Paper Money - Vol. LVII, No. 5 - Whole No. 317 - September/October 2018

Paper Money Vol. LVII, No. 5, Whole No. 317 www.SPMC.org September/October 2018 Official Journal of the Society of Paper Money Collectors Territorial National Bank Notes 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 ? 949.253.0916 123 West 57th Street, New York, NY 10019 ? 212.582.2580 Info@StacksBowers.com ? StacksBowers.com California ? New York ? New Hampshire ? Hong Kong ? Paris SBG PM Oct2018 And3/Caine 180802 America?s Oldest and Most Accomplished Rare Coin Auctioneer Stack?s Bowers Galleries is Pleased to Present Paper Money Highlights from the October 2018 Baltimore Auction Auction: October 24-26, 2018 | Consign U.S. Currency by August 28, 2018 Contact us for more information today! 800.458.4646 West Coast ? 800.566.2580 East Coast ? www.StacksBowers.com Fr. 337b (W-3616). 1878 $100 Silver Certificate. PCGS Currency Very Fine 25. Fr. 379a (W-4580). 1890 $1000 Treasury Note. PCGS Currency About New 50. Fr. 1215d (W-4206). 1882 $500 Gold Certificate. PCGS Currency Very Fine 35. Types of Fr. 183. 1862 $500 Legal Tender Notes. Face and Back Proofs. PCGS Currency Very Choice New 64 and Very Fine 25. Fr. 188 (W-4970). 1878 $5,000 Legal Tender Note. PCGS Currency Very Fine 25. Specimen. Fr. 212e-I (W-3305). 1865 $100 Interest Bearing Note. PCGS Currency Very Fine 25. Fr. 213 (W-1510). 1879 $10 Refunding Certificate. PCGS Currency Choice About New 58 PPQ. The Joel R. Anderson Collection of United States Paper Money Part III The Caine Collection of Federal Proofs and Essays The Caine Collection of Federal Proofs and Essays is the most diverse to have been formed since the Schermerhorn holdings. It includes incredible rarities, many of which are unique and have not been available publicly for decades. World class pedigrees are the norm and the catalog promises to become a standard reference for this numismatic specialty. Types of Fr. 1160-1166. 1870 $50 & $100 National Gold Banknotes. Boston, Massachusetts. Kidder National Gold Bank, Charter #1699. Face Specimens. PCGS Currency Gem New 65 PPQ. Fr. Unlisted. ND (186x) $5 Demand Note. Essay Face Proof. PCGS Currency Very Choice New 64. Fr. 2412. 1934 $10,000 Gold Certificate. Face Specimen Proof. PCGS Currency New 60. 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 withoutwrittenapproval 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. PAPER?MONEY? Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LVII, No. 5 Whole No. 317 September/October 2018 ISSN 0031-1162 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. Manuscripts should be submitted in WORD format via email (smcbb@sbcglobal.net) or by sending memory stick/disk to the editor. Scans should be grayscale or color JPEGs at 300 dpi. Color illustrations may be changed to grayscale at the discretion of the editor. Do not send items of value. Manuscripts are submitted with copyright release of the author to the Editor for duplication and printing as needed. ADVERTISING Alladvertising onspaceavailable basis. Copy/correspondence shouldbesent toeditor. Alladvertisingis payablein advance. Allads are acceptedon a ?good faith?basis. Terms are?Until Forbid.? Adsare Run of Press (ROP) unlessaccepted on a premium contract basis. Limited premium space/rates available. To keep rates to a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork, or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability, copy must be received by the editor no later than the first day of the month preceding the cover date of the issue (i.e. Feb. 1 for the March/April issue). Camera ready art or electronic ads in pdf format are required. ADVERTISING RATES Space 1 Time 3 Times 6 Times Fullcolor covers $1500 $2600 $4900 B&W covers 500 1400 2500 Fullpagecolor 500 1500 3000 FullpageB&W 360 1000 1800 Halfpage B&W 180 500 900 Quarterpage B&W 90 250 450 EighthpageB&W 45 125 225 Required file submission format is composite PDF v1.3 (Acrobat 4.0 compatible). If possible, submitted files should conform to ISO 15930-1: 2001 PDF/X-1a file format standard. Non-standard, application, or native file formats are not acceptable. Page size: must conform to specified publication trim size. 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 materialoreditcopy. 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. Benny Bolin, Editor Editor Email?smcbb@sbcglobal.net Visit the SPMC website?www.SPMC.org Territorial National Bank Notes Peter Huntoon ............................................................... 292 Arkadelphia Exchange Charles Derby. .............................................................. 310 Sherlock Holmes and the ABNCo. Mystery Greg Ruby .................................................................... 318 Townsend Test Scrip Loren Gatch ...................................................................... 326 Banknotes of Zambia and Malawi Carlson Chambliss ...................................................... 336 Wait 2389?End of the Obsolete Era in N.J. David Gladfelter .......................................................... 343 Uncoupled?Joe Boling & FredSchwan????????..?345 Cherry Pickers Corner?Robert Calderman ....................... 352 Quartermaster Column?Michael McNeil ............................ 355 Small Notes?Series 1934A $20 Philadelphia FRNs ........... 357 Obsolete Corner--Robert Gill ................................................ 359 Chump Change--Loren Gatch ............................................... 361 Presiden/Editor Message .................................................... 362 New Members ....................................................................... 363 Money Mart .............................................................................. 364 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 289 Society of Paper Money Collectors Officers and Appointees ELECTED OFFICERS: PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 VICE-PRESIDENT--Robert Vandevender II, P.O. Box 2233, Palm City, FL 34991 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 Robert Calderman, Box 7055 Gainesville, GA 30504 Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Loren Gatch 2701 Walnut St., Norman, OK 73072 Joshua T. Herbstman, Box 351759, Palm Coast, FL 32135 Steve Jennings, 214 W. Main, Freeport, IL 61023 J. Fred Maples, 7517 Oyster Bay Way, Montgomery Village, MD 20886 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Wendell A. Wolka, P.O. Box 5439, Sun City Ctr., FL 33571 APPOINTEES: PUBLISHER-EDITOR--Benny Bolin, 5510 Springhill Estates Dr. Allen, TX 75002 ADVERTISING MANAGER--Wendell A. Wolka, Box 5439 Sun City Center, FL 33571 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln.,ssex, 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--Pierre Fricke WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 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 i s held in June at the International Paper Money Show. 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 treasurer. Pierre?Fricke?Buying?and?Selling!? 1861?1869?Large?Type,?Confederate?and?Obsolete?Money!? P.O. Box 1094, Sudbury, MA 01776 ; pierrefricke@buyvintagemoney.com; www.buyvintagemoney.com And many more CSA, Union and Obsolete Bank Notes for sale ranging from $10 to five figures ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 290 Contact Nina@Kagins.com or call 888.8Kagins to speak directly to Donald Kagin, Ph.D. for a FREE Apraisal! Register to Bid for Kagin?s West Coast Aucti on YOU MUST RESERVE to get your free catalog: online: kagins.com by phone: 888-852-4467 or e-mail: Nina@kagins.com Experience the Kagin?s Di erence: ? NO RESERVE AUCTION ? 1% credit back on all purchases through the KAGIN?S AUCTION LOYALTY PROGRAM TM ? Free memberships in the ANA and a number of coin clubs and associations ? Free references works to successful buyers of certain types of coins ? Free grading initiatives for consignors and buyers from NGC and PCGS ? Now accepting Bit Coins (1% processing fee) Highlights Include: ? U.S. Colonial Coins ? U.S. Federal copper, silver, gold, commemoratives ? S.S. Central America Gold Ingot and nuggets ? U.S. Tokens, Medals, So-Called Dollar Exonumia including Bryan Money, Hawaiiana, and match safes ? Pioneer and California Fractional Gold ? Mormon Coins and Currency Collection ? Emperor Norton Note ? U.S. and Fractional Currency ? Error Currency ? Gold Rush Financial Documents ? Confederate Currency All lots are Unreserved September 21, 2018 ? CoinExpo Santa Clara Conventi on Center ? Santa Clara, California Mormon Coin & Currency Collection SSCA Kellogg & Humbert Ingot Emperor Norton Note So Called Dollar Collection Americana and Exonumia U.S. Federal Coinage Fractional Currency Collection Gold Rush Documents Oak Tree 3d Colonial Pioneer and California Gold Kagins-PM-WCA-Bid-Ad-08-14-18.indd 1 8/15/18 12:25 PM Territorial National Bank Notes INTRODUCTION When I used to look from my house across the scores of miles of unobstructed vistas that comprised the Laramie Basin of Wyoming, I could imagine the hopes of the pioneers who crossed here on the Overland Trail in the 1860s. Transportation was arduous, Indians a threat, and the unknown over the next hill a constant anxiety. Yet the adventurous pressed on. They were seeking opportunity and many wanted elbow room. They found both, and they also found strength that only successfully living on the edge can provide. The territorial nationals created by their dreams and labors are a small but very significant testament to their passing. Territorial notes occupy an exalted position in desirability and rarity among national bank note collectors. The special allure of the western territorials is tribute to the concept of a frontier. The island territorials conger up romantic visions of exotic tropical paradises. The territories and possessions containing banks that issued national bank notes are listed on Table 1. The primary purposes of this article are to define exactly what constitutes a territorial note, and to explain what happened to the territorial plates and unissued territorial notes in the Comptroller of the Currency?s inventory once the territorial period ended. It will be demonstrated that upon admission to statehood, the protocol for handling territorial plates changed in 1889 from their continued use to altering them into state plates. The peculiarities involved with labeling found on some territorial notes will be addressed. MANIFEST DESTINY Westward expansion of the United States across the continent Figure 1. Note signed by Chauncey B. Root and Edward Ivinson that passed through the doors of the bank illustrated on Figure 3. Figure 2. Edward Ivinson. The Paper Column by Peter Huntoon ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 292 was rapid. It was as if the original 13 states were situated adjacent to a void, so people rushed to fill it. By the early 1800s, our emerging culture elevated the conquest of the west to a right. The western lands were viewed as a gift that were open to hard working people willing to secure them with their labor. The Federal government facilitated the expansion by securing title to the lands from England, France, Russia, Spain and various Indian tribes through treaties, purchases, annexations and wars. All the institutions of the government, capitalism and religion were bent to accomplish the task. Immigrants came from all over to take advantage of the opportunity presented, but most were from Europe, most were Caucasian, and most were Christian. The emerging doctrine found voice in editor John O?Sullivan in the July-August 1845 issue of the Democratic Review (De Voto, 1943) who was writing in support of the annexation of Texas from Mexico during the administration of James Polk. In his words, it was ?our manifest destiny to overspread the continent allotted by Providence for the free development of our yearly multiplying millions.? This lofty prose resonated with the expansionists, particularly because it made clear that God had provided the opportunity and, by implication, sanctioned the enterprise. Manifest destiny was quickly recast in more eloquent form through the crucial addition of a bit of the flag as ?It is the country?s manifest destiny Table 1. Dates of organization and dates of statehood for territories containing banks that issued national bank notes. Date of Organic Act Date of Change Territory or Date of Organization in Status New Status Alaska, District May 17, 1884 Aug 24, 1912 territory Alaska Aug 24, 1912 Jan 3, 1959 49th state Arizona Feb 24, 1863 Feb 14, 1912 48th state Colorado Feb 28, 1861 Aug 1, 1876 38th state Dakota Mar 2, 1861 Nov 2, 1889 39th & 40th state Hawaii Apr 30, 1900 Aug 21, 1959 50th state Idaho Mar 3, 1863 Jul 3, 1890 43rd state Indian May 2, 1890 Nov 16, 1907 part of 46th state Montana May 26, 1864 Nov 8, 1889 41st state Nebraska May 30, 1854 Mar 1, 1867 37th state New Mexico Sep 9, 1850 Jan 6, 1912 47th state Oklahoma May 2, 1890 Nov 16, 1907 part of 46th state Puerto Rico Dec 10, 1898 Jul 25, 1952 commonwealth Utah Sep 9, 1850 Jan 6, 1896 45th state Washington Mar 2, 1853 Nov 11, 1889 42nd state Wyoming Jul 25, 1868 Jul 10, 1890 44th state Figure 3. The Wyoming National Bank of Laramie City, Wyoming Territory (2110), taken about 1875, 15 years before statehood. Photo courtesy of the American Heritage Center, University of Wyoming. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 293 to overspread and to possess the whole of the continent which Providence has given us for development of the great experiment of liberty.? What is astonishing is that the 48 contiguous states were fully settled within the next 50 years. The last of the territories established to prepare those lands for statehood completed the job on February 14, 1912, with the admission of Arizona to the union. The expansionists saw the end coming before the turn of the century, so many set their sights beyond our borders. It was an easy leap to extend the vision of manifest destiny to colonial aspirations. The purchase of Alaska in 1867 launched this movement. We annexed Hawaii by a contrived invitation and then quickly took several Caribbean and Pacific islands from Spain as booty from the Spanish- American War of 1898. As the west opened, on the one hand there were vast natural resources to be exploited, on the other there were Native Americans who came with the land. The indigenous people didn?t find the doctrine of manifest destiny appealing, but then they had no voice in its formulation. Zealous Americans attempted to maintain as clear a conscious as possible. They rationalized that they were justified in their conquests because the opportunity to acquire new land that Providence was providing to them was also obligating them to impart the benefits of civilization, Christianity and liberty on the savage heathens they were overrunning. Similar sanctimonious sentiments were voiced as the country geared up to become a colonial power. In fact, the presence of ubiquitous indigenous populations was not a major concern to colonists. By the 19th century, sociologists had a long record of European experience with the impacts of colonization on natives, and it demonstrated that room was created for the newcomers. Stated succinctly, ?it was axiomatic that aborigines perished before the march of civilization? (Lee, 1966, p. 172). The American experience was an approximate 90 percent dieback of the pre-contact populations. The culprits on the American continent were disease and genocide, whereas disease prevailed in Hawaii. Hawaii affords an excellent closed system where population statistics are available, albeit imperfect, to observe this phenomenon, and where adequate records document the causes. The following discussion is summarized from Lee (1966) and Wright (1972). Captain James Cook, upon finding the islands in 1778, estimated the native population at 300,000 to 400,000, figures viewed by most historians as over estimates. In 1823, missionaries estimated the population at 142,050. By the 1850s the population had dwindled to 70,000; in 1900 it was less than 30,000. Notice, the 1900 population was about ten percent of the low pre-contact estimate. The official census in the late 1930s reveals that there were 21,000 full-blooded Hawaiians, 40,000 Figure 4. Engraving by Robert Hinschelwood used on a $100 Spanish-American War Bond. Figure 5. Our turn of the century stamps reflected our budding colonial aspirations, an international extension of manifest destiny. Porto Rico, Cuba, Guam and the Philippines were added through the Spanish-American War, with Guam and the Philippines providing the contemplated Hawaii-Wake-Guam-Philippine chain of naval coaling stations needed to reach our Asian toehold in Shanghai, China. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 294 part-Hawaiians, 155,000 Japanese, 52,000 Filipinos, 29,000 Chinese, 7,000 Koreans, 30,000 Portuguese, 8,000 Puerto Ricans, 68,000 Caucasians, and 5,000 other. The grand total in the 1930s was 415,000, or a population somewhat above Cook?s high estimate. The dieback of Hawaiians did indeed created space for their successors, and none of them had to be shot as on the mainland. How did this happen? Captain Cook?s crew left syphilis, the first major killer. Cholera or bubonic plague arrived in 1800, peaking in 1805 with a loss of half the population; syphilis continued unchecked. Missionaries reported that in the early 1800s, the population was so debilitated by disease, the people were incapable of caring for their young, so infanticide became widespread. Epidemics of dysentery, measles, whooping cough and influenza hit in 1848. Smallpox arrived in 1852 killing 10,000, followed by notable additional outbreaks in 1861, 1873 and 1882. By mid-century, the native population was so debilitated, the colonial sugar plantation owners were forced to import laborers from anywhere they could find them. This accounts for the Japanese, Filipinos, Chinese, Koreans, Portuguese and Puerto Ricans in the 1930 census. The Chinese brought leprosy to the islands in 1852, which caused serious havoc among the Hawaiians. Wright (1972, p. xiv) summed it up: ?Tourists come to Hawaii to bask in tropical sunshine and absorb the romantic glamour of this Paradise of the Pacific, untroubled by what had happened to the Hawaiians who used to own the place.? WHAT IS A TERRITORIAL? A territorial national bank note is any note that carries the designation Territory, Terr., Ter. or T. within its title block. The following were territorial plates that did not carry a territory label despite the fact that the bankers used ?Territory? on their Organization Certificates. The notes correctly carry territorial plate dates. Ch. Location Bank Series Plate 1417 Nebraska Nebraska City The Otoe County National Bank of Orig 10-10-10-20 4862 Oklahoma Oklahoma City The State National Bank of Oklahoma City 1882BB 10-10-10-20 5117 Alaska Juneau The First National Bank 1902PB 10-10-10-20 Of course, the notes printed from them qualify as territorials. Similarly, the territory label was omitted from the overprints on the Series of 1929 issues from Alaska and Hawaii. They too are territorials. Last, but not least, how should notes from the District of Alaska and Island of Puerto Rico be classified? They are not territorials. They are grouped here with their territorial cousins because those remote lands did not possess the status of states. Post-statehood printings and issuances of territorial notes occurred. Notes continued to be printed from Nebraska and Colorado territorial plates for years after statehood. Similarly, existing stocks of territorial notes in the Comptroller of the Currency?s inventory continued to be sent to banks following statehood until those stocks were depleted. The rule of thumb is that if a territorial location is specified on Figure 6. The First National Bank of Hawaii at Honolulu was the largest territorial bank and now accounts for a quarter of the reported large size territorial notes. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 295 the note, it is considered a territorial no matter when it was printed or shipped to the bank POST-STATEHOOD PRINTINGS Existing Nebraska and Colorado territorial plates continued to be used long after statehood. It is apparent that no one in the Department of the Treasury involved with the issuance of national bank notes viewed territory labels on the notes as a problem at the time those states were admitted. Nebraska became a state on March 1, 1867. However, as shown on Table 2, printings continued to be made from all the territorial plates after statehood, including Series of 1875 printings. A total of 162,140 Nebraska territorials were printed. Of the 155,232 actually issued, only 43,400 were printed before statehood, meaning that 72 percent of those issued were printed after statehood. An extreme example is the 20-20-20-50 combination for The First National Bank of Omaha. Of the 1,300 Original Series territorial sheets issued, only the first 100 were printed before statehood! Nebraska territorials were being printed as late as February 1885 from the Series of 1875 10-10- 10-20 plate for The Otoe County National Bank of Nebraska City (1417). The last were sent to the bank in May 1885, 18 years after statehood. The Original Series 5-5-5-5 plate for Omaha (1633) was the only Nebraska Territory plate that was altered into a state plate, an event that occurred in 1874. Territorial printings had been made from the plate as late as 1870. Probably its alteration was triggered by the fact that the bankers placed an order for 1-1-1- 2 and 20-20-20-20 plates then and someone thought it desirable to bring the labeling on the old 5-5-5-5 plate into conformity with the state labels on the new plates. It was the first time a territory to state alteration was carried out, but it was a one-off event. Currently there are eight reported Nebraska territorial notes, representing a survival rate of 1 per 19,404 issued. Three of the eight were printed after statehood. Figure 7. Title blocks from proofs from the three territorial plates that carried no territorial label. Notice that the plate dates on each are territorial dates. Notes from the plates, of course, qualify as territorials. National Numismatic Collection photo. Figure 8. Ultra-rare Nebraska territorial that was only the third reported when I bought it from Hal Birt (Glass Shoppe Coins) in Tucson in 1975. It was printed in 1875, eight years after statehood, and was in the last shipment of 1-1-1-2s sent to the bank on July 26, 1875. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 296 Table 2. Listing of the Original Series and Series of 1875 territorial and state sheets issued by the three Nebraska banks that were chartered during the territorial period. All serial numbers are sheet numbers. Last Printed Before Last Combination Plate Date Deliveries to Comptroller 3/1/67 Printed Shipments to Bank Issued (209) The First National Bank of Omaha Territory: Original Series 1-1-1-2 Jan 2, 1865 Jan 16, 1866-May 31, 1873 3000 8400 Jan 20, 1866-Feb 26, 1874 1 - 8400 5-5-5-5 Feb 20, 1864 Apr 11, 1864-May 21, 1873 2000 5425 Apr 13, 1864-Mar 19, 1874 1 - 5425 10-10-10-10 Feb 20, 1864 Jul 19, 1866-Jul 15, 1875 600 2050 Jul 24, 1866-Jun 3, 1876 1 - 2050 20-20-20-50 Feb 20, 1864 Jul 19, 1866-Jul 15, 1875 100 1300 Jul 24, 1866-Oct 3, 1876 1 - 1300 Series of 1875 5-5-5-5 Feb 20, 1864 Apr 19, 1881 500 none none 10-10-10-10 Feb 20, 1864 Nov 1, 1876-Apr 18, 1881 2500 Nov 25, 1876-May 11, 1881 1 - 2090 (no shipments to bank after July 14, 1877, until 501-2090 sent on May 11, 1881) 20-20-20-50 Feb 20, 1864 Mar 10, 1877-Apr 15, 1881 1250 Mar 22, 1877-May 11, 1881 1 - 1245 (1417) The Otoe County National Bank of Nebraska City Territory: Original Series 1-1-1-2 Aug 15, 1865 Nov 23, 1866-Jul 26, 1875 1500 4800 Dec 10, 1866-Aug 2, 1878 1 - 4800 5-5-5-5 Sep 1, 1865 Nov 7, 1865-Jan 13, 1875 500 1350 Nov 14, 1865-Apr 28, 1875 1 - 1350 10-10-10-20 Sep 1, 1865 Dec 12, 1865-Jul 1, 1875 400 1900 Dec 18, 1865-Aug 7, 1875 1 - 1900 (no territory label on plate) Series of 1875 1-1-1-2 Aug 15, 1865 Jan 14, 1876-Oct 29, 1878 800 Aug 2, 1878-Nov 21, 1878 1 - 360 5-5-5-5 Sep 1, 1865 Nov 3, 1875-Mar 9, 1881 1700 Nov 6, 1875-Apr 25, 1885 1 - 1399 10-10-10-20 Sep 1, 1865 Oct 6, 1875-Feb 25, 1885 1560 Oct 6, 1875-May 15, 1885 1 - 1489 (no territory label on plate) (1633) The Omaha National Bank Territory: Original Series 5-5-5-5 Feb 14, 1866 Mar 6, 1866-Nov 14, 1870 2750 7000 Mar 15, 1866-May 12, 1875 1 - 7000 State: Original Series 1-1-1-2 Jan 15, 1874 Jan 19, 1874-Jan 26, 1874 2000 Mar 19, 1874 only 1 - 2000 5-5-5-5 Jan 15, 1874 Jan 14, 1874 only 7750 May 12, 1875-Sep 25, 1883 7001 - 7750 20-20-20-20 Jan 15, 1874 Jan 15, 1874-May 3, 1875 2250 Mar 19, 1874-Aug 7, 1879 1 - 2250 Series of 1875 5-5-5-5 Jan 15, 1874 Sep 3, 1879-Aug 1, 1884 175 Oct 16, 1883-Dec 8, 1885 1 - 171 Figure 9. Notice ?Neb. Ter.? in the script postal location and the territorial plate date. National Numismatic Collection photo. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 297 PLATE ALTERATION POLICY A policy was adopted in 1889 during the tenure of Comptroller of the Currency Edward Lacey whereby existing territorial plates were altered into state plates upon admission. The admissions of North and South Dakota, Montana, Washington, Idaho and Wyoming produced a flood of such alterations in 1889 and 1890. The altered plates carried statehood day as their plate date. This practice was followed from then on. Some Series of 1875 Colorado Territory plates were still in use in 1890, so the Comptroller?s clerks ordered that they be altered into a state form along with additional printings when unissued stocks of sheets from them became depleted. Oddly, the plate date used on the altered plates was arbitrarily chosen as February 1, 1890, instead of reaching back to August 1, 1876, which was Colorado statehood day. Five plates for five banks were thereby altered, See Table 3. The first was the 5-5-5-5 Series of 1875 for The First National Bank of Colorado Springs (2179) certified March 26, 1890. The last was the 5- 5-5-5 Series of 1875 for The First National Bank of Central City (2129) certified January 17, 1893. Ironically, the state plates for the 39 banks chartered in Colorado between 1876 and 1889, carried plate dates that predate February 1, 1890. These include Series of 1875 plates for charters 2351 through 2694, and Series of 1882 plates for charters 2930 through 4172. The earliest were the plates for The German National Bank of Denver (2351) that were dated 1876. Surviving Series of 1875 Colorado state notes are about five times rarer than Original/1875 Colorado territorial notes. Figure 10. $10 Series of 1875 proof from the 10-10-10-10 plate for The Stockgrowers National Bank of Pueblo, Colorado Territory (2310). Colorado was admitted August 1, 1876, yet the last printing from this territorial plate was received at the Comptroller?s office on August 26, 1884, eight years after statehood. The plate was then altered into a state plate in 1890. National Numismatic Collection photo. Figure 11. Notice the Feb. 1, 1890 plate date used when this Colorado Territory plate was altered into a state plate. National Numismatic Collection photo. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 298 Table 3. Colorado Territory plates that were altered into state plates, sheet serials issued from each, and the dates when the state versions of the plates were certified for use. * = altered plate was E-F-G-H, others were A-B-C-D. Date State Sheet Serials Issued Plate Certified (1833) First National Bank of Pueblo Series of 1875 5-5-5-5 territory* 1 - 12750 5-5-5-5 state 12751 - 12899 Jun 28, 1890 (2129) First National Bank of Central City Series of 1875 5-5-5-5 territory* 1 - 9050 5-5-5-5 state 9051 - 9105 Jan 17, 1893 (2173) First National Bank of Colorado Springs Series of 1875 5-5-5-5 territory 1 - 4975 5-5-5-5 state 4976 - 6428 Mar 26, 1890 (2300) First National Bank of Trinidad Series of 1875 5-5-5-5 territory 1 - 7225 5-5-5-5 state 7226 - 8761 Apr 10, 1891 (2310) Stockgrowers National Bank of Pueblo Series of 1875 10-10-10-10 territory 1 - 1750 10-10-10-10 state 1751 - 2866 Oct 18, 1890 POST-STATEHOOD SHIPMENTS The transitions from territory to state were treated as title changes within the Comptroller?s office. It was the policy of the office to issue old-title sheets until they were depleted before sending sheets with the new title. Consequently, territorial sheets were sent to the banks until supplies ran out, the banks went out of business or the bank?s charters were extended. Arizona nicely illustrates the impact on survivability of territorial notes printed before but shipped after statehood. A total of 365,494 Arizona territorials were issued and 44,790 of those were shipped after statehood. Those sent after Arizona was admitted February 14, 1912, represent a little over 12 percent of the total. Table 4 contains a complete list of them. Figure 12. Territorials were sent to the banks after statehood until supplies were exhausted. Series of 1902 10-10-10-20 date back sheets 187 to 460 for this Tombstone bank continued to be shipped until June 29, 1915, more than three years after statehood. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 299 Table 4. Arizona territorial national bank notes shipped to the banks after statehood. Statehood day was February 14, 1912. Ch. Town Bank Series Sheet Comb. Bank Serials Notes Last Shipment 3728 Phoenix NB of Arizona 02DB 10-10-10-20 3405-5300 7584 Mar 19, 1913 4287 Tucson Consolidated NB 02DB 10-10-10-20 250-1000 3004 Apr 17, 1913 02DB 50-100 560-740 362 Jun 1, 1917 4440 Tucson Arizona NB 02DB 10-10-10-20 462-1500 4156 Jun 27, 1914 4729 Phoenix Phoenix NB 82DB 10-10-10-20 3683-3766 336 Feb 24, 1912 4851 Prescott Prescott NB 82DB 5-5-5-5 3792-4500 2836 Oct 30, 1912 82DB 10-10-10-20 2549-3200 2608 Oct 30, 1912 5720 Tempe Tempe NB 82DB 10-10-10-20 295-910 2464 Jan 10, 1916 5821 Clifton First NB 82DB 10-10-10-20 936-1250 1260 Feb 6, 1913 6439 Tombstone First NB 02DB 10-10-10-20 187-460 1096 Jun 29, 1915 6579 Globe First NB 02DB 10-10-10-20 3942-5300 5436 May 8, 1913 6591 Nogales First NB 02DB 10-10-10-20 1692-2240 2196 Mar 26, 1913 6633 Douglas First NB 02DB 5-5-5-5 1616-2583 3872 Sep 6, 1913 02DB 10-10-10-20 916-1700 3140 Jan 28, 1914 7591 Yuma First NB 02DB 10-10-1020 1441-2000 2240 Feb 13, 1913 9608 Yuma Yuma NB 02DB 10-10-10-20 2051-2600 2200 Dec 21, 1912 In general, the smaller the bank?s circulation, the longer it took to use up existing territorial stocks. The small Tempe (5720) and Tombstone (6439) banks followed this trend. Their last territorial shipments were sent on January 10, 1916 and June 29, 1915, respectively. The First National Bank of Tempe (5720) maintained a very modest circulation through the large note era so the few sheets printed for the bank went a long way. Two-thirds of the Series of 1882 date back territorials printed for the bank arrived after statehood! The last shipment of Arizona territorials consisted of Series of 1902 date back $50s and $100s for The Consolidated National Bank of Tucson (4287) in 1917. The bank began using them in 1910 and received shipments concurrently with 10-10-10-20 sheets until February 28, 1913. By then 589 50-100 sheets had been received. The bankers ceased using high denominations in 1913 and didn?t resume their use until 1916. A total of 740 territorial Series of 1902 date back 50-100 sheets had been printed for the bank, so the Comptroller sent the remaining sheets, serials 590 through 740, beginning November 14, 1916 and ending June 1, 1917. No $50 or $100 state notes were printed for the bank thereafter, or for any other Arizona bank for that matter. One of the Consolidated 1902DB $50s is known to have survived, A331350-512-A. It is shown on the Comptroller?s ledger to be the only outstanding $50 from all the $50 Series of 1882 brown back and Series of 1902 date back notes issued from the bank. A total of 44 Arizona territorials have been reported at this writing. Six, or 14 percent, were shipped after statehood. They were the following. Den Series Town Ch No Serial Date Shipped 10 1902DB Tucson 4440 X609113-827-A Jan 29, 1913 20 1902DB Tucson 4440 X609180-894-A Mar 31, 1913 5 1882DB Prescott 4851 H659138-3951-E Apr 27, 1912 10 1902DB Tombstone 6439 M280512-221-E Jul 23, 1912 10 1902DB Tombstone 6439 Y495102-438-D Apr 6, 1915 10 1902DB Nogales 6591 B714200A-1949-D Aug 7, 1912 ALASKA SEWED CONFUSION Alaska remains special. It had two organic acts. The first on May 17, 1884 created the District of Alaska. The second on August 24, 1912 established the Territory of Alaska. However, the reality is that the national bank notes issued by the three Alaska national banks often carried the wrong designation for the place at the time they were printed. The First National Bank of Juneau (5117) was organized in 1898 during the district period, yet its ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 300 Series of 1882 notes carried a territory label because that is how its organizers filled out their organization certificate. Ironically, through serendipity, the territory labels on the Series of 1882 notes for the bank self- corrected in 1912 when Alaska was designated a territory. It turned out that the 10-10-10-20 Series of 1882 Juneau plate was the only Alaska Territory plate that was made. When the corporate life of The First National Bank of Juneau was extended in 1918, Alaska was a territory but the new Series of 1902 10-10-10-20 plate made for it simply read Alaska. The second bank chartered in Alaska was The First National Bank of Fairbanks (7718) during 1905. It was organized during the district period, which was correctly noted by its organizers, so its Series of 1902 plates were correctly labeled as such. However, those plates were not altered to reflect Alaska?s new status as a territory in 1912, so the Series of 1902 notes printed thereafter were technically mislabeled. No territory label appeared on the Series of 1929 issues for Juneau, Fairbanks or Ketchican, the three Alaska banks that issued that series. Omission of territory from them was an editing prerogative exercised by the clerks in the Comptroller of the Currency?s office. STATE TITLES The officers for seven territorial banks selected ?The State National Bank of? for their title. Obviously, they were anxiously anticipating admission. They were: Indian: South McAlester 5537 The State National Bank of New Mexico: Albuquerque 7186 The State National Bank of Artesia 9468 The State National Bank of Figure 13. The word Territory was omitted from the overprints on the Series of 1929 notes printed for the Alaska and Hawaii territories. Figure 14. A few optimist bankers eager for their locations to gain statehood organized under State National Bank titles. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 301 Oklahoma: Oklahoma City 4862 The State National Bank of Shawnee 6416 The State National Bank of Blackwell 7583 The State National Bank of Wanette 8304 The State National Bank of The handling of the Series of 1882 10-10-10-20 plate for The State National Bank of Oklahoma City was exceptional because the notes printed from it did not carry a territorial label. GREAT NOTES THAT WEREN?T Note-issuing national banks could have been established anywhere in the United States or its possessions. Beyond the contiguous 48 states, only Alaska with three banks, Hawaii with six, and Puerto Rico with one, were chartered. Numerous entrepreneurs began the process of organizing banks under national charters during the glory days of the American colonial period during the first decade of the 20th Century. The following are titles reserved during that period by organizers who never completed the process (Comptroller of the Currency, 1901-1908 and various dates). Alaska: The First National Bank of Cape Nome The First National Bank of Valdez Cuba: The First National Bank of Cardenas The First National Bank of Havana The United States National Bank of Havana The First National Bank of Santiago Hawaii: The First National Bank of Hilo The Kohala National Bank The First National Bank of Lihue Panama: The United States National Bank of Colon The First American National Bank of Panama The First National Bank of Panama The United States National Bank of Panama The Panama Canal National Bank of Panama City Philippine Islands: The First National Bank of Manila The United States National Bank of Manila Porto Rico: The Humacas National Bank The First National Bank of Mayaguez The American National Bank of Ponce The First National Bank of Ponce The First National Bank of Ponce de Leon, Ponce The Ponce National Bank The United States National Bank of Ponce de Leon The American National Bank of San Juan The First National Bank of San Juan The National Bank of Commerce of San Juan The Porto Rico National Bank of San Juan The San Juan National Bank The West Indian National Bank of San Juan The ?Virgin Islands National Bank? at St. Thomas (14335) was organized April 15, 1935 and chartered April 30. Its charter was only 15 beyond the last to issue Series of 1929 national bank notes! ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 302 OVERVIEW A total of 609 territorial or possession banks were chartered during the note issuing era. Three did not issue: Tulsa, IT (7085), Comanche, IT (8361) and Schofield Barracks, HT (11050). The two Indian Territory banks were chartered respectively on January 4, 1904 and September 12, 1906. Each liquidated within a few weeks. The Schofield Barracks bankers declined to exercise their note-issuing privilege. The net result was 606 issuing territorial banks, 605 of which issued large size notes and four of which issued small size. The First National Bank of Ketchikan, AK (12578) received only Series of 1929 notes. Table 5 is a list of all the territorial banks that moved, experienced town name changes, or obtained title changes. These added additional towns and titles to the territorial stable. The 606 issuing banks received from the Comptroller of the Currency 5,905,794 large size and 898,890 small size territorials. The face value of the large notes was $55,677,300 and that of the small notes $9,315,430. Such numbers seem impressive but sink into insignificance if contrasted with the issuances from a few of the largest mainland metropolitan banks. The total number of territorial notes sent to the various territories seem to indicate that there should be enough of them to go around. However, most in those totals were replacements for earlier territorials that wore out in circulation. The fact is that surviving territorial notes from most of the issuing banks represent genuine numismatic rarities. There was only one truly large territorial issuer and that was The First National Bank of Hawaii at Honolulu, which underwent two title changes during the Series of 1929 era. It alone accounts for over a quarter of the reported large size territorials and well over 95 percent of the small size territorials. The remaining notes in the territorial census are spread thinly over the remaining 605 banks from virtually unheard-of places such as Bisbee, Arizona Territory; Mayville, Dakota Territory; Prior Creek, Indian Figure 15. Fort Sill was established in 1869 north of what became Lawton, which was opened to settlement on August 6, 1901. The bankers who organized The First National Bank of Fort Sill in March 1901 quickly renamed their bank The City National Bank of Lawton five months later. National Numismatic Collection photos. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 303 Territory; and Texico, New Mexico Territory. The fact is that no territorial notes have been found from more than half the issuers. Table 5. Territorial banks that experienced moves, town name changes and bank name changes. The date when the new title was approved by the Comptroller of the Currency is listed. Moves or town name changes: Indian 5052 South McAlester The First National Bank of McAlester The First National Bank of May 24, 1906 5404 Oakland The Cotton National Bank of Madill The First National Bank of Jan 29, 1901 6804 Spokogee The First National Bank of Dustin The First National Bank of Feb 18, 1905 New Mexico 8617 Sunnyside The First National Bank of (did not issue) Fort Sumner The First National Bank of Oct 8, 1907 8662 Engle The First National Bank of (did not issue) Cutter The First National Bank of Sep 7, 1907 Oklahoma 5753 Fort Sill The First National Bank of Lawton The City National Bank of Aug 3, 1901 6113 Leger The First National Bank of Altus The First National Bank of Aug 9, 1904 7159 Leger The Altus National Bank of Altus The Altus National Bank of Feb 24, 1905 Washington 2924 New Tacoma The Tacoma National Bank of Tacoma The Tacoma National Bank of May 12, 1887 Bank name changes: Arizona 6591 Nogales The Sandoval National Bank of The First National Bank of Dec 16, 1903 Hawaii 5550 Honolulu The First National Bank of Hawaii at Bishop First National Bank of July 6, 1929 Bishop National Bank of Hawaii at Nov 3, 1933 Indian 5404 Oakland The Cotton National Bank of Madill The First National Bank of Jan 29, 1901 5950 Wapanucka The Farmers National Bank of The First National Bank of Apr 20, 1903 6171 Lindsay The Citizens National Bank of The First National Bank of Apr 24, 1903 6928 Durant The Choctaw-Chickasaw National Bank of The Farmers National Bank of Sep 8, 1905 Montana 2106 Missoula The Missoula National Bank of The First National Bank of Feb 26, 1889 New Mexico 6714 Roswell The Roswell National Bank of American National Bank of Jan 15, 1906 7503 Hagerman The Hagerman National Bank of The First National Bank of May 9, 1907 Oklahoma 5354 Chandler The Chandler National Bank of (did not issue) The First National Bank of May 22, 1900 5462 Lexington The Lexington National Bank of The First National Bank of Jun 2, 1904 5587 Alva The Exchange National Bank of The First National Bank of Jan 22, 1903 5753 Fort Sill The First National Bank of Lawton The City National Bank of Aug 3, 1901 8140 Frederick The Frederick National Bank of (not issue) The First National Bank of Mar 22, 1906 A few small hoards have skewed the survival rates for a few of the territories. Two hoards greatly increased the availability of Alaska notes, a group of $5 Series of 1902 red seal sheets from Fairbanks and ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 304 a small group of water damaged Juneau Series of 1902 plain backs. Only three other small hoards materially affected territorial survival rates, a group of $5 Series of 1875 Central City, Colorado Territory (2129) black charter notes that turned up decades ago, and two other early discoveries containing $1 Original Series Pueblo, Colorado Territory and $1 and $2 Original Series Yankton, Dakota Territory (2068) notes. Half of the surviving Wyoming Territory notes are from The Wyoming National Bank of Laramie City (2110), most of which were saved by the bankers there, including a sheet of Series of 1875 $5s. Many of these hoard notes, especially from Yankton, Pueblo and Laramie City, are in remarkable condition. Otherwise territorial notes have dribbled in one at a time from highly diverse sources. Idaho territorials were unknown before 1972 when the astute Dave Dorfman recognized and bought a $5 Series of 1875 First National Bank of Idaho, Boise City (1668), serial N442232-1772-C in fine to very fine condition, from a new purchase made by a dealer at a midwestern show. This fabulous discovery note was sold for $12,000 as lot 92 in the May 4, 1973, session of the RARCOA Central States Numismatic Society Auction in Peoria, Illinois. It was the first territorial to clear $10,000. Nebraska territorials are particular rare owing to the antiquity of those issues. All are low grade. One of the last to come in was an Original Series ace from The First National Bank of Omaha (209) purchased for a few dollars from a dealer?s junk box in 1998 and 1999 by a fellow who was willing to stoop to looking there. There remains one eagerly anticipate territorial type note that has yet to be discovered, a Series of 1902 red seal from Hawaii. Only 4,356 of them were issued between The First National Bank of Lahaina Figure 16. Indian territorial from a small settlement located 25 miles northeast of Tulsa in what is now northeastern Oklahoma. Who could ask for a neater note? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 305 (8101) and The Baldwin National Bank of Kahului (8207). CONDITION AND DOCTORING If you are a condition crank?one of those who believe history should deliver perfect uncirculated or at least suitably high-grade notes into your hands?you don?t belong in the territorial game. The average grade of the surviving territorials is less than fine. A significant percentage of territorials exist in wretched condition. A number of truly significant territorials are impaired with such horrors as faded seals, large separations along folds, glue spots the size of dimes, or a thorough cover of dirt. A few have been found in pieces. Such is life, these notes represented a vulnerable breed that generally circulated almost to oblivion under the most adverse of conditions in the nether reaches of the frontier before most were redeemed. You simply have to respect and appreciate those few that survived. The greatest Wyoming territorial that I had the privilege to own was a $2 Original Series on The Wyoming National Bank of Laramie City (2110) that I brought in from the cold in January 1975. It bears serial 907 of exactly 1,000 issued in the entire territory. The note grades fair. It is bright enough on the back but the Treasury seal is completely faded, there are bad tape skins on both ends of the back, and a split extends about a third of the way up the center fold. Such a dog would disgrace a condition fanatic, yet the late Tom Mason, the early primer collector of Wyoming nationals, acclaimed that the note as the ultimate Wyoming national. It would have been redeemed long ago had it not been taped to the underside of a glass counter in harsh sunlight for decades in a successor bank in Laramie. The implication is obvious. The wear that gives the notes their pedigrees detracts little from them when considered in light of the virtually insurmountable odds against their survival as work horses at the end of civilization?s tether. Why should they be new? They weren?t designed to be presentation pieces to be placed on the mantel like some hot house plant. Early collectors, and some dealers and collectors these days, did not and still do not, appreciate such notes. As a consequence, several of the greatest rarities have been doctored and continue to be doctored so owners who can?t live with a little dirt and wear can place them without shame in albums side by side with high grade notes from New York. Our game always delivers up what the buyers demand. Probably a third of the reported territorials have been doctored. A couple of the greatest rarities on my favorite territory, Arizona, have been grossly impaired through doctoring. The archetypical example is the $50 Series of 1902 date back issued from The Consolidated National Bank of Tucson, Territory of Arizona (4287). This pen-signed note graded about very fine but had a stain that penetrated through the paper from the center of the back a bit into the title block. Some butcher erased at the stain on the back, but of course all he succeeded in doing was to gouge out the paper. This amazing note was then trimmed and pressed. Why was this such a crime? Only a handful of Series of 1902 date back $50s were issued in the territory, 740 to be exact, and all were pressed into service by this bank. The redemption records for the Figure 17. Only one bank issued $2s in Wyoming Territory and there were only 1,000 of them, with this the sole reported survivor. It grades fair. Are you sophisticated enough to appreciate it? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 306 bank reveal that every single $50 issued by this bank was redeemed except this remarkable specimen. GOOD HUNTING On February 1, 1967, I added my first territorial to my budding collection. The note was a $20 red seal from The Citizens National Bank of Alamogordo, Territory of New Mexico (8315), that looks XF. I reached for it, paying $175, and it represented what seemed like an unattainable dream for a 24-year old newbie collector. To say the least, I was excited. I sincerely hope that you will experience the thrill of a comparable discovery?in numismatics or elsewhere. Such luck makes life worth living! REFERENCES CITED AND SOURCES OF DATA Bureau of Engraving and Printing, 1875-1929, Certified proofs from national bank note face plates: National Numismatic Collections, National Museum of American History, Smithsonian Institution, Washington, DC. Comptroller of the Currency, 1863-1912, Receipts of national bank currency from the engravers: Record Group 101, U. S. National Archives, College Park, MD. Comptroller of the Currency, 1863-1935, National currency and bond ledgers: Record Group 101, U. S. National Archives, College Park, MD. Comptroller of the Currency, 1901-1908, Applications for the organization of national banks: Record Group 101, U. S. National Archives, College Park, MD. Comptroller of the Currency, annually, Annual reports of the Comptroller of the Currency: Government Printing Office, Washington, DC. Comptroller of the Currency, various dates, Incomplete applications for national banks: Record Group 101, U. S. National Archives, College Park, MD. Continental National Bank Note Company, 1863, Proof of $5 Original Series First National Bank of Omaha, Nebraska Territory plate: National Numismatic Collections, National Museum of American History, Smithsonian Institution, Washington, DC. Lee, W. Storrs, 1966, The islands: Holt, Rinehart and Winston, New York, NY, 408 p. Wright, Theon, 1972, The disenchanted Isles: Dial Press, New York, NY, 304 p. Figure 19. In my opinion this is the most spectacular Idaho Territorial that has been discovered. Can you see the basis for my judgement? Photo courtesy of Jess Lipka. Figure 18. Does this illustration even need a caption? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 307 Table 6. Reported large size territorial notes as of June 2018. Number Number Survival Number Percent of Notes of Notes (1 per # of Reported Reported Territory Reported Issued Issued) Banks Banks Banks Territory of Alaska 2 6792 3396 1 1 100 Alaska - unlabeled 7 6224 889 1 1 100 Territory of Nebraska 8 155232 19404 3 2 66 Territory of Idaho 8 76524 9565 8 5 62 Territory of Washington 13 244654 18819 40 10 25 Island of Porto Rico 14 15414 1101 1 1 100 Territory of Wyoming 16 97848 6115 11 5 45 Territory of Montana 37 280764 7588 25 11 44 Territory of Arizona 45 365494 8122 18 15 83 Territory of Utah 48 221208 4608 17 10 58 Territory of Dakota 51 412118 8080 74 22 29 District of Alaska 68 57424 844 1 1 100 Territory of Colorado 83 476306 5738 13 10 76 Territory of Oklahoma 124 631752 5094 158 69 43 Indian Territory 162 942276 5816 175 80 45 Territory of New Mexico 172 902352 5246 55 34 61 Territory of Hawaii 289 1013412 3506 5 4 80 Total or Average 1147 5905794 5148 605 280 46 Figure 20. There was one note-issuing bank in Porto Rico, which utilized Series of 1902 red seals and blue seal date backs. This note is from the first shipment of 10-10-10-20 sheets sent to the bank on December 20, 1902. Andrew Shiva photo. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 308 No Bank? No Problem! The Arkadelphia Exchange, Arkansas Charles Derby Arkansas was without banks during the Civil War because it did not trust them. After Arkansas became a state in 1836, its legislature established two banks: the government owned State Bank of Arkansas and the publically owned Real Estate Bank of Arkansas.1,2 But with the Panic of 1837, the suspension of redemption of their bank notes in specie in 1839, and continued printing of new notes, bank currency lost its value, and by 1844 both banks closed. The loss of trust in banks became legislated in 1846, with a state constitutional amendment that ?No bank or banking institution shall be hereafter incorporated, or established in this State.? This was the law in Arkansas until after the Civil War. Still, people needed currency for commerce, so private institutions, essentially unincorporated local banks owned and operated by local merchants and stockholders, printed money and backed it. In Arkansas, these institutions were called ?exchanges,? and they existed in most cities and towns. Currency bearing the term ?Exchange? is known to have been used in Murfreesboro, Helena, Washington, Magnolia, Eunice, Batesville, Fort Smith, Searcy, and Powhatan.2 In some cases, such as the Washington Exchange Company and the Columbia Exchange Company in Magnolia, seven or eight stockholders or merchants are listed on the notes, representing those participating in the exchange. In other cases, such as the Fort Smith Exchange, the name of a single company ? Mayers & Bro. ? is listed on the note. In yet other cases, such as the Searcy, Arkansas, Exchange, no names or merchants are printed, and only the signature gives a hint as to the merchants involved. The focus of this article is the currency from the Arkadelphia Exchange, of which a 50-cent note is shown in Figure 1. Arkadelphia Arkadelphia is situated on a bluff overlooking the Ouachita River in Clark County in southwest Arkansas. Clark County was established in 1818 as Arkansas? third county, named after the famous explorer William Clark.1,3,4 Originally named Blakelytown for one of its early settlers, Arkadelphia was given its name, meaning "arc of brotherhood," when it became the county seat in 1842. Arkadelphia grew as it became the market for farms that sprang up along the Ouachita River?s flood plains and surrounding areas, and by 1860, Arkadelphia was the seventh most Figure 1. Arkadelphia Exchange 50 cent note from June 12th, 1862, signed by I. W. Smith and printed by John N. Harris. From Heritage Auctions. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 310 populous town in Arkansas. During the Civil War, Arkadelphia became a depot for salt and ordnance works. With its commercial interests and without state or bank currency, Arkadelphia looked to its citizens for notes, and the Arkadelphia Exchange was their answer. Arkadelphia Exchange Notes Rothert2 lists six types of notes from the Arkadelphia Exchange: R11-1 (10 cents), R11-2 (25 cents), R11-3 (50 cents), R11-4 and R11-5 ($1), and R11-6 ($2), and he shows images of R11-1, R11-2, and R11-5. Rothert also lists six print dates: Jan. 1, 1862; May 16th, 1862; June 12, 1862; July 25th, 1862; Jan. 1, 1863; and 186_ with the rest to be filled in by hand. Since some notes have the same date (for example, R11-1 and R11- 2 are both July 25th, 1862), there are many more than six types of notes. A 15-cent note has also been reported, with a different date than those listed above, January 18, 1862. In fact, almost every note that I have examined differs from others in some way. Examples of Arkadelphia notes are shown in Figures 1, 2, 3, and 4. Figure 2 shows four varieties of $1 notes: the first is R11-5; the rest are R-UNL, and all have different dates. Figure 3 shows two varieties of 10 cent notes, identical except for the border: the 10 cent note with an ornate border is the R11-1 plate note in Rothert, and the other with a simple double straight-line border. Many notes have a wavy line border shown for the 50 cent note in Figure 1. Yet other notes, including other examples of this 50- cent note, as well as notes in Figure 3, have borders that are partially wavy lines and partially Figure 3. Arkadelphia Exchange 10 cent notes. Top is the R11-1 plate note from Rothert. Bottom is R-UNL, similar to R11-1 but with a different border. The border of R11-1 is identical to the border of the $1 Jan. 1st, 1863, note at the bottom of Fig. 2. Figure 2. Arkadelphia Exchange $1 notes. Top is R11-5 (courtesy of Rodney Kelley), the rest are R11-UNL. Middle and bottom from Heritage Auctions. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 311 simple lines. Figure 4 shows the 15-cent note (R11-UNL). Most notes were hand signed by ?I. W. Smith,? with an example enlarged at the top of Figure 5. Two notes ? the $1 R11-5 note and the 15-cent note have what appears to be identical signatures that may be stamped rather than hand signed (middle two notes in Figure 5). One note (bottom of Figure 5) appears to have a signature other than I. W. Smith. A complete description of the diversity of notes from Arkadelphia Exchange is needed. John N. Harris, Printer of the Arkadelphia Exchange Notes The 10 and 25 cent fractional notes dated July 25th, 1862 (R11-1 and R11-2, respectively), have the imprint ?J. N. HARRIS, PRINT.? Rothert describes similar 50 cent (R11-3) and $1 (R11-4) notes, but I have not seen these notes to confirm that they have the same imprint. Although other Arkadelphia exchange notes do not bear an imprint, similarities in the fonts and text in these notes strongly suggest that they were all produced by the same printer. Even the $1 note at the bottom of Figure 2, with different shape and general appearance than the others, has the same border and text font as the 10-cent note at the top of Figure 3. The 25 cent Arkadelphia Exchange note (R-UNL, and bearing the date January 18th, 1862, not listed in Rothert 2) is very similar to a 25 cent note from Chicot County Exchange, as shown in Figure 6, revealing that ?J. N. HARRIS, PRINT.? was responsible for these notes from Eunice, a town that disappeared in a flood in 1867.2 ?J. N. HARRIS, PRINT.? refers to John N. Harris.5 John Harris was born in Alabama in 1821. He probably served in the Mexican War, and then moved to Arkadelphia soon thereafter, by 1850.4 He married Elizabeth Ann Davenport (1837-1897) in 1851 when she was only 14 years old. Elizabeth was born in Alabama to James William Davenport (1806-1853) and Laurena Rogers Davenport (1810-1837). In 1850, Elizabeth was living in Caddo, Clark County, with her deceased mother?s brother, Wylie Newton Rogers (1813-1891) and his wife, Melissa Janes Rogers (1824-1890). By 1860, at 37 years old, John Harris was a newspaper Figure 4. Arkadelphia Exchange 15 cent note. R11-UNL. Courtesy of Rodney Kelley. Figure 5. Signatures from 4 notes. Top to bottom: 50-cent (Fig. 1), $1 R11-5 (top Fig. 2), 15 cent (Fig. 4), and $1 R11- UNL (bottom Fig. 2). Figure 6. 25 cent notes from Arkadelphia Exchange and Chicot County Exchange. Both are R-UNL and likely from the same printer, ?J. N. Harris Print.? From Heritage Auctions. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 312 publisher and job printer, had acquired a respectable personal wealth of $1,000 in real estate and $2,000 in personal estate, and was the father of four children.7 John and Elizabeth eventually had 8 children. Harris worked for Arkadelphia?s first newspaper, The Arkadelphia Sentinel, and its publisher, Robert L. Pegues, which was established in September 1850.4 Harris later became the proprietor of the newspaper, The Arkansas Traveler. The story of The Traveler is told in Allsopp8. The Traveler was first published in Arkadelphia in 1852. The Traveler was started by James A. Warner, who ran it for 18 months before selling out to Samuel M. Scott. In turn, Scott ran The Traveler for three years before selling it in 1857 to Harris, Davenport, & Co., with John Harris as lead partner and one of his wife?s family members, probably her father James Davenport, as junior partner. John Messenger was hired as editor. It was during this time, in 1862 and 1863, that Harris printed the Arkadelphia Exchange notes from his job print business associated with The Traveler. Harris sold The Traveler during the Civil War to Rev. J. E. Cobb, and it was discontinued shortly thereafter. After the war, Harris again purchased The Traveler and co- published it with D. Dyer (probably Don Dyer, son of Nicholas Dyer, postmaster and leading citizen of Arkadelphia6) and hired Lou T. Kretschar as editor. The Traveler?s post-war run was short before it closed for good.8 In 1870, John Harris was still in Arkadelphia and working as a printer.7 By 1880, at age 59, he was living in Missouri, Clark County, and ?keeping hotel.?7 John Harris died October 28, 1892, in Gurdon, Clark County. John?s legacy as printer and newspaper publisher lived on in his son, Samuel Scott Harris (1859?1919), who John named after Samuel Scott from whom he purchased The Traveler in 1857. John taught the printing and newspaper business to son Scott, who, after working at The Traveler with his father, and later working at The Arkadelphia Daily News and The Arkansas Gazette, founded his own newspaper, The Gurdon Times, in 1894, two years after the death of his father.8 Isaac Williams Smith, Signer of the Arkadelphia Exchange Notes The Arkadelphia Exchange notes bear the signature ?I. W. Smith.? The man behind the signature is Isaac Williams Smith (Fig. 7).5,7,9 He was born on January 13, 1818, in Johnson County, Illinois. His mother and father both died by 1835, so in November 1837, at the age of 19, he left Illinois and moved to Arkansas where his older brother, Willis S. Smith (1810-1891)1,5,6,9, had settled in 1833 (Fig. 8). Willis lived in Greenville, which was the Clark county seat at the time, where he quickly established an upstanding reputation. He was elected Clark County?s first sheriff in 1836 and served as the county?s assessor and collector. When Isaac joined Willis in Greenville, he was elected constable, then deputy sheriff serving under his brother. The fact that the brothers were over 6 feet tall must only have helped them in their official duties. Isaac married Angelina Janes (1820-18630) on August 1, 1839, in Clark County. Angelina was sister to Melissa Janes Rogers, thus connecting Isaac Smith to John Harris through marriage. Though Isaac and Angelina had 11 children, only two survived into adulthood. Angelina died in January 1863, and Isaac remarried in October 1865 to Mary F. Dickens (1841-1883). They had three children. Isaac and Willis both resigned the sheriff?s office in 1844. Willis had learned medicine and established a medical practice while also farming at his Rawl?s Hill plantation near Whelen Springs (Fig. 8).1,6 Figure 7. Isaac Williams Smith. From 5. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 313 Isaac held the elected position of clerk of the circuit and county court in 1846-1856, as well as several other public offices. In 1856-1862, he was a merchant working for Barkman, Kingsbury, & Co.9 In 1858, Isaac received a license to practice law, and in the same year, he helped establish the Arkansas Institute for the Education of the Blind.9 In 1862, he filled in as county clerk when the current clerk resigned, and also served as the county?s representative in the Arkansas Senate until the end of the war. From 1865-1874, he practiced law and farmed in Beech Creek township, near Willis?s plantation. In 1874-1886, Isaac was elected judge of the county and probate court. In 1886, he was again elected to represent Clark County in the State Legislature.10 In 1894- 1896, he again served as county judge. Obviously, the people trusted Isaac, and he in turn felt an obligation to serve his community. As clerk and judge of the county court, Isaac spent many years in the Clark County Courthouse in Arkadelphia (Fig. 9).3 Built in 1844 after Arkadelphia became the county seat in 1842, this building served as the court house until 1899 when the new and current courthouse was constructed. Isaac wrote and signed many Clark county documents as clerk and judge, and these are still accessible today. An example is shown in Figure 10. Isaac died in 1894 at his farm. His obituary11 reveals that he died ?of general debility after a brief illness.? The author of his obituary described Isaac as ?amongst the bright galaxy of all the old time pioneers, there was no character more untarnished, no nature more genial, no nobler, no better perhaps.?He was a practical pains taking, matter of fact thorough going, industrious, sober business man, and certainly he demonstrated and exemplified during the half century and more he lived in Clark county, that he was supremely an honest man. Although possessed of great energy and force of character, his was, withal, a generous, kindly disposition; and so extraordinary indeed, was he endowed with social qualities.? A biographer9 concluded, ?No name is justly entitled to a more enviable place in the history of Clark County?for it is borne by a man who has been usefully and honorably identified with the interests of this county, and with its advancement in every worthy particular.? What Was the Arkadelphia Exchange, and Why Did Isaac Smith Sign their Notes? What merchants were involved in the Arkadelphia Exchange? Since the names of stockholders or merchants associated with the Exchange were not printed on the notes, the only clue on the notes themselves is the signature of Isaac Smith. A key to this puzzle is that when Smith signed the notes in 1862, he was working for Barkman, Kingsbury, & Co.9 This company was owned by James E. M. Barkman (1819- 1865) and Thomas Dwight Kingsbury (1821- 1875). While Smith had a respectable $3,300 real estate and $3,200 personal estate in 1860, Barkman and Kingsbury were much wealthier: Barkman owned $30,000 real estate, $35,350 personal property, and 28 slaves, and Kingsbury owned 25,000 real estate, $11,000 personal Figure 8. Dr. Willis Smith (left) and his Rawl?s Hills Plantation (right). From 6. Figure 9. Clark County Courthouse, where Isaac Smith spent years as county clerk and judge. From 3. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 314 estate, and 13 slaves.7 James Barkman was the son of Jacob Barkman, one of Arkadelphia?s original settlers who migrated to the region in 1811. Jacob Barkman (Fig. 11), a businessmen and plantation owner, generated substantial wealth,1,3,4,6 but it was James who as a planter and entrepreneur became extraordinarily wealthy. In 1860, James built an expansive mansion that stands today (Fig. 11).1 James served in the Arkansas State House of Representatives in 1854,6 and when the Civil War began, he enlisted on July 27, 1861, as 1st lieutenant in the 2nd Arkansas Mounted Rifles, Company F.13 Thomas Kingsbury?s brother, George Steele Kingsbury, was a sergeant in the same company as James Barkman. Barkman was discharged in May 1862 when the regiment reorganized at Corinth, Mississippi.13 Thomas Kingsbury?s father, Dr. Samuel Kingsbury, was also an early settler of Arkadelphia who died in 1826 when Figure 10. Document written and signed by Isaac W. Smith as clerk of the Clark County Circuit Court in 1854. From Ancestry.com. Figure 10. Document written and signed by Isaac W. Smith as clerk of the Clark County Circuit Court in 1854. From Ancestry.com. Figure 11. Left, House of James E. M. Barkman, built in 1860. From 12. Right, James? father, Jacob Barkman, one of the original settlers in Clark County. From 4. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 315 Thomas was only 5 years old.5,6 During the war, Barkman, Kingsbury & Co., besides all of its many other business activities, sold blankets, guns, and other items from to Arkansas troops, even those as distant as in Virginia.13 It is a reasonable speculation that it was the wealthy merchants James Barkman and Thomas Kingsbury who organized and financed the Arkadelphia Exchange, and Isaac Smith signed its notes in his capacity as employee of Barkman, Kingsbury, & Co. A Final Note from Isaac W. Smith Postwar Arkansas continued to experience hard economic times, a dearth of banks (only three national banks existed between 1862 and 1882), and a lack of circulating currency. Consequently, cities and counties were forced to issue their own warrants and currency. The note in Figure 12 is a $10 warrant from Clark County, issued by the county treasurer, Jacob Lawson Stroope, to Isaac Smith, payable ?out of any money in the Treasury appropriated for county expenditures.? References 1 Encyclopedia of Arkansas History & Culture. Butler Center for Arkansas Studies, Central Arkansas Library System, Little Rock http://www.encyclopediaofarkansas.net 2 Rothert, Matt Sr. 1985. Arkansas Obsolete Notes and Scrip. The Society of Paper Money Collectors, Inc. 3 Clark County Historical Association. http://www.clarkcountyhistory.org/ 4 Clark County, Arkansas: Past and Present. 1992. Clark County Historical Association, Arkadelphia. 5 Records in Ancestry.com 6 Syler, Allen B, Wendy Richter, Krist Smith, Velma Seale, Laverne Todd, editors. 2002. Through the Eyes of Farrar Newberry. Clark County, Arkansas. Clark County Historical Association, Arkadelphia. 7 U.S. Censuses, accessed through Ancestry.com 8 Allsopp, Fred William. 1922. History of the Arkansas Press for a Hundred Years and More. Parke-Harper Publishing. 9 Goodspeed Biographical and Historical Memoirs of Southern Arkansas. 1890. The Goodspeed Publishing Co., Southern History Press. 10 Arkansas Historical Commission. http://ahc- counties.aristotle.net/ 11 Obituary of Isaac W. Smith (1894 newspaper article, accessed through Ancestry.com) 12 Arkadelphia Regional Economic Development Alliance. http://www.arkadelphiaalliance.com 13 Christ, Mark K. 2002. Getting Used to Being Shot At. The Spear Family Civil War Letters. University of Arkansas Press, Fayetteville. **Thanks to Rodney Kelley and Bill Gunther for their comments on this work. Figure 12. 1875 Clark County Treasury Warrant (R13-2), paid to I. W. Smith. From Heritage Auctions. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 316 SHERLOCK HOLMES AND THE AMERICAN BANK NOTE COMPANY MYSTERY By Greg D. Ruby One of John Richard Flanagan's three illustrations in The Adventure of the Three Garridebs, as published in the October 25, 1924 issue of Collier?s. I was first introduced to the famous consulting detective Sherlock Holmes, in The Adventure of the Three Garridebs, in my fifth-grade reading class. A few months earlier, I had just started collecting coins. Early in the story, an eccentric collector is polishing an ancient Greek coin when Holmes and Watson visit his home. Later, we discover a counterfeiter?s printing press in a secret basement of that collector?s home. I was intrigued by what I had read and mentioned this to my family. A few weeks later, I was given a collection of Sherlock Holmes stories by my grandfather for Christmas. I remember curling up in my bed, reading The Adventure of the Red-Headed League. This story involved an attempt to rob a bank that had recently deposited 30,000 French gold coins in its vaults. I was now hooked on the tales of Sherlock Holmes and Doctor Watson. Sir Arthur Conan Doyle authored 56 short stories and 4 novels featuring the detective and his companion over 40 years, from 1887 until 1927. The publishing company of Doubleday & Doran issued a revised second edition of its Complete Sherlock Holmes after Doyle?s death in 1930. Doubleday asked a New York literary magazine columnist, Christopher T. Morley, to provide an introduction to the new edition. As Morley was growing up in Baltimore at the turn of the 20th century, he became a fan of Holmes and would head down to the central branch of the Enoch Pratt Free Library to read the stories shortly after they were published in Collier?s. After stints with Ladies? Home Journal and the Philadelphia ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 318 Evening Public Ledger, he began working for the New York Evening Post. While at the Post, Morley began a column, The Bowling Green, in the newspaper?s pullout Saturday Review of Literature and continued as a columnist when the SRL became a stand-alone publication in 1925. Still an aficionado of the Holmes stories, he occasionally included some Sherlockian items in his columns. Remember, at this time, there were still about a half-dozen Holmes stories not yet published! Morley was very much a social person and enjoyed forming ?clubs? and inviting like-minded individuals to gather for lunch or dinner. On January 6, 1934, a group of 15-20 people gathered for a cocktail reception at New York?s Duane Hotel to celebrate Sherlock Holmes? birthday. (This date also happens to be the birthday of Morley?s younger brother, Felix.) From this modest beginning, the Baker Street Irregulars would become a literary society dedicated to the memory of the great consulting detective. The BSI would hold its first dinner on December 7 of that year and a second dinner on January 6, 1936. The BSI would not gather again until January 30, 1940, at New York?s Murray Hill Hotel, and this is where our mystery begins. A General Motors executive, Edgar W. Smith, had begun a correspondence with Morley several years earlier and volunteered to arrange future BSI Dinners. Morley accepted the offer, and the BSI has its first dinner in four years. 221B: Studies in Sherlock Holmes, edited by Vincent Starrett. Photograph courtesy of Ray Betzner http://www.vincentstarrett.com/ One of the highlights of the 1940 BSI Dinner was that each of the 35 attendees would receive a copy of Vincent Starrett?s newly published work 221B: Studies in Sherlock Holmes. Starrett was unfortunately unable to attend the dinner, as noted in the minutes of the dinner taken by Smith: The Gasogene-Tantalus read a telegram received from Mr. Vincent Starrett, whose unfortunate absence from the meeting can be compared only with the intolerable absence of Mrs. Hudson from the Baker Street scene. The meeting voted spontaneously to send greetings and a fully autographed copy of the book to Mr. Starrett, an action which, in the preoccupations which ensued, was probably not accomplished. Baker Street Irregulars 1940 Dinner at the Murray Hill Hotel, New York Photograph ? Baker Street Irregulars and courtesy of the www.bsitrust.org ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 319 Allan M. Price, at right, at the 1940 BSI Dinner One gentleman who attended the 1940 BSI Dinner was Allan M. Price, Manager of Domestic Sales for the American Bank Note Company. Price had attended the two previous BSI Dinners in 1934 and 1936, and would attend the next one in 1941. Price was also a member of Morley?s Three Hours for Lunch Club, which was a predecessor to the BSI. Price would pass away on February 16, 1943. Now, let?s move ahead 73 years -- Saturday, January 12, 2013, to be precise. The annual dinner of the Baker Street Irregulars held at the Yale Club in New York City is just one event in what is now referred to as the Sherlock Holmes Weekend, which runs from Wednesday through Sunday. The dinner (now with 160 attendees) is followed by a market on Saturday, at the Roosevelt Hotel, where vendors sell books, collectibles and other items of Sherlockiana to the several hundred who trek to New York for the weekend. One vendor, Javier Doria, a dealer of antiquities from Madrid, had a flurry of activity at his table in the Merchants Room. He was offering for sale two brass ?plates? with symbolism found on U.S. currency, along with images and emblems of Sherlock Holmes. Both plates were mounted on wooden plaques, one with handles, giving it the appearance of a serving tray. Each references the January 30, 1940, BSI dinner, while the second plate also indicates that it was presented in Toronto on July 11, 1940. I call this first plate as the ?New York? plate and will refer to the second as the ?Toronto? plate. The ?New York? plate is mounted on a dinner tray, likely made of oak, and measures approximately 18.25 x 26.5 inches, with brass-and-wood handles at each end. The plate design features Holmes?s profile, after a popular drawing by Frederic Dorr Steele (the illustrator of the Holmes stories appearing in Collier?s), centered in a magnifying glass device, with the engraved thumbprints of ?Partners in Crime? Vincent Starrett and Harold S. Latham (a trade editor at Macmillan) on either side. Reliefs of The Great Seal of the United States and the Annuit C?ptis seal found on the reverse of the United States one-dollar bill are at the upper corners next to the inlaid obverse and reverse of an 1895 Victoria shilling. At the upper center is ?The Macmillan Company / 221b Studies in Sherlock The ?New York? plate, with handles. Photograph courtesy of Heritage Auctions. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 320 Holmes 221b / January 30 1940 New York? and ?The Baker Street Irregulars? is under Holmes?s profile. Engraved along the bottom edge is ?The Broad Street Irregulars ? Lambie & Barrowman ? American Bank Note Co.? On the back of the tray, is a mounted oval wooden label marked ?United States of America,? with an Asian character enclosed in a triangle beneath it. Additionally, three items are pasted to corners: a partial review of Charlie Chan at the Race Track rubber stamped ?Avenue de Colmar / Schlumpf / Mulhouse,? a newspaper photo of a recreation of the interior of 221b Baker Street with brief description, and a label with barely legible holographic pencil notations. Some additional text is carved directly into the wood, and a small brass mount is attached. The ?Toronto? plate is mounted to a walnut board and measures approximately 19.5 x 29.5 inches. The plate design follows the same currency motif as its New York predecessor, with the same The Great Seal of the United States and the Annuit C?ptis, with six 1895 Victoria shillings inlaid (one of which is surrounded by the legend Allan M. Price / Holmes Maker). Centered on the plate is an engraving of Holmes in profile, after the popular drawing by Frederic Dorr Steele within a magnifying glass device surrounded by words ?Sir Arthur Conan Doyle Literary Agent 1895.? At the upper center is ?The Baker Street Irregulars / The Macmillan Company / Studies in Sherlock Holmes / January 30 1940? with ?221 B? on either side of the date. Surrounding the central Holmes figure are eight radiating lines, four per side, bearing the fancifully named dishes served at the BSI dinner such as Ice Cream and Petit Signs of Four. Further there is a larger medallion of Queen Victoria below the Holmes profile and two engraved fingerprints at the extreme right and left, unlabeled though likely belonging to Starrett and Latham, the ?Partners in Crime? of the January 1940 plate. Mounted directly on the board beneath the plate is the label ?With the Compliments of / The Macmillan Co. / 11 July 1940, Toronto.? On the back of the plaque is a square section of heavy cardboard measuring 6.5 x 5.5 inches, with a central watercolor showing through a beveled opening. There are numerous stamps and notes. It seems to have been addressed like a letter: ?C/o Stanley Hopkins OBE / Theodore Fischer / Galerie Fischer [a Swiss auction house] Haldenstrasse 19 / Luzern / Telephone 2211325772.? Until that Saturday in January 2013 in the Merchants Room, no one in the Sherlockian world was aware of these plates? existence. The minutes of the 1940 BSI Dinner make no mention of them. In writings about the BSI history, the 1940 dinner has been described at length (Arthur Conan Doyle?s son, Denis, attended and was somewhat taken aback that his father was considered by the attendees to be the literary agent for Dr. Watson The ?Toronto? plate Photograph courtesy of Heritage Auctions ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 321 and not the author of the stories), and attendees were interviewed for their recollections. Once again, no mention of these plates appeared in those writings. A few general comments and observations about these two plates: * Both plates, in the bottom right corner, bear the words American Bank Note Company. In addition, the ?Toronto? plate specifically mentions Allan M. Price, an ABNCo employee. It would seem logical that he was involved in some way with the manufacture of these two plates. * Also, both plates have the words Lambie & Barrowman centered on the bottom. Arthur Conan Doyle was an ardent advocate of Oscar Slater, who was convicted and imprisoned in 1909 for a murder in Scotland the previous year. Helen Lambie was the victim?s maid, and Mary Barrowman was a witness at the crime scene. Both testified against Slater. Slater?s conviction was set aside in 1928 by the Scottish Court of Criminal Appeal. * In the bottom left corner of both plates are the words The Broad Street Irregulars. The headquarters of the American Bank Note Company was located at 70 Broad Street in New York. ABNC occupied the building from its construction in 1908 until vacating the property in 1988. The building is still standing today. Perhaps there were additional fans of Sherlock Holmes at ABNCo in addition to Price? * The border on the wooden plaque for the ?Toronto? plate matches the border on the brass plate itself. This would seem to indicate that the plate and plaque were both made when it was. * It is this author?s opinion that neither brass plate was manufactured in time for the January dinner. Arrangements for the dinner began as a result of a letter dated December 30, 1939, from Morley to Smith. Smith sent out postcards to invited guests on January 9, a mere three weeks before the dinner. Would this have been enough time for Price to make the necessary arrangements to produce the ?New York? plate? The ?Toronto? plate includes the menu items from the January dinner. Would these items have been known before that first dinner to guests, or perhaps the plate was made afterward as a commemorative, using the menu card from that dinner? Several weeks had passed since the 2013 Sherlock Holmes Weekend, when another buzz began about the plates. A United Kingdom auction house, Mullock?s, was slated to auction off two Sherlock Holmes plates on May 21, 2013. One plate was familiar to us and the other not. The ?Toronto? plate was consigned but did not sell. The ?New York? plate was not consigned, and according to some reports, was purchased by someone who had viewed it in New York and acted as an agent for an unknown party. A third plate was consigned, totally different from the first two. This third specimen was not displayed in New York, as its owner sent it to a third party who considered purchasing it but ultimately declined. I refer to this third plate as the ?Bank Note? plate. The design is an etched plate in the form of a bank note featuring the profile of Sherlock Holmes (after Steele) and bearing the legend ?American Bank Note Company ? Principal Office 78-86 Trinity Place New York.? The plate measures approximately 23x14cm and is inlaid into a wooden tray measuring approximately 41?23 cm. On the outer rim of the tray is a plaque reading: ?BSI Institute of Higher Studies ? and Felix kept on walking on Broad St and never a crossword ? FVM Wardman Park Hotel 1943? American Bank Note Company Headquarters at 70 Broad Street in New York ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 322 A few general comments and observations about this third plate: * It makes no mention of the Baker Street Irregulars, the Broad Street Irregulars or the two witnesses in the Oscar Slater trial. * Its design is much closer to that of an actual banknote and features some classic ABNCo cherub vignettes. * The address of 78 ? 86 Trinity Place in New York was the principal address of ABNCo from 1882 until it moved in 1908 to separate headquarters and printing plant facilities. At the time of the BSI Dinners, this address was the New York Curb Exchange (now known as the American Stock Exchange). * The references on the rim of ?BSI Institute of Higher Studies ? and Felix kept on walking on Broad St and never a crossword ? FVM Wardman Park Hotel 1943? appeared to be added later. Christopher Morley?s brothers, Felix and Frank, are referenced. All three Morley brothers were born in the Philadelphia area and graduated from nearby Haverford College. Broad Street is a major street in downtown Philadelphia. Felix was the creator of the crossword puzzle that appeared in the Saturday Review of Literature (the original ?entrance exam? required for admittance to the initial BSI gathering. Frank Morley was a resident of Washington, DC?s Wardman Park Hotel at times, but not in 1943. This third tray is the most intriguing to the author. With the discovery of all three plates around the same time, it would be natural to assume they were manufactured in close proximity time- wise. With the first two plates referencing events in 1940, why would the third plate have an address for ABNCo that had not been used in over 30 years? Is it possible that the ?Bank Note? plate was actually made while ABNCo was located at Trinity Place? If this were the case, that would mean the plate was produced while Conan Doyle was still writing new Sherlock Holmes stories! All three plates feature the vignette by Frederic Dorr Steele of William Gillette as Holmes. Gillette started portraying as Holmes on the stage in 1899. Steele illustrated the Holmes stories for Collier?s beginning in 1903, with The Hound of the Baskervilles. Steele would not meet Gillette in person until 1905. Since the Trinity Place offices were in use until 1908, this does provide a brief The ?Bank Note? Plate. Photograph by Mullock?s William Gillette as Sherlock Holmes ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 323 window of opportunity for the ?Bank Note? plate to be produced there. Unfortunately, it appears that the ?Bank Note? plate might have been manufactured in the 1930s. Andrew Malec, a Sherlockian expert on Frederic Dorr Steele?s work, has been unable to find any use of this vignette of Gillette as Holmes until 1929, when Gillette began his farewell to the stage tour. So, we are left with several unanswered questions about these three plates: * Did the Manager of Domestic Sales for ABNCo, Allan M. Price, have the clout with the staff within ABNCo?s Printing Plant to have these plates made as a ?side project?? * Each plate is currently unique. This would seem to be much effort exerted for a minimal return. Brass was in high demand during World War II. Could additional plates have been made and then later melted for the war effort? * Was the ?Bank Note? plate made in conjunction with the other two plates, or was it a totally separate project? Both the ?New York? and ?Toronto? plates were sold on October 8, 2014, by Heritage Auctions. Hammer price was $7,187.50 for each one and included a 25% buyer?s premium. It is believed that both were purchased by the same anonymous bidder. The ?Bank Note? plate was sold via private treaty in 2014 and resides within a private collection in the United States. Thanks to Jon Lellenberg for his assistance with this research. If anyone has additional information, or other theories, about these plates, the author would welcome correspondence at Greg@FourthGarrideb.com. American Bank Note Company Printing Plant, 1201 Lafayette Avenue in the Bronx, 1909 ? 1985 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 324 Central States Numismatic Society 78th Anniversary Convention April 24-27, 2019 (Bourse Hours ? April 24 ? 12 noon-6pm Early Birds: $125 Registration Fee) Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: www.centralstates.info Bourse Information: Patricia Foley (414) 698-6498 ? foleylawoffice@gmail.com Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive ? Call (847) 303-4100 Ask for the ?Central States Numismatic Society? Convention Rate. Problems booking? - Call Convention Chairman Kevin Foley at (414) 807-0116 Free Hotel Guest and Visitor Parking. ? Numismatic 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 ? Complimentary Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois ?Shortcuts to Utopia?? Townsend Test Scrip During the Great Depression By Loren Gatch Of the various kinds of scrip used in the United States during the 1930s, one variety issued as late as 1937 sought not to remedy hard times, but to test the feasibility of an idea: Dr. Francis Townsend?s plan for a national old-age pension. Townsend?s basic idea was to issue all retired citizens a monthly payment that had to be spent within thirty days. Funding for the pensions would come, in part, from a broad-based, national transactions tax. Townsend maintained that the surge of economic activity stimulated by the pension payments would make the idea affordable, if not self-financing. Derided by President Roosevelt and the Democratic Party as ?shortcuts to utopia?, versions of the Townsend Plan were promoted by a national network of thousands of clubs with millions of members that comprised the Townsend movement. While the Townsend Plan never became law, Dr. Townsend?s advocacy and the political weight of his followers shaped the early politics of Social Security, pushing that program in a more generous direction than it otherwise would have gone. The Townsend Plan was not a monetary panacea, in the sense that it did not propose that retirees receive pensions in special scrip or other currency. Nonetheless, it did share notions present in other, more overtly monetary schemes, namely a concern with the velocity of money and a faith in the economic potency of the money multiplier. Thus, Townsend?s ideas have been classed along with other monetary reform proposals of those years such as Irving Fisher?s stamp scrip, Major Douglas?s Social Credit, or the California ?Ham and Eggs? initiative of 1938. In early 1937, several local Townsend clubs did embark on precisely the sort of scrip experiments that the national movement had avoided. Beginning with Townsendites in Chelan, Washington, a scattering of clubs across the country sought to test Townsend?s ideas on a small scale by issuing to selected individuals an amount of purchasing power, either in the form of an especially earmarked supply of official currency or other checks and scrip, with the proviso that the individuals spend those funds as quickly as possible. In turn, local merchants pledged to assess themselves a transactions tax on the turnover of these designated funds. If the ideas underlying the Townsend Plan were sound, the reasoning went, then the surge in business ought to generate a tax revenue sufficient to replenish the funds initially paid out?a pension perpetual motion machine! The results of these ?Townsend Test? scrip issues were not particularly auspicious. Indeed, the experiments themselves were repudiated by Dr. Townsend and the national movement, claiming they distracted from the political goals of electing Townsend- friendly legislators and getting a pensions bill through Congress. Nonetheless, they were encouraging enough to the intrepid organizer of the first Chelan test, Isom Lamb, that he sought unsuccessfully to scale up Townsend-inspired scrip, in Utah and elsewhere, in the form of the United Prosperity Plan, Inc. The Rise and Spread of the Townsend Movement In its origin story, the Townsend Movement began with the depression experiences of Dr. Francis Everett Townsend, a retired physician in Long Beach, CA. The loss of his wealth in the 1929 crash along with the everyday spectacle of the indigent elderly led him in September 1933 to write a letter to the local newspaper calling for the creation of a plan whereby everybody over the age of 60 would be automatically eligible for a $200 a month pension, with the proviso that each person spend the whole amount at the end of 30 days. Pensions would be funded by a 2% ?transactions tax? on most economic activity in the country?something like a modern-day value added tax (wages and salaries would be exempt). People on such pensions would be forbidden from working, to reallocate their jobs to younger applicants. The original plan caught on in popularity, and in February 1934 Townsend formally established the Old Age Revolving Pensions, Ltd., as his organizational vehicle. Left: Francis Townsend, founder of the movement bearing his name. Right: A period postcard highlighted its independence from party politics.? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 326 While this plan underwent many modifications over the years, its economic premise remained fundamentally fantastic, with respect to its realism. For Townsend argued that his pension plan, rather than being a fiscal burden, would represent a great economic stimulus to the country. As old people spent their pensions on a specific schedule, the injection of purchasing power would increase the national income, thus lightening the burden the pensions would otherwise impose upon the nation. Indeed, Townsend contended, funding old peoples? retirement would result in a spending stimulus that would eliminate unemployment. Despite its fiscal extravagance, the plan appealed to ordinary older Americans because it styled itself as a pay-as-you-go plan that didn?t propose to tax the rich. Unlike the schemes of other agitators like Huey Long or Father Coughlin, the Townsend Movement was radical without attacking anybody, cloaking itself in patriotic and religious symbolism and centering upon the virtuous figure of Townsend himself, who assumed a cult-like status in the eyes of his middle-class, Protestant followers. As one student of the Townsend Movement, Edwin Amenta, observed of the 1930s, ?concocting anti- Depression remedies was becoming a national pastime?, and Townsend?s proposal was not unusual for the time. To Amenta, the real innovation of the Townsend Plan was not its ideas, but the mobilization strategy followed by Townsend?s confederate, Robert Earl Clements. A former real estate man, Clements was the organizational genius behind the rapid transformation of the Townsend Plan into a nationwide movement. Using the sales skills of his previous profession, Clements built the national movement by delegating the organization of local Townsend Clubs to agents working on commission. In turn, the many rivulets of club dues and newspaper subscriptions produced a growing and lucrative stream of revenue that financed the expansion of the national movement, personally enriching Clements and Francis Townsend?s family. From its beginnings in early 1934, the Townsend club network grew with extraordinary rapidity. By 1935, the movement claimed some 3,000 clubs around the country, though its support always remained strongest in California and the Pacific Northwest. Politicians noticed, and the Townsend movement became involved in the national debate over Social Security, with Dr. Townsend himself appearing before Congress that year in support of an unsuccessful bill, introduced by Representative John S. McGroarty of California, that would have established a national pension scheme along Townsend?s lines. Despite its program being panned by authorities, the Townsend movement thrived throughout the 1930s. The millions of elderly members of the Townsend club network certainly didn?t see themselves as members of a special interest. Attacks upon Townsend?s ideas and Townsend himself only reinforced his followers? convictions. Though hostile to Roosevelt and willing to solicit Republican support, Dr. Townsend tried to stay above partisan politics in a way that both kept his reputation unsullied and made him a martyr in his followers? eyes when attacked by conventional politicians and other critics. Robert Clements? organizational genius imparted to the movement a certain vitality even in the face of legislative frustration. In Edwin Amenta?s words, ?the Townsend Plan anticipated the techniques of Tupperware and Amway.? Despite the passage of Social Security in 1935, the movement continued to grow, reaching nearly 8,000 clubs and 2 million members by early 1936. Organizationally, the Townsend Plan combined an extremely top-down policy direction with a decentralized membership and financial structure. While the thousands of individual clubs didn?t dictate policy, they were expected to contribute financially, via dues and subscriptions, to sustain the cause. Internally, clubs mobilized their supporters by providing them with opportunities for socialization, fellowship, and purposive activity that overcame the frequent loneliness of old age. Club members were particularly encouraged at meetings to envision the cornucopia of goods they could purchase with their new pensions. Indeed, the movement partook in no small way of the fervor of evangelical Christian revivalism, with the upright and slightly-sanctimonious Dr. Townsend leading his flock to the Promised Land. The Townsend Test Scrip of 1937 In March 1936, Clements parted ways with the Townsend Plan, selling his share of the Old Age Revolving Plan Ltd. to Dr. Townsend for considerable personal profit. Thereafter, the movement experienced some organizational turmoil, as Townsend abandoned his figurehead position to assert more direct control over the organization and flirted with more divisive public figures like Father Coughlin and the Rev. Gerald L. K. Smith. Townsend also embarked on a more partisan political style, stumping for William Lemke?s ineffectual third-party candidacy in the Presidential election of that year. In this environment, with membership growth stalling and club revenues to the national organization plummeting, individual clubs struck out on their own with unsanctioned scrip initiatives. The first scrip plan was put into effect in January 1937 by the Townsend club in Chelan, Washington, a small town in the apple- growing part of the state. Isom Lamb, the supervisor of ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 327 Chelan?s club, staked $200 on a six-month scheme whereby a pensioner chosen by lot would be given that amount of money, with instructions to spend it as quickly as he or she could. In turn, local businesses agreed to pay a two-cent tax on each time one dollar of that money was spent within the community; as the funds circulated, the resulting tax payments would build up a fund which, at the end of a month, would be available for the next eligible recipient, and so on. At least Lamb seemed to think it was feasible: ?I believe this tax each month will produce enough revenue to add at least one new pensioner each month?and before the guaranteed test of six months is over we shall see all eligible under the Townsend Plan provisions in Chelan receiving the maximum $200 a month.? A person of great energy, Isom Richard Lamb evangelized the Townsend Test experiment to other Washington communities even as he ran Chelan?s. The Chelan undertakings represented the original, extreme version of the idea, one that Townsend himself and his organization had backed away from by the late 1930s. Several assumptions would have to come true for it to work. The original funds would have to be a net addition to the community?s purchasing power. The funds would have to remain in the community, and not leak out for external transactions. The rapidity with which they circulated had to compensate for the withdrawal of 2% tax on each transaction. Each earmarked dollar of the fund would have to be spent fifty times to accumulate its replacement by month?s end. This meant that merchants pay the tax not only on the original expenditure by the lucky pensioner, but on every subsequent use of the earmarked funds throughout local commerce. This would have required extraordinary levels of cooperation among the citizens of Chelan to work. The first recipient of these test funds was one Curtis C. Fleming, a 63-year-old unemployed orchard worker chosen by popular contest at a Chelan dance hall, where the entry ticket gave each attendee one vote in the selection of the winning candidate. Fleming duly received $200 in one-dollar bills that were enclosed in a paper sleeve so that their distinct status could be identified for taxing purposes. In an article in Paper Money from Spring 1972, Robert S. Vanderwende described the arrangement thus: [t]he currency had attached, stapled in all four corners, a printed slip, the same size as the currency. At the top of the slip was printed: ?This is a Chelan, Washington, Townsend Test Dollar. Please write your name and the date it entered your hands on space below. Spend locally. If this bill entered your hands 30 days after the first date, please tear off this slip and give to Miners & Merchants Bank, Chelan.? Upon receipt of the tagged notes and applying their own signatures, merchants would then set aside the requisite two percent tax. Dogged by national reporters who chronicled each of his expenditures, from his wife?s visit to the beauty parlor to utilities and grocery bills, Fleming dropped some $82 the very first day. Merchants in turn maintained their separate ?kitties? into which the tax revenues were to flow. As Fleming?s spending spree went on into the third week of January, the Chelan Townsend Test encountered a problem: souvenir hunters were taking the tagged notes out of circulation, some of which had already accumulated up to ten signatures. Isom Lamb also alleged that a rival Townsend group in nearby Wenatchee, known as the ?McGroarty Boosters?, were hoarding the notes to sabotage the experiment. In response, the mayor of Chelan appealed to businesses to collect two percent on all transactions, tagged notes or no, to accumulate the necessary funds for the next month. Indeed, Lamb suggested that a general sales tax might generate enough revenue to provide for multiple pensioners. Why a rival group would have sought to disrupt the test is not entirely clear, though the letter Lamb claimed to have received from the other Townsend group expressed concern that the failure of an unimpeded test of Townsend scrip would have cast a shadow over the larger movement. In an editorial, the New York Times seemed to expect as much, anticipating that the failure of Chelan?s ?one-man Townsend plan? would reveal the fallacies in the national plan. In any case the national Townsend leadership had never approved the tests and would soon repudiate them once it became apparent that Isom Lamb wanted to substantially expand the undertaking. In this press photo, Isom Lamb sends the Flemings on their spending ways. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 328 Given the difficulties of using sleeved dollar bills, the first Chelan test generated a measly $23 in tax, barely a tenth of what Townsend Test promoters had hoped for. At the beginning of February, Isom Lamb again fronted the funds for a second experiment, but with some changes. To head off sabotage as well as souvenir hunting, for this second round Chelan adopted a different method. Mrs. Retta Freeman, a shop keeper fallen on hard times, was chosen to receive and spend the second $200, this time in the form of checks drawn upon the Miners & Merchants Bank in round amounts ranging from ten cents to one dollar. Upon receipt of a check, merchants were required to endorse the back and set aside the appropriate tax. This new arrangement was hardly less inconvenient than the old one, and the checks themselves were hardly immune to extraction by collectors. But at least the funds behind any uncashed checks ultimately remained in the bank. Thanks to publicity generated by the Chelan test, clubs in other communities around the country moved to undertake their own experiments in early 1937, copying to varying degrees the details of the Chelan precedent. Those communities nearest Chelan had been the focus of Lamb?s evangelism. In Brewster, a town a few miles north of Chelan, Dave Sampson, a 61-year- old unemployed laborer and father of 11, was chosen to receive $200 in checks made out simply to the name ?Prosperity.? The club in Cle Elum, to the southwest of Chelan, issued $400 in checks to two of its members. Other experiments undertaken elsewhere garnered national attention, as reporters followed the spending habits of their fortunate guinea pigs. The Townsend club in Greenfield, Massachusetts, announced it would hand out $200 in tagged bills to one of its own members, Mrs. Carrie Saben, subject to the same transaction tax. Each of the bills was accompanied by a slip which stated, ?This is a Townsend dollar. Each time it changes hands the person receiving it is requested to pay 2 cents as a voluntary transaction tax to the person paying it, who in turn is requested to pay the 2 cents to Mrs. Carrie E. Sabine or to the W.L. Goodnow store at 238 Main Street, Greenfield, Mass., for the Greenfield Townsend club. Check a square below each time the dollar changes hands.? In inaugurating the program, the president of Greenfield?s club did not shortchange on the rhetoric. ?And just as those few scattering shots at Lexington foretold the booming of the cannon at Bunker Hill?so the spending of this $200 in Townsend fashion among the merchants of Greenfield will foretell a bigger, better day when the Townsend plan is a law and not a dream?Mrs. Saben, you are our beloved herald of better times. God speed you on your sacred errand.? In Moberly, Missouri, a local stationer proposed to bankroll the issue of $1,200 in ?Townsend Money?, upon which would be levied a three percent tax. The Hot Springs, South Dakota club chose Rufus Pack, a 77- year-old painter, to spend $200 for the first of a three- month experiment. Instead of tagged currency, the club would convey to the pensioner the equivalent in scrip, backed by standard funds in the club?s treasury. To foil the impact of souvenir hunters, the scrip was to be called in and reissued at certain dates, allowing abstracted specimens to be replaced with new ones. A club in Sarasota, Florida, issued 500 cards which participating merchants were to punch with each transaction. Once a card was completely punched, it could be redeemed with the merchants for the cumulative tax. Fulton, New York?s club raised $200 which it then used to back an issue of scrip divided evenly among four lucky members. At about the same time that Carrie Saben began her spree, the town of Bergenfield, New Jersey undertook its experiment not so much out of any fervent local belief in the Townsend Plan but for the sheer publicity. After raising $200 by selling 25-cent chances to local citizens, the winner was chosen by lot to receive a like amount of ?Townsend Recovery Plan Revolving Fund (Dollar) Notes? drawn on the Bergenfield National Bank & Trust Co. Harry C. Fichter, a thirty -year-old home builder from Tenafly, hardly qualified as a ?pensioner?, but his ticket drawn by the spin of a wheel at a Townsend club social entitled him to the windfall. Other clubs looking into running their own Townsend tests included those in Ogden, Utah; Middleboro and Springfield, Mass; Cleveland, Ohio; the California cities of San Jose, Ontario, and Santa Cruz; and Harlingen, Texas. A Townsend-Chelan Test check (image courtesy of Lake Chelan Historical Society)? Bergenfield, New Jersey?s Townsend scrip ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 329 The Townsend Stamp Scrip of Eugene and Springfield, Oregon Unlike the use of circulating checks in Chelan and Brewster, the Townsend club of Lane County, Oregon undertook at the beginning of February to issue actual scrip. While it is unclear as to whether Isom Lamb had any specific influence upon this choice of medium, carrying out a Townsend test using the stamp scrip method was an intuitive way of implementing a version of the movement?s core ideas, and moreover brought together two fads, one new and one old. Instead of merchants endorsing the instrument, as in Chelan or Brewster, and accumulating the two-percent tax receipts themselves, under the Lane County plan tax stamps could be purchased in advance and affixed to the back of the note, much as was done during the national stamp scrip boom five years earlier. In the Lane County experiment, forty businesses in the city of Eugene contributed $400, which was placed in trust at the First National Bank of Eugene as backing for the scrip. The notes came in two denominations: 50 cents (with space on the back for fifty 1-cent stamps) and 1 dollar (with space for fifty 2-cent stamps). The orange and blue scrip features a portrait of Townsend, gaunt and bespectacled, from which an obvious halo radiated across the face of the note, reflecting the characteristic reverence that members felt towards their leader. Framed by typical Townsendite slogans, the field of the note is otherwise taken up with a list of the participating Eugene merchants and the terms and conditions of the scrip?s use. Notes were to circulate until they accumulated the full complement of ?L.C.T.T? stamps, when they could be redeemed for their face value in cash at the bank. Between December 1 and December 31, 1937, notes could be duly redeemed, whatever the quantity of stamps they sported. On the afternoon of the 31st, however, the note became invalid, with ownership of the funds backing it reverting to the Lake County Townsend club. These rules had the effect of allowing for some sort of test of the Townsend plan while anticipating the actions of souvenir hunters who had proved to be such a nuisance in Chelan. The two lucky recipients of Eugene?s scrip, Mrs. Calvin E. Hill and Henry Folz, duly went on their spending sprees. Using stamp scrip instead of endorsable checks or some sort of improvised money sleeve proved superior with respect to collecting the transaction tax, as opposed to relying upon merchants to maintain their separate ?kitties?, as in Chelan. However, the same problems that disrupted so many stamp scrip experiments between 1932 and 1934 were present in this new undertaking as well. Who would pay for and apply the stamps, the merchant or the customer? How could the experiment prevent collusive cheating whereby buyers and sellers exchanged scrip, but without using stamps? Moreover, testing the core premise of the Townsend Plan? namely, that an increase in the velocity of money would provide such an economic stimulus that the plan would be, to some substantial extent, self-financing?required that stamping should take place according to time, and not transaction. This had been, after all, Professor Irving Fisher?s recommendation in 1933, when he put forth his national plan for stamp scrip. Yet, most of the hundreds of stamp scrip experiments undertaken during 1932-34 were of the transaction variety instead. Of these, only a few ended successfully, in the sense that customers and merchants cooperated in supplying and affixing the necessary stamps to most of the scrip notes. Users of stamp scrip had to be mobilized and motivated to use it properly, and success required that experiments be conducted on a small scale. Attempts to scale up stamp scrip experiments beyond a few hundred to a few thousand notes invariably ended badly, as when Charles Zylstra tried to expand the precedent of Hawarden, Iowa, or when Winfield Caslow peddled his ?Recovery Certificates? in Chicago (see Paper Money, Mar.- Apr. 2009). The apparent purpose of the various Townsend Tests was not to seriously propose a monetary version of the good doctor?s national plan, but simply to test the proposition that a particular pensioner?s grant of $200, in whatever form, would generate additional business of a volume sufficient, if taxed at 2% per transaction, to produce a self-sustaining fund available to the next pensioner. Some experiments varied in their details from Townsend?s formula. Following Eugene?s example, the Townsend club in Springfield, Oregon issued its own scrip in March 1937. Apart from adopting almost identical language with respect to when and how the scrip should be redeemed, the Springfield club planned to issue only $100 worth of scrip, to be divided among four different club members. Lane County Townsend scrip circulated in Eugene, Oregon. Spaces for stamps appear on the reverse.? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 330 Given the good humor with which some of these Townsend Tests were reported upon nationally, the atmosphere in which they were undertaken resembled more a contest than a serious experiment. Choosing the winning participants, by lot or some other kind of vote, was itself part of the fun. Once underway, the spending habits of the winners were usually subject to droll scrutiny by the newspapers, with the expectation that part of the game entailed unloading their purchasing power as soon as possible. C. C. Fleming?s purchases were documented in minute detail. Harry Fichter blew through his allotment in twelve days, starting off with linoleum flooring for his mother. Carrie Saben took the entire month, beginning with some haberdasheries for her husband, upon whom she doted. Some spenders encountered pitfalls and larger problems. Retta Freeman, the second Chelan tester, had her monthly state pension of $17.50 a month temporarily docked, as state law required recipients to be indigent. Rufus Pack in South Dakota simply couldn?t unload his funds within thirty days: a set of false teeth that he had ordered did not arrive in time, leaving him with sixty dollars unspent. Carrie Saben had to pause in her shopping to recover from an automobile accident. John S. Adams, one of the two Cle Elum ?testers?, alas died with $25 left to spend. Isom Lamb declared that the remaining balance of this allotment should go towards funeral expenses. The substance of any serious experiment, though, lay not in getting people to spend money in a hurry, but in assuring that the earmarked funds continued to circulate as rapidly as possible, after their initial expenditures, to build up transaction tax receipts. Chelan?s experience showed how difficult this could be, sabotage or no. After both Fleming and Freeman had gone through their allotments, only $67.40 remained to finance the next recipient. Bergenfield merchants managed to collect only $26.40 in tax receipts, and that included five dollars contributed by the National City Bank of New York, which wanted specimens of the scrip for its currency collection. Carrie Saben produced some $19.77 for her club. Halfway through its month, Cle Elum?s test produced less than half of the sum necessary to replenish the pension fund. Yet once these various ?testers? ran through their $200 grubstakes, the publicity faded to the detriment of the tests. In Eugene, for example, the local paper reported that the first piece of scrip was turned in, completely stamped, barely two weeks after the experiment began. Yet the next newspaper mention of Eugene?s Townsend Test scrip did not occur until late December, when the Townsend club announced that remaining scrip would be called in for redemption, whether stamped or not. After a peak circulation of $700, some $200 was still outstanding. Isom Lamb Markets his Prosperity Plans Generally, the paltry tax take from Townsend Tests around the country seemed to disprove the viability of the Townsend Plan, but this did not dissuade Isom Lamb from pursuing bigger ambitions. Francis Townsend himself had dismissed the Chelan episode as ?useless because it is confined to a single locality.? Indeed, Lamb countered, it was the very smallness of scale that had doomed the various experiments. By the end of February, with the second phase of Chelan?s test coming to an end, Lamb proposed a national version of Townsend scrip, whereby upwards of ?100,000? people would receive $1 ?bonds? issued against funds deposited in banks. In this stamp scrip scheme, pensioners would be obliged to spend their $200 in bonds within thirty days. Each bond would have to be validated with a two-cent stamp applied every three days to keep circulating and would be retired after accumulating fifty-five stamps (with a ten percent margin for plan expenses). No bond could remain outstanding for more than seven months. While these features seemed to address the velocity problem encountered in Chelan and elsewhere, what really distinguished Lamb?s proposal was his evident readiness to market the bonds to pensioners in exchange for their upfront $200 investments, in real money. Rather than undertake light-hearted experiments in which ?testers? won the opportunity to embark on isolated community-financed spending binges, Lamb had converted the premise of the Townsend Tests into a marketable annuity that promised an indefinite series of $200 monthly payments in scrip based on a single investment of $200 actual dollars. Investors were promised that they would double their money, in terms of the scrip?s purchasing power, month after month, all financed by the financial magic of continual stamp sales! Only on the most extravagant assumptions as to scrip turnover could Lamb?s plan be anything but a pyramid scheme. At this point, alarmed that Lamb was using his relationship with the Townsend Plan to fleece the elderly, the national organization disavowed their Springfield, Oregon?s Townsend scrip was modeled on Eugene?s. Spaces for stamps appear on the reverse.? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 331 former organizer, and a Wenatchee gathering of Townsendites voted to remove Lamb as their delegate. On top of this, the Chelan Chamber of Commerce issued a report sharply critical of its Townsend Tests, concluding that they ?proved that needy old people can spend $200 in one month, nothing else.? Lamb also bickered with Chelan authorities about the size of the tax take, claiming that the low reported numbers did not include the funds set aside to finance Retta Freeman?s purchases, as well as those of her successor. Taking those sums into account, Lamb claimed, the Chelan tests were actually working. Nonetheless, by the beginning of March 1937, Lamb was out of Chelan and out of a job. Though repudiated by the national Townsend leaders, Isom Lamb was careful himself not to break with the organization, as he needed his association with the Townsend movement to sell his bonds to elderly investors. Indeed, he defended his plan on the grounds that it was unfolding now, whereas the prospects for the Townsend Plan ever becoming national law were uncertain at best. At the beginning February Lamb had recruited Townsendites in Ogden, Utah to start a test in that town; with his Washington state links severed, Lamb relocated to Utah to continue organizing on behalf of his bond plan, now styled as the ?Utah Prosperity Plan.? Though not himself from Utah, Lamb?s credibility was helped by the fact that he was Mormon, and that his wife, Miriam, was a Utahn and had family in Parowan. Invited to promote his ideas in Utah by Con Theuson, the state Townsend manager, Lamb encountered such receptive audiences that he effectively took over the Townsend clubs in Weber County, converting them into vehicles for promoting and using his prosperity bonds. Establishing his headquarters in Salt Lake City, Lamb embarked upon a recruiting effort to build support for his bond plan across the state, using the same organizational techniques by which the Townsend movement itself had spread. Initially, Lamb proposed six Townsend Tests in Logan, Brigham, Ogden, Price, Richfield, and Provo, mobilizing the local club?s members to undertake the necessary solicitation of business support, first to accept the prosperity bonds in payment for goods and services and second to purchase the necessary stamps. Business cooperation on that scale was a tall order, and Lamb tried to ease this by establishing redemption facilities at which merchants could convert their bonds into cash without any further need to apply stamps. By the third week of March, Lamb officially launched the ?Utah National Prosperity Plan?, now completely separate from the Townsend movement, with an organization of that name incorporated under Utah law by Jeremiah Stokes, a Salt Lake City attorney and author who ten years previously had himself been convicted of securities fraud. Stokes additionally served as treasurer of the plan. Miriam Lamb served as vice president, and J. D. Lamb, identified as Isom?s brother, was installed as ?national cashier.? Investors recruited from the ranks of Utah Townsendites were invited to join the plan with a membership fee of 50 cents a month, which would make them eligible to be chosen to receive $200 allotments of Lamb?s prosperity bonds whose circulation, Stokes maintained, would generate proceeds from prosperity stamps sales such to assure the pensioner ?a perpetual income of $200 a month.? The scrip is an attractive product of the Utah Bank Note Co. (founded in 1935, and still in business as UBN Printing Services), with black text on green safety paper and an ornate green border framing the text announcing the entity, the location of its headquarters, and the name and amount of the denomination. At the center of the note is a somber triptych of facsimile portraits of (from left to right) Isom Lamb, Miriam Lamb, and Con Thueson, above which is a banner bearing the Latin expression ?Viam Ducimus? (We Lead the Way). Underneath the portraits are instructions as to how the note should circulate. To the left of the note are fields identified where the pensioner is to apply an ink thumbprint, and in which city the bond?s redemption office can be found. To the right of the note, underneath a vignette of the prosperity stamps which are to be affixed to the back, are the signatures of Isom Lamb (President) and Jeremiah Stokes (Treasurer). So far, Lamb?s prosperity plan represented just a more extensive and ambitious version of the earlier Townsend Tests. But there were two important differences. First, in addition to acquiring bonds by being chosen to receive their gratuitous allotments, members could actually ?self-finance? by purchasing their initial supply of bonds for $200 in real money, secure in their expectations that the stamp sales generated from the bonds? circulation would provide them with an indefinite monthly income of $200 A Pension Prosperity Bond of the Utah National Prosperity Plan, Inc. These probably went into circulation in late March, 1937. Spaces for stamps appear on the reverse. A similar note issued in May replaces the word ?Utah? with ?United?, reflecting the organization?s change of name. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 332 (presumably also denominated in bonds). Secondly, members who so purchased their bonds were encouraged to recruit others to do the same, with the proceeds of those later sales reimbursing the earlier bond purchasers. Thus, what Lamb and his associates were embarking upon was not merely yet another experiment with ?velocity dollars?, but a scheme of chain marketing based upon the fantastic premise that Lamb?s bonds would circulate so quickly that the investor-members of the Utah National Prosperity Plan would double their money in one month. In launching this scheme, the publicity given to lucky volunteer bond recipients became the hook that brought in self-financers prepared to pay upfront. Lamb?s entry into Utah split the Townsend movement there, but significant numbers of Townsendites migrated into Lamb?s prosperity plan, providing staff for the new enterprise. In addition to Con Thueson, the president, vice-president, and secretary of the Weber County Townsend organization all joined with Lamb and vouched for his legitimacy among Townsend supporters. To expand their sales outreach, plan officials conducted classes in which attendees were promised their own $200 a month in bond salaries for recruiting new pensioner-investors. By the end of March, the first six pensioners in Ogden signed contracts, paying the plan $200 in exchange for the monthly equivalent in bonds, as did seven others Salt Lake City. As Isom Lamb embarked that spring upon a speaking tour to spread his financial gospel throughout Utah, a number of problems emerged. The Ogden Chamber of Commerce came out against the plan, urging merchants not to participate in Lamb?s ?uneconomic and entirely unworkable brainstorm.? The city commissioners of Ogden voted to refuse to accept bonds in payment to the city. Likewise, the Weber County medical association declared that its members would not accept bonds in payment for their services. Without pronouncing on the merits of the plan, the LDS Church advised that it did not endorse use of the bonds and was otherwise not connected with scheme. In particular, the Church announced it would not accept the bonds in payment of tithes, as this would have required the Church to purchase the stamps necessary to keep them circulating. Of all these headwinds, opposition from organized business interests would have been particularly problematic, as merchants? cooperation was essential in maintaining the circulation and stamping of the prosperity bonds. On top of all this though came a blow from the state of Utah in the form of a letter in mid-April from A. Ezra Gull, the director of the state?s securities commission, advising the public that while the UNPP was a Utah corporation, it had not secured permission to market its ?fiat money? bonds to investors. Gull questioned ?the advisability of paying $200 for bonds for which a market has not been established.? Lamb struck back with a libel suit against Gull, claiming moreover that as a charitable enterprise the UNPP was not obliged to register its bonds with the state. Pending a resolution of this conflict, Lamb and his group continued its recruitment, expanding beyond Salt Lake City and Ogden to establish a presence in Provo, Price, Brigham and other cities. By early May at least sixty members of the plan received their first $200 installment in bonds. With an eye towards operating in other states, the group altered its name by substituting ?United? for ?Utah?, a change that was duly reflected in subsequent printing of its prosperity bonds. A third version of Lamb?s bonds, issued in late August 1937, features a single portrait of Isom Lamb and the name ?United Prosperity Plan, Inc.? In addition to stumping around the state and promoting his ideas via a weekly radio program, ?Isom Lamb?s ?Now!??, Lamb even prevailed upon the first two Chelan testers, C.C. Fleming and Retta Freeman, to travel to Salt Lake City to provide their testimonials on behalf of the scheme. Conflict with the authorities came to a head in late June, when Utah?s Secretary of State called for the plan?s officers to appear before him to argue why their corporate charter shouldn?t be revoked. Even as he pushed back against opposition by the state and the Chamber of Commerce, Lamb had incorporated the plan in California as well, and sought permission from officials there to market the bonds. By July, Lamb and Gull had agreed to drop actions against each other if the UNPP would formally apply for the state?s permission to issue bonds. Lamb delayed providing the state with an audit of the plan?s accounts, and for good reason. Before the state could settle with the UNPP, Lamb and the organization of which he was president parted ways when it was revealed that Lamb had taken $17,000 from its reserves, ostensibly to fund his expansion activities in California. Whether this was true or just an excuse for theft, Lamb?s actions crippled the plan?s ability to A Prosperity Trade Certificate issued by the United Prosperity Plan, Inc. Dated August 19, about the time of Isom Lamb?s departure from the organization.? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 333 redeem its bonds, leading desperate investor-members of the plan to assess themselves additional contributions to restore their backing. With Isom and Miriam Lamb having fled back to the Los Angeles area, J. D. Lamb, Thueson, Stokes, and the remaining leaders in Utah unsuccessfully pursued a civil suit against their former boss, seeking return of the funds. In late September they concluded a settlement with state authorities, reincorporating their plan as an organization ?to carry on Christian, social and charitable work?, and changing its name back to ?Utah?. While it was unclear if the reconstituted plan could dig itself out of the financial whole in which Isom Lamb had left it, the question was rendered moot when the federal Securities and Exchange Commission weighed in. On October 18 a federal court in Utah enjoined Lamb and his confederates from selling prosperity certificates without seeking their registration with the Securities and Exchange Commission. With that, Lamb?s ambitions to strike it rich were permanently put to rest. Conclusion Ultimately, some twenty different Townsend clubs (including Isom Lamb?s prosperity bonds) either considered or actually embarked upon scrip experiments. Though the Townsend movement?s local flirtation with scrip ended in 1937, popular interest in a pension scheme involving scrip continued into 1938, with California?s electoral struggle over the ?Ham and Eggs? initiative (see Paper Money, Nov.-Dec. 2008). As with other reform movements with a monetary element, like Sinclair Lewis?s ?End Poverty in California? campaign of 1934 (see Paper Money, Jan.- Feb. 2012), Dr. Townsend opposed them as either distractions from his own agenda, or unacceptably radical. Despite the lack of any decisive legislative victories, Townsend and his army of the elderly continued to be a factor in pension politics at the state and national level. In 1938, efforts were mounted to create pension plans in eight states, though Townsend himself opposed these as well. Generally, Dr. Townsend had an unfortunate habit of attacking not only opponents of old-age pensions, but those proposing pension plans that competed with his own. In this way, he alienated potential allies for the broader cause. Nonetheless, Edwin Amenta credits the Townsend movement with having pushed Roosevelt and the Democrats in 1939 to consider revisions to the original Social Security Act that accelerated payments and made them more generous. By the 1940s, however, the movement declined in relevance and became marginal to the subsequent politics of Social Security. REFERENCES Amenta, Edwin, When Movements Matter: The Townsend Plan and the Rise of Social Security. (Princeton University Press, 2008). Committee on Old Age Security, The Townsend Crusade (New York: The Twentieth Century Fund, 1936). Daily Herald (Provo, Utah), various dates, 1937. Eugene (Oregon) Guardian, various dates, 1937. Gatch, Loren, ?A Satirical Note on the ?Ham and Eggs? California Scrip Movement of 1938-1939? Paper Money (Nov-Dec 2008), pp. 459-461. Gatch, Loren, ?A Professor and a Paper Panacea: Irving Fisher and the Stamp Scrip Movement of 1932- 1934? Paper Money (March-April 2009), pp. 125- 142. Gatch, Loren, ?Ending Poverty in California and the ?Sinclair? Dollar??, Paper Money (Jan-Feb 2012), pp. 46-50. Holtzman, Abraham, The Townsend Movement: A Political Study (New York: Octagon Books, 1975). La Grande (Oregon) Observer, various dates, 1937. New York Times, various dates, 1937. North Adams (Mass.) Transcript, various dates, 1937. Ogden (Utah) Standard-Examiner, various dates, 1937. Post-Register (Idaho Falls, Idaho), various dates, 1937. Patch, B. W. ?Agitation for Pension and Scrip Schemes? Editorial Research Reports Vol. II (1938). Provo (Utah) Evening Herald, various dates, 1937. Salt Lake (Utah) Telegram, various dates, 1937. Salt Lake (Utah) Tribune, various dates, 1937. Vanderwende, George S. ?The Chelan-Townsend Test Fund and its Checks? Paper Money (Spring 1972), pp. 88-89. Various?examples?of?stamps?put?out?by?the?Townsend?movement. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 334 Entrust Your Notes to the Experts PMG was established in 2005 to provide expert and impartial authentication, grading and encapsulation services for paper money. Today, it is the world?s leading third-party paper money certification service, trusted worldwide for its accurate and consistent grading, its commitment to impartiality and its comprehensive guarantee of authenticity and grade. Learn more at PMGnotes.com/about 18-CCGPA-4434_PMG_Ad_IntroGuarantee_PaperMoney_SeptOct2018.indd 1 7/31/18 2:52 PM THE BANKNOTES OF ZAMBIA AND MALAWI REFLECT THE ECONOMIC PROBLEMS OF THESE TWO AFRICAN NATIONS by Carlson R. Chambliss In the November/December, 2014 issue of Paper Money I presented an article entitled ?Zimbabwe?s Plunge into Monetary Madness.? The policies of Robert Mugabe and his cronies drove this once fairly prosperous nation (by African standards) into hyperinflation and bankruptcy, and Zimbabwe has yet to recover from the numerous errors in its economic mismanagement. The other two components of the defunct Federation of Rhodesia and Nyasaland both became independent in 1964 as Zambia and Malawi, but both achieved independence with the full support of the United Kingdom and the international community. Both of these nations replaced the previously used Federation notes with new notes in 1964, and for both countries the denominations of the notes included 10/- .?1 and ?5. All three countries (including Rhodesia) declined to issue ?10 notes, although they had been in use while the Federation was still an established entity. The Federation pound was at par with sterling, which was worth $US 2.80 at that time. In 1967, however, Great Britain devalued its pound to $US 2.40, and shortly thereafter Zambia and Malawi decimalized their currencies (in 1968 and 1971, respectively). As was typical of most currency changeovers in the British Empire, the new unit was the equivalent of 10/- in the former currency. Both Zambia and Malawi termed their new currency unit the kwacha, which means ?dawn? in either the Chinyanja language of Zambia or the closely related Chichewa language of Malawi. Both of these languages are Bantu languages that share many common characteristics with other languages spoken in this part of Africa. For the fractional units, however, Zambia chose the name ngwee meaning ?light? or ?bright,? while Malawi chose the name tambala, which is the Chichewa word for ?rooster,? whose crow at dawn is a familiar sound. It also was the icon of the Malawi Congress Party that soon was to become the sole legal political party of Malawi. Zambia is a mineral-rich country, and by far its most important resource is copper, of which Zambia is a major world producer. In order to keep its economy afloat, Zambia must export all of the copper that it mines, and copper is a commodity whose market price is highly volatile in world markets. In the case of Zambia currently about 85% of its foreign currency earnings come from copper, and at times this figure has been as high as 95%. When copper prices are down the economy of Zambia can go into a tailspin. Zambia?s first banknotes were issued in 1964 in denominations of 10/-, ?1, and ?5. As one might expect they were printed by the foremost British securities printing firm, Thomas De La Rue. All three notes feature the coat of arms of Zambia on their faces, a design that closely resembles that of the former Northern Rhodesia. In 1963 a trial design for a ? note prepared by Harrison and Sons included a portrait of Queen Elizabeth II, but this design was rejected. A few of these trial notes exist in printed form, and they do command very high prices. In the 1960?s only a few enthusiasts were collecting foreign banknotes, and relatively few of the Zambian notes of 1964 were saved in any grades. They are especially scarce in CU condition. Specimen notes do exist, and these are less expensive than are the issued notes when the latter are in CU grade. This issue was in use for only four years, and only one signature variety exists for each value. In 1968, the first of the decimal notes were issued, and between 1968 and 1992 all Zambian notes bore a portrait of Kenneth Kaunda (1924 - ), who was president of Zambia from 1964 to 1991. The first decimal notes resembled the previous issue, but there were two new values for 50 ngwee and 20 kwacha that would correspond to 5/- and ?10 in the former currency. These notes are less rare than are the pre-decimal notes of 1964, but they are still expensive when in high grade. In 1969 the designs of these notes were modified somewhat, but the sane five denominations were issued. The issue types of 1969, however, have more than one signature type, and the later varieties are rather more abundant than are the earlier issues. Although the Zambian notes of the 1960s would have made superb investments, at the time there was far more interest in the postage stamps of this country. Both Zambia and Malawi have issued stamps in a responsible fashion, but most of the early postal issues of these countries are worth little more today than what they sold for as new issues in the 1960s. Stamp collecting has been undergoing a steady decline in popularity over the past couple of decades, but in the 1960s in contrast to philatelic issues there was amazingly little information available about the banknotes of many countries, and this would apply especially to the newly independent nations of Africa. In 1973 a 5-kwacha note was issued for the first time, and in that year, there was also a special ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 336 commemorative 1-kwacha note for the inauguration of the Second Republic. During the 1970s there were also new types of notes for 1, 2, 5, 10, and 20 kwacha, all of which feature Kenneth Kaunda and the Zambian coat of arms on their faces. There was also an essay note for 20 kwacha that depicts the National Assembly building on its back. The British firm of Bradbury, Wilkinson & Co. printed two of the values, while TDLR printed a new 20 kwacha note that was rejected. Probably the Bank of Zambia people preferred the BWC product to the new TDLR design and thus chose to reject the latter. The economy of Zambia was affected drastically by Ian Smith?s unilateral declaration of independence for Rhodesia late in 1965. As British colonies the two Rhodesian entities had closely interlocked relations, but Kaunda chose to boycott Ian Smith?s Rhodesia as much as was possible. Previously all of Zambia?s copper for export abroad had been shipped by rail to Portuguese- controlled Benguela (Angola) or Beira (Mozambique), or to Durban in South Africa. Zambia has good relations with China and with Tanzania, and so the Tan-Zam (or TAZARA) Railroad was built with a great deal of Chinese help linking Zambia with Dar Es Salaam in Tanzania. This was a huge engineering project that was not completed until 1975. As a nation adjoining Rhodesia, Zambia was increasingly subject to raids from its southern neighbor. Also, oil prices became much higher during the 1970s, while the price of copper declined sharply on international markets. Although Zambia was a fairly democratic country by African standards, the United National Independence Pary (or UNIP) of Kenneth Kaunda dominated the country?s politics, and it was made the sole legal party of Zambia in 1973. This was when the so-called Second Republic was inaugurated. Zambia was becoming, in fact, a dictatorship. There were some arrests and some censorship, but this was a very mild affair compared with what happened in some other African nations. During these years a great deal of effort was devoted to improving the educational system at all levels in Zambia. A very important financial project involved the Zambian government acquiring a controlling interest in the various mining companies of Zambia, most of which were still owned by British interests. A very large undertaking was replacing all of the mining engineers and other technical personnel of European race with Africans with adequate training, and the Zambia government had to admit that numerous problems were encountered involving the ?Africanization? of its skilled labor force. For the first 15 years or so of its independence the currency of Zambia remained reasonably stable. In 1972 the value of the kwacha even reached as high as $1.55 which was above its official parity, and in 1980 it still was exchanged at a rate of about $1.30 per U. S. dollar. By then, however, Zambia was affected both by lower copper prices coupled with much higher oil prices. The national debt for this country became quite large, and the currency rapidly began to lose value. In 1985 the exchange rate was about 2.3 kwacha per dollar and by 1987 and 1989 the exchange rates had fallen to about 8.7 and 12.9 per dollar, respectively. During the 1990s the value of the currency declined sharply with mean exchange rates per $1 US of 29, 62, 160, 435, and 770 in 1990, 1991, 1992, 1993, and 1994, respectively. As a result of the sharp decline in the value of the kwacha, the banknote issues of the Kaunda administration printed between 1980 and 1991 become far more abundant and are both fairly inexpensive and readily obtainable. The notes first issued in 1980 depict a smiling portrait of President Kaunda together with a perching image of a fish eagle on their faces. The fish eagle has become the iconic symbol of the Bank of Zambia, and all notes issued since 1980 have depicted this bird on their faces. In 1986 a 50-kwacha note was added to this set, and on its back the ?Chainbreaker? statue that stands outside the National Assembly in Lusaka is featured. All Zambian notes issued after 1986 have incorporated this symbol into their back designs. The notes of 1980-86 were printed by TDLR, but a new printer was chosen for the series of notes that were printed between 1989 and 1991. On their faces these notes include the Zambian coat of arms along with a Kaunda portrait and a fish Most Zambian banknotes issued prior to 1992 depict a smiling portrait of Kenneth Kaunda along with the Zambian coat of arms. An image of a fish eagle was added in 1980, and all notes issued in 1986 and later years depict the Chainbreaker statue that stands outside the National Assembly building in Lusaka. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 337 eagle in flight. The first bunch of these range in face value for 2 to 50 kwacha, but in 1991 notes for 100 and 500 kwacha were added for the first time. Due to inflation, however, the 500 kwacha note had an exchange value of only about $US 5 or 6 at the time of issue, and its value soon fell well below those levels. Since the end of Kaunda?s administration late in 1991, the Bank of Zambia has chosen not to depict portraits of current presidents on its notes. All feature a perching fish eagle on their faces together with a circular seal at the lower left that gives the date of issue of the note. Each note features a different animal on its back, and antelopes, zebras, elephants, aardvarks, lions, and leopards are all represented. In 1992 a new series of banknotes was introduced, and the same basic designs were used for the next two decades despite much inflation. Each denomination features a different animal on its back. For the 1000 kwacha note this was an aardvark. The highest value for this series was for 50,000 kwacha. Beginning in 2003 the 500 and 1000 kwacha notes were printed on polymer plastic, and most of these were produced in Canada. Initially all of these notes were dated 1992, although in 1996 a new governor took office at the Bank of Zambia, but the 1992 date was continued. Since 2001, however, these notes are dated annually, and most years from then on have been utilized. The initial issue of notes was for 20, 50, 100, and 500 kwacha, but in 1996 notes for 1000, 5000, and 10,000 kwacha were added. No coins were in circulation at this time, and they did not make their appearance again until 2012. With ongoing inflation 20,000 and 50,000-kwacha notes were added in 2003. The 20 kwacha note, which saw little use, was phased out after 1996, but the heavily used 500 and 1000-kwacha notes were drastically modified in 2003 by being printed on polymer plastic rather than paper. None of the other denominations were converted to polymer. All notes of these types featured at least a vertical thread and a watermark, but metallic and holographic strips, zones printed in special inks, holographic impressions, etc., were added in later years. As might be expected the 20, 50, and 100-kwacha notes were relatively simple, while most of the higher values featured an increasingly complex array of security features. Initially all of the notes of the 1992-2012 types were printed by TDLR, but other printers such as Oberthur in France and Giesecke & Devrient in Germany produced many of the later issues. The polymer plastic notes were mostly printed in Canada either by the British American Banknote Co. or by the Canadian Banknote Co. Eventually the German firm also printed some of these. There were some problems encountered with the first bunch of polymer notes printed in 2003. The serial numbers wore off both the 500 and 1000 kwacha notes quite easily, but this matter was soon corrected before this series of 2003 was completed. Only three persons signed as governor of the Bank of Zambia during this entire period, but the numerous varieties arise from the different dates on these notes. Incidentally during the Kaunda administration there were no less than nine different governors of the Bank of Zambia, all of whom signed notes. All together there are some 80 varieties in the entire issue of notes from 1992 to 2012, but none of them are rare. Getting all of these in choice condition would be a challenging project, however, especially for some of the 20,000 and 50,000-kwacha values. I was in Zambia in 2001 to view a total solar eclipse. At that time the exchange rate was about 3500 kwacha to the dollar. There was no black market, but different rates were offered by banks for $100 FRNs of the USA depending upon whether they were of the new (Series 1996 or later) or the older types (Series 1993 or earlier). The more recent notes were exchanged for the kwacha at a better rate. Apparently, the bank officials were worried about the so-called ?super hundreds? that were being printed in the Middle East. Interestingly sellers of souvenirs to visitors preferred their own money to lower denomination USA currency. By 1999 the 20-kwacha notes were no longer in circulation, but ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 338 there were plenty of well-worn 50 and 100-kwacha notes. The 500 and 1000-kwacha notes were still printed on paper and usually also well-worn, while the 5000 and 10,000-kwacha notes were usually in fairly decent condition. In a poor country such as Zambia, these notes represented serious money to many of their holders, and they did not change hands as often as did the lower denomination notes. Except for a relatively small downtown business district the streets of Lusaka were not lit by streetlamps, and in such a city foreign visitors did not venture from their hotels at night. In 2012 the Bank of Zambia did a 1000-to-1 conversion. Notes in the old currency dated 2012 were still printed alongside notes in the new currency, but there was no confusion since the former were in values of thousands of kwacha whereas the new notes were denominated for far lower amounts. The term ?new kwacha? is not used on these notes that are in denominations of 2, 5, 10, 20, 50, and 100 (new) kwacha. The designs are essentially the same as before except that there were no 2000 or 100,000-kwacha notes in the old series. It seems that several different securities printing firms are being used. I have noted Giesecke & Devrient (Germany), Oberthur (France), and J. Eschedde (Netherlands). There also are coins for 5, 10, and 50 ngwee, and for 1 kwacha. These are the first coins that Zambia has used for several decades. The currency has softened a bit over the past two decades, and the exchange rate is now very nearly 10 (new) kwacha to the dollar. When first issued the new notes were dated 2012, but notes dated 2014 and 2015 are also in circulation. Thus, we can expect the annual dating of Zambian notes will continue. This could become rather confusing if different printers work on the same values in a given year. We now turn to the second of the African countries under consideration in this article. Malawi is much smaller in area than is Zambia, but it has a much higher population density. Both the words Malawi and Nyasa refer to the large and deep freshwater lake that constitutes much of the surface area of this nation. Some of this lake is also shared with Mozambique and Tanzania, but the Malawi portion represents about 22% of the area of the nation, whose total area is about the same as is that of the state of Pennsylvania. Malawi lacks significant mineral resources, but its fertile soil yields cash crops of which tobacco, tea, and sugar are the most important. For a few years Malawi also tried to export maize (corn), but nearly all the maize grown there was necessary for domestic consumption. Malawi is far more rural than is Zambia, and in fact only five settlements (Blantyre, Lilongwe, Zomba, Mzuzu, and Kasungu) are large enough to be considered as cities. For the first three decades of its existence as an independent state Malawi was under the very firm rule of Dr. Hastings Kamuzu Banda (1898-1997). Banda had total control of the Malawi Congress Party, the only legal political party in Malawi for three decades, and in 1971 he was proclaimed President for Life. Banda was a firm anti-Communist, and Malawi was one of very few African nations to have diplomatic relations with South Africa at a time when that nation was still under Apartheid rule. Banda?s regime has sometimes been described as a totalitarian state, but in any case, it was Banda alone who decided what he thought was good for Malawi. All adult Malawians were required to be members of the Malawi Congress Party, and there was considerable friction between Banda and the Jehovah?s Witnesses over this issue. No opposition to Banda?s government was permitted inside Malawi, and many persons with differing political views chose exile or were imprisoned for long terms. The first set of Malawian notes ? for 5/-. 10/-. ?1, and ?5 ? were issued in 1964. These all bear the signature of the governor of the Reserve Bank of Malawi, but a couple of years later a second issue was released that bore also the signature of the general manager of the bank. This set included only the three lower values. For all of the notes of the Banda era the faces of the notes were essentially the same. They portrayed a facial portrait of Hastings Banda together with a view of Lake Malawi. Banda was already well into his 60s when he took control of Malawi, and the In 2012 the Zambian kwacha was revalued at a rate of 1000 (old) to 1 (new). The 2 kwacha and 100-kwacha notes were for values that had not appeared in the previous series. The former was printed by Oberthur in France, while the latter was produced by Enschedde in the Netherlands. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 339 same portrait was used up to 1994 by which time he was already in his 90s. The backs of most of these notes depict workers picking tobacco, tea, or cotton. As is the case with Zambian notes, the early notes of Malawi are expensive especially when in high grade. The first decimal notes ? for 50 tambala, 1, 2, and 10 kwacha ? closely resemble the earlier notes in design, and all issues of 1964-71 were undated. In 1973 there was another series of undated notes ? for 50 t, and 1, 5, and 10 kwacha ? that moved Banda?s portrait from the left side to the right side of the note. There was no 2 kwacha note in this issue, and that proved to be the case for all later issues of Malawian notes. All notes of the Banda era feature a watermark of a rooster, the icon of the Malawi Congress Party. Beginning in 1974 Malawi notes are dated, and there are numerous printed dates between 30.6.1974 and 1.1.1994, which proved to be the last date for the notes for the Banda era. A 20-kwacha note was added in 1983, and the 50 tambala notes were phased out after 1986. Notes for 50 kwacha were added in 1990 and for 100 kwacha in 1993. The dated notes now carry only the signature of the governor of the reserve bank. The backs of these notes no longer feature just agricultural scenes, and the University of Malawi in Zoma, government buildings including the Reserve Bank headquarters in Lilongwe, the Independence Arch in Blantyre, and elevators for holding maize are now depicted. For the most part the dated notes are considerably lower priced than are their undated counterparts, and only a few of the dated notes in CU condition should prove expensive for most collectors. The WPMC recognizes 32 different designs for all of the notes of Malawi from 1964 to 1994. If one considers the different dates as major varieties, this total increases to rather more than 70 notes. For the first 15 years of independence the currency of Malawi proved very stable. Between 1970 and 1980 the Malawian kwacha was officially valued at $US 1.20, and its market value held close to this amount. In 1972 it even rose a bit to a rate of $1.30 in U. S. currency. After 1980, however, the value of the Malawian kwacha began to fall, but its decline in value was nowhere near as rapid as was the case for the Zambian currency. By 1986 the exchange rate was about 2.3 kwacha to the dollar, and by 1991 this rate had increased to 2.8 per dollar. By 1994 this rate was up to 8.7 per dollar, and by 1997 and 2000 the rates were up to about 20 and 44 per dollar, respectively. The Malawian economy was strengthened by heavy overseas remittances, and under Banda?s rule many Malawian workers were employed in the mining industries in South Africa. Eventually Hastings Banda, who was by then more than 90 years old, agreed to hold honest elections, and he was voted out of office in 1994. The winner was Bakili Muluzi, who was the president of Malawi from 1994 to 2004. His regime was far less dictatorial than was that of Banda, but there was a significant amount of corruption. On June 1, 1995 a new set of banknotes portraying Muluzi on their faces was issued. These were in six values ranging from 5 to 200 kwacha. The backs of these notes are similar to those of the Banda era, but the 200 kwacha note (not previously issued) depicts a herd of elephants. The watermark is now that of a fish rather than the rooster that appeared on all Malawian notes of the previous three decades. The Muluzi notes were only in circulation for about two years, but they should prove easy to obtain and fairly inexpensive. Apparently either Muluzi himself or officials at the reserve bank decided to drop his portrait and replace it with that of John Chilembwe (1871-1915). Chilembwe was a Baptist pastor, who had received some training in the United States. He objected strongly to the forced labor practices then prevailing in the British-controlled Nyasaland Protectorate (the predecessor of Malawi), and in 1915 he led a small-scale revolt against colonial rule. This revolt was soon suppressed and Chilembwe was killed, but he is regarded as a hero today by most Malawians. The Chilembwe notes were in use for about For three decades all notes of the Reserve Bank of Malawi had essentially the same face design, a portrait of Hastings Banda together a sunrise scene over Lake Malawi. Banda was 66 years old in the year of independence (1964), and he was therefore 96 years old by 1994. His portrait remained the same, however, on all of these notes. Depicted here are a 1-kwacha note from 1986 and a 5-kwacha note from 1990. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 340 15 years, and they bear dates from 1. 7. 1997 to 31.1.2011. The denominations of the previous Muluzi issue were used, but a 500-kwacha note was added in 2001. The higher values depict government buildings or monuments, but the three lower values depict village scenes or tea harvesting on their backs. The watermark used on all notes is that of John Chilembwe. There was one commemorative issue that was issued for the 40th year of Malawian independence in 2004. The face depicts the Independence Arch in Blantyre, while the back features the University of Malawi in Zomba. Chilembwe?s face still appears on this note in watermark form. Quite a bit of inflation occurred while this series was in use, and the 5 and 10-kwacha notes were discontinued after 2004 and 2006, respectively. By 2006 the exchange rate for the kwacha stood at about 135 per $1 US, and so these two values were worth less than a dime each. It is an easy matter to obtain a basic type set of these notes, although acquiring all 46 date varieties will require some patience. Over the interval that these notes were in production there were four different governors of the Reserve Bank of Malawi, while additional security features (mostly in the form of holographic strips) were added to the higher values, and this makes for as many as nine distinct varieties for a given denomination. In 2012 Malawi introduced an entirely new series of notes. There was also a new issue of coins for 1, 5, and 10 kwacha, and the notes are for 20, 50, 100, 200, 500, and 1000 kwacha. These notes which are much smaller than their predecessors all feature depictions of the Reserve Bank of Malawi and a cichlid fish on their faces together with the portrait of a noted Malawian. The notes were printed by TDLR. (I should note that Lake Malawi has more endemic species of fishes than does any other freshwater lake in the world, and many tropical fish marketed throughout the world can trace their origins to this lake.) The watermarks on these notes are of the persons portrayed. The three higher values feature holographic strips, but the three lower values function in commerce only as small-change notes. Initially all notes of this series were dated January 1, 2012, but several values have been reprinted with more recent dates. In 2016 a note for 2000 kwacha was added to this series. Both it and the 500 kwacha note portray John Chilembwe, but the 1000 kwacha depicts Hastings Banda, who is still respected by many Malawians despite his hard-line rule. The last few years have not been kind to the Malawian kwacha. In early 2013 it stood at about 360 to the dollar, but by mid-2016 the exchange was about 730 per $1 US. At the present time the exchange has dipped to about 800 per dollar, and thus the new 2000 Between 1997 and 2011 all Malawian notes portrayed the early rebellion leader John Chilembwe (1871-1915). The 100-kwacha note features government buildings in the capital city Lilongwe on its back. The back designs of these notes largely continued with those that were in use during the Banda years. In 2012 a new series of notes was introduced by the Reserve Bank of Malawi. The 1000 kwacha note features a portrait of Hastings Banda, who is still respected by many Malawians despite the dictatorial nature of his regime. The 2000-kwacha note was added in 2016 and includes a portrait of John Chilembwe together with a map of Malawi. At current exchange rates this note has a face value of only $US 2.50, and so additional notes will be needed for this series in the near future. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 341 kwacha note has a face value of only about $2.50. Higher denomination notes will clearly be needed in the very near future. There seems to be something about this part of central Africa that leads to longevity among its political elite. (Is it the climate perhaps?) Both Kenneth Kaunda and Robert Mugabe are well into their 90s, but both men are still living. Kaunda lives in comfortable but not lavish retirement in Lusaka. Hastings Banda died at the ripe old age of 99, and his career as party leader and president did not really begin until he was past 60 years of age. Both Banda and Kaunda had been active in political organizations, however, well before their respective countries became independent. Both Zambia and Malawi continue to face economic difficulties. Zambia?s major problem is that it is far too dependent on just one commodity, viz., copper. Copper is often associated with other metals and in this part of Africa the other metal is cobalt, but it the case of Zambia, copper is by far the most important product that comes out of the ground. In the western USA mining firms such as Kennecott or Phelps Dodge will close down their mines if the price of copper falls too low, but Zambia does not have this option, since it cannot lay off its entire industrial workforce. It also cannot afford to store its mined copper in a huge ?Fort Knox? type depository, while waiting for higher market prices to develop before selling. In the case of Malawi, which has no mineral resources to speak of, only cash crops such as tobacco, tea, sugar, and cotton provide much foreign exchange. The health risks of tobacco are now known worldwide, and consequently demand and prices are in decline. The country is subject both to droughts and heavy rains that lead to floods, and both of these factors can be devastating to commercial agriculture. It turns out that a very high grade of cannabis can be grown in Malawi, but I have yet to hear of any country that bases its economy in large part on the legal cultivation and export of cannabis. Because of its higher degree of urbanization and industrialization Zambia has a gross domestic product that is about three times that of Malawi, but there is still a large amount of poverty in both nations. More Malawians work abroad than is the case for Zambians, and so the remittance income is a major component in the Malawian economy. The population of Zambia has grown from about 2.8 million at independence to about 17 million today, while that of Malawi has increased from about 3.2 million at that time to today?s figure of about 18 million. These correspond to growth rates of 3.40% and 3.25% per annum, respectively. Such rates of population growth are quite typical of African countries, although they are very high by the standards of Western nations. Both countries are functioning democracies today, although they experienced different regimes in their past. Although more autocratic towards the end of his rule, the Zambia of Kenneth Kaunda could best be described as a mild dictatorship or ?guided democracy.? The regime of Hastings Banda was far more dictatorial, and Banda controlled several of the enterprises of Malawi, but the money earned from these was very largely plowed back into developing the infrastructure of that nation. Little of it went into private foreign bank accounts or to the building of lavish palaces, etc. Despite the fairly responsible managements of their reserve banks, both nations have experienced a high degree of inflation since about 1980. At that time the Malawian kwacha was worth about $1.20 in U. S. currency, while the Zambian unit was valued slightly higher at about $1.30 U. S. Today these units stand at about 10,000 per dollar in Zambia and about 800 per dollar in Malawi. Over an interval of 38 years this corresponds to a decline in the value of the kwacha of 28.2% per annum for Zambia and 19.8% per annum for Malawi. In the case of Zambia for the most part the exchange rate for the kwacha has been more stable, but Zambia suffered a real binge of inflation during the early 1990s when the value of its currency plummeted. These rates are not exactly hyperinflation of the type experienced by several other African nations (most especially Zimbabwe), but the inflation that both countries have experienced is both severe and ongoing. In any case we can look forward to many new issues of their banknotes. References: Excellent references on both Zambia and Malawi are to be found on the Internet. These include detailed biographies of key persons such as Kenneth Kaunda and Hastings Banda. For detailed statistical information an excellent source is ?Africa South of the Sahara,? which is a reference book that is published annually by Europa Publications, Ltd., in London. For additional information refer to: Chambliss, Carlson R., ?Zimbabwe?s Plunge into Monetary Madness? in Paper Money, Nov./Dec., 2014, p. 422 Cuhaj, George S., ed., World Paper Money, Volume Three, 1961-Present, 20th Edition, Krause Publications, Iola, Wisconsin, 2014 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 342 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 WAIT 2389: END OF THE OBSOLETE ERA IN NEW JERSEY? by David D. Gladfelter ? Shown here is what may be the last obsolete bank note to have been issued for circulation in the state of New Jersey ? or at least the last such note to survive until the present. Issued by the Trenton Banking Company on June 1, 1865, signed by President Philemon Dickinson and countersigned by Cashier Thomas Johnson Stryker, it retains most of its original brightness and color, with a few light folds vertically and horizontally. This bank has had a long history of sound operation. Chartered by the New Jersey Legislature on December 3, 1804, it was New Jersey?s second bank and remained a state bank until 1958, when it consolidated with the First Mechanics National Bank of Trenton. In an address marking the bank?s 150th anniversary in 1954, then President Sydney G. Stevens said: After the turbulent Civil War years, the question of becoming a national bank was considered for the first time, in 1865. On April 11, the directors passed a resolution that it would be to their interest to organize as a national bank. However, after further consideration, on May 16th, the directors voted against this action by 5 to 3. In subsequent years the same question was taken up several times, but it was never approved. In more modern times the possibility of joining the Federal Reserve System has been studied frequently but no affirmative action ever has been taken. Apparently, a spirit of independence is part of the fiber of the institution?s being. Notes of state banks that were paid out by any bank after July 1, 1866, were made subject to a 10% tax by a March 3, 1865 amendment to the National Bank Act. This amendment was a deliberate attempt to drive state bank notes out of circulation. It is therefore somewhat surprising that the bank officials issued the note shown here, knowing that it would have to be called in within 13 months. Fortunately, the holder of this note saved it for posterity. George Wait, in New Jersey?s Money, lists as #1423 a genuine $2.00 note of the Mechanics Bank at Newark with a printed date of June 1st, 1866 (also listed by James Haxby as NJ-365 G12e). Since this bank converted to the Mechanics National Bank of Newark on June 9, 1865, the foregoing listings must be erroneous. Interestingly, the earliest known genuine New Jersey bank note was also issued by the Trenton Banking Company, on November 20, 1806. That note was illustrated in the July/August 2001 issue of this publication. A note mentioned in that article thought to have been issued earlier proved to be a counterfeit. Philemon Dickinson ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 344 U n c o u p l e d : Paper Money?s Odd Couple Joseph E. Boling Fred Schwan A Well Done Fake A week or so ago a specialist in African notes sent me a link to a current eBay lot in a prominent grading company slab (and a starting bid of $380) with a comment that it has a serial number defect that we both know. The defect identifies it as a counterfeit. I have rarely seen this particular fake in circulated condition, so I don?t know if it was made primarily to circulate (which it did) or primarily for sale to collectors (which it has done often). Figure 1 is a genuine example of the note; figure 2 is the counterfeit under discussion; and figure 3 is the back, which is the same for both genuine and counterfeit examples. See Boling page 349 Fun With the Hobby I am writing this report from my hotel room at the annual convention of the American Numismatic Association. Nowadays the association likes to call this mega event the World?s Fair of Money? or sometimes Worlds Fair of Money or even some other variations, but it is still the annual convention of the association and to me I like the old name much better. Still, I understand that times do change and that old fogies can be problems. In the days when I was first starting in paper money, the ANA convention was the really big annual paper money event. Do I mean in the days before the Internet? No, I mean in the days before Memphis! In most ways the convention is not the paper money show that it once was, but it is still a really big event and important to the paper money community. The major auction houses have done an amazing job producing significant sales of paper money for the conventions. This year is no exception to this new trend. In the old days the auctions often had no paper money. This year, and most, we have entire catalogs of paper money. Of course, the expansion of auctions in general paralleled the changes that I am talking about. Tonight Stack?s-Bowers is selling the John Herzog collection of government bonds. It is a great collection representing sixty years of collecting! The collection starts in the early 1800s and goes through World War I Liberty Loan bonds. It is these latter bonds in particular that excite me. After all, this is the one hundredth anniversary year of the end of the Great War. I regret that when I started collecting United States war bonds I did not go beyond World War II. Although I have never Figure 1 above and Figure 2 below ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 346 collected the Liberty Loan bonds, I have always liked them! I will be sitting there trying to keep from buying my first example and will be taking notes, but those are not the real reason that I will be there. The auction includes a really special bond. It is a Fourth Liberty Loan $50 Loan short coupon bond serial number one! Oh my. What a great piece that is. Quite correctly Stack?s-Bowers has a five-figure estimate on the piece. I cannot possibly justify spending so much money on a World War I bond. Heck, I seldom justify spending that kind of money on a new car! Of course, we generally do not have justifications for the collecting purchases that we make. We usually avoid thinking about purchases in that way altogether. The catalog states that this is the first public offering of this spectacular piece and that it is the only known number one. I am sure that the cataloger got those things right, but I am also sure that I have seen it some place. Perhaps John (Herzog) displayed this bond at one of the Strasburg stock and bond shows that I attended. We also know that there is a World War II serial number one bond. It is a $10 soldier?s bond. We have discussed that bond here in the past. I have made my way to the viewing room. On the way through the hall, I picked up a complete set of catalogs for what are being called official auctions. The stack is about eight inches tall and weighs a ton?OK, 20 pounds at least. The room is not quite bedlam but is very busy. I got settled at lot viewing with a very nice woman who arranged to have the Herzog bonds brought over. Since they are mostly large there was a bit of confusion about where they were, but in due course the collection was in front of me for study. I wanted to jump ahead to see?and hold?the number one, but I resisted that urge. That was a good decision because all of the bonds are really beautiful. Throughout my collecting career, I have seen most of these by type, but I have never seen such a great collection. Finally, I was holding the object of my desire. It lived up to my expectations. In fact, it exceeded them. Of course, it looks just like the image in the catalog, but it is even more exciting to see it in person and there was even a small surprise. The bond has a really nice embossed Treasury seal. I should not have been surprised, but I was a bit since this seal does not show in the photograph in the catalog. The seal is on all the issued bonds, but I was nevertheless thrown off a bit. That was reason enough for me to really want the bond even as I knew that I would (could) not buy it. We (wife Judy and I) got to the auction room early and enjoyed some refreshments that were provided. When the scheduled start time approached, I was surprised by the lack of activity in the room. Where was all of the competition? Was John Herzog not going to be there? The surprises turned to worry, and I jumped into action and found the problem. We were in the wrong room! With two ?official auction? companies and I do not know how many auctions going on by those two companies, there were FOUR auction rooms! The Herzog family was indeed in attendance. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 347 John was gracious as always. He autographed catalogs and copies of his book about his life on Wall Street, A Billion to One. I had heard of this book, but not seen one. I obtained a copy and am making a note to review it here ?one of these days.? The major collectors and dealers whom I expected would be interested and some whom I did not know were all there. We settled in to wait and watch? and wait. The auction started out slowly and continued that way as the auctioneer?s pace gave respect to each piece. Of course, buyers were spread among the floor, the Internet, and the phone bank at the back of the room. Hammer prices too were spread around the estimates, but overall the estimates seemed quite good, although pre-sale estimates mean little (nothing, actually). Ah, that is another subject that we can discuss here one of these days. I had no bids to place before THE lot, so I just entered results in my catalog and watched. Finally, the moment arrived. It opened low at $5000, indicating that not many serious bidders had submitted their bids in advance. Again, that does not mean anything. I actually was able to place two bids and there was a lull in the bidding at about $7500 with me holding the lead. For a fleeting moment I thought that I not only might buy it, but I might steal it! Of course, that thought evaporated as the real bidders jumped in and took it higher than I could go. It sold for $11,000. Of course, the real price is about $13,000 with the juice. Almost instantly I felt remorse in not having gone for it. I thought then?and I think now?that it was a bargain. The good news was that there was another item for me only a few hundred lots deeper in the sale I have not told you about. The description of lot 10531 from the Stack?s-Bowers sale: Johnson Island, Ohio. Sutler Johnson Island. ND. $5. PMG 12 Net. Keller OH SJ500. White paper. Middleton, Strobridge & Co. Cincinnati. Center, horses frightened by lightning copied from obsolete notes, arched above SUTLER JOHNSON ISLAND. Lower left, seated Union and shield. Lower right, farmer with sheaf of wheat. Signature space for ?Post Sutler.? Very rare, but the signature is illegible due to soiling and wear. One of the most important sutler issues, north or south, as this was a POW camp used mainly for Confederate officers. Conditions here, excepting the Lake Erie winter weather, were better than most POW camps in the war. Over the course of this Sandusky Bay island?s prison life, some 10,000 men passed through with as many as 3,200 populating toward the end of the war. Odd escapes of course across the ice towards Canada were attempted. The camp even hosted a few Confederate generals. The site still exists for visitors. A very important Sutler issue of which few examples are known. This is the Keller plate example and the only $5 denomination we have seen from this issuer. Last seen in our February 2015 Americana Auction where it realized $3818.75.. You might quite rightly feel that this piece seems to be quite a bit out of character for me. I do not own any ?obsolete notes? (in the SPMC/19th century local money sense, as all MPC are obsolete). Out of character, that is, until you learn that Johnson Island and therefore the POW camp are about fifteen miles from my home! With this being a local site, we often get opportunities to attend events relating to the camp. Extensive archeological studies continue at the camp, and numismatic finds (coins) have been made. I do not believe that any of these finds have been reported in numismatic literature. Contrary to the implication in the lot description, nothing of the camp itself remains, but there is a cemetery. It is open to the public and is quite interesting, with a great location overlooking Sandusky Bay. I have. visited it many times and have taken many visitors there, including Festers. The island is small and entirely residential. There are no commercial establishments whatsoever. The island can be reached by a short causeway that was built in the 1960s. At some time in the past there was commercial activity on the island. At the center of the island is an abandoned quarry. In recent years the quarry was opened to Sandusky Bay and luxury homes were built around the newly-created waterfront. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 348 I know a bit of uncommon local/oral history about the island. When I was a Cub Scout, my den mother told me that her grandmother (or perhaps it was great grandmother) lived on the mainland near the island. She was the teacher for the guards? children, and when the bay was frozen, she walked across the ice to teach her charges. I have always thought that there was no way to verify this tale, but I might be able to at least find out if there were any children of the guards and if a school was run. If there was, then it might even be possible to find the name and to connect it to my den mother. Another task. I have wanted one of the Johnson Island sutler notes since I first learned of their existence. That was a long time ago?like forty years. In all of that time I have never had a chance to buy one until today. According to the catalog description of this note, it appeared in a past Stack?s-Bowers sale, but it was not a numismatic auction and I did not know about it. I think that Wendell Wolka had one, but I missed that sale too. I did not plan on missing this time, especially after I failed to buy anything from the Herzog collection. There is not a lot to tell you about the actual sale of the lot except that after I got my card up the competition continued for an agonizingly long time. I am very happy to have won it and expect to give it a good home. Though I am happy, I am not satisfied. I would like to find some other denominations and would even be pleased to have a nicer example of the $5. Now that my auction work is finished, I have had some time to walk the bourse floor, look, chat, and look some more. I have found very little paper money to tempt me, but I have had a great time talking to friends such as Neil Shafer, Joel Shafer, Roger Urce and many others. Unfortunately, I cannot say the same about Joe. He works his tail off at these conventions as chief (exhibit) judge. He has worked in that capacity for twenty years or more and works that job with the same dedication he gives to everything he does. All in all, it has been a great convention and I still have two days remaining! Next year?s edition will be in Chicago. If you have never attended one of these big conventions (or even if you have), please consider giving it a try. Boling continued The note purports to be from Mali, part of the West African States complex (WAS). The same note was used by eight former French colonies, differentiated only by an alphabetic letter overprinted in two locations on the note?s face (D for Mali). I have the same counterfeit from five of those issuers, and I expect it was probably made for all of them. It is a fairly sophisticated counterfeit. There is a real watermark in the paper (the watermark is not printed on or laminated between two thin layers of paper in a sandwich). The embedded security thread and foil security thread are both correct (not printed). The paper is UV dead, with UV-reactive threads in it that match the behavior of genuine paper in both color and thread dimensions. It shows a correct four-letter UV-reactive overprint on one end of the back. The printing is well-done, and the see-through registration is very accurate. But the counterfeit falls short in five areas. There are no intaglio plates face or back; the date (first two digits of the serial number) is usually incorrect for the signatures used; the optically variable ink (OVI) is a simulation; the portions of the note that should be line lithography are screened (covered with dots at high magnification); and the serial number font is incorrect. When buying the note online, you may be able to use the date/signature error (if the back of the note is shown) or the serial font error (if the numeral ?4" is included in the serial number) to identify a fake. If neither of these eyeball diagnostics is available, then assume the piece being offered is a fake unless the seller guarantees it (including offering a return privilege). So, what are the diagnostics? We?ll start with the serial numbers. Figures 4 (genuine) and 5 (counterfeit) show three of the ten digits that can appear in a SN. The open top of the ?4? is the most Figure 3 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 349 easily identifiable difference; you have to have a good image of the ?1? to see the difference in the flag, and the difference in the ?8? will probably never be discernable in an on-screen image. There are also noticeable differences in the numerals 2,5,6, and 9 (see figures 6 and 7 for genuine and counterfeit). In each case the free curve with a knob on the end loops back toward the center-line of the numeral on the counterfeits. The signatures are on the back of the note. The pair found on all of this group of counterfeits (figure 8) is identified as #29 in both the Standard Catalog and The Banknote Book. That pair appears on genuine notes only on notes dated 1998 and 1999. The first two digits of the serial number are the issue year. You should be able to see in figure 2 that the counterfeit is indicated as a 1996 note. It cannot have signature pair 29; the correct signatures would be as seen in fig. 9 (pair 28). The counterfeiters bounced all around with their dates; I have this counterfeit from various WAS issuers dated ?96, ?98, and ?01. If you see the signatures of figure 8 on an incorrectly dated note (not 1998 or 1999), you are looking at a fake. So much for the things you can see in an illustration. For the other diagnostics, you will need to have the note in-hand and mostly use your 20x magnification capability. UV illumination does not help with this counterfeit?it matches the genuine notes feature for feature. Start with the OVI. That feature on these notes is fairly small (to the right of the upper serial number), and it?s not easy to pick up the change in shade (green to gray-blue) unless you get the lighting just right. But your 20x glass will show you whether you are seeing the bright crystals that give the OVI its color-shifting capability (figure 10) or a dull matte gray-green with very little life in it (figure 11). Now for the intaglio plates. The face has two colors of intaglio?dark brown and blue. The face and the tower are brown; the brown plate also overlies the entire headdress but appears black because of the lithographed dark blue color under it. The back also has two intaglio colors?the same dark brown, and black. The counters in the upper corners are black, and the black becomes dark brown as it moves down into the vignette. The bank initials at right are also brown. Figure 4 Figure 5 Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 350 Moving to the tower, it is dark brown intaglio on the genuine note, and dark violet lithography on the counterfeit. But look at the horizontal blue tint lines to the left of the tower (figures 12-13). On the genuine those are solid blue lithography. On the counterfeit they are composed of blue and red dots. At the chief?s right eye, the genuine intaglio (figure 14) shows bold color and continuous lines. The counterfeit (figure 15) shows screening dots throughout. It is lithographed. Below the chief?s right shoulder (blue intaglio, figure 16) is a reticulated pattern. On the genuine piece the top line in that pattern is red-brown. On the counterfeit (figure 17) that line is blue. You can also see a difference in the pattern in the center of the geometric shapes at the bottoms of those illustrations. Again, for lithographed tints, the background behind the main title on the genuine face (figure 18) shows broad pink stripes; the counterfeit (figure 19) shows a screen of pink dots throughout the same region. Finally, a feature that will not be very helpful?the watermark. Figures 20-21 show the genuine and counterfeit notes. You can see that the watermark of the counterfeit is a reasonable facsimile of the original?all the more true for watermarks, which are not terribly consistent even in good notes. Somebody went to a lot of expense to manufacture this paper with a true watermark and an embedded thread. Despite all the problems I have pointed out, this has been a very successful counterfeit. Many collectors have no suspicion that they have this weed in their garden?especially when it is in a plastic slab. My thanks to the late Weldon Burson, IBNS Hall of Fame, who introduced me to this counterfeit eight years ago. Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 Figure 19 Figure 20 Figure 21 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 351 Welcome? to? Cherry? Picker?s? Corner,? a? new? column? dedicated? to? the?thrill?of?the?hunt!?Collecting?currency?is?an? exciting? endeavor,? full? of? adventure? and? rife? with? treasure?just?waiting?to?be?unearthed.?No?matter?where? your?collecting?appetite?or?budget?may?take?you,?most? collectors? will? agree? that? nothing? beats? the? hunt!? Thirty?five? years? ago,? I? began? collecting? stuff.? The? journey?thus?far?has?been?a?great?ride,?but?like?so?many? others,? I? sure?wish? I?had?discovered? currency?earlier.? Here?are?a?couple?of?stories?that?all?hard?core?collectors? can? relate? to,? whether? it? be? reality? or? just? in? their? dreams!? Getting?a?big?box?of?beefy?8lb?auction?catalogs?in? the?mail?and? then? suddenly?discovering? that? the?one? note? you? desperately? need? for? your? collection? is? highlighted? in?bold?at? the?bottom?of?page?#314? is?an? extremely?exciting?moment.?You?wait?patiently?for?the? day? of? the? auction? to? arrive? and? even? make? the? investment?to?travel?over?a?thousand?miles?to?be?there? in? the? auction? room? to? bid? on? your? note? live? and? in? person.? Although,? the? note? is? not? technically? yours? quite?yet,? in?your?mind?you?have?already?staked?your? claim.?The?day? finally?arrives,? the?auction? is?now? live,? and?after?two?hours?of?sweating?it?out?your?lot?hits?the? auction?block.?Suddenly?a?frenzy?of?proxy?bids?light?up? the?screen? like? fireworks!?Even?still?you?are?ready? for? battle,? unswayed? by? the? fact? that? the? high? estimate? ceiling?has? just?been?shattered.?You?hold?your?bidder? card?high?in?the?air,?your?heart?pounding?with?a?sudden? surge?of?adrenaline.?After?a?few?more?seconds,?that?feel? like?an?eternity,?the?competition?slowly?begins?to?fade? away?and?you?stand?alone?victorious!?You?ve?done? it,? the? note? is? yours,? but? then? reality? quickly? creeps? in.? Your? currency? purchasing? budget? has? now? been? destroyed?for?at?least?the?next?two?years!?With?a?huge? smile?on?your?face,?all?that?matters?today?is?that?you?ve? won?your?note.?Not?a?bad?day? for?any? true? collector? with?a?passion?for?the?hobby?and?a?heavy?dose?of?pure? unrelenting?determination.? Now? imagine? that?you?are? in?a?brick?and?mortar? coin? store.? An? old? dusty? shop? that?s? been? there? for? decades.? You?ve? visited? this? location? plenty? of? times? and? you? know,?with? confidence,? that? you? have? seen? everything? they?have? to?offer?at? least?a?dozen? times.? You?have?the?whole?day?to?kill?and?there?s?really?nothing? else?you?would?rather?do?today?then?find?at?least?one? cool? new? note? to? take? home?with? you.? You? ask? the? proprietor?if?anything?new?has?walked?in?the?door?that? you?can?look?at.?He?says,??Oh?we?got?in?some?bullion,?a? box?of?Morgans,?and?a?few?nice?Double?Eagles.?Probably? nothing?that?you?would?be?interested?in.?You?only?buy? Barber?coins,?right??Oh?wait,?now?I?remember,?you?re? the?Rag?Picker!?Hold?on?a?minute,?I?ve?got?something?in? the? back? that? you? can? see,? but? I?m? not? done? pricing? everything?yet.??Oh?man,?now?we?re? talking!?He?said,? he?s?not?done?pricing?EVERYTHING?yet??Woo?hoo!?This? is?one?of?those?days?where?you?are?in?the?mood?to?buy? anything.?Even?a? ratty?old? Fr.40?will?do? the? trick.?Oh? please,?just?let?me?see?something?that?s?priced?fair?and? I?ll?take?it.?? The?dealer?returns?from?his?office?located?behind? the?No?Access? ??Employees?Only?door?with?a? thick?D? Ring?Binder?under?his?arm,?stuffed?with?plastic?pages!? You?prepare?for?the?worst,?expecting?to?see?dozens?of? pages?full?of?2x2?Lincoln?Cents?with?two?or?three?lonely? pages?of?garbage?VG?1957?$1?SC?s? in? the?back?of? the? binder.?He?sets? the?heavy?book?down? in? front?of?you? and?says,??I?ve?only?got?about?a?third?of?this?priced,?so? just?give?me?a?shout? if?there?s?something?here?you?re? interested? in.?? You? quickly? open? the? cover? to? reveal? page?after?glorious?page?of? tantalizing?paper?money!? Miraculously,? the? material? is? even? organized.? Large? Type,?Nationals,?Obsoletes,? Confederate,? Fractionals,? MPC?s? and? even? some? early?Numeral? Seal? Small? Size? notes? in?CCU!?There?must?be?at? least?eighty?pages?of? back? to?back?notes? in?here!?Perusing? the?wares,? you? notice?dozens?of?original?premium?quality?notes? that? you?could?easily?rationalize?taking?home?with?you.?The? big?problem?now?is?how?many?notes?do?you?purchase?? About?half?way?through?the?book?you?stop?on?a?page? and? suddenly? get? hit? between? the? eyes.? Only?Mike? Tyson? in? his? heyday? could?ve? landed? a?heavier? blow.? There?staring?right?back?at?you?is?the?note?you?ve?been? searching?for.?The?note?you?knew?full?well?existed,?but? you? thought? you?d? never? find.? If? this? note?was? ever? offered? at? public? auction,? you? genuinely? feared? you? would?not?be?able?to?afford?to?reach?the?lofty?heights? of? the?winning?bid.?Now?you?have? found? it,? the?note? that?changes?everything?right?here?sitting?in?a?binder?at? this?small?town?coin?shop.?Looking?closely?at?the?price? tag,?no?way,?it?can?t?be.?Clearly?the?sticker?says?$19.95!? Surely?this?is?a?mistake,?he?said?only?about?a?third?of?the? book?was?priced.?This?mylar?was?probably?reused?and? the?note?that?used?to?be?in?here?was?priced?at?this?low?? suddenly?you?hear??Hey?kid,?any?luck?over?there???You? look? up,? still? reeling? and? all? you? can? muster? is? a? by?Robert?Calderman? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 352 sheepish,??Hungh???The?shop?keeper?comes?over,??So? did?you?decide?to?buy?the?whole?book???He?chuckles?a? bit?and?you?point? to? the?note?you?ve?been?staring?at,? trying?to?hide?your?excitement?as?you?wipe?the?drool?off? your? face?with?your?sleeve.? ?He?comes?over?closer? to? investigate?and?says,??Well?at?20?bucks,?I?m?afraid?I?can?t? offer?you?a?discount,?maybe?if?you?find?a?few?more?I?can? knock?off?a?little?bit.??At?lightning?speed,?you?blurt?out,? ?Okay? I?ll?take?this?one!??A?near? Impossible?note? that? you?thought?you?would?never?own,?let?alone?afford?to? purchase? if? it? found? it?s?way? to?auction,?now? lands? in? your? lap? for? less? than?half? the?price?of?a? tank?of?gas!? There?is?no?doubt,?you?will?remember?this?day?forever.? ?Cherry? Picking?? in? our? hobby?s? context? can? be? defined? as:? Locating? high? caliber? examples? of? Collectible?Currency?at?a?mere?fraction?of?their?current? market?value.?Whether?you?buy? the?note? that?breaks? the?bank?or?land?a?steal?of?a?deal?that?leaves?you?with? money?to?burn,?the?result?is?what?we?all?aim?for,?adding? a?new?note?to?our?collection.?It?s?a?tall?order?to?expect? to? get? an? amazing? deal? on? every? note?we? need,? but? when?the?opportunity?presents?itself,?the?Cherry?Picks? are?oh?so?sweet!?? Below? is?a?note?that?was?a?near?earth?shattering? cherry?pick,?and?it?really?was?purchased?at?a?coin?shop? for?only? $19.95!? The? story? told?here?may?have?been? slightly?embellished,?but?the?fact?remains,?this?note?was? a?mega?score!?? 1934A? $5? Federal? Reserve?Note?Mules? are? rare? birds.?As?a?class,?mules?on?the?1934A?FRN?series?are?the? rarest? for? the? entire? five?dollar? denomination.? The? defining? feature? that?make? these? so? special? is?micro? back?plate?#637.?? The?1934A?Series?of?$5? FRN?s?were?printed?during? the? Macro? Era.? At? the? request? of? the? Secret? Service? whose? anti? counterfeiting? efforts? sought? a? plate? number? large? enough? to? be? seen? without? requiring? magnification,? the? plate? numbers?were? increased? in? size?and?the?revamped?Macro?plate?numbers?became? the?standard.??Back?plate?#637?was?a?Master?Plate?from? the?Micro? Era? that? had? been? retired? and? stored? for? reference.?Cost?saving?measures?brought?on?by?WWII? gave? new? life? to? old? plates? that?were? on? hand? and? suitable? for?use.?The? rare?$5? FRN?mules?on? series?of? 1934A?Feds?will?all?feature?Bp.637!?The?current?census? of? known? examples? is? rather? shocking.? For? all? nine? 1934A?districts?that?were?printed,?a?combined?total?of? only?14?examples?and?2?stars?are?known.?For?New?York,? including?this?newly?discovered?note,?there?are?only?5? examples?that?have?been?located.?These?tough?beasts? often?change?hands?only?via?private?treaty,?and?public? auction?sales?are?slim?to?none.?In?addition?to?the?series? of?1934A,?also?keep?your?eyes?peeled?for?series?of?1934,? 1934B,?and?1934C?green?seal?$5?notes?with?Bp.637!?An? example?in?any?condition?is?a?trophy?to?be?highly?prized!? Comparison?of?Macro?and?Micro?sized?plate?numbers.? Do?you?have?a?great?Cherry?Pick?story?that?you?d? like? to? share??Your?note?might?be? featured?here? in?a? future?article!?? Email?scans?of?your?note?with?a?brief?description?of? what? you? paid? and? where? it? was? found? to:? gacoins@earthlink.net?? More? detailed? information? on? Bp.637? can? be? found?in?Peter?Huntoon?s?article:?The?Enduring?Allure?of? $5?Micro?Back?Plates?629/637???Paper?Money???Vol.?LIV,? No.5???Whole?No.299???Sep./Oct.?2015.? Micro?back?plate?#637? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 353 The Quartermaster Column by Michael McNeil With the Civil War approaching its end in February of 1865, Major James Gardiner Paxton, Quartermaster at the post in Lynchburg, Virginia, received a request to report on the business under his charge. These reports usually contain a few pages of mundane listings of office hours, employees, and production rates of goods, but Paxton seemed to sense the final opportunity presented to him to vent the frustrations of his office. He wrote an unprecedented 28-page report of the activities which later established him as the driving force behind what Dr. G. Terry Sharrer of the Smithsonian Institution called ?...the first important American contribution to veterinary medicine.?1 James G. Paxton, born on November 4th, 1821, was commissioned as a Captain & Assistant Quarter Master on September 17th, 1861. He was stationed in various places in Virginia and what later would become West Virginia, among them Jacksons River, White Sulphur Springs, Salem, and Dublin. He was promoted to Major, taking rank on August 16th, 1862, and reporting as Quarter Master to Gen?l Albert Gallatin Jenkins. Most of the Confederate Type-40 and -41 Treasury notes endorsed by Paxton are dated in early 1863 during his time with Gen?l Jenkins. At a very collectible Fricke rarity of R-10 they can be found with a little diligence at paper money shows and online auctions. Maj. Paxton and his 11-year-old son, James Gardiner Paxton, Jr., were killed when their passenger car ran off the railroad track into a deep ravine on August 7th, 1870. Paxton was stationed at the post of Lynchburg, Virginia from October 1st, 1863 until March 20th, 1865. Charged with restoring to health the worn-out horses and mules of Gen?l Robert E. Lee?s Army of Northern Virginia, it was here that Paxton?s great work was accomplished. Horses and mules were the cars and trucks of their time, and they would last less than 15 months before being replaced by fresh animals, which of course were in very short supply. A letter from Paxton dated November 12th, 1863 remarked that ?...animals from beyond the [enemy] lines were purchased with tobacco.? Paxton brought many thousands of horses and mules back to health and vigor, noting that the ?Animals are kept in the army until life is almost extinct....? He kept meticulous records and calculated the numbers and percentages of animals rehabilitated and those lost to sickness: 24.58% of horses and 11.25% of mules were lost to Glanders & Farcy disease. Realizing the potential gain of controlling this disease, he enlisted the services of the Lynchburg physicians Dr. John J. Terrell and Dr. John R. Page, who carefully studied the disease and determined that it was infectious. They discovered early symptoms and recommended quarantine of sick animals to prevent the spread of the disease, a method which worked well and eventually culminated in the eradication of the disease by 1945. The Smithsonian identified these physicians as the source of this groundbreaking veterinary work, but we now know from Paxton?s report that he was the instigator of the project. Caring for many thousands of animals in western Virginia and North Carolina, Paxton?s officers and agents proved the effectiveness of the quarantine of animals with early symptoms. Paxton?s frustration grew out of his superior officers? reluctance to quarantine sick animals enroute to his jurisdiction, believing ?...that fully 19/20 [95%] of the animals lost by Glanders as reported, ...contracted the disease before their arrival.? Paxton?s file in the National Archives contain several letters to Paxton from his superior officers with a tone which spoke of a total The back of the Type 40 note with a bold endorsement which reads: ?Issued Jan 19, 1863, James G. Paxton, Maj. & QM.? image Pierre Fricke ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 354 breakdown in communication: ?If you wish to be relieved of this duty, let me know at once & I will assign some other officer....? Paxton used the census of 1850 to show that horses and mules were far too scarce a commodity in the Southern states to allow the preventable losses of those animals to Glanders & Farcy disease, but his data and concerns fell on deaf ears. The Quartermaster General thought enough of Paxton?s work to have a thousand copies of it printed as a circular and distributed to other quartermasters. A long search has not turned up a single copy of this work; if any readers possess a copy, please email the author at mmcneil@k2cable.net. Paxton had hard data to prove his case, but his superiors thought their opinions had more value. Today we think that ?fake news? is a new problem, and we unfortunately teach in our public schools and universities that everyone?s opinion has equal value, which of course makes fake news all the more believable. But Paxton?s 28-page venting of frustration shows that mankind has valued opinions over data for centuries. It is a human condition. You can find the story of Major Paxton and the transcription of his report in more detail on pp. 560-569 in Confederate Quartermasters, Commissaries, and Agents.2 When you find a Treasury note endorsed by Maj. Paxton, you are holding the signature of the man who drove the first important veterinary work in America. 1. www.gravegarden.org/civil-war-glanders-stable/ 2. McNeil, Michael. Confederate Quartermasters, Commissaries, and Agents, published by Pierre Fricke, 2016. The front of the Type 40 Treasury note endorsed by Major James G. Paxton. image Pierre Fricke ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 355 Series of 1934A $20 Philadelphia FRNs By Jamie Yakes Dealer Phil Thomas recently asked me to investigate why Series of 1934A $20 Philadelphia stars are seemingly non-existent. He got the note shown in figure 1 earlier this year and found few past sales. Being unfamiliar with the type, I did some research and found the unexpected. Series of 1934A $20 Philadelphia notes? regulars and stars?were never printed in large numbers. Except for a single press run of one plate in 1942, use of those faces was confined mostly to 1944-45, which coincided with increased printings of $20 Philadelphia notes. The BEP predominantly used 1934 faces until 1945, so production of 1934A sheets ultimately was dwarfed by the heavy use of 1934 faces and production of those sheets. The BEP commonly used 1934 faces well into the 1940s for many types as a cost-saving measure during World War II. For $20 Philadelphias, they printed less than four million notes each year to 1942,1 and had enough usable 1934 faces on hand to provide sufficient sheets. They finished 1934A faces 29 to 36 in November and December 19382 as part of their effort to prepare macro plate serials faces for all types, but never used them at the time. After 1942, annual printings of $20 Philadelphia notes increased to between six million- eight million for the next few years.3 The BEP finished six more 1934A faces, serials 37 to 42, in May and June 1942 in anticipation of those increased orders, but only used face 29 for a single press run in July and August.4 By 1944 the BEP started sending all the 1934A faces to press along with 11 1934 faces to print sheets for larger orders in 1944-45. The 1934 faces still did the heavy lifting during that period: They had twice as much press time as 1934As, when most 1934A faces had only one or two press runs.5 By mid-1945 Series of 1934B Vinson- Morgenthau plates started supplanting 1934 and 1934A Julian-Morgenthau plates across all types. The BEP used the last 1934A $20 Philadelphia faces in December 1945 and carried a few 1934s into February 1946. Series of 1934A Philadelphia notes are tough. The Small-Size Guide6 lists 3.4 million 1934A notes and over 53 million 1934s ?printed,? numbers recorded by Chuck O?Donnell in the 1960s from the BEP?s plate summary cards.7 Those numbers are misleading, however, as they actually represent the quantity of unnumbered notes (in sheets of 12) printed from those plates. Not all were numbered, so actual quantities of printed notes will be fewer. Regardless, probably 5-10% of the 50 million notes numbered through 1946 were 1934As. Serial number ranges for observed 1934A Philadelphia $20s also are misleading, as they indicate more notes than are real. Diehard variety Fig.?1.?Scarce?Series?of?1934A?$20?Philadelphia?star?note.?(Courtesy?of?Phil?Thomas).? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 356 in the range of 15 million-25 million. Numbered notes from sheets printed during 1944-45 will have serials greater than 35 million. Heritage Auctions Galleries shows two stars: one from 1942 with face 29 and serial C00269833?, and the other of 1944- 45 vintage with serial C00409247?.8 Thomas?s star is of the latter vintage with serial C00448147?. Two back plate varieties are possible with $20 Philadelphia 1934A faces. Late-finished back 204 was on press from April 1944-October 1946, and those sheets were available to be printed with 1934A Philadelphia faces.9 A true rarity will be micro back mules (with back plate 317 or less). The BEP dropped the last $20 micro back in October 1942,10 so micro back sheets were available to be mated with face 29 during its 1942 summertime press run. None are currently known. Notes 1. ?First Serial Numbers on U.S Small Size Notes Delivered during each year 1928 to 1952.? Prepared by the O&M Secretary, Bureau of Engraving and Printing, April 1952. BEP Historical Resource Center, Washington, D.C. 2. Record Group 318-Bureau of Engraving and Printing: Entry P1, ?Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s,? Container 147. National Archives and Records Administration, College Park, Maryland. 3. ?First Serial Numbers...? O&M Secretary. 4. Container 147. 5. Ibid. 6. Lindquist, Scott, and John Schwartz. The Standard Guide to Small-Size U.S. Paper Money, 10th ed. Iola, WI: Krause Publications, 2011. 7. Email communication from Peter Huntoon, August 10, 2018. 8. Heritage Auction Galleries. https://currency.ha.com/c/search- results.zx?N=56+790+231+232&Ne=230&Ntk=SI_ Titles-Desc&Nty=1&Ntt=Fr.+2055- C*&limitTo=790+231+232&ic3=ViewItem- Auction-Archive-BackToSearch-081514#310073- 15001. Accessed, August 10, 2018. 9. Yakes, Jamie. ?Fantastic Life of $20 Back Plate 204.? Paper Money 56, no. 3 (2017, May/Jun): 247-248. 10. Record Group 318-Bureau of Engraving and Printing: Entry P1, ?Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s,? Container 43. National Archives and Records Administration, College Park, Maryland. CONFEDERATE NUMISMATICA ? 2018 SUPPLEMENT ONE ? More Forerunners Through 1889 - plus feature article - THE CHEMICOGRAPH BACKS REVISITED FIRST EVER PAPER MONEY CATALOG OF THE CONFEDERATE CHEMICOGRAPH BACKS - INCLUDES ALL 4 PRINTINGS AND ALL 38 VARIETIES PLUS ESSAYS AND PLATES - 83 pages : 5 ? x 8 ? : soft cover, spiral bound : Price Guides : Over 200 individual color images $22.00 + $2.50 shipping via media mail to a USA address : Outside USA, please email for shipping cost Credit Cards, PayPal, Checks drawn on US Banks, and US Postal Money Orders welcomed at: www.ConfederateNumismatica.com Peter Bertram : PO Box 924391 : Norcross, GA 30010-4391 : peterbatl@aol.com ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 357 The Obsolete Corner The West Feliciana Rail Road by Robert Gill Well, the Fall season is vastly approaching us, and this year?s Southern Oklahoma summer was it?s usual. But the hot weather did not deter me from acquiring a few new pieces for my Obsolete sheet collection. I?m looking forward to seeing what might come on the market for me to nab in the coming months. But now, let?s look at an incredibly rare sheet that I acquired several years ago. And that is on The West Feliciana Rail Road, head quartered out of Woodville, Mississippi. The quality of this sheet is not very good, but its rarity is virtually unobtainable, as it's the only surviving sheet that "in the know" Obsolete people are aware of. Conceived in 1828 by several planters and bankers, The West Feliciana Rail Road spanned all of twenty-seven miles when completed in 1838. Remnants of the original tracks are still visible today in remote areas of West Feliciana Parish between Bayou Sara and Woodville, Mississippi. In the years between 1835 and 1860, the very rich, fertile farmland adjoining the Mississippi River between Memphis and New Orleans was home to more millionaires than any other area of the United States at that time. Their vast fortunes were the product of many great cotton producing years in the South, and West Feliciana Parish was the zenith of accomplishment in this culture. Innovations were needed to keep pace with the increased productions enjoyed across the South, hence the hurried railroad charter on March 25th, 1831, by the Louisiana Legislature. The overwhelming expectation of impending prosperity and the urgent need for faster, more dependable transportation of cotton to the packets waiting at Bayou Sara's wharves produced this first standard gauge, and first interstate railroad system. Though not eagerly embraced by all whose path she crossed -- inadequate funding, some incompetent craftsmen, planters who refused to have their fields split, the town fathers of Bayou Sara demanding the potentially explosive "iron horse" not to run too close to town -- The West Feliciana Rail Road did succeed. In 1842, the wood-clad iron rails reached Woodville, Mississippi, at a cost of $25,000 per mile. What a bargain! In 1889, the Louisville and Nashville Railroad claimed this line, and at one point, the Yazoo and Mississippi Valley laid claim as well. In 1892, the Illinois Central Railroad absorbed the system until it was discontinued in the 1970's. From its inception in 1828 until 1892, Mr. Edward McGehee, and later his son, J. Burruss McGehee, were very ardent backers of The West Feliciana Rail Road, as was Gerald C. Brandon, Governor of Mississippi, who championed this noble effort. These gentlemen and others witnessed the arduous struggle during the years of the War Between the States, and the devastation that existed afterward. The West Feliciana Railroad Bank was established, and money issued, as well, during their watch. So, there's the history behind this old railroad company, and its importance to the South. And because of its existence, this fabulous sheet of paper money remains for us "paper enthusiasts" to enjoy. As I always do, I invite any comments to my cell phone number (580) 221-0898, or my personal email address robertgill@cableone.net Until next time.... HAPPY COLLECTING. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 358 ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 359 ?News & Notes? at Four Years Now in its fourth year, SPMC?s weekly blog ?News & Notes? chugs along, appearing weekly both on the Society?s website and as an email sent to some six hundred online subscribers. At this point, the blog is a routine production that takes me a few hours each week to piece together. But to call it routine doesn?t at all imply that I?ve grown indifferent to it. To explain, I thought it would be worthwhile to recount how ?News & Notes? came about and how it?s put together. Like many other enterprises, the Society entered the Internet Age by developing an online presence for its members. A good website should both serve its members and reflect their activities. In my experience, any website that doesn?t offer routine evidence of updating and change raises a red flag about the energy of the organization behind it. So, when I got involved with SPMC governance some four years ago, I thought that adding a little bit of yeast to the website seemed like a good first project. The question was, what would that project look like? By temperament, I?m a conservative, which means that when I think about doing something, I look to see how it has already been done well and do likewise. In this instance, Wayne Homren?s E-Sylum really stands out to my mind as the best example for how an online presence can bridge the virtual and physical worlds of collecting, while encouraging active engagement from a discerning readership. Other online aggregators, such as Scott Purvis?s CoinWeek or Ursula Kampmann?s CoinsWeekly, are good at developing and publishing content, but that would be beyond the capacity of a single individual like myself, working only a few hours a week. Also, unlike Homren, I don?t have the time or ability to pull together numismatic and bibliomaniacal (?) news, provide perspective on it, and cultivate the online community that contributes so much worthwhile material to his site. To that extent, E-Sylum serves at once as a news aggregator, a publisher of original content, and a bulletin board for a lively constituency of collectors and scholars. It?s in a class by itself. If I couldn?t aspire to do all that, I reckoned, then a simple approximation of one part of it might do, and that was the aggregating of news links, without providing commentary, about anything relevant to paper money and its collection. And that?s basically what ?News & Notes? is. My original plan, and one which I have mostly stuck with, was to divide up the weekly news about paper money into three categories: (1) paper money and currency as a collectible and as a factor in public affairs; (2) the industry that produces paper money?banknote printers, security paper producers, and ancillary firms; and (3) any criminal activity associated in some way with paper money. This last category includes, naturally, counterfeiting, but also any frauds and scams that involve paper money as a prominent focus. The weekly routine?and a routine it has to be?begins with Google News alerts set to selected keywords, with links sent to my email inbox. After working through those, I turn to collector and industry websites for additional material. Finally, if there?s time, I?ll nose around for sources in French, Spanish, and German. Of the three types of news, the first is the easiest to sort. Numismatic publications provide feature stories, auction news, and other items. Some are more link-friendly than others, but that is their commercial choice. A few collectors? blogs are impressively up-to-date in their coverage of new banknote issues. More broadly, general news about currency?for example Venezuela?s monetary travails, or India?s demonetization of high-value banknotes?invariably shows up in the weekly links, and incidentally underscore how relevant money and currency remains to a wider public audience. Industry-related links have tended to be fewer in number, consisting of press releases by companies, analyst reports, or other news related to the technical production of paper currency. Finally, the theme of money and crime proved more haphazard than I?d have thought. Yes, counterfeiting is a chronic problem, but most cases of it are squalid and uninteresting, in the sense that any fool with a printer can produce some illegal facsimile of currency. Thus, the blog has focused on more systematic counterfeiting operations?Peru or North Korea, for examples?and on currency-related crimes that involve more than the ordinary level of perfidy, or about which there might be some interesting twist. Together, those three elements make up ?News & Notes? in its current form. If you are not a subscriber to the email, you can find the blog version posted every Tuesday on the SPMC website. If you are a subscriber, check your spam folder in case you are missing it! Chump Change Loren Gatch ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 360 President?s Column Sep/Oct 2018 Every two months your SPMC Board of Governors meets via conference call, or in person at the annual International Paper Money Show in Kansas City, to discuss club business and set an agenda for things we think are relevant and important for the organization to accomplish. We met again last evening, as I write this, and I?m pleased at the direction we are going. We have a lot of good minds and hardworking individuals running this ship. As we wind down on projects that have been in the works for a while, like the recent website upgrade, the construction of the Obsoletes Database Project website, outreach initiatives, etc., we begin to look toward new objectives. One that began at our meeting in June was our intention to raise the standards for our exhibits judging, and correspondingly to improve the quality of the awards we make for them. At last night?s call, the team of Wendell Wolka, Robert Moon and Robert Vandevender provided a progress report and I heard some very good ideas. I?m already excited for next year?s IPMS. If you like to exhibit your notes and tell an interesting story to go along with them, this is your call to get started now. I promise, the awards will make it worth your while. Also, on the call we discussed the possibility of web- based publishing for a book project we are aware of. I feel it?s none too early to get our feet wet in this area, for if we wish to continue to publish high quality paper money references, we need to deliver our products in 21st century fashion. I am hopeful we are up for the challenge. Finally, on the call last night, I was reminded why I decided to get involved in SPMC governance to begin with, several years ago. It?s a long story, and I won?t get into the details, but I remembered this: In some ways our hobby is a church for me, a sanctuary from the grind of the real world. It?s a place where I can fellowship with friends who have similar interests. In this venue -- for the most part -- gone are the divisive things, the politics that pull us apart. If you share this sentiment, I would encourage you to get more involved in your hobby: get your friends and colleagues to join SPMC; attend shows at the regional and national level; attend seminars; conduct research on your favorite notes; set up exhibits; write articles or stories about your experiences. After all, your hobby is what you make of it. With that said, I am headed back into enjoying what?s left of summer. On the horizon for fall are lots of road trips to college, high school and club soccer games for my daughters. Life is good. Shawn Editor Sez I am sharing Shawn?s space this month as neither of us are as verbose as we usually are. KC is over, and it was great. Summer FUN and the ANA are over and by the time you get this Long Beach will be done also. Lots of great times at shows this year and lots of just plain fun. This issue is a really cool one for me as it has a neat article that incorporates the mysteries of Sherlock Holmes. There is also a topic addressed we don?t often see?depression scrip and some neat research by Peter on Nationals from Territories. That along with our second column on Confederate Quartermasters and we are introducing a new column on Cherry-Picking by Robert Calderman. I also had two articles submitted on the same thing?Zambian notes! Rarely do I get a world submission except from Mr. Chambliss, but two the same month, same country?wow! Even though they did not overlap much, I decided to do one this issue, one the next. Putting this issue together was quite a challenge, not due to the complexities of the issue (which are always a challenge), but due to personal challenges. I had to start back to school on August 1 and over the summer they had to re-do my clinic, so I got to move back in?while preparing for the 5,000+ students to arrive. Along with that, Brandon and his wife were all set to go for their delayed honeymoon (which of course, for some reason, I seemed to have paid for) and then BOOM?a little weather disturbance named LANE comes on board. I tell you what, trying to plan around a hurricane is a problem. But, in the end, they were able to change to go to Tampa and Orlando with very little expense to me. Whew?crisis averted. In this issue?s envelopes, you will find a return of dues envelopes. Years ago, all memberships expired at the end of December. Then when we changed to our current system, we did not use the envelopes. If you will keep these envelopes until your dues are due, they are pre-addressed, and it will be easier for you to keep on track. Until next month?happy collecting and enjoy the upcoming shows and the hobby! Benny ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 361 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk?SPMC M_m\_rship Dir_]tor NEW MEMBERS 07/05/2018 14806 Daniel Luchansky, Jason Bradford 14807 David Rafanowicz, Website 14808 Samuel Muska, Website 14809 Matt Draiss, Website 14810 Matthew Richter, Website 14811 Jacek Teller, Website 14812 Anthony Sarto, Website 14813 Terry Elledge, Jason Bradford 14814 Dan Sumpter, Robert Calderman 14815 Larry Veneziano, Robert Calderman 14816 Thomas Thome, Jason Bradford 14817 Viktor Engel, Website 14818 Paul Whaley, Website 14819 Jeff Lundy, Jason Bradford 14820 Bruce Scherker, Joseph Muskus 14821 Suzanne Trammell, Website 14822 Brad Schmidt, Jason Bradford 14823 Jeffrey Brockberg, Higgins Museum 14824 Clauson Wilson, Jason Bradford 14825 William Sudduth, Jason Bradford 14826 Daniel McKenna, ANA Ad 14827 William Johnson, ANA Ad 14828 David Lee, Jason Bradford 14829 Mitch Damp, Jason Bradford 14830 Tyrone Fay, ANA Summer Seminar REINSTATEMENTS None Life Memberships None NEW MEMBERS 08/05/2018 14831 Madhu Thakker, Jason Bradford 14832 Carl Lester, Website 14833 Peter Catanzano, Frank Clark 14834 Thomas Herzfeld, ANA Ad 14835 Andre Rivard, Website 14836 Paul Tomaka, Website 14837 Allan Bogutz, Website 14838 Peter Bertram, Frank Clark 14839 Andrew Yates, Website 14840 Mark Dombrowski, Website REINSTATEMENTS None Life Memberships None New Dues Remittal Process Send dues directly to Robert Moon SPMC Treasurer 104 Chipping Ct Greenwood, SC 29649 This issue of Paper Money has a dues envelope in it. Use it to send your dues in when your mailing label states they are due. You may also pay your dues online at www.spmc.org. ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 362 WANTED: 1778 NORTHCAROLINACOLONIAL$40. (Free Speech Motto). Kenneth Casebeer, (828) 277- 1779; Casebeer@law.miami.edu 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 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 FOR SALE: College Currency/advertising notes/ 1907 depression scrip/Michigan Obsoletes/Michigan Nationals/stock certificates. Other interests? please advise. Lawrence Falater.Box 81, Allen, MI. 49227 WANTED: Any type Nationals containing the name ?LAWRENCE? (i.e. bank of LAWRENCE). Send photo/price/description to LFM@LARRYM.com WANTED: Republic of Texas ?Star? (1st issue) notes. Also ?Medallion? (3rd issue) notes. VF+. Serious Collector. reptexpaper@gmail.com. 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 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. "Collecting Paper Money with Confidence". All 27 grading factors explained clearly and in detail. Now available Amazon.com . AhlKayn@gmail.com Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. dombongo@earthlink.net Wanted Railroad scrip Wills Valley; Western & Atlantic 1840s; East Tennessee & Georgia; Memphis and Charleston. Dennis Schafluetzel 1900 Red Fox Lane; Hixson, TN 37343. Call 423-842-5527 or email dennis@schafluetzel WANTED: DC MERCHANT SCRIP. Looking for pre-1871 DC merchant scrip (Alexandria, Georgetown & Washington). Send photo/price/description to tip001@verizon.net. 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 UnitedStatesPaperMoney specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes LargeSize Type ErrorNotes SmallSizeType National Currency StarorReplacementNotes Specimens, Proofs,Experimentals FrederickJ. Bart Bart,Inc. website: www.executivecurrency.com (586)979-3400 POBox2? Roseville,MI 48066 e-mail: Bart@executivecurrency.com $MoneyMart $? ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 363 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, 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. 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 S implified copy of the same which is aimed at new collectors. Come join a group dedicated to the are fractional fanatics! New Membership is $30 or $22 for the Simplified edition only To join, contact Dave Stitely, membership chair Box 136, Gradyville, PA 19039. SIZE INCHES 50 100 500 1000 Fractional 43/4 X 21/4 $28.40 $51.00 $228.00 $400.00 Colonial 51/2 X 31/16 $25.20 $45.00 $208.00 $364.00 Small Currency 65/8 X 27/8 $25.45 $47.00 $212.00 $380.00 Large Currency 77/8 X 31/2 $31.10 $55.00 $258.00 $504.00 Auction 9 X 33/4 $31.10 $55.00 $258.00 $504.00 Foreign Currency 8 X 5 $38.00 $68.50 $310.00 $537.00 Checks 95/8 X 41/4 $40.00 $72.50 $330.00 $577.00 SHEET HOLDERS 10 50 100 250 Obsolete Sheet--end open 8 3/4 X 141/2 $23.00 $101.00 $177.00 $412.00 National Sheet--side open 8 1/2 X 171/2 $24.00 $108.00 $190.00 $421.00 Stock Certificate--end open 9 1/2 X 121/2 $21.50 $95.00 $165.00 $390.00 Map & Bond--end open 181/2 X 241/2 $91.00 $405.00 $738.00 $1,698.00 Photo 51/4 X 71/4 $12.00 $46.00 $80.00 $186.00 Foreign Oversize 10 X 6 $23.00 $89.00 $150.00 $320.00 Foreign Jumbo 10 X 8 $30.00 $118.00 $199.00 $425.00 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 Fax: 858-679-7505 See out eBay auctions under user ID DBRcurrency 1507 Sanborn Ave. ? Box 258 Okoboji, IA 51355 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards MYLAR-D? CURRENCY HOLDERS BANK NOTE AND CHECK HOLDERS 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 Out of Country sent Registered Mail at Your Cost 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 29, Dedham, MA 02027 ? 781-326-9481 ORDERS: 800-HI-DENLY ? FAX-781-326-9484 WWW.DENLY?S.COM ___________________________________________________________Paper Money * September/October* Whole No. 317_____________________________________________________________ 364 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC?s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA ? Hosts the annual National Currency and Coin Convention during March in Rosemont, Illinois. Please visit our Web Site pcda.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 International Paper Money Show, as well as Paper Money classes and scholarships at the A.N.A.?s Summer Seminar series. ? Publishes several ?How to Collect? booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. ? Is a proud supporter of the Society of Paper Money Collectors. Or Visit Our Web Site At: www.pcda.com Bea Sanchez ? Secretary P.O. Box 44-2809 ? Miami, FL 33144-2809 (305) 264-1101 ? email: sol@sanchezcurrency.com To consign to an upcoming auction, contact a Heritage Consignment Director today. 800-872-6467, Ext. 1001 or Currency@HA.com U.S. CURRENCY SIGNATURE? AUCTION September 5-7 & 10-11, 2018 | Long Beach | Live & Online Highlights from our Official Long Beach Signature Auction Visit HA.com/3567 to view the catalog or place bids online. Paul R. Minshull #LSM0605473; Heritage Auctions #LSM0602703 & #LSM0624318. BP 20%; see HA.com. 48409 DALLAS | NEW YORK | BEVERLY HILLS | SAN FRANCISCO | CHICAGO | PALM BEACH LONDON | PARIS | GENEVA | AMSTERDAM | HONG KONG Always Accepting Quality Consignments in 40 Categories Immediate Cash Advances Available 1 Million+ Online Bidder-Members San Diego, CA - $20 1882 Brown Back Fr. 494 The Consolidated NB Ch. # 3056 PMG Extremely Fine 40 Rochester, NY - $50 1902 Red Seal Fr. 665 The NB of Rochester Ch. # (E)8026 PMG Extremely Fine 40 Massachusetts August 18, 1775 4s Sword in Hand Note PCGS Choice New 63 St. Francisco, CA- Miners Bank of Savings of Alta-California $1 in Gold Dust 18__ Remainder PCGS Very Fine 30 T2 $500 1861 PF-1 Cr. 2. PCGS Extremely Fine 45PPQ Continental Currency May 10, 1775 $20 PCGS Extremely Fine 40