Paper Money - Vol. LII, No. 1 - Whole No. 283 - January - February 2013

PAPER MONEY OFFICIAL JOURNAL OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. LII, NO. 1, WHOLE NO. 283 WWW.SPMC.ORG JANUARY/FEBRUARY 2013 Seldom Seen Stuff: Ron Horstman shares some Certificates of Deposit Jan-Feb 2013 SPMC cover_Jan/Feb Cover 11/26/12 1:13 PM Page 1 February 12, 2013 Happy Birthday, Abe Now more than ever Jan-Feb 2013 SPMC cover_Jan/Feb Cover 11/26/12 1:13 PM Page 2 Paper Money • January/February 2013 • Whole No. 283 1 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., 2013. 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. Send changes of address, inquiries concerning non-delivery, and requests for additional copies of this issue to the Secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts will be published as soon as possible; however, publication in a specific issue can- not be guaranteed. Include an SASE for acknowledg- ment, if desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be typed (one side of paper only), double-spaced with at least 1-inch margins. The author’s name, address and telephone number should appear on the first page. Authors should retain a copy for their records. Authors are encouraged to submit a copy on a MAC CD, identified with the name and ver- sion of software used. A double-spaced printout must accompany the CD. Authors may also transmit articles via e-mail to the Editor at the SPMC web site (fred@spmc.org). Original illustrations are preferred but do not send items of value requiring Certified, Insured or Registered Mail. Write or e-mail ahead for special instructions. Scans should be grayscale or color at 300 dpi. Jpegs are preferred. ADvERTISINg • All advertising accepted on space available basis • Copy/cor re spond ence should be sent to Editor • All advertising is payable in advance • Ads are accepted on a “good Faith” basis • Terms are “Until Forbid” • Ads are Run of Press (ROP) unless accepted on premium contract basis • Limited premium space/rates available To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). Camera-ready copy, or electronic ads in pdf format, or in Quark Express on a MAC CD with fonts supplied are acceptable. ADvERTISINg RATES Space 1 time 3 times 6 times Full Color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page Color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but not guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertise- ments, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that por- tion of an ad in which a typographical error occurs upon prompt notification.
Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LII, No. 1 Whole No. 283 January/February 2013 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 118162, Carrollton, TX 75011 Visit the SPMC web site: www.spmc.org FEATURES Start-Up Problems with Series 1996 $50 FRNs . . . . . . . . . . . . 3 By Joe Farrenkopf Seal Varieties on Series 1882 National Bank Note Backs . . . 10 By Peter Huntoon & Andrew Shiva Alabama’s ‘Illegal’ Scrip of 1863 . . . . . . . . . . . . . . . . . . . . . . . 20 By Bill Gunther The Paper Column: New Deal Design Changes . . . . . . . . . . . . . . . . .31 By Jamie Yakes & Peter Huntoon Series of 1928 $1 United States Notes . . . . . . . . . . . . . . . . . . . 40 By Jamie Yakes Small Notes: Supply Problem Led to Large Serials . . . . . . . . . 53 By Jamie Yakes The Buck Starts Here: Unissued $2 Educational Note . . . . . . 54 By Gene Hessler First National Bank of Bells, Texas . . . . . . . . . . . . . . . . . . . . . 60 By Frank Clark Mrs. Annie M. Moores, National Bank President . . . . . . . . . . . 62 By Karl Sanford Kabelac Seldom Seen: United States Certificates of Deposit . . . . . . . . 66 By Ron Horstman Mary A. Bartlett, National Bank President . . . . . . . . . . . . . . . 70 By Karl Sanford Kabelac Mrs. E.F. Sells, National Bank President . . . . . . . . . . . . . . . . . 73 By Karl Sanford Kabelac SOCIETY & HOBBY NEWS Information and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Your Subscription to Paper Money Has Expired If . . . . . . . . . . . . . . . . . . . . . 6 Coin & Currency Inst. brings out 2nd. Kravitz ed. in full color . . . . . . . . . . . . . .8 President’s Column by Mark Anderson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Uncoupled: Paper Money’s Odd Couple by Fred Schwan & Joseph E. Boling . . .56 11th Annual George W. Wait Award Announcement . . . . . . . . . . . . . . . . . . . .75 Back of the Back Page with Loren Gatch and Fred Reed . . . . . . . . . . . . . . .77 The Back Page with Paul Herbert and John Davenport . . . . . . . . . . . . . . . . .78 If your mailing label reads Jan or Feb 2013 RENEW NOW Paper Money • January/February 2013 • Whole No. 2832 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. The Society has dispensed with issuing annual membership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Memberships for all members who joined the Society prior to January 2010 are on a calendar year basis. Dues renewals are due each December. Memberships for those who joined snce January 2010 are on an annual year basis, for example March to March or June-June. These renewals are due before expiration date. Renewal envelopes appear in a fall issue of Paper Money. Checks should be sent to the Secretary.
SPMC LM 6 BRNA FUN Paper Money • January/February 2013 • Whole No. 283 3 THE BUREAU OF ENGRAVING AND PRINTING (BEP) BEGANproducing series 1996 $50 Federal Reserve Notes in June 1997, with ascheduled release date of October 27 that same year. But an engravingdetail unexpectedly resulted in the production of a significant percentage of flawed notes. After determining the cause of the problem, the BEP made modifi- cations to the printing plates and fine-tuned inspection equipment to improve detection of the flaws. With the production problems largely resolved by early September, the BEP was able to fill the Federal Reserve’s request for enough high- quality notes in time for their scheduled release into circulation. What happened to the 217.6 million newly designed notes — potentially many with flaws — that were printed prior to the implementation of the corrective changes? In an attempt to find the answer to that question, I began searching for and documenting series 1996 $50 Federal Reserve Notes still circulating almost thirteen years after their initial release. The flaw Series 1996 introduced major changes in the designs of U.S. currency. Larger, off-center portraits were among many new features that were intended to deter counterfeiters. On the $50 note, another new security feature was a pattern of difficult-to-replicate, concentric fine lines in the background of Ulysses Grant’s por- trait (Figure 1) as well as on the back above the U.S. Capitol building (Figure 2). But soon after production of the new $50 note was underway, BEP workers discov- ered that many of the notes exhibited what appeared to the naked eye as breaks or Start-Up Problems with Series 1996 $50 Federal Reserve Notes By Joe Farrenkopf Figure 1: Inset depicting magnified image of concentric fine lines behind portrait of Ulysses Grant on face of series 1996 $50 Federal Reserve Note. Paper Money • January/February 2013 • Whole No. 2834 gaps in the concentric lines (Figure 3). BEP officials “viewed the problem as a start- up issue to be expected with the production of a completely new note design” and did not consider the problem serious enough to cease production while working to find a resolution. Thus, production continued despite the flaw. However, when Federal Reserve officials learned of the problem and exam- ined some of the notes in early September 1997, they decided that the flawed notes could not be accepted for distribution. Their concern was that promotional and educational materials about the new note had emphasized greatly the high quality of the note, particularly the concentric fine lines. They thought the public might be receiving mixed signals about the quality of the note if flawed notes were introduced into circulation. The fix The matter was serious enough that Federal Reserve and BEP officials spoke at an informational hearing of the U.S. House of Representatives Subcommittee on Domestic and International Monetary Policy on October 1, 1997. According to transcripts of the hearing and a report prepared especially for that meeting, the BEP had determined that the problem was caused by “pull-out,” wherein the wiper that removes excess ink from the surface of the plate at times wiped ink out of the fine lines of the plate prior to printing. Pull-out occurred intermittently and inconsis- tently. For example, a gap appearing on a note from one plate position on a plate did not appear on every note printed from that same plate position (Figure 4). To fix the problem, the plates were modified by cutting small “dams” in the bottoms of the lines to hold the ink during the wiping process. These dams had been intro- Figure 2: Inset depicting magnified image of concentric fine lines behind U.S. Capitol Building on back of series 1996 $50 Federal Reserve Note. Figure 3: Inset depicting magnified image of gap in concentric fine line. Notice that while the gap appears as white space to the naked eye, magnification shows that the gap is not com- pletely devoid of ink. The presence of a minor amount of ink initially contributed to the inability of inspection equipment to identify flawed notes consistently. Arrows point to other gaps at various locations. Paper Money • January/February 2013 • Whole No. 283 5 duced about August 1, at which point about 160 million notes were already pro- duced. The engraving modifications greatly reduced the pull-out problem. About 57.6 million more notes were printed subsequently but before recalibration of inspection equipment on September 8, which improved the detection of flawed notes. Notes printed after September 8 were deemed acceptable by the Federal Reserve for release to the public. The BEP felt confident that it could deliver a suffi- cient quantity of high-quality notes to meet the Federal Reserve’s original targeted release date of October 27. Questionable quality notes The Federal Reserve and the BEP faced a dilemma, however, about what to do with the 217.6 million notes that were produced before September 8, a significant but unknown percentage of which exhibited flaws.1 Officials from both agencies informed the monetary policy subcommittee that three options were under consider- ation: (a) Destroy all 217.6 million notes and replace them; (b) Inspect the 217.6 million notes and destroy and replace only the flawed notes; (c) Wait a few years after higher quality notes had been in circulation, then circulate the 217.6 million notes. At the time of the subcommittee hearing, no option had yet been selected. Although the Federal Reserve did not feel a need to rush to make a decision since enough high-quality notes would be on hand in time for the October 27 release date, a decision was expected by the end of the year. The decision In an attempt to discern the outcome, in August 2010, I began searching for and documenting series 1996 $50 notes still circulating some thirteen years after their initial release. It became clear immediately that the first option was not select- ed as notes printed before September 1997 — some with gaps in the concentric lines and some without — turned up in circulation. The note in Figure 3, for example, was serialed in August 1997, according to BEP production reports. 1 Two samples of 1,200 and 1,000 notes that were produced before September 8, 1997, showed flaw rates of 56% and 45%, respectively. Meanwhile, two samples of 1,000 and 1,664 notes printed after September 7, 1997, showed flaw rates of 2% and 12%, respectively. The U.S. General Accounting Office report that was prepared for the monetary policy subcommittee hearing cautioned that more rigorous and scientific sampling would be necessary to arrive at a better estimate of the percentage of flawed notes. Figure 4: Close up images from two different Series 1996 $50 Federal Reserve Notes from the same plate position (F4) on the same plate (F14). Notice that the gap in the line on the left-hand image is not present in the right-hand image and that the gap in the line on the right- hand image is not present in the left-hand image. (Left image courtesy D. Moffitt) Paper Money • January/February 2013 • Whole No. 2836 If your label reads January or February 2013 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 • January/February 2013 • Whole No. 283 7 At the time of the subcommittee hearing, Federal Reserve officials stated that the last option was the least likely of the three to be selected. After making sev- eral inquiries to the Federal Reserve Board of Governors, I eventually was informed that 40.9 million, or almost 19%, of the 217.6 million notes were shredded between July 1999 and January 2000 – starting more than one year and a half after the sub- committee hearing – due to the printing flaw. The Federal Reserve would not identi- fy the criteria used to determine whether a note was of acceptable level of quality to be circulated. Presumably the 176.7 million notes that were not shredded were cir- culated at some point, although the Federal Reserve did not state the time period over which that occurred. Affected blocks Serial and plate data from observed notes indicate that the blocks listed in Table 1 probably comprised the initial 217.6 million notes produced. Those are the blocks where flaws are most likely to be found. However, there are two circumstances in which flawed notes can also be Figure 5: Multiple gaps on a series 1996 $50 Federal Reserve Note printed before September 8, 1997 but serialed in March 1998. Figure 6: Gap on a series 1996 $50 Federal Reserve Note printed after September 8, 1997 (and serialed in January 1998). Table 1 – Series 1996 $50 Federal Reserve Notes printed before implementation of corrective engraving and/or recalibration of inspection equipment Block Serial Range Serial Month Face Plates* Back Plates* AB-* 03200001-06400000 July 1997 7,8,9,10,11 5,6,7,8,10,12 AB-A 00000001-64000000 ” 12,13,14,15 14,15 AB-A 64000001-92800000 August 1997 17,21,51,53 AC-A 00000001-22400000 ” 54,55 Ag-A 00000001-41600000 ” AA-A 00000001-09600000 September 1997 AD-A 00000001-32000000 ” AI-A 00000001-12800000 ” * Observed/documented plate numbers; additional plates might be found in the affected blocks. Paper Money • January/February 2013 • Whole No. 2838 found on other blocks as well. Some sheets that were printed before corrective actions were taken but serialed after September 8 show up in some later blocks and may appear with the flaw (Figure 5). Second, although the dams that were intro- duced to the printing plates greatly reduced the pull-out problem, they did not com- pletely eliminate it. This meant that a small percentage of sheets printed after September 8 occasionally exhibited gaps in the concentric fine lines (Figure 6). In the end, the flaw in the new $50 note that caused so much concern for the Federal Reserve turned out to be inconsequential to the public, which accepted both unflawed and flawed notes as evidenced by numerous examples readily found circu- lating more than a dozen years after their release into circulation. Acknowledgments: Special thanks to Derek Moffitt and others for reviewing this manuscript, identifying errors and suggesting recommendations for improvements. Sources: House of Representatives Subcommittee on Domestic and International Policy, Committee on Banking and Financial Services, transcript of informational hear- ing, Washington, D.C., October 1, 1997, http://commdocs.house.gov/commit- tees/bank/hba44064.000/hba44064_0f.htm. United States General Accounting Office, U.S. Currency – Printing of Flawed Redesigned $50 Notes (GAO/T-GGD-98-8) , October 1, 1997, http://www.gao.gov/archive/1998/gg98008t.pdf. http://www.uspapermoney.info/serials/f1996_l.html and http://www.uspaper- money.info/serials/f2009_h.html
THE SECOND EDITION OF THE COLLECTORS GUIDEto Postage & Fractional Currency by Robert J. Kravitz is now available, published by the Coin & Currency Institute in full color. The highly acclaimed first edition received the 2004 Literary Award from the Professional Currency Dealers Association (PCDA), and gained immediate recognition as a nec- essary collector's reference book. Postage and Fractional Currency were adopted following passage of the Act of July 17th, 1862, which monetized “postage and other stamps.” The public turned to regular postage stamps, but this proved to be unworkable as the stamps soon became dirty, sticky and unfit for use. They were just not designed to be used over and over again. Treasurer of the United States, Francis E. Spinner took the idea of using stamps as currency to the next level. He pasted unused U.S. Postage stamps on bits of Treasury paper cut of a uniform size for the convenience of handling, and signed them. Congress liked the idea and Postage Currency was born. In August 1862 the Federal Government issued Postage Currency with the likeness of stamps on the notes. These were eagerly accepted, as the new way to make change. The notes were issued in 5¢, 10¢, 25¢ and 50¢ denominations. These notes were soon counterfeited, which created the need to issue new designs. These new notes were called Fractional Currency. Soon, Fractional Currency became the pocket change of the North dur- ing the Civil War. This updated edition contains not only the latest trends in prices for Postage and Fractional Currency, but also more than 20 pages of more detailed and previously unpub- lished information on the history of this aspect of America's numismatic heritage. Also included in its 200 pages are hundreds of full-color photos, a rarity guide for each individual note, and valua- tions in up to eight conditions. The book’s author has been researching, collecting and dealing in Postage and Fractional Currency since 1968 and is recognized as one of the leading experts in this field. The book (ISBN 978-087184-204-6) is in a convenient 6x9 format with a list price of $49.50 (plus $5.75 postage & handling) and is available from book stores, coin and paper money dealers, and from internet book sellers. An E-book version (ISBN 978-087184-206-0) is also being offered for $29.50. Copies of both versions may also be obtained from the Coin & Currency Institute, P.O. Box 399, Williston, VT 05495. Major credit cards are accepted. Call toll-free 1-888-471-1441. Fax (973) 471-1062. E-mail: mail@coin-currency.com. Sample pages are now posted at www.coin-currency.com, as well to securely order on line.
Coin & Currency Inst. brings out 2nd Kravitz ed. in full color Paper Money • January/February 2013 • Whole No. 283 9 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 Paper Money • January/February 2013 • Whole No. 28310 Figure 1. Shield used on the backs of the 2 percent consols of 1930. Paper Money • January/February 2013 • Whole No. 283 11 E VERY ASSEMBLAGE OF HUMANITY DESIRES TO PROJECT AN IMAGE, be it a nation, corporation or motorcycle gang. All eventually attempt to distill their essence on some type of logo or seal. All states and many territories adopted coats-of-arms, or what we commonly call state or territorial seals. State legislatures typically appointed commissions to design their seals, gener- ally comprised of the most learned men, many with classical liberal educations and a smattering of Latin under their belts. Typically these bodies attempted to cram every iconic symbol and allegorical representation that they could fit into their seals. The visual references and symbolism on many are so obscure or parochial, residents had to take citizenship courses in high school to learn the allegory embodied in their seals! The two Maryland seals are good examples. The earlier has at its centerpiece Justice holding her scales in one hand and in the other she is clutching both an olive branch and sword, which seem to send contradictory messages. To the left of her feet is a bountiful cornucopia and unity in the form of a bundle of rods with protrud- ing axe; to her right lies the city of Baltimore. There’s more, of course, but space does not permit laying it all out here. Important is that Justice is blindfolded as she should be, but with one bared breast. The latter probably was a bit too much for Victorian tastes, so they changed the seal. The second is even more elaborate and framed around Lord Baltimore with thick imagery reaching back to the colonial era. Unless you are a student of Lord Baltimore and his line in colonial history, you won’t be able to fathom the seal. Many territorial and state seals were created when those lands were being opened for settlement by promoters. Is it ThePaperColumn State Seal Varieties on Series of 1882 National Bank Note Backs By Peter Huntoon & Andrew Shiva Figure 2. Maryland: the first plate with the second seal was certified October 31, 1896. any surprise that the seals were used as advertising vehicles? Often they projected the virtues and bounty of the land with images of wild game, farms, industries, mines - you name it. They could convey the early trapping of civilization and soci- etal connectedness through symbols representing the most modern means of trans- portation - wagons, trains, boats. They could entice with spectacular scenery. Among the most recurring of themes on mid-western and western seals were spectacular sunrises and mountain ranges. A sunrise is a universal metaphor for hope and future prosperity. Truth in advertising - well, that goes out the window as in all hucksterism. The fabulous mountain ranges form- ing the skylines on the seals of states such as Florida, Indiana, Kansas, Ohio, to name a few were largely bor- rowed from the Rocky Mountain west or British Columbia for the occasion! Probably the best of these were the two state seals for Ohio. Campbell Hill, with an eleva- tion of 1,550 feet, near Bellefontaine is the highest point in Ohio, a state generally perceived as flat as a pancake save for some gently rolling hills that break the monotony if you know where to look. Despite these realities, the skyline on the first Ohio seal is consumed by a grand moun- tain beyond which to the left are higher peaks on the distant horizon. Those weren’t good enough. The resigned seal boasts jagged peaks, the most distant probably snow capped! Just get the people to come, they’ll bond with their land be it the Rocky Mountains, a prairie dog mound or a swamp! The Texas state seal used on nationals is refreshingly direct and uncluttered. It is dominat- ed by a bold star that lauds the status of the place as a former independent republic. The truth may be that the seal owes it origin to a harried agent of the Republic in need of a seal who applied an impression from a brass button on his coat onto the document. Regardless, thanks to the star on its seal and its flag, Texas became known as the Lone Star State. Later on, they felt compelled to hoke the seal up by surrounding the star with a wreath consisting of live oak and olive branches, respectively symbolizing strength and peace. That’s the version that appears on nationals. Paper Money • January/February 2013 • Whole No. 28312 Sign up for special free features on the official SPMC website www.spmc.org/pin Your one-time exclusive PIN is on your mailing label Figure 3. The Nevada seal adver- tises the natural bounty of the state. Nevada was the 36th state to be admitted to the Union, and thus is represented by the 36th star around the frame. 13Paper Money • January/February 2013 • Whole No. 283 Figure 4 above. Ohio: the first plate with the second seal was certified June 4, 1897. Figure 5 left. Texas: strength comes with simplicity and boldness. Paper Money • January/February 2013 • Whole No. 28314 Revised State Seals If the seal didn’t convey quite the desired message, create a new one or refine the old. That’s what happened with the eight state seals and the seal for the District of Columbia shown in pairs in this article. Figure 6. Alabama: the first plate with the second seal was certified October 31, 1896. Figure 7. District of Columbia: the first plate with the second seal was certified October 24, 1896. 15Paper Money • January/February 2013 • Whole No. 283 Figure 8. Iowa: the first plate with the second seal was certified October 24, 1896. Figure 9. New York: the first plate with the second seal was certified December 11, 1896. Paper Money • January/February 2013 • Whole No. 28316 Figure 10. North Carolina: the first plate with the second seal was certified October 31, 1896. Figure 11. Vermont: the first plate with the second seal was certified June 25, 1897. 17Paper Money • January/February 2013 • Whole No. 283 The biggest event to shape the history of the seals can be traced to the flood of state admissions that commenced November 2, 1889, with North and South Dakota and ended January 6, 1896, with Utah. Seven new states were formed including North and South Dakota, Montana, Washington, Idaho, Wyoming and Utah. They represented the 39th through 45th to join the Union. With the excep- tion of Utah all had been admitted within eight months of each other during 1889- 1890. The BEP had to prepare new seals for each. This work focused attention on the seals, so while they were at it, they prepared revised seals for eight other states and the District of Columbia beginning in 1893. The whole program was complet- ed by mid-1897. Table 1 is a list of the redesigned state seals. It is very telling that the certi- fication dates for the first plate with each new seal advance within a few days of being in alphabetical order down this list. Clearly the revision of the state seals was a systematic undertaking. We are illustrating the first and second seals for the eight states and the District of Columbia that are listed on Table 1. All the scans are from Series of 1882 brown back proofs. These seals were not used on Series of 1875 back plates even though dwin- dling numbers of sheets continued to be printed into 1902 in that series. It was rec- ognized in 1897 that only five years remained for the Series of 1875 to run, and for the most part existing stockpiles of preprinted backs with the first seals were suffi- cient to see the series to its end for the affected states. Figure 12. Wisconsin: the first plate with the second seal was certified June 26, 1897 Paper Money • January/February 2013 • Whole No. 28318 We have listed on Table 1 the numbers of Series of 1882 plates made with each of the major varieties for the states and District of Columbia that used different seals during the note issuing period. These numbers serve as a rough proxy for the availability of each. Although there usually were fewer plates of the second variety, this doesn’t necessarily mean they are scarcer. Remember that the second varieties were the most Table 1. Statistics pertaining to Series of 1882 back plates for localit ies that received redesigned coats of arms. Notice that the certification dates for the first plates with new seals generally advanced in alphabetical order by locality. Plate Seria l Numbers Cert if icat ion Date of F irst With Last Numbers of Plates State Combination F irst with New Seal New Seal Made 1st Seal 2nd Seal Alabama 5-5-5-5 Oct 31, 1896 5 6 4 2 10-10-10-20 Oct 31, 1896 6 9 5 4 50-100 Oct 31, 1896 3 5 2 3 Distri ct of Columbia 5-5-5-5 Oct 31, 1896 4 6 3 3 10-10-10-20 Oct 24, 1896 6 9 5 4 50-100 Oct 24, 1896 2 4 1 3 Iowa 5-5-5-5 Oct 31, 1896 12 20 11 9 10-10-10-10 Nov 18, 1907a 1 1 -- 1 10-10-10-20 Oct 31, 1896 8 16 7 9 50-100 Oct 24, 1896 3 5 2 3 Maryland 5-5-5-5 Nov 7, 1896 8 13 7 6 10-10-10-20 Nov 7, 1896 9 14 8 6 50-100 Oct 31, 1896 4 6 3 3 New York 5-5-5-5 Dec 11, 1896 80 153 79 74 10-10-10-10 Aug 7, 1906a 1 1 -- 1 10-10-10-20 Jan 2, 1897 41 94 40 54 50-100 Dec 19, 1896 7 10 6 4 North Carolina 5-5-5-5 Nov 7, 1896 6 8 5 3 10-10-10-20 Nov 28, 1896 3 6 2 4 50-100 Oct 31, 1896 2 3 1 2 Ohio 5-5-5-5 Jun 26, 1897 24 34 23 11 10-10-10-20 Jun 4, 1897 19 44 18 26 50-100 Jun 26, 1897 4 5 3 2 Vermont 5-5-5-5 Jul 29, 1897 12 18 11 7 10-10-10-20 Jun 25, 1897 8 12 7 5 50-100 Jun 25, 1897 2 2 1 1 Wisconsin 5-5-5-5 Jul 29, 1897 13 15 12 3 10-10-10-20 Jun 26, 1897 8 14 7 7 50-100 Jun 26, 1897 2 3 1 2 a. Use of the Series of 1882 10-10-10-10 combination began in 1906. Paper Money • January/February 2013 • Whole No. 283 19 recently printed, so the survival rate for notes carrying them is far greater than for those with the first. Surprise We thought that the subject of state seals was cut and dried. There didn’t appear to be anything in terms of varieties other than the new seals that had been adopted for eight states and the District of Columbia, which everyone knew. DeWitt Prather’s book on them seemed definitive. However, Huntoon was jolted from complacency when he found a ledger at the National Archives showing the dates when various national bank note dies were logged into the plate vault at the Bureau of Engraving and Printing. The first thing he saw was that all the redesigned state seal dies were logged into the ledger during a brief period before the end of 1897 that came on the heels of the rash of state admissions in 1889-1896. Instead of being random entries scattered over time, it was clear that a focused effort had been undertaken to update all the seals requiring changes at once. Second, mixed in were entries for other states long after the original seals for those states had been made. This implied that there should be varieties in exist- ing seals that had not been recognized. Third, there was more than one entry for Utah territory and Idaho state, but only one seal was known to Prather from each. One of Shiva’s specialties is these seals, so Huntoon contacted him with a proposal that they collaborate on sorting things out. We immersed ourselves in the proofs at the Smithsonian as quickly as we could arrange a trip to Washington, DC. The entries in the die ledger quickly led us to previously undocumented varieties. Then we started to identify varieties that were not listed in the ledger. We were amazed to find that most represented entirely new engravings. It was clear that the seals on the backs of early national bank notes were as dynamic as other design elements! They are loaded with interesting very collectable varieties. This is the first of a four-part series on our findings. You can be certain that the last word will not be in on the seals even with the publication of this series of articles! Read Prather’s book to learn about the symbolism embodied on the seals. Coming Attractions Part 2 in this series will treat the alterations to existing state seals that we identified. Part 3 will relate the engrossing and convoluted tales of the Utah territo- rial seal, and Idaho and Wyoming state seals. Part 4 will reveal variations in the use of the generic seals on the right sides of the backs on the different plate combina- tions as well as other incidental findings. Acknowledgment The National Currency Foundation supported the research leading to this article. Sources of Data and References Cited Bureau of Engraving and Printing, 1875-1929, Certified proofs of national bank note face and back plates: National Numismatic Collections, National Museum of American History, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, 1875-1941, Record of dies received for national currency, plate vault division: Record Group 318, U. S. National Archives, College Park, MD. Prather, DeWitt G. United States National Bank Notes and Their Seals. Hampton, VA: Privately published, MultiPrint, Inc., 1986, 197 pp.
Paper Money • January/February 2013 • Whole No. 28320 NON-STATE (OR “PRIVATELY ISSUED”) BANKNOTES ISSUED INthe 1800s were known interchangeably as “change notes” or “shinplas-ters”.1 They were the obvious result of necessity being the mother ofinvention. In “normal” economic times, gold, silver and copper coins provided the necessary change to support commercial transactions. However when wars or financial panics occurred and “hard times” loomed, specie all but disap- peared. To fill this void, merchants, banks, railroads, steamboats, hotels and many others issued their own private scrip. Even public entities such as cities, counties, and states found it necessary to supplement the money supply with their own issues. Since most of these notes lacked backing in the form of specie, the key to the degree to which they could circulate as a substitute for coins varied with the rep- utation of the issuer and the distance from the locale where they were issued. Although issuers of these notes often stated that they could be redeemed, some were only redeemable at remote locations. Unknown issuers and the difficulty of redeem- ing their issues meant that these notes were often “discounted” when used to pur- chase goods and services, in effect raising the prices of items purchased. In some cases, issuers assumed that holders of small denomination notes would simply pass them along and they would never be presented for redemption, again effectively rais- ing the price of goods. Indeed, there were some notes which were issued that did not even contain the printed name of the merchant, leaving only the signature (if deci- pherable) as a hint to the reliability of the note. It was the inflationary impact, as well as the moral issue of preventing fraud, that likely motivated Alabama to try and regain control of the money supply by outlawing the private issues of so-called “shin- plasters.” Before we get to the legal question of outlawing these notes, let’s review the extent to which “shinplasters” were issued in Alabama.2 Alabama’s Non-State Private Issues: A Rosene Update The most comprehensive listing of Alabama’s notes is in Walter Rosene’s Alabama Obsolete Notes and Scrip.3 Although it was first published in 1984 and is now long overdue for a revision, it is still the “bible” for Alabama collectors. In his research, Rosene identified 796 individual non-state privately issued notes from 109 (108 named cities and one unnamed city) unique cities in Alabama.4 These notes Alabama’s ‘Illegal’ Scrip of 1863 and a Rosene Update By Bill Gunther Paper Money • January/February 2013 • Whole No. 283 21 SPMC needs a few good men or women Your Society needs several good members to serve on the SPMC Board of Governors. Two spaces are already vacant on the Board and Board Members Pierre Fricke and Lawrence Schuffman’s terms are expiring. Of course the expiring Board members may run again, but it is clear that SPMC needs an infusion of new leaders to guide the Society through its next decades. If you love your hobby and want to help -- Step up! Board Members typically meet at our annual meeting at the Memphis International Paper Money Show and in some years at a second meeting at another show. The Board elects the Society’s officers, and is responsible for the financial health, educational programs, and other important aspects of SPMC. If you are willing and have the time, please consider contributing back to the hobby in this important way. Contact SPMC President Mark B. Anderson immediately at mbamba@aol.com to find out how you can qualify to run for one of these seats. Paper Money • January/February 2013 • Whole No. 28322 come from 50 of the 67 (or about 75%) counties in the state.5 It seems likely that the 17 counties for which no notes were recorded would have had at least one or more private issuers of scrip (there are two cities for which their county location can- not be determined, Black Water and Phillips). However for some reason notes from these 17 counties have never surfaced nor apparently even survived over the years. Additional unlisted issues have been identified from the archives of Heritage Auctions (2000-2012), catalogs from long-time currency dealer Hugh Shull (1981- 2010), a recent Stack’s-Bowers auction, and from my personal collection.6 There were 179 new unlisted notes in these sources and they are listed in the Appendix. Of the 179 “unlisted” notes there were 54 new issuers and 125 design/date/denomina- tions varieties to known issuers. There were 11 new cities added making the total known now 120, but no new counties were found in these unlisted notes.7 Table 1 shows some of the details of this search. Table 1 Alabama Private Issues (1820-1880) No. of Unique Unique Issues Cities Counties Rosene 796 109 50 Heritage Auctions (HA) 116 9 0 Hugh Shull (HS) 48 1 0 StacksBowers (SB) 1 0 0 Author’s Collection 14 1 0 Total 975 120 50 Of course, this should not be viewed as a definitive total since there are like- ly notes in private collections that have not been accounted for in Table 1. However until these notes are offered for sale or otherwise made public, they will remain unknown to the broader collector community. In the interim, we must deal with what is known, and that is that there are at least 975 non-state privately-issued notes from Alabama. Table 2 shows the distribution of these “new” discoveries by decade. The new discoveries (179) is an increase of 22.5 percent over the total listed in Rosene. Of this total, 54 (30%) represent new issuers while the remaining 125 (70%) represent new designs or denominations of known issuers. A relatively larger share (67.6% vs. 54.6%) of the new discoveries are from the 1860s when compared to Rosene. A rela- tively smaller share of the new discoveries come from the 1830s (9% vs. 16%) com- pared to Rosene. Among the 975 total private issues, 556 or 57% are dated in the 1860s and are a consequence of the Civil War. Another 143 (or 14.7%) come from the 1830s and are the consequence of the “Panic of 1837.” The relatively large number of notes with no printed full dates (20.4%) raises questions as to the intent of the issuer. It seems most likely that they were simply a cost savings measure that derived from printing larger quantities and allowing the issuer to write in the last two digits of the year.8 Notes issued from 1865 to the late 1870s were associated with reconstruction and often required the “authority” of the commander of the military district. Table 2 Rosene and New Discoveries, by Decade of Issue New New % Rosene R % All 1820s 1 0.6% 9 1.1% 10 1.0% 1830s 16 8.9% 127 16.0% 143 14.7% 1840s 2 1.1% 16 2.0% 18 1.8% 1850s 8 4.5% 8 1.0% 16 1.6% 1860s 121 67.6% 435 54.6% 556 57.0% 1870s 8 4.5% 23 2.9% 31 3.2% 1880s 2 1.1% 0 0.0% 2 0.2% N.D. 21 11.7% 178 22.4% 199 20.4% Totals 179 100.0% 796 100.0% 975 100.0% Paper Money • January/February 2013 • Whole No. 283 23 One of the more interesting observations of this distribution by year is the fact that there were 5 issues of notes bearing the date 1863. These notes are very rare, representing only one-half of one percent of all known privately issued notes. They are rare because any note issued with a date of 1863 was illegal. ‘An Act to Prevent the Circulation of Change Bills’ During the period known as “free banking” (generally a period from 1837 to 1868), there was no central monetary authority to regulate the issuance of “money.” Although some states passed laws attempting to limit the issuance of banknotes, the regulations were often ignored or weakened by amendments.9 Consequently many banks and other enterprises issued uncontrolled numbers of notes. Unless specifically authorized in their charters, and few were, the enterprises that issued these notes were in violation of the law. However the need for some form of “money” was great and much of this activity was simply ignored. The unfortunate fact is that some of these issues were either fraudulent or woefully lacking in any kind of backing, and as a result many notes, even those that were otherwise “sound,” were discounted by other banks and merchants. With inflation becoming a serious problem in the early 1860s, Alabama attempted to deal with the problem head-on and passed a law that made the private issue of such ban- knotes or “shinplasters” a crime. No. 34 AN ACT To Prevent the Circulation of Change Bills Sec. 1. Be it enacted by the Senate and House of Representatives of the State of Alabama in General Assembly convened, That any person, Private corporation, or association, who, without authority of law, makes, emits, accepts, or agrees to accept, by stamping or otherwise, or signs, or countersigns, by printing, writing or otherwise, any paper, or instrument commonly called a shinplaster, to answer the purposes of money, or for general circulation, such person and each individual member of such corporation or association, on conviction, must be fined, for each offense, not less than twenty, or more than five hundred dollars, and may be imprisoned not less than three, nor more than twelve months, and the signatures, whether written or printed, shall be taken as genuine, unless the defendant denies the same under oath.10 Approved December 9, 1862 Section 1 makes it clear that anyone who printed anything resembling shin- plasters “must” be fined but “may” also be imprisoned. Moreover, anyone who “accepts, or agrees to accept” such notes is also guilty. However, Section 5 of the Act gave some relief to the general public holding such notes by delaying the provi- sions of Section 1 until April 1, 1863. Thus those holding such notes had just a little more than three months to present these notes to the issuer for redemption. It was not uncommon to see ads in the local papers seeking those with a particular mer- chant’s notes to bring them in for redemption.11 Section 6 of the Act also provided that the Act shall not be in force until 10 days after the date of its approval (December 9, 1862) and that the redemption of “such shinplasters shall be made in Confederate or state treasury notes, or in the reg- ular issue of any chartered bank of this state.” This act made is very clear that the era of “free banking” in Alabama would be over effective December 19, 1862, and that previous privately issued notes were to be fully redeemed by April 1, 1863. Thus notes dated prior to December 19 would be legal until April 1, 1863, but any notes with an issue date of 1863 would be in clear violation of this act. Paper Money • January/February 2013 • Whole No. 28324 Alabama’s ‘Illegal’ Obsoletes Rosene only lists two different notes that carry the printed date 1863 with the following description (no picture available for the Dudleville note): R-62-1 A. W. Smith, Dudleyville, 25 cents, “Small running horse,” Yellow paper, 1863, and R-133-1, “Miller? Huntsville, 15 cents, (L) Fifteen Cents, (C) 15, left and right, Fifteen Cents, January 1863 (Signature is unclear) The Huntsville note was sold by Heritage Auctions on September 21, 2001, for $143 (includes the buyer’s premium). I cannot locate any recorded sale or ask- ing price for the for the Dudleyville note. Miller(?), Huntsville, Alabama, January 1863 (Photo courtesy Heritage Auctions) The following two 1863 notes both unlisted in Rosene, were also sold by Heritage Auctions, both on January 7, 2010. The Bridgeport note sold for $690 and the Cedar Bluff note for $517.50 (both prices include the buyer’s premium). Bridgeport Bakery, Bridgeport, Alabama, January 20, 1863 (Photo courtesy Heritage Auctions) Paper Money • January/February 2013 • Whole No. 283 25 Unknown issuer, Cedar Bluff, Alabama, January 1st, 1863 (Photo courtesy Heritage Auctions) The final 1863 note comes from my collection and was issued by an unknown merchant in Selma, Alabama. Interestingly it is for $2 and it is the only known non-fractional note issued with the 1863 date. While the Huntsville, Bridgeport, and Cedar Bluff notes are all signed, suggesting they actually were issued and circulated, the Selma note is unsigned. It seems likely the Selma note is a remainder (considering its “extra fine” condition). Unknown issuer, Selma, Alabama, January 1, 1863 Author’s Collection A search of Hugh Shull’s catalogs from 1981-2010 reveals only one 1863- dated note. It was described as a “Bank of Selma, $5, Red and Black, Negro Picking Cotton.” It was first listed in his 1981-1 catalog, but by the time of his 1988-2 cata- log, he was listing this note as a counterfeit. As such it is not counted in the popula- tion of 1863 notes. This brings the total to 5 issues known with the printed date of 1863. Based on the Act passed in December of 1862, these issues would be clearly illegal. There are three possible explanations for these notes: (1) Those issuing the notes were unaware of the legislation when these notes were ordered; or (2) the issuers ignored the law, or (3) the notes are contemporary counterfeits. It would be ironic, but not unbelievable, that if in fact these 1863 notes were counterfeits, they would be easily identified as counterfeits by their printed dates! Logic therefore suggests that the notes are not counterfeits and since the penalties were potentially large compared to the potential gains which could be made, merchants most likely had placed orders for these notes prior to the passage of the legislation which made them illegal. Paper Money • January/February 2013 • Whole No. 28326 What Replaced the Shinplasters? Anticipating the loss of the use of “change notes” or “shinplasters” with the passage of Act 34, the Alabama leg- islature passed Act 16, “To Authorize the issuance of Treasury Note Change Bills by the State of Alabama.”12 The Act was passed November 8, 1862, approximately one month prior to Act 34 prohibiting private issues.13 Section 1 of this act “…authorized [the governor to have either lithographed or engraved, ….two million dollars of treasury notes of the State of Alabama of the denomination of one dollar and the fractional parts of a dollar, for the purpose of change circu- lation . . .” The 1863 issue consisted of the 5-cent, 10- cent, 25-cent, 50-cent and $1 notes. This act also provided for the redemption of these notes in “Confederate states treasury notes when presented in sums of twenty dollars or upwards.” To introduce these notes into circulation, the Act prescribed that the treasurer may use them “in liquidation of claims from appropriations, or debts owing by the state, or he may exchange them or any part of them for current bank notes, or the notes of the Confederate States of America.” An amendment designed to help spread the use of these notes provided that these change bills be used “for the support of indigent families of sol- diers…” By issuing state-backed change notes, the State hoped to eliminate the fraudulent issue of “shinplasters” and gain some control over the money supply, thereby attempting to control inflation. History records how futile this effort was to become. By 1864, inflationary pressures forced the State of Alabama to issue notes of $5, $10, $50, and $100. Both fractional and full dollar notes suffered the same ultimate fate: they became worthless by the end of the war. Footnotes 1 Q. David Bowers notes, “For counterfeit and worthless bills one of the earliest nicknames was shinplaster, referring to a piece of paper money that has little or no value in commerce and might be best used to help bandage a scraped or wounded shin. The term seems to have come into popular use in the 1780s, when Continental Currency bills became next to worthless. The term shinplaster remained in use afterward and was applied to bank and private bills that had no value.” See Q. David Bowers, Obsolete Paper Money, Whitman Publishing , LLC, Atlanta, GA 2006, p. 160 2 Included in the count of private issuers are cities and counties, but excluded are all state or U.S.-issued notes. 3 Walter Rosene, Jr., Alabama Obsolete Notes and Scrip, Published by the Society of Paper Money Collectors, Inc., 1984. Some of the “unique” notes discussed in this article that are not listed in Rosene represent only minor design changes from those listed. However, they are technically unlisted and are counted as such. One of the unique cities is an “unknown” city in Walker county (R-344). 4 Actually Rosene acknowledges the use of 27 notes from A.B. Andrews’s 1922 article (“List of Broken Bank Bills of Alabama”) in The Numismatist, and 117 notes from D.C. Wismer’s article also in The Numismatist in 1922 (“Descriptive List of Obsolete Paper Money”). This would make Rosene’s contribution of “new” notes approximately 652, still an impressive contribution. It is not clear if some of these earlier discoveries were state-issues or private issues. Rosene, p. 1. 5 These 17 counties are spread out over the state from the north to the south and the southeast, so there is no obvious geographic explanation for the absence of these issues. 6 Heritage Auctions is a major auction house known by most collectors. You can search its archives by logging on to their web page at www.ha.com. Hugh Shull is a long-time currency dealer located in South Carolina and has pub- lished his extensive catalogs twice a year (noted as “1” and “2”) up to 2010-1. My collection of his catalogs dates from 1981 to 2010-1. He does not have a website. Stack’s-Bowers.com is a major auction house, but does not have search- able archives. I have searched other auction houses as well as a number of currency dealers with webpages. No addi- tional Alabama unlisted obsoletes were discovered at that time. No attempt was made to attribute the first to discover a particular new unlisted note. 7 The 11 new cities and their counties are as follows: Ashville (St. Clair); Bridgeport (Jackson); Cahaba Valley (Jefferson); Cedar Springs (Blunt); Coaling (Tuscaloosa); Cragford (Clay); Howell's Roads (Mobile); McKinley (Marengo); Palestine (Cleburne); Shelby (Shelby Co); Sterling (Cherokee). 8 Q. David Bowers notes that “The most popular printed date is 18--, allowing it to be used in more than one decade.” Obsolete Paper Money, p. 463. 9 Bowers, p.241. 10 Acts of the Called Session, 1862, and of the Second Regular Annual Session, General Assembly of Alabama, October 27, and Second Monday of November, pp. 50-51, Alabama Department of Archives and History. 11 Typical was an ad in the Gainesville local paper (The Independent) placed on December 20, 1862 by Jonathon Bliss, President of Gainesville Insurance Company (R-107) encouraging holders of his notes to redeem them at his office. Paper Money • January/February 2013 • Whole No. 283 27 12 Alabama first authorized the governor to issue Treasury Notes in Act No. 9, “Authorizing the Governor to Issue Treasury Notes, approved on February 8, 1861. These notes were to bear interest at not more than 6 percent. These notes were to be used to pay the state’s debts, but were never issued. See Acts of The Called Session of the General Assembly, 1861, pp. 16-17, Alabama Department of Archives and History. 13 Acts of the Called Session, 1862, Act 16, pp. 33-34. Appendix Unlisted Alabama Script, by Source Source Rosene City County Issuer Denom. Year 1 G R-333-Unl Tuscumbia Colbert Tuscumbia, Courtland & Decatur RR $5 1858 2 G R-38-Unl Centre Cherokee L. N. Stiff & Company $1 1862 3 G R-101-Unl Gadsden Etowah Unknown 25 cents 1862 4 G R-239-Unl Montgomery Montgomery John Henley & Co. $3 1862 5 G R-284-Unl Roanoke Randolph W. V. Thompson 75 cents 1862 6 G R-295-Unl Selma Dallas W. Gilmer 50 cents 1862 7 G R-290-Unl Selma Dallas Alabama & Tenn. RR $1 1862 8 G R-Unl Sterling Cherokee C. M. Lay 25 cents 1862 9 G R-323-Unl Tuscaloosa Tuscaloosa City of Tuscaloosa $2 1862 10 G R-Unl Selma Dallas Unknown $2 1863 11 G R-183-Unl Mobile Mobile Bank of Mobile - Proof $5 18xx 12 G R-89-Unl Florence Lauderdale County of Lauderdale-by authority, $1 186x 13 G R-73-Unl Eufaula Barbour Young, Woods, Gardner 25 cents n.d. 14 G R-73-Unl Eufaula Barbour Young, Woods, Gardner 5 cents n.d. 1 HA R-132-Unl Huntsville Madison R. J. Manning - New Date 121⁄2 1836 2 HA R-132-Unl Huntsville Madison R. J. Manning 25 cents 1836 3 HA R-Unl Marion Perry Marion Change Association 61⁄4 1836 4 HA R-Unl Marion Perry Marion Change Association 121⁄2 1836 5 HA R-Unl Marion Perry Marion Change Association 25 cents 1836 6 HA R-Unl Mobile Mobile Mansion House 121⁄2 1837 7 HA R-45-Unl Clinton Greene Clinton Change Asso. $2 1838 8 HA R-132-Unl Huntsville Madison R. J. Manning 50 cents 1838 9 HA R-Unl Mobile Mobile City Bank of Mobile 20 1838 10 HA R-349-Unl Wetumpka Elmore M. B. McCoy 121⁄2 cents 1838 11 HA R-183-Unl Mobile Mobile Bank of Mobile $100 1845 12 HA R-Unl Marion Perry W. M. & G. S. Catlin $100 1854 13 HA R-68-Unl Eufaula Barbour Eastern Bank Eufaula-Proprietary Proof $1 1860 14 HA R-68-Unl Eufaula Barbour Eastern Bank Eufaula-Proprietary Proof $2 1860 15 HA R-68-Unl Eufaula Barbour Eastern Bank Eufaula-Proprietary Proof $3 1860 16 HA R-Unl Ashville St. Clair Morris & Stanton $1 $1 1862 17 HA R-Unl Ashville St. Clair E. Goode 5 cents 1862 18 HA R-Unl Ashville St. Clair E. Goode 50 cents 1862 19 HA R-13-Unl Athens Limestone Limestone County 25 cents 1862 20 HA R-15-Unl Auburn Lee East Alabama Insurance $1 1862 21 HA R-15-Unl Auburn Lee East Alabama Insurance $2 1862 22 HA 15-Unl Auburn Lee East Alabama Insurance $3 1862 23 HA 15-Unl Auburn Lee East Alabama Insurance $5 1862 24 HA 15-unl Auburn Lee East Alabama Insurance 25 cents 1862 25 HA 15-Unl Auburn Lee East Alabama Insurance 50 cents 1862 26 HA R-22-Unl Blountsville Blount R. B. Montgomery 25 cents 1862 27 HA R-22-Unl Blountsville Blount R. B. Montgomery 50 cents 1862 28 HA R-29-Unl Cahawba Dallas Cahawba Insurance Company 50 cents 1862 29 HA R-29-Unl Cahawba Dallas Cahawba Insurance Company 25 cents 1862 30 HA R-33-Unl Camden Wilcox Kahn & Brothers 5 cents 1862 31 HA R-33-Unl Camden Wilcox Kahn & Brothers 50 cents 1862 Paper Money • January/February 2013 • Whole No. 28328 32 HA R-Unl Cedar Springs Blount Bank of Cedar Springs 10 cents 1862 33 HA R-Unl Centre Cherokee Stiff & Bozeman 50 cents 1862 34 HA R-Uno Claiborne Monroe Robertson & Agee 50 cents 1862 35 HA R-44-Unl Clayton Barbour M. M. Laseter $1 1862 36 HA R-44-Unl Clayton Barbour M. M. Laseter 50 cents 1862 37 HA R-Unl Columbiana Shelby Reeves & Wallace 50 cents 1862 38 HA R-66-Unl Eufaula Barbour Thomas J. Cannon 5 cents 1862 39 HA R-66-Unl Eufaula Barbour Thomas J. Cannon 50 cents 1862 40 HA R-Unl Florence Lauderdale Jas. M. Peters $1 1862 41 HA R-99-Unl Frankfort Franklin Reed & Hamilton 50 cents 1862 42 HA R-Unl Ft. Gaines Mobile Tanyard-C. P. Clayton & Co. 50 cents 1862 43 HA R-107-Unl Gainesville Sumter Gainesville Insurance $2 1862 44 HA R-107-Unl Gainesville Sumter Gainesville Insurance 50 cents 1862 45 HA R-119-Unl Guntersville Marshall J. C. Hays 15 cents 1862 46 HA R-Unl Guntersville Marshall May & Lamar 5 cents 1862 47 HA R-Unl Guntersville Marshall May & Lamar 75 cents 1862 48 HA R-Unl Howell's X Roads Etowah G. W. Howell 25 cents 1862 49 HA R-Unl Huntsville Madison William & Long 10 cents 1862 50 HA R-130-Unl Huntsville Madison Johnson House 10 cents 1862 51 HA R-Unl Jasper Walker W. H. H. Baker & J. L. Roberts 25 cents 1862 52 HA R-160-Unl Lebanon Cleburne W. Dean- Design change $3 1862 53 HA R-Unl Lidiga Calhoun J. Maxwell 10 cents 1862 54 HA R-Unl McKinley Marengo M. H. Smith $2 1862 55 HA R-195-Unl Mobile Mobile Asa Holt-Green Overprint, Not Red 25 cents 1862 56 HA R-Unl Montevallo Shelby Unidentified Issuer 10 cents 1862 57 HA R-Unl Montevallo Shelby Unidentified Issuer 25 cents 1862 58 HA R-Unl Montevallo Shelby Unidentified Issuer 5 cents 1862 59 HA R-Unl Montevallo Shelby Unidentified Issuer 50 cents 1862 60 HA R-Unl Montevallo Shelby Unidentified Issuer 75 cents 1862 61 HA R-228-Unl Montgomery Montgomery Alabama Insurance Company $3 1862 62 HA R-228-Unl Montgomery Montgomery Alabama Insurance Company $5 1862 63 HA R-Unl Montgomery Montgomery E.R. McCoy $1 1862 64 HA R-224-Unl Montgomery Montgomery Montgomery Insurance Co- Design Change$1 1862 65 HA R-242-Unl Montgomery Montgomery Montgomery Insurance Co- Design Change$1 1862 66 HA R-238-Unl Montgomery Montgomery A. H. Hammond $2 1862 67 HA R-231-Unl Montgomery Montgomery Central Bank-Design diff $2.00 1862 68 HA R-242-Unl Montgomery Montgomery Montgomery Insurance Co. $2.50 1862 69 HA R-242-Unl Montgomery Montgomery Montgomery Insurance Co. $2.50 1862 70 HA R-236-Unl Montgomery Montgomery Double Bridges Ferry 5 cents 1862 71 HA R-Unl Montgomery Montgomery E.R. McCrory 50 cents 1862 72 HA R-259-Unl Mt. Hope Lawrence P.. W. McVay $2 1862 73 HA R-260-Unl Mt. Niles St. Clair Morris & Savage 15 cents 1862 74 HA R-271-Unl Opelika Lee Opelika Insurance Co. 25 cents 1862 75 HA R-Unl Palestine Cleburne Hatfield & Wheeler 25 cents 1862 76 HA R-290-Unl Selma Dallas Alabama & Tenn. RR $1 1862 77 HA R-Unl Selma Dallas Insurance Co. East of Selma $3 1862 78 HA R-292-Unl Selma Dallas Bank of Selma $50 1862 79 HA R-312-Unl Talladega Talladega Talladega Insurance Company 10 cents 1862 80 HA R-312-Unl Talladega Talladega Talladega Insurance Company 10 cents 1862 81 HA R-320-Unl Troy Pike Troy Insurance Co. 5 cents 1862 82 HA R-324-Unl Tuscaloosa Tuscaloosa County of Tuscaloosa 25cents 1862 83 HA R-324-Unl Tuscaloosa Tuscaloosa County of Tuscaloosa 75 cents 1862 84 HA R-323-Unl Tuscaloosa Tuscaloosa City of Tuscaloosa $1 1862 85 HA R-341-Unl Union Springs Bullock H. H. Smith 10 cents 1862 86 HA R-Unl Unknown Unknown A. M. Holmes 25 cents 1862 87 HA R-355-Unl Wetumpka Elmore Wetumpka Insur. Co.-Due and Cabot-Red 50 cents 1862 88 HA R-Unl Bridgeport Jackson Bridgeport Bakery 5 cents 1863 Paper Money • January/February 2013 • Whole No. 283 29 Write the Editor and speak your mind 89 HA R-Unl Cedar Bluff Cherokee Unidentified Issuer 10 cents 1863 90 HA R-246-Unl Montgomery Montgomery Montgomery and West Point RR $1 1865 91 HA R-232-Unl Montgomery Montgomery City of Montgomery $2 1867 92 HA R-232-Unl Montgomery Montgomery City of Montgomery $5 1867 93 HA R-Unl Shelby Shelby Shelby Iron Company 25 cents 1868 94 HA R-Unl Shelby Shelby Shelby Iron Company 50 cents 1868 95 HA R-178-Unl Marion Perry Selma, Marion, Memphis RR 10 1871 96 HA R-187D-Unl Mobile Mobile City of Mobile $2 1873 97 HA R-199-Unl Mobile Mobile Magnolia Association 25 cents 1873 98 HA R-199-Unl Mobile Mobile Magnolia Association 50 cents 1873 99 HA R-229-Unl Montgomery Montgomery Alabama Savings Bank $5 1873 100 HA R-Unl Coaling Tuscaloosa Coaling Supply Store 50 cents 1883 101 HA R-323-Unl Tuscaloosa Tuscaloosa City of Tuscaloosa 121⁄2 1830s 102 HA R-Unl Mt. Hope Lawrence Lyman Field $2 186x 103 HA R287-Unl Round MountainCherokee Round Mountain Iron Works $1 188x 104 HA R-107-Unl Gainesville Sumter Gainesville Insurance $1 18xx 105 HA R-Unl Cahawba Dallas Griffet S. Young 61⁄4 cents n.d. 106 HA R-Unl Coloma Cherokee J. W. Bogan 25 cents n.d. 107 HA R-68-Unl Eufaula Barbour Eastern Bank Eufaula (Red, not Green) $10 n.d. 108 HA R-134-Unl Huntsville Madison Northern Bank of Al-Proof $5 n.d. 109 HA R-193-Unl Mobile Mobile levi Fletcher 121⁄2 n.d. 110 HA R-183-Unl Mobile Mobile Bank of Mobile-New Design $100 n.d. 111 HA R-Unl Mobile Mobile Unknown issuer 25 cents n.d. 112 HA R-231-Unl Montgomery Montgomery Central Bank-Unl proof $5 n.d. 113 HA R-231-Unl Montgomery Montgomery Central Bank - Unlisted Proof $10 n.d. 114 HA R-231-Unl Montgomery Montgomery Central Bank - Proof Not Listed. White $500 n.d. 115 HA R-231-Unl Montgomery Montgomery Central Bank -Proof not listed - Orange $500 n.d. 116 HA R-280-Unl Pollard Escambia P. F. Daly 5 cents n.d. 1 HS R-30-Unl Cahawba Dallas Town Council of Cahawba 25 cents 1820 2 HS R-269-Unl Olney Pickens Allen Otway 50 cents 1838 3 HS R-300-Unl Selma Dallas Real Estate Banking Co. South Al $5 1838 4 HS R-300-Unl Selma Dallas Real Estate Banking Co. South Al $20 1838 5 HS R-117-Unl Greensborough Hale Greensborough Change Association 25 cents 1842 6 HS R-60-Unl Demopolis Marengo Farmers Bank Association $10 1856 7 HS R-228-Unl Montgomery Montgomery Central Bank $5 1856 8 HS R-103-Unl Gainesville Sumter James Allen $1 1857 9 HS R-Unl no city Greene N. E. & S. W. Alabama RR $10 1857 10 HS R-294-Unl Selma Dallas Commercial Bank $2 1857 11 HS R-228-Unl Montgomery Montgomery Central Bank $5 1859 12 HS R-294-Unl Selma Dallas Commercial Bank $2 1861 13 HS R-44-Unl Clayton Barbour M. M. Laseter 25 cents 1862 14 HS R-44-Unl Clayton Barbour M. M. Laseter $2 1862 15 HS R-Unl Coloma Cherokee Jas. H. Savage $1 1862 16 HS R-130-Unl Huntsville Madison Johnson House 5 cents 1862 17 HS R-130-Unl Huntsville Madison Johnson House $1 1862 18 HS R-174-Unl Marion Perry E. A. Blunt Exchange and Collection Office $1 1862 19 HS R-202-Unl Mobile Mobile Deposit bank, mechanics aid $5 1862 20 HS R-210-Unl Mobile Mobile Savage and Mathews 10 cents 1862 21 HS R-239-Unl Montgomery Montgomery John Henley & Co. $1 1862 22 HS R-239-Unl Montgomery Montgomery John Henley & Co. $2 1862 23 HS R-228-Unl Montgomery Montgomery Alabama Insurance Company 5 cents 1862 Paper Money • January/February 2013 • Whole No. 28330 24 HS R-228-Unl Montgomery Montgomery Alabama Insurance Company 5 cents 1862 25 HS R-228-Unl Montgomery Montgomery Alabama Insurance Company 5 cents 1862 26 HS R-228-Unl Montgomery Montgomery Alabama Insurance Company 25 cents 1862 27 HS R-228-unl Montgomery Montgomery Alabama Insurance Company 50 cents 1862 28 HS R-228-unl Montgomery Montgomery Alabama Insurance Company 75 cents 1862 29 HS R-248-unl Montgomery Montgomery Josiah Morris, Banker $1 1862 30 HS R-248-unl Montgomery Montgomery Josiah Morris, Banker $2 1862 31 HS R-239-Unl Montgomery Montgomery John Henley & Co. 5 cents 1862 32 HS R-281-Unl Princeton Jackson A. L. Hyder 10 cents 1862 33 HS R-281-Unl Princeton Jackson A. L. Hyder 50 cents 1862 34 HS R-Unl State of Alabama Unissued Merchant Script $3 1863 35 HS R-78-Unl Eutaw Greene Smith & Dunlap 25 cents 1865 36 HS R-325-Unl Tuscaloosa Tuscaloosa John Glasscock 10 cents 1865 37 HS R-300-Unl Selma Dallas Real Estate Banking Co. South Al $5 1868 38 HS R-187D-Unl Mobile Mobile City of Mobile $1 1873 39 HS R-199-Unl Unknown Unknown Magnolia Association, 50 cents 1873 40 HS R-Unl Mobile Mobile Planters and Merchants Bank $10 18-- 41 HS R-103-Unl Gainesville Sumter Bell and McMahon 25 cents 183X 42 HS R-103-Unl Gainesville Sumter Bell and McMahon $1 183x 43 HS R-Unl Montgomery Montgomery Montgomery Stables 25 cents 1860s 44 HS R-332-Unl Tuscumbia Colbert County $5 187x 45 HS R-Unl Cragford Clay J. F. Carter and Sons 2 cents n.d. 46 HS R-Unl Mobile Mobile Wm. Strickland Books 100 n.d. 47 HS R-239-Unl Montgomery Montgomery John Henley & Co. $2 n.d. 48 HS R-313-Unl Tallassee Cherokee Tallassee Mfg.. Co. Store, 15 cents n.d. 1 SB 172-Unl Livingston Sumter Treasurer of Sumter County $3 1866 Source: G = Author's Collection; HA = Heritage Auctions Archives; HS = Hugh Shull Catalogs;SB=StacksBowers
Death claimed West Lafayette, IN numismatic dealer Lowell C. Horwedel Sr., 79, on Saturday, October 20 at Cumberland Pointe Health Campus. Well known in the hobby Mr. Horwedel had been a dealer since 1960, and was SPMC Life Member #34. He was born November 27, 1932, in Cleveland, OH, to the late Albert & Mildred (Hackel) Horwedel. He mar- ried Dorothy Anne Deupree, June 21, 1958, in North Hollywood, CA & she survives. Horwedel graduated from Burbank High School in 1950 and completed University of California at Los Angeles Graduate School of Management majoring in Chemistry. He served in the United States Army from 1954 to 1956. Mr. Horwedel had worked in leadership positions at a variety of chemical firms, including Electrofilm, Inc, in North Hollywood, CA from 1956 until 1971, serving as Vice President/General Manager of the Lubricants Division from 1969 until 1971. He then went on to work at Microseal Corporation (now E/M Corporation) a subsidiary of Great Lakes Chemical Corporation, as Vice President of Operations. Within a year, he was promoted to President of Microseal & appointed to its Board of Directors. From 1984 until 1997, he served as Vice President of Great Lakes Chemical Corporation, West Lafayette, IN, retiring with the sale of E/M Corporation. From 1996 until 1997, he also served as Vice Chairman of E/M Corporation. Upon retiring, he worked part-time, for a year, as Vice Chairman of E/M Corporation (now wholly owned subsidiary of Morgan Crucible, plc, Windsor, England in charge of International acquisitions, looking for & negotiating purchas- es of companies worldwide to make E/M Corporation more global). He also, worked part-time as Executive Vice President and CEO of International Lubrication & Fuel Consultants. Starting in 2001, he served as Chairman of the Board of International Lubrication & Fuel Consultants, Rio Rancho, NM. Mr. Horwedel specialized in National Currency, but dealt in other types of U.S. and world currency too. He was a charter member of the Professional Currency Dealers Association, a former President and currently serving on its Board of Governors. Outside his numismatic interests, he was active in the Society of Tribologists & Lubrication Engineers, the Foundation Board of the Art Museum of Greater Lafayette. He served on or worked with the Art Museum of Greater Lafayette Board of Directors for the past 27 years. For the past eight years he has served on the Otterbein Town Council & was currently the President. He was also active in the Community Cancer Network, a Distinguished Kentucky Colonel, and in 2000 a recipient of the State of Indiana Distinguished Hoosier Award from the Office of Governor Mitch Daniels. Survivors include his wife Dorothy.
Death claims Indiana dealer Lowell Horwedel Paper Money • January/February 2013 • Whole No. 283 31 IMMEDIATELY UPON TAKING OFFICE IN 1933, PRESIDENTFranklin D. Roosevelt and his Treasury began resuscitating the implodingcommercial banking system. In short order they began restructuring themoney supply. Roosevelt’s Treasury and a compliant Congress cheapened the dollar and greatly increased the money supply. Both were designed to stimulate the depres- sion economy, and hopefully get people back to work. Roosevelt’s first order of business upon taking office was to impose a nationwide bank holiday by executive order and shepherd passage of the Emergency Banking Relief Act of March 9, 1933. That act gave him authority to regulate the value of the dollar. Roosevelt’s famous gold confiscation order, Executive Order 6102, dated April 5, 1933, required everyone to turn in their gold coins, gold bullion and Gold Certificates to banks, which would then forward those items on to the Federal Reserve Banks. The purpose of his order was to free up gold that had been hoard- ed, and to get it into the hands of the government where it could be used to inflate the currency supply and do some good. A flurry of executive orders and Congressional acts followed. A few of them resulted in the design changes that appeared on our currency that are the focus of this article. Very significant was a section in Title III of the Agricultural Adjustment Act of May 12, 1933, that granted legal tender status to all currency and coin issued under the authority of the United States. The Gold Reserve Act of January 30, 1934, terminated the coinage and circulation of gold coin, but provided for unlimited coinage of silver. Not all of the legislation of interest here dripped from the tips of New Dealer pens. The Republican sponsored Tariff Act of June 17, 1930, also known as The Paper Column By Jamie Yakes & Peter Huntoon New Deal Design Changes Paper Money • January/February 2013 • Whole No. 28332 the Smoot-Hawley Tariff Act, was the most far reaching piece of protectionist legis- lation ever passed, and consequently was reviled by free traders and credited by economists with deepening the Great Depression. Section 648 of that act contained a curious provision that allowed United States and National Bank Notes to be used for the payment of duties on imports and interest on the public debt. The legislation authorizing United States Notes in 1862 forbade their use for payment of customs taxes because custom taxes were a primary source of gold for the Treasury. United States Notes were certain to be heavily discounted against gold at the time, so the government didn’t want to receive them in lieu of gold. Similarly, in order to preserve the credit of the Treasury, payments of inter- est on the public debt were required in gold. People who purchased gold bonds cer- tainly wouldn’t tolerate their interest being paid in discounted greenbacks. The government had no choice, it had to pay the interest and principal on its gold bonds in gold, or no one would buy the bonds. National bank notes were subject to the same two exceptions when they came along in 1863, because by law they were convertible into greenbacks. All forms of United States currency could be redeemed for gold when specie payments were resumed January 1, 1879. Consequently the value of green- backs converged on gold, so the legal tender exceptions were rendered moot then. Section 648 of the Smoot-Hawley Act codified that reality by formally dispatching both exceptions. The New Deal Treasury was faced with a very changed paper money sup- ply. Gold Certificates were being retired and Federal Reserve Notes were no longer redeemable in gold. New classes of silver were being monetized. Above all, all cur- rency was legal tender, not just United States Notes. These changes called for either new series or, at a minimum, revisions to the redemption/uses clauses on existing series. The clauses of interest to us are the finely lettered statements that generally are found under the Treasury seal except on Federal Reserve notes where they appear to the left of the portrait above the bank seal. The purpose of these clauses is to give the note holder confidence that the note in fact represents some value. They advise that the note is legal tender or how to redeem or otherwise use it for some- thing of value. There are three types of clauses: legal tender, redemption and use, or some combination of those concepts. United States Notes United States Notes were the least impacted class of currency by the New Deal changes. The exceptions were simply dropped from the legal tender clause. However, subtle changes were made on the $5s in order to better distinguish them from Silver Certificate and Federal Reserve Note $5s. LT SC FRN Figure 1. New Deal Treasury officials chose a different cycloid pattern for each of the $5 classes in order to distinguish between them. Paper Money • January/February 2013 • Whole No. 283 33 SPMC NEW MEMBERS - 10/05/2012 13956 Michael Andrews (C), Jason Bradford REINSTATEMENTS 12594 Donald Angerman (C), Jason Bradford 13456 William Guerrette Jr. (C), Jason Bradford 13405 James Guttridge (C), Jason Bradford 12401 Henry Pietila (C), Jason Bradford 12700 Robert Remy (C), Jason Bradford 13126 David Undis (C), Jason Bradford 13388 John Weber (C), Jason Bradford 13538 Robert Westfield (C), Jason Bradford 13501 Terry Williams (C), Jason Bradford SPMC NEW MEMBERS - 11/05/2012 - 13957 - 13960 13957 Gayle Guthrie (C & D), Website 13958 Adam Mertz (C & D), Bank Note Reporter 13959 Bernie Smith, 19-206 Portage Ave, Winnipeg, MB R3J 0K4, Canada (C, World), Website 13960 James Astwood (C), Website REINSTATEMENTS None LIFE MEMBERSHIP None NEW MEMBERS Membership Director Frank Clark P.O. Box 117060 Carrollton, TX 75011 WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collec- tion, and have more hobby fun. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * • extra charges apply for longer ads • You too can find “Money Mart success” United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: www.executivecurrency.com (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail: Bart@executivecurrency.com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`IW[VVK& ! !"#$%&''#()&*+,+$-"&.$ 7NOOPE7Q&R&S@SPO&7DTTP74.UTP>&R&7D.E>& D74DUPO&KK&W&KYB&IJKY& !PUON@OQ&KL&W&K_B&IJKL& 4+#&T,2#1,5$&7#5-#"& XJK&Z#)-&T(9#&>-"##-B&T,2#1,5$B&!T&YY[KV& Z#<&>(-#\&***%*(6%8/9;8/(5)+/*);8/11#8-/",9,& P$&]0)^9,"&R&V_KWY`IW[VVK& ! "#$%!&'!$%!($))!*+!,-.!/)-.$'&!01..+234!&2'!0-$2%!&2'!5!(-1)'!)$6+!7-!.12!7#&7!,-.!&))!%$8!&'%!,-.!9:;<=! /012345$%62278%9$584$%138-$ KLK&E%&Z%&IJ4'&>-"##-&R&>0(-#&UWYB&U/8,&O,-/5B&!T&YYLYK& 7:)+;'<:"#=$<>$?&(+$2+)&>@$/'&*<=+$:<>(#$ABCC$ a.>.4&DNO&EPZ&ZPU&>.4P& www.flacurrencycoin.com Z#&<0C&,5$&)#11&9,5C&$(33#"#5-&,5$&050)0,1& &N%&>%&70""#58C&(-#9)&,5$&E#,-&S,A#"&@9#"(8,5,%& D#$=&$>&)$;EF$&*$:#''$)"<*=$G+*)F$H*+=#=$%E**#>(FI$ !/"&9/"#&(53/"9,-(/5&8,11&P$&]0)^9,"&R&V_KWY`IW[VVK& & S1#,)# ,(1&9#&,5$&1#-&9#&25/*&(3&-+()&,11&*(11&*/"2%&&.&*(11&<#&<,82&(5&-+#&)+/A&/5&40#)$,CB&,5$&*(11&)#5$&C/0& -*/&8+#82)&3/"&b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`IW[VVK& ! !"#$%&''#()&*+,+$-"&.$ 7NOOPE7Q&R&S@SPO&7DTTP74.UTP>&R&7D.E>& D74DUPO&KK&W&KYB&IJKY& !PUON &KL&W&K_B&IJKL& 4+#&T,2#1,5$&7#5-#"& XJK&Z#)-&T(9#&>-"##-B&T,2#1,5$B&!T&YY[KV& Z#<&>(-#\&***%*(6%8/9;8/(5)+/*);8/11#8-/",9,& P$&]0)^9,"&R&V_KWY`IW[VVK& ! "#$%!&'!$%!($))!*+!,-.!/)-.$'&!01..+234!&2'!0-$2%!&2'!5!(-1)'!)$6+!7-!.12!7#&7!,-.!&))!%$8!&'%!,-.!9:;<=! /012345$%62278%9$584$%138-$ KLK&E%&Z%&IJ4'&>-"##-&R&>0(-#&UWYB&U/8,&O,-/5B&!T&YYLYK& 7:)+;'<:"#=$<>$?&(+$2+)&>@$/'&*<=+$:<>(#$ABCC$ a.>.4&D O&EPZ&ZPU&>.4P& www.flacurrencycoin.com Z#&<0C&,5$&)#11&9,5C&$(33#"#5-&,5$&050)0,1& &N%&>%&70""#58C&(-#9)&,5$&E#,-&S,A#"&@9#"(8,5,%& D#$=&$>&)$;EF$&*$:#''$)"<*=$G+*)F$H*+=#=$%E** >(FI$ !/"&9/"#&(53/"9,-(/5&8 11&P$&]0)^9,"&R& _KWY`IW[VVK& & S1#,)# ,(1&9#&,5$&1#-&9#&25/*&(3&-+()&,11&*(11&*/"2%&&.&*(11&<#&<,82&(5&-+#&)+/A&/5&40#)$,CB&,5$&*(11&)#5$&C/0& -*/&8+#82)&3/"&bIIV%&&D5#&3"/9&7/11#8-/",9,B&,5$&-+#&/-+#"&3"/9&!1/"($,&70""#58C&,5$&7/(5)%&&4+,52)%& P$&]0)^9,"! Paper Money • January/February 2013 • Whole No. 28334 The ornamental cycloid pattern inside the right and left borders on the $5 Federal Reserve and United States Notes previously were identical, so the pattern on the legals was redesigned from simple nested ovals to nested hearts. The objective was to use a different pattern for each class of $5s (Broughton, Nov. 15, 1933). They also added a cycloid pattern inside the right and left borders of the $2s. The pattern used on the $2s differed from that on the $5s, so no effort was being made to standardize the patterns across all the denominations within a given class. The new look to the $2 and $5 United States notes coincided with the change in signatures to Julian and Morgenthau. Models showing these changes were approved for use by Secretary Morgenthau March 22, 1934. The first of the new $2 1928C and $5 1928B production plates were certified on March 26th and 29th, respectively. Silver Certificates The action on the Silver Certificates occurred with the $1s and $10s. A legal tender clause first appeared on the $10 Series of 1933 plate certified January 3, 1934. As shown on Figure 4, the use clause on the $1s was changed to a legal tender clause with the introduction of the Julian-Morgenthau Series of 1928E notes, the first plate of which was certified February 11, 1934. Figure 2. The cycloid pattern on the early Series of 1928 United States $5s was identical to that on the Federal Reserve $5s, so it was changed when the streamlined legal tender clause was adopted. Figure 3. A cycloid pattern was added to the $2 notes at the same time the streamlined legal tender clause was adopted. Paper Money • January/February 2013 • Whole No. 283 35 The Series of 1934 Silver Certificates resulted from the Pittman Amendment in the Gold Reserve Act of January 30, 1934, which called for the president to “issue silver certificates in such denominations as he may prescribe against any silver bul- lion, silver, or standard silver dollars in the Treasury not then held for redemption of any outstanding silver certificates.” This was followed by the Silver Purchase Act of July 19, which directed the Secretary of the Treasury to purchase silver at a price-supported $1.2929 per ounce. UNESCO WANTED Coupons, both new and used; individual Specimen notes and Specimen books; and related ephemera wanted! Cell 585-305-4848 email davideseelye@gmail.com David Seelye P.O. Box 13117 Prescott, AZ 86304-3117 FOR THE SERIOUS ERROR COLLECTOR MONEYMISTAKES.US Figure 4. A legal tender clause was substituted for the use clause when the $1 Series of 1928E Julian-Morgenthau Silver Certificates were adopted. The change in position of the Treasury seal and addition of the large blue counter on the Series of 1934 $1s were institut- ed to aid sorting the Series of 1928 Silver Certificates from the 1934s dur- ing redemption. Paper Money • January/February 2013 • Whole No. 28336 This subsidy to silver producers drew large quantities of silver bullion into the Treasury. This bullion, of course, was monetized by the New Deal Treasury to increase the money supply in the form of additional Series of 1934 Silver Certificates. In contrast, the existing Series of 1928 Silver Certificates were obligations against specifically earmarked silver dollars deposited in the Treasury to secure Silver Certificates authorized by silver legislation passed in 1878, 1886 and 1900. Similarly, the Series of 1933 $10 notes were secured by silver dollars coined from sil- ver received from foreign countries received in payment for foreign debts as autho- rized by the Thomas Amendment in the Agricultural Adjustment Act of 1933. The Series of 1928 and new Series of 1934 were in simultaneous production at the BEP. Series of 1934 faces began to be printed on June 6, 1934. The last of the 1928 face plates left the presses August 10, 1934, and the last of the sheets were num- bered May 28, 1935 and delivered to the Treasury May 31st. The Treasury already was segregating Series of 1928 and 1933 Silver Certificates as they were coming in for redemption in order to maintain the separate accounts for each based on the legislation that authorized them. The idea, at least initially, was to separate the Series of 1934 notes as well. The biggest visual change between the Series of 1928 and 1934 $1 silvers, of course, was that the seal was moved from the left to the right and a large blue numer- al 1 was added to the 1934 notes. The purpose of these changes was to facilitate sort- ing the two series when they came in for redemption (Broughton, June 19, 1934). In order to avoid waste, the Series of 1928 notes were issued as replacements for worn Series of 1928 and earlier Silver Certificates until stocks of them were depleted. Once those stocks were gone, they were replaced by Series of 1934 notes. Simultaneously, stocks of silver dollars in the Treasury specifically earmarked for redemption of the Series of 1928 and older series were moved to general custody for redemption of any Silver Certificates (Broughton, June 7, 1934). This mechanism allowed the Series of 1934 to gradually supplant all previ- ous Silver Certificate series, thus yielding a consolidated series. The uniform Series of 1934 was secured by silver dollars, subsidiary silver coins and silver bullion held by the Treasury. Figure 5. Notice that the cycloid pattern on the $5 and $10 Silver Certificates is identical. Paper Money • January/February 2013 • Whole No. 283 37 The Series of 1933 $10s and newly authorized $5 and $10 Series of 1934 Silver Certificates utilized an identical cycloid pattern inside their right and left borders. However, the pattern differed from the more complex pattern found along the inside top and bottom borders of the $1s. Federal Reserve Notes The Federal Reserve clause lost its gold redemption cachet but gained legal tender status. Models with the new language for use on the new Series of 1934 notes were approved by Secretary Morgenthau on May 23, 1934 (Broughton, May 24, 1934). The first of the Series of 1934 plates to be certified were $5s for New York on October 12, 1934. The Federal Reserve Board desired to simplify the clause on the Series of 1934 Federal Reserve Notes even further by eliminating “and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank.” However Treasury offi- cials argued for retention in order to keep the clause in compliance with the Federal Reserve Act of 1913. Figure 7. There is a small difference in the cycloid patterns between the $5 and $10 Federal Reserve Notes. Figure 6. The gold redemption clause on the Series of 1928 was replaced by a legal tender clause on the Series of 1934 Federal Reserve Notes. Paper Money • January/February 2013 • Whole No. 28338 The cycloid patterns on the $5 and $10 Federal Reserve Notes were similar, but not identical as shown on Figure 7. Neither was altered during the New Deal period. Summary New Deal legislation permanently altered American money in three funda- mental ways. The United States was taken off the gold standard. The total money supply was increased in part through the issuance of Silver Certificates backed by bullion, the purchase of which was increased dramatically. All United States curren- cy and coin was given legal tender status. The Roosevelt Treasury displayed these changes on paper money primarily by altering the language in the legal tender/redemption/use clauses. Those clauses all became legal tender clauses regardless of class. Treasury officials deemed termination of gold payments for Federal Reserve Notes and the monetization of silver bullion as backing for Silver Certificates sufficiently revolutionary that they introduction the new Series of 1934 for both. The least impacted class of currency was the United States Notes. The only substantive change on them was to drop from their legal tender clauses the archaic prohibitions against their use for the payment of customs taxes and interest on the public debt. This edit had been authorized as a formality in the pre-New Deal Tariff Act of 1930. The change did not warrant introduction of a new series. However, minor design changes were made on the New Deal United States Notes at the same time the legal tender clause was simplified. A cycloid ornamental pattern was added inside the right and left borders of the $2s. The cycloid pattern on the inside right and left borders was changed on the $5s to further distinguish them from $5s of the other classes. Previously, the pattern was the same as on the Federal Reserve notes. Acknowledgment Derek Moffitt brought the changes to the cycloid patterns used on the Julian-Morgenthau $2 and $5 United States notes to our attention. References Cited Broughton, William S., Commissioner of the Public Debt, Nov. 15, 1933, memorandum to Alvin W. Hall, Director of the Bureau of Engraving and Printing, recommending that the legal tender clause and cycloid ornamentation used on the $2 an $5 United States Notes also be used on $1 United States Notes in due course: Bureau of the Public Debt, Series K Currency, box 12, file 721 (53/450/54/01-05), U. S. National Archives, College Park, MD. Broughton, William S., Commissioner of the Public Debt, May 24, 1934, memorandum to Alvin Hall, Director of the Bureau of Engraving and Printing, discussing approved mod- els of national bank notes and Federal Reserve notes with revised legal tender clauses: Bureau of the Public Debt, Series K Currency, box 12, file 721 (53/450/54/01/05), U.S. National Archives, College Park, MD. Broughton, William S., Commissioner of the Public Debt, June 7, 1934, memorandum to Herman Oliphant, General Counsel to the Secretary of the Treasury, describing the statutory distinctions between the different series of Silver Certificates: Bureau of the Public Debt, Series K Currency, box 12, file 721 (53/450/54/01-05), U. S. National Archives, College Park, MD. Broughton, William S., Commissioner of the Public Debt, Jun 19, 1934, memorandum to Herman Oliphant, General Counsel to the Secretary of the Treasury, recommending how the Bureau of Engraving and Printing and Treasury should handle the transition from Series of 1928 to 1934 Silver Certificates: Bureau of the Public Debt, Series K Currency, box 12, file 721 (53/450/54/01-05), U. S. National Archives, College Park, MD. Bureau of Engraving and Printing, 1928-1935, Plate history ledgers for small size United States currency plates: Record Group 318, U. S. National Archives, College Park, MD. United States Statutes, various dates, Government Printing Office, Washington, DC.
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 • January/February 2013 • Whole No. 283 39 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 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 • January/February 2013 • Whole No. 28340 THE BUREAU OF ENGRAVING AND PRINTING PRINTED FEWERthan two million Series of 1928 $1 legal tender notes ($1 LT) during Marchand April 1933. The Treasury had ordered them to plug a potential $1Silver Certificate ($1 SC) shortage that they anticipated would develop later in the year. The shortage never happened. They released fewer than 3,000 $1 LTs through the cash window at the Treasury building before deciding not to circulate the notes at all. They then held the balance of notes in unissued currency reserves for 15 years. Another $1 shortage developed in 1948-49 that allowed them to utilize the old stocks, but not before they thought creatively about where to most effectively use them. The primary reason that Treasury officials resisted using the notes, even when freshly printed, was to avoid burdening the redemption agencies in the Federal Reserve Banks and the Treasury Department with having to sort them from the ubiq- uitous $1 SCs. At the time, Silver Certificates comprised the entire $1 supply. Another reason was that silver legislation passed in 1934 allowed the Treasury to greatly expand their $1 SC stocks. This reinforced their ability to meet future demands for $1 SCs. This is the story of the 1928 $1 LTs. It is based on authoritative documenta- tion that I found in the Bureau of the Public Debt files housed in the National Archives. Letters there explained the need for the notes in 1933, and their subsequent use in 1948-49. Why Treasury Printed $1 Legal Tenders Two factors converged that caused the Treasury to print $1 LTs in 1933. First, their $1 SC reserve was running low; second, they had reached the limit under then-current laws on their ability to increase that supply. As they searched for options, existing legal tender legislation offered them their only way around the dilemma. Series of 1928 $1 United States Notes By Jamie Yakes Figure 0. Serial number 1 Series of 1928 $1 legal tender note. (National Numismatic Collection/Peter Huntoon) Paper Money • January/February 2013 • Whole No. 283 41 Paper Money • January/February 2013 • Whole No. 28342 Heavy currency withdrawals attendant to hoarding during 1930-32 had strained the capacity of the Treasury and the Federal Reserve Banks to provide ade- quate supplies of currency. At the time, all $1 notes were in the form of Silver Certificates (Figure 1), and that supply was growing short. By 1933, the Treasury's $1 stock had fallen 5% from the level of two years prior, and $1 reserves in the Federal Reserve banks had decreased 12% in just the past year.1 The low reserves greatly concerned Treasury officials. On March 15, Public Debt Commissioner William Broughton warned Assistant Treasury Secretary James Douglas of an "approaching shortage of $1 bills."2 Broughton advised that the sup- ply on hand would last a few more months, but also cautioned they couldn’t “fully comply with all the requests of Federal Reserve Banks for this denomination.”3 The Treasury's ability to issue Silver Certificates was limited to $540 mil- lion,4 an amount based on the quantity of silver dollars they held as assets, and a value that had remained unchanged since the Pittman Act recoinages ended in 1928. Since then, the supply of silver dollars had easily met the demand, so the U.S. mints had produced no more of the coins. By 1933, demand for $1s appeared to be exceed- ing the $540 million limit. The Treasury had few options for printing $1s in other classes. Legislation providing for Federal Reserve Notes and Gold Certificates didn’t authorize the use of $1 notes. Congress had authorized $1 and $2 National Bank Notes in 1917 (Figure 2), but actually using them was deemed too cumbersome. Lastly, the Emergency Banking Act passed earlier in March 1933, which authorized the Series of 1929 Federal Reserve Bank Notes, didn’t provide for $1 notes. Their only recourse was to print $1 LTs, because that denomination was still authorized on the books. Figure 1. The Treasury simplified the currency line-up prior to intro- ducing small-size notes in 1928. From then until 1933, it had issued $1 bills only as Silver Certificates. (National Numismatic Collection/Peter Huntoon) Figure 2. The only other $1 notes the Treasury could have issued in 1933 were $1 National Bank Notes (model shown here). Congress had approved them in October 1917 in an amendment to the national banking act, but using them in 1933 would have been impractical. (National Numismatic Collection/Peter Huntoon) Paper Money • January/February 2013 • Whole No. 283 43 Printing the $1 Legal Tenders The Treasury had undertaken a program to simplify the currency prior to when they introduced small-size notes in 1928. As a result, they had confined small- size $1s solely to Silver Certificates. This step simplified the workloads for both the BEP and the redemption agencies. The total volume of legal tender notes in circulation was fixed by law since 1878 at just over $346 million.5 After 1928, the Treasury maintained that volume through the issuance of $2 and $5 notes. They had the option to withdraw unfit $2s and $5s and substitute in their place $1s, and could even redeem fit $2s and $5s if necessary. Broughton mentioned to Douglas that the BEP already possessed a die for $1 LT faces, which they altered to have the then-current Woods-Woodin signatures.6 Using this die, the BEP began turning out finished $1 LT face plates on March 24, 1933. By April 8, they had 32 plates in service, inclusive of serial numbers 1 to 30, 32, and 36.7 The production of the first batches of $1 LT face plates was unusual because the BEP made them as steel plates using Perkins roll transfer technology instead of employing the modern electrolytic deposition process. Apparently, using the older technology allowed them to launch the program in a hurry. They continued making steel plates through May 29, the last being plate 61, and three days later started finishing electrolytic faces, beginning with plate 63. They ceased $1 LT face plate production on October 4, 1933, after finishing electrolytic plate 117.8 They never used any of the electrolytic plates, nor the last of the steel plates. Because they continued producing faces into October reveals the Treasury was still considering the option of using $1 LTs. Distinguishing $1 Legal Tender and Silver Certificates The face and back designs of the 1928 $1 LTs and $1 SCs were virtually identical (Figure 3), right down to the then-current Woods-Woodin signatures. This became a sticking point for the Treasury because the laws required that both classes Figure 3. The intaglio face designs for 1928 $1 SCs and $1 LTs were virtually identical. Although the red and blue seals and serial num- bers primarily distinguished each class, the BEP added the U.S.N. legend around the legal tender clause on the $1 LTs. (National Numismatic Collection/Peter Huntoon) Paper Money • January/February 2013 • Whole No. 28344 be separated during redemption. Up to this point, that was never a factor, but now separating them was going to introduce problems. Previously, the issue of sorting had prevented the Treasury from printing and circulating $10 and $20 legal tender notes in 1932, and later $20 and $100 Silver Certificates in 1934. They deemed it bad enough that the redemption agencies had to segregate the higher denomination Gold Certificates and Federal Reserve Notes. The Treasury didn’t have leeway to be as courteous with the $1 LTs. The red seals on the new $1 LTs would be a major asset in separating them, but redemption personnel already knew that the red seals tended to fade. To help them, the BEP boldy engraved the legend “United States Note” around the legal ten- der clause. $1 Legal Tender Notes Withheld Treasury officials had reluctantly moved forward with printing the $1 LTs, but it soon became evident that existing $1 SC stocks were sufficient to meet demands. Not needing the $1 LTs, the Treasury canceled the production program, and the BEP abruptly suspended face printing on April 12. The BEP serial-numbered 1,872,000 notes from the existing production and delivered the finished notes to the Treasury between April 26 and May 3.9Most went into unissued inventory, but the first 8,000 notes went to the cash room in the Treasury building (Figure 4). Cashiers released a total of 2,78310 to dignitaries and the public before the rest were withdrawn back to reserves. The Treasury’s need for the $1 LT notes had vanished. In 1934, Congress authorized the Treasury to monetize silver bullion through the Gold Reserve Act, and then increased the supply of silver available to the Treasury through the Silver Purchase Act. The acts vastly increased the Treasury’s capability to issue Silver Certificates. From them on, the volume of Silver Certificates ballooned, with no limit on the amount of $1s the Treasury could circulate (Figure 5). All the while, Treasury officials remained sensitive to the stockpiled $1 LTs because they had cost taxpayer money to produce. They considered it wasteful to destroy them, so they simply inventoried the supply. Figure 4. Records from an inventory on May 15, 1933, of the Treasury's unissued currency reserves. Most of the 1,872,000 1928 $1 LTs were placed into reserves. The first 8,000 went to the cash room. (Bureau of Public Debt files, National Archives.) Paper Money • January/February 2013 • Whole No. 283 45 Bourse Information: Jerry Lebo   sJCLEBO FRONTIERCOM Central States Numismatic Society 74th Anniversary Convention Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center !PRIL  %ARLY"IRD$AY !PRIL NOON PM2EGISTRATION&EE Visit our website:WWWCENTRALSTATESINFO s#IVIL7AR%DUCATIONAL&ORUM s%DUCATIONAL%XHIBITS s"OOTH"OURSE!REA s(ERITAGE#OIN3IGNATURE3ALE s(ERITAGE#URRENCY3IGNATURE3ALE s%DUCATIONAL0ROGRAMS s#LUBAND3OCIETY-EETINGS s&REE(OTEL'UESTAND6ISITOR0ARKING s&REE0UBLIC!DMISSION Airfare Discount: &OR!MERICAN!IRLINES$ISCOUNT "OOKATWWWAACOMGROUP Use Authorization Number “3243BM”FORA$ISCOUNT Hotel Reservations: 3CHAUMBURG2ENAISSANCE(OTEL  .ORTH4HOREAU$RIVE #ALL   -ENTION2ATE#ODE“CENCENA” FORSPECIALRATE Free Hotel Guest and Visitor Parking. No Pesky Sales Tax in Illinois Paper Money • January/February 2013 • Whole No. 28346 Notes Sent to Puerto Rico A perfect opportunity to finally use the $1 LTs came late in 1948. Heavy currency demands had once again reduced $1 reserves at the Treasury and the Federal Reserve Banks. Fiscal Assistant Secretary Edward F. Bartlett noted especially “heavy” demand for $1 notes against “very low” Treasury reserves of that denomina- tion.11 Bartlett suggested to Treasury Secretary John Snyder that they supplement the short supply of $1 SCs with the approximately 1,870,000 stockpiled $1 LTs. This would save $19,000, equivalent to the cost of printing the same amount of Silver Certificates, and also salvaged the money they had already spent to produce the notes.12 He further suggested--mindful of the eventual bothersome need to segregate redeemed $1 LTs from SCs--that the Treasury send them to Puerto Rico. Having them circulate in Puerto Rico would effectively segregate them from contaminating the Silver Certificate supply on the mainland. The Treasury had been shipping currency regularly to the island through the San Juan Branch of the National City Bank of New York City.13 In 1932 those deliveries included about $400,000 a month in $1s.14 They commenced with the $1 LT deliveries in November 1948, sending 400,000 notes by year’s end, and shipped the remaining notes the next year from January to April (Table 1). Those deliveries comprised the entire remaining inventory of 1928 $1 LTs! Table 1. Series of 1928 $1 LTs released from the Treasury's unissued cur- rency reserves to Puerto Rico in 1948-49. (Compiled from bimonthly Treasury inventories of unissued currency reserves: Record Group 53, Bureau of Public Debt, Series K Currency, Box 2, Files 123.1 and 123.2. National Archives and Records Administration, College Park, Maryland.) Date Notes in storage Notes released Nov. 15, 1948 1,870,000 a -- Nov. 30, 1948 1,464,000 400,000 Jan. 14, 1949 964,000 500,000 Feb. 15, 1949 564,000 400,000 Mar. 15, 1949 144,000 420,000 Apr. 15, 1949 0 144,000 Notes: a Approximate. Figure 5. Congress passed legislation in 1934 giving the Treasury expanded pow- ers to issue Silver Certificates. Subsequently, large issues of Series of 1934 and then Series of 1935 $1 Silver Certificates quelled the Treasury's $1 supply problems through World War II. (Heritage Auction Galleries) Paper Money • January/February 2013 • Whole No. 283 47 A Failed Option The Treasury printed $1 LTs in 1933 as a last resort to avoid a potentially devastating shortage of $1 SCs. As quickly as it approved them and the BEP printed them, the notes became obsolete when the Treasury’s $1 problem righted itself. The $1 LTs were then relegated to the vaults as a failed option. The main story of the 1928 $1 LTs certainly ranks as a significant part of the country’s monetary history, but the tale doesn't end there. A few anecdotes and mysteries add intrigue to the story. The First Sheets The first 120 $1 LTs were delivered to the Treasury as ten uncut sheets. I have been unable to find a distribution list for them. Schwartz and Lindquist list the fourth, sixth, ninth, and tenth sheets as still being intact.15 We know that the first sheet has been cut. The serial number 1 note resides in the Treasury Collection in the National Numismatic Collection at the Smithsonian in Washington, D.C. It’s in excellent condition save for a small ciga- rette burn in the top margin. The number 2 note is on permanent display at the Franklin D. Roosevelt Presidential Library and Museum in Hyde Park, New York. The seal and serials on it have considerably faded. The Last Sheet No mystery is as titillating as the circumstances surrounding the final twelve $1 LTs the BEP printed. They numbered in total 1,872,012 $1 LTs: The first 1,872,000 were delivered to the Treasury between April 26 and May 3, 1933, but the last 12 came out in the form of a sheet! The sheet bore serials A01872001A to A01872012A, and was made during 193416 (Figure 6). This was a special order that required BEP employees to pull one sheet from the unnumbered residual stock printed in 1933, and then set up a num- bering press especially to number this sheet! Figure 6. Page from a BEP ledger of fiscal-year deliveries of finished cur- rency sheets. Notice the single $1 LT sheet delivered in fiscal year 1934 (July 1, 1933 to June 30, 1934). (Bureau of Engraving and Printing files, National Archives.) Paper Money • January/February 2013 • Whole No. 28348 O’Donnell listed the sheet as reported in his census at least as early as the seventh edition of his Standard Handbook of Modern United States Paper Money.17 Low Serials The first 8,000 $1 LTs were delivered to the Treasury cash room. The first brick contained the first 4,000 serials, less the first 120 notes as uncut sheets, and the second brick included serials 4001 to 8000. A total of 2,738 of the notes were released. Based on the low-number census maintained by Logan Talks,18most of the reported low-numbered $1 LTs have seri- als between 1 and 2000, and a second group in the 4000s. It is apparent cashiers dis- tributed notes from both bricks in serial number order before such issuances ceased (Figure 7). Star Notes The BEP printed 24,000 $1 legal tender star notes,19 but based on reported specimens, only issued about 8,000 (Figure 8). The star serials in Talks’ census range from number 2 to 7892.20 All have plate positions from A to F, which indicates that the BEP printed them in a single run of 2,000 sheets, with serials 1 to 12,000 on the A-F notes, and 12,001 to 24,000 on the G-L notes. Specimens At least one uniface $1 LT specimen is known. It appeared in Heritage’s 2012 F.U.N. sale.21 That specimen is from the B-position of from plate 1, and bears printed serial A000000A (Figure 9). Based on its plate position, the specimen came from a full 12-subject sheet or possibly a 6-subject half sheet. The whereabouts of any other specimens are unknown. None are included in the National Numismatic Collection. Figure 7. Serial number 5000 1928 $1 legal tender note. (Logan Talks) Figure 8. The BEP printed 24,000 1928 $1 LT star notes, but apparently used only 8,000. (Heritage Auction Galleries) Paper Money • January/February 2013 • Whole No. 283 49 Want to get noticed? Just screw up. How many of you noticed upon sealing your SPMC dues envelopes, that you were thanked for your contribution to TAMS (Token and Medal Society)? If you noticed, give Ye Olde Editor a dunce cap and sit him in the corner for “time out.” Truth is, it was supposed to thank you for your fidelity to SPMC (like the second proof shown on this page), but gremlins infected the typesetting of our dues envelopes. If you mailed in your check to SPMC Secretary Benny Bolin, your funds really were credited to this Society, not TAMS. You can be sure of that, because you will notice a DEC 2013 or something like that on your label for the magazine that you now hold in your hands. SPMC thanks you for “re-upping” again. So why did the envelope substitute TAMS for SPMC, you ask? I wish I knew. Our printer wish- es they knew, too. Some midnight gremlin took it upon himself or herself to make that erroneous “correction” when fixing the SPMC Secretary’s address (see below). When we (our rep at the printer AND Ye Olde saw it, the envelope proof really did state the Society’s sentiments correctly, but when I marked a change to the Secretary’s address, someone who was also working on the TAMS dues enve- lope concurrently “helped” us out and made the change that landed Fred in the Dunce Chair . . . AGAIN . Egad!
Paper Money • January/February 2013 • Whole No. 28350 The Myth of Plate 12 For decades a myth has swirled around $1 LT face plate 12. Rumor has it that notes from plate 12 are supposed to be rare. The rumor owes its origins to Chuck O’Donnell, who found notes from the plate, but not the plate’s record card among records he examined at the BEP. He therefore considered plate 12 anomalous in some way. The fact is, plate 12 was used simultaneously alongside all the other plates during production of the notes. Specifically, the plate history ledger shows that it was on a press from March 27 until April 12, 1933.22 Census information reveals that plate 12 notes are no rarer than those from any of the other production plates. Woodin’s Signature William H. Woodin served as secretary of the Treasury for 303 days from March 4 to December 31, 1933. Up to that time his was the shortest tenure for any secretary since the secretary’s signature began to appear on currency starting with the Series of 1914 Federal Reserve Notes. He served with two treasurers: Walter O. Woods until May 31, and there- after with William A. Julian. The Woodin combinations are the scarcest signature pairings of federal officers on early small-size currency. The Woods-Woodin combination appeared on only three notes: the 1928 $1 LTs, Series of 1928C $1 SCs, and Series of 1928D $5 FRNs. Woodin’s signature first appeared on a 1928C $1 Silver Certificate face plate certified March 21, 1933.23 Numismatic Linkages The timing of the production of the $1 LTs in April and May 1933 is of consequence to paper money collectors. The BEP produced them just after it printed a majority of the Series of 1929 Federal Reserve Bank Notes. Congress authorized the 1929 notes in the Emergency Banking Relief Act of March 9, 1933, passed on the heals of President Franklin Roosevelt’s bank holi- day proclamation three days earlier. The BEP rushed the notes into production with all-day crash programs starting on March 11. Congress intended them as a means to increase the nation's money supply as hoarding was reaching a frenzied pace. Although not an emergency currency, the Treasury ordered the 1928 $1 LTs as part of the same overall push to help keep cash moving in the public sector. Acknowledgments The Society of Paper Money Collectors and the Professional Currency Dealers Association both provided support for this research. Peter Huntoon critical- ly reviewed this manuscript and made suggestions for improvement. Logan Talks provided information from his personal census about observed 1928 $1 LT serial numbers. Figure 9. This unique $1 LT speci- men appeared in the 2012 F.U.N sale. (Heritage Auction Galleries) Paper Money • January/February 2013 • Whole No. 283 51 End Notes 1. Federal Reserve System Board of Governors, 415. 2. Broughton to Douglas. 3. Ibid. 4. Annual Treasury Report, 388-9. 5. Hepburn, 222-3. 6. Broughton to Douglas. 7. United States Treasury, Bureau of Engraving and Printing, plate ledgers. 8. Ibid. 9. Shafer, 110. 10. Bartlett to Snyder. 11. Ibid. 12. Ibid. 13. Ibid. 14. Ibid. 15. Schwartz and Lindquist, 350. 16. Bureau of Engraving and Printing, O&M Secretary. 17. O'Donnell, 324 18. Talks, Paper Money. 19. Federal Bureau of Investigation, 84 20. Logan Talks, personal communication. 21. Heritage Auction Galleries, 3512:16046. 22. United States Treasury, Bureau of Engraving and Printing, plate ledgers. 23. Ibid. References Annual Report of the Secretary of the Treasury. Washington, D.C. United States Government Printing Office, 1933. Bartlet, E. F., Fiscal Assistant Secretary, November 24, 1948 letter to J. W. Snyder, Treasury Secretary, about distribut- ing Series of 1928 $1 United States notes in Puerto Rico: Record Group 53, Bureau of Public Debt, Series K Currency, Box 2, File K212. National Archives and Records Administration, College Park, Maryland. Broughton, W. S., Public Debt Commissioner, March 15, 1933 letter to James H. Douglas, Assistant Secretary of the Treasury, about production of Series of 1928 $1 United States notes. Record Group 53: Bureau of Public Debt, Series K Currency, Box 3, File 232.1. National Archives and Records Administration, College Park, Maryland. Bureau of Engraving and Printing. Certified proofs lifted from Federal currency plates, 1863-1985: National Numismatic Collection, National Museum of American History, Smithsonian Institution, Washington, D.C. Bureau of Engraving and Printing, O&M Secretary, April 1952, First serial numbers printed during each year on United States small size notes from 1928 to 1952: Bureau of Engraving Historical Resource Center, Washington, D.C. Federal Bureau of Investigation. “A description of all classes of paper currency issued since July 10, 1929.” Bureau of Engraving and Printing Central Correspondence Files, 1913-1939. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. Federal Reserve System Board of Governors. Banking and Monetary Statistics, 1914-1941. Washington, D.C.: Federal Reserve System Board of Governors, 1976. Hepburn, A. Barton. A History of Currency in the United States. New York: The Macmillan Company, 1915. Heritage Auction Galleries, Dallas, Texas. Permanent Auction Galleries, available at www.ha.com. Lindquist, Scott, and John Schwartz. The Standard Guide to Small-Size U.S. Paper Money. Iola, WI: Krause Publications, 2010. O'Donnell, Chuck. Standard Handbook of Modern United States Currency. Iola, WI: Krause Publications, 1982. Shafer, Neil. A Guide Book of Modern United States Currency. Racine, WI: Whitman Publishing Company, 1967. Talks, Logan. Personal census of small size notes. United States Treasury. Bureau of Engraving and Printing. Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s. Volume 6. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland.
Dear Fellow Paper Money Lovers: As your humble correspondent places fingers to keyboard for this issue’s column in Paper Money, he is already behind deadline, which, while not typical, is also not a unique event. Editor Reed, professional and patient in equal measures, awaits. As I write this, the hard-hit New Jersey and New York portions of the Atlantic seaboard are still dig- ging out and pumping out and reconnecting after Hurricane Sandy. Here on our block in Brooklyn, we personally were [thankfully] almost untouched, but one only needs to walk a few short blocks to areas which were submerged and have a long way to go before they return to normalcy, or at least what pass- es for it in here in New York. The impact of the storm has brought into sharp relief [in my mind] the fact that those of us interest- ed in paper money and its ancillary fields have an understandable focus on objects – mostly paper objects. These objects – bank notes, stocks and bonds, checks, and the like - are “the props with which we tell the story of history,” as my friend Tom Tesoriero would say. But often they are rare or unique props, historically important props, and they are often immensely personally precious. And one does not have to be the owner of these artifacts to prize them for their beauty or significance. This col- umn is not intended as a set of observations about monetary value…. So, at a time when so much physical damage has been sustained by so many, it is perhaps natural to eventually [for us Paper Money types] to think of our precious objects, and how we would feel were we to lose them to disaster. The “what-ifs” come to mind immediately. Total loss or soggy mess? Do we find ourselves compelled to start again or would we be heartbroken to the point of never collecting again? Do we start again but in a different paper field? A different numismatic field? Do we start collecting oyster plates? This is not the place, and I am not the expert, to engage in a diatribe on how to properly archive col- lectibles, where to securely store them, and what pre- ventive measures can be taken in order to make sure they are as safely ensconced as possible in order to ensure their very best chances at continuing to delight future generations. That topic alone could take several columns, but an event like Sandy if there is any good in it, is a reminder to all of us to focus on all terrible possibilities, however remote, and do what we can to plan for guarding against them. I do know of a family who sustained damage many years ago in a tornado, which blew down some magnificent old trees on their property, and flattened a very old wooden garage. As it happened, they kept an old safe in the back of the garage, and when all was said and done, that safe stood all by its lonely on its four wheels on what had been the concrete floor of the garage. Stuffed full of accumulated mint sets and proof sets and Whitman folders and such. Which were unharmed. Despite the fact that the safe was … unlocked. Still, not a recommended method for storage. But also at such a time, when so much physical damage has been sustained by so many, and [as this is written] a scant two weeks before Thanksgiving, it is also natural to remind ourselves that historic objects are just that, objects. While “relatively” important for some of, all of, or other than the rea- sons above, and in many cases involving significant monetary value, they are outranked every time by the health, home, safety and happiness of you and your loved ones. Once again, an event like Sandy if there is any good in it, is a reminder to all of us to focus on the truly important and be thankful for same. Before Sandy arrived, back in mid-October, we had here in New York a nice event, the second annual Wall Street Bourse. This event, begun last year by John Herzog, represents an effort to bring “the coin show” back to this town. Held at the Museum of American Finance, whose exhibits are free during the show, the bourse is a diverse crosscut of all the numismatic fields, with dealers in coins and ban- knotes and stocks and bonds equally well represent- ed. The weekend is almost too busy, with an auction, speakers’ events, a dinner at nearby India House and a breakfast at [the Wall Street location of ] Tiffany’s all wrapped in. I have written in this column about both the show and the Museum, and can only recom- mend the event for those in or out of town. Lastly, a follow-up on the Society’s website, www.spmc.org. It continues to progress, with web- master Hewitt devoting significant personal time to refining its functionality and the site itself keeping its promises to serve as an efficient new membership sign-up vehicle as well as making our existing mem- bers’ renewal process easier, faster, and paperless. Not Paper Money • January/February 2013 • Whole No. 28352 The President’s Column only does it reduce the annual time and effort of our members, it also reduces the work imposed on fine Secretary Bolin and fine Treasurer Moon. We are of course far from the day of discarding the traditional paper processes, but any new member joining by web and any existing member renewing by web is doing their officership a large favor. If you are web-enabled, please consider converting, and encourage your fel- low members to behave similarly. Publication lead times being what they are, Sandy will hopefully be a distant unpleasant memory for most of us by the time that this reaches the mail- boxes of you, our membership. And, if you are one of the East Coast residents deeply affected, be it by loss of a family member or housing or damage or extend- ed loss of power, you have my deepest regrets for the pain caused, and hopes that you are well on your “way back.” Sincerely, Mark
Paper Money • January/February 2013 • Whole No. 283 53 APROBLEM OBTAINING NEW NUMBERINGblocks in 1924, drove the BEP to switch to using large serial numbers on Series of 1922 $10 and $50 Gold Certificates. At the time, they were numbering those and $20 Gold Certificates with the same small serial numbers that first appeared on Series of 1896 Silver Certificates. Then-BEP Director Louis Hill initiated the change on January 19.1 The problem stemmed from a shortage of the small-numeral numbering blocks that was preventing the BEP from meeting the Treasury's daily order for 90,000 Gold Certificates. Currency presses back then held eight numbering blocks for overprinting four-subject sheets. Ordering additional small-numeral blocks would have cost $5,000. Furthermore, delivery could have taken almost three months, severely reducing the production of Gold Certificates during that time. To avoid such delays and the hefty expense, Hill rec- ommended that BEP personnel start numbering Gold Certificates with the same large-numeral numbering blocks being used for other classes of currency. Treasury officials agreed with him, and Treasurer Frank White approved his request on the 21st. Thereafter, BEP employees started numbering $10s and $50s with the large serial numbers. The first numbers applied on those two denominations, respectively, were H13504001 and B800001.2 They did the same for the 80,000 Series of 1922 $1000 Gold Certificates they num- bered from 1924-27.3 They printed small- and large-serial stars for the $10s, but only large-serial stars for the $50s. They didn't use star notes for the $1000s. Nothing changed with the $20s. The BEP continued numbering those with small serials because the crowded design restricted the size of right serial number. The larger numerals would have overlapped the portrait and the trea- sury seal. Acknowledgments The Professional Currency Dealers Association and the Society of Paper Money Collectors provided support for this research. Images courtesy of Heritage Auction Galleries. References Cited 1. Hill. L., BEP Director, January 19, 1924 letter to W. Broughton, Public Debt Commissioner, about using large serial numbers on Series of 1922 gold certificates: Record Group 53, Bureau of Public Debt, Paper of the United States: 1912-76, Box 1, Numbering Plan File, National Archives and Records Adminstration, College Park, Maryland. 2. Moffitt, Derek. http://www.uspapermoney.info/ serials/-large.html. Series of 1922 Gold Certificates. 3. Director of the Bureau of Engraving and Printing, annual reports, 1925 and 1927: United States Government Printing Office, Washington, D.C., 1925 and 1927.
Small Notes by Jamie Yakes Supply Problem Led to Large Serials on Gold Certificates Paper Money • January/February 2013 • Whole No. 28354 Unissued $2 Educational Note While on a research trip to the National Archives in the 1970s, I stumbled upon some correspondence that documented a quarrel between the Chief of the Bureau of Engraving and Printing (BEP) and artist and muralist Will Low (1853-1932). Low had been commissioned to design the $1 (H[essler] 45 & 46) and $2 (H185 & 186) 1896 Silver Certificates known to col- lectors as “Educational notes.” In November 1893, Thomas F. Morris (1852-1898), chief of Engraving at the BEP, visited Low in New York City and probably discussed two designs, the artist was working on simul- taneously. On May 10 of the following year, BEP Chief Johnson wrote to Low about the designs: I am glad to hear that you are at work on the finished designs, and hope you will push forward to completion at the earliest possible moment. Your suggestion as to making [the] ‘History and Youth’ design for the denomination of the one dollar is approved, and I think the ‘Peace and War,’ or ‘Peace and Defence’ if you so desire to call it, should be made for the two dollar design. Charles Schlecht and G.F.C. Smillie, who were assigned to engrave the $2 motif, both expressed approval when they saw the design. Johnson, on the other hand, responded negatively. In a letter dated December 14, 1894 the Bureau Chief wrote: I hardly know what to say with reference to your second design in addition to what I have said, which, as you know, was to the effect that it was not satisfactory. While I regret that such is the case, I cannot be expected as a public officer to approve of a design to be used for so important a purpose that is not all that I think it should be. As com- pared to your first design and that of Mr. Walter Shirlaw and some that are being prepared by other artists, to my mind it is not up to their standard. If you can change it so that we can be reasonably sure of its approval by the people when used on a bank note it will give me the greatest pleasure to approve it. Low replied immediately on December 15, asking Johnson why he had not been specific with his criticisms. Low itemized the alterations he had already made at Johnson's suggestion: In execution I considered it one of the best things which I have done and superior to the first design but in order to confirm my own belief and to give you the benefit of an expert judgment both as to conception and execution I offered to submit it to Mr. August Saint-Gaudens [and] Mr. Walter Shirlaw.... Both...agreed in thinking the second design superior to the first as I have already advised you. Nevertheless, Mr. Low agreed to further changes. On January 5, 1895, he received a disconcerting letter from Johnson explaining that “The design has been before me since its receipt and, after considering it from every point of view, I am forced to the painful duty of saying that it is not satisfactory." He closed by saying the design will be returned. Hurt and frustrated, Low wrote to the Secretary of the Treasury on January 14, 1895, stat- ing he had fulfilled his part of an agreement to provide a design for the specified $800 fee. I have found no further related correspondence was in the National Archives. I can only assume Low was paid $800 for his $1 design --- which was engraved by Schlecht --- but nothing for his proposed $2. In the box with this correspondence, I found a photograph of Low's original sketch. The location of the actual sketch, is not known. Although correspondence referred to a $2 design, the sketch shows a $10 that was changed on the final printing sub- mitted by Low. The $2 Educational note that ultimately was issued was designed by Edwin H. Blashfield and engraved by Schlecht and Smillie, who also would have engraved the Low $2 design. Will H. Low's original sketch for an 1896 Silver Certificate that never was issued. Although it shows a denomination of $10, it was intended for the $2 note. A photograph of the painting of this image with alterations is seen on page 100 of the 2004 edition of my U.S. Essay, Proof and Specimen Notes. Since so many important documents and letters have been secreted out of archives and libraries all over the world, I spoke to the librarian in the room where I was working at the National Archives and convinced her to separate the photograph from the correspondence before this (illustrated) unique item disap- peared. Reprinted with permission from The Numismatist January 1995 www.money.org
A Pr imer for Col lectors BY GENE HESSLER THE BUCK Starts Here Paper Money • January/February 2013 • Whole No. 283 55 WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIg ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page above -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. (Please Print) ______________________________ ___________________________________ ___________________________________ $$ money mart Paper Money will accept classified advertising on a basis of 15¢ per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbre- viations, figure combinations and initials count as separate words. No checking copies. 10 discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their 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 (285) 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) WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy and sell. Mention PM receive $3 credit. 661-298-3149. Gary Snover, PO Box 1932, Canyon Country, CA 91386 www.garysnover.com. (288) 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 (288) 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 (288) WANTED: MATERIAL FROM WHITEHALL, NY. Obsoletes, Nationals, Scrip, etc. Jeff Sullivan, P.O. Box 902, Manchester, MO 63011 (A) 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.net (286) vIRTUALLY ALL ISSUES OF PAPER MONEY, from 1971-72 through 2010. Also auction catalogs (Donlon, Kagin, etc.) from the same period. FREE! You pay packing and shipping. Bill Koster, 17 White Water Way, Milford, OH 45150 [billkoster@aol.com] (284) 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) TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need. Have many in the low printings. Free list. Ken Kooistra, PO Box 71, Perkiomenville, PA 18074. kmk050652@verizon.net (288) vIRgINIA NATIONAL BANK NOTES FOR SALE -- For list, contact jameslbecknerjr@gmail.com (285) Authors can request a free one-time ad. Contact the Editor (A) You can place YOUR paper money ad here inexpensively
Once upon a time, in a galaxy far, far away.... Yeah, Catawba Island, Ohio is pretty far out there. It’s just a wide spot in the road (not even an island) between Port Clinton (“Port where?”) and Sandusky (“Oh, I've heard of that place.”). It’s where Festers gather every spring to celebrate military curren- cies. In 2013 we will have the 14th such annual gathering. We expect between 60 and 80 people will show up for at least some part of the multi-day event. Fred will tell you that the only rule regarding Fest is that there are no rules. Fest is short for MPCFest. The initial impetus for these events was collectors of Military Payment Certificates (MPC) wanting to get together to trade information and notes. I missed the first three – initially because my collecting interest in MPC had faded, and the next two because the battalion clerk (Fred Schwan) scheduled them on top of the ANA spring shows in those years. As ANA chief judge, I had to be at those events. But I have not missed once since Fest IV. Fred’s column this month deals with the history of Fest, so let me talk about why it’s fun. You learn a lot. Between Thursday night (the supper at Big Bopper’s) and Sunday afternoon, you will be cheek-by-jowl with dedicated collectors and renowned authors, learning what they know and sharing what you know. Sure, there’s some bourse activity (Friday only) – some participants (dealers and collectors) come for that day alone. They don’t realize what they’re missing (though we try to tell them). All day Saturday is taken up with twenty-odd individual presentations on every topic you can imagine related to military or conflict-related numismatics (far beyond MPC, in both fabric Paper Money • January/February 2013 • Whole No. 28356 Harold Kroll is to blame. In late 1999 he and I were chat- ting on the phone about MPC. We were probably having those chats for five or so hours per week. In addition to MPC, we dis- cussed Allied military currency, barter units, foreign trade pay- ment certificates, Konversionskasse, and many other World War II issues. We were relatively new collector friends at that time. In the conversation in question I told Harold that I had a secret. It was more of a dream or fantasy than a secret. For years I had thought of having an MPC collector event. I even knew that I wanted to call it “MPCFest.” Very deliberately I did not want to call it a show. That was because to most people, show means bourse. My idea for this event did not include a bourse! Harold immediately responded that if I held it, he would be there, er, here. That was all of the encouragement that I need- ed. I sent emails to some candidates who might be interested and willing to travel to northern Ohio in the winter. I think that everyone whom I approached responded enthusiastically that he (no women then) would be there! That was the good and bad news! More than 10 collectors had agreed to come. What would we do? For that matter, where would we meet? It was eas- ier to tell Harold my innermost col- lecting secret than to host a Fest. We have many motels in the area, but many of them are closed in the winter. On the other hand, the ones that stay open are hungry for business. The main criteria for the facility were a free breakfast, walking distance to restau- rants, and, of course, a meeting room. The Quality Inn was the best choice, but they did not have a meeting room. No problem they said. We could have a guest room and they would take the beds out. That sounded like a plan to me. What to do for a weekend? One of the central ideas was that the visiting collectors would pay a registration fee that included lodging, meals, and participation in all events. Furthermore, the included meals would be provided at the event rather than spending the time to go to restaurants (and have to face possible frigid weather). I also wanted the fee to be so low U n c o u p l e d: Paper Money’s Odd Couple June, too long to wait? Joseph E. Boling Fred Schwan Military Fest Certificates are paid to attendees and used for purchases, wagering, and retained as collectibles. Please turn to page 58 . . . that it was obviously a great value. The point of the weekend was to celebrate MPC and the collecting thereof. The best news was that Larry Smulczenski and I had recently done some extensive research at the Bureau of Engraving and Printing and had some important (dramatic even) research to present--which we did. Another idea was to run the Fest like a military operation. We would have the troops (attendees) eat in the mess hall and have a training schedule. Another aspect of this reenactment idea was to issue our own Fest money on the MPC model. That is, it would be valid at the Fest and at some point be converted to a later series, after which it would have no value (except, of course, to collectors). Since this Fest money was part of my original fan- tasy, as soon as Harold said that he would come to the Fest, I asked him to take charge of creat- ing the first series of Fest notes. The only real idea I had of how to use the Fest money was to play poker with it on Saturday night – just as we have done every year since. Fest I was scheduled for the last weekend in February 2000. It was the week after the Chicago Paper Money Exposition. That allowed Larry and Leo May to drive north from Florida for both of these big events. A blizzard nearly wiped out CPMX and wor- ried me about the Fest. It was indeed cold. Frigid. Lake Erie was frozen solid and that ice was virtu- ally outside the hotel room doors. That was something of a treat to see for the California collectors! In spite of the weather, we avoided any serious transportation problems. I did not have anything planned for Friday night other than dinner and fellowship, but any concerns that I had were quickly eliminated. The overwhelming topic of chat was MPCFest II! Just because there was no bourse does not mean that no notes found new homes. Swap meets sprang up at every spare minute and Leo May managed to spread much of his inventory around the meeting room. We had double the number of collectors for Fest II, then increased to about 50 participants each year. Fest XIII (I can hardly believe it) was held in 2012. The Fest is much as it was in 2000, but it has evolved. We are now in the Holiday Inn Express – no more using a bedroom for meetings. Since Fest IV (I think), we have had a bourse on Friday. It is not an official Fest event. I consider it something of a preshow and it has been quite successful in many ways. Most importantly it has helped collectors find items for their collec- tions. It has encouraged a high proportion of Festers to arrive on Thursday. That is great because it produces much more time for fellowship. Doug Bell and Steve Swoish seized the opportunity and have organized a bowling event for Thursday night after our bourse banquet. The bourse is unique in many ways. It is not the only paper money bourse in the country, of course, but it is the only mili- tary money bourse. I think that it is also the only bourse in the country that is open only on Friday! The first two years that we had the bourse, we had an admission fee: negative $5. Yes, we paid people to come to the Fest bourse! The problem was that none of the published numismatic event calendars could handle this. To make it worse, they generally translated -$5 to $5, so people came expecting to pay $5. We gave up on paying the shoppers. Nonetheless, we get some unexpected customers every year (of course you are wel- come). One collector has driven to Ohio from Massachusetts sev- eral times in search of goodies. A recent development has been meetings of specialist collectors. War bond collectors and Japanese invasion money enthusiasts have been meeting during the bourse. We now have a quiz program (we call it March Madness, although that will mean something else to most readers) that starts on Friday night and concludes with the finals on Saturday night. The winner is the national champion for the year. Jim Downey is a three time national champion and now runs the contest. Between rounds of March Madness are educational programs ranging from 1 to 30 minutes. Over the years we have had some really spectacular discoveries uncovered as part of the Fest. We have also been fortunate to have important keynote presentations by visitors, and anoth- er special visitor is planned for 2013. Steve and Rachel Feller are now in charge of this aspect, and have orga- nized more than 25 programs for each of the last few years! After the awards program on Saturday night is the annual poker game. It has evolved into a Texas hol- dem tournament. Bragging rights, a bracelet, and thousands of dollars of Fest bonds go to the winner. Oh, I forgot to mention that each year Fest Bond Officer Warner Talso sells Fest War Bonds in reenactment of World War II bond drives. Of course the bonds are paid for and redeemed in Fest money. On Sunday morning we have the drawing for the Fest lot- tery (tickets of course purchased with Fest money). Then we have our annual benefit auction where we raise money to fund scholarships to the military numismatic classes at the American Numismatic Association summer seminar. After lunch on Sunday, we have an optional field trip. I hope that I have adequately outlined the Fest, but I know that it is not really possible to describe all of the wonderful activ- ity. Joe’s comments should help round that out. Also, the tim- ing of this report is to make sure that you have a chance to con- sider joining us for Fest XIV. It will be a great time. It will be in Port Clinton, Ohio March 15-17, 2013. If you know that you want to come, call Kim (at the Holiday Inn Express, Port Clinton, Ohio) (419) 732-7322. If you are not sure yet, you can subscribe to the community’s free newsletter by writing to MPCGram@yahoo.com. Alternatively you can email or call me: fredschwan@yahoo.com, (419) 349-1872.
Paper Money • January/February 2013 • Whole No. 283 57 Schwan continued . . . Fest challenge coins are awarded for good deeds each year. Paper Money • January/February 2013 • Whole No. 28358 and time period). On Friday and Saturday evenings we watch virtually every attendee progressing through a single-elimination tournament to determine who can respond most quickly and accurately to questions related to those same topics – questions drawn from published and non-published sources (the latter being the educational talks that you should have been paying attention to at that Fest). Many years there are special guests, who make presentations on their experiences using (or creating, or researching) the objects we collect. We have had retired finance officers, WWII veterans, authors, and Hans Walter, one of the three surviving members of the group of Jewish prisoners who manufactured British white notes in Sachsenhausen (he has come twice). We have heard stories of derring-do related to finding and purchas- ing items like a progressive proof set of MPC. And we have a good time. After school is out, there’s a poker tournament, or a movie, and maybe a wedding (and if not a wedding, then a proposal). The year we had the wedding, there were also a stag party and a shower (most of the women went in that direction). Yes, we have lots of women attending – both as Festers and as Tiger Lilies. The latter are mostly spouses who have minimal interest in the numismatic events, so they go off during the day to museums, parks, and shopping venues, under the direction of the battalion clerk’s wife, Judy Schwan. And that poker tourna- ment – won three times now by a 20-something former columnist for the IBNS (while in her teens), and co-author of a book on holocaust camp notes – Ray Feller. The guest book at her wedding was a short snorter composed of mil- itary fest certificates created for the wedding. Think we don't all love her? Several Festers went to Massachusetts for that wedding, from as far away as Texas. Do any of your clubs generate this kind of cama- raderie? Scattered throughout the events already mentioned is a parallel stream of activities related to the historical use of MPC – training to use them, receiving them, controlling them, and converting them to another series with no notice. If you are too young to have used MPC, or never served in a theater where they were in use, you will get a good feel for what they were and how they worked. (I personally have used five of the thirteen series in my life.) Sunday morning is a benefit auction that sends collectors to the ANA summer seminar course on military numismatics. We have sent about three people a year over the 12 years that the military seminar has been in the ANA’s catalog. The auction itself is educational, as lots are described and sold, and equally entertaining. No, we don't have Tiny Cross there (yet), but we can have a great time without the “overhalls.” Sunday afternoon, if you aren't compelled to catch a flight yet, we have a field trip to some museum within a sixty-mile radius. And if all that is not enough to get you interested, you can extend your stay a day or two in either direction from the main event, coming in as early as Monday (I know some who will go straight from CPMX to Fest in 2013) and leaving as late as Tuesday eight days later – all the while reinforcing your “fix” on whatever it is you collect, and just having a fine time while doing it. Join us – 15-17 March 2013 (or, as I have pencilled it in, 13-18 March). Costs? We won’t know for a while what the 2013 registration fee will be, but remember, only two events pay you to show up. They are MPCFest and the military seminar at ANA each summer. And the cost of living at Catawba Island in March is low.
Boling continued . . . Above: The five Festers who have been to all 13 events: (left to right) Doug Bell, Fred Schwan, Larry Smulczenski, Jack Lippincott, and first Fester Harold Kroll. Below: Fest XI group photo. Paper Money • January/February 2013 • Whole No. 283 59 Phebe M. Rideout, National Bank President [Addendum] By Karl Sanford Kabelac Phebe M. Rideout (1841-1932), who inher- ited her husband’s California banks at his death in 1907, was the first president of the Rideout, Smith National Bank of Oroville, CA when it was founded in 1912. An article on her appeared in Paper Money for May/June 2006. A recent discovery has revealed that she was also the founding president of a second National Bank, The First National Bank of Marysville (charter #11123) in nearby Marysville, Yuba County, California. (She was also the president of the Rideout Bank in Marysville and of the Northern California Bank of Savings in Marysville.) Although chartered in December 1917, The First National Bank of Marysville did not open until July 3, 1918, because of various delays. Her appointment as president was announced in April 1918, and she was reelected president at the bank’s first annual meeting in January 1919. But at the next annual meeting Tom Mathews, a civic leader and local businessman, became pres- ident. The bank itself became part of the Bank of America in 1931. At her funeral in Sacramento in 1932, six California bank presidents, all presidents of banks for which she had once served as presi- dent, were her pall bearers. She joins Evalyn S. (Nesbitt) Tome France (Paper Money, November/December 2010) as the second woman to be president of two National Banks during the National Bank Note issuing period. Sources Phebe M. Rideout’s selec- tion as president of the bank was noted in The M a r y s v i l l e Appeal, April 2, 1918; the open- ing of the bank was noted in the issues for June 27 and July 3, 1918; the first annual meeting in the issue of January 15, 1919, and the second annual meeting in the issue of January 14, 1920. The Marysvi lle Appeal-Democrat covered her death in its issue for May 17, 1932, and her funeral in the paper two days later.
The announcement of her selection as president of The First National Bank of Marysville, April 1918. She was then 76 years old. A Series 1902 National Bank Note with Phebe M. Rideout s signa- ture as president. (Courtesy Heritage Auctions)
Paper Money • January/February 2013 • Whole No. 28360 Bells is located in east central Grayson County ten miles east of Sherman. The first settler in the area was Daniel Dugan in 1835. At this time one of the major entry points into Texas crossed the Red River and ran through Sherman southwards further into the Mexican state of Coahuila and Texas. Therefore, Dugan was just a few miles removed from this early thoroughfare. However, growth came very slowly to the area until the early 1870s when both the Texas and Pacific Railroad and the Missouri, Kansas and Texas Railroad arrived. The first name for the community from 1871 to 1878 was Dugansville, in honor of the pio- neer settler. Then in 1879 the settle- ment chose the name of Bells (or Bell's). Speculation is that this was probably in reference to the many churches that had been built in the surrounding plains during the decade of the 1870s. At this time Bells also had a post office, nine stores, a mill, a cotton gin, and a school. Most of this growth took place just south of the railroad tracks. The town was able to incor- porate in 1881. The 1900 census showed that the population stood at 400 souls. Also, the town now had twenty businesses, two schools, several churches, and a weekly newspa- per, the North Texas Courant. Growth would continue in the intervening decades so that the population in the 1920s was 600 people with thirty businesses. The year 1902 saw the organization of the Farmers & Merchants Bank by G.D. Simpson. This bank became The First National Bank of Bells with charter num- ber #7524 on December 24, 1904, with W.B. Blanton as the first president. The other president during the National Bank Note era was C.R. Badgett. The bank issued $10 and $20 1902 Red Seals, Date Backs, and Plain Backs. It also issued $10 and $20 1929 Type I and Type II Nationals. The bank is still operating today as the First National Bank of Bells/Savoy. It added the neighboring town of Savoy to its name in 1993. The bank's website points out that it did not fail during the Great Depression or during the Texas bank failures of the 1980s. The website also list two robberies. The first was on November 21, 1934, by three men in an automobile who were thwarted by barking dogs. I hope the dogs were handsomely rewarded. The second robbery was in July 1973 when the bank was "cased" by a man and when he returned later, the employees remembered him. This is a rare bank in both large and small size. Each of the famed Irish and The First National Bank of Bells, Texas By Frank Clark Rare note from The First National Bank of Bells, Texas, one of three small size known. Paper Money • January/February 2013 • Whole No. 283 61 Everson Collections did not possess a single note. Two collections of Texas Nationals that had examples were the Philpott and the Texas Collections. The Philpott/Moody Foundation note is a $10 1902 Plain Back, Friedberg 624. The Texas Collection note sold by Heritage Auctions on January 4, 2001, was a $20 1902 Plain Back, Friedberg 650. Both of these notes had the officers of Cashier Joe Hughes and President C.R. Badgett. This is also the officer duo on the Series 1929 Type I $20 that accompanies this article. Census figures now stand at a mere two large and three small document- ed on this elusive bank. Bibliography Kelly, Don C., Ph.D. National Bank Notes. A Guide With Prices. Sixth Edition. Oxford, OH: Paper Money Institute, Inc., 2008. Minor, David, "Bells, TX." Handbook of Texas Online. First National Bank of Bells/Savoy website. Have you checked out the SPMC website (www.spmc.org) lately? Lots of good stuff there Members-only access to all back issues of Paper Money and other benefits! Paper Money • January/February 2013 • Whole No. 28362 ANNIE MCLEAN WAS BORN IN VICTORIA COUNTY, TEXAS IN 1860,the first of nine children of William Pinckney and Margaret (Batte) McLean.Her father had a distinguished career as a lawyer, judge and civic leader,including serving a term in the United States House of Representatives. The family moved to Mt. Pleasant, Texas about 1865. Mt. Pleasant, the county seat of Titus County, is located in the northeastern part of the state. It was founded in 1846 and by 1885 had a population of 800. Today its population is slightly over 15,000. In 1881 she married Charles W. Moores, who in 1883 was one of the founders of a private bank in Mt. Pleasant. Another founder was her sister’s husband, Charles C. Carr. At Moores’ death in 1888, and at the urging of her father and brother-in-law, she became active in the management of the bank. In 1892, it became a national bank, The First National Bank of Mt. Pleasant (charter # 4722) with Carr as the presi- dent. The next year she became president with Carr becoming the cashier. In 1900, Carr again assumed the presidency, and she became a vice president, but with his death in 1905, she again assumed the presidency and served until her death in 1916. A 1974 biographical account noted that when vice pres- ident and later when reassuming the presidency she served in an “inactive capacity.” Early in her banking career, though, she was very much involved with the bank. A newspaper article about her in September 1893 was headlined, “A Lady Bank President. A Texas Woman Who Proved Equal to the Financial Crisis.” The article mentions her “winning way and charming expression,” but noted there was nothing weak about her. It recounted how she “has proved herself equal to every emergency in the present financial crisis.” Mrs. Annie M. Moores, later Mrs. John R. Towler, National Bank President By Karl Sanford Kabelac Paper Money • January/February 2013 • Whole No. 283 63 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 • January/February 2013 • Whole No. 28364 A decade later in a 1904 interview she noted she was now quite used to bank- ing and her the bank was very successful, but that “in the panic of 1893 we all of us were nearly worried to death.” In May 1912, the woman bankers of Texas met as a group for the first time in conjunction with the Texas Bankers Association meeting in San Antonio. She was one of the speakers at this history-making event, her topic being “The Necessity of Married Women Informing Themselves with Regard to Business Matters.” She was a member of the Board of Lady Managers of the Louisiana Purchase Exposition, know today as the St Louis World’s Fair of 1904. Several years later, in July 1907, she mar- ried John R. Towler, a St. Louis dry goods merchant. In her later years she was active in St. Louis social circles. She died in her St. Louis home on February 19, 1916 after a two years’ bout with cancer. Radium treatments at Johns Hopkins University Hospital in Baltimore were said to have extended her life. She had had no children, but had helped bring up the four Carr children at the death of her sister in 1900. The bank continued until 1929, when it was voluntarily liquidated and reor- ganized as the First National Bank in Mt. Pleasant. Sources Traylor Russell, Pioneers and Heroes of Titus County (1974) has a biographi- cal sketch of her (pp. 216-218), her father (pp. 194-197), and her brother-in-law, Charles C. Carr (p. 40-43). The Philadelphia Inquirer of September 10, 1893 (and other papers including ones in New Orleans, Los Angeles, New York City) carried an interview of her. An interview in 1904 was carried in the Los Angeles Times of September 25, 1904, and slightly abridged in the Washington Post of the same date. The 1912 meeting of the woman bankers of Texas was noted in the Fort Worth Star- Telegraph of May 5, 1912. Her obituary appeared in the St. Louis Daily Globe- Democrat and one with a picture in the St. Louis Post Dispatch, both for February 20, 1916. Perhaps because of her relative youth and social standing, she received more national press than other early women national bank presidents. Some articles incor- rectly stated she was the first woman national bank president.
A well-circulated Series 1882 $20 Brown Back on The First National Bank of Mount Pleasant, Texas signed by Mrs Jno R Towler as President. It appears that she had perfected her signature in such a way (see below) that she did not lift the pen from the note until she had finished signing. (Courtesy Heritage Auctions) Paper Money • January/February 2013 • Whole No. 283 65 Do color ads in Paper Money Really Work? Just Did! . . . Gotcha Isn’t it time that YOU advertised in Paper Money? 66 Paper Money • January/February 2013 • Whole No. 283 United States Certificates of Deposit By Ronald Horstman TO PAY THE COST OF MILITARYOPERATIONSand government expenses, the Congress authorized atemporary loan in the Act of February 25, 1862. Thisact contained, among other things, a provision direct- ing the Secretary of the Treasury to have prepared and issued Certificates of Deposit in the total amount of $25 million. These certificates were to pay 5 percent interest for a period of at least 30 days and could be redeemed with 10 days notice. They were to be available to both corporations and banks and could be used to settle clearing house balances. Above and at left: Hessler X134E These certificates were very well received by the public and as more expenses arose, other certificates were authorized. By June 30, 1864, a total of $325 million had been issued at the same rate of 5 percent. Certificates were used with fixed denominations and redemption locations. Legal Tender Notes were the only class of circulating cur- rency acceptable for deposit. Seldom Seen Stuff Past SPMC President Ron Horstman exhibited these Civil War era Certificates of Deposit at last summer’s Memphis International Paper Money Show. We invited him to share these rare financial instruments with readers of Paper Money, which he has graciously done. Paper Money • January/February 2013 • Whole No. 283 67 Paper Money • January/February 2013 • Whole No. 28368 Blank certificates (such as shown above) were used with the issuing location and denominations were filled in as needed.
Above: Hessler X134F WITH A STAGGERED “RELEASE” OVER AN INTERVALof at least a week, Canada’s third polymer note began to replace paper for the important $20 denomination more or less in time for Remembrance Day (Armistice Day Nov. 11). The predominantly green $20 depicts Elizabeth II as Queen of Canada. The note back illustrates and identifies the Canadian National Vimy Memorial, the highly distinctive structure flanked by groupings of red poppies. The see-through “win- dow” shows the Queen, and Peace Tower on Parliament Hill. The two previous polymer releases, the $100 and $50, depict- ed historic prime ministers, and had been “launched” and whol- ly replaced their respective paper forerunners, in single-day Canada-wide changeovers. Former notes of these high values remain cashable at banks, and hence spendable, but when so redeemed have not been reissued. In contrast, bankers tell me, no such “removal” of earlier paper $20s is currently being considered. Nor is such a “removal” anticipated for the two remaining values, the $10 and $5, both to be issued in polymer in 2013. Canada’s $2 and $1 notes were replaced by hefty coins (the $2 bimetallic), some years ago, and their paper counterparts seldom are seen in circu- lation today. Canadian collectors with whom I’ve spoken, most recently at the Halifax Coin Club in September perceive distinct chal- lenge in intelligently collecting across the protracted paper-to- polymer changeover. The $20 denomination came close to anticipated signature changes, new dates and prefixes, and other shifts resulting in more than usual complexity of issue. To col- lectors such challenge is anything but unwelcome. The present generation of note enthusiasts clearly enjoys detailed study of in- circulation new issues. Then came the surprise announcement that the Bank of Canada Governor, the senior signing officer, would be leaving, to step into the corresponding position at the Bank of England! This would imply new appointments, new signatures, and new releases over a more extended interval. As I understand it, United Kingdom note collectors favor first and last prefixes of new varieties, all denominations, and they will also be scrutiniz- ing notes newly entering circulation over months, even years, to come. Never a dull moment!
Notes from Up North: Canada rolls out polymer $20 By Harold Don Allen Paper Money • January/February 2013 • Whole No. 283 69 800.458.4646 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. Auction & Lot Viewing November 13-17, 2012 StacksBowers.com ÊÊ ÊÊ Ê ÊÊ ÊÊ Ê ÊÊ ÊÊ Ê Paper Money • January/February 2013 • Whole No. 28370 BARTLETT, TEXAS IS A COMMUNITY OF SOME 1,700 RESIDENTS INeast central Texas, about midway between Dallas and San Antonio and 40miles northeast of Austin. It was named for John T. Bartlett, one of thedonors of land for the community, which was incorporated in 1890. Bartlett, a native of Kentucky came to Texas in 1877, and purchased land where the community developed. He was first a merchant and then began a private bank in the growing community. Mary A. Bell, a native of Labadie, Missouri, was born on March 1, 1848. She had married John T. Bartlett on October 22, 1871. At his death on April 24, 1904, she and six of their seven children survived. His obituary made special mention of his love for his wife and children. Several months after Bartlett’s death, the bank became a national bank, The Bartlett National Bank (charter #7317) with a capital- ization of $35,000 and 39 stockhold- ers. Mary A. Bartlett was named president; their son, John T. Bartlett, vice-president; and son-in-law, Thomas B. Benson, the cashier. She served as president for almost two decades, until 1923/24. Her son-in-law T. B. Benson then became president, but with his death in 1932 she resumed the presidency and continued until the bank was voluntarily liquidated in December 1934. She died at her home in Bartlett on December 8, 1936, at the age of 88. Survived by four of her children and seven grandchildren, she was buried in the Bartlett Cemetery. Mary A. Bartlett, National Bank President By Karl Sanford Kabelac Above: A Series 1929 Type 1 note on the bank with the fancy facsimile signature of bank president, T. B. Benson, the son-in-law of Mary A. Bartlett. The Bartlett National Bank had been open less than a week when this advertisement appeared in the local newspaper on July 22, 1904. Paper Money • January/February 2013 • Whole No. 283 71 Paper Money • January/February 2013 • Whole No. 28372 THOMAS P. “TOM” ROCKWELL PASSEDAWAY on Sunday, September 2. He was active, mobile and mentally alert until shortly before he drifted off to sleep and died at home in his own bed, according to a family friend. Mr. Rockwell was well respected in the hobby. He was SPMC member #5726, a 30-year-plus member who joined the Society in 1979. Two of Mr. Rockwell’s nieces and a Hospice nurse were at his bedside when he passed. He would have been 95 in December. In addition to SPMC, Mr. Rockwell had been a member of the Boston Numismatic Society since 1958 and served as Treasurer for 39 years (1964-2003). He was a member of the Collectors Club of Boston since 1969 and served as Secretary for 31 years (1972-2003). He was also a charter member of the Currency Club of New England and Secretary and/or Treasurer of that club until 2003. In April of 2008 Tom was awarded the Numismatic News' Numismatic Ambassador Award, an honor for dedicated and selfless devotion to coin collecting goals. The internment took place on Saturday, October 13, at Ridgewood Cemetery, North Andover, MA. It was followed by a Celebration of Tom's Life at the Rockwell Family home.
Sources A long run of the Bartlett newspaper, 1902-1978, has been digitized and is available on “The Portal to Texas History” website. Via this, once can find the obituary for John T. Bartlett in the April 29, 1904, issue of The Bartlett Tribune and the obituary for Mary A. Bartlett in The Bartlett Tribune and News for December 11, 1936. Unfortunately, the newspapers for the years 1932 and 1934 are appar- ently not available. These would have had an obituary for Thomas B. Benson and information on the closing of the bank. The Handbook o f Texas Online was helpful for background information on the community.
Mary A. Bartlett resumed the presidency of the bank in 1932. She was then in her mid- 80s, as her facsimile signature on this Series 1929 Type 2 note would well lead one to realize. The Comptroller of the Currency annual report for 1904 provides financial data as of September 6, 1904 for the newly opened bank. Death claims SPMC Member Thomas P. Rockwell Paper Money • January/February 2013 • Whole No. 283 73 EMILIE SCHRAMM WAS BORN ON MARCH 4, 1864, ON THESCHRAMMfarm in Brown County, Minnesota. On November 3, 1884, she married EmilF. Sell, a native of Germany who had come with his family as a child in 1869 toRenville County, Minnesota. He became a successful merchant and banker and founding president of The First National Bank of Fairfax, Minnesota (charter #9771) in 1910. Fairfax, today a community of some 1,300 residents in Renville County, is in the agricultural area of south central Minnesota. Emil F. Sell died after a short illness on January 9, 1915 and his widow, Emilie, succeeded him as president of the bank. She was to serve in that capacity for 37 years, until 1952. One of their four daughters Gertrude Olga was the wife of William A. Fiss. They were married in 1910, the same year Fiss became the first cashier of The First National Bank of Fairfax. With his passing in May 1922, Harvey O. Fullerton, the assistant cashier, became cashier for a few years until 1925/26 when Gertrude O. Fiss Mrs. E. F. Sell, National Bank President By Karl Sanford Kabelac Mr. and Mrs. Emil F. Sell. He was president of the bank from its founding in 1910 until his death in 1915. Mrs. Sell succeeded him and served as president until 1952. MEMPHIS IS THE PAPER MONEY SPEAKINGevent of the year! We invite presentations on any fiscal paper or fiscal paper tie-in topic. We will have a packed program. Deadline for submissions is April 1st so we have adequate time to organize the program and send out press releases advertising your talk. Talks are scheduled on the hour throughout the show. Each talk is allotted 50 minutes, which includes time for questions. Speakers arrive 10 minutes before the hour for setup. You must use Powerpoint for your visuals. No exceptions. Lavishly illustrate your talk. Bring your own laptop or submit a disk with your presentation to Peter Huntoon two weeks in advance of the show. You are welcomed to mount a parallel exhibit in the exhibition area. Application requirements: (1) list of presenter(s) with full contact information for each, (2) title of talk, (3) catchy concise newsworthy description of the con- tent of your talk – this will be your primary draw, (4) advise if you need up to three display cases for show-and-tell items. Send applications to peterhuntoon@embarqmail.com
Paper Money • January/February 2013 • Whole No. 28374 assumed that position. In order for Mrs. Fiss to be able, with three young children, to assume that role, her mother Mrs. Sell became her housekeeper. Mrs. Sell died at the age of 93 on June 3, 1957. Her obituary noted she was “quiet, unassuming, gentle, wise, untiring [and] thoughtful” and had played an important part in community life in Fairfax since her marriage in 1884. She was sur- vived by her four daughters, seven grandchildren, and seven great grandchildren. The First National Bank of Fairfax continues to serve the community, hav- ing celebrate its centennial in 2010. Sources and acknowledgements Two local histories have been useful in this account. They are Franklyn Curtiss- Wedge, The History of Renville County Minnesota, Chicago (1916), volume 2, pages 707-711 for an account of the bank and biographical sketches of Emil F. Sell, William A. Fiss and Albert G. Briese; and Fairfax Centennial, 1882-1982 (1982), pages 45-47 for an account of Emil F. Sell and his family and pages 225-226 for a history of the bank. An obituary for William A. Fiss is found in the Fairfax Standard for May 11, 1922, and for Emilie A. Sell in the issue of June 6, 1957. The assistance of Mary Lou Smith of the Renville County Genealogical Society is grate- fully acknowledged.
Series 1929 Type 1 note on the bank. For some reason lost to history, the note does not bear the facsimiles sig- nature of Mrs. E. F. Sell, the presi- dent, but rather Albert G. Briese, who was actually the vice-president. The cashier, Gertrude O. Fiss, was the daughter of Mrs. Sell. (Courtesy Higgins Museum) Memphis Speakers Series Call for Papers 2012 Memphis International Paper Money Show June 14-16, 2013 Paper Money • January/February 2013 • Whole No. 283 75 Society of Paper Money Collectors Official Announcement Purpose: The Society of Paper Money Collectors is char- tered “to promote, stimulate, and advance the study of paper money and other financial documents in all their branches, along educational, historical and scientific lines.” The George W. Wait Memorial Prize is available annually to assist researchers engaged in important research leading to publication of book length works in the paper money field. George W. Wait, a founder and former SPMC President, was instrumental in launching the Society’s successful publishing program. The George W. Wait Memorial Prize is established to memorialize his achieve- ments/contributions to this field in perpetuity. Award: $500 will be awarded in unrestricted research grant(s). Note: the Awards Committee may decide to award this amount to a single applicant, or lesser amounts totaling $500 to more than one applicant. If, in the opin- ion of the Awards Committee, no qualifying applicant is found, funds will be held over. Prior Award Winners: Both individuals and groups have been awarded the Wait Memorial Prize. Each received the maximum award. 1st annual Wait winner was Robert S. Neale for a book on antebellum Bank of Cape Fear, NC. The 2nd went to Forrest Daniel for a manuscript on small size War of 1812 Treasury Notes, published posthumously in our S/O 2008 issue. Gene Hessler was honored for a book on international bank note engravers. Honorees also included R. Shawn Hewitt and Charles Parrish for a book on Minnesota obsolete notes, Michael Reynard for a book on check collecting, Matt Janzen on Wisconsin nationals, Tom Carson and Dennis Schafluetzel on Tennessee scrip, and J. Fred Maples on Maryland banknotes. Eligibility: Anyone engaged in important research on paper money subjects is eligible to apply for the prize. Paper Money for the purposes of this award is to be defined broadly. In this con- text paper money is construed to mean U.S. federal currency, bonds, checks and other obligations; National Currency and National Banks; state-chartered banks of issue, obsolete notes, bonds, checks and other scrip of such banks; or railroads, municipalities, states, or other chartered corporations; private scrip; currency substitutes; essais, proofs or specimens; or similar items from abroad; or the engraving, production or counterfeit- ing of paper money and related items; or financial history in which the study of financial obligations such as paper money is integral. Deadline for entries: March 15, 2013 A successful applicant must furnish sufficient information to demonstrate to the Society of Paper Money Collectors Awards Committee the importance of the research, the seriousness of the applicant, and the likelihood that such will be published for the consumption of the membership of SPMC and the public gener- ally. The applicant’s track record of research and publication will be taken into account in making the award. A single applicant may submit up to two entries in a single year. Each entry must be full and complete in itself. It must be packaged separately and submitted separately. All rules must be followed with respect to each entry, or disqualification of the non-conforming entry will result. Additional rules: The Wait Memorial Prize may be awarded to a single applicant for the same project more than once; however awards for a single project will not be given to a single applicant more than once in five years, and no applicant may win the Wait Memorial Prize in consecutive years. An applicant who does not win an annual prize may submit an updated entry of the non-winning project in a subsequent year. Two or more applicants may submit a single entry for the Wait Prize. No members of the SPMC Awards Committee may apply for the Wait Memorial Prize in a year he/she is a member of the awarding committee. Winner agrees to acknowledge the assistance of the Society of Paper Money Collectors and the receipt of its George W. Wait Memorial Prize in any publication of research assisted by receipt of this award and to furnish a copy of any such publication to the SPMC library. Entries must include: • the full name of the applicant(s) • a permanent address for each applicant • a telephone number for each applicant • the title of the research project/book • sufficient written material of the scope and progress of the project thus far, including published samples of portions of the research project, if appropriate Entries may also include: • the applicant’s SPMC membership number(s) • the applicant’s e-mail address (if available) • a bibliography and/or samples of the applicant’s past pub- lished paper money research • a photograph of each applicant suitable for publicity • a publishable photograph(s) of paper money integral to the applicant’s research • a statement of publishability for the project under considera- tion from a recognized publisher Judging: All entries must be received by March 15, 2013. All entries must be complete when submitted, and sufficient return postage should be included if return is desired. Address entries to SPMC, attn. Fred Reed, George W. Wait Memorial Prize, P.O. Box 118162, Carrollton, TX 75011-8162. The single, over-riding criterion for the awarding of the Wait Memorial Prize will be the importance of publication of the applicant’s research to SPMC members and general public. All decisions of the Awards Committee will be final. Announcement of the awarding of the Wait Memorial Prize will be in the May/June 2013 issue of Paper Money.
11th Annual George W. Wait Memorial Prize The revised and updated 5th Edition of United States Currency, covering large and small size currency along with U. S. Postage and Fractional Currency, was compiled and authored by well-known numismatist Kenneth E. Bressett. The Foreword was done by Q. David Bowers. Few in the hobby are as well-known as these numismatic legends. This soft cover 352-page reference (6x9) has 100s of full-color illustrations. Treasury Notes of the War of 1812, uncut sheets, error & star notes, and different vari- eties are also covered. The book utilizes the Friedberg numbering system which is the standard for paper money. Prices are given in seven differ- ent grades. A guide for detect- ing counterfeits is included. The preface gives the sources this reference is based on. They are, the United States Large Size Paper Money 1861- 1923 (6th Edition) by William P. Donlon; A Guide Bo ok o f Uni ted Sta te s Fra c ti o na l Currenc y , by Matt Rothert (1963) and A Guide Bo o k o f Modern United States Currency (8th Edition) by Neil Shafer (1979). It also draws from more recent references including: A Guide Bo ok o f United States Paper Money by Arthur and Ira Friedberg (2011), and the Whitman Encyclopedia of U. S. Paper Money by Q. David Bowers (2009). The work provides the terms of Treasury Officials, information on the signers of the notes, errors and mis- printed notes, and star-numbered notes. The Acts that authorized the different issues or series of notes, face and back designs, and signature combinations are covered. U. S. Postage and Fractional Currency in both regular issue and proof or specimen notes are covered along with the Fractional Currency shields. Forerunner issues, postage currency envelopes, postage currency notes, encased postage stamps and counterfeit fractional curren- cy (with notes), complete this area. The small size currency section covers papers and inks; plate manufacture; currency manufacture; the COPE process; notes from test plates; serial number system for U. S. currency; star or replacement notes; block letters, Treasury officials (and chart of concurrent terms served) along with catalog values in up to seven grades. World War ll and Hawaii overprints as well as the Experimental R and S are also covered. Q. David Bowers states, “Many coin collec- tors have discovered that paper money offers many opportunities with scarce and rare pieces priced quite reasonably, including in high grades.” Whitman publisher, Dennis Tucker, states, “It appeals especially to beginning and intermediate collectors, but its engaging numis- matic text and solid market information are valu- able for longtime collectors and dealers as well.” We think this 5th Edition is an excellent resource for anyone who has an interest in the monetary system of our country from 1861 to present. We highly recommend it and know it will make you a “better informed collector, deal- er or researcher.” For information on purchasing the Guide Book o f United States Currency, 5th Edition priced at $19.95, you can contact the publisher at Whitman Publishing, LLC, 3103 Clairmont Rd., Suite B, Atlanta, GA. 30329 or visit their web page, www.whitmanbooks.com or call, (800) 546-2995.
Paper Money • January/February 2013 • Whole No. 28376 United States Currency by Kenneth Bressett Reviewed by John and Nancy Wilson, NLG Hi Fred, Why is it that ALL paper money grading services seem to be located back East? It appears there are no paper money grad- ing services West of the Mississippi....why is that? I attended the Texas Numismatic Association convention in Fort Worth in May, and it was recommended to me (highly) that I could get currency graded but had to send the notes to another state. Also I was informed it would take about eight weeks to get them back, which seemed okay with me at that time. The eight weeks came, so I called the grading service about the status of the certification. I was informed (politely) that the grading service was far back-logged, [and] they were just then working on notes sent to them from March. I was also told that my four notes would take about another 40-days to certify. I dare say the grading service industry may be doing a great disservice to the hobby by not having grading services in and or around, Oklahoma City to Houston or Albuquerque to St.Louis. Last September, I visited dealers in Los Angeles and San Francisco, CA and was told there were NO grading services for currency in either city, nor in Pheonix nor Las Vegas. Do you have any suggestions or idea's about this subject? Maybe some of your readers may give me some answers. Thanks, H. Brasco
Is a business opportunity just waiting to be filled? Paper Money • January/February 2013 • Whole No. 283 77 The Genuine Counterfeiter It’s the Public After his conviction for counterfeiting in March 2011, Bernard von NotHaus awaits sentencing for having coined Liberty Dollars “in resemblance or similitude” to U.S. money. Much opinion has been vented as to whether this outcome is just. My concern here instead is with a more basic question: What does it mean to counterfeit money? At first glance, counterfeiting seems to be an essentially technical challenge of creating fake money that can pass for the genuine stuff. Fighting counterfeiting implies that we know what genuine money is, and that we can use the genuine as a standard for discerning the imposter. Evolving technology suggests an ongoing “arms race” between the producers of genuine money and the counterfeiters. In this view, the arc of technological innovation from Jacob Perkins’ stereotype plates to the latest security strips and metameric inks represents a set of dynamic responses to practitioners of the dark arts. Yet there is something incomplete about a purely techno- logical view of counterfeiting. Von NotHaus wasn’t accused of making pieces that could be confused with any particular gen- uine U.S. coins. Rather, it was the very idea of U.S. money that he falsified, as if he were violating copyright. In doing this, von NotHaus resembles the artist J.S.G. Boggs, who got into similar trouble in the 1990s with British and American authorities for drawing and spending whimsical parodies of national currencies that could never have been mistaken for the genuine article. Indeed, neither man gave out currency artifacts that their recipi- ents didn’t want. That von NotHaus’s and Boggs’s monetary exchanges were consensual calls into question what counterfeit- ing is, if it isn’t a crime of misrepresentation. Von NotHaus and Boggs got into hot water because each in their way grasped at a deeper truth. Counterfeiting isn’t just about technical execution, but about reproducing the social trust and authority that leads us to accept money at all. Even mechan- ical exactitude is only as good as the ability of people to perceive it. Emanuel Ninger, Boggs’ 19th century predecessor and a gen- uine counterfeiter, succeeded not by reproducing currency, but in using his artistic skill to suggest the scrollwork otherwise pro- duced through mechanical means. “Jim the Penman” could pass his notes because the average person doesn’t accept currency with some template of technical perfection in mind. If it looks like money, then it becomes money. When we accept counter- feits, it’s we, the public, who make them genuine.
Chump Change Loren Gatch Pennywise & pound foolish The undersigned is among the most fortunate of individuals. My publisher and I agreed to bring out a sequel to our very success- ful book for the Lincoln Bicentennial in 2009, Abraham Lincoln, the Image o f His Greatness. The new 464-page work, similarly titled Abraham Lincoln, Beyond the American Icon is a true sequel, since it expands and amplifies upon my thesis from the first book that Lincoln’s money images set the table, so to speak, in branding the iconic Lincoln persona in the minds of the public. The new book is entirely new. Completely new text, and more than 1,400 entirely new images of Lincolniana in full color. What this new book shows, I hope, is that the Lincoln branding was VERY successful. In successive ages the Lincoln legend evolved from Lincoln the Man, to Lincoln the Ideal, to Lincoln the Idol, to Lincoln the Icon, to Lincoln Immortal based largely on the ubiqui- tous public representations of Honest Abe on the nation’s coins and paper money, bonds, checks, stamps, tokens and medals. In fact, due to the assistance of many famous and generous collectors and SPMC members, including Peter Huntoon, Austin Sheheen, Larry Adams, Dave Bowers, Terry Bryan, Tom Denly, Dennis Forgue, Len Glazer, Allen Mincho, Austin Sheheen, Gene Hessler, Ron Horstman, Harry Jones, Art Paradis, Richard Reed, Dana Linett, Wayne Homren, John and Nancy Wilson, David Schenkman, Larry Schuffman, Bob Schwartz, Neil Shafer, and of course my own collection, the new Abe book illustrates in full color (and many times with images larger than life) more than 170 items of choice Lincoln notes, bonds, scrip, checks and other financial documents. You can buy it or borrow it from the SPMC or ANA libraries, but please do take a look at the presentation. After you do, please write or email me. I’d be gratified to learn your reaction.
The Editor’s Notebook Fred L. Reed III Fred@spmc.org Reportedly Steven Spielberg spent $65 million on his new film Lincoln. For another $29.95 he could have bought either of the author’s two Lincoln books and discovered that 50-cent pieces with Lincoln’s portrait DID NOT circulate until summer 1869, but not during January 1865 as James Spader’s movie character claims! Paper Money • January/February 2013 • Whole No. 28378 Asking Impoderables awaiting a simple ‘thanks’ Why doesn’t McDonald’s go to the Wendy’s-style line for- mat so you don’t have to play that silly game of trying to figure out which line you’re in, which line you should be in or, if in fact, there are any lines at all? One line, next person. It’s not that difficult. And how can so many people not know its from it’s and you’re from your? People, it’s not that hard. I can’t get over the fact that I always get long recorded messages before I leave a voice mail message with instructions on how to leave a voice mail message. After all these years, is there anyone who doesn’t know how to leave a voice mail message? It’s 2012–who hasn’t left voice mail mes- sages by now? Why are people so obtuse about turning on their headlights in the rain or when it gets dark, and why does every car come with that stupid tachometer, an instrument few people under- stand or want? Why not use that dash- board space for something useful, like a compass or MPG gauge? My parents have a new 2012 Camry. Great, they can check the tachometer when they’re lost and not able to even figure out what direction they’re headed. I really get annoyed when waiters and waitresses (are we still allowed to call them that?) don’t keep track of who ordered what. It’s like we’re pigs at a trough and they just toss the slop in for us. We have to stop the conversation and try to figure out who ordered what. Isn’t that what the tips are for? I order, you bring what I ordered. Don’t get me started. What’s with the tip jars at Starbucks? And why don’t baristas say thanks when you put change in it? I used to leave a tip, but don’t anymore because I rarely got a sim- ple thank you. And will someone smack the people who don’t have the email etiquette down, that is, those who don’t delete email addresses before forwarding email messages? Delete the email addresses of prior recipients before forwarding the email mes- sage! Why do bookstores put fiction and non-fiction books on the same tables? Why should non-fiction readers have to wade through fiction? That’s like mixing blueberries in with a bowl of radishes. And making it a crime for an adult to not wear a seat belt? The police don’t have more important things to do? Seriously? And finally, can we get rid of “amazing” and “Oh my God,” the most overused and trite utterances in the English language?
Paul Herbert Don’t get me started Look around you at your fellow collector It’s late October as I sit down to write this issue’s column. I’ve got an outline in front of me ready to be fleshed out, dis- cussing my thoughts on how currency grading scales are actually two separate scales smashed together, with one taking precedence over the other, just as I alluded to at the end of last issue’s col- umn. But then I got word that Lowell Horwedel had passed away, and I decided to put that column aside for two months, and write about something else instead. I didn’t know Lowell well, which is to say that I talked with him a few times at shows, and purchased a note from him at one of them, back in 2009. I do remember that meeting clearly, which given my memory is high praise indeed. I can say that I’ve heard nothing but good things about him. But I’m sorry to say I didn’t know him better, or many other people in our hobby I probably should. I’ve been collecting for about a dozen years – long enough to get to know a few people well, and a larger group in passing, but I definitely haven’t met everyone in our hobby that I would like to. I have time, but with each passing year we lose people, along with their expertise, their stories, and their company. One of my fondest memories in this hobby is getting outbid (repeatedly) by Herb Schingoethe on a rainy night in Cincinnati. It was the first auction I attended in person, so I walked in not realizing that when the Number 13 card went up, you were proba- bly better off moving on to the next lot. Somebody I knew in attendance intro- duced us briefly during a break, but that was the only time I met the man. I would imagine that everyone who has been in our hobby for any sig- nificant length of time has similar stories. I hope to gather more over the next couple of decades, but more than that – I hope to hear other people’s stories, get to know more people and learn more about the history of currency collecting. As I wrote at the beginning of this column, it’s October as I write this. But at publication, the new year is upon us. Many of us are making resolutions, or choosing our collecting goals and priorities for 2013. I hope that many of us can find time and ability to share our knowledge, our stories, and our love of this hobby with others. And I certainly hope to learn more about Lowell, and all of the other people who have made our hobby what it is.
John Davenport Spurious Issues Paper Money • January/February 2013 • Whole No. 283 79 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 missed to sell your duplicate notes at “collector prices” Advertise in this space and take home the big bucks!!! Paper Money • January/February 2013 • Whole No. 28380 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 s Hosts the annual National Coin and Currency Convention each fall in Rosemont, Illinois. Please visit our Web Site pcdaonline.com for dates and location. s Encourages public awareness and education regarding the hobby of Paper Money Collecting. s 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. s 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. s 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/"OXs Westchester, IL 60154 (630) 889-8207 Jan-Feb 2013 SPMC cover_Jan/Feb Cover 11/26/12 1:13 PM Page 3 JANUARY 9-15, 2013 | ORLANDO | LIVE & ONLINE SIGNATURE® & PLATINUM NIGHT AUCTIONS Highlights from our official auctions at FUN 2013 Visit HA.com/3521 to view the catalogs and place bids online. 2013 FUN ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ❘ ® N ay Wrrae Hhm TorF noitae Nessennef To , T noitcellon Cerr It Iras Pla oore Pca6 F36. # 1hB Cn Namree Gh noitcellon Cerray Wrrae Hhm TorF It Iras Planoitae Nessennef To T g, p f 4675)P. # (hB Ct Nsrie FhT oitcellol Caee State Shm torF D - $, Iy n QPP6w 6em Ne onitecll Coorobseenr Geh tom g CGS G . # 5hB Ct Nsrie FhT , A 0e 2niy FreG VM7 P11 y e MnotsyeV – K, Nenotsy s Neldeee Nhn Te olbay niy Fret Vnerapp s Neldeee Nhn Te olbay emertxt Enerapp y, Ny e a CGS A a CGS A .og Cnini _985 1B $ 5e 2 _980 11B $ 0e 4niy Fl g C ee catalog and Fr s The Collector’ Handbook contact information and mail to Heritage, fax 214-409-1425, email CatalogOr 3500 venue Maple A Dallas, T Annual Sales Exceed $800 Million FL licenses: Heritage Numismatic Auctions, Inc.: AB665; Curr ;4304UAssoVaerdnA;5973UAreldaSekiM ed trademark and service mark of Heritage Capital Corporation. RegisteregisterAGE is a rHERIT SALLDA RKO YWEN EB o c T onsign ($65 value) for new clients. Please submit auction invoices of $1000+ in this category il rit , f 214-409-1425, e ail Catalog r exas 75219 800-872-6467 750,000+ Online Bidder ency Auctions of America: AB2218; FL Auctioneer licenses: Samuel Foose AU3244; emium. See HA.com for details.s Pr Auctions subject to 17.5% Buyer’.9604UAartskyDsirhC ed in U.S. Patent and T SLLI HLYREV COSICNARN FAS PA to an upcoming auction, li . l s it aucti n invoices of $1000+ in this category e details, go to HA.com/FCO.ders@HA.com, or call 866-835-3243. For mor HA.com -Members fice.rademark Of SIR VAENEG oc.AH 800-872-6467 ext. contact us at 23 29 3 ce. Include yourom any sour, fr ycnreruCBF/m rtetiwT/mco.AH 1001 Jan-Feb 2013 SPMC cover_Jan/Feb Cover 11/26/12 1:13 PM Page 4