Paper Money - Vol. XLIX, No. 3 - Whole No. 267 - May - June 2010

PAPER MONEY OFFICIAL JOURNAL OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. XLIX, NO. 3, WHOLE NO. 267 WWW.SPMC.ORG MAY/JUNE 2010 177-year-old letter reveals secrets of counterfeiting ring bad May/June alternate cover 8/10/11 5:48 AM Page 1 Get Noticed! Wanted Your Full Color Advertising Here Inquire fred@spmc.org May/June alternate cover 8/10/11 5:48 AM Page 2 Paper Money • May/June 2010 • Whole No. 267 161 TERMS AND CONDITIONS PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 92 Andover Road, Jackson, NJ 08527. Periodical postage is paid at Jackson, NJ 08527 and other locations. Postmaster send address changes to Secretary Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527. © Society of Paper Money Collectors, Inc., 2010. All rights reserved. Reproduction of any article, in whole or part, without written permission, 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 specific issue can- not be guaranteed. Include an SASE for acknowledg- ment, 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 encouraged to submit a copy on a MAC CD, identified with the name and ver- sion of software used. A double-spaced printout must accompany the CD. 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 or color 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) unless accepted on premium contract basis • Limited premium space/rates available To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). Camera-ready copy, or electronic ads in pdf format, or in Quark Express on a MAC CD with fonts supplied are acceptable. ADVERTISING RATES Space 1 time 3 times 6 times Full Color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page Color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W 45 125 225 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 guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertise- ments, 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 por- tion of an ad in which a typographical error occurs upon prompt notification. v Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLIX, No. 3 Whole No. 267 May/June 2010 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: www.spmc.org FEATURES Paper Column: First and Last Notes . . . . . . . . . . . . . . . . . . . . . . 163 By Peter Huntoon, Doug Murray et al. Research Uncovers Note Alterations in Banco Nacional de Panama Display . 179 By Joaquin gil del Real The Daily Princetonian Scrip . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 By Jamie Yakes Robbery Causes Bank Note Design Changes . . . . . . . . . . . . . . . 190 By Bob Cochran A History of the Oil Belt Bank of Oblong, Illinois . . . . . . . . . . . . . 191 By Greg Henry National Bank Note Shows Error Spelling . . . . . . . . . . . . . . . . . . 194 By Adrian Waller America’s First Bank Panic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 By Clifford Thies, PhD BAD: Long Ago Letter Reveals Details of Counterfeiting Ring . . 209 By Robert A. Vlack The Buck Starts Here: Black Registers of the Treasury . . . . . . . . 218 By Gene Hessler Money Tales of Yesteryears . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Compiled By Forrest Daniel Was This Another 19th Century Scam? . . . . . . . . . . . . . . . . . . . 222 By Barney W. Hill More on Smileage Chits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 By Fred Reed Can Anybody Suggest a Plausible Reason for These Red Numbers . . 228 By Scott Claxton ‘Booby Hand,’ Faker of Our History . . . . . . . . . . . . . . . . . . . . . . . 230 By David D. Gladfelter SOCIETY NEWS Information and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .162 New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 President’s Column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .220 By Mark Anderson What’s on Steve’s Mind Today? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238 By Steve Whitfield Paper Money *May/June 2010 Paper Money 8/9/11 11:18 AM Page 161 Paper Money • May/June 2010 • Whole No. 267162 Society of Paper Money Collectors OFFICERS ELECTED OFFICERS: PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 VICE-PRESIDENT Vacant SECRETARY Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 TREASURER Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Pierre Fricke, Box 52514, Atlanta, GA 30355 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Matt Janzen, 3601 Page Drive Apt. 1, Plover, WI 54467 Robert J. Kravitz, P.O. Box 6099, Chesterfield, MO 63006 Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Lawrence Schuffman, P.O. Box 19, Mount Freedom, NJ 07970 Neil Shafer, Box 17138, Milwaukee, WI 53217 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 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 Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 PAST PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 WISMER BOOK PROJECT COORDINATOR Pierre Fricke, Box 52514, Atlanta, GA 30355 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING HUGH SHULL P.O. Box 2522, Lexington, SC 29071 PH: (803) 996-3660 FAX: (803) 996-4885 CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Auction Representation 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR SPMC LM 6 BRNA FUN The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The annual SPMC meeting is held in June at the Memphis International Paper Money Show. Up-to-date information about the SPMC, including its bylaws and activities can be found on its web site www.spmc.org. SPMC does not endorse any company, dealer, or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 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. v *May/June 2010 Paper Money 8/9/11 11:18 AM Page 162 Paper Money • May/June 2010 • Whole No. 267 163 *May/June 2010 Paper Money 8/9/11 11:18 AM Page 163 Paper Money • May/June 2010 • Whole No. 267164 C OLLECTORS HAVE BEEN COLLECTING SERIAL number 1 notes since serial numbers were invented. However, number 1 notes usually aren’t the first serial numbers to appear on many varieties of notes. In contrast, a first note is the note bearing the very first serial number used in a given class, series, denomination, signature combination and variety. Serial numbering often progresses sequentially through signature com- binations and varieties within the U. S. currency series, so many first notes end up being numbered within the then current serial numbering block and thus bear a number other than 1 or 00000001. For example, the first $1 Series of 1935F Silver Certificate was numbered P81000001I. The first 1935G was B54000001J. There were a dozen serial number 00000001 $1 1935F notes, each with a different prefix and suffix letter combination, but none of those were the first. Only P81000001I held that distinction. There were two varieties in the 1935G notes, those without and with the motto “In God We Trust” on the back. The first of each was respectively B54000001J and D48960001J. There were two number 1 1935G No Motto notes, C00000001J and D00000001J, but no number 1 1935G With Motto, because the later variety did not consume the rest of the DJ serial number block before the 1935H series replaced it. However, the key notes in terms of this discussion were B54000001J and the very unremarkable D48960001J because they were the firsts. Many sophisticated collectors seek first notes, and prize them very high- ly because they like the concept of first in line. This type of collecting takes a bit more talent because you have to be aware of the serial number ranges for the varieties that interest you in order to identify the first notes within them. The Paper Column by Peter Huntoon, Doug Murray, Bob Kvederas Jr., Bob Kvederas Sr., John Schwartz & Logan Talks First and Last Notes *May/June 2010 Paper Money 8/9/11 11:18 AM Page 164 Paper Money • May/June 2010 • Whole No. 267 165 Fortunately those data are available to everyone. Many of the small size serial number ranges are listed in Schwartz and Lindquist (2008), and almost all known large and small size ranges have been posted by Derek Moffitt (current) on his web site, which is cited below. Leon Goodman, John Schwartz and Chuck O’Donnell, who authored the forerunner to the current Oakes-Lindquist catalog, carefully attempted to list the serial number ranges for all the small size varieties when they could obtain those data. Much of that information was dropped in subsequent editions, but John Schwartz is replacing it, although the job was not totally completed for the 8th edition. Moffitt has coverage for what the catalog lacks. Obviously, a last note is just that, the note bearing the very last serial number used in a given class, series, denomination, signature combination and variety. These generally turn out to be far more difficult to locate than first notes. The reason is that firsts generally get saved, often by one of the officials whose signature appears on them. However, there is far less interest when some- one leaves office, so the last notes blow on through to circulation without anyone taking notice. What follows are spectacular examples of first notes and the stories of their discovery. We’ll also look at some last notes. Let’s start with the $1 Silver Certificate Series of 1935F and G examples cited above. $1 SC Series of 1935F & G Huntoon received a price list from David Koble in October 1993, that offered the following unprecedented group of small size $1 Silver Certificates. Koble priced the set at $1,000. 1935F P81000001I 1st 1935F autographed 1935F B53999999J last 1935F 1935G B54000001J 1st 1935G No Motto autographed 1935G D48958999J last 1935G No Motto 1935G D48960001J 1st 1935G Motto Clearly these had been provided to the treasury officials who signed the notes, and were obtained by someone who had fantastic connections to those people. The notes had been intercepted and retrieved at the Treasury after the being shipped over from the BEP. The group was saved along with some all important information. Specifically, the official last 1935F note, which was supposed to be B54000000J, was replaced by a star note. Consequently, B53999999J became the last. Similarly the last 1,001 1935G No Motto notes had been replaced by star notes. Consequently, D48958999J was the highest serial that could be found with the 1935G No Motto variety! The first $1 Silver Certificate Series of 1935F was numbered P81000001I. This is a classic first serial because the changeover between the 1935D and 1935F series was buried within the PI serial number block. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 165 Paper Money • May/June 2010 • Whole No. 267166 The last $1 Silver Certificate Series of 1935F delivered to the Treasury was B53999999J because B54000000J was damaged and replaced by a star note. The first $1 Silver Certificate Series of 1935G was this note, number B54000001J. The last $1 Silver Certificate Series of 1935G without the “In God We Trust” motto is this note. The end of the print run should have ended with serial D48960000J, but the batch was round- ed out with 1,001 sheets of star notes. The unassuming number D48960001J happens to the first $1 Silver Certificate Series of 1935G with the motto. This note represents the appeal of collecting first notes; you have to be cognizant of the serial number ranges in order to spot them. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 166 Paper Money • May/June 2010 • Whole No. 267 167 Whoever intercepted these notes had gone to the effort to record that the last notes were replaced by stars. This was unprecedented documentation! The implication for the end of the 1935G series was that they hadn’t printed a sufficient number of regular sheets to fill out the final print order, so someone at the Bureau inserted 1,001 pre-printed sheets of star notes to round out the count in order to move the last batch through. Remember that serial numbering was sequential through the stack of sheets at the time these notes were being numbered, instead of consecutive down the half sheets, so we are talking about a substitution of 1,001 sheets of stars, not simply 1,001 star notes. $5 FRN Series of 1950B District Set Huntoon got lucky on November 4, 1985, when he purchased a group of twelve $5 Series of 1950B notes from Lyn Knight with serials A84240001A, B93240001C, C14400001B, D99360001A, E23760001B, F38880001B, G14400001C, H91800001A, I23040001A, J55440001A, K47880001A, and L45720001A. Here were the very first $5s printed for every district in the Series of 1950B. The group represented the first such set ever assembled. Who could pull this off? The answer is the legendary Amon Carter Jr., and this set is the tip of that tale! Secretary of the Treasury Robert Anderson was a friend of Amon Carter, so he obtained for Carter the first ten $5 FRNs with his signature from all twelve districts. This is the number 1 set comprised of 12 first notes. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 167 Paper Money • May/June 2010 • Whole No. 267168 Amon was a close personal friend of Secretary of the Treasury Robert Anderson who served under Republican President Dwight D. Eisenhower. The result was that Anderson obtained several first notes for Carter, including ten sets of the first $5 FRNs from all twelve districts. If you have an Anderson first note, the Anderson-Carter friendship probably was the source for it. All ten sets of the $5s were consigned to Lyn Knight after Amon died. At first, Lyn didn’t recognize what they were and he began selling them off. One dealer took all ten of the Dallas notes for resale to his customers. Very soon thereafter, Lyn started looking more closely at what remained, and the 1s preceded by those zeros began to click. Sure enough, when he looked them up in the O’Donnell catalog, he discovered just what he had. But now all the sets were incomplete! He had to scramble to get the missing Dallas notes back before they went to the four winds. That task accom- plished, he sighed with great relief and started offering the ten 12-note sets. Huntoon was lucky enough to be the first in line, and paid what was then a princely sum of $1,060 for the privilege of getting the first set. $2 LT Series of 1953A Logan Talks is a serial number collector of the first order who also main- tains a census of the small note rarities. He landed the terrific autographed $2 legal tender Series of 1953A first note shown here bearing serial A45360001A. Undoubtedly this also is an Anderson-Carter note, but it faded into obscurity after it passed through Amon’s hands. By the time it was offered in the weekly Heritage Currency Internet Auction that ended May 6, 2008, its signifi- cance had been lost on everyone who handled it. It was simply listed as an other- wise unremarkable autographed deuce. Such pieces generally don’t raise blood pressures, so when the bidding closed for the lot, it hadn’t even drawn a single bid! Logan, by chance, logged on to the Heritage Web site the next day and noticed a link to the orphaned lots. For the first time ever, he clicked that link to see what type of material was left over. The $2 with dual signatures caught his eye so he pulled it up. He was stunned to see serial A45360001A. There was no question, this was the first 1953A note. Why else would a signed piece also have a serial that ended 0001. The note was now for sale at a liquidation price of $95.00, which worked out to $109.25 including commission and shipping. It was only after he clicked the buy it now button that he bothered to verify that it was indeed the first. But then he already knew that! This is the hallmark of an astute and persistent collector, a fellow who is This is the first $2 note in the Series of 1953A. This significant piece went through a weekly Heritage Currency Auction in 2008 without garnering a single bid because no one recognized what it was. Logan Talks bought it as an orphan lot after the sale closed because the auto- graphs and 0001 ending serial num- bers revealed to him exactly what he was looking at. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 168 Paper Money • May/June 2010 • Whole No. 267 169 *May/June 2010 Paper Money 8/9/11 11:18 AM Page 169 alert, always figuring the angles and open to possibilities. Logan earns his good fortune -- which, in fact, is more than simple good luck! You wonder how many people tripped over that note the previous week who should have figured it. $10,000 GC Series of 1900 There are serial number afficionados who create their luck. Doug Murray is one of these. Murray has spent decades digging through federal records in Washington, DC. His research has been focused on determining what large size varieties are possible. However, along the way he has compiled most of the data on the serial number ranges that appear in Moffitt’s listings and other numismatic publications. Murray’s persistence recently yielded a true jewel. Many years ago, he discovered a ledger listing the serial number ranges for the high denomination Gold Certificates at the Bureau of Engraving and Printing. He dutifully copied out the serial number ranges for the $10,000 non- circulating payable to order Gold Certificates in what constituted an almost pure- ly academic exercise. These notes functioned like checks for the transfer of gold, so were not paper currency. For the record, the serials for the Series of 1900 $10,000 notes were as follows (Chambliss, 2000, updated by Murray). Lyons-Roberts E1-E36000 Lyons-Treat H1-H6000 Vernon-Treat H6001-H42000 Vernon-McClung K1-K18000 Napier-McClung K18001-K36000 Napier-Burke M1-M6000 Parker-Burke M6001-M36000 Teehee-Burke M36001-M243000 Notice that the first Napier-McClung bore serial K18001. The fates conspired to deliver that gem right into Murray’s hands. Here is that improbable story. Paper Money • May/June 2010 • Whole No. 267170 Table 1. Reported large size first notes that do not bear serial number 1 and reported last notes (Gengerke, current). First Notes: Legal Tender Series 1907 $5 Elliott-White H46924001-4 uncut sheet Silver Certificate Series 1923 $1 Wood-Tate Y82700001D Treasury Note Series 1891 $1 Tillman-Morgan B13160001-4 uncut sheet Treasury Note Series 1891 $2 Bruce-Roberts B1690001 Gold Certificate Series 1900 $10,000 Napier-McClung K18001 Last Notes: Legal Tender Series 1923 $10 Speelman-White A696000B Silver Certificate Series 1899 $2 Napier-McClung K24787997-K24788000 cut sheet Federal Reserve Note Series 1914 blue seal Chicago $5 White-Mellon G64876000B *May/June 2010 Paper Money 8/9/11 11:18 AM Page 170 Paper Money • May/June 2010 • Whole No. 267 171 *May/June 2010 Paper Money 8/9/11 11:18 AM Page 171 There was a fire in the Old Post Office Building at 12th and Pennsylvania streets in downtown Washington, DC, on December 13, 1935. The firemen entered a room on an upper floor filled with file cabinets that contained among other things canceled Series of 1900 $10,000 Gold Certificates. They threw the cabinets out the windows to the street below in order to remove fuel that was feeding the flames (Hessler, 1997, p. 340). Much to the delight of the assembled gawkers, some of the canceled $10,000 gold notes spewed onto the sidewalk and street. Hundreds were scooped up and stuffed into pockets before anyone could stop the plunder. Those notes have been leaking onto the numismatic market ever since. Initially they were treated as contraband and were subject to confiscation by the Secret Service. In recent decades it has been recognized that because they are non-negotiable, just like any other canceled checks, they pose no problem to the Treasury, so no one at Treasury seems to be worried about them any longer. They routinely pass through numismatic auctions and appear on price lists now. Co-author Murray was asked by David Bowers to provide serial number ranges for Bower’s forthcoming Whitman Encyclopedia of U.S. Paper Money just after the 2008 Memphis show. He became reacquainted with all those serials as he pulled them together from all the federal sources he had tapped over the decades. The timing of this work could not have been more fortuitous. The serials were still fresh in his memory when the Heritage January 2009 FUN auction catalog arrived. Lightning struck when he peered at the photo for lot 15612. Of all the possibilities, he found himself looking at serial K18001 on a canceled Series of 1900 $10,000! It was the first $10,000 printed with Napier- McClung signatures! He had to buy that note and did for $2,760 including buyer’s premium. $1 SC 1935A R Note Probably the most popular minor varieties ever to come down the pike in the small size U. S. notes were the R and S paper experiment notes delivered from the BEP to the Treasury on June 20, 1944. The R signified notes printed on reg- ular paper; S the special paper being tested. Those letters were overprinted on the right sides of the faces. The serial numbers on the regular paper were S70884001C-S72068000C and the numbers on the special paper were S73884001C-S75068000C. Paper Money • May/June 2010 • Whole No. 267172 This pay to order $10,000 gold note was plundered from material thrown out of the burning Old Post Office in Washington, DC, on January 13, 1935. By chance, it was the first such note printed with Napier- McClung treasury signatures. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 172 The notes were shipped to the Chicago Federal Reserve Bank shortly thereafter, and wholly released within the Chicago district. Of course, contemporary collectors found them in circulation and quickly discovered their significance. They plucked them from circulation in great num- bers. Aubrey Bebee, whose fabulous paper money collection forms the core of the American Numismatic Association holdings in Colorado Springs, obtained several uncirculated packs of each, and patiently salted them into collections for decades afterward. In fact, Huntoon obtained his pair directly from Bebee. Bebee used to sell the nicely centered copies at a slight premium, so Huntoon’s pair cost $52.50 in 1964. Some lucky soul found a run of the very first R notes and salted them away. The story of that find is lost to the mists of time, but the first cut half sheet of six of them found its way into Julian Marks collection. Abe Kosoff handled the notes from Marks’ estate and those offerings included the cut half sheet. They were correctly identified in the sale. The ever vigilant John Schwartz saw that offering, realized the signifi- cance of the group, and pounced on Oct. 26, 1971. His acuity yielded for him one of the most interesting first notes in all the small size issues. $10 SC 1953B Someone, maybe Amon Carter, got the first couple of packs of $10 silver certificate Series of 1953A notes so the first 1953A $10 with serial A10440001A ended up in the Smithsonian collection. However, the first of the 1953Bs showed up in Philadelphia in the hands of a dealer named C. J. Dochkus. Dochkus knew what he had. Schwartz, still in his 1st Lieutenant's Air Force uniform and just back from a tour in England, was thumbing through his latest issue of Coin World when he spotted an intriguing ad from the venerable Philadelphia dealer offering a $10 Series of 1953A Uncirculated star note for $20. 173Paper Money • May/June 2010 • Whole No. 267 The short run of the very first experi- mental Series of 1935A $1s printed on regular paper was saved through some miracle. They were sold by Abe Kosoff in 1971, where cataloguer John Schwartz was the person smart enough to buy the lot. The R and S notes probably are the most recog- nized and collected of all the small size varieties, so this particular first note is special in many ways. C. J. Dochkus, a long time dealer in Philadelphia, landed the first of the $10 Series of 1953B Silver Certificates. John Schwartz got the first one from him. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 173 Paper Money • May/June 2010 • Whole No. 267174 When he wrote to inquire if it was still available, Dochkus replied in the affirmative. Dochkus also mentioned that he had the first 1953B $10 and wanted to know if Schwartz would be interested in it as well. The price was another $20. On a brisk November 12,1965, Schwartz dug deeply for the $40 to complete what for him was a thrilling transaction for both notes. $1 FRN 1969C Star Lightning strikes in the oddest places, so you have to look, listen and be alert. On September 5, 1996, Huntoon finally negotiated the purchase of a note that had captivated his attention, a note that Bob Kvederas Sr. had shown him the previous June at the Memphis convention. It isn’t the brightest star in the pantheon of small size notes, but it is a first note and a star at that. The FRN Series 1969C shown here with serial H01920001* is the first $1 star note printed for the St. Louis district in that series. It comes with a most improbable tale of discovery. Discovery probably isn’t the best word; maybe the best word here is recognition. How many first notes from the modern federal reserve series have you seen that have non-number 1 serial numbers? A few thousand have been printed, but if you are like us, you can’t remember seeing another. How could they get saved, especially a star note that flies below the radar of even those officials who might want their first notes? Star notes are printed up at the BEP, distributed to the inspectors, and the inspectors insert them rather randomly into otherwise unremarkable packs as errors are caught, and out they go. Often the districts on the stars are not the same as the district notes being replaced. Nobody at Treasury or the Federal Reserve Banks knows where to find them when they pass through, even if they wanted to, but they don’t. Here is the story of the St. Louis star note as recalled in an e-mail by Bob Kvederas Sr. My recollection of the note is that Jr. (his son, Bob Kvederas Jr.) offered it to John Schwartz at Memphis, but he wouldn't pay the freight and dithered. At which point, I either bought the note or half interest in it, gave Schwartz another chance after the show, and then flogged it to PWH who was astute enough to not let it get by him. John Schwartz recalled the affair quite differently, in the following terms. I merely passed on the exorbitant price that the Kvederas’ were trying to extract from me! Bob Kvederas Jr. filled out the tale in another e-mail. I received the note from a old gentleman from either North or South Carolina. He stated that he obtained the note from a local bank. He had many bank tellers looking for currency for him in his This note happens to be the first $1 star note printed for the St. Louis dis- trict in the Series of 1969C. Serial numbering of the 1969C $1s pro- gressed sequentially from the 1969Bs, so it has a non-00000001 number. Thousands of these types of first notes have been printed in the modern Federal Reserve series, but they are rarely recognized, so they are very rare. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 174 home town. He initially wrote to me about web notes and our conver- sations progressed from there. He was eager to speak of his vast col- lections of currency, stamps and coins. He did state that he was going to leave his entire estate to the local collage but in a dispute about what his money was to used for, caused him to remove the college from his will. He stated he had no living relatives and asked if I would be interested in buying some notes from him. He asked me if I had a currency book by Chuck O'Donnell. I stated I did, and he told me to look at the 1969C series and would I like to purchase a serial number one note from the St. Louis district. I stated that they did not print a serial number one note but continued numbering from the previous series. He chuckled, and asked if I would like to buy the serial number 01920001 note from the St. Louis district. It then dawned on me why he was laughing, and said I would like to buy the note but did not have a lot of money for such a good note. “Well,” he said in a slow southern drawl, “I only want $20 for the bill, $19 is plenty of profit for me.” It is fairly certain that the fellow had gotten it at the bank in new money that had been delivered there or that he had otherwise obtained it in trade because it had never seen circulation. He obviously discovered that it was a first note when he logged it into his collection. He cherished it as such, and didn’t want that fact to be lost when he sold his material. Here was a veteran collector who kept one eye on the data in his catalogs. That trait allowed him to recognize when he won the numbers lottery. Are you that careful? Last Notes Last notes also warrant attention, but they are much rarer because there usually is no official interest in them. Neither office holder is looking for another note with his signature by then. The bricks containing last notes simply get shipped to the Treasury or to a Federal Reserve Bank, and then on to commercial banks. Who in that chain has any idea that a last note is passing through his hands, or even cares! Even if you got a last pack at your bank, how could you know it? It would be gone before the full range of serial numbers was even published in a numismatic catalog. Those notes generally don’t stand a chance. They are virtu- ally invisible. At the very best, someone might hold on to one if it has an unusually long string of terminal zeros in the serial, but then those notes are often destroyed in the printing process and replaced with star notes, just as was the $1 1935F B54000000J mentioned at the beginning of this article! 175Paper Money • May/June 2010 • Whole No. 267 This is the last $2 Series of 1899 Silver Certificate printed with Napier-McClung signatures. Last notes are far scarcer than first notes. (Photo courtesy of the Heritage Auction Archives) *May/June 2010 Paper Money 8/9/11 11:18 AM Page 175 Are last notes ever saved? The answer is yes, it has happened. One stel- lar example comes to mind. The bookend $10 Series of 1923 legal tender notes have crossed the auction block. They have serials A1B and A696000B, the first and last of their kind! What a pair! We have no idea how that spectacular pair was saved, but it appeared in a January 1990 Stack’s sale, and again in a June 1992 Knight auction. The most recent auction sale of a last note was a $2 Series of 1899 Silver certificate in the January 2009 FUN auction that came in the form of a cut sheet with serials K24787997-K2478800. The lot was correctly described in the catalog as being the last sheet. The all important last note is illustrated here. The same lot previously appeared in a November 1999 Knight auction. $1 SC 1923 SC The following is the best of the best of first note tales, a yarn that defies all the odds. It even involves a large size $1 Silver Certificate to boot. There is a serial number press room log book that spans the last of the large size $1 Silver Certificates in the BEP Historical Resource Center. Both Murray and Huntoon independently dug through this book, and both found the same typed memo inserted into the book by some operative. Notice. Package No. Y82700001D to Y82704000D contains the first sheet from plate No. 1 of $1 Silver Certificates, series 1923, No. Y82700001D to Y82700008D, bearing the signature of H. T. Tate, Treasurer of the United States. Paper Money • May/June 2010 • Whole No. 267176 This is the first $1 Series of 1923 Silver Certificate bearing Secretary of the Treasury Tate’s signature. The photo of the note is superimposed over a photocopy of it on the memo attesting to that fact. Probably the tale of its sur- vival and recognition by Doug Murray is the most amazing of any of the known first notes. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 176 Both Murray and Huntoon made note of the memo, delighted to have documentation of exactly what serial number was on the first Tate-Woods $1. However, the difference between Huntoon and Murray was that Huntoon filed the serial away as a curiosity, whereas Murray retained a vivid memory of it! Murray came across the memo sometime around 1985-6. Miraculously, the actual note survived and turned up as an e-bay lot offered by rvbidder from Phoenix, Arizona. Bidding for it closed on December 5, 2000. We have no idea where that seller got it. The sellers tag, rvbidder, conjures up an image of a retiree working out of his recreational vehicle while wintering in Phoenix! He and the note could have come from any place in the country where snowbirds originate, but this is pure speculation. The e-mail address provided for this account is no longer in service, so we were not able to pursue the story any further back in time. The note probably originated from Tate himself, because such pieces usually come from the signers. This was Tate’s first note, but not Woods. The note graded an attractive clean VF-XF with moderate quarter folds. It doesn’t appear to have been actively circulated, but it definitely was handled, probably carried as a pocket piece by Tate. A Tate-Wood 1923 $1 Silver Certificate is not common, so this attrac- tive item brought $96.99, and the lucky buyer was Rob Havrish. Havrish spotted the fact that the note was from the YD serial number block. In fact, he recognized that it was the first Tate note to appear from the YD block, so the serial number was by far the lowest serial number reported for the type. He took it to the Chicago Paper Money Expo in March 2001 where he showed it to large size census taker Martin Gengerke. Havrish wondered at the time if it might be a first note because of the 00001 ending numbers. Havrish also made contact with someone from the Bank Note Reporter while at the show, with the result that the note was illustrated as a discovery block in the April 2001 issue. Gengerke told Murray at CPMX that he had just seen a YD Tate note on the floor, so Murray immediately tracked down Havrish to see the note. Havrish has a weakness for FRN star notes from Minneapolis, so by April they had negotiated a very stiff trade. Murray forfeited outright a $100 Series of 1934B I00019460* and a $50 Series of 1950 I00008097*, plus sold Havrish a $5 Series of 1934 I00073993*, to sweeten the deal. Armed with Tate’s first note, Murray found himself passionately drawn to the BEP so he could attempt to locate and photocopy the memo proclaiming its authenticity. Here is where the tale takes a bizarre twist. Murray meticulously scheduled a four-day research trip to DC with time allotted for prearranged visits to the BEP, Smithsonian Institution and National Archives. He coordinated his visit with Huntoon, who also was going to be in town then. Murray, in the company of Huntoon, showed up at the BEP at 8:30 a.m. on the morning of September 11, 2001. Murray was even carrying his note with him. They were admitted to the BEP Historical Resource Center, located on the fifth floor of the BEP Annex Building. In short order, in the company of Curator Cecilia Wertheimer, Murray located the serial number log books in a storage area on the 6th floor, while Huntoon was looking at other records up there. Just then the phone rang and one of Cecilia’s aides told her that a plane had just hit one of the towers at the World Trade Center. They carried the serial number log books downstairs to the reading area which faces west. All hell was breaking loose in the room. Staffers had switched 177Paper Money • May/June 2010 • Whole No. 267 *May/June 2010 Paper Money 8/9/11 11:18 AM Page 177 Paper Money • May/June 2010 • Whole No. 267178 their computers to CNN, and everyone was crowded around them watching the pandemonium in New York. Murray sensed that his research effort was in jeopardy, so he quickened his pace, unaware of the seriousness of the event taking place at the Trade Tower. It appeared to be a tragic collision by a plane. Then the second tower was hit. Murray found the memo at just about the same moment that the third plane plowed into the Pentagon, and a thick black plume of smoke lofted up from behind the main BEP building to our west. The whole room was in chaos. Murray produced the memo and his note, and rushed over to the photo- copy machine to make a couple of side-by-side copies. On his return, he proudly showed the note and memo to Mrs. Wertheimer who immediately exclaimed “Do you have a property removal permit for that from the guards downstairs?” Taken completely by surprise, Murray said “No!” While Cecilia reached for a property removal permit, and delegated the task of filling it out to an aide, Doug concocted a statement for her to attest to his mating of the note and memo 75 years after both had been made. Remarkably, within the atmosphere of agitation and confusion that filled the room, she quickly wrote out the testament on one of his photocopies. A large boom shook the room. In short order phone callers claimed the State Department Building had just been hit. It wasn’t until a couple of days later that the newspapers revealed that it was a sonic boom from a jet scrambled to meet other incoming planes. As the boom rolled past, Huntoon watched roofers on the main BEP building, who had stopped work and were looking west toward the Pentagon fire, bolt from their perch- es and slide down scaffolding to the ground below and run away into the streets below. Printers simultaneously burst from the ground floor doors of the main building and also disappeared from view. One woman in the room was on her phone trying to get permission to evacuate, but that was delayed for many tens of minutes. Finally the order came down, “Get out, and do it NOW.” All rushed to the main exit, the guards impatiently waving the growing stream of people out the heavy doors as fast as possible onto 14th Street. No cus- tomary searches, no sign outs, no processing of property removal permits -- just go! Murray found himself on the street with note, photocopies and unprocessed property pass in hand. He and Huntoon watched the black smoke billow overhead from the Pentagon. Sirens screamed in the distance. When Murray finally got a look at the property removal permit, he saw eerily that the serial number on it was 91011. References Cited Chambliss, Carlson. “Series 1900 $10,000s quite peculiar notes,” Bank Note Reporter, v. 28, no. 1 (January 2000), pp. 58-65, 81. Gengerke, Martin. Census of U. S. Large Size Type Notes. Compact disk prepared on demand, current. Havrish, Rob. “Collector reports YD 1923 $1,” Bank Note Reporter, v. 29, no. 4 (April 2001), p. 14. Hessler, Gene. Comprehensive Catalog of U. S. Paper Money, 6th ed. Port Clinton, OH: BNR Press, 1997, 505 p. Moffitt, Derek, current, http://www.uspapermoney.info/ Schwartz, John, and Scott Lindquist. Standard Guide to Small-Size U. S. Paper Money 1928 to date, 8th ed. Iola, WI: KP Publications, 2008, 376 p. v The BEP Historical Resource Center staff had to fill out this property removal permit in order for Doug Murray to get his first Tate note out of the building. Notice the 9-11-01 date and serial number 91011. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 178 Paper Money • May/June 2010 • Whole No. 267 179 T HE BANCO NACIONAL DE PANAMA (BNP)1 HAS A SMALL, modest collection of coins, notes and paper money, all relating to Panama’s history, covering the Colombian Period to the present.2 Through the Cultural Section, the BNP, has a continuing effort to instruct and educate the populace. Within this process, the bank organizes small coin/memorabilia presentations at various branches, and once a year has a major exhibition at either the main branch or at the bank’s Casa Museo.3 In addition to the above mentioned shows, the bank invites members of the Panama’s Numismatic Association, not only as guest exhibitors but as speakers on a variety or subjects relating to numismatics and the general development of money. At these yearly exhibitions, we all proudly display our collections and devote much time to explaining and answering questions. A number of years ago, nearing the end of the 20th Century, at its yearly show the BNP put on display three items that caught everybody’s attention. These items represented, as dis- played, a direct link to our mutual countries’ past: The Gold Rush which started it all, the City of Aspinwall4 and the Panama Railroad. These items were: (1) THE PHOENIX BANK of Columbus, Georgia, $20 dated May 1, 1843, with an overprint on its back GOOD FOR ONE PASSAGE ASPIN- WALL TO THE PACIFIC; (2) THE COLUMBUS AND TOMBIGBY TRANSPORTATION CO. of Co1umbus, Mississippi, $50 dated 3 Sept. 1840, with an overprint on its back, GOOD FOH TWO PASSAGES ASPINWALL TO THE PACIFIC; and (3) THE COLUMBUS AND TOMBIGBY TRANSPORTATION CO. of Co1umbus, Mississippi, $100 dated 3 Sept. 1840, with an overprint on its back, GOOD FOR FOUR PASSAGES ASPINWALL TO THE PACIFIC. Indeed, these items drew so much attention and interest that at the 1998 exhibition one of them “disappeared” on the closing day of the show, much to the dismay of the BNP and the numismatic community. Interest continued in these items, though nothing was known either of their provenance nor their history. My own attention was drawn to them too, because during the many years of my own investigation of Panama's banks and paper money of the I9th Century, including having pored over early-, mid- and late-century newspapers, particularly the advertisements, these names were not familiar in the least. In other words, Research Uncovers Note Alterations in Banco Nacional de Panama Display by Joaquin Gil del Real *May/June 2010 Paper Money 8/9/11 11:18 AM Page 179 Paper Money • May/June 2010 • Whole No. 267180 nothing was known historically of these items nor was their “source” known either. Early in 2001, personal matters occasioned me to move my residence from Panama to Burbank, California. One of the tasks that I took upon myself was to investigate the historical background of the items in question, so as to clari- fy exactly how their operations fitted into the history of the Isthmus. Shortly after my arrival in the States, I began my mail campaign and I am glad to report I received tremendous support and guidance from fellow members of the SPMC (Gene Hessler, Fred Reed, Bob McCabe). From these I took my initial steps in researching U.S.A style! Write the Secretary of State, write the Historical Society, the Historical Association, write fellow SPMC members, who had written articles similar in nature, etc. Three things were manifest: one: Patience; two: Perseverance (these two I had already learned about!); and three: when writing a fellow member, enclose an SASE (self-addressed, stamped enve- lope). Postage can be onerous if you consider what you send, receive and have to answer those inquiries on your subject. I began my search by becoming familiar with my local library at Burbank, and with the Los Angeles Public Library downtown. It is surprising the amount of local and regional historical information available through area and state histor- ical society bulletins. My first sources were the names and addresses of state offi- cials. Letters to the Secretaries of State of Georgia and Mississippi were sent immediately. Bob McCabe introduced me to the Haxby Catalog of which I was then ignorant (you learn something new every day) and the L.A. Public Library confirmed it had those books that I was interested in concerning the history of the Panama Railroad. Banco Nacional de Panama displayed this $20 note of The Phoenix Bank, Columbus, GA, imprinted on back GOOD FOR ONE PASSAGE // ASPINWALL TO THE PACIFIC. *May/June 2010 Paper Money 8/9/11 11:18 AM Page 180 Paper Money • May/June 2010 • Whole No. 267 181 Here are my findings regarding The Phoenix Bank of Columbus, Georgia: My letter to the Secretary or State was quickly acknowledged, and I was informed that my inquiry had been forwarded to the Department of Archives and History. Shortly thereafter Business Records Specialist Mr. Carl Anderson, wrote me the following: On December 24, 1840, the Georgia Legislature changed the Farmers Bank of Chattahoochie to the Phoenix Bank of Columbus. The Phoenix Bank was reorganized but had very little money, not enough to meet the financial requirements. The Directors had the notes printed and the President, Frederick Martin, and the cashier, R.P. Spencer, signed the notes. The bank never opened because of the lack of money. Nor were any notes ever put into circulation. Mr. Martin made another attempt to obtain financial support. He left Columbus to travel to New York in hopes of obtaining the capital to open the bank. While passing through Augusta, Georgia, he cashed some of the banks notes to pay expenses. He was caught, tried and convicted. The Phoenix Bank folded and the assets were sold to cover debts. The Bank never opened. Someone bought the banks assets (which included around $350,000 in notes of ones, twos, fives, tens and twenties as well as some other materials) and stored them. Fifteen or twenty years ago the hoard came to light and the notes, mostly Uncirculated, were sold to dealers, collectors and investors. After I read this all I could say, was “Oh, Boy!” Banco Nacional de Panama displayed this $50 note of The Tombigby Transportation Co., Columbus, MS, imprinted on back GOOD FOR TWO PASSAGES // ASPINWALL TO THE PACIFIC. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 181 Paper Money • May/June 2010 • Whole No. 267182 My next step was to write to the American Numismatic Association at Colorado Springs to reconfirm the information on the bank notes. The ANA Library quickly answered me, sending photocopies of the Haxby Standard Catalog of United States Obsolete Bank Notes, vols. 1 and 2, of those pages pertaining to the Phoenix Bank and the Tombigby Transportation Co. Both entries read: “Fate: failed.” Here again, all I could say was: “Oh, Boy!” In reviewing the photocopies of the items in my possession, I had difficul- ty with the date on the Phoenix Bank note. I did notice that the serial number was #1109. At a coin show in Glendale, CA, I came across Mr. Vern Potter, of Torrance, CA, dealer in rare fiscal documents, and asked him if, per chance, he had any samples of the Phoenix Bank of Columbus, Georgia. To my pleasant sur- prise he had, so I purchased a $20 note, #582, dated Dec. 1, 1842, and another $20 note, #1161, dated May 1, 1843, effectively confirming the date on the BNP note as May 1, 1843. My next step was to obtain information on the Panama Railroad. I took the train to downtown Los Angeles (I didn't want to drive) to the public library, where I consulted one of the two volumes available of the book Illustrated History of the Panama Railroad by F.N. Otis, M.D., Harper Bros., New York, 1862, which stated that the railroad was begun in May of 1850, seven years after the Phoenix Bank note was signed; and, “When the Panama Railroad opened the passage charges were: $25 in gold, first class fare; $10 gold, second class fare...."5 One thing was clear, at that time all business was “cold hard cash,” and no dealings were ever reported in vouchers or paper. Lastly, I consulted with a well known dealer in Panamanian items who very clearly indicated: “These are modern counterfeits. Notes are good; [but] O/P (overprints) are false. I assume they sold them to the Bank.” Banco Nacional de Panama displayed this $100 note of The Tombigby Transportation Co., Columbus, MS, imprinted on back GOOD FOR FOUR PASSAGES // ASPINWALL TO THE PACIFIC. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 182 Paper Money • May/June 2010 • Whole No. 267 183 Regarding The Columbus and Tombigby Transportation Co. of Columbus, Mississippi: Here again, as with the State or Georgia, my inquiry to the Secretary Of State was quickly answered and referred to the Mississippi Department of Archives and History, Library Division. After prepaying a modest sum for research time, I was informed of numerous sources investigated, including three books relating to the history of Columbus, Mississippi, all to no avail, as no infor- mation was available. I did receive a copy of the incorporation paper, dated February 15, 1839. Three Phoenix $20 Bank notes: #582 dated Dec. 1, 1842; #1109 dated May 1, 1843; and #1161 dated May 1, 1843. The center note is the one belonging to the Banco Nacional de Panama and altered by overprinting on the back. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 183 Paper Money • May/June 2010 • Whole No. 267184 Along with my initial request to the ANA Library for information on the Phoenix Bank, I did request the same for the Tombigby company. I received a copy from volume 2 or the Haxby catalog, corresponding to the requested infor- mation. As with the Phoenix Bank the fate of the Tombigby company was: failed. Dates were 1839-1840. Page 1121 showed a Tombigby Railroad 1830s note, sharing the same result: failed. It must have been a predecessor! All else closely paralleled the Phoenix Bank results. The Tombigby notes are dated 11 years prior to the Panama Railroad being built. Fares were in GOLD, and lastly, the comments of the dealer I consulted that these overprints were “counterfeits.” My conclusion regarding the three items in question is that although the notes themselves are authentic, they have been falsified by their overprints. Both firms ceased to exist much before work began on the Panama Railroad and, only specie (metallic money) was accepted in payment for the fare. Returning to Panama the following August, I visited the Chief of the Cultural Section of the BNP. I reported my findings and asked if they wanted a written report. I also inquired whether it would be OK to write a short article for local publishing in the newspaper. A report was accepted, though I was, most courteously, requested not to write anything locally in Spanish. There would be no objection to anything written in English so long as it was published outside of the country. I did try to find out who had sold the items, and who had bought them, as well as who had authorized the purchase, but I was informed that this “informa- tion [was] not available" (in other words “don't push”). Regardless, I do feel satisfied that publishing this information will help stop the foisting of falsified historical items on an unsuspecting friends and the public. Certainly, that old adage still runs true: “Investigate, then invest.” Notes 1. Panama had no Central Bank, nor paper money of its own. Since separation from Colombia in November of 1903, and the subsequent construction of the Panama Canal, by the United States, U.S. paper money had been the circulating currency in the Republic at par with the Balboa. The BNP is the Official Depository of the Government and carries out some functions of a Central Bank, i.e. check clearance, supplier of currency and money, etc. 2. Colonial Period 1502-1821, Colombian Period 1821-1903, and Republican Period 1903 to present. 3. Casa Museu of the BNP is the bank's financial and historical library, with a “permanent” coin collection on display. Other activities include exhibitions of numismatic, philatelic, art or other items or historical significance. 4. The City of Colon was founded on February 29th, 1852. The Legislative Chamber of Panama had officially named the city COLON (in honor of Columbus), however, some employees of the Panama Railroad wanted to honor one of their founders (William Aspinwall). They suggested the name to Victoriano de P. Paredes, who was passing through the Isthmus on his way to the U.S.A as Minister, and had been selected as guest speaker at the function. He suggested the name in his speech which was popularized by those present. The name continued to be used until March 20, 1890, when the Director General of the Postal Service advised that “... all correspon- dence received at this office labeled ‘Aspinwall’ shall be returned to sender ....” 5. Another source is David McCullogh, The Path Between the Seas, Simon & Schuster, New York, 1977, page 35. v *May/June 2010 Paper Money 8/9/11 11:19 AM Page 184 Paper Money • May/June 2010 • Whole No. 267 185 V ARIOUS PRIVATE EDUCATIONAL INSTITUTIONS ISSUED local scrip in response to state and federal bank holidays during March 1933. Mitchell and Shafer (1984) included listings for universities in California, Florida, and Louisiana, and a single institution in New Jersey: Princeton University, which did so in March 1933. The Bank Situation The use of local scrip became a necessity after New Jersey Governor Harry Moore proclaimed a state bank holiday on March 4. This was quickly super- seded by the federal bank holiday ordered by President Roosevelt on March 6. Three Princeton banks were closed by this holiday: The Princeton Bank and Trust Company, Princeton Savings Bank, and The First National Bank of Princeton. All three were deemed financially sound by regulators and were re- opened for business by March 15. While the banks were closed, the suspension of deposits and withdrawals by banking customers presented a problem for every-day business matters, even in an afluent community such as Princeton. This was resolved by the temporary use of local scrip. Acceptance and Public Reaction to the Scrip The Princetonian scrip was the concept of William Selden, manager of the Princeton University student newspaper, The Daily Princetonian. Mr. Selden foresaw the difficulties the bank holiday represented for the local merchants, many of whom depended on students for their business: “The clothing merchants, of course, could go on credit. But those that sold ice cream, milkshakes, and things of The Daily Princetonian Scrip: Depression Scrip From Princeton University by Jamie Yakes The Daily Princetonian scrip, serial no. 1807. The back is blank except for the depositor’s signature. The redemption is indicated by a “can- celled” handwritten in script. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 185 Paper Money • May/June 2010 • Whole No. 267186 that type had to have some kind of small denomination.” (Hatch, 1976) His idea was to issue scrip on behalf of the newspaper backed with the student deposits. He had the support and approval from university leaders, faculty members, and state officials, many of whom commented positively about his plan. (Daily Princetonian, 1933.) Said Luther Eisenhart, Dean of Faculty: “The Princetonian is to be con- gratulated on the steps it has taken to relieve the present financial situation for the benefits of undergraduates and merchants alike.” Dean Christian Gauss stated: “I believe The Princetonian will be perform- ing a public service to undergraduates. . . .I congratulate The Princetonian on it’s initiative and public spirit.” G.C. Wittinger, Acting Treasurer, had this to say: “The plan of The Princetonian for the issuance of scrip . . . is a very good idea and should help very materially for the next few days.” Gov. Harry Moore, remarking on the eve of issuance of the scrip: “Your effort to cooperate is most commendable and I shall be interested in hearing how it works out.” The plan was also supported by the local businesses. These ranged from food markets to home and personal merchandise stores to entertainment services. The organizers had approached the various business owners to ensure their approval of the scrip. Many of them agreed to accept it and the faith they had in the system was paramount to its success. Development and Distribution of Scrip John B, Oakes, editorial editor of The Daily Princetonian, remarked in his editorial on March 7: We hope to help in carrying on business activity between town and university by the issuance of this morning to undergraduates of $500 of A notice published in the March 7, 1933, issue of The Daily Princetonian listing local businesses that agreed to accept the scrip. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 186 Paper Money • May/June 2010 • Whole No. 267 187 scrip, backed by The Princetonian. In taking this step, The Princetonian intends to show its confidence in the banks and in the checks of the undergraduates. Thus the notes had become a reality. They were printed by the on-cam- pus Herald Press in the 25¢ denomination only, as this facilitated the purchase of lower value items while reducing the need for making change. Students could obtain the scrip starting March 7 from the business office in maximum lots of $5 by depositing an endorsed check. By 12:30 pm that day, 713 pieces had been distributed and the remaining stock was gone by 5:30 pm. The entire printing of 2,000 notes, with a face value of $500, was issued on this very first day. There was consideration of a second issue, but this was not necessary, as the original issue was adequate to meet the needs of the college and community. Besides, there was general consensus that the banking holiday would not last long, which it did not, being lifted on March 15. Once the banks reopened, the students’ checks were deposited, cleared at their respective banks and the outstanding scrip was redeemed with cash exchanges. Design of the Scrip The scrip is very basic in appearance, not surpris- ing given the expedited circumstances and presumably low production budget. The paper is a yellowish-gold color, and the printing is done entirely in black ink. Each piece is approximately 127 x 76 mm in size. At the top is the header “The Daily Princetonian.” Below that is the serial number to the left, with “Princeton, N.J.” and “March 7, 1933” to the right. Below these is the clause: “PAY TO THE ORDER OF THE ENDORSEE TWENTY-FIVE CENTS ONLY.” At the bottom of the note is the value “$25/100” to the left, and the signature of the business manager on the right. At the very bottom is the statement: “GUARANTEED BY DAILY PRINCETONIAN WHEN ENDORSED ON BACK.” The back of the note is blank and is intended for the user’s endorsement. There have been few auction sales of this scrip in the last half-decade. One piece was lot 2300 in CAA Sale #290 at the May 2002 CSNS. The note has serial no. 1936 and is stamped-can- celled with a large red ‘VOID.’ It sold for $115 including the buyer’s fee. Two pieces were listed in separate Lyn Knight Auctions: One was lot 258 in the March 2005 CPMX Auction. It was described as, “...issued, canceled...” The second note was part of lot 265 of the November 2005 PCDA Auction, where it was listed as, “...issued, and not canceled...” The only variety among these notes is how the redemption was marked. The note in the above-mentioned CAA sale has a red, stamped cancel. The piece pictured with this article has a handwritten “cancelled” in script. Brown (1941) displays a copy of note no. 375 with a typewritten and underlined “CAN- CELLED.” A brief article from the March 7, 1933, New York Times announcing the Princetonian scrip. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 187 Paper Money • May/June 2010 • Whole No. 267188 Legacy of the Princetonian Scrip Below in an excerpt (J. DeLooper, personal communication, October 12, 2008) from an interview with William Selden conducted in 2006 by W. Bruce Leslie for the Princeton University Alumni Council's “Princetoniana Oral History Project:” Mr. Selden: I as an undergraduate was a business manager of the Princetonian, and the paper the previous year had lost money because of loss of advertisement and so on. When I was business manager, the things picked up considerably. In March of 1933, Roosevelt issued an edict closing all the banks. Do you remember that? Or reading about it, I meant. Mr. Leslie: (laughter) Bank holiday. Yeah. Mr. Selden: That was because some of them were in very bad financial condition, and only after inspection were they granted to open, and some never opened at all. Well, as business manager, I realized that the merchants in Princeton, as other places, were going to be stuck, especially when dealing with students. Viedt's and Renwick's, which are soft drink places, Garden and Arcade Movies, if they couldn't get cash, what were they going to do? Now, the haberdasheries and stores of that type would charge and give credit, so I thought of the idea of issuing scrip, and we issued scrip in 25 cent denominations. I, on the way to breakfast, bumped into a pleasant faculty man in economics, George Modlin, who later left and went to Richmond and was president at the University of Richmond. I asked him what would he think of the idea of my issuing in the name of the paper scrip. He said, “Well, I'd go and do it.” So then I went to Dean Eisenhart just to get university approval, because I didn't want to proceed and embarrass the University. He said, “No question at all,” so I immediately got the freshmen who were working to get on the paper to go up and down Madison Street to all the mer- chants and ask them would they accept scrip, and if so, would they make payment to put their names in the newspaper advertisement. They all said yes, so the next day I was issuing scrip, signing each one. And the result was that every check that they accepted from a student was ultimately paid. Everything was cleared, and I had requests for copies of the scrip later—around the world, different places, people who were collecting samples and so on. So that was an interesting experience. Mr. Leslie: So none of the checks were drawn on banks that didn't [re- open]… Mr. Selden: Oh, yes. Well, that's correct. That's correct, and if they were, I went to the individuals and got them to pay otherwise. As indicated by the interview, the Princetonian scrip was very successful. Mr. Selden identified a problem, realized the potential impact it could have, and quickly and simply designed a solution to mitigate the negative effects. Brown (1941) summed it up quite eloquently in his thesis: “While the congressman and bankers were trying to solve the financial conditions of the country the students of Princeton put into place a simple economics theory— namely, that a credit issue will be readily accepted as long as those accepting it have faith in the one issuing it.” *May/June 2010 Paper Money 8/9/11 11:19 AM Page 188 Paper Money • May/June 2010 • Whole No. 267 189 United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: www.executivecurrency.com (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail: Bart@executivecurrency.com 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@comcast.net website: horwedelscurrency.com The Nation’s Oldest Family Owned Numismatic Firm Since the 1930’s, the Kagin’s Currency Department -- through Art, Don & Judy -- has been known to offer some of the ÀQHVWDQGUDUHVW86&XUUHQF\,QIDFWZHKDYHRZQHGRUKDQGOHGRYHURI WKHFXUUHQF\OLVWHGLQ)UHLGEHUJRU.UDXVH LQFOXGLQJWKHPRVWYDOXDEOHEDQNQRWHLQWKHZRUOGWKH81,48(5HG6HDO*UDQG:DWHUPHORQ7UHDVXU\1RWH'RQ DQGRXUFXUUHQF\VSHFLDOLVW0HUHGLWK+LOWRQRIIHURQHRI WKHLUIDYRULWHGHQRPLQDWLRQVHWVIURPWKUHHGLIIHUHQWVHULHV7KH 5RDULQJ·VThe Roaring 20’s )U*ROG&HUWLÀFDWH7(&+1,&2/2530*(342QHRI WKH PRVWEHDXWLIXOQRWHVHYHUSURGXFHGWKLVLVDFROOHFWRU·VGUHDP6WXQQLQJ YLYLGFRORUVUD]RUVKDUSFRUQHUVDQGJUHDWPDUJLQVPDNHWKLVQRWHDEVROXWHO\ JRUJHRXVDQGLVRQHRI WKHÀQHVWH[DPSOHVZHKDYHKDQGOHG/LVWHGDV LQWKH*UHDWHVW$PHULFDQ&XUUHQF\1RWHVWKLVQRWHZLOOÀWQLFHO\LQDQ\ GLVWLQJXLVKHGQXPLVPDWLFFROOHFWLRQ$FTXLUHWKLVH[DPSOHWRGD\EHIRUHWKH WKLVRSSRUWXQLW\LV*21(« 'RQ.DJLQVHUYHVDVSUHVLGHQWRI .DJLQ·V,QFKDYLQJHDUQHGERWKWKHQDWLRQ·VÀUVW%$LQ1XPLVPDWLFVDQG3K'ZLWKDPLQRULQ&RORQLDO 863DSHU&XUUHQF\'RQ·VFRPPLWPHQWWRWKH.DJLQ·VWUDGLWLRQRI QRWRQO\EXLOGLQJFROOHFWLRQVEXWDOVRUHODWLRQVKLSVJXDUDQWHHVSHUVRQDOL]HGDWWHQWLRQWRHDFKFOLHQWLQDFTXLU- LQJDQGVHOOLQJWKHUDUHVWDQGÀQHVWQXPLVPDWLFPDWHULDO-RLQLQJWKH.DJLQIDPLO\LQDQGXQGHUWKH WXWHODJHRI $0 $´UWµ.DJLQ0HUHGLWK-+LOWRQOHDUQHGWKHLQVDQGRXWVRI UDUHFXUUHQF\+HIRUPHGDGHHS UHVSHFWDQGERQGZLWK$UWGXULQJKLVDSSUHQWLFHVKLSDQGDIWHU$UW·VSDVVLQJ'RQ -XG\KHOSHGXVKHU 0HUHGLWKLQWRWKHUROHRI &XUUHQF\6SHFLDOLVWDW.DJLQ·V+HKDVKDGWKHSULYLOHJHRI ZRUNLQJZLWKWKUHHRI WKHJUHDWHVWQXPLVPDWLFPLQGVLQFXUUHQF\DQGQRZLVFRQVLGHUHGDQH[SHUWLQKLVRZQULJKW Presents )UE/HJDO7HQGHU3&*6 3347KLVQRWHLV7,(')257+(),1(67.12:1 DW3&*6ZLWKRQO\RQH30*7KLVÀUVWW\SH RI ELOOKDVH[FHSWLRQDOSULQWGHWDLOEULJKW YLYLGFRORUDQGQHDUSHUIHFWPDUJLQV5DUH ZLWKOHVVWKDQNQRZQ$GGWKLVQRWHWR your portfoOLR« )U/HJDO7HQGHU5DLQERZ3&*6 3347,(')257+(),1(67.12:1:LWK RQO\QRWHVNQRZQWKLVUDLQERZQRWHLV UDUHDVLWLVEHDXWLIXO6HFXUHWKLVQRWHWRGD\ EHIRUHWKHPDUNHWUHERXQGVLQWKH *UHDWHVW$PHULFDQ&XUUHQF\1RWHV« Let our family tradition build your family legacy 0HUHGLWK+LOWRQDon Kagin &DOO0HUHGLWKRU'RQWRGD\.$*,16‡9LVLW8V2QOLQHZZZNDJLQVFRPQHZLWHPVSRVWHGZHHNO\ A Numismatic Tradition Since 1933 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 189 Paper Money • May/June 2010 • Whole No. 267190 DR. WILLIAM DARLINGTON, PRESIDENT OF THEBank of Chester County, PA was robbed of $51,000 of the bank’s notes on Dec. 23, 1847. Darlington was returning to West Chester by train from Philadelphia, where he had made one of his regular trips to exchange bank notes; the Bank of Chester County had an arrangement with the Philadelphia Bank to exchange notes of banks in good standing of Philadelphia received in West Chester for notes of his own bank. As recounted by Nelson Page Aspen, all of the old notes of the bank then in circulation were called-in and not issued again. A new issue of $540,000 was immediately printed, and the notes were distinguished from the previous issue by the use of red ink. The bank’s 150th anniversary booklet states ironically: The Bank Directors ordered new notes printed in red ink and with pictorial changes interesting to specu- late upon. The $500 bills, which had previously been decorated with a rural scene of farmers making hay, was replaced by “three female figures, one sitting on a block of stone,” a tribute perhaps to the increased number of lady depositors. The $1,000 notes, that had been orna- mented with a drove of cattle passing a toll gate -- did cows pay toll in those days? -- was superseded by the “view of a locomotive and cars coming around a curve,” probably a subconscious reminder of the danger of car- rying money on the railroad. Hoober lists one design each for the $500 and $1,000 notes of the Bank of Chester County. The central design (assumed to be the portion of the notes mentioned in the bank booklet) listed for each note is as follows: 441-23 $500 . . . (C) Three men, railroad, viaduct, and city, $500 on medallion head at right. W-1460. 441-24 $1000 . . . (C) Train of passenger cars, distant city. W-1461. The “W” reference number following the description indicates that the description is taken from the listing com- piled by D.C. Wismer. The description for the $1,000 note would appear to be that for the new design issued by the bank after the robbery. The description of the $500 note is difficult to pin down; “three men” cold be the farmers referred to in the bank book- let; it is possible that “farmers making hay” could be confused with “three females figures, one sitting on a block of stone,” but highly unlikely. The Wismer description of both notes does not mention the color of the ink used on the notes. None of the designs discussed are illustrated in the bank booklet or Pennsylvania Obsolete Notes and Scrip. Mr. Hoober assigns an “R6” rarity rating to the $500 note described, indicating that 6-10 notes were believed by him to exist when the book was published 25 years ago in 1985. Perhaps the possessor of one of these notes will provide an illustration to Paper Money; it would be a pleasant surprise if illustrations of both designs were submitted for publication. References Aspen, Dr. N.P. “A History of the National Bank of Chester County,” Paper Money, vol. 12 no. 1 (1973), pp. 27-29. Hoober, R.T. Pennsylvania Obsolete Notes and Scrip. Society of Paper Money Collectors, Inc., 1985. Shenton, E. 150 Years of a Bank and People. West Chester, PA: National Bank of Chester County and Trust Co. v Acknowledgment Much assistance for this article was provided by John DeLooper, Special Collections Assistant, and Dan Linke, University Archivist, of the Seeley G. Mudd Archivist Library at Princeton University. References Brown, V. Scrip and Other Forms of Emergency Currency in the United States during the Depression Years 1931-1934. Master’s Thesis, Graduate School of Business Administration, New York University, New York, NY, 1941. Daily Princetonian, March 7, 8 and 15, 1933. Daily Princetonian Microfilm, Princeton University Archives, Department of Rare Books and Special Collections, Princeton University Library. Hatch, R. “The Day the Banks Closed,” New York Times, Nov. 1, 1976. Retrieved from ProQuest Historical Newspapers. Heritage Auction Galleries. Currency Auctions of America Sale 290, 2002. Lyn Knight Currency Auctions. CPMX Auction, 2005. Lyn Knight Currency Auctions. PCDA Auction, 2005. Mitchell, R., & Shafer, N. Standard Catalog of Depression Scrip of the United States. Iola, WI: Krause Publications, 1984. v Robbery Causes Bank Note Design Changes by Bob Cochran *May/June 2010 Paper Money 8/9/11 11:19 AM Page 190 Paper Money • May/June 2010 • Whole No. 267 191 T HE CATALYST FOR MY INTEREST IN NATIONAL BANK Notes, especially notes from my town, came from a unique and respected individual who I had the privilege of knowing and calling friend. But let me start by introducing myself. My name is Greg Henry, and I have been a collector of coins and currency since 1964. My current interest is National Bank Notes, specifically the ones from my home town of Oblong, IL. Oblong is located in southeastern Illinois in Crawford County. We have a population of approximately 1,600 people, and one flashing light at the four-way stop in the middle of town. Needless to say, we are not a hot bed of numismatic activities. The Oil Belt National Bank of Oblong, Illinois was organized in May of 1907, and operated until 1931. Guy Tomlinson, who actually signed the Oil Belt notes during its years in operation as a bank official, the cashier, was a well- known figure about Oblong during my teen years. He could be seen walking from his home on the west side of town to the business district located several blocks away. His long stride and stately bearing belied the character that most people knew of Guy. He could play the violin like a concert maestro or he could entertain and amuse people with his rapier-like wit and stories. One story he liked to tell on himself was that once he was asked to play a favorite num- ber on the violin at a gathering and while he was playing he noticed a man who seemed expecially moved to tears during the song. When the song was over, Guy approached the man and asked him if this was a special song or had significant meaning to him. The man replied, no, he was a violinist, suggesting Guy had not done the piece justice. I had the privilege as a 15-year-old to befriend Guy. I mowed his yard and did various chores for him. He had the unusual habit of sending me copies of news items from the local paper any time my name or picture appeared. He usu- ally attached a note of congratulation or appreciation with the article or picture. In later years, around 1980, Guy approached me one evening at the end of Sunday night church services. We spoke and then he said he had something he wanted to show me. Well, with Guy you knew you were in for a treat if he had something to share with you. He pulled out his wallet and took out a folded piece of paper. I couldn’t see right away what it was he wanted to show me. While he A History of the Oil Belt Bank of Oblong, Illinois or “How I started Collecting National Banknotes” by Greg Henry Guy said, “I have some money here with my name on it.” . . . I sort of laughed and said, “Of course you do.” *May/June 2010 Paper Money 8/9/11 11:19 AM Page 191 Paper Money • May/June 2010 • Whole No. 267192 was unfolding the paper he said, “I have some money here with my name on it.” Of course, not knowing much about banknotes at the time, I sort of laughed and said, “sure you do.” He just smiled and held up the well-worn note for me to see. Sure enough, there was the name, G.E. Tomlinson, in his hand-written facsimile signa- ture on the note. Needless to say, I was hooked. When the Oil Belt National Bank of Oblong, Illinois was first organized in 1907, its incorporators were J.H. Wood, J.A. York, E.M. Cooley, and Joseph Ames. Its beginning capital was $25,000 and in later years was increased to $50,000. J.H. Wood was the first president of the bank, followed by O.M. Kirk and finally E.L. Douglas. In November 1931, the First National Bank of Oblong merged with the Oil Belt National Bank. The Oil Belt bank building was constructed in 1920 especially for banking so the First National Bank moved into the Oil Belt bank location at the intersec- tion of Main and Range streets but assumed the name of The First National Bank of Oblong.1 The Oil Belt National Bank of Oblong, charter #8696, has eight large size notes and 10 small size notes included in the current known cen- sus.2 Its 1902 Red Seal notes were issued in $10 and $20 denominations. The 1902 Date Back notes, as well as its 1902 Plain Back notes, were also issued in those denominations. Series 1929 small size notes were issued in $10 and $20 denomina- tions in Type 1 variety only. The total amount issued was $492,640, and $50,000 in small notes and $4,890 in large notes were outstanding at the close of the bank. In November 1931 the First National Bank of Oblong assumed the assets of the Oil Belt National Bank, which was liquidated on Dec. 15, 1931.3 I knew back on that Sunday evening many years ago that Guy Tomlinson would not part with that note he showed me nor would I have wanted One story Guy liked to tell on him- self . . . was a man who seemed especially moved to tears during the song. He was crying, he implied, because he was a violinist himself, suggesting Guy had not done the piece justice. Oil Belt Bank, 1907-1920, Bank Corner and Colonial Hotel. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 192 Paper Money • May/June 2010 • Whole No. 267 193 SPMC NEW MEMBERS 2/7/10 These memberships expire in one year. 13218 Glen Jeong, PO Box 10231, San Rafael, CA 94912- 0231 (C, China, Hong Kong), Paper Money Values 13219 Sam Halter (D), Judith Murphy 13220 Grant Campbell (D), Judith Murphy 13221 Chuck Armstrong, 1395 Judd Rd, Saline, MI 48176 (C, Fractional & MPC), Judith Murphy 13222 Roger O. Goodwin (C), Website 13223 Roy Hill, 409 E. 34th St, Savannah, GA 31401 (C), Website LIFE MEMBERSHIP LM396 Joe David Brooks (C), Allen Mincho SPMC NEW MEMBERS 3/7/10 These memberships expire in one year. 13224 Jerry Axner (C), Robert Moon 13225 John J. Plummer, PO Box 360, Corbin, KY 40702- 0360 (C), Website 13226 Sharion Farrow, PO Box 389, Romayor, TX 77368 (C & D), Website 13227 Keith Brack, PO Box 191, Spearville, KS 67876 (C, US Large, Fractional, Colonial), Website 13228 W. Keith Starliper (C), Website 13229 Sterling Brown (C), Paper Money Values 13230 Virgil (C), Lowell C. Horwedel 13231 Roy E. Blades Jr. (C), Website 13232 Joe Barrentine (C), Jason Bradford 13233 Donald Bellafiore (C), Jason Bradford 13234 Stephen Blanton (C), Jason Bradford 13235 Vincent Droazzi (C), Jason Bradford 13236 Keith Edwards (C), Jason Bradford 13237 Jim Endicott (C), Jason Bradford 13238 Eli Finestone (C), Jason Bradford 13239 Richard Foster (C), Jason Bradford 13240 Richard Gore (C), Jason Bradford 13241 Will Harjes (C), Jason Bradford 13242 William A. Kiel (C), Jason Bradford 13243 Douglas Lohoefener (C), Jason Bradford 13244 Robert E. Remy (C), Jason Bradford 13245 Eugene Rosner (C), Jason Bradford 13246 Randall Young (C), Jason Bradford v WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell dupli- cates, advertise wants, increase your col- lection, and have more hobby fun. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * • extra charges apply for longer ads • Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 www.TheHigginsMuseum.org email: ladams@opencominc.com Open: Tuesday-Sunday 11 to 5:30 Open from mid-May thru mid-September History of National Banking & Bank Notes Turn of the Century Iowa Postcards SPMC thanks our generous donors for 2009 Memphis Coin Club Leon H. Stacey Jr. Tim Mitchell Dean Davis Jeffrey L. Ferrand Lee Lofthus Allen L. Munro Russell Pike Ellen J. Richardson Harton Semple Jr. Greg R. Super Dennis P. Coughlin Louis H. Geser Michael Burke Ed Charnin Brian J. Cote Michael J. Kissinger *May/June 2010 Paper Money 8/9/11 11:19 AM Page 193 Paper Money • May/June 2010 • Whole No. 267194 him to do so. But my quest for the Oil Belt National Bank note had begun. I kept my eye open over the years, but with raising a family and bills to pay, my dream of obtaining this prize was not to be. Finally in 2001 I saw one for sale on the internet and was able to make the winning bid for it. Since that time I have been able to obtain a couple more exam- ples, plus I have expanded to col- lecting examples from the First National Bank of Oblong. We have a rich tradition here in small town America and I hope to be able to pass that along to my sons and grandsons. Our history is intertwined with people of greatness and everyday stature. To have known someone of that era is indeed a truly rewarding experience. End Notes 1. History of Crawford County Illinois, vol. 2, 1980. 2. Don C. Kelly, National Bank Notes: A Guide with Prices, 6th ed. 3. Don C. Kelly, National Bank Notes: A Guide with Prices, 4th ed. Acknowledgements I would like to acknowledge the assistance of Stephanie Henry, Mahomet, IL; Phil Boyd, First Robinson Savings Bank (Oblong, IL branch); and Robinson Public Library Genealogy Section. v First National Bank building at the time of the merger, 1931. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 194 Paper Money • May/June 2010 • Whole No. 267 195 T HE CITY OF LA FERIA IS PART OF A 1777 ORIGINAL SPANISH land grant made to the Balli family which means “the fair.” The First National Bank of La Feria, TX, charter #12747, located in the Rio Grande valley between Harlingen and Mercedes, was chartered in May of 1925. It issued $50 Type 1 and $20 Type 2 notes. Kelly's census shows 10 small reported, but my census is 14, adding another three $50 Type 1 and one rare $20 Type 2. I recently purchased a $50 from La Feria off of eBay and noticed that the city is spelled LAFERIA on the note without the space between “La” and “Feria” and with the “A” in “LA” capitalized. I went to La Feria to see if this was indeed a mistake in the spelling of the town name. I first went to the library, which is named after the cashier on the note, B.H. Dunlap. The librarians had never seen a La Feria note so I let them copy it for the library archives. They then informed me that the granddaughter of Mr. Dunlap still lived in the area and gave me her number. I called Betty Jo Dunlap and she met me at the library to look at the note. She confirmed, along with the librarians, that the the town name, La Feria, had been merged together on the note. Betty Jo had seen some of the national notes from the bank in her youth, but had never recol- lected the error. Notes are still in family hands, number unknown, and she is cur- rently trying to locate who has what. I also talked to Darla A. Jones, assistant city manager of La Feria, who showed me the original city charter. The name of the town on the charter is La Feria and she also noted that the town spelling on the note is an error. I asked for a copy of the city charter page with the town name, but she said that the copy machine would degrade the document. The original National Bank charter application must have been correct and the error must have been made at the BEP accidently merging La Feria into one word. Two other Texas town charters where the error did not occur with the female La prefix are La Coste and La Grange which were both chartered before La National Bank Note shows error spelling La Feria or Laferia still means “the fair” by Adrian Waller *May/June 2010 Paper Money 8/9/11 11:19 AM Page 195 Paper Money • May/June 2010 • Whole No. 267196 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 196 Paper Money • May/June 2010 • Whole No. 267 197 Feria. Other Spanish named National Bank towns are El Paso and El Campo with the male El before the town name. If you look at your Kelly book the town name is spelled correctly as La Feria. This is a National Bank note error that is obvious to detect, but has been overlooked until now. Census of known small size LAFERIA National Bank Notes: 1 $20 Type 2 serial number unknown 2 $50 Type 1 F000009D 3 $50 Type 1 F000011D 4 $50 Type 1 F000026E 5 $50 Type 1 F000068D 6 $50 Type 1 F000072B 7 $50 Type 1 F000099A 8 $50 Type 1 F000128A 9 $50 Type 1 F000131C 10 $50 Type 1 F000131D 11 $50 Type 1 F000147A 12 $50 Type 1 F000160F 13 $50 Type 1 F000163C 14 $50 Type 1 F000196E v The BEP misspelled the town name LAFERIA (one word) on nationals of The First National Bank of La Feria, Texas. Note on the town charter (shown opposite) the town’s name is La Feria (two words). Similar town names for La Coste, TX and La Grange, TX were spelled correctly on the notes. Reader reports new scrip note from Pennsylvania Hello Fred, I wanted to send you a copy of a Pennsylvania note that had no known imprint in the Pennsylvania book on obso- letes by Richard Hoober. If you can use it in the magazine, go ahead. Please share with others. -- Emmett Haralson v *May/June 2010 Paper Money 8/9/11 11:19 AM Page 197 Paper Money • May/June 2010 • Whole No. 267198 JANE KAMESKY’S THE EXCHANGE ARTIST. A TALE OF HIGH-FLY-ing Speculation and America’s First Banking Collapse (New York: Viking, 2008)is an engaging biography of Andrew Dexter, Jr., as well as the story of thegrand hotel that he built, the Exchange Coffee House. The book also describes the failures of the Berkshire Bank of Pittsfield, MA, and the Farmers’ Exchange Bank of Gloucester, RI, both of which were controlled by Dexter, and comments on the bank panic of 1808-1809. This bank panic began as concern for the solvency of the Farmers’ Exchange Bank developed into a run on it and certain other banks. The Farmers’ Exchange Bank would be revealed to have been engaged in reckless banking and to have massively violated its charter. It was forced to close; and, the mass of its notes fell “dead in the hand.” Subsequently, seven other banks – Penobscot of Maine (technically, of the Maine District of Massachusetts), Berkshire and Northampton of Massachusetts; Coos, Cheshire and Hillsborough of New Hampshire; and, the Vermont State Bank – were forced into suspension, from which only two – Coos and Cheshire – would later recover. Table 1 summarizes these developments. Kamensky does not speak to the specifics of the bank panic. She merely says “Over the next six months, most of the banks in Dexter’s network … went under … Some banks, wrongly swept up in the tide of rumors, managed quickly to right themselves.” But, what appears to have been the spread of failure from one or more banks to others because of rumors and fear was mostly the result of the enact- ment of a small bill prohibition by the state of Massachusetts. The small bill prohibition resulted in the return of change notes and frac- tional currency to the country banks of New Hampshire and to the Vermont State Bank, which banks had been supplying the Boston market with small-denomination notes. This and the fact that these banks were heavily invested in illiquid assets, viz., loans secured by real estate, resulted in their failure. The Lottery & Exchange Brokers of early 19th Century Boston During the early years of the country, money markets developed in the larger cities consisting of competing “Lottery & Exchange Brokers.” These bro- kers offered to exchange various forms of money, such as notes that would pass cur- America’s First Bank Panic By Clifford F. Thies, PhD Eldon R. Lindsay Chair in Free Enterprise and Professor of Economics and Finance Shenandoah University *May/June 2010 Paper Money 8/9/11 11:19 AM Page 198 Now available Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Books available mcfarlandpub.com, amazon.com, floridamint.com, barnesandnoble.com, hugh shull Paper Money • May/June 2010 • Whole No. 267 199 MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00 Colonial 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00 Small Currency 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00 Large Currency 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00 Auction 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00 Foreign Currency 8 x 5 $32.00 $58.00 $265.00 $465.00 Checks 9-5/8 x 4-1/4" $32.00 $58.00 $265.00 $465.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00 National Sheet Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00 Stock Certificate End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00 Map & Bond Size End Open 18" x 24" $82.00 $365.00 $665.00 $1530.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY’S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 See Paper Money for Collectors www.denlys.com 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 Ful l -Serv ice Numismat ic F irm Your Headquarters for Al l Your Col lect ing Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA HARRY IS BUYING NATIONALS — LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES 7379 Pearl Rd. #1 Cleveland, Ohio 44130-4808 1-440-234-3330 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 199 Paper Money • May/June 2010 • Whole No. 267200 rent locally for “foreign” notes. Business newspapers, specialized “bank reporters,” and many general interest newspapers would come to feature bank note tables, with quotations for the notes of individual banks and/or categories of banks. Bank note tables or their predecessors were published by various New England newspa- pers as early as 1806. Going into 1806, the most prominent Lottery & Exchange Broker in Boston was the firm of Gilbert & Dean. In September 1806, the firm ran an advertisement in the Boston Gazette offering various exchanges, such as offering to accept foreign bank notes at a discount of 2 percent. In January 1807, they offered to accept notes of certain foreign banks, mostly those near Boston, at a discount of only one-half of 1 percent, and to accept small bills (i.e., notes with denominations of less than $5) at a discount of 11⁄2 to 2 percent. Then, in November 1807, Gilbert & Dean published their first Bank Thermometer. This and subsequent Bank Thermometers gave detailed information regarding the values of foreign bank notes. The term “Bank Thermometer” proved to be popular, and was sometimes used by other brokers during 1809 following the failure of Gilbert & Dean. Piecing Together a Time Series From December 1807 to May 1810, I have good information based on bank note tables, initially from Gilbert & Dean, and later from R. Huntington and W. & T. Kidder. Throughout the period, and most importantly during the second *May/June 2010 Paper Money 8/9/11 11:19 AM Page 200 Paper Money • May/June 2010 • Whole No. 267 201 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 201 Paper Money • May/June 2010 • Whole No. 267202 wave of the panic when bank note tables became sparse, I have a variety of price information from editorial comments and merchant advertisements. For some examples of price information available in editorial comments, early during the May 1809 run on the Berkshire Bank, editors of two papers referred to its discount among the brokers of Boston, viz., 121⁄2 percent and 15 per- cent. In August, the editor of another paper indicated early during the run on the Coos Bank, that the discount in Boston on that bank’s bills had been 7 percent dur- ing the prior week. For some examples of price information available in merchant advertise- ments, I have ads such as “Berkshire bills at 10 percent discount and Vermont at par for English goods,” “Vermont and Penobscot at par, Berkshire and Coos at a discount for merchandise,” “Berkshire, Vermont, Coos, Penobscot and Cheshire bank bills same as par,” and “Coos Bank bills 35 percent discount for lottery tickets, Vermont at par.” Invariably, these ads offered to accept money being discounted by brokers, so that the offer of accepting the money “at par” must have been something of a euphemism. Perhaps the offer was to accept the money at par for a stated value of merchandise when a discount from this stated value or some other consideration was available to buyers tendering current money. Based on nearby broker dis- counts, I interpret an offer to accept uncurrent money “at par” to involve an implic- it discount of 15 percent, at an unstated discount to involve an implicit discount of 30 percent, and at a stated discount to involve an implicit discount of the stated dis- count plus 15 percent. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 202 Paper Money • May/June 2010 • Whole No. 267 203 Farmers Bank of Rhode Island $1, $3, $5 and $10 notes. The signers are William Colwell, Cashier, and John Harris, President. Andrew Dexter, Jr., got Colwell to sign bank notes amounting to more than seven times the allowed circulation of the bank. When the bank was closed, he was arrested by the sheriff of Kent County, with whom he fully cooperated. John Harris, a lower court judge in Providence County, perhaps tipped off by a friend on the bench, fled the state (Illustrations courtesy of Heritage Auctions) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 203 Paper Money • May/June 2010 • Whole No. 267204 With the information provided by the bank note tables, editorial com- ments, and merchant ads, I developed a monthly time series of bank note dis- counts. Some of this time series is presented in Figure 1. The Tale of the Tape As is shown in Figure 1, the panic consisted of two waves. The first wave began during late 1808. It involved the Farmers’ Exchange and some other banks, and resulted in the Farmers’ Exchange Bank being put out of business. Upon the failure of the bank, its Cashier turned state’s evidence, and revealed the sordid details of his master. Kamensky’s telling of this part of the story is quite good. After gaining control of the bank, Dexter used it as a “money manufacto- ry,” borrowing – with no security or guarantor – reams of paper money, seven times the amount allowed by the bank’s charter. As Kamensky points out, it was with this bank that Dexter crossed the line “between high finance and brazen fraud.” At the time, the problem of moral hazard in finance was not well under- stood. Accordingly, moral culpability might not have attached to self-dealing by bankers, as long as they stayed within the law. But, as the report of the legislature of Rhode Island on the Farmers’ Exchange Bank demonstrates, it not only engaged in self-dealing, it broke the law. A second bank that was run upon during the first wave of the panic was the Berkshire Bank. This bank was also controlled by Dexter. As shown in Figure 1, this bank survived the run, only to be forced to close by another run a few months later. How did this bank survive the first run? Relying on manu- script sources, Kamensky indicates that, during January 1809, Dexter obtained a loan from the Berkshire Bank, for which he posted his newly-completed Exchange Coffee House as collateral. She says that it was hoped that with this money “he would turn his affairs around.” Here is what I discovered: During the month of January, newspapers noticed that the Berkshire Bank’s credit had been “restored” by the payment of a large amount of drafts on the bank. What the newspapers did not know at the time is that Dexter, as an agent for the bank, was selling the (good) assets of the bank at a discount to acquire the funds needed to prop up the value of its notes and other liabilities. Judging by the recovery in the value of Berkshire bank notes, shown in Figure 1, the brokers of Boston were also unaware of Dexter’s transactions. Among those suckered by Dexter were Gilbert & Dean. An ad of theirs read, “Gilbert & Dean will take [Berkshire Bank notes] in large or small sums for a discount of 11⁄2 percent for which they will give other current foreign bills.” A few months later, as major creditors of the Berkshire Bank whose one remaining valuable asset was a loan to Dexter secured by his newly-completed Exchange Berkshire Bank $5 note. The signers include Simon Larned, President. When his bank failed, he declared the bank a victim of Andrew Dexter, Jr., rather than its ally. (Image cour- tesy Heritage Auctions) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 204 Paper Money • May/June 2010 • Whole No. 267 205 Coffee House, Gilbert & Dean found themselves in the hotel business. While Dexter’s transactions temporarily gave the appearance of a bank that was able to redeem its notes, the actual result was that the valuable assets of the bank came to be replaced by worthless assets, so that upon its failure its notes – like those of the Farmers’ Exchange Bank – fell “dead in the hand.” It was only a few months later, during the second wave of the panic, that the Berkshire Bank was forced to close. Said one newspaper, “Great consterna- tion prevailed on this town yesterday on account of a report that the Berkshire Bank had failed; and the bills of that bank were in consequence refused in negoti- ations, and sold at large discounts.” It was at this point that Dexter reckoned that the gig was up. “Andrew Dexter jun., the principal swindler engaged in the Farmers Exchange Bank, is reported to have eloped …” Kamensky tells us that Dexter fled to Halifax, Canada, where members of his wife’s family, being Loyalists, had relocated during the Revolutionary War. Contagion or Something Else? That two banks used by Dexter to defraud the public would fail is lam- entable but understandable. But, why did these two failures precipitate runs on other banks? Was it merely due to rumors and fear? This certainly appeared to be the case to many. “One day the bills of every bank of this state (Berkshire excepted) are considered and pass as current money. The next day some passen- ger in the stage from Boston informs that the brokers … refuse to take the bills of a particular bank at par. Instantly the news spreads like an electric shock, and down go the bills of Hallowell, Wiscasset and Penobscot banks.” Yet, if the mar- ket in bank notes is efficient, we would expect their price changes to be unpre- dictable and for the news of large price changes to spread “like an electric shock.” During the panic, concern arose for the effect of small-denomination notes driving specie out of circulation and exposing the ordinary citizens to losses upon the failures of banks. Therefore, the state of Massachusetts banned all bank notes of less than $1 and all out-of-state bank notes of less than $5. According to Top: Primitive note of Cheshire Bank, Keene, NH $1 note, 1806. (Image courtesy Denly’s of Boston) Above: Another Cheshire Bank Perkins patent $1 note. (Image cour- tesy Q. David Bowers) This bank was run upon and forced into suspension, but later reopened. *May/June 2010 Paper Money 8/9/11 11:19 AM Page 205 Paper Money • May/June 2010 • Whole No. 267206 the Boston Gazette, which apparently supported the legislation, the law “drove out of circulation the small bills of the neighboring states.” It estimated the amount to be between two and three hundred thousand dollars. At a later time, this paper called upon the Boston banks to expand their circulation, since “five or six hun- dred thousand dollars” of country bank paper that formerly served as currency no longer did so. It turns out that the banks in the western region of the state and in its Maine district, in New Hampshire and in Vermont were hardly able to redeem the “reflux” of their notes. In fact, none of the troubled banks in these places had been redeeming their notes by paying specie at their counters, but all of them had been doing so by drafts on Boston, which would indicate a lack of liquidity. As to whether a particular bank was forced to close by the reflux, either temporarily or permanently, depended on its circumstances. Some discussion of the experiences of particular banks will be sufficient to animate the summaries given in Table 1. The Vermont State Bank was one of the banks forced to close during the panic. It was wholly-owned by the state of Vermont, with its directors appointed by the state legislature. This socialistic experiment was supposed to avoid the evils associated with privately-owned banks, and to make credit available to the citizens of the state on a democratic basis. Its earnings were supposed to lessen the burden of taxation. The Vermont State Bank had no paid-in capital except for its “backing” by the state. Its money was never accepted by the banks of Boston, and circulated there only because of its small denomination and market-making by brokers. During the panic, drafts on Boston issued by two of its four branches to redeem its notes were protested. And, soon after this failure it became apparent that the bank had a sol- vency problem and not merely a liquidity problem. Newspapers began to notice that about half of its assets consisted of judgments and loans in suit. Subsequent reports of the state legislature downplayed the problem of collecting upon the State Bank of Vermont 75¢ and $3. The Vermont State Bank issued small notes that circulated in Boston with support of the brokers there. Notes were “redeemed” by enacting a new tax for which these notes were receivable. (Images courtesy Heritage Auctions) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 206 Paper Money • May/June 2010 • Whole No. 267 207 bad loans of the bank and overplayed the potential windfall due to the non-return of notes. But, eventually, the state owned up to the fact that the assets of the bank would never be sufficient to redeem its notes; and, the notes were “redeemed” through the enacting of a new tax for which the notes were receiv- able. The Coos Bank of Haverhill, NH, was another bank that was forced to close during the panic; but, unlike the Vermont State Bank, it was subsequently reopened. The Coos Bank, along with two other New Hampshire country banks and the Vermont State Bank, issued small bills that circulated in Boston with the support of brokers there, and redeemed its notes by drafts on Boston. Soon after it closed its doors, officers of the bank indicated that its embarrassment was prin- cipally due to its funds being tied-up in loans secured by real estate. While the practice of extending real estate-backed loans with the funds amassed by the issue of notes and acceptance of deposits payable on demand might be criticized, it has been a long-standing practice in the United States. The Coos Bank and the two other New Hampshire banks that were forced to close during the panic lingered in suspension for a long time. As is Top: Primitive Coos Bank, Haverhill, NH $3. (Image courtesy Q. David Bowers) Center: A contemporary counterfeit Perkins Patent $2 note on the Coos Bank. (Image courtesy Don C. Kelly) This bank was run- upon, forced into suspension, but later reorganized. Above: Coos Bank $3. The bank issued a new style of notes. (Image courtesy Q. David Bowers) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 207 Paper Money • May/June 2010 • Whole No. 267208 illustrated in Figure 1, during this long period of suspension, notes of the Coos Bank fell to a very large discount. Two years after the panic, a resolution by the legislature of New Hampshire indicated that if these banks did not commence to redeem their notes during the next nine months, the Attorney General should prosecute them. Within the time allowed, the Coos Bank was reopened. With continued forbearance, so too was the Cheshire Bank. By 1816, the notes of both the Coos and Cheshire banks were trading at a discount of only 1 percent in Boston. The Hillsborough Bank of Amherst, the third of the three troubled banks of New Hampshire, did not reopen. The bank had been suspect from its begin- ning. Its notes – like those of the Vermont State Bank – were refused by the banks of Boston. And, brokers found it difficult if not impossible to redeem the bank’s paper. Various accusations were made after the bank failed. Here is what one his- torian said: “Some terribly bitter pamphlets were written and published in regard to its management. For years, any association with the management of the ‘Old Hillsborough Bank’ was deemed a reproach by many of the citizens of Amherst.” Turning to the Penobscot Bank of Bucksport, ME, we find that it, too, was a suspect bank. That this bank was forced into suspension came as a surprise. “[T]here was an alarm, and its bills refused, but we cannot find that there was any special cause for the alarm.” But, upon investigation by the legislature of Massachusetts, the bank was found to be deficient. Following this finding, the bank made several announcements to the effect that it was being reorganized and was about to or actually did resume specie-paying. But, the state legislature found these announcements to be false; and, did not renew its charter. Figure 1 shows that the policy of foreclosure exercised by the state of Massachusetts was more effective in maintaining the value of the notes of banks that failed to redeem, than the policy of forbearance exercised by the state of New Hampshire. Recap and Discussion During the panic of 1808-1809, two banks controlled by Andrew Dexter, Jr., failed; and, a number of other banks were run upon, some of which also failed. It might appear that the bank runs were due merely to rumors and fear. Yet, close examination indicates that a change in public policy played a role in the bank runs. During 1809, because of concern for small-denomination notes driving specie out of circulation and exposing ordinary citizens of the state to losses upon the failures of banks, the state of Massachusetts prohibited certain kinds of small- denomination notes. The prohibition resulted in the return of several hundred thousand dollars of notes to banks that were hardly able to redeem their paper because their funds were invested primarily in illiquid real estate-backed loans. Eleven banks, not including the two controlled by Dexter, were run-upon. Of these eleven banks, six were forced to close, four permanently. v Penobscot Bank, Buckstown, MA $3. This bank failed during the panic. (Image courtesy Heritage Auctions) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 208 Introduction I have had this letter for more than 30 years and always decided that one day I will take the time to fully disclose all the details involved in the mentioned counterfeiting scheme. Since I am an avid collector of obsolete bank notes and advertis- ing notes I knew it had to be done. Now that I have it basically deciphered, I thought it might make for interesting reading to others, so I decided to make it available to SPMC members in this journal. I have no idea as to who this “J. Curtis” was and what part he played in this counterfeiting ring. I think he was just an informer against one of his cell mates probably in hopes of getting out of prison for the information. Frankly I thought it was a great piece of the obsolete bank note her- itage. . . . Long ago letter reveals details of counterfeiting ring by Robert A. Vlack bad Below and on the cover: A handwritten notation “bad” appears on bills of the Phoenix Bank, Hartford, CT of the type described in the letter. Included were $1 (Haxby CT195-C240a), four $3 (C244a), and $5 (C248a) fakes. This group appeared in a 2002 Heritage Auctions sale, where it brought $92. We will never know whether these notes are actually among the bogus bills described in the “J. Curtis” letter, but it is intriguing. (Illustration courtesy Heritage Auctions) Paper Money • May/June 2010 • Whole No. 267 209 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 209 Paper Money • May/June 2010 • Whole No. 267210 Charleston July 8th -- 1833 Dear Sir, Your letter of the 27th ult. was received in due season. I now sit down to reply and before proceeding to the prin- ciple subject matter would only say once more that great care & caution will be indispensible to success and should you at any time feel it to be important to have counsel & advice as to the course to be pur- sued you will be very careful to confer with those whom you can trust with entire safety. The information in my possession & which I shall communicate has been secured principally from an individual now in the State Prison who has been for some time & very intimately connected with an association of counterfeiters, most of whom resided in the County of Berkshire & vicinity. I have no doubt of the worth of the leading facts stated. The grand difficulty will be to get at the facts in such a manner as to birng the guilty to punishment & break up the head quarters of their operations. Some of the individuals named I doubt not you are acquainted with & from this circumstance will be the better able to proceed in the best manner to get hold of what you may wish. I will first mention the principle persons named to me as concerned in this operation for making and circulating counterfeit Bank Bills. Uriah Griffin of Middletown, Ct. is the principle engraver of the Plates from which the bills are struck. Those plates are Phoenix Bank, Hartford, some of the Boston Banks & Agricultural Bank, Pittsfield. (T ra ns cr ip ti on o f l et te r sh ee t sh ow n op po si te ) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 210 Paper Money • May/June 2010 • Whole No. 267 211 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 211 Paper Money • May/June 2010 • Whole No. 267212 Griffin has disposed of one plate on the Agricultural Bank to John Castle of Austerlitz -- lives about half a mile west of Col. Whit- woods in West Stockbridge. The person giving this information says he has seen it & Castle has struck a good many bills from it. Says Castle is himself an engraver but is not so expert at the business as Griffin. A man by the name of George Sacket of Green River engraves some. William Brown & Scrivner Stevens of Alford, he says & signs most of the bills. Others concerned more or less in pass- ing the money are William Merritt who lives in the North part of Gt. Barrington near where Andrews former- ly kept tavern -- married a Bradley. Says Merritt has a good deal of it & he could get it of him almost any time if he wanted. Charles Stewart of Austerlitz -- Sidney Baukman of Green River, Herman & Ransom Davies of Alford, John Bason & Loring W. Smith of Simsbury, Granville Jones of Alford, Orange Stevens of Alford, brother of Scrivner Stevens who signs the bills, Chris- topher Potter of North Adams. Elijah Hewitt formerly of Adams, Daniel Jones of South Adams, Sweell Harrt of Adams. Ismail Wilson does not know where he now lives, Milo Griffin of Egremont, Harry Barns prints off a good deal of Counterfeit money for horses, is a great gambler. Says Merritt probably prints off as much of this money as any man is a whole- sale dealer. The Head Quarters of this Association and where the press, plates &c. are kept, the bills struck & signed is the next subject and the most important but there is a grand difficulty attending it & that is to find it. (T ra ns cr ip ti on o f l et te r sh ee t sh ow n op po si te ) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 212 Paper Money • May/June 2010 • Whole No. 267 213 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 213 Paper Money • May/June 2010 • Whole No. 267214 The person who gives this inforation says he has often been to the place & offers if permitted to be carried bound by any officer of the Government & to go to the place & expose all its secrets &c. The Governor says he has no authority to permit him thus to be taken out though the object is an important one. He has attempted to examine the place & location as correctly as he can as he says, and this is his account of it. There is a cave in the North West part of Alford situated about one & a half miles as near as he can judge, South East from what is called the Culver Farms in West Stockbridge. It is in the Woods, woods con- tain 2 or 3 hundred acres & a marshy tract. Cave not a great ways from the center but rather on the West. It is in a ledge of Rocks and its entrance so secured that no person unacquainted with this fact would suspect there was any such thing as a cave. Entrance to it narrow & obscure. Says he can describe no particular trace in Rock by which the place could be found, although he could go directly to it. This Cave is called by those who are acquainted with it The Devil’s Den. He says there is a sort of cave above ground called by the same name which is generally known & is often visited at or near the South end of th Ledge but is a different thing altogether. In the cave first spoken of are kept the plates, dies -- presses -- bills &c. This is never visited excepting in the night time and all the business done there is done in the night. Particular care is taken to keep the place and entrance secret. He says that Nelson Jones of Alford & Marquis J. Whipple of Alford know where this cave is although they do not belong to the Company, but as their friends & relations do, he does not believe they can be made to tell where it is. This is all the information of much moment which I can give you. Now it is of great consequence if possible to find this Den or Cave. If this can be done, the gang will be broken up for a time at least. As you are familiarly acquainted with almost every part of Alford particularly the description given, you may be able to get a clue to it although I think it doubtful. (over) (T ra ns cr ip ti on o f l et te r sh ee t sh ow n op po si te ) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 214 Paper Money • May/June 2010 • Whole No. 267 215 *May/June 2010 Paper Money 8/9/11 11:19 AM Page 215 Paper Money • May/June 2010 • Whole No. 267216 The steps to be taken in this whole business must be left to your sound dis- cretion. Whatever course you muy pursue to find this cave, let it be such that no suspicion shall be exerted from any quarter that you have any knowledge of such a place. Use every proper expedient to get into your possession counterfeit bills which have been passed by these gentry & which can be traced to them & proven upon them. The means you can yourself devise & adopt. In case you should feel at a loss as to the best course to be followed in this business or any part of it, I do not know that there can be any objection to consulting Mr. Cyrus Williams & T. S. Pomeroy of Stockbridge. They both are connected with the Bank and will I doubt not be hearty & true. You can if you please show them my letter & consult with them, but, further than this I should hardly think you had better go. Any rea- sonable expense which may be concerned by you this operation I mentioned in my last will be prompt in paying. I have not the least Doubt as they gave me that assurance & requested me to write to you to that effect. Please write me occasionally & inform how you get along & if I can give you any further infor- mation I shall be happy to do it. Any inquiries I will promptly answer. Yours sincerely, J. Curtis PA ID 12 1/2 M r. D aniel B . Fenn StockbridgeMass. -- (T ra ns cr ip ti on o f l et te r sh ee t sh ow n op po si te ) *May/June 2010 Paper Money 8/9/11 11:19 AM Page 216 Paper Money • May/June 2010 • Whole No. 267 217 v *May/June 2010 Paper Money 8/9/11 11:19 AM Page 217 Paper Money • May/June 2010 • Whole No. 267218 Black Registers of the Treasury THERE ARE ENGRAVINGS OF RURAL BLACKSperforming menial labor on some 19th century obsolete bank notes. There are no images of African-Americans on U.S. federal paper money. There are, however, signatures of black Americans on U.S. federal paper money. Current federal paper money has two signatures those of the Secretary of the Treasury and the Treasurer of the United States. Prior to the terms of Secretary William G. McAdoo and Treasurer John Burke, federal paper money had the signa- ture of the Register of the Treasury and the Treasurer. The Register is an official appointment by the President. Of the 17 who held office between 1862-1925, four were African- Americans. A fifth was appointed, however he did not sign paper money. The first black Register of the Treasury was Blanche K. Bruce who was born in slavery on March 1, 1841, in Farmville, VA. He worked in the field and as a printer’s apprentice, nev- ertheless the owner’s son tutored Bruce. When the Civil War began Bruce escaped to Missouri and tried to join the Union Army, but was not allowed. He attended Oberlin College, taught school, and organized the first school for blacks. After the Civil War he held political positions in Mississippi and in 1874 was elected to the U.S. Senate. Bruce held the office of Register of the Treasury from 1881-1885 and again from 1897-1898. Judson W. Lyons, who was born in Augusta, GA, held the office of Register from 1898-1906, longer than the other three mentioned here. The signature of Judson W. Lyons is found on United States Notes, Silver Certificates, National Bank Notes, Treasury (Coin) Notes and Gold Certificates. The term of William T. Vernon as Register, 1906- 1911, followed that of Lyons. Vernon was born in Missouri in 1871. Educated at the Lincoln Institute in Jefferson City, MO, and Wilberforce University in Ohio, he became a minister of the American Methodist Episcopal Church. His appoint- ments as Register came from Presidents Teddy Roosevelt and Taft. James C. Napier, who became a friend of Booker T. Washington, was born in Nashville in 1845. After living in Ohio he returned to Nashville and was active in politics. After receiving a law degree from Howard University in Washington, DC, he again returned to Nashville before receiving his appointment from President Taft. Napier was the founder of the One Cent (Citizens) Savings Bank. Louis B. Toomer was appointed in 1953 by President Eisenhower but did not sign paper money. Since the term of Treasurer Georgia Neese Clark, it has been the custom to appoint a female to this position. In 1977 Azie Taylor Morton, an African-American was appointed as the 36th U.S. Treasurer. She held the office until 1981. Ms Morton is from Dale, Texas. She attended Huston-Tillotson College in Austin and returned to become the assistant to the president. The names of Blanche K. Bruce, Judson W. Lyons, William T. Vernon and James C. Napier are found on some of America’s scarcest bank notes. Reprinted with permission from Coin World, February 24, 2003 A Primer for Col lec tors BY GENE HESSLER THE BUCK Starts Here Blanche K. Bruce, Register of the Treasury 1881-1885, 1897-1898. Signatures of Register Blanche K. Bruce and Treasurer A.U. Wyman on a $1000 Silver Certificate. v *May/June 2010 Paper Money 8/9/11 11:20 AM Page 218 Paper Money • May/June 2010 • Whole No. 267 219 Washington, D.C.--October 5.--Uncle Sam is tohave some brand new paper money. The Post Office department has just finished giving him a new set of postage stamps. Now the Treasury Department announces work is being done at the Bureau of Engraving and Printing on new designs for United States Notes, Silver Certificates and Federal Reserve Notes up to the denominations of $100. Eventually the principle of the new designs will be extended to all other paper money. Two purposes are being served in issuing “new styles” of currency. the first, of course is to make it still more difficult for counterfeiting. The other purpose to be served is to aid banks in sorting various classes of cur- rency. The new currency will have backs of uniform design for each denomination. They are of a conventional character, consisting largely of scroll work without pic- tures, and will be printed in green. The faces of the notes will carry portraits having a denominational significance. The $1 notes of each class--Silver Certificates, United States Notes and Federal Reserve Notes -- will have the portrait of Washington, the $5 bill will carry the picture of Lincoln, $10 bills Hamilton, $20 bills that of Cleveland, $50 bills that of Grant, and $100 bills that of Franklin. The overprinting of the seal and the numbers of the Silver Certificate will be blue, on the United States Notes green (sic) and on the Federal Reserve Notes red (sic). The motive in making the portrait on each class of bills the same for the same denomination is in order that the public may thereby become familiar with [the] denominational value of the portrait so that a raised note may be more readily detected. -- McClusky (ND) Gazette, Oct. 5, 1923 New Dollar Bill Is All “Dolled UP” Meet a strange looking and kind of stuck-up dollar bill, but don’t be alarmed, but take it, as it is worth face value in gold. The latest creation of the U.S. Treasure (sic) has made its debut in our circulation. It’s a lalapaloola, all dolled up in a new drew (sic) of blue and black, the fig- ures standing out like sharp silhouettes against a clear background. The seal is in blue, as is also a large numeral “1.” Also the word “ONE” is spelled in full and scattered over the new certificate. There’s not so much banjo work on the new certificate, but the clear, sharp engrav- ing stands out in bold relief, and it’s simply different. So if you run into one of these welcome little strangers, remove your hat and give it a fitting salute and salaam -- and then go out and spend it. -- Adams (ND) Standard, Jan. 11, 1924 v Banker’s Family Retains Examples of Rare Raymondville NBN THIS IS A PICTURE OFthe elusive Raymondville, Texas, charter #12789, National Bank Note compliments of the cashier's family that only a few people have seen. Three are in their hands which are two Type 2 $20s and makes this a note that will be missing from almost all Texas national collections. --Adrian Waller v Those New Notes: “Money Tales of Yesteryear” compiled by Forrest Daniel Uncle Sam’s Paper Money Will Be Given Brand New Dress and Color *May/June 2010 Paper Money 8/9/11 11:20 AM Page 219 Paper Money • May/June 2010 • Whole No. 267220 Dear Fellow Paper Money Lovers: It is difficult for me to grasp that while I am writing this in early March, you will be receiving this issue of Paper Money and perhaps reading this in anticipation of that most marvelous of paper money events, Memphis. Our fine editor, Fred Reed, has spent the majority of his working life, if not his entire life, “living in the future.” By that I mean, writing and creating intellectual property that needs to be delivered by a deadline, but arrive fresh and timely and relevant in the hands of a recipient days, weeks and months into the un-predictable world we will be living in in June of 2010. Far be it from me to prognosticate. In the paper money world, June means Memphis, and there are two kinds of people – those who go and those who don’t. I know, based on the fairly consistent attendance at our breakfast, an unfortunate fact. For whatever reason, only a fraction of our membership chooses to or is able to attend the Memphis International Paper Money Show. Since our members are spread mostly all over the United States, but to some extent all over the world, it is understandable that Memphis is not “right around the corner.” Since it takes place in the summer, and over a weekend there is always going to be a portion of our membership that is busy enjoying their summer vacation or other pursuits. Usually [but not always] Memphis is on Father’s Day weekend, and this is also possibly a deterrent. And not everybody thinks hundred degree heat is a reason to trav- el. So I accept that there may be some reasoned decliners. But, if you have never been to Memphis, but if you have thought about it, and wavered, and then said “naaaaah,” this col- umn is pointed squarely at you. Because for paper money folks, Memphis is Mecca. Dreamed up decades ago by the Memphis Coin Club, nur- tured for years by Mike Crabb and his dedicated team in its river- side hotel before moving to the Cook Convention Center, this convention is the stuff of legends and memories. The great notes have surfaced and sold here; the great collectors have congregated and traded here; the great auctions have been held here’ but mostly, Memphis is the largest event where people interested in paper money congregate to enjoy the hobby and the highly socia- ble social circle it creates. As I have written in this column before, and is pretty well known in the circles of convention attendees, this huge annual event has changed stewards. Beginning with the upcoming 2010 show, Lyn Knight and his team have assumed command. The “new boss,” paraphrasing The Who, ain’t necessarily the “same as the old boss,” but Lyn is a Memphis institution, and brings a strong level of personal sentiment about the show and its tradi- tions to his ownership of it, and it seems to me that the IPMS could not have found a better next leader to help honor its past and protect its future. All in a spirit true to its core. As in any transition of this kind, the new team brings a fresh set of eyes to the event, new or additional ideas, and resources. Over the last several months, Lyn has planned and implemented several definite plans for changes intended to benefit the show’s patrons, be they true-blue collectors, the tried and true dealers, or the venturesome public. This year, the formal activities will begin a day earlier than in the past, starting Wednesday, with a “pay-to attend” grading workshop during the day and a charity poker tournament that evening. The exhibit process, always smoothly orchestrated by Mart Delger, is being ramped up and not only will play “center stage” on the bourse floor, but several new entrants have accepted invitations to display. The synergies of the stamp, paper money and other engraved instruments will be exposed, not only in the exhibits already expected, but in partici- pation by ASDA members on the bourse floor. And the postcard show, also now owned by Lyn, will be set up in a room across the hall for all who also love that hobby. However, there is a core set of activities that anybody con- templating this event should know will not change. In addition to the Educational Forum that Lyn is adding, there are meetings on every possible topic of collector interest under the sun. Some are formal and held on a scheduled, well-publicized basis. Some are a little less formal, some spur of the moment, some held by “appointment only” in a hotel room or suite. But with or without a “Secret Raccoon Handshake,” you are there to talk about National Bank Notes, or Obsolete Currency, or Fractionals or what have you. There will be, as always, a public auction. This year, by virtue of previous commitment and for reasons too lengthy to detail here, Heritage will hold the auction, and early rumors are that it will be a somewhat different experience. The emphasis is going to be on higher quality notes, and the company has gar- nered a substantially larger world consignment for the collector than this firm typically sells. And while little detail is available, the firm may be selling, as a group lot, the most expensive currency lot ever sold at public auction. In 2011, auction rights will under- standably and rightfully revert to Lyn for the duration. Virtually every conceivable dealer in paper and related ephemera makes it to Memphis, and Lyn’s plans for the bourse floor layout can only enhance the experience, for merchants and clientele alike. We the SPMC will again host our traditional Friday morning breakfast at the Crowne Plaza, just across from the Marriott, as well as our traditional membership meeting and 7th Annual SPMC Authors Forum. Memphis will again prove the charming host she always is. Whether you head for A and R for a fried baloney sandwich and sweet potato pie, or have a “Call A Cab” on Beale Street, or listen to Richard Johnston play the blues on an electric cigar box and broom handle guitar, there is never a lack of activities to enjoy in Memphis. So, if you are a paper money collector and Memphis is not on your schedule but it is “doable,” I urge you to consider or re- consider. The stars are all in alignment for what has always been a terrific event to take on additional appeal to every possible collec- tor. If you’ve never been, in my book it is a “bucket list” item. And if you do it a first time, odds are it won’t be the last time. Damon Runyon, a newspaperman likely most famous for his short stories about New York City in the days of Prohibition, some of which were made into Broadway shows and successful movies, had several great observations, but one in particular comes to mind. He said, “If you stand on the corner of Broadway and 42nd Street for long enough, you will meet everybody in the world.” Well, I would like to believe that if you go to Memphis, eventually you will meet everybody in the paper money world. Here’s hoping I meet you. The President’s Column Mark v *May/June 2010 Paper Money 8/9/11 11:20 AM Page 220 Paper Money • May/June 2010 • Whole No. 267 221 WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page opposite -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. (Please Print) ______________________________ ___________________________________ ___________________________________ ___________________________________ ONLY $20.50 / YEAR ! ! ! (wow) $$ money mart Paper Money will accept classified advertising on a basis of 15¢ per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbrevia- tions, figure combinations and initials count as separate words. No checking copies. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribu- tion to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues = only $20.50! HERE’S YOUR OPPORTUNITY!!! YOUR WORD AD could appear right here in each issue of Paper Money. You could advertise your duplicates inexpensively, or advertise your Want List for only $20.50 for three lines for an entire year. Don’t wait. (PM) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with descrip- tion (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (270) CHINA CURRENCY BUYER!, 1853 thrugh 1956. Singles to Packs. $2 to $2,000 notes wanted. All singles, groups, packs & accumulations needed. Package securely with your best price or just ship for our FAST Top Offer! Send to G. Rush Numi, P.O. Box 470605, San Francisco, CA 94147. Contact Goldrushnumi@aol.com. Full-Time Numismatists since 1985. Member ANA, FUN, IBNS, FSNC, SPMC (273) NJ TURNPIKE TOLL SCRIP from the 1950s-80s. Looking for any info on, and also looking to buy same. Send info or contact: PO Box 1203, Jackson, NJ 08527 or fivedollarguy@optonline.net Jamie Yakes, LM338 (A) WILDCAT BANKS OF WAYNE COUNTY (Ohio), 80 pages, $30 postpaid. Raymond E. Leisy, 450 N. Bever St., Wooster, Ohio 44691 (A) WRITING A NUMISMATIC BOOK? I can help you with all facets of bring- ing your manuscript to publication. Proven track record for 40 years. See PM N/D 2008 p. 472 for details. Contact Fred Reed fred@spmc.org (270) You are cordially invited to attend Our FREE 7th Annual SPMC Authors Forum Friday June 18th from 12-2 p.m. Ballrooms 3 & 4 in the Marriott Hotel *prospective speakers contact fred@spmc.org *May/June 2010 Paper Money 8/9/11 11:20 AM Page 221 Paper Money • May/June 2010 • Whole No. 267222 SEVERAL YEARS AGO YOU PUBLISHED A NUMBER OFscrip items that were apparent frauds, promising portions ofprize funds or estates for modest investments, the 19th Centuryequivalent of the Nigerian minister email scams of today. I con- tributed an article on one such scam “Additional Scam Artists Leave Paper Trails, ’Twas Ever Thus,” which you published in the March/April 2003 issue of Paper Money. I have acquired another document that may or may not be evi- dence of yet another 19th Century estate scam. This time we have a radically different format: the appearance is that of an obsolete bank note. The size is 3” by 615⁄16”. The treasurer’s signature was on the engraving plate, not handwritten. (John C. Smith, with the bottom of the “J” missing--that really inspires confidence, doesn’t it?) I warn you not to trust my color-blind eyes, but the color scheme of the “note” reminds me of the one I see when I look at a faded 1864 Keatinge and Ball Confederate note. The face is a sickly orange (or should that be pink?). The severely faded (and thus only partially readable) back has purple print and designs on an off-white background. Why do I say that this may or may not have been a scam? If each “owner” exchanged $1 for a 1/350,000th share of the $350,000 “pot,” the transaction obviously was legitimate though not very exciting. There must have been something more than “swapping money” going on here. Perhaps the “prize” in the title indicates that this was a raffle and that the $1 investment entitled the bearer to one chance at a substantial portion of the $350,000 “pot.” The illegible passages on the back will forever remain a mystery unless another of the handbills turns up, but my cynical nature leads me to suspect: (1) that there was no estate; or (2) that if there were an extate, it was gosssly overvalued at $350,000; or (3) that if there were an estate accurately valued at $350,000, the organizers of the “fund” held no legal claim to it. I hope that the foregoing somehow advances the cause of numismatic edification. v Was this another 19th century scam? Most Likely! by Barney W. Hill This Mt. Florence Prize Estate and Cash Fund “One Dollar” handbill, dated August 1871, looks like a 19th Century bank note. It was apparently printed by “Murry” NYC. *May/June 2010 Paper Money 8/9/11 11:20 AM Page 222 Paper Money • May/June 2010 • Whole No. 267 223 *May/June 2010 Paper Money 8/9/11 11:20 AM Page 223 Paper Money • May/June 2010 • Whole No. 267224 IN THE PAST PAPER MONEY HAS PUBLISHEDarticles on smileage chits by Forrest Daniel. These card- board tickets were purchased to create a fund for U.S. military entertainment at the end of World War I. Relatives bought the chits and sent them to their troops stationed at various military posts. The soldiers could use them to purchase admission tickets at post theaters. SPMC member Donald J. Kolkman acquired some of the tickets and related literature, which he sent to Paper Money some time ago. “Enclosed are photo copies of the envelope and letter that was sent out by the Military Entertainment Council regarding the raising of funds for the Smileage pro- gram,” Kolkman wrote. He also enclosed a photocopy of the first issue of Smileage News outlining the program, and samples of three different Smileage coupon books, and a variety of tickets. The correspondence was a January 12, 1918, fund raising letter and envelope that was sent out by the Military Entertainment Council regarding the raising of funds for the Smileage program. According to the letter, the program was administered by the War Department’s Commission on Training Camp Activities. Raymond B. Fosdick was chair- man. The Secretary of War appointed the Military Entertainment Council. Chairman was James Couzens, and council members included F.W. Woolworth, W.R. Dawes and other distinguished military and civilian members. “At the meeting of the War Finance Committee of the Military Entertainment Council,” the letter reads, “held in Washington, December 12th [1917], the Committee outlined a plan for a campaign to procure funds to finance the [Military] Entertainment Service of the military camps.” This letter was penned by Harold Braddock, director of the Military Entertainment Council. In it he appointed Earl Utterback, Iowa City, IA fund raising campaign director for his local area. “We sincerely trust that nothing will prevent you from accepting this position,” Braddock wrote. The ball was clearly in Utterback’s court. “If for any reason you can not serve in this capacity, The Council counts upon you to find someone to serve in your place,” his commission continued. Kolkman had also obtained a copy of The Smileage News (masthead shown above) which outlined the program. The four-page, folded sheet was printed on 11 by 17-inch paper. Articles on the front page outlined plans to raise a million dol- lars to support the project. “It some time ago became evident that $1,000,000 will be required to finance the work of co-ordination and the opera- tion of the Liberty Theatres, Liberty Tents and Auditoriums already erected in the cantonments and larger encampments, and being provided for other places where soldiers and sailors will be stationed,” an article titled “Citizens Throughout America Enthusiastic: Nation-wide Response to the Call for Leadership and Service” read. Another article titled “All Plans Perfected for Great Campaign” told about the prominent individuals supporting the effort at the various national and local levels. A third page one article “Council of Master Minds for Military Entertainment” described the 11 individuals Secretary of War Newton D. Baker had tasked to organize and direct the pro- gram nationally. Included were capitalists, manufacturers, bankers, ministers, politicans and other civic leaders. A brief notice on the front page sought to differentiate the work of the Military Entertainment Service Committee from that provided by the Young Men’s Christian Assoc. and More on Smileage Chits by Fred Reed *May/June 2010 Paper Money 8/9/11 11:20 AM Page 224 Do color ads in Paper Money Really work? Just Did! . . . Gotcha Isn’t it time that YOU advertised in Paper Money? Get noticed Advertise in Paper Money 225Paper Money • May/June 2010 • Whole No. 267 *May/June 2010 Paper Money 8/9/11 11:20 AM Page 225 Knights of Columbus. “The work of the Y.M.C.A. and the K. of C. in caring for the comfort as well as the spiritual welfare of the soldiers is being magnificently done,” the account read. “But handling a circuit of 48 theatres calls for the skilled man- agement of experienced theatrical men,” thus the appointment of entertainment professionals to manage the program. Several photographs in the publication showed soldiers at “Liberty Shows” and facilities such as a 3,000-seat Liberty Theatre. Other articles describe the Smileage coupons and the types of entertainment being offered. The purpose of the program was to boost troop morale. “An Army recruited by draft includes the best young men of the nation. The off hours of these young men are the loneliest hours of their camp life. If those hours are to be pleasantly and healthfully filled there must be provided not only places to write and read, but performances of the grade to which the men are accustomed at home,” the narrative read. However off-post entertainments even when available were out of soldiers’ price range. “Therefore this Council originated a type of book of tickets that members of the sol- dier’s family and his freinds may send to him at the front.” Broadway-type shows, vaudeville shows, and amateur productions involving the soldiers and sailors themselves toured the 48 Liberty Theatres on a rotational basis. “A proper amount of clean, wholesome entertainment contributes largely to the happiness of our soliders in camps and is fundamental in supplementing their physical and mili- tary training,” Secretary of War Baker noted. He called mak- ing such entertainment readily available for all soldiers “one of the important duties of the War Commission for Training Camp Activities.” A campaign kicked off public awareness beginning on Monday, January 28, 1918. Local groups operating under a Campaign Director sold smileage books to members of their communities to raise funds for troop entertainment. In New York City Mayor John Francis Hylan issued a proclamation supporting the campaign, the New York Times reported January 30, 1918. Other local officials did likewise. Smileage books were folders of coupons stamps or tickets, each coupon valued at five cents and bearing the signature of Newton D. Baker, Secretary of War. Books were sold in two sizes, one containing 20 stamps for $1, and a larger one with 100 stamps for $5. These books were disgned to be purchased by friends or relations at home and to be sent to soldiers in camps for use in lieu of money in purchasing admission to camp theaters. “There is an erroneous impression that camp entertain- ments are free,” said an official. According to Marc Klaw, president of one of the foremost Chatauqua Circuits who accepted the challenge of managing the program, “That is not so, although the price will be kept as low as possible to make them self-sustaining. The profit of the theaters, if there is any, goes right back to be used for the benefit of the camps in the various branches of the War Department Commission on Training Camp Activities.” The tickets were only good inside the military camps, not for amusements off-post in nearly towns. “The main objective is to make the camp entertainment better than the competing shows outside, and to make it exceedingly easy for the soldier to get admission to those entertainments,” organizers said. Several varieties of Smileage booklets and tickets have been noted by collectors. A Liberty Theatres $1 Smileage Book, owned by Kolkman, has a blue cover and orange five cent tickets. Its cover has a smiling clown, and reads: “Military Entertainment Service // National Army Cantonments // The coupons in this book will be accepted in purchase of Theatre Tickets at any Liberty Theatre in the National Army Cantonments.” Room is left for the name of the purchaser and the recipient. The legend on the ticket reads: “Liberty Theatres // Good for 5 cents in exchange for Theater Tickets at National Army Cantonments,” and bears the signature of the Secretary of War. The folder and tickets were printed by Globe Ticket Co., Philadelphia. Kolkman’s orange Smileage Book, also printed by Globe Paper Money • May/June 2010 • Whole No. 267226 *May/June 2010 Paper Money 8/9/11 11:20 AM Page 226 Paper Money • May/June 2010 • Whole No. 267 227 A variety of Smileage Books and tickets exist. Readers knowing of additional varieties can report them to Paper Money for publication in the future. (Illustrations courtesy of Donald J. Kolkman) Ticket Co., with an “A” prefix serial number, has a doughboy picture, and the legend: “Military Entertainment Service // The coupons in this book will be accepted in purchase of admission and seat tickets at Liberty Theatres, Liberty Tents and Auditorius under the management of the Commission on Training Camp Activities in National Army Cantonments and National Guard Camps. // Good for duration of War.” Pink tickets, also with an “A” prefix read: “Good for 5 cents in exchange for tickets as specified on cover,” and Baker’s signa- ture. Tickets are also overprinted with an image of a dough- boy, once again in red ink. Another of Kolkman’s Smileage books and tickets, yellow with a “D” prefix serial number and doughboy picture, have similar legends to the “A” prefix book/tickets. Slimilar tickets with “SAMPLE” instead of a serial number exist. According to Kolkman “C” books/tickets exist in (“I believe it was) green,” he said. “This would lead me to believe that a “B” ser- ial number booklet also exists,” the collector added. Like any currency substitute, we’d be happy to publish additional reports in future issues. v *May/June 2010 Paper Money 8/9/11 11:20 AM Page 227 Paper Money • May/June 2010 • Whole No. 267228 Can anybody suggest a plausible reason for these red numerals? Hello Fred, I have a question on a Second Issue 25-cent Fractional Note, KL-3237, Fr-1284. Enclosed are some color photocopies of this 25-cent note with lightly embossed red numbers, “71089” at upper and lower right and “9” at upper and lower left. The num- bers appear to have been printed before the sheet was cut and also seem to be the same number on the note on the left. I have never seen nor heard of any Fractional note with red serial type numbers on the reverse. I would be much appreciative if you could solicit information from the membership regarding this note. Thanks, -- Scott Claxton Editor’s note: Scott, I sent copies of your item to several Fractional Currency collectors. “Interesting. I’ve never seen anything like this before,” fractional specialist Rick Melamed said. “From BEP records, 2nd issue plate numbers end at #345; this is most likely added after the note was printed,” he conjec- tured. Benny Bolin, David Treter, and Jerry Fochtman con- curred with the opinion that the numbers were added post-pro- duction. v *May/June 2010 Paper Money 8/9/11 11:20 AM Page 228 Paper Money • May/June 2010 • Whole No. 267 229 *May/June 2010 Paper Money 8/9/11 11:20 AM Page 229 Paper Money • May/June 2010 • Whole No. 267230 C OLLECTORS OF LARGE CENTS HAVE THEIR “Booby Head” varieties (Newcomb 5-7 and 11-15 of 1839) -- and alas, we who collect New Jersey obsolete paper money have our “Booby Hand” varieties, too. Unfortunately there are many more of the latter than the former. Modern falsely-signed New Jersey obsolete scrip remainders ‘Booby Hand,’ Faker of Our History Examples of ‘Booby Hand’s’ handiwork plentiful by David D. Gladfelter An early version of this article appeared in Jerseyana, reprinted with permis- sion of the publisher, New Jersey Exonumia Society. *May/June 2010 Paper Money 8/9/11 11:20 AM Page 230 Paper Money • May/June 2010 • Whole No. 267 231 7ESTTH3TREETs.EW9ORK.9s  sWWWSTACKSCOM 0/"OXs7OLFEBORO.(sAUCTION STACKSCOM Stack’s is Pleased to Announce a Landmark Paper Currency Auction Event e 52 Collection: Part I and other Selected Consignments To be sold June 29th, 2010 in New York City The 52 Collection is a spectacular specialized private collection of over 350 American Obsolete Currency Proofs, Essays, Engraver’s Proof Advertising Sheets, Die Proofs, and Vignettes from the late 18th century to the 1890s, from virtually all the major imprints. Studiously formed across two decades, the collection is replete with numerous color proofs, unique vignettes, and superbly styled pieces of the highest caliber and pedigree. Proofs from a unique archive compiled by Cyrus Durand will be published and sold for the rst time in this sale. Also included are important Colonial American notes and imprints, United States Federal Proofs and related items. Consigned alongside e 52 Collection are Proofs from the 1782 Bank of North America series,1791 First Bank of the United States, a 1741 Massachusetts proof, a stunning Revere “Independence”Sword in Hand note, important Federal Proofs and Essays with many Ex Dr. Glenn Jackson, First Charter Nationals, and a choice type collection of Colonial American currency. is event will be landmark oering, and a highlight of Stack’s 75th Anniversary year. e sale will be conducted at our auction gallery in New York City. Lot viewing will be in our New York gallery and at our table at the Memphis Paper Money Show June 17-19, 2010. Please call us toll-free today to order the extensively illustrated and researched sale catalogue with some of the most beautiful and rare American Currency notes to the cross the auction block in the past decade. Extensively Illustrated Full Color Catalogue — $20 *May/June 2010 Paper Money 8/9/11 11:20 AM Page 231 Paper Money • May/June 2010 • Whole No. 267232 “Booby Hand” was someone who formed, or had access to, a large collec- tion of New Jersey scrip remainders sometime around 1950. This collector must have abhorred looking at a blank signature line, or maybe he (or she) couldn’t resist the temptation to try to make up new varieties. So this collector took a mod- ern day fountain pen filled with blue-gray ink and wrote phonied-up signatures on the remainders, then added red numbers for good measure. The false signatures should have fooled nobody, since real signatures dur- ing the obsolete era were almost invariably written in brown ink. But they did deceive George W. Wait and Dorothy Budd Bartle, who listed and even illustrated some of these fake varieties in their 1976 catalog of New Jersey obsolete currency, New Jersey’s Money. I’ve written about these false signatures in Paper Money and elsewhere, but they continue to fool present-day cataloguers and collectors. So now is the time to expose this fraud again in a more substantial way. I began collecting New Jersey paper money in the 1990s. It wasn’t too long before I ran across some of “Booby Hand’s” concoctions. It was exciting at first because I thought I was finding unlisted varieties. But soon I began to notice something strange about them – they didn’t look right. For one thing, the begin- nings of the signatures were faint and then became bold – the converse of what one would expect if the signer were dipping the pen in an old fashioned ink well prior to writing his name. Also, the initials and the surnames, as well as the red numerals, had a similar tendency to flow together. Some of the names, such as “M. Hill” on a note from Mullica Hill, looked phony enough to invite a closer look. Some of the signatures, such as “H. Hall & Co.” on the Winslow remainders, are over punch-out cancellations, put there by the printer precisely for the purpose of preventing the notes from being signed. And notice the similarity of appearance of the names “Hall” and “Hill.” It doesn’t take a handwriting expert to look at these signatures and to conclude that they’re written by the same person! Now, I do not and cannot claim to be a handwriting expert, or even a paper money expert. But I do have two good eyes. No question that it’s very important for a numismatist to use his or her eyes. Not only to grade the speci- mens, but to observe such things as die varieties (on metallic pieces) and printing details (on paper items). And to notice when a specimen doesn’t look right, for whatever reason, and if the reason makes sense, to conclude that the specimen isn’t right. Take two examples, purportedly issued in the 1860s by “M. Hill” of Mullica Hill and “D. Whitney” of Perth Amboy, illustrated herein. Both are unlisted in George W. Wait’s standard reference, New Jersey’s Money, although the former is of the same type as Wait-1996, issued by J.W. Manning. I have no ques- tion as to the genuineness of the notes themselves. It is only the signatures and other writing on them that I question. Just the name itself, “M. Hill,” on a note from the town of Mullica Hill sounds phony enough to invite a closer look. The ink of the “M. Hill” signature is light blue, rather than the standard 1860s dark brown. Rather than alternating from heavy to faint, as signatures written with pens dipped into 1860s inkwells Two of the suspicious scrip: Bridgeton, N.J. signed “E. Dennis” (left below), and Ewingville, N.J. signed “David Warren” (below right). *May/June 2010 Paper Money 8/9/11 11:20 AM Page 232 Paper Money • May/June 2010 • Whole No. 267 233 tend to do, this one has that even-flow appearance of having been made with a 1950s fountain pen. The note number, “24,” is written in red, and the numerals flow together -- points to note, although not of themselves unusual. The “D. Whitney” signature is in gray ink, the number “201” again in red. The first initial is faint, but the rest of the name bold -- the reverse of what one would expect if the signer were dipping the pen in an inkwell and beginning the signature with fresh ink. Rather this signature has the appearance of having been written with a fountain pen that had to be moved on the paper to get the ink flowing. Why would the ink not be flowing if the signer had just written his name 200 times? The downward stroke of the final letter “y” of the signature is too short, as if the signer had run out of room to write. In the 1860s most notes were signed on the sheet and then cut apart. On a genuine signature, the lower part of the “y” would have been cut off when the notes were cut apart, and either lost in the margin waste or appearing at the top of the note below it. Notice again how the numerals “01” flow together. Now, go through the Wait catalog and look caefully at the signatures on some of the illustrated notes, and compare them with those on the two specimens From top: Three of the suspect notes, signed “Allan Denton” (Wait unlist- ed); “H. Hall & Co.” (Wait unlisted), and “I.S. Dunham” (Wait supple- ment). *May/June 2010 Paper Money 8/9/11 11:20 AM Page 233 Paper Money • May/June 2010 • Whole No. 267234 just described. In particular, I direct your attention to the signatures on the illus- trations of W-2465 (“H. Hall & Co.”), W-397 (“Moore & Bro.”), W-476 (“C.C. Williams”), and W-1085 (“C. Cottrell”). The specimen used to illustrated W-2465 is a proof or specimen note, with two punch-out cancellations (POCs) showing on the signature line. The POCs were put there by the printer of the notes precisely for the purpose of pre- venting them from being signed. Yet this one was signed, and the name “Hall” on this note bears a remarkable similarity of appearance to the name “Hill” on the Mullica Hill note. A genuine signature? The plot thickens. The “Moore & Bro.” note is number “204”; compare this number with the “24” on the Mullica Hill note and with the “201” on the “D. Whitney” note. See how the numerals flow together in all three examples? Compare the initial “M” of “Moore” with the intial “M” of “M. Hill;” notice the elaborate flourish, appearing almost as a script “JN.” as on the Wait-397 note. The “C”s of “C. Cottrell” on the W-1085 illustration flow together as do the “C”s on “C.C. Williams.” On the date, compare the “M” of “May” with the other “M”s in this group, and the numeral “24” with the same numeral on the Mullica Hill note. It’s difficult to pinpoint exactly when “Booby Hand’s” notes began to appear on the market because before 1990, scrip lots tended to be grouped anony- mously by the auction houses. In fact, I found no record of them anywhere prior to publication of the Wait catalog. Jacob Spiro’s obsolete paper collection, sold in 1955 by Hans M. F. Schulman, was grouped into 13 lots by counties, each averag- ing 70 to 110 pieces, with Lot 1215 (all Burlington County) containing 155! The scrip was simply described as “private issues.” None were evidently in the collec- tion of former Princeton dealer William Pullen, auctioned in 1977 by NASCA, then the premier U. S. paper money firm; but again, most of the “private scrip” in that collection was only identified as such, by town. There were several “Boobies” in the New Jersey section of the T. James Clarke sale by NASCA in 1978, and one (the “David Warren” .05) in the Ernest Littrell collection sold by the same firm in 1979. None were in the extensive Abner Reed collection sold by NASCA in 1983. A few isolated “Boobies” were in Trial Listing of “Booby Hand” Fake Scrip Wait # Town Name Illustrated? 1 Allentown “Albert Clark” No 107 Bordentown Corporation of Bordentown, “B.C.Williams” and “D.D. Trice,” Burgesses No 119 Bridgeton “C. Dennis” No 161 Bridgeton Cumberland Bank, “C. Curdy,” Pres., “Jack Temple,” Cash., “W. Willis,” Payee No 395 Cedarville “Moore & Bros.” Yes 475 Dennis Creek “C. C. Williams” Yes 575 Ewingville “David Warren” No 1085 Marshallville “C. Cottrell” Yes 1277 Mountainville “R. L. Clinton” Yes Unl. Mullica Hill “M. Hill” No 1927A Pennington “N. Murphy” No 1996 Perth Amboy “D. Whitney” No Supp. Plainfield “I.S. Dunham” No 2308 Trenton “C. Cummings & Bro.” Yes Unl. Trenton “Allen Denton” No Unl. Tuckahoe Bridg “Chas. Powell” No 2455 Waterford Waterford Glass Works, “H. Harris, Pres.” No 2465 Winslow “H. Hall & Co.” Yes *May/June 2010 Paper Money 8/9/11 11:20 AM Page 234 Paper Money • May/June 2010 • Whole No. 267 235 the Dupont collection sales by Henry Christensen and R.M. Smythe in 1993, and a set of the “C. Cottrell” notes of Marshallville appeared in the 1996 sale of the Western Reserve Historical Society collection by Spink America. The recent series of sales of the Herb and Martha Schingoethe collection by Smythe has been fairly plagued with them. This “mystery collector’s” defacement activities were extensive. Shown is a trial list of the Booby Hand notes that I have identified to date. I invite collectors who have unlisted notes of this ilk to publish them. You will not find “C. Dennis” mentioned in a history of Bridgeton nor “C. Cummings” in a history of Trenton. Neither of them ever existed except as figments of “Booby Hand’s” imagination, and neither did any of the other listed I suspect that “Mr. Hill” and “D. Whitney”signatures and the serial numbers on these New Jersey scrip notes in my collection were applied by a collector to remainder notes much later than the time the notes were purportedly “issued” during the Civil War. *May/June 2010 Paper Money 8/9/11 11:20 AM Page 235 Paper Money • May/June 2010 • Whole No. 267236 names. The scrip with their names on it is worth no more than unsigned remain- ders, and probably less. If historical association is your reason for collecting, avoid the Boobies. “Booby Hand’s” identity is presently unknown, but it’s possible that a pedigree search of this group of fake-signature specimens, and possibly additional ones to be discovered in the future, may ultimately reveal the person responsible. These notes and others like them should be listed for what they are -- remainders with suspect signatures. I suspect that “C.C. Williams” and “C. Cottrell”signatures on these New Jersey scrip notes illustrated in George Wait’s standard catalog New Jersey Money were applied by a col- lector to remainder notes much later than the time the notes were pur- portedly “issued.” *May/June 2010 Paper Money 8/9/11 11:20 AM Page 236 Paper Money • May/June 2010 • Whole No. 267 237 References Wright, John D. The Cent Book 1816-1839. Bloomington, MN: Litho Technical Services, 1992. Wait, George W. (ed.) and Dorothy Budd Bartle. New Jersey’s Money. Newark, NJ: The Newark Museum and Society of Paper Money Collectors, 1976. Gladfelter, David D. “‘Booby Hand,’ Faker of Our History,” Jerseyana, issue #128, January- March, 2008. Gladfelter, David D. “Suspect signatures on New Jersey obsolete paper money.” Paper Money, vol. 33 no. 134 (Jul/Aug 1994). v Compare the signatures and the serial number on the purported Moore & Bros. notes, both shown in the Wait catalog, with the other examples shown. What do you think? Do you agree with me that they were added later? *May/June 2010 Paper Money 8/9/11 11:21 AM Page 237 Paper Money • May/June 2010 • Whole No. 267238 The Editor’s Notebook Fred L. Reed III fred@spmc.org Passion & Patience IT IS KIND OF SAD SEEING SO MANY GREAT,longstanding collections being dispersed. The John Fordcollection, Stacks and their numismatic library, the Schingoethe hoard, Chet Krause’s Wisconsin collection and numerous others. It’s good for the hobby though, as previous- ly unavailable items (in very strong hands for years) appear on the market. In that way new and old collectors get a crack at owning some of the great rarities. The alternative of donating these collections to museums or selling them privately, is not good for the hobby as it squirrels notes away from existing and potential collectors, reducing the pot of collectible notes. My serious collecting of paper money began about 35 years ago. In a relatively short period of time I found where the really rare notes I wanted to pursue were located; mostly in museums or serious, long-time collections. For years I tracked any of these notes that entered the market but rarely had an opportunity to buy as they usually were offered to other collectors before I ever got a chance. But I did pick up a few notes along the way. When my first major competitor dispersed his collection, it went to a dealer. From there it went to several others who cherry picked the good notes, leaving a single ragged example for me. Meanwhile a new competitor had surfaced. He was a coin dealer who acquired several rare notes. He was not serious about collecting though and soon sold his notes to another more serious competitor; another dealer. This guy beat me out of a couple of the greatest rarities in existence when hold- ers of the notes, after inquiring whether I was interested, turned around and offered the notes to him. I felt bad about those but learned a valuable lesson. Don’t assume anything about people. The Schingoethes then came on the scene buying every- thing they didn’t have. Dealers rounded up notes and offered what they found to the couple first. The Schingoethes bought entire state collections. Price was no object so they got to see nearly everything that came to market first. My last competi- tor finally offered his extensive collection to the couple, who took the notes they didn’t have. By now all the notes I wanted were in their hands. They had always indicated that their col- lection would eventually be auctioned so competing collectors would get a second chance. That finally happened when R.M. Smythe began a series of auctions to disperse their holdings. That took several years. Every sale catalog was devoured, looking for notes I was sure the couple had. Sale after sale did not include any of the notes I wanted. I began to wonder whether they had been sold privately or traded off without my knowledge. And then finally, in sale number 17; there they were! I bid in the sale and bought a couple of the notes but let others go. After 35 years I had finally fulfilled my collecting passion. Good thing I was patient. v Rest in Peace ONE OF THE UNFORTUNATE OBLIGATIONS OFbeing your Editor is noting the passing of our senior members as Time takes its inevitable toll on human flesh. This chore is doubly difficult when the person passing to his great reward is a colleague and friend of many years standing. It’s unusual that we note the passing of a member in this column of our journal, but it is precisely because Robert H. Lloyd was my friend and eager fellow collector for nearly 35 years that I want to lift his praises here. Bob died October 20, 2009. He had lived a very full life of 103 years. Lloyd was SPMC Honorary Life Member #14 and shared his knowledge in dozens of excellent articles published in this journal. Mr. Lloyd’s accomplishments may be unknown to a majority of our members, many of whom were born AFTER Bob flourished mightily in the infancy of our paper money collecting hobby. He joined the American Numismatic Association as a 20-year-old in 1927, a full generation before SPMC was born. By 1930 the eager young collector had been elected to the ANA Board of Governors, and later helped organize several ANA conventions. In that early period of our hobby, paper money was a stepchild of numismatics, but ener- getic currency aficianados such as Mr. Lloyd were undeterred to discover its secrets and broadcast its joys. Mr. Lloyd authored more than 40 articles for The Numismatist, collabo- rated with Lee Hewitt and William P. Donlon on the pioneer- ing Hewitt-Donlon paper money catalogs, and penned addi- tional U.S. currency articles for Hewitt’s Numismatic Scrapbook and Wayte Raymond’s Coin Collector’s Journal. I first “met” Bob in the 1970s when he kindly responded to an article I had written at Coin World on Eastman Business College currency. Bob’s father, Morris, had been a graduate of the school, and the junior Lloyd had inherited a great many mementoes and papers from his dad’s educational pursuits at the institution. We quickly became correspondence buddies. Over the years we exchanged letters many, many times, and Bob generously shared a goodly number of personal items, including his dad’s letters, ledgers and exercise books used at the school with me to add to my growing Eastman collection. Both of us were from upstate New York. Bob was from Buffalo and I was from Syracuse. We found we had a great deal in common although a generation apart. Over time, our correspondence broadened to include other topics, and over the years Mr. Lloyd entrusted to me many papers, photos, documents, memoranda, publications, even inventories of pur- chases from luminaries George H. Blake and D.C. Wismer. In our next issue, when I can collect my thoughts, I’ll pre- sent a fuller tribute. For now, farewell good friend. RIP. v It occurs to me... Steve Whitfield *May/June 2010 Paper Money 8/9/11 11:21 AM Page 238 DO YOU COLLECT FISCAL PAPER? Join the American Society of Check Collectors http://members.aol.com/asccinfo or write to Lyman Hensley, 473 East Elm St., Sycamore, IL 60178. Dues are $13 per year for US residents, $17 for Canadian and Mexican residents, and $23 for those in foreign locations. Paper Money • May/June 2010 • Whole No. 267 239 Buying & Selling Quality Collector Currency • Colonial & Continental Currency • Fractional Currency • Confederate & Southern States Currency • Confederate Bonds • Large Size & Small Size Currency Always BUYING All of the Above Call or Ship for Best Offer Free Pricelist Available Upon Request James Polis 4501 Connecticut Avenue NW Suite 306 Washington, DC 20008 (202) 363-6650 Fax: (202) 363-4712 E-mail: Jpolis7935@aol.com Member: SPMC, FCCB, ANA Are you planning a show? Want to have a paper money meeting? Would you like to have free copies of Paper Money magazine to distribute to attendees? Contact Judith Murphy P.O. Box 24056, Winston-Salem, NC 27114 oldpaper@yadtel.net DBR Currency www.DBRCurrency.com P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 Fax: 858-679-75-5 •Large size type notes Especially FRNs and FRBNs •Large star Notes •1928 $500s and $1000s • National Bank Notes •Easy to sort database By date added to Web site By Friedberg number All or part of any serial # •Insightful market commentary •Enlarge and magnify images You are invited to visit our web page www.kyzivatcurrency.com For the past 8 years we have offered a good selection of conservatively graded, reasonably priced currency for the collector All notes are imaged for your review National Bank NoteS LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM KYZIVAT (708) 784-0974 P.O. Box 451 Western Sprints, IL 60558 E-mail tkyzivat@kyzivatcurrency.com *May/June 2010 Paper Money 8/9/11 11:21 AM Page 239 Paper Money • May/June 2010 • Whole No. 267240 *May/June 2010 Paper Money 8/9/11 11:21 AM Page 240 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site pcdaonline.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. Or Visit Our Web Site At: www.pcdaonline.com James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 May/June alternate cover 8/10/11 5:48 AM Page 3 MEMPHIS Memphis Signature® Currency Auction | In conjunction with the Memphis International Paper Money Show June 17 – 19, 2010 | Online at HA.com for your bidding pleasure. Featured Hightlights Receive a free copy of a catalog from any Heritage category. Register online at HA.com/SPMC18564 or call 866-835-3243 and mention reference SPMC18564. Call our Currency Consignor Hotline today at 800-872-6467 ext. 1001 to discuss the optimal venue for your currency. We look forward to serving you. S IGNATURE® AUCT ION Bid now at HA.com TN licenses: Heritage Numismatic Auctions, Inc.: 5231; TN Auctioneer license: Sam Foose 6093; Robert Korver 6439; Chris Dykstra 6463. This auction subject to a 15% buyer’s premium. WORLD HEADQUARTERS | 3500 MAPLE AVE | DALLAS, TEXAS 75219 | 800-872-6467 Annual Sales Exceed $600 Million | 500,000+ Registered Online Bidder-Members DALL AS | BE VERLY HILL S | NE W YORK | PARIS | GENE VA Serial Number 1 Flagstaff, AZ- $5 1902 Plain Back Fr. 606 First NB Ch.# (P)11120 PMG Choice Uncirculated 64 EPQ Canada DC-13a 1898 $1 Inward One’s Series A to D PMG Choice Very Fine 35 EPQ Serial Number 1 Cleves, OH- $10 1902 Red Seal Fr. 613 Hamilton County NB Ch.# (M)7456 PCGS Very Fine 35 From the Don C. Kelly Collection of Ohio National Bank Notes Massillon, OH- $50 1882 Brown Back Fr. 512 Merchants NB Ch.# (M)4286 PCGS Very Fine 25 From the Don C. Kelly Collection of Ohio National Bank Notes Serial Number 1 Burns, OR $5 1902 Red Seal Fr. 587 First NB Ch.# (P)6295 May/June alternate cover 8/10/11 5:48 AM Page 4