Paper Money - Vol. LV, No. 2 - Whole No. 302 - March/April 2016

Paper Money Vol. LV, No. 2, Whole No. 302 www.SPMC.org March/April 2016 Official Journal of the Society of Paper Money Collectors Real Beauties Issued? Unapproved? See inside Featured U.S. Currency Highlights from Our Upcoming Auction!  e Stack’s Bowers Galleries O cial Auction of the Whitman Coin & Collectibles Baltimore Expo March 30-April 1, 2016 | Baltimore, Maryland Contact a numismatic representative to request a catalog, for more information about this upcoming event, or to consign to a future auction. 800.458.4646 (West Coast) | 800.566.2580 (East Coast) | Info@StacksBowers.com. 800.458.4646 West Coast Offi ce • 800.566.2580 East Coast Offi ce 1231 E. Dyer Road, Ste 100, Santa Ana, CA 92705 • 949.253.0916 Info@StacksBowers.com • StacksBowers.com California • New York • New Hampshire • Hong Kong • Paris SBG PM MarBalt2016 CurrHL2 160210 America’s Oldest and Most Accomplished Rare Coin Auctioneer Showcase Auctions Fr. 1. 1861 $5 Demand Note.   PMG Very Fine 25. Piedmont, Alabama. $10 1902 RS. Fr. 613. Charter #7464. PMG About Uncirculated 55. Fr. 119. 1901 $10 Legal Tender Note. PMG Superb Gem Uncirculated 67EPQ. Fernandina, Florida. $5  1882  BB. Fr. 471. Charter #4558. PMG Extremely Fine 45. Serial Number 1. Fr. 123. 1923 $10 Legal Tender Note. PCGS Gem New 65PPQ. Adair, Iowa. $5 1902. PB. Fr. 600. Charter #8699. PMG Choice Fine 15. West Minneapolis, Minnesota. 1902 $10-$10-$10-$20 PB. PMG Extremely Fine 45. Uncut Sheet. Fr.224.  1896 $1 Silver Certi cate. PCGS Superb Gem New 67PPQ. Lebanon, Kentucky. $5 1882 BB. Fr. 598. Charter #4271. PMG Very Fine 25. Serial Number 1. Fr. 2231-B. 1934 $10,000 Federal Reserve Note. PCGS Choice Uncirculated 64 Apparent. Minor Restorations. SBG PM MarBalt CurrHL2-Bid 160210.indd 2 2/11/16 2:43 PM Terms and Conditions  PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 711 Signal Mt. Rd #197, Chattanooga, TN 37405. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Jeff Brueggeman, 711 Signal Mtn. Rd, #197, Chattanooga, TN 37405. ©Society of Paper Money Collectors, Inc. 2014. All rights reserved. Reproduction of any article in whole or part without written approval is prohibited. Individual copies of this issue of PAPER MONEY are available from the secretary for $8 postpaid. 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 cannot be guaranteed. Include an SASE if acknowledgement is desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. 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Page bleed: must extend minimum 1/8” beyond trim for page head, foot, front. Safety margin: type and other non-bleed content must clear trim by minimum 1/2” Advertising copy shall be restricted to paper currency, allied numismatic material, publications and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable or inappropriate material or edit copy. The SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. PAPER MONEY Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LV, No. 1 Whole No. 301 Jan/Feb 2016 ISSN 0031-1162 Benny Bolin, Editor Editor Email—smcbb@sbcglobal.net Visit the SPMC website—www.SPMC.org Inventions & Evolution of Electrolytic Plate Making Peter Huntoon ................................................................... 5 Roslyn, Long Island, NY; Postal Note Timeline Bob Laub ........................................................................ 22 North Korea’s Paper Money Issues Carlson Chambliss ......................................................... 29 Fractional Currency; The Engravers & Artists Robert Kravitz .................................................................. 39 Small Notes—“Series 1934A Late Finished FRNs” Jamie Yakes ................................................................... 45 Uncoupled—Joe Boling & Fred Schwan ................................ 47 Alabama “Lost” Community Bill Gunther ..................................................................... 53 Interesting Mining Notes David Schwenkman ........................................................ 56 1934 Silver Certificate Stars Bill Brandimore ............................................................... 57 Obsolete Corner—Robert Gill ................................................ 59 Chump Change—Loren Gatch ............................................... 62 President’s Message ............................................................... 63 New Members ......................................................................... 64 Editor’s Message ..................................................................... 65 2015 Index to Paper Money .................................................... 66 Money Mart .............................................................................. 71 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 73 Society of Paper Money Collectors Officers and Appointees ELECTED OFFICERS: PRESIDENT--Pierre Fricke, Box 1094, Sudbury, MA 01776 VICE-PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 SECRETARY—Jeff Brueggeman, 711 Signal Mtn., Rd. #197, Chattanooga, TN 37405 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Jeff Brueggeman, 711 Signal Mtn. Rd #197, Chattanooga, TN Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Loren Gatch 2701 Walnut St., Norman, OK 73072 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Kathy Lawrence, 5815 Clendenin Ave., Dallas, TX 75228 Scott Lindquist, Box 2175, Minot, ND 58702 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Vacant Vacant APPOINTEES: PUBLISHER-EDITOR-----Benny Bolin, 5510 Bolin Rd. Allen, TX 75002 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 1211 Greenwood, IN 46142 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT- - M ark Anderson, 115 Congress St., Brooklyn, NY 11201 WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 REGIONAL MEETING COORDINATOR--Judith Murphy, Box 24056, Winston-Salem, NC 27114 The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show in Memphis, TN. Information about the SPMC, including the by-laws and activities can be found at our website, www.spmc.org. .The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards, but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the S o c i e t y prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date which can be found on the label of Paper Money. Renewals may be done via the Society website www.spmc.org or by check/money order sent to the secretary. Visit our website www.SPMC.org For updated information, past editions of Paper Money, Dues and membership information, upcoming events ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 74 A. J. Stevens & Co. – Agricultural Bank of Tennessee Andrew Jackson Stevens – The Life of an Iowa Wildcatter By Marv Wurzer Introduction. One of the more interesting aspects of obsolete currency collecting is the history behind each note and learning more about the individuals involved. With respect to notes issued by “wildcat” banks, there is the added dimension of determining how each of the individuals involved was perceived by the public: an unlucky saint or a deliberate sinner? Notes often overlooked in Iowa obsolete currency collecting are the “A.J. Stevens & Co.” stamped notes of the Agricultural Bank of Tennessee. Under Iowa’s first Constitution in 1846, “the creating of paper to circulate as money” was prohibited. This prohibition lasted for twelve years. Stephen Hempstead, the anti‐bank governor of Iowa (1850‐1854) boasted in his inaugural address that Iowa “was advancing steadily to competence and wealth” without banks, thus “showing to the world that bank indulgences, paper money, and special privileges, are unnecessary to secure to a people happiness and prosperity.”1 With no banks of issue, Iowa’s infant economy was starving for a circulating medium. It became a target and dumping ground for unregulated currency of other states. In 1856, it was estimated that Iowa had notes circulating from over three hundred banks, two‐thirds of them below par.2 With significant profits to be made, the constitutional prohibition did not stop a number of Iowans from finding ways to evade the law. One Iowa bank historian stated that the most important substitutes for legitimate bank notes in the 1850s were of three distinguishable types: (1) scrip issued by cities, counties, or other minor political subdivisions, (2) Nebraska wildcat bank notes (largely the work of Iowa men), and (3) A. J. Stevens money.3 So who was A.J. Stevens, what was “A. J. Stevens money,” and what happened to him? ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 75 Andrew Jackson Stevens. Andrew Jackson Stevens (1832‐1898) was better known as A. J. Stevens in pioneer banking circles. He was a “player” in the 1850s political and financial life of Iowa, particularly Des Moines, then known as Fort Des Moines. It is believed that he first came to Fort Des Moines in 1847, then an outpost of a few hundred people. He was sixteen years old and accepted a position as a public school teacher. A native New Yorker, he had earlier “read law” in the office of William H. Seward. (A photo of Seward as he appeared in 1859 is shown.) Seward was a former Governor of New York when Stevens worked for him and a future U.S. Senator who would later become Lincoln’s Secretary of State. (There are no known photos of Stevens.4) This was a valuable connection and one that Stevens would call on later. Around 1848, at the incredible young age of seventeen, he put his work with Seward to use and took up the practice of law in Fort Des Moines. He soon became involved in politics. In 1854, he became a member of a committee that was responsible for the naming of the counties of the relatively new state of Iowa, then at the edge of the frontier. That same year he won the state‐wide election for Auditor at the age of twenty‐two. However, the lure of money to be made in land speculation was too great. He resigned his office in September of 1855, just a year into his term, to engage full time in his real estate business. Some sources indicate that he actually started some form of a private bank in Iowa as early as 1853.5 His reason for doing so was likely his involvement in land speculation, a road to riches that he could not pass up. The most important function of early banking in Iowa was often the facilitation of real estate transactions. The “bank” often was nothing more than a real estate agency by another name. Therefore to understand early Iowa banking, an understanding of frontier real estate transactions is helpful. Early Land Title Acquisition. There were three ways in which an Iowa settler in the 1850s could acquire title to unsettled frontier land: 1) by land patent from the U.S government, 2) by military warrant (a form of land patent), or 3) from a railroad (which had received the direct grant of hundreds of thousands of acres of land from the government to help finance the building of railroads). A land patent is simply a direct land grant from a sovereign government, which in this case was the United States. The U.S. was selling land in frontier Iowa for $1.25 per acre. The settler could obtain a land patent by filing the necessary documents and paying the per acre price. The U.S. Government also granted bounty‐land ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 76 warrants for military service from 1775 to 1855 as rewards to veterans for military service in the Revolutionary War, the War of 1812 and various Indian Wars. It gave the holder the right to acquire a certain number of acres of designated land (and receive a land patent) for no cash. The conveyance would be in consideration for past military service of the individual named in the military warrant. There was an active market for third party buyers of military land warrants and Stevens was a major participant. An example of an 1855 military warrant for Iowa farm land out of the Fort Des Moines office appears on the left. The warrants purchased by and assigned to Stevens would have looked very similar since they were also issued out of the Fort Des Moines office and of approximately the same date. In reviewing U.S. Bureau of Land Management records, the number of land patents issued to Stevens is surprising. 275 Iowa land patents and 2 Nebraska land patents were issued to Andrew J. Stevens beginning in April of 1853 (when he was just twenty‐one) with ninety percent of these issued in the 1854 through 1856 period. 155 of these land patents were acquired by Stevens from the government by exchanging a veteran’s military warrant. The remaining 122 land patents were acquired by Stevens through payment of the $1.25 per acre standard governmental offering price. The standard practice was for the frontier banker to sell to speculators or settlers at $1.75 per acre to be paid in one year. The transaction would yield a one year profit of fifty cents per acre resulting in a 40% annual return to the frontier banker. Not bad if everything worked out. The drawback was that payment for a land patent from the government had to be in the form of upfront cash and only specie (i.e., coin or other hard money, no paper money) was accepted. Thus the banker acted as a facilitator or bridge between the frontier settler and the U.S. government. The military warrants provided even bigger profits and didn’t require payment in specie. Military warrants were acquired by Stevens likely through a discounted cash purchase from the veteran or often from the veteran’s widow. The military warrants traded at a discount of roughly 30%.6 This meant Stevens could acquire land from the government for an eighty‐five to ninety cents an acre payment to the veteran for land normally sold by the government for $1.25 per acre. A standard sale to the eastern speculator or local settler at $1.75 per acre on a one year contract for land acquired for $0.85 to $0.90 per acre would yield around 70%!7 The following page contains a June 1858 assignment deed to Andrew J. Stevens in the form of a U.S. land patent signed by a representative of President James Buchanan, the then President of the United States. The interesting part of the deed is that it recites that a military land warrant was “issued in favor of Ipe‐ho‐ke‐ta, widow of Okord‐Kie‐Micco, Sergeant in Captain Hengey’s Company Creek Volunteers Seminole War.” Although the majority of the military warrants acquired by Stevens were from veterans of the War of 1812, this one was from a veteran of an Indian War. The military land warrant referenced in the deed was unusual in that it had been awarded to a Native American who fought for and attained an officer rank in the U.S. Army. Okord‐Kie‐Micco’s widow sold the warrant to Stevens who then exchanged it for 40 acres in the Fort Des Moines land district. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 77 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 78 Formation of A.J. Stevens & Co. The Moffat Brothers. To facilitate his real estate business, Stevens formed A. J. Stevens & Co. This formation probably occurred shortly before he resigned his position as State Auditor in September of 1855. Here again, following his law training with Seward, Stevens crosses paths with a man of destiny. He hired a young man by the name of Samuel Moffat to be the bank’s cashier. Samuel convinced his 16 year old younger brother David to join him in Fort Des Moines. David became the assistant cashier of A. J. Stevens & Co. in 1855. Within a year David (photo at left) would travel 135 miles further west and become the cashier of the Bank of Nebraska located in Omaha City, Nebraska. The Bank of Nebraska was then being established by Benjamin F. Allen, a noted Fort Des Moines banker. This bank was one of the Iowa backed Nebraska wildcat banks that pumped unregulated bank notes into Iowa in the mid to late 1850s. David H. Moffat would eventually travel to Denver where he attained fame as a financier of banks and railroads. The famous Moffat Tunnel in the Colorado Rockies reflects his name. In the fall of 1855, Stevens also involved Samuel Moffat in his real estate business. The BLM records reflect no less than seven land patents acquired in the joint names of “Andrew J. Stevens and Samuel Moffat,” most of them dated October 1, 1855. Samuel Moffat also obtained an additional sixty‐seven Iowa land patents in his name alone in the 1855 to 1856 period. The Agricultural Bank of Tennessee Notes. Stevens determined that the volume of his land purchases would be greatly facilitated by an efficient medium of exchange. A circulating currency would enable him to make direct payment to the veteran and could also help him to acquire specie to pay to the government for direct land purchases. However, as earlier mentioned, Iowa law did not permit his private bank, A. J. Stevens & Co., to issue currency. His solution was to acquire the charter of the Agricultural Bank of Tennessee located in Brownsville, Tennessee which had been newly formed in that state in 1854. “Down in an obscure place in Tennessee, he [Stevens] bought the charter of the Agricultural Bank of Tennessee, loaded himself with its beautifully engraved notes, and immediately began to unload them on the community. It was ‘easy come, easy go.’ Having the prestige of a local institution, he was enabled to loan it in large blocks, to land buyers and speculators, taking their individual promissory notes therefor, with an agreement that he would redeem his banknote when presented at his bank. It was one of the wildest ‘wild‐cat kiting systems”8 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 79 The “beautifully engraved notes” were in denominations of $1, $2, and $5. An image of the $2 note appears at the beginning of this article and images of the $1 and $5 notes appear below. Each reflects the stamp of “A. J. Stevens.” However, some of these Agricultural Bank of Tennessee notes may be found with no stamp, a stamp of the “Bank of Commerce ‐ Chicago,” or a stamp of either (or both) “La Crosse” or “Racine” indicating circulation in Wisconsin. (The A. J. Stevens stamped $1 denominated notes are difficult to find. The image of the one appearing above is courtesy of Heritage Auctions. The images of the other notes are my own.) Up until June 1, 1857, Stevens operated individually under the name of A. J. Stevens & Co. in Fort Des Moines. The business consisted of “banking, land agency and of circulating the bills and notes of the Agricultural Bank of Tennessee.” 9 On June I, 1857, he entered into a partnership with James Callanan (pictured on the left) and S. R. Ingham. A number of sources suggest that Callanan and Ingham were involved with the wildcat “scheme” of Stevens. However, testimony in a case decided by the New York Supreme Court (1869) indicated that the “new” firm of A. J. Stevens & Co. (on and after June 1857) had no interest in the Agricultural Bank or the circulation or redemption of its notes.10 Regardless, just two months after its formation, the “new” A. J. Stevens & Co. was dissolved on August 4, 1857 by Callanan & Ingham. Stevens was forced out and his business methods “repudiated.” Callanan went on to become one of the richest men in Iowa, accumulating a $10 million fortune through his finance and real estate dealings. Even though Callanan may not have been involved with the business methods of Stevens, Callanan had his own problems with his business methods. He was generally known to exact the “pound of flesh” whenever possible.11 The ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 80 Iowa Supreme Court, in a land fraud decision against him ten years after his death, had the following less than glowing words for Callanan: “There is testimony tending to show that a deliberate fraud [by Callanan] upon the plaintiff was intended from the beginning … [Callanan’s] contention that, while a moral wrong was committed [!], there was no legal fraud, is not sound, either in law or equity. We can hardly conceive of a more deliberate and reprehensible fraud than was here committed ….”12 (Emphasis added.) Obviously business in frontier Iowa, real estate or otherwise, was not for the timid. You had to be careful in selecting your business associates. Various Stamps Appearing on the Banknotes. After his partnering with Callanan and Ingham, Stevens retained his land agency and his business of circulating the notes of the Agricultural Bank of Tennesseee. These businesses were held by Stevens in what is believed to be the Bank of Iowa, a business he formed sometime in the 1855 to 1857 period. The advertisement on the right appeared in a book published on May 25, 1857.13 Stevens by that time was using “Des Moines” in this 1857 advertising since 1857 was the year in which “Fort Des Moines” changed its name. This fact is reflected on the infamous stamps which were placed by Stevens on the face of the bank notes. These differing stamps reflect not only the change of city name but also the change in the business name used by Stevens at the time of placement of the stamp. Dean Oakes, in his early bible of Iowa Obsolete Notes and Scrip notes this distinction: “Several different stamps were used by Stevens to guarantee notes. A. J. Stevens and Co. Bankers, Fort Des Moines, Iowa is the wording on two different stamps. One oval was used on backs of some notes and one shield shape found stamped [on left] on face of notes. Later shield shaped stamp [on right] reads, Bank of Iowa, A.J. Stevens and Co., Des Moines, Iowa. These stamps were apparently used simultaneously, since the later Des Moines stamp appears on some notes dated earlier than ones that have the older Fort Des Moines stamp.”14(Emphasis added.) The above quoted commentary states that the “different stamps were used by Stevens to guarantee notes.” I have some uncertainty as to that issue. The source of that uncertainty is the Iowa Supreme Court’s reasoning in the 1858 case of Tarbell v. A. J. Stevens & Co. This Iowa Supreme Court case and the previously discussed New York Supreme Court case are the two known cases involving Stevens. The Iowa case was brought by a holder of a number of Agricultural Bank of Tennessee notes which A. J. Stevens & Co. had refused to redeem on presentation in Des Moines after August 8, 1857. (The Panic of 1857 was just beginning. The Agricultural Bank of Tennessee had only $8,500 on hand to cover $58,000 of its notes.15) ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 81 “… defendants prior to the first of June, 1857, [i.e., indicating that this was a suit against the “old” A.J. Stevens & Co. which was solely owned by Stevens] were bankers in Polk county, and in the course of their said business represented themselves to be … personally liable for, certain banknotes … of the Agricultural Bank of Tennessee … which representations they made by their published card, printed in the paper of said county, and by their oft repeated verbal declarations, publicly made….”16 (Emphasis added.) The court provides no statement of facts or other mention of any stamp on the notes to support the Court’s conclusion that “by reason of these representations said bank notes obtained credit, and were received and paid by parties in business transactions in said [Polk] county as current funds; that relying upon such representations, the petitioner was induced to accept said notes as money ….”17 [A. J. Stevens & Co.] advertised to redeem said notes in currency at their counter in Polk county…. Thus, by their representations of liability, and their proposing to redeem at their counter, they gave credit and currency to the bank bills, and caused them to be accepted as paper money of value….” The “representations” for which the Court held A. J. Stevens & Co. liable were “published card, printed in the [news]paper of [Polk] county, and by their oft repeated verbal declarations, publicly made ….” No reference is made to any stamp of guarantee on the notes. It seems strange for the Court to have made no reference to the obvious stamp of A. J. Stevens & Co. on the face of the notes (and place no reliance on that stamp of guarantee), when the subject of the lawsuit was the guarantee. If the stamp was on the notes, the Supreme Court of Iowa and the lower court apparently found it of little relevance. This may explain why the earlier (Fort Des Moines) and later (Des Moines) stamps appear on notes without regard to the date of the notes’ issuance. The stamp may not have been applied until redemption occurred, a sort of cancellation stamp. Also, nothing on either stamp says anything about any guarantee of payment. For comparison, take a look at the following Iowa related 1858 bank note of the State of Indiana Commercial Exchange Bank. (It also has a great looking locomotive vignette.) It is an Iowa related note because of the vertical stamp appearing on the left half of the note which reads: “Guaranteed and Redeemed at Keokuk, Iowa, by the Keokuk Exchange Bank.” ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 82 This is an obvious declaration of liability by the bank clearly and boldly stated by the language of the stamp. The A. J. Stevens & Co. stamp falls far short of this. One final comment about stamps on the note: Occasionally Agricultural Bank of Tennessee notes can be found which bear the blue oval stamp consisting of the words “Davisson, McCall & Co. – Bank of Commerce – Chicago.” (See stamp on left from Heritage Auction note.) Like A. J. Stevens & Co., Davisson McCall & Co. was a private bank.18 The stamps are somewhat similar in content. Neither stamp contains any words of guarantee. To my knowledge, Davisson, McCall & Co. was never held to any liability on the note because of the stamp. Thus the A. J. Stevens & Co. guarantee seems to have been based entirely on local newspaper ads and verbal public declarations made in the community, not on the stamp. The Panic of 1857 exposed the glaring weakness of Stevens and the Agricultural Bank of Tennessee (as well as the weakness of hundreds of other banks) ‐ ‐ too much business on too little capital. Stephens lost everything in the collapse. He had been forced out of his partnership with Callanan and Ingham and saw the doors close on the Agricultural Bank of Tennessee and his own “Bank of Iowa” business. An August 15, 1857 letter from a lawyer in Omaha to his business partner on the east coast discusses the plight of Stevens: “A. J. Stevens ‘has bust’ higher than a kite and the excitement at Des Moines is great. His liabilities are very heavy and as young and shrewd as he is, he will never get over it. There is a panic at the Fort [Des Moines] but it is no index of the times. Omaha is all right. Stevens was spirited away from the Fort in the night and it was feared he would take ‘cold pison [sic]’ to assuage his woes. … I don’t allow myself to get the blues, but there are times when one could do so without much exertion.”19 The Life of A. J. Stevens After the Panic of 1857. Stevens however was a man who did not stay down for long. He was a man of eclectic interests. Prior to his financial fall he “sponsored an exploring expedition by two Iowa scientists to the then remote country of Ecuador.”20 The purpose of the expedition was to gather specimens for the establishment of a museum in Des Moines, a rather unusual undertaking from a town just emerging from the frontier. However, his fall from grace forced him to concentrate on journalism and publishing, activities he had been involved with throughout his career. He had been active in politics and was an Iowa delegate to the 1856 Republican National Convention, and primarily confined his journalistic efforts to political related publishing. Even that became a failure for him: “… and three years later [in 1860] he re‐appeared on the surface of society in Des Moines as chief editor of the Commonwealth, a weekly sheet, which,… was started in the interest of the Young Men’s Republican Party. It was a political fantasy which induced him to take hold of such a publication, and of course the enterprise was a failure. As a writer, he was tame and pointless, always pulling away at some dismal abstraction, or precipitating some Utopian scheme on his astonished fellow citizens.”21 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 83 The financial embarrassment caused him to seek a political appointment as a reward for his political activities. He called on his former mentor W. H. Seward, who was then a member of Lincoln’s cabinet. U.S. Senator Seward had been a front runner for the 1860 Presidential nomination on the first ballot at the convention. However, he lost out on a subsequent ballot to Abraham Lincoln. After he won the national election, Lincoln appointed Seward as his Secretary of State. As a long time supporter of Seward, Stevens called on Seward for an appointment in 1861. Stevens made repeated requests to Seward and solicited the help of several well connected friends, including James W. Grimes, former Governor of Iowa and then U. S. Senator (photo on right).22 With the help of Senator Grimes, his solicitations to his old teacher finally paid off when Lincoln appointed him in late 1861 as United States’ Consul to Leghorn (Livorno) Italy. He subsequently requested and was transferred to a similar post in Windsor, Canada in 1865. He next shows up in 1868 in Columbus, Nebraska. He had returned to his old profession, advertising as “Banker and Land Agent.” He developed housing additions in Columbus and sold soldier homesteads.23 The 1870 U.S. Census lists him as residing in Columbus, Nebraska, with his wife and six year old daughter. His occupation was “Real Estate Agent”. The value of his real estate was listed at $5,000. He appeared to be back on his feet again in 1870 when he “offered 400,000 acres of choice land in the Platte Valley ‘at prices within reach of all, and on terms to suit every variety of purchaser.”24 He still had not given up on seeking U.S. land patents. In the late 1880s he obtained two U.S. land patents in Nebraska totaling 320 acres. But while a former employee and a former business partner (David Moffat and James Callanan respectively) were obtaining incredible wealth in real estate and finance, Stevens was to have none. Something happened to him in Columbus which seems to have escaped description, other than a passing reference in 1888 in the local Columbus newspaper which described Stevens as “our former very enterprising but unfortunate townsman.” Apparently sometime after 1872, after the unnamed “unfortunate” incident, he moved west to Spokane, Washington. Little is known after this move. The trail finally ends with his obituary found in the Columbus, Nebraska newspaper of August 10, 1898: “Andrew J. Stevens, a former resident of this city, died June 16 at a Spokane hospital, after a lingering illness …. He came to this city from Des Moines, Iowa, where he had been at one time a wealthy business man. He laid out Stevens addition to the city …. Besides the real estate business, he endeavored to make a living in the banking business, as agent for an Omaha bank. He left this country, we believe in 1872, and nothing definite has been known here of his whereabouts…. He was elected county superintendent of schools of Spokane county in 1880. … The last few years had resulted in considerable suffering on account of poverty and illness. Mr. Stevens had many good qualities, and will be long remembered by older readers … who had business transactions with him.”25 A relatively recent article continues with positive comments regarding Stevens: “As a lawyer, teacher, banker, politician and speculator, Andrew Jackson Stevens played an important if not crucial part in the early development of Des Moines and ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 84 Iowa. Yet, he has been largely forgotten, remembered for the most part only as a less than respectable banker and speculator.26 The career of A. J. Stevens made a full circle. He began as an educator (school teacher) and ended his working career as an educator (school superintendent). He achieved great paper wealth as a young man yet died in poverty. But sandwiched in between those years was one wild ride: teacher, lawyer, speculator, land agent, banker, journalist, diplomat, land developer and sponsor of a scientific expedition. Which brings us back to the original question: Unlucky saint or deliberate sinner? Was Stevens a man who facilitated an emerging frontier economy or a huckster? As is often the case, probably a little bit of both. 1 Eriikson, Erling A.,  Banking in Frontier Iowa 1836‐1865.  The Iowa State University Press, Ames, 1971, p.81.  2 Preston, Howard, History of Banking in Iowa. Iowa City Iowa, 1922, p. 59.  3 Merritt, M. A., The Early History of Banking in Iowa The University Press,  Iowa City Iowa, 1900, p.137‐138.  4 Unfortunately, in my research, I was unable to find any photo or depiction of Andrew Jackson Stevens, a/k/a A. J.  Stevens.  5 Dixon, J. M. Centennial History of Polk County, Iowa.  Des Moines: State Register 1876, p. 274.  6 Preston, at p 59.  7 Preston, at p.55.  8 Andrews, L. F., Pioneers of Polk County  Vol. I  Des Moines, Baker‐Trisler Company, 1908, p.254.  9 James Callanan, Jr., and Schuyler R. Ingham v. Jasper T. Van Vleck, et.al., Supreme Court of the State of New York  (1869).  10 Ibid.  11 Andrews, at 253.  12 Mullen v. Callanan, Iowa Supreme Court, November 1914. 13 Turrill, H. B., History of Des Moines.  State Historical Society of Iowa, 1857, p. 123.  14 Oakes, Dean G., Iowa Obsolete Notes and Scrip, Society of Paper Money Collectors, Inc. (1982).  15 Riismandel, John N.  “Andrew Jackson Stevens and the Iowa Exploring Expedition to Ecuador.”  The Annals of  Iowa 42 (1975), 642.  16 Tarbell v. A .J. Stevens & Co., Sup. Ct. of Iowa, December Term, 1858, at p.164.  17 Tarbell, at p. 164 and p. 166.  18  "History of Chicago Historical and Commercial Statistics, Sketches, Facts and Figures,” republished from the  Daily Democratic Press. What I Remember of Early Chicago, a lecture, delivered in McCormick's Hall, January 23,  1876, Chicago Tribune, January 24th, 1876.  19 “Letter from John McConihe to John Kellogg, August 15, 1857.”  Archives and Special Collections, University of  Nebraska‐Lincoln Libraries, John McConihe Correspondence.  McConihe was a Brevet Brigadier General during the  Civil War. In the army under command of General Grant, he lost his life when shot through the heart in the Battle  of Cold Harbor, Virginia, in June of 1864.  20 Riismandel, at 639.  21 Dixon, J.M.,  The Valley and the Shadow: Iowa Journalism, New York: Russell Bros. Publishers 1868, p. 57.  22 Riismandel, at 643.  23 The Columbus Journal (Columbus, Nebraska), May 13, 1908; The Cultivator and Country Gentleman, Albany, N.Y.,  February 9, 1871, p. 81.  24 Althearn, Robert G., Union Pacific, University of Nebraska Press, 1971. P. 157.  25 The Columbus Journal (Columbus, Nebraska), August 10, 1888.  26 Riismandel, at 647.  ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 85 Central States Numismatic Society 77th Anniversary Convention Visit our website: www.centralstates.info Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive Call (847) 303-4100 Mention “Central States Numismatics 2016” for our $155 Rate Free Hotel Guest and Visitor Parking. • Free Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois Bourse Information: Patricia Foley (414) 698-6498 foleylawoffi ce@gmail.com Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center April 27-30, 2016 (Early Bird Day – April 27 – 12 noon-6pm $100 Registration Fee)  Educational Forum  Educational Exhibits  300 Booth Bourse Area  Heritage Coin Signature Sale  Heritage Currency Signature Sale  Educational Programs  Club and Society Meetings  Free Hotel Guest and Visitor Parking A W elco ming Con vent ion.. ... In Memoriam Diana Elizabeth Herzog June 23, 1939-January 13, 2016 It is with condolences to the family that we report the passing of Diana Herzog. Diana, along with her husband John have been stalwarts of the paper money hobby and friends to all and were the recipients of the SPMC’s Nathan Gold award in June 2009. Diana started her career in collectible financial documents at R.M. Smythe & Co., first researching obsolete and inactive securities and then branching out into the field of autographs as the firm expanded into a leading auction house. Diana was a formidable business woman, securing important consignments and putting collectors together with the items they sought. Diana personally assembled autographs of British royalty, writers and poets, acquiring the nickname “Lady Di.” The family requests that gifts of memorial be made to Trinity Church, Southport, CT ~ or ~ Pequot Library, Southport CT. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 87 The Paper Column Act of June 8, 1872 $5,000 and $10,000 Certificates of Deposit by Jamie Yakes and Peter Huntoon Figure 1. Specimen of a $5,000 Series of 1875 certificate of deposit with Allison-Gilfillan Treasury signatures. Notice that it was payable in United States notes. During 1877-8 when these signatures were current United States notes were selling at a small discount against gold because the Treasury had not resumed species payment yet. Photo from Secretary of the Treasury John Sherman’s specimen book, National Numismatic Collection, Smithsonian Institution. National banks had to carry cash reserves in order to have money on hand to allow depositors to draw funds from their accounts and to allow the bankers to redeem their national bank notes presented over their counters. The foundation upon which the national bank currency system rested was United States Notes. The National Bank Acts of 1863 and 1864 did not confer legal tender status on national bank notes but it did provide that they were redeemable in lawful money. During the Civil War lawful money translated into United States Notes because they were the only currency awarded legal tender status by Congress. Consequently the bankers were required to carry United States Notes as their cash reserves. The National Bank Act specified minimum cash reserves, amounts that were dependent upon the locations of the banks. Country banks “shall at all times have on hand, in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate amount of its notes in circulation, and of its deposits.” The banks in designated cities had to maintain cash reserves of 25 percent, because those banks served as depositories for part of the cash reserves that were required of the country banks. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 88 Huge numbers of legal tender notes were thus squirreled away by national bankers to meet these requirements, and the notes sat around in the banks as dead cash. Typically the bankers were carrying small denomination notes so they were burdened with counting large numbers of them over and over in the routine course of business. An amendment to the National Bank Act passed June 8, 1872 offered significant relief as follows: That the Secretary of the Treasury is hereby authorized to receive United States notes on deposit, without interest, from national banking associations, in sums not less than ten thousand dollars, and to issue certificates therefor in such form as the Secretary may prescribe, in denominations of not less than five thousand dollars; which certificate shall be payable on demand in United States notes, at the place where the deposits were made. That the United States notes so deposited in the Treasury of the United States shall not be counted as part of the legal reserve; but the certificates issued therefor may be held and counted by national banks as part of their legal reserve, and may be accepted in the settlement of clearing-house balances at the places were the deposits therefor were made. Figure 2. Specimen of a $10,000 Series of 1875 certificate of deposit with Allison-Wyman Treasury signatures of 1876-7 vintage. Photo from Secretary of the Treasury John Sherman’s specimen book, National Numismatic Collection, Smithsonian Institution. The bankers could now rid themselves of their small denomination legal tender notes and instead utilize convenient high-value certificates that were easy to handle and count. The certificates, of course, could be deposited with their big city correspondents where part of their reserves was held. A correspondent bank could use the certificates to transfer the bulk of obligations on the behalf of the country bankers when there was large net out- or inflows of money resulting from the clearance of checks drawn on or deposited into accounts in their banks. The certificates also allowed their correspondents to avoid handling large numbers of small denomination legal tender notes in those settlements. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 89 Implementation of these provisions led to the creation of uniface currency-like non-interest bearing certificates of deposit in $5,000 and $10,000 denominations. They were labeled “Certificate of Deposit United States Notes.” They carried this obligation: “It is hereby certified that ten thousand dollars have been deposited with the Assistant Treasurer of the United States payable in United States Notes on demand at his office to or order.” They were countersigned in hand by an assistant Treasurer. Figure 3. Proof of a $10,000 Series of 1875 certificate of deposit with Rosecrans-Jordan signatures. Contrast the green tombstones and bold 10,000, which were applied as a tint, to the earlier variety illustrated on Figure 2. Photo courtesy of the National Numismatic Collection, Smithsonian Institution. The notes did not circulate outside banks, but they could move between banks. They were the legal equivalent of legal tender notes so they represented money and were treated as money by bankers. Congress did not confer legal tender status upon them, but because they were convertible into legal tender notes they moved freely without discount within the banking system as did cash. The interchangeability feature was similar to that between national bank notes and legal tender notes. A surprising number of proofs and specimens of these certificates reside in the Smithsonian Division of Numismatics, most being certified proofs transferred to the division as part of the Bureau of Engraving and Printing certified proof accession. All of them are listed on Table 1. The Treasury seals and tints are printed on some of the proofs and specimens so we can see what the issued certificates looked like. The earliest of the certificates did not carry a series date, but instead displayed only the authorizing Act date of June 8, 1872. All were hand signed by an assistant Treasurer. The earliest surviving proof, a $5,000, didn’t carry Treasury signatures, but instead had blanks for the Register and Treasurer, which would have been Allison and Spinner. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 90 10,000  1875  Napier‐McClung  A‐B‐C  19__  1536  Aug 28, 1911  Table 1.  Chronological order of the proofs and specimens for the Act of June 8, 1872 Certificates of Deposit in the  National Numismatic Collection, Smithsonian Institution.  Denom Series Treasury Signatures Position  Letters Date Plate  Number Certification  Date Tombstones  for Serials Central  Counter Treasury  Seal 5,000 none blanks for signatures A‐B‐C 187_ black none green 5,000 none Allison‐New A‐B‐C 187_ black none green 10,000 1875 Allison‐New A‐B‐C 187_ black none green 5,000 none Allison‐Wyman A‐B‐C 187_ black none green 5,000 1875 Allison‐Gilfillan A‐B‐C 187_ black none green 10,000 1875 Rosecrans‐Jordan A‐B‐C 18   15361 Apr 22, 1886 green green brown 5,000 1875 Rosecrans‐Jordan A‐B‐C 18 1879 green green brown 10,000 1875 Rosecrans‐Hyatt A‐B‐C 18   15361 green green brown 10,000 1875 Rosecrans‐Huston A‐B‐C 18 1536 May 15, 1890 green green brown 10,000 1875 Rosecrans‐Nebeker A‐B‐C 189_ 1536 Aug 18, 1891 green green brown 10,000 1875 Tillman‐Morgan A‐B‐C 189_ 1536 Nov 24, 1893 green green brown 10,000 1875 Tillman‐Roberts A‐B‐C 189_ 1536 Aug 28, 1897 green green brown 10,000 1875 Lyons‐Roberts A‐B‐C 189_ 1536 Mar 27, 1899 green green brown 5,000 1875 Napier‐McClung A‐B‐C 19 1879 Aug 28, 1911 1. The plate number was added to the bottom margin of the plate when it was altered to carry Rosecrans‐Huston signatures.  Treasury signatures were added to the plates in short order for the Allison-New combination. Series of 1875 was added to the subjects on the $10,000 plate then as well, but not to the $5,000 plate. Use of Series of 1875 on the $5,000 plate didn’t occur until the Allison-Gifillan combination came along. The design on the early plates incorporated intaglio tombstones for the serial numbers. The tombstones were omitted from redesigned plates made with Rosecrans-Jordan signatures. From then on the tombstones and new bold counters that appeared below the seals were printed in green ink from intaglio tint plates. The serial numbers were printed using dark blue ink. The first of the redesigned plates was the $10,000, which was assigned plate number 1536 that arrived on April 7, 1886. The $10,000 tint plate, numbered 1543, came along five days later. The redesigned $5,000 face and tint plates became available at the end of the year, respectively as plates 1879 on November 29th and 1889 on December 3rd. The face designs on all the certificates incorporated partial dates that had to be completed by hand. Those dates periodically were updated as per the listings in the “Date” column on Table 1. It is clear from the multiple listings for $10,000 plate 1536 and $5,000 plate 1879 that they were repeatedly altered to incorporate revised partial dates and new Treasury signatures. Legal tender notes became convertible into gold at the Treasury when species payments were resumed in 1879 so the Treasury certificates also were convertible into gold after 1879. This is a technical detail, but it was real and heralds the next act in this play. The Gold Standard Act of March 14, 1900, which put the country on the gold standard, specifically repealed the Act of 1872 thus rendering the certificates of deposit obsolete. Furthermore section 6 of the 1900 act allowed bankers to use gold certificates for their reserves as follows; Said [gold] certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued; and such certificates, as also silver certificates, when held by any national banking association, shall be counted as part of its lawful reserve. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 91 Section 6 then went on to provide for the replacement of the certificates of deposit with $10,000 gold certificates. That the Secretary of the Treasury may, in his discretion, issue such certificates in denominations of ten thousand dollars, payable to order. Figure 4. $10,000 Series of 1900 gold certificate with Napier-McClung Treasury signatures payable to The Bank of North American, Philadelphia, dated September 14, 1912, which was made payable through the Philadelphia Clearing House Association to the credit of The Franklin National Bank, Philadelphia, and canceled September 23, 1912. Photo courtesy of Carlson Chambliss. This provision authorized the Series of 1900 uniface check-like $10,000 gold certificates that are so avidly collected. They are available thanks to the December 13, 1935 fire at what is now known as the Old Post Office in Washington, DC, where the canceled notes were in storage. Crates of them were thrown out the window onto the street below in order to deprive the fire of fuel. Onlookers ran off with handfuls of the certificates. A primary early use made of the Series of 1900 $10,000 gold certificates appears to have been for national bank reserves identical to the Act of 1872 certificates of deposit. Many of the earliest reported specimens are payable to national banks. Endorsements on their backs reveal that they were used in clearing house settlements in favor of other national banks. Later, after passage of the Federal Reserve Act of 1913, the Series of 1900 $10,000s dominantly were used by Federal Reserve Banks to settle gold transactions. The active life of the Act of 1872 certificates was 1872 to 1900. The $10,000 certificates proved to be the most popular from the outset. The 1900 annual report of the Secretary of the Treasury reveals that 21,187 $5,000s and 136,769 $10,000s had been issued totaling $1,473,625,000 (Gage, 1900, p. 90-92). Of that $3,705,000 was still outstanding, a total that included seven $5,000s and 367 $10,000s. Unissued remainders totaling 2,815 $5,000s and 7,481 $10,000s were destroyed (Gage, 1900, p. 17). It appears from these data that a total of 24,002 $5,000s and 144,250 $10,000s had been printed spanning all the possible Treasury signature combinations. The extra two $5,000s represents some accounting mistake because the certificates were printed in sheets of three. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 92 The Napier-McClung proofs listed on Table 1 that were certified in 1911 are a paradox. The 1900 Gold Standard Act had repealed the 1872 legislation that authorized the certificates so why were the plates altered to carry Napier-McClung signatures of 1911-1912 vintage? What happened was that those plates were still in the active BEP plate inventory at the outset of the Napier-McClung era, so the signatures were updated as a routine matter by their handlers without realizing that the plates should have been canceled years before. Figure 5. Curiously the $5,000 and $10,000 Series of 1875 certificate of deposit plates were altered to carry Napier-McClung signatures of 1911-1912 vintage long after the 1900 Gold Standard Act repealed authorization for their use. Photo courtesy of the National Numismatic Collection, Smithsonian Institution. The portraits on the $5,000 and $10,000 certificates are respectively Edward D. Baker and Stephen A. Douglas, both engraved by Charles Burt according to Hessler (1988, p. 324-325). The following bibliographic profiles are from Wikipedia. Edward Dickinson Baker (February 24, 1811 B October 21, 1861) was an English-born American politician, lawyer and military leader. He served as Whig Congressman from Illinois and later as Republican Senator from Oregon. A long-time close friend of President Lincoln, Baker served as U.S. Army colonel during both the Mexican-American War and the Civil War. He was killed in the Battle of Ball's Bluff while leading a Union Army brigade assigned to guard river crossings along the Potomac River north of Washington and thereby became the only sitting senator to be killed in the Civil War. Democrat Stephen Arnold Douglas (April 23, 1813 B June 3, 1861) was first a Congressman then later a Senator from Illinois and party nominee for president against Lincoln in the 1860 election. He was the architect of the KansasBNebraska Act of 1854 that embodied the concept of popular sovereignty, which left it to the residents of the respective territories to decide the contentious issue of slavery within their borders. Douglas had defeated Lincoln in their 1858 Senate contest made famous by the Lincoln-Douglas debates where on the issue of slavery Douglas argued that democracy should prevail in the form of the will of the people. When civil war came in April 1861, he rallied his supporters to the Union cause but died of typhoid fever a few weeks later. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 93 Figure 6. Edward Dickinson Baker, the only U. S. Senator killed in the Civil War. Wikipedia photo. The earliest numismatic mention of the Act of 1872 certificates of deposit of which we are aware are listings in George H. Blakes’ (1908, p. 31) pioneering listing of U. S. coins and paper money. They also appear in Limpert’s (1948, p. 79) catalog of large size notes, which was compiled with the assistance of Blake and Paul Draper, secretary to Albert Grinnell. Hessler (1988, p. 232-234) illustrates the certificates, wherein his $5000 is a Rosecrans-Jordan remainder with serial number B12973, attributed to the Bureau of Engraving and Printing. Both Blake and Hessler quote the enabling legislation that authorized the certificates. The Act of 1872 certificates of deposit appear to be uncollectible. All would have been redeemed and canceled. None of them went out the window during the old post office fire, if they even existed then. Specimens in private hands are unknown to our knowledge. We consider the use of the Act of 1872 certificates of deposit to represent important chapters in the stories of national banking and our evolving understanding of the use of government-issued ultra-high denomination $5,000 and $10,000 notes. When they were in use, those amounts of money represented significant purchasing power. Many laborers earned a few dollars per day then and were very happy to find steady employment at that rate. A postscript to this story is the fact that there are more surviving early higher denomination $50, $100 and $500 legal tender notes than the same denominations in any other class of currency. The reason for this is that the vast majority of national bankers used actual legal tender notes for their cash reserves so they were preserved for decades, often in nice condition save for repeated counting marks. References Cited Figure 7. Stephen A Douglas, in an 1859 photo by Julian Vannerson, lost the 1858 election to President Abraham Lincoln in an 1860. Library of Congress photo Blake, George Herbert, 1908, United States paper money; a reference list of paper money including fractional currency issued since 1861, also a list of United States coins issued by the U. S. mints since their organization: Privately Published, 69 p. Gage, L. J., 1900, Annual Report of the Secretary of the Treasury on the State of the Finances for the fiscal year ended June 30, 1900: Government Printing Office, Washington, DC, 683 p. Hessler, Gene, 1988, An illustrated history of U. S. loans 1775-1898: BNR Press, Port Clinton, OH, 378 p. Limpert, Frank Alvin, 1948, United States paper money old series 1861-1923 inclusive, 2nd edition: Privately printed, 100 p. plus addenda. United States Statutes, Act of June 8, 1872, An act for the better security of bank reserves, and to facilitate bank clearing house exchanges; and, Act of March 14, 1900, An act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes: Government Printing Office, Washington, DC. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 94 10 YEARS. 1 MILLION NOTES. PMG was founded in 2005 with a commitment to accuracy, consistency and integrity. It is the first third-party paper money grading service to certify 1 million notes — an important milestone that reflects PMG’s impact on the hobby around the world. To learn why more collectors and dealers choose PMG, visit PMGnotes.com PMGnotes.com | 877-PMG-5570 United States | Switzerland | Germany | Hong Kong | China | South Korea | Singapore | Taiwan | Japan 15-CCGPA-2415_PMG_Ad_TenthAnniversary_PaperMoneyMag_NovDec2015.indd 1 10/6/15 10:04 AM Spectacular Misaligned Overprint by Peter Huntoon You will be hard pressed to find a note with a greater misaligned overprint than on this beauty owned by error aficionado Bob Liddell. This Series of 1974 $1 from the Cleveland Federal Reserve Bank has parts of four different serials; specifically, D33571544A (F2), D33591544A (G2), D33811544A (B4) and D33831544A (C4). The letter-number pairs in parenthesis are the correct plate position letters for the serials. The serial number that should have appeared on this note is D33831544A (C4). The sheet had been rotated clockwise, upward and to the left at the time the overprint was applied. Subsequently it was correctly realigned and the notes were normally separated from it. Visit the SPMC Website for all kinds of information, show schedule, SPMC happenings, pay your dues, etc. www.spmc.org ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 96 Stolen Loot: Robbery of the Osage National Bank by James C. Ehrhardt First Charter notes from the Osage National Bank of Osage, Iowa, charter #1618, have long been intriguing. Many people know that there an unusual story to the $5 Original Series notes from this bank but are not sure of the details. The notes are usually tattered and torn, with conditions ranging from good to fair. The notes in my collection are no better, but nonetheless are some of my favorites. As I was researching the history of the seemingly prosaic 1866 bank robbery in the village of Osage, I discovered a deeper, darker tale with criminal connections to much of the northeastern United States. Osage, Iowa Osage is located in Mitchell County near the Cedar River in north central Iowa amid rolling hills and rich, fertile farmland. The first white family had settled there in 1853. By the summer of 1865, the county had grown to a population of 4,176, and Osage was a town of 889 citizens who were feeling optimistic about the future. The Civil War had finally ended. There was excitement about a railroad coming to town (which wouldn't happen for four more years). But because it was distant from any large commercial center, it still had somewhat of a frontier feel to it. Four years earlier the Dakota Sioux Uprising had killed 400 to 800 settlers in Minnesota a little over 130 miles northwest of Osage. The local newspaper reported the rare crimes, such as a horse stealing or a stagecoach holdup, that might be expected in a somewhat isolated community. A community needs a sound bank if it is to thrive, and enterprising citizens will step in to fill the gap. Jacob H. Brush was born in Westchester County, New York, in 1833. He received a good education and then decided his future lay in the west. In 1855 he arrived at Dubuque, Iowa, where the federal land office was located. Whenever new lands were opened for settlement, buying and selling real estate became a major economic activity. Brush was sufficiently astute to recognize the opportunity, and he and a partner established the banking institution of Brush and Meeker. After a few months a land office opened in Decorah, Iowa, and the firm was moved there to operate a bank and real estate business. Mr. Brush bought out his partner's interest, and the next year his firm moved west to Osage as the land office moved there to service new settlers in that region. Brush did business with his brothers as J. H. Brush & Co., otherwise known as the Mitchell County Bank. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 97 By late 1865, Brush and other leading citizens decided that Osage was ready for that prestigious new institution, a national bank. The Osage National Bank was chartered in December 1865 and assigned charter number 1618. As its principal financial backer, Arad Hitchcock was designated President. The daily operations were to be run by the experienced Jacob H. Brush, Cashier. Jacob's brother, Jesse P. Brush, was Assistant Cashier. Additional Directors were Cyrus Foreman, N. C. Deering, Edwin O. Hitchcock, and Gulbrand Gulbrandson. Arad Hitchcock was born in Westfield, Vermont. He lived in various locations, always moving west. Eventually he became one of the early settlers in Osage, buying property there in 1855. His abilities were soon recognized, and he won 1857 election as county judge. At the time, this office was the most powerful in the county, being the equivalent of today's county Board of Supervisors. He was a successful farmer and merchant. He was said to have been the first grain dealer in Osage, was appointed postmaster in 1860, and operated such businesses as a warehouse, a stable and the Hitchcock House hotel. He was elected a state senator in 1875, but died shortly after. Osage National Bank A new bank needs an office that will inspire the public with confidence. Fortunately, a near-perfect location was readily available. While mulling plans for a new building, Brush and Hitchcock arranged for the bank to occupy the Treasurer's office in the county courthouse building. The office had an adjoining vault with walls 2 ½ feet thick to store the bank's valuables. The vault was protected by a “massive wrought iron door having a powder-proof combination lock.” Inside the vault was Lillie's Patent chilled iron safe. The bank's officers felt so confident in their new location that they did not have anyone sleeping in the bank. Why was an important space in the courthouse available? As frequently happened when new areas were opened for settlement, there was a protracted electoral and legal battle for the site of the Mitchell county seat between Osage and the town of Mitchell some four miles away. Osage had built their courthouse in 1858 and Mitchell did the same two years later. The contest wasn't permanently settled in Osage's favor until 1870. Before then, the county business was conducted in Mitchell, and the Osage courthouse had to find other uses. The Cedar Valley Seminary occupied much, but not all, of the courthouse in the 1860s. This institution was not religious. It offered young men and women of the area an opportunity for higher education beyond the eighth grade and became an important part of the community for over fifty years. When I visited the courthouse for research a few years ago, it was still functioning as a courthouse and looked much the same as in the circa 1900 photograph herein. The Treasurer's office was in the room behind the window to the left of the door. The Treasurer's vault is partially visible behind the tree on the left. Also pictured is an impressive old-style vault door as seen in the Treasurer's office in 2009. Unfortunately progress has taken its toll, and the building was torn down in 2014. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 98 Less than two months after receiving its charter, the bank opened for business. A local news report on Feb.1, 1866 stated “Mr. Brush returned from the east last week, and although not able to get the bills of our Bank so as to bring them with him, still made arrangements by which they will be here soon! The Bank commenced business on Feb. 1st and is now doing everything except discounting paper.” The Department of the Treasury was functioning efficiently, and two weeks later the newspaper provided more good news. “The first installment of $10,000 of the notes of this institution arrived the present week, have been signed by the officers and are many of them in circulation. The second batch of a like amount is on the way. We must congratulate the president A. Hitchcock Esq. on his sign manuel, attached to these notes. Every signature is unmistakably 'Arad Hitchcock' and not the abbreviation or hieroglyphics which usually represent his name.” The bank was undoubtedly pleased with the publicity. Little did they realize that some readers were interested in the news for another reason. The Robbery Sunday morning, May 6, 1866, Assistant Cashier J. P. Brush had occasion to go to the bank. He found the outside door pried open, the vault door broken into, and “the safe blown to pieces with powder.” The thieves had drilled a quarter-inch hole through 1 ½ inches of chilled iron about three inches from the safe keyhole and into the cavity of the lock, which they filled with powder. The explosion blew the door off its hinges exposing the safe's contents. The thieves extracted the valuables and made their getaway. Left behind were a drill, a “jimmy” (a short bar of steel sharpened at both ends), a dirty handkerchief, and a japanned top to a powder can. This method of attack was a common modus operandi for experienced safe crackers. Remarkably, there was one person who had been aware of the activities in the bank. On the second floor at the opposite corner of the courthouse, one room was occupied by Mr. C. P. Sanford, perhaps an employee of the Cedar Valley Seminary. Mr. Sanford reported that he had heard the front door and vault doors being forced and then the explosion. Unfortunately, he thought that these noises were due some “more than ordinarily mischievous pranks of some lively young fellows,” who occupied other rooms in the building. The Loot Cashier Brush had had foresight to record the serial numbers of many of the notes in the safe. These were published immediately after the theft. Stolen items included: $9,000 in nationals of the bank, unsigned, in 5-5-5-5 sheets numbered 1751-2200 $3,200 in 6% compound interest notes, including three $500 notes $1,900 in Legal Tender and National Bank notes 250 revenue stamps Eight 7-30 Interest-Bearing notes, including $1,000 s/n 22282 Aug. 15, 1864 $500 s/n unknown Aug. 15, 1864 $100 s/n 111938 Aug. 15, 1864 $100 s/n 140010 Aug. 15, 1864 $100 s/n 101828 Aug. 15, 1864 $50 s/n 209285 Aug. 15, 1864 $50 s/n 147462 June 15, 1865 $50 s/n 147421 June 15, 1865 Four gold pens ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 99 Cash, 7-30 notes, and Mitchell County Warrants stored in the safe but belonging to bank customers were also stolen. One unlucky customer had arrived in town earlier on Saturday intending to buy property and had entrusted $850 to the security of the bank's safe. Only some of the serial numbers were recorded, including these 7-30 notes: $100 s/n 340058 July 15, 1865 $100 s/n 155059 July 15, 1865 $50 s/n 31394 Aug. 15, 1864 $50 s/n 35394 Aug. 15, 1864 $50 s/n 40794 June 15, 1865 $50 s/n 161715 June 15, 1865 In addition to $9,000 in national bank notes, total losses included about $8,000 in federal currency and compound interest notes and $3,000 in interest-bearing notes. These lists provide a rare insight into the use of compound interest notes and interest-bearing notes at a location far from a commercial center. Also notable is the lack of any gold coins stolen from the safe, symptomatic of the scarcity of specie at the time. The bank offered a reward of $500 for the detection of the robbers and $500 for the recovery of the money. The serial numbers of the stolen notes were quickly circulated throughout the banking system. The $5 nationals were listed in banknote reporters as stolen. The Treasury canceled the remaining unissued Osage notes, i.e. s/n 2201-2250. These would have been the final installment on the bank's initial issuance of $45,000. No additional $5 Original Series notes were issued by the bank. Friedberg no. 212-c Of course, all interest bearing notes are extremely rare, but one of the stolen interest bearing notes is of special interest. The $1,000 bill listed above was dated August 15, 1864. Thus, it would be cataloged as Friedberg no. 212-c. The standard reference work, Paper Money of the United States by Robert Friedberg with Ira and Arthur Friedberg, lists this type as unknown and “Probably issued.” Evidently no one had found evidence previously that this type had actually been issued. Now we have contemporary documentation that it was, in fact, in circulation. And one had found its way to a bank far from the financial centers of the Northeast. The serial number of the above note was 22282, so we know that at least that many notes were issued. At my request, Jamie Yakes very kindly searched the National Archives for information on issued notes this type. He found data on some other interest bearing note types, but nothing on 212-c. Arrests The Sheriff of Mitchell County was Squire S. McKinley. The McKinley family became early pioneers when they arrived in Mitchell County in 1855-56, and the McKinleys are still well represented in Osage. Judge Bryan McKinley recently retired from the judicial bench there. Born in 1840, Squire was of prime age for the war. He was said to have been the first man in the county to volunteer for the 3rd Iowa Infantry Regiment. Starting as a Private, he rose to become a Sergeant as the regiment fought under Generals Sherman and Grant at Shiloh, Vicksburg, and others until the unit fought itself out of existence at Atlanta. He was fortunate to have escaped any battlefield wounds and was elected Sheriff in 1865 by a margin of 27 votes out of 729 votes cast. A newspaper editor hailed his election saying he had “a particular antipathy to horse thieves.” No one came forward with any evidence to help track down the thieves. After a week the Winneshiek County Sheriff from Decorah, about 60 miles east, arrived escorting two suspects who had to be released because they had a good alibi. McKinley had his eye on another pair of doubtful characters who had been residing with their wives in the National Hotel in Mitchell. The previous year a newcomer, Ezra Beebe, had purchased the hotel and apparently had run it as a respectable business. But two of his boarders had no visible means of support. Occasionally they would disappear for a brief period and then return flush with cash. When McKinley talked with Ezra Beebe to try to learn more about his boarders, he was so evasive that the sheriff began to suspect him as well. But without any evidence, the sheriff could only observe matters and hope for a break. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 100 The break came three weeks after the robbery. The stage brought two eastern lawmen to town, a young Deputy Sheriff Asa Stone of Madison County, NY, and Constable James L. Filkins of Waterville, NY. Filkins was clearly the dominant one of the two. He was a short, heavy-set, pock- marked man with sandy hair and a quick temper. He surprised Sheriff McKinley with warrants signed by New York Governor Fenton for the arrest of Ezra Beebe and his two boarders on burglary and murder charges. The boarders had been using aliases. Actually they were Ezra's son, Laverne Beebe, and his son-in-law, Thomas Mott. All three men were well-known members of the infamous Loomis gang that had been terrorizing upstate New York and beyond for decades. McKinley hesitated to arrest them because he had insufficient evidence against them for the bank robbery. However, Filkins prevailed because if the suspects heard he was in town, they would quickly disappear. All three men were arrested. A search of the arrested men, their wives, and their living quarters was conducted. This yielded burglary tools and about $1,500 in a roll of currency (no serial numbers provided). One or two of the bills was said to have been identified by Brush as being stolen. The currency roll had particles of “Plaster Paris” (which was the fire-proofing material in the walls of the safe) scattered in it. Revenue and postage stamps of the number and denomination of those stolen were also recovered. A search of the women's apparel revealed four gold pens concealed in the lining of a hat. Clearly this was loot from the bank. Except for the few $5 nationals in the NBN census, I could find no record of any other loot being recovered. Two and ½ days after the arrest, the robbers were escorted out of town at 1:00 AM and eventually put on a train to New York. Only two of the three got there. Near Erie, PA, Laverne Beebe and Mott tried to escape by jumping out the bathroom window of their railroad car. Beebe made it and was never seen in his favorite haunts again. Mott hit his head on the window sill and was knocked unconscious long enough to be restrained. The Loomis Gang The Loomis gang was the largest, most successful American criminal gang in the 1840s- 60s. I can only mention a few of their activities. The interested reader will find much, much more in books and on the internet. Headquartered on a farm near Sangerfield, NY, their deeds ranged across several states and into Canada. Gang members participated in every type of crime, although horse and other livestock theft and counterfeit money seemed to be most frequent. The Beebes and Mott were established members of the group. Although frequently identified as perpetrators, convictions were very seldom obtained because of their skilled use of every legal and illegal defense tactic. For example, farmers knew their barns would burn down if they gave evidence. Once a county courthouse was set afire to destroy papers. Included in the destruction was an indictment against Ezra Beebe. The gang leader charged Beebe $100 for services rendered. I could find no photographs or portraits of gang members, but the Fenimore Art Museum in Cooperstown, NY, kindly supplied a portrait of a young woman said to be associated with the gang. No one seemed willing or able to pursue the gang members until blacksmith James L. Filkins was elected Constable of nearby North Brookfield. Filkins had an intense dislike for the Loomises and the courage to go after them. Initially he was not successful in getting convictions, but he became more and more of a problem for the gang. One episode may be appropriate here. Filkins heard rumors that there was a large cache of counterfeit money at the Loomis farm, so he organized a posse to go there and search for it. After an unsuccessful search, the matriarch of the gang offered the posse some beer. A small keg was retrieved from the basement ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 101 and served out. While enjoying the repast, one of the posse noticed something odd about the keg. It was examined and found to have a false bottom concealing the counterfeits. The keg and others like it in the basement contained $1,100 in phony money. Filkins campaign against the gang became more bothersome. One evening in 1863 armed men, thought to include Laverne Beebe and Thomas Mott, came to his house, called out for him, and peppered the house with multiple shotgun blasts. Filkins was wounded but survived. By October 1865 the situation had intensified. Filkins and an informal posse, including army veterans used to taking violent action, formed what might be called a vigilante group to raid the Loomis farm. Washington Loomis, the gang leader, was beaten to death and one of his brothers was very badly beaten. The surviving Loomises brought a murder charge against Filkins. He was indicted, but legal maneuvering delayed the trial. By this time, Ezra Beebe was in the hotel business in Osage, probably hiding out from Filkins' attention. Laverne and Mott followed soon thereafter. In the spring of 1866 Filkins somehow discovered their whereabouts. Two years earlier he had pursued Laverne into Canada, and now he wouldn't let a remote location in Iowa stop him. The first step was to get extradition papers from Governor Fenton. But the Governor was reluctant to give this authority to a man who himself was under indictment for murder. As a compromise, the papers were issued but with Deputy Sheriff Asa Stone (who had been recently appointed by his father, the sheriff) in titular charge of the expedition to Iowa. The very day that Filkins returned to New York with his prisoners, he received word that two gang members had arrived at the Loomis farm with a stolen horse. Filkins immediately organized a posse and went to the farm. Another shootout occurred with Filkins being incapacitated with wounds in the arm and leg. This infuriated the local citizenry, and a week later a mob of more than one hundred, including nearly all the law officers in the area, marched to the Loomis farm. The farm buildings were burned, one Loomis arrested, and the others told that if they were found in the area after thirty days, “they would forfeit their lives.” Although individuals carried on criminal activities for some time afterward, the gang was effectively ended. The Stolen National Bank Notes The robbers were very experienced in dealing with counterfeit currency. The three weeks before their arrest was plenty of time dispose of most of the loot. Forged signatures were added to the unsigned nationals, they were distressed to appear circulated and to disguise the damage done in the explosion of the safe, and then passed to the public. The forged signatures were of varying quality and appear to have been done by more than one individual. I have seen the forged cashier's signature as either Jacob H. Brush or J. H. Brush. Occasional reports in the numismatic literature have indicated that some notes are stamped with X's to indicate their nature. I have seen over half of the existing notes and don't remember seeing one stamped in that way. However, I have seen four notes stamped with multiple S's, presumably standing for “Stolen.” The widespread publicity about the stolen notes led to rapid redemption of legitimate (s/n 1-1750) $5 notes. None are known to have survived. Because the stolen notes were worthless, some of them were saved as curiosities. The Higgins Museum census of Iowa nationals currently records the serial numbers of sixteen stolen notes. Nearly all grade from Poor to Good. The highest grade might be a Very Good. The census contains listings for 46 $5 Original Series notes from all Iowa towns including Osage. So the stolen notes comprise just over one-third of all known Iowa Original Series $5 notes. Genuine (left) and forged signatures of Jacob H. Brush and Arad Hitchcock ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 102 Afterward The Osage National Bank survived the robbery, at least partially because the nationals were not a loss to the bank. Because they had not been signed, the Treasury did not charge them against the bank. The bank advertised in 1868 that it had acquired from Chicago a $700 “first- class burglar-proof safe” of the Herring patent which could not be drilled. Arad Hitchcock left the bank soon after and moved on to other enterprises. Jacob Brush and his family members continued to operate the bank for many years, moving into a new building in 1869. Sheriff Squire McKinley lost his reelection attempt. In 1880 he moved to a pioneer area in northwest Minnesota and helped found the town of Osage, MN. The murder indictment against Fillkins was dismissed during a court hearing in which he was defended by prominent U. S. Senator Roscoe Conkling. The Beebe wives were tried twice as confederates in the robbery. After both trials ended in a hung jury, charges were dropped. They then sued the bank and recovered part of the stolen money confiscated from them. Laverne Beebe fled west to avoid prosecution. He was killed in 1869 by Apaches while acting as an army scout. Ezra Beebe and Thomas Mott were not convicted of Fillkins' charges. Four years later they were back in the Midwest. In 1870 they were captured after robbing a bank in Waseca, MN, about 80 miles northwest of Osage. Mott turned state's evidence against Beebe and was sentenced to time served. Beebe was sentenced to three years in the Minnesota penitentiary. He lived out his later years in California. Before their capture, Beebe and Mott had shipped an express parcel to someone in Osage, IA. The package was intercepted and proved to be a safe-crackers tool kit. This raises suspicions that they still had a confederate in Osage, perhaps the same person who inspired them to hide out there originally. Is it a coincidence that apparently-respectable families named Loomis and Beebe lived in Mitchell County, 1865 population of 4,176? We will never know. I would like to thank the numerous individuals and organizations that assisted me with my research. Especially noteworthy were the State Historical Society of Iowa in Iowa City, the Mitchell County Historical Society, Jamie Yakes, Anne Tanner and Mary Noble for the photos of Arad Hitchcock and Jacob Brush, and Mitchell County Sheriff Curtis Younker for his valuable time in discussing Osage history and an insider's tour of the courthouse. A Partial List of Sources Newspapers: Charles City Intelligencer, Charles City, IA; The North Iowan, Osage, IA; Dubuque Weekly Herald and Dubuque Daily Herald, Dubuque, IA; Mitchell County Press, Mitchell, IA; Otsego Farmer, Cooperstown, NY. The Waterville Times, Waterville, NY; New York Times, NY; Madison Observer, Morrisville, NY; The Sun, New York, NY; Utica Morning Herald & Daily Gazette, Utica, NY History of Mitchell County, Iowa, 1989 History of Mitchell and Worth Counties, Iowa, Clyde & Dwelle, eds., 1918 vol. 1 History of Mitchell and Worth Counties, Iowa, 1884 Iowa State census, 1865 Child's History of Waseca County, Minnesota, 1905 Frontier Justice: The Rise and Fall of the Loomis Gang, E. Fuller Torrey, 1992 Mitchell County and Floyd County courthouse records Paper Money of the United States, by Robert Friedberg with additions and revisions by Ira S. and Arthur L Friedberg, 14th edition. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 103 Laboratory Analysis of Stolen Currency by James C. Ehrhardt, PhD and Craig S. Schwandt, PhD* Improvements in scientific technology and technique have greatly expanded our ability to analyze microscopic samples for their composition, source, and/or age. This has led to various applications, such as the study of chemical impurities, historical artifacts, and crime scene evidence. Although the surface and interior composition of coins has been studied to help determine their history and legitimacy, little similar work has been done on currency. We report here on our laboratory analysis of stolen currency to confirm its well-documented history and to demonstrate the potential for future studies on other currency. An accompanying article in this issue details the 1866 robbery of the Osage National Bank of Osage, IA, charter #1618. In brief, the door of the bank safe was blown off with gunpowder and among the stolen currency were crisp, unsigned, unissued $5 Original Series notes from the bank with serial numbers 1751 through 2200. The thieves forged the bank officers' signatures and distressed the notes before starting to pass them. Sixteen of the stolen notes have survived, mostly in tattered and torn condition. On the note pictured here, the stamped letter “S” is faintly visible in blue ink in several places to indicate its having been stolen. Laboratory Procedure We studied two of the Osage stolen notes, serial numbers 1966 B (pictured here) and 1951 A (pictured in the accompanying article). Both notes had been purchased from prominent numismatic sources. Our goal was to determine whether we could obtain evidence confirming their presence in the explosion of the bank safe. We looked for three different microscopic materials embedded on the surface of the notes. First, gunpowder residue may have survived the explosion. Next, a local newspaper reported that a roll of stolen currency recovered from the thieves was covered with “Plaster Paris.” This white powder was undoubtedly a proprietary fire-proofing material with which manufacturers of bank safes typically lined the safe walls, such as talc, asbestos, or gypsum. Finally, iron fragments would be strong evidence of an explosion. All laboratory work was done in the facilities of McCrone Associates, Westmont, IL. The notes were taken into an ISO Class 5 cleanroom. A preliminary examination with an optical microscope revealed very large numbers of particles adhering to the notes. A non- destructive, mildly adhesive film was used to lift particles from the top border of each note. The particles from the lifts were transferred to polished carbon planchets with a very thin layer of dispersed adhesive. The planchets were inserted into a JEOL variable pressure scanning electron microscope equipped with an Oxford Instruments AZtec energy-dispersive X-ray microanalysis system to examine the composition of a ISO Class 5 cleanroom small percentage of particles for each of the notes. This system produced highly magnified images of the particles as well as X-ray spectra emitted by designated particles. The X-ray spectra allowed us to determine the atomic elements present and their respective proportions. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 104 Scanning electron microscope Results In general, the largest number of particles were carbonaceous compounds, which is not surprising as the bills were heavily soiled. Fibers and skin flakes were also present. Another frequent particle type was various silicate minerals, such as clay, which are common in normal environmental samples. In addition to the common materials listed above, we found some unusual ones. Leading the list were conglomerations of rounded or spheroidal particles of iron oxide, many with traces of silicon and magnesium possibly consistent with a cast iron origin. Some of the iron oxide particles included other trace elements such as aluminum, phosphorus, sulfur, potassium, calcium, and lead. They were five to ten microns (thousandths of a millimeter) in size. The shape of the particles suggests that they were melted in a high temperature event, such as an explosion. The iron may have oxidized (rusted) during the high temperature event or during the last 150 years exposure to environmental oxygen. Iron oxide conglomeration X-ray spectrum of conglomeration Talc-like particles were also found. Talc is a mineral composed of hydrated magnesium silicate that was used as fire- proofing by some manufacturers of nineteenth century safes. Its X-ray spectrum shows prominent peaks due to magnesium, silicon, and oxygen. X-ray spectrum of talc-like particle Particles of mercury and particles of barite (barium sulfate) were also found. The significance of their presence is unknown. No direct evidence of gunpowder residue was found. But trace elements in the particles include sulfur and potassium, primary constituents of gunpowder, and lead, antimony, calcium, and barium which are key parameters of modern gunshot residue analysis. Unfortunately we do not know the exact composition of Civil War era gunpowder. In summary, we have found three separate lines of evidence compatible with an origin in an explosion in a bank safe (iron oxide particles formed in a high temperature event, talc as a fire-proofing agent, and trace elements from gunpowder residue). These findings are somewhat speculative, and none are definitive. And of course we can not know how the notes may have become soiled or contaminated during the last 150 years. But we can say that our results are consistent with the robbery that was so well documented in 1866. We have demonstrated that modern, non-destructive laboratory analysis can provide information about currency not available in any other way. A wide variety of other technological methods are available in addition to those we have used. Perhaps special applications may be found for the study of certain paper, ink, counterfeits, DNA, etc. Researchers need to include these possibilities in their thinking. We would like to thank Patricia M. Anleitner, McCrone Associates Senior Research Scientist, for her valuable assistance with this work. Sources The North Iowan, Osage, IA, May 31, 1866 Treatise on Fire & Theft-proof Depositories and Locks and Keys, George Price, London, 1856 * Senior Research Scientist and Director of Industrial Services, McCrone Associates, Westmont, IL, www.mccrone.com ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 105 THE MARCOS REGIME INITIATED NEW SERIES OF COLORFUL NOTES by Carlson R. Chambliss In the May/June, 2015 issue of Paper Money I published an article on the so‐called “English” series of notes of the Central Bank of the Philippines that were issued between 1951 and 1969. The fractional notes of this series were rendered obsolete when these denominations (5c, 10c, 20c, and 50c) were replaced by new coins that were first minted in 1958, although they were not demonetized until 1970. The notes denominated in pesos included items for 100 P, 200 P, and 500 P, but these high values were removed from circulation in 1957. Thus when Ferdinand Marcos (1917 – 1989) came to power in 1965, the notes in circulation were the “English” notes for 1 P through 50 P that were being printed by TDLR (Thomas De La Rue) in the UK. All of the “English” series notes lost their validity as currency in 1974. The administration of Ferdinand Marcos was by far the longest lived and most autocratic of any presidential regime in the post‐war Philippines, and it endured from 1965 to 1986. It was also by far the most corrupt, and both Marcos himself and also his wife Imelda remain highly controversial figures today. Marcos was from the province of Ilocos Note in northern Luzon, and among Ilocanos he still retains some residual popularity as a “local boy who made good.” Imelda Marcos is still living and, although now in her eighties, continues to play a role in Philippine politics. During the Marcos regime there were four entirely different series of banknotes that were in use. Notes for 1 P, 5 P, 10 P, and 20 P of the “English” series bearing the signature of Marcos were in use up to 1970, and in 1985‐86 at the very end of his regime there were notes for 5 P, 10 P, and 20 P of the so‐called “New Design” series issued that also bore his signature. The vast majority of notes of the latter series, however, were issued by post‐Marcos administrations and production of these notes was finally terminated in 2013 despite the fact that several errors of design have occurred with the recent “New Generation” series of notes that were first issued in 2010. The focus of this article, however, will be on the two series of notes that fall entirely within the Marcos period, i.e., the so‐called “Pilipino” series of 1969‐74 and the “Ang Bagong Lipunan” (The New Society) series of 1974‐85. The former are sometimes referred to as the “Pinoy” notes and the latter as the “ABL” notes, and for convenience I shall occasionally use these terms in this article. All of these notes are identical in size – 160 x 66 mm – and these are the same dimensions that have been used for almost all Filipino notes for many decades. Modern Filipino notes are somewhat unusual in that they bear the signature of the president of the republic along with that of the governor of the central bank. In Pilipino these titles are referred to as Pangulo ng Pilipinas and Tagapangsiwa ng Bangko Sentral, respectively. The Pilipino language is one of several related Indonesian‐type languages spoken in the Philippines and is largely based on the Tagalog language of central Luzon. Both the Pinoy and ABL notes were inscribed exclusively in Pilipino, and that is also true of the “New Design” notes that were introduced in 1985. The governor of the central bank appears to be a non‐political job, and this person is not a member of the presidential cabinet. A total of five different governors served under Marcos. Castillo’s term of office (1961‐67) was very largely prior to that of Marcos, and his signature appears with that of Marcos only on a single issue of 1 P notes of the “English” series. Almost all of the Marcos notes, however, also bear the signatures of A. Calalang (1968‐70), G. Licaros (1970‐81), J. Laya (1981‐84), or J. Fernandez (1984‐90). Fernandez was serving as governor when Marcos left office early in 1986, and his signature is also found paired with that of Corazon Aquino as president. All Filipino notes of this period bear a seal of the central bank that is 19 mm in diameter and is engraved in the intaglio‐printed design of the note. The WPMC catalog distinguishes three different types of these seals – types 2, 3, and 4 – that were in use between 1969 and 1993. All are ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 106 inscribed “Bangko Sentral ng Pilipinas 1949.” There was also a type 1 seal that closely resembles the type 2 seal except that it is inscribed in English. It was used on all of the “English” series peso notes that were printed by TDLR between 1951 and 1966. Actually all of these seals fairly closely resemble each other, but they were products of different printers. Types 1 and 2 are from TDLR (Thomas De La Rue), type 3 from the German firm of Giesecke und Devrient, and type 4 from the Security Printing Branch of the Central Bank in Manila. In earlier editions of the WPMC it was stated that some of the notes of the “ABL” series with type 4 seals were printed by G & D, but in fact all of these items were printed by the central bank in Manila. In Pilipino the name of the currency unit is “piso” rather than peso, and the plural form is the same as is the singular. The serial numbering scheme on the issues of 1969‐85 is the same as that used on the pesos notes of the “English” series of 1951‐66. Each serial number block is one million units, and so there are lots of blocks for all of the more widely used notes. The first 25 million notes of a given types have blocks A through Z, the letter”O” not being used. Then follow AA…AZ, BA…BZ, etc., up through ZA…ZZ for a possible total of 625 million notes plus the original 25 million with blocks A through Z. After 650 million notes have been printed the system repeats itself, but this time with red serial numbers instead of numbers printed in black. For the notes of the 1969‐85 issues red serial numbers are encountered only for the 2 P, 5 P, and 10 P denominations of the ABL series printed in Manila late in the period 1977‐85. Replacement notes are indicated with a serial number preceeded by a Greek‐type cross that resembles a plus sign “+.” The first group of these notes were the “Pilipino” series with white margins at each end. The 1P, 50 P, and 100 P were printed by TDLR and have type 2 seals, while the 5 P, 10 P, and 20 P were printed by G & D (Giesecke und Devrient) and have type 3 seals. The portraits were similar to those on the “English” series but with some “musical chairs” being used; thus Rizal is on the 1 P (instead of 2 P), Bonifacio on the 5 P (instead of 20 P), Mabini on the 10 P (instead of 1 P), Quezon on the 20 P (instead of 200 P), and Roxas on the 100 P (instead of 500 P). The only “new” portrait is that of Sergio Osmena (1878 – 1961), who appears on the 50 P note. The back designs are also similar with the Filipino declaration of independence at Cavite in 1898 on the 1 P, a blood compact at a Katipunan meeting on the 5 P, Barasoin Church on the 10 P, Malacanang Palace on the 20 P, the Legislative Palace on the 50 P, and the old Central Bank building on the 100 P. The dominant colors are dark blue, green, brown, brown‐orange, red, and violet on the 1 P, 5 P, 10 P, 20 P, 50 P, and 100 P values, respectively. The original G & D printing of 20 piso notes is more like brown and brown‐ orange, but the orange color on these notes becomes more pronounced on all later issues of the 20 Piso notes. In the “English” series the 1 P note was by far the most abundant in terms of numbers of notes printed, and these are then followed by roughly equal numbers of the 2 P, 5 P, 10 P, and 20 P notes and only modest quantities of the 50 P notes. The 100 P notes had been withdrawn in 1957, and it was almost 15 years before this denomination was again in circulation. For the “Pilipino” series of the first type roughly equal numbers of notes were issued with Calalang as governor and Figs. 1, 2 The 1 P and 20 P notes of the first “Pilipino” series, both of which bear the Calalang signature as governor. The 1 P note was printed by TDLR (Thomas De La Rue) and includes a type 2 seal. The 20 P was produced by G & D (Giesecke und Devrient) and includes a type 3 seal. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 107 with Licaros in that position. The 1 P note clearly dominates with a total of 374.8 million notes printed. The 1969‐72 printings of the 5 P, 10 P, 20 P, and 50 P notes were 15.0, 25.0, 25.0, and 20.0 million, respectively. The first three values were printed by G & D, while the 50 P notes were made by TDLR. During 1972‐74 a second printing of the 5 P, 10 P, 20 P, and 50 P notes was printed by TDLR with type 2 seals and with the former white end margins filled in with colored underprints. All feature the Licaros signature, and there were 16.0, 1.75, 8.20, and 3.50 million of these four values, respectively. Unlike the “English” series the total printings of the 50 P notes are now quite similar to those of the 5 P, 10 P, and 20 P notes, but all are well down from those of the 1 P notes. In their basic forms all of these notes are readily available in syngraphic markets. It is quite clear that the 100 P note had only limited usage in the late 1960s. The “Pilipino” version exists with both the Calalang signature in the A block and with that of Licaros in the B block. But only 50,000 of each of these varieties were printed. A total printing of only 100,000 notes for this value contrasts sharply with the 375 million printed for the 1 P notes or with the roughly 25 to 30 million printed for each of the 5 P, 10 P, 20 P, and 50 P values. Yet both of these 100 P varieties are not especially scarce in the collectors’ market. Apparently a sizeable number of these notes were placed in some sort of “reserve” from which they were made available to collectors. In 1972 Ferdinand Marcos proclaimed his martial law program and this soon evolved into what he called “The New Society” (Ang Bagong Lipunan in Pilipino). Between 1974 and 1985 all of the Filipino banknotes featured an overprint proclaiming this program. Those issued in 1974‐77 were printed by TDLR and these feature type 2 seals, while those printed in 1977‐85 were printed at the new security printing branch of the central bank in Manila and feature type 4 seals. All of the former feature the Licaros signature except for a limited issue of 100 P notes that have the Calalang signature. For the notes printed in Manila the 5 P through 100 P denominations come with Licaros, Laya, and Fernandez signatures, but the 2 P lacks the last of these since these notes were replaced with coins in 1983. There were some changes of design for the “ABL” notes. The 1 P note has now been replaced by a 2 P note. It continues to portray Jose Rizal on its face and the independence scene on its back. Its color is now a lighter shade of blue rather than the dark blue of the 1 P notes. In 1972 large numbers of 1 P coins portraying Jose Rizal made their appearance, and in 1975 these were followed by 5 P coins depicting Ferdinand Marcos. Coins for 2 P portraying Andres Bonifacio first appeared in 1983, but this denomination is no longer being minted. The Marcos coins, of course, were not minted after 1982, and these now depict Emilio Aguinaldo. Beginning in the year 2000 10 P coins portraying Bonifacio and Mabini have replaced the 10 P notes. As might be expected, coins inscribed “Ang Bagong Lipunan” are no longer in use. For the ABL issues of notes there was a significant change of design on the 100 P notes. Those printed by TDLR continue to depict the old central bank building on their backs, while the 100 P notes printed in Manila show the new financial complex that includes the new headquarters Figs. 3, 4 Between 1970 and the early 1980s the 100 P note went from being a limited edition item to becoming the dominant note of Filipino currency (in terms of face value). The 100 P note of the “Pilipino” series signed by Calalang had a printing of only 50,000 notes, but several hundred million 100 P notes were printed in Manila in the years 1977‐85. The “ABL” note bearing the signature of Laya is a replacement note. Note that it bears a type 4 seal that was used on all notes printed in Manila. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 108 of the central bank, the Philippine mint, and the securities printing facility of the central bank. Since 1977 most banknotes of the Philippines have been printed at this facility. The ABL notes printed by TDLR are straight‐forward, but they exist in numerous blocks due to the large quantities printed. The WPMC implies that the 5 P and 10 P notes of this group exist with features printed in both dark brown and light brown. This difference, however, is not pronounced and there are intermediate shades. Thus I feel that they should not be regarded as distinct varieties. The printings for the 2 P, 5 P, 10 P, 20 P, and 50 P were 375.0, 274.0, 236.5, 235.8, and 142.5 million, respectively. The 50 P exists in two varieties. The first of these (blocks AA ‐ EK plus Z) features the titles of Marcos and Licaros printed in red, while the second (blocks EL – FR) has them printed in brown. Contrary to the way in which the WPMC prices them, the “brown” variety is the scarcer of the two. The 100 P notes of the ABL series that were printed by TDLR include some fairly scarce items. The first printings of these have their seals on the left sides of the notes. These exist with both the Calalang and Licaros signatures. The later printings, all with Licaros signatures, have their seals on the right sides of the notes. The printings of these were 20.9 million for the “left” varieties and 16.0 million for the “right” varieties. The latter type is distinctly scarce, and much more so than either of the 100 P notes with white end margins, both of which have much lower printings. When looking for these notes bear in mind that all of the 100 P notes printed by TDLR depict the old central bank building on their backs and not the new financial complex. In 1977 the Central Bank assumed control over all printing of its banknotes, and it has proven to be an efficient producer of these items, although some very recent issues have been printed abroad. The 2 P note exists with only the Licaros and Laya signatures, but the latter exists both with black and with red serial numbers. The total production of these items was 409 million notes. There was also a special printing in 1981 of the 2 P note that honors the visit of Pope John Paul II to the Philippines. The normal notes (blocks RY to SN) were printed in a total edition of 16.0 million, but there is also a special printing for presentations of these notes, all of which have the serial JP000000. These were distributed in a limited fashion and are decidedly scarce. The 5 P notes exist with the Licaros (all black numbers), Laya (both black and red), and Fernandez (all red) signatures. The total production was 701 million notes, and so it is hardly surprising that the use of red serial numbers proved necessary for this denomination. The 20 P notes also exist with these signatures, but the total printing for these was only 322 million. Thus all of these notes feature only black serial numbers. Figs. 5, 6 The 100 P notes produced in 1969‐85 were printed by two different agencies, TDLR in the UK and the security printing branch of the central bank in Manila. The former always depict the old Central Bank building on their backs, while the latter always show the new financial complex in Manila that also includes the mint and the headquarters of the central bank. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 109 The normal 10 P notes exist with the same three signatures, but this time it is the Fernandez notes that exist with both black and red serial numbers. The total production was 514 million notes. In 1981 there was also a special commemorative issue for the inauguration of President Marcos that includes a profile of Marcos in the watermark area. The normal notes come in two versions – Marcos with a narrow collar (block QN only) and with a wide collar (blocks QP – RA). The printings of these were 1.0 and 12.0 million, respectively. It so happens that I do have on hand a supply of the scarce narrow collar notes, and I can supply them to interested parties. There is also a limited edition printing of notes (wide collar) with serial FM000000. Like the John Paul II notes mentioned above these were for special presentations and are decidedly scarce. The 50 P notes also occur with the same three signatures. The total production for these three varieties was 366 million, and all serial numbers are printed in black. There is, however, a special commemorative version of this note that was released in 1978 and honors the 100th birthday of Sergio Osmena. These notes are from the FW and FX blocks and a total of 2,000,000 were printed. Manuel Quezon was also born in 1878, and it seems a bit strange that no items with a similar overprint on the 20 P note were issued for him. The commemorative issues of 1978 and 1981 were the first of numerous issues of notes with special inscriptions that proliferate in the “New Design” issues of notes. The texts of most of these are in the Pilipino language. The Pilipino language, of course, is a member of the extensive Austronesian language family that includes languages extending from Hawaii to Madagascar. In Pilipino the word for year is taong; in Malay or Indonesian it is tahun; in Tongan it is ta’u; in Maori (New Zealand) it is tau; in Malagasy (Madagascar) it is taon, etc. Clearly the original Austronesian peoples were deeply into agriculture and knowledge of annual cycles before they migrated from their original homelands in SE Asia. The 100 P notes of this issue show a radical contrast with earlier issues of notes of this denomination with regard to numbers of notes printed. All three of the signatures exist, of course, and their total printing was 546 million. All notes have black serial numbers, but they almost reach the limit where notes with red serial numbers would have proven necessary. From the decade beginning with 1970 and ending with 1980 the 100 P notes go from fairly exotic curiosities with limited circulation to the dominant note of the circulating currency in terms of their total face value. During the 1980s this trend continued with the “New Design” notes, of course, and the first 500 P and 1000 P notes were issued in 1987 and 1991, respectively. Modern Filipino notes delight some collectors with their abundance of fancy serial numbers of various types, but such items do not appear in any numbers until after the year 2000 and they are confined almost entirely to notes with denominations of 20 P or higher. Some errors do occur on the notes of 1969‐85, but clearly steps were taken by all three printers to prevent them. On the ABL notes the oval inscription was applied as an overprint, and sometimes it is strongly off center, heavily skewed, or absent altogether. Such errors, however, are rare, and when offered they do sell at very large premiums. Figs. 7, 8 The 1981 issues of ABL notes included two commemorative issues. These honor the visit of Pope John Paul II in February and the inauguration of President Marcos in June of that year. The 10 P note shown is the “narrow collar” variety. There were also limited edition presentation items with serials JP000000 on the 2 P and FM000000 on the 10 P note. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 110 Replacement notes exist for many varieties of these issues. A true rarity scale has not yet been worked out for these items, but expect to pay substantial premiums for most of the 1969‐85 issues in “star” form. A few varieties may even be true rarities, but we are a long way from having accurate censuses for these items. Probably most of the ca. 50 major varieties of the 1969‐85 issues exist in replacement form, but few data are available on the numbers printed and on exactly which of these varieties do or do not exist in replacement form. Although the WPMC lists numerous specimen notes for the 1969‐85 issues, I do not feel that its listings are very reliable. In my personal collection I have three different sets of specimen notes of these series, and all of them bear the Licaros signature as governor of the central bank. One specimen set is an item that should be familiar to many collectors. It is the Manila printing of the 2 P – 100 P ABL notes with matching serial numbers, all of which begin with a Maltese cross. This product was included in a collection of worldwide specimen notes of numerous nations that was marketed by the Franklin Mint in 1978. About 10,000 sets of these notes were sold, and my set is number 1293. Although I have seen these item offered on eBay as singles, I would strongly recommend one to purchase a complete set of six with matching numbers. I have even seen these offered as “slabbed” in sealed holders, but why “slab” them when they all grade either CU‐66 or 67? The other two specimen sets that I have were both obtained from dealers in the Philippines, and these are being offered on eBay. One set consists of the TDLR printing of the ABL notes containing the 5P – 100 P notes. The four lower values have A000000 serial numbers, but the 100 P note has a normal serial in the B block. I do not have a 2 P specimen note of this type, and despite rather low catalog value listings in the WPMC, and I have not seen one offered for sale. Clearly there is an error in the listings for 2 P specimen notes in this source. The third specimen set that I have is a set of six of the TDLR printings of the “Pilipino” notes with the Licaros signature. The 5 P to 50 P notes have serials A000000, but the 1 P has a serial in the GB block while the 100 P has serial B041350. It so happens that the GB block was the first serial number block that was used for the Licaros notes, while the specimen 100 P note raises some interesting questions. As I previously mentioned, the two varieties of “Pilipino” series 100 P notes (Calalang in the A block and Licaros in the B block) have by far the lowest printings of all of the 1969‐85 notes for the regular issues. Both varieties of these notes are recorded as having printings of only 50,000 items each. The serial number on my normal Licaros note is B049051, while my specimen note has serial B041350. It seems that many of the Licaros notes with serial numbers around B040000 were overprinted to make specimen notes. Yet issued notes of both the Calalang and Licaros varieties of the normal 100 P notes (WPMC nos. 147a and 147b) are not especially scarce. Quite possibly very few of these notes were placed into circulation, and almost the entire supply was retained for sale to collectors or for making into specimen notes. The two specimen sets that I have just described are available with some frequency from sources in the Philippines and they are being advertised on eBay. They should cost about $75 per set. One of the earlier specimen sets I obtained arrived in an official‐looking holder that appeared to be made in large part from polyvinyl chloride plastic. I immediately removed the notes, of Figs. 9, 10 Many of the Filipino notes of 1969-85 exist in specimen form. Shown is a 5 P note of the 1972 issue with zero serial numbers, and a 50 P note from the well-known “Maltese Cross” set that was marketed along with other sets of specimen notes from various nations in 1978. Both bear the signature of Licaros as governor of the central bank. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 111 course, and there was no damage, but never store anything numismatic in holders that contain polyvinyl chloride plastic. The Maltese cross specimen set formerly sold for about $30 or $40, but I don’t think that is now the case. If you want one of these, most definitely go for a full set of six with matching numbers. I would not pay a dime extra for a set that has been “slabbed.” They all grade choice to gem CU, anyway. Occasionally some rarer types of specimen notes are offered. These include individual notes that feature two TDLR ovals together with small holes punched in the signature blocks, and both the “Pilipino” and the “ABL” series exist in this form for several denominations. Typically these sell for a few hundred dollars per note. Their rarity can be explained because these products were intended for distributions to central banks and not for sale to collectors. The 5 P, 10 P, and 20 P notes printed by G & D exist in specimen form, but they seem to be scarce. These items have zero serial numbers, and the letters of the word “SPECIMEN” have serifs rather than the sans serif style used by the two other printers. The website “Philippine Banknotes – 1949 to Date” provides illustrations of essay notes that apparently Marcos intended to issue. The notes in question are for 500 piso, and they include a large portrait of Marcos on their faces. The back side is a composite that includes government buildings, a bridge and a dam, a rice farm, and a farm family. Clearly this design was intended to proclaim the economic progress made under the Marcos administration. The first of this bears the Marcos – Laya signature combo and is printed in brown red. The second has a more finished appearance, bears the signatures of Marcos and Fernandez, and is multicolored. The style of both of these is that of the “New Design” notes that were introduced in 1985 at the very end of rule by the Marcos administration. Neither of these items was ever issued, but in 1987 a 500 P note was issued. It depicts Benigno Aquino, Jr. (1932 – 83). His assassination in 1983 is still highly controversial, and investigations and trials held after 1986 point to a rather wide conspiracy. Incidentally, martial law was lifted in 1981, and Marcos was re‐elected in a ballot held in that year, but many of the abuses of power continued during the last five years of his rule. Collectors will find it very easy to obtain a basic type set of the normal issues of 1969‐85. But how many varieties are needed if one wishes to take printers, signatures, and some other details into account? The “Pilipino” notes printed in 1969‐72 involve six values each with two different signature combos. Two printers were involved, but the 1 P, 50 P, and 100 P were all by TDLR while the 5 P, 10 P, and 20 P were printed by G & D. In the issues of 1972‐74 there are modified designs for the 5 P, 10 P, 20 P, and 50 P printed by TDLR but with only one signature combo. Thus a complete set of these notes would consist of 16 varieties, none of which are rare. For the ABL notes printed by TDLR there is only one major variety each for the 2 P, 5 P, 10 P, and 20 P values. The 50 P note, however, comes with either red or brown lettering, and there are three major varieties of the 100 P notes. The 100 P note with its seal on the right is probably the most elusive of the entire group, but it is not a rarity. This makes for a total of nine varieties. For the ABL notes printed in Manila there are three signature varieties in most cases, and there are black versus red number varieties for the 2 P, 5 P, and 10 P notes. This leads to a total of 20 varieties for the normal notes, none of which are scarce. There are also commemorative notes for 2 P, 10 P, and 50 P, and these will add an additional four varieties to this total. If the special presentation 2 P notes numbered JP000000 and 10 P notes with FM000000 are included, there will be a total of 26 for the numbers of varieties printed in Manila. In that case there would be a total of 51 different major varieties for all of the 1969‐85 issues, but most collectors would probably also like to include a few replacement notes and perhaps some of the specimen notes. Most series of Philippine notes have been numbered in blocks of one million, and this leads to a great many blocks for the more abundant varieties. I do not think that collecting these notes by serial number blocks is practical due to the very large numbers of these possibilities in these and several other Philippine series of notes. Although I have not attempted to collect these notes by ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 112 serial number blocks, I have tried to obtain notes with both single‐letter and double‐letter blocks in cases where both of these variants are possible for a given major variety. Just prior to the time when Marcos came to power the Philippine peso was “floated” on international markets, and in 1965 its official rate stood at 3.90 to the U. S. dollar. Between then and the end of the Marcos regime in 1986 the value of the piso gradually fell from that rate to about 20.5 to the dollar. Under Marcos the external debt of the Philippines rose from roughly $3 billion in U. S. dollars to about $30 billion. Just servicing this debt has absorbed a significant portion of the annual budget. Under Marcos there were considerable improvements to the national infrastructure, but there was also a huge amount of inefficiency and corruption. More recent Filipino administrations have had to deal with many of the abuses that they have inherited. At the present time the exchange rate for the piso stands at about 45 to the U. S. dollar, but at least the Philippines has avoided any real hyperinflation. The so‐called “New Design” notes printed between 1985 and 2013 continue to circulate along with the “New Generation” notes first issued in 2010, but as has been noted, there are a number of errors of design on the current notes that do need to be corrected. Nonetheless the central bank has announced that all “New Design” notes will lose their legal tender status at the end of 2015, and the central bank itself will cease to redeem them after the end of 2016. The notes of the Marcos era printed in 1969‐85 lost their validity as currency early in the year 1996, or almost exactly ten years after Ferdinand Marcos left office. All persons desiring further data on modern Filipino banknotes should refer to a superb computer website entitled “Philippine Banknotes, 1949 – Date” that is being written and continually updated in Australia. It is amazingly comprehensive for all of the regularly issued notes, but its coverage of specimen notes is rather weak, and it does not deal with replacement notes at all. All collectors, however, will find it to be an extremely useful guide. References: Chambliss, Carlson R, “The “English” Series of Notes of the Central Bank of the Philippines,” Paper Money, May/June, 2015. Cuhaj, George S., editor, Standard Catalog of World Paper Money, Modern Issues, 19th Edition, Krause Publications, Iola, Wisconsin, 2013. Gibbs, Christopher, N. C., editor, “Philippine Banknotes, 1949 – Date” (website), Australia, 2014. Still available! THE COMPREHENSIVE CATALOG OF U. S. FEDERAL LARGE-SIZE NOTES, 1861 - 1929 by CARLSON R. CHAMBLISS and GENE HESSLER One of the most beautiful and authoritative books ever written devoted to the subject of Large-Size Notes of 1861- 1929 is still available. It is stunning and has lavish use of full color and the complexities of the USNs of 1862-63 explained in detail along with stars, mules, and block varieties. The NBNs are listed both by Treasury signatures, by States and Territories and it also contains a section on errors, fancies, and uncut sheets. A new numbering system is introduced (the Chambliss- Hessler numbers), but the more familiar Friedberg numbers are also quoted for each and every variety. Census data are given for all varieties, and these are very much up to date. Current valuations are used, and thousands of auction realizations are quoted. This work is an absolute essential for anyone involved at all with U. S. Large-Size Notes. The book is soft-bound, 8."5 x 11" in size, and is 320 pages long. The price is $35 postage included. Order yours now by sending a check or money order to Carlson R. Chambliss, P. O. Box 804, Kutztown, PA 19530. Dr Chambliss can also be reached by email at crchamblissh62@gmail.com or by phone at 1 - 610 - 683 - 6572. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 113 The Five $10 1934 Silver Certificate Face Plates Overprinted with Yellow Seals by Jamie Yakes During World War II, the U.S. Government utilized two kinds of specially overprinted currency, one each in the European and Pacific theaters of operations. The political, economic, and military reasons for conceiving such currencies are discussed extensively in Huntoon et al.1 Brown-seal Hawaii currency was issued after the Japanese Imperial Navy attacked the U.S. naval base at Pearl Harbor, Hawaii, and other U.S. interests in the Pacific, in December 1941. Yellow-seal North Africa currency was issued to U.S. troops prior to Operation Torch, the Allied invasion of North Africa, in November 1942, and again in July 1943 before Operation Husky, the Allied invasion of Sicily. The distinctive seals and numbers of both kinds made it possible to immediately demonetize the notes should stocks be seized by Axis forces, therefore denying them an invaluable economic resource. The types used for World War II issues were silver certificates for North Africa notes and $1 Hawaii notes, and San Francisco Federal Reserve notes for $5, $10, and $20 Hawaii notes. All are popular with collectors, but one kind steals the show--Series of 1934 $10 North Africa notes. Its rarity rests solely with the fact the notes were printed from only a few Series of 1934 micro face plates, unlike the more commonly used Series of 1934A macro face plates. Only two other kinds of micro faces were used for World War II emergency notes: San Francisco 1934 $5s and $20s for Hawaii overprints. The use of $5 and $10 micro faces for their respective kinds followed similar paths to production. Stocks of 1934 $10 sheets available at the time of the North Africa printings were printed from 1934 faces 116, 123, 125, 126, and 127 (Table 1). Those stocks came about in two ways: sheets printed in 1940 and stockpiled for two years; and sheets printed in 1942 to produce new stocks for overprinting. Table 1. Series of 1934 $10 Silver Certificate Face Plates Used in Production of Yellow Seal $10s Plate Serial Final Press Run in 1940* Canceled 116 Jul 2 - Jul 23, 1940 Jul 24, 1940 123 Jul 2 - Sep 6, 1940 Oct 10, 1940 Oct 9, 1940 125 Jul 2 - Sep 6, 1940 Jul 28, 1942 Oct 9, 1940 Jul 1 - Jul 27, 1942 126 Jul 2 - Sep 6, 1940 Aug 4, 1942 Jul 1 - Jul 27, 1942 127 Jul 2 - Aug 6, 1940 Oct 10, 1940 Aug 22 - Sep 6, 1940 Oct 9, 1940 *All five plates had been in service since 1939. Switch to Macro Plate Numbers The eventual use of 1934 $10 micro faces for North African printings stemmed from events that occurred in 1937-38. At the bequest of the U.S. Secret Service, in August 1937 the Bureau of Engraving and Printing was instructed to increase the size of the plate serial numbers etched onto face and back plates.2 The impetus behind the change were problems that Secret Service personnel were having deciphering the plate serial numbers on worn notes. To late 1937, plate serials had been etched in small numerals about 0.6 mm high, what we call micro. Those micro serials were difficult to identify on beaten and tattered notes. The BEP then enlarged them by more than half to 1 mm. We call these macro. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 114 Treasury considered the change sufficiently important that the BEP advanced series letters for face plates bearing the new macro serials. For silver certificates, $1s became Series of 1935A, and $5s and $10s became Series of 1934A. Production of macro plates quickly moved forward for the high-demand classes and denominations. The first macro plates for 1935A $1 and 1934A $5 silver certificates were finished in January 1938. Macro faces for $2 and $5 legal tender notes were finished in February. Macro plates for many Federal Reserve districts were also being finished in the early months of 1938. Macro faces for $10 silver certificates were the laggard. The BEP had started two steel 1934A master plates in order to implement the change on $10 silver certificate faces: serial numbers 86 on January 21, and 87 on February 7. However, production of macro 1934A $10 silver certificate faces was delayed for a year because of changed printing priorities in 1937-38. Through 1937, Treasury had capped the amount of $10 silver certificates in circulation at $100 million. Ones and $5s were the workhorse notes of that class, and $10s were predominantly Federal Reserve notes. Earlier that year, the BEP was instructed to cease printing $5 Federal Reserve notes in May in preference to $5 silver certificates. In response, they increased printings of $10 and $20 Federal Reserve notes. In February 1938, the Treasury commenced a two-year process of increasing the outstanding supply of $10 silver certificates. By March 1940, the supply had increased almost four-fold from $100 million to $350 million.3 Previously, printings of $10 silver certificates had consisted of small batches that comprised just over 1% of all silver certificates delivered.4 At first, the BEP turned to using serviceable 1934 faces for printing $10 sheets. They supplemented those face plates by finishing 40 new 1934 faces in March 1938, which carried serials 88-127. These were made from 1934 electrolytic masters so they were finished with micro plate serial numbers. The following year, to supplement their dwindling supply of 1934 faces, the BEP started production of 1934A face plates on February 21, 1939. They finished 52 plates between then and June 3, 1940, inclusive of serials 86, 129-180, and 182. Master macro face 87 already had been finished as a working plate on September 16, 1938. $10 SC Numbering during Wartime The last printings of $10 silver certificate faces in 1940 took place between July 2 and September 6. These involved 1934 faces 116, 123, 125, 126, and 127, and 1934A faces 86 and 129-169, although not all these plates were used for that entire time span. Plate records show 1934 faces 123, 125, and 127 also were sent to the pressroom floor on October 9, 1940, and then removed the same day. I doubt they were used that day. When $10 blue-seal numbering ceased sometime in 1940 or 1941, there remained stocks of unnumbered $10 silver certificate sheets. These were placed into storage until resumption of $10 silver certificate numbering. Significant to this story is that 1934 face plate 116 had been canceled on July 24 1940, and faces 123 and 127 on October 10, 1940. On July 1 1942, the BEP resumed printing $10 silver certificates sheets with a press run including 1934 faces 125 and 126, and 1934A faces 86 and 129. The printings were ramped up significantly on September 1, when 1934A faces 134-182 were sent to press. The first orders for yellow-seals were received on September 1, and new sheet stocks were funneled to the numbering division for numbering and sealing (Table 2). Eventually, stockpiled $10 silver certificate sheets from 1940 also were sent for numbering. Table 2. $10 North Africa Numbering Runs Ordered* Serial Numbers Notes Face Types Sep. 1, 1942 A91044001A-A92764000A 1,720,000 1934, 1934A Sep. 10, 1942 A92764001A-A94484000A 1,720,000 1934, 1934A Sep. 18, 1942 A94484001A-A96204000A 1,720,000 1934, 1934A Oct. 21, 1942 A96204001A-A98004000A 1,800,000 1934, 1934A ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 115 Oct. 29, 1942 A98004001A-B00904000A 2,900,000 1934, 1934A Apr. 29, 1943 B01564001A-B07564000A 6,000,000 1934, 1934A Apr. 7, 1944 B07564001A-B13564000A 6,000,000 1934A Not available *01008001A-*01284000A 276,000 1934, 1934A *Dates when the BEP received orders from the Treasury Department to number and seal sheet stocks. Deliveries of finished notes to the Treasury occurred between September 4, 1942 and May 8, 1944.5 Trying to determine whether a 1934 $10 North Africa note was from a sheet printed in 1940 or 1942 is not an exact science. This is because some of the face and back plates used for producing yellow- seal notes were sent to press in both years. All yellow seals from faces 116, 123, and 127 were printed in 1940, because those face plates were canceled that year (Figure 1). Those notes will have back plates 697 or lower because they were the only backs in use while those faces were active. Figure 1. North Africa $10 note printed from face 116 and back 643. This note, as well as $10 yellow-seal notes from faces 123 and 127, were from stockpiled sheets printed in 1940 and unnumbered prior to September 1942. (Photo courtesy Heritage Auction Galleries). In contrast, determining when sheets from face plates 125 and 126 were printed is often ambiguous. Both faces were used in 1940 and 1942, so for those yellow-seal notes the back plate serials become the key to possibly dating the sheet. But even that method is not certain. The only definite determination is a yellow-seal note with face 125 or 126 that is paired with back plate 698 or higher (Figure 2). Back 698 was the lowest plate serial that had not been used when the five 1934 faces were used in 1940. Sheets from that back and higher serials could only have received face printings from those two faces in 1942. The wildcards are yellow-seal notes with faces 125 or 126 that are paired to back plate serial 697 or lower. Some of those backs were used continuously from 1940-42, and could have received face printings from either face in 1940 or 1942. Unfortunately, it is not possible to determine when just from the plate serials. Figure 2. North Africa $10s from faces 125 and 126 may be from stockpiled sheets printed in 1940, or from new sheets printed after July 1942. The back plate number can sometimes reveal when the sheet was printed, but isn't always definite. This note has face 125 and back 811. Back 811 was logged to the pressroom for the first time on March 30, 1942, so this sheet was printed in 1942. (Photo courtesy Heritage Auction Galleries). ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 116 Other Wartime Micro Faces Series of 1934 $5 and $20 San Francisco Federal Reserve note faces were the only other micro faces used for World War II issues. Sheets from those plates were numbered with Hawaii brown seals and serial numbers. Like the 1934 $10s, the 1934 Hawaii $5s were numbered on stockpiled sheets printed prior to 1938, and also on sheets printed from 1934 faces used in 1942-43. It is possible to distinguish between the notes from the different groups. Stockpiled sheets are 1934 non-mules printed from face plate 31 or less, and have micro backs printed in a soft yellow-green ink. These were the first $5 sheets sent for numbering starting on June 8, 1942. This type comprised all the serial numbers from L12390001A-L13640000A. On June 6, 1942, the BEP began printing fresh stocks of San Francisco $5 sheets using San Francisco faces 1, 24-37, and 39-52. Those were mated only to macro back sheets, which by then were printed with a darker blue-green ink. These notes are the mules found with serials greater than L13640001A. Series of 1934 $20 Hawaii notes were numbered on sheets printed from 1934 San Francisco faces 21, 24, and 25. All three were certified from August-October 1937, and were the only 1934 faces still serviceable after March 1940. They were actively used until 1945-46, during which they were mated with $20 micro and macro backs, and numbered in all eight Hawaii serial number runs. Altered 1934A $10s Unscrupulous folks have taken to altering 1934A $10 North Africa notes into 1934s because when sold a 1934 can fetch multiples of a 1934A. Fortunately, collectors can spot the fakes. A genuine 1934 yellow seal has a micro face plate number, specifically 116, 123, 125, 126 or 127. Anything else is dubious. References Cited 1. Huntoon, P., Downey, J., Hodgson, J., Medcalf, D., and Simek. J. "U.S. Hawaii and North Africa/Sicily Notes." Paper Money 47, no. 3 (2008, May/Jun): 196-223. 2. Huntoon, Peter. "Origin of macro plate numbers laid to Secret Service." Paper Money 51, no. 4 (2012, Jul/Aug): 294, 296, 316. 3. Yakes, Jamie, "Salvaged $1 Silver Certificate Faces 86 & 87." Paper Money 54, no. 6 (2015, Nov/Dec): 426-429. 4. Ibid. 5. Shafer, N. "A Guide Book of Modern United States Currency." Second edition. Whitman Publishing Company, Racine, Wisconsin (1967): 155. Other Sources U.S. Treasury. Bureau of Engraving and Printing. Ledgers Pertaining to Plates, Rolls and Dies, 1870s- 1960s. Volumes 10 and 21. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 117 2363 Note Survey on T-64 CSA $500 Notes: What Was the Last Note Issued?: Another Brief Update by Steve Feller A. Introduction to the Update on the T-64 CSA Note Survey For over the past decade I have been keeping track of the serial numbers on Criswell T-64 Confederate States of America $500 Stonewall Jackson notes [1,2,3,4,5,6,7]. In this article, an update done on December 25, 2015, I report on serial number information from 2363 examples of this historic issue. In earlier articles in Paper Money [2,3,7] I reported on observations from 1847 (November 18, 2012), 1641 (July 16, 2011) and 976 notes (as of September 15, 2007); in addition, I reported earlier data that contained the first 604 observations (as of December 23, 2005) [4]. The serials have ranged between 3 and 38386. I remain convinced that serial 38386 is near to or might just be the very last note issued from this type. This assertion remains the focus of this update. Is this the last CSA note issued? Note the serial number 38386. B. A Statistical Look at the T-64 CSA Note Some of the previous articles had detailed graphs of the data, these will not be reproduced here as this is meant to be a briefer look at the survey. Rather I will summarize the data in the following table. Table 1: Number and Rate of T-64 Notes Surveyed Date Notes Seen by Date Change Change/day December 25, 2015 2363 516 0.456 November 18, 2012 1847 206 0.419 July 16, 2011 1641 665 0.475 September 15, 2007 976 372 0.589 December 23, 2005 604 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 118 The average serial separations for the current 2363 and the previous 1847 note cases are 16.3 and 20.8 as we continue to add more precision to the data. A measure of the amount we could expect the average to vary is known as the standard deviation and is 18.4 currently and was 23.9 for the last set of results. This means that more than half of the separations will fall within 18.4 of the average separation of 16.3. Very few fall 2 or 3 standard deviations from the mean; for example a mere 12 pairs of notes are 100 or above serials apart with a high of 130. This compares to 32 pairs of notes separated by more than 100 serials for the last survey report of 1847 notes. This means that it is reasonable to say that the final serial seen, 38386, likely will not be more than a standard deviation, 18, or so off from the true end serial. As more numbers are observed we are likely to get surer of this. Next we come to the relative frequency of the notes. This is defined by the number observed divided by the total number printed, including the four plate letters (A,B,C, and D). Three versions of the notes were identified by Criswell: Type 489, 489A, and 489B [8]. These were supposed to be regions of dark, light, and dark red printings but it is not precise. The frequency and other data are shown in the following chart: Table 2: Number and Frequency of T-64 Notes Seen Serial Range # Printed Type # Seen Frequency 12/25/15-11/18/12 1-6000 24000 489A 347 0.0145 68 6001-33000 108000 489 1613 0.0149 360 33001-38386 21544* 489B 403 0.0187 88 Total 153544* 2363 0.0154 516 *In this table it is assumed that Type 489B notes ceased production with the last serial observed, 38386. We see in the above table Type 489B have survived with the most frequency (26% more than the other types) whereas Types 489 and 489A are observed with almost the same relative frequency. Raphael Thian gives two related pieces of information in his classic and important book, Register of the Confederate Debt [9]. First, the serial number with the last recorded signature combination for the T-64 notes is 32900. Second, the last observed serial number by Thian was 37607 and he indicates his data are incomplete, although he had access to thousands of Confederate notes. Once again, from this it is reasonable to suppose that the last observed serial of 38386 is near or perhaps at the end of the issued notes. Another bit of information may be gleaned from the 2363, 1847, 1641 and 976 observed serials from the last four survey sampling periods. I looked at the last six groups of one thousand serials (this constitutes the entire range of Criswell 489B notes, these often come with the marvelous dark red ink) and counted how many notes there were in each group of a thousand serials. I observed the following: ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 119 Table 3: Numbers of Type 489B Notes Observed Group of Thousand Serials Notes in Each Observed Set 976 1641 1848 2363 33001-34000 30 47 53 62 34001-35000 32 64 69 80 35001-36000 34 56 62 81 36001-37000 39 49 61 97 37001-38000 35 49 53 63 38001-38386 (Last Note) 13 15 17 20 Total Type 489B Notes 183 280 315 403 Fraction of Type 489B 0.188 0.171 0.170 0.171 Fraction of 489B 38000+ 0.0134 0.0091 0.0092 0.0085 For the current data set Type 489B notes (with the range of serial numbers 33001 to 38000) there is on average 77 observed notes per 1000 serials with a variation, 62 to 97, in the numbers observed. The sudden drop to 20 serials above 38000 is a clear indication that the serials stopped abruptly in 1865. Extrapolating the rate of observed notes of 77 per 1000 to the range above 38000 and using the fact that 20 notes have been observed above 38000 leads to a predicted end of the serial range to be 38000 + (20/77)*1000 or 38260. This is fairly close to 38386 indicating again that 38386 is near to the last of the serial numbers. The last four surveys predict the final serial numbers to be: 976 Note Set 1641 Note Set 1847 Note Set 2363 Note Set Predicted Final Serial 38442 38283 38283 38260 Predicted Final Serial -actual Final Serial 56 -103 -103 -126 Table 4: Predicted Last serial Numbers and Difference to Observed 38386 Based on the Trend of Type 489B Notes. Incidentally, it is possible to see runs of serial number by plate letter (A-D) indicating survival of original hoards. The most notable ones are: Table 5: Runs of Serial Numbers for T-64 CSA $500 notes Plate Letter Serial Range A 35770-35798 B 22227-22237 23051-23060 C 22114-22129 35768-35777 D 5529-5534 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 120 C. Conclusions I conclude with ever more confidence than I had in the last articles in Paper Money [1,2,7] that the illustrated note shown here with serial 38386 must be very near the end of the run for the T-64 notes. It is surely the case that the note featured in this article is from near the end of the war and, to my knowledge still has the highest known serial number for a T-64 $500 note. If another note was found above 38386 a close estimate of its serial number would be within one standard deviation of the mean change. This yields a range of possible high serials from 38386 to 38404. I continue my study. The rate of new notes seen is holding quite steady at just under a note every two days. At the last report I thought the rate of new notes being observed was slowing but in this report this has not yet proven to be the case and the rate has actually increased. Of course, there are many T-64s in collections, institutions, and especially the Smithsonian with its world’s largest repository of Confederate Currency which inherited notes from the Rebel Archives [10]. Thus, it is quite likely that there are several thousand surviving T-64 notes out there. If readers have additional serial number and letter reports I would be pleased to receive them at sfeller@coe.edu. Each article generates several new observations that are sent to me. D. Bibliography [1] Feller, Steve 1641 Note‐Survey Update on Type‐64 CSA $500 Notes: What was the Last number Issued,” Paper Money L (6) Whole Number 276 pp 464‐476, 2011. [2] Feller, Steve, A Survey of Nearly 1000 Type- 64 Confederate States of America $500 notes: What Was the Last Note Issued? Paper Money XVII (1) Whole Number 253 pp 11-18, 2008. [3] Feller, Steve, The Criswell Type 64 Confederate States of America Note, I.B.N.S. Journal, 42 (3) pp 41-42, 2003. [4] Feller, Steve, Is This the Last Confederate Note Issued?, I.B.N.S. Journal, 44(4) pp 31-32, 2005. [5] Feller, Steve, The Criswell Type 64 Confederate States of America Note: A Statistical Update, I.B.N.S. Journal, 43 (2) pp 54-55, 2004. [6] Feller, Steve, “The Criswell Type 64 Confederate States of America $500 Note,” I.B.N.S. Journal, 42(3) 2003 27‐33. [7] Feller, Steve 1847 Note‐Survey of Type‐64 CSA $500 Notes: What was the Last number Issued: A Brief Update,” Paper Money LII (2) Whole Number 284 pp 116‐118, 2013. [8] Criswell, Grover C., Comprehensive Catalog of Confederate Paper Money (BNR Press: Port Clinton, OH) 1996. [9] Thian, Raphael P. Register of the Confederate Debt (Quarterman Publications: Boston) 1972. [10] Reed, Fred Shades of the Blue and the Grey, Bank Note Reporter, July 2011. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 121 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 Make Plans now to attend the 40th Annual IPMS in Memphis! The annual premier show devoted to the collecting of paper money. June 2-5, 2016 Cook County Convention Center 255 N. Main St. Memphis, TN 38103 Show Hotel Memphis Sheraton Downtown 800-325-3535 For more information contact Doug Davis at doug@memphisIPMS.com or www.memphisipms.com Friday AM SPMC Annual Tom Bain Breakfast & Raffle World Famous Emcee— Wendell Wolka! Exhibits Extraordinaire! Exhibit Chairs Mart Delger & Robert Moon email for application Robertmoon@aol.com New exhibit class sponsored by SPMC— Best one case exhibit. Speaker Series Coordinated by Peter Huntoon email proposal to peterhuntoon@aol.com deadline 4/1/2016 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 123 Uncoupled: Paper Money’s Odd Couple War Bonds Joseph E. Boling Fred Schwan Fred’s fairly short column this issue deals with rare precursors to the US Treasury’s WWII war bonds. He will tell you how rare. When it comes to bonds, my expertise is in the equivalent Japanese series. Japan issued incredible numbers of bonds during WWII. None of the early ones are rare (partly because Japan was already at war many years before the US got involved). Japan’s rare bonds are some of the issues during the post- war occupation period, when government pressure to buy bonds had abated and the rapidly- inflating economy made bonds quickly depreciate to worthlessness. Rational consumers shunned them and few were sold. Many collectors of world notes have encountered examples of Japan’s WWII bonds. Some of the bonds are quite popular among militaria and period souvenir seekers, because of their vignettes of ships, planes, and tanks. But few collectors realize that the military vignettes lasted only 12-15 months (depending on series). Bonds issued before/after these narrow windows are either plain or show portraits, not hardware. There were two principal issuers of bonds in Japan through the war years. The large, pretty (and intaglio) bonds are Finance Ministry issues (more simply described as treasury issues). The small lithographed bonds (a few of which are pretty) are issues of the Japan Hypothec Bank (Nippon Kangyo Ginko). This was a quasi- governmental bank that originated as a mortgage bank (before the Russo-Japanese War), but evolved into a huge wealth-transfer machine, siphoning citizens’ earnings into the government’s war-making apparatus. The minor player (in terms of bonds issued) was the postal savings system. Most of the money deposited there was reflected only in passbooks, with few bonds or other certificates being issued. Boling Continued on page 127 It is Joe Boling’s fault that I collect United States war bonds. When Joe and I were planning World War II Remembered, Joe wanted to include listings of Japanese bonds based upon his extensive collection and research in this area. This decision meant that we must (should) also include the corresponding war bonds of the rest of the world. The problem was that we had virtually no information on the other countries. Furthermore, because the rest of the world was my responsibility, it became my problem to fill in the information. Basically, that meant that I had to start a collection of these bonds and learn lots—in a hurry. Larry Smulczenski joined me in my search for World War II bonds from the beginning. In some ways he was more keen than I. For example, he collects the Japanese bonds far more aggressively than I do. Heck, I did not want to compete with Joe AND Larry. The transition from collecting just the defense and war bonds to all United States savings bonds did not take too long and certainly was inevitable. It is just the nature of the collecting bug—certainly it is with me (I have a bad case). US World War II war bonds were issued in huge quantities, and are common enough that most paper money collectors have seen at least a few. Those bonds are Series E bonds. If you collect Series E bonds, it does not take long before you wonder about Series A - D bonds. In March 1935, the United States Treasury first offered the non-professional investor a savings type security with a schedule of fixed redemption values, redeemable at any time after a short initial holding period. It was issued only in registered form (and, therefore, non- negotiable), and could be replaced if destroyed or lost. These “baby bonds,” as they were ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 124 commonly called, were really the first savings bonds. Their sale in post offices and the U.S. treasurer’s office was promoted only through direct mail and magazine advertising, instead of through the usual investment market channels. Series A bonds were offered from March 1, 1935 through the remainder of that year. Series B bonds were offered in 1936. Series C bonds were offered both in 1937 and again in 1938. Series D bonds were sold from the beginning of 1939 through April 1941. At the Treasury web site, the bonds are described as follows: “Early savings bonds, popularly called ‘baby bonds,’ were issued in four successive series, A, B, C, and D, from 1935 to 1941. Offered in denominations from $25 to $1,000, they were sold at 75 percent of face value and paid 2.9 percent interest when held until their full 10-year maturity. Total sales at issue price of the four series, from March 1935 through April 1941, were approximately $4 billion. The last ‘baby bonds’ matured and ceased earning interest in April 1951.” This description is very interesting. Collectively, Series A, B, C and D are recognized as baby bonds. It is not clear to me why Series E bonds are not included in the same list. My guess is that it is because Series E was introduced in the Spring of 1941 as “defense bonds,” then changed to be “war bonds” in January 1942. This still leaves the question of why a defense or war bond cannot also be a baby bond. Overall, the Series E bonds seem to meet the definition of small denominations sold to the general public. Still, it is convenient for our discussion today to accept the notion that Series A through D are somehow significantly different from Series E bonds. I am going to tell you what I know about Series A through D, saving Series E and later for other times. A Treasury sales pamphlet from 1939 states that $2,260,000,000 in savings bonds Series A through D were sold. More interesting to us, the pamphlet also states that 1.5 million people bought bonds, and most interestingly, that 8,150,000 bonds were issued. That is an average of only $27.73 per bond meaning—just as we would expect— that the overwhelming majority of the bonds sold were of the lowest denomination. Perhaps Joe can develop an algorithm to estimate the distribution of the five denominations over the four series! The bonds are intaglio products of the Bureau of Engraving and Printing. The designs are about what you would expect, with portraits of presidents Washington ($25), Jefferson ($50), Cleveland ($100), Wilson ($500), and Lincoln ($1000). They have United States Treasury seals. These seals were red or blue (Series A red, Series B blue, Series C not seen, Series D red). Deciding to collect baby bonds is one thing. Finding them is an altogether different matter. They are rare. Of course this should not be much of a surprise. They were not issued in huge quantities and stopped paying interest 65 years ago. There should not be many of them around—and there are not. In the decades that I have been chasing these bonds (and information thereon), I have confirmed four pieces in collections. Four total pieces spread over four series! Here is what I know about the four pieces. Series A $25. This is an unredeemed, uncanceled, bond. It was bought on March 18, 1935, which was soon after the initial issue date of March 1. It sold on eBay a few years ago. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 125 Series B $500. This is a fascinating bond. It is canceled with three holes. Two of these are small, through the Morgenthau signature. The other is a large (ugly) hole at the center. There is also a handwritten annotation on the face: “Canceled; replaced by Bond No. D237855B.” This is certainly interesting. What is it telling us? At first I thought that the annotation had been written by the owner after having had the earlier bond reissued because of loss. This happens when the owner finds the previously lost bond after it has been replaced (reissued is the official term). The problem is that an owner would be unlikely to cancel the bond with holes. I now believe that the annotation is part of the cancellation and was written by a Treasury worker at the time that the bond was reissued. This means that the bond was supposed to have been destroyed at least 70 years ago. The serial numbers too are interesting (as they generally are). This cancelled bond is number D207241B. The bond that replaced it was D237855B. That is only a 30 thousand difference so I think that the reissue was also done in 1936, but why? Likely it was because of a change in the registration, but there is no clear clue to that. There is, however, one interesting aspect to the registration on this canceled bond. The address is listed as simply Akron, Colorado. I think that this ultra-simple address is just a matter of different times, but it is nonetheless quaint. This bond has an important pedigree. It was in the Chester Krause collection. He bought it at a Minneapolis Central States Numismatic Society convention where I missed out on it. Chet kept it in his collection until a few years ago, when he sold it in a Heritage auction at a Chicago American Numismatic Association convention (where I did not miss it). Series C. No reported pieces. Series D introduced a new design. The reason for the change is not apparent, but it may have been technical, having to do with manufacturing capabilities, in that the dimensions were changed modestly in both directions. Most interesting is that the new design was the familiar one that was then carried forward for Series E defense and war bonds. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 126 Two examples are reported in collections: a $25 and $1000. Both are uncancelled, unredeemed pieces. The $25 bond appeared in an eBay auction about ten years ago. The $1000 bond appeared in a Heritage auction about two years ago. This short discussion points out the scarcity of these baby bonds individually and as a group. Having said that, I am sure that there are more Series A-D baby bonds out there. Probably there are some both in collector and noncollector hands. I certainly would like to have reports of any pieces in collections. Please send your reports to fredschwan@yahoo.com. Boling Continued The short-lived designs with military vignettes represent a relatively small fraction of total issues. Less attractive bonds were issued for many years before and after the ones that look like they actually have a connection to a war. There was one more feature of the issues of the Hypothec Bank—they were linked to a lottery. Almost all of its issues were subject to periodic drawings. Bonds were sold at less than face (face value was the redemption value if the bond was held to maturity). Prizes could be early redemption of the bond at face value (thus giving an effective interest yield far above the nominal rate). Prizes could also be cash in various amounts (depending on the drawing involved—early drawings had larger prizes). Unfortunately for holders, the bank usually paid prizes in more bonds, which deferred prizes into the post-war inflationary years, when their value evaporated. The Japanese bond listings in World War II Remembered occupy 45 pages. I will make no attempt to replicate them here. I will show one series of designs for a single bond title in the Hypothec Bank’s issues, and defer discussion of the treasury and post office issues (and the other bank issues) for another time. We will use the bonds titled simply “Wartime Savings bond” (Senji Chochiku saiken). Senji Chochiku saiken evolved from the next-previous series, the Savings bonds (Chochiku saiken—without the “Wartime” prefix). Hypothec Bank bonds of this period were sold in series of releases. At irregular intervals, a new release would be publicized and introduced (not unlike the numbered “War Loans” in the US). Each release had its own schedule for drawings and prizes. Since prizes were front-loaded into the drawing schedule, previous releases would no longer be sold. The Savings bonds were in ¥7.50 and ¥15 denominations, sold for ¥5 and ¥10. By the time of Pearl Harbor, both values were in the same size (168x127mm), and the designs and colors had been stabilized within each denomination (previously there had been much variability). Japan had been occupying parts of north China since 1931, and had been in a shooting war (called the “China Incident”) since July 1937. When Japan extended that war to the US M[k_ Pl[ns NOW to [tt_n^ th_ 40th Int_rn[tion[l P[p_r Mon_y Show (IPMS) in M_mphis, TN. Jun_ 2-5, 2016 For mor_ inform[tion www.m_mphisipms.]om ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 127 and southeast Asia, they also changed the name of the conflict—to Greater East Asia War (GEAW). The title of the bonds then being issued was changed to Senji Chochiku saiken— “Wartime Savings bond.” The release schedule was stabilized at every two months. New designs were prepared, but when it was time for release number 1 (February 1942), the new designs were not ready. Existing stock of the China Incident designs was used, with a special new seal—a falling bomb bearing the text Dai Toa Senso—“Greater East Asia War,” with the smaller characters for “Savings bond” across its base. This seal appears only on release 1 bonds—except, that it has also been on my business card since 1993. See Figure 1. Fig 1 - Release 1 of the ¥15 Wartime Savings bond, with the one-release GEAW seal (February 1942). By April 1942 the new design for the series was ready, and the “battle flags” bonds were born. See Figure 2. Fig 2 - The “battle flags” design for Wartime Savings bonds. This is the scarce ¥30 value. Both denominations used the same design for the first time, but in different colors (green for the ¥7.50 and red for the ¥15 bonds). These designs continued through release 7—one year. From release 3 through release 8, a third denomination was added—¥30. This was apparently not a good seller, and numbers issued were considerably less than for the other two values. The ¥30 bond is red-brown, and is rarely seen. At release 8, the battle flags design was abruptly retired, being replaced with a very plain vertical design without vignettes, with two stubs at the bottom. See Figure 3. Fig 3 - The “plain” design. This is the ¥30 bond in release 8, a one-release type (April 1943). The stubs were for record-keeping if the bond was deposited for safekeeping with a bank or post office. In practice, a different form of receipts was used, and it is very rare to find a bond with one stub removed and the other postmarked. Since the ¥30 bond was discontinued after release 8, that makes the ¥30 of release 8 a one-release type. As a scarce denomination to start with, this becomes one of the keys to the Hypothec Bank issues. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 128 At release 14, yet another design change placed the last three digits of the bond’s serial number in the top frame. This made it easier to search through bonds to find winners of the periodic drawings. See Figure 4. Fig 4 - The final design for Wartime Savings bonds, with serial digits in the top frame. There are more varieties that I have not mentioned—seals for the fall of Singapore and the first anniversary of the GEAW, special supplemental releases for #1 and #12, overprints for organizational savings campaigns, and more. As I said, the entire Japanese bond system for WWII is extremely complex. And yes, they were counterfeited. While I was in Japan 1983-85, in addition to building my own collection, I was filling a collection in the States. When that collector retired, he asked me to sell his bonds for him. Lo and behold, when I received them there was a counterfeit of Senji Chochiku saiken ¥7.50 release 8. See figures 5 and 6. I asked him where he had gotten it, because it had not come through me—he had no recollection. I have since seen two more of this counterfeit, all with the same serial number. It lacks the gray-blue tint on face and back, and looks enough different from a normal bond that I doubt it would have passed a redemption clerk in Japan. So who created it, and why? If you know, I’d love to hear. Fig 5 - Counterfeit ¥7.50 release 8 bond, lacking the central guilloche. Fig 6 - Genuine ¥7.50 release 8 bond, with the central guilloche. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 129 Summit, Alabama: The “Most Patriotic Confederate Village”? by Bill Gunther The obsolete Alabama note shown below was issued in 1862 by A. W. Arnold from Summit, Alabama. The vignette appears to be a timepiece, perhaps a pocket watch and watch fob. This note is unlisted in Rosene or Haxby and there are no records of it being sold by three prominent auction houses.1 It may well be unique. There is little on the face of this obsolete note that would distinguish it from the more than 1,000 others notes by various merchants in Alabama.2 But if you simply stop with a description of the note and do not dig deeper into the background of the issuer and place, you will miss some important historical facts associated with this note. Specifically, the village of Summit was arguably the “most patriotic” village in the Confederacy, A. W. Arnold’s family made significant sacrifices to the cause, and the famous writer of short stores, O Henry, picked Summit as the location for one of his most notable stories. The Patriotic Claim The following editorial comment appeared in the (Huntsville) Democrat on January 28, 1862: “A Patriotic Village–The village of Summit in Blount County, Ala., has probably given as strong evidence of patriotism as any other in the Confederacy, if, indeed, it does not surpass all others. At the beginning of the war, it had 18 resident males of 14 years and upwards–Of these, 14 were voters, 10 of whom and 4 boys under 21 (the youngest only 14 or 15) volunteered. Of the 4 left at home, 3 were over 50 years of age. Of the 14 volunteers, two were elected captains, one, a lieutenant, and one, orderly sergeant. It had a boy’s academy with 80 students, residents and boarders. The teacher and 22, out of 23 boys over 16 years of age, volunteered.” 3 Of the 18 resident males who were of fighting age (14 and over), 78 percent volunteered for service according to the editorial. Of the 23 boys over 16 in the local academy, 22 or 96 percent volunteered, along with their teacher. And of the 14 male residents who volunteered, three became officers while one became a non-commissioned officer. Relative to its size, the country village of Summit appears to have contributed more than their fair share of volunteers. Summit and O Henry Summit, that is, what is left of it in 2015, is located in the northern corner of Blunt County in the north-east part of the state. It is about 36 miles due south of Huntsville and about 50 miles north-east of Birmingham. The name Summit derives from the fact that the village was located on the top of local “mountain”. The village reportedly had several names including Martin’s Stand and Santafee, but ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 130 Summit seemed more appropriate and it stuck.4 It was never a large village, but today there are almost no structures other than a few chicken farms that can be observed from Google Earth. But Summit does have a legacy that stems from a short story, “The Ransom of Red Chief,” written by O Henry in 1907 and published in the Saturday Evening Post. O Henry was the pseudonym of William Sydney Porter who lived from 1862 to 1910 and spent most of his time in New York.5 One of O Henry’s more popular short stories, “The Ransom of Red Chief” was about the kidnapping of young boy from Summit, Alabama, who was so obnoxious that his father demanded a ransom from the kidnappers before he would take him back! Here is what O Henry had to say about Summit, Alabama: “We were down South, in Alabama – Bill Driscoll and myself- when this kidnapping idea struck us. It was, as Bill afterward expressed it, ‘during a moment of temporary mental apparition, but we didn’t find that out till later. ‘There was a town down there, as flat as a flannel-cake, and called Summit, of course. It contained inhabitants of as undeleterious and selfsatisfied a class of peasantry as ever clustered around a Maypole.”6 Of course, the story was fiction and it is doubtful that O Henry had ever been to Summit. It is not clear how the residents of Summit reacted to O Henry’s less-than complementary description. The Arnold Family A.W. Arnold, or Absalom Weedon Arnold was born in Spartanburg, South Carolina in 1808 and lived in South Carolina at least until 1830.7 Sometime between 1830 and 1839, he had relocated to Lowndes County, Alabama where in 1839 at age 31 he married an 18 year-old Alabamian named Elizabeth Minerva Moore. Together, they had six children (4 boys and 2 girls) before she passed away in April of 1848 at the age of 27. Their sixth child was born in 1848 suggesting that it is possible that Elizabeth Arnold may have died in child birth. Although there is no precise information as to the early occupation of A. W. Arnold, he was most likely a farmer. Here is the evidence. In the 1840 Census, he reported owning 13 slaves, five of whom were “employed in agriculture.” In 1850 he had real estate valued at $5,000 and 4 slaves (3 men and one woman).8 By the time of the 1860 Census, his real estate holdings had grown to an impressive $52,900 and he owned a total of 44 slaves. A major reason to have owned that many slaves would have been to grow cotton. The value of his personal estate in 1860 was estimated at $69,530, the vast majority of which was probably the value of his slaves.9 According to the article in the Huntsville Democrat, the village of Summit “…contained 9 dwelling houses, 4 dry goods' stores, a doctor’s shop and a grocery. The stores, shop and grocery were all closed, and the keys of the stores left with one of the old gentlemen, who stayed at home, to sell goods to neighbors when specially needed.” It would appear that A. W. Arnold, age 54 in 1862, would have been one of the “old” men who did not volunteer and may in fact have been “…one of the old gentlemen, who stayed at home to sell goods…” If that is the case, then this obsolete note may have been printed by Arnold for use in local trade. However Arnold was also the Postmaster of Summit, a position he was first appointed to in 1845 and held until after the end of the war and the note may have been used in that capacity.10 Since there is no merchant name on the note, it could have been in used both in merchant trade as well as the post office. Following the death of his first wife in 1848, Absalom remarried in 1850 to 21 year-old Frances Elizabeth Rivers in Madison County (Huntsville), Alabama.11 Huntsville is only 36 miles from Summit and it would have been an important trading center at the time. Together, Absalom and Frances E. had 6 children: one boy and five girls. Their first child, a boy, was born in 1852 and it seems unlikely that he would have served in the military since he would have only been 9 at the outbreak of the war. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 131 Returning to the newspaper article, it was noted that: “One of the resident boys who volunteered, sealed his devotion to his country and her cause by dying a hero's death on the Plains of Manassas. His older brother displayed his valor on the same field of glory and has since raised a company and gone to the field as the captain; while a younger brother, of 14 or 15, is a private in his company. These three brave and patriotic boys are named Arnold. We understand that their noble father, Maj. A.W. Arnold, equipped the whole of his son's company with uniforms. What village or neighborhood in the Southern confederacy can boast so great evidence of pluck and patriotism, in proportion to population.”12 These Arnold boys were William H, George Washington, (Captain) and James M., all were children of Absalom’s first wife, Elizabeth. Only James M. survived the war.13 Petition for Amnesty Granted After the war ended, a general amnesty was granted by President Andrew Johnson.14 However there were 14 “excluded” classes of individuals and if they wished to be granted amnesty, they were required to submit a petition for a pardon to President Johnson. Included in the 14 excluded classes were those who voluntarily supported the rebellion and those who had assets of $20,000 or more. A. W. Arnold petition was dated September 1, 1865 and it he admitted to providing voluntary support for soldiers in the Confederacy as well as support for others at home.15 Note that in the article in the Huntsville Democrat, it reported that he “…equipped the whole of his son's company with uniforms.” He also admitted to having assets of “…more than twenty thousand dollars”, but also claimed that he lost $50,000 in the war. A. W. Arnold submitted his petition on September 1, 1865, only a few short months after the end of the war. As was typical, amnesty was granted provided that the petitioner sign an oath of allegiance to the United States, agree to never acquire or make use of slaves, and settle all financial claims made against him in any court.16 Amnesty was granted to A. W. Arnold on October 25, 1865, less than two months from the date of submission. He did not have long to “enjoy” his newly acquired rights since he died on April 5, 1866 at age 58 in Dallas County, Alabama.17 Two Important Websites for you to know; www.spmc.org www.memphisipms.org ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 132 Footnotes 1Walter Rosene, Jr., Alabama Obsolete Notes and Scrip, Society of Paper Money Collectors, 1984; James A. Haxby, United States Obsolete Bank Notes, 1782-1866, (Iola, Wi., Krause Publications), 1988; Heritage Auctions (www.ha.com); Stacks Bowers Galleries (www.stacksbowers.com); and Spink Galleries (www.spink.com). 2There are 1,018 privately issued obsolete notes from Alabama. See Bill Gunther, “Known Alabama Obsolete Notes Now Top 1,000 with New Discoveries,” Paper Money (May/June 2014), pp. 178-184. 3The [Huntsville] Democrat, 28 Jan 1862; page 3, column 1. Retrieved at Alabama Department of Archives and History. Thanks to Russell Kaye for this reference. 4The Heritage of Blunt County, Al. Reunion Edition. Blunt County Historical Society, 1989. No printer listed. 5For a short biography of O Henry (William Sydney Porter), www.biography.com 6You can read the entire short story at www.classiclit.about.com 7”Arnold Family Tree,” accessed at Ancestry.com. 8U.S. Census, 1840, 1850 and 1860 and Slave Schedules for 1850 and 1860. Accessed at Ancestry.com. 9 Before the war (about 1850) it was estimated that slaves who worked the fields were worth approximately $1,000- $1,200 each and domestic slaves were valued at $500-$600 each. See “In Dixie,” Harpers New Monthly Magazine, 1864, p.232. 10U.S. Appointments of U.S. Postmasters, 1832-1971. Absalom was first appointed Postmaster of Summit on May 16, 1845. Accessed through Ancestry.com 11Arnold Family Tree, op.cit. 12Although this article indicates that Absalom was a “Maj.”, there is no record of his service in the Confederate military. Perhaps this was an honorary title. 13In his Petition for Amnesty, Absalom Arnold indicated that he lost two of his three boys “in battle.” It is assumed that he was referring to those boys who served since he has four boys, one of whom was too young to serve. See “Confederate Applications for Presidential Pardons, 1865-1867.” Accessed through Ancestry.com 14For a complete reading of the Proclamation, including all 14 “excepted classes” see http://www.britannica.com/presidents/article-9116918 15“Confederate Applications for Presidential Pardons, 1865-1867, op.cit. 16 U. S. Pardons Under Amnesty Proclamation, 1865-1869, accessed through Ancestry.com 17”Arnold Family Tree,” op. cit. ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 133 COVER_Layout 1 2/1/15 7:32 PM Page 1 WE ARE NOW ACCEPTING CONSIGNMENTS FOR OUR U.S. & WORLDWIDE BANKNOTE, COIN & SCRIPOPHILY AUCTIONS We are constantly looking to purchase U.S. & Worldwide Banknotes, Stocks, Bonds, Stamps, Coins and Postal History from individual better items, to large estate collections We will also consider suitable consignments for our live, internet and mail-bid auctions held regularly throught the year Unadopted Gold Note by Ronald Horstman The note shown above is a proof essay for an 1864 gold note that was probably prepared by the American Bank Note Company although there is no imprint on the note. It was part of a proposed series which was to be legal tender but was never adopted. The series is detailed in a March 28, 1864 communication from Assistant Treasurer John J. Cisco who was described as the connecting link between the moneyed interest of the nation and the Treasury Department. The government was looking for a note to pay customs duties in gold but that could not be profited by those speculating in gold. This series of notes was not interest bearing. They could also only be used by the party they were issued to as they were not assignable. The note is printed from an engraved steel plate on India paper that is mounted on thick artist board. The signatures of Crittenden and Spinner as well as the serial number 57567 have been cut from another document and pasted on. The three vignettes used were of a patriotic nature. The one on the left is “The Zouave,” which was designed by F. O. C. Darley and engraved by J. I. Pease. It represents a mass of soldiers formed in the early months of the Civil War. They were inspired by the French Colonial units raised in North Africa with a reputation for hard fighting and distinctive uniforms. The center vignette is titled “Constitution” and was designed by T. A. Liebler. It was engraved by Alfred Sealy and J. I. Pease. She is shown holding a pole and cap in one hand and the Constitution in the other. On the right is a sailor and cannon representing naval Strength. It is titled “Sailor” and w as designed by L. Delnoce and engraved by Charles Burt. John J. Cisco ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 135 The Obsolete Corner Singapore, Michigan, and Its Bank of Singapore by Robert Gill In this issue of Paper Money I'm going to share with you an Obsolete sheet that I was fortunate to add to my collection a few years ago. It is on a bank that had a very short history. And that is The Bank of Singapore, which was located in Singapore, Michigan. Almost 180 years ago a small town called Singapore came into existence on the eastern shores of Lake Michigan near what is now Saugatuck, Michigan. Originally inhabited by Ottawa Indians, the region held promising lumber resources, sites for shipbuilding, and trade with other cities on the Great Lakes. In 1836 land speculator Oshea Wilder and four other men, who were all from the Eastern part of the country, partnered to invest in Michigan, Illinois, Indiana and Wisconsin Territory. It was agreed that Mr. Wilder would be allowed to purchase land as appropriate for investment purposes. He noted the proposed Singapore site would be well suited for the building of a saw mill. By December of 1836 Wilder had purchased the necessary land which included where the town of Singapore would be. By the beginning of 1837 he had sold contracts to build a scow and boats, along with contracts for a saw mill and housing for the workers. Although money was rather scarce, real estate continued to advance and the general prosperity continued. Development within Singapore lasted well through 1837. Michigan was admitted to the Union in January of 1837. Shortly thereafter, the new state passed a general banking law that permitted any ten or more freeholders of any county to organize themselves into a corporation for the transaction of banking business, with a capital of not less than $50,000, nor more than $300,000. These banks were empowered to print and issue their own paper money. The act further provided that no bank should commence operation until 30% of the stock was received in specie or hard money (defined in the act as gold coins, but usually gold in any form, and many silver coins were considered acceptable). In the original act the issuing bank was required to redeem its banknotes with hard money within 30 days. Failure to do so would result in dissolution of the bank. As luck would have it, and before any new banks had completed the charter process, the Financial Panic of 1837 started. The subsequent run on banks caused institutions in New York, Philadelphia, Boston and Baltimore to suspend specie payment and redemption of banknotes. Fearing that depositors, thwarted in other states, might flood the banks of Michigan with otherwise worthless paper money, the Michigan Legislature, in a special session in June of 1837, also suspended the specie redemption requirement. However, the lawmakers left the general banking laws in force. New banks still could be organized and allowed to start the business of issuing bills while the redemption requirements were still in a state of suspension. These new banking institutions came to be called “wildcat” banks - their operating bases were as hard to find in the Michigan woods as the supposedly elusive wildcat. As a result, a bank’s notes that circulated in the far reaches of the state and even to the East Coast were less likely to be presented to the issuing bank for redemption if its main office was located in some distant and / or inaccessible place. When the banking law was passed Oshea Wilder was quick to act on Singapore’s behalf. First, he tried to get his Eastern investors involved, but they were not very keen on the idea. Wilder then turned to James Carter, a distant relative of his who lived in Leominster, Massachusetts, for assistance. The official organizers of the Singapore bank all were residents ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 137 and their application was dated October 5, 1837. Wilder applied to the Allegan county clerk to have books opened for the subscription of $50,000 in capital stock for an institution to be located in the town of Singapore, County of Allegan. Oshea’s son, Daniel Wilder, was named President of the bank, and Rob Hill served as Cashier. The bank started operation in a boarding house and later moved to a different building, the only brick building in the small town. Records show pressed brick was ordered and shipped from Boston for construction of a vault. According to Harold L. Bowen, in his book of 1956 titled “State Bank Notes of Michigan”, records show that only $15,952 worth of notes were put in circulation during the bank’s short existence. Known notes are signed in and around the end of 1837 and early 1838. The bank went out of business in April of 1838 due to the suspension of the State of Michigan General Banking Laws. Notes with authentic signatures are signed by Rob Hill, Cashier, and D. S. Wilder, President. In December of 1837, the State of Michigan Legislature sought to curb any banking abuse by appointing three bank inspectors who would inspect every institution at least once every three months. A major concern at this time was whether The Bank of Singapore, as well as other banks in the area, had adequate specie, or “hard money”, to back the notes that were issued. As it turned out, the State of Michigan General Banking Laws were short-lived. The state suspended them on April 3, 1838, effectively putting the wildcat banks out of business. The Bank of Singapore was no exception. In 1839 the bank attempted to reorganize. However, after a State of Michigan bank commissioners’ visit, the operations ceased permanently. On February 16, 1842, the State Legislature annulled the bank’s charter along with those of a number of other wildcat banks. The bank building was later used as a general store. The small town of Singapore continued on for a number of years because of available forests to supply the lumber industry. But when the lumber began to run out in the later part of the 19th century, the end was near for Singapore. Once the area’s lumber supply was depleted, residents moved on. The buildings were abandoned and the town ceased to exist. Along the lake shore, shifting sand dunes gradually covered what remained of the community. And now, little physical evidence is left. The average citizen visiting the area today would have no idea that a once bustling town existed in that north side location at the mouth of the Kalamazoo River. However, Singapore Bank notes survive to tell a small part of the ghost town’s story. As I always do, I invite any comments to my personal email address robertgill@cableone.net or my cell phone (580) 221-0898. Until next time, HAPPY COLLECTING. Maryland Paper Money: An Illustrated History, 1864-1935 This 348-page hardcover book documents Maryland’s national currency era of banking from 1864 to 1935. Almost 300 photos of surviving notes are shown, including many rarities from the landmark Marc Watts Collection of National Currnecy. “This is a wonderful specialized work on Maryland nation bank and their notes that is destined to be the guidebook for generations to come.” Mark Hotz Available for purchase online at lulu.com and www.marylandpapermoney.com ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 138 ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 139 INTERESTING MINING NOTES  by David E. Schenkman  The Elusive Coosa Navigation & Coal Mining Company Notes  As an avid collector of mining scrip, the notes  issued  in 1862 by the Coosa Navigation and Coal  Mining Company were high on my want list for many years. I never had the opportunity to acquire one  until recently, when no  less than five denominations were offered for sale by Heritage Auctions as part  of a huge collection of obsolete notes from Georgia. I was able to purchase three of them.  I wondered why the notes were included in a collection of obsolete currency from Georgia. The  words “Atlanta, Ga.” do appear at  the  lower  left, as you can see on  the  illustrated note, and evidently  that was enough for the collector. However, they were obviously used at Talladega, Alabama.  As  it was  stated  in  its  act of  incorporation  on  February  24,  1860  in Alabama,  this  company’s  business was  to “clear away  the obstructions  to  the navigation by steamboats of  the Coosa river  from  the Ten Islands to Fort Williams, and to open up and develop the coal beds  in St. Clair county, and ship  such coal to market, and to this end, said company shall have power to purchase any number of slaves  which may be necessary to employ in clearing away said obstructions in said river, and opening said coal  beds and  raising and  shipping  coal  from  the  same, and may  contract  for  the hiring of any number of  hands for this purpose…” It also specifies that “said company shall have no power to issue notes or bills  to circulate as money.” Fortunately for collectors, this section of the act was ignored.  Except  for  the denomination,  the 25, 50, and 75 cents notes are  identical. The  two dollar and  three dollar notes have a different vignette  at  the  left  side, with  the words  “Stream Presses, Atlanta,  Ga.” below. I assume this is an imprint of the Intelligencer Steam Power Press, a company that operated  during  the  Civil  War  years.  The  wording  in  the  center  is  “PAY  THE  BEARER  THREE  DOLLARS  IN  CONFEDERATE NOTES, WHEN PRESENTED  IN SUMS OF FIVE DOLLARS OR UPARDS, AT THE OFFICE OF  TALLADEGA INSURANCE CO.” And, vertically at the left, are the words “RECEIVABLE FOR SALT AT KIDD’S  SALT WORKS, IN CLARK COUNTY, ALABAMA.”  My bid on the three dollar note was unsuccessful. I didn’t bid on the two dollar note because of  its condition, which was described as “apparent very good 10, with some edge splits,  tears and minor  damage. The note has also been backed with part of a page  from a newspaper of  the day.” Perhaps  I  shouldn’t have been so fussy; in the 1960s I used to discuss obsolete notes with Charlie Affleck when he  would stop by my table at coin shows, and he always tried to convince me to  ignore condition when a  rare note was involved.  The mention of Kidd’s Salt Works on the two large denominations is interesting. During the Civil  War there was a severe shortage of salt  in the south, and  in Alabama the major salt producers were  in  Clarke County. There were some  five thousand men, many of  them slaves, working  in  the salt works.  I  haven’t  been  able  to  determine  the  connection  between  the  Coosa  Navigation  and  Coal  Mining  Company and Kidd’s Salt Works, or for that matter the Talladega Insurance Company.  Comments, questions, suggestions  (even criticisms) concerning  this column may be emailed  to  dave@turtlehillbanjo.com or mailed to P.O. Box 2866, La Plata, MD 20646.  ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 140 Chump Change Loren Gatch How Healthy is Our Hobby? A Cautionary Glance at Philately—Part I  As I participate in the bimonthly Board of Governors’ meetings of the SPMC, a recurrent item on our agenda is the trend in membership in the Society, and how to keep it stable or even increase it. With the 40th anniversary of the Memphis show approaching, it’s worth thinking out loud about the future, especially since a rapidly changing world is shaping how, and even what, we collect. One way to begin this self-examination is to consider what’s happened to the world of stamp collecting. Why compare currency collecting with stamps, and not coins? After all, aren’t coins and currency just different forms of money? Well for one, stamps and currency share the same technological aesthetic, derived from a common set of production processes: ink is applied to paper (or, increasingly, polymer substrates) under high pressure to replicate images within a small frame, and on an industrial scale. Secondly, stamps and paper money are alike in that neither has been around for very long. Both are artefacts of the Industrial Revolution and the material culture of print that it has sustained. Whereas coins first appeared well before the Christian Era, the origin of the stamp dates rather precisely to 1840; what counts as currency as a conventional object of mass collector interest doesn’t exist prior to the 17th century. Finally, stamps and currency face a common threat to their viability from the rise of the internet. Physical paper money and paper-based payments systems are being usurped by their electronic equivalents. Similarly, stamps and stamped envelopes are being rendered obsolete by email, texting, and other online social media. Neither stamps nor currency are likely to disappear entirely, in the near to medium future. Yet what do these changes imply about the common prospects of our hobbies? I begin this comparison by taking a look at stamp collecting. I must admit I’m not a stamp guy, and my knowledge of that hobby is not intimate. Nonetheless, after having read through the membership reports published in recent issues of the American Philatelist, browsed Linn’s Stamp News, and lurked about various message boards, what I’ve discovered isn’t good. In the United States, at least, stamp collecting as a leisure pursuit gained traction during the Great Depression, and grew rapidly after World War II. Steady membership increases in the main stamp collecting organization, the American Philatelic Society (APS), reflected this. In particular, its ranks tripled in a burst between 1965 and 1982, cresting in 1988 at 57,815. During this same period stamp prices experienced a giddy ascent. Using Linn’s U.S. Stamp Market Index as a measure, prices went up over nine-fold between 1970 and 1982, which far outpaced even the notoriously high inflation rates of those years. Then, stamp collecting fell off a cliff. First, stamp prices cratered. The Linn’s Index went down 60% over the next decade, recovered somewhat by the early 2000s, and has treaded water ever since. Then, after peaking in 1988, the APS’s membership numbers withered; the decline has become relentless since 1998. In a 2010 report, the APS estimated it was losing about 1000 members a year; by the end of 2015 its count stood at 31,229. Other measures have moved in tandem: the circulation of Linn’s Stamp News, which had peaked at 92,000 in 1978, fell by over half as of the mid-2000s. One count of active dealers in the U.S. shows a drop from over 1000 in 1975 to 490 in 2013. Commentary on internet message boards reinforces these numbers. There is a widespread and morose sense that the hobby is disappearing: old stamp collectors are dying off, and new ones are not taking their place. Over the hundred years to 2011, the Boy Scout’s Stamp Collecting merit badge (established in 1932) was the 68th most frequent award to earn (out of 133 currently active). Yet in 2014, it ranked third from last in popularity, beating out only “American Business” and “Bugling”. What’s going on here? Is this retrenchment just a prolonged hangover from when the bubble burst in the early 1980s, or does it represent a generational shift away from physical hobbies of all sorts (model trains, baseball cards, etc.) in favor of internet-based pursuits? Will, as some predict (and hope), Chinese interest in stamps revive the global hobby? The APS is acutely aware of these trends, and in 2015 hired a new Executive Director, Scott English, a political operative with no background in stamps but with management experience (he was chief of staff to former South Carolina Governor Mark Sanford, so maybe he brought to his new job a nice collection of Argentine stamps). English’s mission: to stanch the hemorrhage of members from stamp collecting’s flagship institution. to be continued ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 141 See you all in Memphis!!! President’s Column March/April 2016 It’s  been  an  exciting  start  to  2016  in  the  numismatic realm!  The Florida FUN show kicked off  the New Year with a bang. As usual, my wife Joyce  and I attended and set up a dealer table. This was a  strong show with a strong attendance even given its  new location for 2016 (and 2018) in Tampa, Florida.  One  of my  favorite  shows,  FUN  has  evolved  into  Winter Memphis  from my  perspective with many  SPMC dealers and collectors in attendance. It is one  of the three major shows we set up a table as well  as  have  a  club meeting.  The  show  itself was  very  strong  from my  perspective  as  a  dealer  –  with  a  robust crowd that was active.  The good news is this  crowd  was  active  into  the  presentation  sessions  including  the  SPMC  meeting  amongst  others.  Joshua Herbstman graciously took over the lead for  SPMC for the table and the meeting at FUN and did  a great job, including his presentation on the history  of  US  financial  debt  as  seen  through  its  financial  instruments, notably bonds.   Long  Beach  had  attendance  of  many  thousands  including  the  dealers  which  demonstrates this show is strengthening. This show  features  coins,  paper  money,  stamps  and  sports  collectibles.  There  is  a  growing  demand  for  paper  money  at  this  show  as more  people  on  the west  coast  become  interested  in  learning  more  about  paper money – at  least that  is my observation over  the last couple of years. One can think of this show  as the Baltimore of the West and the best show for  SPMC meetings and representation would probably  be  the  Sept  show  with  its  currency  auction. We  currently  do  not  have  an  SPMC  leader  to  drive  a  meeting or table – if interested in volunteering and  having a lot of fun and leading a social event which  is  easy  and  fun  to  do,  please  contact  me  (pfricke@csaquotes.com ).   The planning for Memphis is well underway.  Call for speakers has been made by Peter Huntoon,  the  schedule  is  posted,  and  more.  Some  key  information has been posted to the SPMC blog here   http://www.spmc.org/event‐40th‐annual‐memphis‐ international‐paper‐money‐show.   The  SPMC  Breakfast  is  planned  for  Friday  morning,  June  3,  at  the  Crowne  Plaza  across  the  street  from  the  convention  hotel  (Sheraton)  in  downtown Memphis. Like all SPMC breakfasts,  this  promises to be a lot of fun and a great time to catch  up  with  old  and  new  friends. We  expect  a  lively  awards  ceremony  and  raffle  as  usual  as  well!   Tickets are discounted  to $20  through May 1st and  more  information  including online purchase of  the  Breakfast  tickets  may  be  found  here   http://www.spmc.org/products/ticket‐55th‐ anniversary‐breakfast‐memphis‐2016.   The  SPMC  Journal  will  be  available  to  be  downloaded  from  the  SPMC  web  site  by  SPMC  members  in  the not  too distant  future.  The board  unanimously  agreed  to  make  these  Journal  PDFs  available beyond  the online  viewer  in  response  to  requests  from  SPMC  members.  A  plan  is  being  formulated and when we have a date we will share  that with you.   The  Obsolete  database  project  led  by  VP  Shawn  Hewitt  and  Governor  Wendell  Wolka  has  advanced to the stage of uploading images and data  from  state  experts.  The  user  interface  has  undergone  numerous  tests  and  many  hundred  changes have been  implemented. As the states are  completed,  each  state will  have  its  own  “go  live”  schedule for the membership at  large to enjoy and  contribute  to.  Instructional  videos will  be  built  to  help people  learn how  to use  the new database. A  table  showing  the  status of each  state  is provided  here:   https://www.spmc.org/obs/faq‐page/what‐ status‐my‐state.  Stay  tuned  to hear more here  and  at Memphis  as  we get closer to “go live”!  I  hope  everyone  had  a  great  numismatic  winter and looking forward to spring!   Pierre Fricke ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 142 Editor Sez Wow! Two months down for the year already! Time sure goes fast, but that means we are that much closer to MEMPHIS! Make plans now to attend Memphis as it is the 40th one and I know Lyn and his crew along with the SPMC and other clubs will be having a lot of great celebrating and fun things to do. Oh yeah, I would imagine there will be a lot of great notes there to buy as well! In the last edition, we introduced a new columnist to our journal that will be doing a regular column on mining scrip. Well, it is with great consternation and embarrassment, that I spelled his name wrong! It is David Schenkman not the way I spelled it. My most profuse apologies and here is hoping that the same type of mistake won’t happen again, but when you get older, those simple things in life like spelling, counting and going to the BR just get more and more difficult! One thing that I ask that you please not forget as we get closer to Memphis is to vote for your favorite column, article in many different genres as well as Book of the Year. Our wonderful authors who make this publication an award winning one do it for free so reward them by voting for your favorites! A notice will be posted on the website when voting is open—around March 15. Also, there will be SPMC awards at Memphis for Exhibits including a new award this year for the best one-case exhibit. We put this award in place to encourage even more exhibiting as we often hear people say they “just don’t have time to put one together!” Well, now is your chance. A one-case quality exhibit is workable for all! Hopefully, also at Memphis the SPMC will be rolling out the new Obsolete Database for all to see. I have heard a lot of people anticipating this coming on line so that they will be able to use it! It is almost a reality! I hope you all have a chance to get or read a copy of a great new book, “Truth Seeker” which is the story of Eric Newman. He is truly a giant in our hobby and the authors have done an amazing job telling his story. The book details more of Mr. Newman’s coin dealings than paper, but he is a giant in the paper world as well as evidenced by his work on Colonial paper and his recent note sales through Heritage. It is fascinating in this day and age to just imagine how he was able to do the deals he did, to get all five 1913 “V” nickels, and that George Washington medal that is his favorite coin! It is a great read. I have been enthralled with the Colonel Green story for a long time ever since I read and heard Peter Huntoon’s talk about him. I then got two books on Hettie Green and they are great reads as well. My personal opinion is that she was greatly vilified by the men of the day simply because she knew as much or more than they did and was a more astute business person than they were and she had the audacity to be a woman! I had the privilege of meeting Mr. Newman when the SPMC arranged a tour of his museum in St. Louis during one of the last PCDA shows that was held there. He is truly a wonderful and extremely knowledgeable man & that museum……! Benny Texting and Driving—It can wait! ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 143 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk—SPMC M_m\_rship Dir_]tor NEW MEMBERS 01/05/2016 14456 Kuhl, (C), Website 14457 Olivier Bautista, (C & D), Jason Bradford 14458 Darryl Templer, (C), Website 14459 Michael Koss, (C), Website 14460 Scott McElmeel, (C), Coin World 14461 Douglas Corrigan, (C), Website 14462 Louis Nett, (C), Scott Lindquist 14463 David Hall. (C), Jason Bradford 14464 Douglas Barden, 5 (C), Jason Bradford REINSTATEMENTS None LIFE MEMBERSHIPS None NEW MEMBERS 02/05/2016 14465 Andy Proctor, (C), Frank Clark 14466 Armandino Lozano, (C), Website 14467 Chien Yu Hsu, (C & D), Frank Clark 14469 Bill Blacklock, (C), Scott Lindquist 14470 Tom R. Green, (C), Frank Clark 14471 Praxitelis (Pete) Hatjygeorge, (C & D) 14472 Armando Valdes, (C), Jason Bradford 14473 James Vickers, (C), Tom Denly 14474 Jeff Wing, (C), Jason Bradford 14475 Timothy Giambra, (C), Website 14476 Andrew Calavano, (C), Jason Bradford 14477 Stephen L. Robertson, (C), FUN 14478 Steven Armstrong, (C), Jason Bradford 14479 Cynthia Tirapelli, (C), Website 14480 Donn Wray, (C), Jason Bradford REINSTATEMENTS None LIFE MEMBERSHIPS None ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 144 Paper Money will accept classified advertising on a basis of 15¢ per word(minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbreviations, figure combinations and initials count as separate words. Editor does NOT check copy. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are run on a space available basis. Special: Three line ad for six issues only$20.50! Authors can request a free one-time ad. Contact the Editor WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with description (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 Vermont National Bank Notes for sale. For list contact. granitecutter@bellsouth.net. WANTED: Any type Nationals from Charter #10444 Forestville, NY. Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701-4129. Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. dombongo@earthlink.net WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277-1779; Casebeer@law.miami.edu WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy and sell. Mention PM receive $3 credit. 661-298-3149. Gary Snover, PO Box 1932, Canyon Country, CA 91386 www.garysnover.com. FREQUENT PAPER MONEY AUTHOR (Joaquin Gil del Real) Needs a copy of the Mar/Apr 1997 issue of the SPMC journal to complete his collection. Contact me if you can assist in this matter. TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need. Have many in the low printings. Free list. Ken Kooistra, PO Box 71, Perkiomenville, PA 18074. kmk050652@verizon.net BUYING ONLY $1 HAWAII OVERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. Captaincookcoin@aol.com "Collecting Paper Money with Confidence". All 27 grading factors explained clearly and in detail. Now available at Amazon.com AhlKayn@gmail.com W A N T E D : R e p u b l i c o f T e x a s “ S t a r ” ( 1 s t i s s u e ) n o t e s . A l s o “ M e d a l l i o n ” ( 3 r d i s s u e ) n o t e s . V F + . S e r i o u s C o l l e c t o r . r e p t e x p a p e r @ g m a i l . c o m $$ money mart WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page above -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. ONLY $20.50 / YEAR ! ! ! (wow) ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 145 Florida Paper Money Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Books available mcfarlandpub.com, amazon.com, floridamint.com, barnesandnoble.com MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 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.hjbltd.com e-mail: info@hjbltd.com A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA DBR Currency We Pay top dollar for *National Bank notes *Large size notes *Large size FRNs and FBNs www.DBRCurrency.com P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 info@DBRCurrency.com Fax: 858-679-7505 See out eBay auctions under user ID DBRcurrency HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 www.TheHigginsMuseum.org email: ladams@opencominc.com Open: Tuesday-Sunday 11 to 5:30 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 146 You are invited to visit our web page www.kyzivatcurrency.com For the past 13 years we have offered a ,good selection of conservatively graded. reasonably priced currency for the collector. All notes are imaged for your review Fractional Currency Collectors Join the Fractional Currency Collectors Board (FCCB) today and join with other collectors who study, collect and commiserate about these fascinating notes. LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALLSIZESTARNOTES OBSOLETES New members get a copy of Milt Friedberg’s updated version of the Encyclopedia of United States Postage and Fractional Currency as well as a copy of the Simplified copy of the same which is aimed at new collectors. Nst ew members will also get a copy of Rob CONFEDERATES Kravitz’s 1 edition “A Collector’s Guide to Postage ERROR NOTES TIM kYZIVAT (708) 784-0974 P.O. BOX 401 WESTERN SPRINGS, IL 60558 e-MAIL: TKYZIVAT@KYZIVATCURRENCY.COM and Fractional Currency” while supplies last. New Membership is $30 or $22 for the Simplified edition only To join, contact William Brandimore, membership chairman at 1009 Nina, Wausau, WI 54403. Buying & Selling • Obsolete • Confederate • Colonial & Continental • Fractional • Large & Small U.S. Type Notes Vern Potter Currency & Collectibles Please visit our Website at www.VernPotter.com Hundreds of Quality Notes Scanned, Attributed & Priced P.O. Box 10040 Torrance, CA 90505-0740 Phone: 310-326-0406 Email: Vern@VernPotter.com Member •PCDA •SPMC •FUN •ANA United States Paper Money specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency StarorReplacementNotes Specimens, Proofs, Experimentals Frederick J. Bart Bart,Inc. website: www.executivecurrency.com (586) 979-3400 POBox2• Roseville,MI 48066 e-mail: Bart@executivecurrency.com ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 147 Just Filling Space Some Currency Websites Society of Paper Money Collectors‐‐www.spmc.org  American  Numismatic  Association—www.money.org—they  have  now digitized all 127 years of The Numismatist!  Newman Numismatic Portal—newmannumismaticportal.com  Banknote  News—www.banknotenews.com—breaking  news  about  international paper and polymer money.  The official euro website—www.new‐euro‐banknotes.eu—the official  European banknote website about euro banknotes and coins  Ephemera Society of America—www.ephemerasociety.org  Bureau of Engraving and Printing—www.moneyfactory.gov  ___________________________________________________________Paper Money *March/April 2016 * Whole No. 302_____________________________________________________________ 148 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site pcdaonline.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. The Professional Currency Dealers Association For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: PCDA James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 Or Visit Our Web Site At: www.pcdaonline.com Washington, OH - $2 Original Fr. 389 The Fayette County NB Ch. # 1972 Serial Number 1 PMG Very Fine 25 Net Charlotte, NC - $5 1875 Fr. 401 The Merchants & Farmers NB Ch. # 1781 From the Tar Heel Collection Dual Denomination Fr. 2071-K $20/$10 1974 Federal Reserve Note PMG Choice Uncirculated 64 EPQ Bahamas Government $100 L. 1965 Pick 25a Serial Number A000081 Venezuela Banco de Maracaibo 50 Bolivares 188_ (circa 1889) Pick S201s Specimen PMG Choice About Uncirculated 58 North Carolina April 4, 1748 9s From the Tar Heel Collection U.S. & WORLD CURRENCY AUCTIONS April 27-May 3, 2016 | Chicago | Live & Online Contact a Heritage Consignment Director today: 800-872-6467 ext. 1001 Paul R. Minshull IL #441002067; Heritage Auctions #444000370. BP 17.5%; see HA.com. 40570 Now Accepting Consignments for our Official 2016 Central States Auctions Deadline: March 7 Selected Highlights Already Consigned Visit HA.com/3544 to view the catalog and place bids online beginning early April. THE WORLD’S LARGEST NUMISMATIC AUCTIONEER DALLAS | NEW YORK | BEVERLY HILLS | SAN FRANCISCO | CHICAGO | PARIS | GENEVA | AMSTERDAM | HONG KONG Always Accepting Quality Consignments in 40 Categories Immediate Cash Advances Available 950,000+ Online Bidder-Members