Paper Money - Vol. XLIV, No. 1 - Whole No. 235 - January - February 2005

I •••• Official J al of Society of Paper Money Collectors VOL. XLIV, No. 1 WHOLE No. 235 JANUARY/FEBRUARY 2005 41, ND CIVIL WAR / CONFEDERATE NOTE SPECIAL TOPICAL ISSUE 2 Rector Street, 12th Floor, New York, NY 10006-1844 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212 -312-6370 EMAIL: infoesrnytheonline.corn WEBSITE: srnytheonline.com 1P.V1-71 MME1a:: dill17111■111 NEMBER Stephen Goldsmith Scott Lindquist Our Outstanding Team of Experts Can Help You Get the Most for Your Collection You've spent years putting together an outstanding collection, and now you are ready to sell. Will the people who handle the disposition of your collection know as much about it as you do? They will at Smythe! Autographs; Manuscripts; Photographs; International Stocks and Bonds. D I ANA H E RZOG President, R.M. Smythe & Co., Inc. BA, University of London; MA, New York University— Institute of Fine Arts. Former Secretary, Bond and Share Society; Past President, Manuscript Society; Editorial Board, Financial History. Board Member: PADA. U.S. Federal 6 National Currency; U.S. Fractional Currency; Small Size U.S. Currency; U.S. MPG. MARTIN GENGERKE Author of U.S. Paper Monty Records and American Numismatic Auctions as well as numerous articles in Paper Money Magazine, the Essay ProofJournas Bank Note Reporter and Financial History. Winner of the only award bestowed by the Numismatic Literary Guild for excellence in cataloging, and the 1999 ['resident's Medal from the American Numismatic Association. Member: ANA, SPMC. Small Size US. Currency; Canadian Banknote Issues; US. Coins. SCOTT L i NDQUIST BA, Minot State University, Business Administration/Management. Contributor to the Standard Guide to Small Size US. Paper Money 6- US. Paper Money Records. Professional Numismatist and sole proprietor of The Coin Cellar for 16 years. Life Member: ANA, CSNS. Member: PCDA, FCCB, SPMC. US. and World Coins. ANDY LUSTIG has been dealing in U.S. and World coins since 1975, and has attended more than 2,000 coin I shows and auctions. His specialties include U.S. patterns,pioneer gold, and rarities of all series. He is a co-founder ofThe Society of U.S. Pattern Collectors, a major contributor to the 8th Edition of the Judd book, a former PCGS grader, and a co-founder of Eureka Trading Systems. Member: ANA, GSNA, CSNS, NBS, ANUCA, FUN, ICTA, and USMexNA. Antique Stocks and Bonds; US. Coins; Paper Money. STEPHEN GOLDSMITH Executive Vice President, R.M. Smythe & Cu., Inc. BA, Brooklyn College. Contributor to Paper Money ofthe United States, Collecting U.S. Obsolete Currency Financial History and Smart Money. Editor, An Illustrated Catalogue of Early North American Advertising Notes; Past President and Board Member, Professional Currency Dealers Association, Member: PCDA, ANA, SPMC, IBSS, New England Appraisers Association, US. Coins and Medals. JAY ERLICHMAN Contributor to A Guide Book of " U.S Coins andA Guide Book ofBritish Coins. Assembled and managed investment portfolios of U.S. coins. Employed by the Federal Trade Commission as an expert witness on consumer fraud. Member: ANA, PCGS, NGC. Ancient Coins and Medals. THOMAS TESORIERO Proffesional Numismatist for 38 years in New York. Ancient Greek and Roman coins, medieval, world gold and silver, paper money. Long rime member of the New York Numismatic Society, involved with the Membership Committee. Member: ANA, ANS, AINA, FRNS. Please call for our auction schedule. We buys sell, and auction the very best in Antique Stocks and Bonds, Autographs, Banknotes, Coins, Historic Americana, and Vintage Photography Why do so many collectors and major dealers consign to Smythe's Auctions? • Competitive commission rates • Cash advances available • Expert staff of numismatic specialists • Thoroughly researched • Flexible terms and beautifully illustrated • Record breaking prices catalogues 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 Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 2 751 5-23 31 Society of Paper Money Collectors, Inc., 2004. 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 $6 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 (fred@spmc.org). Original illustrations are preferred but do not send items of value requiring Certified, Insured or Registered Mail. Write or e- mail ahead for special instructions. Scans should be grayscale at 300 dpi. (pegs are preferred. . ADVERTISING • All advertising accepted on space available basis • Copy/correspondence should be sent to Editor • All advertising is payable in advance • Ads are accepted on a "Good Faith" basis • Terms are "Until Forbid" • Ads are Run of Press (ROP) • Limited premium space available, please inquire 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: Subject to space availabil- ity copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). With advance approval, cam- era-ready copy, or electronic ads in Quark Express on a MAC zip disk or CD with fonts sup- plied, may be accepted up to 10 days later. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover $1500 $2600 $4900 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 • January/February 2005 • Whole No. 235 1 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLIV, No. 1 Whole No. 235 JANUARY/FEBRUARY 2005 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: www.spmc.org IN THIS ISSUE FEATURES Civil War Change Shortage Gave Rise to Curious Makeshifts 3 By Fred L. Reed Money in the Civil War 31 By Jim Baker Who Are These Guys? 32 By Steve Whitfield and Ron Horstman (with additional research by Eric Newman) The Private Issue Notes of Keatinge & Ball 44 By Brent Hughes A North Carolina Wall Paper Note? 52 By Bob Schreiner Whose Portrait Is It? Daniel W. Courts or Jonathan Worth 54 By Jerry Roughton and Paul Horner Grading Confederate Notes and Bonds: One Man's Opinions 56 By Pierre Fricke A Cross Reference for Criswell to Thian 62 By Michael McNeil and W. Crutchfield Williams II Building a Modern Collector's Guide for Confederate Currency 68 By Pierre Fricke On This Date in Paper Money History 69, 71 By Fred Reed SOCIETY NEWS Information & Officers 2 5th Annual George Wait Memorial Prize Beckons 41 New CD Compiles Thian Info in Searchable Format 43 Letter to the Editor 65 Nominations Open for SPMC Board 73 President's Column 74 By Ron Horstman Authors Seek New Notes, Data 74 Money Mart 74 New Members 75 Deadline for George W. Wait Prize Nears 76 SPMC Librarian's Notes 78 By Bob Schreiner Editor's Notebook 78 Ad Index 79 2 January/February 2005 • Whole No. 235 • PAPER MONEY Society of Paper Money Collectors The Society of Paper Money SOCIETY Collectors (SPMC) was orga-OF 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 www.spmc.org . 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- hership 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 $30. 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 $600, $700 for Canada and Mexico, and $800 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 as avail- able. 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. PAPER MONEY COLLECTORS INC. -Mr', a im OFFICERS ELECTED OFFICERS: PRESIDENT Ron Horstman, 5010 Timber Ln., Gerald, MO 63037 VICE-PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 SECRETARY Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515 - 2331 TREASURER Mark Anderson, 335 Court St., Suite 149, Brooklyn, NY 11231 BOARD OF GOVERNORS: Mark Anderson, 335 Court St., Suite 149, Brooklyn, NY 11231 Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 Bob Cochran, P.O. Box 1085, Florissant, MO 63031 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 Robert J. Kravitz, P.O. Box 303, Wilton, CA 95693-0303 Tom Minerley, 3457 Galway Rd., Ballston Spa, NY 12020 Robert R. Moon, 201 Baxter Court, Delmar, NY 12054 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 APPOINTEES: PUBLISHER-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 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 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 Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 1929 NATIONALS PROJECT COORDINATOR Arri "AJ" Jacob, P.O. Box 1649, Minden, NV 89423-1649 WISMER BOOK PROJECT COORDINATOR Bob Cochran, P.O. Box 1085, Florissant, MO 63031 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items 60-Page Catalog for $5.00 Refundable with Order HUGH SHULL ANA-LM SPMC LM 6 SCNA P.O. Box 2522, Lexington, SC 29071 BRNA PCDA CHARTER MBR PH: (803) 996-3660 FAX: (803) 996-4885 FUN THE "SENSATION" STRUGGLE IN AMERICA. PAPER MONEY • January/February 2005 • Whole No. 235 3 Civil War Change Shortage Gave Rise to Curious Makeshifts By Fred L. Reed HI © I N SUMMER 1862 A CARTOON APPEARED IN THE BRITISH publication Punch which epitomizes the financial circumstances of the time. It shows a rebel dragging his brother over the precipice, the ties of Union snapped and the gloomy abyss of bankruptcy below. Both figures are teetering on the brink as the two wage mortal combat. The rebellious brother grasps his sibling in a head lock, steely-eyed ready to land a mortal blow to his brother's midsection. The other brother simultaneously readies to plunge his knife decisively into the back of the usurper. The cartoonist's per- ception that this mortal struggle would soon plunge both parties into insolven- cy was shared by the American public at large. Fearing the worst, people were doing their best to conserve their resources against that dark day of financial embarrassment. Specie, that is coinage, was hoarded and began to command a premium in relation to paper money. Such paper currency was of two basic types: (1) notes issued by state chartered banks; and (2) notes which had begun to be issued by the federal government a year earlier in From abroad, the English magazine Punch viewed the Civil War in its former colonies correctly as a fratracide which would plunge both sides into the abyss of financial collapse. PUNCH, OR TRH LONDON CHARIVARL—Josz 7, 1862. response to the need to raise funds to finance the war. Brokers quoted the premium at 4-3/4 percent in early February, 1862. By June this premium had doubled. As the disparity between this paper cur- rency and specie escalated, not only the valuable gold and silver coinage, but ultimately even the copper nickel cents disappeared from circulation. Almost over night $25 million in small change disappeared from the channels of commerce. Although many people had coins stashed away, they were reluctant to spend them even at the advanced price the coins brought in the marketplace fearing additional inflation would drive the coins' value higher and they would lose out. Brokers competed with one another to purchase additional amounts. Faced with myriad military exigencies, the general government failed to supply this want effi- ciently. Financial disarray was widespread. Public hoarding of small change reached overwhelming proportions. Much has been written about the diffi- culties in making purchases. Even in our increasing- ly cashless society, we can well imagine what our lives would be like today without small change. In 1862 it was much worse. Prices were fractions of what they are today for most items. A quarter was a good deal of money. Three cents would buy a newspaper or a stage ride. Five cents would buy a glass of beer and a lunch. Not getting one's change from even a small purchase was intolerable. The Mint at Philadelphia turned its coining 4 January/February 2005 • Whole No. 235 • PAPER MONEY presses to copper-nickel cents almost exclusively. The public on its side turned to the only generally available medium at hand and seized upon the postage stamps for small change. Merchants were forced to accept this substitute. The lower stamp values were similar to the lately circulating coinage denomina- tions: 1-, 3-, 5-, and 10-cents. Even the irregular 12-, 24-, 30- and 90-cent stamp values were better than most other substitutes or, worse yet, no change at all. The tenor of the times required some accommodation to the needs of the public. As 1862 wore on shopkeepers posted signs such as "postage MILINERY! MILINERYII Pr HE LARGEST STOCK OF MISSES' AND 1 Ladies' Hats, Flowers, Plumes, Ribbons of every description, white edged Velvet Ribbons, Bonnets, Hair Nets and fancy goods generally, ever brought to Western country just received at KHAPKER & BUSSING'S, nov. 25 No. 49 Main street N. B. -- Postage stamps redeemed in money. stamps received for goods and given in change for current money." Others advertised stamps for sale. The practice had become general by the time the leading publications began urging the federal gov- ernment to sanction this practice. With silver commanding 12% premium compared to currency, it's easy to see why. Public response was to run on the post offices, depleting available quantities and taxing the Post Master General's ability to supply the calls for postal purposes. This only exacerbated an Merchants, such as Evansville, IN dry goods merchants Schapker & Bussing, advertised they would accept postage stamps in the course of business trans- actions. already difficult situation since a year earlier the outbreak of war had caused the government to repudiate its then current postage stamps necessitating their replacement, and the enacting of internal revenue acts to help finance the war had called for supplies of addi- tional stamps for those purposes. The government contractors were unable to supply all these requirements. Sticky adhesive stamps changing hands in the market place soon soiled and collected in messy wads in the bottoms of pockets and purses. A contempo- rary observer, certainly not given to hyperbole, characterized the distress in the market place as the most important problem of the day. He said the small change panic "apparently absorbs the entire attention of the people to the exclusion of the war, the condition of the army, the new call for troops, the SHAWLS AND CLOAKS. A N ENDLESS VARIETY OF SHAWLS AND Cloaks Just received at SCHAPKER & BUSSING'S, nov25 No. 49 Main street N. B. – Postage stamps redeemed in money. The change shortage in summer 1862 affected the rich and poor alike. At right, the very real plight of public and merchant fell under the purview of edi- torial cartoonist Thomas Nast in Harper's Weekly, August 9, 1862, p. 512. PLEASANT. Under The aboveCireurnatanee, you are called upon to pay your Fare—and, hurry upl You have only Postage' Stamps in your pocket; and the Old-Fashioned sticky ones, at that! PAPER MONEY • January/February 2005 • Whole No. 235 5 doings of Congress, or even the policy to be pursued with regard to the Negro." Other expedients arose. Private individuals and merchants as well as municipalities and merchant associations began issuing scrip in small values. The New York Times remonstrated against both the private shinplasters and the circulation of postage stamps, which it termed "an annoyance, particularly in these dog days." Secretary of the Treasury, Salmon P. Chase, reluctantly addressed the matter in a letter to Congress July 14. He recommended "receiv- The U.S. postage stamps pressed into service as small change were a colorful lot. Engraved and printed by the bank note companies for the government, this fine series debuted in August, 1861, replacing the former issues which were demonetized because of the war. The blue one-cent depicts Benjamin Franklin (Scott 63); the rose three-cent, George Washington (Scott 65); the red brown five-cent, Thomas Jefferson (Scott 75); and the yellow green ten-cent, Washington (Scott 68); the black twelve-cent (Scott 69), red lilac twenty- four cent (Scott 70) and blue ninety- cent (Scott 72) have three fine engrav- ings of Washington, while the orange thirty-cent depicts Franklin (Scott 71). In July 1863 a black two-cent stamp depicting Andrew Jackson (see page 19) was added to the series. (Clifford Cole photos) ESTABLISHED 1880 • Stephen Goldsmith Past Prcsidrnt Stephen Goldsmith TEL: 212 -943 - 1880 TOLL FREE: 800-622-1880 IX: 212-312-6370 #167700 E-MAIL: info@smytheonline.com WEBS ITE: smytheonline.com 2 Rector Street, 12th Floor, New York, NY 10006 - 1844 MEMBER 6 January/February 2005 • Whole No. 235 • PAPER MONEY Indispensable to Anyone Who Collects Confederate Paper Money! Collecting Confederate Paper Money by Pierre Fricke. Published by R. M. Smythe & Co. Close to 700 pages, and over 500 illustrations! Criswell major type numbers retained. New variety reference numbers added. Latest Price information on key rarities. Detailed photos make it easy to identify rare varieties. Up to date rarity ratings for all major types and varieties. Insightful discussions of rare varieties, how they came about, and how they were discovered. Full color photos of all 72 major types, and color variations. Top ten condition census information includes serial numbers, grades and provenance. Dozens of previously unknown or unlisted varieties are included. Latest information about the number of notes issued of each type and variety where known. Illustrated grading guide. Drafts have been reviewed by twenty of America's leading dealers and collectors. We expect to deliver the first copies on or about June 15th in time for the Memphis International Paper Money Show. Th reserve your copy now call Marie Alberti 21 email us today! Dealer inquiries invited. We buy, sell, and auction the very best in Banknotes, Coins, Antique Stocks and Bonds, and Autographs The Herb and Martha Schingoethe Collection of Obsolete Banknotes Part 2 Including a Southern Gentleman's Collection of CSA and Southern Obsolete Notes and Many Other Important Numismatic Properties. March 23rd, 2005. New York City. Accepting Consignments Now Through January 17th. Is your subscription current? Call us today! Coming Soon! Smythe's Memphis 2005 Auction! Smythe is proud to announce that we ate the Official Auctioneer for the June 2005 International Paper Money Show, featuring the very best in Paper Money and Stocks and Bonds, including the Herb and Martha Schingoethe Collection QS Obsolete Banknotes Part Avoid disappointment. Consign early. Take advantage of the many opportunities to promote your collection well before this great sale! June 17th and 18th, 2005. Memphis, Tennessee. Accepting Consignments Now Through April 15th. This sale is held in conjunction with Unique Antiques & Auction Gallery. knnessee License ;2077; Auctioneers: Mike Willis ;4467 and Gilbert A. Bryant #2372 ' We buy, sell, and auction the very best in Banknotes, Coins, Antique Storks and Bonds, and Autographs Stephen Goldsmith Past President 2 Rector Street, 12th Floor, New York, NY 10006-1844 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-312-6370 Stephen Goldsmith a167700 E-MAIL: info@smytheonline.com WEBSITE: smytheonline,com ESTABLISHED 1880 7PAPER MONEY • January/February 2005 • Whole No. 235 Great Auction Opportunities! _ • ///:, /./.7 / ;/..."/%5;,/ , Ila Istre.1 Dollars ; //- II illIfilM11 Dab., 4/PIP //0 , .T%/ .4////... va-7i/eily■fliffmt ////r,, /,;;7/4., / 4;,:• A 7 ,„( PT),9,1,194.y.',1%,„„ •.„ , „ /////h, .r/fr' • A art 4 tURZETED Postage Stamps, 50 cts. 50"'^ 50 cts. W. H. Murphy, Stationer, 373 Pearl-st. elerrltri %to, "Pflarrr, "am, it.rad January/February 2005 • Whole No. 235 • PAPER MONEY . f ■••••••■,a \ Air Fail:Wss sos Poorsos &Atm .83otsthiag new ^sd nest, F resh W printed,rinted, ' waited de., anal *nil - Avg suppites ether's. bee Ittietabtes; VAN* pay%) is howls. Now 1ot Of the ion!. by the lets Ifs:jse Witathrip,, tit We by 4 Co, di Dearborn . • '',! .; 1 : ; ...............h.i. 1 :- • ,, 11. Generic envelopes to accommodate stated values of stamps were the first to appear. ing of postage and other stamps in payment of the fractional parts of a dollar." Congress remained in session an extra day to provide for the remedy. In one of its last acts before adjournment for its summer recess, it passed the legislation monetizing stamps. President Abraham Lincoln signed the legislation immedi- ately on July 17, authorizing the Secretary of the Treasury to furnish postage and other stamps for use as currency in payments to the United States less than $5. Despite its earlier outrage against this minute stamp currency, the New York Times reacted favorably. It hailed the passage of the stamp act "as THE (emphasis given in the original) solution to the problem." Even though the act required the Treasury Department to furnish the public stamps, it did not make them payable for dues to the government until August 1. The public, however, immedi- ately descended en masse upon the Post Office. Horace Greeley's Tribune reported that "no sooner was the passage of the act known than a rush for postage stamps began. Whereas stamp sales in New York on a normal day prior to the act's passage was about $3,000, the day after [passage] sales jumped to $10,000. The following day sales in New York hit $16,000 and three days later $24,000!" In its optimism and hysteria to employ the stamps in its purchases, the public had rushed thousands of dollars of these miniature "gum backs" into circulation despite their obvious disad- vantages. "To hand a New York stage driver his fare of two three - cent postage stamps on a wet day, to buy a newspaper on a windy street corner, to make U. S. Vastagt Stamp So CENTS. Said By Arthur, Gregory & Go, Statioeere SU Nevem Street. change hurriedly doing the '301303 '0 '011 A 'N 7S nuegug `thlacto •sloon Nurlff pun 09 ,..dota.u3 .dud %itIPTIM 113V5I'l 111, 44.1 U. S. •;, 50 CENTS POSTAGE STAMPS. .;. Postage Stamps. 50 errs. 8 Every Auction Lot is Now Available for Online Viewing... www.EarlyAmerican.com • 1.1) II If ;t1 ;-• 'te E471934:- „._ ttORTAMT4Wk Consign Your Important Material • Phone Dana Linett Today! MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1 000 Fractional 4-3/4" x 2-1/4" $20.50 $37.00 $165.00 $290.00 Colonial 5-1/2" x3-1/16" $21.00 $38.50 $175.00 $320.00 Small Currency 6-5/8" x2-7/8" $21.50 $41.00 $182.00 $340.00 Large Currency 7-7/8' 1 x 3-1/2 1 ' $24.00 $45.00 $200.00 $375.00 Auction 9 x3-3/4" $26.50 $48.00 $235.00 $410.00 Foreign Currency 8 x5 $30.00 $55.00 $250.00 $440.00 Checks 9-5/8 x 4-1/4" $30.00 $55.00 $250.00 $440.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 83/ex 14 1 /2" $18.00 $80.00 $140.00 $325.00 National Sheet Side Open 8 1/2" x 17 1/2" $19.00 $85.00 $150.00 $345.00 Stock Certificate End Open 9 1/2" x 12 1/2" $17.50 $75.00 $135.00 $315.00 Map & Bond Size End Open 18" x24 11 $70.00 $315.00 $570.00 $1295.00 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 Dy 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 i nex Type 516. DENLY'S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 PAPER MONEY • January/February 2005 • Whole No. 235 9 EARLY AMERICAN HISTORY AUCTIONS Sign Up to Receive Our Fully Illustrated Catalogs Free Online or Only $72 for a Full Year Subscription of Six Bimonthly Printed Catalogs AUTOGRAPHS • COINS • CURRENCY • AMERICANA • MAPS EARLY AMERICAN • P.O. Box 3507. RANCHO SANTA FE, CA 92067 (858) 759-3290 OR FAX (858) 759-1439 • Auctions@EarlyAmerican.com I Collect FLORIDA Obsolete Currency National Currency State & Territorial Issues Scrip Bonds Ron Benice 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Metropolitan Hotel. U. S. POSTAGE STAMPS. MC) CTS. 10 January/February 2005 • Whole No. 235 • PAPER MONEY *.LNITIC1111,1%VaTt ....413,T110:1 %KOLL:K.11MT 11KIAIS SVIT.TULT V 1104 111S13 XaELVX/ESSIVCI-XX'Aell Gent's Furnishing Store s 559 BROADWAY, Opposite the Nieman House, ALB•NY, N. V. U. s. POSTAGE 50 Cents. SIX BEST New Yoe MILLS SHIRT'S MAD" TO 0101211 •ND WARRANTID TO TIT, TON $1*• s.,AArts 25 cts POSTAOR SIULAVAPS, Wm. Robins. Eseelster 1gnvelopes, 40 & 51 Ann St. Merchants soon realized the virtues of the small envelopes for change and advertising purposes. (Kevin Foley photos) Merchants, like the Chicago City Railway Co., that had redeemed large quantities of stamps advertised their resale to the change starved public. Chicago Evening Journal, July 28, 1862. sums necessary in the ordinary affairs of life with the intrusion into the deci- mal system of such odd sums as those represented by the stamps only increased the vexations of life," and marked the stamps as the "worst circu- lating medium ever known in the United States," according to one observer. The public's euphoria of the day passed quickly. The grave drawbacks of such a poor change substitute became quickly apparent, especially to those concerns which were ultimately paid in this motley currency. Within two days of the stamp act, Hamden's Express urged in the New York Herald that the stamps be placed in small, neat envelopes especially made for this purpose, with the sum of the stamp denominations printed on the outsides of the envelopes. On August 3rd Murphy's, a New York printer, advertised it would supply postage stamp envelopes for 75 cents per thousand. Other printers in New York, Brooklyn, Jersey City and elsewhere quickly offered such envelopes for sale. One type was printed by T. R. Dawley of New York, who advertised he could supply "envelopes of all sizes, styles and colors, for enclosing the `Sticking Plaster Currency." Such envelopes were convenient, but ultimately failed to keep the stamps clean. No prudent soul could fail to open the enve- lope and count out the stamps. Another makeshift, pasting stamps on folded slips of paper such as Harvey Gridley Eastman and others favored, destroyed their future postal value. The runaway stamp sales could not continue indefinitely and Postmaster General Montgomery Blair urged local postmasters to restrict sales to the "normal levels existing" prior to the run on stamps. Even so, less than a week after the passage of the stamp monetizing act, the New York postmaster was ordered by Washington officials to cease supplying the stamps for currency, which he did on July 23. Even for postal purposes, patrons were restricted to no more than $10 worth of stamps. Soon large retail- ers were offering premiums to obtain stamps in quantity for use as change. The New York Times reported on July 24 that a restaurateur was offering three percent premium for stamps. Although it was illegal to charge a premium for stamps, additional firms responded by advertising their sale for currency purposes, too. Despite the constant warnings that stamps needed to be kept clean so as to remain suitable for prepayment of postage, one can visualize the impossibili- p. 9. 13" T'A. 0 E87.4%.A.P8 STA31:611 PorehheivesettstIaseite, . ' CurC400 'Mir RAILWAY' COMO?. bra' • ' PAPER MONEY • January/February 2005 • Whole No. 235 11 Ziartitc Postage Stamps. 1411 LIG IA II NIAVION & CO. Importors & Dealers in :Choice Family Gr000rieso I Corner a ThallIOS and Pelham strc-ctic, ; ADJOINING THE POST / OFFICE. OFFI 67;;(7 ra LONG'S 3J rieties," 766 So. Ord St. P1111.11.M.PHI A Philadelphia merchant pasted stamps on thin card- board with his business opposite the stamp. A. M. Kagin collection. (Fred Schwan electronic imaging) This made the stamp somewhat durable, but destroyed any future postal value. Another solution affixed stamps to slips of printed paper with the same downside. ex- H. K. Crofoot collection, courtesy Matt Rothert. (Smithsonian Institution) t17 of actually doing so. Stamps were crammed into pockets, stuck to the palm of one's hand or to each other. In addition to the small envelopes, some firms adopted the practice of pasting them on sheets of paper folded in half or on small cardboard chits. A stationer, Leeds & Franklin at 112 Broadway, New York City, sold mounted stamps on cards of its own design. "These stamps are inserted in inclosed cards, with raised rims around the edge of each stamp, which effectually protects them from wear and tear, and make them very con- venient to handle," according to a newspaper report. The stamps were offered to merchants at premiums ranging from one percent to two and one-half per- cent. Although these measures provided modest protection, such stamps were rendered postally useless. If for this reason and no other, these practices were not nearly so widespread as the use of the small stamp envelopes. Most stamps, however, continued to be simply passed from hand to hand. With no intrinsic value of their own, this stamp currency depended for its acceptance and circulation on its ultimate availability for use for its intended postal purpose. Soon stamps were proven to be a wretched and unfit currency substitute for small change. The federal government responded by printing specially prepared small notes with stamps as part of their designs. This Postage Currency, however, was much delayed, too. Wags of the day joked: "Can't change a dollar bill, eh? Well, I'm glad of that. I've had thirty-six drinks on it in three days, and it may stand a good deal of wear and tear yet." The humor of this situation was lost on most people. Those caught up in the throes of the situation understood the climate precipitating the New York Times story headlined, "An amusing quarrel concerning paper change." What happened was a broker refused to accept postage stamps in change from the driver of an omnibus. The pair argued and being unable to resolve the difficul- ty, the driver headed off in the other direction, eventually pulling up in front of City Hall. The driver took his case to the City Marshal. The rider contented that since the driver had a sign posted refusing stamps for fares, the prohibition should work both ways. The marshal took the side of the driver, and the rider took the stamps under protest. The rider threatened to sue the marshal and demanded to be transferred to his original destination for the fare he had already paid. The driver would not allow him to reenter the stage and drove off. The broker's loud protestations as he tried unsuccessfully to climb back into the stage drew a crowd of people in front of City Hall and a reporter from the adjacent New York Times Building. The New York Times editor found the situation amusing. It's doubtful the participants did. The quarrel took place in New York City Hall Park, immediately across Broadway from the Park Place Hotel, where inventor John Gault already had a room by early summer 1862. Perhaps he was one of the amused bystanders. Maybe not, but it is certain that Gault was already in New York before receiving ',Ay/ Ari 4,:r/ .1? e to///1 /yr& is/ w 12 January/February 2005 • Whole No. 235 • PAPER MONEY Printers in all the major cities, and plenty of minor ones too, vied for the burgeoning traffic in printing small change notes. Anyone who could pay the printing bill was a candidate for this unregulated issue of money. Two prominent firms in this trade were Louis Prang (opposite) of Boston and Ferd. Mayer of New York City (right). Images of mourning. , Services will take ohm:eat the Attorney-st. Church. JOHN DECKER, Chief IMP.. Ur All ir E D ...A CIII1CY BUGLER FOR AL CAVA WIT " regiment. Address BUGLER, Box (Nob 140 Tow Ones. ECY IIILLM.—ColtPORA-SMALL CURRN Uocis and merchants wishing to Issue small curre 0? bills will be furnished with wimples and em• Imates on ad- dressing the subscribers. If E it Li. Id A Y Xit a CO. thographers and Kngraters. DO ieultowit . New- , rk. SUARTIMOOTERS.—FINS TARGET RIFLES. with patent muzzles, bail starierr, earedges. he., from a !Arse 14ne makers. breech-loading risies, iii.1 ,4lif 0• d i aryin rides', , ' fog 140 07 ifiiilt):4 1 WALEZI.QC1ir 1 11ilros4w017 the encasedse stamp patent. He had set up shop at No. 1 Park Place seeking his fortune with his military-related patents and his new found business relation- ships with the other driven young men ensconced there. Gault's fertile imagi- nation had produced designs for several exploding artillery shells, which had received notice in the trade press, and the financial backing to bring into pro- duction to supply the wants of the Army. Obviously aware of the commercial difficulties of his time, the inventor turned his attention to the public hysteria over small change, and conceived his ingenious solution to the small change crisis in July. As I pointed out times over in my book Civil War Encased Stamps: The Issuers and Their Times, John Gault was insightful in anticipating needs. He was a quick study, decisive, in short, a man of action. Among the Gault family papers is a key missive, which he dispatched to his brother Henry explaining that he would not be available to spend the July 4th weekend with family members in Boston. It is dated July 1st and headed "1 Park Place." Gault writes: "Dear Brother [Henry], I have been travelling so much lately getting my new business started that I don't feel able to go to Boston as I expected to spend the 4th. . . . Yours, John." This letter was written in the week following the granting of the patent he shared with William V. Barkalow. Barkalow had sights on being a prime military contrac- tor. He had designs on Gault's exploding artillery shells, and the pair was out to convince military procurement officials of the superiority of their designs. Simultaneously his new enterprise — supplying a neat and efficient alter- native for the hoarded government small change to merchants for a modest fee — was conceived, patented and launched. It was icing on the cake. The Patent Law had been recently modified to expedite processing of design patents to encourage improvements in matters of "taste, form and artistic skill." Gault worked quickly. During the week prior to Wednesday, July 23, 1862, he met with 0. D. Munn and his staff at Scientific American to iron out the details of his Su olk dank. Boston, tor sale by BLAKII., No. 22, ants strut, Balboa. tf n FINANCIAL. %MALL CURRENCY NI U TAM) Ft130 at abort notice, In most elestant .1.•1 sty le at moderate tsrleen, by L. PRANG & CO. tl I Eng gird LitInagra►bera, doe 29 Ot 109 Ruination strut, Boston. I GABNOCIi. BIBBY it CO.. fw/ y9y/ "}(f/rA li)/er /etr ai4 .rwaleia/ip /4,04.vaftv(;)////fr,k /7?wlIfinii.reaWr 1/1 IA' •ter -4 4/41. rtr. &CO. 96 FULTOM 137. N.Y. 7/Al'// /1(11'7//1// / t1 rr/rr/ /7 . 16/e Pf Nee/ e TREAXI,RER. PAPER MONEY • January/February 2005 • Whole No. 235 13 Louis Prang called the fractional notes he printed SMALL CURRENCY in both his ads and on his advertising scrip. plan. A brief stroll across City Hall Park from his office at 1 Park Place brought him to their offices at 37 Park Row. It was relatively simple to obtain a Design Patent. His drawing was witnessed by Ed Brown and E. D. July. Gault paid Munn & Co. $35 for their services on July 22. Thirty dollars was for the patent itself; the remainder for Munn & Company's services. On July 23rd. Scientific American published receipt of the funds, and Munn & Co. registered his patent design claim in the District Court in New York City. According to the records of the U.S. Patent Office itself, Gault's claim to his unique invention was filed July 24. Gault claimed to have invented "a circu- lar metallic case, to contain a postage or government stamp, to be used for cur- rency, the configuration of the open face plate being as described and repre- sented." Three weeks later on Tuesday, August 12, he was granted a design patent, number 1627, for his "Design for Encasing Government Stamps." The patent was good for 14 years. Gault was not required to submit a model for his design patent, just two copies of the drawings. However, he went to the extra trouble. The patent model he devised is similar, of course, to the designs illus- trated on his filing papers. Its obverse (merchant side) bears the engraved mes- sage: "JOHN GAULT I/ BUSINESS I/ CARD. Its reverse (stamp side) has a 10-cent green Washington Stamp (Scott 68) in a frame with thicker rims and tabs than the issued pieces. It most closely approximates Figure 2 on the design sheet Gault submitted. Its existence has been known at least since 1959. Let's examine Gault's novel idea. The construction of his encased stamps is interesting. As virtually any item of manufacture, it consists of several parts. In this instance five distinct elements are joined together to form the encased stamp. These are: (1) an outer, wrap-around frame of thin brass with an opening in its cen- ter; (2) a thin piece of mica; (3) a cardboard circle around which the corners of the stamp is wrapped; A bewildering array of small change notes was rushed into circulation. Some, like this 50-center printed by Ferd. Mayer and issued by an upstate New York agricultural society, employed patriotic motifs such as this rather crude image of the President, Abraham Lincoln, to gain acceptance or support the war effort. ati 0 CITY RAILWAY COMP'Y FOR 12 FAus exca,..„ Other makeshifts also entered circula- tion as small change. In Chicago card- board transit tickets of the Chicago City Railway Co. were also accepted in trade by the public and most local mer- chants, alike. 14 January/February 2005 • Whole No. 235 • PAPER MONEY ( TWENTYFIVE.CENNS ) ) 7, -;,/, ,,,,,,.// ,:,,, /,...6,;,,,,,, :hi,vd.,',,A, ,,,,„,,„//i,,, : -,-,,,,,/,/,-,, ,,,,/,,,,Ø.,,,,,,,, ,,7 - , -. , ,:.,.-I'.,- • . -,.p.4-t i .5--; ., . OA/La Y-- a..12--.)-vz-ei:-11-0 ,....... COM iltraCyteo FIVE . CENI'S //,,/reao,/,14, 44. / /Ci/A,A . 1, //zi,/;1e17. hakwv 111,0i 't ♦-- NE" I) h reirl FORE E 4/. 0 1 0 ..t•.‘ .,Dollars• sl urre,„ „t , _ "4 Lille when-prm.; ■■■■1 it SW"' INHEII.L. GO OD F 0 Ft 2 C ts., Mathews & Bro., Dretri ,u, 266 t; RAND ST It EET. Thousands of small denomination notes sprang up almost overnight, initially bringing some relief to change-strapped commerce. But soon the bewildering mass of questionable notes brought cries for suppression of such shinplas- ters. These notes were issued in a variety of denominations, sizes and designs. Many were worthless and fell to a loss to their final hold- ers. Ikehvbdan r”, lkyro 40-- ---T /- Vtt4,--, ji\ 1 — — . ). A 1 LIZ* . ..;,''..-',• 4 "...4. ____:4,1ps, r./1 rv. ----=‘0 ')' lorj --=-- .-`----- w ( '1Y—Pli-Trr) ;F '`-...e.11',1 06 :21xit.„7 , ...... = . . . • , , _ - »- 2/V)(7717 r.-41 41/7 171/47/7/////7/7/7,4017, . (4) a circular disc of thicker brass on which a message is embossed; (5) a U.S. postage stamp. Photo buttons, of the type patented by Humphrey Copeley and R. E. Hitchcock, and marketed ubiquitously by Abbott & Co for Scovill were already a common item of commerce, having been frequently employed dur- ing the presidential campaign of 1860 and thereafter. Holding small tintype pictures or engravings, such brass containers frequently were holed for sus- pension, studded for use as buttons, or fastened by pins as decorations. Gault's case is not much dissimilar from such photo buttons. His claim was not for a button per se, but rather he claimed "an invention new and original [for] a circular metallic case, to contain a postage or government stamp, to be used for currency." The precise wording of his claim shows the influence of the Munn & Co. patent attorneys, reflecting as it does the precise wording of the July 17th law which monetized "postage and other stamps." These "other" stamps might have included the Revenue Stamps authorized by the Internal Revenue Act of July 1. Although no regular issue encasements contain these revenue stamps, their absence is due to their inavailability at the time of encased stamp manufacture. The Revenue Act also limited, a sanction not lifted until December 25, 1862, use of these stamps to payment of the tax upon the particular article or instrument specified on the stamps' face. Bids to supply the revenue stamps were not advertised for until August and the contract printer, Butler and Carpenter of Philadelphia, did not supply many of these issues until late in the year, 1862, with large quantities becoming available only still later the following year. Gault's "Stationery Design" as it was later classified by a Patent Office PAPER MONEY • January/February 2005 • Whole No. 235 15 Nickel CentiL The United Stiles Gazette (Philadelphia) says :— " The mint is now running its entire force upon nickels. The cost of making this insignificant coin is nearly as much as the cost of making doublo•oogles. The only difference is that the latter coin is weighed and . adjusted, piece by piece. Tho nickels are ex- empt from any such close manipulation. The labor daily done at the mint, if expended upon double- eagles; would produce $40,000 per day. Upon nickels, as it is now expended, the results are but about twenty-five hundred dollars per day in nickel. When the currency question is regulated and i.pecie comes forth from its mauy hiding-places, nickel cents will be like the locusts of Egypt. They will be so abundant as to constitute a nuisance. Except for convenience In doing retail business, they are of small value. In small sums each nickel represents the hundredth part of a dollar, yet it is not intrinsi- cally worth even that. Nickels cannot be used as legal tender, nor for exportation, yet a fictitious value is given to them by speculation that is really culpable. To produce them in sufficient quantities, the • nickel-coining machinery of the United States mint is running even into over-hours." clerk, was for a metal frame similar to those devised by Copeley, Hitchcock and others, except for the single opening through which the stamp was visible under a mica pane which kept the stamp clean and safe. Mica is not familiar to most modern readers, but it was a commonly employed mineral at that time. Sometimes incorrectly called isinglass, its chief use was in heat resistant win- dow panes in the stoves of that day. Because of this mineral's perfect cleavage, mica "books" could be split cleanly into sheets or layers. These clear sheets of paper thick mineral were durable, flexible and elastic enough to serve Gault's purposes well. Since no back opening was necessary (unlike the political pieces which permitted depicting a vice presidential running mate in the 1860 political pieces), a plain brass disk was all that was necessary for the closure. In this con- figuration Gault's encased stamp cases resemble the gilt buttons produced by Scovill Manufacturing Co. and other large button companies for military and similar uses. A quick comparison with any of the multitude of different Scovill- made buttons of that day will quickly confirm this. This led an earlier writer to wax eloquently: "by comparing the backs of encased stamps with the backs of their [Scovill's] large buttons, we find the same smooth, round folding of the front disk over the back – evidence of perfect, well-finished work by the same machine, the same workmen, and the same firm." This can be observed per- fectly well by the examination of Scovill-made buttons of the period. Gault's design patent illustrates six similar faces in as many sizes, all with similar shield-shaped openings and wing tabs to left and right. His two backs are plain. It is likely Gault anticipated vari- ous sizes for his denomina- Unable to coin silver and gold for circu- lation, the U.S. Mint turned its entire attention to the copper nickel one-cent coin. Although prodigious efforts were expended to produce these pieces, they scarcely met demands. Soon even these pieces were bringing a premium in the marketplace, one percent by summer 1862, although their intrinsic value was much less than their face. This was a convenience premium. Once again mer- chants rushed into the void and issued copper and brass tokens and store cards. Many were anonymously issued cent-sized patriotic tokens, but conve- nience in trade and advertising suitabili- ty combined to make these pieces popu- lar choices for thousands of merchants. These storecards were also frequently cent sized, but some larger pictorial pieces such as M.L. Marshall's store card above also appeared. An active trade sprang up for their sale and ads began to appear in the newspapers of the day, such as that of A. Ogden shown at right. Copper Tokens or Medals, Blanks, Dies, Businc44 Cards, and Collections furnished cheap and in goat vats. sty. Also National Union League Badge", Army Corps Badges, Ns. `Waal rules League Pins, &c., at lowell jobbing prices. A. OGDEN, No. 1 Park Place, New York' Room No. 18. NO PRIWIT.D SPECIFICATION 71: r C- P41. • Fij ..2 . 0-42 lai/.14- fa-.4,43 d /Pie• 0 0 0 sTATIoNERy. _ The original design registration sheet for John Gault's encased stamp bears the written notation that it was received and filed in the Southern District of New York (New York City) on Thursday, July 24, 1862. It also bears the hand written notation that it was originally classified as a Printing Design and a label that it was subse- quently reclassified as a Stationery Design. It was, of course, neither use that Gault anticipated with his multi- form design when he affixed his signa- ture to his patent application. Patent No. 1,627, August 12, 1862. (U.S. Patent Office) Customarily, new patents were published in Scientific American as they were approved. In that era, incidentally, all patents were granted on Tuesdays. Gault's encased stamp patent, No. 1627, was a design patent numbered independently from mechanical patents granted that same day. 16 January/February 2005 • Whole No. 235 • PAPER MONEY ►ESMNS. 1 ,624.—S. D. Arnold (assignor to P. P. Corbin), of New Conn., for Design for Lifting Handle Plate for &e. 1,625.—J. W. Burt, of New York City, for Design for Or- namental Anklet. 1,626.—T. W. Evans, of Philadelphia, Pa., for Design for a Trade Mark. 1,627.—John Gault, of Boston, Mass., for Design for Post- . age Stamp case. 1,628.—Constant llesdra, of Brooklyn, N. Y., assignor to W. H. Core and A. Lorenz, of New York City, for De- sign for the Base of a Show Case. tions not unlike the displaced coinage. However, all the issued pieces are approximately 24 millimeters in diameter, including the full range of denomi- nations he had made up for himself. The issued stamp cases are slightly smaller than a quarter dollar in diameter and thickness, but weigh much less. The quarter is 24.3 mm in diameter. In thickness, 16 encased stamps stack to an inch, compared to 14-15 quarters. A dozen encased stamps weigh an ounce. So they are much lighter than a quarter. Slightly over 4.5 quarters weigh an ounce. The press employed to manufacture Gault's encasements has been described as an "old fashioned flat-button machine." The press forced the thin brass wrap-around frame to encircle the edge of the advertising disc, securing it solidly. It is interesting to note a contemporary account of such a machine process employed at that time by Scovill: The melted red-hot liquid is turned into molds, making narrow plates say 15 or 18 inches long, 4 to 5 inches wide and half or 3/4 inch in thickness. These plates are then rolled down to the proper thickness for buttons between cylinders which are nearly a foot in diameter. Then the buttons are cut out. Then the buttons are stamped in a mold [embossing die]. The mold [emboss- ing die] gives the figures, letters, or whatever is desired for the outside of the buttons, and gives them the flat, convex or concave shape. ... They are then gilded by clipping them in an amalgam of gold and mercury or quicksilver and then made smooth and bright. Everything is done by machinery. Every process upon the buttons is done in an instant, as it were. PAPER MONEY • January/February 2005 • Whole No. 235 17 CRUTCHFIEL D'S CURRENCY Col. Crutch Williams, CSA Life Member SCV, ANA, SPMC, TNA PC DA Confederate States of America Republic of Texas & Mexican Revolution write CRUTCH WILLIAMS PO Box 521 Kemah, TX 77565 Phone: 281 -334-3297 Cell: 281 -455-2511 Website: www.CrutchWilliams.com Email: Crutch@houston.rr.com John Gault // Business // Card is engraved on the back of the original patent model for his encased stamps. This custom made stamp enclosure differs sig- nificantly from the mass-produced pieces. It is approximately 10 percent larg- er in diameter, with thicker tabs and frame rims. Although the law specified "postage and other stamps" of the U.S., someone has written "Postage & Revenue Stamps" on the Form 2-225. (Bowers and Merena photos) City Items A SUBSTITUTE FOR COIN -- A friend has shown us a light circular metallic sheath of white metal for postage stamps of large and small denominations, the face of the stamp being covered with a transparent sheet of mica. It is slightly smaller in diameter than a quarter of a dollar, and is designed to take the place of small silver coin. The metallic back is to be stamped with the advertisement of the houses ordering them. Their price to purchasers is $20 or less a thousand; to the general public, only the value of their face. The idea is not a had one. January/February 2005 • Whole No. 235 • PAPER MONEY18 N o .• . 1862 (s6z31\i\k 19.1A,/1 ig a t • rated 4, • ._fira" ,t4, 1862. Within weeks of its patenting, Editor Horace Greeley took notice of Gault's invention, calling the small change substitute "not a bad" idea. New York Daily Tribune, August 30, 1862. (Illinois State Library) Substitute stamp case for button, silvering for gilding, allow for the inser- tion of the cardboard spacer, stamp, and mica disc, and one has a good under- standing of how Gault's patent cases were produced. Another contemporary view of the Scovill operation pegged its produc- tion capacity at 216,000 brass buttons daily. Employment was 53 persons in the brass rolling mill and about three times as many in their brass products depart- ment. It is thus clear that Gault's specialized button product would not have taxed the manufacturer overly much. Production of the encased stamps, howev- er, could not have proceeded nearly so rapidly as military buttons due to the fragility of the mica insert, and the stamp/cardboard insert. It seems reasonable that the cardboard may have served as a "shock absorber" to protect the mica from the shock of the case closing as much as in holding the stamp in place. The encased stamps present two distinct types of obverses (advertising side of the encased stamps). The initial pieces circulated by John Gault, as well as those subsequently produced for John I. Brown and the Irving House, have plain borders. This is the Type I obverse. The Type II obverse is used on all other issues, and is differentiated primarily by a border of approximately 100 raised balls surrounding the advertisement, set within the recessed ring at the circumference of the advertiser's metallic disc. Likewise the issued pieces present two distinct types of reverses (stamp side). These are the normal or "plain" (flat) wrap around design and the so- called "ribbed" or grooved wrap around. Much useless speculation has appeared concerning the purpose of the ribs or grooves. As can be readily seen from Scovill buttons of the period, such parallel cor- duroy patterns were normal for backgrounds on military buttons of that period. On the shiny military buttons, these grooves presented a less reflective (hence darker) background for the main button device, setting it off aes- thetically. A similar artistic treatment is common to engravings for dark backgrounds. On encased stamps such grooves serve no similar purpose. Pieces displaying these grooves (Type A reverses, i.e. stamp side of the encasements) were merely punched from leftover rolled, brass button stock. (Note: the grooves appear over the entire face of the wraparound, not just on the half moon PAPER MONEY • January/February 2005 • Whole No. 235 19 1 s ' A■14?' . • , . , " ; • AT. . . \ rt, 4544261'' otinft4, : telet. 4\,,,',..:.,,..y...gt .:0,.,,' i ,..:: ..., . ,,,,.■ t ■ .. ...„ -1 ; ;4? . . 4, ..,,, 1j 7 . ...4 ..1.., tabs as some authors have erroneously stated). Once Gault's product got into general production, flat, rolled brass stock was used for these (Type B) wrap arounds. Some pieces are also found silvered and this has also caused additional useless speculation in the past. It was normal for brass military buttons to be gilded or silvered, although not all buttons were produced so expensively. Initially Gault felt it necessary to silver his encased stamps, too, since both sides were silvered. He felt this made them look more like the silver change for which they were a ready substitute. Since the silvering wore off quickly he soon concluded that such an additional costly process was unnecessary. It is plain that once Gault's patent was issued, he wasted no time securing his first order. Horace Greeley, who had originally urged use of stamps for small change but reversed his position when the fate of that medium in actual circulation became manifest, was quick to acknowledge the benefits of Gault's New Metallic Currency. On August 19, only a week after the government issued Gault's patent, Greeley's New York Tribune took notice of Gault's plan. He called the encased stamps a "happy solution to our common plight." Scientific American published the granting of Gault's patent August 30. That same day, Greeley called attention once again to encased stamps in circulation and reprised their virtues for his readers. Such commendation from the influential New York daily newspaper edi- tor is interesting. The same law of July 17 which monetized stamps for use in payment of dues to the United States from and after August 1, also should have prohibited the competitors to Gault's "New Metallic Currency." The precise language of the law reads: "That from and after the first day of August, 1862, no private corporation, banking association, firm, or individual shall make, issue, circulate or pay any note, check, memorandum, token, or other obliga- Presenting a uniform "neat and handy" appearance, a denominational typeset of Gault's small change store cards display Benjamin Franklin on one- and thirty-cent values, George Washington on three-, ten-, twelve-, twenty-four-, and ninety-cent denomi- nations, and Thomas Jefferson on the five-cent issue. The two-cent Andrew Jackson issue is enigmatic because the stamp was not issued until after the change crisis. The tokens' obverses bore ads such as TAKE AYER'S PILLS. Massachusetts proprietary medicine manufacturer J.C. Ayer was John Gault's principal client. (Dr. Wallace Lee photos) tt- • ik . . t- - -k„5.- 14 In summer 1863, the government introduced a two-cent stamp depicting General and President Andrew Jackson. Several rare specimens of encased stamps with this stamp are known. 20 January/February 2005 • Whole No. 235 • PAPER MONEY Press reports indicate the possibility of the Federal Government adopting Gault's expedient for remedying the small change crisis was real. Was it? Perhaps the notation on Gault's Patent Form 2-225, "Postage & Revenue Stamps," is a clue. Chicago Evening Journal, October 31, 1862, p. 2. . . S?AWV AND MICA CtURENEY.T-It ie sta• ted that the Commissioner of Internal Rev- enue is disposed tt1 think the tnica cameo rot stamps, designed to facilitate their use a. currency, well salted to the purp4Ise in' tended, and sufficiently cheap to justify tin Government in their adoption. They an but little larger than the nickel cent, any very clean and beautiful in appearance. tion, for a less sum than one dollar, intended to circulate as money or to be received or used in lieu of lawful money of the United States." On conviction, the penalties pro- vided by the statute were a fine up to $500 and/or imprisonment up to six months. It seems clear that Congress intended to prohibit the fractional shinplasters and the proliferating tokens and store cards. What is arguable is whether Congress would have con- sidered the very kind of currency issue Gault contemplated forbidden. Sanctioning circulating stamps is one thing. Circulating stamp tokens with pri- vate advertising messages would appear to be another thing entirely. Yet Gault received the government's tacit approval when his patent was granted less than four weeks later. Gault wasted little time in instituting his plan once his patent was granted. In addition to the military buttons Scovill was turning out by the thou- sands, the firm was also producing a wealth of photo medals marketed through Abbott & Co. in New York City and throughout the country via advertise- ments in the prominent periodicals of the day. These were the natural offspring of the popular campaign ferrotypes the firm had produced for the 1860 general election. The popular subjects of the day were George Washington and various of the Northern generals. In size, shape, and design they are very similar to Gault's encased stamps. It was easy for them to convert machinery and dies to Gault's product. John Gault's initial output had grooved frame, Type A wrap arounds. This first emission was overwhelmingly five- and ten-cent ribbed (grooved) stamps: i.e. Reed JGO5RB and Reed JG1ORB. Although three-cent and one- cent stamps were the most commonly available, he practically eschewed these denominations. He was creating small change for circulation. Replacements for In Chicago, and perhaps elsewhere, die cut circular cardboard disks called "change checks" were put forth as a small change remedy. Both the local newspaper, the Chicago Evening Journal, and a Clark Street printer, S.S.Millar, produced the pieces (right). These items were advertised in the Chicago press in mid - fall 1862 in com- petition with John Gault's encased stamps which had just reached the city at the time. EVERY DENOMINATION or Chang-e. Checks; • PIMITZ111 AT The Evening Journal (Moe,' BO Dir.A...itssourt Void in your "dors frs tin! country. rant ebrcits. ROUND CHANGE CHECKS, ttZE OF HALF A DOLLAR, ADIUTTAII )Y ALL TO IAN • TCE CFST 0:14U:CE ISISITELD. Price $4.00 per First Thousand, 0.50 for tub Addltisnal Thousand. 8. VITT.T.Alt, No. 63 Clark Street, Chicago.won BANK NOTE REPORTER ituoriftto* Hotel Reservations Please call the Holiday Inn O'Hare directly at (847) 671-6350 and specify rate code "CPM" to obtain the special $99 S/D Chicago Paper Money Expo rate. PAPER MONEY • January/February 2005 • Whole No. 235 21 You're Invited to the... 11th ANNUAL CHICAGO PAPER MONEY EXPO - Featuring STOCKS and BONDS '05 Separate Auctions by Lyn Knight and Scott Winslow Thursday, Friday, Saturday, Sunday March 17-20, 2005 Holiday Inn - O'Hare - 5440 North River Road, Rosemont, Illinois The Chicago Paper Money Expo, featuring two separate major auctions is sponsored by Krause Publications, the World's Largest Publisher of Hobby Related Publications, including Bank Note Reporter & the Standard Catalog of United States Paper Money. For more info about this show and others, visit our Web site at www.collect.com/shows * 100 Dealer Bourse Area * Rare Currency and Stocks & Bonds * Paper Money Auction by Lyn E Knight * Stock and Bond Auction by Scott Winslow * Society Meetings * Educational Programs * Complimentary Airport Shuttle Show Hours Thursday, March 17 2 pm - 6 pm (Professional Preview - $50) Friday, March 18 10 am - 6 pm Saturday, March 19 10 am - 6 pm Sunday, March 20 10 am - 1 pm (Two day pass valid Friday and Saturday: $5.00, Free Admission Sunday) Bourse Information: Kevin Foley P.O. Box 573 Milwaukee, WI 53201 (414) 421-3484 • FAX (414) 423-0343 E-mail: kfoley2@wixr.com it e t n a g le e. d , ,e Scaucn-t ov Crunr.Wcx.■—Plilladelphia, is it seems, is not only aMicted,with a scarci• le ty of small change, but jots but little cur- ie reney of any denomipatIOn below tWenty iy dollar bills in circufittionl The Ledger says: One of one"greateat inconvienees in trade now, auirfor some weeks past, is the at almost unisernal scarcity of currency—net the tractienal parts ot a dollar, but currency of all denominations up to t20. The banks a. have it not, and to meet the demand exist- pg for it several of our prominent brokers six Months, and a pert of the tune In n crowded dungeon, and deprived of light and air. A NEW CEREENCT:...1 new plan for ob- viating the small change trouble has been suggested and is being carried out by par- ties in Connecticut, which seems about the best expedient to adopt midi we come back to the good old times of gold and silver. The small stamps now in use are Incased In a small white metal covering, with a mica face, so that their denomination is easily seen. The whole is then of exactly the same shape, though not Rs large .or thick as a quarter dollar: and is as handy •in every respect as ordinary silver change. It can be furnished at about five per cent. pre- mlutn. An effort is to be made to induce the Treasury Department to adopt this style of currency, in preference to the small ails, which, it Is argued„ being printed on inferior paper, wIllsoon become dirty and ragged. 22 January/February 2005 • Whole No. 235 • PAPER MONEY PROPOSED NENY POSTAL CURRENCY.—A Washington correspondent says that parties in New England pro- pose a new style of postal currency. It is to inclose tLe Post Office (or postal currency) stew' , hi a circle of white metal, covered by a piece of mica making a circular metallic case with the stamp protected from the wear and tear of use. It has been approved by all who have seen it. It is stated that, at the present rate of issue of the postal currency, It will take eight years to bring out the fifty millions authorized by Congress. The Inventors of this new style of cur- rency propose to get up the stamps themselves at their own cost if allowed to issue these metallic currency. 'They think that .by employing the button factories of New England they can very nearly supply the demand at such an advance as will be satisfactory to the bankers and to the public. By mid-October John Gault had been joined by Joseph Kirkpatrick. By remarkable coincidence articles appear- ing in the Chicago and New York papers on October 18 indicate that the federal government was considering adopting his patent encased stamps. Above right, "Parties in Connecticut" refers to Scovill Manufacturing Co. a large button and brass stamping firm in Waterbury. Chicago Evening Journal, October 18, 1862, p. 1. (Illinois State Library) It is likely that the "Washington correspondent" was a Munn & Co. staff lawyer who had approached the IRS Commissioner on Gault's behalf. Here Scovill is identified as "parties in New England." All these makeshifts still failed to supply the need for low denomination notes, as the article "Scarcity of Currency" attests. This cry- ing situation was only eventually met by the widespread release of the federal government's Postage and Fractional Currency. Scientific American, October 25, 1862, p. 259. (Dallas Public Library) those two denominations were the most critical. Although silver three-cent coins and copper-nickel one-cent coins were becoming scarce, they were the last to be hoarded and bore the smallest premiums. These small government coins were the less "dear" in practical terms. Gault's initial August output of this first order was about 25,000 pieces, which he offered to the public on a cost-plus basis. The convenience of Gault's medium appealed universally. The stamps expressed a recognized value. The public was already conditioned to accept this substitute and had shown it would also accept its limitations. Now, in Gault's stamp cases, the stamps were pro- tected from deterioration. Their denominations were still clearly seen. The cases were uniform and round, and of a convenient size to facilitate their use in trade. In their silvered, brass cases Gault's coinage substitute was every bit equivalent to the hoarded government coinage. Whether their issue was pro- hibited by the strict construction of the act monetizing postage and other stamps was a moot point considering the financial dislocation of the day. Gault's substitute was much preferred to the heterogeneous paper scrip of questionable value being passed off on the public. Gault's case preserved the stamp's integrity as a postal document better than the other makeshifts as yet supplied. In the absence of the yet unavailable federal Postage Currency, they perfectly remedied the absence of the hoarded coinage. The public's reaction to this neat and clean coinage substitute was the same as the newspaperman's. These stamp store cards were readily accepted as change and merchants offering them stood an excellent chance of being patronized. Is it any wonder that Gault was hailed for his ingenuity and that his new metallic currency was readily embraced? Is it any wonder the encased stamp won the sobriquet as the "happy solution to our common plight"? Gault's five- and ten-cent encased stamps were natural sellers. When he first sought to market his small change, he had to look no further than his own Curious encased stamps have been identified by collectors over the years bearing uncurrent stamp designs such as the two-cent Internal Revenue stamp (Scott R-2) at top, or the 1851 Series one-cent stamp (probably Scott 7) at center, the Series 1861 10-cent enve- lope stamp at center, the Series 1857 10-cent stamp at center, or Series 1851 10-cent stamp at bottom. Collectors should be wary of such pieces since many encased stamps have been pried open and doctored to improve appear- ance or salted to create varieties over the years. PAPER MONEY • January/February 2005 • Whole No. 235 23 doorstep. He produced pieces in large quantities for sale to merchants at a pre- mium as a convenience money with which to transact their commercial busi- ness. He had solved the chief drawbacks of the sticky gum backs. Careful analysis demonstrates Gault's (hypothetical) business plan: (1) he produced JGO5RB and JG1ORB for sale at a premium (August, his cards) (2) he produced IHO5RB and IH1ORB for sale to Irving House (3) he urged support of his plan in the press through publicity/word of mouth (4) he produced BT03, BT05, BTIO (non-ribbed pieces for John I. Brown) (5) he produced ACO3LA and ASO3LG (no-ribbed pieces for J.C. Ayer) he produced AS SM (1-, 3-cents) he produced AC SA (1-, 3-cents), AP (1-, 3-cents), AS MD (1-, 3-cents) (6) he produced JG05 and JG10 (September, non-ribbed pieces for himself) (7) he produced KG05 & KG10 (October, non-ribbed pieces for he/Kirkpatrick) (8) he urged IRS adoption of his plan, which Treasury Dept. considered (9) he advertised encased stamps in newspapers (November) (10) he produced the other encased stamps (various dates, additional customers) 5-, 10-cents for change-making (CO, EM, IH, JG, KG, SA, TH) 3-, 5-, 10-cents balanced issue (BC, BE, BK, BT, BU, LT, ME, SB) 1-, 3-cents for advertising (DO, DR, EV, TA, WH) 1-cents for maximum exposure (AB, BA, CL, NA, ST) H003, MI05, NO, PE03-05, SH03-05, WLIO The response to Gault's initial order was phenomenal. His September reorder of his own encased stamps (Reed JG05 and Reed JG10) was upwards of 100,000 pieces. One of the interested parties was the federal government itself. Apparently Gault, or more likely his agents Munn and Co. approached federal officials with such a plan. It is worth examining the possible scenario that the U.S. government might have been induced to adopt Gault's small change mea- sures, since as incredible as that sounds, notices in the press indicate that such a "trial balloon" went up for at least several weeks during the fall of 1862. This may be the most incredible part of the unfolding encased stamp saga. One wonders what the government might have chosen to advertise: INSURREC- TIONS ARRESTED AT EARLIEST POSSIBLE OPPORTUNITY! In autumn 1862, the public wouldn't have believed it! The first notice that something of the sort was under consideration was the Oct. 17 report out of Washington published in the New York Times the following day. Sourced to the New York Times Washington correspondent, it appears to indicate that federal officials were examining Gault's proposed cur- rency as an alternative to the small fractional bills which were then being issued by the government. The notice is shown on page 24. Precisely how the encased stamps came to the attention of the federal official, Revenue Commissioner George S. Boutwell may never be precisely known. Although fellow Massachusetts residents, a search of the IRS correspondence during the time in question revealed no extant record of correspondence directly between Gault and Boutwell. A former patent attorney, Boutwell was also a close friend and political ally of James Cook Ayer, Gault's principal client in the encased stamp venture. Boutwell had a long and distinguished public record, including two terms as Governor of Massachusetts. With his background and experience, Boutwell was an excellent choice to examine Gault's small change expedient on behalf of the government. The Internal Revenue Service was created by the Act of July 1st. Boutwell entered upon his duties as commissioner July 12. His first respon- sibility was to set up the bureau. His immediate problems were myriad. His duties included carrying out the newly enacted laws and supplying brand new stamps for the multitude of documents and articles requiring payments. These were onerous enough without multiplying his obligations to include solving the change shortage, too! From the very beginning, however, he had also been tasked by Secretary of the Treasury, Salmon P. Chase, to work out the details for implementing the 24 January/February 2005 • Whole No. 235 • PAPER MONEY Treasury Secretary Chase expected a great deal in a short time from Revenue Commissioner George S. Boutwell (above). How Gault's encased stamps came to his attention (below) is a mystery. Boutwell was a political ally of James C. Ayer, and also a former patent attorney. Either con- nection could have sparked interest in Gault's invention. (New York Times, October 17th, 1862. Illinois State Library) legislation of July 17 which monetized stamps. Chase, too, had a million prob- lems, of which "small change" was — well — simply "small change." With runs on postal stamp supplies, the lethargy in introducing the Postage Currency, and the squabbling going on between his department and Postmaster General Montgomery Blair's, Chase assigned Boutwell the equivalent task of a "quick fix." On his part, Boutwell considered his midwestern boss rather dull wit- ted, slow of mind and rather preoccupied. Boutwell had a much higher opinion of himself. If the New York Times report is to be believed the matter in question before Boutwell concerned the sanction of encasing revenue stamps. It is extremely intriguing that the report should specifically note "metal cases for revenue stamps" since the patent office tagging accompanying Gault's patent model makes reference to revenue stamps directly, too, and the act monetizing stamps passed on July 17 did indeed embrace "postage and other stamps of the United States." It is also known that at the time in question, the Treasury department was indeed considering aborting the paper fraction- al currency project and supplanting the Postage Currency "with a currency based on the issue of revenue stamps," at the suggestion of Secretary Chase. Such an issue would serve several purposes. It would disentangle the fractional currency from involvement with the Post Office both in the public's and official mind, and it would reaffirm the government position that paper currency was a means of raising revenue to prosecute the war effort. Of course, the idea was ultimately abandoned in favor of new legislation passed March 3, 1863, which provided for the issue of the Fractional Currency. The Ayer connection is worth exploring. The Revenue Acts placed taxes on a wide variety of articles. In fact the greatest portion of Boutwell's time and energy in late summer and fall 1862 was formulating the schedules and deter- mining rates for the various classes of goods. Manufacturers and merchants were in a real quandary over how much excise was to be exacted on the various items. Newspapers of the day are replete with numerous items listing the tax decisions of the Treasury agents. As one of the leading vendors of taxable arti- cles, James Cook Ayer of Lowell, Massachusetts, was most interested in these proceedings. His factory turned out millions of bottles of sarsaparilla, boxes of pills and other remedies that were required to bear tax stamps. His mills pro- duced enormous quantities of yard goods. He was already engaged in other far- flung aspects of his growing financial empire. Each check or other official doc- ument associated with one of his enterprises required still more revenue stamps. It meant a great deal of money to this merchant capitalist. His renown and financial standing alone would have gained him a hearing with Washington bureau- crats on these matters. But he had much more going for him. Ayer was a close personal friend and Republican politi- cal ally of the very man whose job it was to implement the wide-ranging revenue laws. They were the same age and had many common interests. In prior years, Boutwell had repre- sented the district in which Ayer lived in the Massachusetts legislature. In fact, when Boutwell eventually moved upstairs to the Secretary's job in Grant's Treasury Department, it was Ayer who vied for Boutwell's vacated U.S. congressional seat. Ayer's encased stamps were already in circulation. Is it so unreasonable an hypothesis that it was Ayer who interested Boutwell in Gault's stamp cases? We know from Boutwell's THE PROPOSED STAMP AND MICA CURRENCY - - The Commissioner of Internal Revenue, after an examination of the mica and metal cases for rev- enue stamps, designed to facilitate their use as cur- rency, is disposed to believe them well suited for the purpose intended, and sufficiently cheap to jus- tify the Government in their adoption. They are but little larger than the nickel cent, and very clean and beautiful in appearance. The only question, except that of cheapness, is as to their durability, and even if the mica should occasionally break, the value of the stamp is not impaired for the use origi- nally intended. Washington, Oct. 17 y:11-fj, tjlqf ) brit a _fx , tWV:=411=514 3069 cfs(- afh! 01'1-111a, ,, m19,ceirotmi.14.43.1vromPemew.`" ad-- PAPER MONEY • January/February 2005 • Whole No. 235 25 * * * * * * * * * * * * NUMISMANIA RARE COINS P.O. BOX 847 -- Flemington, NJ 08822 Office: (908) 782-1635 Fax: (908) 782-6235 * Jess Lipka, Proprietor NOBODY PAYS MORE TROPHY NATIONALS Buying All 50 States, Territorials, Entire State and Regional Collections, Red Seals, Brown Backs, Statistical Rarities, New Jersey. Also Buying Coin Collections and Type NO DEAL TOO LARGE! * ** * * * * * * * * * * * * * * * * * * * * * 4;s" 1714:S. N EW IIROADVA EU ROPEA iiU N' V A YA l' /WC 26 January/February 2005 • Whole No. 235 • PAPER MONEY By fall 1862 Kirkpatrick & Gault were in high gear touting their small change substitute, as Editor Henry Raymond noted in his influential newspaper. New York Times, October 8, 1862, p. 2. NEAT AND HANDY — Messrs. Kirkpatrick & Gault, of this City, have struck upon a plan for the assistance of our currency-mud stuck people which is most neat & handy. It consists of an ingenious fixed arrangement of stamps in a circular frame with a mica covering, which can be used without detriment to the stamp & with convenience by the people. The cost will be but a trifle above the par value of the stamp, & much less than that of silver change. New York City's Irving House hotel was likely John Gault's first customer to employ his encased postage stamps. The design of its advertising insert on the back of the encased stamp store card was patterned after its postage stamp envelope issued only weeks ear- lier. own testimony that he valued Ayer's opinions on public questions. Boutwell esteemed Ayer's industry and business acumen. Ayer was forthright and frank in making his ideas known. Boutwell recalled his friend's advice as "sound, frank, resolute and consistent." However, an alternately strong case can be made for the patent office connection. Prior to his appointment as Commissioner of Internal Revenue, Boutwell had been a patent attorney with considerable experience. His famil- iarity with the patent system would have left him friends there and it would have been natural for him to be apprised of the new stamp case invention in his new official capacity. However, another notice in the press seems to offer testi- mony in this regard (see page 24). A remarkable article appeared in Scientific American on October 25, 1862. By 1862 Munn & Co. had acted as patent attor- neys for more than 17,000 inventors, including John Gault on several occa- sions. Their influence was considerable and highly regarded at the Patent Office. Former Commissioner Joseph Holt, praised the company's energy and uncompromising fidelity in working in its clients' best interests. Its weekly periodical, Scientific American, was the publication of record in its field. According to an insider, "It not unfrequently (sic) happens that after having procured a patent for an inventor, he comes to them for advice as to the best plan to realize (make money from) it." Munn & Co. had influence with the Patent Office examining corps, the same source adds. We know Munn & Co. were assisting Gault with his artillery shell venture. We also know that he had enlisted their aid in connection with his encased stamp patent. Of course, neither hypothesis is mutually exclusive. Other circumstances may also have contributed. At this very time Holt himself was in the process of evaluating Gault's partner William Barkalow's contracts with the government regarding importation of British rifles. He ultimately decided in Barkalow's favor and extended the terms of his contract with the government. A Gault family friend named Conant was one of the insiders at the Patent Office. Allegedly Gault gifted President Lincoln with a gold-plated set of encased stamps in the full range of values. Prominent Republican newspaper editors endorsed the proposal in their columns. Additional circumstances, not yet known, may have intervened. IRVING HOUSE. Broadway & Twelfth St. ENTRANCE 45 TWELFTH STREET. Ori. the EUROPEAN PLAN. GEO. W. HUNT, J Proprietors CHAS.W. NASH, U.S. Postage Stamps. 10 CENTS. 27 Q;,;ALL rugurz..irr BILLS.—CORPC, eLt1 1.utizN AND merebarti to L.sue ftrnr.iircirenc 1:i;le• • la be I %fru 1,11tt.1 with watt: piss &ad beim:: ',A% on xadrov,,vig Per:. Teolyer A en.. Lltnorrnp'lert and 1.4-r•v• era. 90 YulLullIlittr ,: t N. /11,811 N METALLI' euant-.. cv.—A:'1)1.16ZAT10148 1 lot .tamping bus.urds LAr , lr, tin tt,e t.- r• mencyk to he mai ,: to J. ttACLT. patentee. So. 1 Park ntaar.' • • rrAi ha.% tlit• PLATE—TAY -IVES CA21 }I A rill tile•r er p..bto to vertghed at tux r. mu- PAPER MONEY • January/February 2005 • Whole No. 235 Although such circumstantial evidence is not conclusive, what is clear from the range of press reports, however, is that for two weeks in October 1862, the Federal government was considering adopt- ing John Gault's metal and mica emergency money. He could have indeed made a million dollars, as he later purportedly alleged. How close he may actually have been to achieving such patriotic and commercial success by having his patent currency become the pri- mary circulating medium of the change-strapped country may never be known. Ultimately the very independent and assertive Boutwell KO'd the compli- cated scheme of printing stamps and then enclosing them in die struck brass and mineral containers for use as change. It is clear from Treasury records that he was ultimately and solely responsible for settling the issue. His boss' standing advice upon any inquiry from Boutwell was "decide for yourself." No matter what pressures were brought to bear on him from outside, the very independent-minded public servant knew his own mind on the matter. He considered himself an excellent judge of mechanics and invention. His long past experience had exposed him to the whims and caprice of inventors and had left him suitably able to judge the rela- tive merits of such a proposal. Apparently he did and turned Gault down. Soon thereafter, Boutwell was elected to the U.S. House of Representatives, although he filled out his term at IRS until he took his seat in Congress March 3, 1863. At the top of the agenda: passage of the Fractional Currency bill. The United States embarked on a remedy of small fractional notes and die struck brass (bronze) and copper-nickel token coinage to solve its change woes. John Gault was out of the picture. Is it any coincidence, then, that immediately Gault's advertisements began appearing in newspapers in New York City, Chicago and elsewhere? Encased stamps were still a good idea and a government remedy was months, even years off in getting control of the matter. The problem didn't go away just because a Washington official had acted. There was still money to be made for a bright, aggressive inventor named Gault. After securing his patent, John Gault sought out clients for his "New Metallic Currency." Already ensconced in New York City promoting his artillery shells with his partner William V. Barkalow, he had no further to look than down Broadway to the elegant Irving House. The hotel had recently come under the new management of George W. Hunt and Charles W. Nash. The hotel's proprietors were well aware of the small change shortage. They were already circulating the small stamp envelopes in amounts of 10-cents (cf. page 26) and possibly other values as well. Gault, eager for a quick sale, demon- strated the superiority of his product sharing samples of his five- and ten-cent encased stamps with the merchants. He quickly struck a bargain with these progressive innkeepers who were trying to put their best feet forward in the competitive New York hotel trade. As Gault's first customer, the design of their unique advertising message was problematical. There was no precedent. They settled on a virtual copy of the message on their stamp envelopes: i.e. in descending order (1) the hotel's name, IRVING HOUSE; (2) its location, [NEW YORK] BROADWAY & The curious small change makeshifts in circulation in spring 1863 were lam- pooned by Frank Leslie's Illustrated Newspaper. The original caption for the cartoon read: "This is all the change I could get -- I had to take these or nothing!" Frank Leslie's Illustrated Newspaper, March 21, 1863. John Gault placed ads in strategic news- papers in the northeast and midwest soliciting clients. New York Herald, November 6, 1862, p. 8. ,..,h0 wt..3•41 *6 Ieew og tift.h.. if r ! '0,?..*:. #'',4 f0 '--,44.1.0 It...IVA 1.... 'Iv., / /t..,...eatty,w1,: ,-.--:-., 'AvIttc://174r447."*6"Sc+.7„Zr .111R...1'121171Z . * r :1±;.tr...suot exttn,ri" Vls4 vocal erlant• F.'. J 44 r,,,. • 4"i,Om it, A.,,. Et , c,' :./ ofirsi. 5 nil i 1.(:■-,..W/ lotakelti.‘..?quelliiy, At OfC.?1(01 rftt,re1 --. : ' 1,;., ' •... ,- , .. ,i,lifO , A -,, kgetitis. flei,irsio4i. , 66)ti,Asthroa, Cohis, Catarrh; ' JOHN I. 13 Fi. OW N a scipl. t. . ,30SION,MA s ,tr. S.A,,4... ,..F■ tc!o cFt ypT- o R S. ... .......-.4 ..6.4...ni 7,-.2/2. t t,..:-.4'7,1,'Tf"7;:,7 t.. aVi,m7V,47. ,11,6%,7' ;. "TEAT New CtinnzacT."—The new cur- rency manufactured in New 'York for Mr. Norris, the newa.dealer, and brought out by him when he returned from his recent visit, meets with universal approbation. 11 is regular Government money, and isbetum in every reupeet than the new paper enriren• cy. a Mr. Norris uses it as change at hi,* news-rooms, 102 Munson street_ By the way. there are great changes going on at 102—repainting, re-stocking, etc. This will make It one en* the most attractive stares Is town. We shall specify some of the les41- ing features of the Improvements hereafter. Dsstuevtgp Mairrrox.—In a meant trip January/February 2005 • Whole No. 235 • PAPER MONEY28 John I Brown, a venerable Boston apothecary was also an early client of John Gault's. His advertising insert was patterned after his trademark design for his throat lozenges. Self-explanatory, and a key notice of Gault's encased stamps by the press, the article below leaves little doubt how book dealer Norris in Chicago came to issue his encased stamps. "That New Currency," Chicago Evening Journal, November 21, 1862, p. 4. (Illinois State Library) 12TH ST.; (3) its terms, EUROPEAN PLAN; and (4) its management, HUNT & NASH PROPT. The contents message about stamps and denomina- tion was unnecessary (Gault's unique case took care of that), so the bottom third of the stamp case contains Gault's patent information. The design is unique in that Gault's infor- mation is presented in a type style and size commensurate with the other legends on the piece. This was a real coup for Gault, and became a virtual advertising piece for the patent holder as well as for the proprietors of the hotel. Hunt's and Nash's order was a large one, a thousand dollars. Gault raced to Waterbury to have the pieces struck. The order called for about 10,000 encased stamps, equally split between five- and ten-cent values. The cost to Hunt and Nash was $750 face value for those stamps, $200 for the cases at $20/1000, and probably about $10 die cut- ting charges. Gault also delivered a small number of pieces in the other values to round out the order. Scovill filled the order with wrap around rims cut from the grooved button stock, and sil- vered just like Gault's pieces. These are the fairly common varieties collectors know today as Reed IHO5RB and Reed IH1ORB. These are the only encased stamps, other than Gault's initial, August output to be issued in quantity with the grooved (ribbed) wrap-around frames. The "New Metallic Currency" was an instant hit with the hotel's proprietors and clientele. They were proud to see their store cards in circulation – after all the next city business directory would not be out for nearly a year. After a time the initial amount was put into circu- lation, and Hunt and his partner placed a second order with Gault. The second order was for a like number of plain frame (Type B) pieces, but this time the hotel proprietors desired a wider assortment of face values for their stamp cards. The order was filled with significant numbers of three- and twelve-cent stamps and a smattering of the others, too, although the largest quantities were again the five- and ten-cent workhorse change-making values (Reed IH05 and Reed IH10). Arguably, Gault could have sold additional merchants on the virtues of his New Metallic Currency prior to leaving New York City, however apparently he did not. His next customized pieces were for leg- endary Boston pharmacist John I. Brown. Once again, the parties borrowed the design for the encased stamp store card directly from an already created advertising piece which the merchant favored. Trademarks and trade styles were even then deemed very important in business, especially with literacy less than universal. So for Brown's order Gault delivered encased stamps patterned largely from the trade mark for his famous Bronchial Troches. As may be readily seen on the trademark reproduced on the box (above left), the sans serif lettering with the rolling BRONCHIAL is virtually identical to the style shown on his encased stamp advertisement above. The message is identical to the later. As happened when preparing the earlier Irving House piece, the letter cutter had diffi- culty positioning his message: FOR and AND are oddly out of place. The addition of Gault's patent information is largely an after- Milt/77' - c...NA1,7A\vtk,c,, 11. /(195P1-1 Zi r_..a tie %:# a ie).. " 3t2 et t Payable in CUrrent 'Flouts on presentation of Ons r or more to the un signed, uarbiallle, mod. iz%ems 11 r Rt 2— OPPO4ITZ TILIIIROXT BOUPX. Dr. L. has bad fifteen leers experience In his pro. halm Work doue at Eastern wires. nekliy THE - NEW POSTAGE STAMP iliterchonts wishing to bare their Cards on the bade of the New Clammy should address 300N GALT, PATENTEE. No. 1 Puma Places New York. M its Nrw Currevey tan be seen at thente-dJotted e . nt v A T TT 1r /1 II PI i'Vrt TT TV' t PAPER MONEY • January/February 2005 • Whole No. 235 29 thought on the Type I (plain, without the 100+ raised balls around the border) merchant obverses. All wrap-arounds are plain (Type B). The Brown order was a large one, probably in excess of 20,000 pieces in all. Unlike the new proprietors of the New York City hotel, the Boston pharmacist was already well known and his product was already univer- sally familiar. Thus his order is more well-rounded than the Irving House order, meaning a more even distribution of denominations (i.e. Reed BT03, BTO5 and BT10 are evenly distributed, with much smaller amounts of one- and twelve-cent values). John Gault advertised his encased stamps in newspapers outside New York City and Boston, too. Eventually he also took orders from merchants in Lowell and Hopkinton, Massachusetts, Philadelphia, Cincinnati, Detroit, Milwaukee, Chicago and Peoria, Illinois; Evansville, Indiana, and even Montreal, Canada East (see Paper Money, Sept/Oct 2000, whole number 209). Some merchants were attracted by the ability to spread their commercial mes- sage on "virtual coin of the realm." Other clients of John Gault also turned to paper scrip and the ubiquitous copper and brass tokens which proliferated throughout the North during the war. Collections of these companion Civil War merchant storecards and scrip form a specialized field. My longtime friend and fellow SPMC member David Gladfelter is working on the definitive story about these historical emergency issues. Look for it in a future issue of Paper Money, when we return once again to this historic period in our past and its curious makeshift " money." Far left: John Galt's (sic) ad for addi- tional clients appeared in the Chicago press in early November. Two addi- tional Windy City merchants placed orders with him. Two of John Gault's customers who also circulated scrip during the small change crisis were H.A. Cook of Evansville, IN and Arthur M. Claflin of Hopkinton, MA. Look for a specialized article on merchants who issued both Civil War storecards and scrip by David Gladfelter in a future issue of Paper Money. 30 January/February 2005 • Whole No. 235 • PAPER MONEY WANTED! T69 CSA 1864 $5 NOTES IN XF-UNC CONDITION I collect these by signature variety and have over 100 different signature pairs so far. Please, therefore, send me either photocopies or scans of notes for my immediate offer. WENDELL WOLKA P.O. BOX 1211 GREENWOOD, IN 46142 e-mail: purduenut@aol.com INFLATION CAME WITH PAPER. MONEY, AND DAY-TO-PAY VALUES FLUCTUATED IN DIRECT PRORNTION TO MILITARY SUCCESS IN THE FIELD! POSTAGE STAMPS (M EN- CASED" IN BRASS FOR PERMANENCE') ALSO WERE USED FOR SMALL. CHANGE, FINALLY, THE GOVERNMENT ISSUED FRACTIONAL-CURRENCY MONEYin the C IVIL WAR AT THE OUTSET OF THE CIVIL WAR NEITHER THE FEDERAL NOR THE CONFEDERATE GOVERN- MENT WAS FINANCIALLY ABLE ID WAGE WAR„ . AS A RESULT,MONEY WAS A TDP-PRIORTY PROBLEM! THE FEDERAL GOVERNMENT, RELUCTANT TO LEVY ADDITIONAL. TAXES, DECIDED -ro FINANCE TUE WAR WITH CUSTOMS COLLECTIONS AND THE SALE OF LONG-TERM TREASURY BONDS. —BUT SECE-./DION HAD UNDER- MINED CONFIDENGE IN THE GOVERNMENT, AND PEOPLE WERE RELUCTANT TO BUY BONDS!! THE NATIONAL DISTRUST OF PAPER CURRENCY BROUGHT ABOUT WIDESPREAD HOARDING OF SPECIE SOON AFTER. THE WAR BEGAN„. THIS HOARDING OF COIN FORCED THE SUSPENSION OF SPECIE REDEMPTION OF NOTES ! THE HARD MONEY SHORTAGE FORCED THE TREASURY SECRETARIES OF BOTH GOVERNMENTS, (SALMON P CHASE FOR. THE NORTH, AND C, G. MEMMiNGER FOR- THE SOUTH ), TO ISSUE PAPER CURRENCY WITH NO BULLION OR SPECIE BACK-ING„ , E. Chase Memminger WITH COINS viRTLIALLY OUT OF CIRCULATION, AND PAPER MONEY TAKING THE PLACE OF SPECIE, MAKING CHANGE WAS A PROBLEM. MANY PEOPLE SOLVED THIS SIMPLY BY CUTTING DE- MAND NOTES AND GREENBACKS INTO FRACTIONS, BECAUSE OF LacK. OF BU LLION ,C0 I NAGE IN THE SOUTH WAS ALMOST NONEXISTANT. TWELVE PENNIES WERE srizucic, AND ONLY FOUR HALF DOLLARS ARE KNOWN 70 HAVE BEEN MINTED. THIS WAS THE 'TOTAL. CONFEDERATE COIN- AGE DURING THE WAR! RUT, WITH ALL THE MONEY SHORTAGE AND VALUE FLUCTUATIONS, NOBODY FELT THE PINCH MORE THAN THE SOLDIER— . f-IIS +II PER MONTH — WHEN HE GOT IT—HARDLY KEPT HIM IN TYSACcO! // PAPER MONEY • January/February 2005 • Whole No. 235 31 32 January/February 2005 • Whole No. 235 • PAPER MONEY Who Are These Guys? By Steve Whitfield and Ron Horstman (with Research Assistance of Eric Newman) H AVING LIVED NEAR THE KANSAS MISSOURI BORDERfor many years, I have long been aware of the border warfare thatoccurred before and during the Civil War in that area. Southernguerillas and Northern "Redlegs" murdered, pillaged and burned for years during, and after, the war. Being a paper money collector, it was always interesting to me that the State of Missouri had both Union and Confederate governments and both had issued currency. Many of these notes depict military officers or politicians of the period. Only a couple of these por- traits have been positively identified and much of the published information was incorrect. Several years ago I discussed this issue with Ron Horstrnan and we decid- ed to collaborate to improve the historical record. Using Ron's collection, some historical information obtained from Eric Newman, a Missouri history, auction catalogs, Slabaugh's Confederate States Paper Money (Ninth Edition), and an internet website on Civil War generals, some progress and a few posi- tive identifications were made. Regrettably there are still questions about the identity of some of these men. Hopefully, someone who sees this article will recognize them and report through this journal. In 1860, Missouri was one of the critical border states upon which the Union depended to tilt the balance of power in the pending Civil War. The elected governor, Claiborne Jackson, was pro-secession and supportive of the Confederate cause. President Lincoln had some staunch Missouri allies in the state and in his Cabinet. Through the influence of Frank Blair, brother of the U.S. Postmaster General, the St. Louis Arsenal was seized by the pro-Union forces. Nathaniel Lyon, who became a Union General, was placed in charge of the arsenal. A referendum of Missouri voters on secession had indicated that the citizens wished to remain neutral. This was a blow to the southern faction. Jackson and members of his cabinet retreated to Neosho in the southwestern corner of Missouri, and drew up a secession proclamation. Missouri was actual- ly admitted to the Confederacy in November, 1861. Meanwhile, the rest of the state government appointed Hamilton Gamble as acting governor, and he established the Union State government of Missouri at Jefferson City. Both state governments issued scrip to pay their obligations. Although the border conflict lasted throughout the war, Missouri was a loyal Union State. It sent more than 100,000 men off to fight for the Union Army. In addition, more than 30,000 men volunteered for and served in the Confederate Army. ' ftRSOVCITYWunilollii62 - Cou.7 ..7r,,--kA04141:111.3v.a.3417nntialtirigir:10, 4-,57Weigatint=l1P°- viluituAffeaifr. PAPER MONEY • January/February 2005 • Whole No. 235 33 The Confederate Issue of Jan. 1, 1862 1. $1. The central illustration depicts Jefferson Davis, Confederate President. 2. $2. No portrait, Farmer Plowing at center. TOPt JECFE ioi -N° 64, Coin .. faromitt.t,,,) AW1:7257a41.1 3. $3. Illustration of "Confederate Governor," Claiborne F. Jackson. These notes were produced by A. Malus, Eng., New Orleans. They were manufactured on several varieties of colored paper. 4. $5. No portrait, Commerce vignette center. 5. $10. No portrait, Ceres at center. 6. $20. No Portrait, Flying Woman with trumpet, center. The larger denominations exist on different colored paper, both with and without the engraver's name. These notes are common and readily avail- able. Missouri Defence (sic) Bonds (Confederate) 7. $1. No Portrait, Cattle at center. 8. $3. No Portrait, Flying W071111.11 with cape at center. 9. $4. No Portrait, Steamboats upper left. NIX1 :503:4 :16NIMIN't■ //*/ / //y///i /// ////,/ , ./'<:17/ //i/ . -74/./// • //// /I / //7//y/ 44/, • .././// e<',r (//i r/reriry,/ /rr . yr `// ir'eXt/// */7i rk /_ irrx /// r4/,/.16? -- 1‘102 -,,,,,,, ------‹: egg a 0 II%49 VAI PC 1 9 it . - - 1 Ara b''''' ..--)...4,-,.,, z , , ,,, 4. 41,4,.7 2. ' .--717.-e ////1 , • el r ./////,.//;/./ //// 11/ /3k///4 Ir re 1/ •(/// r /,/, /a./ ?. .) ,0r . //r/r., 2/7 ril( /r/ //r r/ / /4' / r/://r' r/r iii/ r////////, /// ///' /11 / /// Y/zit re . //rr r/ yr (//67 . /. 4, 77 iy"r /11Y/r r.r/ rr(7, .r/r Jib? _ . .11 1.111 11r 34 January/February 2005 • Whole No. 235 • PAPER MONEY 10. $4.50 No Portrait; Ceres, Commerce and Navigation left. Requisitions for Missouri Defence (sic) Bonds 11. $20. No Portrait, small Steamboat center. 12. $50. No Portrait, Slaves Picking Cotton, upper right. 13. $100. Portrait of Jefferson Davis center. Printed by Keatinge & Ball, Columbia, S.C. and readily available. Defence (sic) Warrants (Union Government) 14. $10. No Portrait, Girl at right. 15. $10. Similar to #14. Above; different top inscription Printed by A. McLean, Lith., St. Louis Defence (sic) Warrants (Union) 16. $5. Portrait of General Robert Allen right. Slabaugh and others identi- fied Allen and I believe they are correct. Robert Allen was born March 15, 1811, at West Point, Ohio. He graduated from West Point Military Academy in 1836. During the Civil War he served as Chief Quartermaster in the Dept of Missouri. Later he became Quartermaster for the Mississippi Valley, and then for all areas west of the river. He retired from the Army in 1878 and died at Geneva, Switzerland, August 5, 1886. Agree that this is General Robert Alien. 17. $10. Portrait of General Joseph Bailey at right. Again, this is Slabaugh's identification, and possibly others. The portrait looks like Bailey, but I am not absolutely certain. Joe Bailey was born May 6, 1825, near 71V7 g8166 4114,9P.'S / ///'' //./ (41,,/;//// 71;//1 , f:/17 . /4. /.4./.; -//„.///), • • A,/ 1-1/'//,' /// e I/1 /' ///1///-//, •■//// //,- / 4 //v. v' /it/r;/ /ip/ //i////'■ /i.)/ ///////X",/, ; kb% laCe.:0441).7)- o II /..'S 7'0 • g1W../ . : /11/7./// / , • 11(////" ;1'27 .12:ZI: Jr! .:INetrZ r,i.vrz.:5 N ' .2././/,',-/x/<<,/////74. if // ,,, / ////' //, • -//%/4„ .;(4///:, . -//://// ,/ //yr/v./ ////, /4/,/, 4/40-/. /4 ,./././.7:///,/, //// //..,//7 //e / , /20 4.7.-42; //Y:ie ie//,/ ///,' (7/ /'(//1/AV /// '4"/ ././ /1%, /1',/ / /7/// ,./1?/? - — , •to•-•,•,••■ • •• •• PAPER MONEY • January/February 2005 • Whole No. 235 35 Pennsville, Ohio. Before the war he was a "lumberman." During the Civil War, he served as Chief Engineer of Franklin's XIX Corps and was credited with "saving the fleet" in the Red River Campaign; for which he received the "Thanks of Congress." He became a Brigadier General in 1864. After the war he became a sheriff in Missouri, and was killed by bushwhackers on March 21, 1867, near Nevada, Missouri. Tentatively identified as General Joe Bailey, pending further evidence. Ron Horstman believes this portrait is supposed to be of General Nathaniel Lyon. It does not look like him to me, although Lyon is a good candidate to appear on a Missouri Union note because of the role he played at the beginning of the war. He graduated from the U.S. Military Academy in 1841 and served in the Seminole and Mexican Wars. He then served at various posts, including Fort Riley, * before being assigned to the U.S. Arsenal at St Louis in 1861. He and Francis Blair were instrumental in keeping Missouri in the Union. Lyon led the Union forces at the Battle of Wilson's Creek in 1861, where he became the first general officer to be killed in the war. He is buried at Phoenixville, Connecticut. *Personal note: Lyon was the first Post Engineer at Fort Riley in 1854, a posi- tion the co-author (Whitfield) would hold in the 1980s. 18. $20. Portrait of General John Pope at right. Slabaugh listed him as John "Polk." Since there was no Union General named Polk, it is assumed to be a typo. Again, this could be Pope as it looks something like him, and Pope had an association with Missouri during the war. John Pope was born March 16, 1822, at Louisville, Kentucky. He graduated from West Point in 1842, and served in the Mexican War. In May, 1861, he was V ' //>›,k1///;12/7/ /Y<<,././. 44.;, //X, iii..//7/// ''')// /:. i7., ,/,, /Ci(stii/, A . x.,/,//,;tV"A. .-/,', , • 4, ./ , u //..-/ _ ,-.44,1.17.. x 16/, / 4', / '(., CX,P, /X; /// i/7/../ .,/,7 ,z/._ / , 1%///4/,./(11J? '..- .-- \NI (,":\ .i ..is—rivinani, I'S' —t — Sin Oiiii in . Sink N.,— 1 36 January/February 2005 • Whole No. 235 • PAPER MONEY appointed Brigadier General in charge of Volunteers and commanded various Districts in Missouri. He went on to capture New Madrid and Island Number 10. He also commanded the Army of Virginia at Second Bull Run. The military web site says "Pope was an unpleasant and unpop- ular commander." He retired in 1886, and died September 23, 1892, at Sandusky, Ohio. Again we shall tentatively identify the portrait as that of Union General John Pope, pending further evidence. A youthful portrait of cadet Willard Preble Hall 19. $50. Portrait of Lt. Governor Willard Preble Hall. Willard Hall was born in Harpers Ferry, now West Virginia, on May 9, 1820. He served as U.S. Representative from Missouri from 1847 to 1853. Hall became Lt. Governor of the Union State government in 1861, and acting Governor when Governor Gamble died in January,1864. He served as Governor until the election and seating of Governor Thomas Fletcher in 1864/1865. Willard Hall died at St. Joseph, Missouri in 1882. A portrait of Willard Hall at the Missouri Historical Society in St Louis positively confirms his identity on this note. The notes above were printed, four to a sheet, by the R.P. Studley Co., Lith, St Louis. A souvenir sheet was presented to Governor Thomas C. Fletcher, who replaced Governor Hall in 1865. The sheet with the inscription to Governor Fletcher appeared in the Dr. Joseph Vacca Collection Sale in 1981. These notes are very rare. Union Military Bonds Union Military Bonds were first issued in 1863. Two additional issues, with the same design and a new $50 denomination, were produced in 1865 and 1866. Engraved and printed by the American Bank Note Co., Philadelphia, these notes have great portraits included in their designs. Background: March 9, 1863: $3,000,000 in one year Union Military Bonds were authorized by the Legislature to pay the enrolled Missouri Militia. The bonds were to pay 6% interest and be issued in denominations of $1, $3, $5, $10, and $20. They were to be produced on bank note paper of the usual bank note size. The Treasurer and Auditor were to select devices for the bonds to prevent counterfeiting. The Secretary of State and the Auditor were to sign the bonds. Counterfeiting was punishable the same as for bank notes, and the bonds were to be receivable by banks, savings institutions and other corporations. A CHOICE UNCIRCULATED 1862 $2 LEGAL TENDER NOTE REALIZED $4,370 111 1374P770- 4 111AlmoliniDt! " A CHOICE UNCIRCULATED 1913 $50 GOLD CERTIFICATE REALIZED $6,325 ti .-....Lxzt---ttaett4tttaO A CHOICE UNCIRCULATED 1899 $5 SILVER CERTIFICATE REALIZED $6,440 44175 Itirst NationeltBa =F--4Fissizemp.". z ,„ jmisiAlaz AN UNCIRCULATED LAZY DEUCE ON KANSAS, ILLINOIS REALIZED $7,475 J GEC' Cif I t 13,3, 6 313.13 ha, hot tor S, h . met,36- the 33,3the of Po.t.f.. to MI of Mirth!, letd Ye.. of the Re, tp, K ,oz E OR(;E Ill Ira the Ell A , SixTen 6d !Yens pence. Printrd B. FRANKLIN, 4n,/ HALL. 1 ,64. .3nod A CHOICE UNCIRCULATED PENNSYLVANIA SIXPENCE NOTE REALIZED $2,070 PLAN TO PARTICIPATE • FIND OUT ABOUT CONSIGNING YOUR PAPER MONEY to one of our upcoming sales. Call Rick Bagg or John Pack, toll-free 866-811-1804. • BE A BIDDER IN OUR AUCTIONS. Send us an invoice for $500 or more and receive a free copy of our next catalogue. If you send us an invoice for $5,000 or more, we will send you all of our auction catalogues, free of charge, for one year. PAPER MONEY • January/February 2005 • Whole No. 235 37 AMERICAN NUMISMATIC RARITIES' BRINGS OVER $4.2 MILLION IN NEW YORK 30 1 8 " gt-',:-.a.i'Zi....'-'17;::::""=*. H-8 ,,z ,ri,..... ,..: H6839 F.RAIF49 ,_1*10110:141Artt „. ft AMIVCalaZBIN - 4. likiirl iFiti iro—a___:Cia ..:,0-" H.8 H683A '''''9..,':::::,.'"'-`H.8 410 A VERY CHOICE EF 1918 FEDERAL RESERVE BANK NOTE REALIZED $10,350 liNI ..,' i ii , .4„ 0321M4 * ', 1 . . i . .WeAtiPF.!.. ,;/.. ht 1; CHOICE UNCIRCULATED 1896 EDUCATIONAL $5 REALIZED $9,200 All highlights shown here include the 15% buyer's fee. PO BOX 1804 • WOLFEBORO, NH 03894 • TOLL-FREE: 866-811-1804 • FAX: 603-569-3875 WWW.ANRCOINS.COM • AUCTION@ANRCOINS.COM 38 January/February 2005 • Whole No. 235 • PAPER MONEY March 21, 1863: A joint resolution allowed up to $500 to the Secretary of State and the Auditor of Public Accounts for signing, numbering and reg- istering Union Military Bonds. July 1, 1863: "Every Paymaster paying the Militia shall write his name and office on every Defence (sic) Warrant or Union Military Bond before he pays it out." None shall be redeemed without such endorsement. December 19, 1863: Redemption of Union Military Bonds shall be at the Bank of the State of Missouri at St. Louis in the order of their issue. Collectors of revenue were authorized to receive half of Missouri state taxes for 1864 and years prior in Union Military Bonds. February 13, 1864: By joint resolution the Governor shall appoint a commit- tee to count and destroy Union Military Bonds in the hands of the Treasurer. And on February 15, 1864, Collectors of Revenue were authorized to receive all delinquent state taxes in Union Military Bonds. February 15, 1865: Union Military Bonds shall be paid with interest out of the Union Military Fund. February 20, 1865: "Union Military Bonds, up to $2,000,000 in denomina- tions of $1, $3, $5, $10, $20, and $50 (new denomination) shall be issued to pay the enrolled Militia within one year with 6% interest out of the Union Military Fund." Pretty much the same as the 1863 resolution except that "February, 1865" shall be inserted instead of "March, 1863." The bonds shall not be issued if the U.S. Congress passes an appropria- tion for state military expenses. February 20, 1865: Any collector of revenue who shall purchase Union Military Bonds at a discount shall be punished. April 8, 1865: The taxes, fines and captured property proceeds for the Union Military Fund shall be used to pay outstanding Union Military Bonds and those thereafter issued. December 20, 1865: "Union Military Bonds, not to exceed $1,400,000 are to be issued to make payments due the enrolled Missouri Militia, etc., in accordance with the February 20, 1865 Act." A further tax of three-tenths of 1% is levied to be put into the Union Military Fund. This tax may be paid in Union Military Bonds. March 5, 1866: By resolution, the Union Military Bonds authorized by the December 20, 1865, Act shall be printed from the same plates as those used for the Union Military Bonds authorized by the February 20, 1865, Act; with the names of the Secretary of State and Auditor engraved and printed thereon. March 13, 1867: A committee was appointed to count, record and burn all Defence (sic) Warrants, Union Military Bonds of the 1863, 1865 and 1866 issues and all wolf scalp certificates. The committee was to stamp all Auditor's Warrants as "cancelled." February 15, 1870: The order in which Union Military Bonds are to be paid out of the Union Military Fund is specified. Those bonds not presented for payment by February 1, 1871, shall be barred. March 28, 1874: Many Union Defence (sic) Bonds and Warrants, which were barred by failure to be presented for redemption, were approved for pay- ment with interest for three years. The Auditor was to record the denom- inations and date of issue, and to write the word "Paid" across the face, and cancel them. Portraits on these notes are of prominent Missouri politicians, who sup- ported the Union cause. PAPER MONEY • January/February 2005 • Whole No. 235 ffvffirsErxvi :*ONE .110141401. 4.1.///fi/ii' :7;%//.,1 *% //7" ."f(e/1///...7;';'< J4.0": /7/ ,/,%•/••/4/(•,/,/17,,‘,7; er/!. 44 , ry/74,:r / //i:/.1%// 67 .4.4/ 11;1,4/*//:////' /1%)% ri ww/ /// 7//// ////////7 v• 7:WA,/ -`,•:tatm•r•s's7-----., ,•/ / ( /.7 39 f 1 T)i /i. • 11211.117.11MANCIEE grZTATAICV TAMES. ASSESSMENTS. IMMPAR AN. wEvEs.• zzizszuo-Ifrl el,--/kri•/•./. itst /i/w-,/ 7/...4,2„/hir .t,:,,,,,,,//,,y/ .7/..eyi,4,/,•//f, .,•,/,,,e/e•- ".' .77.,, ..-(4;/ i.e,,,,/,..../ ) 4-4; 4•/*/,: , 4 i,i-../.i. 4%,:// %(;61%;,K'/// 17/21/V;;;;://7 ,/,4',/ ,,4e Y/17;/ ,-; 1/0"!,,./ 221 ‘r-2 (.. -1//e///r, 20. $1 Bond. Portrait of John Smith Phelps at upper left; vignette of Liberty at right. Slabaugh thought this may have been General Nathaniel Lyon and the Kansas State Historical Society, in 1886, incorrectly identified the portrait as William S. Mosely, State Auditor. There is no doubt that this is actually John S. Phelps. John Smith Phelps was born December 22, 1814, at Simsbury, Connecticut. He moved to Springfield, MO, in 1837. Phelps later became a lawyer and U.S. Congressman (1845-1863) and served as Governor of Missouri from 1877 to 1881. During the war he recruited a Regiment of Missouri Infantry, fought at the Battle of Pea Ridge, and later served as military governor of Arkansas. He died November 20, 1886, at St. Louis. Positive identification. 21. $3 Union Military Bond (1863, 1865, 1866) Portrait of Benjamin Gratz Brown. Brown was born on May 28, 1826, and died December 13, 1885. He was a cousin of Francis Blair, who appears on the $10 bond. Benjamin Brown served as state representative from 1852-1858, and was elected U.S. Senator from Missouri in 1862, serving from 1863 until 1867. He was the Democratic candidate for Vice President in 1872 with Horace Greeley. Brown was a strict "Unionist." He also served as State Governor from 1871 to 1873. Benjamin Brown took an active part in pre- venting Missouri from seceding in 1861. Positive identification. For some time the $3 Union Bond portrait was thought to be that of General Franz Sigel. While this engraved picture of Sigel bears some resem- blance to the portrait on the note, Sigel's actual photograph shows significantly differing facial features. In addition the note portrait is of a man in civilian clothing rather than military uniform. Franz Sigel was born November 18, 07Z 0_0 _ - 714.S. ( 134 Nyi) ).___:,___. _, , , . . ©t *.i:?1;441k/..‘,, , „.,.....xo.,....„_,Artuots2L, /J ..., „i„,...„7-4,. 4 „,,?.,„ , ______,„.,„,,,,:y• /7////1/1/..//,4%;1-: J . li'"?.3/ /.;/./ /7/ /.;:11'./7/1/1%, . //7/Iele, /7///,//7/ // if: . ///////// '..- 44/ // / / //./ ///// //.// // /// // /4/ , )/////; / ////// /1.,11 ./// //7 ////////...//1//,/,-//// //,/ /41 1/Y/, 11/ / // / / / /// / //.././1/ ////1.1 / / / . /// % //// //'//4 .8%1/y / // i /.// //,'//// - ITN.11:01V 41.713:01 .,,,,,- /2 °F"1"(1 t1t, 4 /: /44, / /r1/ // / /4/ / //// //I/ ///4./ /,;//, • //if'', // /11; //;/,/, / '/// /// /41 / ,>////// 41/0 /. ',1/ 7/77 . 1/y •//,/ XY) ' c==zarir; /%/. ■ • '///1. I 71 //',/ TIVENTYBOLLARS /// //// 7/ // /./ .7 % // / / / / 1 ,1,.////1 . / // 1/// //. /1 //// 11 I/ //I/ /,, IX, 7)1 //.17/// / /// 1/;1%,,// /1/, / 7/ , /// / / / / //I./ , /1 /2//// ///1/1//, /;/// f /1. gk 4 January/February 2005 • Whole No. 235 • PAPER MONEY42 23. $10 Union Military Bond (1863,1865,1866) Portrait of General Francis P. Blair Jr. An article in the September, 1962 issue of The Numismatist, identified General Francis Preston Blair, Jr. on this note. He was born in Kentucky in 1821 and graduated from Princeton to practice law. Frank Blair fought in the Mexican War as a private and then got into politics. He founded the Free Soil Society of Missouri in 1848, and served as a Congressman for Missouri from 1856-1858 and 1860-1862. Blair was instrumental in retaining the Camp Jackson Armory in St Louis for the Union and in arming General Nathaniel Lyons' forces to safeguard the city. Blair then raised volunteer regiments for the Union before entering military service himself. He became a general officer in 1862, and com- manded troops in Georgia and Tennessee campaigns. Frank Blair returned to law practice after the war and unsuccessfully ran for the Vice Presidency in 1868. He was elected to the Senate in 1871, but was not re- elected in 1873, and died in 1875. This portrait is definitely General Francis P. Blair Jr. 24. $20 Union Military Bond (1863, 1865, 1866) Pilot Knob, MO, at the upper left and portrait of Governor Hamilton R. Gamble at lower cen- ter. When Confederate leaning Governor Claiborne Jackson abandoned the State House at Jefferson City in 1861, Hamilton Gamble was appointed State Governor. Gamble was born November 29, 1798. He served as the Civil War Governor of Missouri from 1861 until his death on January 31, 1864. Ron Horstman has a proof that identifies Gamble, and the note portrait matches other portraits of Governor Gamble. This image is positively identified as Hamilton R. Gamble, Harlan J. Berk, Ltd. "The Art & Science of Numismatics" 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 www.harlanjberk.com e mail: info@harlanjberk.com A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA PAPER MONEY • January/February 2005 • Whole No. 235 43 25. $50 Union Military Bond (1865, 1866?) Unknown. This denomination was added by Legislation on February 20, 1865, when Union Military Bonds were reauthorized. No one seems to have ever seen one, so no information is available. There are many individuals associated with Civil War Missouri history who would be appropriate candidates for having a por- trait on the $50 note. We will have to wait until one of these notes sur- faces before attempting to identify any portrait that appears thereon. If anyone knows anything about this note please contact one of the authors. Union Military Bonds were heavily redeemed and are very scarce today. War Claim Certificates (1874) These Certificates were authorized by an Act of the Legislature dated May 19, 1874. They were used as temporary payments for military service until claims with the federal government could be settled. Their denominations are handwritten. Readily available to collectors, they are considered as Civil War currency, issued in Missouri by the state government. No portraits appear on these certificates. Note: Persons having additional information which would aid in the identification of these portraits are encouraged to contain either co-author Steve Whitfield Ron Horstman 879 Stillwater Ct. 5010 Timber Lane Weston, FL 33 327 Gerald, MO 63037 New CD compiles Thian info in searchable format ANEW COMPACT DISK CONTAINS THE1,106-page extract of all the financial discussions and legislation from the larger Confederate Congressional Record, according to co-compiler George Tremmel. The official title is Extracts from the Journals of the Provisional Congress and the First and Second Congresses of the Confederate States of America on Legislation Affecting Finance, Revenue and Commerce 1861 - '65. This extract was complied by Raphael Thian in 1880, the same time he compiled the four-volume Confederate Treasury Correspondence and Reports. The CD has a number of special features to make it easy to use. These include key word searching capabili- ty, a fully linked index (click on a page number in the index and the selected page is brought up) and a four- level bookmark layout, Tremmel said. As with the earlier Treasury Correspondence CD, also released by Tremmel and his partner computer guru Tom Carson, the new CD will be readable by an includ- ed version of Adobe 6.0. Formatting and digital conversion of the master CD's contents are complete. "Pricing and availability will be determined soon. I'll update Paper Money readers when the information is available," Tremmel added. 44 January/February 2005 • Whole No. 235 • PAPER MONEY The Private Issue Notes of Keatinge & Ball By Brent Hughes M OST COLLECTORS OF PAPER MONEY ARE AWARE that the American Civil War brought about the creation of an enormous number of notes. Shoppers and merchants showed great ingenuity in devising all kinds of paper items in an effort to provide a medium of exchange. For the first time in its history, the United States government was forced to issue paper money. Under difficult conditions, the Union government pro- vided its citizens with "paper change" called Fractional Currency and large-size notes in denominations from one dollar upward. In a relatively short time, the U. S. "greenback" became the currency of choice, even in the South. In the Confederacy, however, things did not go as well. High level offi- cials believed that the war would last only 90 days after which the Union would allow the Confederacy to go its way as a separate nation. But when Abraham Lincoln refused to even recognize the Confederacy as a legitimate government, saying that they were only a few states "in temporary rebellion," it was obvious to most people that the South faced an uphill battle. The notoriously incompetent Confederate Congress refused to pass meaningful tax legislation and appeared to believe that the war could be financed by emissions of more and more paper money backed by nothing more than the hope of eventual redemption. International bankers would have no part of such recklessness and Confederate notes soon began their relentless slide toward worthlessness. Without the financial resources to fight the war, the Confederacy was doomed. Unquestioned valor on the battlefield was no substitute for money to purchase rifles and ammunition. Today of course the collecting and study of Confederate currency is a major hobby. If we include the notes issued by the individual states, counties and towns, we find ourselves examining thousands of different designs. As a result, most collectors specialize, with the majority trying to assemble a type set of the notes issued by the central government, a difficult task in today's market. The purpose of most notes of this era is obvious -- in one way or another they served as a medium of exchange. But three notes in my collection did not fit the common mold. So far as I could find from available guidebooks, they had no logical reason to exist. They were engraved, printed and issued by a paper money contractor of the Confederate Treasury Department at a time when the company was also producing currency for the government. Editor's note: When the author, a charter member of SPMC, passed away a number of his articles on hand were permitted to be published posthumously in his honor by special arrangement with his widow and son. INSURANCE For The PaperMoney Collector h to cover yourYour homeowners insurance is rarely enoug 1V INC ers WILLIAM YOUNGE Your Hometown Currency Hea WANTED rida 0 In Stock for a Gold, Silver, and P1 Call for Quotes 80 onals, ens livery Products 7-3010 I The South's oldest and largest co Top prices paid for all National Bank Notes, Large Inventory of National Bank See Our Webs i te at Williamyoungerman.com or et op sin 1967 ollections, d Estates otes for sal us at tram er plann RARE COINS/ CURRENCY Since 1967 95 South Federal Highway, 3 oca Raton, FL 33432 P.O. Box 177, Boca Raton, L 9 -0177 (mailing) (561) 368 -7707 (in Forida) • (800) 327-5010 (outside Florida) (800) 826-9713 (Florida) • (561) 394-6084 (Fax) Members of FUN, CSNA, ANA and PNG ley@aoLcom Call Toll Free:1-888-837-9537 • Fax: (410) 876-9233 More Info? Need A Rate Quote? Visit: www.collectinsure.com collectibles. We have provided economical, dependable collectibles insurance since 1966. • Sample collector rates: S3,000 for $14, $10,000 for S38, $25,000 for $95. $50,000 for $190, $100,000 for $278, $200,000 for $418. Above $200,000, rate is $1.40 per $1,000. • Our insurance carrier is AM Best's rated A+ (Superior). • We insure paper money, paper ephemera, manuscripts, books, autographs and scores of other collectibles. "One-stop" service for practically everything you collect. • 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 collectibles. • Detailed inventory and/or professional appraisal not required. Collectors list items over $5,000, dealers no listing required. • See our website (or call, fax, e-mail us) for full information, including standard exclusions. Collectibles Insurance Agency P.O. Box 1200-PM • Westminster MD 21158 E-Mail: info@insurecollectibles.com VISA Mast See the online application and rate quote forms on our website PAPER MONEY • January/February 2005 • Whole No. 235 45 Ytera/ayweVe4a4rk 1 ,;(7(76.14ke;0? WI* To 46 January/February 2005 • Whole No. 235 • PAPER MONEY • Why would the Confederacy allow them to do this? • How many were issued, and why did so many survive? • Why could I not locate an Uncirculated specimen? These notes were a mystery which I pondered for many years. Finally, in frustration, I organized my questions and sent them to noted Confederate finance scholar Dr. Douglas Ball. As I expected, he came back with the answers. The problem went back to the aforementioned Confederate Congress which had authorized the emission of millions of Confederate notes. Treasury Secretary Christopher Memminger repeatedly told the Congress about the dangers of runaway inflation. In late 1862, the Congress enacted three mea- sures aimed at reducing the amount of paper money in circulation. Through various means, citizens were asked to exchange their paper money for long- 50 cents Keatinge & Ball issue. Blacksmith arm and tools at upper left. Female at right. Black on tan paper. Back is blank. Engraved date: March 15, 1864. Serial letter A. Written ser- ial number. Written signature-like inscription at bottom edge: "Keatinge & Ball." Note: Sheheen 932 is num- ber 70. term interest-bearing bonds. The public greeted such proposals with very little enthusiasm, so the government sought other remedies to solve the crisis. There followed a tedious assortment of financial remedies involving vari- able interest rates which are explained in great detail by Richard Cecil Todd in his book Confederate Finance, an excellent work. Memminger's report to the Congress on January 10, 1863, frankly admit- ted that the situation was grave. People simply wanted no part of bonds. Instead they tried to buy goods as quickly as possible before their notes depre- ciated further. When the Congress convened for the 1863-1864 session, it learned from Memminger that the much-dreaded moment of truth had arrived. There were now more than seven hundred million dollars in Treasury notes in circulation and five hundred million needed to be withdrawn quickly. He proposed a dras- tic plan. After April 1, 1864, in states east of the Mississippi River, or July 1, 1864, in states west of the river, "old issue notes" would no longer be accepted. Citizens then had six months in which to exchange their notes for bonds; after that period their notes would be worthless. This startling proposal aroused vocal opposition from many areas such as North Carolina where the people had long since lost confidence in the Richmond government. They talked of seceding from the Confederacy and going it alone as a separate nation. Finally, on February 17, 1864, the Congress passed a comprehensive funding measure entitled "An Act to reduce the currency and to authorize a new issue of notes and bonds." In basic terms, the new law compelled citizens to either exchange their paper money for bonds or turn in three dollars in old issue notes in return for two dollars in the new issue notes. Issue of old notes would cease on April 1, 1864. There was a rush by the public to avoid being stuck with worthless cur- rency and prices in the marketplace continued to rise. Nor was there any escape for bank depositors. The institutions advised their customers to close ?/ //;////(/// 7...L.;igegitr7 EN -- . - < BILOYD.Ifl i. T PAPER MONEY • January/February 2005 • Whole No. 235 47 I love obsolete currency! Did you know that the Penobscot Bank of Buckstown, Massachusetts, was in the same town as the Bucksport Bank of Bucksport, Maine? In 1820 this part of Massachusetts became the state of Maine, and to make matters more interesting, at an early time the name of Buckstown was changed to Bucksport. I love Maine notes and have spent a lot of time studying their history. If you have some Maine obsoletes, give me a try! Also see other "stuff" I need, mentioned below. First of all: I am continuing my deep involvement in paper money issued by banks in New Hampshire, including state-chartered banks 1792-1865 and national banks circa 1863-1935. I am eager to buy anything that I do not presently own. Realizing that the mar- ket for such is enthusiastic and active, and that many notes are scarce, I am prepared to pay current market value. I will give an immediate decision on all items sent, and will pay instantly for all items purchased. Most dealers who belong to SPMC already know this. If you have not yet sold to me, I invite you to do so! I am an eager buyer of lots of other paper money as well, but strictly obsoletes (not nationals). Maine and Vermont notes are a super-specialty, and I am eager to buy any- thing I don't have-which includes most of the Rarity-7 issues listed by Coulter (Vermont) and Wait (Maine). Try me also on any obsoletes you may have with the imprint of W.L. Ormsby or his New York Bank Note Co. Perkins bills, including those imprinted Patent Stereotype Steel Plate, are an absorbing interest, and I probably have less than 10% of the varieties listed by Haxby. For these, which often come in low grades, I require readable signatures (unless they are proofs or remainders). I like specimen books and proof sheets, too—any bank note com- pany, from Abner Reed down to the Continental Bank Note Co., from early to late. I have been a major buyer (through representatives) at every leading paper money sale in the past year that features obsoletes and nationals, including the Schingoethe sale (great stuff there!). I have a check waiting for you, too! Beyond the above, with co-author David M. Sundman and in cooperation with a special scrip note project by Kevin Lafond, Dave Sundman and I are busy with historical research. We are anticipating the production of a book-length study on the subject, contain- ing all you wanted to know about New Hampshire currency, plus a lot of things you never thought about—including illustrations with people, buildings, bank archives, and more. If you have information of this type to share, please let me know. Dave Bowers Box 539 Wolfeboro Falls, NH 03896 e-mail: qdbarchive@metrocast.net 48 January/February 2005 • Whole No. 235 • PAPER MONEY their accounts by April 1, 1864, or the value of their deposits would automati- cally be reduced by one-third. We can well imagine the consternation that this announcement caused in many wealthy and influential families. As the situation continued to deteriorate, it became obvious that Memminger's plan had failed. The Congress, as such bodies often do, looked around for someone to blame and settled on Memminger. The Secretary heard about the plans to oust him and quietly resigned on June 15, 1864. He was suc- ceeded by brilliant financier George A. Trenholm who knew that it was far too late to save the doomed Confederacy, but felt compelled to try. The forced funding legislation is explained in great detail by Dr. Douglas Ball in his book Financial Failure and Confederate Defeat, pages 179 to 189. For an in-depth analysis of the financial tribulations of the Confederate govern- ment, this book is without equal. Dr. Ball points out that the old notes continued to circulate in such num- bers that by the Act of December 30, 1864, the Congress was forced to extend the penalty date to July 1, 1865. Meanwhile, the Treasury Note Bureau in Columbia, S.C. had been busy supervising the paper money contractors as they turned out more and more $1 Keatinge & Ball issue. Female rep- resenting Ceres, Goddess of the Harvest at left. Black on tan paper. Back is blank. Engraved date: March 15, 1864. Serial letter A. Written ser- ial number. Written signature-like inscription at bottom edge: "Keatinge & Ball." Note: Sheheen 933 is num- ber 32. currency. Originally there had been four contractors in Columbia: Keatinge & Ball, Evans & Cogswell, Blanton Duncan and Dr. J. T. Paterson. Hoyer & Ludwig had declined to move from Richmond. Eventually Blanton Duncan had been sent packing because of repeated violations of Treasury regulations, and Dr. Paterson had become involved in a bitter dispute with Memminger which caused him to lose his government con- tract. Left now were Evans & Cogswell, which seemed to operate above the fray, and Keatinge & Ball, headed by master engraver Edward Keatinge, a British subject. It was the latter firm that left an interesting legacy for modern collectors. Not many details have survived, but we know that at some point in late 1863 or early 1864, Keatinge learned about the government's plan to institute its forced funding which would make the old issue notes worthless on April 1, 1864. To get around this problem and insure that his employees would be paid in notes not subject to the penalty, Keatinge designed, printed and issued his own notes in denominations of fifty cents, one dollar and two dollars. Dr. Ball told me that Keatinge did not need Treasury Department autho- rization to issue his own notes because he plainly stated on his notes that they were "payable on demand in Confederate Treasury notes when the sum of Ten Dollars is presented." The notes bore the prominent printed date of March 15, 1864, later than the dates printed on any of the old issue Confederate notes. If the situation required it, Keatinge evidently felt that he could pay his employees as well as the slave owners (each printing press required a printer and two slave helpers) CaY194S:. t;') vox Ick.,74A Ix. U 7990 W „.. 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 will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. ht Currency Auctions P.O. Box 7364, Overland Park, KS 66207 • 800-243-5211 • 913-338-3779 • Fax 913-338-4754 Email: lyn@lynknight.com • support@lynknight.com www.lynknight.com Deal With The Leading Auction Company in U.S. Currency PAPER MONEY • January/February 2005 • Whole No. 235 49 50 January/February 2005 • Whole No. 235 • PAPER MONEY with notes that retained their value. Of interest is the fact that all of the issued notes bore the written inscription "Keatinge & Ball" rather than the autograph of Keatinge or one of his assistants. At first glance the inscription appears to be a signature, the traditional hallmark of Confederate notes and the private ban- knotes issued before them. It appears that Keatinge & Ball notes were issued for only a short time. There is no doubt that they were accepted and circulated. However, Confederate notes of the February 17, 1864, issue (the new issue) were soon available in denominations from fifty cents to five hundred dollars, so the com- pany had no further need to issue its own notes. Dr. Ball estimates that less than $500 worth of Keatinge & Ball notes were issued which accounts for the low serial numbers usually seen. He believes that Keatinge may have redeemed all the notes returned to him and kept them in his files which were plundered by Sherman's troops or others when Columbia was essentially destroyed in February of 1865. Union soldiers liked to send such notes to their relatives as souvenirs of their great adventure. $2 Keatinge & Ball issue. Portrait of boy at upper left. Figure representing Justice at center. Portrait of Thomas Jefferson at right. Black on tan paper. Back is blank. Engraved date: March 15, 1864. Serial letter A. Written ser- ial number. Written signature-like inscription at bottom edge: "Keatinge & Ball." Note: Sheheen 934 is num- ber 70. It appears that the dollar note is the rarest of the three. All are the same size, about five inches long and two and a half inches wide. Under a magnifier, we can see that a lot of care went into their designs. They are beautifully engraved, perhaps by Keatinge himself. So far as I can determine, only plate latter "A" was used. Collectors would be interested in knowing if any reader has a note with another plate letter or a serial number above one hundred. I have only one specimen of each denomination, and they are worn to the point that they don't photocopy well. For that reason I have re-touched the photocopies to enhance the details on the illustrations with this article. So far as know, these are the sharpest images of these notes in existence. Perhaps someday a few crisp Uncirculated specimens will turn up, but I believe it is a little late for that to happen. Editor's note: we would be pleased to receive reports of additional plate lettered notes, and higher serial numbers. We will print any additional infor- mation we receive in these pages. Correction Longtime Memphis exhibit chairman Mart Delger points out that his telephone number appeared incor- rectly in a recent issue of Paper Money. Mart's correct telephone number is 1-269-668- 4234. Interested exhibitors may contact Mart to obtain an exhibit application for the upcoming Memphis annual Paper Money Show by phone or by writing to him at 9677 Paw Paw Lake Drive, Mattawan, MI 49071. Dates for the 29th International Paper Money Show, sponsored by Memphis Coin Club, are June 17- 19 at the Cook Convention Center. The Editor regrets any inconvenience arising from publication of the incorrect telephone number. *** le • • • • a. 4. • • • • • "r•. •• **** LM PAPER MONEY • January/February 2005 • Whole No. 235 51 ************************************************** * , - /44v/by% , ' t.. CSA & OBSOLETE NOTES I* ARE MY BUSINESS!! two. 'BANK or CAPE FEM." r.;;"" SPMC LM #6 CSA, Obsolete Banknotes, Scrip, Bonds, Checks & Paper Americana I have been a full-time dealer in Confederate and obsolete currency for over 28 years. I've helped many collectors assemble complete CSA type sets as well as find rare varieties. I've also helped hundreds of collectors with their obsolete note interests from rare to common. My catalogs are well known in both the dealer and collector fields for their reference value. If you are a serious collec- tor of CSA notes, bonds or obsolete bank notes, I can offer you the following: 1. Thousands of bank notes in the Confederate and obsolete areas. 2. Accurate descriptions, grading and fair prices. 3. Reliable dealings with prompt and friendly service. 4. The knowledge and research capabilities to properly attribute these notes. 5. A want list service that has helped many find notes which they could not locate. 6. Top prices when buying one note or an entire collection. If you are selling, I want to buy your notes! 7. The respect and integrity of dealings that are well known in the hobby. 8. Representation to bid for clients at major auctions. 9. Paying finder's fees on collections referred to me. 10. Appraisal services for reasonable fees. 11. Institution and Museum services for note authentication and valuations. 12. Strong cash decisions and immediate payment for your material. If you collect, I offer my 2nd edition 2004 60-page .catalog for $5.00, refundable on first order. It features one of the largest CSA note inventories available, an extensive obsolete and scrip section, uncut sheets of notes, U.S. fractional notes, a Continental and Colonial section and a reference book section. Whether you are buying or selling, I would be pleased to have you contact me. HUGH SHULL Charter Member "TWENTY-EIGHTH YEAR IN BUSINESS" P.O. Box 2522, Lexington, SC 29071 PH: (803) 996-3660 FAX: (803) 996-4885 I aLu.-::-,-.-L--- 'ILAITEIAE@ Cc3l-SID).•--- _ _— Wbere:s, it is believed 11,..101IN A. LAWRENCE, of troy, N. Y. in heir at 1 pew to a la, Estate in England. culled ftThigigereoley E,fisterorder to uceonsplith the name is obliged titt raise money by nutting:seri,. which arcAnd where,. said La w retie(' is acute...sof recovering linii.nn i'iniviii, and in lo be the first lien on nuid Estill, Now thetefore. for soil in consideration or seeet...,—... Dollars to,ne in bun pai. I hereby agree to pay Ole bearer or thisP'Cup -,?:/..,..--e..... -•... --ui,e, Doll, oot of the first m drid Ser oneys received front said Estate, and l do further agree to di., expend said moneys receive tO sai, for recovery or id Estate. I Dole, Troy, dome, 30, i6... *************************************************** 52 January/February 2005 • Whole No. 235 • PAPER MONEY A North Carolina's Wallpaper Note? By Bob Schreiner During the Civil War, the South issued much paper money, not just the famous notes of the Confederacy, but also issues from the Southern States, banks and mer- chants. However, the war cut the South off from its suppliers of paper and steel plate printing technology, resources responsible for the great beauty of paper money in the 1850s. Many Civil War era notes were simply printed, some- times using the reverse of remain- dered paper money to conserve paper. The 50-cent scrip note of North Carolina's Greensboro' Mutual Life Insurance and Trust Company, dated March 1, 1862, is known as the wallpaper note, because it is allegedly printed on wallpaper pressed into service as note paper. The paper is tan with black lettering and figures. It is embellished with the banner "50 CENTS" in the cen- ter, the large fleur-de-lis-like figure in the top right, "C" on the right, and "CENTS" to the left, all in dark yel- low-orange. The note takes its name from the pattern of smaller fleurs, printed in green, that constitute the patterned background for the note. But is it really wallpaper? Not likely. The best evidence for this conclusion is that the pattern is contained within the note borders, at least on the sides and top of this example, and probably also at the bottom, although the close trimming there doesn't permit a conclusive finding. Wallpaper would have a pattern larger than the note's approximately 6" by 3" size. The so-called wallpaper background pattern exists for a couple of purposes: (1) it adds eye appeal to the note, perhaps con- tributing to its acceptability to the public, and (2) the color and design complexity provide a degree of counterfeit protection. The orange "protectors," as these devices are called, serve the same purposes, and such usage was common on obsolete paper money. The note was printed by Sterling, Campbell, & Albright of Greensboro. Observe that the city name is spelled two ways: The current spelling for the company name and the printer's location (the imprint is in tiny print in the lower left edge), and Greensborough for the place name at center left. The "wallpaper note" designation adds a romantic touch to this note, but it's a misleading name. The note is, however, an attractive example of how the South used available resources to produce an interesting and appeal- ing piece paper money. Novern 4% Imo A- FIFTY ' cr '1.,...- ..,.. , „earenc4lmvoi)9h 64. ' e ii -.;..11..fri, /, 1'812. , .f7/41.1 1:, le ,frairt !hal 46 Aa. or k. WIR ,quwfr n-d FrE araffs 1;7 1111A ttf.'"'"'" ) .fi , /, ailai'ie i'' /Lim , 44' 44,cair,-, tit cretied ranilA, when hrreliftralra to IIIP amatsni ei. .....(—_- :;., ,- _.-- -,. ai‘ mate fftdlaa are lite...tinted. — ...,471. auevr. I George W. Wait Memorial Research Prize Deadline Nears I March 15th I See November/December issue page 421 for Details 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 E-mail: Marblebert@aol.com PAPER MONEY • January/February 2005 • Whole No. 235 53 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 1001 Des Moines, Iowa 50309-2316 (515) 243-7363 Fax: (515) 288-8681 At 85 It's Still Time - Currency & Coin Dealer Over 50 Years I attend about 15 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 Whose Portrait Is It? Daniel W. Courts or Jonathan Worth By Jerry Roughton & Paul Horner mitt ,:,1. - - - -vig,p4,t: .-+:,- .T.:.,, ,, .,..r. ,51.14111.11P ' pi /)Asyrr,; ."1".0 /. iv; 54 January/February 2005 • Whole No. 235 • PAPER MONEY Above: $5 North Carolina state Treasury Note, January 1, 1863. Adapted from North Carolina Numismatic Scrapbook (Autumn 2002) C OMPARE THE PORTRAIT, AT LEFT BELOW, THATappears on $5 and $10 State Treasury Notes, with the painted por-trait below. Do they appear to be the same gentleman? Our mystery gentleman in the portrait appears on the popular $5 "View "Portrait of Jonathan Worth" Unsigned and undated oil painting. Courtesy of the North Carolina Collection, Academic Affairs Library, University of North Carolina at Chapel Hill INSURANCE For The PaperMoney Collector Your homeowners insurance is rarely enough to cover your collectibles. We have provided economical, dependable collectibles insurance since 1966. • Sample collector rates: $3,000 for $14, 510,000 for $38, S25,000 for $95, $50,000 for $190, 5100.000 for $278, $200,000 for $418. Above $200,000, rate is $1 .40 per SI,000. • Our insurance carrier is AM Best's rated A+ (Superior). •We insure paper money, paper ephemera, manuscripts, books, autographs and scores of other collectibles. "One-stop" service for practically everything you collect. • 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 collectibles. • Detailed inventory and/or professional appraisal not required. Collectors list items over $5,000, dealers no listing required. • See our website (or call, fax, e-mail us) for full information, including standard exclusions. See the online application and rate quote forms on our website Collectibles Insurance Agency P.O. Box 1200-PM • Westminster MD 21158 gls■ E-Mail: info@insurecollectibles.com VISA' Dila° PAPER MONEY • January/February 2005 • Whole No. 235 55 of Harbor" and $10 "State Capitol" Treasury Notes and a few bonds, all with a printed date of January 1st 1863. These notes bear the imprint, "Eng'd by J. T. Paterson & Co. Augusta, Ga." Over the years, catalogers 1 of North Carolina State Treasury Notes have identified the portrait as that of D. W. Courts, Public Treasurer. After much study and comparisons of known portraits of Daniel Courts with that of Jonathan Worth, we are of the opinion that it is actually a portrait of Jonathan Worth, who followed Courts as Treasurer. In addition to portrait comparisons further evidence is via the date these notes were issued. The Act of the North Carolina General Assembly that authorized these notes was passed on the 20th of December, 1862. Jonathan Worth assumed the office of Public Treasurer in January, 1863 2 and records show that these notes were first issued early in 1864. With the span of over a year's time between assuming the office of treasurer and the release of the first notes, Worth had ample time to order the new issue with his portrait. It is high- ly unlikely the new treasurer would have sanctioned the portrait of the former treasurer (Courts), a political rival, to be used. Until a conclusive contemporary admission to the identity of the gentle- man comes forth, the authors are satisfied that he is JONATHAN WORTH. NOTES 1. A. B. Andrews, Jr. of Raleigh, first known cataloguer of the N.C. State Treasury Notes Series, identified the portrait as that of D. W. Courts in his listing of the notes in 1908. 2. Jonathan Worth resigned from the House of Commons, effective December 20, 1862, to become Public Treasurer. Editor's note: The authors are SPMC Wismer state catalogers for North Carolina. To report NC notes, or for info about North Carolina Numismatic Scrapbook, contact co-Editors/Publishers Horner and Roughton at NCNS, PO Box 793, Kenansville, NC 28349. Call Toll Free:1-888-837-9537 • Fax: (410) 876-9233 More Info? Need A Rate Quote? Visit: www.collectinsure.com 56 January/February 2005 • Whole No. 235 • PAPER MONEY Grading Confederate Notes and Bonds, One Man's Opinion By Pierre Fricke T RADING IS ON THE MINDS OF MOST PAPER MONEY collectors, and that includes those who desire to collect Confederate Treasury Notes and Bonds. I introduced a modified grading system, similar to that used by many of the members of the Early American Coppers club, on my web site www.csaquotes.com (CSAQ) which has proven useful. The Early American Copper community has been using this grading style for decades. Jack Robinson popularized this grading style in his well known "Copper Quotes by Robinson," which has been pub- lished for two decades. Condition - Assessing Eye Appeal At many an auction or coin and currency show two or more pieces of the same type, variety and technical grade may appear. Many times the price real- ized varies greatly from piece to piece. Consider these results: 1. 1861 T-22 CR-151 VF, choice cut and/or color: $2700.00 2. 1861 T-22 CR-151 VF, a few trivial distractions consistent with the grade, or cut a bit off: $2000.00 3. 1861 T-22 CR-151 VF, washed and pressed: $1600.00 4. 1861 T-22 CR - 151 VF, very small edge tear, minor stain or trivial repair, net F-VF: $1300.00 5. 1861 T-22 CR-151 VF, some staining, or minor repair/damage, net F: $800.00 6. 1861 T-22 CR-151 VF, significant staining or repair/damage, net VG: $300.00 This is a reflection of the real world of currency trading. How can one determine the value of an "VF" 1861 T-22 CR-151 with the current price guides? Generally, notes fall into one of three categories: Oh Wow!, That's Nice, and Yuk! Of course, there are those inbetween as well, but for the most part, that sums it up for any given grade level. An "Oh Wow!" note can be considered CHOICE. CHOICE means one or several things: Exceptionally clean surfaces and color (free from marks and stains), or a great cut on an attractive note. Color is important in that it must be attractive; no washed notes here. Also, there cannot be any significant distrac- tions on the note. The more pleasing the note, above and beyond normal, (i.e. clean surfaces, cut and color) the more likely the note will command a "run- away" price. CHOICE refers to a note that is exceptionally clean with nice color or cut with no more than average handling for the grade (preferably less). A note that PAPER MONEY • January/February 2005 • Whole No. 235 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: lhorwedel@insightbb.com website: horwedelscurrency.com Always Wanted Monmouth County, New Jersey Obsoletes — Nationals — Scrip Histories and Memorabilia Allenhurst — 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 NBUCKMAN@OPTONLINE.NET WANTED! Information on W.L. Ormsby and the New York Bank Note Company circa the 1840s-1860s, personal information about Ormsby, examples of his paper money (will buy the bills or would be delighted to correspond and receive copies, and anything else). I am planning to do a monograph on Ormsby. Dave Bowers P.O. Box 539 Wolfeboro Falls, NH 03896 Qdbarchive@metrocast.net 57 WE NEED YOUR HELP at the HIGGINS MUSEUM We are in the closing stages of compiling for publication a comprehensive database of surviving notes from all note issuing National Banks of Iowa. The database presently includes over 10,000 notes, but we would like to make certain any notes you own or know of are included. All individual collectors or dealers providing useful information in response to this solicitation will be provided with access to the database information which results. INFORMATION REQUIRED FOR INCLUSION IN THE IOWA NATIONAL BANK NOTE CENSUS DATABASE: Please provide as much of the following information as is available; charter number, type, denomination, bank serial number, plate position letter, Treasury serial number, regional letter, grade and any miscellaneous comments as may be pertinent with respect to the condition or provenance of the note. The required information may be mailed, phoned, FAXed, or e-mailed to us as may be appropriate: Higgins Museum P.O. Box 1456 Iowa City, IA 52244 L Phone -- 515-537-2615 FAX -- 319-338-5585 E-mail -- xcp2@msn.com 1r 58 January/February 2005 • Whole No. 235 • PAPER MONEY „...... .... s;....... ... . ■ ....- ;3• C 7* i 7 . ..-'); lit 1 ; ; ; ■::" . , . .4 "III II 1 '— ;:'t• r ,L Av 'ii.,... _— 7 .-.— "...* .* ' ', (.: 1, P riJ ro, If r 0,. it ti ,,, '.4. t4 r . ti 5.. .. ..1 k -... -.D'1$ t ,•-• . . ,..„ -1)' j #1(//if/ ---- /4 , fe- lelAsre),wei:&g:-/ - r ,.... 1 Above: Type 67, CR504A has impeccable surfaces, cut and/or gorgeous color may be worth more than CHOICE. AVERAGE refers to an original note that has typical handling for the grade. A high grade XF or better piece has few distractions; a VG piece can have more. A washed and /or pressed note that is attractive can fall into AVER- AGE. SCUDZY represents varying degrees of "Yuk!" Note that these notes are collectable, and do have value, just not as much as AVERAGE or CHOICE. A note with relatively minor repair or damage will be worth more than SCUDZY, but certainly not AVERAGE. A SCUDZY note may be harsh- ly washed and restored; or has significant repair and/or damage. SCUDZY notes may also be original, but have problems like tears, miss- ing pieces or edge problems that detract from the note. A minor problem or two is not cause enough for a note to be SCUDZY, however, anything that really detracts will put it into the SCUDZY category. Usually a note with more than one grade level of reduction due to problems is SCUDZY. Problems detract from the technical grade to determine net grade. This type of grading represents a godsend to those who are concerned about quality and paying and getting fair prices for notes. On the other hand, this additional layer of grading may seem excessive to some. Some may not like it! What are the motivations of those who criticize it? Perhaps it can be improved and they have a good idea. Or are they selling or buying? If so, what side of the equation is their argument vs. what they are trying to do?!? It reflects the real world. And has decades of use in numismatics at least in a couple of segments. Think about it. Technical Grading - CSA Currency A "conservative" interpretation of grading that is commonly used in the marketplace includes general descriptions: Poor: Severely worn and damaged. May have more than 25% of the note missing. Fair: Filler. Severely worn. Part of the note may be missing; e.g., no more than 25% and that may be crudely repaired with backing. About Good: Heavily worn. Up to 10% of the note may be missing, but no more. May be crudely repaired. Earlier generations called this "Fair". Good: Heavily worn but intact or reasonably repaired with backing or archival tape. May have edge splits and some tears not readily visible and obvi- ous into the note. G-VG: Can't quite make VG due to problems or excessive wear. Very Good: Heavily worn and intact. It may have heavy creases and will have lots of wrinkling from handling. Only minor stains, edge splits and holes We are proud to continue the numismatic legacy begun in 1933 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 needs. 98 Main Street #201 Tiburon, CA 1-888-8KAGINS www.kagins.com Call Judy 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 HIT P.O. BOX 6778 San Mateo, California 94403 (650) 458-8842 Fax: (650) 458-8843 E-mail: BillLitWaol.com Member SPMC, PCDA, ANA 0 R TPO NI IS THE #1 WHOLESALE SOURCE OF Paper money (historical & modern ), notgeld, coins (Chinese, Roman, modern, etc.), tokens, stamps, checks, Primitive monies, etc. Wholesale list is available on request Please contact us at: P. O. Box 1-S, Ridgefield Park, NJ - 07660 - USA Toll Free: 1-800-775-8450 Telephone: 1-201-641-6641 / Fax: 1-201-641-1700 E-mail: Order@pomexport.com / Website: www.Pomexport.com y 1111101:14,1111tS Buying Carl Bombara Selling 1 .1. United States Currency P.O. Box 524 New York, N.Y. 10116-0524 Phone 212 989-9108 Pcd R-U Ritin' a Buk? I can help you. . enthusiast-media.com ltd W. write right!' Books, Magazines, Newsletters That Connect with Readers Fred L. Reed III PURifitttigtoilitittent/Fdltor 5030 North May Avenue # 254 Oklahoma City, OK 73112 E-rnall:freed3@alrmall.net PAPER MONEY • January/February 2005 • Whole No. 235 59 DO YOU COLLECT FISCAL PAPER? The American Society of Check Collectors publishes a quarterly journal for members. Visit our website at http://members.aol.com/asccinfo 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. Jeta■s•ut r{411 ectai.t 11;‘, hrtex