederate government and people denounced the general. This occurred after “Beast” Butler proclaimed the following: General Orders, No. 28. HDQRS. DEPARTMENT OF THE GULF, New Orleans, May 15, 1862. As the officers and soldiers of the United States have been subject to repeated insults from the women (calling themselves ladies) of New Orleans in return for the most scrupulous non-interference and courtesy on our part, it is ordered that hereafter when any female shall by word, gesture, or movement insult or show contempt for any officer or soldier of the United States she shall be regarded and held liable to be treated as a woman of the town plying her avocation. Paper Money • July/August 2012 • Whole No. 280252 Major General Butler (from http://en.wikipedia.org/wiki/File:B enjamin_Franklin_Butler_politi- cian_-_Brady-Handy.jpg) 253Paper Money • July/August 2012 • Whole No. 280 By command of Major-General Butler: GEO. C. STRONG, Assistant Adjutant-General and Chief of Staff. IV. Additional Hypothetical Reasons the Forced Issue Notes were Issued The Narbeth explanation for the Forced Issue notes was that Butler simply forced the banks to issue extra notes shortly after his arrival. However, I don’t think that is the whole story since both overstamped and non over- stamped notes exist today in large numbers. There are a few other possibilities for why the forced issue notes were produced. The Bank of Louisiana was forced to hand over $245,760 as a result of Order Number 30, described above. The bank protested but capitulated when General Butler threatened the bank and gave the directors but six hours to yield upon their corporate and individual peril. Perhaps the notes to meet Order 30 requirements were the over- stamped notes. Another possible reason the bank overstamped its notes was when General Butler fined the collective banks in New Orleans in order to pay living expenses for the large number of black refugees who were there for the duration for the war. This occurred in August of 1862 and fits the timetable of the notes well. V. Conclusions By 1863 seven of New Orleans’ thirteen banks had been forced to shut down because of the treatment by General Butler and others and because the Confederate Government had earlier removed $4,000,000 in bullion. In a mere three years New Orleans had changed from one of America’s richest cities to near destitution. The Bank of Louisiana did better than most and became part of the Louisiana National Bank of New Orleans which was formed in 1864. Chamber pot produced in the South with General Butler having a prominent place Haxby LA-75-G10-c Paper Money • July/August 2012 • Whole No. 280254 Haxby LA-75-G32-a Haxby LA-75-G16-d Haxby LA-75-G22-a 255Paper Money • July/August 2012 • Whole No. 280 References Used Caldwell, Stephen A. A Banking History of Louisiana. Baton Rouge: Louisiana State University Press, 1935 (Reprinted by Criswell’s Publications: Ft. McCoy, FL, 1977). Gardner, Charles. New Orleans Directory.New Orleans: C. Gardner, 1861 Haxby, James. Obso lete Bank No tes Louisiana 1782-1866. Iola, WI: Krause Publications, F+W Medias, Inc, 2009. Narbeth, Colin and Simon Narbeth. Collecting Paper Money, A Beginners Guide. Cambridge, UK: The Lutterworth Press, 2010.
Haxby LA-75-G30-c Author DeGennaro provides update on Gilbert paper article Publication of author Steven DeGennaro’s article on the Gilbert paper Federal Reserve notes in the last issue, chased this anonymous fol- lowup that the author shares with Paper Money readers. “I received this attachment from a member of the SPMC after reading the article in Paper Money concerning the Gilbert Note,” DeGennaro wrote. Paper Money • July/August 2012 • Whole No. 280256 CANADA'S TIMELY CHANGEOVER TO POLYMER FOLDING MONEY for all five formerly-paper denomi-nations is, in one sense, approaching the half-way point, with proposed release of great quantities of the QueenElizabeth II $20 later in 2012. Recently distributed $100 and $50 polymer notes have, as was intended, virtually replaced their paper counter- parts in cash registers, wallets, and purses of the nation. That fact notwithstanding, Canadians in great numbers have yet to experience the tough slipperiness of the Australian-developed polymer plastic or to scrutinize the see-through or related properties that have enhanced note security in roughly 30 countries up to the present time. Canada's convenience stores, fast-food purveyors, and other such small businesses, have shown an established aversion to higher-denomination currency, and not solely due to perceived risk of being “stuck with” larger counter- feits. Simply being able and ready to change $100s and $50s might suggest that excess cash is routinely kept on premis- es. Canada's polymer $100 reached the general pub- lic last June--from the teller's cage, not from Automatic Teller Machines (ATMs). The polymer $50, in turn since March has been, and is being, dispensed by ATMs, achiev- ing a significantly higher level of circulation. Three fur- ther polymer denominations are to follow, the olive green $20 by the end of 2012, and the $10 and $5 in 2013, com- pleting the set of notes and making Canada's folding money 100 per cent polymer. Notes of $2 and $1 denominations already have given way to largish, somewhat bulky coins. As a signifi- cant though unrelated change, Canada has announced that it will cease to strike its 1-cent coin, now trivially valued. Notes from North of the Border By Harold Don Allen Completion Rapidly Approaching In Polymer Currency Switchover 257Paper Money • July/August 2012 • Whole No. 280 Polymer notes now in circulation depict Sir Robert Borden on the $100, William Lyon Mackenzie King on the $50. Notes still to be released will feature two other prime ministers, Sir John A. Macdonald on the $10, and Sir Wilfrid Laurier on the $5. These four political figures, appearing or to be appearing in plastic, have been identified, in the pub- lic mind, with these note denominations for some decades. Canada previously had considered polymer for all or some denominations, but had rejected the idea as unduly costly, Canadian newspapers have revealed. Actual cost has been 19 cents for a polymer note, having more extended life expectancy (five years versus 2 years) according to one report. The selection and assembly of components for a sophisticated modern currency note, face and back, must rep- resent an enormous challenge, one which teams of artists and craftsmen are increasingly succeeding in meeting. Students and collectors of world polymer acutely sense this. I anticipate with great interest issues, subjects, or themes which have been announced with technical details yet to be revealed. Our new $10 is to feature the coast-to-coast, east-to-west rail links that serve to bind Canada as a nation. Now, through Dominion of Canada [Finance Department] notes ($2, 1870; $5, 1912); Bank of Canada ($2, 1935 and $10, Earlier Canadian $50 notes. Paper Money • July/August 2012 • Whole No. 280258 1937), and chartered Bank releases (representatively, Bank of Toronto) the $20 classic, steam and diesel have been assured their due recognition; Bank of Hamilton, Stadacona Bank, and Weyburn Security Bank. As to portraiture on paper money--and now on polymer--we find bank officers, political figures, historical enti- ties. Much portraiture on Canadian currency I've found to be distinctly good: comparing oil paintings in the board room. What of the individuals behind the portraits? Bank histories can be self-serving, but composite images do emerge. On a whim I looked up the prime minister from my boyhood, Mackenzie King. The internet wikipedia listed literally scores of book-length references. Which set me thinking . . . Mackenzie King's first appearance on a $50 had been prompted by a state of distress, by extensive counterfeiting of Canada’s Queen Elizabeth $50 issue, dated 1954 and still in service post-1970. Drastic consequences of this forced replacement called for destruction of an unissued third (C/H)series, literally millions of notes, it now appears. History may repeat itself--in polymer. And who can say what surprises the future years can bring. Never a dull moment, you might say.
Representative fifty-denomination notes from Belgium, Gibraltar, and Switzerland. Paper Money • July/August 2012 • Whole No. 280 259 DURING THE 1930s SCRIP EXPERIMENTS FLOURISHED IN THEUnited States in response to the economic crisis. The most successful dur-ing this period was tax anticipation scrip. Issued by nearly 100 munici-pal governments across the United States, tax anticipation scrip func- tioned as a form of short-term credit that enabled governments to meet payrolls, pay vendors, and otherwise make up for shortfalls in the tax receipts from economically- strapped communities. Such scrip gained its acceptability from the prospect of recip- ients being able to use the scrip to pay their obligations to the governments that issued it. This assured that it circulated for a far longer time—even into the early 1940s—than any other variety. Such scrip served as a flexible adjunct to the national money supply until normal fiscal conditions returned. How Tax Anticipation Scrip Came About Tax anticipation scrip grew out of the routine fiscal practices of American municipal governments. Local taxes, typically leveled upon various forms of proper- ty, were collected at specific points during a fiscal year; in contrast, public disburse- ments to meet payrolls and payments to vendors flowed continuously. As a result of this mismatch between the timing of revenue collection and expenditures, some sort of borrowing facility was necessary to manage municipal expenditures. In normal times, this could be done either by short-term financing from local banks, or in larg- er cities by the sale of tax anticipation notes to investors. In effect, tax anticipation financing provided a source of short-term credit that solved a typical problem of municipal finance. While a common financial practice, borrowing against anticipated taxes was upended by the economic crisis of the 1930s. By 1933 some two thousand municipal governments had defaulted on payments of interest or principal on their debts, and only the largest cities retained at least some access to short-term financing through the nation’s capital markets. To relieve these pressures, a number of state legislatures authorized the use of tax anticipation financing in the form of scrip. Governments could pay this scrip to employees and vendors in place of warrants made out in odd amounts and payable to particular parties. While these instru- ments could not be redeemed immediately for standard funds, they often bore an interest rate (which enhanced the willingness of recipients to hold them) and could be used to pay current or delinquent taxes. The funding of public schools via property taxes was an important function of local governments, and some scrip issues were explicitly labeled “school scrip,” issued to pay teachers’ salaries and acceptable for school taxes. For example, in 1931 Michigan authorized local governments to issue interest-bearing tax anticipation notes, setting up a “Loan Board” at the state capital that would approve the applications of local school boards to issue scrip. In New Jersey, even as the County of Atlantic issued “school scrip” on behalf of school districts in Atlantic City and Ventnor, these communities in turn put out their own separate municipal scrips that circulated concurrently. Tax Anticipation Scrip during the Great Depression By Loren Gatch Paper Money • July/August 2012 • Whole No. 280260 Whether specified as school scrip or paid out for other obligations, local governments created forms of local currency out of the prevailing practices of short- term municipal finance. Authorized by state legislatures, municipal governments of different sorts—counties, cities, townships, boroughs, school districts—leveraged their powers to tax in order to sustain local scrip circulations. These circulations had the simultaneous effects of increasing the purchasing power of governments (thus avoiding layoffs and further curtailment of services) and improving the rate of tax- payer compliance by giving citizens an instrument redeemable in their own civic obligations. Scrip Experiences While there was no single formula for issuing municipal scrip, Detroit’s issues were the single largest example, and its experiences illustrate some common challenges and responses. The depression had hit the city particularly hard, reversing dramatically the automobile-fueled boom of the 1920s. Tax arrears collided with spending for relief, and Detroit’s deficit yawned. On the verge of an agreement with a syndicate of banks to fund the deficit, Detroit was forced into default when the state banking holiday of February 24, 1933, deprived the city of the banks’ resources. At this point, Detroit resorted to scrip as a substitute for short-term bank financing. On April 5, the Michigan state legislature hurriedly passed the “Wayne County Scrip Bill” which amended the existing authority of municipalities to use tax anticipation notes so that such debt could be issued as circulating scrip. While available to all counties and municipalities in the state, the bill was intended primarily to meet the fiscal emergency in Detroit. The city set up a “Scrip Bank” in the Union Guardian The County of Atlantic circulated school scrip for schools in Atlantic City, NJ and Ventnor City, NJ Paper Money • July/August 2012 • Whole No. 280 261 Trust Building where the new medium would be disbursed and received. Between April 1933 and April 1934, three separate issues of scrip totaling $41.9 million fund- ed the city’s deficit. The first $18 million issue came out in April and May of 1933. Backed by the prospective receipts of the 1933-1934 tax levy, Detroit’s attractive new currency bore a maturity date six months after the issue. It paid 5% interest, though was made callable ten days after an official notice of intent was published by the city. By city ordinance discounting of the scrip was made an offense, though this feature seemed to have no practical significance. Paid out to city employees and vendors, scrip was acceptable at par plus accrued interest for current and delinquent taxes, water utility charges, and other city fees. These features of Detroit’s scrip were consistent with the guidelines laid out by the state legislation that authorized Michigan cities to issue municipal scrip. Indeed, the state law permitted maturities of up to one-year, and an interest rate up to 6%. Scrip issues in Michigan were limited to 85% of the amount of current taxes due, 60% of delinquent taxes, and 25% of future taxes. A second Detroit issue of $10 million was emitted in September 1933, but improved cash collections allowed the city to call the scrip for redemption in January 1934. Circumstances nonetheless required a third and final emission of $13.9 million in April 1934, though with the return of more normal financial conditions, Detroit was soon able to resume short- term borrowings from banks. Indeed, $1million of the final scrip issue was simply sold as an investment to a bank at par plus accrued interest. W.H. Rickel, Cashier (L) and Charles Williams, City Treasurer (R) at the Detroit City Scrip Bank Paper Money • July/August 2012 • Whole No. 280262 Detroit’s experience was repeated by more than 40 other taxing authorities in Michigan. Most of these circulations, like Detroit’s, were retired by 1934, though some of the more financially-precarious school districts (Ferndale, Lincoln Park, and several townships in Oakland County) continued to use scrip as late as 1936. For the city of Owosso, economic conditions as well as public funds locked away in closed banks led to three different types of scrip, one issued briefly by local merchants, one by the city government, and one by the school district. In Benton Harbor, similar circumstances forced both the city and the school board to resort to scrip. City of Detroit scrip. (Source: Depressionscrip.com) City of Lorain, OH scrip. Paper Money • July/August 2012 • Whole No. 280 263 Laws passed by the Ohio and New Jersey legislatures set in motion substan- tial scrip issues in those states as well. In Ohio, the Marshall Act of April 15, 1933, authorized counties, upon application to the State Tax Commission, to issue scrip if tax receipts fell below 90% of the anticipated amount. Non-interest-bearing scrip would then be apportioned by county auditors to the municipalities that applied for it in proportion to the amounts of their tax delinquencies. Scrip could remain in cir- culation for a maximum of five years and its redemption occurred through tax pay- ments only. New Jersey’s law, passed a month earlier, also extended the existing authority of counties and municipalities to issue tax anticipation notes to include small-denomination bearer scrip. As in Michigan, interest payable on New Jersey’s scrip was capped at six percent. By early 1933, New Jersey’s finances had entered a state of crisis similar to Detroit’s. To maintain their operations, New Jersey munici- palities developed an extensive network of scrip circulations which, by the end of 1934, encompassed 8 counties, 11 cities, 3 towns, 11 boroughs, and 10 townships, all of which together issued nearly $27 million in scrip. Details from Monmouth County illustrate how New Jersey’s scrip system worked. Between September 1933 and September 1935, the County’s Board of Chosen Freeholders authorized 14 issues each of $200,000 in scrip, bearing 5% interest, payable at maturity in 1937. The County Treasurer’s office installed a spe- cial teller window to handle all scrip transactions. Scrip turnover was rapid. By January 1934, of $600,000 issued, some $340,000 had been paid-in in taxes, leaving a scrip liability of $260,000 as the year began. Six more scrip issues of $200,000 each were paid out through November 1934. On December 1, 1934, about $955,000 of this scrip had been redeemed through tax payments. By June 1935, when the Freeholders announced their 13th issue, the County had put out $2.4 mil- lion all told, of which only $380,000 remained outstanding. In effect, by issuing scrip Monmouth County was making each citizen a tax collector. Other advantages became apparent. Scrip paid in before 1937 accrued no interest, so the County saved on charges that would have been owed on bank financing. Moreover, instead of accumulating delinquencies, Monmouth taxpayers not only paid off arrears but met their 1934 obligations in full. Of fifty different tax districts within the County, all accepted the County’s scrip, as did utilities and out- side vendors. No discounting of scrip was apparent, at least for the early issues. Within the County, local governments replicated this success. Of $150,000 issued by the city of Long Branch, only $8,500 remained unredeemed before a December 1934 maturity date. Officials in Asbury Park claimed its scrip saved the city $22,000 in interest charges which would otherwise have been due to banks. In the tiny bor- ough of Union Beach, scrip was returned to the treasurer for taxes as rapidly as one day after its issue. After some initial problems with the discounting of its scrip, the summer resort of Ocean City (Cape May County) quickly circulated and retired most of a $150,000 issue between March and June 1933. Local merchants organized to find Benton Harbor, MI scrip. Paper Money • July/August 2012 • Whole No. 280264 ways of getting scrip to those needing to make tax payments. Building and Loan companies took the scrip for mortgage payments, as did utilities for their fees. Chain stores were less obliging. Many merchants limited their acceptance of scrip to pur- chases by city employees only, or confined its use to paying customers’ overdue bills. Other merchants accepted scrip only up to the amount of their own tax liabilities. Change for the scrip was often made in store credit, not cash. Cape May County added to local currency supplies with its own scrip circulation in May 1933. Under state law, municipalities were required to accept county scrip (in addition to their own scrip) up to the amount they owed their counties in taxes. In addition, the scrip was good for fines and fees collected by the counties. County scrip was thus useful locally, within limits. In late 1933, the city of Red Bank, which itself did not issue scrip, accepted Monmouth County scrip in tax payments up to the $54,000 it was obliged to remit to Monmouth County. For simi- lar reasons, the city of Matawan limited its acceptance of Monmouth County scrip to 20% of taxes owed. Legal Scruples Municipal officials during the 1930s were not unmindful that their scrip issues had legal implications, and had to design them to keep them within the law. As the American Legislative Association pointed out to its members, the federal con- stitution explicitly forbade only state bills of credit; the emissions of governmental units below the state level were not presumptively unconstitutional. In order to min- imize the possibility of tax anticipation scrip being construed as money, the Association advised that state laws permitting scrip “should not contain any wording which might indicate a legislative intention to provide a currency.” Creating a cur- rency that was not legally a currency required some legal creativity. Beyond the obvi- ous admonition to not make the scrip look too much like U.S. currency, states were advised to incorporate a number of features that differentiated it from legal money. Among other things, states were advised not to make scrip a general or even a limit- ed legal tender; in contrast, making scrip acceptable for payment of state and local taxes arguably served to facilitate the scrip’s redemption, and not to promote its cir- culation as money. Mandating its cancellation upon payment into municipal trea- suries (rather than allowing it to be reissued) stressed scrip’s purpose as a means of paying municipal debts, rather than as a circulating medium. Securing scrip with the good faith and credit of a state implied the scrip was an obligation of the state as a sovereign entity; better, states were advised, to make scrip the obligation of a specific state agency and secured by the pledge of specific revenue streams, assets or proper- ties. Finally, making scrip interest-bearing, and specifying a date of maturity, under- scored its character as an evidence of debt, and not an illegal issue of currency. How Well Did Tax Anticipation Scrip Work? In practice, the success of municipal scrip experiments was due less to spe- cific features of a given issue than to the overall volume of issues, relative to the com- mitment of stakeholders, and the economic circumstances that occasioned scrip’s use. Detroit managed to issue and circulate more than $40 million in scrip for a year and a half. The city paid employees 20% in cash and the rest in scrip, though vendors were paid entirely with the latter. It issued scrip both in more conveniently lower denominations (down to $1) to facilitate retail transactions, and in higher denominations (up to $1000) to provide large holders of scrip such as retailers the opportunity of exchanging many low denomination notes for the convenience of a smaller number of the higher-denomination variety. These could be then held either as interest-bearing investments (as bonds), or used in payment of city taxes. While in the early days Detroit’s scrip traded as low as 75 cents on the dollar, this discount soon shrank as business leaders set up a $1 million fund to support the scrip at par. Additionally, the establishment of exchange bureaus where retailers could exchange Paper Money • July/August 2012 • Whole No. 280 265 their scrip for cash from large taxpayers, who then used it to pay their taxes, also tended to minimize the discount. Interestingly, these exchanges had to take place at locations outside of Detroit’s city limits, since the City Council had deemed the dis- counting of scrip illegal! These measures, combined with a successful bond refund- ing in June 1933 and a brighter outlook for tax collections, returned Detroit scrip to par. Other, larger scrip issues elsewhere made use of similar arrangements. To sustain its circulation of $880,000 in municipal and board of education scrip, Grand Rapids (Michigan) created a “Revolving Fund” of $150,000 in cash which it used to purchase scrip from sources that had accumulated excess supplies. The Fund’s director canvassed the city’s retail establishments to determine where these excesses were building. Although they were separate taxing authorities, the city and the board of education agreed to accept each other’s scrip for city and school taxes (a similar arrangement involving the water utility prevailed in Flint, Michigan). Grand Rapids merchants and manufactures also encouraged the circulation of scrip by paying their own employees 20% of their wages in scrip. In Lorain (Ohio), industries purchased scrip for their own payrolls directly from the city. Mobilization of public and business support also bolstered the acceptabili- ty of scrip circulations. For example, in Birmingham (Michigan), the school board organized campaigns to encourage the use of school scrip as measure of support for local schools, and teachers’ clubs marketed it as an investment. Milwaukee’s “baby bonds” overcame early problems thanks to firm leadership by the city’s feisty social- ist mayor, Daniel Hoan. Facing hostility by bankers and large merchants to city scrip, Hoan organized city employees to keep them from selling their scrip salaries to speculators at a discount; those retailers willing to take scrip were given public recognition and patronage by city employees, and their example pressured other retailers to cooperate with the scrip plan. Initial discounts of 88 cents on the dollar soon disappeared, and the city’s interest-bearing scrip became sought after as an investment. Ocean City (New Jersey) promoted its scrip by accepting it at a 1% pre- mium for timely tax payments, and stood ready to exchange $500 blocks of scrip for tax anticipation notes that paid a higher rate of interest. The Red Bank (New Jersey) Chamber of Commerce encouraged local businesses to pay scrip to those employees with property tax bills; likewise, businesses leasing property were directed to pay rents in scrip to owners with similar obligations. Businesses’ support for scrip could also give them some leverage over municipal finance. Atlanta’s scrip faced a shaky start in 1932, when the banks would not accept it, until the city’s mercantile establishment, led by Walter H. Rich, President of Rich’s Department Store, united around a plan to accept scrip partly in exchange for cash, partly in exchange for goods. Henceforth the merchants held an effective veto over the use of scrip in city finances, withholding for exam- ple their support for a second scrip issue in 1933, which the city government attempted even as redemption of the 1932 issue remained incomplete. In most examples, municipalities paid out less than 100% of their wages and salaries in scrip, which provided practical support to its value. The proportions of scrip varied—80% in Detroit, 54% in Paterson (New Jersey), 60% in Americus (Georgia), 66 2/3% in Pontiac (Michigan), 50% in Milwaukee, and 65% in Dayton—and seemed to be more a function of the available cash rather than any other consideration. Atlantic City paid the first $10 of its employees’ wages in cash; all wages above that were paid 85% in scrip. By 1935, Atlantic City reduced scrip portion of wages to 50%, and only for paydays in the second half of the month. Royal Oak (Michigan) which had a comparatively long run of scrip (1931-1936), varied the percentage of scrip issued in wages and salaries from 25% to 75%, depending upon the amount of cash on hand. Guilford County, North Carolina, used scrip for 100% of wages, but only because local banks remained closed through most of 1933 and communities there were desperate for any kind of circulating medium. Guilford County issued fractional denominations that minimized the practical problems of making small change. Otherwise, having at least some wage Paper Money • July/August 2012 • Whole No. 280266 payments made in cash did lessen the problem of people spending scrip simply in order to receive change in cash, and reduced the need to produce large supplies of the lowest-denomination bills. Tax anticipation scrip issued by municipalities suffered at most relatively modest discounts against standard funds. The discount on Detroit’s scrip was initial- ly large, but momentary. In his 1948 survey of 74 issues of municipal scrip, the economist Joel Harper found that at least 19 experienced discounts of up to 10%. While Harper gave no specific reasons for these discounts, scattered anecdotal evi- dence suggests some characteristic causes of discounting. Milwaukee’s scrip plan was pushed through in a hostile environment where businesses first opposed it. In Atlantic City, resistance by small retailers caused the discount on scrip to widen to as much as 20%, although the larger resort hotels stepped in to exploit this discount in order to meet their own tax burdens. As the date of redemption for, and payment of interest on, Atlantic City scrip neared, its notes traded as high as $1.07. As Monmouth County issued $200,000 in scrip month after month for two years, by 1935 the emergence of a 5% discount suggested some degree of popular fatigue with the device. Paterson’s (New Jersey) scrip fell to a discount after local banks refused to handle it. The school scrip of Wildwood (New Jersey) was boycotted by local merchants until the city made it acceptable for its own taxes. Although supported by its mercantile community, Atlanta’s scrip did trade at a discount of at least 5% outside of the major retailers. The Legacy of Tax Anticipation Scrip Whether scrip was interest-bearing, callable, or backed in a particular way was less important to its success than the credibility of its management. Scrip would be retired once municipalities returned to a cash basis. Given that defaults on exist- ing debts had precipitated the turn to scrip in the early 1930s, it was understandable that future refunding of these debts would involve retiring municipal scrip as well. Thus, an agreement between Monmouth County and its bankers in July 1935 com- bined a refinancing of the county’s maturing debt and the redemption of its out- standing scrip into a twenty-five year bond at an interest rate lower than that paid on the scrip. In 1936, Atlantic County negotiated a similar agreement with a bond- holders’ committee that paired the refunding of its defaulted debt with a cessation of scrip issues. Within Atlantic County, Atlantic City, which had experienced the largest municipal default in New Jersey, reached a separate agreement with its credi- tors shortly thereafter. That scrip was never intended to function as a permanent element of municipal finance may have conditioned the attitude of participants towards its use. Employees who took the scrip in wages, retailers who accepted it in payment for their wares, and governments who received it back as tax payments perhaps dis- played greater forbearance towards its use, knowing that scrip was a temporary expe- dient dictated by the economic crisis. For their part, municipal finance experts evinced ambivalence towards scrip, since these experiments had evolved out of short- term borrowing practices that skirted the edge of fiscal responsibility. Despite scrip’s successes, its significance as a monetary medium was widely downplayed. By 1934 these experts had united around a set of ‘best practices’ for the use of tax anticipa- tion scrip that defined it as a financial, rather than monetary, phenomenon which would disappear once healthier tax receipts would allow governments to return to a cash basis. (A longer version of this article is forthcoming in the International Journal of Community Currency Research http://www.ijccr.net/IJCCR/IJCCR_Home.html) References American Municipal Association. Municipal Scrip. A Report of Experience. Report No. 90. Chicago, IL: American Municipal Association, May, 1934. Paper Money • July/August 2012 • Whole No. 280 267 Brown, Vernon L. Scrip and Other Forms of Emergency Currency Issued in the United States during the Great Depression, Two Vols. Thesis, Graduate School of Business Administration, New York University, 1941. Business Week, “Scrip Problems” vol. 33 (July 22, 1933), p 33. Chatters, Carl H. (1933a) “Is Municipal Scrip a Panacea?” Public Management, XV (March, 1933), pp. 74-76. Commercial and Financial Chronicle, “State and City Department,” April 22, 1933, pp. 2826-7 Curto, J.J. Michigan Depress io n Sc rip o f the 1930s, American Numismatic Association, 1949. De Young, Chris. Budgeting in Public Schools. Garden City, NY: Doubleday, Doran, 1936. Elvins, Sarah. “Scrip, Stores, and Cash-Strapped Cities: American Retailers and Alternative Currency during the Great Depression,” Journal of Historical Research in Marketing, 2 (2010), pp. 86-107. Harper, William Canady Joel. Scrip and Other Forms o f Lo cal Money. Ph. D. Dissertation, University of Chicago, September, 1948. Hoan, Daniel W. City Government. The Record of the Milwaukee Experiment. New York: Harcourt, Brace and Co, 1936. Ludwig, C. C. “Experience with Tax Anticipation Scrip,” Public Management, XVI (June, 1934), p. 174. Mitchell, Ralph A. and Neil Shafer. Standard Catalog of Depression Scrip in the United States. Iola, WI: Krause Publications, 1984. Mott, Rodney L. State Scrip. Chicago, IL: The American Legislators’ Association, 1933. National Munic ipal Review, “Baby Bonds and Increased Tax Collections Save Milwaukee,” Vol. XXIV, no. 1 (January, 1935), pp. 48-9. _______. “Atlantic City Scrip Still in Use,” XXIV (July, 1935), p. 405. New Jersey Legislature. Senate and House Committees on Taxation. Report on a Study of the Financial and Tax Problems of Municipal Governments in New Jersey. 57th Legislature. August 29, 1933. New York Times. 1933-1936 various dates. Noble, Richard A. “Paterson’s Response to the Great Depression,” New Jersey History, 96 (February, 1978), pp. 87-98. Ocean City [New Jersey] Sentinel-Ledger, 1933 various dates. Red Bank [New Jersey] Register, 1933-1937 various dates. Roberds, William. “Lenders of the Next-to-Last Resort: Scrip Issues in Georgia During the Great Depression” Federal Reserve Bank of Atlanta Economic Review, Sept.-Oct.. 1990, pp. 16-30. The American City. “Municipal Scrip Aids City Financing,” XLIX (April 1934), p. 79. _______. “Tax-Anticipation Scrip Shows up Best,” XLIX (June, 1934), p. 93. The [Benton Harbor, Michigan] News-Palladium, 1933 various dates. The Owosso [Michigan] Argus-Press, 1933 various dates. The Toledo City Journal, “The Marshall Bill Explained,” XVII (April 22, 1933), pp. 137-8. United States Conference of Mayors. Municipal Notes and Warrants. Chicago, IL. April, 1933. Wall Street Journal, 1933-1936 various dates. Wengert, Egbert S. Financial Prob lems o f the City o f Detro it in the Depression. Report No. 151. Detroit Bureau of Governmental Research, Inc., September, 1939. v Paper Money • July/August 2012 • Whole No. 280268 NOBODY CAN EVER LEAVE ANYTHING ALONE, PARTICULARLYspellers. That is the point of this column. People often feel compelled toupdate the spelling of their towns, so this has led to some great varietycollecting opportunities for National Bank Note buffs. What follows is a small sampling of the many unusual occurrences that can be found on National Bank Notes. Tuskaloosa/Tuscaloosa Let’s start with a simple example: Tuscaloosa, Alabama. Maybe you knew that originally it was spelled Tuskaloosa. We didn’t, and they both sound the same to us. The change came before the Merchants National Bank was organized in 1887, yielding the spectacular large size threesome set illustrated here. The Paper Column By Peter Huntoon & Bob Liddell Spelling Created Trouble with Nationals The town started out as Tuskaloosa (above) and ended up Tuscaloosa (opposite). However, The First National Bank never caved. It retained the traditional spelling to the end! Paper Money • July/August 2012 • Whole No. 280 269 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 Paper Money • July/August 2012 • Whole No. 280270 Muscogee/Muskogee The same thing happened to Muscogee but in reverse! Getting spellers to go in the same direction is akin to herding cats. Now the place is spelled Muskogee! The change there came just after Oklahoma was admitted into the union in 1907. This caused some interagency heat! The Comptroller ordered the Bureau of Engraving and Printing to alter all the Oklahoma and Indian territory plates to Oklahoma state. Muscogee was in Indian Territory, so the 5-5-5-5 and 10-10-10-20 Series of 1882 plates for The First National Bank were duly altered in December 1907, and the first printings from them were respectively received at the Comptroller’s office on February 1 and 3, 1908. The change in spelling to Muskogee was approved through a formal title change on February 14, 1908. But by then the first state notes had been printed, so the town on them was misspelled! Those printings had to be canceled, the plates modified once again, and new printings made. Shown are proofs from the same $5 plate in its three manifestations. Notes are possible only from the first and third varieties. The change in spelling impacted The Commercial National Bank as well, charter #5236. While they were fixing the plates for The First National Bank, the Comptroller also had the BEP update the spelling on the plates for The Commercial National. This was accomplished in April of 1908. However, the officers of The Commercial National didn’t file for a formal title change to reflect the new spelling until they extended their charter on July 24, 1919. That was eleven years later! Why the delay? Well, in 1908 the bank was utilizing three plates, a 5-5-5-5, 10-10-10-20 and 50-100. The cheapskate bankers wouldn’t file for a title change to fix the spelling because they didn’t want to take the chance of triggering charges of $75 for each of the new four subject plates, and $50 for the new two subject plate! The Comptroller’s clerks already had authorized the change informally so it was a fait accompli. The government stuck itself with the tab for doing the good deed. The cagey bankers figured that by waiting until they extended their bank in 1919, they could apply for the title change then, and get the new spelling for free on their new Series of 1902 plates which they were forced to pay for anyway! Getting back to The First National situation. The first printings of state 5- 5-5-5 and 10-10-10-20 brown back sheets from the altered territorial plates with the old spelling already had been shipped during the first three days of February, 1908. These had serials U978484U-U978608U, 1-125, and V6402V-V6501V, 1-100, respectively. Those sheets were canceled and replacements with the new spelling were requested from the Bureau. The Bureau personnel altered the plates, and reprinted the sheets using the identical bank and treasury serials as on the original shipment. However, the trea- sury serials for the old spelling already were logged into the Comptroller’s receipts ledger. When the new sheets were delivered March 31st, the Comptroller’s clerks had to deal with the duplicate 5-5-5-5 and 10-10-10-20 treasury serials. Well, that caused all kinds of consternation. The upshot was that a curt let- ter was sent to the Bureau asking them never to reuse treasury serials again because to do so wrecked the books! The same thing had happened 18 years earlier in March and April 1890 with 625 sheets of 5-5-5-5s for The Peirce City National Bank of Missouri (#4225). In that case Peirce had been misspelled Pierce. Those earlier Peirce City sheets were still causing headaches each time the books were balanced. Now, it was pointed out, between these two situations there was a total of 750 extra 5-5-5-5 and 100 extra 10-10-10-20 treasury serials to con- tend with in the receipts ledgers! To placate the Comptroller’s office, the Bureau dropped 750 5-5-5-5 trea- sury serials V207839V-V208588V and 100 10-10-10-20 serials V273934V- V274033V from use to balance out the duplicates. A letter dated April 7, 1908, from the Director of the Bureau to the Comptroller of the Currency confirming this adjustment is pasted into the Comptroller’s receipts ledger. The dropped entries also Paper Money • July/August 2012 • Whole No. 280 271 are noted in the receipts ledger on April 10th when those serials would have arrived at the Comptroller’s office. The letter is there so future auditors could understand just what had happened! When it was all over, I bet everyone in the BEP and the Comptroller’s office wished that the folks who named their town Muscogee had simply settled for the original name of the Indian Tribe after which they had named the place. The Muscogees used to be known as Creeks. But then someone would have wanted to change the spelling to Kreecs! The spelling changed from Muscogee to Muskogee about the time Oklahoma was admitted to statehood in 1907. The plate was altered to Oklahoma but notification of the change in spelling came too late. The state printing with the old spelling had to be canceled, so the middle variety in this trio is not possible. Paper Money • July/August 2012 • Whole No. 280272 Pittsburgh/Pittsburg In 1892, the recently formed Federal Board on Geographic Names pub- lished its recommendations. The board had been formed to help standardize and Americanize the spellings of geographic names in use on federal documents. One of their recommendations was to drop the “h” from burghs all over the country. Venerable Pittsburgh, Pennsylvania, was specifically targeted. Five banks adopted the modernized spelling: the Federal, Republic, Industrial, Keystone and American nationals. They were organized between 1901 and 1905, but interspersed among them during the same period were the Cosmopolitan, Mellon, Colonial and Washington nationals which used the tradi- tional spelling. The lost “h” did not sit well with some vocal traditionalists because on July 19, 1911, with an effective date of October 11, 1911, Pittsburgh was allowed to retake its “h.” This was accomplished through the good offices of U. S. Senator George T. Oliver, who took an appeal for restoration of the letter on the behalf of the citizens of Pittsburgh to the Board on Geographic Names. It was noted that dur- ing the period when the spelling was in transition, all city ordinances and council minutes retained the “h.” At least National collectors got some nifty varieties out of the deal. Thanks to the Federal Board on Geographic Names, you can have it Pittsburgh or Pittsburg. Paper Money • July/August 2012 • Whole No. 280 273 SPMC NEW MEMBERS - 5/21/2012 13741 Pyong Curlis (C), Website 13742 Kelly Edwards (C), Website 13743 Paul Wright (C), Website 13744 Bohdan Bobjak (D), Website 13745 James Houser (C), Website 13746 Marc Stackler (C), Website 13747 Lois Slovik (C), Website 13748 Cord Polen (C), Website 13749 Dennis Hengeveld (C), Website 13750 John R. Miles (C), Website 13751 Jeff Sullivan (C), Website 13752 Mathew Crupi (C), Website 13753 Owen Linzmayer (C), Website 13754 Alan Kucker (C), Website 13755 Shane Rivett (C), Website 13756 Glenn Graham (C), Website 13757 Charles Derby (C), Website 13758 missing 13759 Robert Paylor (C), Website 13760 missing 13761 Paul Bowles (C), Website 13762 David Kranz (C), Website 13763 Frank Passalaqua (C), Website 13764 Brian Webb (C), Website 13765 Mathew Sanger (C), Website 13766 Ouravanh Phaengsavanh (C), Website 13767 Bruce Thornton (C), Website 13768 Chad Hawk (C), Website 13769 Ralph Olson, 17357 County HWY 31, Frazee, MN 56544 (C, Continentals, Colonial, Fractional), Rob Kravitz 13770 Gene Mitchell, 1225 E. Johnson St, Madison, WI 53703 (C, World), Mark Anderson 13771 Jeffrey St. Cyr (C), Mark Anderson 13772 James Ryan (C), Website 13773 Jack Green (C), Website 13774 Arif Mamedov (C), Website 13775 Robert Leslie (C), Website 13776 Jeffrey Davidson (C), Website 13777 Louis Raffis (C), Website 13778 Benita Kuo (C), Website 13779 Steve Fox (C), Website 13780 Lance Koslowsky (C), Website 13781 Brian Edwards (C), Website 13782 Aable Jewelers (C), Jason Bradford 13783 American Coins 2(C), Jason Bradford 13784 Lorenz Anton (C), Jason Bradford 13785 Dennis Beard (C), Jason Bradford 13786 Charles Boehringer (C), Jason Bradford 13787 Dana Bordsen (C), Jason Bradford 13788 Ronnie Braswell (C), Jason Bradford 13789 Rick Briggs (C), Jason Bradford 13790 David Chan (C), Jason Bradford 13791 John Christensen (C), Jason Bradford 13792 Cedrick Cleveland (C), Jason Bradford 13793 Jim Ewalt (C), Jason Bradford 13794 Marc Freedman (C), Jason Bradford 13795 James Green (C), Jason Bradford 13796 James Gruttadaurio (C), Jason Bradford 13797 Gerald Halle (C), Jason Bradford 13798 David Hammond (C), Jason Bradford 13799 Robert Harper (C), Jason Bradford 13800 Van Hawkins (C), Jason Bradford 13801 John Helm (C), Jason Bradford 13802 Mark Jagielo (C), Jason Bradford 13803 Bryan Jones (C), Jason Bradford 13804 James Kadin (C), Jason Bradford 13805 Wayne Koser (C), Jason Bradford 13806 James Kurpick (C), Jason Bradford 13807 Norman LaPoint (C), Jason Bradford 13808 Philip Leete (C), Jason Bradford 13809 J. 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NEW MEMBERS Membership Director Frank Clark P.O. Box 117060 Carrollton, TX 75011 Paper Money • July/August 2012 • Whole No. 280274 Schellburg/Schellsburg The folks who named Schellburg, Pennsylvania, did their patriotic duty and spelled the place without the “h.” The town was named after a family named Scheller. However, breaking with tradition, they didn’t pluralize it to Schellsburg which also was rather customary. This lapse was tolerated for many years. The First National Bank suffered with the peculiar spelling along with everyone else. Finally the good citizens of Schellburg fixed it by adding the “s.” The title of the bank was altered with the plu- ralized spelling Schellsburg through a formal title change approved by the Comptroller on January 27, 1933! The result makes for a grand collectable pair in the Series of 1929. Vermillion/Vermilion The original spelling attached to Vermillion, South Dakota, utilized a dou- ble “l,” and was the spelling adopted by the officers for The First National Bank of Vermillion, when they organized in 1891. Two “ls” were used on all the notes issued from the bank. The spelling was modified sometime around the turn of the century by dropping an “l,” so that form was used by the officers of The Vermilion National Bank organized in 1904. The one “l” spelling also was used by the officers for The First National Bank and Trust Company of Vermilion, chartered much later in 1929. The spelling caused a bit of confusion for the Comptroller’s office. It appeared with a double “l,” regardless of bank, in the annual reports through 1906, and a single “l” thereafter. The spelling problem continued to plague the Comptroller’s clerks in 1934, when a change in title for charter #13346 was authorized from The First National Pluralization of Schellburg in 1933 led to this very interesting Series of 1929 pair. Paper Money • July/August 2012 • Whole No. 280 275 Bank and Trust Company of Vermilion to First National Bank in. The double “l” spelling was used in the list of title changes in the 1934 annual report. The entry for the new set of logotype plates with the new title, which appears in the billing ledger for 1929 logotype plates, also shows the spelling with a double “l,” even though the spelling for the earlier title appears correctly on the same page. The mystery is what spelling actually appeared on the Series of 1929 type 2 notes with the First National Bank title! We will have to await the discovery of a note with that title to determine just what happened! Only 199 notes with that title were issued, and currently none are reported! The fact is that the spelling for Vermillion, South Dakota, reverted to the double “l” form, which is the standard spelling now employed. The double “l” form is currently used by the post office there. Vermilion appears with single and double “ls.” The spelling in South Dakota began with two “ls,” changed to one after the turn of the 20th century, and morphed back to two near the end of the National Bank Note era. Paper Money • July/August 2012 • Whole No. 280276 There was another note-issuing Vermilion, this one in Illinois. The First National Bank there, organized in 1913, used one “l.” Acknowledgment This work was supported in part by grants from the Professional Currency Dealers Association, Currency Club of Long Island, and Society of Paper Money Collectors. James Hughes, collections manager, provided access to the certified proofs in the National Numismatic Collections, Museum of American History, Smithsonian Institution.
Smith Center, Kansas, appeared earlier as Smith Centre. Fred: What a surprise it was for me when I received the $100.00 check as one of the "First Time Author Award" receipents. I'll figure out some way for it to be used to further this wonderful hobby that we all share. -- Robert Gill First time Paper Money author appreciates recognition Paper Money • July/August 2012 • Whole No. 280 277 MARLIN, TEXAS IS LOCATED IN THE EAST CENTRAL PART OF THEstate, about a hundred miles south of Dallas. It is the county seat of Falls County and was named for John Marlin, a Texas patriot. In the 1890s, while drilling for water, hot mineral water was discovered in the community. This lead to several decades of importance as a healthcare center with hotels, spas, and clinics. It also created a nickname for the city, Mineral Water City of Texas. The population grew from 2,000 in 1890 to 5,000 in 1930 to some 6,000 today. Emma (Adams) Oakden, a native of Texas was born on November 1, 1873. She was a young widow when she married Richard Allen Thomas Reed, a native and resident of Marlin, in the late 1890s. He was widower with seven children. They had two children. Reed was the founding president of the Marlin National Bank (charter #5606) which opened in 1900. He served as president until his death on January 24, 1924. At that time his oldest son, John A. Reed, became president and served until his own death on January 28, 1930. With the death of her stepson, Emma Reed then succeeded to the presiden- cy. In February 1931 the bank consolidated with the Citizens National Bank, a Marlin bank founded in 1925, which had never issued national currency. The result- ing bank was the Marlin-Citizens National Bank, which kept the charter number of the older bank. Emma Reed signed National Currency such as the one shown. According to a Marlin history, a local resident went to the bank on Armistice Day 1932 and, finding the bank closed, spread the news that it had closed permanently. This began a quiet run on the bank which, along with the general depressed economic conditions, forced the bank to close in February 1933. But community residents worked to reopen the bank and in April 1934 a new Marlin National Bank (charter #14114) opened with Mrs. Reed as president. It issued no national currency. She continued as its president until her death in Marlin on August 14, 1951. The bank itself failed in 1987. Sources The history of the community is Marlin, 1851-1976, published in 1976. It mentions the bank on pages 66, 230, 288, with a biographical sketch of R. A. T. Reed on page 335. The accounts of Marlin and Falls County in The Handbook of Texas Online have also been useful.
Mrs. Emma Reed, National Bank President By Karl Sanford Kabelac Emma Reed's facsimile signature appeared on National Currency such as the one shown. (Courtesy Heritage Auctions) Paper Money • July/August 2012 • Whole No. 280278 THE BEGINNINGS OF FARMERSVILLE STRETCHES BACK TO 1845 WHEN JOHN YEARY AND HISfamily moved a few miles west from Hunt County into Collin County. This established the small community of Sugar Hill. In 1854, most of the inhabitants of Sugar Hill moved a few miles southwest to the hamlet of Whitehall. Shortly thereafter, Whitehall was renamed Farmersville in recognition of the occupation of most of its citizens. Farmersville became a trade center for the surrounding farms and smaller communities as it was located on the main road from Jefferson to McKinney. Later on Farmersville was at the junction of two railroads that help cement the town as a shipping point for cotton and cattle. W.S. Aston, Jim Aston, Sam Hamilton, K.M. Moore and E.H. Pendleton established The Exchange Bank in 1885. It was a private bank that started from $12,000 borrowed from a McKinney bank. The bank was in the rear of the Aston Brothers store and the president was Jim Aston. A need for a national bank in town was on the horizon, so a group of investors led by Dr. A.H. Neathery raised the $50,000 needed for capital plus a $5000 surplus. National bank charter #3624 was issued on January 17, 1887. The bank opened its doors on March 12, 1887 with Dr. Neathery as president, Francis Emerson as vice president and L.E. Bumpass as cashier. Mr. Emerson was a founder and an officer of the nearby First National Bank of McKinney, charter #2729. Soon thereafter, the directors of The Exchange Bank voted to merge their institution into the new national bank. Dr. Neathery retired as bank president and member of the board in 1916 due to failing health. The second president was W.S. Aston, a founder of the old private bank in town. He would retire in 1921 and be succeeded by J.E. Pendleton. Mr. Pendleton would serve as president until 1932, when Colonel M.E. Singleton took over until his death in 1938. In the meantime, the bank would go through several changes. On August 6, 1930, the First National went into receivership. The bank would come back as charter #13277 as the First National Bank in Farmersville. The bank absorbed the other national bank in town, the Farmersville National Bank charter #13048, which was the reincarnation of charter #6011, the Farmers and Merchants National Bank. The F&M had passed from the banking scene on April 12, 1927. The First National would also absorb the First National Bank of Nevada, Texas, on February 20, 1934. This ver- sion of the First National Bank would be liquidated on January 28, 1935, and come back for a third time as charter #14212. On September 19, 1986, the bank converted to a state bank charter and changed its name to the First Bank at Farmersville. On July 3, 1989, it became a member of the First Bank holding company. The First National Bank only issued notes under charter #3624. The bank issued $10 and $20 denominations for the following types, Series 1882 Brown Backs and Series 1902 Red Seals, Date Backs and Plain Backs.
About Nationals Mostly by Frank Clark The First National Bank of Farmersville, TX Through its three incarnations, the First National Bank of Farmersville issued Nationals only under charter #3624. (photo courtesy Heritage Auctions) Florida Paper Money Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Books available mcfarlandpub.com, amazon.com, floridamint.com, barnesandnoble.com, hugh shull Paper Money • July/August 2012 • Whole No. 280 279 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 Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA WANTED: New Advertisers The quality of our SPMC Journal and information available to YOU depends on the quality and quantity of our ADVERTISERS It’s a fact: advertising plays an important role in funding this high quality magazine Dues only cover part of costs Our advertisers do more than sell you notes; They bring you our magazine -- So pay them HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 www.TheHigginsMuseum.org email: ladams@opencominc.com Open: Tuesday-Sunday 11 to 5:30 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards Paper Money • July/August 2012 • Whole No. 280280 EDGAR ALLAN POE SIGNED CHECKS ARE RARE AND VALUABLE. IN THEpast twenty years only a few of his checks have surfaced in the autograph market- place. When they do, they command great interest and premium prices. The desirability of Edgar Allan Poe-signed checks has much to do with Poe's intriguing mystique and elevated status in American literature. The high value placed on his signed letters and documents has encouraged many forgeries to appear in auc- tions and dealer catalogs. Poe's authentic checks bear the signature "Edgar A. Poe." Poe preferred this form of his signature on checks and other forms of financial docu- ments and most of his letters. Only rarely did Poe sign his name as "E.A. Poe" or "Edgar Allan Poe." Virtually any check bearing Poe's signature with his middle signa- ture spelled "Allen" is an obvious forgery. Several Edgar Allan Poe-signed checks that are either partly printed or com- posed entirely in Poe's handwriting are known to exist. Most of the checks written by Poe were directed as payments to Harnden and Company. Harnden and Company had headquarters at 8 Court Street in Boston, Massachusetts. The Harnden express company was founded by William F. Harnden, who, like Poe, died at an early age. Poe sent his literary works through Harnden and Company. Poe wrote checks that directed his agents to pay Harnden and Company for their services. A partially mutilated manuscript check written by Edgar Allan Poe and dated June 12, 1846, is maintained in the Poe archives of the New York Public Library. This check is written to L.A. Godley and requests that he pay Harnden and Company. Louis Antoine Godley was a bookseller and agent for Edgar Allan Poe who published a series of articles by Poe entitled "The Literati of New York City." Godley was also a staunch defender against Poe's critics and detractors. A check Poe wrote and signed "E.A. Poe" is maintained in the Boston Library. This check is dated January 15, 1846, and is made out to John McDougall, Esq. as agent to pay Harnden and Company the amount of $25.00. This check has paper loss that excises the last five letters of the name "McDougall" from his endorse- ment on the reverse of the check. Poe wrote another manuscript check dated May 14, 1846, instructing his publisher and agent, L.A. Godley, Esq., to pay thirty dollars to Harnden Co. This check has cancellation marks that obscure Poe's signature, making it one of the least Above: Handwritten check dated December 20, 1845, directing George R(ex) Graham (1813-1894) to pay Harnden & Company the sum of fifty dol- lars. Edgar Allan Poe once worked as an editor and writer for Graham. Graham’s Magazine was the first to pub- lish many of Poe’s distinctive works. Edgar Allan Poe Signed Checks By Michael Reynard Paper Money • July/August 2012 • Whole No. 280 281 Paper Money • July/August 2012 • Whole No. 280282 attractive of checks written by Poe. This Edgar Allan Poe-signed check was sold in 2001 at Sotheby's auction house for $8,400, and sold again in 2012 at another auction house for $65,959. A magnificent manuscript Edgar Allan Poe autographed check is shown on the website http://www.famous-celebrity-autographs.com/. This check is marked "New York, December 20, 1845," and is made out to George R. Graham. This hand- written check by Edgar Allan Poe and signed "Edgar A. Poe," directs Graham to pay Harnden & Co. the amount of $50.00. This particular check is considered by many experts as the most desirable Poe check in existence because Poe's distinctive signature is unblemished, except for a barely noticeable fold that runs through the first letter of his signature. The archives of the University of Virginia Library has a wonderful partly- printed promissory note signed "E.A. Poe." Poe's promissory note states, "On Demand I promise to pay to Danl. S. Mosby & Co. or order Forty one Dollars and thirty six cents, current money of Virginia, for value received -- As witness my hand and seal this day 14 day of December 1826." This document is in excellent condition and has a vertical fold near the center that does not affect Poe's bold signature. Several checks endorsed by Poe are also known to exist. A nice example is archived in the Colonel Richard A. Gimbel Collection of Edgar Allan Poe at the Free Library of Philadelphia in Pennsylvania. The partly printed check dated August 17, 1845, is written by W. Meredith to "E. Poe" for $300.00. This check is drawn on Schuykill Bank, Philadelphia, and is endorsed by Poe on the back of the check. Edgar Allan Poe has an enduring legacy in the annals of American literature. Poe's signed checks will “forever more” be coveted by his admirers and future genera- tions of autograph collectors. Note: This article was derived from The Complete Guide to Check Collecting, pub- lished by Prospect Park Books, http://store.ProspectParkMedia.com. During prepa- ration of this volume, Mr. Reynard was recipient of SPMC’s George W. Wait Memorial Award for research leading to the publication of a significant book-length project on paper money, banking, finance or related fields.
Fred: Just a quick note to let our hobby know that I have surfaced a very rare South Carolina Obsolete note. Attached is a scan of the "Bank of Charleston" $50. note in regular business print. Haxby lists the note as SENC, but since his book were published 20 years or so ago, I know of one that resides in a prominent South Carolina collection. It's things like this that makes our wonderful hobby even more exciting! By the way, this note has found a home in another large South Carolina collection. Robert Gill –––––––––––– Note: Robert, this looks like Sheheen-84 to me. According to Austin, S-84 is a Rarity 7. I sent the image to friend Austin and he confirmed it. R-7 in the terminology of his fine book, South Carolina Obsolete Notes and Scrip, is estimated as 2-4 known. -- Editor
Reader reports rare Bank of Charleston note Paper Money • July/August 2012 • Whole No. 280 283 MATTIE LIGHTFOOT WAS BORN IN JOHNSON COUNTY, TEXAS ONMarch 16, 1858, the daughter of B. B. and Patience Lightfoot. She graduated from Sam Houston Normal School at Huntsville and taught school. In 1881 she mar- ried Dr. E. L. Smith, a young physician who, sadly, died several months later. She again taught school for several years before her marriage to Samuel Richardson Coggin of Brownwood, Texas on January 3, 1884. Brownwood, the county seat of Brown County, is located in central Texas. It is about one hundred miles southwest of Dallas/Forth Worth. The county was named for Capt. Henry S. Brown (1793-1834), a native of Kentucky and an early Texas set- tler. Brownwood, first settled just before the Civil War, had a population of 7,000 by 1910. S. R. Coggin, a bachelor, was more than twenty-five years older than she. He and his brother, Mody, were long-time and noted ranchers, businessmen, and bankers in that area of Texas. His banking interests, beginning in 1881, culminated in the chartering of The Coggin National Bank of Brownwood, in July 1910 (charter #9812). He died soon after, on October 1, 1910, at the age of 79. During the later years of their 26-year marriage, Mrs. Coggin had assisted him in his many business interests. Thus, at his death, it was natural for her to succeed him as president of the bank. But she served for only about a year and a half before she stepped down in June 1912 to become vice president of the bank. She noted, a few years later, “I believe that the bank president should be a man because he has to deal more with men. I can do more for my bank through my present president than I could if I still held the office myself.” She was very active in the Women Bankers meetings held in conjunction with the Texas Bankers Association annual meeting. At the very first meeting, May 8, 1912, she spoke on “Present Day Ethics in the Bank Business.” The next year she was to speak on “European Savings Banks and the European Savings Habit,” but she begged- off noting that although back from a long trip to Europe, she had not studied the banking system. In 1914 she attend but did not give a presentation. Although confess- ing to not being a suffragist, when interviewed at that meeting she stated, “I believe in Mrs. S. R. Coggin, National Bank President By Karl Sanford Kabelac A Series 1902 Date Back $20 note with the signature of Mrs. S. R. Coggin as vice president of the bank. She held this office after being president of the bank. (Courtesy Heritage Auctions) Paper Money • July/August 2012 • Whole No. 280284 the association and its dissemination of business knowledge among women, for I believe women must know more about business.” Mattie Coggin was also a rancher. In 1913 she attended the cattle raisers convention in El Paso and was featured in an article in the local newspaper. She owned a ranch, which had some 7,000 acres with more than 1,000 Texas steers, with a partner/manager. It was some 12 miles from Brownwood, and every day she had her phaeton hitched to a pair of patient ponies and she drives out to the ranch. It also noted that she is worth $150,000, and is increasing this amount at every selling season when she deposits the earnings of her big ranch in her own bank. She died on March 21, 1915, at her home in Brownwood at the age of 57. The Brownwood Daily Bulletin noted she was a “good businesswoman and involved in many philanthropies.” Noting the sadness of the community at her death, it stat- ed “her activities were so varied and her assistance freely given in so many different enterprises that her loss is regarded as an almost irreparable one.” It also noted that she had a “discerning judgment, was practicable and sensible in all matters, quiet unassuming and unostentatious in manner, and a true friend to every worthy and deserving enterprise. One special interest was education and she had been very active in the Brown County School Betterment League.” The Coggin National Bank continued until the Depression years, when it closed in 1932. Sources The Handbook of Texas Online contains an entry for the Coggin Brothers, and an obituary of S. R. Coggin is found in the Dallas Morning News for October 2, 1910. Several articles about Mrs. Coggin appeared including the “Texas Bank Ably Run by Woman President,” in the Macon (GA) Weekly Telegraph, April 7, 1912, and “Woman is Cattle Owner and Banker,” in the El Paso Herald, March 19, 1913. Her role in the Women Bankers annual meetings is found in The Daily Bulletin (Brownwood TX), May 11, 1912, with shorter articles that month in several other Texas newspapers; The Galveston Daily News,May 15, 1913; and The Daily Bulletin (Brownwood TX), May 7, 1914. A long obituary appeared in Brownwood’s The Daily Bulletin, March 23, 1915, and a shorter one, with a picture of her, in the Fort Worth Star-Telegram,March 22, 1915. A recent depiction of Mattie Coggin by her great-great-niece Ann Willard, graveside wearing some of her ancestor’s clothing and reading from Mrs. Coggin’s personal diaries is found on the internet at http://www.brownwoodtx.com/gallery/collection_c4e4d3c2-0974-11e1-880f- 001cc4c002e0.html.
Here’s what I’m talking about: Your short article could appear here Send short articles (especially) to ye olde Editor now! Paper Money • July/August 2012 • Whole No. 280 285 The banknotes of the “Kirtland Safety Society Bank” are some of the most studied and collected of any obsolete currency of the period. The formation of the bank in Kirtland was first discussed by Mormon leaders in late 1836 and shortly thereafter the establishment of the bank was realized on January 2, 1837. At this time in America there existed no standardized circulating paper currency. Although there were many private banks in operation with many of them issuing paper cur- rency, it was relatively unregulated, and in some cases completely without any back- ing or even legal bank charters. Individual states attempted to regulate banks oper- ating within their jurisdiction and had laws in place to protect the public, but even these regulations were sometimes loose and often unenforced. The result was a myr- iad of circulating notes from literally hundreds of banks without any standardiza- tion of what their currency was worth. A note received for payment could literally be worth almost anything, some being almost worthless, while others could poten- tially be worth at or near their stated value. This, as one can imagine, caused prob- lems and many people were wary of any paper currency they received. The stan- dardization of paper currency would not be realized until near the end of the Civil War when the U.S. government acted to establish a viable national currency. The preferred form of commerce and payment for debts or services would until that time remain in the form of gold and silver coin. In fact, California, which became a state in 1850, had its legislature outlaw the use of paper currency altogether. This act would also remain in force until the end of the Civil War. In regard to the many banks issuing currency one can imagine that with lit- erally thousands of different issues circulating it was extremely difficult for mer- chants, let alone the general public, to have any confidence when accepting paper currency. There were attempts to keep track of the value of individual banknotes and several organizations circulated charts which tracked the value of individual notes. This was a good attempt, and was useful, but banks could fail, or their cur- rency could become less valuable or even wothless in a short period of time. These documents had to be constantly updated and they were far from perfect since infor- mation traveled slowly during the early 19th century so the chance of having an out- dated value chart was often the case. An important question was: “what determined the value of a bank’s issued currency, and what in general determined the value of a dollar?” This harkens back to the value of gold and silver and the ratio between the two metals. These factors were far more stable than today and they basically determined the value of a dollar. The U.S. Mint had been striking silver since 1794 and gold since 1795 and the intrinsic value of a silver dollar contained a dollar’s worth of silver, while a $10 gold eagle contained $10 worth of the yellow metal. These values of gold and silver coins remained very stable, and although there were slight market variations resulting in small changes in coinage, this went virtually unnoticed by the general public. A Theoretical model of Mormon Currency of Kirtland, Ohio Based on Census & Uncut sheet layouts By Douglas A. Nyholm Paper Money • July/August 2012 • Whole No. 280286 Therefore, the banks attempted to value their $1 paper currency at par with a metal dollar but seldom were they completely successful. Paper currency of the era, as collectors now fondly refer to it as “Obsolete Currency,” was issued and circulated throughout the country from the early 1800s but it had it heyday from the early 1830s until the beginning of the Civil War. The question we consider here is: “why did the Mormon Church leaders decide to open a bank in Kirtland in 1837?” At that time the Church was growing in numbers and it was centered in Kirtland, Ohio. There was, as previously mentioned, a multitude of circulating issues in the area, many locally from Ohio, but occasionally a note from hundreds of miles away would surface. The Church leaders thought it would benefit its membership to have a stable Church-operated bank as a convenience for its mem- bers and their local commerce. The first currency was issued on January 4th of 1837 after the bank had officially opened for business two days earlier on January 2nd. Problems developed immediately, but even before the official opening there were significant problems. Church representative Oliver Cowdery was sent to Philadelphia in late 1836 to have banknotes printed. Sheets of individual notes were routinely ordered from several companies supplying banknotes to various banks. These companies had salesmen who would routinely travel around the country with sample books of finished notes and individual vignettes of engravings from which the bank management could literally pick and choose in designing its own currency. Underwood, Bald, and Spencer, a well-known supplier of banknotes in New York and Philadelphia was chosen by the Mormon Church to supply its currency. Notes of a multitude of denominations were present during this time including such strange denominations as $4, $6, $9 and even $1.25 notes as well as others. The $3 denomination was very common. Sheets of uncut currency would be supplied and then cut apart, signed, and issued as needed by the bank. Many different sheet com- binations were also available and most banks ordered these in whatever format and quantity was felt would be required by their customers. Probably the most used denominations were the $1, $3 and $5 notes with diminishing quantities of higher denominations. The most common note issued and utilized by the Kirtland bank was the $5. This is easily understood since a $100 bill would be a vast amount of money for the average citizen in 1837. Most of the documentation regarding what a bank ordered from a printer has not survived, and surviving uncut sheets of ban- knotes are only available as a matter of chance. Many were destroyed when the bank failed or closed and those that did survive are generally unsigned sheets which were probably saved by bank officials. I have tracked more than 550 individual Kirtland banknotes and attempted to reconstruct what was originally ordered and received by Oliver Cowdery on his journey to Philadelphia to acquire the Kirtland banknotes. Recently the final uncut sheet (a 2-subject sheet of $50-$100 notes) became available so now that last piece of the puzzle is complete. The uncut sheets supplied to the Kirtland Safety Society Bank consisted of four different sheets. Two of them are 4- subject sheets while two are 2-subject sheets. The configuration is as follows: • 4-Subject Sheet consisting of 1-1-2-3 denominations / Plate Positions A-B-A-A • 4-Subject Sheet consisting of 5-5-5-10 denominations / Plate Positions A-B-C-B • 2-Subject Sheet consisting of 10-20 denominations / Plate Positions A-A • 2-Subject Sheet consisting of 50-100 denominations / Plate Positions A-A Banknotes were tracked then much as the Bureau of Engraving and Printing does today. Each note on a sheet can be identified as to the place it occu- pied on the sheet by using the plate position letter. Because of this and the 550+ individual notes tracked for the Kirtland bank, it can be confirmed that there were indeed only the four aforementioned sheets supplied. It is very fortunate that a complete intact set of uncut sheets has even survived. Although it cannot be calcu- lated exactly how many of each sheet was ordered and no records of this nature exist Paper Money • July/August 2012 • Whole No. 280 287 Kirtland Safety Society Bank 1-1-2-3 sheet layout Paper Money • July/August 2012 • Whole No. 280288 Kirtland Safety Society Bank 5-5-5-10 sheet layout Paper Money • July/August 2012 • Whole No. 280 289 it is very interesting problem to attempt to put together a simple history of what was ordered and how it was used. Scant documentation indicates that the Kirtland bank ordered $200,000 face value of banknotes and possibly about $70,000 may have actually been issued. Taking those two numbers into consideration the fol- lowing might be an accurate number of what a bank this size might have ordered from the printer. To determine this, as I previously stated, I have been compiling a census of every Kirtland banknote known extant through private sale, auction, or collectors who have shared their inventory information. Presently I have recorded 562 known Kirtland notes which have been compiled over the past decade as well as auction catalogues printed over the past 50 years. The following table records these notes by denomination. Recorded Denomination Survivors $1 78 $2 62 $3 68 $5 178 $10 102 $20 30 $50 20 $100 24 Total 562 Kirtland Safety Society Bank 20-10 sheet layout Paper Money • July/August 2012 • Whole No. 280290 If one further breaks this down to the denominations contained on the four sheet configurations and applies an estimate of 10% survival a rough approximation of the number of original sheets of each type ordered can be calculated. Sheet Existing notes 10% Remaining (x10) Sheets Ordered / Configuration from census Of the largest number Based upon ~$200,000 (x~3.1) $1-$1-$2-$3 39 / 39 / 62 / 68 ~650 Sheets Used 2000 $5-$5-$5-$10 60 / 59 / 59 / 51 ~600 Sheets Used 2000 $10-$20 51 / 30 ~400 Sheets Used 1500 $50-$100 20 / 24 ~200 Sheets Used 1000 To understand the above table, we refer to the top entry, the 1-1-2-3 sheet. There are 78 $1s in the census and as there were two $1s on this sheet I split the known notes half to each plate position. (39+39=78) There is only one position for a $2 and $3 so the census numbers were directly placed into the chart. The same was done for the remaining sheets. (Note: $10s existed on two sheets so in similar fash- ion to the $1s their number was apportioned) Kirtland Safety Society Bank 50-100 sheet layout Paper Money • July/August 2012 • Whole No. 280 291 The table below utilizes the approximant number of sheets issued and breaks them down to their face value. Face value of top Face value of 2nd Face value of 3rd Face value of Total face position notes position notes position notes bottom notes value of the sheet $650 $650 $1,300 $1,950 $4,550 $3,000 $3,000 $3,000 $6,000 $15,000 $4,000 $8,000 - - $12,000 $10,000 $20,000 - - $30,000 Grand Total $61,550 The highest number of known notes for the 1-1-2-3 sheet is 68, referring back to the census to the number of $3 bills in the census. Therefore if the survival rate in general was 10% one would have to multiply 68 times 10 which would give the figure of 680 original sheets. The total estimated face value of the Kirtland notes is more than $61 thousand using this model. As mentioned earlier the amount actu- ally issued in Kirtland Ohio may have been as high at $70,000. Therefore it seems likely that the above figures, although a bit lower than $70,000, possibly approxi- mate the reality of the situation. Secondly if Oliver Cowdery did obtain $200,000 in printed notes in Philadelphia (which is slightly more than three times the amount issued) the numbers for total sheets ordered would also be reflected by the table. I have rounded these numbers totals to even numbers because the likelihood of a bank ordering printed currency sheets would be that they would probably order in even numbers. What then possibly could have happened to the thousands of sheets not issued? No one knows for sure but there is a persistent rumor that they are still in possession of the Mormon Church tucked away in its archives. More than one per- son has stated that he has heard of stacks of unused Kirtland notes being seen years ago in the Church archives. Just rumor and conjecture, but it makes for a very inter- esting story. The figure of 10% surviving notes may sound like a high estimate, however due to the fact that many notes were not issued and hundreds were re-issued in Salt Lake City 12 years later, most were probably not destroyed as happened with many banks. Secondly, the Mormon pioneers had a strong tendency to save items of histo- ry as keepsakes to have and pass down to their children. Thus when you see that my simple census of surviving notes done over a 10 year period has amounted to well in excess of 550 individual notes and compare this to other private banks of the period it is indeed a much higher survival rate than the norm. I have attempted here to present a slightly different side of bank operations in the early 19th century. The survival of a complete set of intact uncut sheets from a single bank and to some degree the possible scenario of what was ordered and how it was used sheds additional light on the process of how banks obtained their notes. The numbers presented here are a rough estimation, but I believe could very well be typical and close to accurate. Banks during this period seldom kept records other than approximations and they were very crude except for actual dollars and cents ledgers. Most of what was recorded has long since been lost to history.
Have you checked out the SPMC website (www.spmc.org) lately? Lot’s of good stuff there Members-only access to all back issue of Paper Money and other benefits! Dear Fellow Paper Money Lovers: It would be a fib if I told you all that I have read every President’s Column written for Paper Money since 1961. If a previous columnist has explored this issue’s topic in these pages, and I cover ground previously discussed, for- give me. But it has been on my mind lately, and I think it is a worthy subject. The topic is the concept of “Society” and what it means to us, as members, as volunteers, as officers, and as Governors. There are a lot of sources for definitions of any word, and “Society” is no exception. An initial search brought several different perspectives. None of them are compre- hensive, but many of them contain key aspects I believe many would agree are part of what we are all about. Probably none are perfect. So, offered here for considera- tion are some of the seemingly more targeted ones: • Companionship or association with one’s fellows • A voluntary association of individuals for com- mon ends, especially an organized group working together or periodically meeting because of common interest, beliefs or profession • An enduring and cooperating social group whose members have developed organized patterns of relation- ships through interaction with one another • A community, nation or broad grouping of peo- ple having common traditions, institutions, and collective activities and interests • A part of a community that is a unit distinguish- able by particular aims or standards of conduct. Far be it from me to try to synthesize a definition for every member to agree on. But I think there are some common strains included here…association around com- mon interests, for one. Organization, co-operation and relationship in furtherance of aims, for another. We see many of these traits playing out in the fashion in which the Society conducts its business. For starters we have our key constituency, our membership, who effec- tively vote with their money and their time to support the Society fiscally and by participation in its fruits, even if they opt only to enjoy, as many do, each issue of our fine journal. A significant but much smaller subset of our membership provides many of the articles which play such a big role in making the journal the winner it is. There is a great spirit of “roll-up-the-sleeves support” amongst a long-standing cadre of volunteers [many of them past Officers or Governors]. The spirit of volunteerism is stronger still in the members of our Board of Governors, who meet formally and informally throughout the year to provide overall stewardship, to give very detailed and valuable guidance on issues, to review reports of fiscal and membership import, and to support, ratify, or modify the requests, recommendations and proposals of the Officers. And, at the top of the hierarchy of volunteerism are the Officers, who [with the exception of your current President] must absolutely be considered an extraordinari- ly hard-working group of individuals. All this having been said, it must be said that I am not completely happy with the current state of play, on two levels: Firstly, you may not have noticed, but I have, that over the last few years we have seen a noticeable decline in the number of candidates interested in running for the Board of Governors. Insofar as we have an active, com- mitted and very competent Board, this is not an issue. However, as we all know, nothing lasts forever, and we will have to renew this key resource over time. The lack of new entrants and/or challengers in the annual election process is perhaps a compliment to the current overseers, an indication that our performance is not at issue. And we are certainly not looking for acrimonious debate or hotly contested, bitter elections. However, we are looking for committed members who believe they can contribute to the Society by bringing their passion and intellect to the work, and to lend a hand to an existing group already working hard and selflessly for the benefit of a fortunate membership. Anyone interested in pursuing this is encouraged to e- mail the writer for more information [mark@spmc.org, or mbamba@aol.com], or come find me at Memphis to talk further about it. Per the by-laws the Society has twelve Governor positions. Governorship terms are three years in length; as a result, four terms are up each year, and the elections are held each spring. The requirements to get on the ballot are truly de minimus, and the cause is wonder- ful. Secondly, and I see this second concern as relating to this same question of “society” and the crucial role volun- teerism plays in our success, the Society has recently made a substantive commitment to a new form of “interaction,” our website. Launched quietly in January, it represents a more than dramatic evolution in the Society’s online capa- bilities; it is transformative. And because any such ambi- tious effort is inevitably fraught with small glitches, we have on the one hand ramped up cautiously, but it must also be said that Shawn Hewitt and his partners have worked aggressively to identify and remedy every shortfall as quickly as possible. The site is now keeping its transac- Paper Money • July/August 2012 • Whole No. 280292 The President’s Column tional promises: you can join online; you can renew online; you can learn about events online; you can opt for an online, i.e., “paperless” membership and get the journal on your computer; and, perhaps best of all, you can buy Memphis breakfast tickets online [although by the time you read this, you will need to start buying them for the 2013 Breakfast]. However, the great promise of the website [from my per- spective], is its capability to permit interaction amongst our members. It significantly enhances the ability of the Society to provide the very definition of the “social experience” to our members. However, in order for this capacity to be realized, our members need to jump in! We need bloggers! We need forum participants! We need moderators! We need to hear about events you think are of potential interest to the rest of our members! If it is of interest to you, it is likely of interest to this group you are a member of! Critical mass! Eldridge Cleaver once said, “ You’re either part of the prob- lem or part of the solution.” Your Governors and your Officers are working about as hard as they can to build the best SPMC they possibly can, but at the same time, we can use all the help we can get. We have plenty of ideas for any interested parties, be they interested in Board level, Officer level, or volunteer roles. We are particularly interested in people with ideas and passion for ways in which we can do a better job of “marketing” the Society and its benefits. So, if you value the Society, consider upping your involve- ment, in whatever fashion suits you. Talk to me or to any of the terrific people already involved. And, as always, I remain vitally interested in what you the membership think. As I write this I am looking forward to seeing you in Memphis and/or the ANA, or hearing from you in any other fashion as may be preferred. Sincerely, Paper Money • July/August 2012 • Whole No. 280 293 Mark
Small Notes by Jamie Yakes New Ones on Letter-Seal 1928 FRN Plates THE ORIGINAL DISTRICT SEALS ON SERIES OF 1928Federal Reserve Notes had bold, black numbers representing each Federal Reserve district. Fearful the public might confuse these numbers for the denomination, the Bureau of Engraving and Printing (BEP) replaced them with letters on all new plates prepared from September 26, 1929, for- ward (Huntoon, 2006). A previously unrecognized and concurrent change involved using a different font for the “1s” in the corner markers: the four small district identi- fiers near the counters. This was a serendipitous discovery. Huntoon never noticed these during his research, even after looking at dozens of plate proofs! In fact, I first noticed them when comparing the different seal colors used on the Series of 1928B Federal Reserve notes. A good collector friend, Randy Vogel, collects San Francisco Federal Reserve notes. For my website he sent me a group of $10 scans showing the different seal colors (www.ussmallnotes.info/ 1928FRNseals.htm). While looking them over I noticed a difference in the “1s” in the small “12s” on the 1928A and 1928B notes. The “1s” on the 1928As had no serifs and resembled the letter I, but those on the 1928Bs had serifs. I double-checked this by comparing other districts and denominations, and quickly noticed a pattern: the “1s” on letter-seal plates looked different from those on number-seal plates. But why did Federal Reserve notes have these corner markers? The Federal Reserve Act made Federal Reserve banks accountable for the circulation of their own notes. The act levied a fine for paying out notes from other banks. Proper and unmistakable identification of Federal Reserve notes was crucial, both during the sorting process, and when canceled or mutilated notes came in for redemption. The district seal served as the primary way to determine the bank. The prefix letters in the serial numbers also identified a particular bank, and functioned as a secondary means of identification. Problems arose when fragments of notes were received that did not display the seal nor the serial numbers. In those cases the corner mark- ers acted as a third way to identify the banks. A letter-number combination had appeared in both the district seals and the corner markers on Series of 1914 Federal Reserve Notes. When the Treasury reduced the size of currency in 1928, limited space remained for the BEP to fit both characters. This caused them to retain just the numbers in both the seals and corner markers. Only then did the problem surface. The “1s” on the 1914 plates had no serifs and resembled the letter I. No potential for confusion existed, however, because Boston notes displayed a “1-A” and Minneapolis notes a “9-I.” On the early 1928 plates, though, the 1, still very similar to the letter I, stood alone. Persons used to sorting the 1914 notes could possibly mistake 1928 Boston notes for Minneapolis. To avoid any confusion, the BEP changed the font of the “1s” when they altered the district seals. The new “1s” appeared thereafter on letter-seal plates for every district with a “1” in the district number: Boston, Kansas City, Dallas, and San Francisco. Acknowledgments The Professional Currency Dealers Association supported this research. Peter Huntoon reviewed the manuscript and made suggestions for improvement. Photos are courtesy of Peter Huntoon from the certi- fied federal currency proofs at the National Numismatic Collection, National Museum of American History, Smithsonian Institution, Washington, D.C. References Huntoon, P. “Letters Replaced Number in 1928 FRN Seals,” Bank Note Reporter, 34 (April 2006), pp. 42, 44.
Paper Money • July/August 2012 • Whole No. 280294 ONE OF THE GREAT SMALL SIZE NOTE MYSTERIES HAS BEEN SOLVED. WHYthe plate numbers were enlarged on U. S. small size notes in 1937. The following internal memo from BEP Director Alvin Hall to a member of his staff says it all. August 17, 1937 For Mr. Long: The Secret Service would like to have the plate numbers on both the face and back of all notes made larger so that after the note becomes worn they can still read the number. Please have a model prepared with larger numbers so that we can submit it to the Secret Service for approval. A. W. Hall J. C. Benzing, one of Mr. Long’s subordinates, quickly provided a model with the size of the numbers increased by 1-1/4 times. Director Hall sent a letter August 26 to William Broughton, Commissioner of the Public Debt stating: “In accordance with this request we have prepared and submit herewith for the approval of the [Treasury] department, a model for $1 Silver Certificate, face and back, showing the plate numbers in the proposed size.” Next, on September 9th, Hall sent the models on to a Mr. Wilson of the Secret Service for approval. Wilson responded the next day with the request that the numbers be Origin of Macro Plate Numbers Laid to Secret Service The Paper Column By Peter Huntoon Above: Figure 1. Detail from $1 SC Series of 1935 and 1935A notes showing the change in the size of the plate serial numbers. The size of the numbers comprising 3013 are about 1-1/3 times larger than 1366. Paper Money • July/August 2012 • Whole No. 280 295 WANT ADS WORK FOR YOU We could all use a few extra bucks. 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Authors are also offered a free three-line classified ad in recognition of their contribution 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) WANTED: 1778 NORTH CAROLINA $40. Free Speech. Obsolete: Wheatland Furnace. Notgeld: 1922 Chemnitz 5 Mark. N.d. Magdeburg 50 Mark (Sozialisierungs). Kenneth Casebeer, (828) 277-1779; Casebeer @law.miami.edu (283) WANTED 1862 Private Scrip Notes with Jefferson Davis in Circle printed in Memphis. Send photocopies. Frank Freeman, Box 163, Monrovia, MD 21770. (281) WANTED: 1790s FIRST BANK OF THE UNITED STATES. Kenneth Casebeer, (828) 277-1779; Casebeer @law.miami.edu (284) 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 (282) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with description (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (282) 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) WANTED: charters #769 Whitinsville, Mass., #1022 Uxbridge, Mass.; #1385 Tolland, Conn.; national bank notes and obsolete currency contact: Terry Jackson, P.O. Box 783, Tolland, CT 06084-0783 email: Terry.Jackson@comcast.com (284) 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) BUYINg COUNTERFEIT DETECTORS: Heath, Hodges, Foote, Ormsby, Bond Detectors, Bank Note Reporters, Autograph Detectors, Related Receipts and Sales material, Naramore, and more. I will pay a strong mar- ket price for items need. Michael Sullivan, POB 10349, Fayetteville, AR 72703 or numisbookmjs@gmail.com (284) PAPER MONEY BACK ISSUES NEEDED: Need Paper Money issues Vol. 31, no. 5 (1992), Vol. 32, no. 1 (1993), and Vol. 43, no. 4 (2004). PRE- MIUM PRICE PAID FOR CRISP NEW COPIES. Michael Sullivan, POB 10349, Fayetteville, AR 72703 or numisbookmjs@gmail.com (280) AR 72703 or numisbookmjs@gmail.com vIRgINIA NATIONAL BANK NOTES FOR SALE -- For list, contact jameslbecknerjr@gmail.com (285)
Paper Money • July/August 2012 • Whole No. 280296 made even larger and heavier. Benzing, on the 16th, provided models with larger numbers. Hall submitted them to Wilson the next day along with the following cover letter. There is transmitted herewith for your consideration the second revised models of United State currency, showing plate numbers in heavier and larger type. If these models meet with your approval, the style of numbers shown will be used on all plates manufactured in the future. Approval was given October 20th. The approved numbers were about 1-1/3 times larger than those they replaced. Hall summarized the status of the change for Secretary of the Treasury Henry Morganthau, Jr. but added a bombshell. October 27, 1937 The Honorable Henry Morganthau, Jr. The Secretary of the Treasury Sir: The revised model for the $1 Silver Certificate, Series 1935-A, was approved on October 20, 1937. At the time of the approval the plate number was located in the lower right-hand corner immediately following the plate letter. Upon further consideration of the Series 1935-A design, it is believed that by placing the plate number in the upper left-hand corner under the plate letter would improve the appearance of the note and at the same time make sufficient space available for the enlarged plate numbers of four or more digits. There is submitted herewith a model showing the proposed change for consideration and approval. Respectfully, A. W. Hall Director Obviously the relocation of the plate number was not approved, so the enlarged size and placement of the number in the lower right corner approved October 20th moved for- ward to production. It is clear from the correspondence that three generations of models were produced, including the one with the number in the upper left corner. None of the models are known to have survived. They certainly weren’t transferred to the National Numismatic Collection in the Smithsonian. That is no surprise because not much of that type of material was trans- ferred. Who knows, the models may be lurking in some corner of the BEP, but I haven’t seen them there either. I must inject a technical distinction. The correspondence refers to “plate numbers.” Of course what is meant is what Bureau personnel refer in-house to as “plate serial numbers.” Plate serial numbers are consecutive numbers assigned to like plates, and they appear within the designs of all small size notes. True plate numbers on small note plates are the numbers found in the top margin of the plates. Those numbers are from omnibus sets of numbers that thread through huge groups of plates, the largest being a set of numbers begun in 1886 that thread through most of the intaglio plates made for the Treasury Department, including currency, bond and revenue stamp plates. Of course, the margin plate number on a plate differs from the plate serial num- ber within the subjects. The impact of increasing the size of the plate serial numbers on our small currency was significant. The change was deemed to be sufficiently important that the series letters were advanced on all face plates bearing the new numbers. Prior to this event, the series letter . . . Please turn to page 316 Figure 2. This significant Silver Certificate is from the A position of the number 1 Series of 1935A production plate, the first produc- tion plate made with macro plate serial numbers. It carries a serial number from the MA block, the first block used on 1935A notes. The face happened to be printed on micro back stock, so the note came out as a mule. Leon Goodman, early discoverer and cataloguer of mule varieties, found the note long ago and I bought it in 1989 from Allen Karn who handled the currency in Leon’s estate. Paper Money • July/August 2012 • Whole No. 280 297 The First Greenbacks The term “greenback” originated when the Demand Notes dated 1861 were issued. Notwithstanding, some previously issued United States interest-bearing Treasury notes had backs printed in green ink. In the early- and mid-19th century, inter- est-bearing Treasury notes were engraved financial instruments that looked like paper money, often circulating as such. Today, on the other hand, Treasury notes are purchased, a receipt is given, and a book entry is made. So, we could say that the first greenbacks were the 4,500 interest-bearing Treasury notes authorized by the Act of December 23, 1857. It is possible that the $1000 denomination issued under the same Act had a green back. However, there is no supporting evidence; only a uniface proof of the face design is known. The $100 note, the other issue in this series, had a blue back. The $500 and $1000 notes bear the patent date of June 30, 1857, on their faces. This patent (No. 715) originally was record- ed in Canada on April 1, 1857, by George Matthews, a partner and representative of the American security-printing firm of Rawdon, Wright, Hatch & Edson. Matthews purchased the patent from Dr. Thomas Sterry Hunt, who developed a green ink that could not successfully be pho- tographed using the photography processes of the period. This patent also is recorded in the United States (No. 17,688), like- wise under the name of George Matthews. Dr. Thomas Sterry Hunt was born in Norwich, CT, on September 5, 1826. He attended Yale University and moved to Canada in 1846. When he returned to the United States in 1872, he accepted a teaching position at the Massachusetts Institute of Technology. A nonconformist, he resigned six years later to satisfy his passion for laboratory research. A synopsis of Dr. Hunt's patent states that: “calcined green oxide of chromium is mixed with burned or boiled linseed oil in the manner usual in preparing ink for printing purposes. Claim.- --The use of the calcined green oxyde [sic] of chromium for mak- ing ink for printing from engraved plates, from types, or for other kinds of printing as described. The use of this ink would prevent counterfeiters from pro- ducing their illegitimate product with a camera. Tracy R. Edson, first to serve as vice president of American Bank Note Company (organized in April 1858), often is given credit for the development of the anti-photographic green ink. However, he merely put it to use. Even though most subsequent series of United States interest-bearing Treasury notes were printed in this ink, the term “greenback” entered the American vocabulary with the issuance of Demand Notes. While gathering information for An Illustrated History of U.S. Loans, 1775-1898, I uncovered the $500 interest-bearing Treasury note issued in 1858 at the Bureau of the Public Debt. In my files was a description of the note from a copy of the Bankers' Magazine from the period; so, when I finally came across this piece, I was exhilarated. A few years later I found a sheet of four $500 notes for this issue at the Bureau of Engraving and Printing. An image from this sheet is illustrated here. The portrait of Secretary of the Treasury Howell Cobb at left appears on no other piece of federal currency. The two alle- gorical female figures at the top center probably represent Prosperity and Mechanics. The eagle vignette at the right is titled E Pluribus Unum. This same design, with alterations, was issued under the Act of March 2, 1861. Cobb’s portrait was replaced with one of George Washington. AMERICAN BANK NOTE COMPANY was imprinted above the name of the original printer, RAW- DON, WRIGHT, HATCH & EDSON, one of the severa; firms that joined to form American Bank Note Company. When Hunt formulated the anti-photographic green ink, he described it in a letter to a friend: “I have probably told you that I have made a fortunate dis- covery of a process for printing bank notes which is likely to yield me a good deal of money. It is a green ink which cannot be effaced nor copied by photography. I got a small sum for it in the United States, but a permanent right and interest in the patent in Canada. The invention is not, however, in my name, but as ‘Matthews [sic] Banknote Tint.’” A few years before he died in New York City on December 1, 1892, Hunt wrote to the same friend: “You ask about my, or rather Matthew’s [sic] green ink. It is largely used in the United States, but I sold it there for a trifle, and here our large banks move slowly, but all have adopted it, so in a year they will have it in use, and pay me something. I hope to sell it in England, but nothing definite has come about, and have offered it to the Russian Government through a friend. As yet, it has been rather more trouble than profit.” Apparently Dr. Thomas Sterry Hunt was not a good businessman. Reprinted with permission from The Numismatist April 1996 www.money.org
A Pr imer for Col lectors BY GENE HESSLER THE BUCK Starts Here Paper Money • July/August 2012 • Whole No. 280298 AT THE ONSET OF THE CIVIL WAR, HOARDING OF PRECIOUSmetal coinage dried up the marketplace and forced merchants and publicalike to adopt queer measures as remedies. Since necessity is often the“mother of invention,” it should surprise no one that even postage stamps were resorted to in making small change at the time. Almost overnight, $25 million in fractional silver small change had disap- peared from the channels of commerce. Although many people had coins stashed away, they were reluctant to spend them fearing additional inflation would drive the coins’ value higher and they would lose out. Even in today's increasingly cashless society, we can well image what our lives would be like without small change. In 1862, it was much worse since prices were a fraction of what they are today for most items. A quarter was a good deal of money. Three cents would buy a newspaper or a stage ride. Five cents would buy a glass of beer and a lunch. Not getting one’s change from even a small purchase was intolerable. In panic the public turned to the only generally available medium at hand, and seized upon the postage stamps for small change. Merchants were forced to accept this substitute. Even the odd denomination postage stamps such as 12 cents and 30 cents were better than most other substitutes, or worse yet, no change at all. Shopkeepers posted signs such as “postage stamps received for goods and given in change.” Similar announcements appeared in advertisements in the newspapers. Some mer- chants even illegally advertised to sell stamps at a premium to change-hungry customers. Stamp sales rose precipitously at post offices nationwide. In New York City, daily stamp sales rose from $3,000 to $25,000! In its optimism and hysteria to employ stamps in its purchases, the public rushed thousands of dol- lars worth of these miniature “gum backs” into circulation, despite their obvious disadvantages. “To hand a New York stage driver his fare of two three-cent postage stamps on a wet day, or to buy a newspaper on a windy street corner” with this miniature currency proved the futility of this small change substitute. The public’s euphoria with this small change substitute passed quickly. The grave drawbacks of such a poor change remedy became manifest. Eventually these sticky, adhesive stamps soiled and collected into messy wads in the bottoms of pock- ets and purses, after repeatedly changing hands in the marketplace. 1862 - 2012 : sesquicentennial One hundred and fifty summers ago Civil War postage stamp envelopes circulated as small change By Fred L. Reed © 2012 All Rights Reserved Responding to pressure from the Lincoln administration, Congress stayed over an extra day to pass the Second Confiscation Act and an act monetizing “postage and other stamps” for use in pay- ments to the government in sums of $5.00 or less. Paper Money • July/August 2012 • Whole No. 280 299 These drawbacks necessitated a “Plan B” remedy for the motley miniature currency. Stamps were being circulated in small envelopes before the law was passed monetizing “postage and other stamps” that made the practice general. In its July 7th, 1862, issue the New York Times reported “The use of envelopes is good, except that in the pocket the stamps may become so heated as to adhere to each other, and thus vitiate their use for postal purposes.” Congress responded by monetizing “postage and other stamps” on July 17th effective August 1st following. On July 24th, the New York Times reported: “THE POSTAGE STAMP CURRENCY. -- The semi-official announcement that the postage stamps were not yet legal currency, and the notice of the Post-office Department that they will be issued only in sums of $10 to one appli- cant, caused a slight diminution in the use of the stamps for change yesterday, some even refusing to take them. The Post-office in this City, however, could not supply the demand for them, and one case is stated where a man paid three per cent, premium for $5 worth for purposes of change. It appears to be decided for the present that defaced stamps will not be redeemed, so holders must be careful to keep them clean and whole.” The mess created by the gumback currency begged a solution, especially importuned were those con- cerns which were ultimately paid in this motley currency. Within two days of the stamp act, Harnden’s Express yelled “uncle.” The company urged in the New York Herald that the stamps be placed in small, neat envelopes especially made for this purpose, with the sum of the stamp denominations printed on the outsides of the envelopes. An interesting reaction on the times appears in the advertising message on one of T.R. Dawley’s many envelopes, Reed PE239 for 25 cents. A pointing hand highlights this message: “Envelopes of all sizes, styles and colors, for enclosing the ‘STICKING PLASTER CURRENCY,’ endorsed with all the denominations from 5 cents up, manufactured and for sale, wholesale and retail, by T.R. Dawley, cor. Reade and Centre Streets, N.Y.” It became obvious that keeping stamps clean was desirable to preserve their value and keep them in circulation. Printers and stationers such as Dawley in many cities supplied these envelopes in a great many varieties. Civil War postage stamp envelopes are now known from 17 cities in eight states. I am in the process of writing a book telling the story of these attempts to put these stamps up in small envelopes of useful denominations. This forms a relatively unknown saga of the tumultuous Civil War monetary era. My new book, Civi l War Stamp Envelopes, The Issuers and Their Times, will answer this need by providing detailed catloging and illustrations of virtually every one of 490 identified stamp envelope varieties, and extensive text and imagery on each of the 128 known issuers of this species of Civil War emergency currency, as well as rar- ity and value information. On July 27th more bad news arrived from Washington, D.C.: “MORE CHANGE TROUBLE. . . . ‘On application to Gen. SPINNER, Treasurer United States, I learn that the design for the new stamps has not yet been adopted, and that several weeks must elapse before the stamps will be issued. In the meantime after the 1st August, Post-office stamps, as at present used by the department, will circulate, but The Brooklyn Daily Eagle reported July 29, 1862, that “a great many storekeepers refuse to take them [stamps] . . . because the stamps stick to everything they touch, and to each other, so that they have lost considerably by their use.” New York stationer T.R. Dawley made fun of the “Sticking Plaster Currency” Paper Money • July/August 2012 • Whole No. 280300 care must be used, or they will not be recognized by the Post-office Department if they are defaced in any way. Attaching them to paper is considered by that depart- ment as a canceling of the stamp. The use of envelopes is good . . ..’” Despite such dire warnings, the change crisis was so deep that merchants such as Long’s Varieties in Philadelphia, William Newton in Newport, RI, William O. Swett in Worcester, MA, and Harvey Gridley Eastman in Poughkeepsie, NY circulated scrip with stamps affixed thereto, forgoing the stamps’ further use in the prepayment of postage. These merchants and their issues will also be covered in my new book. On August 3rd Murphy’s, a New York printer, advertised it would supply postage stamp envelopes for 75 cents per thousand. Other printers in New York, Brooklyn, Jersey City and elsewhere quickly offered also such envelopes for sale. In Chicago McNally & Co., 81 Dearborn Street, advertised “ENVELOPES FOR POSTAGE STAMPS – Something new and neat, the faces printed, assorted denominations.” In Cincinnati printer Oscar H. Harpel did the same. These envelopes were convenient, and the practice of issuing these postage stamp envelopes spread throughout the northern states. However, no prudent soul could fail to open the envelope and count out the stamps. Evidently with time, many got lazy and ignored the verification process, however, as we shall see. By August 3rd, 1862, a church in Springfield, MA had received a 25-cent postage stamp envelope in its contribution plate that Sunday, according to an article published in the Springfield Daily Republican the following day. On August 6th a great fire broke on in Beekman street in the basement of the Rainbow Hotel, nos. 31 and 33 Beeckman which nearly derailed the postage stamp envelope currency boomlet. Flames spread rapidly, encompassing the build- ing’s upper three floors which were occupied by envelope manufacturer Charles W. Baker. The flames then overtook adjacent 29 Beekman and 61 Ann Street to the rear of the hotel, and 163-169 William Street, housing additional envelope factories. In its August 9, 1862, issue Harper’s Weekly lampooned stamp use as small change, depicting the grim reality of furnishing the gumbacks to an omnibus conductor in the driving rain. McNally & Co. in Chicago put up “Envelopes for Postage Stamps” advertising August 1st 1862 in the Chicago Evening Journal. Printers and stationers in other cities in the northeast and midwest followed suit. Paper Money • July/August 2012 • Whole No. 280 301 Three died in the fire. Immediate losses were gauged at north of $150,000. Transportation companies were also big users of the postage stamp envelopes, including the New York Consolidated Stage Line. On August 25th with the much-delayed Postage Currency still not in general cir- culation in New York City, the New York Times excoriated another “Disobliging Stage Line” for refusing the use of the old regular issue postage stamps by the public: “Mr. MARSHALL's line of stages are ornamented inside with a placard, stating that hereafter no postage-stamps of the old issue will be taken for fare. It seems to us that this is exceedingly unfair -- the new issue cannot become current for a fortnight yet, and change is as scarce as ever. If Mr. MARSHALL won’t study the convenience of the public, it will be no more than he may expect that the public will avoid his conveyances. In the meantime the ferry compa- nies, the various car and omnibus lines, and all the small dealers, thrust forth as change envelopes of stamps, many of which are past their usefulness, and the public are oblig- ed to take them. Mr. MARSHALL and his co-thinkers would do well to take away the placard for a few days, and when the new stamps come there will be no old ones offered.” The New York Times report is certainly revealing. Postage stamps put up in small envelopes were in general circulation in the city: “[T]he ferry companies, the various car and omnibus lines, and all the small dealers, thrust forth as change envelopes of stamps,” the newspaper reported August 25th. (Check out the issuers in the following checklist, and that’s just what you find.) In one case it is possible to pinpoint the date at which specific postage stamp envelope types were circulated. William Wheatley, proprietor of Niblo’s Garden, circulated two types of envelopes. The first advertised the appearance of the Great Ravel Troupe of Acrobats; the sec- ond, the great tragedian Edwin Forrest, who followed the Ravel’s at his theater in late summer-early fall 1862. Wheatley also advertised the Ravels and Forrest from late August through September 1862 in the newspapers, thus pinpointing the time Wheatley circulated his advertising and change-making small postage stamp envelopes, too. The circulation of these postage stamp envelopes irritated Post Office officials in Washington, DC. In a dis- patch from the nation’s capital published in the September 26th issue of the New York Times on “Postage Stamps,” the Times correspondent filed this report: “The Post- Office Department has received information from various sources that certain persons persistently divert postage stamps from their legitimate purpose by circulating them in packages (i.e. envelopes), together with canceled stamps, as currency. Owing to this use of the stamps, the Department is embarrassed in the supply for mail purpos- es. The public, therefore, are interested in discountenanc- ing their circulation as currency.” This discouraging state of affairs caused Editor Henry Raymond at the Times to excoriate the federal officials two days later for their slackness in producing the promised small change currency. “It is now over four months since the Government decided to adopt a postal currency -- in other words, to issue notes of various denominations,” he began, “. . . In the meantime, there set in a reaction in favor of the postage stamps, and, unable to get anything else, the change-seeking pub- lic flocked to the different post-offices to supply themselves. The demand aroused the fears of the Post-office Department, and a manifesto has just appeared advising the people not to buy more stamps, as there are not enough for mail facilities. This is, as alleged, because certain persons persistently divert postage stamps from their legiti- A New York City stationer Arthur, gregory & Co. put out 25- and 50-cent envelopes for use as small change. These denominations were the most prevalent among other issuers, too. The most extensive series of postage stamp envelopes was offered by stationer and printer James T. Leach, who maintained a presence on Nassau Street for 65 years. Paper Money • July/August 2012 • Whole No. 280302 mate purposes by circulating them in packages, together with canceled stamps, as currency. This may be true, for the receivers of the little envelopes so much in vogue now, usually accept them for the amount named on the back, without taking the trouble to count or examine every stamp.” Stamps were being pressed into circulation in other ways, too. In 1995 I published the definitive treat- ment of John Gault’s solution to the small change crisis, Civil War Encased Stamps, the Issuers and Their Times. That 560-page, extensively illustrated book won many awards in numismatic, philatelic and publishing cirles. A revised second edition is on tap to appear for the current ongoing Civil War sesquicentennial celebration. A month later early in November, the New York Times reiterated its pleas that its readers examine all their postage stamps so as not to fall prey to stamp envelope frauds. “Examine Your Postage Stamps,” the headline over a reprint from Holbrook’s U.S. Mail rang out: “It is surprising what carelessness, or rather recklessness, everywhere prevails in the matter of postage stamps. They are freely received by most people, not only without exami- nation, beyond, perhaps, a mere glance at the denomination; but when put up in small envelopes, sums of 25 and 50 cents are received for the sum indorsed, without inspection or counting. The success of these petty swindles encourages young and old rascals to possess themselves of stamps before used upon letters, and the Government or correspondents, or both, must suffer when, honestly or dishonestly, these worth- less stamps find their way upon letters the second time. If postage stamps must circu- late as change, all classes are interested in refusing those which are mutilated or much soiled. And it is the duty of Postmasters to see that all which pass through their offices on letters, are badly soiled (i.e. cancelled), beyond ‘redemption.’ On every account, we therefore advise the public to be on their guard, and examine stamps offered them with at least as much scrutiny as they exercise in taking bank notes. It would also curtail the facilities for this species of cheating, if business men and others would destroy, or otherwise put out of reach, their old letters and envelopes received by mail,” the Times reported on November 7th. Stamps continued in circulation through the fall 1862 because Postage Currency did not become prevalent in circulation until spring 1863. In the interim, the ques- tion of what to do with the heavily circulated postage stamps adrift came to a head. On December 9th, 1862, the New Yo rk Times published the Post Office Department’s Rules for Redemption of Postage Stamps: “The following principles and order in regard to the redemption of Postage Stamps, at the New-York Post- office, have been adopted: 1. Only those stamps will be redeemed which have become soiled or worn in their use as currency. No clean stamps, under this rule, will be redeemed. 2. No stamp will be redeemed which shall appear to have ever been used in the payment of postage. 3. The stamps to be redeemed must be separated by the owner into their sev- eral denominations -- all 3-cent stamps together, all 10-cent stamps together, &c. Each parcel must be put in a wrapper, and on the back of the wrapper must be indorsed the amount of the inclosed stamps. The several parcels must then be placed in a single wrapper or envelope, and on the back of the envelope must be indorsed the amount of the whole lot, and also the name, residence, or place of business, of the owner. The packages as received at the Post-office will be numbered regularly and receipted for. 4. The packages of stamps will then be carefully examined and counted in the Post-office, in the order of their reception, and the value of those considered John Campion Force, or Johnnie Force as his friends called him, was an extraordi- nary restaurateur, bar keeper, hotel owner, sportsman and art lover in Brooklyn, N.Y., who advertised his National Shades chop house on the backs (not shown) of postage stamp envelopes during the Civil War. Excelsior Envelope Manufactory operator William Robins circulated a great many of the stamp envelopes from his location on Ann Street in New York City. Paper Money • July/August 2012 • Whole No. 280 303 redeemable marked on the envelope. Those not deemed good will be destroyed -- not given back. 5. Owners will, on application, receive their respective payments in Government notes ("greenbacks") or postage currency. 6. The progress of the work will be advertised by posting at the Post-office daily the number ready for redemption. 7. Lots of stamps under $5 in amount will be counted and redeemed on pre- sentation, but maybe deposited if more convenient to the owner. 8. All stamps must be presented for redemption within thirty days after notice is given at the Post-office of readiness to commence the work. These are the rules for the New-York Post-office only. No offices will be permitted to redeem stamps but those that shall be specially designated by the Postmaster- General. Each office will have its own rules, but not mate- rially different from these.” “We deem them (the rules for redemption of stamps) entirely satisfactory, except in one respect,” Times editor Raymond wrote. “A very large amount of postage- stamps was purchased to be used as currency, of denominations rarely used by the mass of people in the payment of postage, such as 5, 10, 12 and 24-cent stamps. These purchases were made in good faith, and on what many regarded and still regard as a right interpretation of the law of Congress -- that they might be and were intended to be used as currency. The bulk of the stamps of these denominations are not available in payment of postage, and yet, if clean, the Department will not redeem them. This will occasion hardship to holders of such stamps, who will part with them at a discount to those whose correspondence calls for such unusual denom- inations. The redemption of stamps by the Government will lose much of its grace and acceptability if it does not cover the case of stamps of this description, whether they be seriously soiled and defaced or not,” he said. As late as January 21-22, 1863, printer Lewis C. Munn of Providence, RI was still offering “a few hundred envelopes for postage stamps, for 2 cents per dozen,” in ads in the Providence Daily Evening Press. Conclusion Inexpensive to produce, but very functional, the stationers found a ready market for their diminutive postage stamp envelopes that resembled apothecaries medi- cine envelopes. Printers offered to customize them to their clients’ needs. Soon large merchants, realizing the advertis- ing value of having their name imprinted on postage stamp currency envelopes, ordered envelopes printed in various values. The present writer has identified nearly 500 vari- eties of these currency substitutes, which he is in the process of cataloging, illustrating and providing merchant background information on for his new book Civil War Stamp Envelopes, the Issuers and Their Times. A catalog extract based on this research was pre- pared by this author and appeared as Chapter 26 of the current 19th edition of the standard U.S. paper money catalog, Paper Money of the United States, by Arthur and Ira Friedberg (Coin and Currency Institute, 2010, pp. 244-248). Cataloged were more than 400 varieties. Catalog numbers developed for the author’s listing were employed in that presentation too. There must have been a thousand or more different issues originally. Since the listing appeared in the Friedberg catalog, this writer has discovered five additional issuers and 53 new varieties of Civil War stamp envelopes. The 128 identified issuers (more if you count trade styles) came from 17 northeastern and midwestern cities, including Chicago, IL (1), Augusta, ME (1), Stationer William H. Murphy on Pearl Street, New York City, styled himself as D[avid] Murphy’s son for more than 30 years, including summer- fall 1862 when he issued 25- and 50-cent postage stamp envelopes and a wide series of Civil War patriotic covers. Samuel C. Upham is a famil- iar name to readers of Paper Money on account of his extensive series of CSA fac- simile notes. However, Upham’s trade was diverse, including his “Postage Stamp Holder.” Paper Money • July/August 2012 • Whole No. 280304 Baltimore, MD (1), Boston, MA (8), New Bedford, MA (1), Salem, MA (1), Springfield, MA (1), Jersey City, NJ (2), Albany, NY (4), Brooklyn, NY (3), Hudson, NY (1), New York City (94), Syracuse, NY (5), Utica, NY (1), Cincinnati, OH (1), Philadelphia, PA (4), Providence, RI (1), and dozens of anonymous issuers of the stock envelope styles. Denominations range from one cent to one dollar. Half of the known vari- eties are 25-cents. Nearly 20% are 50-cents and 6% are 10-cents. A breakdown is given in the small table to the left. These include envelopes with printed denomina- tions. The miscellaneous category includes manuscript denominations whether the envelope was raised, reduced or a blank space was filled-in. A word about rarity. When I cataloged the Civil War encased stamps, it was possible to survey hundreds of auction sales offering thousands of these items to derive the rarity ratings published in my 1995 book. Because of this extensive research, these rarities have well stood the test of time in the intervening 17 years. That is NOT possible this time around. Most individual varieties of Civil War stamp envelopes are RARE (less than four known). Many varities are UNIQUE (1 example known). However, not all types are scarce, and some issuers are – if not common – no more than scarce. However auctions of these envelopes are few and far between. Some, such as five of the stamp envelopes shown on this publication’s cover are presently uncollec- table – the only known examples are in the Smithsonian Institution’s National Numismatic Collection. These were initially discovered, imaged and reported to me by prodigious researcher and friend Peter Huntoon. Evidently all five, and other rare Civil War postage stamp envelopes, too, were donated to the Smithsonian by New York dealer Norman Stack in the late 1960s. They have resided there under- appreciated among items in the fabled “Crofoot materials” until unearthed by Mr. Huntoon in June 2010. A sixth envelope on the cover from C.W. Van Buren is the unique new discovery by Mike Sanford sent to me in March 2010. Other discoveries are likely. Since these items were ephemeral, most were separated from their stamps and discarded, slipping beneath the numismatic horizon forever. Because of these Civil War stamp envelopes’ rarity, they have escaped a good cataloging effort for a century and a half despite the good faith efforts of messrs. Henry Russell Drowne, Dick Hoober, Milt Friedberg, and the editors at Krause Publications. Despite this lack of a comprehensive catalog, the dearth of speci- mens, and the few collectors in this field, examples have sold in recent years in well-publicized auctions for upwards of $6,300+. The catalog values contained in Paper Money of the United States are a good starting point for valuing this series, indicating as they do a relative availability and popularity value. They are includ- ed in this presentation in Paper Money courtesy of Art Friedberg. Any sale depends on a willing seller and willing buyer. More inten- sive evaluation will appear in this writer’s upcoming book. Acknowledgments No researcher or writer is worth much without relying on a wide variety of sources. In this writer’s case, he relies on extensive reading of Civil War era newspapers from many cities (New York City, Chicago, San Francisco, Richmond, Cincinnati, New Orleans, among them) on microfilm while a graduate student in the 1970s. Additionally considerable research has been done via electronic databases available on the internet. This work recently garnered a research grant from Central States Numismatic Society to further my efforts. This was gratefully received. Additionally I would like to thank Ray Waltz, Kevin Foley, Matt Rothert, Mike Sanford, Herman Herst, Milt Friedberg, Peter Huntoon, David Gladfelter, Q. David Bowers, Art Kagin, Don Kagin, Art Friedberg, Dick Doty, Heritage Auctions, Stacks-Bowers, Early American History Auctions, R.A. Siegel, Spink-Smythe and Phillips Auctions for sharing images, information and other support.
In late January 1863, Providence, RI bookseller and stationer L.C. Munn was still offering “A few hundred envelopes for postage stamps, for 2 cents per dozen” in the Providence Daily Evening Press. Identified Postage Stamp Envelope varieties by printed denominations $0.05 2 $0.10 29 $0.12 2 $0.13 1 $0.15 18 $0.20 13 $0.24 1 $0.25 245 $0.30 13 $0.40 1 $0.50 92 $0.60 1 $0.75 15 misc. 57 Total 490 Paper Money • July/August 2012 • Whole No. 280 305 Do color ads in Paper Money Really Work? Just Did! . . . Gotcha Isn’t it time that YOU advertised in Paper Money? 306 Paper Money • July/August 2012 • Whole No. 280 Chicago, Illinois McNally & Co.PE0000 SENCAugusta, Maine Cofren, J.W.PE197. $0.25 Black on grey 3,000Baltimore, Maryland Anonymous PE781. .01 mss Black on beige 3,000Boston, Massachusetts Hovey, C.F. & Co.PE323. .25 mss Embossed yellow 2,500 Lincoln, Henry W.PE459. .30 mss Black on white 2,500 Morris Brothers, Pell & TrowbridgePE497. Embossed yellow 2,500 Rice, W.B. & Co.PE593. $0.25 Black on white 2,500 Snow & HapgoodPE685. blank cents Black on white laid 2,500PE687. blank cents Black on yellow laid 2,500PE689. $0.10 Black on white laid 1,750PE691. $0.10 Black on yellow laid 1,750PE693. $0.15 Black on white laid 1,750PE697. $0.15 Black on dark yellow laid 1,750PE699. $0.25 Black on white laid 1,750PE700. $0.25 Black on white 1,750PE701. $0.25 Black on yellow laid 1,750PE703. $0.25 Black on white laid 1,750PE705. $0.25 Black on white laid 1,750 PE706. $.025 Black on cream 1,750PE707. $0.25 Black on buff laid 1,750PE709. $0.25 Black on buff? laid 1,750PE711. $0.50 Black on white laid 1,750PE713. $0.50 Black on yellow laid 1,750PE715. $0.75 Black on white laid 1,750PE717 $0.75 Black on orange 2,250 Ticknor & FieldsPE755. $0.50 Black on white 2,000 Williams, A. & Co.PE777. Black on buff/pink 2,500New Bedford & Boston, Massachusetts Paulding’s ExpressPE567. .25 mss Black on white 3,000Salem, Massachusetts Browning & LongPE169. $0.25 Blue on white 3,000Springfield, Massachusetts Massasoit HousePE475. $0.10 Black on white 2,000PE477. $0.25 Black on white 2,000PE479. $0.50 Black & red on white 2,000Jersey City, New Jersey Kashow’s BazaarPE341. $0.25 Black on white 2,500 Taylors’ HotelPE727. $0.25 Black on white 2,500PE729. $0.25 Black on white 2,500 PE730. $0.25 Black on yellow 2,500PE731. $0.50 Black on yellow 2,500 PE732. $0.50 Black on orange laid 2,500Albany, New York Knickerbocker, C.PE349. $0.10 Red on yellow 1,500PE351. $0.50 Red on yellow 1,750 Lansingh’sPE353. $0.20 Black on white 1,750PE355. $0.25 Black on yellow 1,750PE357. $0.50 Black on yellow 1,750PE359. $0.50 Black on yellow 1,750 N.Y.C.R.R.PE515. $0.20 Black on turquoise 2,500 N.Y. Central R.R. Co.PE517. $0.05 Black on white 1 ,650PE519. $0.10 Black on white 1,650PE521. $0.10 Black on yellow 1,650PE523. $0.20 Black on white 1,650PE524. $0.25 Black on white 1,650PE525. $0.25 Black on white 1,650 PE526. $0.25 Black on light blue 1,650PE527. $0.50 Black on white 1,650 Van Benthuysen, C.PE761. $0.25 Black on white 1,850Brooklyn, New York Bryan, JosephPE171. $0.15 Black on lavender 3,500PE173. $0.15 Black on grey? 3,500PE175. $0.50 Black on buff 2,500PE177. $0.50 Black on dark yellow 2,500 PE178. $0.50 Black on pale yellow 2,500 Force, Jno. C.PE293. $0.50 Blue & Black on white 2,500 O’Neill’s, Chris.PE555. $0.25 Black on tan 2,500 PE557. $0.25 Black on buff 2,500Hudson & New York City Power, Bogardus & Co.PE575. $0.50 Maroon on white 2,500New York City, New York American Express Co.PE101. $0.10 Black on tan 1,950 PE102. $0.10 Black on orange 1,950 American Music HallPE103. $0.50 Black on white (buff?) 1,850PE105. $0.50 Black on white 1,850 Appleton, D. & Co.PE107. $0.10 Blue on white 1,650PE109. $0.15 Blue on white 1,650 Armstrong, H.PE111. $0.25 Black on cream 1,500 Arthur, Gregory & Co.PE113. $0.19 Black on yellow 1,250PE115. $0.25 Black on yellow 1,250PE116. $0.25 Black on white 1,250PE117. $0.50 Black on white 1,250 PE118. $0.50 Black on cream 1,250 Bennett & ReayPE119. $0.25 Black on white 1,100 PE120. $0.25 Black on cream 1,100PE121. $0.25 Black on buff laid 1,100PE123. $0.25 Dark Blue on white 1,100 PE124. $0.25 Light Blue on white 1,100PE125. $0.25 Black on white 1,100PE127. $0.50 Black on white laid 1,100PE129. $0.50 Black on white 1,100PE131. $0.50 Black on white 1,100PE133. $0.50 Black on white 1,100 Bergen & TrippPE135. $0.25 Black on white 1,000 PE136. $0.25 Black on white 1,000PE137. $0.25 Black on cream 1,000PE139. $0.25 Black on buff 1,000PE141. $0.50 Black on white 1,000 Berlin & JonesPE143. $0.25 Black on Blue 2,500 BerrianPE145. $0.50 Black on orange 2,500 Braisted, P.D. Jr.PE147. $0.25 Black/blue on buff 2,500 Brentano, AugustPE149. $0.25 Red on white 2,000 Brinckerhoff, E.O.PE151. $0.25 Black on white 2,250PE153. $0.25 Black on buff 2,250PE155. $0.25 Black on white 2,250 Broas ExchangePE157. .25 reduced Red on white 2,000PE159. $0.50 Red on white 2,000 A checklist of Civil War Postage Stamp Envelopes By Fred L. Reed © 2012 All Rights ReservedWhen this author’s listing of more than 400 varieties appeared in 2010, it doubled the number heretofore cataloged by anyother source. The listing below contains 490 entries. All postage envelopes are considered scarce, with many varieties knownonly from front panels found pasted in scrap books. Entire, whole envelopes should command a significant premium. The num-bering system below is based on that developed for this author’s forthcoming book Civil War Stamp Envelopes, the Issuers and Their Times that also appeared in Paper Money of the United States 19th edition, Part Seven. XVI, pp. 244-248. Pricing is by ArtFriedberg, used with permission. Prices are for complete envelopes with flaps, in VF-EF condition, but without stamps. Legend: Locations are in red. Items listed in PMUS #19 are in black. Varieties discovered since that publication are in green. Items in blue are pictured within this listing. (All images courtesy of Ray Waltz) Report new listings to fred@spmc.org Paper Money • July/August 2012 • Whole No. 280 307 Brown, G.C.PE161. $0.25 Black on white 2,250PE163. $0.50 Black on white 2,250 Brown & RussellPE165. $0.25 Black on white 2,250PE167. $0.25 Black on white 2,250 Burnet, John M.PE179. $0.25 Black on cream 1,450PE181. .50 raised Black on white 1,450PE183. $0.50 Black on white 1,450 Case’s MarketPE185. $0.10 Black on orange laid 2,250 Chickhaus, Chas. T.PE187. $0.25 Black on yellow 2,500PE189. $0.25 Black on yellow 2,500PE191. $0.25 Black on buff 2,500 Clark, T.L. & SonsPE193. $0.25 Black on white 2,500 Clarry & ReilleyPE195. $0.25 Black on lavender 2,500 Corlies, B.F. & MacyPE199. $0.25 Red on white 2,500PE201. $0.25 Black on white 1,750 PE203. $0.50 Red on white 2,500PE205. $0.50 Black on white 1,750PE207. .25 reduced Black on white 1,750 Crook & DuffPE209. $0.20 Black on green 2,500PE211. $0.30 Black on lavender 2,500 PE212. $0.30 Black on pink 2,500 Cutter Tower & Co.PE213. $0.25 Black on orange 2,500 Dawley, T.R.PE215. $0.50 Black on orange 1,750PE217. $0.50 Brown on yellow 1,450PE219. $0.25 Green on white 1,450PE221. .25 ms Black on white 1,250PE223. $0.50 Black on white 1,250PE225. $0.25 Green on white 1,250 PE226. $0.25 Blue-Green on white 1,250PE227. $0.25 Green on white 1,250PE229. $0.25 Green on white 1,250 PE230. $0.25 Green on white 1,250PE231. $0.50 Green on white 1,250PE233. $0.15 Black on orange 1,250PE235. $0.25 Black on white 1,250PE237. $0.50 Black on white 1,250PE239. $0.25 Black on white 1,250PE241. $0.10 Black on white 1,250PE243. $0.15 Black on white 1,250PE245. $0.15 Black on Whie 1,250PE247. $0.10 Black on violet 1,250PE249. $0.20 Black on violet 1,750PE251. .50 mss Black on violet 1,750PE253. $0.25 Black on white 1,250 PE254. $0.25 Black on white 1,250 PE255. $0.30 Black on Light green 1,750PE257. $0.50 Black on yellow laid 1,750 Doubet, Mad[ame] A.PE261. .25 mss Blue on white 2,750 Dougan, John A.PE263. $0.25 Black on orange 5,000 Duffy, FrancisPE265. $0.25 Black on cream 2,500 EmbreePE269. $0.25 Black on white 1,250PE271. $0.25 Black on buff 1,250PE273. $0.25 Black on orange 1,250PE275. .50 raised Black on orange 1,250PE277. $0.25 Black on white 1,250PE279. $0.50 Black on white 1,250PE281. $0.50 Black on buff 1,250 Excelsior Envelope ManufactoryPE283. $0.25 Black on white 2,250PE285. $0.25 Black on white 2,250PE287. $0.25 Orange-red on cream 2,250PE289. $0.50 Orange on cream 2,250 PE290. $0.50 Red on cream 2,250 Willard Felt & Co.PE291. $0.25 Black on cream 2,250 Fox, G.L.PE295. $0.25 Black on white 2,250 Fox’sPE297. $0.25 Black on white 2,250 Gazlay, JackPE299. $0.25 Black on white 2,250 German OperaPE301.PE303. $0.25 Black on white 1,850 Girard HousePE305. $0.25 Black on beige 2,250 Gould’s Dining RoomsPE307. $0.75 Black on violet laid 1,750 Hallenbeck’s Family RestaurantPE309. $0.25 Black on cream 1,750 Harlem & N.Y. Nav. Co.PE311. $0.25 Black on yellow 1,500PE312. $0.25 Black on cream 1,500PE313. $0.25 Black on green 1,500 Hatch & Co., Lithographers PE318. blank Black on white 1,250PE319. blank Black & grey on white 1,250 PE320. blank Black & yellow on white 1,250 Havana AgencyPE321. $0.25 Black on buff 2,000 Hudson Dining SaloonPE325. $0.25 Black on buff 2,500 Irving HousePE327. $0.10 Blue on yellow 4,500 JamesPE329. $0.25 Red on white 2,500 Johnston, Hamilton PE331. $..cts. Blue on white 2,250 Jones, C.O.PE333. $0.25 Black on brown 1,500 Kavanagh & FreemanPE335. $0.60 Red on white 4,000 Kaiser & Waters PE337 .$0.25 Green on white 2,500PE339. $0.50 Green on white 2,500 Kinsley & Co.PE343. $0.25 Black on orange 1,750PE345. .37/raised .25 Black on orange 1,750 Kirby & Co.PE347. $0.25 Black on light tan 1,750 Leach Writing PaperPE361. $0.25 Blue on pink bond 2,250PE363. $0.25 Blue on white 1,250PE365. $0.25 Green on white 1,750 PE366 $0.50 Green on white 1,750PE367. $0.25 Red on white 1,500PE369. $0.25 Red on white 1.500PE371. $0.50 1,250 Leach StationeryPE373. $0.25 Red on white 1,250 PE374. $0.25 Red on cream 1,250PE375. $0.25 Red on yellow 1,250PE377. $0.25 Red on pink 1,250PE379. $0.25 Red on orange 1,250PE381. $0.50 Red on yellow 1,250PE383. $0.75 Red on white 1,250 Leach, J.PE385.. $0.10 Red on white 1,250PE387. $0.10 Light Red on white 1,250PE389. $0.10 Light Red on cream 1,250PE391. $0.15 Red on white 1,250PE393. $0.15 Light Red on buff 1,250 PE394. $0.15 Orange on cream 1,250PE395. $0.20 Red on white 1,250 PE396. $0.20 Orange on cream 1,250PE397. $0.25 Red on white 1,250PE399. $0.30 Red on white 1,250PE401. $0.30 Light Red on white laid 1,250PE403. $0.30 Red on white laid 1,250 PE404. $0.30 Orange on cream 1,250PE405. $0.50 Red on white 1,250PE407. $0.50 Red on white laid 1,250PE409. $0.75 Light Red on white 1,250PE411. $0.75 Red on white 1,250PE413. $0.10 Blue on white 1,250PE415. $0.10 Blue on white 1,250PE417. $0.30 Blue on yellow 1,250PE419. $0.25 Blue on white 1,250 PE420. $0.25 Blue on cream 1,250PE421. $0.25 Blue on yellow 1,250PE423. $0.25 Blue on white 1,250PE425. $0.25 Blue on yellow 1,250PE427. $0.25 Blue on yellow 1,250PE429. $0.30 Blue on yellow 1,250PE431. $0.50 Blue on white 1,250 Paper Money • July/August 2012 • Whole No. 280308 PE432 $0.50 Blue on cream 1,250PE433. $0.50 Light Blue on white 1,250PE435. $0.75 Blue on white 1,250 PE436. $0.75 Blue on cream 1,250PE437. $0.75 Blue on yellow 1,250 PE439. $0.15 Blue on white 1,250PE441. $0.25 Blue on white 1,250 PE442 $0.25 Blue on white 1,250PE443. $0.25 Black on white 1,250PE445. $0.50 Blue on white 1,250PE447. $0.50 Dark blue on white 1,250PE449. $0.50 Red on white 1,250 PE450. $0.50 Orange on cream 1,250 Leach Writing PaperPE451. $0.25 Blue on white 1,250PE453. $0.50 Blue on white 1,250 Lee, D.W.PE455. $0.75 Black on cream 2,250PE457. (2nd type per Drowne) 2,250 Lord & Taylor PE460. $0.25 Yellow on white Unique Macoy & HerwigPE461. $0.25 Black on cream 2,250 Maillard, HyPE463. $0.20 Black on pink 2,500PE465. $0.25 Black on pink 2,500PE467. $0.25 Black on pink 2,500PE469. $0.50 Black on pink 2,500 PE470. $0.50 Black on yellow 2,500 Markowitz, M.PE471. .25 mss Black on white 2,500PE473. 1.00 mss Black on white 2,500 McElroy, FrankPE483. $0.25 Black on cream 2,500PE485. $0.50 2,500 Mercantile Dining RoomPE487. (blank) cts. Black on cream 2,250PE489. (blank) cts. Black on white 2,250 Metropolitan HotelPE491. $0.10 Black on brown 2,000 Miller & GrantPE493. $0.25 Blue on white 2,500 PE494. $0.25 Blue on white 2,500 Montezuma Dining HallPE495. $0.25 Black on buff 2,750 Moser, Andrew APE499. $0.25 Black on Beige 2,250 Murphy, WmPE501. $0.25 2,750 PE502. $0.25 Black on cream 2,750PE503. $0.25 Black on white 2,750 Murphy, W.HPE505. $0.25 2,250 PE507. $0.50 Red on cream 2,250 National Express Co.PE509. $0.25 Black on white 2,250 N.Y. Consolidated Stage CoPE511. $0.50 Black on white 2,250PE513. $0.50 Black on orange 2,250 New Bowery TheatrePE529. $0.25 Black on cream 1,500 PE530. $0.25 Black on yellow 1,500PE531. $0.25 Black on white 1,500PE533. $0.25 Black on yellow 1,500 Niblo’s Garden/Edwin ForrestPE535. $0.25 Black on yellow 2,500PE537. $0.25 Black on orange 2,500PE539. $0.50 Black on yellow 2,500 Niblo’s Garden/Great Ravel TroupePE541. $0.50 Black on white 2,500 PE542. $0.50 Black on yellow 2,500PE543. $0.50 Black on orange 2,500 Nixon’s Cremorne GardenPE545. $0.10 Blue on white 2,250PE547. .10 reduced Blue on white 2,250PE549. $0.25 Blue on white 2,250PE551. .25 raised Blue on white 2,250 PE552. $0.25 Green on yellow 2,250 (Nixon’s) Cremorne GardenPE553. (blank) Rubber stamp 2,250 Oyster Bay HousePE559. $0.25 Black on white 2,250PE561. $0.25 Black on white 2,250 Oyster HousePE563. $0.25 Green on white 2,250 PE564. $0.25 Black on white 2,250 Van Name, Wm.PE565. $0.25 Red on cream 2,250 Pekin Tea StorePE569. $0.50 Black on white 2,250 Pettit & Crook’sPE571. blank cents Black on beige 2,250 Pomroy’sPE573. $0.50 Red on white 2,250 Raynor, S.PE577. $0.25 Black on white 1,250PE579. $0.25 Black on yellow 1,250PE581. $0.25 Blue on yellow 1,250PE583. $0.50 Black on yellow 1,250 Reeves, Capt. TomPE585. $0.10 Black on white 1,750PE587. $0.25 Black on white 1,750PE589. $0.25 Brown on white 1,750 Revere HousePE591. $0.25 Red on white 2,250 Richardson, ThomasPE595. $0.25 Black on orange 2,000 Robins, Wm.PE599. $0.25 Black on cream 1,250PE601. $0.25 Black on white 1,250PE603. $0.25 Black on dark yellow 1,250 P604. $0.25 Black on light yellow 1,250PE605. $0.50 Red on white 1,250PE607. $0.50 Red on yellow 1,250 PE608. $0.25 Black on cream 1,250PE609. $0.25 Black on white 1,250 PE610. $0.25 Black on white laid 1,250PE611. $0.25 Black on beige 1,250 PE612. $0.25 Black on yellow 1,250PE613. $0.25 Black on orange laid 1,250 Scovel, ReubenPE615. $0.25 Red on white 1,500PE617. $0.25 Blue on yellow 1,500 PE619. $0.50 Blue on yellow 1,500 Scovel, R.PE621. $0.25 Black on white 1,250PE623. $0.25 Black on yellow 1,250PE625. $0.25 Black on white 1,250PE627. $0.25 Black on white 1,250PE629. $0.25 Black on yellow 1,250PE631. $0.25 1,250 Shelley, C.C.PE633. $0.25 Black on white 2,250PE635. $0.50 Black on white 2,250 Smith, H.PE637. $0.25 Blue on white 1,750PE639. $0.10 Blue on white 1,750PE641. $0.10 Blue on white 1,750PE643. $0.10 Red on white 1,750PE645. .10 mss Blue on white 1,750PE647. .10 mss Red on white 1,750 PE648. $0.15 Blue on white 1,750PE649. $0.15 Blue on white 1,750 PE651. $0.24 Blue on white 1,750PE653. $0.25 Blue on white 1,750PE654. $0.25 Blue on white 1,250PE655. $0.50 Blue on white 1,250PE657. .50 raised Blue on white 1,250PE659. $0.20 Blue on white 1,250PE661. $0.25 Blue on white 1,250PE663. $0.25 Blue on white 1,250 PE664. $0.25 Turquoise on white 1,250PE665. $0.10 Blue on white 1,250PE667. $0.12 Blue on white 1,250 PE669. $0.13 Turquoise on white 1,250PE671. $0.25 Blue on white 1,250PE673. $0.25 Light blue on white 1,250 PE674. $0.25 Turquoise on white 1,250 Paper Money • July/August 2012 • Whole No. 280 309 800.458.4646 West Coast Office 800.566.2580 East Coast Office 1063 McGaw Avenue Ste 100, CA 92614 • 949.253.0916 123 West 57th Street, New York, NY 10019 • 212.582.2580 P.O. Box 1804, Wolfeboro, NH 03894 • 603.569.0823 Email: info@stacksbowers.com • Website: www.stacksbowers.com SBG PM 11.22.11 We Invite You to Consign U.S. AND WORLD COINS AND CURRENCY Date Auction Consignment Deadline Jan 6-7, 2012 Stack’s Bowers and Ponterio Closed Official N.Y.I.N.C. Auction New York, NY World Coins and Paper Money Jan 25-27 2012 Stack’s Bowers Galleries Closed New York Americana Sale New York, NY U.S. Coins and Currency Mar 19-24, 2012 Stack’s Bowers Galleries January 30, 2012 Official Auction of the Whitman Coin & Collectibles Baltimore Expo Baltimore, MD U.S. Coins and Currency Apr 2-4, 2012 Stack’s Bowers and Ponterio January 9, 2012 Hong Kong Auction of Chinese and Asian Coins & Currency Hong Kong Chinese and Asian Coins & Currency Aug 1-11 2012 Stack’s Bowers Galleries June 8, 2012 Official Auctions for the ANA World’s Fair of Money Philadelphia, PA U.S. Coins and Currency Aug 1-11 2012 Stack’s Bowers and Ponterio May 14, 2012 Official Auctions for the ANA World’s Fair of Money Philadelphia, PA World Coins and Paper Money Aug 20-22, 2012 Stack’s Bowers and Ponterio May 21, 2012 Hong Kong Auction of Chinese and Asian Coins & Currency Hong Kong Chinese and Asian Coins & Currency Sept 18-22, 2012 Stack’s Bowers Galleries July 23, 2012 Philadelphia Americana Sale Philadelphia, PA U.S. Coins and Currency We would like to sell your coins and currency to the highest bidders in an upcoming Stack’s Bowers Galleries auction! Stack’s Bowers Galleries Upcoming Auction Schedule We also buy and sell direct – please call for information. Call today to find out how you can maximize your consignment potential in an upcoming Stack’s Bowers Galleries auction. Paper Money • July/August 2012 • Whole No. 280310PE675. $0.25 Dark blue on white 1,250PE676. $0.25 Blue on white 1,250PE677. $0.25 Blue on white 1,250PE679. $0.25 Blue on white 1,250PE680. $0.25 Blue on white 1,250PE681. $0.50 Dark blue on white 1,250PE682. $0.50 Light blue on white 1,250PE683. $0.50 Light blue on white 1,250PE684. $0.50 Turquoise on white 1,250 SonnebornPE719. $0.25 Black on cream 2,250PE721. $0.25 Black on white 2,250PE723. $0.25 Black on orange 2,250 Taylor, Wm.PE725. $0.25 Blue on white 2,500 Thomas, DionPE733. $0.10 1,750PE735. $0.30 1,750PE737. $0.30 Black on green 1,750 Thompson, R.D.PE739. blank 1,250 PE741. $0.10 Black on yellow 1,250PE743. $0.25 Black on white 1,250PE745. $0.25 Black on dark tan 1,250PE747. $0.25 Black on yellow 1,250PE749. $0.25 Black on orange 1,250PE751. $0.25 Black on yellow 1,250 PE752. $0.25 Black on orange 1,250PE753. $0.50 Black on tan 1,250 Turney, G.W. & S.PE757. $0.25 Black on tan 2,250 Van Bergen, C.W.PE564. $0.25 Black on white 2,250 Van Name, Wm.PE565. $0.25 Red on cream 2,250 Walker, DavidPE763. $0.25 Black on white 1,500PE765. $0.50 Black on white 1,500 Ward’sPE767. $0.25 Black on white 4,000 Wiley, JamesPE771. $0.25 Black on yellow 2,250PE773. .25 mss Black on yellow 2,250PE775. $0.50 Black on yellow 2,250 WilliardPE779. $0.25 Black on orange 2,250Syracuse, New York Brewster & Co., P.R. PE258. $0.25 Blue & rose on white Unique Dawson, E.S.PE259. $0.50 Black on white 2,000 Marsh, Dillaye & Rogers PE474. blank Black on cream Unique Stone & Mannheimer PE724. $0.15 Blue on white Unique Willard & Hawley PE780. $0.25 hw Embossed/cream laid UniqueUtica, New York Webb & WalkerPE769. $0.25 Black on white 2,250Cincinnati, Ohio Harpel, (Oscar)PE315. $0.05 Black on white 2,000PE317. $0.20 Black on orange 2,000Philadelphia, Pennsylvania Dunton & NinesteelPE267. blank cents Black on white 2,500 Maxwell, J.G. & SonPE481. $0.25 Black on orange 2,500 Riggin, E.M.PE597. $0.50 Black on white 2,500 Upham, S.C.PE759. (blank) Black on cream 2,250Providence, Rhode Island Munn, L.C.PE000. SENCUnknown AnonymousPE783. $0.25 Black on white 750PE785. $0.25 Black on white 750PE787. $0.25 Black on manilla 750PE789. $0.25 Black on white 750PE791. $0.25 Black on white craft 750PE793. blank Red on white 975PE795. $0.25 Black on brown 975PE797. $0.10 Black on orange 975PE799. $0.10 Red-Brown on white 975PE801. $0.10 Bright Red on white 975PE803. $0.12 Green on white 975PE805. $0.15 Black on white 750PE807. $0.25 Black on white 750PE809. $0.25 Blue on white 750PE811. $0.25 Black on yellow. laid 975 PE812 $0.25 Black on orange laid 975PE813. $0.25 Black on tan 975PE815. $0.25 Black on tan 975PE817. $0.25 Black on brown laid 975PE819. $0.50 Black on Light green 975PE821. $0.50 Black on brown laid 975PE823. $0.50 Black on brown laid 975PE825. $0.25 Blue on white 700PE827. $0.25 Red on white 750PE829. $0.25 Blue on white 750PE831. $0.25 Blue on white 750PE833. $0.25 Blue on white 750PE835. $0.25 Black on violet laid 750PE837. $0.20 Blue on lavender 750 PE838. $0.20 Blue on white 750PE839. $0.25 Black on white 600PE841. $0.25 Blue on grey 750PE843. $0.25 Black on yellow 750PE845. $0.25 Black on cream 750PE847. $0.25 Black on Manilla 750PE849. $0.25 Black on white 600PE851. $0.25 Green on white 750 PE852. $0.25 Black on bright yellow 750PE853. $0.25 Blue on white 600PE855. $0.40 Black on white 600PE857. $1 raised Black on white 1,250PE859. $0.30 Black on white 1,250PE861. $0.30 Black on white 1,250PE863. $0.25 Black on white 750 PE865. $0.50 Black on brt. yellow 750PE867. $0.50 Black on orange 750PE869. $0.50 Black on light blue 750 PE871. $0.30 Blue on white 750PE873. $0.50 Orange on white 750PE875. $0.25 Black on white 750PE877. .50 raised Black on white 750PE879. $0.50 Black on white 750PE881. $0.75 Green on white 1,000 PE882. .25 reduced Green on White 1,250PE883. .90 raised Green on white 1,000PE885. $0.50 Black on green 1,000PE887. $0.25 Blue on light green 900PE889. $0.75 Black on orange laid 900PE891. $0.50 Black on cream 900 PE892. $0.50 Black on cream 900PE893. $0.25 Black on cream 900PE895. $0.25 Red on cream 900PE897. $0.50 Red on cream 900PE899. $0.15 Black on white 750PE901. $0.25 Black on cream 900PE903. $0.25 Black on white 750PE905. $0.25 Black on brt. yellow 900PE907. $0.25 Black on yellow buff 900PE909. $0.25 Black on buff 900PE911. $0.25 Black on brt. yellow 900PE913. $0.25 Black on brt. yellow 900PE915. $0.25 Black on brt. yellow 900PE917. $0.25 Black on orange 900PE919. $0.25 Blue on white 900PE921. $0.75 Blue on white 1,150 PE922. $0.25 Black on white 750 If you believe you have an unlisted variety, please contact the author at fred@spmc.org.
Paper Money • July/August 2012 • Whole No. 280 311 Paper Money • July/August 2012 • Whole No. 280312 THE TELEGRAM SHOWN ON PAGE 314 REVEALS THAT ALL THE $1Silver Certification Series of 1935A R&S experimental paper notes werereleased through the Chicago Federal Reserve Bank. A penciled notation onthe back reads “Don’t break up” an obvious reference to a directive to release all of them together, probably in a limited area, as quickly as possible. The cryptic notes on this single scrap of paper found in the National Archives yield more specific information about the issuance of these popular notes than anything previously available in the numismatic literature. The telegram came as part of the auction lot containing the note illustrated here from a sale held several decades ago. Recipient B. J. Lazar was the managing director of the Cincinnati Branch of the Cleveland Federal Reserve Bank and a prominent member of the Cincinnati Numismatic Association. We have not been able to determine the identity of sender Lowe. The note was reported to have been consigned by a Cincinnati collector with The Paper Column By Peter Huntoon Release of $1 Series of 1935A R&S Experimentals This is the first R experimental paper note. R stands for regular paper. (Photo courtesy of John Schwartz) Paper Money • July/August 2012 • Whole No. 280 313 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: lyn@lynknight.com - support@lynknight.c om Whether you’re buying or selling, visit our website: www.lynknight.com Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency Paper Money • July/August 2012 • Whole No. 280314 good connections to the Cincinnati Branch of the Cleveland Federal Reserve Bank. It is possible that Lazar was the consigner! The telegram is dated July 12, 1944, and it appears from the past tense of the message that the notes already had been released. The July 12 date is entirely consis- tent with information available from a BEP numbering division diary at the BEP Historical Resource Center, which shows that the SC block was numbered from April 22, 1944, through June 24, 1944. The special R and S notes were delivered to the Treasury June 20th. Those were heady days. The D-day landings in Normandy on June 5th had just taken place, opening the second front in the European theatre. Eisenhower’s Allied armies were licking their wounds, mopping up Caen, and marshaling for their drive across France and beyond. They had established a costly major beachhead, but the battle for Europe had a long way to go, and everyone knew it and everyone was anxious. The big news in June and July was from the other side of the world. Nimitz’s thrust through the Mariana Islands in the central Pacific was in full swing. His inva- sion fleet, and the Marines and solders it carried, totaled a quarter million men, and they were chewing their way across the crucial real estate needed to build the biggest air bases the world would know. The Mariana Islands of Saipan, Guam and Tinian would host the airfields from which we would launch the horrific B29 bombing raids over Japan. The bitter battle for Saipan, June 15-July 9, had just been fought. On the first day alone, 20,000 Marines packed in shallow-draught landing craft clawed their way across perilous corral reefs and were disgorged in three separate assault waves onto the sandy beaches to gain a toehold, facing some 30,000 entrenched Japanese. Three weeks later after they and many reserves had wrested that 42 square miles from the defenders 3,500 Americans lay dead, 13,000 were wounded. Only 600 of the Japanese survived. Telegram telling us where and approximately when the R and S experimentals were released. (John Schwartz document) Paper Money • July/August 2012 • Whole No. 280 315 The invasion of Guam commenced July 20, and that grueling campaign would wear on to August 10. There 1,500 U.S. died along with 11,000 Japanese, but we won back a bigger chunk of real estate. This was American territory, spoils ceded to us after the Spanish-American War of 1898, 225 square miles of it, half of it as flat as an aircraft carrier. The Tinian campaign ground on simultaneously from July 24 to August 1. Tinian lay just a little more than three miles off the southwest coast of Saipan. By the time it was secured, 290 U.S. had died along with 9,000 Japanese defenders. North Field, which we would build there, would become the launching pad for the Hiroshima and Nagasaki atomic bomb runs of August 6 and 9, 1945. The Seabees began scratching out airfields on those islands before the killing stopped. By mid-1945, 800 B29 Superfortresses would rise twice a week from the bases on the Mariana and swarm toward Japan 1,500 miles away. So many were in the air, they would divide into two streams so they could burn down two cities each night they arrived. The R and S notes were coursing through the veins of commerce in Chicago during that summer. People were using them to buy newspapers to keep up with the war news, and getting silver coins as change. You wonder if many even noticed the red Rs and Ss, and if they did, did they particularly care enough to wonder what they rep- resented.
June 12th, half a world away and a month before the release of the R and S experimentals, a pilot in a U.S. fighter plane looks down on Saipan during the pre-invasion naval bombardment of the island defenses. The Philippine Sea stretches to the hori- zon toward the west, and the dots on the water under and to the right of the clouds are ships in the vast invasion fleet. Smoke rises from targets they are shelling on the island. Twenty thousand Marines will hit the beaches in three days under withering machine gun, artillery and mortar fire, but for now all they can do is shield their ears from the blasts of the big guns on their ships and wait and sweat. They gambled with Hawaii brown seals as they killed time during their agonizing wait. (U. S. National Archives photo) was advanced only in response to a change in the Treasury signa- tures. Thus, collectors had a slew of new varieties to collect because every class and denomination was impacted. Small note specialists relished the change for a second rea- son. It gave rise to concurrent production of notes from plates bearing the older micro numbers alongside new plates with the macro numbers. The mixing of the two sizes between the backs and faces gave birth to the ever popular mule varieties that are so avidly collect- ed. A mule is a note with macro num- ber on one side and micro number on the other. There is a rich trove of these varieties because they spread through every class and denomination. Our small note catalogs have devoted much ink to listing all the mule varieties and several are rare. The first macro plate to go to press was the number 1 $1 Series of 1935A Silver Certificate face on January 6, 1938. The first macro back was $1 plate serial 930, which went to press on January 28th. Notice that the first printings from the number 1 Series of 1935A face had to be mated with micro backs. The resulting notes were mules! Macro plates in the other classes and denominations came on line over the next few years. The first macro $5 plate was a Series of 1934A Silver Certificate face that was put to press on January 10th. Those $5 sheets found themselves in competition with the macro $1s as to which would arrive first in the serial numbering section. The $5s won. They began to be numbered on January 25th. The first serial number applied to one was D50352001A. That particular note had a micro back plate number, so it was the very first completed mule out of the chute! The first $1 1935A faces were numbered the next day, with the first bearing serial M07668001A. The first $1 1935A star note came along two days later on January 28th, specifically *17076001A. Discovery of the explanation for the change in the size of the numbers has been a quest of mine for decades. I’ve been writing about small size mules since 1967, and always wondered just why they came about. It always has struck me as peculiar to avidly collect the dif- ferent series and especially the various mule varieties without understanding the reason for their existence! To finally know the reason brings closure to the topic. Wanna buy my collection? I’ve been rummaging through official Treasury records housed in various repositories in Washington, DC, since the late 1960s. I figured someday I’d come across the explanation for the change. It never revealed itself. Several of us – Doug Murray, Lee Lofthus, Jamie Yakes – have been working our way through the old correspondence files from the Bureau of Engraving and Printing and the Office of the Comptroller of the Currency that are now housed in the National Archives. Lee Lofthus opened up a third particularly rich treasure trove a few years ago by exhuming similar docu- ments archived from Commissioner of the Bureau of the Public Debt. He astutely recognized that most decisions concerning currency were made or passed through the Commissioner. I figured that the explanation for adopting the macro num- bers had to reside somewhere in the BEP or BPD files. The time had arrived to specifically look for it. My plan was to start with the correspondence files created by the Director of the BEP because they are organized by year. We long have known that the decision to change the numbers was made in 1937. I was going to get into the 1937 files for the first time. Several boxes representing 1937 arrived in the Archives reading room for me to digest on May 1, 2012. A quick glance revealed that as expected most of the boxes contained files per- taining to personnel matters. As I started digging, it was clear that the 1937 boxes contained a dearth of technical material. It was shaping up to be another fruitless search. But one can’t throw up his hands and quit. I bypassed all the personnel files and started thumbing through the few folders that remained, most of which had nothing to do with currency. Then I came across a file simply labeled “Plates.” The folder was unusually thin, holding only a small sheaf of correspondence. It looked hopeless, but I dutifully pulled it out of the box. Then there it was – the entire story as related above. The change in the size of the numbers clearly was the biggest innova- tion involving plates that Bureau personnel had to contend with in 1937! You could have knocked me over with a feather! Source of Data Bureau of Engraving and Printing, 1937, Central Correspondence Files, Record Group 318, U. S. National Archives, College Park , Maryland (Locator 318:450/79/15/04-06 box 260, file: Plates).
Paper Money • July/August 2012 • Whole No. 280316 Figure 3. Plate serial numbers would have appeared in the upper left corner of small note faces as shown on this mock-up had BEP Director Alvin Hall’s October, 1937, recommendation on their placement been approved. Origin of Macro Plate Numbers Laid to Secret Service . . . Continued from page 296 Paper Money • July/August 2012 • Whole No. 280 317 Sitting on the pot, musing over large denomination bills, etc. T HE ONLY PORN MY WIFE LETS ME BRING IN THEhouse these days is the occasional Heritage auction catalog. Hiding in the upstairs bathroom away from the kids, I enjoy extended, ah, research sessions (Educational deuce, well-margin- ed, perfect paper quality—yessss) into beautiful things that I can never afford, not even for a mid-life crisis. In a recent catalog from April 2012, one particular item caught my eye—Lot #16244, a $10,000 note, ex-Binion hoard—that got me thinking about the nature of currency, and what it means to collect it. When you buy a rare painting, you put it on the wall and look at it. Getting looked at is the function of the painting. When you buy a rare piece of currency, you put it in a holder and look at it. Yet getting looked at isn’t at all the function of currency, and of money more generally. Money’s meant to be spent. The idea of paying millions for, say, a 1913 Liberty nickel seems so marvelous precisely because a nickel is otherwise worth, well, just five cents. But what can it possibly mean to spend money to collect a $10,000 piece of money? We can easily calculate the sacrifice in terms of interest for- gone. Below is the compound interest that would have been paid on four large and uncurrent denominations, at three differ- ent rates: Cumulative Returns at Compound Interest, Through 2012 2% 3% 4% $500 (series 1934) $ 2,343 $ 5,015 $ 10,655 $1000 (series 1934) 4,686 10,031 21,311 $5000 (series 1934) 23,431 50,150 106,554 $10,000 (series 1934) 46,861 100,301 213,108 These calculations assume that a note was collected the year of its series, although of course they were issued in later years. On the other hand, the interest rate range is conservative. According to the U.S. Treasury, as of December 2011 there were 336 $10,000, and 3,420 $5,000 notes, outstanding. So who holds those 336 bad boys? Benny Binion’s old display at The Horseshoe was the ideal way to showcase them since they screamed, with Vegas excess, look at me, I’m foregoing com- pound interest! I can imagine Warren Buffet keeping a few in his pocket to tip the strippers in Omaha. Otherwise, those notes must sit in various collections, quietly secreting hundreds of dol- lars a year in unpaid interest. In any event, on April 18th, Lot #16244 went for $86,250. That’s equivalent to $10,000 invested in 1934 at a shade over 2.8%. Whoever bought the lot couldn’t have been in it for the money.
Chump Change Loren Gatch I don’t get upset often, but . . . One of the best ways that I have found in the last couple years to build my collections is through internet purchases. In recent years, I have made thousands of them. Often I suspect I never would have discovered some of the neat items I’ve turned up in this manner. I love going to shows and visiting with deal- ers face-to-face, but I find a great variety of material is now available electronically, through normal live auctions offered via the internet as well as in hotel ballrooms, or on websites such as eBay. Increasingly, however, I find when my item appears in my mail box, that unwrapping my treasure is a frustrating pursuit. Fragile paper items are packed in bubble wrap, cellophane, duck tape, and clear platic tape ad nauseum. It’s dangerous to the health of the item so mummified by overwrappng and over-tap- ing to cut blindly into such wrappings. And its increasingly dif- ficult to pull off the miles of excess clear tape without bending, folding and creasing the contents. Over-packaging by amateur vendors is my number one complaint about such electronic purchases. What are the seller’s thinking? A paper item in a stiff holder (not a padded mailer) is far superior to most of the packing I get from some eBay sellers. I think the comic book dealers have the best system: a self-seal- ing clear wrapper and stiff cardboard insert in a manila envelope and voila I become a happy purchaser when my item arrives. Perhaps you have encountered similar difficulties with some of your internet purchases. If so you know what I mean, and if not you probably are no longer reading my rant. My other biggest complaint with these amateur auctioneers is their use of USPS materials in out of mail class or even with third party transportation companies. Here’s what I’m getting at. Seller A grabs a bunch of Priority or Express mail cardboard boxes or mailers of various types and uses them inside parcels sent via UPS instead of the Post Office. Who does he think he is kidding ripping off the taxpayers for those packing materials. If he used a Priority mailer for an item sent via USPS mail deliver- ies, he would be employing these materials in the manner in which they were intended. But when he uses them surreptitious- ly outside the Post Office channels -- or even inside the Post Office channels but on a cheaper class of delivery -- he is part of the “WASTE, FRAUD AND ABUSE” that is in part responsible for escalating this country’s deficit up the trillions scale. The Post Office is constantly in the red; here’s part of the reason! I figure that packing materials are part of the cost of doing business. You don’t see the big name companies in this hobby cutting corners by ripping off Post Office materials, but the wannabes think they are putting something over on “The Man,” or some such silliness. Come on, sellers, we taxpayers are “The Man.” Look in the mirror; then clean up your act.
The Editor’s Notebook Fred L. Reed III Fred@spmc.org Paper Money • July/August 2012 • Whole No. 280318 Just adding more zeros doesn’t make a fiat note more valuable I have a good friend--resourceful, smart and prepared--who always has with him, a throw-down $100 bill. Stuff happens, as it is always inclined to do, but he will never encounter that unpleasant moment in time when he’s standing in front of a surly cashier with five or six hurried, stressed–out customers behind him, reaching into his pocket and then realizing, “Damn I left my money at home!” I carry with me a larger bill, larger that is, with zeros not value: a $50 trillion dollar Zimbabwe currency note. It’s proba- bly unnecessary to mention the note was legally devalued (that is taken out of circulation and replaced with notes with fewer zeros). After all, even when it was current, it had virtually no value. Zimbabwe also printed $100 trillion dollar notes. Maybe it got to the point where zeros were just randomly added and no one cared. Sure, what the heck, make it a quadrillion. How about a few more zeros to make it a decillion? With that kind of monopoly-money, how many thousands of dollars were needed to buy a cup of coffee? And how much would expensive things--like cars and houses--have cost? How did they squeeze all those zeros on a standard size note? And how do you carry around all that paper? Perhaps, the most obvious question was: Somewhere along the way to this monetary perdition, why didn’t the Zimbabwe government get to the point when they said “enough”? You would think that once they got to a million dol- lar bill, or a billion dollar bill, they would have realized that putting more zeros on paper wasn’t making anything better. I was at my favorite watering hole not long ago and hap- pened to show the Zimbabwe note to a buddy, let’s call him Bob. Without blinking or hesitation, Bob reached into his pocket and pulled out a bill to top mine. It’s one of those phony U.S. cur- rency-looking bills where the photo or amount is changed. In this case it was a FAKE trillion dollar note, with Abe Lincoln’s image on it. Of course it never had any value (other than what one would spend for the novelty of it). But then my Zimbabwe $50 trillion bill—which was indeed issued by a real govern- ment—didn’t have any value either. After all that, a $20 bill easily covered my beverages and a tip.
Paul Herbert Don’t get me started One fella’s dog may be the other guy’s doggie One facet of our hobby that constantly amazes me is the sheer number of ways people appreciate currency. In my case, my primary interest and excitement in seeing a new note is historical, at a micro-inspection level. I cross-check signatures against dates against lists of bank officers (often compiled myself from primary documents) to look for fraudulent information, or sometimes to fill in gaps in the existing history. I check plate letters and serial numbers against what bank records exist to try to piece together print runs and sheet arrangements. In a few cases, I’ve been able to find enough documentation from obsolete-era banks to form a complete list of the notes issued, so at last I know how many I’m missing, or haven’t even seen yet. But I don’t think this is too different from many other col- lectors’ experiences. In other specialties, this activity would take the form of hunting serial numbers, or plate numbers, mules, stars, replacements, cross-over pairs, or new highest- and lowest- serials in a given run. When my wife looks at a note, she sees the artistry and crafts- manship involved. The quality of engraving, especially those printed by the American and National Bank Note Companies, is what piques her interest. Overprints and underprints, anti-coun- terfeiting measures and paper composition – these are the parts of the hobby she enjoys. Were she to actually start collecting, I think she would fall in with those who enjoy proofs, specimens, error notes, or the host of ancillary items such as printing plates and engravers’ samples. These are two broad categories of collectors, and yet much falls outside their scope. Some are intrigued by the legal aspects of the various issues of fed- eral currency. For others, the details and telltale traits of counter- feit notes, or altered and raised notes are of primary interest. Vignettes and their significance, as well as portraits, are the sub- ject of many collectors and researchers of course – I have a nearly complete set of Roger Durand’s amazing books on my shelf, and browse them on a regular basis. And I’m sure I’m missing many more specialized interests. Finally, there are my niece and nephew, who look at notes in my collection, point and say “Doggie!” I hope you all look at your collections, or others for that matter, in a new and different way. Find a new way to appreciate currency, and find your own doggie.
John Davenport Spurious Issues Paper Money • July/August 2012 • Whole No. 280 319 DO YOU COLLECT FISCAL PAPER? Join the American Society of Check Collectors http://members.aol.com/asccinfo or write to Lyman Hensley, 473 East Elm St., Sycamore, IL 60178. Dues are $13 per year for U.S. residents, $17 for Canadian and Mexican residents, and $23 for those in foreign locations. This space for rent Only $225 for six issues, or $125 for three issues, or $45 for one issue DBR Currency We pay top dollar for • National bank notes • Large size star notes • Large size FRNs and FRBNs www.DBRCurrency.com P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 info@DBRCurrency.com Fax: 858-679-7505 See our eBay auctions under user ID DBRCurrency You are invited to visit our web page www.kyzivatcurrency.com For the past 12 years we have offered a good selection of conservatively grad- ed, reasonably priced currency for the collector All notes are imaged for your review NATIONAL BANK NOTES LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM KYZIVAT (708) 784-0974 P.O. Box 451 Western Springs, IL 60558 E-mail tkyzivat@kyzivatcurrency.com Another chance to sell your duplicate notes at “collector prices” Advertise in this space and take home the big bucks!!! Paper Money • July/August 2012 • Whole No. 280320