Paper Money - Vol. XLIV, No. 6 - Whole No. 240 - November - December 2005

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OFFICIAL JOURNAL OF THE SOCIETY VOL. XLIV, No. 6 WHOLE No. 240 Nov/DEc 2005OF PAPER MONEY COLLECTORS PAPER MONEY „ MI! JO$N W000. Ciat ESTABLISHED 1880 SOW:11" MK:0. MONEY COLLECT011.5cda 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. DIANA HERZOG 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. MPC. pp, T MARTIN GENGERKE Author of U:S. Paper Money Records and American Numismatic Auctions as well as numerous articles in Paper Money Magazine, the Essay Proof Journal, Bank Note Reporter and Financial History. Winner of the only award bestowed by the Numismatic Literary Guild for excellence in cataloging, and the 1999 President's Medal from the American Numismatic Association. Member: ANA, SPMC. Small Size U.S. Currency; Canadian Banknote Issues; U.S. Coins. SCOTT LINDQUIST BA, Minot State University, Business Administration/Management. Contributor to the Standard Guide to Small Size U.S. Paper Money U.S. Paper Money Records. Professional Numismatist and sole proprietor of The Coin Cellar for 16 years. Life Member: ANA, CSNS. Member: PCDA, FCCB, SPMC. U.S. and World Coins. ANDY LUSTIG has been dealing in U.S. and World coins since 1975, and has attended more than 2,000 coin shows and auctions. His specialties include U.S. patterns, pioneer gold, and rarities of all series. He is a co-founder of The 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. Please call for our auction schedule. Antique Stocks and Bonds; U.S. Coins; Paper Money. STEPHEN GOLDSMITH Executive Vice President, R.M. Smythe & Co., Inc. BA, Brooklyn College. Contributor to Paper Money of the 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. U.S. and World Coins. NIRAT LERTCHITVIKUL has been dealing in U.S. and World coins since 1976. Area of specialties include U.S. and World coins. Nirat has been a contributor to many world coin catalogues, and has authenticated world coins for third party grading services. Founder of website. Member: ANA, FUN, NAT, PCSG, NGC, GSNA, CSNS U.S. Coins and Medals. JAY ERLICHMAN Contributor to A Guide Book of U.S. Coins and A Guide Book of British 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 time member of the New York Numismatic Society, involved with the Membership Committee. Member: ANA, ANS, AINA, FRNS. 2 Rector Street, 12th Floor, New York, NY 10006-1844 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-312-6370 EMAIL: WEBSITE: PAPER MONEY • November/December 2005 • Whole No. 241 401 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 27515-2331 © Society of Paper Money Collectors, Inc., 2005. All rights reserved. Reproduction of any article, in whole or in part, without express written permission, is pro- hibited. 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 specific 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 number should appear on the first page. Authors should retain a copy for their records. Authors are encour- aged to submit a copy on a 3 1/2-inch MAC disk, identified with the name and version of software used. A double-spaced printout must accompany the disk. Authors may also transmit articles via e-mail to the Editor at the SPMC web site ( ). Original illustrations are preferred 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. Jpegs 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 excep- tional cases where special artwork or additional pro- duction is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). With advance approval, camera-ready copy, or elec- tronic ads in pdf format, or in Quark Express on a MAC zip disk or CD with fonts supplied, 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 posi- tion may be requested, but not guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper curren- cy, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLIV, No. 6 Whole No. 240 NOVEMBER/DECEMBER 2005 15.9%10031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: IN THIS ISSUE FEATURES The First XXth Century Banks of Panama 403 By Joaquin Gil del Real Where's George? Website Tracks Currency Travels in Commerce . . . 412 By Fred Reed Epitaph for a Swindler Charles 'Get Rich Quick' Ponzi 442 By Albert Irizarry "Old Mr. Greenbacks," Salmon P. Chase 453 By Frank Granger Cash available tickets replace coins/currency in gaming dens 454 By Jim Noll Collector Noll's varied tastes lead to new book 460 By Fred Reed Latin paper money book mines ABNCo archives 460 By Fred Reed On This Date in Paper Money History 461, 463 By Fred Reed The Buck Starts Here: Additional Female Banknote Engravers 464 By Gene Hessler The Paper Column: Head-to-Toe Plates on $1 FRBNS 470 By Peter Huntoon SOCIETY NEWS Ron Horstman bids his friend Art Kagin adieu 448 By Ron Horstman George W. Wait Prize Official Announcement 449 The Art Kagin I knew was the genuine article 450 By Fred Reed SPMC members hear from Harold Don Allen 452 By Mark Anderson Annual Index 466 Compiled by George Tremmel Death claims Dolly Criswell 467 President's Column 472 I goofed, please excuse my failure Due to an oversight, ye olde Editor (emphasis on "olde") forgot to include the 2006 annual dues and contributions envelope in the last issue of Paper Money. Mea culpa. You will find the envelope in this issue. If you joined the Society prior to October 2005, and are not a life member please remit your 2006 dues now. SOCIETY OF PAPER MONEY COLLECTORS INC. 402 November/December 2005 • Whole No. 241 • PAPER MONEY Society of Paper Money Collectors The Society of Paper Money Collectors (SPMC) was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affili- ated with the American Numismatic Association. The annual SPMC meeting is held in June at the Memphis IPMS (International Paper Money Show). Up-to-date information about the SPMC and its activities can be found on its Internet web site . MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed 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 eligi- ble 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 membership 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 available. 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 a fall issue of Paper Money. Checks should be sent to the Society Secretary. OFFICERS ELECTED OFFICERS: PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 VICE-PRESIDENT Mark Anderson, 335 Court St. #149, Brooklyn, NY 11231 SECRETARY Bob Schreiner, POB 2331, Chapel Hill, NC 27515 TREASURER Bob Moon, 201 Baxter Court, Delmar, NY 12054 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 Wes Duran, P.O. Box 91, Twin Lakes, CO 81251-0091 Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 Ronald L. Horstman, 5010 Timber Ln., Gerald, MO 63037 Robert J. Kravitz, P.O. Box 303, Wilton, CA 95693-0303 Tom Minerley, 3457 Galway Rd., Ballston Spa, NY 12020 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 Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 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 Ron Horstman, 5010 Timber Ln., Gerald, MO 63037 WISMER BOOK PROJECT COORDINATOR Bob Cochran, P.O. Box 1085, Florissant, MO 63031 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 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 Sine!' Colon (Panama). PAPER MONEY • November/December 2005 • Whole No. 241 403 The First XXth Century Banks of Panama By Joaquin Gil del Real T HE FIRST PRIVATE BANK TO ESTABLISH OPERATIONS INPanama in the 20th Century was the International BankingCorporation. Originally organized in Bridgeport, Connecticut, inJune of 1901, the Bank quickly grew to have many international branches. On August 17, 1904, 1 the Bank registered its Statutes, and opened its doors to the public on the 19th of that same month. Their office was located in front of the Panama Canal building, with Mr. P.G. Eastwick as the first Branch Manager. 2 J.S. Bache (brokers on the New York Stock Exchange) announced on the 21st of November 1915, that it had acquired all of the shares of IBC at $160.00 each. A few days later it was reported that the buyer was the National City Bank. 3 IBC continued operating in Panama, under its own name. It was not until March of 1926 that the branches in Panama and Colon were transferred to the National City Bank of New York. 4 The Bank, today known as Citicorp, is still active in Panama, getting ready to celebrate its 100th anniversary. Though established by Law 74 of 13 June 1904, the Banco Hipotecario y Prendario, 5 a govern- ment bank, did not open its doors to the public until October 12th of that year. The Bank's first Manager was Mr. Albino Arosemena. 6 In 1911, the Law creating the bank was reformed, and the name was changed to Banco Nacional de Panama, 7 which it still carries to this date. The Panama Banking Company, organized under the laws of the State of West Virginia, regis- tered its Statues on March 7, 1905. 8 The bank opened its doors in a locale in front of the Palace of Government. Its Manager was Mr. P.D. Fellinger. 9 Panama Banking Company in Colon. twast Zoot ark%ae f,,FETY DEPos,;°61 BOXES 404 November/December 2005 • Whole No. 241 • PAPER MONEY Unfortunately by 1922 the bank was having problems and the Brandon Family, owners or the bank, assigned its shares to its three creditors, American Foreign Bank (Chase Manhattan), Banco Nacional de Panama and the International Banking Corporation (Citicorp) for liquidation according to the law. 10 The Banco Industrial de Santiago de Cuba formalized its documenta- tion on July 15, 1909 11 beginning operations that same day in an office on Central Avenue, telephone 188, with Mr. Pedro Arias F. as its representa- tive. 12 We were unable to come up with the fortunes of this bank, though it was listed in the 1912/13 Isthmian Tourist Guide and Business Directory, of Ancon, Canal Zone. In the City of Colon, on December 12, 1912, the papers for the Bank or the Canal Zone were protocolized. This bank was also organized under the laws of the State or West Virginia. 13 The bank began operations on November 30, 1912. 14 (This was two weeks before registering its docu- ments, which did cause a small furor.) Its location was on 11th Street, right in front of the Commissary. Ramon Arias F., brother of Pedro of the Cuban Bank, was the Vice-President in charge. In 1915, it opened a branch on Central Avenue of the Capitol City. 15 By February of 1917, the bank was in financial difficulties and beginning the process of liquidation. 16 The First World War did have a negative impact on some banks in Panama. On September 5th, 1913, another West Virginia organized bank, the Continental Banking Corporation, regis- tered its documents. 17 The bank began to do business the following day in an office on Central Avenue in front or the new Railroad Station. 18 Sadly, this institution suffered the same fate as the Bank of the Canal Zone, and its termination began in February of 1917. 19 Seven months after its separation from Colombia, on November 3, 1903, the National Assembly of the Republic of Panama proclaimed Law 84 of June 1904, whereby the monetary unit for the country would be the Balboa. Upon issuance or this Law, Panama communicated to the American authorities its acquiescence to formalize the Monetary Convention with the United States, whereby American and Panamanian coinage would circulate freely throughout the Country at par, including in those areas under U.S. administration. Articles 116 and 117 of the Constitution of the Republic prohibited any Above: Check on the Bank of the Canal Zone, 191-. Below: Bank of the Canal Zone advertisement. PAPER MONEY • November/December 2005 • Whole No. 241 405 private banks from issuing paper money or bank bills. However, in the decade of the 1910s various Panamanian Statesmen recommended the necessity of granting the Banco Nacional de Panama the faculty to issue bank bills, and in January of 1911 the Legislative Assembly passed Law 45 of 28 January 1911 granting powers to the Banco Nacional to issue paper money, i.e. Article 3: The Banco Nacional is authorized to issue Bank notes to the sum of FIVE HUNDRED THOUSAND (B /500,000) in denomi- nations of one, two, five, ten, twenty and fifty Balboas. Nothing ever came of this. During the Presidency of Dr. Belisario Porras, Law 19 of 31 January, 1913, was passed by which the Executive could celebrate a contract autho- rizing the founding of the Banco de Panama, to which was granted the fac- ulty of emitting bank bills. Regardless of all these nationalistic measures the bank bills never did come to fruition, the Republic without doubt having been compromised by the previously mentioned Monetary Convention. The situation reached a humiliating extreme in 1917, when Panama was obligated to comply with the demand of the Governor of the Canal Zone to withdraw one million Balboas in Panamanian currency from circu- lation. 20 On June 31, 1915, Mr. Rolfe Emerson Billing presented for their certifi- cation documents indicating his election as Manager of the Panama Branch of the Commercial National Bank. 21 The branch had begun operations on the 1st of March of that year 22 in a locale that was rented from Mrs. Dolores Icaza de Arias. It consisted of the first two floors of a house on the corner of Sixth and Independence Park. 23 Shortly thereafter Chancellor (Minister of Foreign Affairs) Ernesto T. Lefevre wrote on July 24 to the American Ambassador protesting the instal- lation of banking services, 24 and on May 24th 1916 (the following year) the Commercial National Bank, officially registered its Statutes. 25 (The Commercial National Bank had a strong representation in Washington D.C. and functioned as a depository for funds related to the Panama Canal.) The Commercial Code of the Republic was modified by the National assembly by means of Law 37 on February 27, 1917. Article 5 of the new modification specified that no bank may be established until it has been previously authorized to do so. 26 In compliance with the new Article, the International Banking Corporation obtained its authorization via Decree International Banking Corporation (at left), Cathedral Park, Panama City. (Original Escritura for International Banking Corporation, August 17, 1904. Nc fo Star and Herald report of the opening of the International Banking Corporation, August 20, 1904 November/December 2005 • Whole No. 241 • PAPER MONEY /&-t-i Q-4 406 • 166/611949.61PRAMIDOI~ • itionmilant) ilinkiag W141'11.11°11 rft. Ott latlermation ot Ike publics, and to aroma eeveret inquiritie that have born mule, wit' wit: seta that the latertatietal Banking( Corpora lion, Oily of Panatna,, whioh began trustee., yee•er4ay, wilt transact a beret backlog' butineee, which in• eludes the reofilving of depoeit t, a rb• loot to oheok, thus leo Waling the Wein.** of the city mero.anta as well as plating at Ste clirp3sel of mere :ante 66$ lh the City of Pana-n%, an oppor tunny to trAbetiot their b5nking butt. Er a • by mail. Further pa r,-Ac uteri way he obtsint'd by tto Mammals, Interco tioni►l bank ng Oorporation, Oity of Pat.11M • ThA nAtnand fnr th ,4 flAr Ail rif thA 4 e d I tt r ---r we--- -43444;6, --,,, ,l/-ee;azAchtwv/4) ,Ge-e /4" le INTERNACIONAL BANKING CORPORATION LLTABLISED 1,, 1902 SIXTY, WALL STREET. NEW YORK H. T. S. G.,EEN PoLsioc., .m+u {RAMA ES: BOMBAr CACUI TA. CANTON. CEBU COLON EMPIRE C, Z. HA NKOW, HONG HONG 1.100E LONDON MANILA MEXICO CITY PANAA.. PEKING SAN FRANCISCO S A NONA,M SINGAPORE. YOKOHAMA THE PANAMA BRANCH WAS ESTABLISHED IN 1904 CORRESPONDENTS IN ALL PARTS OF THE WORLD. : D.'', Cob. "• transfo... • "; 3- CMFOUF, L-1 3 -, 0,11" He WORLD, J FORSYTH- MANAGER EcT( /RS. Tomas H. Hubbard. Chairman. Chart, B. Alexander, Jan, S. Bache, Coy Garr, Hal,. Fiske, Fronk P. Frazier Linnet Hop:naffs. John R. Heoman. Will/OM Hand., Erskine Hewitt. II,llia T Hincks. Cni,ntle Hod. John Hubbard. Minor C. Keith. Henry P. McIntosh. George H. M fey. Pierre Huh. Was Barclay Po,nas. Willam Sodom,,. Hermann Sielken. Valentine P. Snider Sir Wiliam C. 8. Horne. Janes ,,,:ilberf While TWENTI-THIRD SEMI-ANUAL STATEMENT OF INTERNACIONAL BANKING CORPORATION AT CLOSE OF BUSINESS DECEMBER 31. 1913 ASSETS LIABILITIES Seca - its, and larcianents. eluding bank premises and other real tsl , le of which se- curities aggrefating 5 2.796, 500,00 have. been iodged as cover lor acceptances, den, tits, etc, 1,996,691,69 Ti,,,r Loans and Bill Discoanted 5,921,839.89 &anent, loans and adrinay 9,122,495,72 Bills and rpnlittance.r on hand and in trinaut, including bills lodged as cover againts acce. planet; by London booboos for per contra . 9 754.565,37 Bullion and fiiretl,n money on hung. 540,677.10 Dnyfrone hanks and correspond. en/. 1,654,739,96 Cosh on hand arid in baud deposiPrie , 7,178,433,69 Conlercio/ credit per conlro 4.797,27S.00 Capitol 5, :1 250,000,00 Surplus 3 250,000,08 Profit and lms 773,688,61 Dividend payable M sy 1.1914 Deposits•Inne . . . . . . 11, 03 023030°6, .311,0 , 39471 Deposits-demand 11.092 454,90 Acceptances. hill:4.1d aceonnts payable, including loan, from and acceptances by London bauker,agAints :unity. per contra . . . 6,630,387.93 Note,, is circulation in China . 496.055,00 Dire to hank and hankers . . 19(1,189,94 Corarrcial credit acceptance, 4 797,375,00 9 40.968 687,61 /10.968,637,61 We have ,eamined the hooks and accounts of the Internacional Banking Corporation at its Head Oifice. Now York, San Brancisco. and Mexico Branch., as at December 31. 1913 and have inspected Ilm certified returns from all other branches. We have sati