Paper Money - Vol. XLI, No. 2 - Whole No. 218 - March - April 2002

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r Mk woos* vv., IL 'IF 1Offici 1 Journal of the Society of Paper Money Collectors VOL. XLI, No. 2 WHOLE No. 218 MARCH/APRIL 2002 WWW.SPMC.ORG NATIMIAL ja:4:«14- '411.1attajo ONVI RED - 1001,(4:j Aajajta •,/ ro44 wfr E053809A lamp SPECIAL TOPICAL ISSUE: Nationals, Nationals, Nationals, Nationals, & More Nationals REPUBLIC NATIONAL BANK MB TRUST COMPANY OF DALLAS TEXAS WILL PAY TO THE BEARER ON DEMAND TEN DOLLARS E053809A [tiL 22,"777,-tivBv'act, 6415 .11wMII.C3=,=M,,,rxoarrmssz.iMIW. mar ''' ,601105lirlitliAlOdit X667334 •, • •ii....usso ywritri.nAii,'.7 11053 , Yet Y-4 41),L,Ii.41430 Show Hours: Thursday, March 14 - 2-6 pm Saturday, March 16 - 10 am-6 pm (Advance Preview Day - $25) Friday, March 15 - 10 am-6 pm Sunday, March 17 - 10 am-2 pm A three-day pass is $5 - Children 16 and under are FREE p C.,..A1.% fhl ANNOUNCING The Strasburg Currency and Stock and Bond Show September 12-15, 2002 Lancaster Host Hotel 2300 Lincoln Highway East (Route 30), Lancaster, PA 17602 Show Hours: Thursday, September 12 - 2-6 pm Saturday, September 14 - 10 am-6 pm (Professional Preview - $25) Friday, September 13 - 10 am-6 pm Sunday, September 15 - 10 am-2 pm A three-day pass is $5 - Children 16 and under are FREE YOU'RE INVITED JOIN US THIS SPRING FOR A "MUST ATTEND EVENT" The Strasburg Stock, Bond and Currency Show March 14-17, 2002 Lancaster Host Hotel 2300 Lincoln Highway East (Route 30), Lancaster, PA 17602 Featuring: • A World Class Auction of Stocks, Bonds, and Paper Money By R.M. Smythe & Co. • 100 Dealer Tables • Limited Edition Intaglio Souvenir Card available only at the show • Live Spider Press Demonstrations • Pennsylvania Dutch Tourist Attractions • Factory Outlet Malls Nearby • Free Parking Bourse and Consignment Information: Kevin Foley - R.M. Smythe P.O. Box 37650, Milwaukee, WI 53237 (414) 421-3498 Fax (414) 423-0343 Hotel Reservations: To reserve a room at the Lancaster Host Hotel, call 800-233-0121 and ask for the special $109 Strasburg Currency and Stock & Bond Show rate. Visit the R.M. Smythe & Co. website: Featuring: • A World Class Currency and Stocks & Bonds Auction by R.M. Smythe & Co. • 100 Booth Bourse Area • Special Intaglio Souvenir Card available only at the show • Live Spider Press Demonstrations • Factory Outlet Malls Nearby • Free Parking • Pennsylvania Dutch Tourist Attractions Bourse and Consignment Information: Kevin Foley - R.M. Smythe P.O. Box 37650, Milwaukee, WI 53237 (414) 421-3498 Fax (414) 423-0343 Hotel Reservations: To reserve a room at the Lancaster Host Hotel, call 800-233-0121 and ask for the special $109 Strasburg Currency and Stock & Bond Show rate. TERMS AND CONDITIONS PAPER MONEY is published every other month beginning in January by the Society of Paper Money Collectors (SPMC). Second-class postage is paid at Dover, DE 19901. Postmaster send address changes to Secretary Tom Minerley, P.O. Box 7155, Albany, NY 12224-0155 © Society of Paper Money Collectors, Inc., 2002. All rights reserved. Reproduction of any article, in whole or in part, without express written permis- sion, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for $4 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 spe- cific issue cannot be guaranteed. Include an SASE for acknowledgment, if desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be typed (one side of paper only), double-spaced with at least 1-inch margins. The author's name, address and telephone num- ber should appear on the first page. Authors should retain a copy for their records. Authors are encouraged to submit a copy on a 3 1/2-inch MAC disk, identified with the name and version of software used. A double-spaced printout must accompany the disk. Authors may also transmit articles via e-mail to the Editor at the SPMC web site ( ). Original illustrations are preferred. Scans should be grayscale at 300 dpi. Jpegs are preferred. Inquire about other formats. ADVERTISING • All advertising copy and correspondence should be sent to the Editor • All advertising is payable in advance To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or addi- tional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. Advertising Deadline: Copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for exam- ple, Feb. 1 for the March/April issue). With advance approval, camera-ready copy, or elec- tronic ads in Quark Express on a MAC zip disk with fonts supplied, may be accepted up to 10 days later. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover $500 $1350 $2500 Inside cover 400 1100 2000 Full page 360 1000 1800 Half page 180 500 900 Quarter page 90 250 450 Eighth page 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but not guaran- teed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper cur- rency, allied numismatic material, publications, and related accessories. The SPMC does not guar- antee advertisements, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. • PAPER MONEY • March/April 2002 • Whole No. 218 49 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLI, No. 2 Whole No. 218 MARCH/APRIL 2002 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: IN THIS ISSUE FEATURES The Mystery of Plate Dates & Treasury Signatures on NBNs By Peter Huntoon 1929 Nationals Project Report By David B. Hollander, Coordinator Eliza D. Page National Bank President By Karl S. Kabelac The John Hickman Project By Don C. Kelly Impact of Nebraska's Bank Deposit Guaranty Law of 1909-30 By Gerome Walton The Two - Fold Demise of the FNB of Troy, NY By Tom Minerley Republic National Bank and Trust Company of Dallas, Texas By Frank Clark I Found My Thrill on a Two Barre Bill By Kim Fisher Bank Happenings Submitted by Bob Cochran My 'Hometown Bank': FNB of Manchester, MO By David Grant Correcting the National Bank Data Base By Peter Huntoon SOCIETY NEWS 51 63 70 73 75 93 98 106 109 112 124 Information & Officers Deadline Nears for George W. Wait Memorial Prize President's Column By Frank Clark SPMC Annual Awards C. John Ferreri Steps Down from Board Comprehensive Paper Money Index For Sale ANA, NLG Honor SPMC & Paper Money Meet the Candidates for the SPMC Board of Governors Money Mart New Members Editor's Notebook Advertisers Index 125, 50 69 96 96 96 96 105 110 111 126 126 127 SOCIETY OF PAPER MONEY COLLECTORS INC. 50 March/April 2002 • Whole No. 218 • PAPER MONEY Society of Paper Money Collectors The Society of Paper Money Collectors (SPMC) was orga- nized in 1961 and incorporated in 1964 as a non-profit organiza- tion under the laws of the District of Columbia. It is affiliat- ed with the American Numismatic Association. The annual SPMC meeting is held in June at the Memphis IPMS (International Paper Money Show). Up-to-date information about the SPMC and its activities can be found on its Internet web site . 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 member- ship; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior mem- bership 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 $24. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world add $10. Life membership — payable in installments within one year is $500, $600 for Canada and Mexico, and $700 elsewhere. The Society has dispensed with issuing annual mem- bership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join. Members who join after October 1 will have their dues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in the Sept/Oct Paper Money. Checks should be sent to the Society Secretary. OFFICERS ELECTED OFFICERS: PRESIDENT Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 VICE-PRESIDENT Wendell A. Wolka, P.O. Box 569, Dublin, OH 43017 SECRETARY Tom Minerley, P.O. Box 7155, Albany, NY 12224-0155 TREASURER Mark Anderson, 335 Court St., Suite 149, Brooklyn, NY 11231 BOARD OF GOVERNORS: Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 C. John Ferreri, P.O. Box 33, Storrs, CT 06268 Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 Ronald L. Horstman, 5010 Timber Ln., Gerald, MO 63037 Arri "AJ" Jacob, P.O. Box 1649, Minden, NV 89423-1649 Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515- 2331 Steven K. Whitfield, P.O. Box 268231, Weston, FL 33326 APPOINTEES: EDITOR Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 ADVERTISING MANAGER Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 LEGAL COUNSEL Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 MEMBERSHIP DIRECTOR Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 PAST PRESIDENT Bob Cochran, P.O. Box 1085, Florissant, MO 63031 1929 NATIONALS PROJECT COORDINATOR David B. Hollander, 406 Viduta PI, Huntsville, AL 35801-1059 WISMER BOOK PROJECT COORDINATOR Steven K. Whitfield, P.O. Box 268231, Weston, FL 33326 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR HUGH SHULL P.O. Box 761, Camden, SC 29020 (803) 432-8500 FAX (803) 432-9958 SPMC LM 6 BRNA FUN PAPER MONEY • March/April 2002 • Whole No. 218 51 The Mystery of Plate Dates And Treasury Signatures On National Bank Notes PURPOSE The purpose of this article is to outline the conventions used to select the dates that were printed on the faces of National Bank Notes. The choice of treasury signatures also will he treated because in most cases they were dictated by the dates on the plates. This article totally revises and renders obsolete Chapter 20 in Huntoon (1995). PRIMARY PLATE DATING CONVENTIONS T HE MAJORITY OF THE DATES FOUND ON SERIES OF 1882 and 1902 notes are dates of charter, organization, extension and title change. The date of statehood, a type of title change, appears on the issues for banks that bridged the conversion of terri- tories into states. Two systems of batch dates were used prior to 1882, but those dates usually do not relate directly to the corporate existence of the banks; rather, they are associated with bookkeeping practices within the office of the Comptroller of the Currency. Table 1 lists the conventions used to select most of the dates that appear on National Bank Notes. Each convention applied to every series that was cur- rent when the convention was in effect. The extension of corporate life for banks, provided for by the Act of July 12, 1882, forced Comptroller of the Currency John Knox to seriously consider the dates associated with the corporate existence of a bank. The crucial date turned out to be the date of organization because this was when the corporate THE PAPER COLUMN by Peter Huntoon clock began running for a bank. The date of organization is defined as the day when the last of the incorporators signed the organization certificate. The other key date, the date of charter, was the day the certificate of authority to commence business was issued to the bank by the Comptroller. Comptroller Knox weighed these dates late in 1881, and decided that the date of charter was the most important because it signaled when the Comptroller authorized the bank to open. Consequently he instituted a policy where charter dates were engraved on the plates for new banks beginning in 1882. However, at about the same time, he authorized the use of dates of extension on the plates for extending banks. There is a breach in logic here. The date of extension marks the corn- 52 March/April 2002 • Whole No. 218 • PAPER MONEY Table 1. Primary Plate Dating Conventions Used for Large Size National Bank Notes Date on Plate New Banks: Nov 2, 1863 - Aug 15, 1870 Aug 2, 1870 - Jan 3, 1882 Jan 2, 1882 - Jan 29, 1898 Dec 18, 1897 - Mar 21, 1929 Extended Banks: Most likely Significance Batch date that follows the date of charter. (charters 1-1699)a Batch date, usually a multiple of 5 days, that corresponds to the period when the plate was ordered. (charters 1700-2606) Date of charter. (charters 2607-5110) Date of organization. (charters 5111-13307) Jul 14, 1882 - Mar 3, 1913 Date of extension computed as the date of expiration of charter plus 1 day.b , c Mar 2, 1913 - Apr 30, 1922 Date of extension computed as the date of expiration of charter.d Title Changes (change from territorye to state is a title change): Apr 12, 1869 - Jul 12, 1869 Batch date that corresponds to when the title change was authorized. Jul 1, 1870 - Jun 15, 1881 Batch date that corresponds to the period when the plate was ordered. Feb 16, 1882 - Feb 21, 1919 Date of title change or statehood. Apr 12, 1919 - Feb 1, 1929f Date is identical to the date on the most recent previous plate regardless of what that date signified. a Charters 1693, 1695, 1698 and 1699 utilized batch dates that were identical to their dates of charter. See Table 2. b Two groups of exceptions listed on Tables 3 and 4 received Series of 1882 plate dates that were computed as the date of expiration of charter instead of the date of expiration of charter plus 1 day. See footnote d for the formula to compute the date of organization from the plate dates listed on Table 4. c The date of organization can be computed from the plate date by subtracting 1 day and either 20 or 40 years if the bank was orga- nized after June 3, 1864. d The date of organization can be computed from the plate date by subtracting either 20 or 40 years if the bank was organized after June 3, 1864. e Territory plates were not converted into state plates prior to the admission of North and South Dakota on November 2, 1889. Colorado territorial plates in use in the early 1890s were converted into state plates dated February 1, 1890. f Italics indicate that these dates did not appear on notes. Table 2. List of banks chartered in the 1869-1870 period when a few banks were assigned batch dates that were identical to their dates of charter. The plate dates in italics are also dates of charter. Charter Title City State Date of Charter Plate Date 1693 NB of Commerce Chicago IL Jul 1, 1869 Jul 1, 1869 1694 NB Lebanon KY Jul 24, 1869 Jul 26, 1869 1695 First NB of Utah Salt Lake City UT Terr Nov 15, 1869 Nov 15, 1869 1696 First NB Leon IA Dec 15, 1869 Dec 20, 1869 1697 First NB Port Henry NY May 5, 1869 May 10, 1870 1698 Howard NB Burlington NY Jun 16, 1870 Jun 16, 1870 1699 Kidder N Gold B Boston MA Aug 15, 1870 Aug 15, 1870 trarowtrys WI\Ili PEINISCI /11 I THETISVISVICEII OF ktiffb4111 X 71 38 9 3 0,4 TA T 4.41.&444.1- ,V4,14.4,.; I it,W.U.1244.4,44.4' 1 Y V trA1. 4— r. Isoloitovoin w volgwvoAvitit 36151, Mat"M" PAPER MONEY • March/April 2002 • Whole No. 218 53 mencement of the extended corporate life for the bank. The comparable date for a new bank is the date of organization. In contrast, the date of charter is of bookkeeping importance to the Comptroller, but of minor consequence to a bank officer. Employment of the dates of charter on the plates for new banks simply perpetuated the use of dates having bureaucratic significance to the Comptroller's office similar to the batch dates that they replaced! Comptroller Charles Dawes instituted the use of the dates of organiza- tion on the plates for new banks after rethinking the issue 16 years later. He unified the plate dating system around the principle dates associated with the corporate life of the banks on whose notes these dates appeared. He formally acknowledged that the dates of charter were of administrative importance to a Comptroller, but of little consequence to a bank officer by abandoning their use. DATES ON PLATES FOR NEW BANKS Four patterns have emerged for the dates on plates for new banks depending on when they were made: (1) batch dates based on when the bank was chartered (1863-1870); (2) batch dates based on when the plates were ordered (1870-1882); (3) dates of charter (1882-1898); and (4) dates of organi- zation (1898-1929). Batch Dates Based on Charter Dates The earliest pattern, in use between 1863 and 1870, involved batch dates that are closely related to when the bank was chartered. Groups of banks hav- ing sequential charter numbers were assigned a common date that is close to but postdates their dates of charter. Periods ranging up to a few months sepa- rate consecutive batch dates. If a new combination was ordered by a bank, even a lengthy time after it was chartered, the plate usually carried the same batch date as the others for the bank. Such honoring of the date reveals that there was a rudimentary scheme. November 2, 1863, is the earliest date found on National Bank Notes and is a batch date of this type. Most exceptions to this pattern involved plates that were ordered late. The odd date either postdates the dates on the other plates for the bank; or, if all the plates for the bank were ordered late, the date postdates the date used for the group to which the bank should belong. The most common exceptions involve the early 1-1-1-2 and 1-1-2-2 plates, which were not produced until 1865. The batch dates on all the low charter 1-1-1-2 plates was January 2, 1865. Other common dates on these are July 1 and August 15, 1865. They postdate the dates found on the other combinations for the issuing banks. Table 2 reveals that the Original Series plates for at least four banks char- tered during the 1869-1870 period utilized the date of charter. The rate of bank organizations hit an all time low during this period, so batches became very small. In fact, a number of batch dates appeared that were used by only The Albany County National Bank of Laramie City, Wyoming (3615) was organized on December 24, 1886. The date on this Series of 1902 Red Seal is December 25, 1906, which is the date of extension computed as the date of expiration plus one day. Thanks to Tom Denly for selling me this note. 54 March/April 2002 • Whole No. 218 • PAPER MONEY one bank. This being the case, someone used the date of charter for a few of those lone banks. This potentially logical innovation did not catch on, so no other dates of charter appeared until 1882. The Kidder National Gold Bank of Boston, Massachusetts (1699), was the last affected bank, with its plates bearing the August 15, 1870, date of charter. Batch Dates Based on Date of Plate Orders The second dating pattern, in use between 1870 and 1882, utilized batch dates that were related to when the plates were ordered. It is not unusual in this system to find different dates on the different combinations for a given bank, the reason being that the plates were ordered at different times. The first batch date of this type is August 2, 1870, and appears to have been used exclusively on plates for new banks that were ordered a bit late or on new combinations ordered for existing banks. The batch dates in this class are usually multiples of five days. Most com- mon is the 15th day of the month. However, the five-day pattern was not launched immediately and did not end neatly. Rather, there was some experi- menting. The early batches under this system were dated the 1st of the month between September and December, 1870. Use of the 15th of the month began with the December 15, 1870, batch, but this immediately broke down on January 15, 1871, which was a Sunday. Instead, they used January 16th. Thereafter, the 15th was used exclusively through August 15, 1872. September 15, 1872, fell on a Sunday so September 10th and 18th appeared. Other multiples of five days began to be used once September 10th had been tried. An occasional out-of-character date appeared, but multiples of five clays were definitely preferred. The last two dates used under this system were December 28, 1881 (charters 2601-2605), and January 3, 1882 (charter 2606). In several cases, notes were being printed from plates prior to the dates engraved on them. In fact, examples exist where the dates on the plates were actually younger by a few days then the first shipments to the banks! One interesting case at point involves the first shipments of the 5-5-5-5, 10-10-10- 20, 50-100 and 500 combinations to The National Gold Bank of D. 0. Mills and Company, Sacramento, California (2014). They were sent to the bank by the Comptroller between August 7 and 12, 1872. The engraved date on the plates was August 15, 1872. There was a logic behind this dating system, even for the out-of-charac- ter dates, but exactly what it was is unknown. Evidence for this is the following order sent by Comptroller Knox to the Bureau of Engraving and Printing on July 14, 1876: "You will please change the date from July 15th, 1876, to July 1st, 1876, on the 10-10-10-20 plate and also plate 5-5-5-5 for "The Fruit Growers National Bank of Smyrna, Del." (Bureau of Engraving and Printing, various dates-b). Obviously there was a reason for changing this date although it has been obscured by the passage of time! Date of Charter The third pattern involved using the date of charter and began with the first bank chartered in 1882, The First National Bank of Pontiac, Michigan (2607), but not without a hitch. Its date of charter was January 3, 1882, yet the date on its Series of 1875 10-10-10-20 plate was January 2, 1882. It is evident that the January 2 date is the result of a clerical mistake. This date couldn't be of the previous batch type because plates weren't ordered until after charters were granted. The next bank chartered was The Lincoln National Bank of New York, New York (2608), on January 4, 1882, and that date was correctly applied to its plates. Charter dates were employed on plates for new banks between 1882 and Table 3. List of 21 banks organized under the Act of February 25, 1863, that were among the first extended using the Act of July 12, 1882. These banks received Series of 1882 plate dates computed as the date of expiration of charter instead of the date of expiration of charter plus 1 day. The first Series of 1882 plates for these banks were approved for use prior to October 28, 1882. These banks utilized initial corporate lives of less than 20-years under the terms of the Act of February 25, 1863. Charter Title 36 First NB 39 First NB 45 First NB 56 First NB 60 First NB 74 First NB 75 First NB 86 First NB 90 First NB 93 Fourth NB 94 First NB 95 First NB 109 First NB 111 First NB 112 First NB 122 First NB 152 First NB 157 First NB 172 Second NB 206 First NB 348 First NB City Findlay OH Towanda PA Ellenville NY Hamilton OH Newville PA Warren OH Danville NY Germantown OH Upper Sandusky OH Cincinnati OH Port Jervis NY Hudson WI Louisville KY Madison IN Bangor ME Springfield VT Danville IN Fort Atkinson WI Circleville OH Elkhart IN Lowville NY Jul 14, 1882 Jul 19, 1882 Jul 26, 1882 Aug 5, 1882 Jul 27, 1882 Jul 29, 1882 Aug 26, 1882 Aug 31, 1882 Aug 14, 1882 Aug 31, 1882 Aug 14, 1882 Sep 30, 1882 Sep 6, 1882 Sep 18, 1882 Sep 14, 1882 Aug 31, 1882 Sep 23, 1882 Oct 26, 1882 Oct 16, 1882 Aug 14, 1882 Sep 14, 1882 State Plate Date PAPER MONEY • March/April 2002 • Whole No. 218 1898, but not without exceptions. If a bank ordered a new combination at a later time, the new plate commonly ended up with a date that closely reflected when the plate was ordered, a throwback to the previous batch dating system. This practice appears to have died out in the late-1890s. After that time, new combinations got dates that followed the formulas in Table 1. Date of Organization Comptroller Charles Dawes assumed the office of Comptroller of the Currency on January 1, 1898. He obviously held the opinion that the date of organization was more important for a bank than the date of charter because the first date of organization appeared just a month later on the 10-10-10-20 Series of 1882 plate for The American National Bank of Chicago, Illinois (5111). The date on that plate was December 31, 1897, and the plate was approved for use by the director of the Bureau of Engraving and Printing on February 7, 1898. The date of organization was used on the first plates for all new banks thereafter. The earliest date of organization which appeared on a National Bank Note was December 18, 1897, on the Series of 1882 Brown Backs for The First National Bank of Elizabeth, Pennsylvania (5114). The last bank to utilize a date of charter (January 29, 1898) was The Blue Ridge National Bank of Asheville, North Carolina (5110) on its Series of 1882 notes. DATES ON CONVERTED SERIES OF 1875 PLATES Original Series plates were eventually converted into Series of 1875 plates for active banks. No concerted effort was made to modify a plate until existing stocks of Original Series notes from it were exhausted. Consequently, the alteration of a particular plate could have taken place any time after the series began in 1875. Once a modified plate was needed, the most important change was that the signatures of the officials current at the time the plates were altered replaced the old signa- tures. Important to this discussion is the fact that the dates on the altered plates were left untouched. DATES ON REPLACEMENT & SERIES OF 1882 REDESIGNED PLATES In virtually every case after about 1881, regardless of conventions in effect, replacement plates carried the same signatures and date as the plates they replaced. A special class of plates deserves attention, the Series of 1882 plates with inferior and inartistic layouts which were replaced by redesigned plates. The most familiar are the 5-5-5-5 combinations with stacked treasury sig- natures to the left of the bank titles which were discontinued in 1886. However, archaic layouts on other combinations also were purged. Three dif- ferent layouts were used for the 5-5-5-5s for the NB of Commerce of New York, NY (733). The new plates were treated as replacements. As such they carried identical dates and signatures as on the plates that they replaced. The plate letters on the new plates were advanced as was normal for replacements. DATES ON PLATES FOR EXTENDED BANKS Dates of extension were used on at least the first plate made for all extended banks. The dates of organization can be computed easily from these dates as explained in the footnotes to Table 1 if the banks were organized after June 3, 1864. The formulae in Table 1 do not work for banks organized before June 3, 1864, because their initial corporate lives were less than 20 years. It is obvious that there was confusion in the Comptroller's office about 55 ra,,s-4-e-- orAR , vgavenslaweautv46.slocw.--,. ' .6 111 EiWallkijAage -' 47yv9olf.f.,!1•PAm :yekia25 is Witaialitasaip 56 March/April 2002 • Whole No. 218 • PAPER MONEY Denly's of Boston Making a Market in Paper Money View our list of notes at National Collectors We normally stock between 800 and 1000 National Currency notes (scans are viewable at our web site) Here is a sample of our inventory First Charter Nationals State Type Charter Name Denom Town Grade Price CT 1C-75 450 First NB $1 Killingly VG Repairs 585.00 CT 1C-75 4 First NB $2 Stamford F/VF Repairs 2795.00 IL 1C-65 1428 Alton NB $1 Alton VG/F 470.00 MA 1C-65 460 Ntl Hide & Leather $1 Boston VG+ 415.00 MA 1C-65 625 Tremont NB $1 Boston VF+ 575.00 MA 1C-65 885 Lee NB $1 Lee FINE 500.00 MA 1C-75 1135 Mechanics NB $5 Worcester VF/XF 895.00 MD 1C-65 1109 Ntl Exchange Bk $20 Baltimore VG 1250.00 MD 1C-75 2416 Third NB $5 Cumberland VF 1200.00 MO 1C-75 1584 Central NB $1 Boonville VG 450.00 NJ 1C-65 892 Hunterdon Cty NB $1 Flemington FINE 1895.00 NY 1C-65 1198 Tanners NB $5 Catskill VF 1550.00 NY 1C-65 290 Fourth NB $2 New York City VF+ 1675.00 NY 1C-75 2608 Lincoln NB $5 New York City VG/F Splits 395.00 NY 1C-75 1080 Merchants Ex NB $5 New York City VG/F 500.00 NY 1C-65 998 Seventh Ward NB $2 New York City VG 1250.00 Nikt1WRIMCW114:401-12.-SA..." Pith thrOl.:0,enlionrer t IltaAmityn 01449 xs.6 imtempN Romans. a.31:73425:15VADZEMD.G2iC=63.13=..iireuxuaro.SCM...7.4ES• \ Drvo$:10 With thr alitZtraourrr.nillavItingt:A2.40455 NOION. 11411 1711 thrifty-Mat teliaCk - • crierz 11221 flt4 .1) 11AI 1-23,571 dstyss124:1-;17:77:7;-,-. 'TVCriiirOID P k; ' Um! rit ill Do .,---.4;vronwrerfewrmv,w,v;-,k. •,,(0.,F#P...!.c4t,„ Awzit,t,siuttRocAationtotauw.. casgpmgammig/g t'.4(4'. *ago* exwei,_ PAPER MONEY • March/April 2002 • Whole No. 218 57 NY 1C-65 307 Tenth Ward NB $1 New York City VG 295.00 NY 1C-75 2410 Farmers NB $5 Rome FINE+ 950.00 OH 1C-75 2495 Citizens NB $10 Cincinnati FINE 1000.00 OH 1C-75 844 Merchants NB $20 Cincinnati FINE+ 1825.00 OH 1 C-65 829 Second NB $10 Hamilton F/VF 1250.00 OH 1C-65 220 First NB $1 Painesville FINE 1250.00 OH 1C-65 350 Second NB $1 Ravenna FINE 725.00 OH 1C-75 2220 Waynesville NB $5 Waynesville GNG 425.00 RI 1C-75 856 Slater NB $2 North Providence F/VF 1995.00 RI 1C-75 1131 Merchants NB $1 Providence VF 595.00 VA 1C-75 1522 Lynchburg NB $5 Lynchburg G/VG 425.00 VT 1C-65 404 Brandon NB $5 Brandon FINE 775.00 VT 1C-75 2305 People's NB S5 Brattleboro VG/F 450.00 VT 1C-65 1163 Lamoille Cty NB $1 Hyde Park VF 935.00 VT 1C-75 1564 West River NB $1 Jamaica FINE 1935.00 VT 1C-65 1406 NB of Newbury $1 Wells River XF/AU 1650.00 WV 1C-75 2649 Citizens NB $10 Parkersburg FNF 1250.00 Denly's of Boston P. 0. Box 51010 Boston, Mass. 02205 617-482-8477 FAX 617-357-8163 ,,,,,,, Zr_fw :z,x.„- __ (6.01-AAMI,- 1 444444.1144-414.4 ejwilii , I ,0411 *it . rA:441ii.s.aa iut_s_:,, F.4, iit.J.,44:41.4,w40.4. Mkt1)1110)13kki ail . :',..%-gpapr4 -""wenriFlisr200 ///rxiariA• , ei Oaji, Ar-4...,,„„) \'ll ' G/ e. vi e r a . ..■ 44. 11:4: s ti,sA,124:444,34 EtillMktitek ":4-fpa.wlit '''?1:43,WiSit;10011 .0.o.r.? JY' 4 The 5-5-5-5 Series of 1882 plate for The Citizens National Bank of Towanda, Pennsylvania (2337), certified on April 25, 1896, was misdated May 11, 1896. The plate was corrected using the June 2, 1896, date of extension, and re-certified on May 28. One shipment of errors notes had to be canceled. 58 March/April 2002 • Whole No. 218 • PAPER MONEY when the term of extension began. The question was: did the period of exten- sion begin on the day that the previous corporate life expired, or on the next day? The first banks to be extended were those organized under the Act of February 25, 1863, which had chosen initial corporate lives of less than 20 years. At first, as seen from Table 3, Comptroller John Knox decided that the 20-year extension began on the day of expiration. However, late in October, 1882, he changed his mind and started using the day after. The same issue arose in 1884, when the first of the banks organized under the Act of June 3, 1864, came up for extension. Oddly, the Comptroller's office under Henry Cannon went through the same gyration! Table 4 shows that for the first month and a half, the 20-year extension started on the date of expiration. After that, it started on the day after using the prece- dent that had already been established for the Act of 1863 banks. Twenty-nine years later, in 1913, people in the Comptroller's office again began to nit-pick this issue, this time under Comptroller Lawrence Murray. Finally, it was decided that the period of extension really started on the day of expiration of the previous corporate life, instead of the day after. The change in policy took place between the Series of 1902 extension plates for two banks organized on March 2, 1893. The date of extension for The First National Bank of Hempstead, New York (4880), was computed using the day after expiration formula to yield a Series of 1902 plate date of March 3, 1913. In contrast, the date of extension for The Lincoln National Bank of Pittsburgh, Pennsylvania (4883), was com- puted using the day of expiration formula to yield a Series of 1902 plate date of March 2, 1913. The break is sharp and is based on the date of organization, not the date of charter. Two other extended banks have March 2, 1913, plate dates, Noblesville, Indiana (4882), and Girard, Ohio (4884). Both were orga- nized on March 1, 1893, so they fell under the old formula. A most unusual situation is recorded in various Comptroller documents for The Citizens National Bank of Towanda, Pennsylvania (2337). The bank was extended on June 2, 1896, so 5-5-5-5 and 10-10-10-20 Series of 1882 plates were ordered for the bank. The initial 5-5-5-5 Brown Back printings were received by the Comptroller in two shipments on May 11 and 12, 1896, consisting of serials 1-1000 (X246664-X247663) and 1001-1500 (X249664- X250163). The plate date shown is May 11, 1896, a mistake. A notation in the ledger states that the sheets were misprinted and were to be canceled. A letter dated June 9th advises the Bureau to change the plate date to June 2, 1896. A new 5-5-5-5 printing was received on June 17, 1896, with the correct extension date bearing serials 1-1000 (X387189-X388188). Batch Dates on Late -Order Extension Plates Dates of extension were used on plates beginning with the first extension on July 14, 1882, for The First National Bank of Findlay, Ohio (36), provided the plates were ordered at the time the extension was granted. If the plates were ordered much later, batch dates related to when they were ordered were used until about the late-1890s. Three Series of 1882 plates for The Farmers and Merchants National Bank of Poughkeepsie, New York (1312), nicely illustrate the dating of plates for extended banks. The first plate made was a 10-10-10-20 carrying the date of extension, June 4, 1885. That plate was approved for use on July 8, 1885. Next came a 50-100 that was dated February 14, 1893 -- a batch date -- which was approved February 28, 1893. Last was a 5-5-5-5 dated June 4, 1885, the date of extension, and approved August 13, 1903. I have seen no evidence that batch dates, such as the February 14, 1893, 50-100 Poughkeepsie, were changed to bring them into alignment with new policies after they were made. Table 4. List of 23 banks organized under the Act of June 3, 1864, that were among the first from that act to be extended using the Act of July 12, 1882. These banks received Series of 1882 plate dates computed as the date of expiration of charter instead of the date of expiration of char- ter plus 1 day. The first Series of 1882 plates for these banks were approved for use between June 3 and July 14, 1884. Charter Title 474 First NB 475 Merchants NB 476 City NB 478 First NB 481 First NB 483 City NB 484 Haverhill NB 486 Charter Oak NB 490 NB 495 First NB 496 First NB 497 Suffield NB 498 Granite NB 499 Derry NB 501 First NB 505 Market NB 506 Merchants NB 510 Union NB 514 Blackstone NB 515 NB of Redemption 516 First NB 518 Kenduskeag NB 590 Fall River NB City State Plate Date Greenfield MA un 23, 1884 Boston MA un 10, 1884 Worcester MA un 27, 1884 Pittston PA un 23, 1884 Haverhill MA un 23, 1884 Cedar Rapids IA ul 11, 1884 Haverhill MA ul 2, 1884 Hartford CT un 25, 1884 Fairhaven MA ul 21, 1884 Warsaw IL uI 13, 1884 Hastings MN ul 15, 1884 Suffield CT ul 12, 1884 Augusta ME ul 11, 1884 Derry NH ul 12, 1884 Smithfield OH un 24, 1884 Boston MA ul 19, 1884 Lowell MA ul 11, 1884 Weymouth MA uI 26, 1884 Boston MA un 14, 1884 Boston MA ul 27, 1884 Yarmouth MA ul 25, 1884 Bangor ME un 27, 1884 Fall River MA un 27, 1884 PAPER MONEY • March/April 2002 • Whole No. 218 Dates on 1921-22 Series of 1902 Extension Plates Banks that were still operating in the 1921-2 period which had been issu- ing Series of 1902 notes since 1902, fell into one of three categories: (1) banks chartered in 1902; (2) banks extended for a first time in 1902; or (3) banks extended for a second time in 1902. The Act of July 1, 1922, provided for automatic 99-year extensions for all banks. However, the lives of 263 banks that were either chartered or extended for a first time in 1902, and which were issuing Series of 1902 notes in 1921-2, expired before passage of this Act. Consequently they were forced to undergo the process of formally extending their charters for another 20 years in 1921-2. A totally new group of Series of 1902 plates was prepared and used for 161 of these banks. The resulting plates are commonly called "4th charter" plates -- a term that is a misnomer. They are every bit as distinctive in the eyes of the law and policy as the differences between Series of 1882 and 1902 issues. The Series of 1902 plates involved can be distinguished because they carry plate dates of 1921 or 1922, and have charter numbers in the ranges 2-66, 2657-2749, and 6100-6649. If you have a note from a bank in these ranges with a date of 1921 or 1922, it is also possible to find an earlier Series of 1902 note with a date of 1901 or 1902. The date on the 1921-1922 plates is the date of extension. The days on a pair of notes with 1901-2 and 1921-2 dates from a 6100-6649 bank will match unless there was a title change. The rea- son is that the bank was chartered in 1902, so the 1902 plate carries the date of organization and the 1921-2 plate carries the date of extension computed as date of organization + 20 years. In contrast, a bank with a charter in the 2- 66 or 2657-2749 range was extended for the first time in 1902, so its 1902 plate carries a date of extension computed as the date of organization + 20 years + 1 day. The 1921-2 plate utilizes a date of extension computed as date of organization + 40 years so the day is off by one. The dates on the 1902 notes for charters 2, 3 and 59 are exceptions, a topic that will be treated in the next section. DATES FOR TITLE CHANGE PLATES The handling of title changes on National Bank Notes presented a special problem. Title changes included: (1) changes in bank titles; (2) changes in town names; (3) relocations, (4) conversions of gold banks into regular national banks; (5) conversions from territories to states; and (6) reassignments of char- ter numbers. The plate dates that resulted from title changes follow the con- ventions shown on Table 1, except for some interesting exceptions explained below for certain cases involving territorial conversions and reassigned charter numbers. Batch Dates on Early Title Change Plates As shown on Table 1, two different batch dating conventions evolved for banks experiencing title changes. The logic behind each paralleled conventions used for newly organized banks during the same periods. The first, in use in 1869, was a batch date that corresponded to when the title change was approved by the Comptroller. The second, in use from 1870 to 1881, corre- 59 60 March/April 2002 • Whole No. 218 • PAPER MONEY sponded to when a given plate was ordered. The first title changes that were implemented were authorized by Congress on March 1, 1869, and involved New Orleans, Louisiana (1591), and Plattsburgh, New York (321). These were the only two banks that received title change plates with batch dates based on when the change was approved by the Comptroller. Data for the Plattsburgh plates illustrate how the early sys- tem operated. The title for The Second National Bank of Plattsburgh was changed to The Vilas National Bank of Plattsburgh. Two Original Series plates, a 5-5-5-5 and 10-10-10-20, were made with the second title. Both car- ried the date July 2, 1869, a batch date that followed approval of the title change. The 10-10-10-20 plate was the first to be made in July, 1869. The 5- 5-5-5 came more than a year later in September, 1870. Even though late, it bore a batch date associated with when the title change was approved, not a date reflecting when the plate was ordered. Title Change Dates Plates made for banks with title changes occurring inclusively between February 16, 1882, and February 21, 1919, bore the date when the Comptroller of the Currency approved the title change. The first of these reflected the move of The Blue Hill National Bank of Dorchester, Boston (684), to Milton, Massachusetts; the last a change in title of The Southwest National Bank of Commerce, Kansas City, Missouri (10231) to The National Bank of Commerce. Copied Dates A peculiar practice was instituted for dating title change plates beginning on April 12, 1919, wherein the plate dates on the new plates were simply copied from the most recent previous plate regardless of what that date signi- fied. The copied date could be anything including a date of organization, date of extension, date of title change, date of statehood, or date of reassigned char- ter number. The first affected title change occurred on April 12, 1919, when The Peoples National Bank (10597) and The Union National Bank (9687) of Columbia, South Carolina, were consolidated under the title The Liberty National Bank of South Carolina (9687). In this case, the date used on the new plate for The Liberty National Bank of South Carolina was the 1910 organization date for charter 9687. This practice produced strange results when a bank underwent two title changes, one before and the other after April 25, 1919. The titles for The Central National Bank of New Decatur, Alabama (10423) nicely illustrate the issue. First the title was changed to The Central National Bank of Albany on March 23, 1917, then to The Central National Bank of Decatur on December 8, 1927. The Albany plates carry the March 23, 1917, title change date which makes sense. However, the Decatur plates, with the date copied from the Albany plate, carry the date for the first title change, not the second! This problem occurs in the Series of 1902 issues for the following charters: 335, 1338, 1413, 6380, 7725, 8199, 10423. Baltimore, Maryland (1413) underwent four title changes, two before 1919, and two after. The plates for both the third and forth title changes carry the second title change date! Plate Dates for Territorial Conversions At first, the change from territory to state was ignored, so territorial face plates continued to be used after statehood. However, the wave of admissions of North and South Dakota, Montana, Washington, Idaho and Wyoming in 1889 and 1890, forced the issue on Comptroller Edward Lacey. He directed the Bureau of Engraving and Printing to convert the territorial plates into state plates. The change was logically treated as a title change and statehood day was used as the title change date. See Table 5. The conversions were accom- plished by altering the old territorial plates, not by preparing new plates. Table 5. Territories that converted into states during the large size National Bank Note era, and the plate dates that were placed on the territorial plates which were altered into state plates. Dates on the Territory State Statehood Day Converted Plates Nebraska Nebraska Mar 1, 1867 no plates converted Colorado Colorado Aug 1, 1876 Feb 1, 1890a Dakota North & Nov 2, 1889 Nov 2, 1889 South Dakota Montana Montana Nov 8, 1889 Nov 8, 1889 Washington Washington Nov 11, 1889 Nov 11, 1889 Idaho Idaho Wyoming Wyoming Utah Utah Jul 3, 1890 Jul 3, 1890 Jul 10, 1890 Jul 10, 1890 Jan 6, 1896 Jan 6, 1896 Indian & Oklahoma Nov 16, 1907 Oklahoma New Mexico New Mexico Jan 6, 1912 Arizona Arizona Feb 14, 1912 Alaska Alaska Aug 24, 1912 (District) (Territory) Nov 16, 1907 Jan 6, 1912 Feb 14, 1912 no plates converted a Only Colorado territorial plates in use in the early 1890s were converted. PAPER MONEY • March/April 2002 • Whole No. 218 Colorado An inconsistency quickly emerged. Several Series of 1875 Colorado ter- ritorial plates were still in use in 1890. Lacy recognized this fact and began ordering their conversion to state plates, arbitrarily choosing February 1, 1890, as the plate date rather than reaching back for the August 1, 1876, statehood date. Banks that received printings from the converted plates included: Pueblo (1833), Central City (2129), Colorado Springs (2179), Trinidad (2300), and Pueblo (2310). The order to convert the Colorado territorial plates came too late for The City National Bank of Denver (1955), which issued existing stocks of Series of 1875 territorial notes until 1892. The converted 5-5-5-5 Series of 1875 plate for The First National Bank of Central City (2129) bears the date February 1, 1890, although the conversion was not carried out until January 1893. Ironically, the Colorado plates made between 1876 and 1890, for banks char- tered after statehood bear dates that are older than those on the state plates for the converted territorial banks! These include the plates for charters 2351 through 4172, and begin with The German National Bank of Denver (2351) in 1876. Alaska The Comptroller's office usually got Alaska plates wrong. Alaska has held four statuses since it was purchased from the Russians in 1867. These were: no status (1867-1884), district (1884-1912), territory (1912-1959), and state (1959-present). Large size notes were issued by two banks, Juneau (5117) and Fairbanks (7718). The location designation on notes from these banks is district, territory or unspecified. In each case, the designation usually had nothing to do with the legal status of Alaska at the time the plates were made. The First National Bank of Juneau, chartered in 1898, has the distinction of placing minute quantities of Series of 1882 and 1902 notes into circulation. Logic dictates that the bank should have first issued district Series of 1882 Brown and Date Backs, then territorial Series of 1882 Date Backs and Series of 1902 Date and Plain Backs. Not so. The Series of 1882 plate was made with the territory label. The plate was never altered so all the Series of 1882 notes, regardless of back, carry the territory label. Only the late Series of 1882 Date Backs legitimately represent the true status of Alaska at the time they were printed; the earlier notes, including all of the Brown Backs, should have been district notes. The Juneau situation was further muddled when the bank was extended in 1918. The Series of 1902 notes for the bank simply carry the word Alaska. Although true territorials, they form a class that has never achieved its rightful status or value among collectors. The First National Bank of Fairbanks, chartered in 1905, issued Series of 1902 Red Seals, Date Backs and Plain Backs. Alaska was a district when the bank was chartered, and the plates were properly labeled district. However, the plates were never altered when Alaska achieved territorial status in 1912. Consequently the bank continued to issue district Series of 1902 Date and Plain Backs through 1929. The plate dates on the large size Alaska issues are listed in Table 6. The 61 Table 6. Dates appearing on large size Alaska National Bank Notes. Town Label on Plate Charter Series Plate Date Significance of Date Juneau Territory of Alaska 5117 1882 Feb 15, 1898 Date of Organization Juneau Alaska 5117 1902 Feb 15, 1918 Date of Extension Fairbanks District of Alaska 7718 1902 Mar 1, 1905 Date of Organization 62 March/April 2002 • Whole No. 218 • PAPER MONEY date August 24, 1912, never appeared on Juneau Series of 1882 Date Backs or Fairbanks Series of 1902 Date and Plain Backs because the plates were not altered to reflect the change as Alaska advanced from district to territory status in 1912. Dates on Series of 1902 Plates for Banks with Reassigned Charter Numbers A serious circumstance developed in early 1882, when the first of the banks organized under the Act of February 25, 1863, faced the expiration of their corporate lives. The officers for a large number of those banks had selected initial corporate lives of 19 years or less in order to comply with the Act, so their banks were facing extinction. The fact is that these banks could not be saved. The Act of July 12, 1882, allowing for a 20-year extension, was not passed in time. The only option for the officers was to liquidate their banks, and reorganize them as new banks. Commonly the new banks had the same title as the old, but the low charter numbers were lost and succeeded by new numbers in the 2400 to 2800 range. Extremely important is the fact that the reorganized successor banks had entirely new organization dates which ranged between 1880 and 1882. The lives of 21 banks expired. Of these, 17 were reorganized under new charters. Many other banks threatened with extinction were voluntarily liqui- dated and reorganized. Eight of the reorganized banks received Series of 1875 notes. The rest were given Series of 1882 notes. Three charters, 2556, 2662 and 2730, received both! All these notes were issued from plates carrying the date of charter for the reorganized successor banks in accord with the conventions on Table 1. Notice that all dates associated with the expired 1863 banks were for- ever relegated to history at this point. The low charter numbers lost in the reorganization process were prestige items in an industry that prides itself on longevity. Inevitably the officers of the impacted banks lobbied for recovery of their old numbers, and beginning in 1902, Comptroller William Ridgely established a procedure whereby they could reclaim them. The officers of twenty-nine of the banks took advantage of the process, two in 1902, and the rest between 1909 and 1917. All they retrieved were their old charter numbers. The organization and charter dates attached to those old numbers were the 1882 dates associated with the reorga- nized successor bank, not the 1863 dates for the predecessor. This fact is of great importance to this discussion. The impacted banks were issuing Series of 1902 notes when the old charter numbers were reassigned. The question is: what date ended up on the new plates? The answer is one of three possibilities, one of which is a genuine exotic. The most common was the date of extension for the reorganized succes- sor bank (date of organization plus 20 years plus 1 day). Extension dates were used on the plates for 25 of the 29 affected banks. Series of 1902 plates for charters 1, 5, 7 and 8 are but four examples from this group. Notice the quirk. The plate carried an 1863 charter number, but a date based on an 1882 date of organization. The reassignment date was engraved on the new Series of 1902 plates for three of the remaining four banks. These were charters 2, 3 and 59, respec- tively dated March 19, 1909, April 6, 1909, and April 30, 1909. PAPER MONEY • March/April 2002 • Whole No. 218 63 1929 Nationals Project Report By David B. Hollander, Coordinator THE 1929 PROJECT COORDINATOR RECEIVED REPORTS FROM SEVEN SOCIETY MEMBERS DURINGCalendar Year 2001. The number of notes contained in these reports ranged from one to 11 specific serial numbers. Of all the reported notes, three reports were accompanied by visual proof of existence (i.e., scan or reference to an auction lot number). These include a $5, 1929-I from The First National Bank of Stonington, CT, Charter #735, and a $10, 1929-I from The Crocker National Bank of Turners Falls, MA, Charter #2058. Please send additional reports to the Coordinator at 406 Viduta Place, Huntsville, AL 35801-1059. The summary of all reported charters is as follows: State Total or DC Charters Reported Charters Unreported Charters % Reported % Unreported List of Unreported Charters Alabama 107 99 8 92.52% 7.48% 7687, 7991, 7992, 8028, 9055, 10102, 10307, 11259 Alaska 3 3 0 100.00% 0.00% None Arizona 11 11 0 100.00% 0.00% None Arkansas 69 66 3 95.65% 4.35% 9633, 12238, 12296 California 172 165 7 95.93% 4.07% 10184, 10309, 11123, 11433, 11867, 12271, 12624 Colorado 93 93 0 100.00% 0.00% None Connecticut 57 57 0 100.00% 0.00% None Deleware 16 16 0 100.00% 0.00% None District of Columbia 11 10 1 90.91% 9.09% 10316 Florida 54 53 1 98.15% 1.85% 7757 Georgia 79 77 2 97.47% 2.53% 8314, 12404 Hawaii 1 1 0 100.00% 0.00% None Idaho 28 28 0 100.00% 0.00% None Illinois 469 465 4 99.15% 0.85% 1428, 5285, 13673, 13993 Indiana 224 216 8 96.43% 3.57% 3338, 5476, 7354, 7491, 8351, 8912, 10616, 12780 Iowa 249 243 6 97.59% 2.41 % 2961, 6852, 8057, 8099, 9549, 14309 Kansas 212 209 3 98.58% 1.42% 3134, 8794, 9136 Kentucky 141 136 5 96.45% 3.55% 7254, 11890, 12202, 14026, 14076 Louisana 38 36 2 94.74% 5.26% 10544, 14225 Maine 58 55 3 94.83% 5.17% 1956, 7835, 13843 Maryland 91 85 6 93.41 % 6.59% 4364, 6202, 8799, 8860, 12443, 13798 Massachusetts 145 145 0 100.00% 0.00% None Michigan 145 144 1 99.31% 0.69% 12661 Minnesota 248 243 5 97.98% 2.02% 3155, 6366, 6519, 6933, 10936 Mississippi 34 34 0 100.00% 0.00% None Missouri 119 118 1 99.16% 0.84% 6885 Montana 44 42 2 95.45% 4.55% 10715, 10939 Nebraska 152 149 3 98.03% 1.97% 5337, 7622, 8797 Nevada 10 10 0 100.00% 0.00% None New Hampshire 58 58 0 100.00% 0.00% None New Jersey 257 250 7 97.28% 2.72% 5403, 5730, 8681, 9061, 9661, 14153, 14305 New Mexic 23 23 0 100.00% 0.00% None New York 522 505 17 96.74% 3.26% 295,2463, 5936, 6087, 7763, 8334, 8343, 8872, 10374, 10930, 11518, 11956, 12018, 12294, 13098, 13365, 13909 North Carolina 63 62 1 98.41% 1.59% 9044 North Dakota 111 103 8 92.79% 7.21% 6474, 6557, 6601, 6743, 7872, 7879, 9386, 9684 Ohio 336 334 2 99.40% 0.60% 7639, 9274 Oklahoma 214 204 10 95.33% 4.67% 5811, 6517, 6641, 7209, 8472, 8616, 9964, 9970, 10380, 11397 Oregon 79 76 3 96.20% 3.80% 5822, 9281, 13294 Pennsylvania 899 894 5 99.44% 0.56% 6281, 6709, 13868, 13871, 14112 Rhode Island 12 12 0 100.00% 0.00% None South Carolina 42 37 5 88.10% 11.90% 6385, 9296, 10129, 10263, 10586 South Dakota 75 71 4 94.67% 5.33% 2068, 6561, 8698, 11457 Tennessee 105 103 2 98.10% 1.90% 10181, 12319 Texas 510 469 41 91.96% 8.04% 2729, 3261, 3973, 4368, 4438, 5109, 5474, 5759, 6361, 6376, 6461, 6551, 6780, 6896, 7378, 7524, 8204, 8522, 8690, 8770, 8816, 8817, 9053, 9652, 9810, 9989, 10241, 10323. 10403, 10472, 10657, 10703, 11163, 13555, 13562, 13661, 13669, 14027, 14072, 14126 Utah 17 17 0 100.00% 0.00% None Vermont 48 46 2 95.83% 4.17% 7614, 13261 Virginia 151 148 3 98.01% 1.99% 7208, 11533, 13878 Washington 84 80 4 95.24% 4.76% 3862, 8639, 9576, 10407 West Virginia 130 122 8 93.85% 6.15% 7672, 8333, 9523, 10392, 10759, 11502, 13505, 13783 Wisconsin 157 156 1 99.36% 0.64% 8632 Wyomning 23 23 0 100.00% 0.00% None Totals: 6,996 6,802 194 97.23% 2.77% 64 March/April 2002 • Whole No. 218 • PAPER MONEY The exotic involved the resurrection of charter number 20 on March 5, 1913. Charter 20 was originally assigned to The Third National Bank of Cincinnati, Ohio, in 1863. This bank was liquidated in 1882, and reorganized with the same title under charter 2730. The intrigue began when 2730 was liquidated on June 18, 1908, as it consolidated with 2798, The Fifth National Bank of Cincinnati. As a result of the merger, the title of 2798 was changed to The Fifth-Third National Bank on June 2, 1908. The Fifth-Third National Bank laid claim to charter number 20 through its historic linkage through 2730. The reassignment was accomplished by means of a special act of Congress on February 26, 1913. Comptroller Lawrence Murray formally approved the reassignment on March 5, 1913. The date that ended up on the Series of 1902 plate for the bank was June 2, 1908. This is the day that 2798 changed its title from The Fifth National Bank to The Fifth-Third National Bank. If you carefully examine the conventions on Table 1, you will find that this is logical, but it must have taken a convoluted clerical mind to have figured it out in 1913! Dates on the Series of 1902 Plates for Nashville, Tennessee (150) The First National Bank of Nashville, Tennessee (150), was chartered in 1863. The bank was merged with The Fourth National Bank of Nashville (1669), on July 8, 1912. The corporate entity of The First National Bank was voluntarily liquidated during the merger so charter number 150 vanished. Next, the title of The Fourth National Bank (1669), was changed to Fourth and First National Bank (1669), on August 7, 1912. Comptroller McIntosh approved the reassignment of charter number 150 to the Fourth and First National Bank on July 12, 1927. The Series of 1902 5-5-5-5 and 10-10-10-20 Plain Backs printed for the bank utilizing rein- stated charter number 150 bear the title change date of August 7, 1912. This date was copied from the last plate in use for 1669, following the policy for dates on title change plates in effect after April 12, 1919. Phoenix, Arizona, Error The convention for dating title change plates adopted in 1919, was incorrectly implemented for the First National Bank of Arizona at Phoenix (3728), creating a spectacular error. A new 10-10-10-20 Series of 1902 plate was ordered for the bank on March 12, 1929, reflecting the addition of the word "First" in the title. The title change had been approved by the Comptroller on July 17, 1926. The date placed on the plate was June 4, 1907. June 4, 1907 is the date of extension for the bank. However February 14, 1912, the date of statehood, was the most recently used date on the plates for the bank, and should have been the date used on the new plate. Notice that the curious result was the issuance of state notes bearing a territorial date (Huntoon, 1981). EXAMPLES OF ODD OR BAD DATES Careful examination of notes or proofs, especially if all the prints for one bank are laid out together, reveals inconsistencies and occasional errors. The inconsistencies usually involve what appear to be wrong days arising from cler- ical errors involving the date of organization or mistakes in calculating the dates of extension. Some examples follow. An error involving the date of organization appears on the Series of 1902 notes for St. Louis, Missouri (12220). The bank utilized three titles in the Series of 1902: The Missouri National Bank (1922-1925), The Grand Avenue National Bank (1925), and The Grand National Bank (1925-1929). The plates with the Missouri National Bank title carry the date June 15, 1922, which turned out to be an incorrect date of organization. The 10-10-10-20 certified proof with that title was used as a model to select the rolls to transfer reusable title block elements to the second title plates. The script June 15, 1922, was specifically ignored, indicating that there was a problem with it. June 5th was Table 7. Dates during which treasury signature combinations were current on National Bank Notes. Plate dates appearing with a given signature pair should fall within the range shown. Register Lucius E. Chittenden S. B. Colby Noah L. Jeffries John Allison John Allison John Allison John Allison Glenni W. Scofield Blanche K. Bruce Blanche K. Bruce Blanche K. Bruce William S. Rosecrans William S. Rosecrans William S. Rosecrans William S. Rosecrans William S. Rosecrans James F. Tillman James F. Tillman Blanche K. Bruce Judson W. Lyons Judson W. Lyons William T. Vernon William T. Vernon James C. Napier James C. Napier James C. Napier Gabe E. Parker Houston B. Teehee William S. Elliott William S. Elliott Harley V. Speelman Walter 0. Woods Walter 0. Woods Edward E. Jones Treasurer Francis E. Spinner Francis E. Spinner Francis E. Spinner Francis E. Spinner John C. New A. U. Wyman James Gilfillan James Gilfillan James Gilfillan A. U. Wyman Conrad N. Jordan Conrad N. Jordan James W. Hyatt J. N. Huston Enos H. Nebeker Daniel N. Morgan Daniel N. Morgan Ellis H. Roberts Ellis H. Roberts Ellis H. Roberts Charles H. Treat Charles H. Treat Lee McClung Lee McClung Carmi A. Thompson John Burke John Burke John Burke John Burke Frank White Frank White Frank White H. T. Tate Walter 0. Woods Period when Current Apr 17, 1861 - Aug 10, 1864 Aug 11, 1864 - Oct 4, 1867 Oct 5, 1867 - Apr 2, 1869 Apr 3, 1869 - Jun 30, 1875 Jun 30, 1875 - Jul 1, 1876 Jul 1, 1876 - Jun 30, 1877 Jul 1, 1877 - Mar 31, 1878 Apr 1, 1878 - May 20, 1881 May 21, 1881 - Mar 31, 1883 Apr 1, 1883 - Apr 30, 1885 May 1, 1885 - Jun 7, 1885 Jun 8, 1885 - May 23, 1887 May 24, 1887 - May 10, 1889 May 11, 1889 - Apr 24, 1891 Apr 25, 1891 - May 31, 1893 Jun 1, 1893 - Jun 30, 1893 Jul 1, 1893 - Jun 30, 1897 Jul 1, 1897 - Dec 2, 1897 Dec 3, 1897 - Apr 6, 1898 Apr 7, 1898 - Jun 30, 1905 Jul 1, 1905 - Jun 11, 1906 Jun 12, 1906 - Oct 31, 1909 Nov 1, 1909 - May 17, 1911 May 18, 1911 - Nov 21, 1912 Nov 22, 1912- Mar 31, 1913 Apr 1, 1913 - Oct 1, 1913 Oct 1, 1913 - Mar 23, 1914 Mar 24, 1915 - Nov 20, 1919 Nov 21, 1919 - May 1, 1921 May 2, 1921 - Jan 24, 1922 Jan 25, 1922 - Sep 30, 1927 Oct 1, 1927 - May 30, 1928 May 31, 1928 - Jan 21, 1929 Jan 22, 1929 - May 31, 1933 PAPER MONEY • March/April 2002 • Whole No. 218 65 substituted as the corrected date of organization, and used on the succeeding plates. The Series of 1882 plates for The Second National Bank of Utica, New York (185), are mis-dated November 6, 1883, a date that was to represent the beginning of the first extension for the bank. A mistake of one day was cor- rected when the second extension was granted so the correct November 5, 1903, appears on the Series of 1902 plates. Similarly the Series of 1882 plate for The First National Bank of Erie, Pennsylvania (12), is dated February 27, 1883, but the Series of 1902 plates are February 26, 1903. The Series of 1882 should have been February 26, 1883. The same thing happened to The First National Bank of New York, New York (29), where the Series of 1882 plates are dated February 26, instead of February 25, 1883. The Series of 1902 plates are dated correctly February 25, 1903. Greater confusion surrounded the date on the Series of 1902 10-10-10- 20 extension plate for the Tazwell National Bank of Tazwell, Virginia (6123). The date of organization for the bank was January 4, 1902, and properly appears on the first Series of 1902 plates made for the bank. However, the expiration date was mistakenly shown as January 8, 1922, in the list of expiring banks in the 1921 Comptroller's Annual Report. The extension plate was mis- dated January 9, 1922, caused by the same clerical error and compounded by using the then obsolete 20 years plus 1 day formula (Table 1). The plate date was never corrected, and probably was never noticed. Another mistake involved the Series of 1902 10-10-10-20 extension plate for The Carnegie National Bank of Carnegie, Pennsylvania (6174). The date of organiza- tion for this bank was March 13, 1902, but the date of expiration was incorrectly listed in the 1921 Comptroller's report as March 12, 1922, so the extension plate was mis- dated March 12, 1922. At least in this case they used the current 20-year formula. It could be argued that being off a day resulted from an attempt to avoid Sundays or holidays when the extension was grant- ed. This does not prove out. The fact is that no regard seems to have been given to Sundays and holidays when it came to dat- ing extension plates. If the formula required that the extension date fall on Christmas, so be it, as happened in 1906 for The Albany County National Bank of Laramie City, Wyoming (3615) which was organized on December 24, 1 8 8 6. December 25, 1906, appears on the Series of 1902 Laramie notes with this title. Likewise if the bank was to expire on December 31, use of the pre-1913 exten- sion formula forced the new plate to be dated January 1 of the following year. The First National Bank of Houlton, Maine (2749), is a case in point. The corporate life of this bank was set to expire on December 31, 1901. When extended, the .Nalmmateurrency S LU514X*1411111 MTN nonsotramte MIRTH TIMMER IIIRD STATES OF AMERICA . ", 4 • 4/ ; WA!**-kilti 5 E3 21 lirmcirm 441.44.0;144.4,14 , 1341. ,1Yr /: 4,41x44,1 /a. t%_'7 t-toet.a.24 • 187 66 March/April 2002 • Whole No. 218 • PAPER MONEY Series of 1902 plates were dated New Years Day, 1902. The First National Bank of Clifton, Kansas (7178) was organized on leap year day, 1904. February 29, 1904, appears on its 1902 plates! This was not a mistake, but certainly distinctive. THE CHOICE OF TREASURY SIGNATURES The general rule was that the plate date dictated which pair of treasury signatures appeared on National Bank Notes. The signatures of the Treasurer and Register of the Treasury in office on the date appearing on the plate were those that were placed on the plate. In cases where a plate date arose during a vacancy for one of the officers, the signature of the previous office holder was used. See Table 7. One example illustrates the care that was taken to match signature com- binations to the plate date. The Series of 1882 10-10-10-20 face plate for The Central National Bank of Washington, District of Columbia (2382) carried the date April 12, 1898, a date of extension. The plate was certified on March 15, This Series of 1902 Plain Back on Clifton, Arizona (5821), carries an extension date of May 14, 1921, and Elliott-Burke signatures. The Elliott- White combination became current on May 2, so the Elliott-Burke signatures are mismatched with the plate date. This type of date/signature mismatch occurred occasionally between 1915 and 1922, whereas it was scrupulously avoided at other times. 1898, while Blanche Bruce was still Register of the Treasury, so it carried the Bruce-Roberts signature combination. However, Bruce left office on March 17th, and was replaced by Judson Lyons on April 7th. Bruce's signature was altered to Lyons and the plate was re-certified on April 23, 1898. Series of 1875 Exceptions There were three groups of exceptions involving Series of 1875 plates when it came to mating the terms of office of the treasury officials with plate dates. (1) Current treasury signatures were added, but the date was left unchanged when an Original Series plate was converted into a Series of 1875 plate. Consequently, for the first time in the history of National Currency, the treasury signatures did not conform to the plate date. The conversion of an Original Series plate into a Series of 1875 plate could be greatly delayed if the stock of Original Series sheets for a given combination was large or orders from the bank were not made for a number of years. This resulted in the appearance of some very late treasury signatures coupled with early plate dates. For example, the last Original Series 5-5-5-5 plate to be altered into a Series of 1875 plate was for The Nokomis National Bank of Nokomis, Illinois (1934), an event which occurred on November 29, 1890 (Bureau of Engraving and Printing, various dates-b). The 1872 vintage Allison-Spinner signature combi- nation was replaced by the 1890 Rosecrans-Huston combination, whereas the 1872 plate date was retained. (2) Current treasury signatures were used, but the date was left unchanged when replacement plates were made early in the Series of 1875. This practice died out before 1882. Afterward, the signatures and date were A00000> offigifity, t„ .11.1.(INE191(111' MG, usirs.0 NI VA' Are You Interested in Rarities? Proof Federal Notes! Specimens -- Essays! Large Size Error Notes! Serial Number 1 Nationals! Uncut Sheets! Harry E. Jones POB 30369 Cleveland, OH 44130 (440) 234-3330 PNG Paper Money Dealer PCDA SPMC Since 1967 LM ANA ***NATIONALS! 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BOX 451 WESTERN SPRINGS, IL 60558 -0451 708 - 784 - 0974 SOCIFY NIONE1cda PAPER MONEY • March/April 2002 • Whole No. 218 I COLLECT FLORIDA Obsolete Currency National Currency State & Territorial Issues Scrip Bonds Ron Benice 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Buying & Selling Quality Collector Currency • Colonial & Continental Currency • Fractional Currency • Confederate & Southern States Currency • Confederate Bonds • Large Size & Small Size Currency Always BUYING All of the Above Call or Ship for Best Offer Free Pricelist Available Upon Request James Polis 4501 Connecticut Avenue NW Suite 306 Washington, DC 20008 (202) 363-6650 Fax: (202) 363-4712 E-mail: Jpolis7935@aoLcom Member: SPMC, FCCB, ANA 67 NIV lititik, -.. • . r - itiiiitidER -----' f i ' • , itillirUAILFt - :44441-4144.1-44sits.1.,_itzt.A.44444,1cutp VIAN . .,,It.lii . '/.,.,,:ii,, 4wEirivia44.1.4 -1%///fAM The 5-5-5-5 Series of 1882 plate for The Annville National Bank, Pennsylvania (2384), carrying an April 18, 1898, date of extension, and Lyons-Bruce signa- tures, was certified on March 2, 1898. Roberts replaced Bruce on April 7, necessitating that the plate be altered to show Roberts' signature in order to con- form to the plate date, so the plate was re-certified with the change on April 22. 68 March/April 2002 • Whole No. 218 • PAPER MONEY left the same as on the plates that were being replaced. (3) Current treasury signatures were added, but the date was left unchanged when plates were reentered early in the Series of 1875. This prac- tice also appears to have ceased before 1882. Afterward, the signatures and date were left as is on the plates. Series of 1902 Exceptions There are numerous instances between 1915 and 1922, where, following a signature change, the obsolete pair of treasury signatures continued to be used on new Series of 1902 plates. Plates for both new and extending banks were impacted. The result was the mating of plate dates with obsolete signa- ture pairs. These occurrences began when the Teehee-Burke combination replaced Parker-Burke on March 23, 1915. The problem recurred with suc- cessive signature changes through the Speelman-White combination on January 25, 1922. Obviously, little importance was attached to matching trea- sury signatures and plate dates during this period. Plates for new banks dated after March 23, 1915, bearing the obsolete Parker-Burke signature combination, were made for charters 10720, 10721, 10727, 10731, 10734, 10735, 10736, 10741 and 10745. Similarly, the obsolete Teehee-Burke signature combination is mated with a plate date younger than November 20, 1919, on the plate for charter 11548. The obsolete Elliott- White combination appears with plate dates higher than January 24, 1922, for charters 12112, 12115 and 12115. The Elliott-Burke combination was not used after May 1, 1921, on plates for new banks, but its late use was common on extended banks such as Clifton, Arizona (5821) May 14, 1921, and Wolcott, New York (5928) July 23, 1921. Notice that the Wolcott plate was dated almost three months after the Elliott- Burke combination had become obsolete. The Elliott-White combination occurs late on the plates for numerous extended banks as well such as Portsmouth, New Hampshire (19) March 2, 1922; Watertown, New York (2657) March 29, 1922; and Tucumcari, New Mexico (6288) March 31, 1922. Mavericks Maverick examples of plates bearing the wrong treasury signatures are certain to exist. Doug Walcutt found two examples involving Series of 1882 Brown Backs. The 5-5-5-5 and 10-10-10-20 plates for The First National Bank of Huntington, Pennsylvania (31) bear the date July 21, 1882, but carry the Bruce-Wyman signature pair. Wyman did not assume office until April 1, 1883, so the signatures should have been Bruce-Gilfillan. Similarly, the 5-5-5- 5 plate for The American Exchange National Bank of New York, New York (1394), with a plate date of July 1, 1885, has the Rosecrans-Huston pair instead of Rosecrans-Jordan. In the Huntington case, the preparation of the plates was delayed almost three years after the bank was extended; in the New York case, the 5-5-5-5 plate was ordered long after other combinations were in use for the bank. The young signatures on these plates indicates that someone was not paying atten- tion to detail when the plates were prepared. Walcutt (1996) found an odd situation on the $5 Series of 1875 E-F-G- H replacement plate for The Commercial National Bank of Providence, Rhode Island (1319) which was approved for use on January 7, 1881. At that time, it was the practice to update the treasury signatures, but leave the plate date as on the original plate. In this case, they updated both the signatures and date. The original Allison-New signatures were replaced by Scofield-Gilfillan, and the date August 1, 1865, was changed to January 5, 1881. DISCUSSION Table 1 and the other information in this article can be used to explain more than 99 percent of the dates found on National Bank Notes. The dates mean something, the least useful from the perspective of bank historians being PAPER MONEY • March/April 2002 • Whole No. 218 69 the batch dates on Original Series, Series of 1875, and some early Series of 1882 plates. Gradually the dates applied to the plates evolved from dates reflecting record keeping practices in the Comptroller's office to dates having significance for the actual banks of issue. Adoption of dates of extension and dates of title change for existing banks in 1882, and finally dates of organiza- tion for new banks in 1898, produced dates that were fully relevant to the banks. The only serious lapse developed in 1919, when title change plates began to carry dates copied from obsolete plates. Suddenly, the dates on those plates made no sense, yet that odd practice persisted until the large size nation- als were phased out in 1929. ACKNOWLEDGMENTS Gerome Walton (1977, 1978) was the first to reveal the numismatic importance of the date of organization. John Hickman (deceased) always had a keen interest in plate dates and his desire to understand them challenged me to worry about them as well. As I prepared earlier versions of this work, John spent considerable time at the end of a phone searching through his photo- copies of National Bank Notes for dates as I called out charter numbers. Doug Walcutt's research shed important light on some special cases including find- ing the first examples of the oddities listed in Tables 3 and 4. Doug also had a good eye for mismatched plate dates and signatures. Lynn Vosli.)11 (retired) and James Hughes, Smithsonian Institution Division of Numismatics, helped locate hundreds of certified proofs which had to be examined. Don Kelly's book (Kelly, 1982) is indispensable for a study of this type. REFERENCES CITED AND SOURCES OF DATA Bureau of Engraving and Printing, various dates-a, Certified Proofs from National Bank Note face plates. National Numismatic Collections, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, various dates-b, Correspondence To and From the Bureau of Engraving and Printing. U. S. National Archives, Washington, DC. Comptroller of the Currency, various dates, Ledgers Showing Receipts of National Bank Note sheets from the Engravers, including plate dates. U. S. National Archives, Washington, DC. Huntoon, P. "The Mis-dated 1902 Plate for The First National Bank of Arizona at Phoenix," Paper Money, Vol. 20 (1981), pp. 67-70. Huntoon, P. United States Large Size National Bank Notes. Laramie, WY: Society of Paper Money Collectors (1995). Kelly, D. Note Issuing National Banks, Alphabetic by City Name, Numeric by Charter Number. Oxford, OH: Paper Money Institute Inc. (1982). Walcutt, D. "Varieties of National Bank Notes, part nine," The Rag Picker, Vol. 31, no. 3 (1996), pp. 16-25. Walcutt, D. "Varieties of National Bank Notes, part seventeen," The Rag Picker, Vol. 33, no. 2 (1998), pp. 6-26. Walton, G. "Dates on Nebraska National Currency," The Numismatist, Vol. 90 (1977), pp. 2005-2030. Walton, G. A History of Nebraska Banking and Paper Money: Lincoln, NE: Centennial Publishers (1978). United States Statutes, Acts of February 25, 1863, July 12, 1882; February 26, 1913; and July 1, 1922, pertaining to National Banks: Washington, D.C: U. S. Government Printing Office. March 15, 2002 Deadline The 2002 George W. Wait Memorial Prize deadline is nearing All applications and supporting materials MUST be received at PO Box 793941 Dallas, TX 75379 -3941 by deadline to qualify for consideration For details see Paper Money N/D 2001 page 386 or contact IVATIOAiL CUIEMENCY 4.414 a14 SOCif REID 4e - O (10.11S3401 .;1 tatffM 141114.411l1G =.Vaiiint :WW1 vi[titS".. /p. . 1;,./4/ l tillo on DomiliD. - - ‘1112GILTY - zottgo.40112Diak 110 70 March/April 2002 • Whole No. 218 • PAPER MONEY tona l B ank pres iden t BY KARL. S. KABELAC Eliza Dolbeer Page, President of the First National Bank of Perry, NY from 1894-1907. E.D. Page's signature (unfortunately partly obscurred by the bill's design) as bank president on one of the 13,800 Series of 1882 Brown Back $10 notes issued by the bank. Eliza's son William D. Page has signed as cashier. The geographical designa- tion, E, dates the note as issued after March 17, 1902. AT LEAST FOUR WOMEN SERVED AS NATIONAL BANKpresidents in New York State before 1900. One of these pioneeringwomen was Eliza Dolbeer Page of Perry, New York. Perry is the largest community in rural Wyoming County. The county is something less than an hour's drive southwest of Rochester and about the same distance east of Buffalo. The village was first settled in the early 1800s, and saw a spurt of growth in the late 19th and early 20th cen- turies. Its population zoomed from 1,528 in 1890 to 4,388 in 1910. Today's popu- lation is about 4,200, and the village serves as a trade center for the sur- rounding agricultural area. Eliza Dolbeer was born in Perry in 1825, the daughter of William and Hannah (Kimball) Dolbeer, who were early settlers in the area. Her father was a blacksmith and carriage maker. Prior to her marriage in 1850 to Henry N. Page, she taught in a local school. Henry N. Page was born in Vermont in 1823, and came to Perry as a young man in 1843. His sister had married into the Smith family, who founded the Smith's Bank of Perry in 1855. Page first became associated with the bank as cashier and in 1862 became its manager. He became the owner at his sister's death in 1886. Smith's Bank received a National Bank charter (#4519) in February, 1891, as the First National Bank of Perrv. PAPER MONEY • March/April 2002 • Whole No. 218 71 Just a few months later, part of Perry's downtown burned, destroying a group of buildings adjacent to the hank. Page filled a wastepaper basket with the bank's cash and securities and carried them across the street where he suc- cessfully waited out the fire. When Page died on June 29, 1894, at the age of 70, his widow succeeded him as president of the bank. Their older son William continued as the cashier. According to the Annual Report of the Comptroller of the Currency for 1895, the First National Bank of Perry had $11,250 in National Bank Notes outstanding. Mrs. Page, nearly 70 herself when she assumed the presidency, served for more than a decade, retiring in January, 1907. -William then became president, and her younger son, George, the cashier. At her death in April, 1909, it was noted that she had been "one of the few women bank presidents in the country." The family remained active in the bank for the next half century. William served as the president until his death in 1928. Then his brother George successfully brought the bank through the Depression, and served until his death in 1939. At that point, his son, Henry (named for his grandfa- ther), who had been associated with the bank since 1921, became president. In 1962 the First National Bank of Perry merged with the Citizens Bank of Perry (founded in 1888) to become the Bank of Perry. Five years later the Bank of Perry was taken over by the M&T (Manufacturers and Traders) Bank of Buffalo. M&T Bank has a large presence in upstate New York, and its office in Perry con- tinues to serve the village and sur- rounding area with a heritage that now extends back nearly a century and a half. SOURCES AND ACKNOWLEDGMENTS Especially helpful in prepa- ration of this article was the bank's illustrated centennial booklet, The First National Bank of Percy (1955). Also useful were the two histories of Perry, Frank D. The First National Bank of Perry, NY (c. 1897) with Eliza D. Page's sons, George K. (second from left) and William D. (right). Both would later serve as presidents of the bank during the National Bank Note issuing period. Condition of the Bank on Sept. 28, 1895, as recorded in the Annual Report of the Comptroller of the Currency. First NatiOnal Bank, Perry. ELIZA D. PAGE, President. No. 4519. WILLIAM D. PAGE, Cashier. Loans and discounts $83, 166. 31 Capital stock paid in $50, 000. 00 Overdrafts 15.72 U. S. bonds to secure circulation-.. 12, 500. 00 Surplus fund 4, 250. 00 U. S. bonds to secure deposits Undivided profits, less current U. S. bonds on hand expenses and taxes paid ..... . _ . 969.51 Premiums on U. S. bonds 1, 684.50 National-bank notes outstanding. 11, 250.00 Stocks, securities, etc 4,000. 00 State-bank notes outstanding Ban k'g house, furnitu re, and 6 stares 12, 000.00 Other real estate and mortg's owned Due to other national banks 34.70 Due from other national banks 1, 203.73 Due to State banks and bankers.. Due from State banks and bankers. 473. 95 Duo from approved reserve agents. 5,649. 15 Dividends unpaid Checks and other cash items 18.23 Exchanges for clearing house 81.00 Individual deposits 55, 372.01 Bills of other national banks 145.00 United States deposits Fractional currency, nickels, cents. 104. 13 Deposits of U.S.dishursing officers_ Specie 1, 366.00 Legal-tender notes 1, 906.00 Notes and bills rediscounted U. S. certificates of deposit Bills pityable 3, 000. 00 Redemption fund with Treas. U. S. 562.50 Due from Treasurer U. S Liabilities other than those above stated Total 124, 876. 22 Total 124, 876. 22 ilirAkintoNAIL,,77,4 51 CUM BY WRITE SLUES RODS INTO MID WIIN THE TREASURER Or 111,11 )11112*1112*.L111 • • THE FIRST NATIONAL BANK 0 F PERRY NEW YORK WILL PAT TO TWO BENNER ON DEMAND ATM I 110141.4.111S IFIL1111131 .11,1111111Ealf J Any fractional Note. 411.)/ The Fractional Store at a n o eame will buy, trade, consign or upgrade any United States Fractional Currency Note in your collection. Silver Penny Currency and Coins, Ltd. Post Office Box 339, Red Feather Lakes, CO 80545 Toll Free: 1-877-204-5220 email: URL: www.fractionalnotes.corn 72 March/April 2002 • \A/hole No. 218 • PAPER MONEY A Series of 1929 Type 1 note with Eliza D. Page's younger son, George K. Page, as president and his son Henry N. Page as cashier. (Courtesy William Youngerman, Inc.) Roberts, History of the Town of Perry, New York (1915), and Perry, New York As It Was and Is, 1776-1976 (1976), and the 19th century History of Wyoming County, N.Y. (1880). Eliza D. Page's obituaries may be found in the Rochester Democrat and Chronicle, Rochester Post Express and the Rochester Union and Advertiser for April 5, 1909, and the Rochester Herald for April 6, 1909. Margaret Parker, Librarian of the Perry Public Library, is gratefully acknowledged for providing suggestions, information and illustrations. Especially useful in the library's resources was the local history collection founded by Henry N. Page (1899-1979), Eliza D. Page's grandson and the last family member to be president of the bank. Support our advertisers. Tell them you saw their ads in PAPER MONEY .1 John Hickman PAPER MONEY • March/April 2002 • Whole No. 218 73 The John Hickman Project By Don C. Kelly What is the John Hickman Project? THE JOHN HICKMAN PROJECT HONORS Aman known for many accomplishments, but known best as a friend and mentor to legions of collectors of those bits of paper and ink called "National Bank Notes." The John Hickman Project seeks to record the identifying information of every surviving National Bank Note — including serial numbers, condition, and pedigree. National Bank Notes carry the signatures of the bank's Cashier and President. The John Hickman Project will build a database of names of Cashier- President combinations during the note-issuing period 1863-1935. Who was John Hickman? John Thomas Hickman was born in 1927 at Macon, Georgia, and moved to Des Moines, Iowa, where he acted as the Iowa distributor for two Chicago companies which manufactured bank equipment. His regular calls on banks gave him entree to those who signed Nationals. His extraordinary ability as a salesman carried over to numismatics. He tirelessly promoted the idea of col- lecting Nationals by location, rather than by type or Treasury signature combinations. During the Sixties and Seventies John and his partner John Waters issued periodic price lists of nationals, arranged by states. These lists, loaded with classic Hickman insights and bank lore, are still cherished by many collectors and dealers. John began collecting data on notes which passed his view. The data, including serial numbers and bank officer signatures, were preserved on cards which John stored in a shoebox. Thus began the John Hickman Project. Later, John continued his promotion of Nationals as "hometown paper money" with his partner Dean Oakes. They issued price lists of Nationals, conducted auctions, and collaborated to produce two editions of The Standard Catalog of National Banknotes. The heart of John's database was included by attaching a rarity num- ber to the issues for each note-issuing National Bank. John mentored many collectors, including Peter Huntoon and Bill Higgins. Perhaps his greatest feat as a salesman was to persuade Bill Higgins to establish the Higgins Museum in Okoboji, Iowa. The museum hous- es the Higgins collection, but it stands taller still as a monument to John Hickman. John Hickman was truly an evangelist, ever laboring to record the survival of notes and to entice new collectors to take up the quest of Nationals. What began as a modest shoebox accumula- tion of data grew to a refined database of more than 135,000 notes before his death in 1995. To date, 200,000+ National Bank Notes have been reported, and the end is not yet in sight. Shortly before John passed away he confided that when he started the census he expected there were between 35,000 and 50,000 surviv- ing National Bank Notes. At that point his census num- bered 135,000 notes! He said, "If I'd known there were so many I'd never have started counting them." He was kidding -- if John were alive today, he'd still be counting them, savoring every detail of their survival. Personal Recollections of John Hickman I first met John Hickman in Milwaukee in the early 1970s at the Central States show. After the show had closed for the evening, a group of paper money collectors and dealers formed in the lobby of the motel. I recall Vernon Oswald ("Ossie"), a person who enjoys telling stories, having a tough time getting a word in edgewise. Hickman took complete command of the assembly. John presented the subject of National Bank Notes in an authoritative and captivat- ing style. In the years which followed we met at the St. Louis show and sometimes at Memphis. I made him a standing offer: I'll buy lunch if you will talk! What a bargain I got. John Hickman changed my view, my world, and my life. Nationals became more than bits of paper and ink. John turned them into histories of hometown triumphs, tragedies, and intrigues. Because of John Hickman, National Bank Notes became my passion. Thank you John, for your gifts of friendship and inspiration. Present Status of the John Hickman Project At present the serial number database contains more than 200,000 notes. For some states the census is = io_anhizr Y421419:-. 7.11E AL,;4„4„• 1414 low CO NATION4AM-rto0 Pe TWIrl 11_1(41alr..VIVS, 2374 Ts-,,,moinammotriallegosszonamiri arisaltsommkarera rig._=1,111F 74 March/April 2002 • Whole No. 218 • PAPER MONEY excellent. For others the coverage is mediocre. My fig- ure of merit for excellence is an average of 20 or more notes per charter number. Reaching this number for all states should be attained when the database population reaches 250,000 notes. Sadly, several states have a recorded average of fewer than 10 notes per charter. Your help in improving the data base will be welcomed. The Officers database is partially complete for the years 1867-1935. It includes the names of the Cashier and President of each National Bank during the note- issuing period. Records are incomplete for 1863-1866 and are likely to remain that way for some time to come. Five specialized segments of the full National Bank Note database have been published, most recently in August, 2001. 1) Lazy Twos (1500+ notes) 2) Series 1882 Value Backs (1800+ notes) 3) Series 1902 Red Seals (4000+ notes) 4) $50, $100, $500 Nationals (7000+ notes) 5) Serial Number 1 Nationals (5900+ notes) Sixty sets of these reports were made available in August, 2001, to supporters of the Higgins Museum. Short Term and Long Term Goals In the near term, data will be released for individual states, starting with the smaller states where publication requires no more than a few pages. This effort begins here with the report for Porto Rico. Alaska, Hawaii, and Utah are scheduled to follow. Ultimately the full database of serial numbers and officers will be made available in CD format, and quite likely online. John Hickman's "Quid Pro Quo" Policy John believed firmly in sharing information with collectors and dealers. He realized that serious col- lectors will respond in an enthusias- tic fashion when they have a clear picture of what is possible to collect. When asked for information con- cerning Nationals, John would reply, "Information is gladly given on a quid pro quo basis." In short, "let's trade information." Not all collectors embrace John's sharing policy. A small minority believe that their treasures are more valuable if their information remains "secret." Time has a way of cleansing this mental midget mentality from the gene pool. The one thing that all markets fear is uncertainty. The history of numismatics is filled with examples of how widely dis- seminated information has spurred collector interest and enhanced values - most recently the stimulus brought about by the Oakes-Schwartz book.* You can best honor John Hickman by adding to his legacy. The following samples show the information needed to identify a National Bank Note uniquely. Please take a few minutes to make a listing of your Nationals, or those you may see at a show, or local museum, and send them to the author** so that they may be added to the census. Notes: * Oakes, Dean, and Schwartz, Joh Small- Size U.S. Paper Mon Publications (1999). Don C Kelly P.O. Box 85 email: ey. The John Hickman Project - Porto Rico A one-bank possession with just 12 notes known to have survived. Charter 6484 The First National Bank of Porto Rico at San Juan. Chartered 11/10/02. Liquidated 9/8/11 Denom Type Bank # Pos Treamly # Grade 10 02RS 84 A A416496 Fair 10 02RS 2024 C Y421069 VG-F 10 02RS 2063 Y421108 VF 10 02RS 2081 B Y421126 Fine 10 02RS 2243 B Y421288 VF 10 02RS 2249 C Y421294 VF 10 02RS 2374 C Y421419 VG 20 02RS 517 A A439231 F-VF 20 02RS 2026 A Y421071 Fine 50 02RS 429 A A59148 VG-F 100 02 RS 615 A A264407 VF-XF 10 02DB 515 E F1465413 VG n. Standard Guide To Iola, WI: Krause Oxford, OH 45056 (Photo courtesy Peter Huntoon) Officers Year President Cashier 1903 S. O'Donnell F. M. Welty 1907 E. L. Arnold Wm. B Hamilton 1908 E. L. Arnold F. M. Welty 1909 (vacant) F. M. Welty 1910 E. L. Arnold 0. E. Schnitzspahn 1911 Andres Crosas 0. E. Schnitzspahn PAPER MONEY • March/April 2002 • Whole No. 218 75 On Nebraska National Bank Note Raritu Impact of Nebraska's Bank Deposit Guaranty Law of 1909-30 BY GEROME WALTON INTRODUCTION The purpose of this article is to explain why so many Nebraska National Banks went out of business during the years 1909-1930, but particularly in 1914. The Nebraska State Bank Deposit Guaranty legislation was a primary cause. This article summarizes the legislative and the legal aspects of Nebraska's struggle with the bank deposit guaranty concepts, and how that influenced Nebraska's National Banks and their bank notes of that period. THE GUARANTY 1 HAVE ALWAYS WONDERED WHY MORE NEBRASKANational Banks went out of business during the year 1914 than any otheryear during the note-issuing period of 1863-1935. Explanations byother researchers based on nationwide or even more localized economic trends did not explain Nebraska's situation satisfactorily. Ironically the cause for the high number (of National Banks going out of business in that period) was the creation of the Nebraska State Bank Deposit Guaranty Fund by the Nebraska Legislature. I had known of the Nebraska guaranty fund for many years, but made the casual association and discovery while reading Haller (1990). The legislation (Chapter 10, pp. 66, Laws Nebraska 1909) authorizing the fund was passed on March 25, 1909. The purpose of the legislation was to establish a fund to guaranty the deposits in the Nebraska State banks (Haller, 1990). Because this legislation was of a state origin, the deposit guaranty did not extend to the 221 nationally chartered banks doing business in Nebraska at the end of 1909. In 1909 the nation was just coining out of the terrible money panic of 1907. This panic caused among other things, an reassessment of Federal banking laws. One result was passage of the ineffective Aldrich- Vreeland Act by the U.S. Congress on May 30, 1908. Its purpose was to make the money supply more elastic. This assessment also led to the establishment of the current Federal Reserve System in 1913. Discussions about how to assure the safety of money deposited in Nebraska's banks had been going on since the 1890s, an outgrowth of the panic 1893. William Jennings Bryan, the golden tongued orator, and three time Democratic presidential candidate from Nebraska, had come out in favor of protecting the people's bank deposits. Bryan ran in the campaigns of 1896, 1900, and 1908. Nebraska was one of eight states following the turn of the century which attempted to protect bank deposits through guaranty laws. The others were North Dakota, South Dakota, Kansas, Oklahoma, Texas, Mississippi, and Washington, (for order of adoption see Chart 7). All the deposit guaranty laws ta,..14,1 y■Ir., SaiitumallCurienev • SECURER m ..1111 SIAM RHOS 0110TURSECLINITIES NITEDSTATESOFAMERICA Valfga,lk 11 1107r 4-401W6,--AtikAra -._01.7/w/v /%;/5/ 41.2w20.1.1S> /02 S &Li& 76 March/April 2002 • Whole No. 218 • PAPER MONEY Photo 1 failed between 1923 and 1930 because a lack of adequate supervision and enforcement bankrupted the funds. This is not to say that all state guaranty funds were run the same (see Table #2). In at least three instances, participation was voluntary (Kansas, Texas, and Washington). In South Dakota, an older guaranty system operat- ing much the same as in the other states, was discarded by the legislature. A newer individual bank reserve system was established, whereby each bank was required to build up a reserve in the state treasury to be maintained for the protection of its own depositors. Such funds remained the private property of the bank. None of the schemes worked. The Nebraska Deposit Guaranty Fund was in trouble from the very beginning. Upon passage, a group of bankers (it was rumored a group of bankers from Omaha were behind the scene instigators) filed suit to test the law's constitutionality. The District Judge in the lawsuit, T.C. Munger, explained the situation this way: The Nebraska law prohibits individuals from engaging in the banking business, unless they do so through the agency of a corporation, and also condi- tions the right to engage in that business upon the making of enforced contribu- tions to a separate fund called a depositors' guaranty fund, to be used for the pay- ment of the claims of depositors of any bank organized under state law, which has become insolvent. The state banking board is given the authority to draw the money out of this fund to discharge the obligations of the insolvent bank to its depositors. The questions involved are whether the act violates the provisions of the Constitution of the United States and of the Constitution of the State of Nebraska. May the Legislature of Nebraska restrict Corporations formed under the laws of the state the right to engage in the banking business, and at the same time require them, as a condition of engaging or continuing in such business, to make these periodic contributions to what is called the depositors' guaranty fund? Section 1 of the Fourteenth Amendment to the Constitution of the United States provides that: "No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty or property without due process of law." And Section 1 of Article 1 of the Constitution of Nebraska declares that all persons have certain inalienable rights, and among these are "life, liberty, and the pursuit of happiness," and Section 3 of the same article provides that: "no person shall be deprived of life, liberty or property without due process of law." This then, in a nutshell, was the constitutionality concern. The legal lan- guage in the actual lawsuit documents can be very daunting to read. For those who want the challenge I have included, later in this article, the ten arguments from the 1931 Nebraska lawsuit. In November, 1909, the District Court decided in favor of the bankers. In January, 1910, the State of Nebraska appealed to the Nebraska Supreme OfinaEBTEMOD .1111 PAPER MONEY • March/April 2002 • Whole No. 218 77 T., Photo 2 hl r.shr .• itentan* 4418 -44 ttlazittaic sertwizo • . - ilqatittaAtkasitur ----171E [6.4 7 Photo 3 Civil 1'. W.A Court, which reversed the lower court and decided for the state. The Nebraska State bankers then appealed to the United States Supreme Court. The case was Shallenberger vs. First State Bank of Holstein (219 U.S. 114) where the Nebraska Bank Guaranty Law was sustained as constitutional on January 3, 1911. Justice Oliver Wendell Holmes handed down the decision. Ashton Shallenberger was the Governor of Nebraska at the time. Challenging the constitutionality of the Guaranty Law was a legal means to try to overturn the legislation -- the real reason the group of bankers was concerned materialized later, just as the group had predicted. From January 1911, the door was open for state chartered banks to have deposits covered by the Guaranty Fund. The door was also now wide open for state bankers to use questionable banking practices, with no fear of the depositors losing their deposits. The state, through regular and, if necessary, special assessments to all state banks in Nebraska, covered deposits of a bank that had gotten into trouble. The fund also covered those good banks caught in economic contrac- tions that were brought about by uncontrollable factors, which, of course, was what the Guaranty Law was primarily designed to do. The bank inspection system at the state level was certainly not as stringent as at the Federal level, so problems could and did arise. The officers of the National Banks realized that the state banks, having the guaranty, had a competitive edge. The result was a rush by Nebraska National Banks to switch to state charters in order to pick up the guaranty pro- visions beginning in 1911 (see Charts 1 and 2). These conversions peaked in 1914. Chart 4 shows that more National Banks than ever went into voluntary liquidation in 1914. Chart 2 shows them receiving state charters. There were no restrictions on the number of banks in one town. New state banks could be chartered, offer higher interest on deposits -- why not, they were guaranteed -- HO 2Na-ra.ainimputz.,Buts... 1)01.1..uv1t s Pkil" TO TEM: 41)111DER OF 76-284 Ite al&Oa01, 42111121INIETAtt GEI:m311FI • • • j--;- mo m' .• ••• • •• • • • • •• • •• ••• ert2r1::,,ozin •• • sar,-.411tax.ITER. meg_ No. ,kirri -W "Pe ).5s d EP q SITS IN AM ES IRS ••• AR E PROTECTED BY THE or•PEITORS DUARANTIES - IPT LS BO 431 In• STATE OF SDIVRASKA . .40.14 2 Z.:"001 .v.mati 11'111'1 111TIEZ TATE IR 7 6 9 8 2 PAN, To •P11111 dooms. or ran 78 March/April 2002 • Whole No. 218 • PAPER MONEY and in the process force National Banks to convert to state charters or close. Many of the National Banks opted to convert and continue in banking. Charts 1 and 2 show 72 National Banks converting to state charters from 1909 to 1931, with the highest number of conversions (18) in the year 1914. The years that the state Guaranty Fund was in operation were years of upheaval in Nebraska banking. For instance, there were 27 state banks that opted to convert to national charters (Note: the trend at this time was National Banks converting to State Banks); 18 of these occurred from 1909 to 1911. Did they want to get away from the coming assessments? Six of these 18 soon decided to switch back to state charters. Did they find competition too great from the state banks with the implied guaranty? These six are listed here: Citizens Bank to Citizens NB McCook (1909) to Citizens SB of McCook (1916) City Savings Bank to City NB Omaha (1909) to SB of Omaha (1916) Peoples Bank to FNB of Lodgepole (1910) to First SB of Lodgepole (1911) Ponca Valley Bank to FNB of Lynch (1910) to Security SB of Lynch (1917) Brunswick Bank to FNB of Brunswick (1911) to Brunswick SB of Brunswick (1916) Deuel County Bank to FNB of Oshkosh (1911) to First SB of Oshkosh (1915) Three checks on Nebraska banks with Deposit Guaranty logos. See arrows. Lyn Knight Currency Auctions 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'll be happy to travel to your location and review your notes 800-243-5211 Mail notes to Lyn Knight Currency Auctions P. 0. 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 aclmowlege receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. n h I Currency Auctions A Collectors Universe Company Nasdaq: CLOT P.O. Box 7364, Overland Park, KS 66207 • 800-243-5211 • 513-338-3775 • Fax: 913-338-4754 • E-mail: • Deal With The Leading Auction Company in U.S. Currency siti LO 1890 $1,000 "Grand Watermelon" Note $500 1880 Legal Tender A4g7 Or' negaid. Serial #1 Washington Brownback 1882 $1,000 Gold Certificate PAPER MONEY • March/April 2002 • Whole No. 218 79 •• 5-1 111, DEPOSITORS IN THIS BANK PROTECTED BY ( GUARANTY FUND IF INTEREST IS NOT PAID IN EXCESS OF FOUR PER CENT PER ANNUM • • - •".,*• March/April 2002 • Whole No. 218 • PAPER MONEY80 This logo is the result of regulators trying to control exorbitant interest rates paid on bank deposits. Below: A 1998 photo of the empty lot where the First State Bank of Holstein stood in 1909. Right below: A 1998 photo of Holstein, NE busi- ness street. The community's popula- tion in 1990 was 207. The result of these conversions and reconversions is that the above listed banks had very short periods of time as National Bank Note issuers. Add to that, they went out of business early. Is it any wonder then that the notes from these banks are especially rare? A point of interest concerns the banks placed into receivership. Receivership meant that the bank could not be salvaged. Charts 3 and 4 show these banks. The receiverships are clustered around the financial panic of 1893 and the agricultural and great depression of 1921 to 1935. They are not, during the years 1909-1920, when the Guaranty Fund was having its greatest effect. It is apparent from Table 1 (U. S . Department of Agriculture Yearbooks, 1909-1920) that the prices for corn and wheat and crop yields in Nebraska did not unduly suffer between 1909-1920. The farming economy was not a factor in the large number of voluntary liquidations from 1909-1920. If there had been a farming downturn, it should be pointed out, it would be more normal for banks to go into receivership rather than voluntary liquidation. The point being that banks going into receivership would be a normal, but not exclusive, result of farming downturns. There was a decrease in the number of National Banks going into vol- untary liquidation and converting to state charters after 1914. There were several reasons for this. The Comptroller of the Currency, in trade newspa- pers and magazines, said he was concerned about the new guaranty laws jeop- ardizing the safety of National Banks. He also warned National Banks against setting up affiliated Savings Banks to take advantage of the guaranty. It is true that the comptroller could not control whether a National Bank went into vol- untary liquidation, but there could be a lot of jawboning in trade papers. The Nebraska Bankers Association appointed receivership committees to inspect failed state banks, and later formed the State Agricultural Loan Association. The purpose of the Association was to realize cash on the good assets in the hands of receivers, and thus stop the drain of special assessments on surviving banks' capital. These and other actions, albeit small attempts of control or regulation, did seem to have a moderating effect in general by indirectly letting some bankers know that restraint was needed on their part. There were 659 Nebraska state charters in operation in 1909. By November, 1920, 1,065 state charters had been issued. By 1926, 154 state banks were in trouble: 117 of them had gone into receivership, with deposi- tors being paid in full by $15,000,000 collected from all state bankers through assessments. In early 1928 there were still 123 banks in trouble with total additional liabilities of another $15 million. State bankers almost unanimously TABLE 1 Year CORN Price Yield in Bushels WHEAT Yield in Price Bushels 1909 $0.50 24.8 $0.89 18.8 1910 $0.36 25.8 $0.80 16.1 1911 $0.55 21.0 $0.87 13.4 1912 $0.37 24.0 $0.69 17.6 1913 $0.65 15.0 $0.71 17.9 1914 $0.53 24.5 $0.95 18.6 1915 $0.47 30.0 $0.84 18.3 *1916 $0.78 26.0 $1.60 19.4 *1917 $1.20 27.0 $1.95 13.8 *1918 $1.28 17.7 $1.97 11.3 *1919 $1.22 26.2 $2.02 13.8 1920 $0.41 33.8 $1.31 16.8 *The price increases 1916-1919 were the result of World War 1 PAPER MONEY • March/April 2002 • Whole No. 218 felt they could not pay this amount in assessments and remain solvent. THE FINALE On December 15, 1928, after a special assessment of one-fourth of one percent of the average daily deposits, a lawsuit (Abie State Bank vs. Weaver, Governor of Nebraska) was filed. The Abie State Bank on behalf of several hundred Nebraska state chartered banks challenged the constitution- ality of the statute authorizing the levy of such special assess- ments. Their grounds were that collection of these assess- ments constituted the taking of the bankers' property with- out due process of law, in violation of the 14th Amendment to the Constitution of the United States. By 1930 this suit had gone all the way to the United States Supreme Court (219 U. S. 282). Chief Justice Charles Evans Hughes, hand- ed down the decision on February 25, 1931, declaring these assessments as constitutional. While this suit was wending its way through the courts, the Nebraska legislature at a special session repealed the Deposit Guaranty Law on March 18, 1930. By 1930 the guaranty fund had become onerous because it was cost- ly and a blank check for abuse. As the Northwestern Banker a trade paper, edi- torialized: "The guaranty of bank deposits law pays the losses on bad banking. The guaranty bank law theoretically welcomes any individual, whether quali- fied or not, to enter the banking business and says to him, in fact no matter how poorly he may run his institution, the other banks in the system will insure his depositors against loss. In other words, the guaranty deposit law makes bad banking easy and places an additional burden on good banking." The repeal legislation of 1930 created ''The Depositors Final Settlement Fund" which assessed Nebraska state bankers an additional $8 million above the previous regular assessments and special assessments. The repeal legisla- tion thus brought an end to the bank deposit guaranty law in Nebraska, but as we shall see, this was not the end of the legal battle. The state bankers having lost their lawsuit (Abie State Bank vs. Weaver which became Abie State Bank vs. Bryan, when Charles Bryan was elected Governor in 1931) were still required to pay the assessments, special assessments, and the final settlement assess- ments. When a request for a rehearing by the U. S. Supreme Court was denied, the Nebraska Bankers Association (as in the previous two cases, to protect its member banks' assets and in some cases the banks very existence) brought suit, again on constitutional grounds, through the state banks. This time the suit was Hubbell Bank vs. Bryan. The Hubbell Bank vs. Bryan suit was filed in district court Lancaster County, NE in April, 1931. The constitutionality of certain sections of the compiled 1929 Statutes of Nebraska, which included the later enacted law repealing the deposit guaranty law and creating the "Depositors Final Settlement Fund," were the major points of this new lawsuit. The focus of this suit was the depositors guaranty fund law repeal legisla- tion of March 18, 1930, which created The Depositors Final Settlement Fund. Among other things, it provided for the transfer of assets from the depositors guaranty fund to the depositors final settlement fund, including certain assess- ments, which had not been paid under the old law, and provided for additional assessments for a period of 10 years. This transfer of funds and combining of assessments allowed this lawsuit to focus in on the repeal law and all combined remaining assessments. The 10 arguments in this lawsuit, as abstracted from Nebraska Reports Vol. 124, follow on page 84: 81 STATE GUARANTY PLANS State Legislation Passed Operational Inoperative Repeal Compulsory Membership Regular Assessments (Most Common) Special Assessments (Most Common) Banking Dept. Discretion To Issue Charters U.S. Supreme Court Cases Comments Oklahoma December 17, 1907 February 14, 1908 1921 March 31,1923 Yes 1/5 of 1% 1/5 of 1% None Until 1913 Constitutional Noble SB Vs Haskell (1911) Kansas March 6, 1909 June 30, 1909 1926 March 14, 1929 No 1/20 of 1% 1/20 of 1% Full, But Lax Constitutional Assaria SB Vs Dolley (1911) Nebraska March 25, 1909 July 1, 1911 1930 March 18, 1930 Yes 1/20 of 1% 1% None Until 1923 Constitutional FSB Holstein Vs Shallenberger (1911) & Able SB Vs Bryan (Weaver) (1930) Texas May 12, 1909 January 1, 1910 1925 February 11, 1927 Yes (Dual System) 1/4 of 1% 2% Average daily deposit Full By 1913 Dual System (Deposit Guaranty) or (Deposit Bond System) Mississippi March 9, 1914 March 9, 1914 1930 April 2, 1934 Yes (Except First year) 1/20 of 1% 1/20 of 1% 1Bank Exemption Full By 1924 Bank of Oxford Vs Love (1919) South Dakota March 5, 1915 January 1, 1916 1925 July 1, 1927 Yes 1/4 of 1% None Full 1st System Deposit Guaranty 1915- 26 2nd System Banks Individual Accounts 1927- 31 (Not Guaranty Insurance Principle) North Dakota March 10, 1917 July 1, 1917 1924 July 1, 1929 Yes 1/20 of 1% 1/20 of 1% Full By 1927 Washington March 10, 1917 June 29, 1917 1921 February 8, 1929 No 1/10 of 1% 1/2 of 1% Full, But Lax Mass Exodus Of All Banks In The System June 30-Dec 30 1921 TABLE #2 CHECK THE "GREENSHEET" GET 10 OFFERS THEN CALL ME (OR WRITE) FOR MY TOP BUYING PRICES The Kagin name appears more often than any other in the pedigrees of the rarest and scarcest notes (U.S. Paper Money Records by Gengerke) BUY ALL U.S. CURRENCY Good to Gem Unc. I know rarity (have handled over 95% of U.S. in Friedberg) and condition (pay over "ask" for some) and am prepared to "reach" for it. Premium Prices Paid For Nationals (Pay 2-3 times "book" prices for some) BUY EVERYTHING: Uncut Sheets, Errors, Stars, Special Numbers, etc. I can't sell what I don't have Pay Cash (no waiting) - No Deal Too Large A.M. ("Art") KAGIN 505 Fifth Avenue, Suite 910 Des Moines, Iowa 50309-2316 (515) 243-7363 Fax: (515) 288-8681 At 82 It's Still Time - Currency & Coin Dealer Over 50 Years I attend about 25 Currency-Coin Shows per year Visit Most States (Call, Fax or Write for Appointment) Collector Since 1928 Professional Since 1933 Founding Member PNG, President 1963-64 ANA Life Member 103, Governor 1983-87 ANA 50-Year Gold Medal Recipient 1988 PAPER MONEY • March/April 2002 • Whole No. 218 83 84 March/April 2002 • Whole No. 218 • PAPER MONEY Nebraska Banks Chartered or Went Out of Business Listed by year between 1864 and 1899 25 20 15 10 5 0 -5 -10 -15 -20 -25 h CO 01 0 e- Cs7 01 et OD h CO 0 0 e- 0,1 elt 0 CO h CO 0 0 C,) eCt 0 h CO 0 0 0 CD h h CO OD CO CO CO CC) CO CO CO CO CD CD 0) CO CP CO 0 Cr) 0 OP COCOCOCOCOCOODODC0C0000000COCOODCOCOCOCOODCOCOCOCOCOODCOCOCOODCOCO e- e- •-• •-• v- 0 Chartered • Out Of Business 8 Succeeded by a State Bank Chart 1 Nebraska Banks Chartered or Went Out of Business Listed by year between 1900 and 1935 30 25 20 15 10 5 0 -5 -10 -15 -20 -25 0 r- CNI ch .4' to CD h CO 0) 0 e- Cs/ C1 et 0 CD h OD 0 0 e- CJ ce) V 0 0 h OD 0) 0 e- cr a) 0 0 0 0 0 0 0 0 0 0e-e- e-e-e-e-e-e-e-e-CNICNCNINCNC,ICNC4NCVMVICIOICOM 0)0,00000)0/0000)0,00)000101000,0000)0)0100000000) 0 Chartered I Out Of Business Succeeded by a State Bank q Chartered Non-Issuing Banks Chart 2 1. Banks and Banking: Guaranty Fund: Assessments. Legislative act to provide for guaranty fund by assessments levied against state banks under the police power must be related to some public purpose and must not be arbitrary and unreasonable. 2. Banks and Banking: Depositor's Final Settlement Fund Act: Validity. Depositor's final settlement fund act lacked the public purpose necessary to support such legislation as an exercise of the police power. 3. Constitutional Law: Depositor's Final Settlement Fund Act. Such an act, which provides that solvent banks shall be assessed in the future, to pay the losses of depositors in banks which had failed prior to its enactment, is invalid for that it takes the property of one and gives it to anoth- er, depriving the one of his property without due process of law. 4. Constitutional Law: Depositor's Final Settlement Fund Act: Police Power. Public purpose sufficient to support an exercise of police power of the state is not imparted into a legislative act, merely because it supersedes and replaces a statutory enactment which did have such public purpose. PAPER MONEY • March/April 2002 • Whole No. 218 85 5. Statutes: Construction. Provision expressing legislative intent as to the separability of the various parts of a statute is an aid merely to judicial interpretation. 6. Statutes: Construction. The legislative intent is the cardinal rule in the construction of statutes." 7. Constitutional Law: Depositors Final Settlement Fund Act. Police regulation, although valid when made, may become, by reason of later events, arbitrary and confiscatory in operation. 8. Courts: Judgment as Bar. "A decision of the Supreme Court of the United States in a suit brought immediately upon the enactment of a bank guaranty law, holding such law to be constitutional, does not preclude a subsequent suit for the purpose of test- ing, in the light of later actual experience, the validity of assessments made there under, alleged to be unreasonable and confiscatory, and hence repugnant to the due process clause of the Fourteenth Amendment. " 9. Constitutional Law: Police Power. When conditions change so that what was once an insignificant taking of private property for an ulterior public advantage under depositors guaranty law becomes a taking of private property exclusively for private purpose confiscato- ry in its application, the law cannot be sustained as a constitutional exercise of the police power of the state. 10. Constitutional Law: Guaranty Fund Act: Validity. It is established in this case that conditions have so changed that the depositors guaranty fund act is deprived of its public purpose; that the assess- ments there under are now confiscatory; and that it now takes private property exclusively for a private purpose. In such a case, one is deprived of his proper- ty without due process of law, in violation of the Fourteenth Amendment to Federal Constitution and Section 3, Article I of the constitution of the state of Nebraska. In January, 1932, the Lancaster County District Court came to a deci- sion against the banks. An appeal was then made to the Nebraska Supreme Court. After many months, the Nebraska Supreme Court wanted a reargu- ment of the case, which was done. If the bankers won this case in the Nebraska Supreme Court the Attorney General would be prohibited from appealing to a higher court as the state could not appeal a decision of its own highest court. If the banks lost they could appeal to the U. S. Supreme Court. It was mid-November, 1932, that a Below left: A 1998 photo of the busi- ness street of Abie, NE. The 1990 pop- ulation of Abie was 106. Below: A 1998 photo of the Abie State Bank building, now used as a branch post office. Chart 3 c,"5 c,;5' c%°' g § § `?" cp 2 2 ...... co co co v_ co co • Voluntary Liquidation fA Receivership Nebraska National Banks INTO RECEIVERSHIP and VOLUNTARY LIQUIDATION Listed by year between 1864 and 1899 25 20 I .1•11 15 10 Nebraska National Banks INTO RECEIVERSHIP and VOLUNTARY LIQUIDATION Listed by year between 1900 and 1935 §§. Vgg'giM°0, -.c9 "`" P., 21 2 2 " 2 20) 0, 0) 0) 0) 0) CP 0) 0) 0) 0) 0) CD 0) 0, Voluntary Liquidation IE Receivership Chart 4 'A A 86 March/April 2002 • Whole No. 218 • PAPER MONEY decision in favor of the banks was announced. After 23 years the bankers final- ly won the long winding and expensive ordeal against the guaranty law and all remaining assessments. As Hughes said in his 1956 book, and Haller repeated in his 1990 book: "Thus finally ended a struggle with an idea hatched by enthusiasts entirely unversed in banking, who listened last of all to experienced bankers and ended by doing irreparable harm instead of the good they promised from the house- tops. That those responsible could walk away from the wreckage without penalty has always seemed a shame. " THE NOTES Now let's explore how the guaranty law impacted the survival of the National Bank Notes. Most importantly it forced National Banks to liquidate and to liquidate early (before 1920). Because of this the notes from the affect- ed banks are rare. For example, lets look at the time period 1909-1919 (see Table 3) which focuses on the National Banks that went into voluntary liqui- dation and converted to state banks, along with their reported surviving notes as of the writing of this article. It is of interest to observe that from this time period 23 national to state converted banks have no reported notes, and an additional 11 banks have only a single example. The federal regulations governing the circulation of National Banks going out of business were the same. As far as the circulation was concerned, it actually made no difference whether the bank went into liq- uidation to go out of business, went into liquidation so it could be succeeded by another bank, consolidated, or whether the bank was forced into receiver- ship, regulations dictated how redemption proceeded. Banks had to advertise in a local circulation newspaper that they were going out of business and were calling in their out- standing circulation. Here is how the redemption actually took place: (1) When the bank closed, the bonds used to secure the circulation of the bank were sold and the proceeds were deposited into the redemption fund. (2) Redemption then pro- ceeded as normal. In looking at redemption figures for the Nebraska National Banks that went out of business, half of the outstanding circulation was redeemed in the first year, 90% was redeemed PAPER MONEY • March/April 2002 • Whole No. 218 87 NEBRASKA BANKS IN BUSINESS AT END OF YEAR (1864-1899) 250 225 200 175 150 125 100 50 25 0 - --1- T ,__ -,- -. _i__ _ _ -- _ i - 1 - _. _- 00 190 1N 110 Inn 010 1 NO IVO VI MI 071 11191 11176 1100 i 077 110 110 IMO 011 OM 110 101 IOW 1101 110 1101 II= IMO 10 1104 I. INN 1100 I Iw 107 i 1100 1 MI No, inn+ I 0 z 7 3 1 7 0 n nt to 0 n la to io 12 :a a n n 113 104 107 127 177 10 In In as to in no no 1 zo Chart 5 NEBRASKA BANKS IN BUSINESS AT END OF YEAR (1900-1935) 250 225 200 175 150 125 100 75 50 25 0 - --- You we ler I Inaz mines i ma nos 1N Ion not 101X1 102 I I 1 100 loll IOU 00 017 11111[100 1020 101 nn lin 1p I 10 isze ma na no Ina an en I Ium twins* I N2, Ii• 1 In 117 07 I 10 154 1n 10 HI 214 01 00 201 20 ZO 210 05 102 110 10 100 104 179 m 04 IA 10 1% 10 10 147 14I 572 IN 117 107 01 Chart 6 after 10 years, and 99% after 20 years! At some point, the very last note was redeemed for many of these banks. Is it any wonder then that, as of this writ- ing, Nebraska still has 82 of 349 issuing banks for which no surviving notes have been reported? DISCUSSION The Nebraska Deposit Guaranty Law heavily encouraged the liquidation of National Banks in Nebraska (see Charts 5 and 6). When research on this article was started, the assumption was made that all the states that enacted deposit guarantee laws would be effected in much the same manner and to the same extent. Preliminary research on the other seven states has indicated that in one state (Washington) National Banks were not effected at all. The other six states were affected to varying degrees, but none to the same extent as Nebraska. There were slight differences in the other states laws, as most states learned from Nebraska's experience. More research is to be conducted on the other guaranty fund states before final conclusions can be reached. Articles are to be written later which will shed light on those states guaranty funds and NationialCuurrehey • acCnau UU IUD SINT CS 1101115 OCITHER SMOG MS • s.; —1C<.UNITED STATES DFAMERICA NIT1.1) sfla ittruips 11,111111111ILM SEC E1 Photo 5 TIPMERVIMOIMWS '7 //' 44AA Ntorliton:11('Ingreitcy BT UNITED STATES MMUS BBBTBERSELURITIES SITED STATES OFAM ERICA 88 March/April 2002 • Whole No. 218 • PAPER MONEY their affects on National Banks in those several states. These eight states, as it later turned out, were trial runs to the establish- ment of the Federal Deposit Insurance Corporation (FDIC). The Roosevelt administration's "Emergency Banking Act of March 9, 1933," authorized the creation of the FDIC. As we have seen, Nebraska's state guaranty law was not economically sustainable. The agricultural depression of 1921 and the eco- nomic depression building in the late 1920s and continuing into the '30s, plus the stock market dive in 1929, were factors in bringing about the final demise of the state guaranty laws. Another factor was that the state funds were not sufficiently broad-based. The FDIC, on the other hand, has continued for more than 65 years. The FDIC is much broader based in all 50 states. In the long run it can be, and was as recent events show, supported by a nationwide taxpayer base as well Photo 4 Photo 6 PAPER MONEY • March/April 2002 • Whole No. 218 89 TABLE 3 YEAR OF BANK CHARTER REPORTED LIQUIDATION NAME NUMBER SURVIVING NOTES 1909 Anoka NB 6464 Unreported 1911 Citizens NB of Saint Paul 3891 (2) 1912 NB of Pawnee City 6541 (1) Photo #1 1912 Shelton NB 9200 Unreported 1912 German NB Beatrice 4148 (1) Photo #2 1913 Tobias NB 7578 Unreported 1913 Nebraska NB Norfolk 7329 Unreported 1913 FNB Lodgepole 9741 Unreported 1913 FNB Henderson 8183 Unreported 1913 Atkinson NB 7881 Unreported 1914 Sutton NB 3653 (3) 1914 Superior NB 5397 (4) 1914 FNB Bloomfield 6503 Unreported 1914 FNB Elmwood 5787 (1) Photo #3 1914 FNB Nelson 3495 (4) 1914 FNB Lawrence 8851 (1) Photo #4 1914 FNB Oxford 7520 Unreported 1914 FNB Curtis 8812 (2) 1914 FNB Campbell 8975 Unreported 1914 City NB Holdrege 4345 (3) 1914 FNB Polk 8533 (2) 1914 FNB Spalding 7574 Unreported 1914 FNB Cedar Rapids 8282 Unreported 1914 FNB Diller 7355 Unreported 1914 FNB Wolbach 8413 (2) 1914 FNB Overton 7925 Unreported 1914 FNB North Bend 7449 Unreported 1914 FNB Sargent 7384 (2) 1915 FNB Hebron 2756 (2) 1915 Citizens NB Orleans 8567 Unreported 1915 Farmers NB Pawnee City 4078 (10) 1915 Citizens NB Gothenburg 8113 Unreported 1915 FNB Cozad 4165 (1) 1915 Gothenburg NB 6282 (3) 1915 Pender NB 5308 (2) 1915 FNB Oshkosh 10081 Unreported 1915 Tecumseh NB 4276 (2) 1915 City NB Weeping Water 5281 (4) 1915 FNB Clarks 6939 (2) 1915 Blair NB 8027 Unreported 1916 City NB Omaha 9466 (3) 1916 Neligh NB 5690 (5) 1916 FNB Callaway 9258 (1) Photo #5 1916 FNB Brunswick 10033 (1) Photo #6 1916 FNB Trenton 8218 (1) Photo #7 1916 Custer NB Broken Bow 5995 (7) 1916 Citizens NB Tecumseh 6166 (2) 1916 FNB Saint Edward 5346 (4) 1916 Schuyler NB 3152 (6) 1916 FNB Ansley 7393 Unreported 1916 Citizens NB McCook 9436 (1) Photo #8 1916 NB Wilber 6415 (1) Photo #9 1916 Dawson County NB Lexington 4161 (7) 1917 FNB Lynch 9785 Unreported 1917 German NB Johnson 8383 (1) 1917 FNB Bazile Mills 8469 (2) 1919 FNB Crete 2706 (9) 1919 FNB Allen 8372 Unreported 1919 FNB Lexington 3292 Unreported NLISIMSKA 60U7,10.. 1 ■01 A StCONDS-",tFM . hOetitU OTA Win- 90 March/April 2002 • Whole No. 218 • PAPER MONEY Below: A 1999 photo of Hubbell Bank. Below right: A 1999 photo of the business street of Hubbell, NE. Population of Hubbell in 1990 was 55. STATE BANK DEPOSIT GUARANTY FUNDS YEARS DURING WHICH VARIOUS STATE DEPOSITORY GUARANTY FUNDS OPERATED THIS CHART MUST BE USED IN CONJUNCTION WITH TABLE #2 CHART 7 as assessments to nearly all banks around the nation. Most importantly, banks with FDIC protection are very closely inspected and regulated, with rigid enforcement imposed. The various state guaranty funds never applied to National Banks because the Attorney General of the United States prohibited it in a July 1908 ruling. Does any of the information in this article concern any of the states and territories that were not part of this eight-state deposit guaranty experiment? Maybe, from the standpoint that major economic events are not the only events that created National Bank Note rarity. Only extensive research will bring to light some of these lesser-known regional events that caused National Banks to go out of business, and their circulation to be redeemed. I realize that it may be difficult to understand some of the concepts in this article, but I hope that with the aid of the many charts and graphs the reader will see the "Big Picture." Questions or comments about this article may be directed to the author (SASE please) at PO Box 9833 Colorado Springs, CO 80932. ACKNOWLEDGMENTS Sam Whitworth for his assistance in locating various original laws and lawsuits in Lincoln, NE libraries. Peter Huntoon for proofreading and advice. t' ''''-"?'"' 7' Natio nnalCurreuexL.) il • MIMEO IIYUNITC11 STAMM/NO LI it OMR SEM TIES • '-' ' -..' ' NITED STATES OF AM ER I CA j SEETHED HA" UNITED MATES 'BONDS OILITTllElt Set" .111 .1771 'ems: xvcric, • `'• t , .T■TISTT AlESIEEIME3* VOMPTeglitit Azaawat9> giwt) SEUI UCH DTTNITED STATES 110,411 -s OROTHER SECT WTI PAPER MONEY • March/April 2002 • Whole No. 218 91 Dave and Monica King for their computer skills on the text, graphics, and illus- trating. Leonard Samowitz, Chief of Reference Services, FDIC, for his gra- cious assistance with publications. All illustrations are from the Gerome and Ruth Walton Collection. SOURCES American Bankers Association. The Guaranty of Bank Deposits in Eight Western States (1933). Compiled Statutes of Nebraska, [The) (1922). Compiled Statutes of Nebraska, [The] (1929). Federal Deposit Insurance Corporation. The First Fifty Years, A History of the FDIC 1933-1983 (1984). Photo 7 Photo 8 Photo 9 92 March/April 2002 • Whole No. 218 • PAPER MONEY Haller, Ben Jr. A History of Banking in Nebraska 1854-1990 in Recognition of the 100th Anniversary of the Nebraska Bankers Association. Nebraska Bankers Association Inc. (1990). Hughes, William B. Forty Years with Nebraska Bankers. Past Presidents Club of Nebraska Bankers Association (1956). Huntoon, Peter. United States Large Size National Bonk Notes. Laramie, WY: Society of Paper Money Collectors (1995). Laws of Nebraska Special Session (1930). Laws Passed by the Legislature of the State of Nebraska at the Thirty-First Session, Jan 1-Apr 1, 1909. Nebraska Reports, Volume 119, 10/03/29 to 06/05/30. Nebraska Reports, Volume 124, Sept. Term 1932. U.S. Department of -Agriculture Year Books (Various Years). U.S. Reports, Volume 55, Lawyer Edition, Supreme Court Reporters Edition, pp. 114- 120. U.S. Reports, Volume 282, October Term 1930. Walton, Gerome. A History of Nebraska Banking and Paper Money. Lincoln, NE: Centennial Press (1978). Warburton, Clark. Deposit Insurance in Eight States During the Period 1908 - 1930. FDIC (1959). Hurry! Very Limited Space Remains Confederate Currency: May/June issue Ad deadline March 15, 2002 2nd International Issue: Sept/Oct issue Ad deadline July 15, 2002 Contact the Editor NOW! Collectibles INSURANCE Your homeowners insurance is rarely enough to cover your collectibles. We've provided economical, dependable collectibles insurance since 1966.,D Slari‘647".i. „oot Jn"" For The Paper Money Collector • Sample collector rates: $3,000 for $12, $10,000 for $32, $25,000 for $82, $40,000 for $132, $60,000 for $198, $1 per $1,000 above $60,000. • Our insurance carrier is AM Best's rated A+ (Superior). • We insure Paper Money, Stock Cer- tificates and scores of other collectibles in numerous categories. "One-stop" ser- vice for practically everything you collect. =110111 VISA' Zi • Replacement value. We use expert/ professional help valuing collectible losses. Consumer friendly service: Our office handles your loss—you won't deal with a big insurer who doesn't know col- lectibles. • Detailed inventory and/or professional appraisal not required. Collectors list items over 55.000, dealers no listing required. See our online application and rate quote forms on our website! Collectibles Insurance Agency P.O. Box 1200-PMC • Westminster MD 21158 E-Mail: info© More Info? Need A Rate Quote? Visit: Or Call Toll Free:1-888-837-9537 • Fax: (410) 876-9233 PAPER MONEY • March/April 2002 • Whole No. 218 93 The two-fold demise of the FNB af Trou, NY Not BY TOM MINERLEY 1 N 1881, THE FIRST NATIONAL BANK OF TROY, NY SAW AN opportunity to expand its banking opportunities in that city. FNB (#163) faced stiff competition from seven competing National Banks for deposi- tor loyalty. So, the institution literally "moved uptown," from First Street down by the Hudson River to the heart of the city, Fourth Street. Not a giant move by any means, but this was one relocation which suc- ceeding bank officials would come to regret that it had ever become reality. Two years later in 1883, the charter for the First National Bank was due to expire on February 23. Since no provisions had been enacted in the then existing National Banking laws for renewing charters, the choice was simple. On the appointed day the FNB simply ceased to be. It closed its doors, and reopened on February 24 as Troy's latest savings institution: the National Bank of Troy (#2873). Such was the untimely first demise of FNB. The institution continued as NB of Troy for the next decade. However, by the 1890s, the city had gone from being on the cutting edge of the country's industrial and technological revolution to a position of seeing its fortunes wane. The city's heavy industry, which included the second Bessemer steel con- verter in the county, had flowered, wilted and begun to die within the lifetime of many of its 60,000 inhabitants. In one generation Troy had gone from boom (producing the majority of horse and mule shoes which had propelled Union armies during the Rebellion of 1861-65 and the manufacture of armor plate for the federal ironclad USS Monitod to bust. By 1896 the last steel and iron works ceased operations. New industry, chiefly dependent on the recently expanded cuff and collar trade, could only pick up part of the slack in commerce and employment. Jobs were still plentiful, but changes in private and institutional fortunes would adversely affect the future of the NB of Troy. We leap ahead to Wednesday, September 9, 1896. From all indications, it was not portentous, but merely a comfortable late summer day. Nothing out of the ordinary worth mention- ing. Then suddenly fate stepped onto the streets of Troy in the guise of a former tea merchant: Mr. Thomas Ganley, then secretary of the municipal civil service exam- iners. Out on a promenade -- his purpose now long lost to history -- Mr. Ganley The building in the foreground once housed the National Bank of Troy. 94 March/April 2002 • Whole No. 218 • PAPER MONEY strolled in the vicinity of Fourth and Fulton Streets in the city's downtown. His stroll took him within a few steps of the National Bank's front door. Suddenly, Ganley collapsed on the street of a heart attack and died. Had this unfortunate incident happened elsewhere in the city, it would have remained a personal tragedy for the late gentleman's family and a loss to the community, but the location of his demise became pivotal to unfolding for- tunes of the National Bank of Troy. Mr. Ganley's calamitous demise proved to be the catalyst for disaster. Immediately upon his collapse, a crowd of inquisitive, interested, and disbeliev- ing citizens gathered around those attempting to render him aid. Many in the crowd had gathered for the noblest of sentiments. However, when the corn- motion was viewed from a distance, this throng appeared, for all intents and purposes, to be a growing, milling mob gathered in the vicinity of a bank. This would not have been the first run on this particular bank. People would have been remiss not to have thought back a few years. During the Panic of 1893, the failure of an insurance and brokerage firm in the city, Neher & Carpenter One of the few: Thomas Coleman, President; George H. Morrison, Cashier. had resulted in the rapid disbursal of the bank's liquid funds. Total disaster for the bank was forestalled only by the timely influx of $500,000 in bail-out loans by the city's other financial institutions. Remembering history -- and eyeballing what appeared to be another run in progress -- people quite naturally panicked. The crowd bolted. "The bank is in trouble! Get your money out while you can!" At first, from their safe, caged-in world within the confines of the National Bank building, its bankers were likely oblivious to what was going on practically at their doorstep. But suddenly, there was a swift increase in with- drawal activity. Apprehension came soon enough before that terrible day had ended. As the clay wound down, perception of a problem did not. For nine days, the bank was buffeted by increasing demands for additional withdrawals. Nothing its officers or directors could say, no financial statLinents showing sur- plus and undivided profits, could make the slightest impression to divert the minds of a city full of people gone mad. In desperation to raise much needed cash to keep meeting calls, the bank attempted to liquidate some of its perfectly sound financial paper to its sister banks, but could find no takers. This time, there would be no local safety net, no bailout. ;111 028 Iv, zkAr 1 , yi 111,1 5, PAPER MONEY • March/April 2002 • Whole No. 218 95 The competing financial institutions were also headed by businessmen who were jittery about their futures. One bank in particular, the Union National Bank (#963) had reason to be particularly nervous, since its place of business was less than half a block from the ill-fated National Bank location. The situation did not improve over time. Negotiations with a major New York City bank proved fruitless. President Daniel Klock became completely frustrated, since he could not come up with any means of gathering additional funds to support his beleaguered bank. Finally, on September 19, the bank really did fail to open its portals for the conduct of the day's banking business. The fears of the uniformed crown had actually borne fruit. "In my opinion," Klock said on the second untimely demise of his institu- tion, "the bank is now in better condition than at any time since 1893. The closing was for no other reason except on account of the withdrawal of deposits occasioned by the rumors that the bank had failed, which were circulated at the time a crowd was attracted near the bank by Thomas Ganley dropping dead. Since that time the depositors have been taking out their money and yesterday about forty thousand dollars was withdrawn." No amount of fiscal argument could forestall the seemingly inevitable. The bank never reopened. A forced liquidation saw the bank make good on all its obligations -- just like its officers had argued in vain they could do all along. The National Bank of Troy faded from memory, the victim of death by mistaken identity. Since every dime of the bank's cash reserve was paid out during the last frantic days of its existence, there probably are no great hoards of bank notes left to be handed down to posterity. All that remains of the bank's second pass- ing, known to collectors, are three Second Charter Period Brown Back $10s. That's not much to show for the lofty dreams and ambitions of its founders, is it? The One Million Euro notes are consecutively numbered and employ overt and covert security features. They are printed by the intaglio process on micro-threaded banknote paper. These notes are available in individual or bulk quantities with a certificate of authenticity. Some half and full size banknote sheets are available including banknote paper specifications. This first Euro Banknote Collectible may well revolutionize the Banknote Collectible Industry In January 2002 the Euro will become the official currency of the 15 member European union. The Naples Bank Note Company has commissioned artist Chris McCauley to create a non- negotiable collectible, the One Million Euro, commemorating this event. These notes will be issued in a limited edition of only 150,000. 800-628-6298 Lynese Octobre, Inc. P.O. Box 5002, Dept. 33 Clearwater, FL 33758-5002 Wholesale & Retail Inquiries Incited aZ 40 41:wi,e4 Wog0 a m Or visit our Website: The PRESIDENT'S Column By FRANK CLARK 96 THIS IS OUR SPECIAL ISSUE OF PAPER Moneyon National Bank Notes. I have really been looking for- ward to it, and I know I will devour it! National Bank Notes are one of if not the most popular areas of our wonderful hobby. Our authors for this issue are very knowledgeable and certainly can teach the experienced or the neophyte collector something. National Bank Notes are an area of the hobby in which one can collect any way he/she wants, only restricted by one's imagination. This is what makes Nationals so fascinating. It certainly is "home town" collecting, and brings numismatic history to life. Also, outside of a few banks, most banks have very few notes that are extant. This would be a good time to begin reporting small size National Bank Notes to our 1929 Nationals Project Coordinator, David Hollander, whose address is listed on the second page of this journal. Dave's current report is printed on page 63. Now please pull up a chair and enjoy this special issue that our Editor, Fred Reed, has compiled for us to enjoy. I know I will! Frank SPMC Annual Awards SPMC Annual Awards will be presented in June at the general membership meeting held at the Memphis International Paper Money Show. A complete listing of Society awards was published in the Jan/Feb 2001 issue of Paper IVIoney. Honorees are selected by the SPMC Awards Committee. These awards include: 1. Nathan Gold Memorial Award. Presented to a per- son who has made a concrete contribution toward the advancement of paper money collecting. Award of Merit. For persons who, during the previ- ous year, rendered significant contributions to the Society which bring credit to the organization. 3. Literal), Awards. 1st, 2nd and 3rd place cash prizes awarded to SPMC members for articles published in Paper Money during the previous calendar year. 4. The Dr. Glenn Jackson Memorial Award is open to any author in any numismatic publication for an out- standing article about bank note essais, proofs, speci- mens and the engravers who created them. The Julian Blanchard Memorial Exhibit Award hon- ors the outstanding exhibit of bank note essais, proofs and specimens at Memphis. 6. The SPMC Best of Show Award is given for an out- standing exhibit in Memphis on any paper money- related subject. March/April 2002 • Whole No. 218 • PAPER MONEY C. John Ferreri Steps Down from Board Recently C. John Ferreri announced that he was not seek- ing reelection to the SPMC Board (see page 110 for the elec- tion story). Mr. Ferreri (#2570) has a long term of service to the Society spanning a quarter century, including serving as our Treasurer (1975-79), our Nominating Chairman (1986- 88), our Publicity Chairman (1983-86), and our Awards Chairman (1993). He is stepping down now after 23 consecu- tive years on the SPMC Board. John's letter of resignation to current Nominating Chairman Jimmie Ranes and other officers of the Society reads in part: "For the first time in 25 or so years I will not persue the position of governor. I have served the Society since 1975 when George Wait asked me to step in as treasurer for the retiring M.O. Warns. I served in that capacity for four years, including the first two when I wasn't even a board member. Then followed a long line of three-year terms. "These years of service to the board have been exciting to me, and I hope of value to the Society. Perhaps this many years is even too many for one person to monopolize. But the experience of serving with so many wonderful people during this time will be something I shall never forget. "In any case, I feel that the current officers, board mem- bers, and appointees are the most professional collection of leaders the Society has had at any one time since I have known it. "I wish you all the best, (signed) John Ferreri" Comprehensive Paper Money Index By George Tremmel Now For Sale Includes complete listing to all issues of the SPMC journal Paper Money 1962-1999 • 130-page Hard Copy only $12 • • Hard Copy & Floppy Disk only $13 • (searchable) Make checks payable to SPMC Mail to: Robert Schreiner POB 2331 Chapel Hill, NC 27515-2331 Archival My'arr. Albums Protect Your Investment SafeKeeper Albums For your Safe Deposit Box Multi -Ring Albums For your Bookshelf Flexible Albums For your Display Case Custom Albums Also Available Sleeves & Pouches for All Your Paper Collectibles Complete Satisfaction Guaranteed Information is yours for the asking! OREGON PAPER MONEY EXCHANGE 6802 SW 33RD Pl. Portland, OR 97219 503-245-3659 Fax: 503-244-2977 Email: opme© WORLD PAPER MONEY specialized in Poland, Russia & E.Europe ATS notes Free Price List ats@atsnotes com Torn Sluszkiewicz P.O.Box 54521, Middlegate Postal BURNABY, B.C., CANADA, V5E 4J6 PAPER MONEY • March/April 2002 • Whole No. 218 97 STOCKS & BONDS MONTHLY MAIL BID SALES RR's, Mining, Banking, etc. etc. Something For Everyone FREE LISTING I RICHARD T. HOOBER, JR. P.O. Box 7917, North Port, FL 34287 Phone or Fax (941) 426-2620 MIMI MIMI IMMO 11== 11111•111 r I I I I L I I I I I WANTED COLONIAL/CONTINENTAL BANKNOTES Any Quantity, Any Condition. Ship in confidence to: Steve Pomex (Member ANA, SPMC, IBNS) PO Box 2, Ridgefield Park, NJ - 07660 Tel: 201-641-6641 / Fax: 201-641-1700 Email: Always Wanted Monmouth County, New Jersey Obsoletes — Nationals — Scrip Histories and Memorabilia Allenhurvt — Allentown —Asbury Park — Atlantic Highlands — Belmar Bradley Beach — Eatontown — Englishtown — Freehold — Howell Keansburg — Keyport — Long Branch — Manasquan — Matawan Middletown — Ocean Grove — Red Bank — Sea Bright — Spring Lake N.B. Buckman P.O. Box 608, Ocean Grove, NJ 07756 800-533-6163 Fax: 732-282-2525 MACERATED MONEY Wanted information on U.S. Chopped up Money. Who made the items, where sold, and anything of interest. Also I am a buyer of these items. Top Prices paid. Bertram M. Cohen, 169 Marlborough St, Boston, MA 02116-1830 (617) 247-4754 E-mail: Marblebert@aolcom ..101100. I Or-1kljk ""' T‘ Cg " _1 n atm ;- gg g 9J g 2 "" 111i;; gg is 4 98 March/April 2002 • Whole No. 218 • PAPER MONEY Varieties of Small-Size National Bank Notes of Republic National Bank and Trust Company Dallas Texas By Frank Clark 1 'VE BEEN ACTIVELY COLLECTING NATIONAL BANKNotes from North Texas for many years. Since I live just north ofDallas, I've observed quite a few Series 1929 notes issued by RepublicNational Bank and Trust Company of Dallas (Charter #12186). After a while, I noticed that there were several different layouts of the logo overprint, which contains the title and location of the bank. I've devel- oped my own scheme for identifying these varieties that I'd like to share with Paper Money readers. I'll also provide a brief history of the bank itself, but first I think it's important to briefly review the printing and numbering process used on 1929 Nationals. A Brief Review of Series 1929 NBN Series 1929 National Bank Notes are divided into two categories. Type I notes have the bank's charter number printed twice on the face of the note in black ink. Type II notes have this overprint plus the charter number of the bank printed twice more in brown ink, placed on both sides of the central por- trait. Type I notes were printed from 1929-33; Type II notes were printed from 1933 through the end of the note-issuing period in July, 1935. The reason for the charter overprint was to aid the government's redemption agency in identifying notes turned in for redemption. Remember that these notes were NOT an obligation of the U.S. Treasury; rather, they were PROMISSORY NOTES of the individual banks. A complicat- DA-19 ed process required the Treasury to keep a running total of each bank's circulation, since this circulation was backed by bonds the banks had purchased and deposited with the Treasury. The Treasury (for a fee) kept individual ledger accounts of the circulation of each bank. So, when National Bank Notes reached the Treasury's redemption agency in Washington, D.C., it was necessary for the clerks to identify and record (for each individual bank) the notes that came in and were destroyed. Many notes were damaged in various ways, resulting in difficul- ties determining the charter number of the issuing bank. It was not unusual for pieces of notes to be turned in for redemption. Depending upon the amount of the note that was left, the Treasury would compensate the owner with an appropriate sum. In the case of National Bank Notes, it was necessary for the clerks to identify WHICH bank had issued the note. It was deter- mined that two charter numbers on Series 1929 weren't always suffi- cient, so the number was printed two additional times on the notes, resulting in distinct type varieties for collectors to seek. Series 1929 notes were printed in sheets of 12 notes, and then cut vertically into sheets of six notes. The serial numbers were then printed on the notes. Remember that by this time the Treasury Number, which had appeared on large-size Nationals until 1925, was no longer printed on the notes. The numbers on Series 1929 small size Nationals are the BANK serial numbers. Republic Bank Building, Dallas, TX. The hank was one of the largest in the United States. Republic Bank Building, Dallas, Texas PUBL AUCTION SA LE AMERIICANA IC COLONIALANIDIFEDIFIRAL COINS.MFDALS AND CUREENC'Y feitinv4,1,i- TILT:1/±ias*QTElarsma I 1 TetgileiatC1-.,T''''' yANUArst. : PUBLIC COIN AUCTION 66 ,-:11 nniversary Sale •1 'Private .1Inscuin Collection 0/ I lulled States' lj•pe 'Paper .11oney 05 -70131ER 16,1'001 a,g,A 123 WEST 57Ih STREET, NEW YORK, N.Y. Larry Stack Harvey Stack Tom Panichella PAPER MONEY • March/April 2002 • Whole No. 218 99 America's OLDEST COIN Auction House Is Also America's OLDEST CURRECY Auction House When you think of selling, you must think of Consignments are now being accepted for our upcoming 2002 Auction Schedule Contact Harvey or Lawrence Stack for consignment information. 2001 AMERICANA SALE Prices Realized nearly $4.5 Million, including $850,000 in banknotes. 66th ANNIVERSARY SALE Private Museum Collection of U.S. Type Notes Prices Realized $300,000+. PUBLIC AUCTION SALE AMERICANA COLONIAL AND FEDERAL COINS, MEDALS AND CURRENCY .feanaiag Selections from the Hain Family Collection Part II O January 15, 16, 17, 20(12 r6; //9 57. 3TREFT,NF.WI , 0..19-2280 2002 AMERICANA SALE Featuring Nearly 700 Lots of Colonial, Obsolete and Federal Currency. STACK'S NUMISMATISTS Auctions — Appraisals — Retail SINCE 1935 123 West 57th Street New York, NY 10019 ® Telephone (212) 582-2580 FAX: (212) 245-5018 e-mail: Visit our Web site at REPUBLIC NATIONAL BANK AND TRUST COMPANY OF DALLAS CO TEXAS WILL PAY TO THE DIAPER ON DEMAND TNE DOLLARS B001211A 12 1 8 N FISOE THE UN TR OF STAINS SUE 001211A 100 March/April 2002 • Whole No. 218 • PAPER MONEY Each note on a sheet of Type I notes bears the same serial number. However, each note on the sheet has a different prefix letter, with the top note on the sheet receiving the letter "A," the second "B," and so on to the bottom note on a sheet, which has the prefix letter "F." The first note for a bank in any denomination would be A000001A, with the suffix letter always remaining an "A." The astute reader may have noticed that this numbering system placed a limit on the serial number that could appear on a sheet of notes: 999999! The Treasury would be forced to create a "special" serial number scheme if any bank issued more than 999,999 sheets of notes of a particular denomination. That happened! The sole exception to this numbering system is found on certain S5 notes issued by the Chase National Bank in New York City. This bank issued more than 999,999 sheets of $5 Type I notes. Beginning with the one-millionth sheet, their notes were numbered A000001B through F000001B. However, this numbering scheme was different from that used for all other small-size U.S. currency, where the notes were numbered consecutively. To bring National Bank Notes into line with the other classes of small size cur- rency, the system used on Type I notes was dropped and another substituted in its place. This is the second distinction between Type I and Type II Series 1929 National Bank Notes. Type II notes were printed and cut in the same manner as Type I notes, but each individual note was numbered consecutively with the prefix remaining the same. So the first sheet of notes of a particular denomination would be numbered A000001, A000002 and so on. Notice that the suffix letter used on Type I notes was dropped. Again there was one exception to the A prefix appearing on Type II notes. The Bank of America National Trust and Savings Association in San Francisco (Charter #13044) issued more than 999,999 sheets of $5 Type II notes. Therefore the Treasury substituted a B prefix on the one-millionth sheet of Type II $5 notes issued by that bank. As one might expect, the "B" notes of the Chase National Bank and the Bank of America are highly prized by collectors! Series 1929 NBN issues by Republic NB and Trust Company, Dallas, TX I've observed five different varieties in the $10 notes issued by this bank. They consist of combinations of two and three line bank title layouts with nar- row and wide fonts, and two different sets of officers. There are also large and small size engraved signatures within these varieties. The varieties of $10 notes on this bank that I have identified follow. (1) Type I two line bank title format -- Large Eldridge/Florence signatures Your Hometown Currency Headquarters $$ Top prices paid for ALL National Bank Notes $$ We have thousands of Nationals for sale Visit us at our website or e-mail us at Call 1-800-327-5010 for a Free Catalog or write PAPER MONEY • March/April 2002 • Whole No. 218 101 EARLY AMERICAN NUMISMATICS P.O. Box 2442 • La Jolla, CA 92038 • (858) 459-4159 • Fax (858) 459-4373 • UNITED STATES COINS AND CURRENCY • INDIAN PEACE MEDALS • COLONIAL CURRENCY • OBSOLETE CURRENCY • ENCASED POSTAGE STAMPS • FRACTIONAL CURRENCY • REVOLUTIONARY WAR • CIVIL WAR & GREAT AMERICANA Subscribe to Receive our Beautiful, Fully Illustrated Catalogs Only $72 for a Full Year's Subscription of Six Bimonthly Issues Visit Our Website: William Youngerman, Inc. Rare Coins & Currency "Since 1967" P.O. Box 177, Boca Raton, FL 33429-0177 Member: PNG, PCDA, ANA, SPMC and others r L REPUBLIC NATIONAL BANK AND TRUST COMPANY OF DALLAS TEXAS WILL PAY TO THE DEARER ON DEMAND TEN DOLIARS REPUBLIC NATIONAL BANK AND TRUST COMPANY OF 00 DALLAS E053809A TEXAS WILL PAT TO THE BEARER ON DEMAND TEN DOLLARS E053809A TINDOLLARS REPUBLIC NATIONAL BANK AND IWO COMPANY OP CO D'ArLAS' TEXAS WILL PAT TO THE BEARER ON DEMAND TEN 130121.AlliP4 AA00 ^ 627 ® 9 t: 12186 -o BONO 11)0 12186 A006279 12186 A09586-6REPUBLIS NATIONAL DANK AND TRUST COMPANY OF DALICAS jTE.X AS WILL MAY TO THE BEPRER ON DEMAND TEN.IROJLANIS. REOE EM OF THE UNBTAT,ES ;SUB 6 A095866 12186 102 March/April 2002 • Whole No. 218 • PAPER MONEY (2) Type I three line bank tide format -- Small Eldridge/Florence signatures Five $10 National Bank Notes issued by the Republic National Bank and Trust Company of Dallas, TX illustrate the two- and three-line title layout, the signature combinations, and the differ- ent sizes of the engraved signatures. Notice that the spacing of the letters in the bank's title is wider on the last variety. (3) Type I three line bank title format -- Nicholson/Florence signatures (4) Type II three-line bank title format -- Nicholson/Florence signatures (5) Type II three-line bank title format (different font) -- Nicholson/Florence signatures BAN K ,rr TEXAS a • • • PAPER MONEY • March/April 2002 • Whole No. 218 103 When in Jefferson, visit the TEXAS HISTORY The Texas History Museum in Jefferson is dedicated to the preservation and interpretation of Texas' rich heritage. It is located in the 1 865 Haywood House at the corner of Dallas and Market streets. In the museum you'll walk through a timeline of discovery and experience for yourself the accumulation of knowledge of New World Texas beginning only twenty- one years after Columbus' voyage of discovery. You'll see the same maps showing the New World that 16th century Europeans marveled at when the explorers returned back across the "Ocean Sea". You too can be amazed at the stories, the exciting tales of a New World filled with strange exotic plants, animals, and people, and an empire for the taking. Through the eyes of explorers, mapmakers and settlers you too can witness the unfolding of knowledge about the unspoiled, raw and immensely rich land that would become Texas. The extremely rare Waldseemueller "Terre Nova" map of 1513 is the crown jewel of a collection of over 400 maps and atlases. This map is believed to be the first map showing the land that would become Texas. Cartographers of the 1500s, 1600s and 1700s knew they were engaged in expanding Europeans' knowledge and understanding of the New World. Many of the historically significant maps in the collection are works of art in their own right, complete with representations of popular motifs, artistic devices and myths of the day. Some are more fanciful, artistic and even Americae She Novi Orbis Nova Descriptio Abraham Ortelius, Antwop. 1570 more "creative" than they are accurate. But all contribute to the the story of Texas exploration, settlement and development. If maps defined the land area that became Texas, money, bank- notes, bills of exchange and stock certificates tell the story of Texas' economic political development. Most people don't know that some early Texas currency was paper money printed in denominations of 25, 37 1/2, and 50 cents. The museum even has a 6 1/4 cent note printed and issued to pay Mexican troops stationed at the frontier post of Nacogdoches in the 1820s. During the days of the Republic of Texas, President Sam Houston actually signed Texas exchequer (treasury) notes by hand. And, until the Bank of Reform Act of 1933 under President Franklin Roosevelt's New Deal, national banks all over the U.S. were allowed to print their own banknotes. The Texas History Museum houses the most complete collection of Texas cun•ency, banknotes and land scrip in the United States. Most Texas cities and counties are represented in the exhibit. If historical research is your interest, visit the Texana research library housed in the museum. It features hundreds of first edition books printed about Texas and Texans including the last book David Crockett published before he made his trip to the Alamo in San Antonio. There is also an early translation of Alvar Nunez de Cabeza de Vaca's narrative of his harrowing epic journey across Texas in the Southwest between 1528 and 1536 after being shipwrecked on the Texas coast. There are Map of Texas containing the latest Grants & Discoveries E.F. Lee, Cincinnati, 1836 Mappa Geographica Regionem Mexicanem of Floride, Tobias Conradus Lotter, Augsburg 1740 many other titles including works by Texas literary giants J. Frank Dobie, Walter Prescott Webb and author/artist Tom Lea. The Texas History Museum, a publicly funded 501(c)(3) non-profit organization, was created by B.B. Barr Foundation of Dallas. Its purpose is to preserve and exhibit Texas' rich cultural and historical past. To become a supporting member of the museum, send your tax- deductible (to the extent allowed by law) dona- tion to: The Texas History Museum P.O. Box 687 Jefferson, Tx 75657 For more information about the museum, its activities and special exhibits schedule, call 903-665-1101 or visit The museum's E-mail address is: Hours: Open Daily 9:30-5:30 Group Tours Welcome Hospitality Room & Meeting Space Available STATEMENT OF CONDITION REPUBLIC NATIONAL BANK & TRUST CO. DALLAS, TEXAS March 4th, t935 RESOURCES Loans and Discounts $19,238,241.24 Bills of Exchange and Bankers Acceptances 2,057,218.75 Acceptances—Customers' Account 850,000.00 Banking House ... 1,975,000.00 Other Real Estate 599,868.03 Furniture and Fixtures I98,000.00 Other Assets 31;317.72 Stock in Federal Reserve Bank . 210,000.00 U. S. Bonds to Secure Circulation . 3,500,000.00 U. S. Government Securities . . 19,678,035.78 State, Municipal and Other Securities 4,043,809.45 Cash in Vault and with Banks . . 21,949,400.74 Total . • $74,330,891.71 LIABILITIES Capital—Common • . $ 4,000,000.00 Capital—Preferred • 2,000,000 00 6.000,000.00 Surplus 1,000,000.00 Undivided Profits 199,295.00 Reserved for Taxes, Contingencies, etc. 465,896.26 Acceptances—Customers' Account 850,000.00 Circulation . 3,500,000.00 DEPOSITS— Individual . . $36,801,342.70 Banks . 17,266,562.75 U. S. Government . 8,247,795.00— 62,315,700.45 Total $74 330,891.71 104 March/April 2002 • Whole No. 218 • PAPER MONEY These varieties are probably similar for the $5 and $20 denominations, even though I have not personally observed all of them. This bank issued large numbers of $5, $10 and $20 notes. Very few $50 and $100 notes were issued by Republic NB&T, and they are all Type II notes. All $50 and $100 notes on this bank that have been observed are of the last variety with the wider font. A Brief History of Republic NB&T of Dallas, Texas The predecessor bank which became Republic National Bank and Trust Company was known as Guaranty Bank and Trust Company. Guaranty opened for business on Main Street in downtown Dallas on February 14, 1920, in quarters formerly occupied by the First State Bank. There were more than 20 small banks operating in downtown Dallas at that time, but Guaranty Bank and Trust Company's business plan was to pro- vide convenient hours for its customers. It was open from 9 a.m. to 8 p.m. dur- ing the week, and from 9 a.m. to 10 p.m. on Saturday! For a while, it was referred to as "The Day and Night Bank." Guaranty was quite successful from the start. Even though its capitaliza- tion was only $100,000 by the end of the FIRST business day the hank boasted 659 accounts and deposits (not including those of the officers and directors) or more than $800,000! The bank's officers and directors were confi- dent that their institution could grow beyond serving a limited market in Dallas, and were considering a conversion to a National Bank. A Texas state law helped them make their deci- sion as early as 1922. Texas' State Bank Guaranty Fund Law required all of the state-chartered banks to contribute to a fund, which would be used to cover losses incurred, by other banks in the state sys- tem. Since the fee paid by each bank was based upon its deposits, the Guaranty Bank and Trust fee would have been quite large because their deposits had grown during the intervening two years to between $10-$12 million. So the decision was made to seek a charter as a National Bank. The institution was chartered in April 1922 as the Republic National Bank of Dallas with a capital of $1 million. The Comptroller of the Currency assigned Charter #12186 to the bank. When trust powers were granted to National Banks, the bank changed its name to the Republic National Bank and Trust Company of Dallas. This change took place on July 18, 1928. Several months later, Republic assumed North Texas National Bank of Dallas by consolidation on December 28, 1928. Rupert Eldridge was cashier of the bank from 1922 to 1930, when he was promoted to vice president. R.F. Nicholson replaced Eldridge and served as cashier through the end of the note-issuing period in 1935. Fred F. Florence was president of the bank when the Series 1929 notes were issued. His signature appears on all of the bank's small size Nationals. He was born in Lithuania. His family moved to Texas when he was very young. Florence's first job was as a clerk (and every other odd-job in the bank) at the First National Bank of Rusk in east Texas. SOCIETY OF PAPER MONEY COLLECTORS AMERICAN NUMISMATIC ASSOCIATION Paper Money 2001 FIRST PLACE OUTSTANDING SPECIALTY NUMISMATIC PUBLICATION •2001• PUBLICATION AWARD NLG AWARD alb se% CLUB PUBLICATIONS BEST ISSUE PAPER MONEY, January-February 2001 FRED L. REED III, EDITOR ATLANTA, AUGUST 2001 PAPER MONEY • March/April 2002• Whole No. 218 105 He later served as cashier of the First State Bank of Rateliff. He then took a position as vice president of the Alto State Bank in Alto, later becoming president of that bank. W.O. Connor, the first president of the Guaranty State Bank and Trust Company, recruited Florence to move to Dallas and become vice president of that bank. Florence built the Republic National Bank and Trust Company into one of the largest banks in the United States. He also served as president of the Texas Bankers Association in 1936, and in 1955 as president of the American Bankers Association. REFERENCES Gatton, T. Harry. The Texas Bankers Association: The First Century, 1885 - 1985. Austin: Texas Bankers Association (1984). Hickman, John and Oakes, Dean. Standard Catalog of National Bank Notes. Iola, WI: Krause Publications (1990). Wineburgh, H.H. The Texas Banker: The Life and Times of Fred Farrel Florence. Dallas, TX: privately printed (1981). ANA, NLG Honor SPMC & Paper Money 0O NE OF THE REAL DELIGHTS OF EDITINGthis publication is working with the dedicated and talented membership to present their stories in educa- tional and entertaining ways in every issue. Each day I go to the mail box in anticipation to see what the post will bring. Often I am not disappointed as a wonderfully researched and crafted article falls out of an envelope onto my desk. It is exciting for a publication Editor to see his col- league's work recognized by outside critics. This year your articles have been adjudged the VERY BEST this hobby has to offer. Because of your work, Paper Money has won BOTH the American Numismatic Association and the Numismatic Literary Guild awards as THE out- standing club publication. Although Paper Money has won both awards several times in the past (see Paper Money, J/F 2001 for details), this is the first time our publication has won both laurels in a single year. This is a tribute to SPMC's member- ship, and their talents in sharing their hobby with one another through the pages of our Society magazine. The ANA award judges all issues of a club's periodi- cal produced in the previous year. Our issues for 2000 were outstanding, and a real tip of the cap goes to the dozens of authors who contributed the articles in those award-winning issues. The NLG plaque recognizes a single outstanding issue, in this case our 40th anniversary issue last year. Again, hats off to the members who filled that issue to the solid gold brim. I can understand the excitement of contest judges viewing our journal. So stay tuned; we've exciting plans for upcoming issues, too! -- Fred Reed, Editor 106 March/April 2002 • Whole No. 218 • PAPER MONEY I Found My Thrill on a Two Barre* Bill By Kim Fisher IGHTNING STRIKES MAYBE ONCE, MAYBE TWICE" sings Stevie Nicks in an old Fleetwood Mac song. She's referring to love, but it holds true in our hobby also. Several years ago lightning struck when I came across a Lazy Deuce from the Quinsigamond National Bank of Worcester, Mass., which I shamelessly paraded across these pages (cf. "My Lazy Deuce Coup," Paper Money, Nov/Dec 1999, pg. 168). Then out of the blue, I got zapped again when I acquired another Worcester County Lazy Deuce -- this time from the First National Bank of Barre, Mass. I don't know what the odds are against a guy from the Midwest finding two unknown Lazy Deuces from the same county in Massachusetts, but my guess is I'd have a better chance of getting a date with Stevie. It is a G/VG note on Charter #96, which according to the Kelly reference has just three notes known on this "large-size only" bank under that charter number. It is also the only two digit charter number deuce from Massachusetts in the census. When I showed it to Don Kelly at the Chicago Paper Money Expo he was immediately struck by the low federal serial number (11403). A call to the Barre City Hall got me in contact with Al Clark, the resident historian, who sent me a wonderful letter and a history of the bank and town in exchange for a copy of the note and my boundless gratitude. I humbly turn this article over to Mr. Clark who is far more qualified than myself to tell us about his home town: FNB of Barre, Massachusetts "ln response to the recently enacted National Bank system, interested parties in Barre, Massachusetts, met in the vestry of the Orthodox Church on April 1, 1863. It was well attended, and the group moved forward with plans to establish a bank. The committee to proceed was comprised of Charles Brimblecom, a local lawyer and state legislator who was a leader in many com- munity endeavors, Edwin Woods of Harding P. Woods & Sons, a thriving general store on the west side of the Common, and John W. Rice, owner of a prosperous boot and shoe manufactory. "By May fifteenth all the capital stock had been subscribed. On July 3, 1863 Edward Denny, owner of a woolen mill in Dennyville (now called South Barre) was elected first president of the new national bank of Barre (His signa- ture appears on the note--KF). Edwin Woods was named treasurer (cashier) and served in that capacity until his death in January 1879. To serve this office he sold his partnership in the family 'gold mine,' the store, to his brother-in- law, Oramel Clark. (Edwin Woods' signature also appears on the note--KF.) "On February 9, 1864, at the first annual meeting the following were elected directors: Edward Denny, Harding P. Woods, the 'old man' himself; George Buttrick, palm leaf manufacturer; Elam Shattuck, real estate, speculator in cotton; Charles Brimblecom, lawyer; Hiram Wadsworth, general merchan- dise; Appleton Clark, Hubbardston resident; Adolphus Bartholomew, feed and grain mill in Hardwick; Nathaniel Johnson, palm leaf manufacturer from Dana. * Rhymes with "Mary." My apologies to Fats Domino. (left- to right) Josh Caswell, Jim Reardon, Butch Caswell and Ken Westover Littleton 's experienced team of buyers. IITIYES!•collection or holdings. Fill out this coupon and Fax Toll Free to (877) 850-3540, or Mail to: Littleton Coin Company Name Address City/State/Zip I'm interested in selling paper money to Littleton. Please contact me regarding my PAPER MONEY • March/April 2002 • Whole No. 218 107 Last Year Alone... Littleton Spent More Than $14 Million on U.S. Coins & Paper Money! We can afford to pay highly competitive buy prices because we retail all the notes we buy. David Sundman, President AAA Life Member #4463; PNG #510; Society of Paper Money Collectors LM# 163; Member, Professional Currency Dealers Association Over 150,000+ Littleton Customers Want Your Notes! Wide Range of U.S. Notes Wanted! • Single notes to entire collections • Early large-size notes to high denomination small-size notes • All types including Legal Tender Notes, Silver & Gold Certificates and more • Very Good to Gem Why You Should Consider Selling to Littleton • We buy for our retail customers — so we can pay more • Fair appraisals and offers • Fast confirmation and settlement • We pay finder's fees and make joint arrangements • Over 56 years experience buying and selling coins and paper money Contact us: Buyer Phone: (603) 444-1020 Toll Free: (800) 581-2646 Fax: (603) 444-3501 or Toll-Free Fax: (877) 850-3540 Facts D97 CoinNet NHO7 Dun & Bradstreet #01-892-9653 Dept. BYA307 Daytime Phone 1309 Mt. Eustis Road Littleton, N.H. 03561-3735 Best time to call -1 ///.?%/,. ,2 . ./////////, 26 e •t Ei • 108 March/April 2002 • Whole No. 218 • PAPER MONEY It may only be G/VG but as the man says: "Where will you find another." "Under conservative management, the bank suffered few losses and an early rate of 4% compared well with other institutions. "The Woods family during this time was undoubtedly the most influen- tial in the community. One other son of Harding P. Woods was Samuel F. Woods, Colonel of the 34th Massachusetts Regiment of Infantry, who was wounded in the Civil War. When the returning veterans eventually got around to forming a G.A.R. group they named it the Samuel F. Woods Post. Edward Denny's business failed and George Buttrick succeeded him as President of the bank with Hiram Wadsworth following until his death. "On the northeast side of the Common, in 1862 a large commercial block converted from the second meetinghouse in town burned down. When a new structure, the Smith Block, took its place the Barre National Bank found its first home and remained there for many years. When the Barre Savings Bank built a new 'home' opposite South Park on the west side, eventually the two banks shared the building with two doors at one entrance. "In September 1929 the National Bank merged with the Worcester County National Bank. In 1956 it moved into a new rental on the north side of the current Historical Society. Some years ago it too was absorbed by Shawmut and then moved to Holden. A few years later it became part of Fleet and now is a Sovereign Bank." Barre, Massachusetts The history of the town is interesting, but would probably be out of place in a magazine devoted to paper money, so I'll just mention two short items. The town was named after the same gentleman whose name graces Wilkes- Barre, Pennsylvania (there was a plan to call the town Wilkes, but rumors that Mr. Wilkes was a philanderer swung the decision to Barre). - ' A --=AgmatitiAl VIP - #2 Ila)1-22IIP 713 trate a " . oyak(V,q, WAN, VttlY1' Coll IA maw&ifio „2,, ,voltawowe • C1-..:*-j1:4:s. . 11133' ritt: • OU4t0=0:1411A=0 11Tm BANK1111 Happenings Submitted by BOB COCHRAN PAPER MONEY • March/April 2002 • Whole No. 218 109 A prominent court case also involved the town. "Shortly after the consti- tution for the Commonwealth of Massachusetts was written and approved, a young slave named Qualk Walker challenged his master in the courts and after a few suits and counter suits over a couple of years, a decision by the State Supreme Court declared that the phrase 'all men are free' applied to black men as well as white men. This was the first manumission of slaves by a court deci- sion in the nation in 1783. Thus, Qualk Walker figures large in our history," according to a local reference. So ends the tale of the First National Bank of Barre and the startling $2 bill that has survived 138 years and will, if I have anything to say about it, go on surviving a long, long time. BIBLIOGRAPHY: Clark, Al. "The First National Bank of Barre," private communication. Dean, Charles, Hickman, John and Don C. Kelly. The John Hickman Project-- The Big Book of Lazy Twos (March 2001). Kelly, Don C. National Bank Notes: A Guide With Prices. 3rd ed. (1997). Series 1882 $5 on the Mechanics National Bank of New Bedford, Mass., signed by William W. Crapo, President, and James W. Hervey, Cashier. William Wallace Crapo President, Mechanics National Bank, New Bedford, Mass. LG W LLIAM WALLACE CRAPO WAS BORN INDartmouth, Mass., May 16, 1830; when he was very young he moved with his family to New Bedford. Crapo's father Henry moved to Flint, Michigan, to oversee his investments in timber. He became very successful, even- tually serving two terms as Governor of Michigan. "William W. Crapo graduated from Yale College in 1852, and was admitted to the Massachusetts bar in February, 1855. He supported John C. Fremont during the presidential campaign of 1856, and remained active in politics. Crapo was appointed to fill a vacancy in the forty-fourth session of the U.S. House of Representatives, and he served there three succes- sive terms. He was an unsuc- cessful candidate for Governor of Massachusetts in 1889. "He was a director of the New Bedford and Taunton Railroad, the Eel River Railroad in Indiana, and many knitting mills. He inherited his father's business interests in Michigan, and served as president of the Flint and Pere Marquette Railroad." Mechanics National Bank of New Bedford (Charter 743) was organized on January 23, 1865. It was placed into liquidation on February 24, 1919. This bank issued Original and 1875 Series First Charter notes, Second Charter Brown Back notes, and Third Charter Red Seal, Date Back and Plain Back notes. RESOURCE Davis, W.T. (ed.). The New England States. Boston: D.H. Hurd & Co. (ca. 1900). 60 14A (Id 02 a /6"-- Bob Cochran Gene Hessler 110 March/April 2002 • Whole No. 218 • PAPER MONEY Meet the Candidates for SPMC Board of Governors 1'OUR SPMC GOVERNORS' TERMS EXPIRE IN2002: Frank Clark, C. John Ferreri, Gene Hessler, and Arri Jacob. All except Mr. Ferreri (see related story on page 96) have chosen to run for re-election. Past President and for- mer Board Member Bob Cochran has also filed for election. Since only four candidates have qualified for the four vacant seats no general election will be held. The Vice President will have the Secretary cast a single vote in favor of each of the qualified candidates at the SPMC Board Meeting at Memphis in June to fill the vacancies. To be elected are Frank Clark, Bob Cochran, Gene Hessler and Arri "AJ" Jacob. These board members and those currently serving head com- mittees, vote funds, and chart the course of your Society. They also elect Society officers. The candidates have submitted biographies as follows: Bob Cochran joined SPMC in 1979. He was elected Secretary of the Society in 1986, a position he held until 1997. Bob then served one term as President, 1997-1999. Another SPMC "position" he's held since 1986 is "caretaker" of the extra issues of Paper Money published every other month. This "position" also entails mailing out the back issues of Paper Money to new members. "So all of you who have joined SPMC since the fall of 1986 probably received a package of Paper Money issues from me," Bob notes. "Lotsa trips to the post office, but I enjoy it," he added. Beginning in the early 1980s as a YN, Arri "AJ" Jacob (no photograph available) fell in love with paper money. In 1985 a lady who lived across the street gave him a 1953A $5 Silver Certificate as a birthday present. In 1987 he started to attend Covina Coin Club in Covina, CA where he met and became good friends with Charles Colver. Colver would give Jacob rides to the Long Beach Expo, where he worked on this small size collection for many years. In 1990 at the Krakover sale, Jacob wanted just one National from his hometown of Long Beach, CA. Colver bid for him and got a note, which satisfied Jacob until the National Bank Note Bug bit him! Jacob now has the finest Long Beach, CA National collection ever assem- bled. He also collects bank letterheads, post cards, photos and signs from National Banks. Jacob joined the Board when appointed by SPMC's past President Bob Cochran. "At the age of 30, I am one of the youngest members of the Board of Governors ever," Jacob claimed. He is also the only current board member in the western section of the United States, he pointed out. Frank Clark has been a member of SPMC since 1980, and Society President since 1999. He has also served on the Board and as Vice President. A frequent contributor to Paper Money, Frank has written several articles for the syn- graphic press as well as for other numismatic periodicals. In his position as SPMC .'"*Stmo Membership Director since 1995, Frank has been responsi- ble for recruiting numerous new members to the Society. Clark has attended every International Paper Money Show since 1984, he notes. Clark specializes in Texas Nationals and small size U.S. notes. He has won several awards from the Texas Numismatic Association, the Paper Money Collectors of Michigan, and the "Jasper Payne Paper Money Award" presented by the Tennessee State Numismatic Society." All in all, I believe one gets out of this hobby what one puts into it," he said. "This makes collecting paper money the best of all hobbies. I enjoy sharing my hobby with others, either by exhibiting or by the written or spoken word. I also enjoy serving the SPMC in a variety of ways. I look forward to serving another term." Gene Hessler, Editor of Paper Money for 14 years and Honorary Life Member of the SPMC, is the author of four books, and is completing work on a major biographical listing of world security engravers and designers; anticipated publica- tion date is 2003. In addition to his many articles for Paper Money, he also contributes columns to Coin World and The Numismatist. Gene served as curator for The Chase Manhattan Bank Money Museum and the St. Louis Mercantile Bank Money Museum. He has acted as con- sultant to publications and museums in the U.S. and Europe. Gene's collecting interests lean toward the histo- ry and creators of the art on security items. Gene never passes up an opportunity to let people know about the wonderful world of collecting paper money. He visits a school in Cincinnati on a regular schedule where he introduces children to the history of paper money and the joys of collecting it. As a governor Gene would like to continue to be an advocate for the collector, and do what is best for all members of the SPMC. Frank Clark PAPER MONEY • March/April 2002 • Whole No. 218 BUYING AND SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Certificates, Treasury Notes, Federal Reserve Notes, Fractional, Continental, Colonial, Obsoletes, Depression Scrip, Checks, Stocks, etc. Foreign Notes from over 250 Countries Paper Money Books and Supplies Send us your Want List . . . or .. . Ship your material for a fair offer LOWELL C. HORWEDEL P.O. BOX 2395 WEST LAFAYETTE, IN 47996 SPMC #2907 (765) 583-2748 ANA LM #1503 Fax: (765) 583-4584 e-mail: website: r PAPER MONEY will accept classified advertising on a basis of 15e per word (minimum charge of $3.75). Ad must be non-commercial in nature. Word count: Name and address count as five words. All other words and abbreviations, figure combinations and initials count as separate words. No check copies. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are denoted by (A) and are run on a space available basis. COPIES WANTED of following ANA Literary Award Papers: 1970 (1st) "Silver Certificates -- A Minor Variety, the Change-Over Pair" by Roland Carrothers,; 1972 (3rd) "Series 1923 One Dollar Bills" by Frank Nowak. James Trent, P.O. Box 136, California, MD 20619. (218) HUNTSVILLE, ALABAMA PAPER WANTED: Nationals, obso- letes, merchant scrip, checks, postcards, etc. Bob Cochran, Box 1085, Florissant, s10 63031. Life Member SPMC. (218) PAPER MONEY BACK ISSUES WANTED: #124 (July/Aug 1986) through #150 (Nov/Dec 1990). Bob Cochran, Box 1085, Florissant, MO 63031. Life Member SPMC. (218) BANK/BANKING HISTORIES WANTED: I collect, sell and trade bank histories. Whatcha got? Whatcha need? Bob Cochran, Box 1085, Florissant, MO 63031. Life Member SPMC. (218) RUSSIAN AND WORLD BANK NOTES, Paper Collectibles and Coins. Michael Haritonov, P.O. Box 1436, 40020 Sumy, Ukraine. SPMC member. (218) WHITEHALL, NY WANTED. Looking for material pertaining to Whitehall, NY including Nationals, obsoletes, city or private scrip, ad notes, etc. Jeff Sullivan, POB 895, Manchester, MO 63011 (A) 111 Buying & Selling All Choice to Gem CU Fractional Currency Paying Over Bid Please Call: 916-687-7219 ROB'S COINS & CURRENCY P.O. Box 303 Wilton, CA 95693 112 March/April 2002 • Whole No. 218 • PAPER MONEY Abstract National Bank Note collectors should be grateful for the changes which were made to the National Banking Act in 1900. If located in a town with less than 3,000 residents, a national bank could now be organized with capital of just $25,000, half the amount previously required. And although the national charter was now much more financially competitive with the state charter, it continued to offer more prestige. National banks were regulated by the laws of the United States and were even permitted to issue their own money! This change ushered in the era of "home town" banking. Consequently collectors have bank notes from a wide variety of very small home towns available for their collections. THE .04 FIRST opt NATIONAL aso BANK ANCHESTER, MO. The First National Bank of Manchester, Missouri, is my "home town bank" being less than five miles from my home. The short history of the bank illustrates that some of these smaller institutions presented a new set of prob- lems for National bank examiners who may have wished that the reduction of capital had never been legislated. After all, a financial hurdle was sometimes a good thing in order to weed out the dishonest, incompetent and clueless, or the uninitiated. M ,,' ANCHESTER IS ABOUT 25 MILES WEST, SOUTH- west of downtown St. Louis and is in one of the most vibrant, growing and prosperous areas of St. Louis County. There are several local legends regarding the naming of the town, but the most probable is that the village was given its name by David Manchester, a surveyor, farmer and former resident of Manchester, England who surveyed much of the area immediately after the Louisiana Purchase. The first Europeans began to enter and settle the area in the late 1790s, and were attracted both by the opportunities to trade with the local Native Americans and by a natural spring which produced large amounts of fresh water. Astride the St. Louis to Union, Missouri stage coach line, the community quickly became a stopping point for travelers heading west. At first the road between St. Louis and Manchester was at first little more than a trace. However, the urgent need for an overland route between St. Louis and Missouri's capital of Jefferson City was generally recognized, so Manchester Road was incorporated into one of the state sponsored roads by legislation in 1839. With state funds, the road was graded and rocked, and subsequently macadamized. Although the much improved road increased the number of travelers passing through the town, growth was very slow. It was not until the second half of the nineteenth century that a relatively large number of German immi- grants, attracted by the local spring and very good farmland, began to settle in the area. By 1900 Manchester had become a prosperous farm community of about 500 residents. Background of the Bank The key personality in the formation of the bank was John Straszer, "rec- ognized as a competent and reliable businessman; a safe man to rely upon for advice in all manners pertaining to finances, and one who unites the qualities of good citizenship with those of a true gentleman." Straszer was born in 1844. His family emigrated from Switzerland four years later, settling in Manchester in 1852. John was educated in the public schools, and went to work in his older My Home Town Bank By David Grant TREARLTRY DEPARTMENT OFFICK OP CoNwrlioLLan or Tan Mr011.0000 Wrvalt000.—ornia.natlon.—Ed. May 7.3 04 2,(01. APPLICATION TO ORGANIZE A NATIONAL BANK The name of the place should form a part of the title, thus The Fire] National Bank of A-," but the name of the Slate should not Im included. Conaltioration will not ho given to an application for a title Including the word `i First," If it National Bank on'ste or hoe esiat,w1 at the Mir 191111iipplbttIRn rur n IMP 1(1,421Trit ' finkIlgrobgroro enlifirnra, nor to orni inv?Irr10.11, fAm!!nr to that of a National, Mato, or other lamb exIstin rL13 114'1905 A TiavvEREv N 2 1 1905_, 1.90...... To the Comptroller of the Curse, EB '1905Sir: Notice is hereby given, that WC, the underst9gt,E1Mg natural persons, and of lawful age, intend, with others,to organize a. National Banking Asso under the title of "The --1I &Ural/ of ... , State of with capital of 07_ 2.5TP. c-2_a , to succeed of . Population,. _,Cle; We request that the title be reserved for a period of sixty days and the necessary organization papers and instructions sent to-.. -LZ,-/ bank at [71113 application moat be signed by at bleat fire prospective shareholders, and Indorsed 23 Indicated.] tittINATIl1t.1 Or AITLICANTS. ItEsionnmot Ittramsus. FINANCIAL STRENiiirli, IN FIGURES, acza,.Af Vreo`-e The signers of this applie,al ion are. known to me to be reputable citizens, and the foregoing information. in reference to thei • business and financial standingp ••■••• • • • ilignatilm of Member of Congress, judge of court., or other prominent public official. is, in my opinion, correct. PAPER MONEY • March/April 2002 • Whole No. 218 113 brother George's tin ship. Since Missouri was a border state during the Civil War, there was considerable unrest in the countryside, so the family moved to the comparative safety of St. Louis in 1861. While there John entered the employ of the Railway Supply Company, but returned to Manchester in 1871 to set up his own tin shop. He retired from active management of the business in 1892, and turned the shop over to his sons. During the next two years, John Straszer helped his mother-in-law, Mary Migneron Monestes, to track down her wayward husband. Nearly 40 years before in 1853, David Monestes had left Mary and her children in St. Louis to find his fortune in Oregon. Communication between the couple became increasingly infrequent as the promised timing of David's return became similarly distant. In fact, David had done quite well in Oregon, and in the late 1860s he seems to have been persuaded by a relative to send the desperate Mary enough money to build a residence in Manchester so that she could remain near her relatives. Straszer married Mary's daughter, Amelia Monestes, in 1872. Two years later he accompanied his mother-in-law to Oregon where Mary found her husband. Little productive came of the visit, although David offered her a small amount of money for a divorce which she refused. Straszer and Mary visited Oregon again in 1892 when they discovered that David had remarried. Mary stayed on in Oregon long enough to establish residency, and to file for divorce and a division of David's consid- erable property. Some of this money passed to Straszer, who with plenty of time and money on his hands busied himself with various enterprises including, according to local legend, the organization of the first bank in Manchester. In 1903 there were no banks near Manchester and sev- eral city fathers, including John Straszer, organized the state chartered Citizens Bank of Manchester with a capitalization of $10,000. Straszer was named president and August Meisch, the town's physician and a prominent community promot- er, was named vice president. Edouard Jameson Archinard, a recent transplant from Texas with some banking experience, was made cashier. The new state bank was capitalized at just $10,000, and after a year's operation had gath- ered deposits of $35,000 and loans of $2 5,000 from the "thrifty Germans" who made up much of its clientele. The early Figure 1. The application to organize the First National Bank of Manchester, MO. Note that original- ly the name was proposed to be The First National Bank of St. Louis County, but this was changed at the urging of the Comptroller's office. Also note that three of the appliants (Straszer, Meisch and Archinard) had been associated with the Citizens Bank. 114 March/April 2002 • Whole No. 218 • PAPER MONEY returns appeared promising enough that in early 1905 the directorate began to organize a national bank. It is not clear why the change was pursued since farming was the primary activity in the area and the primary asset was land, a form of collateral prohibited to national banks. Nevertheless, the organization continued and, in addition to Straszer, Meisch and Archinard, the proposed directors included two other Manchester businessmen: Benjamin Franklin Ferguson, a miller, and John H. Dietrich, a merchant. David Rosentretter, president of the Washington National Bank, also invested in the bank and may have had an interest in its predecessor as well. A number of other residents of Manchester and the vicinity took 1, 2 or 3 shares of the bank's $100 par value stock. Both Straszer and Archinard had each ini- tially subscribed for 83 of the 250 shares to be issued by the bank while the other directors and Rosentretter took 10 shares apiece. The name proposed on the January 21, 1905, application to the Comptroller of the Currency was the First National Bank of St. Louis County. The bank would, in fact, be the first national bank organized in the county since it was legally separated from the City of St. Louis by the 1876 Charter. The name apparently caused some confusion in the Comptroller's office which asked for clarification of the legal relationship between the City and County, and which prevailed upon the applicants to change the name to the more con- ventional "First National Bank of Manchester." The application was endorsed by Richard Bartholdt, representative of the 10th Congressional District, who passed along the application with a note to Comptroller Ridgeway asking for "early and favorable action." After complet- ing the normal public announcement period, the bank was awarded its charter and opened for business on April 1, 1905, acquiring the business of the Citizens Bank. The Washington National Bank and the Third National Bank, both of St. Louis, and the National Park Bank of New York were named as reserve agents. The bank was housed in a two story brick building at 914 Manchester Road. The bank occupied the front of the first floor, while the back rooms and the entire second floor were rented to residents for a total of $12 per month. The building is known as the Henry Dietrich House. It had been built in 1872, passing through several hands until coming to John Straszer through his mother-in-law Mary Monestes. The building was sold to the Citizens Bank in 1903. By the end of its first year of operation, the First National had pur- chased the building from its predecessor for $3,500; an additional $1,000 was paid for furniture and fixtures. A vault did not seem to be justified, so instead a safe was used for the bank's cash and other valuables. Initially loan documents and other valuables of the bank were kept in a safe deposit box in St. Louis. April Fools Day may not be the best day to start an enterprise and the bank's first examination, conducted just three weeks after opening day, already hinted at some clouds on the bank's horizon. There continued to be light local demand for money in the area and nearly a quarter of the loans were to insid- ers, in part secured by Bank of St. Peters, MO stock (almost 100% owned by the bank's directors) or, indirectly, stock of the new bank itself. These latter loans had been made by the Citizens Bank specifically to purchase the national bank's new stock issue, and were subsequently acquired along with the rest of the loan portfolio. Another 20% of the loans were "foreign," or out of area, paper. A great deal of the paperwork associated with the assumption of the Citizens Bank's business and assets was also incomplete. The examiner, A. 0. Wilson, noted that Archinard had recently relocated from Texas. Wilson was inquiring about the cashier because he had heard dark rumors about his reputation. This was a serious matter since the cashier was the only paid officer of the bank and did practically all of its work. 0 11.4...14, P r- Nvi , [4 10-"• 114\11;40' 6573in c.) .1—ZZLIT—TI3: P 1.,,,, 114)1.1.Al t.... _ .9,. sf,,,,,..,...... — .4. tis ii,"1,07/7/ Nobody pays more than Huntoon for ARIZONA & WYOMING state and territorial Nationals Peter Huntoon P.O. Box 60850 Boulder City, NV 89006 702-294-4143 Buying Carl Bombara Selling -.:," United States Currency P.O. Sox 524 New York, N.Y. 10116-0524 Phone 212 989-9108 PAPER MONEY • March/April 2002 • Whole No. 218 115 The bank had assets of $73,625.27 at the time of the examination. Deposits were $15,500, loans totaled $23,100 and U.S. bonds equal to a quarter of the bank's capital, or $6,250, had already been deposited to secure its circu- lation. In fact, the bank may have just received its initial shipment of currency since $6,080 of the bank's notes were still on hand, and just $170 had been placed into circulation. The October, 1905 examination confirmed these problems and more. Despite paying "considerable interest on deposits," loan demand was so weak in the area that the little bank had over half its loans invested in St. Louis or brokered paper. Examiner Wilson had by now confirmed the cashier's unfa- vorable past. Further, paperwork at the bank was poorly done; the cashier was only posting the books and preparing statements every two or three days. Archinard was also cashier of the Washington National Bank and the Secretary of the affiliated Jefferson-Gravois Trust Company of St. Louis which he had helped to organize. Both institutions were much larger than the Manchester bank and were located in St. Louis, far away from Manchester. On many days the bank processed only one or two items, often handled by Straszer in the cashier's absence, and Archinard may have spent little actual time at the bank despite his $1,500 annual salary. In fact, in the January, 1906 examination of the Washington National, the examiner recommended that Archinard be required to resign from his position with the Manchester bank. The bank's location in a small town away from the railroad line could at times be a problem in other ways as well. The bank submitted its October 1, 1905, call report over a week late. Archinard noted that there was no notary in Manchester and, since Straszer was in Oregon on a visit, that it had been impossible for the cashier to visit the notary in Valley Park, some four miles DO YOU COLLECT FISCAL PAPER? The American Society of Check Collectors publishes a quarterly journal for members. Visit our website at or write to Coleman Leifer, POB 577, Garrett Park, MD 20896. Dues are $10 per year for US residents, $12 for Canadian and Mexican residents, and $18 for those in foreign locations. March/April 2002 • Whole No. 218 • PAPER MONEY116 Figure 2. John Straszer, organizer and president of the First National Bank of Manchester, MO. away and accessible only by "conveyance." He had been forced, explained the cover letter, to send in his report not notarized. The darn broke with the March 1, 1906, examination which also appar- ently ended Archinard's career and presence in St. Louis. The examination was conducted a month early in conjunction with the State Banking Department's review of the loosely affiliated Bank of St. Peters. It may have been prompted by Archinard's resignation in early February from his positions at both the Washington National Bank and the Jefferson-Gravois Trust Company. At the onset Examiner Wilson appears to have believed that Archinard was involved in some type of fraud. Collateral associated with 60% of First National's loans was not in its possession, accounts had not been brought up to date for almost a week, and more than 60% of the bank's loans were over the legal limit. During the exam -- which was remarkable in that it lasted a full two days rather than the one day normally required for such small banks -- virtually all of the missing documents were located in a safe deposit box at the Missouri-Lincoln Trust Company in downtown St. Louis, along with similar collateral for the St. Peters Bank and most of the remaining issues were resolved. However, earlier in the year, Archinard had traveled to Chicago with A. L. Crandall. Both men were members of the Jefferson-Gravois Trust Company Discount Committee and the purpose of the trip was to arrange a loan of $25,000 to C. C. King, the president of the First National Bank, Scotland S.D. The bonds of the Mitchell S.D. Gas Company were used as col- lateral for the loan which had been arranged by E. E. Collins, a bond agent of Iowa City. For his efforts, Collins was paid a $2,500 commission which was, in turn, shared with Archinard and Crandall, clearly inappropriate for officers who would participate in approving loans for the Trust Company. The loan to King was paid with a check drawn on the Jefferson-Gravois Trust Company's account at the Washington National Bank. Once the check and loan were discovered, Archinard was forced to resign his positions at both insti- tutions. From this transaction, the Manchester bank had on its books a $5,000 loan to King secured by $7,000 of gas company bonds. According to later cor- respondence, the loan had been brought into the bank without the approval or knowledge of the directorate which, frankly, had abdicated its oversight to Archinard in the day-to-day affairs of the bank. Probably after his resignation from the other institutions he was replaced as cashier of the First National, but seems to have continued for a short time as an unpaid Vice President and Director. The March examination revealed that while he had clearly been involved in self dealing and shown remarkably poor judgment, it did not appear that Archinard had actually defrauded the bank. With the agreement of the exam- iner, he was permitted to resign from his remaining posts at the First National Bank without further punitive action. William Siebel stepped in as acting cashier until replaced by Herbert M. Johnson in April 11, 1906. Henry Siebel, William's father and a well known building contractor, had been appointed as director to fill John Dietrich's place on the Board sometime earlier. Johnson was a relatively young man who had been associated with the Washington National Bank since 1903 or 1904, first as a bookkeeper then as a paying teller. Within a few weeks of his appointment as cashier, Johnson moved his family to Manchester. He was a great improvement over the previ- ous cashier and apparently devoted his full attention to the little bank's affairs. Johnson was still the bank's only paid employee, receiving a $1,200 annual '213tItir' ) • SECURED IMMO STATES sa KIM OTHER SECURITIES • IIHITER STATES Of AMERICA ..? ,,_ •,-- (1) '..11' 1 AN1 I 7111: I E-t IC F. I I 41740 _ ._. --_,--)2__ eat -4.--:— ,itg 7643N 4DT-- Sri 41 .1. 1 .44 1 14 1.1"1- sl ' A./.1 .12 1 -"V 4 ' Igia-N° mttmorrAvsl 2//0, ,,xony: ,•,..f.,E,,:ws.1,a • -7,i,- ..94v94; A.,s,.4-.. -- ,-,- 0 D346494-r PAPER MONEY • March/April 2002 • Whole No. 218 117 salary. By the end of the year, the bank's overdue paper had been reduced by half, and contrary to the prior practice the bank's business was being posted each day. Despite such improvements, the bank continued to struggle with the lack of demand for money in and around Manchester. An examiner exaggerated a little in writing that the town's business enterprises consisted of just four stores and a livery stable, but was correct in suggesting that the bank could do better with a state charter which could lend more liberally on the area's ample real estate. Much more threatening to the bank was the legacy of several loans of veiy questionable quality which had been made by Archinard during his tenure. The bank's loan limit was just $2,500; the $5,000 King loan and a $6,965 loan to R. M. Campbell partially secured by National Bank of Commerce of St. Louis stock went well beyond the pale. The collateral of both loans seemed sound and the bank pleaded with the examiners for just a little more time to avoid a loss in moving the assets out of the bank. Although Straszer indicated that they were "glad to be rid" of Archinard and his friends, there was a belief, or maybe a hope, that the loans were OK, and that given enough time things would work out. As a show of confidence, President Straszer gave his personal note to make up the deficiency in collateral securing the Campbell loan. Combined with Johnson's periodic consultations with Examiner Wilson on "all matters of importance," Straszer's demonstration of faith seems to have worked because the bank was given more than a year to try and resolve the matter. But as the loans became increasingly past due, the bank yielded to the examiner's pressure and had taken over King's collateral by July, 1907. Within a year, King was ensconced in the Federal Penitentiary in Leavenworth serving a lengthy sentence for defalcation of the Scotland, SD bank. King had been forced to resign as president in 1906 and by February 1907 his bank was in receivership. When the losses were tallied, depositors recovered only 20% of their money, and because of the double liability requirement, investors lost all of their original investment and more. Manchester's little bank struggled on. The Mitchell Gas Company was under reorganization and its plant was being rebuilt. With an uncertain future, its bonds were commonly valued at as little as 50% of their par value except by those who owned them. The Mitchell bonds continued to be an ongoing source of criticism, with the examiners finally demanding that they be removed from the bank. The bonds were purchased by First National's directors removing a serious blot on the bank's ledger. A more difficult issue was the bank's ongoing dependence on commer- cial paper purchased from the Banker's Trust Company and loans secured by bank stock and real estate. No doubt seeing a more promising opportunity, Johnson resigned as cashier on November 15, 1909, to become Secretary/Treasurer of the Jefferson-Gravois Trust Company. He was replaced by Albert A. Koch, of Creve Coeur, Missouri, another St. Louis suburb. Koch was born in 1881 and Figure 3. A $10 1902 Date Back with the signatures of Albert Koch, cashier of the bank from the end of 1909 until its closure in 1913, and John Straszer, president until his death in June of 1913. -1 111: .7V- 1\ II Ni11“-K4401410 <4*,.? CUM TE It TWENTY morn-0 4 'sf f \Y' T T Nte 4./.! "1(4444,44:444,M04,444424414413,U14liwtqwnrignigAmt 118 March/April 2002 • Whole No. 218 • PAPER MONEY Figure 4. The $20 Red Seal from the Higgins collection featuring the signa- ture of Edouard J. Archinard, cashier of the bank from its opening in April, 1905, until his resignation early the next year. The Andre book suggests that this may have been in the posses- sion of an early Manchester family until acquired by Higgins. briefly attended the state university in Columbia before finding a position with the post office in St. Louis. After three years he left to become secretary of the H. M. Koch Mercantile Company, founded by his father, until October, 1907 when he became cashier of the newly organized Creve Coeur Farmers' Bank. According to a 1911 biography he "performed his duties with such ability that in November, 1909 he was elected cashier of the First National Bank of Manchester. His rapid advancement is ample evidence of the confidence of financiers in his ability and faithfulness in the discharge of his responsibilities." Koch was paid $1,200 for his services; President Straszer, who periodically filled in for the cashier, was paid $300. Initially it was thought that Koch would become a director of the bank, but Johnson was actually replaced with DeWitt Clinton Taylor, a well known St. Louis County attorney. Despite the confidence of the "local financiers," National Bank Examiner George Cutts was much less favorably impressed with Koch. In his February, 1910 examination he noted that Koch had been cashier of a small state bank and seemed totally unfamiliar with the requirements associated with a national bank, and that a "considerable portion of my time was spent instructing him." For example, the bank did not distinguish and keep separate its and other bank's national bank notes from other types of currency which qualified for the legal reserve. Further, he noted that the reserve in the bank had been consistent- ly short of the requirement, because of the bank's "disinclina- tion to keep much money on hand in a town without police protection and in an old fashioned safe when it can get it (money) in a few hours from St. Louis." At this point the bank had about $2,400 of cash of all forms including $570 of its own notes, $425 of other bank's nationals, $700 of mostly gold coin, and about $600 of gold, silver and legal tender certificates. Nevertheless, the board and cashier were well reputed and given the "rather severe lessons" associated with the King loans, were now thought to be very conservative. The examiner added, however "I doubt if the bank has any opportunity to do much good for itself." During the next few years the bank's exams continued to stress the same themes. The reserve was habitually short, clerical work was sloppy and not performed every day. While Koch seemed to be an honest fellow, he was not felt to be of a sufficient caliber to occupy his position. He continued to be crit- icized as young, inexperienced, inefficient and careless. The bank continued to rely on Banker's Trust Company which supplied up to 50% of its loans and which owned nearly 10% of its stock. Examiners chastened the directors noting that often the officers knew lit- tle about the borrowers, many of whom lived in southeast Missouri, Texas or Oklahoma, and generally just relied on Banker's Trust Company's recommen- dation. And, despite this trust, it seemed clear that the Trust Company was "using the little bank for a dumping ground for loans that they can't negotiate through (presumably more discriminating) city correspondents." In his May, 1911 examination, Walter W. Smith (subsequently president SOVEREIGN MYLAR SLEEVES ENVELOPES Sovereign Currency Storage - Just one of the categories in the Archivalware Catalog. 40 full color pages of Archival Collectibles Storage and Exhibition products. Send for your free copy & receive sam- ples of our 4 mil Mylar Currency Envelopes. Request your free Catalog Tel: 1.800.628.1912 Fax: 1.800.532.9281 E-mail: We are proud to continue the numismatic legacy begun in 1933 Specializing in Quality and Rare U.S. Currency U.S. Large Size Fractionals U.S. Small Size Nationals National Gold Bank Notes Kagin's -- an established name for conservative grading of quality notes. We specialize in building U.S. currency collections of premium quality and rare notes. Favorable terms to suit your individual needs. 98 Main Street #201 Tiburon, CA 94920 1 -888-8KAG I NS Call Judy PAPER MONEY • March/April 2002 • Whole No. 218 119 J&F Rubenstein Buying and Selling the Finest U.S Currency Uncut Sheets Nationals - Large and Small Type Notes Fancy Serial Numbers Error Notes Auction Representation Consignments Accepted Actively Buying Collections Want Lists Serviced See us at all the major shows Members PCDA, FUN, ANA, ANS P.O. Box 4543 Greensboro, NC 27404 Telephone: (336) 299-7061 E-mail: 120 March/April 2002 • Whole No. 218 • PAPER MONEY of the First National Bank of St. Louis) indicated that "this bank has made lit- tle headway in the past and unless a more intelligent management is obtained, it will not prove very profitable in the future." At President Straszer's request, his criticisms were detailed in a letter with recommendations for corrective action. Each member of the Board of Directors signed the letter in acknowl- edgement, and promised to immediately initiate the recommended corrective actions. Almost in dismay, Smith reported that "This letter to the directors, no doubt, seems very fundamental in its suggestions but, after experiencing the lack of system, and absence of any knowledge of general banking safeguards, your Examiner deemed it necessary in this instance." By November, the situation had improved a bit, but Smith indicated that "while there was little specifically wrong with the bank. . .it needs watching." He recommended examinations every three months rather than the normal six- month interval. Perhaps part of the problem was that the bank did not have enough business to maintain the attention of a full time cashier; in the 1911 exam it was noted that Koch also sold insurance and automobiles. Repeated requests to pay dividends to shareholders, were temporarily denied until the problems were resolved and the bank's surplus reached acceptable levels. John Straszer died on June 16, 1913. He had suffered from throat trou- ble for more than a year and seemed to be getting better up to a week before his death. Herbert Johnson, Albert Koch and the bank's surviving four direc- tors acted as pallbearers at Straszer's funeral. The St. Louis County Watchman Advocate noted his passing and mentioned that he had organized the bank after retiring from his tin business to be engaged in some useful activity. It seems likely that it was he who had resisted converting the bank back into a state bank despite the ongoing insistence of the examiners. The prestige associated with a national bank, even in a small rural community, may have been very important to the otherwise successful Swiss immigrant. Henry Siebel became the bank's "acting President" after Straszer's death, and Adam Siebel filled Straszer's board seat. Albert Koch remained the bank's cashier. Robert Koch (probably Albert's younger brother) was retained at $300 to act as the bank's bookkeeper, and to fill in when Albert was away on bank business or pursuing his other business activities. The bank exam conducted on October 3, 1913, by Walter Smith proba- bly sealed the fate of the bank. Nearly 40% of the bank's loans had been pur- chased from Banker's Trust and Smith felt that $10,000 were so undesirable that he forced the seller to repurchase them. The reserve was short, nearly 10% of the bank's loans were overdue, and another 10% were secured by real estate in violation of law. Without Straszer, there probably was no advocate to maintain the nation- al charter. The state charter would permit lending on real estate collateral, and the regulation and examinations were generally less stringent. On October 15, 1913, an announcement was sent to shareholders regarding a meeting to consider the liquidation of the existing bank and organization of a new state bank. During the evening of December 19, 1913, the shareholders decided to liquidate by a vote of 174 to 0 with 76 shares not represented. The resolution took effect immediately and the national bank entered liquidation. The state chartered Bank of Manchester succeeded to the business of the First National, although there was no contract between the two institutions. The new bank was located in the same building and purchased the loans and other assets of the First National. Interestingly, the new state bank did not assume any of the liabilities of the national bank, but rather each depositor was required to close his account and to open a new one, perhaps to make the break between the organizations very clear and to ensure that the National Banking authorities were kept away from the affairs of the new bank. First National Bank of Manchester Circulation Issued Red Seals # Sheets # Notes $ $5 800 3,200 16,000 3/$10420 680 2,720 34,000 Date Backs $5 1,255 5,020 25,100 3/$10-$20 774 3,096 38,700 Totals 3,509 14,036 113,800 PAPER MONEY • March/April 2002 • Whole No. 218 121 August Meisch was president of the new bank and Albert Koch was Cashier as well as Liquidating Agent of the affairs of the First National. His last report as Liquidating Agent was filed on October 26th, 1914, indicating that the last $4,792.70 of the national bank's assets had been paid to sharehold- ers representing a premium to the repayment of the bank's $25,000 equity which had been dispersed earlier in the year. Also, $2,500 was received for the banking house and $618 was received for the bank's furniture and fixtures. Currency Issues of the Bank The bank issued Series 1902 $5, $10, and $20 notes in the form of both Red Seals and Date Backs. As indicated by the table, during the eight year life of the bank, a total of 14,036 notes with total value of $113,800 was issued. The notes carry the date of February 28, 1905, the date of the organization of the First National Bank. The outstanding circulation at any time ranged between $23,900 and $25,000. Since Manchester was a very small town with very limited business activity, the bank probably recirculated its own notes rather frequently, and may have found itself holding its own notes at times, technically reducing the notes outstanding. At present there are four notes known on the bank. In addition to the $10 illustrating this article, the $20 Red Seal in the Higgins Museum may have originally been in the possession of one of the offi- cer's families. A $5 Date Back was reported to be in the possession of the Ballwin Branch of Boatmen's National Bank in the early 1980s. A second $5 note appeared in R. M. Smythe's June 2000 Memphis Auction. Unlike the other three notes, it has an inter- esting stamped not autographed signature of John Straszer, perhaps issued during one of his trips to the western United States. Epilogue Even under the state charter, the little bank remained a problem for the Comptroller of the Currency. On October 6, 1914, ten months after the close of the First National, the Reports Division received a note indicating that the new bank "still keeps the sign 'First National Bank' over the door. Bank should be written to take the sign down and their attention called to the penalty for using the word 'National. — The next day, the Deputy Comptroller sent off a letter asking that the sign be removed, and cited the $50 per day penalty which could be imposed if this were not done promptly. Within the week a letter from Albert Koch was received indicating that the last vestige of the national bank had been removed. Happily the bank building still stands today. Unlike its surroundings, the building seems little changed from its appearance when occupied by the First National. In 1914 the state chartered successor to the First National moved to a one story building immediately to the east and by 1919 the original bank building had been returned to residential use. With somewhat less restrictive regulation, the new state bank met with some success and reached $600,000 of assets by late 1920, about three times the level reached by the national bank. The bank stressed that it was "a community bank, owned in its entirety by community people...we assure you that our earnest endeavor shall always be to serve you to your entire satisfaction in all business transactions you have with this bank." March/April 2002 • Whole No. 218 • PAPER MONEY122 Figure 5. The Henry Dietrich House, 914 Manchester Road, as it looks today and probably not too different from its appearance from 1903-13 when it was home to both the Citizen's Bank of Manchester and the First National Bank of Manchester. The front of the first floor was used for banking and the balance of the building was residential. Implied but certainly left unsaid was that the bank was no longer ham- pered by the national banking laws. The little bank was succeeded in July, 1934 by the Manchester Community Bank under the same management. At that time, assets had declined to just over $300,000. In 1962 the bank moved about four miles west to more modern facilities in the neighboring community of Ballwin, and was subsequently acquired by the Boatmen's Bancshares chain which, in turn, was acquired by NationsBank. Archinard seems to have left St. Louis rather quickly after his resignation because in an April 10, 1906 letter, Straszer stated "that the present address of our former Cashier, Mr. E. J. Archinard is unknown to us" and he appears in no subsequent St. Louis City or County directory. The First National's second cashier, Herbert Johnson, remained with the Jefferson-Gravois Trust Company until 1914 or so. He then held sev- eral interim positions, but by 1918 was in the U.S. Army. After return- ing to St. Louis he became, ironical- ly enough, real estate manager of the similarly named, but distinct, Manchester Bank of St. Louis through the 1920s. The bank's third cashier, Albert Koch, remained with the Bank of Manchester until at least 1917. By 1920 he had moved from Manchester to Kirkwood, where he engaged first in oil sales and then insurance. In 1925 he helped to organized the North Side Bank of Jennings, a northern suburb of St. Louis, and remained as cashier prob- ably until his death during 1926. Thus ends the story of the First National Bank of Manchester, my "home town" bank. While as collectors we can romanticize this period of home town banking, we should not forget the very real burdens these institu- tions could place on the bank authorities who actually had to deal with them daily. Acknowledgments My thanks to Merry Coleman of the William R. Higgins, Jr. Foundation for the illustration of the $20 Red Seal, and to Wayne DeCesar of the National Archives for accessing the Comptroller Records. Bibliography Andre, R. M. The Moving Forces in the History of Old Bon Homme. Manchester, MO. (1982) Comptroller of the Currency. Correspondence, examination, liquidation and organization files. National Archives, Washington, D.C. (various dates). Kelly, D. C. National Bank Notes, 3rd Edition. Oxford, OH. (1997). St. Louis City and County Directories/Red Books (various issues 1900 to 1930). Thomas, W. L. History of St. Louis County, A Story that Attracts. St. Louis, MO (1911). Watchman -Advocate (various issues), Clayton, MO. Watchman -Advocate. History of St. Louis County , Clayton, MO (1920). VISIT MY WEB PAGE AT WWW.KYZIVATCURRENCY.COM FOR A GOOD SELECTION OF NOTES CONSERVATIVELY GRADED AND REASONABLY PRICED FOR THE COLLECTOR NATIONAL BANK NOTES LARGE SIZE TYPE SMALL SIZE TYPE STAR NOTES WEBS MISCELLANEOUS?? TIM KYZIVAT (708) 784-0974 PCDA, SPMC lOW;:1"1" PAM. MONEY cou.Lcums WANTED: NATIONAL BANK NOTES Buying and Selling Nationals from all states. Price lists are not available. Please send your want list. Paying collector prices for better California notes! WILLIAM LITT P.O. BOX 6778 San Mateo, California 94403 (650) 458-8842 Fax: (650) 458-8843 E-mail: Member SPMC, PCDA, ANA PAPER MONEY • March/April 2002 • Whole No. 218 123 Claud & Judith Murphy We Buy & Sell Paper Money, checks, bonds, stocks, letters, old postcards, stereoviews, cdv's If it's old and it's paper, we have it! Box 24056 Winston-Salem, NC 27114 336-699-3551 fax: 336-699-2359 e-mail: L MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 4 3/4 x 3 3/4 $18.50 $33.50 $150.00 $260.00 Colonial 5 1/2 x 3 1/16 19.00 35.00 160.00 290.00 Small Currency 6 '/8 x 2 '/8 19.50 37.50 165.00 310.00 Large Currency 7 7/8 x 3'/2 22.00 41.00 184.00 340.00 Auction 9 x 3 3/4 24.00 44.00 213.00 375.00 Foreign Currency 8 x 5 27.50 50.00 226.00 400.00 Checks 9 3/8 x 4 1/4 27.50 50.00 226.00 400.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 81/4x 14 1/2 $14.00 $61.00 $100.00 $226.00 National Sheet Side Open 81/2 x 17 1/2 15.00 66.00 110.00 248.00 Stock Certificate End Open 91/2 x 12 1/2 13.50 59.00 94.00 212.00 Map & Bond Size End Open 18 x 24 54.00 235.00 385.00 870.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 5 pcs. one size) (min. 10 pcs. total). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar a® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar° Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Mel inex Type 516. DENLY'S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-1-11-DENLY • FAX 617-357-8163 *Afi gel SMI!"; !1,113" ( 4tr Olt 4111'11Eit SIECC14191!IINS IMIEpt..2r r (4-47:itV/ ; Li 'lid/ vmai Ott On 00Anusol. ir1210:CTI leDi4.3.—St riESSWrokk4=W Robert Kotcher, New Jersey specialist, found this unlisted Series of 1882 Date Back on Paterson. A trip to the archives revealed that the bank issued 1760 5 -5 -5 -5, 842 10-10-10-20, and 113 50- 100 Date Back sheets that had been inadvertently omitted from the Van Belkum data. 124 March/April 2002 • Whole No. 218 • PAPER MONEY Correcting the National Bank Data Base By Peter Huntoon I F YOU HAVE DISCOVERED ANY BUGS IN the listings of National Bank Notes issued to banks found in any of the catalogs, or in the original Van Belkum data sheets themselves, I would like to hear from you. What I am looking for are cases where an observed note is not listed or has a serial number that is out of the range of those shown in the listings. Other problems are incorrect sheet combinations such as a 10-10-10-10 listed as a 10-10-10-20, a wrong series for an issue, or wrong bank title for a given issue. I am also interested in incorrect titles or towns. Anything that seems like a problem! Solving these types of problems gets my highest pri- ority each time I visit Washington, DC. It usually takes between 30 to 60 minutes to resolve each problem once I gain access to the National Currency and Bond Ledgers in the National Archives. I will provide you with the solution as soon as I find it, and the solution will be used to update the data base. I routinely turn these types of data over to Don Kelly and Dean Oakes so they can revise their catalog listings. Louis Van Belkum The contribution of Louis Van Belkum to United States paper money is second to none, vaulted him to the pinnacle of numis- matic research. Van Belkum assembled the greatest data set ever put together on our behalf, because he was the person who abstracted the data showing which notes were issued by every bank in the country from ledgers in the National Archives. He began the job in 1968, and with the help of his wife Barbara, finished it 11 years later, pro- ducing more than 5,000 pages of hand typed data. He usually did the work on a contract basis for individual collectors inter- ested in specific states. He was a high school teacher in Grand Rapids, Michigan, at the time. The total number of issuing banks that they tackled was a daunting 12,635. They cataloged an astronomical 81,242 varieties. The banks themselves experienced a total of 176 town name changes, and about 1,000 title changes. In addition, for completeness, Van Belk-um collect- ed the basic data for the 1,685 banks that did not issue notes up through charter 14,320 in 1935. So far, with everyone looking, we have been able to identify only about 75 errors in that data set, or one per 1,100 entries. This is an incredibly small error rate, and speaks to the supreme care that Van Belkum devoted to the job. Hickman and Oakes, Don Kelly, and other people who have published all or part of his incredible data set have not been able to copy the data with the same preci- sion as we find in Van Belkum's originals! Consequently, most of the bugs you send me actually will correct one of the catalogs rather than Van Belkum's original data set! We owe it to him to continue polishing his project. Date Back Changeovers All of us are very interested in pinpointing the changeover serial numbers between the Series of 1882 Date Backs and Value Backs, and the Series of 1902 Date Backs and Plain Backs. There are hundreds of cases where Van Belkum found it impossible to pick the changeover, and he listed these ambiguous listings with language such as "not marked as to type." The problem is that neither the treasury nor bank sheet serials reverted to number 1 after the end of the Date Backs. Making matters worse is that it has been impossible to determine the ending Date Back serials for many banks from existing federal records. There are two problems. First, no Bureau of and his work • maim NIEMBEI ANA HARRY IS BUYING NATIONALS - LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES PO Box 30369 Cleveland, Ohio 44130 1-440-234-3330 PAPER MONEY • March/April 2002 • Whole No. 218 125 Engraving and Printing delivery schedules nor Comptroller of the Currency receipts ledgers have been found for the period January 1, 1913, through January 3, 1924. These records show the type, and treasury and bank sheet serials, for each delivery. Second, duplicate entries showing receipts from the Bureau for the indi- vidual banks recorded in the National Currency and bond ledgers were made by a careless clerk who failed to include the years in the dates. Although the National Currency and bond ledgers do not list treasury serials, the bank numbers are there. When Van Belkum compiled the serial number data, he was forced to estimate where the 1882 Date-Value Back and 1902 Date-Plain Back breaks occurred based on the delivery dates. This was impossible in many cases with- out the years. The result was that he was forced to flag the ambiguous serial number ranges, and labeled them as "not marked as to type." These ambiguities necessarily made it into both Kelly and Hickman-Oakes catalogs. Occasionally we have been able to refine the picks based on serial numbers observed from the disputed range. It is a straight forward task to determine which printing the observed note was from. Armed with this information, we can often pinpoint with precision the ending Date Back serial. So far we are finding that the range of serials labeled as "not marked as to type" are Date Backs in most if not all such cases. Obviously, if you have sightings based on actual notes in these "not marked" ranges, they are invaluable to all of us. Please let me know what they are. Contact me at (702) 294-4143, or P. 0. Box 60850, Boulder City, NV 89006. NEW MEMBERS MEMBERSHIP DIRECTOR Frank Clark P.O. Box 117060 Carrollton, TX 75011 SPMC NEW MEMBERS - 12/06/2001 10359 Ernie Botte, PO Box 206, Wilmington, MA 01887-0206 (D, U.S.), Bob Cochran 10360 David Wheatley (C), Tom Denly 10361 David Leong (C & D), Website 10362 Don Roper (C), Tom Denly 10363 Forrest G. Hasey, Jr. (C), Torn Denly 10364 David J. Lynch (C), Hugh Shull 10365 Scott N. Ludrick, PO Box 421292, Dallas, TX 75342-1292 (C, U.S. Small, Stars, Fancy & Low Serial Numbers), James W. Miller 10366 David Richey (C), Website J10367 Chad Lytle (C), Website 10368 Gary M. Brown (D), Fred Reed & Roger Durand 10369 Paul A. Fisher (C), Website 10370 Karl Klimosh, 1155 York Rd, Saxony Manor Unit G-14, Warminster, PA 18974 (C, Large, Small, Nationals, Obsoletes & MPCs), Frank Clark 10371 Paul E. Peelle, 161 High St, Amherst, MA 01002-1853 (C, Current $1 & $2 FRNs; would like to trade extra Uncs), Website 10372 Newark Museum Library, 49 Washington St, PO Box 540, Newark, NJ 07101-0540 (EBSCO Industries, Frank Clark) DECEASED John Bergman #7523 SPMC NEW MEMBERS - 12/31/2001 10373 Michael K. Garofalo, PO Box 325, North Salem, NH 03073 (C & D, Large, Colonial, NH Obsoletes), Tom Denly 10374 David B. Alspach, 2686 S. Waton P1, Lakewood, Co 80227-4014 (C, US Small), Scott Ludrick 10375 Joel Dutenhoefer (C), Website (New 'member List continued on next page) Fred L Reed III March/April 2002 • Whole No. 218 • PAPER MONEY126 NEW MEMBERS MEMBERSHIP DIRECTOR Frank Clark P.O. Box 117060 Carrollton, TX 75011 10376 William Yarger (C), Torn Denly 10377 Pete Angelos, 3914 Copper Ridge Dr, St. Peters, MO 63376 (C, US), Website 10378 Curtis A. Kopp, 3640 Birch Hill Dr, Florissant, MO 63033-6511 (C, Fractional, Notgeld, CSA, Odds & Ends), Website SPMC NEW MEMBERS - 01/24/2002 10380 Richard Melamed, 340 E 93rd St Apt 3G, New York, NY 10128 (C, Fractional), Website 10381 Craig J. Dickherber, 1385 Hampton Rd, St. Charles, MO 63303 (C), Tom Denly 10382 Robert J. Chambers (C), Torn Denly 10383 Roger Fortier, 24 First Ave, Goffstown, NH 03045 (C, US & Obsoletes), Website 10384 Raymond S. Vorhees, 3015 Donnington Ct, Jeffersonton, VA 22724-1731 (C, US Large and Nationals), Website 10385 Richard K. Rogers, 74 Fairfield Rd, West Hartford, CT 06117-1904 (C, US Large), Tom Denly 10386 Steven Garfirth, 80 Wollaston Rd, Irchester, Northamptonshire NN297DF, England (C, Post Civil War), Toni Denly 10387 Charles McEntire (C), Q. David Bowers 10388 Edward J. Lisowski (C), Q. David Bowers 10389 Donald Roesler (C), Torn Denly 10390 Steve Rivera (C), Q. David Bowers 10391 Robert Shaw Jr. (C), Torn Denly 10392 Mark Gereb (C), Bob Cochran 10393 Donna A. Martinelli, 2018 Aquia Dr, Stafford, VA 22554-2249 (C, US Large & Small), Website 10394 Milton Huff (C), Q. David Bowers 10395 Peter Smith, 45 Manchester Rd, Eastchester, NY 10709 (C), (Website) 10396 William K. Eakins, PO Box 127, Butler, TN 37640-0127 (C, Paper Money as Art), Website 10397 Michael Moczalla, PO Box 891, Mundelein, IN 60060 (C, US Small & Web Notes), David Moore 10398 Paul Fitzgerald, 9709 Grove Ct Apt E, Windham, OH 44288 (C), O. David Bowers 10399 Sidney K. Broussard (C), J. Phillip Elam 10400 Richard Weaver (C), Jimmie Ranes 10401 Gregory A. DeVeau, 21402 Hollingsworth Rd, Tonganoxie, KS 66086-4154 (C, $1 & $2 Notes, Large & Small, KC FRN's), Frank Clark 10402 Wayne D. Rickert (C), Website 10403 Bob Kerstein,, PO Box 223795, Chantilly, VA 20153 (D, Paper Money, Checks, Scripophily), Fred Reed LIFE MEMBERSHIP LM336 Thomas C. Clark III B Sow the SPMC Message to Your Friends ECAUSE YOU BELONG TO SPMC, YOU KNOW the many benefits we enjoy as members. You have a jour- nal that is top notch, where you can share your discoveries and read excellent articles by world-class authors. You can advertise for the items you need or information you seek in our "Money Mart" and "Research Exchange." You can attend our national and regional meetings, where you will find inter- esting speakers on diverse topics, and can share personally in the fun with your fellow SPMC members. You can volunteer for our various committees, or run for office and give back to the paper money community. Those who do so will tell you they reap much more than they sow. You enjoy membership discounts when our award-winning books are published peri- odically -- and several new ones are nearing completion. You will soon be able to borrow paper money books from our revi- talized library. You can put the SPMC logo on your sta- tionery or in your advertisements, and the readers of your let- ters or respondents to your ads will know that you are serious about your syngraphic interests. You can win awards and prizes, qualify for a research grant, or support our advertisers. Since you belong to SPMC and know the benefits you receive for your dues dollars, YOU are the best publicity source for our organization. As you share your hobby with your colleagues, friends and fellow members at local and regional numismatic organizations, why not share your views on SPMC and encourage others to join, too. Free member- ship applications are available from New Member Coordinator Frank Clark (his address is listed on the second page of each issue of Paper Money) or at our web site but one needn't have an application to join: Just a $24 check and a place to send magazines and renewals to will suffice! Unfortunately SPMC membership peaked some time ago. In the past decade it has plateaued: we sign up about as many new members each year as we lose through attrition. Since most agree the paper money hobby has grown apprecia- bly in that time, evidently we are not spreading the positive message about SPMC well enough. Recently one of our long- time members Q. David Bowers (#780 -- he joined in 1963!), whom most of you will know as an outstanding and venerable COIN dealer and regular Paper Moneya,',:ertiser, wrote sever- al articles in his Coin World column about paper money col- lecting and the benefits of SPMC. A half dozen (at this writ- ing) readers of Dave's columns signed up! Not everybody enjoys the prestige and responsibility of a regular periodical column, but we all have associates who could benefit from SPMC. So tell your friends today; they will thank you for it v 1/, „4",/,(/),I 7/-/s I COLLECT MINNESOTA OBSOLETE CURRENCY and NATIONAL BANK NOTES Please offer what you have for sale. Charles C. Parrish P.O. Box 481 Rosemount, Minnesota 55068 (651) 423-1039 SPMC LM 114—PCDA—LM ANA Since 1976 PAPER MONEY • March/April 2002 • Whole No. 218 127 United States Paper Money --special selections for discriminating collectors-- Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. (586) 979-3400 PO Box 2 • Roseville, MI 48066 E-mail: New Hampshire Notes Wanted: Obsolete currency, National Bank notes, other items relating to New Hampshire paper money from the earliest days onward. Dave Bowers Box 1224 Wolfeboro, NH 03894 E-mail: AD INDEX AMERICAN SOCIETY OF CHECK COLLECTORS ... 115 BART, FREDERICK J. 127 BENICE, RON 67 BOMBARA, CARL 115 BOWERS & MERENA GALLERIES IBC BOWERS, Q. DAVID 127 BUCKMAN, N.B. 97 COHEN, BERTRAM 97 COLLECTIBLES INSURANCE AGENCY 92 CURRENCY AUCTIONS OF AMERICA 128 DENLY'S OF BOSTON 56-57 DENLY'S OF BOSTON 123 EARLY AMERICAN NUMISMATICS 101 HOOBER, RICHARD T 97 HORWEDEL, LOWELL C 111 HUNTOON, PETER 115 JONES, HARRY 67 JONES, HARRY 125 KAGIN, A.M 83 KAGIN'S 119 KNIGHT, LYN 79 KRAUSE PUBLICATIONS OBC KYZIVAT, TIM 67 KYZIVAT, TIM 123 LITT, WILLIAM 123 LITTLETON COIN CO . 107 MURPHY, JUDITH & CLAUD 123 NAPLES BANK NOTE COMPANY 95 OREGON PAPER MONEY EXCHANGE 97 PARRISH, CHARLES C. 127 POL1S, JAMES 67 POMEX, STEVE 97 ROB'S COINS & CURRENCY 111 RUBENSTEIN, J&F 119 SHULL, HUGH 50 SILVER PENNY COINS 72 SLUSZKIEWICZ, TOM 97 SMYTHE, R.M . IFC STACK'S . 99 TEXAS HISTORY MUSEUM 103 UNIVERSITY PRODUCTS 119 YOUNGERMAN, WILLIAM, INC 101 NTION An unprecedented opportunity for Currency Buyers and Sellers Name GIN. State. Zip - Daytime Phone Evening Phone FOR FASTER SERVICE, Ca111-800-872-6467 CURRENCY AUCTIONS OF AMERICA I 'trilogy Plaza. 100 Highland Park Village. 2nd Floor • Dallas. Texas 75205-2788 214-528-3500 • FAX: 214-443-8425 • e-mail: Len Glaser, Ext. 390 (Len@HeritagoCoin.cont) Allen Mincho. Ext. 327 ( ) CURRENCY AUCTIONS OF AMERICA Len Glazer 1-800-872-667 Ext. 390 ( ) Allen Mincho 1-800-872-667 Ext. 327 ( ) 128 March/April 2002 • Whole No. 218 • PAPER MONEY 1 Currency Auctions of America joins the Heritage family of companies Currency Auctions of America, America's most respected currency auctioneer, has just become part of the country's largest numismatic auction house, Heritage Numismatic Auctions. Building on the combined strengths of both companies, opportunities for buyers and sellers of paper money will greatly increase with more frequent CAA auctions at conventions around the country, and twice-monthly sales on the Internet at . CAA founders Len Glazer and Allen Mincho, two of the top currency experts in the world, will continue handling all consignments, grading, and cataloging. CAA will be able to offer more material, hold more auctions, and have greater access to potential bidders through r Heritage's huge customer base, worldwide marketing expertise, financial strength, and advanced technology. This gives CAA the unmatched ability to attract potential consignors and bidders, which means more choices for paper money collectors: • more frequent auctions, containing larger amounts of material •access to Heritage's active mailing list of 50,000 names and web site membership of nearly 40,000 numismatists •online interactive bidding and paper money search engine capabilities at and . •full color, enlargeable images of every single-note lot posted on the Internet •selected lots for the September CAA auction in Cincinnati will also be available for viewing through Heritage at the ANA convention in Atlanta in August •all CAA catalogs will be available in CD-ROM format as well as online • lead-times will be shortened between consignment deadlines and sale dates •greater financial resources for cash advances to consignors and for purchases We invite your participation in future CAA auctions. L CAA Upcoming Schedule: September 2001 - Cincinnati November 2001 - St. Louis - Charity Auction January 2002 - Orlando May 2002 - Rosemont :11 ant interested in consigning my currency to one of your upcoming auctions, please contact me. u I would like a copy of your next Auction Catalog. Enclosed is a check or money order for $15, (or an invoice for $1,000 from another cur- rency company: Fax or Ntail a copy to CAA). u I would like a one-year subscription to all your Auction Catalogs. Enclosed is $50 for the year. u I would like a FREE copy of your video Your Guide to Selling Coins and Currency at Auction." Fill in your e-mail address below for free, comprehensive e-listings, news, and special offers. America's 9t Numismatic Auctioneer Numismatic Auctions, Inc. KG15•V' ICTAI Steve ivy km linters, Greg ;Mho , Heritage Plaza, 100 Highland Park village, 2nd Floor • Dallas, Texas 75205-2788 • I-800-US COINS (872-6467) • 214-528-3500 • FAX: 214-493-8425 \ • e-mail: Bids@HeritageCoinscom • • e-mail: 4Sel SPMC 7201 Impressive $100 Treasury or (. -0;;I Xvie, )1.3.`+', 000; S" AiNIE TATEs We offer you the incomparable and very profitable ad- vantage of having your material presented in our superbly illustrated Grand FormatTM catalogue to our worldwide clientele of collectors, investors, museums, dealers, and other bidders. Your paper money will be showcased by the same expert team of cataloguers, photographer, and graphic artists that have produced catalogues for some of the finest collections ever sold. And, the presentation of your currency will be supervised by Q. David Bowers, one of the most well- known names in the entire hobby. . 1 WA, • '4, .,;, „,vx , 0,4 '4004/. ///////, ,/,/// //, ////////, zkti .. 1 01. MONTGOMERY, Choice VF 1861 Montgomery Issue $100, realized $25,300 W.E1 A.o.w --:"="400ftwaiffin liligi■LWKW: 1/140/fAi gt 128the .-17W11411.1W1:EN 1,1 WE EILVIIIKEN lVeehauken, New Jersey .85 National Bank :Vete Pair Serial # calized 475,525 Unique Territory of Dakota, National Bank Note, Serial #1, realized $55,200 It's Easy to Consign! Selling your collection will be a pleasant and financially rewarding experience. From the moment we receive your consignment we will take care of everything: insurance, security, advertising, worldwide promotion, authoritative cataloguing, award-winning photography, and more—all for one low commission rate, plus a buyer's fee. When you do business with Bowers and Merena, you do business with a long- established firm of unsurpassed professional and financial reputation. Over the years we have sold over $350,000,000 of numismatic items and have pleased more than 30,000 consignors. Just contact John Pack, our auction director at 800-458-4646 to discuss your consignment. It may well be the most financially rewarding decision you make. 0..D, 62 REALIZE TOP MARKET PRICE FOR YOUR PAPER MONEY! Let Our Success be Your Success! Consign with Bowers and Merena Galleries Today! mar uy Online, Bid Online, Books Online! BOWERS AND MERENA GALLERIES A COLLECTORS UNIVERSE COMPANY—NASDAQ: CLCT Box 1224 • Wolfeboro, NH 03894 • 800-458-4646 • In NH 569-5095 • FAX 603-569-5319 • e-mail: Bank Note Reporter • Numismatic News • World Coin News • Coins Krause Publications delivers your subscription online! What's Your Now you can access online the vital coin and paper money information you want. Read every issue right from your computer. 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