official journal of The Society of Paper Money Collectors Title Block Layout Research by Doug Walcutt 1550 Scenic Avenue, Suite 150, Costa Mesa, CA 92626 • 800.458.4646 470 Park Avenue, New York, NY 10022 • 800.566.2580 Info@StacksBowers.com • StacksBowers.com California • New York • New Hampshire • Oklahoma • Hong Kong • Paris SBG PM ANA2021 FrameHL 210531 America’s Oldest and Most Accomplished Rare Coin Auctioneer LEGENDARY COLLECTIONS | LEGENDARY RESULTS | A LEGENDARY AUCTION FIRM Contact Us for More Information! 800.458.4646 West Coast 800.566.2580 East Coast Info@StacksBowers.com Exceedingly Rare American Bank Note Company Presentation Frame to be Offered in the Stack’s Bowers Galleries Official Auction for the ANA World’s Fair of Money® August 2021 • Rosemont, Illinois A remarkable numismatic treasure and possibly the only example available to collectors. This frame features proof notes from Argentina, Brazil, Canada, Chile, Colombia-Panama, Ecuador, Greece, Peru, Nova Scotia, and the United States 266 Title Block Layouts--Doug Walcutt Date Changes on Series 1907 Gold Certificates--Peter Huntoon Doty & Bergen--Obsolete Counterfeiters-Pt. II--Terry Bryan James Bond and His 1862 City Savings Assoc.--Bill Gunther Albert Lea--Frank Clark Danish & American National Banks in the Virgin Islands--Peter Huntoon 285 292 250 274 282 Paper Money * July/Aug 2021 * Whole No.334 245 Contents, Advertisers, Hall of Fame Columns Advertisers SPMC Hall of Fame The SPMC Hall of Fame recognizes and honors those individuals who  have made a lasting contribution to the society over the span of many years.  Charles Affleck Walter Allan Doug Ball Joseph Boling F.C.C. Boyd Michael Crabb Martin Delger William Donlon Roger Durand C. John Ferreri Milt Friedberg Robert Friedberg Len Glazer Nathan Gold Nathan Goldstein James Haxby John Herzog Gene Hessler John Hickman William Higgins Ruth Hill Peter Huntoon Don Kelly Lyn Knight Chet Krause Allen Mincho Judith Murphy Chuck O’Donnell Roy Pennell Albert Pick Fred Reed Matt Rothert Herb & Martha Schingoethe Hugh Shull Glenn Smedley Raphael Thian Daniel Valentine Louis Van Belkum George Wait D.C. Wismer From Your President Robert Vandevender 247 Editor Sez Benny Bolin 248 New Members Frank Clark 249 Uncoupled Joseph Boling & Fred Schwan 304 Chump Change Loren Gatch 309 Obsolete Corner Robert Gill 310 Quartermaster Column Michael McNeil 312 Jim's Smalls James Hodgson 315 Small Notes Jamie Yakes 316 Cherry Picker's Corner Robert Calderman 318 IFC 245 265 272 272 273 283 284 Stacks Bowers Galleries Pierre Fricke Lyn F. Knight DBR Currency Fred Bart PCGS Banknote Bob Laub Robert Whitmire Denly's of Boston 291 302 303 320 320 320 320 IBC Jim Ehrhadt ANA Michigan Scrip FCCB Vern Potter Higgins Museum PCDA Heritage Auctions OBC Fred Schwan Neil Shafer Paper Money * July/Aug 2021 * Whole No.334 246 Officers & Appointees ELECTED OFFICERS PRESIDENT Robert Vandevender II rvpaperman@aol.com VICE-PRES/SEC'Y Robert Calderman gacoins@earthlink.net TREASURER Robert Moon robertmoon@aol.com BOARD OF GOVERNORS Mark Anderson mbamba@aol.com Robert Calderman gacoins@earthlink.net Gary Dobbins g.dobbins@sbcglobal.net Matt Drais stockpicker12@aol.com Mark Drengson markd@step1software.com Pierre Fricke aaaaaaaaaaaapierrefricke@buyvintagemoney.com Loren Gatch lgatch@uco.edu William Litt Billlitt@aol.com J. Fred Maples maplesf@comcast.net Cody Regennitter cody.regennitter@gmail.com Wendell Wolka purduenut@aol.com Robert Vandervender II rvpaperman@aol.com APPOINTEES PUBLISHER-EDITOR Benny Bolin smcbb@sbcglobal.net ADVERTISING MANAGER Wendell Wolka purduenut@aol.com LEGAL COUNSEL Megan Reginnitter mreginnitter@iowafirm.com LIBRAIAN Jeff Brueggeman jeff@actioncurrency.com MEMBERSHIP DIRECTOR Frank Clark frank_clark@yahoo.com IMMEDIATE PAST PRESIDENT Shawn Hewitt WISMER BOOk PROJECT COORDINATOR Pierre Fricke From Your New President Robert Vandevender II From Your President Shawn Hewitt Paper Money * July/August 2020 6 I am honored to have been elected to serve as your new SPMC President. I would like to thank our Past President Shawn Hewitt for his expert leadership and guidance over the past four years. Our society has progressed nicely under his supervision and we have witnessed many significant accomplishments. Like many of you, I began my collecting career as a child with a blue Whitman coin folder and several Lincoln pennies. Routine weekend trips to a local flea market in Seminole Florida in the early 1970’s did result in the purchase of my first piece of currency, an Fr.859c 1914 $5 FRN note in VF condition. That note cost me just $12 in 1973 and surprisingly, I still own it! My transition to serious paper money collecting occurred in the early 1990’s leaving me well behind many of my newfound, and more seasoned, paper money collector friends. Our new Vice President, Robert Calderman, will have his hands full as he has agreed to continue serving as our Secretary with the added responsibility of being Vice President and administering the show Awards Program, a task taken over by the Vice President position four years ago. I am confident Robert will do a great job going forward and will no doubt continue to entertain and educate us with his column in Paper Money and occasional presentations about Cherry Picking notes! As we emerge from the challenge of Covid-19 we are beginning to see more and more shows return for face-to-face participation. Unfortunately, we were not able to have our annual breakfast meeting at the International Paper Money Show this year but the future looks bright with the hobby quickly returning to normal. The SPMC will be setting up a table at the upcoming ANA show in Chicago in August with several members having already volunteered to staff the table throughout the show. In addition, we plan to have a General Membership meeting at the ANA show on Saturday morning which will include award presentations. It also was recently announced that the Long Beach California Show will proceed starting on September 30th and I am planning on attending that show as well. We are also planning on having an SPMC presence at the South Carolina Numismatic Associations SCNA 49th Annual Convention in October at the Greenville, SC Convention Center As many of you may be aware, this year marks the 60th Anniversary of the Society of Paper Money Collectors. Our anniversary also coincides with the 60th Anniversary of the International Bank Note Society. We are currently exploring options for having a joint recognition event for this milestone. More to come on this topic. Efforts with the Obsoletes Database Project (ODP) will continue and we are actively seeking members who would like to participate and contribute to that effort. Several SPMC members are also working to create an index of Paper Money magazine articles since the beginning of the society. We plan to make that index available to all members to help in research efforts. Based on the success of the previous Zoom-based Membership meeting and speaker event we held last February, our Board members will be looking forward to scheduling another event along that format to provide better access to speakers for those members who cannot otherwise attend at the various shows. On social media, I have found at least seven different quality Facebook groups devoted to various types of currency collecting. The participants range from very experienced collectors to new beginners often only concerned about the potential worth of an item. Hopefully, some of these participants will find their way into membership with the SPMC. My long-time friend, Jim Hodgson, often posts items on social media with a scan of a note followed by a brief description of what is special about it. Jim has agreed to provide those items to our highly esteemed Paper Money magazine editor, Benny Bolin, for publication in future issues. I would like to congratulate Past President Pierre Fricke for having been awarded the Whitman Publishing “Official Red Book Contributor” award and pin for his contribution to the 2021 Seventy-Fifth Edition of the Red Book. In closing, I am very excited about what the future holds for both our hobby and the growth of the Society of Paper Money Collectors! Paper Money * July/Aug 2021 * Whole No.334 247 Terms and Conditions The Society of Paper Money Collectors (SPMC) P.O. Box 7055, Gainesville, GA 30504, publishes PAPER MONEY (USPS 00-3162) every other month beginning in January. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Robert Calderman, Box 7055, Gainesville, GA 30504. ©Society of Paper Money Collectors, Inc. 2020. All rights reserved. Reproduction of any article in whole or part without written approval is prohibited. Individual copies of this issue of PAPER MONEY are available from the secretary for $8 postpaid. Send changes of address, inquiries concerning non - delivery and requests for additional copies of this issue to the secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the editor. Accepted manuscripts will be published as soon as possible, however publication in a specific issue cannot be guaranteed. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be submitted in WORD format via email (smcbb@sbcglobal.net) or by sending memory stick/disk to the editor. Scans should be grayscale or color JPEGs at 300 dpi. Color illustrations may be changed to grayscale at the discretion of the editor. Do not send items of value. Manuscripts are submitted with copyright release of the author to the editor for duplication and printing as needed. ADVERTISING All advertising on space available basis. Copy/correspondence should be sent to editor. All advertising is pay in advance. Ads are on a “good faith” basis. Terms are “Until Forbid.” Ads are Run of Press (ROP) unless accepted on a premium contract basis. Limited premium space/rates available. To keep rates to a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability, copy must be received by the editor no later than the first day of the month preceding the cover date of the issue (i.e. Feb. 1 for the March/April issue). Camera-ready art or electronic ads in pdf format are required. ADVERTISING RATES Space 1 Time 3 Times 6 Times Full color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page color 500 1500 3000 Full page B&W 360 1000 1800 Half-page B&W 180 500 900 Quarter-page B&W 90 250 450 Eighth-page B&W 45 125 225 Required file submission format is composite PDF v1.3 (Acrobat 4.0 compatible). If possible, submitted files should conform to ISO 15930-1: 2001 PDF/X-1a file format standard. Non- standard, application, or native file formats are not acceptable. Page size: must conform to specified publication trim size. Page bleed: must extend minimum 1/8” beyond trim for page head, foot, and front. Safety margin: type and other non-bleed content must clear trim by minimum 1/2” Advertising copy shall be restricted to paper currency, allied numismatic material, publications and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable or inappropriate material or edit copy. The SPMC assumes no financial responsibility for typographical errors in ads but agrees to reprint that portion of an ad in which a typographical error occurs. Editor Sez Benny Bolin Benny Well, the dog days of summer are here again. We went from a daily deluge in Texas one day to no rain and massive heat the next. I know many people are suffering the same heat so I hope all stay safe and cool this summer--maybe in an air-conditioned venue like at a show. Yes, it seems shows are coming back. While many smaller venues have been making a comeback for a while, larger regional and now national shows seem to be as well. As you read this, barring any new threats from that old COVID-19 monster, summer FUN is about to get underway. Looks to have all the markings of a large show and a great one at that. Be on the lookout for SPMC governors and officers and stop them and say hi! The SPMC will also be having a table, awards presentations, etc., all the IPMS stuff at the August ANA. I recently attended the Texas Numismatic Show in Arlington and it was great. Many dealers, lots of participants and not a whole lot of restrictions. I was one of the judges for Paper Money exhibits and it was a lot of fun. I would have preferred to have place an exhibit(s) but it was not in the cards (more on that later). Lots of selling going on but many dealers were telling me that buying was more difficult. As is our normal this time of every biennial, we term-limited out the SPMC President, Mr. Hewitt and welcomed a new president, Mr. VP Vandevender. Please read his column and get to know him. I know that wonderful and exciting things exist for his tenure. I have been getting a dose of how inefficient my own profession (medicine) is and not in a COVID way. Seems my wife had to have her aortic valve replaced, but it took a little over three months to navigate through the CYA of the MDs. She finally had it done on June 16 and is doing well, but WOW--my profession needs an overhaul! So, I apologize if I have been hard to reach, but it has been an incredibly trying time. This is the 60th year of the SPMC and I hope to have the Nov/Dec issue of PaperMoney reflect this, especially the last ten years. We had a 50th update in 2011 so I hope to be able to put forth the same updates as before. Please remember to vote for our articles and ODB registry sets as soon as you can. Voting for article/columns/books ends July 5 and for ODB sets July 15. As always, make yourself an asset to the hobby and do the one thing you can always do if you are staying home--write an article for Paper Money! I especially need articles in the 1-4 page length so go for it and see you name glow in lights!!! Paper Money * July/Aug 2021 * Whole No.334 248 The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show. Information about the SPMC, including the by- laws and activities can be found at our website-- www.spmc.org. The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitablereferences. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. A parent or guardian must sign their application. 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 www.spmc.org or by check/money order sent to the secretary. WELCOME TO OUR  NEW  MEMBERS! BY FRANK CLARK SPMC MEMBERSHIP Director NEW MEMBERS 05/05/2021 15275 Paul Whaley, Frank Clark 15276 Mack Martin, Robert Calderman 15277 Scott Streit, Tom Denly 15278 Raymond Himel, Don Kelly 15279 Mike Bunyon, ANA Ad 15280 Steven Sabel, Robert Calderman 15281 Clay McCrackin, Robert C. 15282 John Bertrand, Website 15283 Zachary Martin, Facebook 15284 Patrick Miceli, Website 15285 Mathew Mingey, Website 15286 Philip Thomas, Website 15287 David Carroll, Tom Denly 15288 Michael Powers, Website REINSTATEMENTS None LIFE MEMBERSHIPS LM455 Thomas Stillman, Website LM456 W. David Melnik, Website NEW MEMBERS 06/05/2021 15289 Christopher Cimino, Website 15290 John Foster, Website 15291 Patrick Dupuis, Website 15292 Patrick A. Smith, Tom Denly 15293 Mark Scholes, Website 15294 James Boughan, Tom Denly 15295 Lee Wallis, Robert Calderman REINSTATEMENTS None LIFE MEMBERSHIPS None Dues Remittal Process Send dues to Robert Moon SPMC Treasurer 104 Chipping Ct, Greenwood, SC 29649 Refer to your mailing label for when your dues are due. You may also pay your dues online at www.spmc.org. Paper Money * July/Aug 2021 * Whole No.334 249 $5 Series of 1882 National Bank Note Title Block Layouts INTRODUCTION Perhaps the most beloved Federal paper money issues are the beautiful Series of 1882 $5 brown backs with their limitless, often spectacular, bank title block layouts. Distinctive styles of layouts emerged over the 40 years during which the series was current, some short-lived, some overlapping, some on again- off again, and others quite persistent. The purpose of this article is to illustrate the various groups that emerged, identify their defining characteristics, and pinpoint when they were used. Bank officers did not select the layouts used on their notes. Rather, that decision was made by the personnel at the Bureau of Engraving and Printing. ORGANIZATION BEHIND THIS CLASSIFICATION Title blocks tend to self-organize into groups based on some dominant visual feature. Each of these groups usually represents notes from a specific era. The curious fact is that the dominant feature defining one group often is not the same as for another group. Consequently, the criteria used to define groups in this classification scheme change as we move through time (Walcutt, 1999a,b). The plates made between 1882 and the 1890s generally group according to distinctive-looking payment clauses. The payment clause became standardized from the 1890s forward, so the visually distinguishing feature first became the font used to spell National Bank, and later the font used to spell Five Dollars. One of the incentives for splitting these latter groups out was the sizable number of plates made in each. Certain title layouts are so distinctive they demand their own categories. Examples include the three types of circus posters, Princesses Leia and shingled layouts. The seventeen groups that are defined here are numbered in the order in which they were first introduced. Group 1—Patented Lettering The earliest $5 layouts, used between 1882 and mid-1885, were made using a patented lettering process. In this process, engravers engraved numerous alphabets, each consisting of letters of the same style and same size. Those letters were taken up individually on transfer rolls and then were laid-in one at a time onto title block dies to spell out text on title blocks. Some of these library alphabets consisted of letters with very elaborate designs made in some cases by superimposing the individual letters onto a common engraved background that was replicated from a hand engraving or a rosette made on a geometric lathe. The backgrounds with their superimposed letters were then taken up on the transfer roll. In other cases, plain letters were laid-in to the title blocks and shading or other embellishments were added. Individual letters also could be and were laid-in onto previously laid-in blank tombstones. The primary distinguishing features on these notes are: (1) a will pay clause that is identical to the one found on Original Series and Series of 1875 $5s, and (2) quaint-looking lettering. There is no end to the styles of letters found within the title blocks on these notes, some of which are grandly elegant, others utilitarian. In fact, there even appears to be at least twenty different renderings of FIVE DOLLARS on these plates, because those letters also were laid-in using the same technology. The Paper Column Doug Walcutt Paper Money * July/Aug 2021 * Whole No.334 250 Figure 1. Patented Lettering. The distinguishing features are the payment clause that is a direct copy from the $5 Original/1875 notes and patented letter fonts used in the title blocks. There are innumerable styles for FIVE DOLLARS. National Numismatic Collection, Smithsonian Institution photos. Paper Money * July/Aug 2021 * Whole No.334 251 At least 1,000 banks received group 1 notes. These designs were attacked as inartistic and mechanical by Bureau critics. Consequently, Bureau personnel made replacement plates utilizing more artistic layouts for many of the group 1 plates as workloads permitted. However, in an interesting twist, layouts for some new and extending banks in the 1890-3 period used parts of group 1 layouts borrowed from the 1882-5 period. The latter are distinguishable because they Figure 2. Recycled Original Series Layouts. Distinguishing features are title blocks from Original Series rolls complete with the same payment clause (New York), or heavily borrowed title block elements from Original Series rolls (Philadelphia). National Numismatic Collection, Smithsonian Institution photos. Paper Money * July/Aug 2021 * Whole No.334 252 have in-line Treasury signatures, and 1890s plate dates. Patented lettered layouts are avidly sought because they have a Victorian look. One could form a spectacular collection using only notes from this group because the variations are endless. Only a few are shown owing to space limitations. Group 2—Recycled Original Series Layouts Most extending banks received $5 Series of 1882 layouts that were identical to those on their Original Series notes beginning in 1884 and through 1885, with the slight exception that the font used for the word “The” in the bank name often was changed. Reuse of the dies and rolls from the earlier series was driven primarily by criticism fomented by the bank note companies over the use of patented lettering processes and possibly the crush of extensions during that period. How could the bank note companies be critical if their own engravings were used for the 1882 title blocks? The distinguishing feature of group 2 notes is that the title blocks are virtually identical to those found on the Original Series and Series of 1875 issues from the bank, complete down to the will pay line. Recycling of Original Series rolls occurred again in 1887-8 and 1890-5. The affected plates also used the Original Series will pay line. Those of 1887-8 vintage represent delayed orders for the $5 combination from banks that were extended in 1885. The 1890-5 vintage plates were made for both new and extending banks. Often on these, recyclable parts from Original Series layouts, rather than the whole, were used to build the title blocks. One of the most astonishing examples is the one shown for The National New Haven Bank, New Haven, Connecticut Figure 3. In this unusual situation, “New Haven Bank” was borrowed in 1895 from the $10 and higher Original Series title blocks. The same item was used to make the 10-10-10-20 Series of 1882 plate for the bank in 1885. National Numismatic Collection, Smithsonian Institution photos. Paper Money * July/Aug 2021 * Whole No.334 253 (1243), prepared in 1895. In this instance, the lettering in New Haven Bank was borrowed from the Original Series 10-10-10-20 and 50-100 plates made for the bank in 1865, using rolls made by the American Bank Note Company. Figure 4. Artistic. Distinguishing features are the generic-looking payment clause and raised shaded letters used in FIVE DOLLARS. This title block layout was adopted as the series standard after the turn of the century. The style with the town in a tombstone, became widely used. National Numismatic Collection, Smithsonian Institution photos. Paper Money * July/Aug 2021 * Whole No.334 254 Group 3—Artistic-Ultimate Series Standard A new and quite different style of title layout and payment clause began to appear at the end of 1885. Bureau personnel considered it to be one of their more artistic creations; however, its use was suspended in mid-1887 when even more elaborate layouts were developed. It was resurrected in the 1890s after a hiatus of about three years and adopted as the exclusive series standard on new plates after the turn of the century. Notes from this group began to take on a rather staid appearance. The distinguishing feature on these notes is: (1) the will pay clause utilizes generic-looking hollow white raised capital letters arranged in a horizontal line, and (2) FIVE DOLLARS uses raised rather plain, wide and shaded letters. The embedding of the town in a tombstone became increasingly commonplace in the 1890s. Group 4—Circus Poster-1 The first circus posters appeared in December 1886, and were used sporadically through mid-1888. A number of the circus poster-1 plates made in and after 1887 replaced inartistic group 1 plates. CP1 was used on the plates for 46 banks. The defining characteristic of all circus poster layouts is the sweeping banner containing the words National Bank above the tombstone. Features specific to Circus Poster-1 layouts are the elegant tombstone containing the town, the cap above containing “of” along with distinctive internal decorations, and, most importantly, the will pay line with “Will Pay/the Bearer/on Demand” in three evenly stacked, downward bowed lines to the left of the ornate rendering of “Five Dollars.” Figure 5. Comparison between the three types of circus poster layouts. The defining feature of a circus poster layout is the banner containing “National Bank.” The distinguishing feature between the varieties is the “Will Pay”. Figure 6. Circus Poster-1. Key distinguishing feature when compared to other circus posters is the evenly stacked Will Pay/the Bearer/on Demand below the tombstone. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 255 Group 5—Princess Leia This group derives its name from the spectacular embellishments on the ends of the tombstone that resemble Princess Leia’s coiled hair in the Star Wars movies. The wording, WILL PAY TO THE BEARER ON DEMAND, is unique to this layout for the 1882 series $5s. The Princess Leia layout appeared on the plates for four banks between December 1886 and January 1887. All have the Bureau imprint in the upper right corner, in-out plate letters, and white charter numbers. In-line signatures were adopted as the standard during the period when plates in this group were made, so all have them. The Princess Leia layout was used on Dodge City, Kansas (3596), Phillipsburg, Kansas (3601), Cincinnati, Ohio (3606) and Sheffield, Alabama (3617). Group 6—Two-line Payment Clause The distinguishing feature of group 6 notes is the two-line payment clause WILL PAY/THE BEARER ON DEMAND that is found only under bank names that end in NATIONAL BANK. The layout is found on only a few plates prepared during 1887 and 1888, including some replacement plates. The Figure 7. Princess Leia. Aside from the distinctive tombstone, this is the only $5 Series of 1882 layout with a payment clause reading: WILL PAY TO THE BEARER ON DEMAND. National Numismatic Collection, Smithsonian Institution photo. Figure 8. Two-line Payment Clause. Distinguishing feature is the two-line payment clause WILL PAY/THE BEARER ON DEMAND that is found only under bank names that end in NATIONAL BANK. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 256 replacements supplanted inartistic group 1 plates. There are two varieties for the lettering in the will pay clause. One exhibits generic-looking white letters similar to those on group 3 notes, the other has slightly larger letters that appear dark and contain closely spaced horizontal lines. Group 7—Script Payment Clause The distinguishing feature of group 7 notes is the horizontal payment clause written in script letters. Group 7 plates were used between early-1887 and mid-1888 to replace many inartistic group 1 plates. Group 8—Cigar Box Label-1 Cigar box label-1 and 2 were used for almost all plates produced from mid-1888 to early-1890. The lettering throughout usually consists of bold, black, raised letters that have a dense and ponderous appearance. The Bureau engravers occasionally attempted to soften the appearance of these weighty layouts by using white letters for selected words, such as “The” and the town name on St. Marys, Ohio (4219), or even sparingly mixing in some white and shaded words, as on the plate for Huntsville, Texas (4208). These accommodations helped to blunt the general starkness of the designs. Cigar box label-1 is distinguished from 2 by having WILL PAY above a down-bowed FIVE Figure 9. Script Payment Clause. Distinguishing feature is the script payment clause. National Numismatic Collection, Smithsonian Institution photo. Figure 10. Cigar Box Label-1. Distinguishing features are the uniformly heavy black raised letters, and WILL PAY above a down-bowed FIVE DOLLARS followed by a split “to bearer/on demand.” National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 257 DOLLARS, followed by a split “to bearer/on demand.” Group 9—Cigar Box Label-2 Cigar box label-2 is a variant of the cigar box label design in which WILL PAY/TO BEARER ON DEMAND appears in two horizontal lines above a horizontal FIVE DOLLARS. It was used exclusively for bank names that end with the words National Bank, the same as group 6. Group 10—Circus Poster-2 Circus poster-2 layouts were used during the first third of 1894. This variant is distinguished from the other circus posters by having a simplified payment clause that has wording unique to this variety and group 15. “Will pay FIVE DOLLARS to Bearer” appears in a horizontal line, with a curved “on demand” centered below. The will pay clause has the same wording as on the $10s. The National Bank banner was preserved, being the most distinctive feature on the circus poster layouts, but with an added candlestick-like embellishment to its right. The word “of” was removed from the cap above the tombstone, and the cap was filled with uniform vertical lines. The “of” appears within a Figure 11. Cigar Box Label-2. Distinguishing features are the uniformly heavy black raised letters, and two-line will pay clause. Contrast this with Cigar Box Label-1 (Group 8). National Numismatic Collection, Smithsonian Institution photo. Figure 12. Circus Poster-2. Key distinguishing feature when compared to other circus posters is the simplified one line will pay clause. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 258 sheaf of wheat to the left, and is easier to read than on CP1. The FIVE DOLLARS is the same as used on groups 6 and 7. The simplicity of the will pay clause causes some to call CP2 the poor man’s circus poster. CP2 was used for Charlotte, North Carolina (2135), Martinsburg, West Virginia (2144), Fitchburg, Massachusetts (2153) and Belleville, Kansas (3779). Group 11—Baroque National Bank Plates with a distinctive baroque font for spelling National Bank appeared in the mid-1890s, probably beginning in 1894. The distinguishing features of the font are the pointed flairs in the letters. This variety is a subset of group 3 because it utilizes the generic payment clause and same FIVE DOLLARS. The notes come with or without the city in a tombstone, usually with shaded and/or fancy letters. This is also the earliest group where the layouts prepared for the $5s are nearly identical to those used on the higher denominations for the same bank. Figure 13. Baroque National Bank. Distinguishing feature is the baroque font with its pointed flairs used to spell National Bank. National Numismatic Collection, Smithsonian Institution photo. Figure 14. To Bearer. Distinguishing feature is the identical “Will Pay FIVE DOLLARS to Bearer” as found on Circus Poster-2 (Group 10). National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 259 Group 12—To Bearer This odd layout uses a payment clause lifted directly from Circus Poster-2; specifically, “Will pay FIVE DOLLARS to Bearer” appears in a horizontal line, and a curved “on demand” is centered below. The rest of the layout is unremarkable. The only known example is from The Jenkintown National Bank, Pennsylvania (2249), made in 1895. Group 13—Circus Poster-3 Circus Poster-3 is similar to CP1 but is distinguished by the elegant shingled three-line engraving of Will Pay/the Bearer/on Demand. “Of” was moved to a conspicuous position to the right of the National Bank banner, allowing the cap above the tombstone to be all but eliminated and the tombstone to rise. The only plate of this type was prepared for The Live Stock National Bank of Sioux City, Iowa (5022), certified November 18, 1895. Group 14—Shingled Layout A few plates with a spectacular shingled presentation of the bank title were made during a one-year period spanning March 1896 to March 1897. This group uses the same generic payment clause as group 3. Figure 15. Circus Poster-3. Key distinguishing feature when compared to other circus posters is the shingled Will Pay/the Bearer/on Demand below the tombstone. National Numismatic Collection, Smithsonian Institution photo. Figure 16. Shingled Layout. Distinguishing feature is the elegant shingling of the words in the bank name above the tombstone. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 260 The variety occurs on Morristown, New Jersey (1113), New York, New York (4898) and McDonald, Pennsylvania (5058). The most readily obtainable of the three comes in the form of counterfeits on Morristown. Group 15—Elegant National Bank of The distinguishing feature of this group is the font used to engrave NATIONAL BANK OF. Some of the letters have a distinctive rounding, and the spiked cross member in the A is also definitive. Although the letters come in different widths, they are uniform in height. These plates appeared in the mid-1890s, probably beginning in 1895. These notes use the generic payment clause. FIVE DOLLARS is spelled using the same letters as on group 3 or the narrower letters with a diagonal crossbar in the A as on group 16. Title layouts with this NATIONAL BANK OF were also used on some higher denomination Series of 1882 notes, and some Series of 1902 notes. The NATIONAL was lifted for use in other $5 title layouts as well. Figure 17. Elegant National Bank Of. Distinguishing feature is the font used for NATIONAL BANK OF where some letters have a distinctive rounding, and the A has a spiked cross member. National Numismatic Collection, Smithsonian Institution photo. Figure 18. Narrow Five Dollars. Distinctive feature is the raised FIVE DOLLARS made from narrow letters with a diagonal crossbar in the A. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 261 Group 16—Narrow Five Dollars The definitive characteristic of notes from this group is the raised FIVE DOLLARS made from narrow letters with a diagonal crossbar in the A. Otherwise the notes are similar to group 3. The plates were made from the mid-1890s to the early-1900s. This style is also found on some replacement plates for banks whose preceding plates bore an earlier style layout. Group 17—Borrowed early Five Dollars Group 17 plates, prepared in the late-1890s and early-1900s, utilize the distinctive fancy FIVE DOLLARS found on notes from groups 6, 7, 10 and 12. Group 16 notes usually have rather plain title layouts that are similar to or the same as those found on the Series of 1902. Group 3 was adopted as the series standard once group 17 had run its course. $5 PAYMENT CLAUSES Four different will pay clauses were used on $5 Series of 1882 plates as follows. Clause Group Will pay the bearer on demand 1-4, 6-7, 11, 13-17 Will pay five dollars to bearer on demand 8, 10, 12 Will pay to bearer on demand 9 Will pay to the bearer on demand 5 DOUG WALCUTT Doug Walcutt died of heart failure January 3, 2001, while registering at the FUN Show in Orlando, Florida. He was 64. Those of us who were accompanying him had never seen him so excited to attend a show. One reason was that his expertise in national bank notes was being recognized publicly in more ways than one at the show. He recently had been designated a Smithsonian volunteer and in that capacity was going to help man the Smithsonian exhibit of prized BEP certified proofs, including unreported Florida nationals, that was brought to the show. He also was to be the keynote speaker at a joint SPMC/Currency Club of Long Island meeting where he was going to present his newest and favorite slide presentation with Bob Kvederas entitled Interesting Pairs. It featured pairs of nationals that contrasted varieties, drew connections or showcased peculiarities. Doug is best known for his long running series of articles on national bank note varieties in The Rag Picker. His series began in 1995, was loaded with photographs and treated varieties that were very popular with collectors. Part 27, the last of this series, appeared posthumously in the April, May, June 2001, issue. This work totaled just under 450 pages. Figure 19. Borrowed Early Five Dollars. Distinctive feature is the fancy FIVE DOLLARS found on notes from groups 6, 7, 10 and 12. National Numismatic Collection, Smithsonian Institution photo. Paper Money * July/Aug 2021 * Whole No.334 262 One of his primary contributions was his exhaustive study of the vignettes used on Original Series and Series of 1875 notes. He was equally fascinated with the almost infinite design variations on the Series of 1882 notes, especially the brown backs. His work on the Series of 1882 $5s revealed that there was an evolution in the designs as the series wore on such as the title blocks summarized here. He particularly enjoyed finding esoteric firsts and lasts. A good example was bracketing the first and last banks to receive the unusual charter number over seal variety on $1 and $2 Original Series notes printed during May and June, 1874. Doug’s close friend Bob Kvederas Sr. worked with him on his research on the BEP proofs at the Smithsonian Institution, and helped with the preparation of his articles and presentations. Kvederas was the consummate editor, winning an award for his aid to Doug from the Paper Money Collectors of Michigan at Memphis in 2000. Doug was particularly active in the Currency Club of Chester County, where he was a past vice president, and the Currency Club of Long Island where he was vice president at the time of his death. He was a long-time member of the Currency Club of New England, Fairfield County Numismatic Association, and Paper Money Collectors of Michigan. He was a life member of the Society of Paper Money Collectors as well. He presented informative slide shows on national bank notes at every opportunity. What astonished anyone who knew him was his memory for detail and for numbers. A little-known fact was that he was a math/numbers savant. His sister related that when he was a child, his parents repeatedly asking him what he wanted in the way of toys. He kept responding that what he really wanted was a notebook. Finally, his mother caved and gave him a small one and a pencil that would fit in his shirt pocket. Days went by as he faithfully carried it as he wandered around his neighborhood in New York City. Curious, his mother finally looked at it, and found that its pages were covered with tables of numbers. When she asked what they were, Doug just shrugged and said “numbers.” Their meaning was soon revealed. Doug would watch the trains go by as the family waited in subway stations, and he would make off handed comments such as “the 105 is ten minutes late” or “the 86 should be coming in three minutes.” He had mapped out the timetables for all the trains in the stations that were within his reach. He wasn’t in school yet. When he was enrolled in the first grade, his mother advised the teachers that he probably should be put in an advanced math section. They didn’t take this seriously until with a little experience they found that he excelled in math, but was bored by its pace. Finally. to pacify his mother and keep him engaged, they stuck him in the six-grade math class for the last part of the year, probably figuring that would overwhelm him but at least keep him out of their hair. He was, of course, in over his head, but he quietly soaked up what was coming his way and read the math text book at night. At the end of the term, he astonished everyone by earning the highest score on the final exam. He went on to win a national merit award in high school, which led to a General Motors fellowship in engineering at the University of Wisconsin. Engineering didn’t resonate with him so he dropped out of Wisconsin, did a stint in the army in a topographical engineering unit, and returned to Lake Carmel, New York, where he operated a land surveying business. That work involved numbers and mathematical relationships that he particularly enjoyed. His numismatic compatriot, Bob Kvederas, became aware of Doug’s abilities, and used to challenge him by handing him the bill at some numismatic communal feed and requesting that he divide the tab among the several present. When Doug would reach for his calculator, Bob would admonish him to Figure 20. Doug Walcutt. Paper Money * July/Aug 2021 * Whole No.334 263 do it in his head. Within seconds, he would spill out the numbers, which included each person’s share of the tab including the tax and tip to the penny. I (Huntoon) had the opportunity to travel from Washington, DC, to a meeting of the Currency Club of Chester County in Pennsylvania with Walcutt and Kvederas. They drove me nuts with ceaseless chatter about times and distances, making comparisons with tables of times and distances from previous trips over the same ground, and compiling new data as we went. Much of the conversation revolved around things like being two minutes early for this intersection, eight minutes late on the whole trip, etc. What was amazing is that the tables of numbers from every one of their past trips were filed somewhere in the disorganized mass of papers that were overwhelming the interior and trunk of Doug=s old car. He never threw out a piece of paper—not in his car or at home—not even a McDonald wrapper because there probably was something written on it, or it marked the right layer where something of importance was secreted away. Doug drove an urban assault vehicle, a 17-year old Ford Crown Victoria, that he could barely afford to keep running because paper money consumed every cent he could lay his hands on. Paper money, especially national bank notes, was an obsession with Doug. He started out in coins but as the paper bug bit, he liquidated his choice coin holdings and reinvested in paper. If something pertaining to a national bank note caught his fancy, he would dog it until he figured it out. There are no ends to the examples I could give you, but one of the last that still amazes me epitomizes his gifts. He got interested in exactly when the last geographical letters were printed on Series of 1902 national bank notes. I had figured the cutoff shipments for the last use of the things by noticing when the Comptroller’s clerks had stopped writing the letters next to entries in their receipts ledgers. This seemed definitive, so I packaged the changeover data in a table in my 1985 book and forgot about it. But Doug memorized the Treasury serials I listed for all the sheet combinations, and started looking for notes that he could collect to bracket the changeovers. He soon found that my picks were not too hot. For a couple of years before he died, I would get periodic calls from him with data he collected from auctions or at shows that zeroed in on the right changeover serials. He and I were at the 2000 Memphis show where he looked at everyone’s stock for notes printed during the changeover. I figured that was looking for a needle in a haystack. By the time I left the show to go on to DC, he had found no less than three notes that closed the gaps. He wanted me to check his new serials against the receipts ledgers to see just how well he had done. A few days later I was able to call from the National Archives to tell him that a couple of the bracketing serials he had found at Memphis had converged on the exact day of the last shipments with the letters. He retained all the needed information such as N23445H was on a note he saw from The First National Bank of Batavia, Ohio (715), which turned out to be delivered in the last shipment of 10-10-10-20s with geographic letters on March 8, 1924. Don’t forget, he was working a dozen other interests at the same time, each with their own serial numbers or esoteric plate varieties. This was done all without much in the way of notes other than a key fact written here or there on some scrap of paper stuffed in his bursting wallet. Doug was a valuable collaborator. We both were interested in the reasons behind national bank note varieties, so we developed a good comradery playing off on each other’s enthusiasm and strengths to solve the mysteries. He wasn’t one of those guys who figures something out and secrets the information away in order to have some perceived competitive advantage. We coauthored articles when we plowed the same ground because we got down the road further and faster by working together than we ever could alone. Doug had an enormous drive to get his ideas out to other collectors. His series of articles in The Rag Picker are a monument to that determination. He just about finished publishing everything he found important in large size national bank notes before he died. We are richer for his enthusiasm and his efforts. REFERENCES CITED AND SOURCES OF DATA Bureau of Engraving and Printing, 1875-1929, Certified proofs of national bank note face and back plates: National Numismatic Collections, Museum of American History, Smithsonian Institution, Washington, DC. Walcutt, Doug, 1999a, Varieties of national bank notes, part 23: The Rag Picker, Paper Money Collectors of Michigan, v. 34, no. 3, p. 19-40. Walcutt, Doug, 1999b, Varieties of national bank notes, part 23 continued: The Rag Picker, Paper Money Collectors of Michigan, v. 34, no. 4, p. 16-38. Paper Money * July/Aug 2021 * Whole No.334 264 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: lyn@lynknight.com - support@lynknight.c om Whether you’re buying or selling, visit our website: www.lynknight.com Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency Act Authorization Date Change on Series of 1907 $10 Gold Certificates Overview and Purpose Series of 1907 $10 notes carry an act authorization date that was part of the intaglio face plates. It appears in fine print above the orange X overprinted on the left side of the faces. The act date was changed in January, 1913, from July 14, 1882, to March 4, 1907. This article will explain the reason for the change and the varieties that came about. The change was made during the period when plates bearing both the Napier-McClung and Napier-Thompson Treasury signature combinations were being made and while the two combinations were in simultaneous production. The Napier-McClung/Napier-Thompson era under consideration comprises the most interesting and complex period in the production history of the $10 Series of 1907 gold certificates, not only in terms of the varieties that were created but also the nuances attending their manufacture. Gold Certificate Authorizations Section 12 buried in the Act of July 12, 1882, that otherwise provided for a first 20-year corporate extension of national banks, was the foot in the door for the hard money Republicans to move the country toward a gold standard. Section 12 authorized the issuance of gold certificates, a compromise attached to the bill that won sufficient Republican votes to allow it to pass. The hard money faction, which spoke primarily for the interests of the eastern moneyed establishment, considered national bank currency to be soft inflationary money because it was backed by The Paper Column Peter Huntoon Doug Murray Figure 1. Series of 1907 $10 Napier-Thompson gold certificates with an act authorization date of July 12, 1882, above the large orange X. The act was changed to March 4, 1907, beginning in January, 1913, because the 1907 act authorized the use of $10 gold certificates for the first time in U. S. history. Don’t confuse the act date with the series date that appears under each serial number. Heritage Auction archives photo. Paper Money * July/Aug 2021 * Whole No.334 266 and redeemable in legal tender notes, which were nothing more than fiat money representing circulating Civil War debt. Mostly western and southern interests favored legal tender currency and national bank notes because they felt the lack of availability of money constrained their largely agrarian economies, thus driving up interest rates that benefited eastern bankers. Tension over this issue had raged in Congress since the Civil War when first legal tender and next national bank currency was introduced. The hard money faction managed to place a cap of $300,000,000 on the circulation of legal tender notes in the act passed January 14, 1875, that provided for the resumption of specie payments by the Treasury following the war. Thereafter, the Treasury began to redeem legal tender notes from circulation as fast as they reached the Treasury until they could be drawn down to the $300,000,000 cap. The soft money faction responded by winning passage of an Act dated May 31, 1878, that prevented further legal tender redemptions. This froze the circulation of legal tender notes at $346,681,016 on the day the act passed. When 1882 came along, the hard money faction dragged their feet on passage of any measure that would allow national bankers to extend their charters. If the bankers couldn’t extend, national banking would eventually vanish by 1904, which would take the soft national currency with it. The soft money crowd had a strong incentive to compromise, thus the provision for gold notes attached to the 1882 Act. The Republicans gained the upper hand in Congress in 1900 and passed the Gold Standard Act of March 14, 1900. Section 6 reiterated the provisions authorizing the issuance of gold certificates built into the 1882 act. Of particular concern to this discussion, the lowest denomination gold certificates authorized were $20s. The Act of March 4, 1907, was passed to address a chronic shortage of low denomination currency in circulation, which was defined as notes of $10 or less. One provision in the act was the authorization of the first ever $10 gold certificates. These came out as the Series of 1907 $10s. They comprised the largest fraction of $10 Treasury currency during the next decade. Specifically, between July 1, 1907, and June 30, 1916, Treasury $10s consisted of Series of 1901 legal tender notes, Series of 1907 gold certificates and Series of 1908 silver certificates. Those issues respectively accounted for 39,102,000, 99,276,800 and 8,081,000 notes. Clearly, the gold certificates were dominant. This brings us to the act authorization date on the faces of the $10 Series of 1907 notes, and why it was changed. Act Authorization Dates on 1907 $10s Originally, the act authorization date that was displayed was July 12, 1882, because the 1882 act authorized the issuance of gold certificates. However, sometime around the end of 1912, someone in the Treasury thought there was a technical disconnect in using the 1882 act date because $10 gold certificates were specifically authorized in the 1907 act. It seemed more appropriate to use the 1907 act date on the $10s. The Bureau of Engraving and Printing began putting the 1907 act date on the Series of 1907 $10 face plates in January 1913. Existing plates with the 1882 date were altered to carry the new date with the first of them being recertified on January 18. New plates with the 1907 date began to be certified January 24. This change ushered in the most interesting varieties found in the entire $10 Series of 1907 gold certificates. Two factors came into play. The act authorization dates on existing plates were altered, thereby creating the opportunity for pairs of notes from the same plate to bear different dates. Also, the change happened to occur when the Bureau was engaged in printing token numbers of notes bearing the short-lived Napier-Thompson Treasury signature combination in the midst of on-going Napier-McClung production, thereby catching both the Napier-McClung and Napier-Thompson plates up in the change. Consequently, to add icing to the cake, not only were they altering the act dates on the existing plates, they also were altering some plates that originally bore McClung’s signature to that of Thompson. Table 1 is a complete list of all the $10 Series of 1907 Napier-McClung plates that were made. Sprinkled among them are all the Napier-Thompson plates. Paper Money * July/Aug 2021 * Whole No.334 267 Table 1. Complete list of $10 Gold Certificate Series of 1907 Napier-McClung and Napier-Thompson face plates showing which carried 1882 and 1907 act authorization dates on their upper left sides. Data from Bureau of Engraving and Printing (1863-1980 and 1910-1914). Napier-McClung Napier-McClung Napier-Thompson Pl Ser Tr Pl No Act of 1882 Act of 1907 Pl Ser Tr Pl No Act of 1882 Act of 1907 Act of 1882 Act of 1907 2031 34814 X 277 38332 X 207 1 34883 X 278 38342 X 2081 34895 X 279 38343 X X 209 1 34902 X 280 38355 X 212 34923 X 281 38356 X 213 34930 X 282 38357 X 214 35745 X X 283 38358 X 215 35757 X 284 39442 X 216 35788 X 285 39443 X X 217 35816 X 286 39711 X X 218 35839 plate not finished 287 39712 X X 219 35866 X 288 39738 X 220 35867 X 289 39739 X X 221 35917 X 290 39762 X X 222 35918 X 291 39763 X X 223 35919 X 292 39773 X X 224 35947 X 293 39774 X X 225 35948 X 294 39800 X X 226 36309 X 295 39801 X X 227 36317 X 296 39813 X X 228 36318 X 297 39814 X X 229 36329 X 298 39840 X X 230 36343 X 299 39841 X X 231 36344 X 300 39880 X X 232 36345 X 301 39881 X X 233 36346 X 302 39924 X X 234 36372 X 303 39925 X X 235 36373 X 304 39974 X - not used X 236 36374 X 305 39975 X - not used X 237 36375 X 306 39988 X - not used X 238 36386 X 307 39989 X - not used X 239 36387 X 308 39990 X - not used X 240 36388 X 309 39991 X - not used X 241 36389 X 310 40010 X - not used X 242 36492 X 311 40011 X - not used X 243 36493 X 312 40012 X X - not used 244 36494 X 313 40013 X - not used X 245 36495 X 314 40018 X - not used X 246 36508 X 315 40019 X - not used X 247 36509 X 316 40020 X - not used X 248 36532 X 317 40021 X - not used X 249 36533 X 318 40029 X 250 36550 X 319 40030 X - not used X 251 36551 X 320 40046 X - not used X - not used X 252 36575 X 321 40047 X - not used X - not used X 253 36576 X 322 40053 X X 254 36602 X 323 40054 X 255 36603 X 324 40388 X 256 36639 X 325 40389 X 257 36640 X 326 40399 X 258 36641 X 327 40400 X 259 36642 X 328 40401 X 260 36662 X 329 40402 X 261 36663 X 330 40407 X 262 36680 X 331 40408 X 263 36681 X 332 40409 X 264 37990 X 333 40410 X 265 37991 X 334 40416 X 266 38000 X 335 40417 X 267 38001 X 336 40436 X 268 38006 X 337 40437 X 269 38007 X 338 40459 X 270 38026 X 339 40460 X 271 38027 X 340 40484 X 272 38314 X 341 40485 X 273 38315 X 342 40491 X 274 38316 X 343 40492 X 275 38317 X 344 40668 X 276 38331 X 345 40669 X 1. Signatures on plates 203, 207, 208 and 209 were altered from Vernon-McClung to Napier-McClung. Notes were printed from both configurations. Paper Money * July/Aug 2021 * Whole No.334 268 In order to get some Napier-Thompson plates into production in a hurry, five plates—numbers 295- 299—that were in the process of being made with Napier-McClung signatures were altered to carry Thompson’s signature on November 26, 1912, four days after Thompson was appointed. Those plates were pressed into production during the first week of December 1912. Let’s first explain the special circumstances revolving around the Napier-McClung/Napier- Thompson plates, then we’ll examine the varieties that came about. The following section is abridged from Huntoon (2019). Changing of the Guard Republican President William Howard Taft served from March 4, 1909, to March 4, 1913. On November 5, 1912, Democrat Woodrow Wilson won election by defeating Taft and Bull Moose (Progressive) candidate Theodore Roosevelt. Wilson’s victory meant changes were coming to the top echelon of the Treasury Department when he took office in March 1913. However, a change occurred before then. Treasurer Lee McClung resigned on November 14, 1912, and his resignation became effective November 21st. This saddled Taft with the responsibility of appointing a short-term Treasurer for the duration of his term. As a convenience, he chose Carmi A. Thompson, his secretary, to fill the position effective November 22nd. BEP Director Ralph suddenly was faced with a signature change on the currency, but that signature would be current only for four months. To say the least, this was a managerial nuisance. This was not the type of hassle a man such as Ralph appreciated, especially when he knew it was going to happen again in four months. Here is how Ralph dealt with Thompson’s signature on Treasury currency (Ralph, 1912). Figure 2. Pair of Napier-McClung Series of 1907 $10 notes from plate 287 assembled by Doug Murray where B41732183 carries a 1907 act date and B43751663 an 1882 act date. The serial numbers are in reverse order of when the faces were printed revealing that BEP personnel were unconcerned about the order in which the stock was numbered. Doug Murray photo. Paper Money * July/Aug 2021 * Whole No.334 269 Memorandum for Assistant Secretary [Robert O.] Bailey Your attention is respectfully called to the unusual features relative to the changing of the engraved signatures of the United States Treasurer on United States notes and gold and silver certificates arising out of the recent appointment of Mr. Carmi Thompson as United States Treasurer, whereas in a little more than three months another person will undoubtedly take the office under the new administration. The custom for years required the United States notes and certificates to bear the engraved signatures of the United States Treasurer. A careful examination of the statutes fails to find a law requiring engraved signatures on United States notes and gold and silver certificates, but it is statutory on Treasury notes, coupon and registered bonds and National-bank notes. The Act approved December 23, 1857, (11th Stats. at L., page 257, Section 3) provides that Treasury notes shall be signed in behalf of the United States by the Treasurer thereof, and countersigned by the Register of the Treasury. This was reaffirmed in the Act approved February 25, 1863, (12th Stats. at L., page 346, Section 3), and also extended the signatures to coupon or registered bonds, authorized by the Act. The Act of February 25, 1863, (12th Stats. at L., page 670, Section 18) requires that National-bank notes be attested by the written or engraved signatures of the Treasurer of the United States, and the Register of the Treasury. The printed stock of paper money on hand in the course of completion is sufficient to last about thirty days and the completed engraved plates on hand will produce a printed stock to last at least sixty days. Under ordinary circumstances, all new plates required to be engraved would bear the signature of the newly appointed Treasurer and old plates would be altered as soon as practicable, and deliveries of the new stock would commence about three months after the new Treasurer was inducted into office. If the usual practice be followed, Mr. Thompson’s term would almost be ended before any notes bearing his signature are delivered. There are on hand 535 face plates of United States notes and certificates. The cost of altering them, together with the expenses incidental thereto, will amount to about $10,000. However, if deemed desirable to deliver some notes with the new signature and at an earlier date, a few plates could be altered immediately of each denomination, printing therefrom started at once, and deliveries commenced by about January 1, 1913. I would suggest that, if this plan be adopted, about 20 plates of $1 silver certificates, and 5 plates each of $2, $5, and $10 silver certificates, $5, $10 and $20 United States notes and $10 and $20 gold certificates be altered. About 40,000 sheets of notes and certificates with Mr. Thompson’s signature could be delivered daily from January 1 1913, to March 4, 1913, with little additional expense to this Bureau but with considerable inconvenience in keeping the stock of the two signatures separate in the printing, examining, and numbering and sealing divisions. These stamps [sic] would commence with a new series of numbers, beginning with number one for each denomination of each class. I would suggest that a conference between yourself, the Treasurer and myself be held upon this subject. Respectfully, J. E. Ralph Director Ralph was attempting to insulate the Bureau as much as possible from dealing with Thompson’s signature, primarily by making the case that there were extensive work and costs involved, knowing the appointed Republican administrators in the Treasury Department would flinch at the costs. He softened them up by pointing out that there really wasn’t anything in the laws that required Treasury signatures to appear on the notes. Instead, displaying the signatures was a custom inherited from the past. The subtle point being pressed was that the signatures really didn’t matter. If Ralph could get the Secretary of the Treasury’s office to sign off on his proposal, and they did, he gave himself license to make token numbers of Napier-Thompson plates, get some of those notes over to Treasury, and be done with the matter. This is exactly what he did, In the meantime, all the production lines for the high-volume, low-denomination notes continued uninterrupted using now-obsolete Napier-McClung plates including the 1907 $10 gold certificates. Not only that, the Bureau siderographers continued to manufacture new Napier-McClung plates at the same time they were producing the token Napier-Thompson plates. Furthermore, they continued to make Napier- McClung plates long after production of the last of the Napier-Thompson plates was but a memory. It was the practice during this era for the Bureau to continue to use plates with obsolete signatures until they wore out, but as expeditiously as possible to make new plates or alter some of the old to carry the Paper Money * July/Aug 2021 * Whole No.334 270 new combination. The production from both were carefully segregated and serial numbered separately. New prefix letters usually were assigned to the serial numbers on the notes with the new combination and numbering of those blocks began at 1. Therefore, in keeping with protocol, B-prefixes were used for the Napier-McClung serials and D for the Napier-Thompsons on the $10 Series of 1907 gold certificates. When the smoke cleared, a total of only 2,276,000 Napier-Thompson $10 Series of 1907 gold certificates were made, split 800,000 with Act of 1882 and 1,476,000 with Act of 1907 dates. In contrast there were 33,436,000 Napier-McClung’s. Face Plate Varieties The first Napier-McClung 1907 $10 gold certificate face plate was certified July 7, 1911; the last March 10, 1913. The last notes were printed from them on December 26, 1913. In contrast, the range of certification dates for the eleven token Napier-Thompson plates was December 2, 1912-April 3, 1913, with last use being May 6, 1913. When it came to changing the act approval date on the 1907 $10 GCs, the magic date turned out to be January 18, 1913. Several existing worn plates—both Napier-McClung and Napier-Thompson—that had been pulled for reentry were simultaneously altered to carry the new date and recertified for use on the 18th. Thereafter, as other plates showed wear and were rotated off the presses for reentry, they were similarly altered. New plates with both signature combinations beginning with those certified on January 24th or later were made with the new date. The data on Table 1 reveal the following: • both act dates occur on Napier-McClung and Napier-Thompson notes, • both act dates occur on issued notes from Napier-McClung plates 214, 279, 285-287, 289-294, 300-303 and 322, • both act dates occur on issued notes from Napier-Thompson plates 295-299. Plates 320 and 321 are particularly interesting because they were made with Napier-McClung signatures with an 1882 act approval date. Next, the date was altered to 1907. Finally, McClung’s signature was altered to Thompson. This presented the possibility that both plates could have produced three varieties. Sadly, for variety collectors, no printings were made from the two Napier-McClung configurations. The most fun of all the plates on Table 1 is Napier-Thompson plate 345. When siderographer Walter Doxen was making the plate, he accidentally failed to roll in the 1907 act authorization date and BEP Director Ralph signed off on it April 3, 1913. The mistake eventually was caught, the plate repaired and recertified April 21st. In the meantime, the plate had been sent to press from April 5th to April 18th. Figure 3. Proof from the Napier-Thompson plate 345 where the siderographer forgot to roll in the March 4, 1907, act date on all four positions. Notes were printed from the plate before the error was discovered and repaired. Normal notes were printed from it after the repair. None of the error notes have been reported. National Numismatic collection photo. Paper Money * July/Aug 2021 * Whole No.334 271 After the repair, it served from April 22nd to May 6th. No notes with the omission have been recognized and reported. Perhaps you have one. The updating of the act approval date was an exercise in dotting an i from the perspective of BEP Director Ralph and his operation. The alteration of the date on existing plates was carried out over a two- and-a-half-month period. During that time, notes with both act dates were being printed with both Napier- McClung and Napier-Thompson signatures. Great care was taken to segregate the production into two streams based on the signature combinations. However, no attention was paid to the act approval dates on the stock, so a mix of the 1882 and 1907 dates were being processed together in both streams. Consequently, you can readily find notes with 1882 act approval dates with higher serial numbers than on those with 1907 dates in both signature combinations. If you could locate runs of consecutive uncirculated notes, you even could find changeover pairs between the dates. Doug Murray assembled the pair show on Figure 2, which is an ultimate oddity. This pair from the same plate exhibits the 1882 act approval date on the note with the higher serial number. Obviously, a bypassed stockpile of sheets with the 1882 date was fed into the Napier-McClung stream for serial numbering after plate 287 had been altered to carry the 1907 date and notes began to be printed from it. It takes a dedicated variety specialist to recognize and corral a pair like this! References Cited and Sources of Data Bureau of Engraving and Printing, 1863-1980, Certified proofs lifted from intaglio printing plates: National Numismatic Collection, Museum of American History, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, 1910-1914, Custodian of Dies, Rolls and Plates, Historical record of plates in the United States and miscellaneous vault, plates 34435-45502: Record Group 318, 450/79/17/02 vols. 27-29, U. S. National Archives, College Park, MD. Huntoon, Peter, Nov-Dec 2019, Napier-Thompson & Napier-Burke Treasury currency rarities: Paper Money, v. 58, p. 392-405. Ralph, Joseph E., Nov 23, 1912, Letter from Director of the Bureau of Engraving and Printing to Assistant Secretary of the Treasury Robert O. Bailey: Record Group 318, BEP Letters Miscellaneous and Official, v. 434, p. 74-76, U. S. National Archives, College Park, MD. United States Statutes, various acts pertaining to currency: Government Printing Office, Washington, DC. Paper Money * July/Aug 2021 * Whole No.334 272 You Collect. We Protect. Learn more at: www.PCGS.com/Banknote PCGS.COM | THE STANDARD FOR THE RARE COIN INDUSTRY | FOLLOW @PCGSCOIN | ©2021 PROFESSIONAL COIN GRADING SERVICE | A DIVISION OF COLLECTORS UNIVERSE, INC. PCGS Banknote is the premier third-party certification service for paper currency. All banknotes graded and encapsulated by PCGS feature revolutionary Near-Field Communication (NFC) Anti-Counterfeiting Technology that enables collectors and dealers to instantly verify every holder and banknote within. VERIFY YOUR BANKNOTE WITH THE PCGS CERT VERIFICATION APP Obsolete Currency Counterfeiters: Doty & Bergen Part 2: Saints or Sinners? Terry A. Bryan The Haxby Obsolete Currency reference lists Doty & Bergen of New York as the source of numerous counterfeit notes. Extensive scanning of the volumes reveals the reason: the firm’s imprint appears on some notes that are stylistically related to other fakes without the imprint. The firm of Doty and Bergen advertised engraving, printing and manufacturing. The company lasted through three generations of the Doty family and two partnerships after Mr. Bergen died. It was unquestionably legitimate and successful. The Doty family had deep roots in New York City, and some distinguished individuals are among the modern descendants. Yet, there is evidence that a large number of counterfeit bank notes came from their plant. The proprietors may have been victimized by criminal employees. There are no recorded criminal court cases that would indict the businessmen of wrongdoing. Still, there is a long list of (D&B) fakes. New York City street directories list the firm at 120 William Street starting in 1846. The street was originally Horse and Cart Street. Two blocks away was the first location of the City Bank of New York. The area is at the center of the lower East Side financial district today. At Doty & Bergen’s address stood one of the oldest buildings in Manhattan, rumored to date back to Dutch times. In the same block was the meeting place of the earliest Methodist congregation in Manhattan and they eventually moved up the street to 120 William. The building was a ship chandler’s business with a rigging loft on the second floor. The wooden structure was about 20 feet wide and 60 feet deep from the street on a lot that was very little bigger. The Methodists rented the rigging loft for several years. Large open floor spaces were needed for sail making and pre-cutting and arranging ships’ cordage. Later the second floor was divided into rental rooms. At least two of the tenants died during one of New York’s many yellow fever epidemics. Doty & Bergen rented the storefront and ground floor from 1846 to 1853. The old place was demolished in 1854. Methodists revere the structure as one of the “Cradles of American Methodism”. Wood was taken from the ruins to make walking canes as souvenirs. Manufacturing druggists Lehn & Fink built an eight-story narrow building on the site. Their leading products were Lysol™ and D- Con™. The entire neighborhood is now gone. Advertisements for (D&B) in New York directories stated “Engravers, Printers, Ambrosers [makers of ambrotypes?], Fancy Glazed Papers, Calico Papers for Trunks. Wallpapers, embossing, novelty background papers for shop windows, and book endpapers were lines added later. They marketed a paper perpetual calendar at their Manhattan store. There is a drawing of their old store windows advertising their various products. The retail shop moved from William Street to Duane Street in Manhattan, later 30 Reade Street. Their paper plant was located at 407 Willoughby Street in Brooklyn, corner of Walworth Street, later moved to Reading, Pennsylvania. Warren Samuel Doty (b.1810 near Albany, New York), engraver and the first generation at the company, was listed to dwell at 32 Eldridge Street through 1852, thereafter in Brooklyn. He had moved to New York City early in his marriage and worked for a map publisher. Pollock & Doty was the first partnership in the engraving and paper business (c.1836). A subsequent partnership was Doty & Jones before Doty & Bergen in the early 1840s. Warren died in 1855 and is buried in Greenwood Cemetery. His sons worked for him. George Washington Doty was born in 1834, clerked for the business, did Civil War service, and died in 1871. Ethan Allen Doty was born in 1837 and married Eliza McFarlan in 1851. Ethan attended what became City College and was a librarian of the Mercantile Library of NYC (became the Brooklyn Public Library) and bookkeeper of Doty & Bergen. Third son Warren S. Doty was born in 1848. When their father died in 1855, Ethan inherited the business. George and Warren managed the divisions. Ethan bought out Peter G. Bergen, the engraver, in 1862, and he entered partnership with his brother-in-law, Edward McFarlan. Art engravings (c.1868) with the imprint of Doty & McFarlan are found at galleries and collections searched on the internet. A subsequent partnership was Doty & Scrimgeour. Warren S. Doty (1810-1855), engraver and founder of the company and the dynasty. The Rigging House, Methodist site and first location of Doty & Bergen on the lower East Side of Manhattan. A newer, but still narrow building occupies the site today. Paper Money * July/Aug 2021 * Whole No.334 274 The Doty (Dotey, Doten) family arrived with the Mayflower in 1620. Descendants spread through Massachusetts, Connecticut and New York over the centuries. Some were granted lands as a result of service to their colony; some did Indian War and Revolutionary War service. A distant cousin of Warren’s was Leonidas Doty, a private banker in Attica and Batavia, New York, and the major stockholder on the board of the First National Bank of Batavia. Another cousin was a noted portrait painter in upstate New York. One was an early U.S. Consul to China. The family history included many notable and successful members. Ethan Allen Doty continued in the papermaking business and other ventures until his death. He and brother Warren S. Doty were owners of Doty & Scrimgeour Co., and they died the same week in 1915. Ethan was a philanthropist and was active in Republican politics. He compiled the extensive family genealogy. In 1889, he became President of the Edison Electric Illuminating Company of Brooklyn, which later became Consolidated Edison. Among other business interests were a cold storage plant, and experimental papermaking ventures. The company is credited with pioneering coated paper in America. A web-fed paper drying apparatus was an important invention in the printing industry. Grandson, Judge Ethan Allen Doty of Philadelphia died in 2012. He was a noted attorney, jurist and stamp collector. The line of Dotys going back to the days of Ethan Allen’s Revolutionary War exploits featured a number of E.A. Dotys. (The several Warren S. Dotys had a heritage from the distinguished Warren family of Massachusetts.) Not so much is found for Peter G. Bergen (1808-1865). Directories describe him as an engraver with residence in Gowannus. If there is suspicion about the company, it accrues to Bergen. Mr. Doty died in 1855, before the bogus notes were done. Doty’s sons were apparently more interested in the papermaking and invention side of the business. Bergen was out of the company by 1862. His son, Garret Bergen (d.1889, age 47) was a manufacturer of cardboard and publisher of the Brooklyn Union newspaper. He was a police justice (Justice of the Peace) and member of the Brooklyn Board of Education. One of his companies became Eagle Pencil Co. (now Eberhard-Faber). Before and during the Civil War, one line of printing business was blank scrip forms. Another product was advertising resembling currency. The merchant could fill in his name, location and date. Scrip and ad notes with the Doty & Bergen and Doty & McFarlan imprint are known from New York City; Danby, New York; Tioga, Pennsylvania; Junction City, Kansas; Seneca, Kansas; Detroit; St. Louis, Milwaukee and other locations. Several notes were part of the Eric Newman collection sold by Heritage. Some of these legitimate scrip notes feature the same vignettes as the counterfeit Obsoletes. This is evidence that spurious notes originated at the Doty & Bergen operation. One line of business was apparently counterfeit currency. Someone high up in the company had to know what was going on. A sizable group of people would have been involved with making plates, printing and altering plates and notes. The Doty family is and was so distinguished that it is hard to believe that they had a role in the production of fakes. Nonetheless, their imprint appears on notes that were the “parents” of widely altered currency. Many of the bad notes were drawn on non-existent banks. Four unusual series of notes from at least four different plates were produced for the sole purpose of altering them to other locations. Most lacked an imprint, but all are stylistically related to others with the (D&B) byline. A series of spurious (D&B) Kansas notes appear to target a small bank in Delaware. A Mankato, MN series uses a portrait of President William Henry Harrison taken from the 1835 painting by James Lambdin. The engraved Harrison also appears on legitimate (D&B) scrip. Oddly, the cut out oval Harrison was also glued on genuine notes of the Delaware bank where the denomination had been raised. The 1850s use of Harrison’s image lends a retro feel to all the pieces. Peter G. Bergen (1808-1865), engraver. Doty & Bergen produced legitimate scrip and advertising notes. This $1 note uses the same William Henry Harrison portrait as found on some of the spurious notes. Paper Money * July/Aug 2021 * Whole No.334 275 Spurious notes from the Merchants Bank of Mankato, Minnesota appear with and without (D&B) imprint. Odd features include ease of alteration. $1 notes were raw material for alteration to many other banks. Note Harrison’s portrait used again. Some Mankato notes, like this $2, have the (D&B) imprint. Altered notes on other banks are found with and without the imprint, too. Mankato $5 Merchants Bank notes have a retro appearance for the 1850s date. One Mankato $1 note has details different from the production run of spurious notes. Mankato $10 notes repeat the Harrison portrait and the Native American image also used on the spurious $1 notes. Paper Money * July/Aug 2021 * Whole No.334 Twelve different designs, plus some raised notes originated from four plates containing three locations: Delaware City, Kansas, Stillwater, Minnesota and Mankato City, Minnesota. The Kansas notes are described in the previous installment of this article. All of the designs are pictured in Haxby with alterations spread over many locations. Some of the notes have red or orange surcharges, including a lazy 2. Irony is noted in considering the practice of printing a “protector” on an altered note from a spurious bank. Confusion is met with Danforth, Wright counterfeits. Some DW Co. notes have similar vignettes to some (D&B) fakes (e.g. William Henry Harrison’s portrait). Danforth and Wright were not counterfeiters. Maybe criminals were similarly using (D&B)’s name on their notes. The Newman Numismatic Portal has several references to stolen or purchased vignette dies used by counterfeiters. The mere presence of a (D&B) imprint does not condemn the company. The distinguished nature of the Doty family, makes one wish to think positively. The Merchants Bank of Mankato City, Minnesota was non-existent. A plate or several plates printed four different denominations ($1, $2, $5, $10) dated 185—. The (D&B) imprint is present on some Mankato notes. Thanks to R. Shawn Hewitt and the SPMC Obsolete Notes Database Project images are available of many rare notes. In the database there is a remainder $1 Merchants Bank of Mankato note with a fully written date, a plate letter A, and absent a small eagle vignette that is present on the altered notes from other states. Known Mankato $1s, described in counterfeit detectors and in Haxby…all are assumed to be from an altered plate of that mysterious single remainder. All the other (D&B) counterfeits have plate letter B or none at all. All of the other Mankato notes have the date engraved 185—. Clearly the fakers could alter plates with ease. The Mankato notes all have “Minnesota” in small letters on the left. “Mankato City” is even smaller on the lower center. Both are easily removed from printed notes. The Merchants Bank of Stillwater, Minnesota was equally fraudulent and notes were made over to several other banks. There are three notes in this series ($1, $2, $5). “Washington County” and “Stillwater” are small and easily removed later. A tiny “MIN.” is well hidden in the vines below the left “1” counter (illustrations on previous page). All the Stillwater notes had an engraved date 1854. Stillwater, Minnesota Merchants Bank notes use the wreathed lady and the state abbreviation hidden in the shrubbery, just like the Delaware City, Kansas notes by (D&B). A tiny roadside milepost and progress symbolized by a rail viaduct and canal aqueduct are features of the Stillwater spurious $2 by (D&B). Paper Money * July/Aug 2021 * Whole No.334 277 A Salem, Mass. $1 note altered from a Stillwater note. Mankato, MN and Delaware City, KS notes were also altered to many other locations. “Merchants Bank” was a common name, making less alteration necessary. Paging through Haxby, 110 notes from 17 states are found related to the twelve designs. Some attributions are questionable from hazy descriptions. Haxby uses the abbreviation (D&B) for imprinted notes, (D&B) for attributed notes without imprint. There are at least two with “(DB)” (Danforth, Bald) that should be (D&B). The attached chart is undoubtedly not definitive. Paging Haxby is dizzying. DOTY & BERGEN COUNTERFEITS, FROM HAXBY, (D&B)=no imprint, Sources of Altered Notes Listed STATE CITY Bank HAXBY # DENOM. DATE IMPRINT ALTERED REMARKS CT  New Haven  Merchants  CT‐284 A10  $1  1854  (D&B)  Stillwater  CT  New Haven  Merchants  CT‐284 A20  $2  1854  (D&B)  Stillwater  CT  New Haven  Merchants  CT‐284 A55  $5  185  (D&B)  Mankato  CT  New Haven  Merchants  CT‐284 A60  $5  185  (D&B)  Stillwater  CT  New Haven  Merchants  CT‐284 A70  $10  185  (D&B)  Mankato  Imprint  CT  New Haven  Merchants  CT‐284 A70  $10  185  (D&B)  Mankato  No Imprint (Haxby)  CT  Norwich  Merchants  CT‐350 A15  $1  1854  (D&B)  Stillwater  CT  Norwich  Merchants  CT‐350 A25  $2  1854  (D&B)  Stillwater  CT  Norwich  Merchants  CT‐350 A40  $5  1854  (D&B)  Stillwater  CT  Norwich  Merchants  CT‐350 A45  $10  185  (D&B)  Mankato  Imprint  DE  DE City  DE City   DE‐10 A5  $1  1854  (D&B)  Del. City, Kan.  Two Types  DE  DE City  DE City   DE‐10 A10  $1  185  (D&B)  Del. City, Kan.  DE  DE City  DE City   DE‐10 A15  $2  1854  (D&B)  Del. City, Kan.  DE  DE City  DE City   DE‐10 A20  $2  185  (D&B)  Del. City, Kan.  DE  DE City  DE City   DE‐10 A25  $5  1854  (D&B)  Del. City, Kan.  DE  DE City  DE City   DE‐10 A30  $10  1854  (D&B)  Del. City, Kan.  Raised from $1 Stillwater $5 has a nice eagle and an Indian Princess. MIN. is hidden away. MIN. is concealed in the viney decorations on the upper left of all the Stillwater notes. This feature is also found on (D&B)’s Delaware City, Kansas notes. Does this help to legitimize the notes during the production runs, if scrutinized by the authorities? Paper Money * July/Aug 2021 * Whole No.334 278 IL  Hutsonville  Garden State    IL‐380  $2  185  (D&B)  Del. City, Kan.  Orange Reverse  IN   Springfield  Merchants  IN‐620 G2  $1  1854  Stillwater?  Likely MN  IN  Springfield  Merchants  IN‐620 G4  $2  1854  Stillwater?  Likely MN  IN  Springfield  Merchants  IN‐620 G6  $5  1854  Stillwater?  Likely MN  KS  DE City  DE City   KS‐20 G2  $1  1854  (D&B)  Del. City, Kan.  KAN Hidden  KS  DE City  DE City   KS‐20 G4  $1  185  (D&B)  Del. City, Kan.  KS Margin KS  DE City  DE City   KS‐20 G6  $2  1854  (D&B)  Del. City, Kan.  KAN Hidden  KS  DE City  DE City   KS‐20 G8  $2  185  (D&B)  Del. City, Kan.  KS Margin KS  DE City  DE City   KS‐20 G10  $5  1854  (D&B)  Del. City, Kan.  KAN Hidden  KS  DE City  DE City   KS‐20 G12  $10  1854  (D&B)  Del. City, Kan.  Raised from $1 KS  Easton  Easton    KS‐25 G2  $1  1855  (D&B)  Del.City,Kan  KS  Easton  Easton    KS‐25 G4  $2  1855  (D&B)  Del.City,Kan  KS  Easton  Easton    KS‐25 G6  $5  1855  (D&B)  Del.City,Kan  KS  Easton  Easton    KS‐25 G8  $10  1855  (D&B)  Del.City,Kan  Raised from $1  ME  Bangor  Merchants    ME‐110 A5  $1  185  (D&B)  Mankato  ME  Bangor  Merchants    ME‐110 A10  $2  185  (D&B)  Mankato  "Main"  ME  Bangor  Merchants    ME‐110 A35  $5  185  (D&B)  Mankato  ME  Bangor  Merchants    ME‐110 A50  $10  185  (D&B)  Mankato  MD  Easton  Easton    MD‐180 A5  $2  1854  (D&B)  Del.City,Kan  MA  Boston  Merchants    MA‐285 A10  $1  185  (D&B)  Mankato  Imprint  MA  Boston  Merchants    MA‐285 A15  $1  185  (D&B)  Stillwater  MA  Boston  Merchants    MA‐285 A25  $2  185  (D&B)  Mankato  Red Two  MA  Boston  Merchants    MA‐285 A40  $5  185  (D&B)  Mankato  MA  Boston  Merchants    MA‐285 A45  $5  185  (D&B)  Stillwater  Red FIVE  MA  Boston  Safety Fund   MA‐345 A20  $2  185  (D&B)  Del. City, Kan.    MA  Lowell  Merchants    MA‐755 A15  $1  1854  (D&B)  Stillwater  MA  Lowell  Merchants    MA‐755 A20  $2  1854  (D&B)  Stillwater  MA  Lowell  Merchants    MA‐755 A40  $5  185  (D&B)  Mankato  MA  Lowell  Merchants    MA‐755 A45  $5  185  (D&B)  Stillwater  MA  Lynn  City    MA‐775 A5  $1  1854  (D&B)  Del. City, Kan.   Both minor types known  MA  Lynn  City    MA‐775 A10  $1  185  (D&B)  Del. City, Kan.  MA  Lynn  City    MA‐775 A15  $2  1854  (D&B)  Del. City, Kan.  MA  Lynn  City    MA‐775 A20  $5  1854  (D&B)  Del. City, Kan.  MA  New Bedford  Merchants    MA‐895 A15  $1  1854  (D&B)  Stillwater  MA  New Bedford  Merchants    MA‐895 A15a  $1  1854  (D&B)  Stillwater  Red ONE  MA  New Bedford  Merchants    MA‐895 A25a  $2  185  (D&B)  Del. City, Kan.  Red Lazy 2  MA  New Bedford  Merchants    MA‐895 A30  $2  185  (D&B)  Stillwater  MA  Newburyport  Merchants    MA‐910 A15  $1  1854  (D&B)  Stillwater  MA  Newburyport  Merchants    MA‐910 A35  $5  185  (D&B)  Stillwater  MA  Salem  Merchants    MA‐1120 A25  $1  185  (D&B)  Stillwater  MA  Salem  Merchants    MA‐1120 A35  $2  1854  (D&B)  Stillwater  MA  Salem  Merchants    MA‐1120 A45  $5  1854  (D&B)  Stillwater  MN  Mankato  Merchants    MN‐75 G2  $1  185  (D&B)  Uncut Sheet Known  MN  Mankato  Merchants    MN‐75 G2a  $1  185  (D&B)  MN  Mankato  Merchants    MN‐75 G4  $2  185  (D&B)  Paper Money * July/Aug 2021 * Whole No.334 279 MN  Mankato  Merchants    MN‐75 G4a  $2  185  (D&B)  MN  Mankato  Merchants    MN‐75 G6  $5  185  (D&B)  MN  Mankato  Merchants    MN‐75 G6a  $5  185  (D&B)  MN  Mankato  Merchants    MN‐75 G8  $10  185  (D&B)  MN  Mankato  Merchants    MN‐75 G8a  $10  185  (D&B)  MN  St. Anthony's Falls  Merchants &  Mechanics  MN‐115 G2  $1  185  (D&B)  Unknown  Doubtful (D&B) (DW?)  MN  St. Anthony's Falls  Merchants &  Mechanics  MN‐115 G4  $2  185  (D&B)  Unknown  Doubtful (D&B) (DW?)  MN  St. Anthony's Falls  Merchants &  Mechanics  MN‐115 G6  $5  185  (D&B)  Unknown  Doubtful (D&B) (DW?)  MN  Stillwater  Merchants    MN‐180 G2  $1  1854  (D&B)  Hidden MIN  MN  Stillwater  Merchants    MN‐180 G4  $2  1854  (D&B)  Hidden MIN  MN  Stillwater  Merchants    MN‐180 G6  $5  1854  (D&B)  Hidden MIN  NJ  Freehold  Freeholding Co.  NJ‐155 A30  $5  185  (D&B)  Mankato  NJ  Freehold  Freeholding Co.  NJ‐155 A35  $10  185  (D&B)  Mankato  NY  Albany  Merchants    NY‐84 A5  $1  185  (D&B)  Mankato  NY  Albany  Merchants    NY‐84 A15  $2  185  (D&B)  Mankato  NY  Buffalo (Lancaster)  Merchants    NY‐445 A5  $1  185  (D&B)  Stillwater  NY  NY City  Merchants    NY‐1745 A5  $1  1854  (D&B)  Stillwater  NY  Onandaga  Farmers   NY‐2095 S5  $1  n.d.  (D&B)  Unknown  Doubtful (D&B) (DW?)  NY  Onandaga  Farmers   NY‐2095 S10  $2  n.d.  (D&B)  Unknown  Doubtful (D&B) (DW?)  NY  Onandaga  Farmers   NY‐2095 S15  $3  n.d.  (D&B)  Unknown  Doubtful (D&B) (DW?)  NY  Onandaga  Farmers   NY‐2095 S20  $5  n.d.  (D&B)  Unknown  Doubtful (D&B) (DW?)  NY  Oswego  Merchants&  Mechanics  NY‐2130 S‐5  $1  185  (D&B)  St. Anthony's  Falls  Doubtful (D&B) (DW?)  NY  Oswego  Merchants&  Mechanics  NY‐2130 S‐10  $2  185  (D&B)  St. Anthony's  Falls  Doubtful (D&B) (DW?)  NY  Oswego  Merchants&  Mechanics  NY‐2130 S‐15  $5  185  (D&B)  St. Anthony's  Falls  Doubtful (D&B) (DW?)  NY  Poughkeepsie  Merchants    NY‐2284 A5  $1  1854  (D&B)  Stillwater NY  Westfield  Merchants    NY‐2925 A5  $1  185  (D&B)  Mankato  NC  New Bern  Merchants    NC‐44 A5  $1  1854  (D&B)  Stillwater  NC  New Bern  Merchants    NC‐44 A10  $5  185  (D&B)  Mankato  Haxby Error "DB"  PA  Easton  Easton    PA‐115 A5  $1  1855  (D&B)  Del. City, Kan.  Head Distant Type  PA  Easton  Easton    PA‐115 A20  $5  1855  (D&B)  Del. City, Kan.  RI  Newport  Merchants    RI‐150 A5  $1  185  (D&B)  Mankato  RI  Newport  Merchants    RI‐150 A5  $1  1854  (D&B)  Stillwater  RI  Newport  Merchants    RI‐150 A20  $2  1854  (D&B)  Stillwater  RI  Providence  Merchants    RI‐355 A15  $1  185  (D&B)  Mankato  RI  Providence  Merchants    RI‐355 A20  $1  1854  (D&B)  Stillwater  RI  Providence  Merchants    RI‐355 A40  $2  185  (D&B)  Mankato  RI  Providence  Merchants    RI‐355 A45  $2  185  (D&B)  Stillwater  RI  Providence  Merchants    RI‐355 A80  $5  185  (D&B)  Mankato  RI  Providence  Merchants    RI‐355 A85  $5  1854  (D&B)  Stillwater  RI  Providence  Merchants    RI‐355 A95  $10  185  (D&B)  Mankato  VA  Burlington  Merchants    VT‐60 A5  $1  185  (D&B)  Mankato  VA  Burlington  Merchants    VT‐60 A10  $1  1854  (D&B)  Stillwater  Paper Money * July/Aug 2021 * Whole No.334 280 VA  Burlington  Merchants    VT‐60 A15  $2  185  (D&B)  Mankato  VA  Burlington  Merchants    VT‐60 A35  $5  1854  (D&B)  Stillwater  VA  Lynchburg  Merchants    VA‐124 A5  $1  185  (D&B)  Mankato  VA  Lynchburg  Merchants    VA‐124 A10a  $5  185  (D&B)  Mankato  Orange FIVE  VA  Lynchburg  Merchants    VA‐124 A20a  $10  185  (D&B)  Mankato  Orange TEN  Wi  Madison  Merchants    WI‐380 A5  $1  1854  (D&B)  Stillwater  WI   Madison  Merchants    WI‐380 A10  $2  185  (D&B)  Mankato  Wi  Madison  Merchants    WI‐380 A15  $5  185  (D&B)  Mankato  Wi  Madison  Merchants    WI‐380 A20a  $5  1854  (D&B)  Stillwater  Red FIVE  Odd or unique features of this series of counterfeit Obsolete Notes are:  The associated printer was a legitimate company that stayed in business for decades.  The counterfeits are expertly printed from engraved plates.  Many newly printed notes were immediately altered to obscure the location.  Some of the notes have subtle state abbreviations hidden away.  All of the notes were designed for ease of alteration.  The stereotyped name “Merchants Bank” facilitated alteration to many locations. (“Merchants” is second only to “Farmers” in state bank names.) That the legitimate business of Doty & Bergen was the true source of counterfeit bank notes is purely speculative. The fakes are a quality product of several crafts in the engraving profession. They are all printed from engraved plates, not lithographed. They have stylistic similarities to legitimate (D&B) products. Some of the notes have their imprint. The fact that these notes were designed to be altered causes a thought about a motive. An otherwise legitimate shop might be caught with printing plates for these counterfeits. The un-altered plates show the town and state locations. If questioned, a New York firm could reasonably refer to out-of-town banker clients residing far in the West commissioning a routine printing job. They could plead ignorance that the notes they printed were fraudulent. Once the paper was printed, alterations were facilitated by the designs. Is it unreasonable to consider that these odd counterfeits may have come out of the legitimate shop of Doty & Bergen? References: Special thanks to Joseph E. Boling for his expertise about printing methods. Special thanks to R. Shawn Hewitt for his advice and for images, and for his work developing the SPMC OCD. Special thanks to Attorney R. Brandon Jones for research in New York court records. Other images are from Heritage Auctions Archives, the Newman Numismatic Portal, & collection of the author. The American Stationer. (Industry journal) Vol.26, 1889, p. 599. Burgett, Maurice. Paper Money Vol.6#1, p.15. www.DaytoninManhattan.blogspot.com for information on (D&B) location. Doty Ethan Allen. Descendants of Edward Doty, An Emigrant by the Mayflower, 1620. Brooklyn, N.Y. 1897. Haxby, James A. United States Obsolete Bank Notes. Krause: Iola, 1988. Hessler, Gene. The Engravers Line. BNR Press: Port Clinton, 1993. Doggett’s New York City Directory, 1846-47 and others at Google Books™ Osmun, C.E.Wismer. “Engraved Bank Notes”. The Numismatist. Vol.74, Jan.1961, p.37. Paper Maker. (Industry Journal) Vol.17-22, p.3. 1948. Rockholt, R.H. Minnesota Obsolete Notes and Scrip. Society of Paper Money Collectors, 1973. Wait, George W. Wait. Maine Obsolete Paper Money and Scrip. Society of Paper Money Collectors, 1977. Whitfield, Steven. Articles in Paper Money, Vol.11#42, p.70, Vol.149, p.141, Vol.154, p.124. Wolka, Wendell, et.al. Indiana Obsolete Notes and Scrip. Society of Paper Money Collectors, 1978. www.Green-wood.com (cemetery information). www.historgo.com for Doty family information. www.ancestry.com for images and genealogy. Paper Money * July/Aug 2021 * Whole No.334 281 Albert Lea By Frank Clark I saw a Series 1929 Type 1 $20 National Bank Note on the First National Bank of Albert Lea, Minnesota charter number 3560. I started to wonder how did this town get its name? This thought led to an unexpected story with father and son on opposite sides of the Civil War. Albert Miller Lea was born on July 23, 1808 in Richland, Tennessee near Knoxville. Albert attended the United States Military Academy. He graduated fifth out of 33 cadets in the Class of 1831. He was assigned to the engineers due to his high class ranking and posted as a topographer to Fort Des Moines in the Wisconsin Territory, but soon to become part of the Iowa Territory. He surveyed southern Minnesota and northern Iowa in1835. This included the land that later became the eponymous town of Albert Lea in Freeborn County in 1855 when the residents of the area chose to honor Mr. Lea in this manner. Lea kept a detailed journal of the expedition. Lea resigned his commission after his mandatory five-year military commitment was up in 1836. He became the chief engineer of his home state of Tennessee in 1837 despite his youth. His next job was working for the United States government surveying the border between the states of Iowa and Missouri. The Baltimore and Ohio Railroad came calling next and Lea was the assistant engineer for that railroad during the years 1839-40. Next, this busy man was able to squeeze in a stint as a brigadier general in the Iowa militia. That was followed by a presidential appointment by Martin Van Buren as chief clerk for the United States War Department in March, 1841.This government position is now known as the Undersecretary of Defense. This led two short terms as acting Secretary of War. President John Tyler appointed Lea as Secretary of War in September, 1841 for six weeks when John Bell resigned. Also, President Millard Fillmore appointed Lea once again as acting Secretary of War for three months in 1850. After all that moving around, Lea attended East Tennessee University at Knoxville (now the University of Tennessee) and earned his master's degree in engineering in 1844. He would go on and serve as a professor of mathematics at this university. He resigned from this position in order to serve as the city engineer for Knoxville from 1849-54. The year 1855 saw him move to East Texas. When the Civil War broke out, he became an engineer with the Confederate States Army with the rank of major and he later attained the rank of lieutenant colonel. Albert first served in the Eastern Theatre, but was transferred back to Texas, where he arrived on December 15, 1862. He was living in Galveston after the Civil War and he later moved to Corsicana, Texas when he purchased a farm from a relative in 1874. He died of heart failure on January 16, 1891 and was interred in Oakwood Cemetery in Corsicana. Edward Lea, was born on January 31, 1837 in Baltimore, Maryland to army engineer Albert Miller Lea and Ellen Shoemaker. Unlike his father who had attended West Point, Edward entered the Naval Academy at Annapolis on October 2, 1851. He Paper Money * July/Aug 2021 * Whole No.334 282 graduated on June 9, 1855. He worked his way up to lieutenant by the end of 1860. Edward was serving on the USS Hartford when the Civil War started. The USS Hartford was a sloop-of-war steamer and the flagship of the East India Squadron. She was ordered home and departed the Sunda Strait on August 30, 1861 and arrived in Philadelphia for refitting on December 2, 1861. Edward was reassigned to the USS Harriet Lane which became part of the Gulf Blockading Squadron. Both Edward and the ship were involved in the capture of New Orleans in April, 1862. He was promoted to lieutenant commander and in July, 1862 the USS Harriet Lane engaged Confederate batteries near Vicksburg. The next assignment was the blockade of Galveston, which resulted in a Union victory and the capture of that port on October 4, 1862. The Confederates wanted to retake the valuable port and therefore planning began in order to achieve that goal. Albert Lea was temporarily detached to the command of Colonel C.G. Forshey while battle plans were prepared for the pending battle. He learned that one of the Union ships in the harbor was the Harriet Lane and he believed his son was still serving on it. The Battle of Galveston started during the pre-dawn hours of January 1, 1863. Albert helped in the movement of six cannons across the rail causeway of Galveston Island. He was next placed in the tallest church steeple in Galveston so that he could watch the naval battle unfold. Lea saw the Confederate gunboat, Bayou City, ram the Harriet Lane. Next, the Confederates stormed the Union vessel and captured it. Lea hurried to board the Harriet Lane. When he got there he found that the Union commander Captain Jonathan M. Wainwright was dead and that his son, the executive officer Lieutenant Commander Edward Lea was mortally wounded due to having been shot through the navel. The elder Lea went ashore to arrange care for the younger Lee and then he traveled back to the Harriet Lane. Death was imminent for the young Union naval officer and the Confederate engineer said, "Edward this is your father." The response from Edward was, "Yes, father, I know you, but I cannot move." The young Lea was then asked if any special disposition should be made of his body. Edward replied, "No, my father is here." January 2, 1863 saw Albert Lea conduct the funeral rites for the two Union naval officers because an ordained minister was not present. The deceased were buried in a common grave. Captain Wainwright was reinterred with honors at the Naval Cemetery in Annapolis, Maryland in 1866. At this time, a wealthy relative of Edward Lea's sought permission to have Edward Lea reburied next to his mother in Green Mount Cemetery in Baltimore. However, Albert Lea refused the request on the grounds that his son preferred to remain where he had fallen, "in sight of the sea, in sound of the turf." Albert Lea would survive the war. After the Battle of Galveston, he was the chief engineer for General H.P. Bee's command in Brownsville, Texas. Lea would be promoted to lieutenant colonel at the end of 1863. His last Confederate post was as head of the Cotton Bureau in Eagle Pass, Texas. That job entailed trading cotton for gunpowder and arms. Albert Lea visited the Minnesota site named for him only twice. The first time was when he and the army surveying expedition he was attached to came upon a lake in July, 1835 that today bears his name. The expedition camped nearby on land that later became the town of Albert Lea. The second time occurred in June, 1879 when the town fathers invited the former Confederate to be their guest of honor at their fortieth anniversary celebration. Collecting National Bank Notes sometimes leads one to areas that are totally unexpected. That is what happened when I gazed upon that Type 1 $20 on charter number 3560. Bibliography Block, W.T. "A Towering East Texas Pioneer: A Biographical Sketch of Colonel Albert Miller Lea" East Texas Historical Journal, 32, No. 2 (1993), 23-33. Paper Money * July/Aug 2021 * Whole No.334 283 “James Bond” and his 1862 City Savings Association of Mobile by Bill Gunther A casual observer will notice a curious fact about the 1862 notes from the City Savings Association of Mobile, an example of which is shown below: 50 cent and higher denomination notes are all signed by “James Bond” as President! Of course, no one could let that observation rest without learning more about this “James Bond” and his “City Savings Association of Mobile”. This is their story. AO-308-$,50a.* Mobile, Alabama. City Savings Association of Mobile. 50 cents. June 10th, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Printed on gray paper. Payable to J. H. Beardslee. The Charter The City Savings Association of Mobile was chartered by the General Assembly of the State of Alabama on November 11, 1861, only seven months into the start of the Civil War.1 According to the charter, “each member of the association shall, up its organization, pay the sum of three hundred dollars, and thereafter the sum of 10 dollars on the first of each month, which sums and such other as the association may add thereto, shall be capital stock.” The charter also limited to total capital stock of the association to $100,000, and the life of the association’s charter was limited to twenty years. There were seven incorporators listed in the charter: William A. Garnett, Edward A. Shaffer, M. G. Hudson, R. M. Gage, W. H. Minge, John H. Beardslee and James Bond. Two of the incorporators would become officers: Edward Shaffer (Treasurer) and James Bond (President). It is their signatures that appear on all of the notes of the City Savings Association of Mobile. The names of four other incorporators appear on the pay lines of the various notes. The only incorporator whose name or signature does not appear on any note examined was W. H. Minge. We will begin with a review of the incorporators who did not become officers and follow with a review of the two officers who signed the notes. The Business Model The business model of the City Savings Association was to solicit deposits of “members” by offering interest on deposits of $20 left for at least 30 days. Certificates of Deposit were issue and served two functions: (1) to satisfy a requirement in Section 4 of their Charter and (2) to extend the life of the deposit by adding the clause “or bearer” to the Certificate. By also listing the name of the incorporator on the note, it was probably believed it would enhance the acceptability of the Certificates by merchants. The use of these Certificates in commerce would tend to lengthen the time the deposit would remain with the Association and thus allow them to earn more interest income. In order to pay interest, the Association was permitted to not only make private and commercial loans but to invest in a variety of financial instruments such as Confederate Bonds as well as State Bonds. Any profit earned by the Association would be derived from the difference between their earnings and their interest payments on deposit. Confederate inflation which began shortly after their charter was granted, probably doomed this Association from the beginning. Based on the 1870 reported wealth of the original seven charter investors in the Association, it was not a financial success. Paper Money * July/Aug 2021 * Whole No.334 285 The Incorporators William A. Garnett was born in 1835 in Virginia.2 His father, Reuben Garnett, was a merchant in Virginia in 1850 and William was listed at that time as a “clerk”, presumably in his father’s store.3 No Census record of either Reuben or William could be located for 1860. The 1861 City Directory of Mobile listed William Garnett as a “bookkeeper.”4 In that same year, William A. Garnett enlisted in the 24th Regiment, Alabama, Infantry.5 William, at age 26 when the Civil War started, was subject to the Confederate State’s conscription laws at the time.6 After the War, William Garrett was listed as a “banker” in the 1866 City Directory for Mobile.7 In 1867, he married Mary Salome McGullough in Baldwin County (adjacent to Mobile County).8 No Census record could be located for 1870, but in 1880 his occupation was again listed as a “banker”.9 He died in Mobile on April 13, 1883 and in his probate records, his wife listed his estate at $30,000.10 Richard Moor Gage was born on December 23 in New Hampshire.11 In 1860, he resided in Mobile and he listed his occupation as a “dentist.”12 At that time, he was married with two children, both of whom were born in Massachusetts. His assets consisted of $3,000 in real estate and a $5,000 personal estate. He married Lidia (who was born in Massachusetts) in Bedford, New Hampshire, in 1847.13 This 1857 marriage date in New Hampshire and the data from the 1860 Census show that they moved to Alabama sometime after 1857 but not later than 1860. By 1870, Gage had moved to New York where he listed his occupation as “physician”, as did his son James (age 20).14 He died in 1875 in Massachusetts at the age of 53.15 William H. Minge was born on October 26, 1830 in Virginia.16 His full name was William Henry Harrison Minge, an obvious reference to his mother being the great-great granddaughter of Benjamin Harrison, a signer of the Declaration of Independence and twice governor of the state of Virginia.17 In 1860, William was a “cotton weigher” working with his father who was a “cotton merchant” in Mobile.18 His father’s wealth consisted of $3,000 in real estate and $5,000 in his personal estate. William Minge served in the 15th Alabama Calvary Regiment, Company G during the Civil War.19 He listed his 1880 occupation again as a “cotton weigher” while his 1900 occupation is listed as “captain of a barge” in Mobile.20 He died in 1906 in Mobile at the age of 76.21 M. (Marcellus) G. Hudson was born in 1834 in Virginia and listed his 1860 occupation as a “bookkeeper.”22 At that time, he listed the value of his personal estate as $3,000 but no real estate was listed. He married Sarah Lucitta Woodfin on February 18, 1860 in Perry County, Alabama when he was 26 and she was 21.23 The marriage produced five children between 1860 and 1876, but two of the children died before they were four years of age.24 The 1870 Federal Census listed M. G. Hudson’s occupation as “commercial merchant,” while his 1880 occupation was listed as “bank cashier.”25 M. G. Hudson died on December 7, 1889 at the ae of 55, while Sarah Hudson died in 1884 at the age of 45, both in Mobile.26 John H. Beardslee was the son of Joseph E. Beardslee and was born in 1834 in Moss Point, Mississippi.27 Joseph was a resident of Mobile in 1823 according to records in Find-a-Grave and had served in the War of 1812.28 John H. Beardslee enlisted in the 24th Regiment, Alabama Infantry as a Private, the same rank he held when discharged.29 No Census records for 1850, 1860 or 1870 could be located and no death date was found. His age at the time of the incorporation of City Savings Association of Mobile was 28 years old. The Officers Edward A. Shaffer, Treasurer of City Savings Association of Mobile, was born in 1824 in New York.30 It is not clear when he first arrived in Alabama, but he married Mary Lavinder Haupt on December 12 or 13, 1849 in Mobile.31 She was 22 and he was 25 when they married. As of 1850, he and Mary were living with his father-in- law, John Haupt, in Mobile and E. A. Shaffer was listed as a “clerk”.32 In 1860, Shaffer is listed as a “cotton factor” in Mobile and listed his real estate at $3,000 and his personal estate at $1,500.33 In 1870, Shaffer listed his occupation as “Secre Ins Co.”, presumably “secretary of insurance company”.34 His real estate was listed at $4,000, but no personal estate was listed. According to “Find-a-Grave” records, E. A. Shaffer died in 1878.35 However, the 1880 Census shows E. A. Shaffer living in Mobile with an occupation of “Sec. Ins. Co.”36 In addition, the 1882 City Directory of Mobile lists a “E. A. Shaffer” as President of the Mobile Hook and Ladder Company, No. 1.37 It is believed that the Census record is more reliable than the Find-a-Grave record and it is believed that Edward Shaffer died sometime after 1882. Mary Lavender Shaffer died in Mobile in 1881.38 James Bond, President of City Savings Association of Mobile, was born in 1836 in Baltimore, Maryland.39 A Family Tree record shows the birth of a brother in Baltimore in 1840 followed by the birth of a sister in Mobile in Paper Money * July/Aug 2021 * Whole No.334 286 1842.40 This places the family in Alabama about 1841 when James Bond would have been 5 years old. The 1860 Census shows James Bond living in Mobile with his widowed mother and siblings and working as a “clerk”.41 The 1870 Census shows him to be a lawyer in Mobile, suggesting he obtained his law license between 1860 and 1870.42 It seems likely that he was admitted to the bar early in the 1860s and that was the basis for his being elected “President” of the City Savings Association in 1862 when he was only 26 years old. There is no evidence of Bond serving in the military during the Civil War. In 1867 James Bond married Lucinda Elizabeth Poe and they had three children.43 Unfortunately, Lucinda died on November 18, 1873 in Mobile leaving James with three children under the age of 5.44 James Bond remarried to Emma Jones on September 14, 1875 and they did not have any children.45 In 1880, James Bond reported his occupation to be “lawyer” in Mobile.46 He died on January 5, 1887, at the age of 51.47 Summary of Incorporators The table below summarizes the information on the incorporators of the City Savings Association of Mobile. The first impression one gains from these data is that the incorporators were relatively young (average age of 28) men of modest means in 1861, with reported total wealth (real estate and personal estate combined) of $15,500. Two of the men were from the North (New Hampshire and New York), one a border state (Maryland), but only one of the two “Yankees” returned North (Gage) during or after the end of the War. Table 1 Summary of Incorporators of City Savings Association of Mobile Name 1861 age Born Died Place Occup 1860 1860 Wealth 1870 Place *Beardslee 27 MS ? ? ? ? ? Gage 38 NH 1875 MA Dentist $8,000 NY *Garnett 26 VA 1886 AL Bookkeeper ? Mobile *Hudson 27 Va 1889 AL Bookkeeper $3,000 Mobile *Minge 31 Va 1906 AL Cotton Weigher ? Mobile Bond 25 MD 1887 AL Clerk ? Mobile Shaffer 27 NY 1878 AL Cotton Factory $4,500 Mobile *Served in Confederate Army The Notes While not identical, all the notes issued by the City Savings Association of Mobile are very similar in design. Most of the notes carry the date of June 25, 1862, although two notes (25 cents and 50 cents) also have June 10th dates. All notes state that they are “Certificate of Deposits”. The precise wording states that they are “Secured by deposit of Confederate Notes,” hence the wording “Certificate of Deposit”. If one had Confederate Notes, what was the purpose of exchanging them for these notes? One reason is that in 1862, the Confederate States did not issue fractional notes nor did the State of Alabama. Making purchases of items of less than $1 would have required the use of some form of private money or scrip such as the notes of the City Savings Association of Mobile. A second reason for these notes would be that it was possible to earn interest on your deposit of Confederate notes (when they totaled $20 or more). The 5 cent and 10 cent notes carry only one signature (Treasurer), while all the others carry two signatures (Treasurer and President). The 10-cent note has an arched title of the issuer while the 5-cent note carries a horizontal title, otherwise they are identical. The printing of an individual name on the notes as “payee” was most likely designed to infer, by association, confidence in the notes. Each incorporator was required, according to the Charter, to initially deposit at least $300. This would provide the Association the opportunity to issue Certificates of Deposit up to and including this amount to the depositor, who in turn could trade (spend) these notes to the extent they were acceptable. Eventually, the last holder of the notes would be able to redeem them for Confederate notes at the offices of the Association, ending the use of these notes as “money”. By end of the Civil War in 1865, Confederate notes had become worthless thus redeeming the City Savings Association of Mobile notes for Confederate notes would have been a waste of effort. Paper Money * July/Aug 2021 * Whole No.334 287 Regarding relative scarcity, Heritage Auctions reports the following sales on their archives: 5 cents (1), 10 cents (2), 25 cents (3), 50 cents (2), $1 (3), $2 (1) and $3 (2). The Heritage archives records do not present a complete picture of the population of these notes, but their numbers suggest that notes from this issuer are relatively scarce. AO-308-$.05a* Mobile, Alabama. City Savings Association of Mobile. 5 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer. Payable to R. M. Gage. AO-308-$.10a* Mobile, Alabama. City Savings Association of Mobile. 10 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer. Payable to W.H.H. Minge.. AO-308-$.25b* Mobile, Alabama. City Savings Association of Mobile. 10 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Payable to M. . Hudson. AO-308-$.25b* Mobile, Alabama. City Savings Association of Mobile. 10 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Payable to M. . Hudson. Paper Money * July/Aug 2021 * Whole No.334 288 AO-308-$.50b* Mobile, Alabama. City Savings Association of Mobile. 50 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Printed on Brown Paper. Payable to J. H. Beardslee. AO-308-$..50a* Mobile, Alabama. City Savings Association of Mobile. 50 cents. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Printed on white paper. Payable to J. H. Beardslee. AO-308-$1.* Mobile, Alabama. City Savings Association of Mobile. $1. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. (A different design with the same date as shown below). Payable to J. H. Beardslee. AO-308-$1b.* Mobile, Alabama. City Savings Association of Mobile. $1. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Payable to W.A. Garnett Paper Money * July/Aug 2021 * Whole No.334 289 *These numbers refer to Gunther & Derby’s A Comprehensive Guide to Alabama Obsolete Notes, 2020, Privately Printed. I wish to thank Charles Derby for helpful comments on an earlier version of the manuscript. Footnotes 1Act 134, pp. 143-146, Acts of the General Assembly, 1861, State of Alabama, Department of Archives and History (www.achives.state.alabama.us) 2William A. Garnett, Find-a-Grave, Ancestry.com. 3_____, Census of 1850, Ancestry.com. 4_____, City Directory of Mobile, 1861, Ancestry.com. 5_____, “U. S. Civil War Soldiers,” Ancestry.com. 6Margaret Wood, “Civil War Conscription Laws,” https://blogs.loc.gov/law/2012/11/civil-war-conscription-laws/ 7William A. Garnett, City Directory of Mobile 1866. 8_____, Compiled Marriages from Selected Counties, 1809-1920, Ancestry.com. 9_____, Census of 1880, Ancestry.com. 10_____, Find-a-Grave, Ancestry.com. 11Richard Moor Gage, “Family Data Collection – Individual Records,” Ancestry.com. 12_____, Census of 1860, Ancestry.com. 13_____, Public Family Tree, Ancestry.com. 14_____, Census of 1870, Ancestry.com. 15_____, Public Family Tree. 16William Henry Harrison Minge, Find-a-Grave, Ancestry.com. 17 “Benjamin Harrison V,” Find-a-Grave, Ancestry.com. 18 “W. H. Minge,” Census of 1860,” Ancestry.com. 19William H. H. Minge, Alabama Civil War Muster Rolls, 1861-1865, Ancestry.com. 20“W. H. H. Minge,” Census of 1880 and 1900, Ancestry.com. 21“William Henry Harrison Minge,” Find-a-Grave, Ancestry.com. 22“M. G. Hudson,” Census of 1860, Ancestry.com. 23“Marcellin (sic) G. Hudson,” Alabama County Marriage Records, 1805-1967, Ancestry.com. AO-308-$2a.* Mobile, Alabama. City Savings Association of Mobile. $2. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Payable to W.A. Garnett AO-308-$3a.* Mobile, Alabama. City Savings Association of Mobile. $3. June 25, 1862. Signed by Edward Augustus Shaffer, Treasurer, and James Bond, President. Rosene plate note. Payable to W.A. Garnett Paper Money * July/Aug 2021 * Whole No.334 290 24“Marcellus G. Hudson,” Public Family Tree, Ancestry.com. 25“_____,” Census of 1870 and 1880, Ancestry.com. 26“Sarah L. Hudson,” Find-a-Grave, and “Marcellus G. Hudson,” Find-a-Grave, Ancestry.com. 27“John H. Beardslee,” Find-a-Grave, Ancestry.com. 28“Joseph Beardslee,” Find-a-Grave, Ancestry.com. 29“John H. Beardslee,” U.S. Civil War Soldiers, 1861-1865, Ancestry.com. 30“Edward Augustus Shaffer,” Public Family Tree, Ancestry.com. 31_____, Alabama Select Marriage Indexes, 1816-1942, Ancestry.com. 32_____, Census of 1850, Ancestry.com. 33_____, Census of 1860, Ancestry.com. 34_____, Census of 1870, Ancestry.com. 35_____, Find-a-Grave, Ancestry.com. 36_____, Census of 1880, Ancestry.com. 37_____, City Directory of Mobile, 1882, Ancestry.com. 38”Mary Lavender Shaffer,” Find-a-Grave, Ancestry.com. 39“James Bond,” Census of 1850, Ancestry.com. 40_____, Public Family Tree, Ancestry.com. 41_____, Census of 1860, Ancestry.com. 42_____, Census of 1870, Ancestry.com. 43_____, Alabama Select Marriage Indexes, 1816-1942, Ancestry.com. 44 “Lucinda Elizabeth Poe Bond,” Find-a-Grave, Ancestry.com. 45“Emma Jones,” Alabama Select Marriage Indexes, 1816-1942, Ancestry.com. 46“James Bond,” Census of 1880, Ancestry.com. 47_____, Find-a-Grave, Ancestry.com. Paper Money * July/Aug 2021 * Whole No.334 291 Danish and American National Banks in the Virgin Islands Introduction In 1917 the United States purchased Denmark's colonial holdings in the West Indies, which were renamed the U.S. Virgin Islands. At the time, the currency in use on the islands was issued by The National Bank of the Danish West Indies, a bank that opened in 1905. The bank was granted the exclusive right to be the bank of issue on the islands for 30 years through a concession awarded by the Danish Minister of Finance as authorized by Danish legislation passed in 1904. One of the terms of the treaty governing the purchase was that The National Bank of the Danish West Indies was allowed to maintain this monopoly as per its Danish concession. Figure 1. Check used by the United States to purchase the Virgin Islands from Denmark in 1917. Denmark. Danish National Archives photo. The Paper Column Peter Huntoon Steve Schroeder Paper Money * July/Aug 2021 * Whole No.334 292 The United States Treasury was anxious to convert the territorial economy to a U.S. dollar basis at the expiration of the 30-year period. Treasury officials working in league with Territorial Governor Paul Martin Pearson facilitated the organization of the Virgin Islands National Bank to replace the Danish bank and assume much of its business. As the Danish bank was liquidated its currency was redeemed and replaced by U.S. currency. The Virgin Islands National Bank was awarded charter 14335 by the U. S. Comptroller of the Currency on April 30, 1935. The bankers missed the opportunity to issue national bank notes by a little under two months. This is a brief history of The National Bank of the Danish West Indies and the handoff of much of its business and its banking facilities to The Virgin Islands National Bank. The Virgin Islands The U.S. Virgin Islands comprise the northernmost islands in an arc of small islands that extends from a point 40 miles east of Puerto Rico southward through the Caribbean Sea some 650 miles to Trinidad and Tobago off the northeast coast of Venezuela. The principal islands are St. Thomas (32 mi2) and St. John (19 mi2) on the north and St. Croix (84 mi2) on the south. Columbus found the Virgin Islands on his second voyage in 1493, and there being too many small islands to name, called the group the Virgins. This was a mythical reference to St. Ursula and her 11,000 virgins massacred while returning from a pilgrimage to Rome by the Huns for not submitting to their advances. The Caribs, natives who occupied some of the islands at the time, yielded the name Caribbean Sea (House of Representatives, 1920, p. 5). The history in the next three paragraphs is distilled from Dyroff (1992), Wikipedia Danish_West_Indies, and U. S. Department of State. The Danish colonial era in the West Indies began when the Danish West India Company was chartered during 1671 in Copenhagen by King Christian V, who also was a principal stockholder. The company established a permanent settlement on the then uninhabited island of Saint Thomas in 1672, then bought the rights to St. John from the French in 1717 and established a settlement there the following year. Saint Croix was purchased from the French West India Company in 1733. The three islands reverted to the King in 1754 upon the bankruptcy of the company, thus becoming Royal Danish colonies. The colonizers established plantations and engaged in a triangular trade between the islands, Africa and Denmark. This involved the sale of arms and other goods to Africa, importation of African slaves for plantation labor, and export of tobacco, sugar, rum, molasses and cotton to Denmark. Importation of slaves occurred during the 1674-1803 period, after which the slave trade was banned. It was estimated that about 3,000 African slaves were being brought in yearly by 1778. The ratio of slaves to whites continued to climb to an estimated 19:1 on St. John in 1770 and readily exceeded 10:1 on St. Thomas and St. Croix by the 1800s. Slavery was unilaterally abolished in the islands in 1848 by Governor Peter von Schollen to quell developing rebellions. Emancipation led to a serious contraction in the plantation economy. In time, Danish subsidies were required to keep the economy of the islands afloat, thus diminishing Denmark’s interest in maintaining the colony. U. S. Interest in Acquiring Some Caribbean Islands Serious official interest in acquiring islands in the Danish West Indies developed during the Civil War as the Union contended with Great Britain’s support of the Confederacy. A naval presence was desired there to counter the success of Confederate blockade runners operating from Bermuda, Nassau and Jamaica. Secretary of State William Seward initiated formal negotiations for a purchase of suitable islands from Denmark on January 7, 1865. However, negotiations stalled upon General Grant’s military successes in bringing the war to a close and Lincoln’s assassination. Although President Andrew Johnson was favorably disposed to the purchase, anti-imperialist sentiment started to set in as the country grappled with reconstruction. Seward persevered in finalizing a treaty agreement for the sale on October 24, 1867, for St. Thomas and St. John islands for $7.5 million with the consent of the islanders. (Brady, 1969). In the meantime, yellow fever, smallpox and cholera epidemics had swept over St. Thomas in late 1866 followed by a severe hurricane on October 29, 1867. A month later the islands were devastated by an earthquake. An overwhelming majority of the population voted favorably for the sale on January 9, 1868, Paper Money * July/Aug 2021 * Whole No.334 293 and King Christian IX signed the Treaty on January 31st, but from the U.S. perspective the sale now appeared to be a serious liability. The political scene in the United States was convulsed by Johnson’s impeachment during the spring of 1868, and nothing was accomplished during his remaining term. President Grant, who assumed office in March 1869, preferred to annex the Dominican Republic rather than purchase the two West Indian islands. (Brady, 1969). The final blow to the purchase came March 22, 1870, when the Senate Committee on Foreign Relations reported the treaty out with the recommendation “that the Senate do not advise and consent to the ratification of the treaty.” The chairman of that committee was Charles Sumner, the radical Republican abolitionist who had been savagely caned in 1856 on the floor of the Senate by southern opposition House member Preston Brooks. A Senate vote two days later failed to ratify it (Scott, 1916). Interest in the West Indian islands was rekindled in 1900 when Secretary of State John Hay attempted the purchase because the islands were strategically positioned to secure the eastern Caribbean gateway to the coming Panama Canal. His entreaties were stalled by the Danish parliament over failure of the U.S. to agree to grant U.S. citizenship to the islanders. Beginning in 1915, the Wilson government became alarmed by the threat that Germany would annex Denmark and turn the islands into a naval base from which they would launch submarine attacks against shipping in the Caribbean. Despite its concerns pertaining to citizenship and human rights for the islanders, the Danish government acquiesced after Secretary of State Robert Lansing insinuated that the U.S. would consider seizing the islands to prevent them from falling into German hands (Lansing, 1931). This time, three islands were on the table, St. Thomas, St. John and St. Croix. “The Virgin Islands were acquired by the United States from Denmark in 1917, solely for their strategic position as an outpost of military defense of the Panama Canal” (Dept. Interior, 1932, p. 31). The prize consideration for the United States was the harbor at St. Thomas adjacent to Charlotte Amalie, the finest in the eastern Caribbean, which was coveted as a naval base and coaling station. The United States paid Denmark $25,000,000 in gold coin for the Virgin Islands and took possession of them on March 31, 1917. The terms of the treaty providing for the transfer had been negotiated and signed in New York by Constantin Brun, Danish Minister to the United States, and Robert Lansing, U.S. Secretary of State on August 4, 1916. Its terms were ratified by the Danish parliament and U.S. Senate, and signed by President Woodrow Wilson on January 16, 1917. U. S. Possession The Virgin Islands were administered by the U.S. Navy from 1917 to 1931. Thereafter, they were placed under the supervision of the Secretary of the Interior by a Presidential Executive Order signed by President Hoover February 27, 1931. By then the navy had discontinued its naval base. According to a Congressional investigation, what the United States purchased besides a good harbor was a poverty-stricken population that was less than 10 percent white. The population of the islands had declined from 43,178 in 1835, to 26,051 in 1917, to about 22,000 in 1931 owing to economic emigration and an excessive death rate. “The curse of these islands as of the other West Indies has been the question of absentee ownership and the desire of the owners to simply get what they could out of the islands without looking to the welfare of the people” (House of Representatives, 1920, p. 11). A 1920 census revealed the following (House of Representatives, 1920, p. 9). The total number of families in the islands, as reported, was 9,568. The total number of dwellings was 5,858. About 15,000 persons over 10 years of age are engaged in gainful occupations, or about 69 per cent. Eighty-two per cent of the males are so engaged and 58 per cent of the females. In St. Croix the principal occupation is farm labor, men and women both working in the fields on the plantations. In St. Thomas the principal occupations are those connected with the harbor, both sexes being engaged in the work. Much of the agricultural labor force on St. Croix and St. Thomas belonged to unions of which women comprised the majority of members. Prior to cession the average first-class worker earned about 25 cents per day, second class laborer 12 to 15 cents per day. Wages had risen to $1 per day by 1920. The following testimony is revealing (House of Representatives, 1920, p. 17-18). The Chairman. When these men and women were earning 25 cents a day how did they live? Paper Money * July/Aug 2021 * Whole No.334 294 Mr. Chabert (president of the labor union of St. Croix). They were half starved * * * There was a very large infant mortality * * * The Chairman. Did these people working on 25 cents a day have any kind of homes? Mr. Chabert. Oh, no; just two boxes, or a few pieces of boards to lie on, and they had families. The husband and the wife both worked, so they could get the 50 cents a day * * * The Chairman. Now, are the people getting along pretty well on a dollar a day? Mr. Chabert. Well, it has just been started, but they will get along very much better, but even now they can not live on a dollar a day, but it is better. Conditions on St. John were somewhat more idyllic (House of Representatives, 1920, p. 13). Fishing affords to many of the people of St. John their living. St. John seems to be one of those unusual and (to the mind of some) desirable places where people can live without working. They can catch fish, go into the woods and pick fruit from the trees, and get along. Work does not seem to bother many of them. St. Croix had the prime agricultural land with sugar cane as the principal crop, but sugar exports began a decline in the 1860s as prices dropped. Even so, sugar comprised 84.6 percent of the value of agricultural products in 1917. Sugar, tobacco and coffee had been grown on St. Thomas, but by 1920 the population had turned to the harbor for their income. However, shipping seriously diminished after World War I as the navy pulled out, oil replaced coal as fuel for ships, and radio made it unnecessary for ships to call there for cable instructions. Cotton had been grown but was decimated by weevils so production of it ceased after 1913. Poultry had been an important staple but the arrival of mongoose destroyed that. Figure 2. Proof of a 100-franc gold note issued by The National Bank of the Danish West Indies with a portrait of King Christian IX of Denmark. The bank held a monopoly on the issuance of currency in the U. S. Territory of the Virgin Islands from 1917 to 1934. Paper Money * July/Aug 2021 * Whole No.334 295 Deforestation to support a charcoal industry primarily to fuel ships resulted in depleted rainfall and excessive runoff, thus exacerbating periodic droughts. Deforestation was especially serious on St. John Island. There was, however, a budding livestock industry on the islands, especially cattle (House of Representatives, 1920, p. 13). The following is a view of the situation in 1931 (Dept. Interior, 1931, p. 50). Its per capita wealth was about one-eight of that of the United States. * * * Sixty per cent of the land on St. Thomas is still owned by 15 men; 80 per cent of that on St. John is owned by 12; 70 per cent of that on St. Croix belongs to 14. The Virgin Islands were not yet a favored tourist destination for the sun, sand and sea crowd from the U. S. mainland. One of the major initiatives of the Department of the Interior was to facilitate the creation of the infrastructure needed to accommodate tourism and to promote it. A few of the many initiatives to improve the lot of the islanders were to create homesteading opportunities in order to diversify land ownership, encourage gardening and subsistence farming, rehabilitate agricultural land and diversify crops, expand the export of sugar in the form of more profitable rum, and improve educational and health services. The National Bank of the Danish West Indies In 1904, a syndicate comprised of five prominent Danish banks, Nationalbanken i Kjöbenhavn, Privatbanken i Kjöbenhavn, Den danske Landmandsbank, Hypothek og Vekaelbank, and Kjöbenhavns Handelsbank, proposed the establishment of a joint-stock bank in the Danish West Indies “who shall have, for a period of 30 years, the sole right to in the said islands to issue Bank Notes which shall, on demand of the holder, be exchanged for gold coins” (Danish Ministry of Finance, 1904). Besides conducting a general banking business, it would loan against real estate mortgages. In addition, the bank would serve as agent within the islands for the Danish Treasury. Its name was Dansk-Vestindiske Nationalbank—National Bank of the West Indies. The bank could issue up to 10 million francs if business conditions warranted. The circulation was to be secured by gold coin or bullion equivalent in value to three-eighths of the notes in circulation. The remaining five-eighths of the circulation was to be secured by various forms of commercial paper held by the bank. The notes were to be redeemable in gold coin at the head office in St. Thomas or the bank’s agency in Copenhagen. The bank was to pay an annual tax of 10 percent of its profits to the Danish state treasury. The bank’s operations were supervised by the Danish Ministry of Finance. The head office was to be in Charlotte Amalie on St. Thomas with branches in Christiansted and Frederiksted on St. Croix Island. The money issued by the bank was to be denominated in a new local money called francs and bits, where there were 100 bits per franc. 100 francs was pegged at 72 Danish kroners, both being gold. The banking concession was authorized by the Danish Parliament on March 29, 1904, and granted on June 20, 1904, by the Danish Ministry of Finance. The 30-year concession for issuing notes commenced then and the bank opened in January 1905. The currency issued by the bank consisted of gold notes denominated in 5, 10, 20 and 100 francs dated 1905. It was printed by Bradbury Wilkinson & Co., Ltd., London. Coins issued under the new system included gold 10- and 50-franc pieces along with minor coins of 2-1/2, 5, 10 and 50 bits, and 1 and 2 francs. The 1- and 2-franc coins were silver. The coins were minted and supplied by the Danish Ministry of Finance through the bank. Under the previous system, the islands utilized currency issued by the private Bank of St. Thomas denominated in local dollars and State Treasury Notes denominated in local dalere. The Bank of St. Thomas, founded in 1837, failed in 1898. A branch of the British Colonial Bank handled banking in the islands in the interim. Upon opening, the National Bank exchanged the existing State Treasury notes and coins for its own, as well as various local and foreign silver and gold bullion coins and still viable foreign paper then in circulation. The scope of this task is revealed by the experience of the head clerk on St. Croix (Hoist, 2009). On January 30 [1905], Moller Nielsen was sent to St. Croix in order to carry out the money exchange there. The boxes of new banknotes that they brought with them were deposited at the Fort in Frederiksted and Paper Money * July/Aug 2021 * Whole No.334 296 were daily removed and returned under armed escort by military gendarmes. The gold coins that were turned in had to be weighed on gold scales in order to ascertain that they were of full weight, otherwise they would be rejected. No less than 600,000 francs were exchanged for gold, and furthermore, Moller Nielsen had delivered to him the Government’s reserve of gold doubloons, so he returned to St. Thomas with a supply that corresponded to 2 ½ million francs. Owing to the international monetary chaos attending the outbreak of World War I, the Danish governor of the West Indies issued an order on August 3, 1914, that temporarily abrogated the obligation of the bank to redeem its notes in gold at St. Thomas. That action was superseded by a law to the same effect passed by the Danish parliament October 2, 1914. Irony The bank’s existence and rights were guaranteed by the treaty. Article 3, section 4, provided that “The United States will maintain the following grants, concessions and licenses, given by the Danish Government, in accordance with the terms on which they are given.” Item h in that list was the following. Concession of June 20th, 1904 for the establishment of a Danish West-Indian bank of issue. This bank has for a period of 30 years acquired the monopoly to issue bank-notes in the Danish West India islands against the payment to the Danish Treasury of a tax amounting to ten percent of its annual profits. This, of course, meant that the National Bank of the West Indies continued to operate in the islands. The currency on the islands continued to be that circulated by the bank denominated in francs and bits. Although the Virgin Islands was now an unincorporated United States territory, the currency used there until the end of 1934 continued to sport the portrait of King Christian IX of Denmark. A Loose End The abrogation of the obligation to redeem the notes of the National Bank of the West Indies in gold was still in effect at the time the United States acquired the islands. The ambiguity that this posed was dealt with by fiat through two executive orders signed by Navy Rear Admiral Joseph Wallace Oman, the appointed governor. The first of these, Executive Order 12 dated June 18, 1920, was also countersigned by President Wilson. Executive Order 12 re-established the obligation of the bank to redeem its notes in gold after August 23, 1920. WHEREAS, the National Bank of the Danish West Indies has made representations to the Government of the United States that on account of the difficulties and delays incident to communications, it will find great difficulty in complying with the aforesaid Executive Order on its effective date, and has requested that the effective date of the said Executive Order be extended for a period of sixty days; and WHEREAS, the National Bank of the West Indies has made further representations concerning the scarcity of gold coin of Danish West Indian mintage with which to redeem its notes; Governor Oman received a request by the bankers to delay the date for redemptions in gold. He rescheduled the date to October 25, 1920, in Executive Order 15 dated August 8, 1920, as follows: Figure 3. Virgin Islands Governor Paul Martin Pearson orchestrated the replacement of The National Bank of the West Indies with The Virgin Islands National Bank at St. Thomas, Virgin Islands, charter 14335. Wikipedia photo. Paper Money * July/Aug 2021 * Whole No.334 297 in fulfilling its obligation to redeem its notes on and after October 25, 1920, may redeem such notes as are presented at its principal office in St. Thomas either in gold coin of the Danish West Indies or, at the fixed rate of 96.5 cents United States for 5 francs Danish, in United States coin or currency, including United States gold coins, silver, nickel and bronze coins, gold and silver certificates, notes issued by the United States and notes issued through or by the Federal Reserve Banks and by the National Banks of the United States; provided, however, that United States gold coins may be used in redeeming the aforesaid notes only if such coins be within the legal limit of tolerances in regard to fineness and weight as provided in Sections 3535, 3536 and 3537 of the Revised Statutes of the United States, and that United States subsidiary silver, nickel and bronze coins may be used only up to the respective amounts for which such coins are legal tender under the laws of the United States. Thus, the notes were as good as gold and continued to circulate without resistance until the notes were called during the liquidation of the bank in the mid-1930s. A New Monetary Era There was agitation from all quarters to put the economy of the islands on a U.S. currency basis from the outset of the handover because from then on most of the trade to and from the islands was with the U.S. mainland with considerable financial clearing through New York banks (House of Representatives, 1920, p. 32-37). However, a U.S. dollar-based local economy was not possible under the terms of the cession treaty owing to the grandfathered monopoly right of The National Bank of the Danish West Indies to issue the currency on the islands. Obviously, the U. S. Treasury and the Territorial government desired to convert the economy of the U.S. Virgin Islands to a U.S. dollar basis as soon as the Danish monopoly expired in 1934. To accomplish this, an American bank had to be encouraged to establish a branch or branches on the islands or a new bank had to be organized. The seriousness with which this was taken is revealed by the fact that a committee consisting of Secretary of the Treasury, Secretary of the Interior and Governor was formed in 1932 to pursue it (Dept. Interior, 1932, p. 136). The search for a mainland bank interested in establishing offices on the islands began in March 1932. Two consultants hired by the Department of the Interior arrived on the islands to assess the situation (NYT, Mar 16, 1932). Nothing came of their work. The New York Times (Jun 24, 1934, p. 57) reported “Representative of the Chase National and the National City Bank, among others, have looked over the field but nothing developed.” Naturally, the officers of National Bank of the Danish West Indies didn’t want to relinquish their monopoly rights so a delegation consisting of Managing Director Axel Holst and an island merchant Herbert Lockhart visited Copenhagen in June 1933 to explore their options (NYT, Jun 4, 1933). That initiative also bore no fruit. Lacking interest on the part of mainland banks, the course settled upon by the Governor of the Virgin Islands and the U. S. Treasury was to establish a national bank owned and operated by islanders. Governor Paul Martin Pearson, a Hoover appointee, took the lead in carrying this concept forward. The option of forming a locally owned national bank was announced by Governor Pearson on April 6, 1934. The plan was to capitalize the bank at $175,000, of which $125,000 was to be subscribed by the Reconstruction Finance Corporation, on the condition that $50,000 be subscribed locally (NYT, Apr 6, 1934). This was a highly unusual arrangement because at the time the Reconstruction Finance Corporation primarily was investing in existing faltering depression-damaged U.S. banks by infusing them with cash in exchange for preferred stock, until they could be returned to a sound state, at which time they could buy back the preferred stock. Here, the RFC was pledging more than 70 percent of the capital to create a new bank. Very obviously, U.S. Treasury officials were paving the way for its organization. A letter from Governor Pearson to the Danish Finance Minister outlined his vision for the liquidation of the Danish bank and its replacement by the new national bank (Pearson, Oct 4, 1933). I stated in the communication the desire of this Government that mutually satisfactory arrangements be made with the National Bank of the Danish West Indies for a transfer within the next sixty days if possible, and that the United States Bank should take over the assets and liabilities of the National Bank of the Danish West Indies and undertake to liquidate the assets. Paper Money * July/Aug 2021 * Whole No.334 298 In connection with this matter, I desire to inform you that it is the opinion of representative men in the Virgin Islands, who would probably become the Board of Directors of the United States Bank, that Mr. Axel Holst, the Managing Director of the National Bank of the Danish West Indies, should be selected for the Managership of the United States Bank. To interested persons here, it seems that such an arrangement would not only enable Mr. Holst to liquidate the assets of the National Bank of the Danish West Indies with less loss and in shorter time than if he were acting as liquidator independently of the United States Bank, but at the same time the United States Bank would, at its inception, have the benefit of the influence and knowledge which Mr. Holst combines in rare degree. Delays in organizing the new bank ensued owing to reluctance on the part of the Virgin Island business community to buy into the concept. The New York Times (Mar 25, 1935) reported the following. When local subscriptions still were not forthcoming, the RFC sent two experts here. Since then the two have been scouring St. Thomas and St. Croix for subscriptions. Despite the large deposits in the Danish Bank, they found the local business men reluctant to invest. Only after many talks and considerable persuasion and explanation was the $50,000 finally pledged. The long delay is variously attributed to the lack of cooperation from many islanders, mistrust of Federal-sponsored institutions and lack of confidence in Governor Pearson’s administration. Only after one of the RFC experts had made clear at a meeting of the Colonial Council that subscribers could qualify as directors of the new bank and direct its affairs and that the local administration would have nothing to do with it was the “sales resistance” of the islanders broken down. Finally, it was announced on March 25, 1935, that the necessary subscriptions of $50,000 had been secured so organization of the new bank could proceed. In the meantime, the National Bank of the Danish Figure 4. Issued 20-franc gold note from The National Bank of the Danish West Indies. These notes were fully redeemable in U. S. currency until 1939, so they were redeemed making survivors very scarce. Paper Money * July/Aug 2021 * Whole No.334 299 West Indies continued operating although its right to issue currency had ceased with the close of business on June 19, 1934. The Virgin Islands National Bank was formally organized April 12, 1935, and chartered April 30th, when it was awarded charter number 14335 by Comptroller of the Currency J. F. T. O’Connor. Patrick J. Fitzsimmons arrived on St. Thomas on April 10th (VIDN, Apr 12, 1935) and was installed as its interim president until a permanent president could be hired. Ludvig Christensen was named cashier. Albert E. Wharton was brought on board as permanent president in February 1936 (NYT, Feb. 22, 1936). Wharton came from a vice presidential position at the Morris Plan Bank of Norfolk, Virginia. He previously had served as cashier at the National Bank of Commerce of Norfolk, VA, charter 6032, from 1921-1929 and as assistant casher 1918-1920. The bank opened at its offices in the former National Bank of the Danish West Indies facilities in Charlotte Amalie and Christiansted at 9 am on May 1, 1935, a Wednesday (VIDN, May 1, 1935). The Frederiksted opening was delayed pending receipt of authorization from the Comptroller of the Currency. Thus, the National Bank of the Virgin Islands was a national bank with head office at Charlotte Amalie on St. Thomas, with two branches on St. Croix. This was allowed under national banking law because branch banking was legal in the Virgin Islands. The bank directors and staff with one exception were Virgin Island residents (VIDN, Aug 1, 1935). Axel Holst, Managing Director of the National Bank of the Danish West Indies, was not among them. Redemption of Franc Gold Notes Ordinances were passed by the Colonial Council of St. Thomas and St. John, and the Colonial Council of St. Croix, to place the islands on a U.S. currency basis (VIDN, Jul 14, 1934). The conversion took effect February 11, 1935 (NYT, Mar 25, 1935). Governor Pearson by proclamation declared on July 14, 1934, that the United States government would exchange U.S. coin and currency at the rate of 0.193 dollars per franc. The exchanges were carried out at the three offices of The National Bank of the Danish West Indies. The old money would cease to be legal tender one year later. Notices were published regularly in the Virgin Islands Daily News by The National Bank of the Danish West Indies that laid out the specifics as follows (VIDN, Apr 12, 1934). 1. All Circulating Bank Notes presented during the period April 1, 1935, to April 1, 1936, to the Bank at its principal office in St. Thomas or either of its branches in St. Croix, or at any agency or agencies designated by the Bank, will be redeemed by the Bank on demand. 2. With approval of the Governor, the Bank may on April 2, 1936, deposit with the Government in a fund to be known as the Note Redemption Fund an amount in legal tender, coin, or currency of the United States, equal at the legal rate of fifty percentum of the Notes outstanding at the end of the business day of April 1, 1936. 3. Thereafter, and upon proclamation of the Governor, the Notes of the Bank shall be redeemed from the Note Redemption Fund in the order of presentation for redemption, and in accordance with the rules established for the said fund; provided, however, that the Government of the Virgin Islands shall be under no obligation to redeem any such Notes if not presented for redemption before April 1, 1939, or if the Note Redemption Fund shall have been exhausted. 4. After the issuance of the Governor’s proclamation, no action may be commenced against the Bank for money due and payable upon any of the Notes. The Notes of the National Bank of the Danish West Indies will cease to be legal tender and will not circulate as money after September 15, 1935. Unstated, of course, was that the currency of The National Bank of the Danish West Indies was not redeemed in gold after January 1934 because by then the United States was off the gold standard. The Big Picture This was the story of the exclusive circulation of money within the Virgin Islands, a territory of the United States, that consisted of currency issued by a bank chartered by Denmark and coinage coined by Denmark. This peculiar situation persisted for 17 years after the islands were acquired by the United States as the result of a provision in the treaty ceding the land to the United States. The provision allowed The Paper Money * July/Aug 2021 * Whole No.334 300 National Bank of the Danish West Indies to maintain its exclusive monopoly over the circulation of money in the islands. The result was that the local economy of the Virgin Islands between 1917 and 1934 operated with paper and coin denominated in francs and bits where the currency carried the portrait a Danish monarch. That currency was highly regarded, being redeemable for gold for most of that period. This quirk of history teases the question of U. S. sovereignty over the money in use in one of its territories. Its use bothered some people philosophically and was a bit of a nuisance in the financial discourse between the mainland and islands, so there was agitation for change. However, the United States honored the treaty that grandfathered in the Danish system until 1934. Besides, as a practical matter, the isolated micro economy of only about 22,000 U. S. citizens in the form of Virgin Islanders was affected, so it didn’t cause a noticeable perturbation within the overall U. S. economy. The issue certainly wasn’t of sufficient concern to cause the United States to challenge or abrogate the terms of an otherwise honorable treaty with a friendly nation. There was one curious sovereignty detail, and that was who supervised the bank, the Danes through the Danish Ministry of Finance or some U. S. entity? A statement in Governor Pearson’s 1933 annual report reveals that the U. S. Comptroller of the Currency provided oversight. Specifically, Pearson reported that H. N. Stronck, national bank examiner, examined the bank on February 22, 1932. Of interest to this discussion is that he found that the outstanding circulation on that date to be 961,480 francs equivalent to $139,300 (Pearson, 1933, p. 7). The National Bank of the Danish West Indies was liquidated after its concession expired. Although the 30-year concession expired in 1934, delays in financing the new bank delayed the transition from the old money system until the spring of 1935. The Danish bank closed on April 30, 1935, and the new National Bank of the Virgin Islands opened the next day. The franc currency was redeemable until April 1, 1939, after which it was demonetized. Most of the notes were exchanged for U.S. currency in the Virgin Islands, although note holders had the option to redeem them for Danish kroner. The fact that the franc currency was sound, and that ample time and opportunity for its redemption was available and well-publicized, resulted in wholesale redemption of the paper currency. The result is that surviving issued pieces of this historically interesting currency are scarce to very rare. The 5-franc notes can be located with some patience, but 10-franc notes rank as very scarce. Issued 20- and 100-franc notes are virtually impossible to find. A few salvaged circulated but canceled 100-franc pieces are reported. Face and back proofs of all denominations are occasionally available. The Virgin Islands National Bank was purchased by The First Pennsylvania Banking and Trust Company in April, 1960, as a first step as that bank expanded its reach into the Caribbean and Central America (NYT, Apr 28, 1960). At that time, The Virgin Islands National Bank had $17,200,000 in deposits. Two Incidental Facts The only place where Columbus actually set foot on what was to become United States soil was at Salt River on St. Croix. Governor Paul M. Pearson was the father of muckraking commenter Drew Pearson, writer of the syndicated Washington Merry-Go-Round column of the mid-20th century. References Citied and Sources of Data Brady, Marvis H. Donovan, 1969, An historical account of the purchase and transfer of the Danish West Indies: Virgin Islands Department of Education, ESEA Title III Booklet 9, 15 p. plus appendices. Brun. C., Danish Minister to the United States, and Robert Lansing, U.S. Secretary of State, Aug 4, 1916, Cession of Danish West Indies, 39 Stat. 1706, Treaty Series 629. Danish Ministry of Finance, June 20, 1904, Promulgation of grant of concession for the establishment of a Danish West Indian Bank of Issue, 6 p. Department of the Interior, 1931, Annual report of the Department of the Interior: U. S. Government Printing Office, 172 p. plus appendices. Department of the Interior, 1932, Annual report of the Department of the Interior: U. S. Government Printing Office, 163 p. plus appendices. Department of the Interior, 1934, Annual report of the Department of the Interior: U. S. Government Printing Office, 418 p. Dyroff, Jan M., Oct. 1992, Early numismatics of the Virgin Islands: The Numismatist, p. 1702-1708. Paper Money * July/Aug 2021 * Whole No.334 301 Hoist, Olav, 2009, A banker in the Danish West Indian Islands: St. John Historical Society newsletter: [https://stjohnhistoricalsociety.org/vol-x-no-4-january-2009-a-banker-in-the-danish-west-indian-islands-by-olav-hoist- in-danish-translation-courtesy-of-nina-york/] House of Representatives, Jan 1920, Virgin Islands, Report of Joint Commission appointed under authority of the concurrent resolution passed by the Congress of the United States: House Document 734, Government Printing Office, Washington, DC, 38 p. Lansing, Robert, Jul 19, 1931, Drama of the Virgin Islands purchase: New York Times Magazine, p. 4-5. New York Times, Mar 16, 1932, Opens banking Inquiry, p. 36. New York Times, Jun 4, 1933, Virgin Islands bank seeks Permit, p. 28. New York Times, Apr 6, 1934, Forming national bank for the Virgin Islands, p. 1. New York Times, Jun 24, 1934, New bank project stirs St. Thomas, p. 57. New York Times, Mar 25, 1935, Virgin Islands get funds for a bank, p. 6. New York Times, Feb 22, 1936, Sails to head Virgin Islands Bank, p. 29. New York Times, Apr 28, 1960, Bank is acquired in Virgin Islands, p. 55. Pearson, Paul M., 1933, Annual report of the Governor of the Virgin Islands for the fiscal year ended June 30, 1933: U. S. Government Printing Office, Washington, DC, 12 p. Pearson, Paul M., Oct 4, 1933, Letter from the governor of the Virgin Islands to S. C. Godske-Nielsen, Danish Finance Ministry, regarding liquidation of The National Bank of the Danish West Indies: Journalsager 1933-1938, Danish National Archives, Danish West-Indies sources of history [https://www.virgin-islands-history.org]. Scott, James Brown, 1916, The purchase of the Danish West Indies by the United States: The American Journal of International Law, v. 10, no. 4, p. 853-859. U.S. Department of State archive: https://2001-2009.state.gov/r/pa/ho/time/wwi/107293.htm Virgin Islands Executive Orders 12 (Jun 18, 1920) and 15 (Aug 8, 1920), signed by Governor J. W. Oman. [Virgin Islands] Daily News, Jul 14, 1934, A proclamation, Exchange of United States Coin and Currency for Danish West Indian Coin, p. 2 and succeeding issues. [Virgin Islands] Daily News, Apr 12, 1935, President of new bank here, p. 1. [Virgin Islands] Daily News, Apr 12, 1935, Notice to holders of circulating Bank Notes of The National Bank of the Danish West Indies, p. 3. [Virgin Islands] Daily News, May 1, 1935, New bank opens Wednesday, p. 1. [Virgin Islands] Daily News, Aug 1, 1935, p. 3. Wikipedia: https://en.wikipedia.org/wiki/Danish_West_Indies Wikipedia: https://en.wikipedia.org/wiki/Danish_West_Indies#Slavery Paper Money * July/Aug 2021 * Whole No.334 302 U N C O U P L E D : PAPER MONEY’S ODD COUPLE Joseph E. Boling Fred Schwan Another OSS Counterfeit Here is a recently-discovered product of the Office of Strategic Services (OSS) project code named “Merchandise”—the counterfeiting of Japanese invasion money notes for use by Team 101 in Burma (and potentially by others). We have long known of Burma JIM 10-rupee notes created at the request of Col. Carl Eifler, commander of Team 101. We also knew of Burma JIM counterfeits created by the British Special Operations Executive (SOE), in two denominations (one and ten rupees). But we have not known of any five-rupee notes being created for either organization. Recently a descendant of one of the men involved in the manufacture of the OSS counterfeits provided the sheet shown below to Herb Friedman, a long-time documenter of psychological warfare (psywar) printings by many operators for all theaters of war. Herb passed the news to me. See Boling page 308 A Variety of World War II checks We still have a few types of military checks to consider. Of course, as usual, the definition of military check is open to interpretation. Cash shortages were common throughout the war around the globe. The shortages spawned many different solutions, the study of which we have been pursuing for more than a few decades. One of the solutions was checks. Today we will discuss circulating checks and a few other checks from WWII. Circulating checks were not WWII inventions, but the checks were created and used in various places. The basic idea was for a bank to issue checks in its own name made out to “bearer” or similar name. The ease of circulation depended largely on the reputation of the bank. Any given issue of checks might have been in as few as one denomination or in ten or more, as in the case of Italy below. By far the most prolific circulating check issues for WWII were in Italy. The following paragraph describing the situation in Italy is taken from World War II Remembered. Immediately following the liberation of Italy, deficit government financing was inevitable. The printing presses of the Bank of Italy turned out great quantities of paper money. Between August 1943 and April 1945 the note issue increased by 159 billion lire, doubling the amount that was in circulation at the time of the Allied invasion. Public confidence in money—of the familiar Italian design—was not, however, undermined; savings in banks, as well as the hoarding of notes by the peasants, continued at such a high rate that there were not enough notes in active circulation. Commercial banks began issuing bearer checks in fixed denominations that were accepted at par. The total amount of various bearer checks in Italy by the end of 1943 was 16.6 billion lire; 1944, 45.67 billion; and 1945, 61.4 billion lire. That is a lot of checks! In 1993 Joe and I were working in earnest on World War II Remembered. He spent several weeks at my home working on it full time. I remember it well. Paper Money * July/Aug 2021 * Whole No.334 304 He had an extremely small work space in my office. I had just bought a new computer and rented one for Joe. Those were the days! Somehow I had assembled a large collection of Italian circulating checks. By no particular scheme, the task of cataloging them fell to Joe when we were ready to attack them. We are all fortunate that it fell on him because he did an outstanding job on an extremely complex task. Consider some of the variables: bank name, branch (city), denomination, date, signature, design, printer, paper variety (watermark?) and others. He slaved at it for days with little more than encouragement from me. True, I worked on other tasks for the book, but no other project could match his. The resulting listings covered seven pages and many hundreds, perhaps thousands, of listings. A few additions have been made to the listings in twenty-five years. Most have been the addition of a denomination to an existing listing. Good work, Joe. Shown here are checks issued by Il Credito Italiano for 25,000 and 50,000 lire. The issuer is one of three banks designated as “national interest” banks. These had nation-wide networks of branches. Few Italians saw checks of this value; most circulating checks were for 50-1000 lire. The other checks for discussion today are not listed in Remembered, but they will make it into the second edition if we ever get there! First we have a quite remarkable Bank of France check. Jumping from the center of the check is a German Navy hand stamp. The denomination, 500,000 francs, stands out too, as does the date—19 August 1944. That was a busy time in France! As I write this we have just passed the anniversary of D-Day (6 June 1944). This check was written and cashed only a month and a half after the Allied invasion. The check was written (and cashed) in Le Havre, France. The city had been taken by the Germans as of 14 June 1940, then sealed off from the Germans by Allied advance on 1 September 1944. The check is made out to the German naval garrison finance office. It is probably possible to determine more about the purpose of the check, but it is beyond me at the moment. Paper Money * July/Aug 2021 * Whole No.334 305 Newfoundland declared war on Germany before Canada in 1939! Bases were ceded to the United States in 1940 and construction began immediately. We can assume that this check was for activity in Newfoundland because of the bank of issue—The Bank of Montreal, St. John’s Newfoundland. The account holder seems much less clear to me: Army Base Sub-Account. My guess is that this was a United States Army account for a base in Newfoundland. The check is made to the order of W. Loyola Whelan, A/c John White, Jr. I thought that the prefix to the White name would be an important clue. At first I thought that it was L/c for lieutenant colonel, but the signature on the back confirms that it is indeed A/c. It turns out that this is an abbreviation for “account,” commonly used by British-affiliated bankers. So who was White? Possibly the individual who physically opened the account for the army base—and who may have been long gone by the time this check was drawn (note that neither signature is John White’s). Not the way we do it, but it was not our bank. It is an altogether interesting check. We have another very interesting Newfoundland check to consider. This check too is drawn on the Bank of Montreal, St. John’s Newfoundland. Very importantly, the account is for Savings Certificate Redemption! The problem is that to me, at least, I do not know if the savings certificates were from Newfoundland or Canada! Both issued war savings certificates. Throughout the war Newfoundland was (since 1934)a crown colony. Newfoundland joined Canada in 1949. The date of the check is 1953. The check is made out for $6. Newfoundland sold war savings certificates in $3 and $6 (and higher) denominations, maturing in six years. The lowest Canadian denomination was $5, and next was $10. This certainly looks like payment for redemption of a Newfoundland $6 certificate, or for a pair of $3 certificates. Paper Money * July/Aug 2021 * Whole No.334 306 Finally, we have two rather routine business checks that are dated during the war. They are not so routine after more careful inspection. The Winters National Bank check declares in bold red (twice) that it is drawn on the employee’s war bond account of the Ohio Yellow Cab Company. Anything connected with war bonds gets my attention, but just how one of the employees would be owed $1.88 from the bond account eludes me. The check drawn on the First National Bank of Juneau, Alaska is much more attractive and includes similar typed information. The payroll data includes an entry for a $2.84 victory tax. I cannot help but smile that the employer was Juneau Cold Storage and the employee Henry KOLDnoski. I am so easily amused! Paper Money * July/Aug 2021 * Whole No.334 307 Boling continued: We have here an uncut sheet of ten notes. Actually, looking at the left margin, it appears that this is only a partial sheet—we don’t know how many notes were on a full sheet. Figures 2 and 3 are face and back of the top left note from this sheet. Based on what we have learned about other notes from this operation, we examined these notes for “secret marks.” Counterfeiters typically insert (or remove) tiny details that will identify their work when compared to a genuine note. In this case, there are a pair of such modifications, in the frame at the top of the face of the note. There is a leaf on each end of the top frame and ribbons looping up to the top edge between them (ignore the leaves and the device in the center). All of the ribbons have four shading lines inside them, running from the top edge down and to the right on the left end of the note, and down and to the left on the right end of the note. In many cases the top shading line is shorter than the others and sometimes weaker. On the original Japanese product (figures 4 and 5), in the 4th and 5th ribbons from the left (counting from the first ribbon to the right of the leaf at the left end of the top frame), the second shading line from the top extends all the way to the end of the ribbon, to where the bottom of the ribbon is curving up to a point before the next ribbon starts. On the OSS counterfeit, that second line ends right where the top shading line ends—it does not come close to extending all the way to the end of the channel in which the shading lines are running. That leaves a slightly larger white space at the upper right of those 4th and 5th ribbons. It is not quite a naked-eye diagnostic—one needs a magnifying glass to confirm its presence. I have not had hands-on access to the sheet, for making a 20x photograph of the OSS version of the 4th and 5th ribbons. Figure 6 is an enlargement of the area of interest from the image of figure 2—I hope you can see the shortened second lines in ribbons 4 and 5. We have no documentation that any five-rupee notes were printed in quantity and shipped to the field. None have appeared in groups of Allied counterfeits apparently assembled by users at the time. But now we know that the five-rupee note was at least prepared to the printing stage. We welcome reports of notes with the OSS diagnostic found from circulation. And incidentally—the paper of this sheet has the correct watermark for JIM. Figure 2 above & Figure 3 below. Figure 4 above & Figure 5 below Figure 6 Paper Money * July/Aug 2021 * Whole No.334 308 Chump Change Loren Gatch Two Cheers for Commemorative Currency Owen Linzmayer, proprietor of The Banknote Book, uses the term “numismatic product” to describe a certain kind of paper money that is designed more for collectors than for actual spending, like real currency should be. I like his term because it echoes my disdain for those currency issues which I believe exploit the collector, to the benefit of some country’s treasury. It’s easy to dismiss my view as a kind of snobbery, and a particularly stupid kind at that. After all, seigniorage is all about national governments issuing paper currency at nominal production costs but with vastly higher face values (well, maybe not in Venezuela). Why should these various numismatic products be any different? Moreover, there’s clearly a demand for artistic fantasy issues like those put out on behalf of the Mujand Republic, or for the endless variety of 24 carat gold Donald Trump novelty banknotes. De gustibus non est disputandum: Who am I to judge? Still, I think the credibility and dignity of the hobby requires sounding at least some note of disapproval. For Linzmayer, a “numismatic product” has three features. First, the note will typically feature some weird or non- functional denomination, particularly if the denomination matches whatever anniversary to be celebrated. Second, it will be produced in a limited run, so as to suggest scarcity as a collectible. And third, it will be packaged in some kind of presentational holder and sold at more than face value. Such “numismatic products” don’t enter circulation. They’re not meant to. Again, the question is, why should that matter? After all, catering to the collector is a time-honored part of numismatics. Modern coin collecting is already a wasteland of non-circulating legal tender coins celebrating such luminaries as Homer Simpson (thanks, Tuvalu!). While not as widespread, this has long happened in the paper money field as well. Once German towns caught on to the interest in Weimar-era Notgeld, they revved up their printing presses for the collectors’ market. The famous “wooden money” of Tenino, Washington was always a tourist trinket. The Italian Miniassegno of the 1970s did solve a coin shortage, but also created a numismatic boomlet that Italian banks duly obliged. The Trans-Dniester Republic, a sliver of slavism wedged between Moldova and Ukraine, exists just a few steps above the Hutt River Province in terms of international legitimacy. Yet it manages to crank out multiple currency notes of dubious significance, commemorating such milestones of human achievement as the 100th anniversary of the KGB (seriously). Vietnam produced a practically valueless 70-dong note (current exchange rate: 23,000 VND = 1 USD) celebrating 70 years of Vietnamese banking, which has to be a genuine feat if the country’s economy really does operate with banknotes of no discernable worth. Even those notes that don’t descend to the level of “numismatic product” leave something to be desired in terms of what they celebrate. Just last year Turkmenistan saw fit to honor—wait for it—“twenty-five years of neutrality” (i.e., of doing essentially nothing in particular). Yet the banknotes celebrating this principled inaction feature, among others, the fierce visage of the romantic bandit Köroğlu, an epic figure of Turkish folklore, who looks like nothing would make him happier than to be marauding across the Eurasian steppes. Earlier this year Saudi Arabia, which apparently has experienced a secret palace coup engineered by corporate management consultants, proclaimed on its 200 riyal note the fifth year of something called “Kingdom Vision 2030.” To be fair, countries are only seeking to put their best feet forward. The Saudis aren’t about to honor the anniversary of Jamal Khashoggi’s entrance into their Istanbul consulate any time soon (any banknote commemorating that would need a lot of perforations). At their best, such issues celebrate something safely distant in the past, about which there is little controversy. The Philippines has done this very well with their recent note devoted to Lapu-Lapu, a Rambo-looking fellow who, 500 years ago, bested Ferdinand Magellan’s forces in the battle of Mactan. This backstory has all the right elements—indigenous people good, Europeans bad (probably bringing Christianity)—plus it took place so long ago that there’s no longer any hard feelings. And, the commemoration distracts from the fact that the Chinese are busy right now stomping all over the Philippines’ sovereignty in the South China Sea. In the United States, we have the opposite problem. Ever since its glory days, American currency has become essentially frozen in appearance, with the singular exception of the 1976 rendition of John Trumbull’s “Declaration of Independence” on the back of the deuce. To fleece collectors, the BEP is reduced to packaging regular-circulation notes according to contrived themes, or with weird serial numbers. We don’t have to Make American Numismatic Products Great Again. But we can at least aim for Better. Paper Money * July/Aug 2021 * Whole No.334 309 The Obsolete Corner The Bank of Salem by Robert Gill Hello, paper money lovers. As I write this article, it seems that "Covid Times" are beginning to level off. It has been a terrible year and a half for this world. Hopefully, we are over the worst of it. Since my last article, I have been successful in acquiring a very rare sheet from the State of Illinois to add to my collection. Perhaps I'll be reporting on it before too long. But now, let's look at the sheet that I want to share with you. In this issue of Paper Money, let's go to the State of New York, and look at a sheet that is probably unique. And that is on The Bank of Salem, of Salem, New York. When the Haxby reference was printed in 1988, all notes on this institution were listed as SENC (Surviving Example Not Confirmed). And since then, I have observed only a couple of "singles". I was fortunate when I was able to acquire this prize as the Shingoethe Family's vast holdings were dispersed. As you can see in the scan, it is tattered and has ink-burn problems. But oh!... what a sheet it is. And now for the history. During the 1830s, Salem, Washington County, New York, had suffered the rash inflation of fictitious values and reckless trifling with commercial integrity, which had proved to deter the prosperity of many areas in the country. There were some who had been given the responsibility of directing its financial interests, yet their zeal had been tempered with a wise conservatism that had restrained them from jeopardizing the trusts committed to their care. Some locals realized a need for a financial institution that their trust could be placed in. There appeared, in an 1834 issue of the Washington County Post, a call for a meeting of citizens interested in the organization of a bank under the existing state law. But the response to this call was not such as to give encouragement to the project. It was not until the unstable economy created by the Panic of 1837 that steps began to be taken toward the establishing of a bank in Salem. The necessities of exchange in the area made the need for a bank necessary to meet the demands of trade, and the promotion of commercial supremacy then held by Salem. For a while, however, the movement languished, and it is probable it might had failed altogether had there not appeared at this time in Salem the man for the occasion. Benjamin F. Bancroft’s ability as an organizer, and the zeal, energy, and business sagacity with which he prosecuted the work, triumphed over all obstacles. He was the driving force that led to the incorporation of The Bank of Salem, which came on January 11th, 1853. At that time Bernard Blair was elected President, and Bancroft was seated as Cashier. The red brick Bank on Main Street opened on May 10th, 1853, with a capital of $110,000. The management of the Bank’s affairs was largely in Bancroft’s hands from the first. By him, its policy was outlined, and the method of its operation devised. Although the business done by the Bank was safe and conservative from the first, the financial skill of its management was such from the beginning that its profits were large, and its dividends were regular and satisfactory. In 1858, John Williams succeeded Blair in the presidency. While this Bank recognized and well discharged the duty of which it owed its stockholders, it was not regardless of the claims of patriotism. When it became evident, in 1861, of the great division which threatened the very existence of this country, and when it became manifest that the ability of the country to maintain its integrity was dependent upon the confidence with which its people would entrust to the government the means necessary for subjugation, The Bank of Salem was not found wanting. Scarcely had the call for the first loan been issued, when, on April 23rd, 1861, at a meeting of the Board of Directors, the following resolution was passed without a dissenting vote: “Resolved, that The Bank of Salem tender to the State of New York its share of the $3,500,000 loan (to the State of New York), needed for arming and equipping the military forces of the state, which is subject to the state when required.” When town and county also sought for funds to equip and maintain their proportions of volunteers, the Bank also gave them timely and substantial aid. The management of this Bank believed in our country and the principles for which it stood, and they were not afraid to put their money into it. When the National Banking Act of 1865 was passed, this bank promptly took advantage of its provisions. In July of 1865, it was organized as The First National Bank of Salem. So there's the history that I've been able to put together on this institution. But, as always, I'm hoping Paper Money * July/Aug 2021 * Whole No.334 310 that someone reading my article can supply additional information. I really like hearing from my fellow paper lovers. I invite any comments to my NEW personal email address robertdalegill@gmail.com or my cell phone number (580) 221-0898. So until next time, HAPPY COLLECTING. Paper Money * July/Aug 2021 * Whole No.334 311 The front of the Type-40 Treasury note endorsed by Maj. Charles S. Severson, Assistant Quarter Master. front and back images: Chris Jones Maj. Charles S. Severson Chief QM to Gen’l N. B. Forrest Confederate Treasury notes endorsed by Maj. Charles S. Severson, AQM, are not terribly difficult to find with a rarity rating of R11, but they are a prize to collectors and he is one of the very few for whom we have an image. Severson was the Chief Quartermaster to Gen’l Nathan Bedford Forrest, one of the most storied generals of the Confederacy. Forrest was a businessman with no formal military training, but he was the only general feared by Union Gen’l U. S. Grant. Forrest devised the lightning- strike tactics later utilized by the German military in their blitzkrieg warfare, and cadets at West Point are today taught military tactics invented by Forrest. Major Severson was a witness to the fast movements of a very creative commander; his job was likely the opposite of a more comfortable Post Quartermaster. Severson’s endorsements posed a great mystery to the group of collectors known as the Trainmen. At least four very different handwriting styles with Severson’s endorsement were noted, and until Severson’s original documents were available online at Fold3.com, we did not know which signature style was Severson’s. We were correct in assuming that the different versions were attributable to different clerks employed by and signing for Severson. As it turned out, we found that it was not at all uncommon to find clerical signatures on endorsements by officers on Confederate Treasury notes. The mystery of the genuine signature of Severson was solved by careful inspection of original documents and this method served as a template to decipher the clerical signatures of other officers. Here is an example of Severson’s genuine signature as found on the back of the note illustrated above, courtesy of Chris Jones: The endorsement reads: “Issued by Maj. C S Severson a.q.m Mar 12 1863” The Quartermaster Column No. 19 by Michael McNeil Paper Money * July/Aug 2021 * Whole No.334 312 Maj. C. S. Severson, 1865 image: John C. Thompson The key in this signature is the older form the letter “S” with florid strokes well above and well below the signature line. None of the clerical signatures exhibit this form. The mystery was solved by comparing the signatures at the top and the bottom of vouchers filled out by the clerks. The clerks almost always filled out the vouchers, and the name of the Quartermaster in the header would have been written in the hand of the clerk. The signature at the bottom of the form usually matched the signature at the top of the form because what we are looking at in most instances is a copy of the original made by the clerk. But occasionally we see the signature at the bottom of the form in a different hand, and this likely indicates that it was signed by the Quartermaster. In Figure 1 at the left we see the signatures at the top and bottom of a form signed on June 30th, 1863. The signature at the top is written by the clerk who filled out the form, and the very different signature at the bottom is likely that of Severson. In Figure 1 at the right we see endorsements of Treasury notes which match these signatures. The example at the top right is signed by the clerk for Severson; the example at the bottom right is signed by Severson. In Figure 2 we see two other examples of clerical signatures for Severson. The example at the left has a strong left-handed style, while the dense example at the right exhibits a capitalized form of “e” in “Severson.” These four known signature styles for Severson were a great mystery for many years. Original documents in Fold3.com’s website are a goldmine for solving such problems. 1861 There are only forty-six documents for Charles S. Severson in the files for Confederate Officers in the National Achives; thirteen more are found in the files for Miscellaneous. The scarcity of documents for a man whose career spanned 1861 to 1865 is probably a reflection of the hectic conditions created by the lightning-strike warfare of Severson’s commander.1 The earliest dated document, August 31st, 1861, is a pay voucher to Severson for $100.00 for his services as a clerk in the Quartermaster Department of the State of Mississippi at Iuka. Severson was promoted from Clerk to Major & Quartermaster on November 20th by Gen’l Charles Clark, who later became Governor of Mississippi. 1862 Severson served with Gen’l Clark until June 20th, when he was sent to Selma, Alabama, to manufacture clothing for Polk’s Corps. He was relieved of that duty by Col. O’Bannon, the Chief Quartermaster of Tennessee, and ordered to report for duty in Kentucky, where he met N. B. Forrest and became his Chief Quartermaster. A Special Requisition dated October 25th located Severson in Murfreesboro, Tennessee. 1863 Severson signed a voucher for forty-four gallons of whiskey at Columbia, Tennessee, on January 20th. A voucher dated April 20th placed Severson in Corinth, Mississippi. A voucher dated May 7th at Rome, Georgia, would have put him in proximity to Cedar Bluff, Alabama, where Gen’l Forrest successfully forced the surrender of Union troops on May 3rd. Severson’s returns and reports dated June 30th showed that he had made expenditures of $146,840.20 for the preceeding quarter, a significant sum. Severson’s vouchers located him in Athens, Tennessee, in July, and in Marietta, Georgia, on September 25th. 1864 A forage voucher placed Severson in Oxford, Mississippi, on February 2nd. Documents in the National Archives correct an ambiguity in the book, Great Commanders, General Forrest, by J. Harvey Mathes, Appleton & Co., 1902, page 355, which states that “Major C. S. Severson, chief quartermaster, was appointed November 20th, 1861 and served on the staff [Forrest’s] in every campaign until late in 1864, when he was retired.” Severson did not retire from the service; he was transferred from Forrest’s command to other work. 1865 A Special Order dated January 6th, 1865, assigned Severson to the duty of settling and paying claims against the Quartermaster Department in Alabama and Mississippi. There are no reasons given for this change, but a note by Gen’l Forrest on November 13th, 1864, shows that he was highly valued: “Maj. Severson having been relieved from Paper Money * July/Aug 2021 * Whole No.334 313 duty with me as Chief Q.M. by the War Dept., I suggest that you assign him to assist my brother (Capt. W. H. Forrest) in getting out Art(illery) horses from the enemy’s lines, etc.” No further records shed light on Severson’s ultimate fate. ◘ carpe diem Notes and References: 1. Nathan B. Forrest. Useful background information on Nathan Bedford Forrest places Severson’s career in perspective: en.wikipedia.org/wiki/Nathan_Bedford_Forrest 2. McNeil, Michael. Confederate Quartermasters, Commissaries, and Agents, published by Pierre Fricke, Sudbury, MA, 2016. More research on Charles S. Severson can be found on pages 647-651. Figure 2. Here are two more known clerical variations on Severson’s signature. The image at the left shows a distinctly left-handed script and the image at the right is very dense and exhibits a capitalized form of “e” in “Severson.” images: at left, courtesy of Dave Schnorr; at right, courtesy of Randall Smith. Figure 1. At the top left is Severson’s name written by a clerk in the header of a voucher signed on June 30th, 1863; at the bottom left is the signature by C. S. Severson from the bottom of the same document. At the top right is the endorsement of Severson on a Treasury note by one of his clerks which matches the handwriting on the voucher by the clerk; at the bottom right is the genuine endorsement by Severson on a Treasury note which matches the handwriting at left on the bottom of the voucher. images: at left, courtesy of Fold3.com; at top right, courtesy of Amanda Sheheen; at bottom right, courtesy of Chris Jones. Severson’s name from the header Severson’s signature at the bottom SAME DOCUMENT Paper Money * July/Aug 2021 * Whole No.334 314 $1 SC Series 1935-B M00579667D - Rare 1935-B MD Block BEP records indicate the official high serial number for $1 Series 1935-B notes was M00648000D. Not all notes from M00000001D to M00648000D are 1935-B notes. Using observed serial numbers as a guide, it appears 216,000 Series 1935-B MD notes were printed from M00432001D to M00648000D. Lower serial number notes are Series 1935-C. Also pictured is a Series 1935-C note with a serial number of M00089129D. One 1935-B MD block note has been observed in CU condition, plus a small run of AU notes. The pictured 1935-B note is from the run of AU notes. Paper Money * July/Aug 2021 * Whole No.334 315 by James Hodgson New Discovery: $2 LT 1928D D-A Mule By Jamie Yakes A new discovery has increased the number of $2 1928-series Legal Tender Note mule varieties. Phil Thomas recently reported a Series of 1928D note with serial D08423005A, and macro face 245 and micro back 275 (Fig. 1).1 This is the first known 1928D mule from the D-A block. Series of 1928D $2 mules had previously been known from the B-A and C-A blocks. Thomas’s note is yet another recently discovered example of a late-finished sheet.2 Those were sheets produced by normal means along with others of the kind but numbered many years after the plates were dropped from press and the presumed end of numbering for that variety. His note was numbered two years later than the previous highest reported 1928D mule. A bit of background is necessary to explain how this mule note came to be produced. The BEP produced $2 mules from 1938-42, when they were transitioning from micro to macro plate serials on small-size plates. During the transition they comingled both kinds of plates on press as they phased out micros and increasingly used more macros. What resulted were combinations of sheets with micro faces and macro backs (and vice versa), what we term mules, and non-mules, which have the same size of plate serials on the face and back. At the end of 1937, the BEP was using $2 1928C micro faces and micro backs that yielded only non-mules. In January 1938, they began making macro backs beginning with back plate 289, and certified the first plate, 290, on February 4. Initial use of those backs followed the next year on August 22, 1939. In February 1938, the BEP began making Series of 1928D faces, beginning with face 182, certified on the 25th. All 1928Ds had macro plate serials. They increased production of 1928D faces in September and October, and started sending plates to press on March 13, 1939. The first $2 mules produced were 1928D micro back mules in mid-1939, followed by 1928C macro back mules later that year. B-A block serials were current when 1928D faces came into service and the lowest reported 1928D mule has serial B87580373A. The first 1928C mules received slightly higher B-A serials. Late 1939 and early 1940 was the peak of $2 mule production. Between August 1939 and February 1940, all four plate varieties were in use: micro and macro backs, and 1928C and 1928D faces. Numbering with C-A block serials commenced in 1940, creating two more block varieties of $2 mules. Figure 1. The first reported Series of 1928D $2 mule from the D‐A block. (Courtesy of Heritage Auction Galleries).  Paper Money * July/Aug 2021 * Whole No.334 316 Gradually, use of plate types diminished. From 1938-40, the BEP pressed into service 30 macro backs. In that time, the use of micro back plates began to dwindle as those plates were pulled and canceled. The BEP used 28 micro backs in 1940, 14 in 1941, and only three in 1942. None were used after August 1942. The BEP stopped using 1928C faces in February 1940. Series of 1928D faces remained in production until August 1944 and in service until March 1946. The BEP started to supplant 1928Ds with Series of 1928E Julian-Vinson faces in 1945. Muled 1928D sheets remained in the numbering pipeline for a few months after August 1942. Typically, those stocks were consumed quickly as they proceeded through the numbering division. The previous highest serial on a 1928D mule was C55466648A, numbered later that year.1 Thomas’s 1928D D-A mule had a different fate. Like all other $2 mules, the note is from a sheet printed from 1938-42. Back 275 was the final $2 micro back plate dropped from press, on August 12, 1942. Face 245 was used for three press runs from November 1941 until November 1942. Sometime in that year, sheets from back 275 were mated with face plate 245 to create 1928D macro 245/micro 275 mule sheets. Unlike other $2 mules, the D-A mule was numbered in 1944 instead of being finished in 1942 with the last stocks of $2 mule sheets. It remained in storage with other $2 sheets for the next two years until finally sent to the numbering division. It received serial number D084230054A sometime late in 1944. The first serial delivered that year was C80512001A, and the last, D11052001A. The $2 1928D D-A mule is unique for the variety, and recently sold at public auction for $4,560.3 Collectors now must scramble to find this rare note to complete the mules in their $2 block and variety sets: 1928C B-A and C-A blocks; 1928D B-A, C-A, and D-A blocks; and the two stars. Notes 1. Email communication to author, March 5, 2021. 2. Yakes, Jamie. “1928 St. Louis $10 Transitional-Green Seal Star.” Paper Money 59, no. 6 (2020, Nov/Dec): 457. 3. Heritage Auction Galleries. https://currency.ha.com/itm/small-size/legal-tender-notes/fr-1505-2-1928d- mule-legal-tender-note-pcgs-banknote-very-fine-20/a/3582-21148.s. Accessed June 14, 2021. Sources “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. “Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s.” Containers 40 and 42. Entry P1. Record Group 318: Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. Paper Money * July/Aug 2021 * Whole No.334 317 Rising Tides Lift all “Paper” Robert Calderman Mainstream collectibles have been on a tear across the board this year as prices soar throughout all categories. From comic books and sports cards to video games and classic cars… sorry Karen, your beanie babies are still okay to donate to Goodwill. Many coin dealers have already said this is their best year ever, and we are barely halfway through the calendar! Dealers and collectors both are hungry for inventory and the bourse floor at shows is extremely active with motivated buyers and far less looky-loos. In the paper money world, large size notes seem to be selling steadily at 25% above recent comps or they simply cannot be found as collectors and investors have a very tight grip on their holdings while they ponder the future altitude of the market. Small size high denomination $500’s and $1,000’s are still quite flabbergasting as even the lowest grade examples with problems have risen to unprecedented levels! Is there a ceiling? …one would almost think the deck has been stacked! No conspiracy theories here, we are just seeing an overwhelming increase in demand that has truly been a fun ride for those with nerves of steel. Whether it’s all fueled by FOMO or a truly significant injection of new collector blood, growth in the market is always welcomed and does not readily need to be understood. One large size type note in particular that has been on a significant uptick, are the ever popular Mini-Portholes. These have always been a fan favorite for collectors with stunning artwork and a very impressive layout. On the face of these series of 1899 $2 Silver Certificates, the framed “United States of America” always reminds me of a movie theatre marquee, brightly lit and easily read from two blocks away! George Washington looks especially regal ensconced in his porthole window flanked by the allegorical representation of mechanics and agriculture. This note is truly an artwork masterpiece created by the work of the two highly skilled engravers with names that may be familiar, Smillie and Baldwin. Collectors regularly scoff at the disparity of pricing when comparing $1 Black Eagles to the $2 Mini- Porthole notes. While these are both series of 1899 Silver Certificates they are on vastly different value spectrums with the latter at nearly three times the collectible value of the former. A handful of significant factors come into play in this scenario. As mentioned, the beautiful design alone can create enough demand to cause a price gap, and the enormous popularity of two- dollar bill has always enjoyed a rather cult-like following! Something very notable to reference is the fact that small size silver certificate two-dollar notes do not exist! However, hands down the biggest factor in the difference in value between the two denominations is the overall quantity of notes printed! For every ten thousand Paper Money * July/Aug 2021 * Whole No.334 318 $1 SC Black Eagles printed, there were less than fifteen hundred Mini-Portholes produced! An 85% smaller printing volume of 1899 two-dollar bills stands out boldly creating a clear picture of what makes these deuces well worth the price of admission. Among the ten different signature combinations featured on 1899 $2’s, there is a very significant rarity that collectors should be hunting for! The Napier- Thompson variety is a true prize in any condition. Even a torn in half example would be a coveted addition to any collection. A minuscule 1.8M notes were printed all featuring an H prefix. These deuces rival only the slightly lower N.-T. Series of 1907 five-dollar Woodchoppers that tally in at roughly 1.6M notes printed. It is extremely important to underscore the significance of paper money survival rates vs. those round metal discs things. Paper did not last long in circulation! Large quantities of notes were pulled from service as they were, naturally over time, deemed unfit for use or consequently redeemed as new notes were released and older designs were simply retired. With our magnifying glass we can take a closer look at these numbers. The current observed count of $2 Mini- Portholes featuring the Napier-Thompson signatures stands at only 101 notes!!! This is tremendous for the collecting world. How astounding that for roughly every 18,000 of these notes printed there is just one lonely example that has survived! Currently for all ten varieties combined, there are nearly eleven thousand non-star Mini-Portholes available to collectors. The Napier- Thompson survivors make up less than one percent of this overall quantity. Of these 101 Mini-Portholes, only one third of the notes have qualified for the desirable EPQ/PPQ modifier. This number in actuality may be slightly inflated due to crossing attempts between the two major grading services, but for now it appears only 11 circulated and 20 uncirculated examples have received the almighty Q. Keep in mind that any note that meets or exceeds a grade of 65 at both grading services automatically receives the EPQ/PPQ designation. Featured here is one of only five circulated Napier- Thompson 1899 $2 Silver Certificates at PCGS- Currency w/ PPQ, wow!!! This $2 is graded VF30PPQ. 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: gacoins@earthlink.net Paper Money * July/Aug 2021 * Whole No.334 319 Paper Money * July/Aug 2021 * Whole No.334 320 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA • Hosts the annual National Currency and Coin Convention during March in Rosemont, Illinois. Please visit our Web Site pcda.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the International Paper Money Show, as well as Paper Money classes and scholarships at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. Or Visit Our Web Site At: www.pcda.com Bea Sanchez – Secretary P.O. Box 44-2809 • Miami, FL 33144-2809 (305) 264-1101 • email: sol@sanchezcurrency.com PLATINUM NIGHT® & SIGNATURE® AUCTIONS August 17-20, 2021 | Chicago | Live & Online Paul R. Minshull #16591. BP 20%; see HA.com 60256 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 1.25 Million+ Online Bidder-Members Now Accepting Consignments to Our August ANA Auction Deadline June 21 For a free appraisal, or to consign to an upcoming auction, contact a Heritage Consignment Director today. 800-872-6467, Ext. 1001 or Currency@HA.com Fr. 2230-J $10,000 1928 Federal Reserve Note PMG Very Fine 30 Realized $456,000 D(aniel) N. Morgan Courtesy Autographed Fr. 224 $1 1896 Silver Certificates Uncut Sheet of Four Serial Numbers 5-8 PCGS Choice About New 55 Realized $108,000 Fr. 2221-H $5,000 1934 Federal Reserve Note PMG Choice Uncirculated 64 Realized $168,000 Fr. 1255a 10¢ Third Issue Hand Signed Green Back PMG Extremely Fine 40 Realized $108,000 Philadelphia, PA - $50 1882 Brown Back Fr. 510 The Fourth Street National Bank Ch. # 3557 PCGS Banknote Superb Gem Uncirculated 68 PPQ Realized $108,000 Obstructed Printing Error with Retained Obstruction Fr. 2084-H $20 1996 Federal Reserve Note PMG Choice Uncirculated 64 EPQ Realized $396,000 *Prices realized from our FUN and Central States 2021 auctions are shown.