Paper Money - Vol. LVIII - No. 4 - Whole #322 - July/Aug 2019

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Table of Contents

4-Subject Large Size Plates Altered into 8-Subject Forms--Doug Murray & Peter Huntoon       

WWII Isle of Man Internment Camps--Steve Feller

A Tale of Two Quaker Bankers--Nicholas Bruyer

The First National Bank in Arizona Territory--Peter Huntoon & Dawn Teresa Santiago        

KC Service, Literary and Exhibit Awards

Lee McClung--Frank Clark

Cherry Pickers Corner

Quartermaster Colum

Chump Change

The Obsolete Corner

Small Notes—NY 1934 & 1934A FRNs

Board of Governors Meeting Minutes

George Wait J. Roy Pennell F. C. C. Boyd Austin Sheheen Lyn Knight Paper Money Vol. LVIII, No. 4, Whole No. 322 July/August 2019 Official Journal of the Society of Paper Money Collectors 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 ? 949.253.0916 123 West 57th Street, New York, NY 10019 ? 212.582.2580 ? California ? New York ? New Hampshire ? Hong Kong ? Paris SBG PM ANA2019 HLs 190530 America?s Oldest and Most Accomplished Rare Coin Auctioneer Legendary Collections ? Legendary Results ? A Legendary Auction Firm Peter A. Treglia Aris MaragoudakisJohn M. Pack Brad CiociolaManning Garrett Featured Highlights from the Stack?s Bowers Galleries Official Auction at the ANA World?s Fair of Money? Stack?s Bowers Galleries is proud to present United States paper money highlights from our Official Auction at the 2019 ANA World?s Fair of Money. Don?t miss your chance to bid in this exciting auction, held in conjunction with the largest U.S. coin convention of the year. Contact Stack?s Bowers Galleries at 800-458-4646 to reserve your printed catalog, or plan to view the sale online at Contact our currency specialists for more information about our official World?s Fair of Money Auction. 800.458.4646 West Coast Office ? 800.566.2580 East Coast Office ? August 13-16, 2019 | Rosemont, Illinois Granger, Texas. $5 1902 Red Seal. Fr. 587. The First NB. Charter #6361. PMG Very Fine 30. Serial Number 1. Alachua, Florida. $10 1902 Date Back. Fr. 618. The First NB. Charter #8980. PMG Very Fine 20. Fr. 233. 1899 $1 Silver Certificate. PMG Choice About Uncirculated 58. Serial Number 1. Beaumont, Texas. $20 1882 Brown Back. Fr. 504. The Citizens NB. Charter #5841. PMG Choice Uncirculated 64 EPQ. Block of (12) Fr. 1328. 50 Cent. Third Issue. PCGS Currency Choice About New 55 PPQ. From the Caine Collection. Fr. 1310a. 50 Cent. First Issue. PCGS Currency Choice About New 58 PPQ. From the Caine Collection. Wolfborough, New Hampshire. $5 1882 Brown Back. Fr. 468. The Lake NB. Charter #1486. PMG Very Fine 30. Fr. 148. 1862 $50 Legal Tender Note. PMG Very Fine 20. 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. LVIII, No. 4 Whole No. 322 July/August 2019 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 ( 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. 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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? Visit the SPMC website? 4-Subject Large Size Plates Altered into 8-Subject Forms Doug Murray & Peter Huntoon ..................................... 231 WWII Isle of Man Internment Camps Steve Feller. ................................................................. 239 A Tale of Two Quaker Bankers Nicholas Bruyer ............................................................ 256 The First National Bank in Arizona Territory Peter Huntoon & Dawn Teresa Santiago .................... 269 KC Service, Literary and Exhibit Awards .......................... 275 Uncoupled?Joe Boling & Fred Schwan .............................. 279 Lee McClung Frank Clark ................................................................. 284 Book Review?New Tennessee Obsolete Book Benny Bolin ................................................................. 285 Cherry Pickers Corner ........................................................ 286 Quartermaster Colum .......................................................... 288 Chump Change .................................................................... 291 The Obsolete Corner ........................................................... 292 Small Notes?NY 1934 & 1934A FRNs ................................ 294 President?s Column ............................................................. 297 New Members ...................................................................... 298 Editor Sez ............................................................................. 299 Board of Governors Meeting Minutes ............................... 300 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 229 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 Matt Drais, Box 25, Athens, NY 12015 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 Wendell A. Wolka, P.O. Box 5439, Sun City Center, 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., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT--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, .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 Society 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 or by check/money order sent to the secretary. Pierre?Fricke?Buying?and?Selling! 1861?1869?Large?Type,?Confederate?and?Obsolete?Money!? P.O. Box 1094, Sudbury, MA 01776 ;; And many more CSA, Union and Obsolete Bank Notes for sale ranging from $10 to five figures ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 230 4-Subject Large-Size Plates Altered into 8-Subject Forms during 1923-1925 Doug Murray Peter Huntoon Overview and Purpose This article describes an economy measure that was undertaken during 1923-5 to couple two 4- subject plates into an 8-subject form so that they could be used optimally on power presses. Congress had just lifted the last of its restrictions on the use of power presses to print currency. The concept was applied where the Bureau had unused or, in some cases, little-used stocks of still serviceable 4-subject printing plates. Existing 4-subject plates were salvaged from the plate vault and altered so that they could be coupled. In addition, the last of the 4-subject plates that were being made at the time were completed so that they could be coupled. The discoverer of this process was Doug Murray, who is the most accomplished researcher to tackle large size U. S. type notes. However, the voice that will tell the story is that of Peter Huntoon who has followed Doug?s odyssey through this topic and who helped him pull together documents he needed to flange up his research. Doug?s focus has been on varieties and to that end he has added dozens of Friedberg numbers to the catalog during his career. To accomplish this, he had to meticulously record notes, help build the census of large size type notes, and delve into Federal and company records to understand printing protocols, Figure 1. Murray?s Series of 1922 $10 gold note printed from position H on 8-subject face plate 225 but back from 4-subject plate 171 that had been paired side-by-side with another 4-subject back plate to print the feed stock used for the face printing. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 231 processes and machinery at the Bureau of Engraving and Printing, the Treasury Department and private bank note companies. Doug considers the topic at hand to be his last piece of unfinished business in his 45-year pursuit of large size type notes. The story that follows was set in motion in 1998 so his pursuit of it took exactly 20 years. The breadth of the work undertaken by the Bureau to alter these plates was enormous because it involved at least the 872 plates summarized on Table 1. We will explain the process and put it into context, although there is a chance that we missed some of affected plates. Discovery Doug started to recognize these plates in 1998 as he was researching another topic dear to his heart, a class of mules he defined years before. The BEP changed the position of the plate serial numbers on the backs of large size type notes at the start of the Elliott-White era in May 1921. Numbering of the plates with the new variety restarted at 1. Back plates with the numbers in both the old and new positions were used simultaneously. As a result, Murray defined a class of mules where Elliott-Burke faces were mated with backs printed from plates with the numbers in the new position and where Elliott-White and Speelman-White faces were mated with backs with the numbers in the old position. These mules have won listings in the Friedberg catalog. All the gold certificate back plates with numbers in the old position in the upper right corner were 4-subject. As he recorded the mule varieties in the $10 Series of 1922 Speelman-White gold certificates, it was clear that those backs had been printed from 4-subject plates, but he suddenly realized that some had face plate letters E, F, G and H. How could this be possible? Specifically, how could notes whose faces were printed from 8-subject plates be on feed stock from 4-subject back plates? The variety was so peculiar, he set out to buy the very next one that he saw go by. Lightning struck on September 11, 1999, when he got to purchase from Glen Jorde the Series of 1922 Speelman-White $10 gold certificate illustrated on Figure 1; specifically, H41334932 from face plate 225, plate position H, back plate 171 where the back plate serial number is in the upper right corner as on earlier notes. He set out to determine how the variety came about. Consequently, the next time he was at the National Archives, he looked up the plates used to print his note in the BEP plate history ledgers. It was no surprise to him to observe that face plate 225 was an 8-subject plate. It had to be in order to carry position letter H, the bottom subject on the right side of the printed sheet. That plate was certified November 21, 1924, six years after the Bureau started using 8-subject plates. He then looked up the back plate for completeness. He confirmed that back 171 was indeed an old 4-subject plate that had been certified October 7, 1918. Table 1. Summary of the 4- to 8-subject plates that were altered for use on power presses during 1923-1925 era. All the face plates are Speelman-White. Back/ 8-Subject Certification Dates No. of Altered Class Series Den Face Arrangement First Last 4-Sub Plates SC 1899 1 back head-to-toe 4/14/1923 9/5/1924 575 SC 1899 1 face toe-to-head 1/15/1924 2/11/1924 40 SC 18 9 2 back head-to-head 3/15/1924 3/27/1924 16 SC 899 5 back head-to-toe 6/4/1924 6/5/1924 16 LT 1917 1 back head-to-head 7/24/1923 10/12/1925 80 LT 1917 2 back head-to-head 8/20/1923 11/3/1923 24 LT 1907 5 back head-to-head 1/18/1924 1/21/1924 10 LT 1901 10 back head-to-head 11/27/2023 7/14/1924 40 GC 1907 10 back head-to-head 8/17/1923 11/7/1923 44 GC 1906 20 back head-to-head 9/25/1923 10/15/1923 27 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 232 The paradox of an 8-subject face on a 4-subject back gnawed at him. In due course, he visited the Numismatic Division of the Smithsonian Institution to get a look at the proof for 171 to see if it could help him figure out what was going on. I happened to be there at that time. He went right for the 1907-1922 $10 gold back proofs. In short order he came up with two 4-subject proofs for plate 171, one certified October 7, 1918, the second November 7, 1923. Hum, what was done to cause a second certification? Look as he did, he couldn?t find any differences between the images on the proofs. But this guy is a careful observer. He noticed that one side of the second proof did not have a perfectly straight cut. Then he noticed the same thing on a number of other duplicate proofs that were dated 1923. The irregular cuts switched back and forth between the left and right sides of the proofs. Puzzle time! He attempted to match the cuts between the proofs and sure enough he found some definitive matches. When a match was found, both proofs in the pair had the same 1923 certification date. It didn?t take rocket science for him to deduce that a pair of plates had somehow been mated to produce the 8-subject form that was used not only to print the proof, but also the production sheets that yielded his note. It became obvious that after the 8-subject proof was lifted from the 8-subject form, they then cut the thing in half and filed the respective halves in order of the different plate serial numbers found on the respective halves. He was very excited by this discovery and corralled all of us who were there and attempted to educate us as to the significance of it. I found the whole business to be quite curious but very esoteric. Some of us were in the midst of sorting the proofs, a project that stretched across several years, so we went back to that task. I filed knowledge of his curious finding in the back of my mind. Scope of the Phenomenon In due course, Murray found the same phenomenon on other type notes. One variety that he is particular proud of discovering were $2 Series of 1899 Speelman-White silver certificates mules printed from backs 1083 and 1084. These were two particularly old 4-subject back plates begun respectively in 1918 and 1921 with serial numbers in the lower right corner instead the more modern lower left corner. Both plates had been used but were still serviceable before being altered into 8-subject forms on March 17, 1924. They were then paired to print exotic Speelman-White mules. Plate 1083 was on the left side and 1084 on the right. A couple of years later, my wife Kathleen, Mark Hotz and I were sorting the $1 1899 faces of which there are more than 27,000, the largest number of any large size type note. One day, I came across two 8- subject Spellman-White toe-to-head proofs lettered A-B-C-D on each side. A quick glance revealed that one had plate numbers 90395-2441/90397-2443; the other 90400-2446/90401-2447. The memory of Murray?s finding flooded back. Someone at the BEP had failed to cut these two proofs in half and file the respect halves in plate serial number order. As it turned out these are the only two surviving examples that we have found of such conjoined 8-subject proofs. I told Murray about them, so he had to look into the $1 1899 SCs. The poor guy ultimately discovered that he had to log in more than 600 1899 $1 back and face plates into his inventory of the variety. Subsequently we realized that this type of thing was restricted to the 1923-5 period. So just what was going on? The Bureau of Engraving and Printing was in a great push to convert from 4-subject to 8-subject currency printing plates for their high-volume types in 1923. The 8-subject plates were made specifically for use on power presses. Power presses utilized four plates that circulated around the bed of the press where they passed through stations that successively inked, wiped and printed the sheets. Organized labor had been resisting the use of such labor-savings power presses at the Bureau since 1878 when the first steam press was tested at the Bureau. In due course Congressional allies had passed legislation prohibiting their use to print currency. The restrictions on the use of the presses were lifted gradually. For a time, only backs of currency could be printed on power presses and the high demand backs began to be printed from 8-subject plates. Faces began to be printed on the power presses in 1918 with acquiescence of the printer?s union during World War I as the Bureau staggered under the crush of printing WW I Liberty Loan bonds. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 233 An Act of Congress dated January 3, 1923, formally cleared all impediments. It stated: ?Hereafter the Secretary of the Treasury is authorized to print from plates of more than four subjects each upon power presses the fronts and backs of any paper money, bonds, or other printed matter now or hereafter authorized to be executed at the Bureau of Engraving and Printing.? The 4-subject plates were designed for use on single plate presses of which the Bureau still had a huge room full. Four of them could be mounted on the 4-plate power presses. However, the power presses worked optimally with four 8-subject plates. Once the gloves were off in 1923, Bureau management under Director Louis A. Hill acted swiftly to move as much of the work on the high-demand Treasury currency as possible to the power presses. They simultaneously ramped up production of 8-subject face plates for the high-demand types, which at the time consisted of steel plates made by traditional roll-transfer technology because Hill had disbanded the electrolytic unit. However, they found themselves with a large inventory of unused or lightly used 4-subject steel plates of several types, most of which were backs. Altering Pairs of 4-Subject Plates into 8-Subject Forms They quickly seized upon altering pairs of 4-subject plates to create 8-subject forms that could be mounted on the power presses. The respective plates within each pair were altered by milling one side of each plate so that the two could be abutted to create an 8-subject form. Thus, there was a left and right plate in each pair where left and right as used here refers to the side of the printed sheet lifted from the 8-subject form. Most of the 4-subject plates were altered in pairs, one left and the other right. Once this work was completed, a proof was lifted from the resulting 8-subject form, cut in half, and the halves filed in plate serial number order with the original proofs from the same plates. Generally, the pairs of plates were kept together as a unit that was mounted on one of the four positions on the press. The pair continued to be used in successive press hitches as long as both halves remained serviceable. When the pair wore out, both halves were canceled together. Consequently, the pairs are fairly easy to track through the plate history ledgers. However, occasionally one of the plates in a given pair would have to be swapped out and replaced owing to wear. The swap-outs unambiguously demonstrate that the plates within the pairs were not physically joined; instead, they served side-by-side. Their abutting edges were carefully machined so that they fit snuggly. The joint collected ink, which printed as a fine joint-line down the center of the 8-subject sheets. This was readily trimmed away when the sheets were cut in half prior to numbering the halves on the 4-subject Harris serial numbering, severing and collating presses then in use. The vast majority of 4- to 8-subject conversions involved back plates. However, there was a sizable group of Series of 1899 $1 Speelman-White silver certificate face plates as well. Murray has meticulously Figure 2. Two hollow stars were added next to the Treasury plate number on 4-subject back plates to reveal that they had been machined to fit next to another one to create an 8-subject form for use on power presses. If bold centering guides were used adjacent to the 2nd and 3rd subjects, their placement revealed whether the plate was fashioned into a right or left plate in the pair. In this case, the guide is to the left so it is the left plate in the head-to-toe pair. Note: the silver certificate $1 faces were printed from toe-to-head plates. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 234 gone through the proofs as well as the plate history ledgers to identify as many of the 4-subject plates that were altered to produce the 8-subject forms as possible. At this writing, he has cataloged almost 900 of them as listed on Table 1. Most of these plates were unused prior to being altered for use in pairs on the power presses. However, there were exceptions such as some 4-subject $10 1907 and $20 1906 gold certificate and $2 1899 SC back plates that had been in the plate inventory for years and had been used. The printing of $10 and $20 gold notes had been suspected at the close of the fiscal year ending June 30, 1917. Production of those denominations resumed in fiscal year 1922 in the new Series of 1922. As production of $10 and $20 gold certificates continued to ramp up during 1923, the still serviceable 4-subject Series of 1907 and 1906 back plates in the plate vault were altered for use on the high- capacity power presses. This, of course, resulted in Murray?s $10 discovery note. One fun possibility with the Speelman-White gold certificates is that it is possible to find notes with the same back plate serial number, one a mule printed from an 8-subject form comprised of two paired old 4-subject plates with plate serial number in the upper right corner and the other a non-mule printed from a new 8-subject plate with the same number in the upper left corner. The Big Picture Bureau personnel weren?t exclusively altering the old 4-subject plates into 8-subject forms during the 1923-1925 period. They never stopped making regular 8-subject plates of the same kind. Those produced under Hill?s administration were steel plates made by the roll transfer process. Wallace W. Kirby took over as Director of the BEP on an interim basis in February 1924. He not only continued the alterations of the 4-subject steel plates and production of regular new 8-subject roll-transfer steel plates, but also reactivated the electrolytic unit and had it turn out new 4- and 8-subject electrolytic plates. All the plates were pressed into service. Kirby was followed by Director Alvin W. Hall at the end of 1924, who accelerated Kirby?s pace and worked toward full adoption of electrolytic plates for the high-volume types. This raised some ambiguities in this study because both 4- and 8-subject electrolytic plates were being made for the high- volume types. Of course, the 8-subject electros were being used on the power presses, but the 4-subject electro proofs often are stamped POWER. It is possible they were used on old power presses that could only accommodate 4-subject plates. It is also possible that some of those 4-subject electros were finished so they could serve side-by-side on the power presses. We simply don?t know. Special mention is warranted for the $1 Series of 1917 legal tender plates listed on Table 1. These 4- to 8-subject alterations dating from 1925 are the youngest we have found. This may seem peculiar because $1 Series of 1923 LTs already were in production and they were being cranked out on the high- volume power presses from 8-subject plates. An urgent problem faced by the Treasury Department was a consequence of the Pittman Act of April 22, 1918, which mandated that huge quantities of silver dollars in storage in the Treasury be melted and the resulting bullion sold to Great Britain for use in coining money for India. Equally huge volumes of silver certificates had to be redeemed to offset the melted silver dollars that backed them. Figure 3. Sometimes they put either a 1 (left plate) or 2 (right plate) in the corners of plates to indicate the position of the plate in the 8-subject form. The numbers were used on some regular 8-subject plates as well. JCF was James C. Filgate who was the siderographer who laid-in both of these plates. Note: the legal tender $1 faces were printed from head-to- head plates. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 235 The only $1 Treasury currency in use during the period leading up to the Pittman Act was silver certificates. But even before the Pittman melts, the Treasury was experiencing a chronic shortage of $1s. This compelled Treasury Secretary McAdoo to resume issuing $1 legal tender notes beginning with Series of 1917s, which became available from the BEP on July 1, 1918. They were the first $1 legal tender notes printed since 1896. Then came the new Series of 1923 LTs, the first to arrive on January 3, 1924. However, the BEP kept right on printing 1917s because there was sizable inventory of those plates. On April, 1924, William S. Broughton, Commissioner of the Public Debt, requested Assistant Secretary of the Treasury C. S. Dewey to authorize BEP Director Alvin Hall to continue to use all completed $1 Series 1917 LT plates as well as to finish and use any that weren?t yet finished (Broughton, Apr 24, 1924). The Bureau already was printing the last of the 1917s from 8-subject plates on power presses, so they had a major incentive to sweep-up the last of their 4-subject 1917 plates in the plate vault and alter them into 8-subject forms for use on power presses. The last of the 1917 LT $1s arrived on December 22, 1925, many printed from the 4- to 8-subject conversion back plates. Ironically, they arrived two months after the last of the 1923s! A glitch developed when the last nine 4-subject steel $1 1899 back plates were altered for use on power presses. This involved plates 2987, 2991 and 3004 through 3010. Plate 3010 was the last 4-subject 1899 steel back plate. The plate serial numbers had been assigned to pieces of steel in August 1922 but the plates weren?t actually made until September 1924. They were finished on September 5 almost six months after the last of their predecessors. At that time, there was a huge push to crank out $1 silver certificates because silver certificate production was ramping up concurrent with production of new silver dollars following the end of the great Pittman silver dollar melt of April 1918 through May 1919. These nine plates had just been laid-in and were immediately paired into 8-subject forms as BEP personnel were turning over every rock to meet the demand for the silvers. Four pairs were made from the group plus one spare, namely 3010. All were sent to the press room on September 8, 1924 except for 3010. It is obvious that the four pairs were mounted on the same power press. Things didn?t work out though. All were returned to the plate vault September 10th and canceled September 11th, including 3010. A look at the proofs revealed why. The wrong sides of all those plates had been milled so when the pairs were abutted, they came out head-to-toe instead of toe-to-head on the press. Had they been used, every note printed would have had inverted backs! The fact that those plates were in the press room for three days hints strongly that they saw at least limited use before the problem was discovered. We?ll never know that detail. Economy We have been examining a process that was employed as an expedient over a three-year period during the height of the transition from use of 4- to 8-subject plates for production of the high-demand type notes. The alteration of two 4-subject plates into 8-subject forms was an economy measure that allowed the Bureau to consume its existing valuable inventory of 4-subject plates rather than scrap them. Figure 4. Shown is the top of a proof from an altered 1917 LT 4-subject back plate complete with two hollow stars to indicate that it had been altered for use in an 8-subject head-to-head pair and a numeral 1 to indicate that it was the left plate in the pair. The design of the 1917 backs was so symmetrical, they put TOP in the upper margin to help pressmen correctly position the plates on the presses. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 236 Of course, the process could be employed for any type notes that were printed from 8-subject plates on the power presses. By 1923, the $5 through $20 Series of 1914 Federal Reserve notes were being printed from 8-subject head-to-toe back and toe-to-head face plates. Similarly, many 5-5-5-5, 10-10-10-10 and 10- 10-10-20 backs for Series of 1902 national bank notes were printed from 8-subject steel plates on power presses. The resulting sheets were then cut in half and the halves used as feed stock for the face printings on one-plate, 4-subject presses. However, we haven?t found evidence that any FRN or NBN 4-subject plates were altered into 8-subject forms. Sources Cited and Sources of Data Broughton, William S., Apr 24, 1924, Memorandum from the commissioner of the Public Debt to Assistant Secretary of the Treasury C. S. Dewey requesting him to authorize BEP Director Alvin Hall to continue to print Series of 1917 LT notes: Bureau of the Public Debt, Series K Currency, Record Group 53, box 11, file ?Currency Designs.? U.S. National Archives, College Park, MD. Bureau of Engraving and Printing, various, Certified proofs lifted from currency plates: National Numismatic Collection, Museum of America History, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, various, Historical Records of Plates in the United States and Miscellaneous Vault & Ledgers and Historical Record of Stock in Miscellaneous Vault - 4-8-12 sub faces: Record Group 318, U. S. National Archives, College Park, MD. United States Statutes, U. S. Government Printing Office, Washington, DC. Andrew Pollock 2019 SPMC Founder?s Award recipient by Peter Huntoon In 2018, the Newman Numismatic Portal received an unprecedented accession from Andrew Pollock III wherein Pollock had compiled a yearly listing of bank presidents, cashiers, total bank resources and national bank circulations that he abstracted from every one of the 73 annual reports of the Comptroller of the Currency for all 14,348 national banks chartered from 1863 through 1935. Pollock compiled this incredible data set by typing over a half million lines of data into an Excel spreadsheet, a task for which he set a goal of entering an average of 500 entries per day continuously over a three-year period. He typically worked 80 hours per week to maintain this pace. He is not a paper money collector but worked for Bowers & Merena. However, he was challenged by the task of compiling this wealth of data when he became acquainted with the Comptroller of the Currency annual reports and discovered that they were available on-line through the Federal Reserve Bank of St. Louis FRASER document archives. His feat ranks with Louis Van Belkum?s Herculean compilation of the national bank note issuance from the National Currency and Bond Ledgers in the National Archives during the 1960s and 1970s, except Pollock?s compilation is larger and took considerably more time. Pollock earned a Bachelor of Science degree in Chemistry at Worchester Polytechnic Institute in 1979, then worked as a chemical technician for several years until joining Bowers & Merena in 1987. During his pre-numismatic career, he worked for Badger, a division of Raytheon, in Weymouth, MA, from 1980 to 1983 in their process development department. He resumed schooling, this time at the University of Kentucky, to study biology between 1983 and 1984, then returned to Quincy, MA, to work for H. V. Shuster evaluating pharmaceuticals, dietary supplements and other consumer products between 1985 and 1987. Then it was on to Bowers & Merena. Juggling work and study before leaving Bowers & Merena, he then earned his Masters of Library Sciences degree from Simmons College in 1999 and in 2000-2001 served as the archivist at the Kingston Public Library in southeastern Massachusetts where he oversaw the local history room and created findings aids for some of the repository?s collections. He now resides in New Hampshire. He has justly established himself as a giant in the field of numismatics and national bank note currency in particular. His is one of the greatest research gifts to national bank note collecting ever assembled and is free for download from the Newman Numismatic Portal. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 237 HONG KONG SHANGHAI LONDONMUNICH SARASOTA Collect With Confidence Worldwide For more information, visit: NGC and PMG have earned the trust of collectors and dealers worldwide through their unrivaled expertise, stability and integrity. Together, the companies have certified more coins and paper money than any other grading services, and operate the largest network of global submission locations. In fact, NGC and PMG now operate more than 82,000 square feet of purpose-built offices dedicated to expert certification services, including expanded locations that recently opened in Hong Kong and Munich. As part of the Certified Collectibles Group (CCG), NGC and PMG share a long-term management team, as well as the financial backing to support their industry-leading guarantees of authenticity and grade. That?s strength and stability you can trust. 20 GLOBALLOCATIONS 50 GRADINGEXPERTS 47,000,000 COLLECTIBLES GRADED 46 YEARS OF COMBINEDINDUSTRY LEADERSHIP 19-CCGPA-4959_CCG_Ad_NGC_PMG_Stability_PaperMoney_MayJune_2019.indd 1 4/1/19 11:14 AM New Information on the World War II Douglas Promenade Internment Camps on the Isle of Man by Steve Feller Recent online auctions and sales have yielded much new information on the money and life at Isle of Man World War II internment camps that lined the seaside promenade in and near the island?s capital, Douglas. In the spring of 1940 Britain, as they had done in World War I, initiated civilian internment and POW camps on the Isle of Man. Altogether, there were more than a dozen World War II camps on the island of which at least 9 issued money. Of the camps in Douglas this article deals with interesting information on the Sefton Camp, the Central Promenade Camp, the Palace Camp, the Metropole Camp, and the Onchan Camp as one walks from the center part of Douglas north out towards the village of Onchan (see maps below). My brief descriptions of the five camps are updated from the book1 Silent Witnesses: Civilian Camp Money of World War II by Ray and Steve Feller. Much more information may be found there regarding the money of all Isle of Man camps. A. The Sefton Camp The Sefton Camp was on Harris Promenade, Douglas, along the street where the Sefton Hotel and Gaiety Theatre are. The camp was never large, housing at its height only 377 internees. All of the notes from this camp were 56x30 mm and said, Sefton I.C. at the top center, with the denomination in the bottom center. At the bottom they also say, Douglas I.O.M. There is a serial number at the left, running vertically. The back has a stamp phrase shown below in bits and pieces. The composite reads Sefton Internment Camp Accounts Office, although none of these notes show it all. Map of Great Britain and Ireland. Note the central location of the Isle of Man in the Irish Sea. /cuisine-on-isle-of-man-food-from-fear.html The camps along the seaside in and near Douglas, IOM (Manx Museum) ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 239 The notes shown are from the Dr. Al York collection they were auctioned last year in New York. A New Year?s card2 from the Sefton Internment Camp Accounts Office., December 1940. A New Year?s card of 1940-41 from the Sefton Camp depicts two new notes since Silent Witnesses came out, leading to five known denominations altogether. The new denominations are one shilling and two shillings and six pence. Shown below is a summary of the known issues from the Sefton Camp. Silent Witnesses # shillings/pence IM-1455 -/0.5 salmon pink IM-1456 -/1 sea green IM-1457 -/6 azure blue IM-1458 1/- red IM-1459 2/6 yellow ?, 1, and 6 pence notes of the Sefton Camp ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 240 In 1998, Coe College student Eric Hammarsten and I had dinner at the Sefton Hotel. Below is an image of the front door of the hotel as we approached the hotel. This was part of a research trip during which several numismatic discoveries were made. Fuller descriptions are given in Silent Witnesses and an article in the I.B.N.S. Journal3. Today it is a five-star hotel to serve well-heeled customers on an island that has a large financial sector. The Sefton Camp, December 1998, after a significant renovation A circa 1900 postcard of the Camp Sefton and Gaiety Theatre site. Front door of the Sefton Hotel, 1998 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 241 B. Central Camp The Central Camp was located a bit north of the Sefton Hotel. According to Pam West3 the camp consisted of ?The Empress Hotel and 34 surrounding adjacent properties.? Upon closing early in 1941, its remaining inmates were transferred to the Onchan Camp. No notes are known from the Central Camp. However, postal items are known, see below. This is a good place to mention that the postal history of the camps is extensive with philatelic items being more plentiful than numismatic ones. C. Palace Internment Camp The Palace Camp was put together from 29 holiday hotels in Palace Terrace, Queen?s Promenade, Douglas. The camp ran from July 1940 to 1942, housing mostly Italians, though later on there were other nationalities, including Finnish and Japanese prisoners. There were several types of notes that came in booklet form. Only three booklets have been found, and they are incomplete. Many of the pieces in collections came from these booklets. The notes measure 84x48 mm. There is a serial number at the top, under which it says Palace Internment Camp. There is a denomination in numerals at the lower left and right, and it is written out between them. The notes came from the ?Examiner? Printing Works in Douglas. Many people dream of the proverbial needle in the haystack find on Ebay. Imagine my excitement when I saw the following ebay lot (unedited) and image: Vintage WWII period circa 1942 civilian internment papers (Onchan) these are particularly rare and unique as they are the papers (including pay slips) for ?Barbato Forte? restaurateur during the period and also owner of a large ice cream chain ?Fortes? after the war, Mr. Forte being an Italian living in England and as such he was interred at the palace internment camp due to national safety measures applied during the war, the documents are presented in the original hand made leather wallet that was carried and used by Barbeto Forte during the period. A newspaper wrapper sent to the Central Camp in Douglas, IOM. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 242 This picture certainly got my attention! It shows four internment camp notes and an assortment of original camp documents. Luckily, my numismatic friends didn?t see it and soon the lot joined the Feller collection. For the Palace Camp it had 2 notes: a one penny and a previously unknown ? penny note. The same piece is now listed in Pam West?s new book on the Isle of Man4 Here are closeups of the discovery piece: Discovery half penny note from the Palace Camp found in the internment camp wallet on ebay. Outside and inside of wallet made and used by Barbato Forte in the Palace Camp and Onchan Camp on the Isle of Man. The other items in the wallet are discussed with the Onchan Camp items. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 243 Here is the ?Home Office? note stamped at the Palace Camp taken from the wallet. These were used in many of the camps and are known with various camp overprints. Cover from the Palace Camp, March 19, 1941. Palace Camp site in late 1998 Palace Camp site during the war (Manx Museum) D. Metropole Camp The Metropole Camp was in use from 1941 until 1945. It was also sometimes referred to as ?S? Camp, and sat on the waterfront in the capital city of Douglas. The camp was made up of four hotels on Queen?s Promenade: Alexandra, Metropole, Milne?s Waverley, and Dodsworth?s. There were two types of scrip used in Metropole, both printed by the Douglas branch of Norris Modern Press. In 1998 Eric and I, on a lark, walked into the Metropole Hotel, part of the Metropole Camp site. We could literally smell the dusty history in our nostrils. We asked if there were any things left from the war period. The manager, in his eighties and fully aware of the hotel?s role in the war, asked if we would like a bag filled of old newspapers, Red Cross items, and other such items that they had found under the floorboards! What a thrill we felt when it was given to us! Most of this historic material was given to the museum after scanning by Eric Hammarsten. Some of it is shown below. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 244 The following images are from the hoard of artifacts discovered at the Metropole Hotel. German POW newspaper announcing the atomic bombs dropped on Japan, August 11, 1945. The Metropole Hotel bespoke history.Metropole Camp site where we found artifacts from the camp days. This was December 1998 just before its demise. German Red Cross (Deutschen Roten Kreuz) wrapping discovered at the Metropole Camp in 1998. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 245 Here are some details on the money used at Metropole. Type 1. Made on cloth-lined pasteboard. 31 mm diameter circles. Four chits to a card. The cards measure 67x68 mm for the ?-penny and 73x76 mm for the penny. States camp name and denomination. An issued note and an unissued block of four are shown below. Note the color change of the face from blue to pink. Type 2. Made on white paper with a blue back. States, Metropole Internment Camp, Douglas. Promise to Pay the Internee the Sum of followed by a denomination. There is a serial number at the lower left and upper right. Issued one penny note of Metropole Camp Unissued set of four one-penny notes of Metropole Camp. Face of 10/-. Note the error in mismatched serial numbers (Hilary Guard). Back of 10/- scrip (Hilary Guard). Face of 1/-/- note (Hilary Guard). ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 246 Some printer?s trials remain and are shown below. Site of the Metropole Hotel on a pre- World War II postcard. A recent discovery has led to new numismatic finds from the Metropole Camp as well as other camps5. From Robert Hendry of the Isle of Man we learn: The discovery is a variety of train tickets and passes for workers from the camps who, along with escorts travelled to farms throughout the island. After a while, it occurred to someone that local farmers needed labor, as there was a move to grow more food on the Island. Internees were in desperate financial straits, so were allowed to volunteer to work on local farms and would be sent by train from Douglas to the nearest station. To ensure they would not make a break, there was an escort on the train, but as they went to different farms, the farcical nature of this is manifest. The parties of internees would be marched to Douglas station where the escort would hand over a slip of paper with the name not of the prisoner but of the farmer who they had been consigned to, the number of internees and the station. The Isle of Man Railway (IMR) accepted this as a ticket warrant and charged the camp the necessary fare, the camp offsetting it as an expense against the profits of hiring out the labor, the internees receiving a small sum for their work. HM Forces tickets which were paper tickets measuring approximately 3 x 4.5" were used, with the details entered by hand. A small stock of these internment camp warrants for the Metropole Camp survive. Each is 'individual' as it will be for a different date and party of Internees, which can vary from 1 or 2 to 14 or more. The warrants are on odd slips of scrap paper, but ALL have a 2 x 1.25" oval METROPOLE INTERNMENT CAMP rubber stand within a double ring, which is dated. Sometimes the inking is very faint if several warrants had been stamped, but if the rubber stamp had been inked it can be over inked. Printer?s trial (Hilary Guard). Printers trial and issued back of 1/-/- notes (Hilary Guard) ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 247 Santon and Port Soderick Metropole Warrant These destinations were the major ones for internees, if the surviving material is a representative sample of the whole, and the names of individual farms/farmers recur. Apart from the main destinations, there can be other interesting variations Metropole CROSBY Warrant This was a less common destination. UNSTAMPED 'Rubber stamped' WARRANT The Metropole warrants were written on scraps of paper and to give them some semblance of 'officialdom' were rubber stamped as we have seen. A handful, and it is a tiny quantity, seem to have been inadvertently issued without being hand stamped. The IMRCo could reasonably have rejected a scrap of paper with an order to send someone somewhere as invalid if it had no recognizable official element to it! You could have written it, or I could have, after all! As the soldiers who escorted the prisoners would be on the same duty day after day, and as the booking clerks would know them, and it would mean a day's work would be lost, it seems that everyone accepted as valid a rubber- stamped document without the rubber stamp! Quite clearly, it IS a variant, just as a stamp that was lacking one of the inks in the printing process is a variant, but one that only makes sense if it is displayed with comparable properly completed warrants, as it is otherwise just a scrap of paper that could have been written by anyone. METROPOLE WARRANT on back of official government Offers of Assistance form of 9/38 The majority of Metropole warrants are on scraps of plain white paper, as paper was rationed and in short supply, but during the war, surplus or superseded forms could be used. This variant of the Metropole warrants looks very smart as they are on an attractive pink paper, and when you turn it over you find it is an 'Offer of Assistance' form printed by the government in 1938 and which has been formed in half to provide paper stocks! Very few survived. If the Metropole Camp issued warrants, it is reasonable to suppose that other camps did, but so far, I have seen no examples. Shown is a map of the Isle of Man train system followed by the Metropole handwritten train passes. Railway map of the Isle of Man ( hread.php?122512-A-Journey-to-the- Isle-of-Man-Steam-Railway). ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 248 . Warrant for three internees and one escort (crossed out) for Mrs. Maddrell, the Ballakissack Farm in Santon (a station on the Southern line of the IMR, see railway map above). Train pass for two internees and an escort to go to Kimig, Ballona Union Mills, November 17, 1942 Warrant for five internees and one escort for a farm near Ballasalla (a station on the Southern line of the IMR, see railway map above) ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 249 The train station at Ballasalla, IOM (Robert Hendry) Various warrants for a total of 12 internees for farms near Santon (most), and Port Soderick, see railway map prior page. Various warrants for a total of four internees and two escorts for farms near Ballasalla, see map above. Note the Metropole Camp is handwritten. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 250 Other camp railway tickets Warrants for April 13 and 14, 1943 for Santon for a total of twenty internees and three escorts. See railway map above. IMR railway tickets for (left) eight aliens from the Marrieth Camp and 1 escort from Port St. Mary to Castletown, Oct 3, 1941. The purpose here was for women internees to shop; (right) eight internees and one escort from Douglas to Crosby, September 11, 1944. Since there were six camps on Douglas it is not known from which camps these came from. Railway tickets from Peveril Camp in Peel to various farms. Top: 4 internees, bottom: 7 internees ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 251 E. Onchan Internment Camp Onchan was the first and largest camp on the Isle of Man, established just north of the capital, Douglas. An area of 60 houses was chosen for the camp. The householders were given a letter on May 23, 1940, telling them to evacuate by May 31. Also, they had to leave many of their household goods, such as cutlery and sheets. The houses were then surrounded by barbed wire to form the camp. Onchan was known as the best male internment camp because the houses used to be a boarding school, and so it had its own football (soccer) field and tennis courts. At first, the camp was for ?enemy? aliens, mostly from Germany. Many of the inmates were professional artists, professors, students, and musicians. According to Campbell6, these men were employed at farms, land reclamation, watch repair, and toy-making. The inmates had many hobbies that earned them money as well, including cooking, bookbinding, tailoring, and hairdressing. The Reverend Canon J. Duffield was interned at Onchan. He was later interviewed by the Imperial War Museum in London, where he commented on the activities the inmates invented to keep themselves occupied: They had concerts, put on plays, and the morale I think was very good. The men did their best to stay optimistic that they would be released soon. The items below are ones from Onchan Camp that originated in the camp-made wallet described above. They include: a) an identification card for Barbato Forte of Company A House 52 b) a card that identifies Barbato Forte as a fireman in House 52. c) the face and back of one of two ?Home Office? notes found in the wallet. It is stamped for the Onchan Camp and dated January 1942. Barbato Forte Family_Tree/Tree/1437.html ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 252 Based on the wallet holding two Palace Camp notes and two general Home Office over stamped Onchan notes it is likely that Mr. Fortes was transferred circa 1941 to Onchan from the Palace Camp, since the HO notes were issued after the individual camp currencies. Here is another camp related document from Onchan: the letter shown at left was purchased at Colin Narbeth?s wonderful shop shown on next page) near Leicester Square on Cecil Court, London. They always have interesting items including the Isle of Man internment camp monies. Letter from the Camp Commander of Onchan. This letter from the camp commander at Onchan regards the issuance of both notes and coins at the camp. While the numbers of coins and notes have been published previously, they are interesting to see here in the letter. The one pence coins were made in a number greater than the sum of all other denomination combined. We also learn that the coins and the notes were issued the same day, October 7, 1940. It seems it was possible to order the sets of the money directly from the camp. Non-negotiable souvenir examples of the notes exist. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 253 The wonderful Colin Narbeth and Sons shop on Cecil Court, Leicester Square, London. Colin is member one of the International Bank Note Society. Finally, many camps had their own magazines. Collector Hilary Guard gave us a few during our 1998 visit. Here is a lovely piece of artwork from the Christmas issue of 1941 of the Camp Parade of the Hutchinson Camp also known as P camp. The piece is entitled Three at Euston Station and it was drawn by inmate W. Schmeidler. References 1?Ray and Steve Feller, Silent Witnesses: Civilian Camp Money of World War II (BNR Press: Port Clinton, OH) 2007. 2?Bernard Osborne, Isle of Man Postal History of 20thCentury Internment Mail, (The Isle of Man Postal History Society, Ceredigion, IOM) 2015.? 3?S.A. Feller and E. Hammarsten, ?A Numismatic Adventure on the Isle of Man,? I.B.N.S. Journal 38 (1) (1999) 18. 4?Pam West and Alan Kelly, Isle of Man Paper Money, (Pam West, British Notes, Ringwood, UK) 2015.? 5?The story of the train tickets is edited from information supplied by Robert Hendry of the Isle of Man.? 6?Lance K. Campbell, Prisoner of War and Concentration Camp Money of the Twentieth Century, Second Edition (BNR Press: Port Clinton, OH) 1993.? Three at Euston Station drawn by inmate W. Schmeidler. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 254 Central States Numismatic Society 78th Anniversary Convention April 22-25, 2020 Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: Bourse Information: Patricia Foley (414) 698-6498 ? 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 A Tale of Two Quaker Bankers By Nicholas J. Bruyer Copyright 2019 Brothers Cyrus P. and Richard J. Mendenhall were born to a Quaker family on a North Carolina plantation. They were raised according to the religious values of non-violence and the abolition of slavery. When those values were put to the test, they chose very different paths. The Mendenhall family name is deeply woven into the history of Guilford County, North Carolina. Their ancestors came to America with William Penn in 1682. In 1762, James Mendenhall left Pennsylvania to farm the fertile lands along the Deep River in North Carolina. Eventually the place was named for him: Jamestown. Richard Mendenhall?s Quaker plantation house is preserved today as a historical landmark (Wikipedia) Richard Mendenhall was born to James in 1778. He continued the family?s prosperous tannery business. He also had a lumber mill, an inn and a store where the various products of the plantation, including fruits, vegetables and flowers, were sold. He and Mary Pegg Mendenhall had eight children, including three sons: Cyrus Pegg, born in 1817; Nereus, born in 1819; and Richard Junius, known as Junius by his family, born in 1828. All were raised with the values of the Quakers, also known as The Society of Friends. Central to these values were non-violence and the equality of all people, regardless of race. Quakers applied their beliefs to the blacks and the Native Americans they lived among. Unlike their slave-owning neighbors, who lived lives of relative ease, the Mendenhall children gained valuable skills working the family tannery, lumber mill, farm, store and inn. Oldest son Cyrus and young Junius were especially fond of the orchards and gardens and learned about agriculture from their father. Quaker plantations of this era were self-sufficient, raising crops including corn, wheat, flax and cotton in addition to fruits and vegetables. Each of the Mendenhall children were sent off to attend the New Garden Boarding School. The town of New Garden was the center of Quaker life in North Carolina. Opened in 1830 to foster Quaker education, in 1837 it became the only co- educational school in the state. It eventually became Guilford College. Opposition to slavery mounted among the Quakers in the early 1800s. Richard Mendenhall became an outspoken abolitionist. He helped found, and served as president of, the Manumission Society of North Carolina. Manumission is the practice of voluntarily abolishing slavery by releasing one?s slaves. To counter manumission, North Carolina passed laws allowing a freed slave to be kidnapped and sold back into slavery, even if they had paperwork documenting their freedom. The only way to guarantee a slave?s freedom was to transport them away to free soil. When they weren?t running their various businesses, Richard and a fellow Quaker, Levi Coffin, spent evenings and Sundays teaching anyone, including slaves, how to read and write. This infuriated their slaveholding neighbors. Finally, Levi Coffin could stomach no more of the hostility. In 1826, he left Guilford County for Indiana. Yet his presence continued to be felt throughout the South for decades to come. He became a ?Conductor? and unofficial leader of a secret group known as the ?Underground Railroad?. Over the next twenty years, Coffin helped more than 2,000 slaves escape. As the oldest son, Cyrus Mendenhall grew up well educated, skilled and brimming with ambition. He had a commanding presence, standing six feet four inches and weighing over 200 pounds. He dreamed of life beyond the plantation and turned his eyes to Greensboro, the business hub of Guilford County. He read law under his uncle, a former Quaker named George Mendenhall. About 1840 he moved ten miles from Jamestown to Greensboro to practice law. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 256 Cyrus P. Mendenhall, oldest son of Quaker abolitionist Richard Mendenhall (North Carolina Friends Historical Collection, Guilford College) Cyrus? boundless energy, business sense and honesty quickly earned a place for him. He became the attorney of Guilford County and in 1844, at age 27, was elected Mayor of Greensboro. He helped replace Greensboro?s run-down courthouse with a new one. He started free public schools, helped found the Greensboro Female Academy and was president of its Board of Trustees. His love of horticulture led Cyrus to build a large nursery business named West Green Nurseries. He planted so many magnolia trees in Greensboro that it became known as the ?City of Flowers?. Cyrus found the life in Greensboro exhilarating. No longer did his world revolve around the demands of the plantation, the daily struggle to compete against slave labor, and his father?s crusade against slavery. As mayor, Cyrus met important people such as John Motley Morehead, Governor of North Carolina from 1841 to 1845. His state was considered backward, partly due to a lack of rail transportation. Morehead spearheaded the creation of a state-owned railroad. Cyrus lent his support and worked hard to help Morehead. In 1849, the state legislature passed an act to incorporate the North Carolina Railroad. Cyrus? youngest brother, Junius, watched his oldest brother?s meteoric rise with awe and envy. At age 20 in 1848 Junius attended the New Garden Boarding School. In 1850, he finished his education at the Friends? Boarding School (today known as the Moses Brown School) in Providence, Rhode Island. Junius contemplated his future. Should he return to his father?s farm, follow his oldest brother?s footsteps, or go west? During his summer vacation at Lake Winnipesaukee, New Hampshire, he formed a lasting friendship classmate Cyrus Beede. May 8, 1851, shook the Mendenhall family to its core. Richard Mendenhall, the gravitational center of the family?s spiritual, moral and intellectual values, died. His passing created a void that each member of the family would soon deal with in their own way. For Cyrus Mendenhall, the loss of his father was both deeply sad, yet liberating. He plunged deeper into the business opportunities of Greensboro. Two months after his father?s death construction began there on the North Carolina Railroad. Gov. Morehead hailed it as ?the tree of life? for the State. Morehead was appointed president of the railroad and became known as ?the Father of Modern North Carolina?. For assisting Gov. Morehead, Cyrus became the NCRR?s Secretary and Treasurer, eventually serving on its Board of Directors. For Junius Mendenhall the loss of his father came just as he was deciding his future. He resolved to pursue adventure out west. He moved to Ohio, where he found work for a railroad and learned to be a surveyor. Junius kept in touch with his family and felt their pull. The NC Railroad was hiring surveyors and Cyrus could get him a position. Middle brother Nereus already was on a survey crew. If he was going to be a surveyor, Junius reasoned, why not do it alongside his brother and close to his family and friends? In 1853, Junius returned to North Carolina as a surveyor for the NCRR. As he watched slaves toil on the rail construction he soon realized it was a mistake. His Quaker values would not allow him to be a part of it. His brother Nereus, walking in his father?s footsteps, railed against slavery and was nearly jailed for possessing an anti-slavery publication. Meanwhile his brother Cyrus achieved financial and social success as he immersed himself ever deeper into southern society. At age 35, Cyrus was one of the most eligible bachelors in Guilford County. His social circle led him to Miss Nancy Staples, daughter of a wealthy Virginia plantation owner. Col. Abram Staples was a Baptist. In 1854, Cyrus married Nancy and with her came a dowry of 35 slaves. Cyrus was disowned by the Quakers for marrying out of unity. It was a stunning turn of events for Junius. The next year he left North Carolina for good. Like thousands of Quakers before him, he voted against slavery with his feet. When it became clear that the Northwest Territory would be permanently free of slavery, entire Quaker communities sold out and moved there. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 257 1858 newspaper ad of Beede & Mendenhall, Minnesota Territory ( Cyrus Beede?s father, Stephen, was cashier of the Carrol County Bank in Sandwich, New Hampshire. (Image courtesy Q. David Bowers from collection of David Sundman). Junius joined a railroad crew in Muscatine, Iowa as a surveyor. A month later he was promoted to head the crew. By the fall of 1855 his crew worked its way to Des Moines. From there Junius left the crew and spent the winter of 1855-56 in the office of Dewey & Tubby, civil engineers and land agents. They told him of a huge real estate boom up the Mississippi river in the towns of St. Paul and St. Anthony. Enterprising men were making fortunes! Perhaps he was influenced by William Winfred Wales, the first Quaker ?Friend? to settle in Minnesota. A North Carolinian, Wales arrived at the Falls of St. Anthony in 1851. In 1856 he published An Immigrants? Guide to Minnesota, which received wide circulation. Wales was twice elected mayor of St. Anthony. With the spring thaw, Junius Mendenhall took a steamboat up the Mississippi to St. Paul. There he boarded a stagecoach to St. Anthony, where he tossed his steamer trunk into a wheelbarrow. After paying the 10-cent toll fare, he trudged across a wooden bridge over the Mississippi river. As he crossed the bridge, he stopped to take in the view. On either side of the Mississippi water mills tapped the power of St. Anthony falls. A half-dozen steamboats were docked up and down the river, unloading their cargoes into newly built warehouses. Already there were six lumber mills straddling the falls at St. Anthony, producing a million board feet of lumber a month. The air was thick with the smell of newly sawed white pine. Buildings were being hammered together everywhere. Muddy streets were crisscrossed with the ruts of wagons and carriages. At the end of the bridge, he entered Bridge Square in the new town of Minneapolis. He made his way to a boarding house. It was April 25, 1856 and Junius was 28 years old. With his distinctive plain coat, broad brimmed hat and use of the obsolete ?thee?, ?thy? and ?thou? in his vocabulary, Mendenhall immediately stood out from the other pioneers. With few Friends in the area, Quakers were something of a novelty. One of Junius? first jobs was for the Union City Town Site Company. As a surveyor and he helped plot the site for Rapid Waters, later known as Watertown. Junius wrote enthusiastically to his Quaker schoolmate Cyrus Beede, urging him to join him in the boomtown of Minneapolis. Like Junius, Cyrus Beede had ventured west. In 1852, he bought a farm just north of Oskaloosa, Iowa. Cyrus Beede?s father, Stephen Beede, was cashier of the Carroll County Bank in Sandwich, New Hampshire (later to become the Carroll County National Bank). Beede was well educated in banking and was eager to put his skills to use. He packed his bags and joined Junius in Minneapolis. On August 1, 1856, the two Quakers opened a land, loan and private banking business under the name of Beede & Mendenhall. It was located on the corner of First Street and Bridge Square, across the river from St. Anthony and east of the new city hall. Up to then just two banking firms existed in Minneapolis: Snyder & McFarlane, having commenced business on October 9, 1855; and Curtis H. Petit, who opened his doors a few weeks later, on November 1. According to Isaac Atwater in his book, History of the City of Minneapolis, Beede & Mendenhall?s new business ?went swimmingly; times were brisk, many new comers were arriving, (land) values were increasing, and sales of real estate frequent. The banking firm loaned many thousands of dollars on securities which were considered good?. A chronic cash shortage was a major obstacle. With no state banking law, no local banks could issue paper money. The pioneers were forced to ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 258 The Farmers Bank of Elizabeth City, NC (NC State University Collections) rely on out-state bank notes, many of doubtful value or even spurious. Beede & Mendenhall could loan money for as much as 5% per month, and 10% if past due. They invested in a lumber mill and numerous real estate deals. Regarding early banking in Minnesota Sydney A. Patchin wrote; ?A spirit of optimism pervaded the territory. One editor in the summer of 1856, after mentioning that it was a common thing to buy lots in St. Anthony and Minneapolis one day and sell them the next at an advance of from fifty to seventy-five per cent, declared that it was impossible for any land at the prices then prevailing to deteriorate in value? Apparently everything was at the high tide of prosperity; most of the people were living beyond their means, in an atmosphere of feverish excitement, basing all their hopes on the outcome of the most fantastic project, a condition of affairs certain to prove disastrous to all concerned?. Sure enough, a year later the Panic of 1857 struck. Excessive speculation in railroad stocks was one cause of the financial bubble popping. Several railroads suspended construction or shut down. Grain prices collapsed from $2.19 to $.80 a bushel, causing banks to foreclose on farmers. The sinking of the S. S. Central America in September, taking with it 30,000 pounds of gold from California, contributed to the cash shortage. According to Minneapolis pioneer John H. Stevens, ?The year 1858 opened under gloomy circumstances. Trade was depressed, currency depreciated, business paralyzed, real estate valueless, and financial ruin to all classes seemed inevitable. The crops of 1857 were poor. The flow of immigration ceased? no one could borrow money, for no one had it; and yet the people were hopeful. The fractional currency issued by the merchants and bankers was a convenience.? Corner lots in Minneapolis that sold for $3,000 in May of 1857 could not find a buyer at $300. Business failures surged and those who survived were hard pressed. Thousands of recent immigrants turned around and fled. The value of most deeds and securities Beede & Mendenhall held as collateral for their loans collapsed. As Isaac Atwater put it, ?The panic of 1857 blighted the glowing prospects, not only of (Beede & Mendenhall) but of the entire business community; yet they held on, preserving their credit and doing such business as was possible under the adverse conditions?. Back in Greensboro, the same panic that caused a crash of business for Junius Mendenhall created an opportunity for his brother Cyrus. The Farmers Bank of North Carolina was chartered in 1852 in the coastal town of Elizabeth City. It issued circulating notes in the usual denominations, as well as notes of $4, $6, $7 and $8. Elizabeth City?s primary commerce was shipping on the Dismal Swamp Canal. Built with slave labor in 1796, it connected the Albemarle Sound to the Port of Norfolk, Virginia. In 1855, construction began on a new channel, the Albemarle-Chesapeake Canal. Its planned opening in 1859 would bypass Elizabeth City and threatened to devastate its shipping industry. The Panic of 1857 compounded the commercial threat to the city, forcing the Farmers Bank to temporarily suspended specie payments. By July of 1858, local merchants refused to accept the bank?s paper money. In September the local newspaper reported the notes were severely depreciated and opined, ?We sincerely wish the Bank would use some means to relieve the people and save its own credit. It is bad business at present.? Cyrus Mendenhall saw an opportunity to buy the bank ?on the cheap?. In the fall of 1858, he and his partners scooped up the Farmers Bank at a bargain price. They reorganized it as the Farmers Bank of Greensboro, recapitalizing it at $400,000. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 259 Cyrus Mendenhall signature on Farmers Bank notes with ?Greensboro? prominent. Note vignette of woman pointing to ?Union?. Vignette of happy slaves with cotton is ironic given Mendenhall?s Quaker upbringing. Worthless note of the American Bank of Dover Hill, IN, endorsed and reissued by Beede & Mendenhall, Minneapolis In December they moved the home office to Greensboro, keeping Elizabeth City as a branch. Cyrus Mendenhall became president and William Addison Caldwell became cashier. They redeemed and retired virtually all the bank?s old Elizabeth City circulation, punch- canceling the notes and storing them in the bank?s vault. Mendenhall ordered new plates from the American Bank Note Company, with ?GREENSBORO? larger than ?The Farmers Bank?. The message was unmistakable. When the new canal bypassing Elizabeth City opened, the dire predictions failed to materialize. A year later Elizabeth City?s economy was humming, the bank?s assets were solid and its reputation was restored. Cyrus Mendenhall made a killing. Worthless Bank Notes Become the Most Valuable In Minneapolis, the partners of Beede & Mendenhall were pulling every string they could to stay afloat. With a severe cash shortage and no authority to issue bank notes, they resorted to buying worthless notes of fraudulent Indiana banks, endorsing them on the face and re-issuing them as their own. Their endorsement guaranteed redemption ?in exchange (for other notes) or Gold at current rates.? Worthless notes so endorsed included those of the American Bank of Dover Hill and the Citizens Bank of Gosport, Indiana. Another Minneapolis private banker, Curtis H. Petit, reportedly endorsed and re-issued over $20,000 in worthless notes. That Beede & Mendenhall honored their endorsed Indiana notes is attested to by their rarity today, as few survive. Beede & Mendenhall advertised in North Carolina for land and investments in Minnesota. By capitalizing on the Mendenhall family?s reputation, the firm tapped a network of Quakers and others. In March 1858, Minnesota Territory passed its first banking law and on May 11, 1858, Congress admitted Minnesota to the Union. That same year Junius Mendenhall married Abby Swift, from Massachusetts, and Cyrus Beede married Martha Pickrell of Oskaloosa. Both were Quaker women. In 1859, Cyrus Mendenhall may have helped his brother Junius with a loan. A biographical sketch said Junius financed his business with capital from a bank in North Carolina. Despite considerable losses, Beede & Mendenhall secured enough cash to honor their obligations and in doing so earned respect and trust. At this time, only three banks remained in Minneapolis: Sidle, Wolford & Company, Beede & Mendenhall, and Rufus J. Baldwin. Cyrus Beede was held in such high regard that he was elected to the Minneapolis city council and became its second president. Yet in the spring of 1860, something happened that caused him to quit the city council and leave Minneapolis with his new wife and baby girl. He returned to his farm in Oskaloosa, Iowa, leaving behind his banking partnership. Following his return to Oskaloosa Beede helped organize, and become cashier of, the First National Bank of Oskaloosa. But after it closed in 1868 he found his true calling. Cyrus Beede ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 260 Today Confederate rifles produced by Cyrus Mendenhall?s MJ&G factory are prized by collectors (Heritage Auctions) In 1869 President U. S. Grant, fed up with the corruption that plagued the military?s management of Indian reservations, transferred them out of the Department of War. He enlisted churches to propose staff for a new Indian Department. The Society of Friends was given responsibility for the Central Indian Superintendence. In 1870 as the Plains Indian wars raged, Cyrus Beede became its Chief Clerk. For almost forty years, Beede served the Indian Department, capping his career under McKinley when he became U. S. Indian Inspector. He visited nearly every state and territory. Gen. Phil Sheridan, a ruthless warrior who conducted cavalry operations against the Indians, met Beede early in his new career. The sharp-tongued Sheridan characterized him as ?a little too simple for this earth.? As the financial panic dissipated, Junius Mendenhall continued the banking business. Yet larger and more sinister storm clouds were gathering. With the election of Abraham Lincoln to the Presidency on Nov. 6, 1860, the fragile relationship between slave and free states unraveled. Lincoln prophetically declared; ?I believe this government cannot endure permanently half slave and half free.? A month later, South Carolina seceded. As pro- and anti-slavery passions boiled over, North Carolina?s Quaker community faced gut-wrenching prospects. Only about a third of North Carolina?s white people owned slaves, so most adopted a ?wait and watch? posture as other southern states left the Union. On Feb. 28, 1861 North Carolina narrowly voted against holding a secession convention. Guilford County voted 2,771 to 113 against, with Cyrus Mendenhall among them. Then Fort Sumter was bombarded on April 12 and Lincoln called for troops to put down the rebellion. North Carolina?s governor replied, ?You can get no troops from North Carolina?. Days later Virginia voted to secede, leaving North Carolina ringed by Confederate States. Realizing that neutrality was not an option, on May 20 it became the last state to secede. As Nereus Mendenhall?s daughter, Mary, later wrote of the Quakers, ?We had been a little band of believers in peace in the midst of war, of antislavery abolitionists in the heart of slave territory, of hearts almost to a unit loyal to the Union in the midst of secession.? Although opposing secession, Cyrus Mendenhall stayed, but not for religious reasons. His business, civic and social lives were entwined into southern society. In 1860 he won election to the NC House of Commons. His slave ownership had grown to 46. Doubtless Junius Mendenhall received inquiries from Quakers eager to cash out of North Carolina and move to Minnesota. Among them were his sister and brother in law, the Nathan Branson Hills. Hills? brother in law, Dr. Alfred Lindley, also came to Minneapolis. As skirmishes and battles broke out in Virginia and South Carolina, North Carolina raised troops and sought arms. As an agricultural state, it quickly ran out of weapons and had little means to produce them. By the fall of 1861 North Carolina had five regiments with no guns. The state put out a contract for 10,000 rifles. Amazingly, Cyrus Mendenhall did what should have been unthinkable for a Quaker: He helped arm the Confederacy. He formed the partnership of Mendenhall, Jones and Gardner (MJ&G), and built a factory. In July 1862, they began delivering rifles. MJ&G continued production through October 1864, producing 2,239 military rifles. A thousand miles away in Minneapolis, Junius Mendenhall faced far different circumstances. He needed a new partner. The war was driving money out of circulation just as business was picking up. And most of the banks authorized to issue paper money under Minnesota?s new banking law had failed or were in trouble. Rufus Judd Baldwin, one of the three Minneapolis bankers, became Mendenhall?s partner. A New Yorker and attorney, Baldwin came to Minnesota in 1857. Like Mendenhall, he first worked as a surveyor. He then opened a private bank in Minneapolis at the Cataract House, a new hotel located on the corner of Washington and Sixth Avenues. Minnesota passed a state banking law in 1858 to alleviate the lack of sound currency by chartering note-issuing banks. All but two of them backed their currency with Minnesota State Railroad bonds. At first the State accepted these bonds to secure the banks? currency at 95% of face value. After all, reasoned the State, how could it not accept its own bonds as collateral? Shortly thereafter, the ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 261 In 1862, Junius Mendenhall issued a scrip note for 5 cents (Author?s collection) State Bank of Minnesota $5 note issued Sept. 1, 1862 and signed by Junius Mendenhall and Rufus Baldwin (Minnesota Historical Society) marketplace valued them at 50%. As the bonds fell, so too did the value of the so-called ?railroad bank? notes. Of sixteen banks organized, in just one year nine failed and others tottered. As the St. Paul Pioneer and Democrat opined on Dec. 9, 1858: ?we doubt if any one would be foolish enough to expect currency to circulate based on such security as (Minnesota railroad bonds). We warn the people of Minnesota against it, if they do not wish to suffer the evils of a depreciated and dangerous currency.? In the midst of this calamity, Mendenhall and Baldwin looked for opportunity. Mindful of his brother?s success with the Farmers Bank, no doubt Junius Mendenhall shared the story with his new partner. Could they duplicate Cyrus? success by acquiring one of Minnesota?s note-issuing banks? The State Bank of Minnesota at Austin was established in 1858 by its sole shareholder, Albert L. Pritchard, with capital of just $25,000. It was one of two banks that backed its currency with Ohio State 6% bonds instead of the depreciating Minnesota railroad bonds. The Ohio bonds traded in New York at full face value or better. It had issued bank notes since April 9, 1859. Pritchard was a New York attorney, financier, railroad executive and land speculator who came to Watertown, Wisconsin in 1845. He advertised 400 Watertown lots for sale in 1854, the same year he founded the Bank of Watertown. That institution lasted for over 100 years. Pritchard probably started the Austin bank expecting a railroad to reach the town and spark a boom. In 1858, the Minneapolis & Cedar Valley Railroad cut a grade to Austin?s county of Mower. After that? nothing. Short of capital, the railroad could not even pay interest on its debt. The State foreclosed on them and attempts to reinvigorate the railroad failed. Pritchard sought to relocate his bank to the more promising town of Rochester. On March 16, 1860 the State authorized the move. But it never happened. Instead, it seems that Mendenhall and Baldwin offered to buy the bank from Pritchard. However, they needed to again amend the law to change the bank?s relocation from Rochester to Minneapolis. Perhaps Rufus Baldwin?s 1860 election to the Minnesota State Senate helped get the law changed. On March 6, 1861, the legislature authorized the State Bank to move to Minneapolis. There were two conditions: The bank was prohibited from using Minnesota State Railroad bonds as collateral, and it had to change the name on its bank note printing plates from ?Austin? to ?Minneapolis?. The Little Bank that Could In August 1862, the State Bank of Minnesota moved about 100 miles north to Minneapolis. Mendenhall and Baldwin each put up half of the $25,000 capital. Baldwin contributed his private bank assets to the business. Mendenhall became president and Baldwin cashier. When the State Bank reopened a few months later, just two chartered banks were still active in the entire state. Before the bank opened, Junius Mendenhall had other urgent business. The lack of coinage due to the Civil War had crippled business. In January 1862, he issued five-cent scrip under the name R. J. Mendenhall. The notes, lithographed by B. F. Corlies & Macy, were decorated with hunting scenes and overprinted with a green lace security print. They were ?Redeemable in Currency when presented in sums of Five Dollars and Upwards? at Mendenhall?s banking house. He must have honored them, since not one issued note is reported to survive. In April of 1862, Junius was elected Treasurer of the City of Minneapolis. Immediately he took steps to address the lack of coins by persuading the town council to issue fractional scrip. Dated Aug. 1, 1862, the notes were signed by city council President S. H. Mattison and town clerk S. A. Savory. Mendenhall personally endorsed the back of each note. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 262 Civil War scrip issued by Quaker grocer O. M. Laraway payable at the bank of R. J. Mendenhall with Quaker date ?1st.10th.Mo.? (Heritage Auctions). The Union troop transport Massasoit docked at Elizabeth City Aug. 24, 1863 (Library of Congress) Junius Mendenhall as city treasurer endorsed the backs of these Minneapolis city scrip notes. (Heritage Auctions). On Aug. 24, 1863, Union sailors ransacked the Farmers Bank of Elizabeth City, taking armloads of notes. This remainder likely was forged by a 103rd Pennsylvania Infantryman. That Mendenhall continued to operate his real estate and private bank after buying the State Bank is attested to by scrip notes of O. M. (Orlo Melvin) Laraway. Laraway was a Quaker grocer located on Bridge Square by Mendenhall?s office. The scrip, in denominations of 5, 10 and 15 cents was dated ?1st 10th Mo. 1862? in the Quaker style, meaning the first day of October 1862, and payable at R. J. Mendenhall. Like Mendenhall?s 5-cent scrip, Corlies & Macy printed the notes. Five years later Laraway became city treasurer. The State Bank of Minnesota under Mendenhall and Baldwin soon became the largest bank in Minneapolis, with $34,229 of its notes in circulation. In 1863, Mendenhall moved the bank into the city?s first permanent bank building at the corner of First Street and Bridge Square. A two-story structure clad in blue limestone, it had masonry vaults fitted with the most massive and impregnable safes in the city. It became known as the ?Mendenhall bank building? and occupied that corner until 1879. Meanwhile, down in North Carolina Cyrus Mendenhall struggled with the changing fortunes of the Confederacy. A top priority of the Union was to cut off Confederate trade with Europe. In September of 1861, Gen. Ambrose Burnside launched a naval assault. He blocked more than 80% North Carolina?s coast for the rest of the war. On Feb. 10, 1862, Burnside seized Elizabeth City. Cut off from its parent in Greensboro, the Elizabeth City bank still kept its doors open during the war. Communication between it and Greensboro must have been difficult, but possible. Cyrus Mendenhall continued to honor notes from the branch whenever presented at his Greensboro office. On August 24, 1863, a few hundred of the 103rd Regiment of Pennsylvania Volunteer Infantry arrived in Elizabeth City aboard the transport steamer Massasoit. Some sailors disembarked and paid a visit to the Farmers Bank. What happened next was recalled by one of the soldiers, Luther S. Dickey: ?A large quantity of bank-notes, both signed and unsigned, were confiscated by the sailors and lavishly distributed to the soldiers. These notes were finely executed in both design and engraving. It was an easy matter to palm them off on the illiterate, white and black, in districts first invaded by the Federal troops. The garrison at Plymouth (NC), for a time, found foraging made easier by using this spurious money. The parties robbed would catch their chickens for the ?Yanks,? while the latter stood quietly by.? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 263 After learning of old notes stolen from the Elizabeth City branch of the Farmers Bank, Cyrus Mendenhall alerted the public ( A slave named Charles fled the MJ&G gun manufactory to find freedom during the war ( During a 3-day stay in the neighboring town of Tarboro, ?men (who) were fortunate enough to have the Elizabeth City Bank money found ample opportunity to use it here with advantage.? The news reached Greensboro weeks later. Horrified at the fraud, Cyrus Mendenhall had warnings printed in various newspapers to alert the public. Cyrus Mendenhall had other problems. Stymied by a lack of parts, he expanded his MJ&G rifle business to include selling merchandise from blockade-runners in Charleston, South Carolina. A July 1862 MJ&G ad specified payment in cash, ?Confederate Money Preferred?. After Lincoln enacted the Emancipation Proclamation on Jan. 1, 1863, the number of slaves escaping from the Confederacy surged. The labor shortage caused the MJ&G gun manufactory to use skilled slaves, as evidenced by an advertisement offering a $100 reward for the return of Charles, a 23-year-old blacksmith. The Confederacy lacked funds to build and maintain a fleet of blockade-runners. It called upon each state to establish a private navy, funded by patriotic entrepreneurs. On Jan. 1, 1864, the North Carolina Volunteer Navy Company was organized, with Cyrus Mendenhall as president. They raised $1 million in capital and sent an agent abroad to purchase a suitable vessel. But the war was turning against them; the Volunteer Navy never sailed. Battles raging across Virginia were yielding huge casualties. Entire regiments were wiped out. When the first train from the newly completed Danville, Virginia line arrived in Greensboro on May 21, 1864, it was filled with Yankee prisoners, wounded soldiers, refugees and Confederate troops. Many more such trainloads of human cargo would soon reach Greensboro. Cyrus Mendenhall?s businesses were struggling. In June, he put up for sale 360 acres of orchards containing 1,200 fruit trees. In December 1864, MJ&G was dissolved and its gun manufacturing equipment auctioned off. That same month the ladies of the Note Signing Bureau of the Confederate Treasury boarded a train in Columbia, South Carolina and arrived in Greensboro in the middle of the night. Freight deliveries to the army sank to a crisis level. Goods to fill 150 rail cars sat in Greensboro awaiting shipment to General Lee?s army while his soldiers starved. On April 9, 1865, Gen. Lee surrendered the Army of North Virginia. Two days later the entire Confederate leadership, led by Jeff Davis, arrived in Greensboro by rail. They found the town filled with wounded soldiers. In the courthouse alone ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 264 In 1865, Guilford County printed bonds on the backs of remainder sheets of notes from Cyrus Mendenhall?s bank. In 1865, Cyrus Mendenhall became a director of the Raleigh National Bank. Its founder and president was infamous swindler George W. Swepson. (Author?s collection) about 200 wounded were laid in rows on the bare floor with no bedding of any kind. The Confederate treasury, as well as the state treasuries of Virginia and North Carolina, were loaded onto rail cars destined for Greensboro. Story has it that millions of dollars worth of Confederate silver and gold were secretly buried along the railroad tracks. There is documentation that almost $100,000 in Confederate gold was found and taken by an Ohio cavalry unit. Union forces under General Sherman bore down on Greensboro. On April 14, Lincoln was fatally wounded at Ford?s Theater in Washington. The next day Pres. Jefferson Davis fled Greensboro for parts south. On April 26, General Johnson?s Army of Tennessee surrendered and Guilford County collapsed in chaos. Soldiers, deserters, prisoners, criminals and civilians, all hungry and desperate, roamed the countryside to take whatever they could. Mobs plundered the Confederacy?s Greensboro warehouses. Cyrus Mendenhall?s bank was in poor shape. Confederate currency was worthless, most loans were uncollectable and the collateral for others were impaired. Cyrus struggled to keep his bank afloat, redeeming its notes at less than 50 cents on the dollar. In the midst of financial distress, Guilford County needed to raise money by selling bonds. Yet it lacked even the paper to print them. Cyrus Mendenhall supplied it with sheets of his unused $3-$4-$5-$10 Greensboro bank notes. $100 bonds and coupons were printed on the blank backs of the sheets and issued. Today they are sometimes described as sheets of notes printed on the backs of city bonds, but in fact, the reverse was the case. During the war, the Union had created the National Bank system and was taxing privately issued bank notes at 10%. Reading the writing on the wall, Cyrus Mendenhall helped found, and became a director of, the second National Bank in the state. The Raleigh National Bank of North Carolina was authorized to commence business on Sept. 12, 1865. George W. Swepson, its largest shareholder, was president. A month later, the fate of his Farmer?s Bank was sealed. North Carolina had soaked up $8.4 million, about one third of all the state banks? capital, through the sale of war bonds. In October, the State repudiated its debt, including $4 million in unpaid interest. Every bank in the state was forced into liquidation. In June of 1866, bank notes of the Farmers Bank were trading at an 85% discount. Nine months later cashier W. A. Caldwell announced the bank was being sold at auction. In July 1867 a notice in the Elizabeth City newspaper advertised that the Farmers Bank branch had been converted into a ?Bar and Liquor House? called ?The Shades?. The Civil War was kinder to Junius Mendenhall. His State Bank of Minnesota came through the war financially stable and growing. In December of 1865, they reorganized as the State National Bank of Minneapolis with charter number 1623 and capital of $100,000. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 265 The State Bank of Minnesota became the State National Bank. This #1 note is signed by Rufus Baldwin and Junius Mendenhall (author?s collection). That same month Mendenhall, Baldwin and their bookkeeper, Thomas A. Merphy, formed a new enterprise, the State Saving Association. Junius Mendenhall was its president and each partner owned a third of the business. Over the next five years, Junius busied himself elsewhere. He was secretary and treasurer of the Minneapolis Board of Education from 1868 to 1875. In 1869, the city named the new Mendenhall public school in his honor. He helped organize the Minneapolis Street Railway, the Minneapolis and St. Louis Railway and the Minneapolis Gas Company. He did many real estate transactions and helped develop the new town of Fergus Falls, Minnesota. With partner George B. Wright, he bought land along the Otter Tail River, where they sold lots and built the first sawmill, dam and bridge. Like Cyrus, Junius had a deep love of floriculture. On the spacious grounds adjoining his Minneapolis mansion on Stevens avenue he built extensive greenhouses to raise and sell a wide variety of flowers and plants. As Junius spent less time in the bank, in 1870 he and Rufus Baldwin decided to part company. Baldwin would move the State National and run it under his ?especial control?. Mendenhall would remain at the existing ?Mendenhall Bank Building? at Bridge Square, re-open his private bank and take over the State Savings Association. On January 7, 1871 The Minneapolis Tribune reported the relocation of the State National Bank to its new home in the Nicollet House, at the corner of Washington Avenue and Nicollet Street. The net effect of the separation, as noted in the story, was to create another bank for the city, since Mendenhall continued his private bank at the old location. Ads for the State National featured Baldwin?s name in large bold type. Mendenhall advertised his private bank and sold Northern Pacific Railroad bonds for the New York firm of Jay Cooke & Co. On April 9, 1873, Mendenhall formally resigned as president of the State National Bank. Thomas Asbury Harrison, vice-president and a shareholder in the First National Bank of St. Paul, became the bank?s new president. Asbury Harrison became involved with the bank more or less by accident. He lent a shareholder (probably Junius Mendenhall) money and accepted stock in the State National Bank as collateral. After meeting some shareholders and directors, he was asked to become its president. When Harrison dug into the details of the bank?s financial condition, he was surprised to find it weak. As J. Wesley Hill wrote of Harrison in a biographical sketch, ?After spending several sleepless nights over the sad condition of things, the first night after making up his mind to pay every creditor in full if it took all he had to do it, he slept as sweetly as a child. This episode cost him several years of anxious toil.? Harrison invested considerable capital in the bank to restore its health. This occurred at just the right moment. When Jay Cooke & Company?s bank failed on September 18, 1873, it popped a speculative bubble in railroads. It?s doubtful the State National Bank would have survived without Harrison?s help. Unfortunately for Junius Mendenhall, the Panic of 1873 landed on him like a ton of bricks. Perhaps owing in part to his relationship with Jay Cooke & Co. and his advertisements for Northern Pacific Rail Road bonds, On Oct. 1 there was a run on his private bank and savings association. He ran out of cash and was forced to suspend both businesses. The cash Mendenhall paid out included $34,531 entrusted to him by the Minneapolis Board of Education. He quickly assured everyone that he had a surplus of assets backing the deposits. As he sold them, everyone would be paid in full. His assurances were met with skepticism. As it turned out, the State Savings Association was started by Mendenhall, Baldwin and Merphy with no capital paid in whatsoever, despite advertising a capitalization of $25,000. Moreover, no shares were ever issued to the owners. And as to the trustees it proudly advertised, none of them ever actually acted in that capacity. Deposits into the savings association were re- deposited in the State National Bank. When Mendenhall and Baldwin split up in 1871, the savings association?s assets went to Mendenhall?s private bank. The 600 depositors of the State Savings Association were owed $117,000. A court ruled that Junius Mendenhall was personally liable for all of it, in addition to the liabilities of his private bank. It was a bad time for him to try to liquidate his ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 266 Junius Mendenhall named his Minneapolis mansion ?Guilford Place? in honor of his childhood home. Behind it were acres of greenhouses. investments; the panic dried up cash and depressed real estate values. Mendenhall spent the next five years fending off lawsuits and selling assets. By 1877, he still owed the Board of Education over $7,000. On May 16, 1878, he filed for bankruptcy, listing liabilities of $118,042. Meanwhile Asbury Harrison planned to transform the State National Bank. On July 5, 1877, Rufus Baldwin resigned as cashier. Harrison replaced him with associate Joseph Dean. On December 31, 1877, the State National Bank closed and opened the next day as the Security Bank of Minnesota in a new building at Hennepin Avenue and Third Street. Capital tripled to $300,000. Asbury Harrison was its president and his older brother, Hugh G. Harrison, was vice president. Joseph Dean continued as cashier. The Security Bank later obtained a federal charter as the Security National Bank. In 1915, it merged with the First National Bank of Minneapolis to become the First and Security National Bank. It was the largest bank in the U.S. west of Chicago. Shortening its name to First National Bank, in the 1920s it gobbled up local banks and converted them to branches. In 1929, it became a holding company, the First Bank Stock Corporation, with 35 banks in Minnesota and surrounding states. More acquisitions followed and in 1997, it became U.S. Bancorp, also known as US Bank. Although Junius Mendenhall lost his bank and most of his fortune, he spent the rest of his life rehabilitating his reputation. He paid off most of his debts and continued to deal in real estate through R. J. Mendenhall & Co. His love of horticulture led him to become the first florist in Minneapolis, with a greenhouse covering two full blocks on Stevens Ave. between 18th and 19th streets (today across from Stevens Square Park). He said he could not bear to sell his flowers, preferring to give them away. First and foremost, to his last day Junius remained true to his faith. On Dec. 31 1902, the Minneapolis Journal published excerpts from a presentation Junius gave at the Friends meeting house. He proudly spoke of the Quaker?s stand against slavery: ?More important than the opposition of all Friends to war, more important than their work for the Indian, had been their influence against slavery? The Manumission society was established by Friends in North Carolina in 1816, chiefly through the efforts of Charles Osborn. This North Carolina Friend was the first man in America to proclaim the doctrine of immediate and unconditional emancipation.? When Junius Mendenhall passed away on Oct. 19, 1906, he was praised as a pioneer banker, horticulturalist, and advocate for education. What became of his older brother, Cyrus? Like his brother, he lost his bank but not his will to succeed. He converted the shuttered MJ&G rifle factory into the Oakdale Cotton Mill. As of 1867, he still served on the board of directors of the North Carolina Rail Road. He resumed his West Green Nursery and Gardens, selling fruit and ornamental trees, shrubs and plants. He tried becoming a merchant broker, but seems not to have succeeded. In the fall of 1865, he formed a business with the president of the Raleigh National Bank, George W. Swepson. Swepson, Mendenhall & Co., was a commission broker of cotton, tobacco and other southern agricultural products with an office run by Swepson?s brother, R. R. Swepson, at 79 Pearl Street in New York City. Apparently, the business came to nothing, as they dissolved it in April 1866. It was just as well. Two years later Swepson and a New Yorker named Milton S. Littlefield defrauded North Carolina of $4 million by issuing fraudulent railroad bonds. Littlefield, who became known as the ?Prince of Carpetbaggers?, and Swepson perpetrated one of Richard Junius Mendenhall ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 267 the most spectacular swindles in the state?s history. There was even a word created for him, ?swepsonize?, to signify whatever evil was current. Swepson never was convicted of any crime for his great fraud, which historians have attributed to his ability to buy off officials. Swepson reportedly bribed state legislators by giving them ?trouble free? loans through the Raleigh National Bank. Cyrus remained immensely popular in Greensboro, again elected mayor 1874. In 1880, he was a judge of the U.S. Circuit Court in the western district of North Carolina. He also helped found, and was president of, the Greensboro Female College (today Greensboro College). On June 21, 1883, the Greensboro North State newspaper reported that Cyrus was quite ill and staying at home. On July 6th of the following year, he passed away at 68. After the Civil War, did Cyrus and Junius reconcile their differences over slavery? It is known that Junius made several trips back to North Carolina to visit his family in the years after the war. Perhaps the brothers met to discuss their mutual love of horticulture? Perhaps the abolition of slavery brought closure to the differences between the brothers? We may never know. Sources Atwater, Isaac, History of the City of Minneapolis, Vol. 2, Munsell & Company, Publishers, New York, NY 1893 Benedict, Michael Les, The Fruits of Victory: Alternatives in Restoring the Union, 1865-1877. University Press of America, Lanham MD 1986 Browning, Mary A., & Koehler, Patricia M., Oakdale Cotton Mills, Arcadia Publishing, Charleston, NC, 2009. Camp Randall Armory Charles F. and Rhoda M. Coffin Collection, 1831-1919, Curtiss-Wedge, Franklyn, The History of Mower County, Minnesota: Illustrated, H. C. Cooper & Co, Chicago, 1911. Daniel, Forrest W., Endorsed Notes Were Used in Minnesota, Paper Money Magazine, whole #172, July-Aug 1994 pp. 120-124 Deep River Meeting House, National Register of Historic Places, Democratic Pioneer newspaper, Elizabeth City, NC Oct. 16, 1855; Sep. 29, 1859; Nov. 6, 1857; Jul. 6, 1858; Sep. 7, 1858; Sep. 21, 1858; Dec. 12, 1858. Dickey, Luther S., History of the 103d Regiment, Pennsylvania Veteran Volunteer Infantry, 1861-1865, Published by L. S. Dickey, Chicago, 1910 Eliason, Adolph O., The Beginning of Banking in Minnesota, from a presentation made to the ?Executive Council?, May 11, 1908. Library of Congress. Federal Reserve Bank of Minneapolis Quarterly Review, Spring 1988, Rolnick, Arthur J. & Webber, Warren E., Explaining the Demand for Free Bank Notes, p. 21 Fripp, Gayle Hicks, Greensboro: A Chosen Center, American Historical Press, Sun Valley, CA, 2001 Gatton, T. Harry, Encyclopedia of North Carolina, University of North Carolina Press, 2006 Hill, J. Wesley, Twin City Methodism, A History, biographical sketch of Thomas Asbury Harrison, D. D. Price Brothers Publishing, Minneapolis, MN 1895 Hilty, Hiram H., Toward Freedom for All: North Carolina Quakers and Slavery, Friends United Press, Richmond, Indiana 1984 Hofsommer, Don L., The Tootin? Louie: A History of the Minneapolis & St. Louis Railway, University of Minnesota Press, Minneapolis, MN 2005 Hudson, Horace B., A Half Century of Minneapolis, The Hudson Publishing Company, Minneapolis, 1908 Hyde, C. W. G. & Stoddard, Wm, History of the Great Northwest and It?s Men of Progress, The Minneapolis Journal, Minneapolis, 1901 Minnesota, State of, Journal of the House of Representatives, during the 2nd session of the Legislature, 1859/60 Minnesota State Legislature, Journal of the Senate, 2nd session, 1859/60 Minnesota Territorial Pioneers Association, Proceedings and Addresses at the Second Annual Mid-Winter Reunion, Vol. 1. Harrison & Smith, 1899 Obituary of Cyrus Beede published Feb. 1, 1908 in unnamed Oskaloosa, Iowa newspaper Patchin, Sydney A., The Development of Banking in Minnesota, Minnesota History Bulletin, Vol. 2 No. 3, Aug. 1917, pp. 111-168 Portrait & Biographical Album of Mahaska Co., Biography of Cyrus Beede, Iowa, 1887 Shutter, Marion Daniel, Progressive men of Minnesota. The Minneapolis Journal, Minneapolis, MN 1897 Stevens, John H., Personal Recollections of Minnesota and Its People, and Early History of Minneapolis, Minneapolis, MN 1890 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 268 The First National Bank in Arizona Territory by Peter Huntoon and Dawn Teresa Santiago The First National Bank of Tucson was the first national bank organized and chartered in Arizona Territory, events that occurred respectively on January 24 and March 1, 1882. The bank opened April 17, 1882. It was the only bank in the territory to issue Series of 1875 notes and only $5s were issued. The C note in superb gem condition has been discovered from the first sheet sent to the bank as well as to the territory! Jess Lipka reeled in this whale. The Comptroller of the Currency sent a total of 2,120 sheets (8,480 notes) to the bank between March 28, 1882 and January 13, 1885 to maintain its circulation, which topped out at $30,600 during 1883. The bank was liquidated January 31, 1885 to be reorganized as the Bank of Tucson. The signers on the note are Pinckney Randolph Tully president and Barron M. Jacobs cashier. Their personal stories and that of the founding of the bank follow. The First National Bank of Tucson was the outgrowth of two pioneering Tucson mercantile firms, Tully-Ochoa and the Mark I. Jacobs Company, the principals of which joined to organize the Pima County The Paper Column Figure 1. The First National Bank of Tucson was the only bank in the Territory of Arizona to issue Series of 1875 notes. This note is from the first sheet delivered to the bank and territory. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 269 Bank in 1879. They nationalized the bank in 1882, but found it advantageous to relinquish their national charter and to reorganize as the Bank of Tucson in 1885. The information that follows pertaining to Pinckney R. Tully comes from the three websites labeled Tully, Tucson Officeholders and Ochoa. Two scholars have written definitive works on the Jacobs: Gerald Stanley (1971) and Dawn Teresa Santiago (1988), who respectively treated the Jacobs mercantile and banking ventures. Both mined extensive troves of the Jacobs? papers at the Arizona Historical Society (10 boxes) and Special Collections at the University of Arizona Library (22 boxes and 175 volumes of correspondence). The material that follows on the Jacobs? mercantile business is taken from Stanley and that on their banking career from Santiago. The president of The First National Bank was Pinckney Randolph Tully who was born in Mississippi, March 25, 1824. His family struck out to Oregon by wagon train in 1845, but they were forced to abandon their trip because his father died in western Missouri. Tully went on to Santa Fe in 1846 and then to California in 1849. He returned through Arizona where he was attacked by Indians and received a scalp wound. For a time, Tully was a post trader at Fort Thorn, New Mexico Territory, on the west bank of the Rio Grande. From there, he moved on to Mesilla, New Mexico Territory, in 1854 where he developed a partnership with Estevan Ochoa, a merchant and freighter who had stores in Mesilla and Las Cruces. They formed the freighting and mercantile firm of Tully & Ochoa. One of their early business ventures involved having Tully take a large supply train to Tucson in 1858. After the goods sold out in just a few hours, they decided to open stores in Tubac, south of Tucson, and Tucson. Ochoa moved to Tucson in 1860. Their Arizona operations were interrupted by the Civil War, when the commander of a Confederate column that reached Tucson summoned Ochoa to swear allegiance to the Confederacy. This he wouldn?t do. Ochoa was loyal to the Union, having immigrated from Chihuahua to the United States after the Mexican-American War. He was given a horse, a rifle, 20 rounds of ammunition and sent packing back to the Rio Grande through hostile Indian country. Following the war, Tully & Ochoa reopened a store in Tucson in 1866. They secured a number of lucrative government contracts supplying Indian reservations and military outposts. Their freighting business became highly regarded because they brought goods to Arizona and New Mexico from as far away as Kansas City, Missouri. The firm's armed convoys, which frequently had to fight off Apache attacks, became a primary link during the 1860s and 1870s between Tucson and the outside world. The firm also operated a stagecoach line between Yuma and Santa Fe. The freighting business collapsed with the arrival of the railroad to Tucson in 1880. Tully served as mayor of Tucson during 1882 while The First National Bank was being founded and remained on the city council during 1883-4 while it was in operation. The story of the Mark I. Jacobs Company began in San Diego where Polish immigrant Mark Israel Jacobs, who was born in 1816, established himself in the United States in 1851 in a general merchandise Figure 2. Pinckney R. Tully from the mercantile and freighting firm Ochoa & Tully was installed as president of The First National Bank of Tucson. He was serving as mayor of Tucson at the time. Photo from Sonnichson (1982, p. 94). ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 270 business. He was drawn to the states by the allure of the gold rush. He moved his family to San Bernardino in 1857 where he operated a store and hotel. When he learned that the Arizona territorial capital was to be moved from Prescott to Tucson on November 1, 1867, he saw opportunity in the government and military payrolls that would stimulate the economy of the town. He sent two of his sons, Lionel M. and Barron M. with a wagon load of merchandise to establish a mercantile business there, a trip that took two months. Lionel and Barron were in their twenties at the time, with Lionel being the older. What they found on their arrival was a town of about 1,300 people, three quarters of which were Mexican- Americans, living mostly in one-story flat-roofed adobe buildings scattered along dusty streets on the east bank of the Santa Cruz River. They rented an empty store on the corner of Main and Mesilla streets, set up the Mark I. Jacobs Co. and began to scrape together a financial empire from the dust. Mark moved his remaining family to San Francisco in 1868. There he purchased supplies, arranged for their transport to Tucson, and the sons sent remittances for more. The logistics were daunting. The routine that developed was for Mark to purchase 10 to 15 tons of supplies about every two months. The cargo was loaded onto a steamer bound for Yuma, Arizona, which is located upstream from the mouth of the Colorado River. The material had to be offloaded onto a flat-bottom river steamer at the mouth of the river and transported upriver to Yuma. At Yuma, the load was transferred to freight wagons bound for Tucson along the Gila road. Transit times ranged from two to three months. They tested an alternate route between 1872 and 1874 using the port at Guaymas, Mexico, with overland haulage northward through Hermosillo and the border crossing at Nogales, Arizona. This added a hundred miles to the overland part of the trip but it cut a month in transit time and was cheaper. However, customs issues developed and that avenue was abandoned. The Tucson merchants seldom had cash sales equal to more than a third of their gross sales. Instead they bartered their goods for stables such as wheat, flour and cattle that they sold to military posts thereby compounding their profits. Tucson was without a formal bank, so it was natural for the Jacobs brothers to enter into the exchange and bullion business, which they did in February 1870. They purchased Figure 3. Mark I. Jacobs, the San Francisco patriarch of the Jacobs family, shipped goods and capital to his sons Lionel and Barron who established and operated the Mark I. Jacobs Company in Tucson, Arizona Territory. Their enterprise developed into a banking business that gave rise to The First National Bank of Tucson. Photo from University of Arizona Southwestern Jewish Archives. Figure 4. Lionel M. Jacobs was the eldest of the Jacobs brothers who were the principals in organizing The First National Bank of Tucson. Photo from University of Arizona Southwestern Jewish Archives. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 271 greenbacks in Tucson at 65 to 85 cents on the gold dollar, whereas Mark in San Francisco could sell them for 86.5 to 89 cents. At the time, they were turning $100 to $250 per week. By the fall of 1870 they renamed their Tucson business Mark I. Jacobs & Company, Money, Bullion and Exchange Brokers. By December they ventured into making short term loans at 3% per month. 1872 found them dealing in Mexican gold and silver coin, which circulated in Arizona, particularly in the outlying mining districts. In 1875 the brothers bought out their father and renamed their Tucson firm L. M. Jacobs & Company. They increasingly learned and took on additional banking functions, including making collections for creditors and providing for the safe deposit of customer?s papers and valuables. The economic prospects and population growth for Tucson brightened as the Southern Pacific Railroad approached from the west, reaching Yuma in 1877 and silver was discovered in what became Tombstone with Tucson serving as the supply center. The first formal bank in the territory, The Bank of Arizona, was opened in Prescott that year by Martin Kales and Solomon Lewis. On December 24, 1878, along with other stockholders, the Jacobs who held a majority interest filed the articles of incorporation for the Pima County Bank, and the bank opened January 1, 1879 with Lionel as cashier. Pinckney Tully, co-owner of the prosperous mercantile-freighting firm of Tully & Ochoa, was brought in during January 1880 and elected president, with Lionel vice- president and Barron cashier. The railroad arrived in Tucson that spring, which was good for the export of cattle and crops. The bankers next established a branch in Tombstone called Agency of the Pima County Bank. At this point the Jacobs were fully committed to the banking business, so they liquidated their mercantile firm and sold the last of its assets in May 1880. The early 1880s were golden for the southern Arizona economy. Production at the Tombstone silver mines was peaking, and agricultural and business was growing. The Jacobs decided to nationalize the Pima County Bank, which they accomplished in early 1882. The First National Bank was capitalized at $100,000. A big incentive for doing so was that it would facilitate getting the bank qualified as a Federal Depository, so that it could handle all the government and military transactions in the territory. Although the Jacobs retained majority ownership, they spun off and reorganized their Tombstone agency as the Cochise County Bank. By 1883 Lionel focused his energy on managing the Tombstone bank whereas Barron managed the Tucson operation. Silver prices continued to decline through the early 1880s. Passage of the Bland-Allison Act in 1878, which obligated the Treasury to purchase between $2 and $4 million worth of silver per month for coinage, failed to stabilize silver prices owing to overproduction throughout the west. Worse for Tucson, the silver mines in Tombstone began to flood as the miners dug ever deeper below the water table. As the mines began to close and the economy soured, a competing private bank, Hudson & Company with main office in Tucson and branch in Tombstone, failed May 9, 1884. Deposits flowed out of The First National Bank and Cochise County Bank. After Hudson & Company failed, a man named David Henderson set himself up as D. Henderson, Banker, in Tucson, in the belief that Tucson could still support a second bank. This competitor opened November 17, 1884. Previously Henderson and his brother had operated a mercantile store in Prescott in the late 1870s, which they moved to the silver mining town of Globe. Downsizing of The First National Bank was imperative, so the Jacobs liquidated the bank January 31, 1885, and reorganized as the Bank of Tucson, with half the capital of the former. Barron continued to manage the Tucson bank whereas Lionel supervised the Tombstone bank. Barron was a more cautious Figure 5. Barron M. Jacobs served as cashier of The First National Bank of Tucson, the key management position in the bank. Photo from Arizona Historical Society. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 272 individual than his brother and operated the Bank of Tucson very conservatively, resulting in flat to slow growth. In contrast Lionel employed an aggressive manager named Albert Springer who cultivated business with the copper interests in Bisbee and Sonora, Mexico, and cattlemen throughout southeastern Arizona. By diversifying, he caused the fortunes of the Cochise County Bank to rebound. The First National Bank of Tucson was history, but not the involvement of the Jacobs brothers in national banking. The Henderson of D. Henderson, Banker, sold a share of his bank to former Tucson postmaster Merrill P. Freeman in 1886 so he could pursue other opportunities. Freeman sensed that both Henderson and the Jacobs were casting beyond banking or at least beyond banking in Tucson, so he proposed that they merge the Bank of Tucson and D. Henderson, Banker. Thus, the Consolidated Bank of Tucson was born and opened June 23, 1887. Barron Jacobs was named president, Henderson vice-president and Freeman cashier. Henderson filed incorporation papers for the bank on April 15, 1888, effective April 2nd. The story gets a bit complex over the next couple of years. Concurrently Lionel Jacobs and Henderson had organized The San Diego National Bank, charter 3780, on July 29, 1887. Lionel set up residency in San Diego at the Horton House on D Street between 3rd and 4th streets, whereas the bank was on the northeast corner of 5th and H. Lionel served as operations manager in the capacity of cashier and Henderson held the presidency. Unfortunately for Lionel, his right-hand man Albert Springer had moved on from the Cochise County Bank in Tombstone and banking prospects there continued to diminish as the economy of Tombstone withered. The Consolidated merger joined the Jacobs and Henderson under one umbrella in Tucson, each carrying imposing personalities to the venture along with Freeman who was developing into a very able banker in his own right. Differences in personal styles were inevitable that caused internal friction. In time Freeman?s loyalties more closely aligned with the Jacobs than with Henderson. The San Diego bank did not last long, because the economy in San Diego at that time was on the brink of collapse. The bank was liquidated on November 7, 1888, after barely over a year in business. Lionel moved to San Francisco. In Tucson, Freeman became seriously ill in late 1888 and moved to San Francisco to recover. Henderson approached him in January 1889 with the proposition that he buyout Henderson?s interest in the Consolidated Bank. Freeman demurred, so instead Henderson emerged as cashier of the Consolidated Bank in February 1889. In June 1889, it was announced in the press that Henderson sold his interest in the Consolidated to Lionel Jacobs, whereupon Lionel returned to Tucson to become cashier. Lionel simultaneously liquidated the Cochise County Bank in Tombstone, possibly to raise some of the money to buy Henderson?s interest, but more likely to put the money from the Tombstone bank to better use. In the meantime, Merrill Freeman was regaining his health in San Francisco and he pulled together a group of investors to organize another bank in Tucson. One was Samuel Hughes, a prominent Tucsonan and former stockholder in The First National Bank. Their bank was called The Santa Cruz Valley Bank and it opened August 1, 1889. Hughes served as president and Freeman returned to Tucson as cashier to run it. In a surprising upset, Henderson bought out the Jacobs? interest in the Consolidated Bank and installed himself as president in March 1890. He quickly applied for a national charter, which was granted April 15, 1890, giving rise to The Consolidated National Bank of Tucson, charter 4287. The Consolidated National Bank formally opened April 19th. Once out of The Consolidated Bank, the Jacobs bought control of Freeman?s Santa Cruz Valley Bank in May of 1890, wherein Barron Jacobs replaced Hughes as president, Hughes became vice president and Freeman remained cashier. The next step was for them to nationalize, which they did on October 10, 1890 under the title The Arizona National Bank of Tucson, charter 4440. The new bank opened with its national title on October 30th. The Consolidated National under Henderson was the larger, but The Arizona National under the Jacobs carried their cachet and prospered. Henderson was gone as president of the Consolidated in 1891, ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 273 having been replaced by H. E. Lacy. Lionel Jacobs replaced Freeman as cashier of The Arizona National in 1896. Lionel and Barron retired from active banking in 1912. Lionel was 72 and Barron 66. Lionel died February 7, 1922 and Baron November 15, 1936. Pinckney Tully died November 10, 1903 at age 79. Ultimately, The Arizona National Bank was merged into The Consolidated National Bank on August 4, 1928. The convoluted history of early Tucson banking as viewed through the prism of these men reveals the fluidity of corporate structures and shifting personal alliances that such entrepreneurs use as they claw their way to wealth. These are not sentimental types. To understand the path that each pursued, all you have to do is follow the money, or more correctly, follow the opportunities that their money sought in an ever- changing financial environment. Lipka?s note is beyond remarkable. It is so perfect and fresh, even the most finicky type collector would classify it as a superior specimen for its type. Four of these $5s have been reported. I owned the 1-D note, the cut of which perfectly matches the bottom of Lipka?s note. Mine had been carried as a pocket piece in the wallet of one of the bankers for a long time so it has strong creases and wear commensurate with that fate. Amon Carter owned the 2-D note, a pressed vf, and Dewitt Prather owned 1013-A, an off unc with the upper right corner tip missing. Clearly and thankfully the bankers saved these notes. The numismatic importance of Lipka?s note cannot be overstated. It is the finest survivor of its type and it is from the very first sheet issued in the Territory of Arizona. It probably ranks in the top 10 of all nationals, and for certain would make anyone?s top 20 list based on its condition, location and type. References Cited and Sources of Data Ochoa: Santiago, Dawn Teresa, 1988, The banking operations of Lionel and Barron Jacobs in Tucson, Arizona, 1867-1913: University of Arizona Department of History Master of Arts thesis, 187 p. Sonnichson, Charles L., 1982, Tucson, the life and times of an American city: University of Oklahoma Press, 369 p. Stanley, Gerald, April 1971, Merchandising in the southwest, the Mark I. Jacobs Company of Tucson, 1867 to 1875: American Jewish Archives, v. 23, p. 86-102. Tully: Tucson Officeholders: ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 274 Service Awards in KC The International Paper Money Show (IPMS) is not only about buying and selling currency, but is also a time for the society (and other societies) to recognize and reward members for outstanding service, literary awards and excellence in exhibiting. (All photos courtesy of John and Nancy Wilson) President?s?Awards?recipients?Robert?Moon,?Robert?Vandevender?and? Wendell?Wolka? Robert?Calderman?was?awarded?the?Nathan? Goldstein?Recruitment?award?for?being?the? top?recruiter?for?the?Society.? Mark Anderson along with Russell Kaye and Dennis Schaflutzel were awarded the ERO award for their work on the Obsolete Database Clifford Mishler was awarded the SPMC?s highest honor, the Nathan Gold Award for long-term service to the Society Peter Huntoon accepted the Founders Award on behalf of Andrew Pollock Mark Anderson announces the 2019 HoF class Welcome?to?the?2019? Hall?of?Fame?Class!? F.?C.?C.?Boyd? Lyn?Knight? J.?Roy?Pennell? Austin?Sheheen? George?Wait? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 275 Literary and Exhibit Awards in KC Awards were also given out for literary excellence, top articles in different categories (voted on by the membership via the web), book of the year and for excellence in exhibiting. Book of the Year (Wismer Award) Obsolete Paper Money: A Guide with Prices Don Kelly Favorite Column Uncoupled?Joe Boling & Fred Schwann Runner Up?Obsolete Corner?Robert Gill Articles appearing in PM in 2018 Large/Small Size?Doug Murray, Lee Lofthus, Peter Huntoon World?Carlson Chambliss Runner up?Lee Lofthus Runner Up?Carlson Chambliss Federal (Misc).?Rick Melamed Obsoletes?Shawn Hewitt Runner up?Rick Melamed Runner Up?Ronald Speiker Nationals?Shawn Hewitt, Peter Huntoon Confederate?Michael McNeil Runner up?Frank Clark Runner Up?(tie) Charles Derby, Steve Feller Exhibit Awards Stephen R. Taylor Best in Show?Robert Moon Runner Up?Terry Bryan Julian Blanchard Award?Jerry Fochtman Best one-case exhibit?Jerry Fochtman World Paper Money?-Gary Dobbins Federal Issues?Jerry Fochtman Non Federal Issues?Terry Bryan National Banknotes?Robert Moon Related Fiscal Items?John Parker Thanks to all of our other exhibitors??Robert R. Moon, Frank E. Clark III, Robert and Beverly Gill, Michael and Danielle Dougherty, Joseph Ridder, Steve Sweeney, Roger Urce, John and Nancy Wilson, Jerry Fochtman, Robert Calderman, Bill Brandimore, John Parker, John Grost and Cristina Cruz-Grost, Tim O?Keefe, Michael McNeil, Gary Dobbins, Terry Bryan, Neil Shafer Obsolete Database Awards State Collection?(tie) Bill Gunther, Shawn Hewitt Type Collection?Benny Bolin Jerry Fochtman receiving one of his THREE exhibit awards! Favorite Columnist Joe Boling & Fred Schwann (not in attendance)Confederate Author Michael McNeil Jerry Fochtman receiving his Best of Show Exhibit Award, ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 276 SPMC Breakfast & Tom Bain Raffle The SPMC held its annual breakfast and Tom Bain Raffle on Friday morning of the show. Due to the popularity of the venue last year, we again held it at Harvey?s in Union Station. We were assured that the acoustics problem was fixed, but alas, it was not. We do have a fix in for next year! After the breakfast always entertaining emcee Wendell Wolka held the audience in rapt anticipation waiting for their number to be called for the great prizes offered. He had a very special prize courtesy of Tom Denly; one quart of First Run Massachusetts Maple Syrup. Given TSA requirements, Tom wisely left the prize at home to be mailed later. He not so wisely entrusted the certificate to claim this raffle prize with Raffle Host Wendell Wolka who, in the frenzy of raffle activities, completely spaced on the fact that he had to draw a number for said prize but had not! After the event, Wendell unilaterally awarded the prize to an attendee who had previously publicly expressed her great love of the "golden elixir of the gods which has no match any place on earth!" (ed. Note?all his words, not mine!) (all photos courtesy of John and Nancy Wilson). The ticket for the event featured a commemorative likeness of Peter Huntoon. Peter seemed to be happy with the design. As the great KarWolka calls the last prize, helper Dobbins tries to remind him of the Denly elixir prize to no avail. Table full of raffle prizes. I won the red box of books even though I was in Italy! Emcee Wolka and helpers Dobbins and Musk pick numbers and award prized. Bruce Smart donated the BIG prize of the raffle, an Unc. 1899 $1 FRBN on Kansas City. The Society extends its great gratitude to Mr. Smart for such a wonderful donation. Thanks to all of our Raffle donors?Mark Anderson, Fred and Doris Bart, Frank Clark (Heritage), Gary Dobbins, Donna Love, Fred Maples, Bob Moon, Dean Oaks, John Parker, Lee Quast, John Schwartz, Hugh Shull, Bruce Smart, John and Nancy Wilson, Wendell Wolka and to anyone I left off, I sincerely apologize. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 277 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: - support@lynknight.c om Whether you?re buying or selling, visit our website: 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 U n c o u p l e d : Paper Money?s Odd Couple Joseph E. Boling Fred Schwan World War I (part 5) Last issue we talked about WWI emergency issues and counterfeits in Africa and the Middle East. The next geographic stop I promised would be Persia, with the overprinted German marks prepared at the behest of Oskar von Niedermeier (figure 1 shows a 20 mark note in that series). However, those were not really emergency issues; rather, they were von Niedermeier?s attempt to make money on the war. Furthermore, the fakes of these notes, which are prolific today, were not made a century ago; they are mostly the product of an eBay seller in Texas. We?ll take them up in some other issue. That leaves us with notes of fractured states following the war. The Austro-Hungarian empire dissolved when the war ended, leaving Austria, Hungary, Czechoslovakia, and the several regions that became Yugoslavia. None of these had self- identified paper money issues immediately available, so notes of the old monarchy were converted for use by application of adhesive or overprinted redesignations. Those were quickly counterfeited. See Boling page 281 MPC Errrors part II Last time we discussed error military payment certificates created by the private contractors. The Bureau of Engraving and Printing had great difficulty with Tudor Press in printing Series 541 and we have been rewarded with errors for our collections. The problems extended into the printing of Series 591. The contract for printing this series was awarded to Forbes Lithograph Manufacturing Corporation. Tudor Press had submitted the low bid, but was not awarded the contract because of the poor performance on the printing of Series 541. Forbes seems to have done a fine job on Series 591. No errors have been reported for the series and the files at the BEP do not indicate any problems. Nonetheless, after Series 591 the BEP printed MPC in-house. The following series were printed at the Bureau: 611, 641, 651, 661, 681, 691, 692, and 701. The first Bureau error for discussion is the spectacular Series 611 $5 invert that we discussed last time. It should have been discussed in this installment. That was my error. Brain cramp. There are only two other errors to discuss. They both are from Series 692 and they are great. Actually, they both are spectacular, but in very different ways. First, we will consider the visually spectacular $5 certificate. Several of the contractor-printed issues had serial number shifts. They were all minor. This one is not at all minor. This piece has three serial numbers! Of course it was only intended to have two. These notes were printed in sheets of 50 so at least 49 Figure 1 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 279 more were printed, but only this one example has been reported in collections. This error has been known since the late 1970s. The other error is found on the $20 certificates also from Series 692. It too is spectacular but, believe it or not, it is spectacular in a subtle way! Can that be? Let me explain. The error is missing two tints on the face. An orange tint on a complete note ?squares off? the edges of the face design and a blue tint forms the word ?dollars? in the field to the left and ?MPC? in the field to the right. See the illustrations for comparison of error and complete notes. The existence of this error was reported in the second edition of Military Payment Certificates (now called Comprehensive Catalog of Military Payment Certificates, with the fifth edition in preparation). A second example was found and reported in the fourth edition of the catalog. The second example provided some important new information. It was accompanied by a teletype message dated 17 November 1970 from HQ USARV (US Army, Vietnam) to eighteen subordinate finance organizations. The message includes a wealth of information and insight about currency operations in Vietnam. The subject of the message is ?Faulty $20 MPC script [sic] Series 692.? The text of the message follows. ?1. This headquarters has received notification that some genuine $20 MPC script [sic] (Series 692) which are not completely printed have been placed in circulation. ?2. The two bills uncovered to date are missing: A. The brown border and interlocking brown wavy lines across the front of the bill. ?B. The blue printed ?MPC? and ?DOLLARS? on the front of the bill, and the blue interlocking wavy lines on various portions of the front of the bill. ?3. The back of the bills appear to be correct. The bills react properly under ultraviolet light. ?4. The serial numbers of the bills and the corresponding plate [sic] numbers are E03063027E, plate 33, and E02863027E, plate 8. ?5. All disbursing activities should: ?A. Redeem these bills from persons presenting them to your activity. ?B. Report the serial number and plate number to this headquarters ASAP. ?C. Turn the bills into central funding for redemption. ?D. Alert cashiers so that these type bills are not placed into circulation. ?6. Central funding will redeem the bills and maintain them on a segregated basis until disposition instructions are received from this headquarters. ?7. This headquarters will request disposition instructions from the U. S. Treasury. [This is a really crazy statement. If such instructions were ever requested, I would certainly love to see it, and especially the response.] ?8. Protective markings are cancelled upon the issuance of a new series of MPC.? Series 692 MPC was issued on 7 October 1970. Therefore the error was discovered after the series had been in circulation fewer than 45 days. Word of this error made its way all the way back to the Bureau of Engraving and Printing in a memo dated 15 March 1971 that is still on file. The description clearly describes the error in question. Such errors are certainly not common. They are created when two sheets stick together during printing. The bottom sheet then does not receive the printing in question. By coincidence in this case it was a combination of colors the absence of which was not easily noticeable. The serial numbers listed are of particular interest. The serial number of the second collector-discovered piece is E02919027E with position 15. The serial number of the first collector-reported piece is E02879027E, position 10. You may have noticed that the last three numerals are the same in each case?these two plus the two cited in the USARV message. This is not some extraordinary coincidence. Twenty dollar military payment certificates are printed in sheets of 50, and all four known notes are from the same sheet of 50 notes. Position numbers on the sheet indicate the relative location of each certificate on the sheet. The serial numbers of the error certificates demonstrate that they came from the eighth unit of 8,000 sheets. This group of sheets started with serial number E02800001E (in position 1) through E03200000E (in position 50). All four of the reported errors are from sheet 7027 of this eighth unit. If the finance officers had recognized that the two ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 280 notes mentioned in the message were from the same sheet, it might have been possible for them to determine from their records where the shipments with the remainder of the sheet had been sent. Having done this they might have been able to isolate their search. Indeed, since the series had been in circulation for such a short time it is possible that the error notes could have been found in finance vaults. The pieces that have been reported in collections were apparently found after the message was sent. They are in circulated condition. This indicates that they were not found in finance offices by serial number analysis but were taken from commerce. Probably the two pieces cited in the message were also found this way. There is some exciting news to end this report. Sharp-eyed collector Danny Straessle has found two examples of this great error! The serial numbers are E02887027E (position 11) and E03063027E (position 33). If you are a sharp-eyed reader the second number here should have caught your attention. Yes, E03063027E is one of the two errors reported in the 1970 teletype message! So, while Danny found two errors, he only added one serial number to the list of known pieces. We certainly would like to know where this remarkable certificate has been for the past nearly fifty years and how it came to light now, but we are unlikely to ever know. Still, it is a great find and in preparation for this column, I had an email exchange with Danny about these errors. He confirmed that both were not only eBay purchases, but were classic buy it now moments. Way to go Danny! He also told me that he has nicknamed these certificates ?teletype notes? or ?teletype errors.? I like both of these. Nicknames are great. Notes that have nicknames are special. Danny?s success might inspire the rest of us to be more vigilant. To recap, the known serial numbers are: E02863027E (8) listed on message, whereabouts unknown E02879027E (10) first reported piece in collections E02887027E (11) most recent discovery (featured lot in MPCFest auction, 2018) E02919027E (15) second reported piece in collections E03063027E (33) listed on message and in a private collection Correspondence with collectors about these errors will be most welcome. Obviously reports of additional pieces in collections are of interest. If anyone has any idea of how to obtain copies of additional relevant message traffic, that would certainly be of great interest as well. Boling continued; In Czechoslovakia the old notes were revalued 100:1. Figure 2 shows a 1 korun sticker applied to a 100 korun note of the defeated state. Figure 3 shows a counterfeit of the stamp below the genuine piece. Figures 4 and 5 show portions of the stamp at 20x magnification. Both are letterpress, but the counterfeit is a half-tone cut prepared photographically from a genuine example of the stamp. Copying processes don?t like empty space; dots have been created for the open areas of the design. They are not obvious to the naked eye but can be seen if the stamp is examined closely and can certainly be revealed by magnification. Figure 2 Figure 3 Figure 4 Figure 5 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 281 Figure 6 shows a 10 korun stamp printed directly on a 1000 korun note of the empire. Figure 7 shows a contemporary counterfeit of the stamp, cancelled with a rubber stamp that says Timbre Faux (stamp false). Figure 8 shows a modern inkjet copy of the stamp that is a gross failure, so the faker further doctored the piece with the inkjet word ?pad?l?n?? (forgery) to make it look like it was an old fake that had been detected by authorities and cancelled with the huge black overprint. Figure 9 shows all three together. You may be able to make out the sawtooth edges of the large black overprint?this faker?s inkjet printer cannot cope with smooth curves and diagonal lines and creates a stairstep pattern along those edges. Over in Austria, Dr. Julius Meczarosz, a displaced Hungarian, decided to counterfeit the new Czech 500 korun note. He printed a lot of them? when he was apprehended in Vienna in 1921, the police seized 60,000 notes, and we do not know how many were circulated before the law caught up with the operation. That?s about $1 million in 1921 dollars. Figures 10 and 11 show Ruth Hill?s pair of these notes, the genuine one on top and the counterfeit below (illustrations courtesy of Heritage Auctions?this pair sold for $15,275, a bit beyond my budget). The plate differences are subtle, but the counterfeit paper has no watermark. You can see the diagonal grid pattern included in the plate for the back of the counterfeit, to simulate the watermark. There is also a diacritical mark missing from the letter C at the top face (in the legislation clause). The C should have a small v sitting on top of it, thus: ?. Figure 6 Figure 7 Figure 8 Figure 9 Figure 10 Figure 11 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 282 The Meczarosz counterfeit is worth $600-800 by itself, so naturally somebody has counterfeited it as well?a second-generation counterfeit. Figures 12 and 13 show the face and back of this piece, the date and provenance of which I do not know (I first saw one of these in 2003 or 2004). You can see in figure 13 that the simulated watermark is missing from the printed image?and it is also missing from the paper. Figure 14 shows the two faces together?you should be able to see that the bottom piece (the second-generation fake) is somewhat less crisp than the Meczarosz piece. Figures 15 and 16 show the letter C that should have the diacritical mark over it. The Meczarosz version is letterpress?the unknown replica is four- color process lithography. You can see why the image of the later piece does not look as crisp as the first-generation replica. To conclude this stage, we turn to Hungary?also using obsolete notes of the Austro-Hungarian empire as vehicles for their initial post-war issues. Figure 17 shows an empire 100 korun note reconfigured as a Hungarian 100 korun note. Figure 18 shows a cancelled counterfeit of that same overprint. You can see several typographic differences in the two overprints. The first and last letters of Magyarorszag (Hungary) are the most obvious in this pair, where the cancellation X obliterates some of the letters in the counterfeit. Next issue we go to the big bad actor in WWI?Germany itself. I am not aware of any national-level emergency issues during the war but following the war Germany was an economic basket case. Figure 12 Figure 13 Figure 14 Figure 15 Figure 16 Figure 17 Figure 18 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 283 Lee McClung All-American Football Player and Treasurer of the United States by Frank Clark Thomas Lee "Bum" McClung was born on March 26, 1870 in Knoxville, Tennessee. He went to secondary school at Phillips Exeter Academy in Exeter, New Hampshire. He graduated in 1888 and matriculated into Yale University. He was known as "Lee" at college and afterwards. He played both baseball and football for Yale, but it was on the gridiron where he was the most successful. He played halfback for four years. Those teams compiled a record of 54-2. They outscored their competition 2,269 to 49 during those four years. McClung personally is credited with scoring 176 points in 1889 and a total of 494 points for all four years combined. He was the captain of the Yale football team of 1891 that went 13-0, scored 488 points and allowed a grand total of zero points on defense. He was a consensus All-American in 1890 and 1891. He was inducted into the College Football Hall of Fame in 1963. After college graduation, he spent time travelling and became the first football coach at the University of California. He coached for only one season and compiled a record of 2-1-1. McClung would next go into the railroad business. He worked first for the St. Paul & Duluth Railroad Company. His next stop in railroads was with the Southern Railway Company. He stayed there until December 1904 when Yale hired him as treasurer of the university. This position led to him being appointed as the Treasurer of the United States by President William Howard Taft. President Taft was a class of 1878 graduate of Yale. McClung's term began on November 21, 1909 with a salary of $8,000 annually. During his tenure, McClung emphasized withdrawing of worn and dirty banknotes at a higher rate so that the paper money in circulation would be sanitary. McClung served with the following two Registers of the Treasury, William T. Vernon from November 9, 1909 to March 14, 1911 and James C. Napier August 15, 1911 to November 21, 1912. McClung resigned on November 21, 1912 shortly after the defeat at the polls of President Taft by Woodrow Wilson. His resignation was prompted by disputes between himself, Assistant Secretary of the Treasury Abram Piatt Andrew and Secretary of the Treasury Franklin MacVeagh. President Taft demanded a truce between the three warring Treasury officials until after the election of 1912. There was a truce, but it ended with the election. McClung took a trip to Europe in 1914. He was there when World War I broke out. He left the continent for Great Britain. He was admitted to a London hospital with typhoid fever and died on December 19, 1914. His body was returned to the United States on board the steamer, St. Paul. It left Liverpool on December 26, 1914. The funeral service took place at St. Thomas Episcopal Church in New York on January 4, 1915. The body was next returned to his hometown of Knoxville for services at his sister's house and to be buried at Old Gray Cemetery. McClung never married. The Washington Post of January 17, 1915 said of McClung in his obituary, "Ah! A remarkable athlete, a wonderful football player, a loveable classmate, a diligent student, a manly man-a type Yale men idealize for emulation. Such was Lee McClung." ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 284 Book Review Tennessee Obsolete Paper Money 1800-1959 By: Dennis Schafluetzel & Tom Carson Paul Garland?s The History of Early Tennessee Banks and Their Issues, published in 1983 covered obsolete currency issued by banks, the state and local governments but did not cover Tennessee merchant scrip. Schafluetzel and Carson have incorporated those notes into this latest book. Their original scope was to cover the merchant scrip but with the R. M. Smythe sale of the Schingoethe collection, the authors decided to incorporate all Tennessee obsolete notes into the book. All the information has been input into a website which, when all the books have been sold, will become the primary for new information and notes. Individual banks and scrip listed on the website have additional bibliography and references to minimize the book?s size and cost. The book is hard-bound with an attractive book light gray cover and striking green lettering. Published in an 8 x 11 format it tops out at almost 550 pages. After acknowledgements, it has a table of contents by city with issuer page numbers. A section on grading including the PMG grading scale is next and then a how-to section, a place and name ID section and a two-page bibliography. Due to the number of notes found after Garland?s book was published, the sequential numbering system had to be abandoned and a new system developed. It incorporates elements for issuer place, type and name, denomination, type number with sub-type and a general class. The system is outlined very nicely & easily understood in the text. The notes section is profusely illustrated with very clear and easily readable pictures. Each note is described, and the provenance of the pictured note is listed. Below the narrative description is a table that lists the Schafluetzel number, rarity and prices in VG, VF and Proof. Each note, where possible, is pictured, described and priced by itself, rather than all denominations in one table. Obviously, there are some notes that are only known by auction descriptions and therefore have no image available. One of the best aspects of the book is that whenever possible, a history of the issuer is given, a trait that is not so important to some present-day authors. At the end of the book, is a wonderfully detailed index that allows you to find a note by name of issuer. That is followed by two appendices that allow for conversion of Garland and Haxby numbers to the new Schafleutzel numbers. Overall, the book is a magnificent addition to the obsolete books that are currently available. It is easy to read, magnificently illustrated and a highly recommended addition to any obsolete library regardless of primary state focus. The book retails for $110 (plus $10 domestic postage). For more information or to purchase, send a check to Tom Carson; 436 Lakecrest Drive; Harrison, TN 37748; or Dennis Schafluetzel; 5208 W 11th Street; Greeley, CO 80634; by?Robert?Calderman? Auction?Fever!? ?????These?days?all?you?need?to?do?is?blink?to?find?the?next? auction? jam?packed? full? of? notes? waiting? to? be? won.? Between? January? and? June? there? seems? to? be? a? new? auction? literally?every? few?weeks!? If?you?attend? shows? regularly,?it?is?no?secret?that?the?digital?age?now?has?it?s? hooks? in? deep? and? long? gone? are? the? days? of? auction? rooms? packed? deep? to? the? point? of? bursting?with? live? bidders?shoving?their?cards?in?the?air?to?fight?for?their?lots.? The? live? auction? rooms? seem? rather? docile? these? days? despite?the?skilled?efforts?of?the?auctioneers.?Just?a?short? five?years?ago,?I?can?remember?a?Central?States?Heritage? auction? that?had?a? standing? room?only? floor?alive?with? spirited?bidding.?A?relentless?bidder?in?the?very?back?was? thoroughly?enjoying?out?bidding?his?opponents?in?various? paper?categories?to?the?point?of?it?appearing?he?was?just? out?bidding?folks?for?sport!?? ?????It?s?a?new?world?now?that?internet?bidding?has?become? so?common?place.?I?ve?been?guilty?of?bidding?on?my?cell? phone?while? sitting? in? the? live? auction? room?with?my? lonely?bidder?card?sitting?on?the?seat?right?next?to?me!? This?year?at?IPMS?I?ll?admit?that?I?was?even?bidding?on?my? lots?at?dinner?Saturday?night?while?I?was?there?in?Kansas? City.? ?????The?digital?evolution?that?has?rapidly?progressed?over? the?past?several?years?has?made?a?significantly?negative? impact?on?show?attendance.?Unfortunately,?we?ve?seen? some? very? recent? show? consolidation,? and? while? the? show?model?is?still?a?very?viable?enterprise?there?may?be? a?noticeable?contraction?seen?in?the?short?term.?? Stay?at?home?collectors?are?greatly?missing?the?boat?by? not?regularly?attending?major?shows.?The?opportunities? to?land?fantastic?material?in?person?from?dealer?cases?is? only?up?for?grabs?for?attendees?and?staying?home?to?bid? at? auction? can? be? a? very? risky? endeavor? without? the? benefit? of? viewing? auction? lots? in? hand? prior? to? committing? proxy? bids.? If? you?ve? taken? a? break? from? traveling?to?shows,?you?may?want?to?get?back?out?there? and?support?the?hobby?by?attending?a? few?shows?once? again.?I?ve?always?found?every?show?to?be?an?extremely? rewarding? experience!? The? comradery? amongst? fellow? collectors?is?a?great?time?to?be?had?that?you?just?cannot? get?bidding?from?home?on?a?computer?screen. Lot?Description?featuring?a?group?of?three?raw?1928F?$2.00?Legal?Tender?Notes? ?????Auctions?can?be?extremely?addictive?and?getting?a?new? catalog?in?the?mail?is?always?an?exciting?day!?For?many?it?s? a? quick? task? to? thumb? through? and? find? your? favorite? section?of? specialty?and? locate?what? lots? you?need? for? your? collection.? For? others? like?me,? I?d? rather? look? at? every?page?and?see? if? there?are?a? few?diamonds? in? the? rough.??Something?that?might?go?unnoticed?amongst?the? hundreds?of? lots?waiting? to?be?won? throughout?all? the? different?sessions.??While?it?does?take?a?good?bit?of?time? to? really?dig? in? that?deep,? sometimes? your? investment? can?pay?off?quite?nicely!??? ?????Above?is?an?auction?description?from?just?a?couple?of? years? ago.? ? There?was? no? image? listed? in? the? auction? catalog?and?the?description?itself?didn?t?necessarily?seem? too? exciting? on? the? surface.? ? As? you? are? already? anticipating?there?s?more?to?the?story!??The?listing?is?for?a? group?of? three?ungraded? consecutive?1928F?D?A?Block? $2.00?Legal?Tender?notes?listed?as?Choice?Crisp?? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 286 Uncirculated.? ?While? there?was?no?picture? listed? in? the? auction?catalog,?there?was?an?image?readily?available?on? the?website?for?all?to?see.??Twos?are?not?generally?in?my? wheelhouse.?I?m?a?dedicated?fan?of?small?size?to?be?? sure,?but? for?some?reason? I?started?with?$5?s?and? then? went? up? in? denomination? all? the? way? to? the? $100?s? leaving?the?twos?and?aces?by?the?wayside.??Only?now?have? I? just? begun? to? give? them? the? attention? they? rightly? deserve.?? ?????If?you?see?a?lot?description?without?a?photo,?dig?a?little? deeper? and? you?might? just? find? the? rest? of? the? story!?? Pictured?below? is? the?online?photo?of? the? lot?of? three? notes.??Take?a?close?look?at?the?series?of?issue.??Now?look? at?the?serial?number?on?each?note.??As?described,?this?is?? a?nice?grouping?of?three?consecutive?legal?tender?notes.?? Not?only?do?they?look?CCU?they?might?even?grade?higher!?? Taking?a?closer? look,?these?notes?are? instead? the?much? scarcer?1928E? series?with? the? Julian? ??Vinson? signature? combination?vs.?the?28D?series?listed?in?the?description!?? While? this? alone? is? not? that? earth? shattering? of? a? discovery,? you? may? have? already? noticed? the? true? treasure?in?this?lot.??Check?out?the?center?note,?it?is?clearly? a?Radar?Serial?Number!? ?While? consulting? those? in? the? know,? I? found? there? were? no? radars? or? repeaters? previously?reported?in?the?census?for?the?series?of?1928E? legal?tender?$2?s?prior?to?the?discovery?of?this?note?back? in?2017!??? ?????With?an?estimate?of?$500?$1000?this?group?lot?opened? at? $300? before? the? buyer?s? premium.? ? Common? place? series? of? 1928D? and? 1928E? examples? slabbed? in? 64Q? holders?regularly?sell?individually?in?the?$100?range,?so?a? group?of?three?raw?examples?starting?at?$300?with?such? a?strong?estimate?may?have?been?rather?unattractive?to? most?buyers.? ?This? led?me?to?believe?there?was?a?good? chance? this? lot? may? not? see? a? whole? lot? of? action.?? Fortunately,? my? hypothesis? held? true? during? the? live? auction!??When?the?lot?came?up,?I?raised?my?card?high?to? place? the?opening?bid?and? to?my?pleasant? surprise,?no? one?else?bid!??Landing?a?CU?fancy?serial?number?on?any? series?of?1928?for?any?denomination?is?an?exciting?score.?? Notes? back? in? these? days?were? not? printed? anywhere? near? the?massive?quantities? they?are?now?produced? in? our?modern?times.?In?fact,?any?series?fancy?serial?number? example?issued?prior?to?the?series?of?1950?should?be?held? in?high?regard.? ?These?notes?are?attractive?and?popular? even? in?circulated?condition,?but?as?a?CU?example?they? are?truly?trophies!??? ?????Pricing?early?fancy?serial?number?notes?can?be?rather? challenging.?Many? factors? are? involved? including? type,? denomination,?series,?number?of?known?examples,?and? current? demand.? ? The? fancy? radar? serial? number? note? pictured?here? including?bookends,? after? grading?CU?or? better,?would?typically?bring?4?to?6?times?the?value?of?a? typical?non?fancy?example.??Not?a?bad?score?landing?this? group?at?opening?bid!??The?next?time?an?auction?catalog? hits?your?mailbox,?take?some?extra?time?to?really?study? the?offerings.? ?You?may? just? find?yourself?a? treasure?or? two!? ?????Do?you?have?a?great?Cherry?Pick?story?that?you?d?like? to?share??Your?note?might?be?featured?here? in?a?future? article?and?you?can?remain?anonymous?if?desired!??Email? scans?of?your?note?with?a?brief?description?of?what?you? paid?and?where?it?was?found?to:? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 287 The Quartermaster Column No. 7 by Michael McNeil Many Prussians and Poles emigrated to the United States before the Civil War to escape the nearly constant warfare in that region of Europe. Among them was Henry Edmund Loebnitz, born circa 1832. Texas is noted for its German community in the Hill Country around Austin. Caught in the American Civil War, Loebnitz enlisted on August 22nd, 1861 at the age of 29 as a 2nd Lieutenant at Victoria, Texas. On December 17th he was appointed by Brig. Gen?l H. H. Sibley as Capt. & Assistant Quartermaster in the 4th Regiment Texas Cavalry, Army of New Mexico. The Army of New Mexico was formed in Texas to rout Union forces in New Mexico and Arizona. Brig. Gen?l Sibley led the Army of New Mexico in the capture of Albuquerque and Santa Fe in March of 1862, but failed to capture Union supplies, living off the land and alienating the local population. Sibley ultimately retreated back to Texas. Unable to obtain a bond while in the field in New Mexico, Loebnitz had served in his role as an Acting Assistant Quartermaster and was later dropped from the rolls of bonded Quartermasters. By December 9th of 1862 he had obtained a bond and was reinstated, but he noted that he had not obtained a confirmation of receipt of that bond from the Quartermaster General, perhaps the result of Richmond?s difficult communications with the distant Trans-Mississippi District. After Sibley?s retreat to San Antonio the 4th Regiment Texas Cavalry was reassigned to Colonel Thomas Green?s unit, and on January 1st, 1863, Green led his men on the river steamer Bayou City, assisting in the recapture of Galveston. The only known Treasury notes with his endorsement were issued on February 9th, 1863. Later in the spring Green?s unit participated in considerable action in Louisiana.1 Loebnitz was on detached duty in Louisiana where he was reported to be in ill health. On January 21st, 1864, Loebnitz applied to Maj. Benjamin Bloomfield for a transfer to a position in Houston, citing his poor health from field service: ?The injury received, has caused me spells of sickness from time to time, and leaves me less able to attend to Business which requires much exercise, particularly on horseback.? Loebnitz obtained that transfer, working for Maj. Bloomfield, who literally wrote the manual for Confederate Quartermasters. Bloomfield wrote this recommendation in an effort to obtain a promotion for Loebnitz as a Depot Quartermaster: ?Capt. Loebnitz is an efficient and laborious officer, prompt in the discharge of his duties, & courteous to all with whom he has business. Capt. Loebnitz is a citizen of Texas since 1849, and born in Prussia. His character is unimpeachable.? One of the remarkable documents in the National Archives is a printed copy of Special Order, No. 156, dated June 4th, 1864 at Houston, by command of Maj. Gen?l J. Bankhead Magruder, and signed by Loebnitz as ?Official.? This special order pertained to new duties assigned to Capt. Loebnitz, and it was professionally typeset and printed. The cost to have such an order printed was perhaps justified by making public notice of an effort to A portion of the Special Orders at Albuquerque, New Mexico detailing the duties of Capt. H. E. Loebnitz as the Quartermaster of the Army of New Mexico, where for a very brief time in March of 1862 Albuquerque was a part of the Confederacy. image: ?Surprise and Capture of the United States Steamer Harriet Lane by the Confederates under General Magruder, and the Destruction of the Flagship Westfield in Galveston Harbor, Texas, January 1st, 1863.? USS Harriet Lane is shown at center, USS Westfield at left, and the Confederate gunboats Neptune and Bayou City at right. image: U. S. Naval Historical Center Photograph. Photo #: NH59142 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 288 resolve outstanding debts, but in all of the roughly 20,000 Confederate documents I have read in the National Archives files, printed orders are an extreme rarity. On October 12th, 1864, Loebnitz was assigned to duty in Houston as Acting Chief Quartermaster, a job which included the management of workshop production of military supplies. Records indicate he held that job at least through March of 1865. He was paroled at Houston, Texas on June 22nd, 1865. Endorsements by Loebnitz are quite rare, with only two known at this time. The illustrated example exhibits a double endorsement, which is also rare?the endorsement of Col. Peter Cavanaugh Woods is seen at the top. Secession from the Union was not supported by all Texans, and an impassioned plea to stay in the Union was made by none other than the famous and very prescient Sam Houston: ?Let me tell you what is coming. After the sacrifice of countless millions of treasure and hundreds of thousands of lives, you may win Southern independence if God be not against you, but I doubt it. I tell you that, while I believe with you in the doctrine of states rights, the North is determined to preserve this Union. They are not a fiery, impulsive people as you are, for they live in colder climates. But when they begin to move in a given direction, they move with the steady momentum and perseverence of a mighty avalanche; and what I fear is, they will overwhelm the South.?2 Henry Loebnitz leaped from the frying pan of Prussian warfare directly into the fire of the American Civil War. ? carpe diem Notes: 1. These two sources are worth reading for more detail: https:://, and https::// 2. Civil_War. 3. McNeil, Michael. Confederate Quartermasters, Commissaries, and Agents, see Loebnitz, pp. 421-424. Special Orders detailing the duties of Capt. H. E. Loebnitz, AQM. image: The back of the Type-41 Treasury note with the February 9th, 1863 re-issue and endorsement of H. E. Loebnitz, A.Q.M. The note was originally issued at Jackson, Mississippi on January 1st. 1863. The endorsement of Col. P. C. Woods is seen at the top, and a manuscript Interest Paid endorsement to January 1st, 1864 is seen at the bottom. image: McNeil The front of the Type-41 Treasury note endorsed by Henry Edmund Loebnitz, Capt. & Asst. Quartermaster of the 4th Regiment Texas Cavalry, Army of New Mexico. image: McNeil ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 289 When Institutions Fail?Part II Catalogs and other reference works are essential institutions of numismatics. In my previous column I used the bankruptcy of F+W Media, a major publisher of numismatic works, as an opportunity to explore how their disappearance might harm collectors and students of numismatics alike. Earlier this year, the sudden demise of PCGS Currency, a major Third Party Grader (TPG) of banknotes, has raised similar issues. In some ways, the travails of PCGS Currency are more interesting because TPGs are a relatively new feature in the field of numismatics. First established during the 1970s for coins, their activities spread later to encompass banknotes and currency. TPGs do a number of important things. First and foremost, they arbitrate the inevitable disputes between buyers and sellers over what grade to give a coin or note. Second, TPGs authenticate the material they grade, especially for high-value items. Third, and related to the first two services, TPGs help with attribution by labeling the materials they grade, according to catalog number, variety, and provenance. Fourth and finally, they seal the coin or note in a tamper-resistant holder, ensuring that all that information?grade, authentication, and attribution?corresponds to the correct item. TPGs do these things for a fee, and millions of dollars have been spent getting various collectibles ?holdered? or ?slabbed?. Critics of this argue that collectors ought to develop the expertise to judge their own material. Also, by encouraging people to buy the grade, not the note, TPGs tend to commodify the hobby, contributing to cost escalations across small differences at the highest grades. While I have some sympathy for these views, I think they ignore the real value such services provide. Much as even sophisticated investors consult rating agencies like Moody?s to tell them how risky bonds are, collectors can rely on TPGs? assessments before they commit to buy. But it?s not enough for a TPG to grade an item and be done with it. The service presumes that the TPG stays in business to offer follow-up benefits like cert verification, population reports, and registry sets. Above all, the confidence collectors have in the grade may depend on the sheer persistence of the company that bestowed the grade in the first place. It would seem that, if a grading company were to disappear, that shouldn?t affect the validity of the judgments it made about the coins and notes that it graded. Those judgments are independent of the existence of the company that made them. But what if they aren?t independent? At the end of last January, we experienced a test of this proposition when PCGS Currency suddenly shut down its operations. In the United States, currency grading under the PCGS label was done not by Collectors Universe, Inc., the owner of that brand, but by another party, K3B, Inc., who had licensed the PCGS name. For reasons that are unclear, that agreement was not renewed and the PCGS Currency website went dark. This event flummoxed currency collectors and dealers alike. In the short run, what would become of all those notes in transit, or otherwise in the process of grading? In the medium term, how would collectors access cert verifications to confirm information about holdered notes? What would become of the online set registries that collectors assemble with pride? And over the long haul, what would happen to the trust that the numismatic market accords to PCGS grades, if PCGS Currency itself were no longer in business? Paper Money Grading (PMG) a competitor, was quick to offer a crossover service to owners of PCGS-graded notes to take advantage of that fear. Since PCGS Currency?s closure, the individuals behind it have re-invented themselves as Legacy Currency Grading, Inc. promising to maintain continuity with all the benefits provided by their predecessor. This may, or may not, succeed. However, this episode raises questions not just about PCGS- graded notes, but about the long-term viability of professional grading itself. This is a real issue, given the vast sums people spend on third-party certification. In contrast, the cost of any single catalog represents a minor, one-time expense for a collector. As F+W Media shows, no catalog publisher lasts forever. Neither, for that matter, will grading companies. Will collectors really tolerate the expense of repeatedly having the grades bestowed by some defunct TPG recertified by its successor? That would not seem reasonable to me. Maybe forty years from now, none of these TPGs will exist. By then, our grandchildren will be happily collecting holograms of their favorite notes, certified on the blockchain, while the original objects will be sequestered permanently in vaults, protected against the ravages of climate change. And looking back, maybe those grandchildren will wonder why we foolishly wasted millions of dollars paying for encapsulated opinions that weren?t designed to stand the test of time. Chump Change Loren Gatch ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 291 The Obsolete Corner The Edgar County Bank by Robert Gill As I write this, I have just returned from the International Paper Money Show that was held in Kansas City. I was able to acquire only one two-note scrip sheet for my collection, but the trip was still well worth it. Not only did I get to see friends that I only see once a year, but I also got to personally meet a couple that I know only thru email contact. I'm already looking forward to seeing what's waiting for me at next year's show. In my last article, I mentioned that recently there were thirty-seven rare, uncut sheets of Illinois Obsolete Currency auctioned by Stacks Bowers Galleries in their official auction of the Whitman Coin & Collectibles Spring Exposition, held on March 1st, 2019. I was able to acquire five of them. In this article, I will share with you one of them. In this issue of Paper Money, I'd like for us to look at The Edgar County Bank, which operated in Paris, Illinois, during the 1850s and 1860s. When researching an old obsolete bank, I'm sometimes fortunate enough to come across enough information to be able to have a glimpse into the goings-on of it. But quite often I run into the proverbial "brick wall". And that is just what kept happening to me as I tried to gather knowledge on this old institution. When doing research, I have several different means that I use to try to gain information. Doing a Google internet search sometimes gives me success. I also try to contact a local historical society or museum in the area of my subject. Because of the extreme rarity of notes on this Bank, it appeared that I was well on my way to that "wall" when I got a very satisfying phone call. I had tried to make contact with the local Historical Society in the area of Paris, Illinois, via email. And then fortunately, after a few days, an associate of that Society contacted me. He didn't have very much information, but was able to help me somewhat. He has interest in this old Bank, and even owns some artifacts from it. But even with his input, I'd still like to find out more about this institution, and how this intriguing sheet of paper money has survived, and found its way into my possession. The Edgar County Bank was established in October of 1855. Authorized capital was set at $50,000. Its officers were H. Sandford, President, and George E. Levings, Cashier. The Directors were Mr. Sandford, W. P. Dole, William Kile, William Maxley, and William Laughlin. This Bank owned and occupied a building on the east side of the square in Paris. During the life of this institution, the security of the bills of banks in Illinois was largely based upon the stocks of many Southern states. It was seen that should the South adopt ordinances of succession, inaugurate war, and withdraw from the Union, the value of the stocks held for security would become greatly reduced, and in fact, become worthless. During the summer of 1862, when gold began to rise in value, brokers started to buy and sell it like any other commodity, and as it continued to rise and fluctuate in value, the expectations and hopes arose and fell correspondingly. This, the Civil War, and other factors, brought on the troubles of banking business in Illinois. All things culminated early in 1863, and Illinois banks lost heavily. The Edgar County Bank was able to sustain for a short time longer, but finally closed its doors in 1866. In 1885, the First National Bank secured ownership of the building of The Edgar County Bank, and began its successful career as a banking institution. This sheet is very likely unique. Its rarity can easily be recognized as Stacks Bowers Galleries has handled only one example of each the $2 and $3 notes, while the Heritage Auctions archives reveal that its auction house has never handled any notes on this Bank. The Haxby reference, at the time of its 1988 printing, only listed the $1 note (with a different printer's imprint), with all other notes listed as SENC (Surviving Example Not Confirmed). And Frank Sprinkle, in his publication, Master List of Uncut Sheets of Obsolete Bills, makes no mention of ever seeing this sheet. So there she is. An extremely rare sheet of paper money that's at least one hundred and fifty years old, and in a very nice state of preservation. What else needs to be said? As I always do, I invite any comments to my personal email address or my cell phone number (580) 221-0898. So, until next time, I wish you HAPPY COLLECTING. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 292 ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 293 $ m a l l n o t e $ New York 1934 & 1934A $100 Federal Reserve Notes By Jamie Yakes The Bureau of Engraving and Printing used plates from five series?1934, 1934A, 1934B, 1934C and 1934D?to print $100 Federal Reserve Notes. Printings of $100 notes for New York bucked that trend. From 1934 to 1951, the BEP printed over 18 million New York $100s, the most for any district, and did so using only 1934 and 1934A plates (Figs. 1a and 1b). New York $100s turned on supply and demand: To 1944, the BEP had printed over 1.5 million sheets of New York $100s, mostly 1934As, a supply sufficient to fill orders from the New York bank into the 1950s. Though the BEP made Series of 1934B, 1934C, and 1934D plates for New York, they never needed to use them. The BEP prepared only four 1934 New York $100 face plates, serials 1-4, all in January 1935, and immediately sent them to press in a push to produce 1934 notes for the bank. The quartet endured 12 press rotations over the next four years until dropped on May 19, 1939, and canceled on May 26.1 The same month they canceled the 1934s, they finished 1934A faces 5-8 and immediately sent those to press. That grouped had two press runs, in September 1939 and May-June 1940. In July 1940 they finished faces 9-12 and added them to the presses along with the other 1934As. They dropped all eight plates on August 2.2 Records show the BEP delivered 5,280,000 finished New York $100s to the Treasurer through the end of 1940.3 Fewer than 4 million were 1934s, including anything numbered to mid-1939. They printed about 340,000 sheets from the four 1934 faces, equivalent to just over 4 million notes.4 The highest observed 1934 serial is B03922329A,5 indicating those 1934 sheets were rapidly consumed once the plates were dropped from press. Production of New York $100s resumed in 1942-43, when the BEP sent to press faces 5-11 and 13. They had prepared face 13 in February 1942 to replace plate 12, which they canceled in 1940.6 Thus, they maintained their plate count at eight and could operate two full presses of four plates each for sheet production. Figures?1a?and?1b:? Series?of?1934?and? 1934A?New?York? $100s?as?issued.? (Scans?courtesy?of? Heritage?Auction? Galleries)? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 294 From March to July 1944 the BEP produced nine new 1934A plates (serials 14-22), and sent those to press along with the other 1934A faces. On August 8 they dropped all 17 plates and never again used New York $100 faces.7 To this point they had produced 15,278,892 1934A sheets8 and delivered 17,686,000 finished notes.9 Considering 4 million of those notes were 1934s, there remained about 130,000 unsealed and unnumbered 1934A sheets. As a formality of preparing plates with signatures of new treasury officers, the BEP made 1934B Julian-Vinson faces 23-31 in 1945-46; 1934C Julian-Snyder faces 32-36 in 1947-48; and 1934D Clark- Snyder faces 37-41 in 1950 (Figs. 2a-2c).10 They never used any of them. They made final deliveries of 678,000 New York $100s during 1951,11 all from stocks of unfinished 1934A sheets. The last serial was B18364000A.12 Varieties Though they bear only the Julian-Morgenthau signature combination, New York $100s still offer collectible varieties. Four are possible: yellow-green and blue-green seals, and macro and micro mules. Changeover pairs are also possible, but will be rare. The BEP printed seals and serials on FRNs with a yellow-green ink until late 1937, when they changed to a blue-green ink that became routine in 1938. Production of 1934 notes straddled the change and are possible with both colors. The last 1934 serial printed with yellow-green ink will be around B021xxxxxA;13 anything higher will have blue-green seals and numbers. Because they printed no 1934A New York $100s until 1939, all those notes will have blue-green seals and serials. The BEP used $100 macro backs (serials 113 and higher) beginning in June 1944.14 That lagged use of 1934 New York faces by five years so all those notes will be non-mules with micro backs (serials 112 and lower). They printed most 1934A sheets prior to 1944, and most of those also will have micro-backs, Figures?2a,?2b,?and?2c:? Unissued?New?York?$100s?as? proofs?(top?to?bottom):?Series? of?1934B,?1934C,?and?1934D.? (Scans?courtesy?of?National? Numismatic?Collection,? Smithsonian?Institution.)? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 295 but in this case will be mules. For about three months in 1944 production of macro-back sheets overlapped the final use of 1934A New York faces, so a small amount of 1934A macro-back non-mules were printed. Listings in the Heritage Archives substantiate the disparity: Among over 200 lots of 1934A New York $100s are only three non-mules: serials B13049234A, B15398178A, and B17225081A.15 Star notes will mirror the pattern of regular notes. The BEP printed 164,000 stars on 1934 and 1934A sheets, at an approximate 7:1 ratio in favor of 1934As. They printed 20,000 by 1936, all 1934s with yellow-green seals. The rest were 1934As printed after 1939, and possibly all mules: Heritage shows 24 1934A stars, all with micro backs.16 Changeover pairs will be a difficult find among New York $100s. There was a three-week gap in 1939 between the last use of 1934 and first use of 1934A faces, meaning plate press changeovers were not created. Plate press changeovers occurred during sheet printing when at least two kinds of plates shared the same press. Sheets pulled and stacked from those plates alternated between the types throughout the entire stack. Changeovers of New York $100s instead will be the less common stacked kind, whereby the BEP combined small stacks of sheets into large stacks for numbering and sealing, which resulted in only a few changeovers between types.17 The BEP briefly numbered 1934 and 1934As types concurrently, and the overlap between the high 1934A and low 1934 serials is only about 80,000 serials.18 The BEP possibly could have combined stacks of 1934 and 1934A sheets into larger piles, but it?s unknown whether that occurred. Notes 1. 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. 2. Ibid. 3. ?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. 4. Author?s estimate. Data from Bureau of Engraving and Printing plate summary cards, provided by Hallie Brooker, Bureau of Engraving and Printing. Email communication November 8, 2017. 5. Heritage Auction Archives. fine/a/141125-32249.s?ic3=ViewItem-Auction-Archive-ArchiveSearchResults-012417&lotPosition=0|18. Accessed August 27, 2018. 6. Record Group 318, Container 147. 7. Ibid. 8. Brooker. Email communication November 8, 2017. 9. ?First Serial Numbers...,? O&M Secretary. 10. Record Group 318-Bureau of Engraving and Printing: Entry P1, ?Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s,? Container 144. National Archives and Records Administration, College Park, Maryland. 11. ?First Serial Numbers...,? O&M Secretary. 12. Shafer, Neil. A Guide Book of Modern United States Currency, 2nd ed. Racine, WI: Whitman Publishing Company, 1967: 142. 13. Estimated based on data in ?First Serial Numbers...,? O&M Secretary. 14. Record Group 318, Container 144. 15. Heritage Auction Archives. realized.s?ic=Tab-Resources-AuctionArchives-122214. ?Fr. 2153-B?. Accessed August 27, 2018. 16. Heritage Auction Archives. realized.s?ic=Tab-Resources-AuctionArchives-122214. ?Fr. 2153-B*?. Accessed December 10, 2018. 17. Yakes, Jamie. ?Spectacular $50 Skip Changeover Pair.? Paper Money 56, no. 6 (2017, Nov/Dec): 477- 478 18. Heritage Auction Archives. Highest 1934: B03922329A, federal-reserve-note-very-fine/a/141125-32249.s?ic3=ViewItem-Auction-Archive-ArchiveSearchResults- 012417&lotPosition=0|18, ?Fr. 2152-B.? Lowest 1934A: B03849315, reserve-notes/1934-a-100-mule-federal-reserve-note-fr-2153-b-vf-this-is-a-decent-example-with-some- light-staining/a/33091-21387.s?ic4=GalleryView-Thumbnail-071515. ?Fr. 2153-B? Accessed August 27, 2018. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 296 President?s Column July/August 2019 What a great time! I just returned late yesterday from the International Paper Money Show in Kansas City and while my schedule was packed, I thought this was one of the most fun shows I?ve been to in a long time. Really, it is what you make of it. I arrived on Wednesday in the late afternoon, and this time my wife Cheryl came along to share the room (previously plans to share with a currency buddy having fallen through) and we met up right away with Mark Drengson (another Minnesota guy) to go out for dinner. Our first culinary excursion was at Jack Stack?s, a 15-minute walk from the hotel. We thought the food was good, but not outstanding. We left thinking we?ll have to do better tomorrow evening. Thursday started out with the FRB KC tour, which had about ten attendees. This year again our host was Eric, a youthful guide enthusiastic about currency. He even brought along part of his collection to show us. After the tour it was time to hit the bourse floor and set up the SPMC table. We were in our familiar spot right across the aisle from Pierre Fricke, former SPMC president, with his massive inventory of Confederate and Obsolete Notes. I?m often tempted to lose my collecting focus and buy a note from him just because it?s so cool. I also dropped off part of an estate I was trying to sell with Glen Jorde. Glen?s inventory equally complements Pierre?s, but with nationals and type. His table was quite busy throughout the show. Later Thursday Cheryl and I again met with Mark and also Robert Vandevender, Nancy Purington and Bob Hastings for dinner, this time driving a short way to Q39. Standing in line, I got a mysterious text from Jeff Brueggeman saying only ?get the ribs.? That was good advice as they were fantastic. Adding a side of bacon wrapped shrimp & a glass of Pinot made this a meal to remember. A bit later Cheryl & I got a game of Spades going in the hotel lobby. I partnered with Vendevender & Cheryl with Hastings. My team lost. Friday morning started with the SPMC breakfast, this time again at Harvey?s. When making the reservation this year, the previous manager told me they installed a new sound system to address to poor acoustics. Problem solved, so I thought. What he didn?t say is that the system they installed was for music, not voice. Argh! So, I want to apologize for the poor sound. The solution for next time is to rent a room in Union Station that Harvey?s will cater to. It will cost us more, but we?re not going to raise the price as we owe this to you to get it right. Back at the floor I was busy with club business and a bit of shopping. My only regret is that I did not have time to attend the many seminars. I heard they were excellent. On Friday evening we ate at the hotel restaurant (not too bad), and stayed close as some of our group wanted to attend the auction. Cheryl and I played Spades again, and this time I partnered with Hastings. My team lost. From 8pm to 11pm we met for the annual bull session hosted by Mike Dougherty for lovers of nationals and such. I really enjoy that! Saturday was another packed day, started by the SPMC board meeting where we got a lot of business done, including bringing on new board member Matt Draiss. Welcome, Matt! Then, it was getting ready for the exhibit awards and working the floor in search of some treasures. The search paid off. I found a neat Minnesota-related Nebraska note in Denly?s enormous inventory of Obsolete Notes! Then, Don Mark brought me an expected Minnesota note in low grade, but the price was right. Later, I got a couple upgrades of Minnesota scrip at Hugh Shull?s table. At noon I hosted an impromptu SPMC membership meeting ? it was not supposed to be on the program, but that?s okay, it was still worthwhile. At 2pm Mark Drengson began his talk on the Bank Note History Project, which was well attended. The video of that presentation will be made available on the SPMC website, thanks to David Lisot. Closing out the afternoon was the announcement of the exhibit winners hosted by SPMC vice president Vandevender. The quality of the exhibits this year was again outstanding, and we thank all who participated. The names of the exhibit winners will be posted on the SPMC website soon. Saturday evening began with the SPMC Hall of Fame dinner, where we inducted five individuals this year. That was a very nice time. We finished the evening with more cards. This time I partnered with Cheryl. My team lost ? but it wasn?t my fault! I think this will become an annual tradition, as I have yet to prove my proficiency with bidding games. While this was going on, Glen picked up a note for me in the auction. The point of my summary is that if you come only to shop for notes and then go home, you?re missing a lot. There is so much more to this hobby than the notes themselves. While it did appear that this may have been an off year in terms of dealer attendance due to various reasons, many people I know did well and enjoyed the IPMS thoroughly. We are in waiting mode to see what Lyn Knight?s plans are for next year, but whatever they may be, I know I will be there. Shawn ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 297 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk?SPMC M_m\_rship Dir_]tor NEW MEMBERS 05/05/2019 14960 Bruce Pronovost, Robert Calderman 14961 Andrew Lydic, Joseph Crespo 14962 Dana Schneider, Website 14963 Craig Smith, Jason Bradford 14964 Randall Guynn, Frank Clark 14965 Scott Bruder, Robert Calderman 14966 Thomas Stillman, Website 14967 James Waters, ANA AD 14968 Marc Lane, ANA Ad 14969 Joseph Piento, ANA Ad 14970 Angela Emerson, Website 14971 Bill Williams, Pierre Fricke REINSTATEMENTS None LIFE MEMBERSHIPS None NEW MEMBERS 06/05/2019 14972 Jack Carpenter, Website 14973 Bill Souder, Frank Clark 14974 Mark Klein, ANA Ad 14975 Peter Goldberg, Website 14976 Harry Lumer, Paper Money Forum 14977 Joe Larson, Larry Adams 14978 Roger Piasecki, Frank Clark REINSTATEMENTS None LIFE MEMBERSHIPS None Dues Remittal Process Send dues directly to Robert Moon SPMC Treasurer 104 Chipping Ct Greenwood, SC 29649 The mailing label of each issue of Paper Money has the date your dues are due. Please remit them on time to avoid any missed issues. You may also pay your dues online at ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 298 Editor Sez Italy was great! But I did miss you in KC Hello and I hope you all had a good time at the IPMS in Kansas City. For the first time since 1984, I was not able to attend. It seems I was offered the chance of a 10-day, all-expense paid tour of Italy as the nurse for our high school choir. For some this was a no-brainer, but for me, the mere thought of missing an IPMS made it a very hard decision. In the end, I figured this was a once in a lifetime opportunity for me. I have to admit in retrospect, it was the right decision. We toured Venice, Verona, Florence, Sienna, Civita di Bagnoregio (no I did not make that up/down walk to Bagnoregio), Pompeii and Rome. I love history and the sights were incredible. We visited many cathedrals, basilicas and churches as well as museums and other sights including Romeo & Juliet?s balcony and Juliet?s statue in Verona. We did a gondola ride in Venice?kinda scary at how unstable it seemed, but we managed not to tip it over, even when the gondolier shook it to show us how steady it was! The paintings and sculptures were all unbelievable, especially the statues Michelangelo did including ?David.? Pompeii has always been a fascination for me but to see it with Vesuvius in the background was something else. It was covered in 18 feet of volcanic ash in 2 days! More amazing was what was left! One house we went into had the same types of plants in the garden (they actually excavated the roots and then figured out what they were and planted more of the same!) It also still had a mural showing the famous story of Actaeon seeing the goddess Diana bathing in a grotto and her turning him into a deer whereby his own dogs tore him apart. Simply amazing it has survived this long. Then, on to Rome. What a city. To see it was breathtaking, but the cr?me-de-la- cr?me was the Vatican. The Sistine Chapel is truly indescribable and St. Peter?s Basilica overwhelming. To see so many paintings, sculptures and final resting places of so many people like St. Peter, St. Paul, St. Catherine, Raphael, Michelangelo, etc. was hard to imagine. And looking out over St. Peter?s square that we have seen so many times, WOW! Those of you who know me well, know I am not an exercise nut and actually consider that a dirty word?but?I walked over 96,000 steps (42.3 miles) in nine days! My feet will never be the same! While I was soaking in the sights and history, there was a paper money show going on. From all reports, I hear it was a great one. Lyn did another outstanding job. I missed seeing all the people which is what I enjoy most. While it is increasingly harder to find new notes that I collect, the camaraderie is what is so special. The new exhibit program seemed to work out well and as usual exhibit chair Moon did a great job coordinating that program. The SPMC breakfast and Tom Bain Raffle was again a success despite the same sound issues at Harvey?s. Hopefully we will have this problem solved next year. Thank you to all of our authors and columnists for making 2018 such a successful year with Paper Money. I have entered us into both the ANA and NLG literary competitions and the winners will be announced in August at the ANA show. You will note two long articles in this issue by two new authors. I decided to put them in this one as they have been waiting a long while to get published. They are both very good articles. Also, Peter Huntoon and Doug Murray have an article that took them three trips to the National Archives and over a year to prepare. I encourage you to write an article for publication. I especially need 1- 3 page articles, but longer ones will be welcomed as well. Benny Texting and Driving?It can wait! O Romeo, Romeo, wherefore art thou Romeo? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 299 Minutes of the SPMC Board of Governors Meeting Saturday, June 15 Members Present: S. Hewitt, Pres., R. Vandervender, VP, R. Moon, Treasurer, J. Brueggeman, Membership Secretary/Librarian, F. Clark, Membership Director, R. Calderman, G. Dobbins, P. Fricke, Immediate Past Pres., L. Gatch, W. Wolka, M. Anderson, Recording Secretary Call to Order/Quorum Determination: A quorum having been determined as being present, Pres. Hewitt called the meeting to order at 8:00 a.m. Elections/Appointments: Pres. Hewitt reported that Governor Scacci has resigned his seat for personal reasons; his term was scheduled to expire in 2021. Also, Governor Brueggeman has relinquished his seat, which opens up an additional governor slot. Current governors Dobbins, Vandervender, and Jennings are up for re-election. S. Hewitt is also up for re-election of a two-year term as President. M Anderson moved for re-election of these governors and S. Hewitt as President. W. Wolka seconded, no discussion, unanimous. Pres. Hewitt reported on a new candidate for Governor, Mathew Draiss. Mr. Draiss is a NY area commercial numismatist who collects New York Nationals and has expressed interest in the SPMC?s mission and governance. We are informed he will soon be relocating to Patchogue, Long Island, to work for a retail coin dealer. Anderson moved for election; Wolka second. No discussion, unanimous. Pres. Hewitt also reported that while currently wrapping up a few activities and not inclined to join the board at the moment, William Litt has indicated his inclination to offer his candidacy in 2021. Reports/Old Business: ? Financial Report: ? R Moon cited results recently provided via e-mail to the Board for the 9 months ended 3/31/19, and reported that the Society remains in stable and solid financial condition. ? Operations for the past 2.5 months similarly stable, with no surprises. ? W. Wolka has recently remitted ad revenue, and a $1,000 check was cashed to provide award prizes for the new exhibit program. We remain in collection mode with respects to amounts due from PCGS. We are owed $2,025 for ads run in the 2017-18 fiscal year. Ads for the 2018-19 fiscal year have not yet been billed. ? This year?s Breakfast was a solid success; 62 attendees and six [paid] no-shows combined for $1,320 in ticket revenue. Raffle ticket sales proceeds were a record $1,325, for total revenue of $2,645. The restaurant gave us a discount due to sound system problems, so after expenses of $847, we cleared roughly $1,800. M Anderson cited the smooth assumption by G Dobbins of raffle responsibilities. Restaurant contact has agreed to work with SPMC and Union Station to move our event into a windowed space in the station for next year; this will cost us a ?few hundred? dollars, but all agreed this expense warranted based on our three years of poor experience with the restaurant?s sound system, Amtrak announcements, and the sound challenges of the open space. ? Membership Director?s Report: F. Clark reported that the website remains the top new membership producer for the SPMC [55 new memberships from May 16th, 2018 to May 20th, 2019]. The top individual [human] recruiter is Robert Calderman [23 new members for the period]. New membership activity [total of 172 new members] comparable to last year, but ANA ads are also ?clearly working.? Life members have climbed to 447, an increase of 11. ? Membership Secretary?s Report: J. Brueggeman opined that ?membership is maintaining.? Facebook is helping. Group engaged in discussion of Social Media channels and the value of posting pictures that highlight SPMC activities. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 300 ? Editor?s Report: M. Anderson, in absence of Editor Bolin, offered B. Bolin?s submitted report to wit: ? Paper Money still flourishing, with the help of regular authors and ? Editor Bolin continues to seek constructive criticism, ideas for other suitable content readers would like to see, areas for improvement, etc. ? 2018 had 6 issues, made up of 448 pages [not including the 4 pages of covers each issue], publishing 43 original articles by 22 different authors, in 259 pages of original articles and 97 column pages (does not including Society news). ? Financially, cost per issue remains fairly constant. ? Strong backlog of articles is maintaining, particularly 10+ page articles; 2 to 8 page articles are always needed. ? Paper Money for 2018 has been entered in American Numismatic Association "Best Specialty Publication" contest and NLG writing competitions. Results will be unveiled at the 2019 ANA in Chicago. ? The SPMC website is updated with latest edition of the journal - downloaded as soon as the first paper copies are mailed and Governor Gatch e-mails members via MailChimp when new issue is posted. ? W Wolka provided an advertising update, observing that based on current advertiser ranks, if all current advertisers renew, annual revenue of $27,800 can be anticipated. We have collected $20K of this amount to date. ? Marketing Committee: Committee: ? Chair G. Dobbins observed that relationship with ANA is really working well and he is very happy with what has been built. ? His conversations with CoinAge about a possible exchange of ads have ended for the moments [CoinAge has discontinued the conversation]. ? Unrelated to this, G Dobbins is interested in increasing his show representation activities, and respectfully requested that the Marketing Committee Chairpersonship be considered for re- assignment. ? Website Report: ? S. Hewitt reported that the SPMC website is stable, and has been since update of a year ago. ? The Bank Note History Project has been added to the many features available at the site, and a voting mechanism [for Governor election] may also be added. ? Member statistics by category [online only, paper only] were submitted for Junior, Regular [US, Canada & Mexico and Other], and Life [US, Canada & Mexico and Other] members. ? We are honoring 29 token redemptions for memberships provided under the PCGS program which have not yet been paid for. ? J Brueggeman offered that the site?s graphic ads are, in his view, effective and inexpensive. ? Website spending during fiscal 2019 [7/1/18 to 6/30/19] was $4,268. Of this, $2,267 went to maintenance and enhancements of the existing capabilities, and $2,001 for the Bank Note History project [$972 for website development and $1,029 to reimburse M Drengson for five years? worth of hosting]. ? Obsoletes Database Project Report: S. Hewitt reported continued progress. Data recently uploaded includes images from R Kaye and D Schafluetzel] and work on Michigan [J Robertson], Mississippi [J McClure], Connecticut [D Melnick], Iowa [S Hansen] New York [M Draiss] expected in the coming months. Other SEs [State Experts] will be adding images, and volunteers to process gallery images are solicited. Next, year, added data uploads, promotion of the site via Paper Money and other outlets, and exploration of a photo recognition app are anticipated. To date, the Society has invested $25,875 in this effort, but we are ?over the hump.? 2018-19 spend was zero, and there are no invoices pending. ? Report on ERO: Regarding his outreach project, L. Gatch led a discussion of how suitable paper money hobby videotapes [seminars, convention interviews, etc.] might be made accessible and promoted at the website. Quoted cost to us to utilize recent Lisot videotape of M. Drengson?s recent presentation on the Bank Note History project is $250. While not initially requested, discussion led to budget authorization of $1,000, ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 301 to be allocated by L Gatch to acquire and install suitable video content at SPMC website. Motion: Anderson, second Wolka, unanimous. ? Publications Committee Report: Committee Chair P. Fricke reported that while he has been in personal transitions over the last year or two [both in career and home relocation], there has been very little activity on the part of the committee. Publishing world has transitioned away from ?physical books? to e-alternatives. Committee is currently a committee of one; R Calderman and W Wolka volunteered to join and have been added. ? Report of SPMC Librarian: ? J. Brueggeman reported encountering some late book return issues, and welcomed the recent donation of the New Hampshire scrip book. ? L Gatch asked whether scanning [for addition to the library] important research materials should be considered. P Hewitt suggested this was an interesting idea and suggested L Gatch start with a suitable example for consideration and discussion. ? Report of Audit Committee: M. Anderson noted that M. Scacci?s recent departure from the Board has interrupted the reliable flow of this report. R Moon reported that he has requested from the Society?s bank all the usual confirmations and can supply them to the Board. M. Anderson to follow up. ? Report on Awards: VP Vandervender reported two new judges have been added to his ?team.? The new exhibit judging system adopted by the SPMC seems to be working well. After the 4 p.m. exhibit awards announcement ceremony we will know more. Awards from the Friday morning breakfast are being mailed to the recipients unable to attend the breakfast in person. ? Kansas City 2019 Exhibits: Exhibit Chair R Moon reported that despite a slow start, he was very pleased by the final tally and quality of exhibits and exhibitors. Several new players resulted in 18 exhibitors displaying 21 exhibits. ? Hall of Fame: M. Anderson has stepped in to assist with HoF activities; HoF banquet to be held this evening at Pierpont?s. Invitees include Board members and all living HoF members. This year?s class includes F.C.C. Boyd, Lyn Knight, J. Roy Pennell, Austin Sheheen, and George Wait. Austin is unable to attend the ceremony, due to flooding being experienced in his part of the country. New Business/Other: ? 2020 FUN Speakers Forum: This event - a first-ever in 2019 - was a big success and will be repeated in January 2020. R Moon to co-chair this year. ? In support of Lyn Knight?s continuing sponsorship of the IPMS, and most particularly, the substantial resources devoted to the educational aspects of the show, speaker?s forum, exhibits etc., the Board voted [motion Anderson, second Wolka, unanimous] a $1,000 stipend, unchanged from previous years. ? ANA Rosemont: The SPMC will have a club table at the bourse in August, and will hold a Saturday morning membership meeting. R Moon has details. We will also again sponsor Treasure Trivia; S Hewitt to source the traditional giveaway to junior table visitors. ? Upcoming Projects: P Hewitt noted that ANA has recently used some interesting new Marketing/Social Media initiatives to grow membership, which he would like to review to see if there are ideas for the SPMC to utilize. ? Nationals Anonymous: M Anderson noted that M Dougherty has for several years and at personal expense hosted an open discussion forum at each IPMS, focused primarily but not exclusively on National Bank Note collecting developments and practices. Insofar as this event is essentially educational in nature, M Anderson suggested that a supporting stipend in the amount of $100 might be suitably be paid to M Dougherty. Moved Wolka, seconded Moon, unanimous. ? At 9:59 a.m., there being no further business to attend to, a motion was made and seconded [Calderman, Wolka, unanimous] and the meeting was adjourned. ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 302 United States Paper Money specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type ErrorNotes Small Size Type National Currency StarorReplacementNotes Specimens, Proofs,Experimentals FrederickJ. Bart Bart,Inc. website: (586) 979-3400 POBox2? Roseville,MI 48066 e-mail: Buying & Selling ? Obsolete ? Confederate ? Colonial & Continental ? Fractional ? Large & Small U.S. Type Notes Vern Potter Currency & Collectibles Please visit our Website at Hundreds of Quality Notes Scanned, Attributed & Priced P.O. Box 10040 Torrance, CA 90505-0740 Phone: 310-326-0406 Email: Member ?PCDA ?SPMC ?FUN ?ANA WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277- 1779; 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. 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 WANTED: Republic of Texas ?Star? (1st issue) notes. Also ?Medallion? (3rd issue) notes. VF+. Serious Collector. BUYING ONLY $1 HAWAII OVERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. Vermont National Bank Notes for sale. For list contact. 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 . Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. 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 $ MoneyMart $? ___________________________________________________________Paper Money * July/Aug 2019* Whole No. 322_____________________________________________________________ 303 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 83/4 X 141/2 $23.00 $101.00 $177.00 $412.00 National Sheet--side open 81/2 X 171/2 $24.00 $108.00 $190.00 $421.00 Stock Certificate--end open 91/2 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 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 * July/Aug 2019* Whole No. 322_____________________________________________________________ 304 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 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: Bea Sanchez ? Secretary P.O. Box 44-2809 ? Miami, FL 33144-2809 (305) 264-1101 ? email: Heritage Numismatic Auctions, Inc. LSM0818768, Paul Minshull LSM0605473. BP 20%; see 12345 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 U.S. CURRENCY SIGNATURE? AUCTION September 4-9, 2019 | Long Beach | Live & Online Highlights from Our Official September Long Beach Auction Deadline to consign is July 15 Charlotte, NC - $5 Original Fr. 399 The Merchants & Farmers NB Ch. # 1781 PMG Choice Very Fine 35 From the Greensboro Collection Part X Visalia, CA - $5 1902 Plain Back Fr. 598 The First NB Ch. # (P)7063 PMG Very Fine 25 Kingsburg, CA - $50 1902 Date Back Fr. 669 The First NB Ch. # (P)8409 PMG Choice Very Fine 35 Salem, NC - $5 Original Fr. 397a First National Bank of Salem Ch. # 1659 PMG Very Fine 25 From the Greensboro Collection Part X Dinuba, CA - $20 1902 Plain Back Fr. 652 The First NB Ch. # (P)9158 PMG Very Fine 20 Lindsay, CA - $10 1902 Plain Back Fr. 627 The Lindsay NB Ch. # (P)9710 PMG Very Fine 25 Visit to view the catalog or place bids online. Contact a Heritage Consignment Director at 800-872-6467, Ext. 1001 or