Paper Money - Vol. XLIX, No. 4 - Whole No. 268 - July - August 2010

PAPER MONEY OFFICIAL JOURNAL OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. XLIX, NO. 4, WHOLE NO. 268 WWW.SPMC.ORG JULY/AUGUST 2010 N.M. Graver shoots Cairo, Egypt, money changing kiosk July-August cover 8/10/11 5:50 AM Page 1 Get Noticed! Wanted Your Full Color Advertising Here Inquire fred@spmc.org July-August cover 8/10/11 5:50 AM Page 2 Paper Money • July/August 2010 • Whole No. 268 241 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 Dover, DE 19901. 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. 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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. 4 Whole No. 268 July/August 2010 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 118162, Carrollton, TX 75011 Visit the SPMC web site: www.spmc.org FEATURES National Bank Note Redemption Errors . . . . . . . . . . . . . . . . . . . 241 By Lee Lofthus Paper Column: How a Rare Laramie, Wyoming NBN Was Saved 268 By Peter Huntoon Circulars Detail Regs for Handling Wartime Hawaii Notes . . . . . 276 The Central American Steam Navigation Company . . . . . . . . . . 289 By Joaquin Gil del Real The Buck Starts Here: Celebrating the Smile of Mona Lisa . . . . . 297 By Gene Hessler Robert H. Lloyd Pioneered a Long Trail for Collectors to Follow . 298 By Fred Reed 4th Issue Seal Plate Numbers on Lincoln Fractional Notes . . . . . 302 By Rick Melamed Here Are a Few Paper Money Design Ideas . . . . . . . . . . . . . . . 313 By Wayne Pearson SOCIETY NEWS Information and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .242 New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 SPMC Official Announcement: Grants Available . . . . . . . . . . . . . . . . . . .273 A Note From Our Treasurer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .273 Volunteers Wanted, Here’s Your Chance! . . . . . . . . . . . . . . . . . . . . . . . . .296 President’s Column . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300 By Mark Anderson Money Mart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .301 Out and About with SPMC Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . .317 What’s on Steve’s Mind Today? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318 By Steve Whitfield The Editor’s Notebook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .318 Paper Money On our cover, photographic historian and image collector, SPMC member N.M. Graver is also a lensman. He shares his interesting view of a money changing kiosk in Cairo, Egypt. “Those dollar bills must have been 10 feet wide,” he noted. Other currency is replicated in smaller form at right. Readers with U.S. addresses may received one of his elongateds free with SASE at N.M. Graver, 276 Brooklawn Dr., Rochester, NY 14618. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 241 Paper Money • July/August 2010 • Whole No. 268242 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 118162, Carrollton, TX 75011-8162 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. 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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 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 242 Paper Money • July/August 2010 • Whole No. 268 243 "Grooming authors for the next 50 Years" TM Next Year 2011 SPMC Celebrates its 50th Anniversary. As part of the Society’s celebration we are sponsoring an award program for new authors for PAPER MONEY. The last 50 years have introduced many excellent authors to the hobby. We’re now looking for those who will carry the ball in the next half century. FIVE New Author Awards of $100 will be offered for the five best short articles (1200 words or less) by authors new to PAPER MONEY for short articles published here in 2011. Money to fund this program has been donated by a Society member who, himself, enjoys writing for PAPER MONEY. The donor “remembers the special joys of his first published article -- proposing it, researching it, writing it, choosing the illustrations, writing the captions for the illustrations, sending it off, and then seeing it in print.” YOU too can feel this same joy. But don’t wait. Send off your best efforts to the Editor (fred@spmc.org) as soon as possible. Multiple submissions are encouraged. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 243 Paper Money • July/August 2010 • Whole No. 268244 NEW RESEARCH IN TREASURY RECORDS AT THE NATIONALArchives demonstrates that the published “last outstanding circula-tion” data for individual national banks used in standard referencecatalogs is inaccurate and cannot be relied upon as an indicator of rarity. Errors in the massive process required to count and sort tens of millions of pieces of unfit National Bank Notes each year made their way into the Comptroller of the Currency redemption ledgers, thereby rendering the final entries that we now use unreliable. The reference books accurately reflect the ledgers, but the source ledgers themselves are inaccurate. A review of a representative sample of the Comptroller’s National Currency and Bond Ledgers has identified widespread redemption entry errors where certain denominations of National Bank Notes were redeemed in excess of the numbers of notes issued to the bank. Herein called “overredemptions,” these errors mask the true amount of outstanding notes for the banks. One affected bank was The American National Bank of Apache, OK (charter #12120), listed as having only $110 in large size nationals outstanding. Five Series of 1902 notes are reported in Kelly’s current census, including three $20s and two $10s totaling $80. Not only do the Currency and Bond Ledgers show all the $10s issued to the bank as being redeemed, they also include the redemption of an additional 29 $10 notes beyond those were actually issued! The outstanding amount for the Apache bank is clearly in error. The fact is that $10 notes from other banks were erroneously recorded against its account. Similarly, the ledger for The First National Bank of Versailles OH (charter #9336), lists only $20 in Series 1902 notes as still outstanding, but there were 34 overredeemed $10 notes from other banks on its ledger. Obviously the data for the $10s are erroneous, and the $20 final amount outstanding is wrong. A review of the ledgers for other banks reveals that such errors are wide- spread. Overredemption Errors Table 1 lists 60 banks where overredemptions were obvious on the National Bank Note Redemption Errors Research Proves Data on Outstanding Nationals is Unreliable by Lee Lofthus *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 244 Paper Money • July/August 2010 • Whole No. 268 245 Currency and Bond Ledgers. These data are representative, and included in order to illustrate the problem. The scope of the errors was such that any bank with circulation between at least 1914 and 1935 would have been susceptible to misstatement of outstand- ing amounts. Conversely, because the ledgers for these 60 banks contained errant notes from other banks, the ledgers for those unidentified banks are also in error. The conclusion from these findings is that the “out at close” and “large out at close” data reported in the current catalogs as an indicator of rarity are unreliable. This confirms suspicions held by astute collectors and dealers that something was amiss with these data based on the numbers of notes they had observed in the marketplace. Occasionally the clerks in the Comptroller’s Bookkeeping Division made adjustments for egregious cases of overredemptions that they noticed. For example, in 1935, a clerk noticed that the total large size redemptions exceeded the total large notes issued to The Holland National Bank, Holland IN (charter #9090), by $20. As shown on Table 1, the clerk reduced the large size redemp- tions by an arbitrary $600, and increased the small size redemptions to balance the books. That $600 adjustment, minus the $20 overredemption, created the $580 large out amount listed in our catalogs today. But even after the adjust- ment, large size twenties remained overredeemed by $60. The First National Bank of Buena Vista, VA (charter #9890) is another adjustment case. In July 1933, clerks noticed that the large size tens had become overredeemed by $540. To correct the ledger, they made the redemptions equal the issues for the ten dollar notes, and increased small size ten dollar redemptions by $540 to balance the books. Subsequent to that adjustment, $70 in additional large size tens were received for redemption between July 1933 and July 1935, so the final balance for tens was again overredeemed. Sufficient Buena Vista large size $20 notes were still outstanding to offset the overredemptions, so the final large out amount in the reference books is $100, an amount now proven incor- rect. Table 1 indicates that overredemption errors could be large. The ledgers for The White Hall National Bank, IL (charter #7077), and The Farmers and Merchants National Bank of Kaufman, TX (charter #10757), each exhibit overredemptions in excess of $1,400. My research into the Treasury redemption records began as an effort with Peter Huntoon to explain why the current census for The First National Bank of Gardiner, OR (charter #10676), lists 11 large size notes, whereas the Currency and Bond Ledger indicates that all the large notes from the bank were redeemed. Similar all-redeemed situations are found with The Orbisonia National Bank, PA (charter #10335); First National Bank of Kingsville, TX (charter #12968); and Kezar Falls National Bank, ME (charter #9826). Large size notes are reported from all. Obviously all involve erroneous redemption of notes from other banks. In the course of investigating these situations, it became apparent the problem was systemic, and was occurring for at least the last 21 years of the National Bank Note era. There were two fundamental factors that contributed to the overre- demptions: (1) there was tremendous growth in the circulation of National Bank Notes between 1901 and 1915, which more than tripled the nationals in circula- tion; and (2) changes were made to streamline the redemption and bookkeeping process to keep up with that growth. Background on the Redemption Process It is important to explain the process that the Treasury used to redeem National Bank Notes in order to understand how overredemptions occurred. The Comptroller of the Currency is most often cited as the government office *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 245 Paper Money • July/August 2010 • Whole No. 268246 TABLE 1: BANKS SHOWING LARGE SIZE OVERREDEMPTIONS BY DENOMINATION Large Large Out Notes in State Charter Bank in 1935 Census Overredemption Condition OR 10676 FNB Gardiner $0 11 $1,660 in tens overredeemed. ME 9826 Kezar Falls NB $0 1 $340 in tens overredeemed. TX 12968 FNB Kingsville $0 6 PA 10335 Orbisonia NB $0 3 MD 4191 Pocomoke City NB $10 1 $620 in twenties overredeemed. OK 9963 FNB El Dorado $20 0 $60 in tens overredeemed. OH 9336 FNB Versailles $20 0 $340 in tens overredeemed. NY 8794 FNB Islip $30 1 $80 in twenties overredeemed, WV 12483 Citizens NB of Elkins $40 4 $130 in fives overredeemed. NY 10109 FNB Central Square $40 1 $160 in tens overredeemed. IL 12000 FNB Coulterville $60 15 5th Ed has $105 out. Ledger has $60 out. Both $5 & $10 notes overredeemed. MI 12084 FNB Lawton $60 6 Fives overredeemed, four $5 in census. ND 8265 FNB Binford $90 2 $420 in twenties overredeemed. VA 9890 FNB Buena Vista $100 1 $610 in tens overredeemed. In 1933, clerks moved $540 in large redemptions to small size so large tens redeemed would equal issued. An additional $70 in large tens were later redeemed. OK 12120 Am NB Apache $110 5 $290 in tens overredeemed. CO 7637 FNB Fowler $140 2 $100 in tens overredeemed. TX 7306 FNB of Shamrock $150 0 One $100 note overredeemed. OK 9944 FNB Hydro $170 1 $10 in tens overredeemed. NY 12018 FNB Lisbon $210 2 $30 in tens overredeemed. MD 6144 FNB Mount Savage $220 12 $420 in tens overredeemed. TX 11163 FNB Lamesa $230 1 $160 in tens overredeemed ME 9609 NB of Gardiner $245 2 $210 in tens overredeemed. LA 11795 FNB Ruston $250 2 $250 in tens overredeemed. NY 10569 Edwards NB $250 11 $120 in tens overredeemed. PA 11849 FNB Sipesville $250 1 $20 in twenties overredeemed. OK 8336 FNB Rush Springs $260 1 $40 in twenties overredeemed. NY 9990 Central Valley NB $260 5 $220 in twenties overredeemed. NY 9990 Central Valley NB $260 5 $220 in twenties overredeemed. TX 8249 Citizens NB Higgins $275 2 $105 in tens overredeemed. (1 $10 half-note was redeemed, thus $105 out). NJ 8582 FNB Mays Landing $290 2 $10 in tens overredeemed. TX 9126 FNB Lockney $310 1 $290 in tens overredeemed, clerk adj in 1935 TN 7225 FNB of LaFollette $340 1 $40 in tens overredeemed. MD 7064 FNB North East $390 1 $40 in twenties overredeemed. NJ 10248 Ventnor City NB $480 3 $140 in twenties overredeemed. VA 7093 Alexandria NB $530 11 $850 in tens overredeemed. IN 9090 Holland NB $580 3 Total large redeemed exceeded issued by $20. In Aug 1935, closeout clerk adjusted the large redemption totals downward by $600 and increased small size redemptions to balance. Large twenties remained overredeemed by $60. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 246 Paper Money • July/August 2010 • Whole No. 268 247 responsible for national banking operations, but the actual process for the redemption of National Bank Notes involved numerous offices in several Treasury Department bureaus. The currency issue and redemption process was fairly static by 1910. The Bureau of Engraving and Printing (BEP) printed the sheets of new national bank currency and delivered the sheets to the Comptroller of the Currency’s Issue Division. The Issue Division managed the vault for the currency received from the BEP, and prepared the packages of new currency to be sent by regis- tered mail to the banks. Worn currency sent in by banks was received by the Treasurer of the United States. Notes other than nationals were handled by the Treasurer’s Division of Redemption. In contrast, worn National Bank Notes, and later Federal Reserve Bank Notes and Federal Reserve Notes, were handled by the National Bank Redemption Agency, a separate division within the Office of the Treasurer. The duties of the National Bank Redemption Agency were to “receive all National Bank Notes presented for redemption, and to redeem the same; to assort them by banks of issue, to forward the notes fit for circulation to the banks that issued them, and to deliver the notes unfit for circulation to the Comptroller MA 11388 Peoples Southbridge $660 9 $215 in fives overredeemed. NY 11059 FNB Woodridge $660 5 $200 in tens overredeemed. MN 6803 FNB Aitkin $715 7 $280 in tens overredeemed. OK 10332 Farmers NB Cushing $720 3 $70 in tens overredeemed. TX 10757 F&M NB Kaufman $820 6 $1,480 in tens overredeemed. WV 8345 Fayetteville County $855 6 $225 in fives overredeemed. VA 11554 FNB Yorktown $900 7 Bank issued only 1902PB $5. Total Large overredeemed by $10. In March 35, clerk adjusted large redemptions to show $900 out, increased small size redemptions to balance. TX 5897 Graham NB $1,040 6 $730 in tens overredeemed. IN 9159 FNB Winslow $1,120 5 $390 in tens overredeemed. IL 8347 FNB Bridgeport $1,140 3 $80 in fives overredeemed. PA 7363 Parnassus NB $1,140 2 $160 in tens overredeemed. NJ 8627 FNB& TC Kearny $1,170 13 $100 in tens overredeemed. NJ 6960 Bernardsville NB $1,390 22 $60 in twenties overredeemed. NJ 11620 FNB Roebling $1,440 9 One $20 note overredeemed. NJ 4182 Central NB Freehold $1,525 2 Ledger shows twenties overredeemed. NY 5648 FNB Caledonia $1,530 11 $680 in tens overredeemed. PA 7349 New Cumberland NB $1,640 11 $80 in tens overredeemed. MD 8381 Second NB Towson $1,810 6 $135 in fives overredeemed. CO 9907 FNB Englewood $1,830 8 $200 in tens overredeemed. NY 8920 Citizens NB Oneonta $1,940 16 $520 in twenties overredeemed. IL 7077 White Hall NB $2,230 15 $1,430 in tens overredeemed. MN 7080 Peoples Long Prairie $2,250 7 One $10 large note overredeemed PA 5727 Gold Std Marienville $2,390 11 One $50 note overredeemed. TX 8771 FNB Pecos $2,635 15 $660 in tens overredeemed. PA 7139 Emaus NB $3,230 11 Both $5 & $10 notes overredeemed. Clerk adjusted balance to small size. Sources: Comptroller of the Currency, National Currency and Bond Ledgers, 1863-1935; Census Data from Don C. Kelly and James M. Kelly, CD Supp to 5th Ed, Version.3.0, 2007 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 247 Paper Money • July/August 2010 • Whole No. 268248 of the Currency for destruction and replacement with new notes.” The Redemption Agency also managed the 5% redemption fund for national banks which contained a revolving fund provided by each bank for the redemp- tion of its notes. The Comptroller’s Redemption Division, sepa- rate from that of the Treasurer’s National Bank Redemption Agency, was charged with “the receipt and destruction of worn-out and mutilated notes; also with the safe-keeping, in a vault for the purpose, of notes sent to the office for destruction until they have accumulated in convenient amount.” Upon destruction of worn notes, the Redemption Division sent a certificate of that fact to the Issue Division, through which the worn notes were “replaced by new notes, put up from the stock on hand and transmitted to the proper bank.” The Redemption Division performed its own counts and pre- pared Destruction Certificates for each bank for unfit notes destroyed. The notes were destroyed in the pres- ence of individuals representing the Secretary of the Treasury, Comptroller of the Currency, Office of the Treasurer, and the national banks. The several offices all maintained a variety of ledgers and books to account for their activities. After 1911, the Comptroller’s Bookkeeping Division main- tained central ledgers to show all notes received, on hand, issued, and redeemed. The Bookkeeping Division also periodically recorded totals for notes issued, redeemed, and outstanding. Other Comptroller divi- sions handled the bonds backing the notes in circulation, the organization of new national banks, and managed the affairs of insolvent banks. The Public Debt Service maintained control accounts for U.S. securities, the dis- tinctive paper used for securities and currency, and per- formed aggregate accounting for U.S. liabilities, including outstanding and redeemed currency. This information reveals that the redemption process was a complex, multi-step task involving a number of Treasury offices with different roles and responsibilities. The involvement of so many offices was an intentional division of responsibility, with commensurate checks and balances to safeguard the hundreds of millions of dollars in currency being handled. The Growth in National Bank Note Circulation and Redemption A major factor contributing to redemption problems was the huge growth in the national banking system after 1900. The Act of March 14, 1900, known as the Gold Standard Act, permitted rural banks to be chartered with as little as $25,000 in capital. The number of national banks began to increase significantly. Don Kelly notes that in “the five years before the act only 257 national banks were organized. During the five years following the act, 2,300 banks were orga- nized.” The circulation of National Bank Notes expanded as these new banks opened; but, more importantly, the bookkeeping needed to track their issues expanded disproportionately to their actual contribution to the money supply owing simply to their large numbers. TABLE 2: NATIONAL BANK NOTES IN CIRCULATION AND REDEEMED Year Circulation Amount Redemption Amount 1875 $354,238,291 $155,520,880 1880 $339,530,923 $61,585,676 1885 $327,022,283 $150,209,129 1890 $196,248,499 $70,256,947 1895 $207,860,409 $86,709,133 1900 $260,293,746 $96,982,608 1905 $468,285,475 $308,298,760 1910 $707,919,327 $502,498,994 1915 $943,887,520 $782,633,567 1920 $722,934,617 $425,741,623 1921 $729,728,404 $517,041,511 1922 $748,385,215 $624,341,433 1925 $763,321,196 $554,778,135 1930 $696,598,982 $730,636,001 1935 $769,095,645 $516,863,896 Notes: (1) Source: Annual Report of the Secretary of the Treasury for 1931, Table 37; 1935 data from Comptroller of the Currency Annual Report for FY 1935, p. 53 and Table 28. (2) the 1930 Redemption Amount is high due to the mass redemption and replacement of large size national bank notes. (3) Chart includes years 1921 and 1922 in order to illustrate large redemption volumes. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 248 Paper Money • July/August 2010 • Whole No. 268 249 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 249 Passage of the Aldrich-Vreeland Act in 1908 ratcheted up the pressure on the bookkeepers immensely. Also known as The Emergency Currency Act, this legislation was designed to introduce elasticity into the National Bank Note supply during periods of monetary stringency. The outbreak of World War I triggered the emergency currency issues backed by “other securities,” and new National Bank Notes flooded into the economy. At the peak, $1.1 billion were outstanding by the end of October, 1914. Thereafter, the total circulation of National Bank Notes hovered between $700 and $800 million annually until 1932, when it again began to rise toward $1 billion. Table 2 illustrates the growth in circulation and redemption of nationals from 1875 to the close of the national era in 1935. The reality was that National Bank Note circulation more than tripled from 1900 to 1914, impacting every facet of Treasury operations, and then it got much worse. Treasury Offices Expand to Meet the Circulation Demands The Treasury response to the growing national currency workload can best be measured by tracking the growth of the National Bank Redemption Agency and the Comptroller of the Currency’s office. See the employment data on Table 3. National Bank Note redemptions in 1895 totaled $86,709,133. At that time, the National Bank Redemption Agency had a staff of 48, and the Comptroller had a total staff of 90, including 13 employees in the Redemption Division. By 1903, the volume of redemptions had more than doubled. Staff was being detailed from the BEP to help the Treasurer’s office meet the growing workload. The Redemption Agency volume hit a high of $24 million per month, and individual notes counted were up 16 percent from the prior year, requiring a detail of 18 staff from the BEP. Comptroller William Ridgely’s report to Congress noted that the receiving, assorting, counting, and redemption work of his own Redemption Division had increased 45% in three years. In the ten years from 1895 to 1905, the volume of redemptions tripled, and the National Bank Redemption Agency had a permanent staff of 94, plus 19 detailees, and the Comptroller’s staff was approaching 110. Treasurer Charles E. Treat reported to Congress in 1905 that the work of the Redemption Agency was in arrears, over $2.3 million in five-dollar National Bank Notes were unsorted, and BEP staff was detailed to assist with the backlog. The budget requests from the Comptroller and the Treasurer over the next five years echoed a familiar refrain: work volumes were straining the offices, and more note counters were needed. In 1910, the Treasurer, now Lee McClung, reported the unsorted nationals on hand exceeded $10 million, again mostly $5 notes. Paper Money • July/August 2010 • Whole No. 268250 The Comptroller’s Currency and Bond ledgers indicate all the large notes from The First National Bank of Gardiner, Oregon (charter #10676) were redeemed and destroyed. A dozen known notes indicate something was amiss with the redemption records. (Photo courtesy of Heritage/CAA) *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 250 Paper Money • July/August 2010 • Whole No. 268 251 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 251 National bank notes in circulation increased 55% between 1905 and 1911. Redemption volume was up 79% during the same period. Staffing at the National Bank Redemption Agency had more than doubled since 1905, increasing to 219 positions in 1911. In January 1911, $64.8 million in national currency were redeemed. Over 80 new currency counters were hired in 1910 and 1911, but work was still in arrears as reported to Congress. McClung’s 1911 report noted the unsorted nationals now exceeded $14 million. The workload per person was immense. In 1911, over 57 million National Bank Notes were redeemed by the National Bank Redemption Agency, up from 52.7 million notes in 1910. These were processed by 158 “expert coun- ters.” However, because the notes were not handled just once (they went through what equated to at least four separate counts in the Redemption Agency alone) the actual workload was roughly equivalent to handling over 250 million notes a year. The staff counting the notes included senior “expert counters,” earning $1,000 per year, and junior counters earning $700 or $800 per year, depending on whether they were a “first, second, or third” assorters. The volume increases impacted not only the National Bank Redemption Agency, it also impacted the Comptroller of the Currency. By 1911 the Comptroller’s staff had increased to 124 positions, up from 110 in 1905. If there is any doubt about the post-1900 workload impact on the Treasury offices, simply look at the redemption column in Table 2, and compare the years from 1900 to 1915. The 1910-1911 Accountability and Efficiency Changes Faced with enormous increas- es in the number of National Bank Notes being handled, Comptroller of the Currency Lawrence O. Murray undertook several steps in 1910 and 1911 to reorganize his bureau. His objective was to improve accountabili- ty for the unissued currency sheets, and also to improve efficiency. In September 1910, several major changes were made to the prac- tices of the Issue Division. The layout of the currency vault was rearranged to group the sheets by geographic divisions rather than charter number order. They eliminated four counts and examinations of new currency sheets received from the BEP, and discontinued the ledgers in which Treasury sheet numbers were record- ed in favor of loose sheets which were to be bound subsequently. Paper Money • July/August 2010 • Whole No. 268252 TABLE 3: NATIONAL BANK REDEMPTION AGENCY AND COMPTROLLER OF THE CURRENCY STAFFING FOR SELECTED YEARS National Bank Comptroller Comptroller Redemption of the Currency of the Currency Agency Redemption Div. All Other Divs Year Staffing Staffing Staffing 1890 56 14 87 1895 48 13 77 1900 59 13 78 1905 106 13 97 1910 165 28 96 1915 215 43 107 1921 480 43 147 1924 338 82 149 1925 314 57 147 1928 207 35 133 1930 196 44 152 1935 197 34 133 1937 60 20 108 Notes: (1) Source: Estimates of Appropriations, Treasury Department for the years 1890 to 1922; the President’s Budget for years 1923 to 1937. (2) Staff numbers are requested amounts. Positions enacted or filled could vary slightly. (3) in 1905, NBRA number includes 12 BEP detailees (4) in 1930, the number for the Comptroller's Redemption Division includes 10 temporary staff to assist with high redemption volume due to changeover to Series 1929 small size notes. (5) 1930 Comptroller All Other includes 21 temps due to Series 1929 changeover (6) in 1937 the above offices were still handling Federal Reserve notes and Federal Reserve bank notes. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 252 In 1911 Murray engaged the accounting firm of Arthur Young & Company to examine the bookkeeping processes used in the accounting for National Bank Notes and to make recommendations for improvements. Based on the firm’s report, Murray made several changes to the organization of the Comptroller’s office, and to the methods used to process and record the issue and redemption of National Bank Notes. Murray created a new Bookkeeping Division to maintain comprehensive, centralized ledgers of the note-related transactions. He eliminated the keeping of decentralized and duplicate ledgers across the other divisions, particularly ledgers maintained by the Issue Division. The centralized ledger sheets consolidated the records of bond transactions, new currency received from the BEP, the issue records from the Issue Division, and the notes redeemed by the Redemption Division. It was at this time that the tracking of redeemed notes against closed banks was discontinued, explaining the familiar entries in the Kelly and Hickman- Oakes references that say “Out in 1910.” Because banks had deposited lawful money to cover their redemptions, the liability for the notes remaining in circula- tion was now that of the Treasury, so there was no need for the tedious redemp- tion bookkeeping for closed banks. Similar changes followed in 1915 for banks in liquidation. For security and accountability purposes, the Bookkeeping Division han- dled no actual currency at all, either new notes or redemptions. It maintained the Currency and Bond Ledgers, which are the source of the note issue and outstand- ing information used in the Van Belkum, Hickman-Oakes, and Kelly references, entirely through the receipt of sort and count “schedules” prepared by the other divisions. Between July and October 1911, several duplicate record books main- tained by the Redemption Division were discontinued, and most importantly, new pre-printed forms by “sort group,” with the banks arranged alphabetically within the group, were developed to replace old hand written pen and ink forms. While somewhat subtle, it warrants close notice that the sort forms were arranged alpha- betically, and charter number was only one of several elements necessary to com- pleting the assortment process. Once separated by charter, the notes had to be further assorted into one of more than a hundred “sort groups.” The sort groups arranged banks by their status (open vs. closed/liquidating), then alphabetically by town and bank title, within a rough geographical area. Simply sorting notes by the correct charter number alone was not sufficient to guarantee accurate redemp- tion against the correct bank in such an elaborate sorting process. The same sort groups were used by the Issue Division, where new notes were delivered to 2,500 to 3,000 banks at a time on a rotational basis by sort groups. 253Paper Money • July/August 2010 • Whole No. 268 The $40 Large Outstanding amount shown in the reference books for Citizens National Bank of Elkins (charter #12483) is an error. Five dollar notes totaling $130 from other banks were recorded against the Elkins ledger. Nonetheless, notes from this West Virginia charter remain very scarce. (Photo courtesy of Jason Cobb) *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 253 Paper Money • July/August 2010 • Whole No. 268254 The 1913-1914 Changes The Federal Reserve Act, passed in December 1913, created the now- familiar twelve Federal Reserve districts, and overhauled the banking laws to pre- vent a repeat of the banking problems exposed by the Panic of 1907. The Comptroller’s office added a Federal Reserve Issue and Redemption Division, and the National Bank Redemption Agency was assigned the work of redeeming the two new types of notes in order to accommodate the new Federal Reserve Notes and Federal Reserve Bank Notes. This added hugely to the workload of the agency. The twelve Federal Reserve banks gradually took on responsibilities for currency redemption, including the cancellation and remittance of National Bank Notes for redemption prior to sending the notes to the National Bank Redemption Agency. By 1920, the work at the Federal Reserve banks would become significant to the overredemption story. At some point in 1914, and completely unrelated to the Arthur Young recommendations, the Bookkeeping Division in the Comptroller’s office discon- tinued, as unnecessary, certain record keeping checks that served to highlight when the redemptions for a bank exceeded the notes issued by it. As a result, from 1914 onward, it became less likely that a hurried clerk would notice when redeemed notes were being recorded against the wrong bank in the Currency and Bond Ledgers. The 1920-1921 Redemption Problems From the end of World War I to 1920, several concurrent trends put tremendous stress on the national banking system and the Treasury offices. By 1920-1921, there were $720 million in National Bank Notes in circulation, and Treasury offices were handling between $300 and $500 million in redemptions. Exacerbating that problem was the enormous work associated with handling of the Federal Reserve Bank Notes and Federal Reserve Notes, another $450 mil- lion per year. Staffing in the National Bank Redemption Agency had more than doubled since 1915, and staffing in the Comptroller’s office increased by forty new hires (see Table 3). Still, Treasurer John Burke expressed his view that the Redemption Agency was “utterly unable to cope unless it is provided with a suffi- cient increase in force. . .” From 1915 to 1920, counting and sorting backlogs existed in either the National Bank Redemption Agency or the Comptroller’s offices, sometimes both. For the period July 1 to July 14, 1920, daily receipts for redemption in the National Bank Redemption Agency averaged $3.2 million dollars a day, with redemption sorting exceeding over $4 million per day on some days. Corrective The ledgers for the First National Bank of Mt. Savage, Maryland, indi- cate all the large size tens were redeemed. In fact, redemptions of tens exceeded tens issued by 42 notes, a classic overredemption con- dition. Fortunately, the ledgers are in error and this superb 1902 Red Seal note survived. (Photo courtesy of Fred Maples) *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 254 action efforts to reduce the backlogs in the National Bank Redemption Agency only served to create backlogs in the Comptroller’s Issue and Bookkeeping divi- sions. All of these backlogs were negatively impacting the banks. By 1920 the officers of the national banks were sending repeated com- plaints to the Treasury about delays in receiving replacement notes for their redeemed unfit notes for which their 5% redemption fund had been charged. The National Bank Redemption Agency was complaining that banks were slow in reimbursing the 5% fund, and that banks were waiting until replacement notes arrived from the Comptroller’s Issue Division before repaying the fund. The banks felt they were not at fault, as their cash flows suffered due to the slow issuance of replacement notes from the Comptroller. Within the government, National Bank Redemption Agency and Public Debt Service officials complained in numerous documents that slow remittances to the 5% fund meant the govern- ment was, in effect, advancing money to the national banks. On June 22, 1920, the National Bank Redemption Agency wrote the Comptroller noting that there were “complaints on the part of some of the national banks concerning delay in the issue of new currency in replacement of unfit notes redeemed and delivered to your office for destruction.” The Agency suggested “If something could be done to expedite the destruction and reissue of such currency, it would not only relieve the banks, but would improve the general situation, so far as the Treasury’s cash position is concerned, as it is difficult to enforce the requirement of law as to prompt reimbursement of the redemption fund in cases where there is delay in supplying the banks with new notes.” The Comptroller, in turn, wrote the Secretary of the Treasury on June 26, 1920, citing the heavy workloads contributing to the backlogs. Despite sympathy within the Redemption Agency toward the banks, Treasurer Frank White, vigilant in regard to both the law and government cash flow, sent a September 1, 1921, directive to all national banks calling their atten- tion to the requirement for prompt reimbursement of the 5% fund “forthwith.” White’s directive included the comment that “some banks, apparently under a misapprehension, withhold their remittances to reimburse the redemption fund until they receive the new notes from the Comptroller of the Currency to replace the notes redeemed and some even go as far as to withhold their remittances until the new notes are actually put into circulation.” The woes within the Treasury offices were compounded by the fact that a significant percentage of the National Bank Notes coming in for redemption were actually fit notes that should have been returned to the banks for continued use in circulation. For decades, the National Bank Redemption Agency segregated fit from unfit notes being redeemed, and ensured that fit notes were promptly sent back to the issuing banks via registered mail. Nine U.S. subtreasury offices around the country assisted in this process by weeding out obviously fit notes from the redemption packages submitted to the Redemption Agency. However, in 1920, Treasury decided to discontinue the subtreasury offices. The abolishment of the subtreasury process was made because those functions were now being performed by the twelve Federal Reserve banks and their branches. By 1921, 90 percent of the redeemed nationals coming into the Redemption Agency were coming from the Federal Reserve banks. The national banks themselves submitted the other 10 percent. Unfortunately, some Federal Reserve banks were alleged to have a general reluctance to sort National Bank Notes, and were making little effort to recirculate fit nationals. On top of that, the Federal Reserve banks were alleged to be using a higher standard for judging “fit” currency than did the National Bank Redemption Agency or the subtreasury banks, and thus the Federal Reserve banks were sending in perfectly usable notes for destruction. The National Banks were noticing the situation and complaining. In February 1922, The Peoples National Bank of Lynchburg, Virginia, wrote 255Paper Money • July/August 2010 • Whole No. 268 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 255 Comptroller of the Currency D. R. Crissinger, saying “Dear Sir: We notice it has been a long time since we have received any returns to us of currency fit for use. At the same time we notice that our circulation is being redeemed very rapidly, and new notes forwarded to us in considerable amounts. It occurs to us that the cost of redemption would be considerably less, both to the department and to our- selves, if notes fit for use were forwarded to us as has been the custom heretofore.” Other bankers sent similar letters. Major 1921 Process Changes Treasury Assistant Secretary Gilbert, in a memo of July 14, 1920, said he had been “thinking a good deal of the work of the National Bank Redemption Agency. It seems to me that a real effort should be made at once to make a fur- ther improvement in the work of the Agency.” Beset with complaints from all parties involved, Gilbert wanted action. Some improvements in sorting were made in late summer 1920, but the changes were not enough. In a January 24, 1921, memo to Robert G. Hand, Commissioner of Accounts and Deposits, Gilbert lamented the large amounts owed the 5% fund and failure of the National Bank Redemption Agency and the Comptroller of the Currency offices to clear up their delays. Gilbert said “The Treasury cannot afford to continue to carry the National Bank Notes unnecessarily. I think that it will be necessary to take the question up actively with the Comptroller of the Currency.” By early 1921, George Barnes, Superintendent of the National Bank Redemption Agency, was developing a sweeping redesign of the redemption sort- ing process. A Washington Evening Star newspaper report on June 15, 1921, said the new process “will replace a system which has been in effect since the establish- ment of the agency in 1875.” The longstanding routine required sorting the notes into nine groups comprised of the five largest city groups based on financial volume plus four geographic areas (East, West, Middle, and South). The notes were then sorted into over a hundred sort groups, loosely by sub-region and by bank status (open vs. closed/liquidating). Within these groupings, the notes were sorted alphabetically by town and then bank name. This process required specialized teams of counters for each sort group, since the pace required that the counters be familiar with the town and bank names. An unfortunate downside to this process was that counters were not easily reassigned within the office to assist when one team was backlogged since a counter needed to be intimately familiar with the banks in the group being sorted. The plan developed by Barnes made charter number the main sorting element so the counters did not have to memorize the regions or towns. The plan was approved and went into effect July 1, 1921. Note that this sorting change also precipitated the March 1924 discontinuance of the use of geographic letters on National Bank Notes. By fall, the Redemption Agency had cut more than a day off its sorting process, and also committed to delivering its redeemed currency schedules to the Issue Division between 11 a.m. and noon each day instead of late each afternoon, permitting the Issue Division to cut a day off its replacement note delivery times. Even after that change, the issue process was still such that “new notes to replace mutilated notes delivered by the Bank Redemption Agency on Monday are not delivered to the Post Office for shipment until Friday morning.” The Issue Division noted a major delay was caused in the process of recording new sheet issuances with the Bookkeeping Division because the two divisions were located so far apart in the Treasury building. The Issue Division was on the 2nd floor in the northwest corner of the building, while Bookkeeping was on the 3rd floor, northeast corner, virtually a city block distant given the size the Treasury building. The remedy was to suggest the bookkeepers be moved adjacent to the Issue Division, cutting up to two days from the process. The Paper Money • July/August 2010 • Whole No. 268256 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 256 Treasurer’s 1921 annual report noted “Under new methods adopted during the last fiscal year the agency is able to expedite the counting and assorting of remit- tances of notes received for redemption so that considerable labor is saved and the time between receipt of notes and their final disposition is materially reduced.” Concurrent with speeding up note deliveries, the Treasury made a major change in late 1921 in order to strengthen the protection against the possible theft of worn currency during the redemption process. In December 1920, $7,400 was taken from a sorting room in the National Bank Redemption agency. In another incident, two $100 nationals from The First National Bank of Georgetown, TX (charter #4294) were presented for redemption with their lower corners cut off, an indication the notes had previously been redeemed by the 257Paper Money • July/August 2010 • Whole No. 268 The National Bank Redemption Agency sorted redeemed notes into groups by bank status, general geo- graphic area, and then alphabetically by town and bank name. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 257 Paper Money • July/August 2010 • Whole No. 268258 National Bank Redemption Agency. In February 1921, Assistant Secretary Gilbert was notified that $1,625 had been received in notes with the lower corners removed, including $250 in tens and twenties from The First National Bank of Gaithersburg MD (charter #3661), and $140 in notes from The Merchants National Bank of Burlington VT (charter #1197). By the end of calendar year 1921, a total of $2,518 in stolen notes had been re-circulated and received for redemption. While these amounts do not seem large in current dollars, or large com- pared to having $700 million in nationals in circulation, it is important to keep in mind the annual salary of an expert counter was a $1,000 a year at this time. A theft of $2,500 or so was major money, and if the process was lax enough to lose $2,500, it could easily be prey to larger losses. Treasury wanted the redemption thefts stopped, and took the major step of requiring all National Bank Notes to be cut in half after sorting by the National Bank Redemption Agency, prior to sending the notes to the Comptroller’s Redemption Division. The change had been internally under consideration since 1920, but had created a fair amount of internal debate between the various offices. As a result, the new procedure was not finalized and approved by the Secretary of the Treasury, the Federal Reserve Board, and the Comptroller of the Currency until November 15, 1921. Effective immediately, the National Bank Redemption Agency was to ensure all National Bank Notes were punch/drill cancelled before sorting (the Federal Reserve banks were already punch cancelling the nationals they sent in), then sorted, and then cut in half vertically before delivery to the Comptroller’s Redemption Division. While this change certainly rendered the notes nearly useless for purposes of someone stealing them, the cancellations and cutting the notes in half caused more work, and would soon loom large in terms of the accuracy of the note redemption process. The Auditing Reports by Walter O. Woods Walter Woods is a name familiar to most paper money collectors because his signature appears on U.S. currency, first as Register of the Treasury, and later as Treasurer of the U.S. Prior to those high offices, Woods was a war loan audi- tor in the Register’s office. His work must have stood out because in 1924 he was asked by the Comptroller of the Currency to perform a review of the bureau’s bookkeeping process and recommend improvements. In a June 26, 1924, report, Woods made a variety of comments and rec- ommendations, and commented favorably on the 1911 accounting improvements made as a result of the Arthur Young work. He also commented on the post-1911 discontinuance of a practice that tracked notes redeemed versus notes issued. He carefully noted the discontinuance was unrelated to the Arthur Young recommen- dations, and stated “While that record was kept the redemptions for any particular bank could not possibly exceed the issues without the fact causing an overdraft and causing an immediate investigation to ascertain the cause of the manifest error.” He noted the record keeping had been a great task and expense, and thus “Some ten years ago that record was discontinued in the interest of economy in clerical expense.” As a result, “As the records now stand an overissue of some bank’s currency might exist and the fact would not be ascertained unless it [the overissue] was so great that it would exceed the whole outstanding issue.” He concluded the old process was better suited to identifying when redemptions exceeded issues and when “unauthorized notes had been redeemed.” In 1926, the Comptroller asked Woods, now a special staff assistant in the Office of the Secretary of the Treasury, to review the practices of the Issue and Redemption divisions. His May 6, 1926, review focused on whether the Issue Division’s vault controls over unissued currency sheets were adequate, and whether the counting and sorting process in the Redemption Division was sound. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 258 Paper Money • July/August 2010 • Whole No. 268 259 Commenting on the redemptions, he noted the verification of redeemed currency was “an extremely monotonous daily task and the temptation to slight the work is, therefore, always present with the money counter.” He again noted bookkeeping problems were possible because there was no longer a demonstration that redemptions for a bank “were no greater than the issues.” The Overredemption Conclusion The Currency and Bond Ledgers, if examined closely, reveal widespread overredemptions. Treasury documents serve to demonstrate how, over time, the sheer volume of notes being redeemed and changing redemption process adopted between 1910 and 1921 had unintended consequences. A February 16, 1921, let- ter from Secretary of the Treasury D. F. Houston noted that the Comptroller’s office caught 42,805 errors in National Bank Redemption Agency assortments during calendar year 1920. While that number sounds large, the Redemption Agency handled 163 million notes that period. Over 99.99 percent of them were assorted correctly. Still, if the Redemption Division counters missed just one mis- take every 15,000 nationals, such an error rate would be enough to distort the outstanding totals by bank shown in the ledgers, and be more than enough to account for the errors shown in Table 1. Walter Woods commented repeatedly on the 1914 discontinuance of the key ledger controls to identify when redemptions for a bank exceeded notes issued to it. While the 1921 changes to safeguard notes in the process of redemption from theft, such as punch cancelling each note four times and then cutting them in half, were laudable, they also made it more difficult to determine the identity of worn notes, particularly if the punch cancels obliterated the charter numbers. E.E. Schreiner, the Redemption Division chief, wrote the Comptroller on April 18, 1922, regarding handling half notes, indicating “you are informed that much additional labor for the Redemption Division has been one result of the change.” Schreiner also stated that the cut notes “are not readily identifiable except by A Bookkeeping Division clerk caught and corrected this January 10, 1934, error where redeemed Series of 1929 notes from The Dale National Bank were recorded against the ledger for The First National Bank of Kingsville *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 259 Paper Money • July/August 2010 • Whole No. 268260 charter numbers which are almost wholly depended on for identification and when such numbers have been partly removed by means of the holes punched” proper identification of the notes was retarded. William S. Broughton, Commissioner of the Public Debt, had strong opinions on the cur- rency redemption process. While his comments were not confined specifically to nationals, in a January 2, 1924, draft memorandum to Undersecretary of the Treasury Garrard S. Winston, Broughton bluntly commented “The examination of redeemed currency is probably the most uninteresting work in the Treasury. In determining the salary to be accorded the coun- ters one positive factor is important: the number of notes counted, and one negative factor is important the number of errors made in the examination.” “And in addition, due to the fact that such a small percentage of notes are recount- ed, there are a great many errors going through which to such extent invalidate the statistics regarding currency outstanding.” He advocated an additional count of currency to ensure redemptions were accurate. Perhaps he consid- ered the comments a bit too direct, as the memo was ultimately marked “not sent.” On September 28, 1928, Woods submit- ted another report on the currency redemption and destruction process, including commenting upon a proposal to have the Federal Reserve banks destroy unfit notes. Woods concluded that such a change would be costly, and particularly problematic if Federal Reserve banks were expected to destroy worn National Bank Notes. Addressing the current redemption of nationals specifically, he noted he did not see the value of having bank agents witness the destruction of the Left: This page from the ledger for the Citizens National Bank of Elkins, WV, shows an overredemption condition. The balances for September 1, 1934, show the $20,430 in redeemed large size five dollar notes exceeded the $20,300 in fives issued to the bank. Opposite: Copy of June 26, 1920, Comptroller of the Currency letter on letterhead to the Secretary of the Treasury talking about delays in sorting, etc, due to work- load volumes. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 260 Paper Money • July/August 2010 • Whole No. 268 261 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 261 Paper Money • July/August 2010 • Whole No. 268262 National Bank Notes, as other controls afforded protection to the banks. Woods stated “No bank has ever been called upon to pay a single dollar although over- redemptions have in fact taken place through erroneous over-issues and through errors in redemption aggregates.” Here was explicit acknowledgment that errors occurred with the proper sorting and identification of redeemed nationals. It is not difficult to imagine how the Treasury currency counters, expected to count over 7,000 dog-eared, punch- cancelled, worn-out notes a day, could make occasional sorting errors and misidentify notes. The statements by Treasury officials and the overredemption cases of the 60 banks shown in Table 1 are proof that errors did occur. After 1914, the Bookkeeping Division had no formal check of redeemed notes against issues by denomination, and only when a clerk caught an overre- demption by chance, as with the Holland, Buena Vista, and other cases noted in Table 1, were arbitrary adjustments made. Even after assortment, clerks also could make errors as they hurried to make thousands of ledger entries each day. The normal fluidity of the circulation and redemption process made it unlikely the national banks themselves would ever notice an overredemption, even if they were receiving new notes because of erroneous redemptions from other banks. The bankers simply had no way of knowing the whereabouts of their notes in circulation because they could not see what notes were in the process of redemption, what notes were in-transit, or what notes were “on the street.” Woods noted in 1924 that individual banks would not be liable for overredemptions. That was made possible because the retirement fund for national currency had accumulated millions in balances that would never be touched because of the nationals permanently lost or destroyed that never would be redeemed. The retirement fund could easily absorb an occasional redemption adjustment. Impact on Current National Bank Note Rarity Information The overredemption research is conclusive: the large- out-at-close and out-at- close data for national banks is neither accurate nor precise, and should be ignored for pur- poses of determining the rarity of a National Bank Note. The Hickman-Oakes and Kelly reference books accurately reflect the ledger totals, but those ledger totals themselves are clearly erroneous. Van Belkum used the recap totals from the Currency and Bond Ledgers to develop those data. His data do not disclose cases of overredemptions. This article focused on cases where we can demonstrate overredemptions in the large size issues. However, the identical sorting and identification problems occurred within the small size national issues. While looking for large size overredemptions, I found a January 10, 1934, redemption error where $420 in redeemed Series 1929 notes for The Dale National Bank, Dale PA (charter #12967), were entered against the ledger of The First National Bank of Kingsville TX (charter #12968). A clerk caught and noted the error, moving the redemption to The Dale National Bank. Difficulty in identifying worn and tattered small size notes for redemp- tion was of sufficient concern that the Treasury developed the Type 2 small size notes, using brown ink to print a second set of charter numbers on the notes. They also succeeded in obtaining an amendment to the National Bank Act in 1933 that permitted them to charge the retirement fund for unidentified nation- als. The extent of the overredemption situation with small size notes is impossible to determine because the small size era abruptly ended in 1935, and accounting by bank totally ceased when the bonds were sold and the liability for the outstanding notes became the responsibility of the Treasury. Do the overredemption findings impact the rarity of National Bank Notes? In fact, no. Your nationals are just as rare, or common, as they were before this discovery. What this information does show, however, is that rarity *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 262 Paper Money • July/August 2010 • Whole No. 268 263 1899 Comptroller of the Currency Ordering form for National Bank Notes. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 263 Paper Money • July/August 2010 • Whole No. 268264 claims based on “large-out-at-close” are unreliable and should be ignored. Rather than use the large-out or total out-at-close to judge rarity, one should factor in the current census data, the size and capitalization of the bank, the date that the bank closed, overall number of notes issued, and whether or not the bank kept a stable number of notes in circulation over the years. Acknowledgments Peter Huntoon encouraged my pursuit of this topic based on his knowl- edge of overredemptions on the ledger sheets for The First National Bank of Gardiner, Oregon. This pursuit quickly expanded beyond the Gardiner case as evidence accumulated that overredemptions were common. While the ledgers themselves proved that overredemptions occurred, it was the 1924 auditing report of Walter O. Woods that provided the clue that unlocked the redemption and bookkeeping changes that ultimately helped explain why the overredemptions had occurred. Note illustrations courtesy of Heritage Currency/CAA, Fred Maples, and Jason Cobb. Sources, Publications Comptroller of the Currency. Annual Report of the Comptroller of the Currency, 1876-1889; 1892; 1915; 1917-1937. Washington, DC: United States Government Printing Office, 1876-1938. Comptroller of the Currency. National Currency and Bond Ledgers. Various Charters, Record Group 101, Stack 550, U.S. National Archives, Archives II, College Park, MD, 1907-1935. Conway, Thomas Jr., and Patterson, Ernest M. The Operation of the New Bank Act. Wharton School of Finance and Commerce, University of Pennsylvania. Philadelphia: J.B. Lippincott Company, 1914. Currency Auctions of America. Currency Auctions of America, Various Public Auction Catalogs. Heritage Galleries, Dallas, TX, various dates. Elms, Webster. The Executive Departments of the United States at Washington. Washington, DC: W.H. and O.H. Morrison, 1879. Hickman, John, and Dean Oakes. Standard Catalog of National Bank Notes, 2nd ed., Iola, WI: Krause Publications, 1982. Huntoon, Peter. United States Large Size National Bank Notes. Laramie, WY: The Society of Paper Money Collectors, 1995. Kelly, Don C. National Bank Notes, A Guide with Prices, 5th ed., Oxford, OH: The Paper Money Institute, 2006. Kelly, Don C., and James M. Kelly. National Bank Notes, supplement to the 5th ed., National Bank Note Census, Version 3.0, supplement to National Bank Notes, 5th ed. Oxford, OH: The Paper Money Institute, 2007. Knight, Lyn. Various Public Auction Catalogs, Lyn Knight Auctions. Lenexa, KS, various dates. Lawrence, William. Decisions of the First U.S. Comptroller of the Treasury, vol. III, 1882. Washington, DC: United States Government Printing Office, 1882. Pratt, A. S. & Sons. Pratt’s Digest of Federal Banking Laws. Washington, D.C.: A.S. Pratt & Sons, Inc., National Bank Agents, 1933. Pratt, A. S. & Sons. Pratt’s Digest of National Banking Laws. Washington, DC: A.S. Pratt & Sons, National Bank Agents, 1901. National Bank Redemption Agency, “Statement Showing Receipts and Redemptions for the Period from July 1 to July 14, 1920, Inclusive.” Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. National Emergency Council. United States Government Manual. Washington, DC: United States Government Printing Office, 1935. New York Times, various articles on National Bank Redemption Agency and National Bank Note Redemption, July 4, 1874; August 20, 1874; April 12, 1875; June 24, 1875; August 30, 1875; January 10, 1878; January 7, 1894. “Redeeming Bank Notes Will Speed Up July 1,” Washington Evening Star, June 15, 1921. Secretary of the Treasury. Annual Report of the Secretary of the Treasury on the State of the *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 264 Paper Money • July/August 2010 • Whole No. 268 265 Finances. Washington, DC: United States Government Printing Office, 1910- 1936. U.S. Government. The Budget of the United States. Washington, DC: United States Government Printing Office, 1923-1937. U.S. Department of the Treasury. Estimates of Appropriations. Washington, DC: United States Government Printing Office, 1890-1922. U.S. Department of the Treasury. Description of Activities and Changes in Methods and Organization. Comptroller of the Currency, by Division, for 1910 and 1911. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. U.S. Government. United States Code, Title 12, Banks and Banking. Washington, DC: United States Government Printing Office, 1925, 1928, 1934. Van Belkum, Louis. National Banks of the Note Issuing Period 1863-1935. Chicago: Hewitt Brothers, 1968. Treasury Correspondence (Alphabetical by Author, with Subject Matter) Allen, G. F., Acting Treasurer, Memorandum to S. P. Gilbert Jr., February 3, 1921. Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Theft of Redeemed Notes] Allen, G. F., Assistant Treasurer, Office of the Treasurer, Memorandum to S. P. Gilbert Jr., Assistant Secretary, Department of the Treasury, August 31, 1920. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Two Stolen $100 Nationals from FNB of Georgetown TX.] Allen, G. F., Assistant Treasurer, Office of the Treasurer, Letter to S. P. Gilbert, Jr., Undersecretary of the Treasury, October 20, 1921. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [National Bank Redemption Agency Assortment Standards, Improving Redemption Process] Allen, G. F., Assistant Treasurer, Office of the Treasurer, Letter to S. P. Gilbert, Jr., Undersecretary of the Treasury, November 9, 1921. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Reducing Time in Redemption, Sorting, and Issue Process] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to G. F. Allen, Assistant Treasurer, Office of the Treasurer, July 21, 1920. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Proposed Changes to Redemption Sorting Process] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to Robert G. Hand, October 9, 1920. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Redemption Changes, Timeliness, Sorting Process, Handling of Fit and Unfit Nationals] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to G. F. Allen, Assistant Treasurer, Office of the Treasurer, December 9, 1920. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Sorting Forms, Controls, $7,400 Shortage] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to G. F. Allen, Assistant Treasurer, Office of the Treasurer, December 15, 1920. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Redemption Backlog, Staffing Shortages] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to Frank White, Treasurer, February 25, 1922. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Sorting Fit and Unfit Nationals] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 265 Paper Money • July/August 2010 • Whole No. 268266 Treasurer, Memorandum to Robert G. Hand, May 23, 1922. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Theft of $2,518 in Redeemed Nationals] Barnes, George O., Superintendent, National Bank Redemption Agency, Office of the Treasurer, Memorandum to Mr. Thompson, February 6, 1931. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [1930 Counting and Sorting Standards] Broughton, William S., Commissioner of the Public Debt, Memorandum to Garrard B. Winston, Undersecretary of the Treasury, January 2, 1924; Marked ANot Sent;@ Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Accuracy of Redemptions and Outstanding Currency Data] Crissinger, D. R., Comptroller of the Currency, Letter to S. P. Gilbert Jr., Undersecretary of the Treasury, May 20, 1922. Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Transmitting National Bank Redemption Agency Views on Cutting Nationals in Half] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to Robert G. Hand, January 24, 1921. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Redemption Backlogs, Treasury Cannot Carry National Bank Notes] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to G. F. Allen, Acting Treasurer, Office of the Treasurer, January 31, 1921. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Two Stolen $100 Nationals from FNB of Georgetown TX.] Gilbert, S. P. Jr., Undersecretary of the Treasury, Letter to John Victor, President, The Peoples National Bank, Lynchburg, VA, March 6, 1922; Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Fit National Bank Notes Not Being Returned to Circulation] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to W. G. Harding, Governor, Federal Reserve Board. September 22, 1921. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Handling of Fit Nationals by Federal Reserve Banks] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to William S. Broughton, Commissioner of the Public Debt, September 26, 1921. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Federal Reserve Banks Remit 90% of Redeemed Nationals] Gilbert, S. P. Jr., Undersecretary of the Treasury, Letter to George J. Seay, Governor, Federal Reserve Bank of Richmond, April 22, 1922; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Handling of Fit and Unfit Nationals by Federal Reserve Banks] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to D. R. Crissinger, Comptroller of the Currency, May 2, 1922. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Security Advantages from Cutting Notes in Half] Gilbert, S. P. Jr., Undersecretary of the Treasury, Memorandum to D. R. Crissinger, Comptroller of the Currency, May 25, 1922. Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Theft of $2,518 in Nationals During Calendar 1921, Advantages of Cutting Nationals in Half] Gilbert, S. P. Jr., Undersecretary of the Treasury, Letter to All National Banks, June 14, 1922; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Timely Payment to the 5 Per Cent Redemption Fund] Houston, D. F., Secretary of the Treasury, Letter to John Skelton Williams, Comptroller *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 266 Paper Money • July/August 2010 • Whole No. 268 267 of the Currency, February 16, 1921. Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Annual Assortment Errors, Improving Process] Leffingwell, R. C., Assistant Secretary of the Treasury, Letter to John Skelton Williams, Comptroller of the Currency, June 22, 1920. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Expediting Redemption and Issue of National Currency to Reduce Bank Complaints] Schreiner, E. E., Chief, Redemption Division, Office of the Comptroller of the Currency, Letter to D. R. Crissinger, Comptroller of the Currency, April 18, 1922; Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Half Notes Slow Work, Punch Cancels Make Note Identification Difficult, No Additional Safety in Handling Half Notes] Schreiner, E. E., Chief, Redemption Division, Office of the Comptroller of the Currency, Letter to D. R. Crissinger, Comptroller of the Currency, May 16, 1922; Records of the Treasurer of the United States, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Cutting Notes in Half Makes Redemption Difficult] Williams, John Skelton, Comptroller of the Currency, Letter to R. C. Leffingwell, Assistant Secretary of the Treasury, June 26, 1920. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Backlogs in Issue Division, Impact on Banks] White, Frank, Treasurer, Letter to All National Banks, September 1, 1921; Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Timely Payment to the 5 Per Cent Redemption Fund] White, Frank, Treasurer, Letter to S. P. Gilbert Jr., Undersecretary of the Treasury, September 20, 1921; Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Federal Reserve Bank Sorting and Fitness Standards] White, Frank, Treasurer, Office of the Treasurer of the United States, Letter to A. W. Mellon, Secretary of the Treasury, November 1, 1921. Letter to All National Banks, September 21, 1921; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Sorting Changes, Cutting Redeemed Notes in Half] White, Frank, Treasurer, Office of the Treasurer of the United States, Letter to S. P. Gilbert, Undersecretary of the Treasury, February 7, 1922; Central Records of the Department of the Treasury, Record Group 56; National Archives and Records Administration, Archives II, College Park, MD. [Sorting and Fitness Standards of Federal Reserve Banks] Woods, Walter O., War Loan Auditor, Office of the Register of the Treasury, Memorandum to Henry M. Dawes, Comptroller of the Currency, June 26, 1924; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Bookkeeping for National Currency, 1911 Process Changes, Checks Lacking on Notes Issued vs. Notes Redeemed] Woods, Walter O., War Loan Auditor, Office of the Register of the Treasury, Memorandum to Garrard B. Winston, Undersecretary of the Treasury, May 7, 1925; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Review of the Issue and Bookkeeping Divisions] Woods, Walter O., War Loan Auditor, Office of the Register of the Treasury, Memorandum to Garrard B. Winston, Undersecretary of the Treasury, July 17, 1925; Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Review of the National Bank Redemption Agency] Woods, Walter O., Register of the Treasury, Memorandum to Mr. Bond, United States Treasury, September 28, 1928. Records of the Bureau of the Public Debt, Record Group 53; National Archives and Records Administration, Archives II, College Park, MD. [Redemption and Destruction, Banks Not Liable for Over-redemp- tions] v *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 267 Paper Money • July/August 2010 • Whole No. 268268 THE BIG NEWS IN LARAMIE ON WEDNESDAY, OCTOBER14, 1891, was the arrival on the Union Pacific Railroad of two skiffsbuilt for prominent bankers at The Wyoming National Bank. Thefollowing appeared on page 4 of The Republican, Laramie’s newspaper. Two beautiful St. Laurence river skiffs built by John Gunster, formerly of this city, arrived here this morning and were the center of attraction while being unloaded at the freight house. The boats were built for Messrs. F. E. Scrymser and D. C. Bacon, of this city, and are perfect crafts of their kind. It is the intent of the above gentlemen to launch the skiffs on Hutton’s lakes, and as they are identically the same in every particular, even to the amount of canvas carried, the chances are that a race for the championship of the lakes will soon be arranged, as the owners of the boats will undoubtedly wish to ascertain which is the possessor of the smarter craft and to whom the honor of flying the victorious pen- nant belongs. The skiffs are built of cedar, lapstreaked, eighteen feet in length and a trifle over three feet in beam. Both ends are pointed, and each has a seating capacity of four persons. The amount of sail carried will be sixty-five square yards, and a small centerboard will enable the boats to sail close to the wind. The ends are decked over for the space of two feet with inlaid cedar and mahogany, which adds much to the handsome appearance of the boats. They are copper fastened, and the seats are traced with nickel plates, which gives a very pretty effect to the interior. A pair of oarlocks makes it easy work to row when a sail is not desirable, and the masts are so arranged that they can be taken out at any time. Taking everything into consideration, the two pioneer boats in this section are beauties in every detail, and if they prove the success that their owners anticipate, it will not be long until Laramie can boast of a fleet of yachts on its neighboring lakes. How a Rare Laramie, Wyoming, National Bank Note Was Saved The Paper Column by Peter Huntoon *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 268 Paper Money • July/August 2010 • Whole No. 268 269 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 Reduce Your Overhead You could sell notes in this space six times per year for only $900 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 269 Paper Money • July/August 2010 • Whole No. 268270 Fred F. Scrymser and D. C. Bacon were principals in The Wyoming National Bank. Scrymser was president and a director, and Bacon was another director. Scrymser was relatively new to the bank, having purchased Edward Ivinson’s interest in the bank in 1888. Ivinson was the venerable pioneer Laramie banker and founder of the bank. It is clear that Scrymser was very eager to try out his new boat and even to begin construction of a boathouse for it. To these ends on Friday, just two days after the boats arrived, he enlisted Matthew Dawson, the cashier of the bank, and two carpenters to accompany him to Hutton’s lake to begin construction of a boat house and to test his boat. The Saturday Republican carried this account. Early yesterday morning a wagon containing President F. E. Scrymser and Cashier M. Dawson of the Wyoming National Bank, and George Stirling and James Davis, carpenters, started for Hutton’s lakes, eleven miles southwest of the city. Following them was another wagon loaded with a new sailboat. The craft was the property of Mr. Scrysmer, and Mr. Dawson was going to accompany him on its initial voyage. The carpenters were taken along to construct a house for the safe-keeping of the pretty little vessel. Arriving at the lake, the carpenters began their work on the north shore, and Messrs. Scrymser and Dawson launched the boat and merrily sailed over the choppy water. The carpenters say that a brisk breeze was then blowing, but the gentlemen in the boat did not seem to experience any difficulty in handling her. About noon the craft returned to shore, and its crew ate the lunch which had been taken along, talking meanwhile of the sailing qualities of the vessel and prophesying unlimited pleasure from future trips in her. At 1 o’clock they re-embarked, hoisted the sail and stood out for the middle of the lake. Modern map showing the location of Hutton Lake southwest of Laramie, Wyoming. Hutton Lake is now a National Wildlife Reserve. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 270 Paper Money • July/August 2010 • Whole No. 268 271 Meanwhile the breeze had strengthened to a semi-gale, and waxed fiercer as the afternoon advanced. The men at work ashore occasionally glanced at the tiny barque as it was buffeted by the ever- enlarging billows, but they never dreamed of danger to her passen- gers. When she had been cruising about half an hour, one of the car- penters remarked that the sail was no longer in sight. But he attached no significance to its absence. The boat was then in the center of the lake, and the distance, combined with the roughness of the water, pre- vented a very clear view of her outlines from where the watchers stood. He plainly saw the craft rising and falling with the undulating water, but he could not tell whether she was overturned or not. Subsequent events proved that even then the catastrophe had occurred. It was almost 6'o’clock, and night’s shades were falling over prairie and lake, when the carpenters ceased work. The prolonged absence of the boat had created uneasy thoughts in the minds of the men, but they did not reveal to each other their fears until they were ready to start for home. Through the dusk they could perceive the boat lying close to the opposite shore, and as they walked around the lake they hoped that the passengers had moored her and gone home. As they approached her, however, hope gave way to horror. There she lay, about half-a-dozen yards from shore, with her gunwale under water and her mast and sail a mass of wreckage. Entangled in the sail was a dark object. The darkness prevented the startled men from dis- tinguishing it. But the overturned boat told a tale that needed no detail for corroboration. It was plain that both her late occupants had fallen victims to the cruel waves. Else they would have made their presence on earth known to their traveling companions of the morn- ing. Frightened and saddened, the carpenters hastened to the place where the team which conveyed them to the lake had been hitched so many fateful hours before. Another surprise awaited them here. The horses, doubtless terrified by the gale, had wrenched themselves loose. One was entirely missing and the other was seen a short distance away. But Stirling and Davis did not interfere with it. They started to the city afoot with their direful intelligence. The carpenters reached Laramie about 10 p.m., and would-be rescuers hastened to the lake. Scrymser’s body was found in the frigid water tangled in the sail. His pocket watch had stopped at 1:25. No trace of Dawson was found except for his water-soaked cigar case. Hutton’s lake, which occupies a depression on the prairie, probably was scoured out by the fierce winds which blew across the Laramie basin during the Pleistocene epoch. Those ancient winds were even worse than the gales which commonly blow across the plains now! The bottom of the lake is below the mod- ern water table, so the depression is filled with ground water. The lake is shallow, mostly less than 25 feet deep, with a mud or sand floor covered by a thick mat of dense, long grass. The lake is about 0.9 mile across in the east-west direction, and about 2/3rds of mile across from north to south. The water level falls during dry peri- ods, so then the lake segments into a series of shallow, smaller lakes. The search for Dawson’s body became a major undertaking involving many men over the succeeding months. Local Judge M. C. Brown ran ads in The Republican offering a $500 reward for the recovery of the body providing dyna- mite was not used. At first citizens from Laramie including teams of men from various fraternal organizations scoured the shores and dragged the lake, even *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 271 Paper Money • July/August 2010 • Whole No. 268272 posting sentries for weeks on end to watch for the body when it finally floated up from the depths. Dynamite blasts were detonated over the water on October 25th in hopes the concussions would dislodge the body from the entangling grasses on the bot- tom. A fully equipped diver was summoned from San Francisco complete with aide. Both arrived on October 29th via train. The diver was a German who went by the single name Dolph, and his assistant was Charlie Thompson. Dolph donned his heavy gear and worked off a raft manned by Thompson who operated the air pump. Dolph walked the bottom of the lake, claiming that the freezing cold water coupled with sucking mud and tangled grasses in some locations comprised the worst conditions he had ever encountered. The lake was beginning to freeze over by November 11th. Ice extended 100 feet inward from the shore, and Dolph had to concede defeat. Once the lake froze over, Silas Schoonmaker, who was hired to watch the lake during the winter, and others ventured out onto the ice, cleared snow where necessary, and searched through the clear ice and water for the body hidden below. In desperation, Madame Mizpah, a medium, was hired in December to pinpoint the location of the body. Holes were chopped through the spots she selected and poles or dragging tools were used to attempt to find the corpse. The Republican reported that “Siberian blasts” drove the searchers off the lake on December 22nd. Apparently the costs for the search were borne by Luther Fillmore, Dawson’s father-in-law. In the meantime, Scrymser’s funeral was held on October 18th. On the same day, Robert Homer was elected president of the bank and Otto Gramm was made acting cashier to be assisted by Arthur C. Jones, who was the assistant cashier. Dawson’s funeral was held November 14th. It is an enduring mystery that Dawson’s body never was found. The treat- ment of the two bankers was handled with such Victorian delicacy and discretion by the Laramie press, the possibility that there was no body to be found in the lake was never raised in print. The Bankers Fred E. Scrymser was born in New York City in 1852. He came to Laramie where he found employment as a timekeeper for the Union Pacific rolling mill there, then was advanced to a management position. He went on to lease the property in 1884, and operated the mill under contract with the railroad. Scrymser became a director of The Wyoming National Bank in 1886, and its president in 1888. He was still operating the rolling mill at the time of his death. Scrymser was unmarried. He had three brothers and three sisters, two of the sisters having drowned off the Atlantic coast before his own drowning. His youngest brother Henry was a seaman, and in 1891 was involved in the island trade between San Francisco and the Society Islands on a large yacht-like sailing vessel called the Tahiti. The boat was owned by a Mr. Leavitt, a lawyer in San Francisco and former U. S. Consul to Guatemala. Leavitt and Henry were sailing to San Benito, Mexico, at the time of Fred’s death. Ironically, they and the Tahiti were lost at sea without leaving a trace at about the same time Fred drown at Hutton’s lake. Fred’s remains were shipped to New York where they were interred in a family plot. He bequeathed his estate to his mother who was living in Elizabeth, New Jersey. Matthew Dawson was born in Woodstock, Ontario, February 21, 1859. He immigrated to Laramie in January 1881, where he was hired as a teller at The Wyoming National Bank. In May 1882, he was promoted to cashier. He married Jennie Fillmore of Laramie in 1889, and had fathered a daughter by the time of his disappearance. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 272 Paper Money • July/August 2010 • Whole No. 268 273 SPMC NEW MEMBERS - 04/05/2010 These memberships expire in one year. 13247 Rick Bradley (C), Website 13248 Charles Upp, 12980 North B Street, El, Mirage, AZ 85335-2369 (C, Obsoletes, World), Website 13249 Ali Mehilba, 13533 W. Holly St, Goodyear, AZ 85395-2403 (C & D), Website 13250 David Bianchi (C), Wendell Wolka 13251 Gary Parsons (C), Wendell Wolka 13252 Debbie Williams (C), Wendell Wolka 13253 David Heinrich (C), Wendell Wolka 13254 Richard Lipman (C), Wendell Wolka 13255 Joel Rind, 735 Broad St Suite 104, Chattanooga, TN 37402, (S, Southern Obsoletes, Confederate and Related Material), Dennis Schafluetzel 13256 Bruce Maag, 238 N. Main St, Delphos, OH 45833 (D), Frank Clark 13257 Steve Degennaro, 2903 W. Arch, St, Tampa, FL 33607 (C, Small Size), Website 13258 Samuel L. Smith (C & D), Website SPMC NEW MEMBERS - 05/05/2010 These memberships expire in one year. 13259 Kenneth Sheperd, 234 Carey Ave, Louisville, KY 40218 (C, World), Tom Denly 13260 Alan K. Simmons (C), Tom Denly 13261 James C. Regur (C), Website 13262 Gary Niditch (C), Website 13263 Robert C. Farricy, 1017 Westmoreland Ave, Syracuse, NY 13210 (C, Large & Small $1s & $2s), Website 13264 Patrick G. Burrola, 14888 Werris Creek Lane, San Diego, CA 92128 (C), Website 13265 David P. Barnhard (C), Website 13266 Allan R. Lacy, 3065 Greenfield Dr, Marietta, GA 30068-3214 (C, US Large), Mack Martin 13267 John DeRocker, 11672 120th St S, Hastings, MN 550033 (C, US Small), Robert Moon 13268 Cory Frampton, PO Box 5270, Carefree, AZ 85377 (C & D, Mexico), Fred Reed 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 A note from our treasurer . . . The finances of SPMC remain stable through the first quarter of 2010. Advertising revenues are somewhat down this year undoubtedly due to the economy, and the revenue earned on our CDs is also down because of the decline in interest rates. However, reduced expenditures just about match our loss in income. Membership dues are just about matching previous years and we continue to monitor our expenses. -- Robert Moon, SPMC Treasurer v Society of Paper Money Collectors Official Announcement The Board of Governors of the SPMC has authorized that grant funds be made available to a limited number of researchers each year. The funds are to assist them with expenses incurred in their research of topics related to paper money and/or other numismatic subjects which are consistent with the SPMC's mission. The supported research is intended to produce a book, article or other identifiable benefit for the hobby and should be completed within one year. An application form is available to interested participants and the completed application must be submitted to the chair- man of the Society's committee for review. Only one grant will be approved each year for any one individual, but another may be applied for in subsequent years. Funds up to $500.00 may be disbursed in advance of the incursion of expenses, but the Society requests that documen- tation of expenses incurred be submitted to the Society within six months of the completion of the research. Funds are available for several grants this year (2010). Ronald Horstman Chairman, Educational Committee PO Box 2999 Leslie, MO 63056 v *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 273 Paper Money • July/August 2010 • Whole No. 268274 A Memorial Souvenir Series of 1875 $5 notes were issued from only two banks in the state of Wyoming. There are 15 reported specimens, 14 from The Stockgrowers National Bank of Cheyenne, charter #2652, that were in a hoard discovered several decades ago. Even though most of the Cheyenne notes are high grade, they were pressed at the time of discovery and sold into collections across the country. Undoubtedly more of them remain to be recorded. The 15th specimen is the note shown here from The Wyoming National Bank of Laramie City, charter #2110. The eye-appeal of the Laramie note stands heads and shoulders above any of the Cheyenne specimens in terms of brightness, color and crispness. It looks as fresh and original as the day it was signed and cut from the sheet. The note can’t make a numismatic grade of Almost Uncirculated owing to three very hard, vertical quarter folds that show on the back. In fact, if you handle the note, your fear is that it might fall apart at the folds. Even so, the visual appearances of the Cheyenne notes pale next to it. The Laramie $5 is one of the all-time greatest Wyoming notes ever dis- covered, coming from a minute issuance of only 491 sheets bearing bank sheet seri- als 4351 through 4841. Serials 1 through 4350 were used on its territorial prede- cessors. In comparison 5,035 sheets of $5 Series of 1875 state notes were issued from the Cheyenne bank. The Laramie notes were shipped to the bank between November 24, 1890, and January 23, 1892. The Cheyenne notes were sent between 1891 and 1900. Only surviving $5 Series of 1875 state note from 491 sheets issued by The Wyoming National Bank of Laramie City, Wyoming. The note carries the signatures of F. E. Scrymer, president, and M. Dawson, cashier, both of whom perished on Hutton’s lake October 16, 1891. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 274 Paper Money • July/August 2010 • Whole No. 268 275 The plate used to print the Laramie notes was made by the Continental Bank Note Company as an Original Series territorial plate in 1873 Next it was altered at the Bureau of Engraving and Printing into a Series of 1875 territorial plate during the winter of 1876-7. Finally, in 1890, it was altered a second time, this time into a state plate upon the admission of Wyoming to the union. The title of the bank was changed on January 28, 1892, by dropping City from the town name, but only $10s and $20s were issued in the Series of 1875 with the new name, and only 209 sheets of those before the corporate life of the bank was extended in May 1893. I never expected to see an extant $5 state note from the bank owing to the small number issued and the short period during which they were used. Besides, any note issued from Wyoming before 1900 represents a miracle of survival, and there just weren’t many miracles. Significantly, the Laramie note bears the signatures of F. E. Scrymser, president, and M. Dawson, cashier -- the drown bankers. It is the only surviving note that bears their signatures. The bankers at The Wyoming National Bank saved a few of their notes, and as a result were responsible for preserving most of the greatest early notes found from the territory and state of Wyoming. Most of those notes were retained within the bank regardless of who owned the bank or who signed the notes. The Wyoming National Bank was reorganized as The First National Bank in 1895. The early notes passed to The First National Bank, and more were added to the group as the new bank received its various issues. One individual who worked at both banks was Arthur Colley Jones (1858-1947), known locally as Archie. Jones emigrated from Ireland to Wyoming in 1882, following a brother, Christopher, who was ranching near the Little Laramie River. Jones found employment at The Wyoming National Bank in 1883. He was appointed assistant cashier in 1888, and promoted to cashier in 1891 after Dawson was declared dead. Jones became cashier and secretary of The First National when it came into being in 1895. He served as a director of the new bank for 54 years. Many of the notes held by the bank became part of Jones’ estate. One of the best was the Scrymser-Dawson note shown here. Clearly, someone at the bank had the foresight to put it away after the two men suffered their accident on Hutton’s lake. It is more than likely that the note was retrieved from the personal effects of one of them, because it has the look of a banker’s pocket piece with its precise quarter folds and exceptional grade. There is little question that the note never circulated. It was simply signed, cut from the sheet, folded and put in a wallet or otherwise preserved. The best part was that whoever carried it had the prescience to fold the face inward so that the trivial wear that it did sustain only affected the back. It is fortunate for us that it wasn’t on either man when he slipped below the surface of Hutton’s lake on that fateful Friday in October 1891. Sources of Information The Republican, October 14, 16, 17, 19, 25, 28, 29; November 3, 7, 11, 13, 14, 20, 23; December 22, 29, 1891. Laramie, WY. v *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 275 Paper Money • July/August 2010 • Whole No. 268276 AGREAT DEAL OF COLLECTOR INTEREST IS VISITED ONthe World War II emergency notes, specially printed U.S. SilverCertificates and Federal Reserve Notes circulated by our government inHawaii/Pacific islands and North Africa/Europe theaters of war to pre- clude large quantities of anonymous Yankee dollars from falling into the hands of the belligerents to the detriment of the U.S. economy. Peter Huntoon (Paper Money May-June 2008) and others have written eloquently about this chapter of our paper money history. Twenty-five years ago then longtime New Jersey SPMC member George H. Wettach (SPMC #2060) shared a cache of New York Federal Reserve Bank circulars outlining new wartime regs affecting currency, and governing use of HAWAII notes and “Yellow Seal” notes stateside shortly after these notes were introduced in the Pacific and North African/European war zones. Included were: Circular No. 2391 3/6/42 Lengthening the life of paper currency Circular No. 2404 3/28/42 Conservation of coin and currency bags Circular No. 2462 7/10/42 U.S. Currency, Hawaiian Series Circular No. 2481 8/13/42 U.S. Currency, Hawaiian Series Circular No. 2564 12/29/42 U.S. Currency, Hawaiian Series Circular No. 2575 1/19/43 Silver Certificates with “Yellow” Seal Wettach had “rescued them [the circulars] when the files were being winnowed many years” previous. Other Federal Reserve Banks may have issued similar circulars, Wettach speculated, “but I do not have any.” The collector for- warded photocopies of the circulars to Paper Money thinking them to be of histor- ical interest, but successive editors (including the undersigned) could find no author interested in incorporating them into his/her research for publication in the magazine. “I hope you can make use of them,” Wettach wrote. These photocopies surfaced again recently, and the present Editor decid- ed to just publish them so they are available to all researchers, since they have a great deal of interesting information not found elsewhere. -- Fred Reed Stateside Banking Archive 1942-1943 Federal Reserve Circulars Detail Regs For Handling Wartime HAWAII Notes *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 276 Paper Money • July/August 2010 • Whole No. 268 277 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 277 Paper Money • July/August 2010 • Whole No. 268278 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 278 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 • July/August 2010 • Whole No. 268 279 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 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 279 Paper Money • July/August 2010 • Whole No. 268280 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 280 Paper Money • July/August 2010 • Whole No. 268 281 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 281 Paper Money • July/August 2010 • Whole No. 268282 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 282 Paper Money • July/August 2010 • Whole No. 268 283 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 283 Paper Money • July/August 2010 • Whole No. 268284 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 284 Paper Money • July/August 2010 • Whole No. 268 285 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 285 Paper Money • July/August 2010 • Whole No. 268286 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 286 Paper Money • July/August 2010 • Whole No. 268 287 *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 287 Paper Money • July/August 2010 • Whole No. 268288 v *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 288 Paper Money • July/August 2010 • Whole No. 268 289 THE BANCO NACIONAL DE PANAMA PUBLISHED “COLECCIONNumismatica Panamena” by Jorge Conte-Porras (Ediciones BibliotecaJose Agustin Arango, Boletin Cultural, Vol. 5, 1982). On pages 56 and57 appear illustrations of the $2 and $3 bills of the Central American Steam Navigation Co., dated Chagres, 1851, with the following commentary: Bank bills issued by credit entities of the Atlantic Sector between 1850 and 1880. Note that the bills use a dollar denomination even though it recognizes the geographical location as Colombia. No other comment or reference to the bills or the company is made in the publication. I have searched for the elusive Central American Steam Navigation Co. (CASNC) for some years and was only able to obtain a solid clue in the most unlikely manner. To say the least, I’ve written to many requesting information. Secretaries of State, New York and California, with negative results. To a myriad of maritime museums with equally disappointing results. And, also, I’ve written and bad- gered people all over. I would guess that when they see an envelope with my return address it would be placed aside and only opened when no other recourse was avail- able. Many probably hid when they saw me. To all of you, my sincere apologies. Regardless, persistence won out in the end by a mere stroke of luck. As a late- comer into the great fraternity of internet “surfers,” several years ago I put my new found knowledge to work using “research engines.” Each time I entered “Central American Steam Navigation Co.,” exactly as printed on the bills. Invariably, my answer was “No Match Found.” One day I came across an article “Panama, the City Under the Tall Trees” by Yasha Beresiner in the IBNS Journal (Vol. 15, No. 3, 1976), which showed a half dollar CASNC bill with comments on the printer of same.1 I copied it and sent it with a note to Gene Hessler to see if he could help. Gene, most kindly, answered me suggesting I enter “CASNCompany” with “Company” spelled out in full2 rather than just “Co.” Lo and behold, two entries came up: The Maritime Heritage, which The Central American Steam Navigation Co. by Joaquin Gil del Real *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 289 Paper Money • July/August 2010 • Whole No. 268290 reproduced an article that had appeared in the Daily Alta California of July 1st, 1853, and “Pre Stamp Postal Markings” of the Republic of El Salvador. (Many thanks, Gene!) I now had a reference point and a time frame to work with. Though the CASNC bills had “Chagres, 1851” printed on them, I had consulted the Panama National Archives and found nothing, neither for 1850, 1851 nor any other year to 1855. So, using the first reference date, which was 1853, I asked my local librarian to request inter-library loan of a copy of the Daily Alta California micro- film for that year. At first it was a hassle because my local library is just that, a local library and not a scholarly research institution. Regardless, huff and puff, find out who has the item (through the internet, of course), and voila, we obtained what we needed using resources avail- able but hardly ever really used. Those of you who have searched microfilm can sym- pathize with me when I admit that looking at microfilm makes one very dizzy, slowing things somewhat. On the California papers, I confirmed the internet entry and little else, Basically, San Francisco papers awaited the arrival of vessels from other ports and the Pursers of each would hurry to deliv- er the newspapers from areas visited to the waiting editors at the port of arrival. The news was then reported, generally the following day with proper credit to the Purser, vessel and firm who supplied the information. Kind of a Public Relations effort of the day. From California newspapers I decided to seek Panana newspapers. Again internet search revealed the location of desired items. Here I was surprised at the number of universi- ties with comprehensive microfilm records of Panama newsp- pers. Again, an inter-library request is made; huff and puff, stomp, jump, look angry, make a fuss; a telephone call is made; the ways are greased and the machinery being oiled works like a brand new clock. You ask; you receive; you research; you return, and the cycle goes all over again. Hard to start, but once it begins working it’s wonderful. I finally received items requested and the story began to unfold. Here it is: The first mention of the CASNC from the Daily Alta California of July 1st, 1853 extolled the trade possibilities with Central America. It mentioned: . . . that Capt. Thomas Wright had concluded a contract with the Central American Republic for exclusive privilege of the coasting trade for the term of ten years . . . to carry the mails . . . to Panama. The company is called the Central American Steam Navigation Company. The first steamer will commence running on the 15th October.3 Capt. Wright had secured a contract with El Salvador on January 12, 1853,4 granting the exclusive right to coastal trading and to carrying the mail. A similar contract was signed with the authorities in Costa Rica.5 Both contracts established January, of the following year, as the date for establishment of a steamship line, with monthly service, between Istapan, Guatemala, ports in between and Panama. By July of 1853,6 the CASNC had marked the route Below: The Daily Alta California reported on the arrival of El Primero of the Central American Steam Navigation Company. The steamer brought 15 passengers from stops at Guatemala, San Salvador, Honduras, Nicaragua, Costa Rica and Chiriqui (Panama). Opposite: The Star of Panama reported activities in Panama, February 8, 1854. *July/Aug 2010 Paper Money 8/9/11 11:45 AM Page 290 Paper Money • July/August 2010 • Whole No. 268 291 though no “positive information as to the precise time the line will be put into operation . . .” was available. By September7 the Steamship Sea Bird, which was to have been on the line had been wrecked. Mention was made of the West Point, which at that time was running on the Sacramento River. The following month,8 it was announced that the Steamer El Primero would shortly begin operation. Another Steamer, the Goliah is also referred to in November9 and it is at this time that the first advertising of the CASNC appears in a Panama newspa- per. In January of 1854 Captain Wright was in Panama: . . .making arrangements for the immediate dispatch of El Primero after her arrival here. She will probably sail hence on the 17th. inst . . . The rates of freight and passage will be fixed about the same as that charged by the wretched and unsafe old vessels which at present carry on the coasting trade and no exhorbitant charges will be enacted.10 Finally on February 5, 1854, the Daily Panama Star announced the arrival of the El Primero at Taboga on Friday the 3rd of February. Particulars of the voyage were detailed, as is a list of passengers disembarking. In the same article, the stockholders of the CASNC were identi- fied as: “Capt. Thomas Wright, Mr. S.L. Jones (Agent at David, Chiriqui, Panama) and we understand our fellow townsman Mr. Ran Runnels.” Runnels became the Agent for the company at Panama.11 The article continued prais- ing the benefits to Central America, Panama and the com- pany. Mention is also made that Panama can serve as a central storage area for manufactured products which can thereby be supplied to customers in Central America and South America. It goes on to say that much trade is expected with the establishment of this line. (Today there is aflourishing Free Trade Zone in Colon.) On the return trip of El Primero, Mr. Archibald Boyd, co-proprietor of the Daily Panama Star, took pas- sage so as to “. . . collect information. (Since) Little is known of the resources and characters of these (Central American) countries . . .”12 Returning to Panama the following month Boyd’s comments and observations are published in the Daily Panama Star of March 16, 1854. We quote: From Guatemala we have but little news. The country is in a very disturbed state occa- sioned by the war . . . with Honduras. Trade is rather dull. . . . much suffering in the Republic of El Salvador owing to the destruction of a large amount of the past season’s crop by the caterpillar. . . . The State of Nicaragua is exceedingly dull and little business appears to be doing. . . . Costa Rica is at present in a more *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 291 Paper Money • July/August 2010 • Whole No. 268292 nourishing state than it has ever been and is most decidedly the most prosperous and advanced part of Central America. After more general comments on country conditions and trade, Boyd refers to the CASNC indicating that this first trip was an “experiment” creating “the necessity of entering many places.” Reference is made regarding the “arrangements” made with some of the Central American governments, that had not been complied with, and that negotiations continued between local agents and respective authorities to not only comply but to expand and improve those benefits already granted. Lack of adequate port facilities in Guatemala and San Salvador could delay the vessel in its route. The trip is quite lengthy and too much for only one steamer yet Boyd continues to argue for a commercially successful venture, where “proper benefits [are] received and adequate vessels used.” Boyd stated: We trust the enterprising originator of the line, Capt. Thomas Wright, may fully realize the success in this undertaking which his present prospects warrant him in anticipating, although we hardly deem it necessary to wish the scheme prosperity, concerned as we are that twelve months time will prove it to be one of the most profitable investments on the Pacific Coast. Monthly voyages continued until Thursday the 25th of May 1854, barely four months into the venture, when we read in the La Estrella de Panama: “We learn with much regret that the Steamship El Primero, of the CASNC, is about to be taken off the route and sent South.” “. . . Captain Wright . . . has had to battle single handed with all the obstacles . . .” A hint of the possible cause of this deise can be discerned from the com- ments in the same article: “. . . the petty, contracted ideas of the people who should have reaped the benefit of the line (mention had been made of connec- tions with and through the Panama Railroad, soon to be completed). And the writer continues to hint at “. . . to save a dime . . . or a dollar, most would spend ten or fourteen days at sea on board a rotten hulk . . . and the risk of losing their cargo . . . when . . . could reach destination . . . within forty hours.” The El Primero left Panama on Friday, May 26, 1854, in the early hours of the morning for Callao, Peru.13 In observing the bills of the CASNC we notice that they show “Chagres, 1851.” By 1854 Chagres was in disuse as all vessels now went to Navy Bay and Aspinwall (or Colon), the Atlantic terminus for the Panama Railroad. From there passengers boarded the train which took them as far as the rails had been laid at that moment. The Panama Railroad was completed in late January of 1855.14 Central American Steam Navigation Co. Half Dollar/Medio Pesos unis- sued remainder with imprint, Pick Colombia S887. (Illustration cour- tesy Stack’s, ex-John J. Ford, J. Roy Pennell, Thomas F. Morris, Edward Eberstadt) *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 292 Paper Money • July/August 2010 • Whole No. 268 293 We know that Capt. Wright had passed the Isthmus in 1849, and being a success- ful entrepreneur had concluded the potential available. He probably got ahead of himself. Of course, at this time, such private issues of bills were quite common. There were four denominations of lithographed bills, which are denominated bilingually: Plate A Half Dollar/Medio Pesos Pick Colombia S887 Plate B One Dollar/Un Pesos Pick Colombia S888 Plate C Two Dollars/Dos Pesos Pick Colombia S889 Plate D Three Dollars/Tres Pesos Pick Colombia S890 All bills are unpriced and designated RARE in the Standard Catalogue of World Paper Money, vol. 1, Specialized Issues, 9th edition. All have a central vignette of an eagle on a rock with ships in the distance at center, a steamship at upper left, a bee hive at lower left, a native in a canoe at upper right. They state “The Central American Steam Navigation Co. // Will pay Half Dollar (One Dollar, Two Dollars, Three Dollars) to the bearer at their Banking House on demand. // Chagres, January 1st 1851,” with spaces for the signatures of the Secretary and Cashier. The imprint “Wheeler, Beale & Co. NY” is in small type at bottom. Regarding the 50-cent bill. We have a 50-cent bill illustrated in the Yasha Beresiner article mentioned earlier. It was an unissued remainder with the imprint of Wheeler, Beale & Co. NY. According to Beresiner the 50-cent note along with $2 and $3 notes fetched $2,000 in a 1973 auction. In a May 26, 2005, Stack’s John J. Ford Auction a medio peso (Lot 4219) went for $3,400. According to the cataloger, the note and the succeeding lot (un pesos) had been cut from a sheet of four notes of all denominations “that came from the Thomas F. Morris Estate.” Morris had been an engraver at the Bureau of Engraving and Printing at the end of the 19th Century. The note had sold at auction twice in Top: Central American Steam Navigation Co. One Dollar/Un Pesos unissued remainder with imprint, Pick Colombia S888. (Illustration courtesy Stack’s, ex-John J. Ford, J. Roy Pennell, Thomas F. Morris, Edward Eberstadt) Above: Central American Steam Navigation Co. One Dollar/Un Pesos “issued” note #5372 with no imprint, Pick Colombia unlisted. (Illustration courtesy Lyn Knight) *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 293 Paper Money • July/August 2010 • Whole No. 268294 the seventies, and other owners prior to that time had included J. Roy Pennell and Edward Eberstadt. Ford acquired the note at a November 5-7, 1977, Paramount auction. I had also seen a photocopy of one of the one dollar bills, and it is illus- trated in the Pick. In the same Stack’s 2005 sale the companion $1 with printer imprint (Lot 4219) went for $3,500. Bidding started at $3,250. That’s a bunch of money for items about which little is known. I presume the same bidders bid for both of these items. According to the cataloger, Ford had purchased the $1 note in 1975 at the New York International Numismatic Convention Sale held December 4-5 by Henry Christensen (Lot 1159). Again the provenance included Edward Eberstadt, Thomas F. Morris and J. Roy Pennell. In the meantime a second variety of the One Dollar/Un Pesos bill appeared in a 2004 Lyn Knight sale held in Dallas, TX. This unlisted variety was graded Fine/VF and purportedly issued! It is filled-in in brown ink. The bill bears serial number 5372, a seemingly impossibly high number. The Secretarial signature reads suspiciously “Hendrick Hudson,” and the Cashier’s signature reads “Joseph Griffiths.” Both signatures appear to be in the same hand. It was estimated at $750-$1,250, and billed as “a special opportunity to obtain an extremely difficult piece.” It attracted much attention and sold for $2,450. It is no doubt a rare note, even if not contemporaneously issued. According to the Stack’s cataloger John J. Ford attempted to acquire the other two notes from the cut sheet (the $2 and $3) also, but was unsuccessful. The $2 and $3 bills depicted here (ex-Almanzar) were most kindly supplied by their owner, a very dedicted Latin American collector from the Dominican Republic. They also have the Wheeler & Beale imprint. They are beige in color, one having a slight discoloration as from a burn. The bills are the only examples known, at present, to me. These are likely the bottom two notes from the cut sheet owned by Old Tom Morris that John J. Ford could not obtain. We doubt that any were placed into circulation, and no mention has even been made of them in the material that we have reviewed. One possible culprit for the demise of the short-lived CASNC could have been the owners of the Panama Railroad, messrs. Aspinwall, Stephens, Chancey and Howland, who were “principals at interest” also of the Pacific Mail Steamship.15 With the clamor of passage to California and good profits, the field did attract many competitors. These threats to the monopoly of the mail compa- nies were met by outright buying out the competition or by lowering rates to ruinous levels. This was the time of the famous “robber barons.” Commodore Vanderbilt was an exception as he had the wherewithal with which to compete, and he was no slouch either. He eventually “persuaded” with a rather attractive monthly “bonus” to leave things be.16 Otis, in his book, Illustrated History of the Panama Railroad, published in 186117 states: “Source of Business . . . Central America . . . population 2,000,000 Left: J. Roy Pennell (SPMC #8) owned all four denominations of the Central American Steam Navigation Co. bills with the printer’s imprint of Wheeler & Beale, NY. The notes had come from a cut sheet previously owned by BEP engraver Thomas F. Morris. Right: John J. Ford (SPMC #278) acquired the One Dollar/Un Pesos note in 1975, and the Half Dollar/Medio Pesos note two years later. He also attempted to acquire the $2 and $3 notes, but they were purchased by a Dominican collector through Almanzars. *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 294 Paper Money • July/August 2010 • Whole No. 268 295 . . . value of trade . . . exceeds $60,000,000 per annum.” Rather hefty number for the times. It is also a fact that in 1856, barely a year and a half after the CASNC ceased operations, the Panama Railroad “organized a line of steam communica- tion with all the ports from Panama to San Jose de Guatemala.18 The line was entitled “Central American Steam Ship Company.” Otis further states: “In 1858 the business over the road from the South and Central American States exceeded in value nine times the freighting business of California via the Ithmus.”19 Curiously, Captian Thomas or Capt. Tom, as he was known, returned to California and eventually to the Frazier River, British Columbia,20 where he continued to practice his craft. However anytime the Pacific Mail or any sub- sidiary went into a new route, on the Pacific Northwest, Capt. Tom and his fami- ly were right there in the thick of things, competing and knocking heads with a vengeance.21, 22 In San Francisco, the Wrights resided at 2622 Bush Street. Capt. Tom passed away November 18, 1895, at his home in Seattle, WA.23 So ends a minor chapter of the Panama Route, in what can now be con- sidered a slight footnote. References 1. Also, correspondence with The New-York Historical Society identified Wheeler, Beale & Co., 80 Wall Street, as “importers of stationery.” 2. www.maritimeheritage.org 3. Wright, F.W. Lewis Dryden’s Maritime History of the Pacific Northwest. Portland, OR: Lewis Dryden Printing Co., 1895. According to this source, “Capt. Thomas Wright was one of the three sons of the celebrated John T. Wright. . . . Captain Tom was born in New York in 1828 and began his career as a sailor. . . . In 1849 he came to the Pacific Coast in the Steamer Top: Central American Steam Navigation Co. Two Dollars/Dos Pesos unissued remainder with imprint, Pick Colombia S889. (Illustration courtesy private collec- tion, ex-Almanzars, J. Roy Pennell, Thomas F. Morris, Edward Eberstadt) Above: Central American Steam Navigation Co. Three Dollars/Tres Pesos unissued remainder with imprint, Pick Colombia S890. (Illustration courtesy private collec- tion, ex-Almanzars, J. Roy Pennell, Thomas F. Morris, Edward Eberstadt) *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 295 Paper Money • July/August 2010 • Whole No. 268296 West Point. . . . At Panama, the Captain discharged and Captain Tom brought her the remainder of the distance.” 4. I wrote all the Archives of all the Central American nations. Only El Salvador and Costa Rica were kind enough to answer and supplied support- ing evidence. Gaceta del Salvator, January 20, 1853, Archivo General de la Nacion, Palacio Nacional de El Salvador, San Salvador. 5. Fondo Congreso, No. 7314, Fecha 1853, Junio-Julio, Decreto No. 16, 16 Febrero, 1853, Direccion General Archivo Nacional Apartado 41-2020, Zapote, Costa Rica. 6. Daily Panama Star, July 27, 1853. 7. Daily Panama Star, September 27, 1853. 8. Daily Alta California, October 1, 1853. 9. Daily Panama Star, November 30, 1853. 10. Daily Panama Star, January 4, 1854. 11. La Estrella de Panama, February 5, 1854. 12. Daily Alta California, February 27, 1854. 13. Daily Star & Herald, May 26, 1854. 14. Kemble, John Haskell. The Panama Route, 1848-1869. Berkeley, CA: University of California Press, 1943. 15. Kemble, John Haskell. “The Panama Route to the Pacific Coast, 1848- 1869,” The Pacific Historical Review, vol. VII no. 1 (March 1938). Glendale, CA: The Arthur H. Clarke Co. 16. ibid. 17. Otis, F.N., M.D. Illustrated History of the Panama Railroad. Pasadena, CA: Socio-technical Books, 1971. 18. ibid. 19. ibid. 20. Frederic, William Howay. “The Early History of the Frazier River Mines,” Archives of the British Columbia, Memoir No. VI, Charles F. Bonfield, printer, 1929. 21, Wright, p. 66. 22. Newell, Gordon and Joe Williamson. Pacific Coastal Lines. Seattle: Superior Publishing Co., 1959. 23. San Francisco Chronicle, November 19, 1895. v Volunteers wanted--you’ve been waiting, here’s your chance! The American Numismatic Association (ANA) offers tables to coin and paper money club and hobby organizations at its shows. They require two clubs per table. The Society of Paper Money Collectors (SPMC) and the Early American Coppers Club are sharing a table this August 2010 in Boston. Basically, we have some membership information, brochures, applications for membership at the table and talk with people as they come by – it is advertising and recruiting. We are accepting signups in one hour increments from 9:30 a.m. to 5:30 p.m. EDT Wednesday August 11, through Saturday August 14. If you are attending ANA and want to take a break, rest your feet, talk with people about SPMC, this is a great way to do it and give back to the Society too! Please contact: Pierre Fricke, P.O. Box 52514, Atlanta, GA 30355 or email – pfricke@attglobal.net if interested. v *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 296 Paper Money • July/August 2010 • Whole No. 268 297 Celebrating the Smile Mona Lisa Note Popular READERS OF THIS COLUMN KNOW THAT Ilike to acknowledge anniversaries as they relate to paper money; here were a few for 2003 that I noted- when this column was first printed back then. Born in 1428, 2003 marked the 575th anniversary of the birth of Giovanni Bellini. This Italian composer was mentioned in a column about musicians. So, I will only say for those who did not read that column, a portrait of Bellini can be found on an Italian 5000-lire bank note, P111. J o h a n n Gutenberg with financial backing from Johann Fust printed a 42-line bible in 1453, 550 years ago in 2003. J o h a n n Gutenberg is a name familiar to you, however, based on recent research of two scholars, history must be rewritten. In 2001 two Princeton researchers, Paul Needham and Blaise Agueray y Arcas, reported discrepancies between individual letters in printed work of Gutenberg; they concluded that he may have used an alternative method of printing. Until now Gutenberg had been credited as the first to print from movable type in Europe ca. 1452. Gutenberg “may have used an earli- er technology that involves casting letters in molds of sand—molds that could be reused…” (P. Spencer, “Scholars press for printing clues,” Princeton Weekly Bulletin, 12 Feb. 2001, vol. 90, no. 16). Images of Gutenberg, Peter Schoeffer and Fust appear on U.S. obsolete bank notes for Pittsfield Bank, MA $50; Safety Fund Bank, Boston, MA $3; Commercial Bank of Troy, NY $3; East River Bank, NYC $3; and Bank of Yanceyville, NC $20. Fust, a creditor, took over Gutenberg’s shop and made Schoeffer, Gutenberg’s most experienced printer, his chief printer. (Fust is most often incorrectly spelled as Faust. The latter 16th century literary figure sold his soul to the devil for youth and knowledge. To Gutenberg, Fust, a creditor, probably appeared as the devil.) The year 2003 also marked the 500th anniversary of the painting of the Mona Lisa by Leonardo da Vinci. Leonardo was the subject of an earlier column too. An engraving of the Mona Lisa was used on a 20-colones bank note for Costa Rica, P167. Mentioning the use of this famous painting as an engraving allows me to acknowledge the engraver, John Augustus Charles Harrison. J.A.C. Harrison is remembered, as one of England’s most respected engravers and designers. He was born on August 5, 1872, and died in January 1955. There were six engravers with the name Harrison, all came to America to work except Samuel. The father of J.A.C. Harrison was also named Samuel, the son of John Harrison. At 13 J.A.C. Harrison began his studies with his father and attended art classes in Birmingham. At 17 or 18 he joined Waterlow Brothers and Leighton, later called Waterlow & Sons. George U. Rose, who left the U.S. Bureau of Engraving and Printing to become department manager at Waterlow & Sons, r e c o g n i z e d Harrison’s superior talent. Rose said that it would be too dan- gerous not to hire Harrison. This implied that a com- peting company would certainly hire him, By 1900 Harrison chose to work as a free-lance engraver and executed some designs for Perkins, Bacon & Co. He had an offer to join American Bank Note Co. but decided to return to Waterlow & Sons as chief por- trait engraver. Joseph Keen who trained under Harrison said his teacher was an inspiration and set a standard for other engravers. Harrison, who was also recognized for his oil painting and watercolors, engraved bank notes and postage stamps for more than 30 countries. The life and work of J.A.C. Harrison occupies four pages in my book The International Engraver’s Line. The Mona Lisa note is a popular one and conse- quently rather expensive. However, portraits of K. Havlicek and M. Stefanik on notes for Czechoslovakia, P61 and P62 are good examples of Harrison’s work that should cost less than $20 each. Reprinted with permission from Coin World, June 23, 2003 v A Primer for Col lec tors BY GENE HESSLER THE BUCK Starts Here *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 297 I SHOULD BE CALLING HIM MR. LLOYD, BUT FORdecades I’ve been calling him Bob. The world knows him as Robert H. [Hepworth] Lloyd, a venerable personage from the mysts of the hobby’s past who blazed a trail for collectors to follow. Bob provided a genuine link for the generation of pre- sent day collectors to their hobby forefathers and grandfathers. Robert H. Lloyd, SPMC Honorary Life Member #14, passed away October 20, 2009, as I belatedly mentioned all to briefly in my “Editor’s Notes” column in the last issue of Paper Money. “It is always a loss for us when a distinguished and long time member leaves us,” SPMC President Mark Anderson noted. Last issue, I promised to pay him more formal tribute when I could collect my thoughts. Mr. Lloyd was born May 18, 1906, at home in a Buffalo, NY house that is still there. Blessed with the cool suave looks of a Milburn Drysdale, he dated Samuel Brown’s daughter. Yes, this Samuel Brown IS THE same Samuel Brown who once owned alll five of the 1913 Liberty nickels. Buffalo was a hot bed of numismatics early in the 20th Century. In fact in 1901, the American Numismatic Association had convened its annual convention there in the office of Dr. B.P. Wright. At the meeting the host became ANA President. At age 20, Bob picked up a copy of The Numismatist at his local library and became enthralled. Distinguished obsolete currency cataloger D.C. Wismer and fledgling dealer Moritz Wormser (both early inductees into the ANA Hall of Fame) proposed Bob for ANA membership, and in 1926 he became ANA #3024. His membership cost a buck; subscription to the magazine was $2 bucks extra at the time!! Shortly thereafter, on May 13, 1927, the Buffalo, NY Numismatic Association was formed. Bob quickly joined and attended meetings when home from college at the University of Michigan. In 1929 Lloyd was elected BNA Secretary. Bob commenced his professional life as a cashier in bro- kerage firms for six years, so he had the opportunity to handle cash day-in and day-out. In June 1927, he published his first short contribution in The Numismatist. Titled “Making the Cheese Snappier,” the article was on U.S. coinage and was followed by more than 50 additional articles over the years. However, Bob’s real passion was for paper money, and he became a frequent exhibitor. His first paper money article of substance was a response to friend and mentor D.C. Wismer’s “Descriptive List of Obsolete Paper Money,” which was a con- tinuing monthly column in the ANA periodical that had been running for five years by then. Lloyd was reading the May, 1927, installment when he realized that he had notes related to Mt. Clemens, MI obsoletes described by Wismer. On July 7, 1927. he sent Editor Frank Duffield “The Bank of Tonawanda [NY]” about a wildcat note from the Niagara Frontier that was actually a rare remainder note on the broken Bank of Macomb County, Mt. Clemens, MI (north of Detroit), that had been printed to send off into the hinter- land (payable in western New York) far away from the issuer. Lloyd’s collection of federal currency was launched on August 21, 1928, when he purchased 19 highgrade low- denomination type notes from legendary paper money dealer George H. Blake of Rochester, NY. Lloyd spent $95.75 for the five Extra Fine and 14 Uncirculated bills. These same notes book today (according to the 18th edition of Friedberg) at $43,090! In an era before illustrated paper money catalogs, Lloyd began to to sell photographic reproductions of the rare notes through ads in The Numismatist so collectors who could not afford the real thing could see what they were missing. On Oct. 18, 1927, ANA activist Robert H. Lloyd pleaded for standardization of coin grading. His call falls on deaf ears. A half century later, ANA would act of Bob’s proposal belated- ly in 1977 when Virgil Hancock and Abe Kosoff pushed the association to adopt and publish its official grading standards. In 1928 at the Rochester ANA convention, Bob was named chair of a committee “charged with establishing stan- dards for the attribution of coins in both public and private sales,” according to former ANA historian David Sklow. On Aug. 22, 1929, ANA activist Robert H. Lloyd report- ed on the need for uniform coin grading standards; he also recommended to the Board that the following year’s ANA convention be held in his hometown, Buffalo. Due in large measure to Lloyd’s enthusiasm and the reservoir of local numismatic talent available, the ANA show did come back to Buffalo in 1930. Lloyd served on five con- vention committees and chaired the Papers Committee. On Aug. 23, 1930, Albert A. Grinnell and Robert H. Lloyd exhibited paper money at Buffalo, NY ANA convention. Only 24-years-old, the activist and exuberant collector was also nominated for a seat on the ANA board. Bob was elected to that post on August 27, 1930. A small copper medal of that period issued in 1932 marks Lloyd’s election to President of the Buffalo Numismatic Assn. Serving with him were legendary numismatists N.S. Hopkins as Treasurer and Stuart Mosher as Secretary. Bob then became a high school teacher for 30 years, fol- lowed by being director of adult education for 16 years. He had been retired for the four decades at the time of his death. On July 15 1935, he had married his wife, Gladys Hepworth at the home of a cousin in Port Chester, NY. Paper Money • July/August 2010 • Whole No. 268298 Robert H. Lloyd pioneered a long trail for collectors to follow 1906-2009; A remembrance By Fred Reed Bob Lloyd in 1939 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 298 Gladys also lived past the century mark, and the couple cele- brated more than seven decades together. They were blessed by a daughter, Martha, and a son David. According to research by ANA historian Sklow, “in 1942 Lloyd was appointed Director of Coin Purchases for the Moritz Wormser Memorial Loan Exhibit at the Smithsonian I n s t i t u t i o n . ” Formation of the ANA‘s numismatic collection began in the 1920s with the estab- lishment of ANA’s Moritz Wormser Memorial Loan Exhibit at the S m i t h s o n i a n Institution. On Aug. 23, 1947, the ANA annual con- vention returned to Buffalo, and Lloyd served on four conven- tion committees. “He served on many ANA convention commit- tees over the next 20 years. . . During the 1940s and 1950s, it was difficult to open an issue of The Numismatist without seeing something by (or about) this man,” Sklow wrote, when Lloyd received his 75th year membership award from the ANA in 2001. For example, in The Numismatist in 1939, Lloyd report- ed on silver Wilson dollars medal struck to celebrate the open- ing of the Manila Mint in 1920 with a portrait of Woodrow Wilson, and a reverse depicting the sheltering arm of a mater- nal U.S.A. and its Pacific dependency. According to Bob, the Wilson medals “remained available at issue price, $1 for silver or 50 cents for bronze until recently.” “Recently?” In 1939 my dad hadn’t even met my mother yet, and Bob Lloyd had been a big time participant in our hobby for more than a decade by then. Most of his articles, however, were on small size U.S. notes, which he clearly loved. Bob’s research was really pio- neering work that helped launch the collecting of contempo- rary currency in the 1930s and 1940s. I have corresponded with Bob Lloyd for more than 30 years. As I mentioned in the last issue, our initial “meeting” occurred after I had written an article for Coin World in the mid-1970s on Eastman National Business College scrip (a life- long collecting interest of mine), and Bob wrote me that his father, Morris D. Lloyd, had graduated from Eastman. What followed was an interesting series of correspon- dence spanning decades. Included were many generous gifts of personal Eastman mementoes that he had inherited from his father that Bob gave to me. Bob also gave me lots of his personal files on topics he thought would interest me over the years. Those are specially treasured, and the practice might be a good idea for other long time hobbyists to consider before they pass to their own rewards. Who could benefit from this essentially worthless stuff that my heirs will probably toss after my death, we might all ask ourselves? Lloyd was way ahead of the curve in discovering the joys of paper money. His research did not just appear in The Numismatist. He also wrote for Lee Hewitt’s Numismatic Scrapbook and Wayte Raymonds’s Coin Collector’s Journal on U.S. paper money before there was a lot of organized interest in this genre. His “A type set of $1.00 and $2.00 United States currency notes,” was reprinted as a 28-page booklet from the Scrapbook. His “National Bank Notes, Federal Reserve Bank Notes, Federal Reserve Notes, 1928-1950” was reprinted as a 16-page pamphlet from the Journal. Dozens of other paper money articles by Lloyd are cataloged in the Numismatic Indexing Project. More than three dozen of Lloyd’s articles have appeared in the pages of Paper Money, covering topics as diverse as large and small size Silver Certificates, block numbers, college cur- rency, Canadian currency, commission scrip and Gold Certificates. Many of these are still very pertinant to our enjoyment of the hobby, and all are listed on the cumulative Paper Money index which can be found on our website, www.spmc.org. In 1964 when pioneering paper money dealer William P. Donlon compiled his Catalog of United States Small Size Paper Money, additional material by Robert H. Lloyd and Lee F. Hewitt also appeared in it and successive editions. Another U.S. paper money cata- loger whom Lloyd helped was Neil Shafer. “I have some good recollections of Bob Lloyd, recalling our discussing the possibilities of the existence of small size Gold Certificates dated 1928-A during the time when my U.S. currency book was a new reference. He was always ready to assist in any way he could, and was as I recall an excellent researcher.” In 1991 Lloyd assisted in cutting the ANA Centennnial birthday cake at its convention in Chicago. Assisting were Association President Kenneth L. Hallenbeck, and William Heath Race, grandson of Dr. George F. Heath, ANA founder. In 2001 Lloyd received a silver ANA Medal of Merit to honor his numerous years of service to the association and promotion of the hobby in a ceremony August 11th in Atlanta. Robert H. Lloyd became the first ANA member to achieve 75 continuous years of membership. At the time Lloyd had been a member of the ANA Numismatic Hall of Fame Advisory Board for a number of years. Lloyd had other interests besides numismatics. He was a member of the national Railway Historical Society, and also the City Historian of his hometown, North Tonawanda, NY. These interests coincided when he penned a monograph Trolley Days in the Tonawandas for the local historical society. It was published in November, 1969. Lloyd not only had fond remembrances of the “trolley days” of his youth. His father Morris had been the purchasing agent for one of the lines, and Bob had his daybook and papers to supplement other primary source material. He dedicated the 48-page booklet to his mother Lillian “who talked local history to her children.” What a wonderful legacy to hand down. Thanks for talk- ing paper money history, Bob, for those many, many years. v Paper Money • July/August 2010 • Whole No. 268 299 Bob Lloyd at age 92 in 1997 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 299 Paper Money • July/August 2010 • Whole No. 268300 Dear Fellow Paper Money Lovers: This month I feel like writing of two seemingly [to me only perhaps] related themes. One is a report from the recent past; one is a look forward. I will do my best to weave both into one reasonably cohesive message. And I do so with some trepidation, because I know that the vast majority of our Society’s members are members because of their interest, pri- marily, in United States paper money [of all sorts] and the associated history the paper money reflects. However, I also know there are many of us, myself included, who also have a few interests in other parts of the world. Since we in the United States and in our neighbor to the north live in [rela- tively] young countries, our personal connection to our immi- grant heritage is frequently only a generation or two old. So, for those of us with that link who are interested, an interest in a foreign country and perhaps its paper issues are a meaningful collecting option. But regardless of one’s genealogy, there are a great many motivations foreign paper collectors have found. While some might argue it, the Society’s journal does take a global view of the world of collecting paper money, and we do enjoy receiving and publishing articles on foreign paper. And while it was a few issues back, several of our larger, special issues of the magazine focused on foreign currency. However, it also goes without saying that if you are interested in foreign currency collecting, there is a terrific organization, the International Bank Note Society, which has a decided focus on non-US currency. However, the IBNS is in many ways sur- prisingly akin to the SPMC. It is comparable in overall mem- bership size, it publishes its own fine journal, and generally holds its major meetings in conjunction with shows in various spots around the world. The IBNS differs somewhat from ourselves in that it has an extensive group of local chapters, generally organized regionally. Coincidentally, and to the point of this month’s column, the two organizations share one other thing – both were founded the same year – in 1961. This means they will both celebrate their 50th anniversaries in 2011. As a result of this interesting coincidence, the two organi- zations have begun some very tentative but continuing discus- sions as to how we might celebrate 2011 in ways that are mutually suitable, but most importantly, valuable and enjoy- able for our memberships. Peter Symes, the current IBNS President, is an energetic and committed collector, researcher, writer and advocate for his organization. It has been my plea- sure to meet with him both in Valkenburg [the home of the “Maastricht Show”] and in Memphis. As part of those exchanges and subsequent e-mails back and forth, we have begun to chat about 2011 and what the two organizations might do jointly, if anything. These chats led to the first formal discussion on the mat- ter, held last month in Valkenburg. Present were three IBNS board members, Tomas Augustsson, Ron Richardson, and Chris Zellweger, as well as Neil Shafer and your faithful corre- spondent representing the SPMC. Unfortunately, Peter was unable to make it to the spring Maastricht, but was acknowl- edged as being there in spirit. Despite his absence, over a pleasant dinner we had a relaxed but productive exchange of ideas, and the next evening, I was invited to the IBNS Board meeting as some of our discussions were “bounced” off the assembled board members. It would be unfair and premature to get into any detail whatsoever at this point, but suffice it to say that there is a generally optimistic tone in play, and since we do expect to see Peter at this coming Memphis, it is fair to expect both organizations to talk further at that point. Incidentally, any members as may have ideas for this collective or wish to participate going forward are very much encour- aged to contact me or their favorite SPMC officer. While we are on the topic of collecting paper money from other lands, one of the great and well known collectors of coins and I were chatting over a dinner at an ANA held sev- eral years ago. He being an individual who has bought and sold many of the great numismatic treasures, and who that very day had parted with a registry set passionately assembled, I commented that I found it impossible to part with any of the items from my pursuits. He made a comment I have never for- gotten – he said, quite matter-of-factly, “Well, Mark, you get to where you get.” By this I think he meant that even he, an individual of heady resources, reaches a point in this hobby where he cannot add to an advanced accumulation. His way of dealing with this conundrum is to move on and start off in a new direction. As collectors, if we are assiduous, we all run the risk of “getting to where we get.” We are all different, and therefore how we deal with that eventual challenge varies. If you have found yourself, be it for lack of additional acquisition opportu- nity, or some eventual limit on resources, or having completed your initial goal, pondering what to pursue next, I suggest you not exclude foreign paper as you ponder. As a U.S. and foreign paper money collector myself, I can only tell you that many of the aspects of what we love in U.S paper can be found in a sur- prising number of forms in other places. Whether it is the sheer appeal of banknote design, it is out there; if it is the issues borne of civil conflict, they are out there, and they back- drop dramatic stories that are the equal of those told by our Colonial and Confederate notes. If emergencies or necessity money are your bag, there is no lack of artifacts. If you are intrigued by the economics and history that produced our rich obsolete note and National Bank Note heritages, you will find 19th and 20th century private/semi-private issues in so many other contexts. Just as it is hard to visit Memphis and not be tempted by an “extension” on to the collecting house, a visit to Valkenburg can do the same. And while not everybody has a trip to the Netherlands on their agenda, a visit to the world paper money inventories at Memphis or at your next favorite show is not to be missed if you have not let yourself be tempt- ed before. While it may be possible to “collect too much,” that is probably not as bad as the alternative. So, looking forward to seeing as many of you at Memphis and at the Society breakfast as possible, with an eye to our 50th anniversary in the coming year, here’s to safe travels to and from Memphis and wherever your 2010 summer plans take you. Sincerely, The President’s Column Mark v *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 300 Paper Money • July/August 2010 • Whole No. 268 301 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) ______________________________ ___________________________________ ___________________________________ ___________________________________ $$ 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) ERROR NOTES AND OTHER SMALL-SIZE U.S. currency. Buy, sell, trade my duplicates for yours. - MrCashMan@hotmail.com (276) 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) 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) WANTED TO BUY: Small Change Notes Dated March 12, 1792, Which Were Issued by the Union Society Located In Smithtown, New York. Anthony Bongiovanni, Box 458, Rocky Point, NY 11778 (A) FREE WORD ADS TO AUTHORS; apply to fred@spmc.org (274) 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) *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 301 Paper Money • July/August 2010 • Whole No. 268302 A WHILE BACK FRACTIONAL DEALER AND FRIEND ROB Kravitz and I were discussing 4th issue Lincolns (Fr-1374s) and their Treasury Seal face plate numbers. While continuing the research on inverted and mirrored plate numbers, I was commenting to Rob about not finding any examples on 4th issue Lincolns. Inverted/Mirrored seal plate numbers show up on other 4th issue denominations: 10¢, 15¢ and 25¢…but not on any 50¢ Lincolns (just regular plate numbers). Rob indicated that he was keeping a list of Treasury Seal plate numbers he’s found on Lincoln faces as was I. We compared notes and it soon became obvious that, aside from a brief mention in Milton Friedberg’s Encyclopedia of United States Fractional and Postal Currency and D.W. Valentine’s reference, United States Fractional Currency, no deeper plate number research has been done for the Lincoln fractional. Knowing that we have frequently observed Treasury Seal plate numbers on Lincolns coupled with the amount of available auction archive data, gave us hope that a good research article could be accomplished. We had high expectations, but the results were far better then imagined. Research By observing 4,000+ Fourth Issue notes (via actual notes, high resolution scans, auction catalogs, websites, etc.) we have been able to identify a near com- plete sequence of Lincoln Treasury Seal face plate numbers. While current BEP records are complete for the 2nd and 3rd fractional issues, no complete (or near complete in this instance) record of any 4th issue Treasury Seal plate numbers existed until now. Whatever records existed were believed to be lost in a fire at the BEP. In the 1970s Martin Gengerke was able to locate a ledger with the complete listing of the 2nd and 3rd issues, but the 4th issue was incomplete. Information on the 2nd and 3rd series was available in Martin’s article in Paper Money (1972) and my follow-up article on inverted and mirrored fractional plate numbers which reprinted Martin’s research in Paper Money Jan/Feb 2003. We can now add to the BEP records with a near complete accounting of 4th issue Lincoln Treasury Seal plate numbers. That is only one of three plates needed to produce the Lincoln fractional, but significant nonetheless. The Lincoln note was printed in three separate stages using an face subject plate, face seal plate and back plate. 4th Issue Seal Plate Numbers on Lincoln Fractional Notes by Rick Melamed 1 2 3 4 5 6 7 8 9 10 11 12 13 ? ? 16 17 18 19 20 21 22 23 25 ? 26 27 28 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 302 Paper Money • July/August 2010 • Whole No. 268 303 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 303 Paper Money • July/August 2010 • Whole No. 268304 Between Rob Kravitz, the D.W. Valentine reference, Milt Friedberg’s encyclope- dia and myself, the following are the combined observed Treasury Seal plate numbers on the Lincoln fractional: 1-13, 16-23, 25-28 (missing 14, 15, 24) That’s 25 out of a possible 28 (89%) observed….though we only have scans of 21 different examples to date (see illustrations following). We have observed more than 80 different Lincoln fractionals with Treasury Seal plate numbers and the highest observed number on a Lincoln is 28. It is our opinion that 28 is the highest Treasury Seal plate number used. The Lincoln fractional had a relatively short run of six months (from July to December 1869). If anyone has information on any Lincoln fractional with a seal plate number not listed, please advise (email: riconio@yahoo.com). It will be duly noted and we will add it to the census. A high resolution scan would also be appreciated. History At this time, please allow me a moment to discuss the origins of the Lincoln fractional. Because of the widespread counterfeiting of the previous series of fractionals, 4th issue notes were created. They included a more sophisti- cated manufacturing process containing imbedded fibers in the note, more ornate engraving and the inclusion of a Treasury Department seal. From an aesthetic point of view, the note has a magnificent portrait of our 16th President. Engraved by Scottish born Charles Burt in 1869, it shows a three-quarter portrait with Lincoln’s head slightly tilted to the right and his eyes are looking towards the horizon. The entire note is well balanced with a large red seal to the left and Lincoln’s portrait on the right. The depiction is strong and inspiring; it is arguably one of the finest portraits on any issued Lincoln note. It is generally believed that Lincoln subject faces had 2 plate numbers and most likely a single back plate number. (1) The face plate (which contains the 12 Lincoln subjects) was manufac- tured by the American Bank Note Company. The corresponding plate number was likely positioned in the selvedge and no known examples exist. (2) The Treasury Seal face plate contained just the Treasury Seals and the corresponding plate number. The numbers that we see fairly regularly on Lincolns are from the seal plate. These plate numbers are the same red/reddish brown color as the seal. It is interesting to observe that whether a brown seal or red seal . . . the colors invariably match. *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 304 305Paper Money • July/August 2010 • Whole No. 268 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 305 Paper Money • July/August 2010 • Whole No. 268306 (3) The back plate was engraved at the National Bank Note Company. The sheet plate number, if it existed, was most likely engraved into the selvedge. Like the face sheet plate number, there are no known examples of a Lincoln with a back plate number. Since the only known surviving sheet had the selvedge trimmed off, there are no known examples of a Lincoln with a sheet or back plate number. Lincoln notes were printed in sheets of 12 (3 across and 4 down). The one existing Lincoln sheet was sold in May 2004 (Lot 1007 Ford Sale – formerly in F.C.C. Boyd’s collection). It sold for $39,000 plus the buyer’s commission. The sheet had plate number 9 printed on the face and it is located on the 3rd note down in the far left column. Observations After observing many Lincoln notes with Treasury Seal plate numbers, the fol- lowing has been observed and worth noting: • The seal plate number was always engraved onto the plate so when print- ed it appeared on a vertical axis on or very near the inside of Lincoln’s left lapel. It may deviate to the left/right a couple of millimeters, but always on the same vertical axis. Seal plate numbers always appear in the shaded region, above and below the arrows, as shown in the photo below. Above is a rare Lincoln Proof without the Treasury Seal. Seal plate numbers appear in the shaded area above and below the arrows) • Specific seal plate numbers were always positioned in the same area. For example: plate #1 is always located on the bottom perimeter border, plate #2 on the left lapel, plate #3 always on Lincoln’s shirt inside his left lapel, plate #4 on the top margin, etc. • Several plate #5s and its corresponding seal have been observed in red- dish-brown ink. An example of plate #5 has been observed in red ink as well. Further, no other seal plate number has been found in this reddish- brown ink. This could be evidence that the “brown seal” notes were not a victim of oxidation when plate #5 was used; perhaps too much brown dye was mixed in the ink for a portion of the sheet run. This is only speculation of course. P L A T E # L O C A T I O N Seal Plate #7 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 306 Paper Money • July/August 2010 • Whole No. 268 307 Seal Plate #3 Seal Plate #4 Seal Plate #1 Red Seal Plate #5 Brown Seal Plate #5Enlarged Seal Plate #2 Seal Plate #6 Seal Plate #9 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 307 Paper Money • July/August 2010 • Whole No. 268308 Seal Plate #16 Seal Plate #18 Seal Plate #19 Seal Plate #11 Seal Plate #12 Seal Plate #13 Seal Plate #17 Seal Plate #20 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 308 Paper Money • July/August 2010 • Whole No. 268 309 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 309 Paper Money • July/August 2010 • Whole No. 268310 • Some of the seal plate numbers appear within the subject field as well as the margins. Why weren’t the seal plate numbers printed so they just appear in the selvedge or the margin? It is also interesting to note that the position of the Lincoln seal plate number was confined to a specific vertical axis, while other lower value 4th issue denominations (10¢, 15¢ and 25¢ notes) seal plate numbers were positioned somewhat more ran- domly. (For example, I have observed 10¢ 4th issue note seal plate numbers positioned as follows: upper right margin corner; lower right margin corner; on the top and bottom left margin (between 3-12 mil- limeters in from the left); and within the subject field, bottom-left inside the border.) • Why are there no seal plate numbers observed on any Stanton (Fr- 1376) or Dexter (Fr-1379) 4th issue 50¢ fractional notes? I have viewed hundreds of examples and not a single one has a seal plate number. Perhaps the seal plate number was engraved in the selvedge or no seal plate number was used on the Stanton or Dexter face. • Was the position of the seal plate number on the Lincoln sheet consis- tently located, as the unique Boyd/Ford example, in the 3rd note down in the first column? • There are no known examples of mirrored or inverted plate numbers on Lincolns, which is atypical since they show up from time to time on 4th issue 10¢, 15¢ and 25¢ denominations (for more information regarding inverted and mirrored plate numbers, reference my articles in Paper Money Jan/Feb 2003 and Jan/Feb 2006). • Finally, while we now have a fairly complete accounting of seal plate numbers were any other plates produced higher than 28? It seems doubtful considering no higher numbers have been observed and the relatively short run that the Lincoln was in production (six months). Seal Plate #23 Seal Plate #21 Seal Plate #22 Seal Plate #26 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 310 Paper Money • July/August 2010 • Whole No. 268 311 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 311 Paper Money • July/August 2010 • Whole No. 268312 Valuations – What are they worth? At best only 1 out of 12 Lincoln notes can contain a Treasury Seal plate number. The ratio is higher because a certain quantity of notes would have had the plate number trimmed off. Historically, 4th issue plate number notes do not carry a premium…but shouldn’t they? Spinner and Justice notes (also printed in sheets of 12) have a singular note per sheet with the “1-a” designation. They carry a premium of 3X to 5X and even more in certain cases. With a best guess total population of Treasury Seal plate Lincoln notes at 100; these notes are scarce. Factor in only 28 seal plate numbers; it is safe to conclude some specific examples probably carry populations of only 1 or 2. In many (but not all) cases the auction- eers mention plate numbers; grading services never do. I think both parties should be diligent and designate plate numbers on the holders or in auction descriptions when they exist. They are part of the note, part of fractional history and deserve this recognition. Conclusion In conclusion, a near complete accounting of Lincoln Treasury Seal plate numbers is noteworthy; that it resurfaced 140 years after production ceased on the Lincoln is a combination of good archival records, good support among the frac- tional community and a little bit of luck. A very big thanks to Heritage Auctions. Their database of accessible high resolution scans is quite comprehensive. It’s a great tool for researchers and collector’s alike and aided me immensely in my research. Also a tip of the hat to Jerry Fochtman, Martin Gengerke, Fred Reed, Dave Treter, Steve Weiner and especially to Rob Kravitz. References Bowers and Merena Auction Archives, www.bowersandmerena.com. Bowers, Q. David. Whitman Encyclopedia of U.S. Paper Money, 2009 Currency Auctions of America. Milt Friedberg Auction, January 1997. Friedberg, Milton. The Encyclopedia of United States Fractional and Postal Currency, 1978. Gengerke, Martin. “Fractional Currency Plate Number Information,” Paper Money, vol. 11 no. 2 (Second Quarter 1972). Heritage Auction Archives, www.ha.com. Kravitz, Rob. A Collector’s Guide to Postage and Fractional Currency, 2003. Reed, Fred. Abraham Lincoln: The Image of His Greatness, 2009. Stack’s Auction Archives, www.stacks.com. Stack’s. John J. Ford Jr. Currency Auction – Part III, May 2004. Treter, David. “My Fractional Notes” website, http://uns0uled.com. Valentine, D.W. Fractional Currency of the United States, 1924. v Seal Plate #27 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 312 Paper Money • July/August 2010 • Whole No. 268 313 Dear Editor, Here are a few new paper money ideas I thought you might like. If you agree with them maybe you could pass them around to someone who has some influence. (designs are shown following) Sadly some people have such disdain for the $1 bill that they would like to see it eliminated. I say rather than eliminate the $1 bill, we (1) start using the $2 bills along with the $1 bill; and (2) we simply cut production by $50% and save money by adding the $3 and $4 denominations. If we make six $2 (Jefferson) bills for every 100 $1 dollar bills already being made, and six $3 bills with Sacagawea and five $4 bills with Martin Luther King, that will leave 50 $1 bills to still be made. When you get $3 in change, it won’t be three units of money, it could be one. The same for $4, one unit versus four units of money. There are five slots in the cash register. One each for the $1, $2, $3, $4 and $5 bills. Larger bills can be placed underneath the money tray: $10s to the left, then $20s and so forth. Or, the $2, $3 and $4 denominations could be placed under the money tray as long as merchants use the new bills to give back change. Our so-called friends in Europe are using 200-unit and 500- unit bills. It’s galling that a continent that gave up francs, marks, lira, etc., have something that we don’t. With inflation and the fear that a chashless society could someday exist allowing big brother to monitor one’s every purchase from a candy bar to personal items, it would be nice to have some bigger bills. We could have a $200 bill with Franklin D. Roosevelt/Iwo Jima, a $500 bill with Ronald Reagan and an eagle over the flag, and a $1,000 bill with John F. Kennedy and a beautiful eagle. We once had $500 and $1,000 bills. -- Wayne Pearson Here Are a Few Paper Money Design Ideas by Wayne Pearson *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 313 Paper Money • July/August 2010 • Whole No. 268314 Design proposed for new $1 Federal Reserve Note by Wayne Pearson Design proposed for new $2 Federal Reserve Note by Wayne Pearson *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 314 Paper Money • July/August 2010 • Whole No. 268 315 Design proposed for new $3 Federal Reserve Note by Wayne Pearson Design proposed for new $4 Federal Reserve Note by Wayne Pearson *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 315 Paper Money • July/August 2010 • Whole No. 268316 Design proposed for new $200 Federal Reserve Note by Wayne Pearson Design proposed for new $500 Federal Reserve Note by Wayne Pearson *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 316 Paper Money • July/August 2010 • Whole No. 268 317 Design proposed for new $1000 Federal Reserve Note by Wayne Pearson v Dear Fred, Please let all our members know that we hold membership meetings at many state and regional conventions, and often there is an educational presentation as well. If any of our members are presenting in any venue, be it local coin club, Rotary, men's group at church, please let us know. We can publicize the event on the web site even if we don’t know in time to get a notice into Paper Money. At the same time, if members wish to know what is happening in their area please have them send me their email addresses to oldpaper@yadtel.net and I'll be sure they know what's happening. Thanks, -- Judith Murphy SPMC Nat'l Director of Regional Activities Judith, The historic tour of the Civil War and Western and Atlantic Railroad sites spon- sored by SPMC during the recent 46th Georgia Numismatic Association convention was a great success. We got great coverage in both the Dalton Daily Citizen and the Chattanooga Times Free Press newspapers. We had ten people on the tour that was scheduled for two hours, but lasted nearly three hours because of all the questions and interest by the participants. A Dalton Daily Citizen reporter met the tour at General Cleburne's statue and interviewed SPMC member David Stevenson (shown at right next to a monument to the historic “General locomotive), who was the tour guide, and a number of the participants. Other participants included Mack Martin, Ed Jackson, Jim Lusk, Joel Rind (who joined SPMC as a result of the tour), Charles Coker, Chip Cutcliff, Carlotta Jordan, David Crenshaw, Brian Hunt and Dennis Schafluetzel. -- Dennis Schafluetzel Fred, Tell Wendell Wolka (answering an attendee’s question at left) I enjoyed his talk on Civil War paper money at the Central States Numismatic Society education forum April 10th at Branson, MO. Wendell has so much knowledge and a genuinely pleasing presenta- tion style. I’m sure the other 40 people attending the event were equally pleased. -- Wendell’s No. 1 fan v Out and about with SPMC members *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 317 Paper Money • July/August 2010 • Whole No. 268318 The Editor’s Notebook Fred L. Reed III fred@spmc.org Illustrations of collections I HAVE BEEN SCANNING THE OBSOLETE NOTESin my collection. Two reasons; first for security I can leave the notes in a safe deposit box and still enjoy looking at them without worrying about losing them. (I have actually lost notes in my home office; never to be seen again.) And second, to use the virtual notes for creating displays without handling the notes, thereby protecting their condition. (I don’t want them encapsulated; grading seems inappropriate for obsoletes, to me.) Some other, really neat, additional benefits have occurred from digitizing the notes. One in particular that I like is the ability to upsize the note so I can examine details, such as sig- natures, which often are illegible from looking at the actual note. The notes fill my 17 inch wide computer screen, show- ing all of their details. I can study minute engravings of vignettes and portraits. And I can zoom in on signature areas and often detect patterns that allow determination of the signer’s name, or what the hand written serial num- ber is. Once digitized and filed in the computer, I can e-mail color images of the note instantly or print copies of any size for use in displays. I can also put them on a disk to mail or use in a presentation. It allows me to share my collection with others and they to share their notes with me and thus fill in what would otherwise be blank spaces in my note albums. In fact, the copies are so good that I’m not sure I need the actual notes any more. There is still the thrill of finding rare notes and owning them, but no longer are they “must have at any cost” items. A color copy at 300 dpi fills the bill if the price appears unreasonable or is simply too expen- sive. Today’s computers, cameras and scanners are a million miles from how notes were illustrated as I remember from forty years ago. Often a note had to be described verbally in order to convey its appearance. Black and white photography had to be done with a photo stand in order to get an undis- torted picture, and unless professionally done, the image was often poor. Xerox quality was abysmal and rarely available. Auction catalogs had few black and white illustrations and they were usually small sized. Today’s paper auction catalogs are heavily illustrated in full color (and also very heavy). And the auction firms are often happy to e-mail you a digital image of a note, or notes, that you want to examine more closely. Note illustrating has come a long way to being easy to do and producing top quality. I wonder what the future holds. Will, one day, every existing currency note be illustrated in a searchable data base? Can it get any better? v What’s going on here? WE APOLOGIZE TO CORRESPONDENTS WHOhave attempted to reach Paper Money at our 75390 Post Office box in Dallas, Texas. We closed that box at the end of December and gave them a forwarding notice. The new Paper Money address was finally published in the March/April issue of PAPER MONEY, since the Jan/Feb issue had gone to the printer at the end of November. When no mail was forwarded for several months, I went back and inquired. Recently I got a pile of forwarded mail dated 04/21/10 (see attached photo for a portion of that mail.) Letters in that lot were postmarked originally from early January through April. I believe we have worked through that backlog of mail now. If you have attempted to contact Paper Money via U.S. Mail in the last several months, and have not received a response of some kind please be advised that our new mailing address is P.O. Box 118162, Carrollton, TX 75011-8162. Mail there, or emails to the editor at fred@spmc.org are always welcome. v It occurs to me... Steve Whitfield *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 318 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 • July/August 2010 • Whole No. 268 319 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 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 319 Paper Money • July/August 2010 • Whole No. 268320 *July/Aug 2010 Paper Money 8/9/11 11:46 AM Page 320 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA • Hosts the annual National 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 July-August cover 8/10/11 5:50 AM Page 3 Receive a free copy of a catalog from any Heritage category. Register online at HA.com/SPMC18565 or call 866-835-3243 and mention reference SPMC18565. MA LICENSES: HERITAGE NUMISMATIC AUCTIONS, INC. 03016; SAM FOOSE 03015; ROBERT KORVER 03014; ANDREA VOSS 03019; MICHAEL J. SADLER 03021; BOB MERRILL 03022. FL LICENSES: HERITAGE NUMISMATIC AUCTIONS, INC.: AB665; CURRENCY AUCTIONS OF AMERICA: AB2218; FL AUCTIONEER LICENSES: SAMUEL FOOSE AU3244; ROBERT KORVER AU2916; MIKE SADLER AU3795. IL AUCTIONEER LICENSE: ROBERT KORVER 441001421; MIKE SADLER 441001478; SAMUEL FOOSE 441001482. This auction subject to a 15% buyer's premium. 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 IGN AT UR E ® AUC T I O N HERITAGE HAS SOMETHING FOR EVERYONE Whether you are looking to add items to your collection in 2010 or perhaps sell part or all of your collection, Heritage is here to assist you. In addition to our weekly Internet Currency Auctions, we will also be conducting the following Signature® Auctions: 2010 September Signature ANA Auction #PTUPO
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 HA.com Steve Ivy Jim Halperin Greg Rohan Leo Frese Warren Tucker Todd Imhof 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 HILLS | NEW YORK | PARIS | GENE VA July-August cover 8/10/11 5:50 AM Page 4