v7i, '44A, ir• kiossy, ilenee't '4' by /he' 5f,,,,e,e4N -17*, ijKlY1,, •:.r (11;4417k /item,heele/de//,///0 ,00i,1X444,er Si,gitatad rwaiked 4,1dy fieeetelherime/e/4,se6i$7.41,44.4e. . 41: 1411134—: 7CV:7-7-4; ' 1*/ 41' e: / 1.7 COLLECTING CONFEDERATE PAPER MONEY \Complac and Fully Illustrated Guide :It onf,h-ratc No, TIpes and Varintica (SNINTH ESTABLISHED 1880 Stephen Goldsmith Past President Indispensible to Anyone Who Collects Confederate Paper Money! Collecting Confederate Paper Money By Pierre Fricke, Published by R.M. Smythe & Co. • Over 700 pages, and over 500 illustrations! • Criswell major type numbers retained. New variety reference numbers added. • Latest Price information on key rarities. • Detailed photos make it easy to identify rare varieties. • Up to date rarity ratings for all major types and varieties. • Insightful discussions of rare varieties, how they came about, and how they were discovered. • Full color photos of all 72 major types, and color variations. • Top ten condition census infor- mation includes serial numbers, grades and provenance. • Dozens of previously unknown or unlisted varieties are included. • Latest information about the number of notes issued of each type and variety where known. • Illustrated grading guide. To order your copy now, call Marie Alberti or email us today! Dealer inquiries invited. $49.95 $5 possta4gef & hahndldindgi .for tlhbe firstbook , "Pierre Fricke's new book on CSA currency is a great addition to my library on paper money, and it will be a useful and welcome volume for anyone interested in this fascinating section of numismatic Americana. Plate and printing varieties, rarity, and collecting suggestions are up-to-date and very useful. I highly recommend this book." —Q. David Bowers, Numismatic historian and author Wolfeboro, NH "Mr. Fricke's work, coupled with unparalleled data compiled by the late Douglas B. Ball, Ph. D., represents the most comprehensive, informa- tive and sorely needed reference relative to CSA paper money ever assembled. This book takes the collecting of CSA paper money to an entire- ly new, lofty level and is a must have for every- one—from the beginning collector to the most advanced. Obscure, priceless information, heretofore available only to a few, is now available to everyone as it is set forth in vivid detail within these pages. Easy to use...a tremendous step forward to all of numismat- ics...Simply magnificent." —Randy Shipley, Mooresburg, TN "For many years, serious collectors of Confederate currency have been clamoring for an improvement to the standard reference written years ago by the late Grover Criswell. This book is the answer to their prayers. Relying on exhaus- tive research and a keen eye for subtle variations, author Pierre Fricke has created an extremely detailed work that is both useful and informa- tive.... For anyone interested in Confederate cur- rency, whether as a scholar or collector, this book is a must have. It will be many years, if ever, before a book of this caliber comes along again. Bravo Pierre!" —Richie Self, American Coins & Collectibles, Inc., Shreveport, LA 2 Rector Street, 12th Floor New York, NY 10006-1844 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-312-6370 EMAIL: info@smytheonline.com WEBSITE: smytheonline.com TERMS AND CONDITIONS PAPER MONEY is published every other month beginning in January by the Society of Paper Money Collectors (SPMC). Second-class postage is paid at Dover, DE 19901. Postmaster send address changes to Secretary Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 © Society of Paper Money Collectors, Inc., 2006. All rights reserved. Reproduction of any article, in whole or in part, without express written permission, is pro- hibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for $6 postpaid. Send changes of address, inquiries concerning non- delivery, and requests for additional copies of this issue to the Secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts will be published as soon as possible; however, publication in a specific issue cannot be guaranteed. Include an SASE for acknowledgment, if desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be typed (one side of paper only), double-spaced with at least 1-inch margins. The author's name, address and telephone number should appear on the first page. Authors should retain a copy for their records. Authors are encour- aged to submit a copy on a 3 1/2-inch MAC disk, identified with the name and version of software used. A double-spaced printout must accompany the disk. Authors may also transmit articles via e-mail to the Editor at the SPMC web site (fred@spmc.org ). Original illustrations are preferred but do not send items of value requiring Certified, Insured or Registered Mail. Write or e-mail ahead for special instructions. Scans should be grayscale at 300 dpi. Jpegs are preferred. . ADVERTISING •All advertising accepted on space available basis • Copy/correspondence should be sent to Editor •All advertising is payable in advance •Ads are accepted on a "Good Faith" basis •Terms are "Until Forbid" •Ads are Run of Press (ROP) • Limited premium space available, please inquire To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In excep- tional cases where special artwork or additional pro- duction is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). With advance approval, camera-ready copy, or elec- tronic ads in pdf format, or in Quark Express on a MAC zip disk or CD with fonts supplied, may be accepted up to 10 days later. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover $1500 $2600 $4900 Inside cover 400 1100 2000 Full page 360 1000 1800 Half page 180 500 900 Quarter page 90 250 450 Eighth page 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single- column width, 20 picas. Except covers, page posi- tion may be requested, but not guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper curren- cy, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. PAPER MONEY • January/February 2006 • Whole No. 241 1 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLV, No. 1 Whole No. 241 JANUARY/FEBRUARY 2006 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: www.spmc.org IN THIS ISSUE FEATURES Fractional Currency Collections, Collectors and Auctions 3 By Martin Gengerke and Benny Bolin Riot Erupts Over Change Shortage after Arrival of Postage Currency .. 15 By Fred L. Reed III Fractional Currency Literature 34 By Benny Bolin Interest Bearing Notes: Fractional Currency Shields Fought Counterfeits .40 By Dave Bowers U.S. Fractional Currency: A Discussion 42 By William Brandimore Gleanings from My Fractional Currency Archive 51, 59 By Fred Reed Missouri Union Military Scrip Portraits Follow Up 52 By Steve Whitfield On This Date in Paper Money History 54, 56 By Fred Reed Inverted & Mirrored Plate Numbers on Fractionals -- Part II 58 By Rick Melamed No Loop de Loop: Do You have One in Your Collection? 64 By Mike Marchioni Grant/Sherman Specimens 68 By Rob Kravitz A Little Known Phase of the Public Service of F.E. Spinner 73 By Leslie Deerclerf SOCIETY NEWS Information & Officers 2 Author Gene Hessler releases another major text 13 Nominations Open for SPMC Board 70 Money Mart 70, 72 President's Column 72 By Benny Bolin Paper Money's Upcoming Publishing Program/Ad Deadlines/Ad Rates 73 New Members 74 Deadline for George W. Wait Prize Nears XX Librarian's Report 78 By Bob Schreiner Editor's Notebook 78 SOCIETY OF PAPER MONEY COLLECTORS INC. .1,31A ct2. 2 January/February 2006 • Whole No. 241 • PAPER MONEY Society of Paper Money Collectors The Society of Paper Money Collectors (SPMC) was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affili- ated with the American Numismatic Association. The annual SPMC meeting is held in June at the Memphis IPMS (International Paper Money Show). Up-to-date information about the SPMC and its activities can be found on its Internet web site www.spmc.org . MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed by the letter "j," which will be removed upon notification to the Secretary that the member has reached 18 years of age. Junior members are not eligi- ble to hold office or vote. DUES—Annual dues are $30. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world add $10. Life membership — payable in installments within one year is $600, $700 for Canada and Mexico, and $800 elsewhere. The Society has dispensed with issuing annual membership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join as available. Members who join after October 1 will have their dues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in a fall issue of Paper Money. Checks should be sent to the Society Secretary. OFFICERS ELECTED OFFICERS: PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 VICE-PRESIDENT Mark Anderson, 335 Court St. #149, Brooklyn, NY 11231 SECRETARY Bob Schreiner, POB 2331, Chapel Hill, NC 27515 TREASURER Bob Moon, 201 Baxter Court, Delmar, NY 12054 BOARD OF GOVERNORS: Mark Anderson, 335 Court St., Suite 149, Brooklyn, NY 11231 Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 Bob Cochran, P.O. Box 1085, Florissant, MO 63031 Wes Duran, P.O. Box 91, Twin Lakes, CO 81251-0091 Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 Ronald L. Horstman, 5010 Timber Ln., Gerald, MO 63037 Robert J. Kravitz, P.O. Box 6099, St. Louis, MO 63017 Tom Minerley, 3457 Galway Rd., Ballston Spa, NY 12020 Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515 Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 APPOINTEES: PUBLISHER-EDITOR Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 ADVERTISING MANAGER Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 LEGAL COUNSEL Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 MEMBERSHIP DIRECTOR Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 PAST PRESIDENT Ron Horstman, 5010 Timber Ln., Gerald, MO 63037 WISMER BOOK PROJECT COORDINATOR Bob Cochran, P.O. Box 1085, Florissant, MO 63031 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items 60-Page Catalog for $5.00 Refundable with Order HUGH SHULL ANA-LM SPMC LM 6 SCNA P.O. Box 2522, Lexington, SC 29071 BRNA PCDA CHARTER MBR PH: (803) 996-3660 FAX: (803) 996-4885 FUN PAPER MONEY • January/February 2006 • Whole No. 241 3 Fractional Currency Collections, Collectors and Auctions By Martin Gengerke Updated by Benny Bolin T HE ROUND TABLE DISCUSSION OF FRACTIONAL Currency sponsored by the Fractional Currency Collectors Board in Memphis in June 1986 brought to the forefront a problem faced by many new collectors in all series -- the lack of an historical per- spective from which to gauge rarity, desirability and demand. While many ref- erence works can be found listing varieties and prices, nothing has been written regarding past collections or collectors. In the field of Fractional Currency several factors have served to exacerbate the situation and relegate this field to the esoteric domain usually reserved for rarer non-circulating, non-federal sub- jects. Prior to the 1890s Fractional still circulated to some extent and only a few collectors paid much attention to the field. There were no reference works of any value to check, and consequently auction catalogers of the period rarely knew what information was important enough to list. With poor and often inaccurate descriptions, few auctions prior to 1890 are more than idle curiosities to the Fractional Currency collector. An exception might be some of the Harlan P. Smith sales and price lists, which contain the first public appearances of both the 50c "Perf. 14" note (Fr. 1310a) and the "0-63" 10c (Fr. 1248) — two varieties considered by knowledgeable specialists to be of dubious origin. The first important Fractional offering with generally sufficient descriptions was Edouard Frossard's 1893 Fixed Price List of Spencer M. Clark's collection of Essays and Experimental Pieces. The Clark list remains to this day one of the finest sales of experimentals, with many pieces never re-offered since. This list is rare and very hard to find today. The Chapman brothers of Philadelphia were the first to consistently catalog Fractional Currency in a profession- al manner that let the bidder know what he might expect. It is well that they did, for in 1903 and 1904 they held two Fractional sales (Friedman and Wilcox) that have never been surpassed, and might very well never be equaled again. Luckily, neither catalog is particularly difficult to locate. Other Chapman sales of Fractional included the Earle, Pick and Steigerwalt collections. On June 3, 1903, the Chapman's sold the collection of Monroe J. Friedman. A remarkably complete collection, with errors and experimentals, it is even more famous for its offering of uncut sheets, including all the unique 3rd and 4th issue sheets. The February 15, 1904, Chapman sale of the Charles Wilcox Fractional collection still holds first place for its amazing variety of experimental pieces. These two sales should be remembered, as they were the Martin Gengerke 4 January/February 2006 • Whole No. 241 • PAPER MONEY genesis of what has become the finest Fractional collection ever assembled. The next half century had few important sales of Fractional, and none of any great depth. The few noteworthy sales were important only because of a few rare or important items, with none being anywhere near complete, even in the regular issue set. Albert A. Grinnell, owner of the finest Large Size curren- cy collection ever formed, had a rather mediocre Fractional collection, sold by B. Max Mehl in 1943. Stack's sold Dr. Limpert's important collection in 1955, although the collection had been decimated by private sales prior to auction, and lacked many of the fascinating pieces illustrated in his book. While notable for the lack of availability of material, this period did pro- duce several standard reference works on the subject. In 1924 F.C.C. Boyd published Dr. Daniel Webster Valentine's pioneering work Fractional Currency of the United States; 1935 saw Walter Schultz's Checking List of Fractional Currency; the 1940s produced Dr. Alvin Limpert's two books, United States Postage Currency, August 1862-May 1863, and Fractional Currency, October 1863- February 1876 (1946) and Classified List of U.S. Postage and Fractional Currency (1947). Until Milton Friedberg's The Encyclopedia of United States Fractional and Postal Currency (1978) decades later, these three references were the only ones available to anyone wishing to go beyond the standard regular issue and speci- men areas. The Robert Friedberg book, Paper Money of the United States (1953 and later), and Matt Rothert's book, A Guidebook of United States Fractional Currency (1963), both listed only the standard regular issues and specimens, although Rothert did illustrate many of Crofoot's fascinating essays and rarities. The most important sale in 50 years was held by Abe Kosoff in his 1958 ANA sale. Kosoff's disgraceful presentation of Maurice M. Burgett's collection in a cramped, no-photo manner led to unreasonably low prices, even for the period. Kosoff partially redeemed himself by publishing a profusely illustrated special edition of the Fractional Currency section after the sale — a must for any Fractional collector. The col- lection, virtually intact, went to Kosoff himself, acting as agent for the Newport Balboa Savings and Loan collection. Years later Kosoff bought back the collection, selling off bits and pieces slowly until selling the remainder in Bowers & Ruddy's "Winthrop" sale, 9/12/75. Appropriately, the prices in the Winthrop sale were also rather low for the time. Bowers & Ruddy/Merena have auctioned more impor- tant Fractional in recent years than any other firm, starting with the sale of Matt Rothert's collection, 11/16/73. "Hyped" at the time as the finest and most complete collection of Fractional ever formed, it was far from being either. To this clay it ranks as one of the most over graded and erratically graded sales, lacked a half dozen important regular issue notes Ed Frossard and many specimens, and had relatively few essays or experimental pieces. Ignoring Dave's advertising superlatives, it still, however, ranks as one of the more important Fractional sales. Perhaps the over grading of the Rothert material contributed to the low prices of the Winthrop sale — ironically one of the more consistently and fairly graded sales of recent years. The third impor- tant Fractional sale by Bowers was the Robert A. Russell collection 6/20/77. Numerous other Bowers sales have had individual important rarities. One firm running Bowers a close second is NASCA, with a steady stream of important Fractional highlighted by the 1981 sale of the Rocky Rockholt collection (with the Fraser sale below, one of the two most important offerings of essays and experimental pieces since 1904). As with the Bowers' firms, many PAPER MONEY • January/February 2006 • Whole No. 241 other NASCA sales have had rare and important individual items. Other important Fractional sales of recent years include the Lester Merkin sale of the Isidore Herman collection in 1974, the Robert A. Siegel sale of the Josiah K. Lilly collection in 1967 (very important mater- ial), the Superior sale of the John R. Fraser collection in 1982 (one of the two finest offerings of essays and experimental pieces since 1904), and the 1960 ANA sale by Whiteneck & Conn (consignor unknown). The Herman sale, with relatively few rarities, hit a mar- ket starved for material. With Lester's reputation and conserv- ative grading, it was standing room only, with bids occasionally being relayed in from the hall. In the ensuing bidding frenzy many items set price records that weren't broken for years. Merkin also had a memorable fixed price sale of Fractional in 1963 (note—most of the notes on this price list were purchased by Milton Friedberg). Being auctioned by a philatelic firm, many bidders showed up at the Lilly sale hoping to be the only ones there. Prices were stronger than ever as all the specialists competed. At the Fraser sale, one dealer's obstinate insistence on buying everything himself, rather than sharing with the collectors there, led to obscenely high prices. The dealer, still holding many of his purchases years later, eventually "dumped" for an average of 50c on the dollar, and the market for experimentals stabilized considerably. Overall, if one were looking for "role models," the Burgett, Lilly, and Rockholt sales would have to be considered the most classic, well-rounded collections to be sold publicly in many decades. All had rarities in the regular issues, some high grade, some errors and some essays and experimentals – something to draw all types of collectors. Auctions are certainly important, but they only tell part of the story. What of the collectors themselves? The names of many important collectors can be found listed above, but many other collections were either sold privately (some posthumously), donated to museums, or are still active. Reference was made above to factors making Fractional less well known than it should be. One of those factors has to be the legendary F.C.C. Boyd, who over a half century of col- lecting in many diverse areas assembled the finest collections of several fields, including Fractional. The Friedman and Wilcox collections both were sold almost in their entirety to Judson Brenner (past President of the ANA), with the Brenner collec- tion then forming the basis of the Boyd collection. Over the next 50 years, Boyd privately gobbled up almost every Fractional collection of any importance, leaving very few to come on the market. Often buying entire collections to get just a few pieces, Boyd acquired the Brenner, Drowne, Valentine, Brand, Earle, Granberg, Blake, and Proskey collections, to name just a few. It is not known if Boyd got all of the Spencer M. Clark collec- tion – it now has all the notes specified in the 1893 Frossard list except the third issue 50c experimentals. Boyd was a bit care- less, paying little attention to condition when disposing of duplicates, and occasionally selling unique items. However, the collection remained substantially intact, and by far the finest ever formed, until the recent John J. Ford Jr. sales. Few major collections escaped Boyd's grasp – other than 5 Henry Chapman Josiah K. Lilly 6 January/February 2006 • Whole No. 241 • PAPER MONEY JAMES POLIS IS BUYING AND SELLING FRACTIONAL CURRENCY I am one of the strongest buyers in this field. Take a look at any major auction or show at who is buying fractionals in all grades and you will usually hear my name or see my face. Please send me your notes for a fair and expedient offer. I am passionately looking for all scarcer varieties as well as Choice-Gem Uncirculated Type Notes for my customers. First Issue Perforated Notes Gem Second Issue Notes with clear surcharges Attractive and broadly margined Spinner notes All Justice varieties High grade Washington, Lincoln and Stanton Notes ALL WIDE AND NARROW MARGIN SPECIMENS ALL GRANT — SHERMAN SPECIMENS WHY WOULD YOU WISH TO DEAL WITH ME? PROFESSIONALISM It is my promise to you, the customer, that you will always be treated with the most ardent professionalism regarding all matters. AFFILIATION I am a member of the Professional Currency Dealers Association, Society of Paper Money Collectors, Fractional Currency Collectors Board, and American Numismatic Association. CONSERVATIVE GRADING I am one of the most conservative graders in the hobby (ask anyone who has ever dealt with me). PAPER MONEY • January/February 2006 • Whole No. 241 7 AUCTION REPRESENTATION Very competitive rates offered — Let me know if you would like to be represented at the Heritage-CAA FUN Sale MAJOR ADVERTISER Check out my full-page ad on page 17 in every issue of the Bank Note Reporter. FREE PRICE LIST Finally an updated price list will be available in Winter 2006 WANT LISTS SERVICED I attend many of the major shows and auctions to satisfy my customer's collecting needs. The following is a small sampling of some prize notes that I have placed into customer's collections: Marchioni Fr. 1248 Choice CU Fr. 1299 Very Choice CU Gengerke Fr. 1330 Gem CU Fr. 1336 Choice CU O'Mara Fr. 1339 NM Specimen Reverse AU Fr. 1340 Superb Gem CU Fr. 1348 Choice CU Fr. 1368 Gem CU O'Mara Fr. 1371 Choice AU James Polis 4501 Connecticut Avenue, NW Suite 306 Washington, D.C. 20008 (202) 363 — 6650 Jpolis7935@aol.com 123 West 57th Stree ESSAYS EXPERIMENTAL. PIECES 8 January/February 2006 • Whole No. 241 • PAPER MONEY "ME CELEBRATED those mentioned above, the Joers and Crofoot collections are notable. F.T. Joers of Ohio formed a sizable collection Dr. Frank A. Limpert which was disposed of privately in the late 1970s, many years after his death. Herman K. Crofoot, of Moravia, NY, Collection of is more well known, primarily due to the illustrations in U. S. PAPER MONEY Matt Rothert's book of items located in the Smithsonian Institution. Crofoot's widow donated his collection, .1LA RACTIONAL CURRENCY including Spinner's original paste-up essays for the first issue, to the Smithsonian early in the 1960s — a collection which ranks in the top five existing collections today. • The famous dealer Wayte Raymond also accumulated a massive amount of Fractional (more of a dealer stock than Public Auction Sale a collection), consisting of many rarities and sheets. Mrs. Raymond later disposed of the hoard over many years, SATURDAY. SEPTEMBER 24. 1 .955 much of it through Lester Merkin. B.F. Collins (formerly of the Treasury Department) and Jack 0. King jointly had a fine collection of Fractional; that held by King eventually • was purchased by Milt Friedberg — once again through Lester Merkin. This brings us to a final question — where do various collections rank today (1986)? The first four places are easy to define; after that it becomes somewhat cloudy, as important pieces from several major sales have gone to anony- mous buyers in recent years. First place is, of course, the Boyd-Ford collection documented above. The collection has essen- tially stagnated since Boyd's death REGULAR ISSUES in 1958. Being interested in so UNIFACE SPECIMENS OF ADOPTED TYPES many fields, Ford has added little UNIPACE WIDE MARGIN PROOFS to the collection since acquiring it; also, as advanced as the collection is, little needed material has come on the market recently. Ford, unlike Boyd, has sold only dupli- cates, and then only the lower grades. Second place overall goes to Milton Friedberg, a Fractional collector since the early 1960s and author of what is now the standard reference work on the subject. Third place goes to Martin Gengerke. While squeaking into LESTER MERKIN first place in the regular issue area 515 MADISON AVENUE NEW YORK 22, N.Y. with the only complete set ever PLC 3-1130 formed, (Ford and Friedberg each need one major note for comple- LIST #4 PRICE $2.00 1463 tion), the Gengerke collection ranks a distant third to Boyd/Ford and Friedberg in errors, speci- mens, experimentals and essays. Fourth place belongs to the Crofoot-Smithsonian collection. While lack- ing fewer than a half dozen regular-issue notes, and being particularly strong in essays and experimental pieces, the collection is marred by Crofoot's unfortu- nate practice of pasting his notes on acidic loose-leaf pages. Many important FRACTIONAL CURRENCY I Collect FLORIDA Obsolete Currency National Currency State & Territorial Issues Scrip Bonds Ron Benice 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Benice@Prodigy.net Announcing the Confederate Paper Money Condition Census Project •Building a census and provenance of the top CSA currency rare varieties. •Updates to be published as supple- ments to new Collecting Confederate Paper Money book by Pierre Fricke. •Do you want to be remembered 100 years from now by future collectors? •Privacy and anonymity maintained at your request. Long time rarity and variety collector (32 years) - U.S. Large Cents, Bust Halves, now CSA paper money and bonds. Member EAC, JRCS, SPMC. From long time Louisiana family. Please write to - Pierre Fricke, P.O. Box 245, Rye, NY 10580 pfricke@attglobal.net ; www.csaquotes.com ; eBay - "armynova" 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" $20.50 $37.00 $165.00 $290.00 Colonial 5-1/7 x 3-1/16" $21.00 $38.50 $175.00 $320.00 Small Currency 6-5/8" x 2-7/8" $21.50 $41.00 $182.00 $340.00 Large Currency 7-7/8" x 3-1/7 $24.00 $45.00 $200.00 $375.00 Auction 9 x 3-3/4" $26.50 $48.00 $235.00 $410.00 Foreign Currency 8 x 5 $30.00 $55.00 $250.00 $440.00 Checks 9-5/8 x 4-1/4" $30.00 $55.00 $250.00 $440.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $18.00 $80.00 $140.00 $325.00 National Sheet Side Open 8-1/2" x 17-1/2" $19.00 $85.00 $150.00 $345.00 Stock Certificate End Open 9-1/2" x 12-1/2" $17.50 $75.00 $135.00 $315.00 Map & Bond Size End Open 18" x 24" $70.00 $315.00 $570.00 $1295.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 5 pcs. one size) (min. 10 pcs. total). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar 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 WANTED: NATIONAL BANK NOTES Buying and Selling Nationals from all states. Price lists are not available. Please send your want list. Paying collector prices for better California notes! WILLIAM LITT P.O. BOX 6778 San Mateo, California 94403 (650) 458-8842 Fax: (650) 458-8843 E-mail: BillLitt@aol.com Member SPMC, PCDA, ANA PAPER MONEY • January/February 2006 • Whole No. 241 9 10 January/February 2006 • Whole No. 241 • PAPER MONEY items, including the Spinner essays, are badly damaged and still deteriorating, as not even the most fundamental de-acidification has been done. The ranking is difficult below fourth place, with collections in Florida, Texas, Michigan, and New York in the running (possibly in that order), as well as one or two anonymous collections. Others, including one or two well publi- cized ones, probably don't make the top ten. Few museums other than the Smithsonian have anything that could be called a "collection" in the Fractional area. Beyond the above ranking, there are numerous active collections which contain rare and important individual items, very high overall grade, or inter- esting specialty collections within the larger Fractional Currency umbrella. While not in the top five today, they would nevertheless be long remembered should they go on the auction block. Possibly by perusing the important past sales listed above, new collectors can focus their interests a little better or avoid the all too frequent trap of paying too much for what most other collectors consider to be of little importance. Perhaps too some new collector may be inspired by past efforts to challenge the lead held by the Boyd collection. Update by Benny Bolin Since Martin wrote the above article and published it in the FCCB Newsletter 20 years ago in 1986, there have been a number of major changes in the Fractional Currency hobby. First, was the maturation of the Fractional Currency Collectors Board (FCCB). The FCCB was formed in 1983 at Memphis and has become quite an active collectors' organization for Fractional enthusiasts, currently numbering more than 200 members. Starting with just 20 members, the club has been relatively stable over the years. Most of the major collectors and dealers of Fractional Currency have been/are members of the club. Leadership in the club has also been stable with just three presidents, Hales, O'Mara and Bolin. Second is the desired and unfortunately real need for anonymity. This has had a major impact on pedigrees and sim- ply knowing and ranking collections and collectors. When Martin wrote the article, most of the major rarities in the field were known to be in certain collector's hands, and these were listed in Milt Friedberg's book. Now, that information is closely held and is not shared in an open forum. The primary unfortunate side effect of this is the very real potential loss of pedigrees of notes in the future. The third major change is the ill health of Milton Friedberg. Besides being a big loss to the collecting communi- ty, Milt's health problems also results in the loss of keeping his Encyclopedia updated. Milt was very diligent about assigning Matt Rothert new and correct Milton numbers when new notes were found and sending updates to the community, via the FCCB Newsletter. No one has stepped up to take this responsibility on and the result has been some new notes still not being cataloged. Another major change in the hobby has been the near complete change of collectors. Most of the major collectors who were active in 1986 have since sold their collections (see below for more on those sales). In fact, looking at the charter and first 100 members of the FCCB, there are only a very few still actively collecting today. Again, due to the need for anonymity, it is difficult to name them, although a number of long time dealers are still active, including Tom Denly, Len Glazer, and Art and Judy Kagin to name a few. Fortunately, most of those collectors who sold their collections have remained active in the hobby today, either as dealers, collectors of a substratum of fractional or other PAPER MONEY • January/February 2006 • Whole No. 241 11 areas of paper money or just from a camaraderie standpoint. Of the major col- lections Martin mentioned in his article, only the Crofoot/Smithsonian is still intact, but its condition of increasing deterioration is not known by this author. However, the biggest change in the FC hobby has been the unprecedent- ed growth and popularity of Fractional Currency itself. Often as filler notes in auctions and dealer stocks, Fractional is now riding a wave of popularity and acceptance not seen before. Single notes have topped the $100,000 mark and recent sales have seen record prices. New, major collectors have been added to the hobby, O'Mara, Goldman, Laub, Paradis and others, although O'Mara and Goldman who formed complete sets of regular issue notes have since sold their collections. New dealers have come forward such as Alex Perakis, Robert Kravitz, James Polis and David Berg. Also, for the first time since Milt published his encyclope- dia in 1978, a new reference book solely about Fractional has been published. The year 2004 saw the publication of Robert Kravitz's A Collector's Guide to Postage and Fractional Currency. The hobby is at a level today that was not even dreamed of two decades ago. Detailing of auctions is much easier. In the late 1980s there were only a few major auctions of Fractional Currency. In March 1990, Sotheby's auctioned the Dr. Ronald Kessler col- lection of fractional (237 notes—almost a com- plete set of regular issue and proofs/specimens and many associated items) as one lot in its New York sale. Stack's was the lead auction company with Martin Gengerke as the cataloger. In May 1992 Stack's sold the Allen May collection, which had a number of rare and unique proofs and experimentals as well as being only the second auction in history to have Fr. 1351, 1353 and 1354 notes all in the same sale. In March, 1993, Stack's sold the Herman Halpern collection of Fractional, another large and important collection. In September 1993, they auctioned the Harold Korin collection, and the David Proskey collection with duplicate notes from the H. K. Crofoot collection (more from both collections were sold in March 2000). However in November 1991, the FC hobby changed forever. Long time Fractional Currency dealer Len Glazer partnered with Allen Mincho and formed Currency Auctions of America. Since that first sale at the PCDA show in St. Louis, the firm has conducted more than 40 additional sales, auctioning most of the important col- lections of Fractional Currency. It started with the Wayne Leichty sale at FUN '94. This was followed by the Martin Gengerke sale at FUN '95, the first complete set of fractional ever sold at auction includ- ing the then unique Fr. 1352. CAA followed this monumental sale with the Martin Delger sale in October '95 and the Phil DeRosa sale in May '96. In January of 1997, CAA sold the famed Milton R. Friedberg collection. A massive collection, the sale comprised more than 1400 lots, with all but one being Milt's. Milt only lacked the Fr. 1352 to have a com- plete collection and had all the specimens and proofs, 90 inverts, more than 150 experimentals/essays and numerous other associated notes/items. CAA then Doug Hales, Tom O'Mara and Milt Friedberg (L-R) Early FCCB membership dinner/meet- ing at 1986 Memphis International Paper Money Show 12 January/February 2006 • Whole No. 241 • PAPER MONEY Wally Lee and Len Glazer Wayne Leichty and Mike Marchioni auctioned the Frank Harris sale in May '97, the Dr. Wally Lee sale at FUN '99 and the Mike Marchioni sale at FUN '00, a collection highlighted by many quality notes. Stack's importantly reappeared on the FC scene in May 2003 with the first of its many sessions offering the famed John J. Ford Jr. sale, which of course includes the unparalleled F.C.C. Boyd collection of Fractional. Two very important private sales occurred in this time period as well. The Michael Goldman collection was sold by Tom Denly. It was notable in that he had a complete set of regular issue notes as well. The Fr. 1352 and 1373a were purchased by Tom O'Mara which then completed his set of regular issue notes. The second private sale of note happened when Tom O'Mara bought the Douglas K. Hales collection (one of the top two collections in exis- tence at the time) in its entirety. With the purchase of the aforementioned notes and then the Hales collection and the impending sale of the Ford-Boyd collection, the O'Mara collection became the number one collection in the hobby. This author has little knowledge of the Smithsonian collection, but based on observations by Hales and O'Mara, the collection is nice, but has many reg- ular issue notes missing so it would not be considered in the upper echelon of 1,,, International Engraver's Line \ It 7^,I1 I , V.PAVI ,I1) !MAN', FR0\11111 / 1111 I Gene lie,let PAPER MONEY • January/February 2006 • Whole No. 241 13 the hobby. What does make the collection unique are the large number of treasury department proof sheets which are considered uncollectible. During this same time, many new and avid collectors joined the hobby ranks, account- ing for the high prices of notes. Also, during this time, CAA merged with Heritage Coins of Dallas. Finally, as with all the major collections, at the May 2005 Central States Show, CAA sold the O'Mara collection—beginning the demise of the second generation collectors? All in all, the Fractional Currency hobby has enjoyed a niche market that has served its collectors well. It remains a small sub-stratum of the Paper Money hobby and is enjoyed by all. Author Gene Hessler releases another major text FORMER PAPER MONEY EDITOR GENE HESSLER could rest on his laurels and still go down in numismatic history as one of principal scholars in the American and worldwide fields of all time. That he doesn't, and has researched, written and released yet another monumental tome, The International Engraver's Line, is won- derful news to collectors around the globe. Hessler's new book results from a lifelong study of security engraving that also witnessed the 1993 release of his The Engraver's Line. The earli- er opus largely detailed the works of U.S. security engravers. The new volume expands in a similar format global security engraving. Hardbound within its nearly 400 pages are the life and works of some thousand or so paper money, bonds, postage stamps and stock certificate engravers from around the world. Hessler's lucid style pro- vides biographical details and wonderful compendia of engravers', designers' and printers' works. The text offers outstanding illustrations, most in color, and many in large detail so the intricacies of the precise art- work can be appreciated by the observer. Hessler's research derives from many personal contacts and exchanges of letters with various of the security engravers, providing insights and specifics not available else- where. For example, we learn contemporary German engraver Kurt Leitgeb became married in the same year he engraved his first postage stamp. Or, that contemporary Czech artist Alois Mudrunka retired as a high school art teacher at age 48 to devote full time to his art work. Or, that contemporary Thai engraver Weerachai Suwansiri was an apprentice of Leitgeb's at the Austrian National Bank. Lists categorize the output of the various engravers and artists. Hessler lists bank note engravings cross-referenced to Pick catalog numbers. He also lists postage stamps by stamp catalog references, and other security engraving work. Hessler's close association to his subjects, yields a vari- ety of treasures. Many of the entries are very comprehen- sive. For example, English engraver Joseph Lawrence Keen, who died in 2004 and is perhaps most famous as the "Dean of English Portrait Engravers," has an entry which covers nearly 10 pages. Cited are a hundred bank note engravings, which Keen produced for countries as diverse as Argentina, Botswana, Tunisia and Northern Ireland. Interesting sidebars cover such topics as the proliferation of newly engraved portraits for Queen Elizabeth II during her long reign, and designers of essais for Euro bank notes. Working photographs of many of the engravers are also included. The book itself is sumptuously printed, befitting its subject matter. From its full color cover to its superb interior illustrations to its masterful research, Hessler's book evidences a prodigy at the fullness of his syngraphic powers. This writer unequivocally recommends that any collector purchase the book, since it sheds light on all areas of paper money collect- ing. It is both a visual delight to peruse and an intellectual joy to ponder. The book even includes a classy attached ribbon place marker. My personal favorites are chronicles of the principal global security printing firms, and biographies of the artists who created various notes in my collection. Hessler pursues not just the broad strokes but the details too, and this work is very detailed. Although not known as a worldwide paper money collector primarily, I do have several specialized international note collections and Hessler's is the first book to provide me with details on my foreign notes. I learned, for example, that the vibrant hospital scene on the Florence Nightingale back of the British 10-pound (P379) was engraved by David Wicks. I also learned that the azure Fisherman on the back of the French 20 francs (P100) was the work of Camille Beltrand. Also, that J.A.C. Harrison engraved the splendid George VI effigy on the Malaya dollar (P11). And that George Gunderson implanted the "devil" in Elizabeth II's hair on Series 1954 Canadian notes. Hessler's bibliography is extensive; his index is compre- hensive, and his page headers are very helpful in locating desired information. The International Engravers Line, 392 pages, 700 illustra- tions most in color, and autographed if you desire, is priced at $74 including postage. A premium edition with signed notes is available for $140. Address your inquiries to Gene Hessler, PO Box 31144, Cincinnati., OH 45231 or engraver- sline@aol.com You'll be glad you did! -- Fred Reed 14 January/February 2006 • Whole No. 241 • PAPER MONEY Alex Perakis Coins & Currency ALWAYS BUYING & SELLING WORTHWHILE MATERIAL SPECIALIZING IN: $ FRACTIONAL NOTES $ UNITED STATES TYPE NOTES $ SMALL AND LARGE SIZE NATIONALS $ OBSOLETES PA OFFICE P.O. Box 246 LIMA, PA 19037 610.565.1110 610.627.1212 FAX: 610.891.1466 APCC1 @MSN.COM WWW.PERAKISCURRENCY.COM AZ OFFICE PHONE 520.544.7778 FAX 520.544.7779 APERAKIS@DAKOTACOM.NET MEMBER ANA, PCDA, SPMC, FCCB, CCCC KRAUSE PUBLICATIONS AWARD RECIPIENT (25 CONSECUTIVE YEARS) PAPER MONEY • January/February 2006 • Whole No. 241 15 Riot erupts over change shortage Storm breaks in Cincinnati after arrival of Postage Currency By Fred L. Reed III Copyright 1988, 2006 All Rights Reserved T HE 300TH ISSUE OF HARPER'S WEEKLY, "A JOURNAL of Civilization," appeared September 27, 1862. On the front page of the six-cent tabloid was an artistic rendering of the Ohio River's big bend from the hillsides opposite Cincinnati in Kentucky. Ohio's Queen City was a metropolis, the largest west of the Allegheny Mountains. The broad, bustling Ohio River swept off to the artist's right, to the north and east. The watery highway was full of river traffic which made the City of Cincinnati thrive. The community itself appears idyllic, majestic church spires climbing the rolling hills stepped back from the river's banks. But this placid view of the Queen City atmosphere shown in the artist's draw- ing belied the truth of the difficulties and turmoil being experienced by the majority of Cincinnati's citizens. Just a few, short weeks later Cincinnati would experience a major mob scene as frustration gave vent to wrath. It took the United States Army to quell the disturbance. The cause of this riot? Something as simple as a shortage of small change. Engulfed by major economic turmoil, the masses had been cir- culating postage stamps for months before Congress belatedly sanctioned this expedient July 17, 1862, with an authorization to issue Postage Currency. The Scott catalog (Specialized Catalogue of United States Stamps, now pro- duced by Coin World's parent company Amos Press Inc.) has long contended that this emission "was not money, but a means of making stamps negotiable." In fact, these notes do clearly state on their face that they were "receivable for Postage Stamps at any Post Office." Other writers have held that these small notes, the Postage Currency itself, was issued "illegally" since the act referred to stamps not "Postage Currency" notes. Charles Magnus' colored lithograph, "Birds Eye View of Cincinnati," shows the Civil War era city from the heights behind Newport, Ky., across the Ohio River. Cincinnati was vulnerable to Confederate raiders and a large contin- gent of U.S. troops was stationed there. Although Copperhead sympa- thies also ran rampant there, it was mob violence set off by insufficient supplies of postage currency that brought the troops into action in November 1862. 16 January/February 2006 • Whole No. 241 • PAPER MONEY U.S. Treasurer Francis E. Spinner invented the Postage Currency by pasting regular postage stamps on let- terhead stationery. These rare proto- types are from the Crofoot items at the Smithsonian Institution. Highly favorable substitute But such analysis fails to make sense. Postage Currency was a highly favorable change substitute. In fact, it was as "good as gold," because by the precise language of the enabling legislation it was receivable for customs duties and other obligations due to the United States. Although all the greenbacks were good for those "other" obligations, only Demand Notes and Postage Currency were good for import duties. That is a significant difference, as we shall see. Its as if no commentator ever bothered to turn these notes over, since this provision is clearly spelled out on their backs. Postage Currency states in part: "Receivable in payment of all dues to the U. States (sic) less than Five Dollars." This provision was a natural downward extension of the preferential treatment originally accorded the Demand Notes (i.e. receivable for customs) vis a vis the subsequently authorized United States Notes, the legal tender greenbacks. Because of this, Postage Currency extended the opportunity to pay taxes, fines, purchases of public lands, customs and other duties due to the central government downward to the least citi- zen in the land, since they were legally equiva- lent to the Demand Notes and specie in small sums. (note: Demand Notes were printed in denominations down to $5) These equivalency provisions, which legal- ly made paper equal to gold and silver in the payment of customs, were dropped from the better thought out and framed Fractional Currency legislation which provided a substitute currency for the Postage Currency the follow- ing year. But for that year, that difference was etched in law, and it contributed to the mone- tary difficulties experienced in Cincinnati and elsewhere. Legally, Postage Currency really was a substitute for the silver fractions of a dol- lar that it was supposed to replace. I find it remarkable that this important distinction has escaped numismatists for so long. In fact, no author in the past century and a quarter since these notes hit the streets has mentioned it! Early lack of success However, this was vital, and contributed greatly to the lack of success the Postage Currency experienced. That difference could surely not have escaped the notice of the frugal Yankee merchants, bankers, and capitalists who queued up to receive their shares of such notes. And in fact, it did not escape the astute commercial minds of the time. Both Demand Notes AND Postage Currency sold at premiums in excess of convenience percentages, precisely because they were pegged to specie. The premium on Postage Currency led to its hoarding and speculation. Both activities kept large amounts of this currency out of circulation. So the provisions of the unwitting and hastily framed legislation under which Postage Currency was emitted precluded Postage Currency from doing the job it was created to do: circulate and remedy the change crisis. This is but one example of bureaucratic bungling in which the solution I _ ./ ,4,,, pm..u.G.n, Fee278 1 eehee8 1:esicA e$5 1899 Silver Certificate ityn h W584334:09:- PAPER MONEY • January/February 2006 • Whole No. 241 17 TRUSTRa ilEASURES60 1A-161ritSil, Rk'S Label Features Preservation. Identification. Appreciation. Your notes deserve the best. That's why PMG developed this holder—combining the qualities that collectors value most. The PMG holder... ...Is made from the highest-quality, inert materials. It contains no openings or perforations—guarding against environmental hazards and contaminants. ...Features a large label that displays precise and specific information about your note, including a full attribution, pedigree, and graders' comments, as applicable. „Accommodates a wide range of currency albums. Your notes take center stage with protective materials that maximize superior visibility. PMG's primary commitment is to provide accurate and consistent grading of paper money— to impart confidence and reliability. This also includes understanding what numismatists want from a holder. And that's why we are bringing a new standard of impartiality and integrity. To learn more about PMG, visit www.PMGnotes.com , or contact Glen Jorde, Grading Finalizer, at 877-PMG-5570. 5 Join thecommunity www.collectors-society.com &APMG PAPER MONEY GUARANTY P.O. Box 4755 I Sarasota, FL 34230 I 877-PMG-5570 (764-5570) I www.PMGnotes.com An Independent Member of the Certified Collectibles Group Prominent display of cataloging information and grade Security features such as hologram, bar code, and reiterated grade Generous area for graders' comments ilf,X.,:IC7,-.,3*" tr7,0 ,'---' — LWOW- _ -•--.1.-.V-sr ._____c, , „ . 7:01,-05T,i2r2r, ibarzi*V eidg hy throgFASCIA'xvon4 --</likuz: j), ,-.:' ' "j)).;POsie<4:-.- ( ,-- 05 (i ' Ao" ---- ?-.:5* 6-k i,,,,,,isi ,.Heil.P..-- -7.474-% %11:-.:4-:-.P.. .-,-- t,-. 7:61 1):;l, (1 1,;,..i.s.%_7,1/4,,, ;,,,,„„,.,. , iJ;;554..4 I, 1 — ,...e.' 1,11'•r1"- -,„....1$.--..---1."4' ''' e'/% .-,■ /''' il:111:;".--- (7---1-'177 : 11€1. I ;/.11.I : 1 1,!:7.6.....,( FIT :1)-0Lidies. I)/y'll..., 5,11175:ill ...:*" 4, 18 January/February 2006 • Whole No. 241 • PAPER MONEY Collectors know that Postage Currency was an expedient to replace fractional silver coins which had fled from active circulation. The notes copied then current postage stamp designs. exacerbated the problem. In the exigency of the times, there were others. Today we know this phenomenon as the "theory of unintended consequences." People in Cincinnati and elsewhere in 1862 knew it intimately in the hardships of their daily lives. The sum of these effects were that things were not going very well commercially in Cincinnati in the summer of 1862, despite the fact that business was booming with wartime activity. Adding to the problem of the central government's bungling in monetiz- ing stamps, which led directly to the Postage Currency, private printing con- tractors were slow to ramp up supplies. Most Paper Money readers know that at the time the U.S. government did not have its own security engraving and printing capacity. It relied on outside firms. Manufacturing of the small Federal bills proceeded inexorably slowly. Both officers of the American Bank Note and National Bank Note Companies in New York City, and the Federal officials in Washington, D.C. deserve concurrent shares of this blame. Postage stamp frenzy Because of the tardiness of the promised Postage Currency relief, the public continued to buy excessive amounts of regular postage stamps to pass as change. Postal officials were disconcerted as daily sales mounted to unprecedented levels. Sales in Cincinnati directly attributable to stamp pur- chases for change were reliably estimated at $50,000 for the months of July, August and September, 1862. Postal officials sought to curtail this run on their postage stamp stocks, but with little success. By early October Cincinnati newspapers were decrying this state of affairs. "The use of postage stamps as a circulating medium will undoubtedly soon be checked," the Daily Enquirer postulated hopefully while reporting the most recent Washington actions to curb stamp sales. The Post Office Department had just issued a series of directives to local postal officers to crack down on what it deemed the prevalent reuse of stamps on letters in the prepay- ment of postage. Because most stamps were soiled from cur- rency use, unscrupulous persons were attempting to remove postally-cancelled stamps, and reaffix them to letters in the hopes that one dirty stamp would look pretty much like anoth- er to the Post Office. Not so, the Post Office officials in Washington claimed, warning that letters deemed fraudulently sent would wind up undelivered in the Dead Letter office. And ALL dirty stamps were suspect and susceptible to repudiation by the Post Office, the account warned. The remainder of the Enquirer report was a long, plaintive summary of the Queen City's experience with postage stamps as currency. An estimated $50,000 in postage stamps was in circulation there, the newspaper opined. They had been used for everything from food, to drinks, to cigars. "For the past few months stamps have been so extensively circulated as a substitute for small change that they are now found in everybody's pockets," the newspaper said. "These have been given a wide range by our merchants, and all alike have received them in large and small quantities. No matter what you purchased, you are bound to receive as change these sticking plasters. "And they have proved themselves by no means a convenient substitute," the account continued. By constant use they easily become torn and soiled, 110.S744.11.: --7". THE .iss ---- • Ptie/17,57/13) `----IleerISURE115 rtj bpvosT, oie —71012 — 44. ktred I/14 e '*On )07, 4P.13Y NATION:, • Ito ifvs.o ./itie, 1 tee/ I)/ v-E Were/ 0/%0,4. 49"4, Il.Stat s &SS tf "b ; jl Cr41!1WoVED .irL)'17: syj !„X., l70 NV. PAPER MONEY • January/February 2006 • Whole No. 241 19 and the unfortunate possessor is compelled to pocket the losses." Cincinnati officials received supplies of the fractionals but slowly, and then only in small quantities. The arrival of the long-promised notes was so long delayed and so slow, in fact, that in early November 1862, the receipt of but a small amount at the city's Customs House set off a full scale riot after most of the amassed crowd (quickly turned to a mob) failed to receive any notes at all. So scarce were these notes that Postage Currency was being sold at 5 to 10 percent premium by the city's bankers. "To exchange a dollar bill," one of the local newspapers complained, "you must lay it nearly all out." Large firms brought in large quantities of the Postage Currency from the East, but even they paid it out at 12.5 to 15 percent advances. These notes were no help to the public. A frustrated customs collector, Enoch Carson, who was charged with dis- tributing the small quantities to be officially released in that city, put up a large sign: "NO MORE Postal Currency At Present. Until more comes, no use making Inquiry." Money substitutes Stamps were being pressed into circulation in other ways, too. The Cincinnati Customs House was only two doors from John Shillito's famous store. His Cincinnati encased postage stamps remain as evidence that Carson's sign was up more than it was down -- at least in those fateful months of 1862. Shillito was not alone. Four (not five, as author Amold Perl has writ- ten) Queen City dry goods establishments, Shillito's included, took money matters into their own hands and commissioned John Gault's private currency medium. Harpel, a Cincinnati printer, made up small envelopes to preserve the stamps while in circulation. There are other evidences, of course, of the small change crisis. The Cincinnati City Council debated the feasibility and legality of issuing a municipal fractional scrip, while the city staggered commercially under the oppression of an uncertain Federal fractional note supply. In the end the local politicians chose inaction, citing the state law against issuing such notes. But as delay mounted upon delay, and excuse upon excuse, the city's merchants could wait no longer in providing themselves with a small change medium with which to continue their business. While several opted for the encased stamps, oth- ers issued private scrip. Most turned to the city's local die sinkers. They com- missioned cent substitutes, which quickly became ubiquitous in the summer of 1862, but these small coppers could not remedy the crying need for silver change. The Postage Currency finally debuted on Aug. 21, but it was more than two weeks later before supplies were generally forth- coming (even New York City had to wait until Sept. 8th to receive its first supply). By the end of September nearly $800,000 of the currency had been released. But by Oct. 7 only ONE small distribution had been made in the Queen City. This "had not afforded any relief from the inconvenience attending the scarcity of silver," the Daily Enquirer complained. The rush is on The change-starved public reacted like dehydrated race horses smelling Washington law makers hastily pre- pared legislation authorizing the Postage Currency. In their haste they made the paper scrip legally equivalent to specie. This redemption clause caused the notes to be hoarded and sold at a premium just like their coinage counterparts. Thus they were doomed to interrupted circulation and did not prove to be the remedy to the small change shortage they were designed to be. The defective redemption provision was remedied by subsequent legislation authorizing Fractional Currency. 1.11.37/.4-7/7)/pt DOLIAlek. 4•0 4PPRI5V) €1./e) r sit Juvf t. ay9wahr/ rE • ) f ltri))---%//)// • lens ///(4.f 20 January/February 2006 • Whole No. 241 • PAPER MONEY Postage Currency was so scarce in Cincinnati in fall-winter 1862 that these notes were being sold at 5- to 10- percent premium by the city's bankers. Large merchants caught on quickly. They imported quantities of notes directly from the East and hawked them at 12.5- to 15-percent advances. water when the opportunity to acquire some of the small fractional notes pre- sented itself. On Oct. 7 rumors circulated that another $8,000 in Postage Currency was available for distribution. People bolted from the starting gate. Under the headline, "The Rush for Postal Change," the Enquirer report- ed that the notes "created an excitement with the retail dealers, who have been suffering for the lack of small change, and the rush at the commencement of business at the Customs House was overwhelming." Supplies were rationed to $5 per person. Think of that, only 1,600 indi- viduals could be accommodated in a city of 160,000 people. Even then one greedy soul boasted he had obtained five times the specified amount. The Enquirer said that he must have spent the entire day standing in line to amass his small sums. Alas, by nightfall the entire amount was gone, but not before the small change furor had exceeded the woes of the coal famine of the previous winter. The Postage Currency supply had failed to meet even one-tenth of the demand, the paper said. This rush for postage notes was only a prelude of what was to come. In dire straits, the merchants of Cincinnati sought sympathetic ears in Washington, D.C. Forty thousand Cincinnatians relied on retail trade, and several of the mercantile members of the City Council estimated losses due to the inability to make change at $100,000 to half a million dollars. One of the activist members of the city council, inventor and manufacturer Alexander Latta, suggested that they simply descend on Washington as a group and remind the President, the Secretary of the Interior, and the Attorney General about political realities. All three, Abraham Lincoln, Caleb Smith and Edward Bates, were westerners likely to be sympathetic to the needs of their suffering Republican brethren. "Mr. Latta wanted the Committee to go to Washington and inquire of Messrs. Lincoln, Smith and Bates if they had forgotten where they came from, and if from the West, why [more Postage Currency] had not been sent out here. We should demand that our share of the postal currency be sent West," Latta said. Fellow Ohioan Salmon P. Chase held the Treasury Secretary portfolio at the time, and the remonstrances of local merchant and banker John W. Ellis and others for relief finally met with some success. On Oct. 10, Chase directed that a special shipment of $10,000 in Postage Currency be sent to Cincinnati, according to an entry in his personal diary. Unfortunately, such a sum was merely another drop in the bucket. The meagerness of the sum in the face of the severity of the problem, only exacer- bated local opinion. Citizens felt like salt had been poured on civic wounds. The situation was bleak, the newspaper said. Postage Currency was in such short supply that, for example, the Pendleton Street Car Co. was giving only 30 cents in Postage Currency in change for a five-cent ride when payment was made with a 50-cent Postage Currency note. The "crying scarcity of small change continued." The use of postage stamps had failed. The issue of Postage Currency was yet to get off the ground in a meaningful way. Local businessmen professed the "disposition. . .to reme- dy the evil by issuing checks," the newspaper reported Oct. 19. Although state law prohibited the issue of such shinplasters, private 21PAPER MONEY • January/February 2006 • Whole No. 241 The Fractional Currency Collectors Board (FCCB) . 1°411,MOIC 1,877•"■, CITILM.Kirr v101 SZ5Z147., ‘ts;'74%*4--. (E1:54 . -71()S11 ki +e Thanks the Society of Paper Money Collectors for this special issue of Paper Money dedicated to Fractional Currency. all3!11"Z -4141.• X osIX104-61,.. Auer■hed /WI/ / ///irovs,it -rit umh- For information about the FCCB contact membership director Bill Brandimore at 515 Grand Ave, Wausau, WI 54401. Come join us and learn more about Fractional! atiogifikOltlty.ay7A s iSTAKIREAStlitrh, IE ekAlitille.SZTAKOWII bvsi;a4rxtenrsarrizEr.s. _ trts. POW.V41)1 0.1e1CF.--- Fog UNnao s , -Z!„,ON/ ;;;;;-.. eXCIL13 101 ; • -.‘" 11 1-1 •di:$07/1/e-W 1 •1 7 INSV/1/ ..DOLLtres. ) 433. /ham ,---- ortil// , /ISS /hit,/ r '4, /hi t • 5 0545'ZAPpRcrio tt; • I s' ..e":',=e4=V:74;?Z' January/February 2006 • Whole No. 241 • PAPER MONEY resourcefulness filled the void. The newspaper recounted the state of affairs: "As a last resort, hotel keepers, merchants and others are inclined to adopt the alternative of flooding the market with 'Good for Ten Cents' pasteboard." Even members of the City Council were issuing such change checks in connec- tion with their business interests. "There is no law against necessity," one of their number opined. Circulation was extensive. Cincinnatian Henry Clay Ezekiel listed nearly 100 varieties of cardboard chits alone. Newspaper endorsement 22 Introduction of hundreds of millions of dollars in fiat legal tender notes created inflation. As the value of these notes sunk the value of Postage Currency, which was tied to Demand Notes and specie by their redemption clause, rose. Eventually, in places like Cincinnati this premium reached 20% and more. Holders of the scarce notes available were naturally reluctant to part with them. Treating the situation realistically, the Enquirer editor agreed with his change-strapped fellow citizens. "The necessity of change is imperative," he wrote. "As all other sources have failed, the inevitable result must be the intro- duction of the shinplaster system." The Enquirer endorsement, however, was couched in rhetoric. "There is undoubtedly consider- able silver in the market, which is kept out of circula- tion on account of the high premium demanded," it noted. If everyone concerned generally accepted that commercial premium on specie and received and paid it out based on its advanced value, coinage might return to its purpose, the paper suggested. "This method, if universally adopted, would soon remedy, to a great extent, the inconvenience arising from a scarci- ty of change," the publication added. Unfortunately, that simple expedient, which was also proposed by Horace Greeley in New York and other editors, never materialized. Having covered their bases, the newspaper's publishers Faran and McLean could not help but be more than a little biased by such small change propos- als. They were hardly disinterested parties to the out- come of the discussion. Beginning in mid-October, the newspaper actively solicited shinplaster job print- ing for Hart and Co., a subsidiary located in their basement. Although Cincinnati was THE major Western city of the time (Chicago not excepted), it was being overlooked by officials in the East, Queen City mer- chants and public alike felt. Even while Washington bureaucrats kept promising that the pace of Postage Currency distribution would be quickened, the minute quantities of Federal fractionals seemingly dried up before reaching commercial channels. The situation continued to deteriorate. Weeks later the problem was no better. In fact, with the passage of time and no substantial relief, the mess became undoubtedly worse. A frustrated Customs Collector, Enoch Carson, representative of the government and its depositary, found in necessary to take the offensive. Officially it was maintained that production was earmarked one-third for New York City, one-third for Boston, and one-third for the Western regions. Although that distribution plan might have been equitable on paper, it was not working in fact. By the end of October only $8,000 had gone to Wheeling, WV.; only $8,000 had been received in Pittsburgh; and only $25,000 had reached Cincinnati. Cincinnati could no longer survive on promises from Washington. Hounded by local businessmen, harassed by the public and local newspaper PAPER MONEY • January/February 2006 • Whole No. 241 23 editors alike, Customs Collector Enoch Carson took matters into his own hands. Unheralded, he boarded a train Oct. 26 destined for Washington to attempt to shake loose some of the rationed official change notes for his fellow Cincinnatians. The Depositary's trip to Washington was a great success. Carson returned to the Queen City acclaimed as a virtual conquer- ing hero on Nov. 1st. The Cincinnati Daily Enquirer spot- lighted his successful return in the following day's newspa- per. "He [Carson] has succeeded in obtaining a promise that $25,000 of the change should be sent to Cincinnati at an early period of this week. When it arrives it will be dis- tributed as soon as the necessary arrangements can be made," the paper reported excitedly. In an interview with the newspaper, Carson said similar commer- cial disarray was disrupting New York, Philadelphia and elsewhere. Contrary to rumors circulating in the press, he said, stepped up pro- duction of the Postage Currency had not happened as yet. The high- est production day to that time had been but $27,000. Still officials in Washington and New York were promising that the pace would be quickened imminently to $100,000 daily, Carson told the reporter. Even with the promised new shipment, Carson informed the press that he would be forced to limit quantities to $5 per individual. Even then, the paper claimed, the promised $25,000 amount would go a long way to easing the scarcity of money in the marketplace. At that time the paper's "Commercial Intelligence" quoted silver at 23-24 percent premium for half dollars and quarter dollars in Cincinnati (the same premium as Demand Notes, by the way), and 18 percent for smaller silver frac- tions. But at those rates the largest holders were only rebuilding their stocks of specie; none was flowing into the marketplace because the sharpest financial minds were not selling. They fully expected the rates to go higher still. The limited amount of Postage Currency in circulation in the Queen City was causing "serious inconveniences. . .as the mer- chants refuse to change a bill if less than 50 cents worth is pur- chased, and in some cases 75 cents worth," the newspaper report- ed. The paper's commercial writer whetted readers' appetites when he predicted that Carson would release the newly acquired $25,000 in Postage Currency within a day or two. This report only fueled already overheated consumers. Expectations rose. As the big day approached, the city's populace peaked at a fever pitch of excitation. Twenty-five thousand dollars in new Postage Currency would dou- ble overnight the stock already released in their city. As the day of deliverance approached, conversations in saloon and salon alike turned increasingly to that topic. There was little else of such great import to the public's mind. Not even war news from "the front" came so readily into public discussions. The expectation built like that before a summer thunderstorm which would finally douse an extended drought. Candidates for the currency (and that included everyone) could think of little else. The storm breaks Heavens opened and the storm broke on Nov. 4th. It was a day that few who experienced it would soon forget. The electricity that had been generated by want and built up by three months of privation broke loose all at once in a savage fury. "Yesterday was a day of excitement in Cincinnati, the like of which has Postage stamps were an inadequate means of making change, but as an emergency expedient were pressed into circulation in Cincinnati and elsewhere. John Shillito's dry goods emporium was only two doors from the Cincinnati Customs House where Postage Currency was being paid out, but prox- imity proved no remedy to the retailer's change problems. Shillito and three other firms took matters into their own hands and circulated their own stamp money. Shillito paid out about $1,000 face value of this small change. 337,r, 3 IC t the% Is /To. yew *anti mem d.r in hon. a de re ea 8ca,Loa to ag tbe- :eaths, Wag 0; the o IT* traita Cbstts Troops Called •Into Sorties to Quell the itcoltetoost• b Tim COLLECTOR ousiantss. mom 111 tompettel to Stop ippeols to Cly • Cara to Item liso. • NO MORE NUNN/010Y TO BS D1STRNM t17 SD TO■DAIN • • r. Ts* *grind nails learribT 011alimmilk BnalAt 111131M Or 'Or7 t1401140" BES010110:1111 TO zmaisax* DISOVIINIOS 111 •ILIIIIJOTailf NON •, 2 _alkaagaRPOINialg. • <,1 . U fel a 24 January/February 2006 • Whole No. 241 • PAPER MONEY not been known in this city for many years," the Daily Enquirer reported Nov. 5 under a banner, I2-deck headline, headed: "The Small Change Panic In Cincinnati," The tenor and flavor of the report is captured by some of the read out headlines pitched beneath that squealer: "5,000 Citizens Demand Postal Currency At the Custom-House Yesterday "United States Troops Called Into Service to Quell the Excitement "The Collector Disburses $15,000 "Compelled to Stop Distribution and Appeals to City Council to Relieve Him "No More Currency to be Distributed Today" Given its pandering headline, "Apprehensions of a Rito," the newspaper's account opened in an understated fashion. "There is no concealing the fact that the small change panic absorbs the attention of all classes of citizens, and the inconveniences, under which particularly the retail trade and laboring class- es labor, have led to a great deal of clamoring for change," the Enquirer said. The Collector's office, at the Customs House, has been besieged daily to the most provoking degree. In church or bed, on the street or in the office, there are cormorants for postal currency, begging for five dollars' worth or Uncle Sam's change. The annoyance is e: without parallel, and the demand is greater than it was three ti months since,. . ." the report continued. 0 What had happened simply put is that the crowd, numbering 5,000 to 8,000, had descended on poor Enoch Carson en masse in a virtual carnival atmosphere. Expectations were high; deliverance was nigh. • To control such a vast crowd, a special chute bad been constructed to funnel people single file past tellers' cages. The early birds must have been jubilant to finally get the promised Postage Currency into their clutches. But after hours and hours of paying out $5 sums, apprehension overtook those still standing in line awaiting their turn at the cashier's cage. Tension prevailed. The day wore long; the crowd's mood turned ripe, then ugly. Collector Carson rationed out the aforementioned $15,000 in small amounts by late afternoon, and yet much less than half of the crowd had been supplied. Disappointment loomed on the horizon for many. Most of the crowd had been standing in the street all day long patiently awaiting their opportunity to acquire the precious slips of paper specie. Now fears that the Postage Currency would all be gone before they got to the tellers' cages started to sink in. The crowd's mood turned ugly. They crushed forward and mobbed the Customs House. Collector Carson, who had started out the day as the public's savior, had suddenly Although yellowed newspapers don't once again resumed the position as the object of their scorn. reproduce well, it is apparent from the The din in the street grew louder and more demanding. 12 headline decks with which the Carson terminated his disbursement, closed his doors, and drew his something rather major was amiss in the Queen City. story of the Postage Currency riot that Cincinnati Daily Enquirer reported the siege. shades. Then the mob actually turned violent, their expectations having been crushed with cruel disappointment once again. The mob shouted and railed against Carson. Then they turned upon the Customs House itself and laid ....;,.......,-_, Tn c:-...z.1 Ctar.,73 rzfle 1:1 Ciz- cirmati. . . ln. tte • - • - • . . .7c.ft 1 3,V.51) e±rzniarzalto "Tong. ametarria .... :: .7, c-:: ..... 3 2 -El 0 1'0 TE3TTEDAL - - ■, % $ 1:';'.1:7AE.11SIVIS OF A RIOT.• .:..1 1.1 rab:e. 25PAPER MONEY • January/February 2006 • Whole No. 241 Clore, C-r-nts! Brandon's friend Howard taught him that real nickels were made of paper! ONLY e ASSISTAKT Join the FCCB and learn all the fun facts about history just like Brandon! For membership information contact Bill Brandimore, 515 Grand Aye, Wausau, WI 54401 (Ad paid for by Howard Cohen, FCCB Secretary) , rtr:LAr.Gr.D ny TELE (7:7 ra1..'ettrr's c; •. c7.1 Lasr-ve.E z.nr.te dee., ere., - ese., are. Yesterday rta a day of cctetensent 1A Ctn. darati, the 11,%e of which has not been knorn in this city for away rare. There a no concealing the fact that the small- change panic absorbs the attention of all claccre of citizens, and the inooureniences, und::r tralch partionlrzly the retell trade and laboring clames labor, have led to a great erti of clamoring for change, either from the Go-rernment or the issuing of scrip by the city. The Colleetcres ofice, at the Osa- tcm•bonse, has been benieged daily to the =cot prorckIng degree. In church or bed, on the street or in the arias, there are car merunM for posts1 currency, bagging for ere dollara' worth of Uncle cam's change. The annoyance is without a parallel, and, not- withstanding forty-thousand dollars hare been dirributed in Cincinnati, a larger sum than has been received by any other Western city, the demand is greater than it was three months since. Mr. Carson bearing indirectly that the Government was issnine • larger supply than the public knew, $55,000 daily, and that one third of that SCIMIS want to New York, one-third to Boston and one third to the Welt, be tanosed that eke Wen was not c tr., 'en", of all eta tht of $ 2 2C to $1 ar It nt to 8 , 1( be 2 in in tb el at ib eb TI the2 . y xi in to- ', com- ma:. ::34 ;1 .113? aatly Ltd X CI?. fzh ig the ' the 7 en-. e had spent] 0110w. %WNW 26 January/February 2006 • Whole No. 241 • PAPER MONEY Calling out the Army Carson, a Federal official, summoned the Army for protection. A large contingent under the command of Gen. Lew Wallace (who would later write the famous novel Ben Thir) had been stationed in the city to protect Cincinnati from the depredations of Morgan's Confederate raiders. Now the Army found itself obligated to defend Federal property from its own citizens. "The United States troops called into service to keep the excited popu- lace at bay, were forced to use the bayonet to prevent the disorderly crowd from breaking into the Customs House," the newspaper reported in its typical- ly understated style. "The people clamored: loudly, and openly declared that there was not fair play, although a single passage way had been constructed for a procession to pass the window, each passerby receiving his $5 worth of the currency." The Daily Enquirer, which in some measure was cul- pable in drumming up people's hopes, defended Carson's actions. "Mr. Carson certainly has exhibited every disposi- tion to accommodate this community," the publication stressed. But Carson, himself, had enough of his "no-win" position. Under the security of an armed guard, he stormed into the City Council meeting, which even then was debating measures to attempt to relieve the city's con- tinuing small change woes. On the table was another proposal for the city to issue its own fractional notes. Carson punted. He offered the council a quickly formulated plan: He would turn over to the Council members most of the remaining $10,000 in Postage Currency that he presently possessed. They would then arrange for distribution within their own wards. "He is exceedingly anxious to be relieved from the future distri- bution of the postal funds at his office," the newspaper emphasized. After 100 days of continual frustration, recrimination, and bodily threats, it's no wonder that this harried public servant would "want out." Carson's plan-was a master stroke. It directly answered two crying needs: (1) Decentralizing the distribution which would diffuse massed hysteria of the kind that had chased him from his office that very day; and (2) Hopefully it would also defuse charges of favoritism in the future, because then the council itself (the citizens' elected representatives) could account to the public for the dispersal. "The Council could then make a weekly statement to the public of the amount [of Postage Currency] received and distributed, and all would be satis- factory," Carson hoped. His proposition would also have personal benefits, the Collector knew. If the Council accepted, the buck-passing Customs Collector could extract him- self from his predicament. He could no longer personally distribute the cur- rency to the public, nor would he do so any more. He wished to be relieved of the untenable position into which he had been thrust. "Our citizens need not; therefore, call at the Customs House for Postal Currency. They will not get it there," if the proposal were adopted, the Enquirer emphasized. One can hardly blame Carson. The 24 Council members quashed Carson's offer immediately. There was no way they were going to be caught up in this sticky spider web. One can hardly blame them either. They were not deaf to the roars of the dissatisfied and unruly mob. They had more per- "Yesterday was a day of excitement in Cincinnati, the like of which has not been known in this city for many years," the newspaper account of the Postage Currency riot begins. "There is no concealing the fact that the small change panic absorbs the attention of all clases of citizens ..." DIFARBIT, \.14 INSFUSer DO utrhmati f i'..A:Yyk„.7‘m4clav44072, e,44-/a/-- PAPER MONEY • January/February 2006 • Whole No. 241 27 sonally at stake than their political futures. After all -- those were real steel bayonets the troops had mustered. Would they arrive quickly enough the next time demand exceeded supply? Council members wondered. The newspaper's gentile account of the Council's polite refusal leaves much unsaid between the lines: "The Trustees of the Council very politely thanked Mr. Carson for the honor and confidence, but were positive in their opposition to his proposition -- they were more favorable to going a fishing than to perform such an onerous task. Mr. Carson received the Council's sym- pathy, but no assistance was tendered." Daunted, with the monkey still on his back, the government official "retired to devise some other method, of which due notice will be given to the public," the Enquirer informed its readers. Carson's situation was tenuous, and he knew it. His predicament would- n't just go away with time if he ignored it. The longer the conditions persisted the worse they grew. It seemed to be an unending spiral: Bad to Worse to Much Worse with no end in sight. The shortage of small change -- particular- ly the cherished Postage Currency -- was a festering sore that affected the whole community. The riot's aftermath Customs Collector Enoch Carson's mental state need not be guessed at. In the Cincinnati Daily Enquirer of Nov, 7, 1862, under "Special Notices" he placed this plaintive appeal: "POSTAGE CURRENCY: Persons are hereby notified not to inclose money to me through the Post Office nor in any other way, for Postage Currency. My present supply is about exhausted. The labor of opening these letters and returning them is very great. I have not the cur- rency to supply the one-hundredth part of the demand." Carson then went further in his attempt to assuage public dissatisfaction. The following day he dispatched a letter to the editor of the Enquirer explain- ing his personal plight. "I am receiving hundreds of applications from our business men, asking me to furnish them with postal currency," Carson wrote. "The supply of Postage Currency received by me is totally inadequate to meet the tremen- dous demand that is made upon me, for it." mated that the pro rata share sent to him for distribution up to that time would be less than 5 cents, thus "it would be utterly useless. . .to attempt to supply individual applicants." Carson asked the editor to reprint his response, which was done. Publication of the copy of that letter by which he refused any further corre- spondence regarding Postage Currency would have to suffice for everyone, Carson wrote. He would answer no more inquiries. He no longer had the time much less the energy to open his mail, let alone answer it! Carson then hatched a revised plan to distribute Postage Currency. In the future, he would not risk touching off another riot in the city. Thenceforth -- "and until the supply becomes much greater than at present" -- distribution would be to government officers first before disbursing ANY Postage Currency to businessmen or the public. This new program was simply a variation of the plan that the City Council had rejected two days previously. First priority, according to Carson's He also enclosed a copy of a letter he had addressed to one of the principal busi- TIMM nesses in the community in which he esti- Cincinnati commercial houses were caught short by the overwhelming dearth of government coins in circula- tion AND the scarcity of the promised Postage Currency remedy. Some like the city's grand hotel, the Burnet House, simply turned to the printing press to supply this want. -1 — :..e, ALILLtittaa _ Cu i lila i'-'-1C.iPpz ,„ Armichrdan/yhythe_ • 111 op . -.. ozo •,:" A\v0404.1t4 b"Positartes_.?: - vac., 28 January/February 2006 • Whole No. 241 • PAPER MONEY Early Postage Currency was perforated similar to the postage stamps which the issue copied. Penis allowed individual notes to be separted from sheets. However, these perforations were abandoned as unnecessary in order to save a step in production and speed up circulation of the small notes. reckoning, would be U.S. disbursing officers (paymasters, quartermasters, Internal Revenue agents, and Postmasters); second would be the Ohio state treasurer; third, county treasurers; and fourth, city treasurers. His plan pre- cluded any further direct public involvement since the "supply at present is quite inadequate to meet the demand of the above-named officers. . .They ask for dollars, when I have but cents to give," Carson excused himself. The federal official publicly begged the forgiveness and forbearance of the business community and public. "I fully appreciate the inconvenience the entire community experience for the want of small change to carry on business, but it is out of my power to give the relief asked for." He then explained his situation in detail: "As United States Depositary, I am the only disbursing officer for the whole of the State of Ohio, and a great part of Indiana; the country people and the citizens of other cities and towns in these states, have equal claims with the citizens of Cincinnati for their share of this currency. "Every dollar received by me will be fairly distributed to the people through their servants, as above. The whole amount received by me up to the present date has been paid out, except barely sufficient to carry on the business of this office," Carson concluded. Although Carson had somewhat diplomatically washed his hands of the mess, the problem remained. As November faded and December dawned, the small change problem was still unresolved in Cincinnati. The man on the street was reading about the increased production of Postage Currency back East, but was complaining louder and louder that he was- n't getting his share. Joe Public's pleas caught the ears of the editor of the Cincinnati Daily Enquirer. Regarding the distribution of change and the government's intention to ensure equity, the newspaper said: "It was not intended that one man should be favored more than another, and yet there are thousands of our citizens complaining that they can not be accommodated." The newspaper editor then proposed a novel scheme. The simple solution, he said, was for the government to turn large quantities over to the street railroad companies in the major cities and "let them circulate it. By that means every- body would get a little, and the object of the issue would be accomplished." Since major cities of that time, like Chicago and New-Orleans, were literally surviving commercially by using trolley tickets for change, his idea is not so outrageous as it might at first seem. A month after the Cincinnati Postage Currency riot, the Cincinnati Daily Enquirer reported a familiar story. On Dec. 5 it asked: "There is an increasing demand for small change in this community. If [the] Government is manufac- turing $100,000 daily, would not one day's labor be of immense benefit to Cincinnati?" The interim solution in Cincinnati, as else where, continued to be private enterprise to the rescue. In the Queen City as in many other communities relief took the form of more private shinplasters. These cardboard, pasteboard and paper promises to pay "were of all sizes, kinds, and conditions, from the dimensions of a coal or milk ticket to that of a tradesman's business card," pio- neer Cincinnati collector, Henry Clay Ezekiel, recounted. Many bore such "denominations" as one load of coal, or one loaf of bread. Most were simply produced, printed'in black ink on colored stock. A few were signed by the issu- ing merchant; most were not. 1.17 order or tae NT. Its 7. WADSWOTITIt. Secretary. (Time* copy and en. tonntrer.1 POSTAGE CURRENCY. 1.01■0•MIII0 PERSONS ARE IIERETT NO- TTrIED not to inclose money to rms through the Post•of:Ice nor In any other way, for Postage. Currency. My present trapply is shout ex- hausted. The labor of opening those lettere and re- turning thorn is r•ry great. 1 hare not the Currency to supply the one-hundredth pastor the demand. It L.NOCTI T. CARSON, Depositary. WOTILD AGAIN GALL Tan ottentiera of our readers to the new Shei PAPER MONEY • January/February 2006 • Whole No. 241 29 One particularly large emission was produced at Christmas time that year by T.P. Saunders & Co., proprietors of the city's elegant Burnet House. Their notes took the form of: "Cashier of the Burnet House: Pay bearer Twenty-five (or other-denomination) Cents, when presented in sums of even dollars. Cincinnati, December 26, 1862. No. (filled in ink)." In the center of the note was a picture of the hotel. Note ends were green with the denomination neatly engraved thereon, and a small green border on the sides. Although these notes may have facilitated holiday revelers, they did not receive universal opprobrium. The Daily Enquirer editor, who had ably demonstrated the resourcefulness to speak out of both sides of his mouth, remonstrated: "We have before us one of a new brood of shinplasters that have recently made their appearance among us. They were hatched in a very respectable institution, one that is not in the practice of putting on on its guests anything that is illegitimate, or not worth what is paid for it. "The thing before us is a neat affair, about two inches wide, and four and a hair inches long & of tough tissue paper far superior in quality to that of the Government Shinplasters. . . .It does not look so bad. It is not, however, its looks that we are after; it is something of more importance." The problem, according to the newspaperman, "is a vio- lation of law, and subjects those who have gotten it up and issued it to criminal presentment. It is an example," he con- tinued, "which, if permitted to pass unnoticed, will fill every avenue of trade with spawns of worthless shinplasters, as annoying as the vermin that drives sleep and rest from the inmates of Camp Chase (an Army Prison). "It will not do to say that the issuers are able to redeem it. If one is allowed to issue such paper, everybody can do the same. We hope an immedi- ate stop will be put to these issues by the public authorities. That is about the only way the vermin can be killed," the columnist speculated. Shortage continues On top of small change riots, large numbers of copper store cards, and encased postage stamps; such an outpouring of private small change notes five months after the Postage Currency was created is yet another indication of the extreme shortage of Federal fractionals in Cincinnati. Like its counterparts in other change-starved sections of the country, the Queen City was awash with IOUs, promises to pay, and other paper trash of uncertain origin and value. Decrying the temporary relief these makeshifts brought was simply crying "wolf' at the open, but empty chicken house door. Another indication of the straits to which Cincinnati's commerce had fallen, is that the postage stamps which had been rushed into circulation in great numbers in July, August and September were still passing feebly in com- merce in late 1862. It takes little imagination to envision what they looked like by that time. Year's end brought a call for redemption of the soiled postage stamps yet in circulation. Passed so extensively, they were certainly no longer fit for postal service, and their minimal suitability as a stop gap currency had long since passed. About mid-December the Post Office announced postmasters would begin redeeming stamps which had NOT been postally used. The original plan was that sums up to $5 would be counted and redeemed on demand. But the dilapidated condition of most of the stamps rendered quick decisions on whether they had been used postally or not impossible. And the general crush According to face of the Postage Currency, these notes were to be "fur- nished only by the Assistant Treasurers and designated depositaries of the U.S." In Cincinnati that meant Collector of Customs Enoch Carson, who could have-little suspected what turmoil he would be in as a result of these small notes. Evidence of his thankless job is this public notice, which reads in part: "I have not the Currency to supply the one-hundredth part of the demand." $.5fi per week net profits.—NEW ARTICLE. Every- LI body must have it. Retails for $1 00. Exclu- sive rights for Pale low. For terms &c., address'BAL- SAM & SON. Haverhill, Mass.Massems"P. ' S. Samples for Agents sent by mail for 30 cents, Postage Currency. Ad- firms as above. 30 January/February 2006 • Whole No. 241 • PAPER MONEY In 1861 "Business Card" tokens proliferated in Chicago, direct evidence of the dearth of small change in the West met by pri- vate initiative. By 1862 this need became prevalent in Cincinnati leading to an unprece- dented outpouring of cent substi- tutes produced by local die sinkers like William Lanphear for the busi- ness community. Some writers trace the outpouring of Civil War storecards to the large issues in the Queen City in 1862. of individuals interested in liquidating their wads made this policy unworkable. Reluctantly the Post Office faced up to the vast chore necessary to redeem the stamps it had sold which had then passed against its wishes into commerce. "There was a long line of people in waiting at the Post Office yes- terday to redeem old stamps, according to the plan adopted by the Postmaster," the Cincinnati Daily Enquirer reported in the days before Christmas, 1862. "A large number of the packages left on the day previous were redeemed yesterday. The Post Office officials appear to be conducting the business with commendable rapidity," the newspaper added hopefully. However, the terms of redemption were still not widely known by the community. As the redemption program became more generally known, "longer lines of anxious persons will be seen waiting their turn, and it will be necessary to increase the present facilities for this novel branch of the Post Office business," the paper speculated, since "nearly all of our retail merchants have small stocks of dilapidated gum backs on hand." As word filtered down, redemption lines for the soiled postage stamps strung out considerably. Postal officials adopted a "take a number" revolv- ing door policy for anticipated January redemptions, according to a public notice published Dec. 28. With the recent riot still fresh in his memory, the Cincinnati postmaster devised a plan to cut down on traffic at his own doorstep. Only one redemption was allowed per any "party, firm, or association." The person redeeming the soiled stamps must sort them by denomination and segregate different values in small parcels. The aggregate value claimed, along with the claimant's name and address had to be placed on the outside of the redemption envelope. These envelopes were numbered, and a receipt bearing the same number was given to the depositor. The depositor then waited until official examination by postal workers confirmed the total sum of 0.4 the deposit. When this was done the number was posted on a 'cr,40.. bulletin board at the Post Office, and the individual could claim Of course, any claim was subject to reduction for any stamps deemed by postal officials to have already served their intended postal purposes. Another stickler was that payment was to be made in Postage Currency or legal tender notes. The larger denomination bills were available, but the fractions weren't. So the individual could accept the odd-sums in what else? -- Of course, more postage stamps. However, time and tide do move in the affairs of men. Within a few weeks after New Year's Day, several large shipments of additional Postage Currency turned the corner in Cincinnati. By mid-January quantities of the paper fractions were beginning to free commerce from its frozen con- dition, which had mirrored the state of the ice clogged Ohio River a few blocks south. On Jan. 15, 1863, the Cincinnati Daily Enquirer reported a commercial rumor under the heading "Whispered About" to the effect that the Postage Currency was "becoming abundant." "There is little or no dif- ficulty," the Enquirer said, "in getting a dollar bill changed for a purchase amounting to only ten cents," the editor recounted jubilantly. At the same time the newspaper urged the community to finally sweep clean the litter of private shinplasters plaguing the city. "With such an existing 0 S 174 - Af° his money. UNITED STATES TREASURY. -- NEW-YORK, Nov. 13th, 1862. This will entitle the holder to re- ceive in exchange for United States Notes -Dollars in POSTAGE CURRENCY, each Monday and Thursday until further notice. JOHN J. CISCO, Ass t. Treas'r, U. S. y UNITED STATES TREASURY. NEW-YORK, Nor. lath, 1882. This will entitle the holder to re- . ceive ipfgange for United States Notes , OSTAGE RRENCY, each Tuesday until further notice. JOHN J. CISCO, t/e.44-/741/ Ass't. Treas'r. U. S. in and PAPER MONEY • January/February 2006 • Whole No. 241 31 state of things we see no reason why the individual shin plasters, issued by almost everybody, should be tolerated in this community," the newspaper said. Then the editor added ominously: "In fact we have heard it whispered about that all who have been guilty of this violation of the law will be presented to the Grand Jury at an early day." Relief from the Postage Currency was short lived. The virgin snows of winter are the sullied slush of March. By springtime 1863 the large influx of small Federal bills had quickly become the "stinking mass of paper" their critics had predicted them to become. Even Cincinnati residents were becoming sick of the Postage Currency that they had taken to the Streets to obtain only months earlier. Passed from hand to hand throughout the inclement winter season, these small bills had suffered the same fate as the stamps they had replaced. Postage Currency became dirty wads in pockets and pocket books alike. The government knew it needed to implement a currency exchange, but it also needed a ready replacement for the notes it redeemed. After nearly a year of intractable problems supplying small change it wouldn't do to rock the boat prematurely. The Treasury Department also had viewed the Post Office's recent headaches in removing its postage stamps from circula- tion. A workable strategy was obviously necessary. Fractional Currency The government brain trust of Treasury Secretary Salmon P. Chase, Internal Revenue Commissioner George Boutwell and Treasurer Francis E. Spinner went to work. The first plank in their program was laid by the Act of March 3, 1863. Among other things it provided for the issue of a new series of Fractional Currency. Importantly, these replacement notes were no longer to be receivable for Customs. Thus they were no longer legally equiva- lent to Demand Notes nor specie. This made them less likely to be hoarded than the failed Postage Currency had been. It also would guarantee their circu- lation as the least valuable money available: a reverse application of Gresham's Law. In addition the Act also pegged the new Federal fractionals to a depreci- ated greenback (the legal tender notes, rather than the Demand Notes which were selling at a premium) of floating value. Both considerations would tend to keep them in circulation where they needed to remain from a monetary stand- point. So the plan was a good one. Unfortunately, the new notes were as long delayed in making an appearance as their predecessors had been. Although specimens of the new notes had already been printed by February 1863, new circulating notes in quantity were not ready for release to the public until Oct. 10 because of many production problems, but that delay could not have been predicted eight months earlier. When the new Fractional Currency was finally released, it was done on a replacement basis, so the stock of small currency in circulation (which by then was ample) did not become redundant. The Treasury brain trust unveiled their redemption and conversion plan April 1, 1863, in Washington. Immediately the word was flashed to disgrun- tled merchants and consumers alike via telegraph and newspaper exchanges. However, official word was slow getting to the West where impatient Postage Currency was in short supply everywhere. To remedy the kind of problem U.S. Depositary Enoch Carson experienced in Cincinnati with mob violence, Assistant U.S. Treasurer John Cisco in New York City issued -- within a week of the Cincinnati riot -- permits for an orderly disbursement of the notes. Permits were issued on Monday- Thursday and Tuesday-Friday basis. The author suspects permits were also issued for Wednesday-Saturday, although he has never seen one. WED 1,40 kire i41:trt. -of *2' istkREE IDA" a a.' OOP silaiir „ (II "": . Asa" Voratl'-' January/February 2006 • Whole No. 241 • PAPER MONEY32 The contruction of the hastily framed Act which monetited postage stamps and led to Postage Currency unwittingly made the notes receivable for import duties. Because they could be used to pay cus- toms, they were legally equivalent to Demand Notes and specie, both of which sold at a premium. This caused hoarding of the Postage Currency, which itself prolonged the difficulties they were supposed to remedy. The Fractional Currency authorized by Act of March 3, 1863, remedied this problem. Cincinnatians waited eagerly for a chance to rid themselves of these small bits of paper that they had taken to the streets to obtain. On April 10, 1863, U.S. Customs Collector Carson finally received the rules for Postal Currency Redemption from his superior Francis E. Spinner, Treasurer of the United States. Carson immediately published them. They are strikingly similar to the Post Office plan for removing circulating stamps, but are interesting enough to be recounted here: "(1) Postage Currency, not mutilated (emphasis in the original), when pre- sented to an Assistant Treasurer, or designated Depositary of the United States, for redemption, must have been assorted by the holder, according to denominations, with the faces and upper sides in corresponding order in the package. "(2) When presented in sufficient numbers, each package must contain one hundred pieces; it must be securely pinned with a paper strap at least one inch wide, and on the strap must be written, in ink, the number of pieces, denomination, date of deposit, and the name of the owner. "(3) The entire deposit must be securely done up in one package, and upon the wrappers, indorsed with ink, the date of deposit, the amount contained, and the name and residence of the owner. "(4) No sum less than five dollars will be redeemed, and packages will be paid for in lawful money of the United States, in the order as to time in which they shall have been received so soon as the currency can be counted and passed upon." In other words, the person redeeming notes needed at least 100 unmutilated notes of a denomination. The immediate effects of this notice were two fold: (1) People possessing notes in decent shape would not spend them; and (2) People possess- ing notes in poor shape could find no takers. It was like gum on one's shoe. The government created another tacky administrative boondoggle. It had pulled the plug on its (finally) moderately successful plan of floating paper small change in the streams of commerce. What was a person to do? Well, federaldom also had its plan for mutilated notes, which constituted the bulk of the original emission by then. Its "Rules For Redemption of Mutilated Postage Currency" were concurrently published by Collector Carson. These instructions given the Customs Collector read: "Fractional notes, commonly known as Postage Currency, can be exchanged, if not mutilated (again, the emphasis is in the original) with any Assistant Treasurer or designated Depositary of the United States, in sums not less than five dollars. (Note: the minimum requirement for non-mutilated notes was 100 notes of similar denomination, 100 X 5-cents equals $5.) "Defaced notes, if whole, are not considered as mutilated; nor is an evi- dently accidental injury, not reducing the note by more than one-tenth its orig- inal size, regarded as a mutilation. "Mutilated fractional notes will be redeemed at the Treasury of the United States, at Washington (emphasis in the original), under the following regulations, established as necessary guards against fraud, and for the protec- tion of the community: "(1) Fragments of a note will not be redeemed unless it shall be clearly evident that they constitute one half or more of one original note, in which case, notes, however mutilated, will be redeemed in proportion to the whole note, reckoning by fifths. PAPER MONEY • January/February 2006 • Whole No. 241 33 "(2) Mutilations less than one tenth will be disregarded, unless fraudulent; but any mutilation which destroys more than one-tenth the original note, will reduce the redemption value of the note by one fifth its face value. "(3) Mutilated notes presented for redemption, must be in sums not less than three dollars of the original full face value." Exchanges were made in United States notes and additional Postage Currency, which the Treasury continued to pay out until May 27. By then nearly $20 million was outstanding. What officials used to pay out odd sums after that date before the Fractional Currency notes were ready that fall is open to speculation. What can be stated emphatically, however, is that anybody exchanging Postage Currency for United States notes or Fractional Currency in the fall of 1863 lost a good deal of money (more than 30 percent) on their differences in value. That may just be an academic point, today. Having been hard pressed on many sides, the Cincinnatians who queued up to exchange their Postage Currency may not have cared. The panic of the year before may have largely faded from their memories. Given the fickleness of public opinion, they may have been even eager to be finally rid of the star-crossed notes they had once wanted so desperately. One thing is for sure though, the small change riot of Cincinnati is a unique story not known by many, but well worth the retelling. It was such a riveting story that when the U.S. Postal Service compiled its Bicentennial History for Cincinnati, the government sought and received permission to publish an adaptation of this article in their official history book. Acknowledgements I would like to dedicate this article to my fellow Fractional Currency col- lectors who belong to the Fractional Currency Collectors Board. I am proud to be member #55 of that group. FCCB mem- bers are among the most avid of hobbyists. As specialists, we delight in the minutia of our chosen syngraphic interests. Members also make exceptional opportunities to leaven their extremely competitive pursuits with that special camaraderie of shared fellowship. Among their number, I would like to thank John and Nancy Wilson, Kevin Foley, Martin Delger, Wally Lee, Milt Friedberg, Len Glazer, Martin Gengerke, Wayne Homren, Tom Denly, Benny Bolin and Yancey Green for past services rendered. I would also like to thank the late Matt Rothert, Jeff Williams and the late Herb Melnick for the opportunities to expand my own Fractional Currency horizons. The American Numismatic Association is to be commend- ed for helping to promote my research by awarding me a substantial grant years ago. Several others have also contributed to this article in various ways. They include Wendell Wolka, the late Ernie Keusch, Robert Kincaid, and Hank Spangenberger. Thank you all. Fractional Currency was "Receivable in payment of all dues to the United States less than Five Dollars EXCEPT CUS- TOMS." By altering the payment clause of the notes, Congress rectified a defect in the Postage Currency when the new Fractional notes were authorized as can be seen on this marvelous wide margin Specimen note. Don't forget to mail in your dues. We have outstanding National Bank Note and Obsolete Note articles coming up. We're adding COLOR inside, too! UNITED STATES PAPER MONEY A REFERENCE LIST OP PAYER MONEY INCLUDING FRACTIONAL CUR ISSUED SINCE MI A LIST OF UNITED STATE';S COINS 31. GEORGE H. BLAKE NEW YORK Milton R. Friedberg ... The Encyclopedia of United States Fractional & Postal Currency 34 January/February 2006 • Whole No. 241 • PAPER MONEY Fractional Currency Literature By Benny Bolin FRACTIONAL CURRENCY WAS PRINTED IN FIVE issues between 1862 and 1876. During those 15 years, 369 million dollars of fractional was printed. After redemption, there is an estimated 1.8 million dollars, or 1/10th of one per- cent still extant. The phrase "buy the book before the note," is especially important in lesser known collecting areas, like Fractional Currency. Fractional Currency has few experts to rely on, so it is important that the collector/researcher find adequate ref- erences to work from. However, only eight references have been written with a major portion dedicated to Fractional Currency, so the collector/researcher has to rely on other types of literature to find the information needed. Besides ref- erence books, auction catalogs, dealer fixed price lists, original articles and historical books/biographies must be used. Reference books United States Paper Money; A Reference List Of Paper Money, including Fractional Currency issued since 1861 by George H. Blake 1908. One of the earliest reference books on paper money, this book had a large section on Fractional Currency. It starts with a nice history of fractional and has descriptive information on all five issues. It also includes a chart showing up-to-date redemption and outstanding amounts. Fractional Currency of the United States by Daniel Webster Valentine, 1924, was the first comprehensive reference on Fractional Currency and was based on F.C.C. Boyd's extensive collection. The idea for the work was born in 1913 at the New York Numismatic Club. A commit- tee was appointed to "revise and arrange a list as complete as in their power." Valentine was appointed chair- man and his com- mittee members included David Proskey, George H. Blake and Boyd. Most of the work was done by Valentine. The book remained the standard refer- ence for Fractional Currency for almost 40 years. Valentine's is a very extensive reference, divided into two volumes (con- tained in the same binding). The first volume outlines the his- tory and descriptions of the issues. The second volume is the actual catalog of the types and varieties and assigns them a Valentine number. The book was published in hardbound and softbound copies. Schultz's Checking List of Fractional Currency by Walter F. Schultz, 1935. This reference, published by Walter Schultz of Dallas, TX is thought by many to be the rarest Fractional Currency reference. He was not satisfied with any book avail- able, so he wrote his own. Schultz wanted a simpler, yet more complete work than existed at the time. He desired a "refer- ence book that would positively identify every type and variety in a brief, clear and orderly manner, without any confusing and unnecessary details." The compiler actually did two edi- tions of his reference, but the only difference between the two is that the latter edition has information about the third issue Grant/Sherman essay. United States Postage Currency and Fractional Currency and Classified List of U.S. Postage and Fractional Currency by Dr. Frank A. Limpert. Dr. Limpert, a retired dentist, wrote his first book in 1946 with an eye to the historical details of the men pictured on the notes. He was very interested in the his- tory of the notes and with sharing this historical information with others. His supplement, The Checklist, published in 1947 provided less historical information on the notes, but did detail them and had prices listed. United States Postage d.7' Fractional Currency by Art Christoph and Chet Krause, 1958. This oversized book on Fractional and Postage Currency is actually a reprint from a Numismatic News article on the subject by Christoph and Krause. Published in 1958, the book shows the notes in large size with great detail as well as individual placement of notes on sheets. A Guide Book of United States Fractional Currency by Matt Rothert, 1963. Matt Rothert's book incorporates much of the same information as previous references as far as the history of the series goes, but it gave up to date valuations and included new finds and variations not outlined in other references. Although very simple in approach, it was a major break- through in the hobby and was the major reference until 1978. The Encyclopedia of Unites States Fractional & Postal Currency by Milton R. Friedberg; edited by Martin Gengerke. 1978. In 1978, Milt Friedberg (no relation to Robert Friedberg) published his massive Encyclopedia. It is the most in-depth reference of Fractional Currency ever published and stands that way today. Besides the history of the notes, Milt also includes ALL varieties, including errors, paper and ink variations, courtesy auto- graphs, speci- mens, proofs and experimen- tals. Milt began collecting Fractional Currency in the 1960s working with Lester Merkin. As his own collection grew, he began keeping notes about every note known in the references on individual ROBERT J. RRAVTTZ A COLLECTOR'S GUIDE CURRENCY 50• SPECIAL LIST No. S. OCT. 1009. Unique Collection of Essays & Proofs of United States Fractional Currency. FOR Al' PRT,I, ED. FROSSARD. Suranattaaafir win AM:HA/A.001S, _ros Ewa:, 14th St.. New York; or , 221 Lexington Avert, 1..ro070y, N. V. Ilar Every paced rent parr,. ex receipt of remittaticc. Toprevent error, 03E44 off pu..eng want. and:Teturn Iht rvl,l, ofticr. 7111s unique Collection of 1..asays a. Proofs of 11. S. Esaetional Currency WiZSI7;t."8."'PrtX' IL‘1:in ‘E' t'c'Er:.' co"- r7 tt=',""‘"' r Oollevtion thi‘ZtMlarlfts. tio so far an III. collo.. is $30.,,Z1, ,C1, :a.:.pgis cfrdpaper U.S.bonds. brown and blue, U. S. FRACTIONAL CURRENCY. SECOND ISSUE. Obverse only, without gold dug; rev- Slang. 2 50e. •rrial proofs (kin parer. wide margins (1) 75 3 50c. Space to right for' 50 . and word .1 owl, " to left. blank. First proof. M. 1r04 CO.'. Same. Largc gold letters over face 5 00e. All l.pdce3 for value blank, large 50 fir. UARCII Al 18011 beneath in gold • I 5 00 0 (0c. Same as last, bin pap all values inverted 1 1 3.00 7 50a. Plain, fine fibre. er 1 00 8 60c. Same, fine thin membranedlibre paper I 00 0 110c. Impression before cleaning plate, Dec. 7, 1803. Heavy membrane fibre paper (I) 80 10 50c. Large gold oval. blank field. Roc, cartninc • large So in gold, T-1-18-63 in rorneo 11 50e. Stone as last, but 50 on rev. ret ersed. in corners. 4.00 4.. (0) 1.00 FRACTIONAL CURRENCY REGULAR ISSUES UNIPACE SPECIMENS OP ADOPTED TYPES UNIPACE WIDE MARGIN PROOFS ESSAYS EXPERIMENTAL PIECES LESTER MERKIN 515 MADISON AVENUE NEW YORK 63, N.Y. PL.= 3.1130 PAPER MONEY • January/February 2006 • Whole No. 241 loose leaf notebook pages and added to them as he found more information. When he found an unlisted note, he would make a new page. These eventually filled over ten three-inch binders and were the basis for the encyclopedia. These original binders with information pages exist today in the authors' library and are a wealth of information. The encyclopedia was published in softcover, hardcover and a lim- ited edition (50) interleaved blue cover book. Milt gave the Fractional Currency collectors club permission to continue to update his encyclopedia and make it available to new mem- bers. A short time ago, Milt, in collaboration with a few mem- bers of the FCCB did a supplemental "Simplified Edition" aimed at new collectors. Both of these works are still part of the new member packet of the FCCB. Sadly, due to a stroke a few years ago, Milt is unable to attend shows and conventions and is missed by all who knew him. A Collector's Guide to Postage & Fractional Currency by Robert Kravitz, 2003. The newest reference on Fractional Currency was written by long-time deal- er, Robert Kravitz. His hope was to have an up-to- date book that is as easily read as Rothert's, goes beyond the basics of Robert Friedberg's but is less complex than Milt Friedberg's encyclopedia. Kravitz cata- logs all the notes using the three major cataloging systems, Milton #s, Robert Friedberg #s and Krause-Lemke #s. He employs an easy to use and understand rarity system and goes into much depth, not only in the history of the series, the times and the men on the notes, but also on the actual notes themselves as to variations, size, etc. Articles Due to the relatively small number of reference books, information on Fractional Currency must be supplemented elsewhere. One of the most important sources of information is original articles that are published after in-depth research on a subject. One of the earliest articles of this type written on Fractional Currency was by Thomas Cunningham of Mohawk, NY, and a close personal friend of F. E. Spinner. He was one of the earliest collectors of Fractional Currency, getting many of his notes directly from Spinner. His article was published in the American Journal of Numismatics, volume XXIV, #4 (1893). Cunningham makes a listing of all the known fractional notes at the time, and interestingly combines the fourth and fifth issues into one. While there are many venues to find these articles, the journal of the Society of Paper Money Collectors Paper Money has long been one of the most popular choices. Since its inception in 1962, our journal has published many important and ground-breaking works on Fractional Currency. This 35 culminated in January 2003 when the journal had an entire special issue devoted to Fractional Currency. Other places to find original articles are in the numismatic press, most notably Bank Note Reporter, Coin World and Numismatic News. Club publications such as The Numismatist, The Rag-Picker and the Fractional Currency Collector's Board Newsletter also at times yield original articles. Fixed Price Lists Fixed price lists were printed by dealers showing their available inventory of notes. Researches and collectors use these to not only identify various notes and varieties, but also to pedigree notes and follow them for years. The rarest fixed price list in Fractional Currency is the Frossard list which had all the notes from Spencer Morton Clark's collection in it. Special List #8--October 1, 1893. Unique Collection of Essays & Proofs of U. S. Fractional Currency sold by Ed. Frossard a New York dealer. "This unique col- lection of essays and proofs of U.S. Fractional Currency was formed by the late Mr. S.M. Clark of the Bureau of Engraving and Printing, U. S. Treasury, Washington, D.C." It listed 70 pieces, most unique, from the personal collection of Spencer Morton Clark. After Clark's death, a collector bought the collection from his wife and eventually gave it over to Frossard for sale. All notes listed are marked on the back in gold/bronze ink with the corresponding number on the list. Scott's Coin and Stamp had one of the earliest, if not the earliest listing of Fractional Currency. Interestingly, it was first published in 1879, less than three years after production of Fractional Currency ceased. B. Max Mehl had many auctions and lists with Fractional Currency in them as did Hesslein, Bluestone, Donlon, Raymond, et al. The green list was printed by Lester Merkin in 1963. It is his list #4 and is primari- CELEBRATED Dr. Frank A. 1Limpert Collection of U.. S. PAPER MONEY FRACTIONAL CURRENCY Public Auction. Sale SATURDAY, SVP FEIVIBER 24. It 5 36 January/February 2006 • Whole No. 241 • PAPER MONEY ly the listing of the Caldfield Collection of fractional which he was selling. Len and Jean Glazer formed Fractional Currency, Inc. and issued many price lists and auction catalogs that are now standard references to the hobby. Auction Catalogs All of the major auction houses included some lots of Fractional Currency in their sales even while fractional was still being printed as evidenced by the Bangs auction of 1869. At the time of the sale, the third issue of frac- tional was still being printed. The auction included one lot of "Postage Currency—All Different." These early catalogs are utilized by collectors and researchers for variety identification and note pedigrees. The Monroe J. Friedman auction conducted in 1903 by S.H. and Henry Chapman was touted as "the finest series ever offered at auction." It had many important notes, including 158 regu- lar issue notes, 67 sheets and/or multiples and 54 experimen- tals. Many of the sheets are the fourth issue sheets that were in the John J. Ford, Jr., collection that was recently sold by Stack's. Many other of the notes have not been seen since this auction and are not listed in the Friedberg Encyclopedia. Some auction sales were the collections of authors of Fractional Currency refer- ences. Stack's sold the Dr. Frank Limpert collection in 1955. American Auction Association sold Matt Rothert's collection in 1973. One of the most sought after catalogs of the time is Abe Kosoff's catalog of the ANA sale of 1958. This sale contained the Maurice Burgett collection of Fractional Currency. However, the original auction catalog did not contain any photographs of the notes. Kosoff corrected this by publishing a well illustrated supplemental catalog of just the Burgett col- lection. It was published on October 1, 1958, and dedicated to F.C.C. Boyd who had passed away just three weeks earlier, on September 7, 1958. It has a vignette of Samuel Dexter and is covered in a very distinctive "crackled, onion skin" paper. A new auction house entered into the fray during this time, Pine Tree Auctions which became NASCA and is now R.M. Smythe. They have sold and continued to sell many important Fractional Currency notes and collections, includ- ing the Rocky Rockholt collection in September 1981. Len Glazer, Allen Mincho and Kevin Foley formed Currency Auctions of America (CAA) in 1990 and had their first sale at the St. Louis Paper Money show November 9 & 10 of that year. Since that time, they have pro- duced over 40 auctions, including the fabulous Milton Friedberg col- lection and the only two com- plete collec- tions of regular issue notes, the Martin Gengerke col- lection in February 1995 and the Tom O'Mara collection in May 2005. They have also auctioned many other notable collections, including the Marchioni, Leichty, Lee and Hoffman collec- tions. Their auction catalogs are very valuable references, not only for the breadth and depth of the notes, but for the way they are presented, with many historical details, pedigrees and information on the individual varieties. Other Books During academic research projects or other endeavors, many modern books have been written about some of the men depicted on Fractional Currency. These are important as well, not only for the information about the men, but also information about the times and especially the economic events and climate. In order for researchers to fully under- stand the events related to Fractional Currency, a study of the people important in the series is also necessary. Stanton: The Life and Times of Lincoln's Secretary of War was written in 1962 by Benjamin P. Thomas and finished by Harold M. Hyman upon Thomas' death, published by Alfred A. Knopf of New York. The book records the life of Edwin McMasters Stanton, one of the most controversial figures in American politics. As Secretary of War, he marshaled the Union troops during the Civil War and afterwards played a very prominent role in the impeachment process of President Andrew Johnson. Inside Lincoln's Cabinet: The Civil War Diaries of Salmon P. Chase was published in 1954 by Longmans, Green & Co. It seems that not long after Chase's death, his actual diaries were scattered and this book is an attempt by editor David Donald to present them in full form once again. The book provides much insight to the political and economical climate and events of the time. The Life and Public Services of William Pitt Fessenden was a two volume book, contained in one cover, written by his son, Francis. It was published by Houghton, Mifflin and Company of New York in November 1907. The work covers COLLECTION 1merican: Foreign pottage trip$ to tArITMENT, REVENUE, MATCH, MEDICINE. AND OTHER STAMPS LAI<CILS 01,N1- 171.A U NITED STATES FRACTIONAL • CURRENCY, Coofiyterate Atoles, Etc., Etc., Etc. to er ,tto• AT AUCTION Messrs. GEORGE A. LEAVITT & CO., 787 k 789 Broadway, Now York. .Si, fir 1 -defy, 711,711/al0' 251%, rS9O, As always, we will pay more than anyone else for what we need. 98 Main Street, #201 Tiburon,CA 94920 888-8KAGINS or Fax 415-435-1625 email: info@kagins.com www.kagns.comDonald H. Kagin PhD/Numismatics Meredith J. Hilton Currency First Issue Fr.1229 50 PCGS CU61 Perforated edges with no monogram on back, excellent eye appeal for the grade $550 Fr. 1230 50 PCGS CU63 Straight edges with ABC monogram accompa- nying full back margins, a very nice note $395 Fr. 1230 50 PCGS CU64 Premium paper qual- ity. A nicer note than the one listed above with excellent margins all around $450 Fr. 1241 100 PCGS CU63 Premium paper qual- ity. Perforated margins with no monogram on back, vivid design and color $795 Second Issue Fr. 1232 50 PCGS CU61 A nearly flawless note except for tight right mar- gin, excellent bronze overprint $225 Fr. 1245 100 PCGS CU63 Surcharge "18-63" on the back of this uncir- culated example $325 Fr. 1246 100 PCGS XF40 Surcharge "S-18-63" on back of this hard to find note $125 Fr. 1246 100 PCGS CU61 Same as the example above except in an uncirculated holder, sure to sell fast at $145 Fr. 1246 100 PCGS CU64 Premium paper quality and the best of these three notes. Fantastic eye appeal and fullness of color especially in the bronze overprint, priced well at $395 Fr. 1247 100 PCGS CU66 Surcharge "1- 18-63" on back of note that has it all Bright white paper, color, detail, eye appeal, grade and margins are all extraordinary on this very scarce note $1,400 Fr. 1284 250 PCGS CU66 Premium paper quality with surcharge "18-63" on back. This is an incredible note! Superior color espe- cially on the back, broad margins all around on this rare and colorful note $1,400 Fr. 1322 500 PCGS VF35 Surcharge "T-1-18-63" on bright red back, printed on fiber paper with nice margins, scarce in any grade $250 Third Issue Fr. 1226 30 PCGS CU66 With light background to portrait and full even margins on the face. Incredible note with superb color especially on the b c $995 Fr. 1236 50 PCGS CU64 Premium paper quality with red back and nice margins. A scarce note especially in an uncirculated holder $525 Fr. 1238 50 PCGS AU58 Premium paper quality with a dark green back. A very pleasing note $200 Fr. 1238 so PCGS CU63 Premium paper quality. An uncirculated exam- ple of the note listed above $350 Fr. 1238 50 PCGS CU64 Premium paper quality. The nicest of the trio with broad margins and dark green back $425 Fr. 1251 100 PCGS CU64 Premium paper quality. Red back with printed signatures of Colby and Spinner. Exceptional detail and vivid color especially on the back $425 Fr. 1253 100 PCGS CU63 Premium paper quality. Bright red back with auto- graphed signatures of Colby and Spinner, superb eye appeal, three broad margins and vivid bronze overlay on this scarce variety $525 Fr. 1291 250 PCGS CU63 Exceptional eye appeal on bright white paper. The red back is intense and vivid on this scarce note $395 Fr. 1292 250 PCGS CU64 Premium paper quality. Red back with posi- tion indicator "A" on the front of this scarce note. Outstanding eye appeal $525 Fr. 1295 250 PCGS CU63 Premium paper quality. Green back with posi- tion indicator "A" on the front. Bronze overlay is bright and reflective coupled with fantastic embossing on the back $325 Fr. 1297 250 PCGS CU62 Green back with Surcharge "M- 2-6-5" on fiber paper. A pleasing note on this very scarce vari- ety $595 Fr. 1328 500 PCGS CU63 Dark red back with autographed signatures of Colby and Spinner. Nice margins all around with Colby vanity signa- tu $750 Fourth Issue Fr. 1261 100 CU64 Small red seal on watermark paper with violet silk fibers and a blue front right side. Excellent margins, vivid color, and exceptional eye appeal. A real winner $350 Fr. 1267 150 PCGS XF40 Large red seal on watermarked paper with pink silk fibers. A great looking scarce note with four broad margins $300 Fr. 1267 150 PCGS CU65 Premium paper quality. Same note as above but in a Gem holder and a remarkably darker red seal. For those who want this scarce Gem type note $700 Fr. 1271 150 PCGS VF35 Small red seal with violet fibers and blue front right side on this pleasing yet popular note $175 Fr. 1271 150 PCGS CU61 Similar to the above note, except uncirculat- ed with broad margins all around $325 Fr. 1307 250 PCGS CU64 Very choice note. Small red seal on water- marked paper with blue front right side. Exceptional detail and color on front with a dark green back on bright paper $475 Fr. 1379 500 PCGS CU64 Green seal on paper with light violet fibers and blue front right side. Broad margins on all sides with great detail and an unusual- ly high amount of fibers visible on the back $395 Fr. 1265 100 PCGS AU55 Red seal with long thin key, good margins and bright red seal $110 Fr. 1265 100 PCGS CU64 Similar but a very choice Uncirculated speci- men $175 Fr. 1266 100 PCGS CU63 Dark red seal with short, thick key and vivid color and contrast $145 Fifth Issue Fr. 1308 250 PCGS CU63 Red seal with long, thin key with good detail and bright colors $130 '''r( _miumeena,_„ See our ad on the back page PAPER MONEY • January/February 2006 • Whole No. 241 37 i z ANumismabc Tradifion since 1933) J( Ci If 1—)N 4e$ eAs Fractiona s 1 Currency THE LIFE AND PUBLIC SERVICES SALMON PORTLAND CHASE, TIELYSUE, .e.Nn CIU8,1,71•101t OH TES UNITED .TATE.S. S. W. SOHUCKERS. TO WHICH1S. ADDED VIE mrrouy ON ME. CDARE, DELITIMEO EY WILLIAM OUT REPORE TILE ALUMN, OF DARTISOUTR COLLEGE, JUNE 21, 1,74. NEW YORK: D. APPLETON AND COMPANY, 614 A661 BROADWAY. 1874. T4TSTOEY UNITED STATES SECRET SERVICE. GENERAL L. C. BAKER, CIIIL■ NATIONAL .110Iff MU., 38 Fessenden's life from his birth to his service as Senator from Maine and Secretary of the Treasury to his last years. The Life and Public Services of Samuel Portland Chase was written by J.W. Schuckers, and published by D. Appleton and Company of New York in 1874. As with most of these books, it covers his life from start to end and concentrates on his gov- ernment service as Supreme Court Chief Justice and Secretary of the Treasury. The original is apparently rare, with only the author's copy known to him. Fortunately, for researchers the book was republished in the 1970s making it readily available. Other types of references that collectors and researchers can use include Memorial books and the Laban Heath Counterfeit Detectors. Memorial books were printed by the gov- ernment to eulogize prominent officials' deaths. Those involved in Fractional Currency history that have memorial books are President Lincoln, William P. Fessenden, General Grant, General Sherman, F. E . Spinner and President Garfield. Heath counterfeit detectors come in many sizes and some have plates of coun- terfeit and real Fractional Currency. Baker Book During the early years of Fractional Currency produc- tion, Spencer Morton Clark, became the first superintendent of the National Currency Bureau (later, the BEP). He was a very important man to fractional since he brought the printing into the hands of the government, devised many anti-counter- feiting ideas, and advanced the nation's security printing to new levels. Along the way, he made many powerful enemies. Banknote companies were angry that he was trying to take away their business. From that day forth, they tried many things to sully Clark's reputation and get him removed from his position. One of their main actions focused on the workforce at the bureau. Due to the Civil War and the resultant shortage of male workers, Clark employed a large force of women. The rumors became extreme that Clark had made the bureau into a very large brothel. It was said that women were hired based on their looks and in return for sexual favors. Secretary of the Treasury, Chase, asked the Department of War to have an investigator look into these allegations. Lafayette C. Baker, who is credited with founding the Secret Service, was appointed. Baker went about the investi- gation gung-ho and made allegations that led to the suspen- sion of Clark and the arrest of Stuart Gwynn, who was respon- sible for developing many of the paper types and anti-counter- feiting ideas. When Baker was asked for his proof, he manu- factured tawdry tales, lies and relied on paid witnesses and prostitutes. A special Congressional committee was assembled to hear the charges, chaired by future President James Garfield. Eventually Clark and Gwynn were exonerated. January/February 2006 • Whole No. 241 • PAPER MONEY This entire episode in Fractional Currency makes fascinating reading. It reads like a modern day soap opera. Baker presented an Official Report to the committee in June 1864. In it he states that "his [Gwynn's] criminal- ity consists in his willfully and wickedly defrauding the government of the United States in this: That while rep- resenting to the Secretary of the Treasury his ability to improve the Fractional Currency of the country, he has been pursuing a course of experiments involving the outlay of enormous sums of money, bringing disgrace upon the Treasury Department by his abortive attempts at postal currency in the prosecution of an untried scheme or idea which he never before had the means to develop." Regarding Clark, he wrote "these affidavits disclose a mass of immorality and profligacy, the most atrocious as these women were employees of Clark, hired and paid by him, with the public money. These women seem to have been selected in the Printing Bureau for their youth and personal attrac- tions. Neither the laws of God nor of man have been respect- ed by Clark in his conduct with these women." The Garfield committee found the evidence lacking, the allegations untrue, and formally acquitted both Gwynn and Clark. After the decision, Baker wrote in his book "when it was discovered that I would not bend to party dictation and shield the guilty, my official acts and labors were not only ignored, but an attempt was made to brand me a conspirator. I was the target of unjust and cruel censure." Baker wrote his own account of his founding of the U.S. Secret Service, the History of the United States Secret Service. His original book was published in 1867, with 46 chapters and 704 pages. Baker devoted four chapters to the great Treasury conspiracy and investigation. This book is fairly rare and prized by collectors. Interestingly, a second printing of the book was done in 1894. This edition is only 398 pages in length with only 28 chapters. Notably missing are the chapters on the treasury scandal. The author has found a total of five different print- ings of this book, including one soft cover. Jacob Mogelever's book Death to Traitors, reports the truth of what happened in this scandal and how Baker con- cocted his stories and manufactured his witnesses. These books and the Garfield committee report and the Baker report make fascinating reading. While the above is nowhere near a complete compendi- um of all the references available to collectors who desire more information on Fractional Currency, it does show that in order to get to the true heart of the subject, one must use resources other than straight reference books and improvise to find the knowledge. illturscritnatrb ti- - NorthernSenk ' f , aset=aZalittailtAIRSO N29,,o8J e[gLOMMtkibilt *OM) Wighaggrglypago Z1)135T 10 PAPER MONEY • January/February 2006 • Whole No. 241 39 You're Invited to the... 12th ANNUAL CHICAGO PAPER MONEY EXPO — Paper Money Auction by Lyn Knight Thursday, Friday, Saturday, Sunday March 9-12, 2006 Crowne Plaza — O'Hare - 5440 North River Road, Rosemont, Illinois The Chicago Paper Money Expo, featuring a Lyn Knight auction is sponsored by F+W Publications, the World's Largest Publisher of Hobby Related Publications, including Bank Note Reporter & the Standard Catalog of United States Paper Money. For more info about this show and others, visit our Web site at www.collect.com/shows * 100 Dealer Bourse Area * Auction by Lyn F. Knight * Society Meetings * Educational Programs * Complimentary Airport Shuttle Hotel Reservations Please call the Crowne Plaza O'Hare directly at (847) 671-6350 and ask for the special Chicago Paper Money Expo rate of $109 S/D. Mention rate code "PAP". Show Hours Thursday, March 9 2 pm - 6 pm (Professional Preview - $50) Friday, March 10 10 am - 6 pm Saturday, March 11 10 am - 6 pm Sunday, March 12 10 am - 1 pm (Two day pass valid Friday and Saturday: $5.00, Free Admission Sunday, Children 16 and under - Free) Bourse Information: Kevin Foley P.O. Box 573 Milwaukee, WI 53201 (414) 421-3484 • FAX (414) 423-0343 E-mail: kfoley2@wi.rr.com January/February 2006 • Whole No. 241 • PAPER MONEY40 FC shields fought counterfeits FRACTIONAL CURRENCY SHIELDS DISPLAY 39 specimens of the first three issues of notes and the Grant- Sherman essay. They were prepared by the Treasury Department from June 1866 to May 1869 as a counter- feit deterrent to enable money han- dlers to compare suspect notes directly with legiti- mate ones. They are called "shields" because of the cardboard back- ing with a printed shield shape topped by an Eagle. Originally shieds were printed with green or pink back- grounds. Later issues were printed with gray shields. The later are the most prevalent. Among the first appearances of a Fractional Currency Shield in numismatics was an offering by Philadelphia dealer Ebenezer Locke Mason, Jr., in Mason's Coin and Stamp Collectors' Magazine, January 1868, where they were offered for $6 each with the com- ment that they had just been released. Mason was early in the numismatic game, and in 1860 (in Bol'd's Directory) was listed at 453 North 2nd Street, "Coins bought, sold, and exchanged." In the 1870s, Mason was among several dealers who actively bought, sold, and traded Fractional Currency notes and, occasionally, the shields. Confederate States of America notes were also a stock in trade. However, federal notes such as Legal Tender issues commanded virtually no numismatic attention or interest. In the 1870s, J.W. Scott & Co. was among the more active dealers in Fractional Currency, perhaps because the firm was best known for trading in stamps, and Fractional Currency notes were often collected by philatelists. The Noel Gray Collection, catalogued by David U. Proskey and auc- tioned by J.W. Scott on October 27-28, 1879, included a Fractional Currency Shield, among the earlier examples to cross the auction block. In the same year, Proskey was especially busy helping Scott sell the 500 restrikes he (Scott) had made of the 1861 Confederate States of America half dollar; later, Proskey would report that the marketing program as it appeared in print was strewn with numerous red herrings. On December 18, 1881, the Hawaiian Collection-same cataloguer, same auction firm-included a Fractional Currency Shield. It could have been that Scott had a small stock of these and fea- tured them from time to time in auc- tions. As might be expected, in modern times just about any numismatist interested in 19th-century numismatics has included the Fractional Currency Shield on his or her "must have" list. Albert A. Grinnell's example with a pink back- ground was sold in Part VI of his col- lection, by Barney Bluestone in June 1946. Among numismatic items, the Fractional Currency Shield is no doubt the most "displayable" in its original form. Indeed, these are one of only a few such items originally intended for this purpose. A CHOICE UNCIRCULATED 1862 $2 LEGAL TENDER NOTE REALIZED $4,370 A CHOICE UNCIRCULATED 1913 $50 GOLD CERTIFICATE REALIZED $6,325 63759770:- •-e A CHOICE UNCIRCULATED 1899 $5 SILVER CERTIFICATE REALIZED $6,440 pence. Six- FP' Prifeed by B. FRANKLIN, erid 1). HALL. 64 Fr! _cad j", ,;1 SiK P, -; • f47 Firs t National Bank , sr. -Tam ;,•3 ,„ ofauscatoottii: AN UNCIRCULATED LAZY DEUCE ON KANSAS, ILLINOIS REALIZED $7,475 A CHOICE UNCIRCULATED PENNSYLVANIA SIXPENCE NOTE REALIZED $2,070 PLAN TO PARTICIPATE • FIND OUT ABOUT CONSIGNING YOUR PAPER MONEY to one of our upcoming sales. Call Rick Bagg or John Pack, toll-free 866-811-1804. • BE A BIDDER IN OUR AUCTIONS. Send us an invoice for $500 or more and receive a free copy of our next catalogue. If you send us an invoice for $5,000 or more, we will send you all of our auction catalogues, free of charge, for one year. PAPER MONEY • January/February 2006 • Whole No. 241 41 AMERICAN NUMISMATIC RARITIES' BRINGS OVER $4.2 MILLION IN NEW YORK •••'• •‘,..f.-_^., • H6834 MIWILNitniiii1VOIMAK5 "s•-•• ,' :.112130:031:010, ,s0 H -8 I-1683A • -- muzathissuie3. A VERY CHOICE EF 1918 FEDERAL RESERVE BANK NOTE REALIZED $10,350 _., _.;...14,41.4 iliMI ... . , l A. .14 rtk '•••f i t:%3212,5„9460,4 ,# -1 ,.•:• -b. 7!--,".7. '4110N ■ . „..r.- : • ., Sri .... • '. 1, ' r•-• / 1 9 , NS , ..1.:Lk. .0.,!1_ . CHOICE UNCIRCULATED 1896 EDUCATIONAL $5 REALIZED $9,200 All highlights shown t/1 5% borer's fee. NUMISMATIC PO BOX 1804 • WOLFEBORO, NH 03894 • TOLL-FREE: 866-811-1804 • FAX: 603-569-3875 WWW.ANRCOINS.COM • AUCTION@ANRCOINS.COM etristmst! r to 1414,--ITZCa'es • ... POSTAGE'Cl111 EIN" It, "iv twi■■EOs.04-Y-T • POS'C 171TICII.g arshOluss- =t4,41iPtvxlle.mn/Whve ybv Oaf 4F6; '4.14.4 I _ 42 January/February 2006 • Whole No. 241 • PAPER MONEY F011-:" MAYTIGN MT L/8.1 f°iee1. tlypimcirs A Discussion By William Brandimore Background: TH THE ONSET OF THE CIVIL WAR IN 1861, THE uncertainty of a wartime economy led to widespread hoarding of gold and silver. Since our U.S. money was specie -- gold and silver -- with some copper nickel cents thrown in for good mea- sure, this led to almost immediate mercantile and trade difficulty. Early efforts to cope with the problem involved numerous private issues of tokens and even the use of stamps for small change. The actual stamps themselves, although issued in convenient denominations, soon became unfit for use due to soiling, sticking together, etc. Postal authorities didn't think much of the idea either. This shortage would quickly lead to the use of paper currency in both the North and the South beginning with the beautiful "Montgomery" issue of Confederate notes (the plates were engraved in New York City) and the Union Demand Notes of 1861. This did nothing for day-to-day small change needs, however, so General Francis E. Spinner, Treasurer of the United States, had prepared, "Fractional" or "Postage Currency" as it was first designated. The First Issue Notes Notes were first printed in 1862 in 5-, 10-, 25- and 50-cent denomina- tions. The 5-cent note carried a likeness of Thomas Jefferson, as engraved on the 5-cent postage stamp of the 1861 General Issue. This was printed on brown paper. The 10-cent note illustrated George Washington, as depicted on the 10- cent stamp of the 1861 General Issue. It was printed in Green with Black ink on white paper. The 25-cent note carried five "stamps" of Jefferson and the 50-cent denomination featured five "stamps" of Washington (see the article by Fred Reed). As mentioned, and perhaps because the issue utilized postage stamps, it was designated "Postage Currency." Succeeding issues would not carry that title. Initially, the faces and backs of the notes were printed by the National Bank Note Company. To heighten security, however, the American Bank Note company was contracted to print the backs. With two companies it was felt there was less chance for misuse of their access to the currency. The later notes carry a monogram, "ABCO" on the lower right hand corner of the back of the note. Early printings by the National Bank Note Company only do not carry these initials. The notes were printed in perforated and un-perforated sheets. Un-perforated examples are more common than perforated, as are notes with monograms. Given these various combinations one might assume that there are 16 notes to collect in the series: 5-, 10-, 25- and 50-cent notes in perforated and PAPER MONEY • January/February 2006 • Whole No. 241 43 un-perforated and with and without monograms. This is close. There are 17 distinct notes (not counting paper shades). There is a 50-cent perforated note (Friedberg # 1310a) with 14 perforations per 20 millimeters instead of 12. This note first came to light about 1890, when dealer Harlan P. Smith offered it for sale. There is a great deal of circumstantial evidence that Mr. Smith manufac- tured this note himself from several non-perforated sheets he was known to have had in his possession. The notes have been around so long, however, and with such well documented pedigrees that they still have enormous appeal to some collectors. They have brought, recently, from $2,000 to $6,000. The straight (un-perforated) edge 5- and 10-cent notes in particular, can be pur- chased in Choice Uncirculated condition for under $100, a bargain in today's market for a note that is 140 years old and a relic from our Civil War era, to boot! Expect to pay considerably more for nice perforated examples and the 25- and 50-cent no monogram varieties. The Second Issue notes Counterfeiting of these paper notes, something that hadn't really been planned for led to the issuance of five different issues of this diminutive paper money, as the Treasury struggled to provide "small change" for the nation. The Second Issue features additional color and some quite detailed engraving of period transportation. All four denominations, 5-, 10-, 25- and 50-cent values display George Washington centered above a beehive-like harbor scene featur- ing the unloading of several steamships, while teamsters are in the process of loading or off-loading horse and wagon rigs with a steam locomotive in the background. Collectors strive to find these notes well centered and "bright" -- not an easy task. They are quite attractive when found "as new." They are quite unappealing when found well used. All these notes are gray on the face. The S- cent note is a light brown on the back, the 10-cent green, the 25-cent violet/purple shades, while the 50-center features a carmine or red back. An eagle shield and banner device is surrounded by a larger shield and over-printed with a large denominational numeral outlined in bronze. Brightness adds desir- ability, an attractive gray on premium notes, a drab gray on those less favored. These notes were printed between October 10, 1863, and February 23, 1867. An anti-counterfeiting device was included in this printing and helped create some of the many fascinating varieties that make fractional collecting so challenging! Washington is circled on the face of the note in a thick oval of bronze powder. In original condition this bronzing is quite bright, even, blaz- ing! The oval was applied by sprinkling bronze powder on the printed sheets after sizing (glue) was "printed on the sheets." the excess was shaken or blown off and the remaining powder framed Washington in quite a dramatic fashion. In addition, the backs were overprinted in a similar manner, with a large numer- al matching the denomination of the note. When the sheets were fed into the press incorrectly, inverted overprints occurred. They are quite obvious and noticeable. All the inverted overprints are quite scarce. On even rarer occasions, the wrong denomination or a mismatched back plate was utilized. These are very rare! In addition to the denomination, other "surcharges" also appear on the backs of the notes; such as "18-63" and a variety of alphabet letters. These letters identified the notes (apparently) for Treasury officials as the government was printing this issue entirely in-house and wanted to keep track of how the various papers and inks weathered circulation. There are no fewer than 20 dif- ferent surcharge varieties for the four denominations, combined, in addition to the notes that had no surcharges beyond Washington's portrait and the large denomination numeral. Another aspect of the testing that was going on involved attempts to print the notes "dry" rather than "wet." Printers knew that they could get a better impression with less pressure if the paper was wet. This, however, involved the process of drying the notes between the various printing steps. This took a long 44 January/February 2006 • Whole No. 241 • PAPER MONEY ONI.1 ASSISTANT time and a War was on. Working with a chemist, Dr. Gwynn, efforts were made to utilize the "fiber" or membrane paper that he had developed. It was possible to print this paper "dry." With the dry process, however, the backs and faces needed to be printed as separate sheets and glued together on completion. It didn't work particularly well. The presses needed to bring too much pressure to bear and broke down frequently. The experiment did, however, provide some fascinating "fiber paper varieties" for collectors to pursue down to the present day. Jealousy and politics were even more in evidence then than they are today. Dr. Gwynn was actually placed in prison at one time and a heavy cloud of concern was unfairly placed on Spencer Clark, the first Superintendent of the National Currency Bureau (forerunner to the BEP), as well. It all turned out all right in the end, but that is another story (see Benny Bolin's literature article). The Third Issue Notes The Third Issue of Fractional Currency was printed and issued between December 5, 1864, and August 16, 1869. If there were only one issue to collect, the third would be more than enough to excite our interest. This issue provides numerous rarities as well as many minor distinctions that allow the specialist to identify interesting and collectable varieties. There are six denominations, two basic types of paper, two major color variations, forbidden portraits, small and difficult to locate plate position letters, hand-signed notes, notes with engraved signatures on the plates and some with no signatures at all. Early stamp collec- tors were quite smitten with fractionals, and I suspect the Third Issue with its position letters and other variations was the major drawing card. We have the stamp collectors to thank for the fact that so many of these little notes were saved in high grades of preservation. The lowest denomination of the series was a 3-cent note produced in two varieties: one with a light background to Washington's portrait and the other with a dark background. Additional cross- - ttW hatching on the plate apparently produced the later and darker variety. The three-cent value was used only in the third series. It is quite popular with flea market enthusiasts as well as collectors. Frequently seen are multiples as the notes were often shipped to banks in sheets. Sheets are not rare, but not inex- pensive either. This note is known inverted and is quite rare in that configura- tion. There is also a "no pearls" sub-variety that omits the engraving trim of pearls hanging from a small diamond at the bottom of the frilly trim below Washington's image. The 5-cent note features the Superintendent of the National Currency Bureau (which would eventually become the Bureau of Engraving and Printing) Spencer Clark. Clark was a very conscientious public servant. He saved the tax payers considerable expense by convincing his superiors that the government could print the money in-house rather than allowing bank note companies to continue to do so. He outraged a lot of people, however, when he put his likeness on the third issue 5-cent note. So much so, that Congressional enactment was undertaken to forbid living people from being placed on our nation's currency thereafter engraved. This note comes with red and green backs. Red was apparently an earlier effort, possibly even trial in nature, as many seem to have been given as presentation pieces and subsequently saved. Thus we have quite a supply of 5-cent through 50-cent red backs. Clark notes had no hand signed varieties, as did the 10-, 15- and 50-cent values. They also come (some of them) with a position letter "a" about midway up the face of the left hand edge of the note. This identifies the notes as having been one of the left margin notes when the sheet was printed. The "a" notes frequently feature ink smears, as they were closest to the edge of the plate where that sort of thing could happen. The 5-centers also carried engraved signatures in only one com- bination, Colby/Spinner for the individuals serving as the Register of the Treasury and the Treasurer of the United States at the time. There are four 5- \U LE. SIG:MED II DEPOSITARIES 11:WWWE EARLY AMERICAN HISTORY AUCTIONS Sign Up to Receive Our Fully Illustrated Catalogs Free Online or Only $72 for a Full Year Subscription of Six Bimonthly Printed Catalogs AUTOGRAPHS • COINS • CURRENCY • AMERICANA • MAPS I LI Every Auction Lot is Now Available for Online Viewing... www.EarlyAmerican.com Consign Your Important Material • Phone Dana Linett Today! EARLY AMERICAN • P.O. Box 3507 • RANCHO SANTA FE, CA 92067 (858) 759-3290 OR FAX (858) 759-1439 • Auctions@EarlyAmerican.com WILLIAM YOUNGE N, INC Your Hometown Currency Headasters ay, 7 95 South Federal Highw „ite 203)3oca Raton. FL 33432 P.O. Box 177, Boca Raton. FL 3'1429-0177 (mailing) (561) 368-7707 (in Forida) • (800) 327-5010 (outside Florida) (800) 826-9713 (Florida) • (561) 394-6084 (Fax) Members of FUN. CSNA, ANA and PNG WANTED I Collect Florida N,#'1,ionals Obsoletes, .t, Tokens In Stock for • late tielivery Gold, Silver, and Platinum Products Call for Quotes 809 27-3010 The South's oldest and largest coih Atop sine 1967 Top prices paid for all National Bank Notes, ollections, ld Estates Large Inventory of National Bank otes for sal See Our Website at WilliamyoungermanAom or el us at wym ley@aol.com PAPER MONEY • January/February 2006 • Whole No. 241 45 January/February 2006 • Whole No. 241 • PAPER MONEY cent varieties; green back and red back, with and without plate position letter "a". They are known inverted and quite scarce. Multiples are also quite rare. Ten-cent notes also come with red and green backs, plus a position letter "1" in about the same location on the sheet as the Clark "a" letters. They denote the same thing, a left hand margin note. They also come with beautiful bronze surcharges front and back. These surcharges are especially bold on 10- cent notes. On the face of the note are, depending on the state of preservation and the level of oxidation, brilliant bronze or gold colored "10"s. On the back of the note is the outline of a large bronze "10." These bronze surcharges were printed on the note by applying sizing (glue in the shape of the desired outline), then dispensing powdered bronze, and shaking off the non-adhering residue. This treatment provides a breathtaking appearance on Gem notes. These notes also carry both engraved and autograph signa- tures. The engraved signatures are those of Colby/Spinner and the hand- signed notes come in two varieties, Colby/Spinner and the later combina- tion of Jeffries/Spinner. The Jeffries/Spinner combination is quite a bit scarcer, but the price differential is not extreme. There are seven varieties of 10-cent notes: green and red back, with a "1" position letter for engraved signature types and without. None of the hand signed notes have sheet position letters in any of the denominations, thus two varieties of hand-signed and TWO known examples of hand-signed Colby/Spinner notes on Green paper. ALL other Fractional Currency notes with autographs other than latter-day courtesy autographs have red backs. Generals U. S. Grant and W. T. Sherman grace a 15-cent denomination for the Third Issue that was never issued because of the prohibition following Spencer Clark's placement of his own likeness on the 5-cent note. These 15- centers were prepared in Specimen (uniface, narrow margins) and Proof (uniface wide margins). There are four varieties of this note: engraved signatures of Colby/Spinner and autographed signatures of Colby/Spinner, Jeffries/Spinner and Allison/Spinner. The engraved sig- nature is matched with a green back and the hand-signed varieties are matched with red backs. Colby/Spinner autographs are quite scarce in narrow margin; most were removed from Pink Fractional Currency Shields (counterfeit detectors of the times, see Dave Bower's column). These notes are extremely popular with collectors and no type set is really complete without a pair. Twenty-five-cent notes feature a portrait of William P. Fessenden, Senator from Maine and Lincoln's last Secretary of the Treasury. He was alive but the notes bearing Fessenden, Spinner and early likenesses of Lincoln on ten dollar bills, Chase and others were already circulating when the Clark S- cent note appeared so they did not fun afoul of the law prohibiting living per- son's likenesses on notes. There are no hand-signed Fessendens, but they still manage to number 9 varieties. These include red and green backs, with and without ''a" surcharges on the left margin position, at about 2:00 o'clock to the right of the small "25" in the lower left corner; a scarce green back variety with the "a" 6 mm to the right of where it should be; two green backs with and without the "a" on heavy fiber paper and two solid surcharge notes with and without the "a" also on heavy fiber paper. These notes have solid bronzing around the "25" on either side of the portrait, a bit smaller but solid rather than an outline. Census for the rare solid surcharge with "a" stands currently at 12 notes known. The fifty-cent notes, however, are the ones that really make this series. They are difficult to locate fully margined and they have four varieties to each subset of notes. First, Justice notes are listed after the Spinner notes in the Friedberg catalog, but were printed first -- about 9,000,000, before they were counterfeited and Spinner's likeness was pressed into service. There are 32 46 , :. 0101;,Im -1`..-.4" -r..-",r11 Is "TliN 1 .t,. 6 i • ,f). \uir.r-"z7, 10'2: T1 ' 'tag _ &ff./Imo/4- WAtt ift PAPER MONEY • January/February 2006 • Whole No. 241 47 New Hampshire Bank Notes Wanted Also Ephemera I am continuing a long-time study on currency issued by banks in New Hampshire, including state-chartered banks 1792-1865, and National Banks circa 1863-1935. Also I am studying colonial and provincial notes. I would like to purchase just about anything in colonial and provin- cial notes, nearly everything in state-chartered notes, and items that are scarce or rare among National Bank notes. I am not seeking bar- gains, but I am willing to pay the going price. I will give an immedi- ate decision on all items sent, and instant payment for all items pur- chased. Beyond that, I am very interested in ephemera including original stock certificates for such banks, correspondence mentioning cur- rency, bank ledgers, and more. With co-author David M. Sundman and in cooperation with a special scrip note project by Kevin Lafond, I am anticipating the production of a book-length study of the subject, containing basic information about currency, many illustrations including people, buildings, and other items beyond the notes themselves, and much other informa- tion which I hope will appeal to anyone interested in historical details. All of this, of course, is very fascinating to me! Dave Bowers Box 539 Wolfeboro Falls, NH 03896 e-mail: qdbarchive@metrocast.net aintzl.3.1 IVO conaue,crucs„.• 4,-- 01. ^ .11(EN Elt0.1% V , , .1,1 • January/February 2006 • Whole No. 241 • PAPER MONEY48 varieties, as follows: three autograph numbers (by numbers I refer to the Friedberg catalog which is really a must for paper money collectors since it helps identify varieties and has a great deal of valuable information). The three autographs are all of the Colby/Spinner signature combination. All have red backs. One is on regular paper without back surcharges; one is on regular paper with back surcharges "A-2-6-5" in the four corners. The third is on fiber paper - with back surcharges of "S-2-6-4". The only obvious explanation for the "64" and "65" differences seems to be the year of printing. Next are three groups of red reverses with engraved signatures. They all exhibit plate positioning (see the article by Mike Marchioni) information thus: printed in sheets of 12; the upper left hand corner notes have a "1" and an "a". The "1" is mid-note on the left, the "a" is below a bronzed "50" design figure on the left side of the note. The next two notes going across the top of the sheet have "a" only plate positions...in the same location as the preceding note. The three notes going down the left side of the sheet, below the corner note have only "1"s. The remaining six notes have no plate position letters at all. This plate position lettering system is used throughout the rest of the Justice notes and on the Spinner notes. Thus we have red back, no back sur- charges, 4 varieties; red back, a-2-6-5 back surcharges, 4 varieties; red back S- 2-6-4, fiber paper, very rare (these are the 1913 nickels of Fractional Currency), 4 varieties. Green back, no back surcharges, 4 varieties; green back a-2-6-5, compactly spaced, 4 varieties; green back, a-2-6-5, widely spaced, 4 varieties. Green back, a-2-6-5, fiber paper, 4 varieties; green back, S-2-64, 1 variety with no plate position letters, very rare. Inverts are known for red, green back and fiber paper notes. The Spinner notes account for 19 varieties: Red back, a-2-6-5, 4 notes; three autograph notes, Colby/Spinner no design figures, Colby/Spinner, Allison /Spinner and the rare Allison/New. Green back, no surcharges, 4 varieties; Green back, a-2-6-5, 4 varieties; Green back, type 2 design, 4 varieties. Inverts are known for type 1 and type 2 notes. The most difficult factor in collecting Justice design notes are the tiny margins. On sheets the notes were spaced 1/4 inch apart on the top and bottom and 1/8 inch on the sides. Thus a perfectly centered note has top and bottom margins of 1/8th of an inch-top and bottom and 1/16th of an inch on either side. Good margins seem to be much more prevalent with Spinner notes. The Fourth Issue Notes Fourth Issue notes were printed from July 14, 1869, through February 16, 1875. They were the first fractional notes to carry the Treasury Seal. All bear the engraved signatures of Register of the Treasury John Allison and Treasurer John C. New, who succeeded Francis Spinner as Treasurer. He served from June 30, 1875, through July 1, 1876. As a footnote to the third issue, the Rare F#1330, a 50-cent autograph Spinner note was signed by Allison and New, apparently some having been left blank and discovered after New took office, then subsequently signed by New and Allison. I have in my collection a 1330 that somehow got into circulation and acquired considerable wear and tear, grading no better than good, unlike all other survivors I have seen which generally grade Gem New or close to it. The Fourth Issue is com- prised of only four denominations. With the issue of 3-cent and 5 cent nickel coins, fractional paper was only issued in denominations of 10-, 15-, 25- and 50-cents. The ten-cent denomination features Liberty with four variations combin- ing blue end paper/regular paper, with or without watermarks, and large and small seals. For a type set I recommend the F-1259 or F-1261 since they are quite stunning with the contrasting red seal and blue end paper. Be sure to R727.="-0.17rtrii4iltr5111XWITRil D 90794 ! , :7 O JU:41,4. • „sgolal.ftv,„ 7900 :11.111111.11FT •P CAMP seTes rarta.4:4)Calsitt PAPER MONEY • January/February 2006 • Whole No. 241 49 Lyn Knight Currency Auctions Deal With The Leading Auction Company in U.S. Currency If you are buying notes... You'll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful "grand format" catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: • Great Commission Rates • Cash Advances • Expert Cataloging • Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via LISPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. Currency Auctions P.O. Box 7364, Overland Park. KS 66207 • 800-243-5211 • 913-338-3779 • Fax 913-338-4754 Email: lyn@lynknight.com • support@lynknight.com www.lynknight.com re. rh.;/, eVA •• Anr t-On 50 January/February 2006 • Whole No. 241 • PAPER MONEY find a well-centered note and you won't be disappointed. Fifteen-cent notes, like the three-centers are quite popular with the flea market crowd and type collectors. They feature an engraving of Columbia, an Indian Princess that allegorically represented the Americas. She has a fancy headgear that appears to be an Eagle resting on her head, lots of feathers at any rate. Before France gave us the Statute of Liberty for a 100th birthday present, Columbia was seen as a popular symbol, like Liberty, of American freedom. She was frequently featured on Civil War era memorial statues and was utilized atop the Sailors and Soldiers Monument in downtown Detroit on a traffic island a bit south of Campus Martius! These too, come in regular and blue end paper, with and without watermarks, and with large and small seals. It is an attractive note in all varieties, with centering being the most difficult collecting objective. These notes seem to come with tight top or bottom margins much more frequently than the other denominations in the series. The 25-cent note features George Washington and has the same four varieties, large seal/small seal, blue end paper/regular paper, and with and with- out watermarks. Fifty-centers come in three types: a great engraving of Lincoln, ,Batalataaj Secretary of War Stanton, and Samuel Dexter who was a Secretary of War and Treasury Departments from 1800-1801. Because of the green seal on the Dexter note you will see occasional references to it in old catalogs as a 5th issue note. Among these notes Lincoln is the heavy- weight, frequently bringing $800 or more for gem examples, while the Stantons and Dexters are much more affordable. The great thing about fractionals is that even some of the fairly rare numbers can be obtained economically in lower grades. Notes of the Fourth Issue were heavily used end large numbers survive. Along with the First and Fifth issues they seem to be the easiest and most affordable to collect. The Fifth Issue Notes Fifth Issue notes feature two real sourpusses. Sourpuss number 1 is William Meredith, a Secretary of the Treasury from 1849-1850. He is on the ten-cent note which comes with a green seal variety that is much scarcer than the two red seal varieties: long and short keys in the Treasury Seal. The green seal variety is very tough to find with Gem centering. The red seals can be found fairly easily with Gem centering (not at the $8 I paid a number of years ago), but in the $50 to $75 range. Robert J. Walker, Secretary of the Treasury between 1845 and 1849 is the second sourpuss, but a distant second sourpuss at that. Meredith was so sour that his portrait was the object of much contemporary and modern cartooning (check the 1997 FUN/Friedberg catalog for examples of the PAPER MONEY • January/February 2006 • Whole No. 241 Rogue's Gallery that was created from them). Walker apears on two vari- eties, long and short key. The final fractional note of this, the final series (yes, but see page 59) is the Crawford fifty-center, listed as two varieties. One of these days the cataloger will probably drop the pink variety since it is really just an ink quality control matter. At any rate, Mr. Crawford, a Bob Hope look- alike, was an unsuccessful candidate for President of the United States and served as Secretary of War and the Treasurer from 1815-1825. This is one of my favorite notes. You can make a real connection with non-col- lectors by pointing out the Bob Hope factor, and perhaps he is a distant relative since he certainly looks like the actor/comedian. This note was saved in large numbers and is also an economical note to seek out for a type collection. I am told the last series became less popular with the public as coins became more readily available after the Civil War, and supposedly many were shipped West to pay military personnel. This concludes my discussion of the five issues of Fractional Currency. Other examples of this specialty include Proofs, Specimens, Inverts, Uncut Sheets, Shields, in short, more fascinating facets of these notes that make them so appealing to collectors, me included. 51 COUNT-ER F EITINU. GREAT HAUL OF RASCALS. Seizure of $70,000 of liburions Frac- tional Currency. Capture of Dies, Plates, Presses, &C. EIGHT PERSONS IN CUSTODY. Illstory of Their Operations. Poe several months Ingeniously •Ibented fifty Nat counterfeit motes, fraello•al eurreaey, Uwe bees In simulation along lite Use of the gibs Railroad and Is this City. Bo enaelly did the bogus Issue resemble tea gentile*. It bad almost grown I.• be a eustom sot to refuse them im places where Ume Is the matter of mating change Is a great cossideratIon 1 and it was *sly et backta•hosma and brokers' •farm that 611 WHO detected and thrown out. Thls proving a great sanoranee to our merchants and bantam Ines generally. the authorities at Washington were an- paled to, and skilliul:ortactivesiwer• employed Is Gleanings from My Fractional Currency Archive - 6,7 By Fred Reed COUNTERFEIT POSTAGE CURRENCY.--There are counterfeit 50c notes of the new postage currency in circulation in our city, and as they are quite well executed, we desire to put the public on their guard against them. There are four distinct and easily noted marks by which they may be detected: First, the paper is thinner than the genuine; second, the five faces of Washington vary considerably from each other in the counter- feit, so much so that two or three of them, if standing alone, would hardly be taken to be portraits of Washington, while on the genuine they all closely resemble each other; third, the linked letters "U.S.," under the middle face of Washington, in the counterfeit, do not show the lower end of the "S.," inside of the leg of the "U.," while in the genuine they do -- this mark is easily seen; fourth, the border around the lettering and "50" on the back of the counterfeit is dark, and the lines are crowded, while in the genuine the border is open, with a line of light dots run- ning through the middle all the way round. In the counterfeit this middle line is almost invisible, while in the genuine it is so distinct as to catch the eye at once. These marks will enable any one to detect the counterfeit. -- Cincinnati Daily Enquirer, December 4, 1862 r I George W. Wait Memorial Research Prize Deadline Nears I March 15th i See November/December issue page 449 for Details 1//1".% /54%. 52 January/February 2006 • Whole No. 241 • PAPER MONEY Missouri Union Military Scrip Portraits; Follow Up by Steve Whitfield I WAS PLEASED TO SEE RON HORSTMAN'S 1.NOTICE of discovery of the identified portrait of William S. Moseley, Missouri State Auditor, whose likeness was por- trayed on the $1 denomination of Union Military Scrip. Turns out that the Kansas State Historical Society was correct in this identification, back in 1886. Now if Ron can just turn up one of the $50 denomination notes, we can try to identify whomever is on that note. I had hoped that the plate might surface in the ABNCo holdings but apparently no such luck. We'll keep looking. SPMC member Fred Marchkoff wrote a series published in The Numismatist (September, November, and December issues of 1962) titled "Gallery of Civil War Generals." The articles reported results of his research in attempting to identi- fy military (mostly General Officer) portraits on obsolete bank notes and scrip. He included several of the Missouri Union Military Bonds and Defence Warrants. He was baffled on the $5 Defence Warrant and speculated that the subject was either Gen. Franz Siegel, or Gen. Grenville Dodge. While the por- trait bears some resemblance to Gen. Siegel, there is none whatsoever to Gen. Dodge. I had concluded that the portrait was of Gen. Robert Allen and remain convinced of that identification. Fred identified the portrait on the $10 Defence Warrant as that of Gen. Isaac Fitzgerald Shepard. Gen. Shepard has the appropriate Missouri biography, and his portrait, available on the WWVV, bears a consid- erable resemblance to the portrait on the Warrant. However; I maintain that the intended sub- articles was a portrait of Missouri Governor Thomas Fletcher; elected to succeed Willard Hall after Hall died. Mr. Marchkoff also took a stab at portraits on a couple of the Missouri Union Military Bonds, including the $1 and $10 denominations. He missed the $1 completely, offering up two candidates; Thomas Fletcher and Gen. Lew Wallace. The note portrait bears some resemblance to these two men but the subject on the $1 has been positively identified as William S. Mosely by Ron Horstman's discovery of the labeled portrait from ABNCo. The mistake that Marchkoff made, along with many later writers, was in assuming that these bonds were intended to honor military men, Generals; when their real intent was to recognize politicians who had contributed to the Union cause. While some of them saw limited military ser- vice, their main contributions were political. The portrait on the $10 bond was correctly identified as Frank Blair. The emphasis should have been on "Politician" Blair, rather than "General" Blair. There are still questions about these notes that require more research dis- coveries. For example, does the enacting legislation that authorized the Defence Warrants and the Union Military Bonds still exist? And if so, does it identify the intended portraits? And who has seen one of the $50 Union Military Bonds? We'll keep looking. ject was Gen. Joe Bailey. Unfortunately Mr. Marchkoff did not include any research evidence to support his conclusions. There is no dis- agreement on the $20 and $50 Warrant denominations. Gen. Pope and Governor Hall match their por- traits just about per- fectly. A bonus in the IN:4113.0 1 ,14Alt$ /4/1/.44./ 74'1 /.....//4//1% //// / /// et/ /// ///./ ../ ///// /4/ ,./////,5 1;72/4// //4/ • -:"/.11//// . % ////".. ./4/4 4%.",47/ /12' T /// /74✓/./ /4/ ‘,1,1, 1/%1- ../////1 /// / I/ 1 '44 et/ 7.///Y1( .///(1/ ///1// // 77, T /2/ / />. r . //rYk/ 41/ 14 / Y% /// 4:1,, kb? MACERATED MONEY Wanted information on U.S. Chopped up Money. RARE, FREE MASCERATED POSTCARD FOR USEFUL INFORMATION Who made the items, where sold, and anything of interest. Also I am a buyer of these items. Top Prices paid. Bertram M. Cohen, 169 Marlborough St., Boston, MA 02116-1830 E-mail: Marblebert@aol.com PAPER MONEY • January/February 2006 • Whole No. 241 53 Buying & Selling All Choice to Gem CU Fractional Currency Paying Over Bid Please Call: 314-878-3564 ROB'S COINS & CURRENCY P.O. Box 6099 St. Louis, MO 63017 POSTAGE FRACTIONAL CURRENCY r • First new book on Fractional Currency in 25 years. • All the regular issue notes in all 8 grades with the rarity of all the notes. • Four pages in color. • Helpful hints and what to look for. • PCDA Literary Award Winning Book $29.99 & $3.00 S&H L 54 January/February 2006 • Whole No. 241 • PAPER MONEY On This Date in Paper Money History -- Jan. 2006 By Fred Reed ° Ian. 1 1782, Bank of North America opens; 1856, Alleghany Furnace and Indiana Iron Works, PA issue scrip; 1879, "Greenback Era" in U.S. ends with restoration of gold standard; 1946, United States Savings Bond Division inaugurated; Ian. 2 1637, Dutch tulip bulb mania reaches crescendo in Holland; 1889, La Banque Ville Marie notes signed by president, encased stamp issuer William Weir circulate; 1941, Aubrey Bebee opens Chicago coin store, commences as full time dealer; Ian. 3 1878, BEP introduces Milligan Steam Printing Press; 1882, Senator Clement C. Clay, who appears on Confederate $1 notes, dies; 1926, Treasury Secretary W. Michael Bluementhal born; 1983, Harry Clements tenure as BEP Director ends; Jan. 4 1777, Continental Congress recommends States make bills of credit issued by Congress lawful tender; 1842, First issue of Thompson's Bank Note Reporter; 1864, Essayist John Burroughs becomes clerk at National Currency Bureau (BEP); 1954, BEP officials discover employee theft of $160,000 in $20 FRNs; Ian. 5 1655, First colonial engraver of paper money John Coney born; 1892, Early paper money dealer W. Elliot Woodward dies; 1934, First delivery of Series 1933 $10 SC ; /an. 6 1759, George Washington marries Martha Dandridge Custis, both appear on FR 224- 225; 1878, Lincoln poet Carl Sandburg, who said "money is the sum of blessings," born; 1929, Van Buren Studios releases animated film Wooden Money; Jan. 7 1791, City of New Brunswick, NJ issues scrip for 1-, 2-, and 3-pence; 1900, Fred Smillie completes engraving of Ta-to'-ka-in'-yan-ka of the Oncpapa tribe for currency; 2005, PCGS announces grading service headed by Jason Bradford; Jan. 8 1786, Nicholas Biddle, president of Second Bank of the U.S., born; 2000, Unique 51000 U.S. Gold Certificate Series 1882 (FR 1218d) realizes $945,000 in CAA sale; Ian. 9 1740, Rhode Island governor Richard Ward reports on the flourishing economic bene- fits of paper money; 1803, CSA Treasury Secretary C.G. Memminger, who appears on Confederate $5 and 510 notes, born; 1964, Series 591 MPC withdrawn in the Pacific; Jan. 10 1855, John Jay Knox becomes cashier of Susquehanna Valley Bank, Binghamton, N.Y.; 1864, New York World reports arrest of alleged CSA note printer W.E. Hilton; 1964, Nathan Goldstein's monthly column "Paper Money Periscope" debuts in Coin World; Jan. 11 1755, Treasury Secretary Alexander Hamilton (FR 1-5, 41) born; 1862, Leslies' Illustrated depicts a Confederate S10 Treasury Note; 1942, Smithsonian curator and author Richard Doty born; 1951, Last delivery of Series 1934C $50 FRN; Jan. 12 1826, Committee considers establishing branch banks for Bank of England; 1897, National Monetary Commission appoints committee to revise U.S. monetary system; 1990, Bank of England reports 61 percent of banking institutions were overseas banks; /an. 13 1808, Treasury Secretary Salmon P. Chase (FR 16-17) born; 1861, C.S. German takes photo of bearded Lincoln engraved for $10 Demand Notes (FR 6-10) by Frederick Girsch; 1957, Peter Thorneycroft becomes British Chancellor of the Exchequer; /an. 14 1858, Treasury Secretary and "Father of the Federal Reserve" Carter Glass born; 1875, Congress provides for redemption of Fractional Currency in silver coins; 1976, Due to a postal strike NASCA postpones major auction for one week; On Target? More people will read this page more frequently than any other. Put your business name/logo here! Special Rates Apply; Contact the Editor Jan. 15 1776, RI Colonials (FR RI 218-229); 1857, U.S. paper money collector Charles Markus born; 1975, Vernon Brown announces his intent to resign as SPMC Secretary; 2004, New dinars replace Saddam-portrait notes in Iraq as only official currency; Ian. 16 1817, Treasury Secretary Alexander Dallas, instrumental in chartering Second Bank of U.S., dies; 1978, Smithsonian and Chase Manhattan Bank agree to transfer Chase col- lection; 1984, Grace Commission recommends the Fed adopt a standard seal; Jan. 17 1800, Millard Fillmore, who appears on obsoletes, born; 1914, Chicago dealer Ben G. Green dies; 1934, Gold Certificates become illegal for individuals to own; Jan. 18 1864, Union MG Benjamin Butler instructs spy about passing CSA currency; 1949, Notorious bunco financier Charles Ponzi dies; 1974, Lee Majors debuts on TV as the Six Million Dollar Man; 1985, Gary Lewis accepts job as interim SPMC Secretary; Jan. 19 1926, SPMC member George W. Taylor born; 1976, End of Simon-Neff combined tenure as Treasury Secretary and Treasurer; 2001, R.M. Smythe Annual Strasburg Stock & Bond sale features quantitites of Penn Central RR certificates; Jan. 20 1814, Massachusetts Senate orders publication of consolidated statement of the 29 banks in the state; 1968, Treasury Secretary Henry Fowler signs TO-212 approving new, less ornate Treasury Seal; 2001, Paul O'Neill takes office as Treasury Secretary; /an. 21 1780, George Washington reports that he is forwarding counterfeit currency taken off a dead British solder to the loan office to be burnt; 1861, Jefferson Davis, who appears on Confederate 50-cent and $50 bills, resigns U.S. Senate seat; 1862, Blanton Duncan advertises for lithographic printers in Richmond Enquirer; Jan. 22 1890, Treasury Secretary Fred Vinson born; 1976, Beirut bank robbery nets record, est. at $20-550 million dollars; /an. 23 1836, Encased stamp issuer Hopkinton, MA merchant Arthur M. Claflin born; 1941, Detroit Coin Club honors Albert A. Grinnell with gold medal at 400th meeting; 1977, W. Michael Blumenthal takes office as Treasury Secretary; Jan. 24 1813, Continental Treasurer George Clymer dies; 1932, Fractional Currency author D.W. Valentine dies; 1939, Senator Logan reads into Congressional Record "Lincoln's Monetary Policy;" 1997, R.M. Smythe 10th Anniversary Strasburg Auction; Jan. 25 1790, William Cooper of Otsego County, NY issues scrip; 1922, Noted banker, Comptroller of Currency and paper money author A. Barton Hepburn dies; Jan. 26 1866, Louisiana Governor Andre B. Roman, who appears on DIX note, dies; 1992, BEP/Mint engraver Gilroy Roberts dies; 2004, Money illustrator Tim Prusmack dies; /an. 27 1900, U.S. Treasurer Georgia Neese Clark born; 1938, First delivery of Series 1934A $5 SC; 1960, James Garner takes to silver screen as Cash McCall; Ian. 28 1834, Indiana Legislature charters State Bank; 1953, Beginning of Humphrey-Priest combined tenure; 2004, Bank of Canada unveils new $100 Canadian Journey note; /an. 29 1803, Anselm von Rothschild, who said "give me power to issue a nation's money, then I do not care who makes law," born; 1862, Treasury Secretary Chase withdraws opposition to U.S. legal tenders; 1980, SPMC names its Memphis exhibit award; /an. 30 1897, NY Colonial Currency author John Howard Hickcox dies; 1934, Confederate and Southern States Currency author Grover C. Criswell born; Ian. 31 1866, Alabama legislature authorizes certain county scrip; 1913, Treasury Secretary MacVeagh approves new George Washington $1 Silver Certificate design; 1985, BEP souvenir card for Long Beach expo reproduces Series 1865 $20 GC back; Don't wish for new cus tomers. Do something. Advertise your presen ce by adding your logo sponsorship to th is page for 2006. WANTED AUTOGRAPHS Original signatures of famous historical people on • currency • letters • • photos • documents • checks• SERIOUS BUYER! "PAYING TOP DOLLAR' ERROR CURRENCY LOW SERIAL & SOLID NUMBER SMALL SIZE NOTES SEND FOR OUR FREE PRICE LIST RAY ANTHONY P.O. Box 9307 Portland OR 97207 (503) 223-1116 ANA LIFE MEMBER 2247 MEMBER MANUSCRIPT SOCIETY PROFESSIONAL AUTOGRAPH DEALERS ASSOCIATION U.S. CURRENCY -4)*** '11;;;;; Box 631250. Irving, TX 75063 MEMBER mR4 Kent Robertson. owner Itiih 55PAPER MONEY • January/February 2006 • Whole No. 241 U.S. CURRENCY Is Buying Everything "Still Paying Top Dollar for Rare Confederate" U.S. Type, Obsoletes, Nationals, and of course, Santa Notes 404-229-7184 WIP:10;441031AWNWRAStNO3§110§.4032410411ti INSURANCE For The Paper Money Collector Your homeowners insurance is rarely enough to cover your collectibles. We have provided economical, dependable collectibles insurance since 1966. • Sample collector rates: $3,000 for $14, $10,000 for $38, $25,000 for $95, $50,000 for $190, $100,000 for $278, $200,000 for $418. Above $200,000, rate is $1.40 per $1,000. • Our insurance carrier is AM Best's rated A+ (Superior). • We insure paper money, paper ephemera, manuscripts, books, autographs and scores of other collectibles. "One-stop" service for practically everything you collect. • Replacement value. We use expert/professional help valuing collectible losses. 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Visit: www.collectinsure.com See the online application and rate quote forms on our website 5 6 January/February 2006 • Whole No. 241 • PAPER MONEY On This Date in Paper Money History -- Feb. 2006 By Fred Reed © Feb. 1 1886, Final semi-annual payments on Louisiana "Baby Bonds"; 1964, Theives steal nearly $300 grand worth of material from Criswell's Money Museum, St. Petersburg Beach, FL; 1979, Bank Note Reporter first published by Krause Publications; 2003, H.E. Harris acquires Whitman Coin Products from St. Martin's Press; Feb. 2 1819, Patent medicine vendor and currency facsimilist Sam Upham born; 1966, Glenn Ford-Elke Summer star in The Money Trap; 2004, Takatoshi Kato becomes IMF Deputy Managing Director; 1962, First delivery of Series 1953B $10 SC ; Feb. 3 1863, John M. Batchelder patents improvement in bank notes with a series of numbers extending across the bill; 1964, Fractional Currency author Frank A. Limpert dies; 1971, David Hakes article on SPMC in Coin World nets 120 new members; Feb. 4 1879, The new consolidated ABNCo with NBNCo and ContBNCo added incorpo- rates; 1974, Socialite cum bank robber Patty Hearst kidnapped by Simbianese Liberation Army; 1986, Robert T. Parry takes office as President SF Fed Bank; Feb. 5 1637, Holland's tulip bulb bubble bursts; 1794, Treasury Secretary Alexander Hamilton reports to Congress on loans from Bank of the U.S.; 1864, George H. Perine revives flagging American Numismatic Society by inviting group to meet at his home; Feb. 6 1864, CSA Congress prohibits dealing in U.S. currency with certain exceptions; 1911, Ronald Reagan, who said "money can't buy happiness but will get you a better class of memories," born; 1967, Treasury Secretary Henry Morgenthau Jr. dies; Feb. 7 1833, Florida Territorial Legislature charters Commercial Bank of Florida, Apalachicola over governor's veto; 1979, Smithsonian unveils highlights from the Chase Manhattan Bank Collection; 2005, Fred Reed's Show Me the Money! published; Feb. 8 1861, Alabama Assembly authorizes Governor to issue state notes payable in Confederate currency; 1875, U.S. Act taxes notes of state banks, towns, cities, or municipal corporations at 10%; 1971, Beginning of Connally-Kabis tenure; Feb. 9 1819, Worthington, OH taverner Ezra Griswold issues third series of scrip; 1864, Photographer Anthony Berger takes famous Lincoln photo on which familiar $5 por- trait is based; 1947, Bank robber Willie Sutton escapes Philadelphia jail; Feb. 10 1808, First bank authorized in Ohio, Bank of Marietta incorporates; 1863, Senator John Sherman addresses Congress on the necessity of a uniform national currency; 1911, William H. Woodwin Collection sale; Feb. 11 1818, Maryland Assembly taxes all banks not chartered by the legislature; 1971, John B. Connally takes office as Treasury Secretary; 1997, Edison Birthplace Historic Site, Milan, OH issues souvenir cards for Thomas Alva Edison's birth sesquicentennial; Feb. 12 1864, First National Bank of Columbus, OH receives their National Bank Notes; 1934, Export-Import Bank incorporates; 1964, Production of Series 1963 $2 U.S. Notes with motto "In God We Trust" begins; Feb. 13 1866, Banknote engraver George W. Hatch dies; 1990, ANS hires John M. Kleeburg as asst. curator of Modern Coins and Currency; 2003, Economist and Presidential adviser Walt Rostow dies; Feb. 14 1818, Mississippi renames its only chartered bank Bank of the State of Mississippi; 1923, President Harding restores 17 BEP employees he'd sacked two weeks earlier; 1924, President Coolidge names Army Major Wallace Kirby acting BEP Director; Feb. 15 1811, Congress charters Bank of Alexandria, DC; 1841, Congress authorizes one-year interest-bearing notes of $50 and up; 1870, Order of payment for Missouri Union Military Bonds is specified; 1980, BEP souvenir card for ANA midwinter show repro- duces Series 1896 $5 Silver Certificate back; Feb. 16 1866, Bank of the State of Tennessee assets liquidated; 1875, Fourth Issue of Fractional Currency ceases; 1973, Independent Arbitrage International issues bearer notes denominated in "constants"; 1990, BEP accepts title to Western printing facility; Feb. 17 1862, PM Henry Cleveland, Shushan, NY, circulates cardboard 1c scrip; 1864, CSA notes' seventh issue; 2003, Traveling exhibit "Confederate Currency: Color of Money" opens in Baton Rouge; 2004, Paper money collector/author Martha Schingoethe dies; Feb. 18 1836, Pennsylvania recharters Second Bank of the United States as United States Bank of Pennsylvania; 1875, Act prohibits national banking associations from issuing "any other notes to circulate as money"; 2005, SPMC member/dealer Tom Durkin dies; Feb. 19 1842, Wisconsin Legislative Assembly authorizes Territorial Warrants for payments; 1873, Comptroller of Currency required to report on condition of state banks; 1980, Sen. William Proxmire introduces 52305 to authorize printing the backs of U.S. $1 bills "by a method other than the intaglio process;" 2004, Collector's Universe sells Bowers & Merena Galleries to Greg Manning Auctions; Feb. 20 1807, New Orleans Mint melter-refiner and emergency scrip issuer John Leonard Riddell born; 1877, Final Treasury Department contract with Columbian Bank Note Co. to print government securities; 1894, U.S. Attorney General Richard Olney rules that Silver Certificates are not "lawful money" under statutory language; Feb. 21 1861, CSA Treasury Secretary Christopher Memminger's tenure begins; 1863, Scientific American reports NYC's Eighth Avenue Railroad Co. redeemed $8,400 face value in stamps taken as fares; 1871, First National Bank of Lincoln, NE chartered; Feb. 22 1777, Washington's aide LTC John Trumbull whose art appears on notes resigns com- mission; 1850, Cornerstone for Crawford's Washington statue, which appears on CSA 1864 $500 notes, laid; 1959, Hong Kong film Money (a.k.a. Qian) debuts; 1980, Israel pound bows out; 1999, first FDIC-insured Internet-only bank firstib.com goes on line; Feb. 23 1864, First National Bank chartered in Maryland (FNB Baltimore #204); 1867, 2nd Issue of Fractionals ceases; 1938, Numismatist Doug Ball born (some sources state 1939); 2003, "Wonderful World of Money" opens at Bowdoin College Library; Feb. 24 1815, Inventor Robert Fulton (FR 247-248) dies; 1913, American Journal of Numismatics Editor William T.R. Marvin dies 1914, BEP begins moving into current main printing plant between 14th and 15th Streets; Feb. 25 1791, Congress charters the First Bank of the United States with capital of $10 million; 1873, John W. Haseltine holds numismatic auction in Philadelpha; 1985, Last delivery of Series 1981 $50 FRN; Feb. 26 1797, Bank of England issues first one-pound note; 1798, Bank of England suspends specie payments; 1867, Kansas OKs Union Military Scrip to pay Civil War military claims; 1874, Fifth Issue of Fractional Currency commences; 1913, Treasury Secretary MacVeagh instructs BEP to proceed with redesigns for small size U.S. currency; Feb. 27 1795, "Swamp Fox" General Francis Marion, depicted on Confederate $100 note, dies; 1888, First J.W. Scott auction cataloged by Lyman Low offers George Bascom collec- tion; 1933, Lewisburg Grain Elevators circulates depression scrip with images of Abraham Lincoln; 2004, "The Higgins Money Museum" video debuts at CPMX; 1987, ANA mid-winter convention convenes in Charlotte, NC; Feb. 28 1793, U.S. government borrows an additional $800,000 at 5% from Bank of the United States for support of government for 1793; 1878, Congress passes Bland- Allison Act authorizing Silver Certificates requiring silver purchases; PAPER MONEY • January/February 2006 • Whole No. 241 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: Ihorwedel@insightbb.com website: horwedelscurrency.com r Always Wanted Monmouth County, New Jersey Obsoletes — Nationals — Scrip Histories and Memorabilia Allenhnrst — Allentown — Ashoy Park — Atlantic Highlands — Belmar Bradley Beach — Eatontown — Englishtown — Freehold — Howell Keansburg — Keyport — Long Branch — Manasquan — Matawan Middletown — Ocean Grove — Red Bank — Sea Bright — Spring Lake N.B. Buckman P.O. Box 608, Ocean Grove, NJ 07756 800-533-6163 Fax: 732-282-2525 New Hampshire Notes Wanted: Obsolete currency, National Bank notes, other items relating to New Hampshire paper money from the earliest days onward. Dave Bowers Box 539 Wolfeboro Falls, NH 03896 e-mail: qdbarchive@metrocast.net 1 57 Buying & Selling All Choice to Gem CU Fractional Currency Paying Over Bid Please Call: 314-878-3564 ROB'S COINS & CURRENCY P.O. Box 6099 St. Louis, MO 63017 58 January/February 2006 • Whole No. 241 • PAPER MONEY Were These Errors Engraved on Purpose? Inverted & Mirrored Plate Numbers on Fractionals - Part H By Rick Melamed S INCE MY INITIAL RESEARCH ON INVERTED AND MIRRORED PLATE NUMBER NOTES on fractionals three years ago (SPMC Vol. XLII, No.1, January/February 2003), quite a few more examples have been added to the census. (14) New examples have been discovered and the list has been updated accordingly. Also with further research a couple of deletions to the list were necessary (see page 62). Some new observations have been noted and I will do my best to elaborate. But the big question is...were Inverted/Mirrored Plate numbers done on purpose and as a prank by apprentice engravers? Before continuing, a brief explanation of fractional plate numbers is necessary. VVhen fractional sheets were made a single plate number was engraved onto the face and back plates on the 1st, 2nd and 3rd issues. On 4th issue faces, the plate number was added as a stand alone process and not engraved into the actual plate. That would explain why the placement of plate numbers on the face of 4th issue notes can vary; while on the first three issues, their position is static. Plate numbers on 4th issue backs and on 5th issues faces and backs were engraved into the selvedge portion of the sheet. The only known example of a plate number on a 4th issue back is an FR1301 and is only there because the note's top selvedge was not trimmed off (see the 2003 SPMC article for a photo). The plate number was usually engraved into the margin of the notes and their existence was for accounting purposes only. Since not part of the note's design element, they are frequently partially or wholly trimmed off. Still whole plate numbers on a note are not uncommon. But since only two plate number notes are possible per sheet (one face, one back) they are still pretty scarce. Much rarer is a plate number engraved inverted or in mir- rored image. Since the mundane task of plate accounting was performed by an apprentice engraver, the existence of inverted and mirrored plate numbers was either due careless engraving or a whimsical attempt by the engravers for some humor. It's not a far stretch to imagine an apprentice or two, in a fit of boredom or horseplay, engraving the plate number inverted or in mirrored image. Since their existence was not meant for the general public to see, I think it can be reasonably assumed that some inappropriate actions were possible. I base this theory on several observa- tions: • Inverted/Mirrored plate numbers are very, very rare on regular 2nd issue notes. Only 2 examples are known to exist on an FR1245 and FR1316. Two examples out of 345 plate numbers is a reasonable ratio to assume an engraving error. Also one of the examples, an inverted 66 on an FR1245 could have been easily inverted by accident since "66" and "99" are so similar in design. Why is there a much greater preponderance of plate number errors on 3rd and 4th issue notes? I theorize that the engraving of 3rd and 4th issue plate numbers was an attempt by an apprentice to put one over. • Why are inverted/mirror plate numbers much more prevalent on 3rd issue Spinner and Justice notes than the other 3rd issue denominations (3c, 5c, 100 and 25o)? Again, could it be the alleged culprit only engraved plate numbers on Justices and Spinners and not on the other denominations? Plate numbers frequently show up on all 3rd issue denominations, but 90 to 95% of inverted/mirrored plate numbers are found on the 50o denomination. • Then there is the quantity of examples to consider. There are far too many examples of inverts/mirrors to justi- fy that many engraving mistakes. 70 different examples will translate to a relatively high percentage. How many plates were used...maybe 1000? There are 70 unique inverted/mirrored plate numbers known and more yet to be discovered. That's roughly 7%. This is a relatively large percentage of errors and one can postulate safely that some of them were done on purpose. Please note: the exact number of plates used for fractionals is unknown. There is an accounting of plates for the first three issues; no accounting of the quantity of plates used for the 4th and 5th issue exists. • On 4th issue notes, the inverted plate numbers are inverted on a consecutive string of FR1259s. Please note that there is an inverted plate number #18, 20 and 21 (is there an inverted 19?). Also inverted 4 and 5, and inverted 32, 33 and 34. I don't think this is a coincidence. Could it be further proof of this theory? Perhaps so (see illustrations). • There are two blocks of (8) plate numbers for 2nd issue specimens. The first block of (8) encompasses plate We are proud to continue the numismatic legacy begun in 1933 Specializing in Quality and Rare U.S. Currency U.S. Large Size Fractionals U.S. Small Size Nationals National Gold Bank Notes Kagin's -- an established name for conservative grading of quality notes. We specialize in building U.S. currency collections of premium quality and rare notes. Favorable terms to suit your individual needs. 98 Main Street #201 Tiburon, CA 94920 1-888-8KAGINS www.kagins.com Call Judy Harlan j. Berk, Ltd. "The Art & Science of Numismatics" 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 www.harlanjberk.com e-mail: info@harlanjberk.com A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA Buying Carl Bombara Selling United States Currency P.O. Box 524 New York, N.Y. 10116-0524 1-Uiroti\ Phone 212 989-9108 PAPER MONEY • January/February 2006 Whole No. 241 59 G1Win0 from My Fractional Currency Archive - 8 By Fred Reed Tj. ERE'S AN OPPORTUNITY FOR RESEARCH. WE imight have had another issue of Fractional Currency during the Gay Nineties. The clipping below is from the journal The Manufacturer and Builder, December, 1893. If you find out what happened, write it up and send it in! • P.:),sTAL FRA(71-14.)NAL CtstmcNe .,—There is a hill pending in Cong:ruttN. k)rovitling for thu is sniing 1)0Sta1 fractional eurremy iii d ,entmainatiOlis of 10, 2.5 and 50 t!erkth. /S. Ontended to livrniA, the 'Albite with gt. Mil form of money for tram. mis9ion through the mails. It is to dispha,,,,, the postal note,s, which are to 1-.K? withdrawn from Kale 1 on January 1, 1894, This ft Mal postrd rency would be furnishc ,.1 at its fac-e 7:111Lie niid without the formality now ncee&.,4ary gift a poEi- tal note,, There are branch of businuss hip; small transactiorts. which would be sensibly aided by such a esumlwy for inc4viure in lettem, A New Pyrometer for Industrial Uses,, Queen & Co., of Pititad.clphia, hav e, within the present ye= , put on the market a mercurial py- rometer for use in Aacks, fl W.*, Sin DO YOU COLLECT FISCAL PAPER? The American Society of Check Collectors publishes a quarterly journal for members. Visit our website at http://members.aol.com/asccinfo or write to Coleman Leifer, POB 577, Garrett Park, MD 20896. Dues are $10 per year for US residents, $12 for Canadian and Mexican residents, and $18 for those in foreign locations. FR1232SP-WM-Face — Mirror 334 FR1232SP-WM-Back — Mirror 335 FR1283SP-WM-Face — Mirror 339 60 January/February 2006 • Whole No. 241 • PAPER MONEY numbers 1-8. The second block of (8) specimens is from plate numbers: 334, 335, 336, 337, 339, 341, 342 & 345. Of the (8) plates used for the 3xx series on the 2nd issue wide margin specimens (face and back for each denomination...5c, 100, 250 & 50c) (3) of the examples exhibit mirrored plate numbers. Unlike regular issue notes where many different plates per denomination were used, only one plate was used for each specimen type in the 3xx series. The (3) known examples are illustrated below: Since the plate number on specimen notes was engraved on the very edge; finding an untrimmed example with the plate number (and the deckled edge) is very, very rare. The only research on 2nd issue wide margin speci- men notes with plate numbers is confined to these three examples, and all three are mirrored! One can wonder if three of the eight plates on the 3xx series have mirrored plate numbers, do the other five plates have mirrors? Again if such a high percentage is mirrored, is this a case of an engraver purposely engraving the plate numbers incorrectly? One would think so. Any additional information on other wide margin specimens with plate numbers would be greatly appreciated (please email me at rico- nio@yahoo.corn). I think the evidence presented makes a convincing case that inverted/mirrored plate number notes could very well have been engraved in mirrored or inverted image on pur- pose. Maybe all the engravers were in on the joke and not just the apprentices. One would think that the master engravers proofed the plates, and while design elements were never compromised, all could share the inside joke when it came to plate numbers. And why not? How many times, in the name of anti-counter- feiting protection, were the designs changed, or surcharges added, or the paper was changed (thick fiber, fine fibers, watermarked, un-water- marked, etc.). The government must have been making the engravers crazy with different requests. To add insult to injury along comes Spencer Clark, whose inappropriate behavior got him in lots of hot water. He had the audacity to make the engravers put his portrait on a note. Oh, I'm sure the engravers had a few unkind words behind Clark's back. They got even in their small inconsequential way. . .an inverted plate number here, and mirrored plate number there. By the 3rd issue they snuck in a few and by the 4th issue they were going hog wild. From the contrarian's point of view some- times one cannot see the forest in front of the trees. It's quite possible that I've over thought this, and the reality is that the engravers were so intent on the note design that they over- looked the plate numbers because they were nothing more than an accounting function and ultimately not worth paying attention to. After pondering this and discussing the subject among the fractional fraternity, I ultimately believe there was purposeful intent to engrave plate numbers inverted and mirrored. 61PAPER MONEY • January/February 2006 • Whole No. 241 er••••••• .•4"" 71."71_.„ (.1;7711, • V.•••• a•••••A„.,■•••• 4.1idgal E. NT FRACTIONAL C an ---- c-cre..ceccccrAtiga:rii,san ilturCSoir t',. c CCt: Z.. C QC • . ...VI ICY From top left: Is this Plate #29 or an inverted Plate #62? Inverted #s 4, 5, 18, 20, 21, 32, 33, 34 After 140 years it looks like their secret has finally been uncovered and now we're all in on the joke. The whole thing is pretty funny when you think about it. I'm sure the engravers would much rather be engraving $100 notes rather than the lowly fractionals. All this adds to the wonderful folklore of fractionals. In conclusion, no real research was ever attempted earlier, so the list of examples will continue to grow. It will probably never be completed. I have to extend many thanks to all my fractional buddies who have shared my enthusiasm and contributed to this ongoing research. They have been scanning bourse floors, bidding for me in auctions that I cannot attend, and generally keeping their eyes open for new examples. Every time a new example is discovered, I dutifully add it to the list. In the end collecting is a passion we all share. If we can contribute a little bit of information to the hobby, then we have distinguished ourselves not merely as collectors, but enthusiasts who appreciate the history of our hobby and how it relates to the history of our great country. Always remember, we never really own the notes in our collection; we're just holding them for the next guy. In no special order, and certainly not limited to, I want to thank Benny Bolin, Bob Laub, Mike Marchioni, Torn Denly, Martin Gengerke, Rob Kravitz, Tom O'Mara, Bruce Hagen, David Treter, Jerry Fochtman, Len Glazer and Milt Friedberg. Discovery Note Found Only Known Example of a Regular 3rd Issue Red Back fractional with an Inverted Plate Number Towards the end of last April I received the Heritage/CAA Torn O'Mara Auction Catalog. What started as a rumor mushroomed into a full-blown event. Torn O'Mara was selling only the 2nd complete collection of regu- lar issued fractionals (Martin Gengerke's was the first at the FUN sale in 1995). This was certainly the most eagerly await- ed catalog since the Ford sale from 2004. Everyone has his/her special interests and mine is the inverted/mirror plate numbers notes. A lot of the readers are now in possession of a former O'Mara treasure. I knew Tom was selling off his FR1301 with the mirrored 6 on the back (lot 15785), and this is a note that I have really wanted for years. I first became aware of its existence in 2001 when I began research on my first article on inverted/mirror plate number notes. Torn, who was the President of the FCCB at that time, helped me considerably in writing the first article and sent me the scan of the FR1301. It's a great example and the only known example of a 4th issue note with an inverted plate number on the back. It exists because the top selvedge of the note remained untrimmed. Anyway the scan appeared in the first article and I have been bugging Torn these past few years to sell it to me. My logic was flawless: "Tom, please sell me the note, I have 60 different examples of inverted/mirror plate number notes and the FR1301 belongs with the others. I must have it!!" Alas, each time I was politely rebuffed by Torn with, 62 January/February 2006 • Whole No. 241 • PAPER MONEY Inverted and Mirrored Plate Number Notes revised 6/1/05 Friedberg # Inverted Plate # Position Reference 1226 2 Back (2) in RM Collection 1230 28 (900 rotated) Face Private Collection 1245 66 Face Private Collection 1255 inverted 83 Back RM Collection 1255 inverted & mirror 83 Back Valentine Reference, RM Collection 1256 inverted & mirror 83 Back Valentine Reference 1256 6 partial Face Private Collection (could be plate #26, 36, 56, 76, 86, 96, 106, 116 or 126) 1259 4 Face RM Collection, RM Smythe 10/04 Lot 2702 1259 18 Face eBay Item number: 3928205557 1259 20 Face 2x RM Collection, lot 2760 Goldberg 2/01 - 1259 21 Face lot 688 - CAA 1/97-RM collection 1259 32 Face RM Collectionx2 1259 33 Face Valentine Reference 1259 34 Face lot 898 CAA 2/02-RM Collection 1259 62 Face RM Collection 1267 mirror 5 Face #5310 CAA 9/01 & Valentine reference &RM x2 1267 Sheet mirror 5 Face Lot 1005 Stack's 5/04 1267 20 Face ebay : 3922038088 1269 4 Face Private Collection 1269 10 Face RM Collection 1271 7 Face RM Collection 1294 partial 48 Back Private Collection 1294 6x Face RM Collection 1301 mirror 6 Back RM Collection from O'Mara 5/05 CAA Auction Lot 15785 1303 10 Face #702, NASCA 5/77 1303 partial 54 unknown Private collection; lot 841 CAA 9/02 1316 partial 3 unknown Private collection 1320 12 Face Lot 91, Glazer Mail Bid Sale #1 1328 Mirror 1 Face Ref By Richard Jacobson 1331 partial 6 Back #5270 CAA 9/01-RM Collection 1331 mirror 21 back RM Collection 1332 32 Back RM Collection; lot 2031 Lyn Knight 6/04 1334 32 Back RM Collection 1336 32 partial Back #819 CAA 2/02*, #145 1/95, #15214 9/04*, Lot 16042 May 2005 O'Mara Sale 1335 44 Back Private collection 1336 partial 44 Back #16691 CAA 1/03 1337 partial 44 Back Private collection 1343 Partial 36 Back RM Collection from Lot 16052 May 2005 O'Mara Sale 1338 partial 44 Back RM collection 1358 mirror 21 Back RM Collection 1360 29 Back RM Collection 1360 68 face RM Collection 1362 mirror 21 Back lot 873 CAA 2002 - RM Collection 1362 12 Back Private Collection 1362 w/inv surcharge 18 Back Valentine Reference 1363 12 Back Private collection; lot 841 CAA 9/02, Lot 933 Stacks 5/04, Lot 77 Stacks 6/05 1363 32 Back RM Collection 1363 partial 20 Back lot 16744 - CAA 1/03 1363 22 Back RM Collection 1363 partial 2 Back could be plate # 20, 21, 22, 45, 25, 27, 28 or 29 - RM Collection 1363 32 Back RM Collection 1364 22 Back Lot 15478 1/05 FUN 1364 2x Back RM Collection 1364 29 Back Valentine Reference 1365 20 Back RM Collection (2); Lot 935 Stack's 5/04 1365 12 partial Back Valentine Reference 1365 29 partial Back RM Collection 1365 22 partial Back Lot 21260 6/15 CAA internet auction and now w/ RM 1365 41 Back Lot 79 Stack 6/05, RM Collection 1368 12 Back RM Collection 1368 32 Back lot 884 CAA 2/2002; lot 938 Stacks 5/04 1368 44 partial Reverse RM - Lot 15535 CAA 9/05 sale 1369 29 Back Private Collection 1369 32 Back RM Collection 1371 mirror 21 Back Private Collection 1371 29 Back Several Exist 1371 42 Face Valentine Reference 1372 partial 29 Face RM Collection 1376 21 Face Private Collection 1232SP-WM-OBV 4x Partial Private collection (2nd digit is not definable) 1232SP-WM-OBV mirror 334 partial RM Collection 1232SP-WM-REV mirror 335 RM Collection 1251SP-WM-REV 11 Several Exist 1255SP-WM-REV 11 Several Exist 1283SP-WM-OBV mirror 339 Private Collection 1294SP-WM-OBV 13 (900 rotated) Private Collection CFT1295 mirror 51 Back Counterfeit - private Collection PAPER MONEY • January/February 2006 • Whole No. 241 63 1 "Rick if I ever decide to sell it I'll let you know." Oh well, you cannot blame a guy for trying. Anyway, when the realization that the sale was going to happen during the Central States Convention in St. Louis, I began checking the Heritage/CAA Website daily where the lots generally hit the Internet before the hard catalog arrives in the mail. I wanted confirmation that the FR1301 would be in the sale. Sure enough when O'Mara's collection hit the website, the FR1301 with that mirrored 6 was there as expect- ed and I began to get excited. I went through the rest of the website really not expecting anything too significant in the way on inverts/mirrors. When doing my research for my ini- tial article, Tom had indicated that he went through his col- lection and reported what inverted/mirrored plate number notes he possessed. Tom had quite a lot of special notes. What with pedigrees from Milt Friedberg, the largest collec- tion of fractional errors ever offered, and an impressive collec- tion of autographed notes, this was not just a sale, this was going down as one of the great fractional sales ever. As I was making my way through the catalog...OMY- GOSH!! A true discovery!! The first known example of an inverted/mirrored plate number on any regular 3rd issue red back (including the 50, 100, 250 & 500 3rd issue denomina- tions). They abound on green backs; on red backs no exam- ples were known until now. And I cite from the Heriage/CAA May 2005 auction catalog: "Lot #16052 FR.1343 Milton 3R50.3a Third Issue Justice Very Choice New. With a hair more top margin, this bright flashy impeccable Justice would make the elusive Superb Gem grade. It features deep original embossing, per- fect colors and reflective bronze. The note also has an invert- ed back plate number "?6," likely 36. This inverted number is not listed in Rick Melamed's newly updated census, which appeared in the winter 2005 FCCB periodical. In fact, no inverted or mirrored plate numbers are listed for any Red Back Justice. (600-up)" Heriate/CAA was correct on all counts; up to this point: there were no known examples of inverted/mirrored plate numbers on Red back Justice (also Spinners, a technicality because they use the same back). I also agree with Heritage/CAA when they state they believe it's an inverted plate #36. This is a true discovery note and it's a significant find (as an aside, it was a thrill to see my name mentioned in the auction catalog; I got a few emails and calls from friends ribbing me that I made the big time because my name was in the catalog!). For those who think that this may be a regular (non- inverted) "9x" plate number, that's not possible. According to the BEP list of fractional plates, for 500 Justice/Spinner faces and Type 1 backs, the issued plates stop at 94. More specifi- cally: Plate 90 is a back; Plate 91 is back; Plate 92 is a back; Plate 93 is a face no signature wide margin specimen; Plate 94 is a back. A careful study of the first partial digit clearly indicates that the partial numeral is definitely not a "0", "1" "2" or "4" (the "3" was an face). Also for those who postulate the partial first numeral could be an "8" or an inverted plate "86," that also is not pos- sible. The same BEP plate list indicates that plate #86 was for the face. There is enough of a design element in the partial first numeral and support documentation from the BEP to conclude positively that this note possesses an inverted plate #36. (Editor's note: The note brought $1753.75 including buyer's premium.) This kind of story gets buried what with the FR1255A, FR1373A, FR1352, negative essays, presentation book, etc. All I can say is that all these rarities were known entities, but the FR1343 with the partial inverted 36 is a discovery note and its existence was not known until this time. The following is a list of proof notes, as submitted and cataloged by Tom O'Mara, from the Smithsonian Institutes holdings: PKG SCHED DENOM DESCRIPTION PROOF PLATE INVERT or MIRROR NO. NO. IMPRESSION NUMBER NUMBER 1 240 3 cts 3rd Issue Backs 145346C 6 Invert 1 240 3 cts 3rd Issue Backs 145347C 2 Invert 1 240 3 cts 3rd Issue Backs 145349C 9 Mirror 1 240 3 cts 3rd Issue Backs 145362C 24 Invert 6 245 10 cts 3rd Issue Green Backs 145544C 107 lower left corner = wrong corner 8 247 10 cts 2nd Issue Face 71 Invert 10 247 25 cts 2nd Issue Face 238 In wrong corner note = plate g's on this 2nd issue 25 ct 4x5 note sheets in bottom 4 corner convergence 11 247 25 cts 2nd Issue Back 219 "9" only is backwards 11 247 25 cts 2nd Issue Back 222 Upside down . all #s backwards 11 247 25 cts 2nd Issue Back 234 Invert 11 247 25 cts 2nd Issue Back 226 Written 64 January/February 2006 • Whole No. 241 • PAPER MONEY No Loop de Loop Do you have one in your collection? By Mike Marchioni Fifty -cent Justice note with no loop. WHEN I FIRST BEGAN COLLECTING FRACTIONAL Currency in the late 1960s, the readily available fractional ref- ' erence works consisted of D. W. Valentine's Fractional Currency of the United States, F. Limpert's United States Postage and Fractional Currency, and Matt Rothert's A Guide Book of United States Fractional Currency. With my research tools in hand, I busily collected such items as the fourth issue Liberty notes with the misspelled "Allison" signature, open "e," closed "e," and the Allison with the "dot" in several places. Today, unfortunately, nobody seems to care about the oddities produced in the fourth issue by the American Bank Note Company (ABNC). Were the Allison misspellings an error or purposely done by an engraver? I don't have an answer for that question; however, two years ago I had an opportunity to view 49 different ABNC engravers proofs of the fourth issue Liberty note—all with ever so slight design variations. It would be interesting to know how many vari- ations actually made it into production. All of this brings me to the question as to what constitutes a "complete collection" of regular issue notes? Is a regular issue collection complete accord- ing to the works of Valentine, Limpert, Rothert, or according to listings found in Robert Friedberg's Paper Money of the United States? Most collectors view the 135 pieces listed in the Friedberg refer- ence work as a complete set. No one in the fractional communi- ty appears to have a problem accepting the Fr. 1255a (Tom O'Mara's example fetched a record price of $138,000), or the Fr. 1330 into the Listing, although it is quite doubtful that either note was ever released to the public. I have, how- ever, seen one VG Fr. 1330. Others, however, do question the inclusion of the 1310a (two sheets of "perf 14" notes historically have been attributed to the actions of dealer Harlan P. Smith circa 1890. Such notes, as stated by Heritage/CAA in the Torn O'Mara catalogue, "...remain(s) highly desirable and collectible in spite of its possible private perforations"). Some question the Fr. 1248, the earliest appearance of which was in an auction in 1890 conducted by none other than Harlan P. Smith. The Fr. 1248 has reverse surcharges unlike any other fractional issue. Only the former Kessler Fr. 1248 has the old English "0" that is comparable to the "0" found on the Fr. 1320. It is still questionable, even if the Kessler note is genuine, that it was ever released to the public. To me it is rather amazing that other rather rare regular notes produced by the Federal government don't get the attention (or the prices) they deserve. Most notable is the 1365a. According to Martin Gengerke "Most Justice plates had 12 subjects, but a few had 30. One of these had the plate position letter "a" on notes in the left column (face plate #62) rather than notes on the top row and did not have the number "1." Any Justice notes having the "a" only...and miss- ing the signature loop on the left edge...would be from this plate of 30" (Gengerke, 1972, 81). PAPER MONEY • January/February 2006 • Whole No. 241 65 Standards Consistency Integrity nein em ‘1.1:11,d' CURRENCY A Division of Collectors Universe Nasdaq: CLCT PCGS led the effort two decades ago to standardize coin grading. Today, PCGS Currency is leading the effort to create a standardized grading system for collectible currency. PCGS CURRENCY is the only currency grading service with written grading standards. We apply those standards with accuracy and consistency, giving the best representation of what a note actually grades. Please see our written grading standards on our website, www.pcgscurrency.com , or ask us for a free copy today. PCGS CURRENCY is recognized in the marketplace as having the most consistent standards. Unlike other grading services, we reward problem-free notes that possess full originality in a consistent manner. Our unique "PPQ" (Premium Paper Quality) label allows collectors to identify notes that are truly above average and free of any problems of any kind. PCGS CURRENCY does not allow its full time graders to deal in currency. Even our outside consultants are prohibited from submitting notes to PCGS Currency or dealing in PCGS Currency-graded notes, making our grading truly unbiased with the best "third- party" integrity possible. In just three short months, PCGS Currency has graded more than 10,000 notes. Entrust your currency to the service with the standards, consistency, and integrity that you require — PCGS CURRENCY The Standard for Paper Money Grading FOR SUBMISSION INFORMATION: P O. Box 9458 • Newport Beach, California 92658 Toll-free 800-447-8848 Fax 949-833-7660 • www.pcgscurrency.com 1 a 1 1 a a a a a a a a Above: Regular Justice sheet showing the "normal" location of plate position figures. Right: Location of position figures on a sheet from plate #62. Far right: Location of position figures on a sheet from plate #5. 66 January/February 2006 • Whole No. 241 • PAPER MONEY Gengerke also indicated that documented evidence exists that the afore- mentioned plates were cut down to a more manageable size (Gengerke, 2005, personal communication; also see Knebl, pg 18). Given the margin size between Justice notes, many notes that are cut into the left portion of the design may appear to be "no loop" varieties; however, only if some portion of the left margin exists can the note be verified as a Fr. 1365a. Tom Knebl added to the research on the Justice variety in Paper Money Vol. 17, pages 16-18. According to Knebl, in addition to the plate with the posi- tion indicator "a" on the left side obverse (face plate #62), another curiously con- figured 30-specimen plate existed. Face plate #5 had the position figure "a" only on the top three notes; hence, for face plate #5, only the upper left note would be a "no loop" variety. Knebl searched shows and dealer stocks in hopes of finding the elusive "no loop" Fr. 1365. Finally, he discovered one in a group of Justice and Spinner notes he had acquired. and upon closer examination he discovered the note had an inverted back plate #29 (p. 17-18). Knebl indicated that back plate #29 was a 12-subject plate, which indicated that, indeed, the obverse plate had been cut from 30 specimens to 12 (p. 18). Based upon Gengerke's research on plate information, Knebl presumed that his Fr. 1365a was from plate #5. Ultimately, the Knebl Fr. 1365a was purchased by Milton Friedberg from Kagin's 1981 Memphis auction (lot #738) and later became lot #666 in the CAA sale (current owner is unknown to this writer) of the Milton Friedberg collec- tion. The only other auction record of a Fr. 1365a that I could find was lot #276 in the CAA May 2001 sale (p. 37). CAA listed the note as a "Newly Discovered "No Loop" Justice from Plate #5." I would question CAA's judgment as to the PAPER MONEY • January/February 2006 • Whole No. 241 67 front plate number of the note appearing in the May 2001 sale. First, it doesn't possess an inverted back plate #29 and the position letter "a" is different from the Knebl/Friedberg note (see CAA, 1997, p. 98 and CAA, 2001, p. 37). Both notes are actually "no loop, no loop" varieties, i.e., they are both from the upper left corner of a sheet. Was the note in the CAA 2001 sale actually from front plate #62, rather than plate #5? If Knebl's assumptions were correct concerning his note, the 2001 CAA note must have come from face plate #62, rather than place #5. The note from the CAA 2001 sale was purchased by Tom O'Mara and was lot #16079 in the O'Mara Sale by Heritage/CAA in May 2005. It was purchased by the writer. The only other Fr. 1365a that I have seen was another "no loop, no loop" variety from the upper left of a sheet—the letter "a" appears to be the same as that of Tom O'Mara's example. If I am correct in my assumptions, it too would be from the sheet with face plate # 62. That note (the Marchioni piece) was sold privately and resides in a Midwestern collection. Martin Gengerke indicated that he had seen three Fr. 1365a notes. Since Martin never saw my exam- ple, the current census for the note would total four (Knebl/Friedberg note in XF; O'Mara/Marchioni note in AU and Marchioni note in XF; Martin did not indicate the grade of the other Fr. 1365a that he had seen.). Given the rarity of the note and the fact that it was not seen in most major auction sales, the note has brought modest prices at auction (Knebl/Friedberg $935; O'Mara $1,840). I believe the note to be severely undervalued and that it, and the Fr. 1286a, should be considered a part of any regular issue set. As of this writing, no example of a "no loop, loop" variety of the Fr. 1365a has been discovered, i.e., notes along the left side of face plate # 62 that have the loop from the "p" in Spinner's signature in the upper right portion of the note. If I am correct that notes from both plates #5 and #62 exist, several more examples of the 1365a should be available. Do you have one? Happy hunting! References Currency Auctions of America, The Milton Friedberg Collection (January 1997). Currency Auctions of America, Spring Auction Sale (May 2001). Gengerke, Martin, "Fractional Currency Plate Information," Paper Money, Vol. 11, pg. 80-85 (1972). Heritage/Currency Auctions of America, The Tom O'Mara Collection of Fractional Currency (May 2005). Knebl, Tom, "Justice Prevails," Paper Money, Vol. 17, pg. 16-18 (1978). Limpert, Frank A., United States Postage and Fractional Currency (1946). Limpert, Frank A., Classified List of Postage and Fractional Currency (1947). Rothert, Matt, A Guidebook of United States Fractional Currency (1963). Valentine, D. W., United States Fractional Currency, Vol. 1 and Vol. 2 (1924). Top: "Loop" variety from the over- lapping of Francis Spinner's signature. Above: "No Loop" variety 1274 face 68 January/February 2006 • Whole No. 241 • PAPER MONEY Grant/Sherman Specimens By Rob Kravitz M ANY FRACTIONAL NOTES ARE STILL UNDERVALUED based on their scarcity and rarity for the grade. Today exception- al bargains include; perforated notes, fiber paper notes and Grant/Sherman specimen notes. The autographed (hand signed) Grant/Sherman notes, seem to me, to be one of the most overlooked values in Fractional Currency. They are the real sleepers of the fractional market! Not all Grant/Sherman notes are autographed, but all are still very scarce. For example, only 9,016 notes of all types (printed and autographed signatures) were issued. As of 1884, only 3,513 were still outstanding. The Grant/Sherman notes were printed on very thin paper, which if mishandled over the last 138 years would make the note an AU at best! Therefore, many of the wide margin notes over the years have been trimmed down to make gem narrow margin notes (usually to remove a corner tip fold or two). The hand signed notes (both narrow and wide margin) are susceptible to L getting burn holes in the signatures from the acid in the ink. Also, this could cause cracking in the thin paper. There are many Grant/Sherman notes (two fronts and two backs), that are still on shields. How many Grant/Sherman notes can still be left in CHCU or GEM today? How many did you see at the last coin and currency show you went to? How few do you see come up for sale even in large currency auctions? There are eleven different types, all uniface (backs and fronts print- ed separately). They are: • 1/2--Fr1272-sp front printed signatures of Colby and Spinner. Wide and narrow margin notes. • 3/4--Fr1272-sp green back narrow and wide notes • 5--Fr1273-sp front and autographed signatures of Colby and Spinner. Narrow margin only (no wide margin known). These are found only on the green and pink shields. Only a few are known with no trace of ever having been mounted on a shield (no glue remnants). PAPER MONEY • January/February 2006 • Whole No. 241 Maybe 60 are known in all grades. This includes 12 on green shields and about 25 or so on pink shields. There are only two or three GEM known. Most are cut close or into the design on the right or left. • 6/7--Fr1274-sp front autographed signatures of Jeffries and Spinner. Both narrow and wide margins. • 8/9--Fr1275-sp front autographed signatures of Allison and Spinner. Both narrow and wide margins. • 10/11--Fr1273-75-sp red backs. Both narrow and wide margins. The most common Grant/Sherman (if any can be called common) is the Fr1272-sp narrow margin fronts and narrow margin green back. Also, the narrow margin red backs (Fr1273-75-sp). The Fr1274-sp and the Fr1275-sp narrow margin fronts are scarce. They come up for auction maybe four to five times per year. Most were mounted on shields and therefore have glue rem- nants from mounting on the back. The few GEMs that do come up for sale are cut down wide margins. This is one of the reasons why wide margin Fr1274-sp and Fr1275-sp fronts are very scarce in GEM. Maybe only two or three come up for sale each year. The wide margin Fr1273-sp red backs are also very scarce with GEMs being extremely rare. I may have the opportunity to buy only 2 GEMs per year. The Fr1273-sp narrow margin fronts (no wide margins known) are rare in any condition. Most are still on the pink and green shields. Most of the ones that do come up for sale show signs of being removed from a shield. There are only 10-15 'UNCs or better that are even known. Maybe one or two at most come up for auction. Most of the UNCs or better Grant/Sherman notes are just staying in collections. That is one reason not many come up for sale each year. With less and less supply coming avail- able, and the ever increasing demand, prices have nowhere to go but up. Late in 2003 the prices for Grant/Shermans zoomed past the 1981 peak prices. When my book (A Collector's Guide to Postage and Fractional Currency) came out in early 2004, prices went up again. Collectors realized how truly scarce the Grant/Shermans are. The Stack's sale of the Boyd/Ford fractionals brought record prices for most of the Grant/Shermans; most were bought by dealers. Some investors are now also buying Grant/Sherman notes. Soon all the Grant/Sherman notes will be in collections. Do not wait. Buy your Grant/Sherman notes now (if you can find any) before they are gone. This table represents the cost comparison of notes in 2004 when my book was published and April 2005. Fr # CHCU GEM 2004 2005 2004 2005 1272 front narrow margin $550 $750 $750 $950 1272 front wide margin $795 $950 $1,000 $2,000 1272 back narrow margin green $350 $450 $425 $595 1272 back wide margin green $350 $550 $500 $750 1273 front narrow margin $2,300 $3,600 $3,600 $4,500 1274 front narrow margin $595 $795 $895 $1,000 1274 front wide margin $895 $1,100 $1,100 $2,000 1275 front narrow margin $700 $900 $895 $1,200 1275 front wide margin $995 $1,200 $1,200 $2,300 1273-5 back narrow margin red $350 $395 $425 $500 1273-5 back wide margin red $500 $750 $700 $1,250 69 1272 face and back 70 January/February 2006 • Whole No. 241 • PAPER MONEY Official Notice: Nominations Open for SPMC Board T HE FOLLOWING SPMC GOVERNORS' TERMS EXPIRE IN 2006: Mark Anderson Ron Horstman Benny Bolin Judith Murphy If you have suggestions for candidates, or if the governors named above wish to run for another term, please notify Nominations Chairman Tom Minerley, 3457 Galway Rd., Ballston Spa, NY 12020. In addition, candidates may be placed on the ballot in the following manner: (1) A writ- ten nominating petition, signed by 10 current members, is submitted; and (2) An acceptance letter from the person being nominated is submitted with the petition. Nominating peti- tions (and accompanying letters) must be received by the Nominations Chairman by March 15, 2006. Biographies of the nominees and ballots (if necessary) for the election will be included in the May /June 2003 issue of Paper Money. The ballots will be counted at Memphis and announced at the SPMC general meeting held during the International Paper Money Show. Any nominee, but especially first-time nominees, should send a portrait and brief biog- raphy to the Editor for publication in Paper Money. •:* BUYING AND SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Certificates, Treasury Notes, Federal Reserve Notes, Fractional, Continental, Colonial, Obsoletes, Depression Scrip, Checks, Stocks, etc. Foreign Notes from over 250 Countries Paper Money Books and Supplies Send us your Want List . . . or .. . Ship your material for a fair offer LOWELL C. HORWEDEL P.O. BOX 2395 WEST LAFAYETTE, IN 47996 SPMC #2907 (765) 583-2748 ANA LM #1503 Fax: (765) 583-4584 e-mail: lhorwedel@insightbb.com website: horwedelscurrency.com Upcoming Publishing Program May/June 6th U.S. National Bank Note Issue September/October 2nd U.S. Small Size Notes Issue January/February 3rd U.S. Obsolete Currency Issue Full Page rate $300 • Half Page rate $175 Quarter Page rate $100 Ad Deadlines are Mar. 15th (National Currency) July 15th (Small Size U.S. Currency) $ money mart DC AND NY BANK HISTORIES WANTED. Collector seeks pub- lished works for research. Alan Palm, 301 G St. SW-Apt. 201, Washington, DC 20024; (202) 554-8976; e-mail aspalm2003@yahoo.com ( 44) MASSENA, NEW YORK #6694 bank notes wanted, large or small size, also obsolete and related materials to Massena banks. John White, P.O. Box 3183, Spring Hill, FL 34606 (243) POTSDAM, NEW YORK #868 and #5228 bank notes wanted, large and small size, also obsoletes and materials relating to Potsdam banks, John White, P.O. Box 3183, Spring Hill, FL 34606 (243) AUTHORS RECEIVE FREE CLASSIFIED AD. Authors of arti- cles in Paper Money can request a free 3-line ad. Write about your favorite note and advertise for more at the same time. (PM) 930674E vsti 'T %II 411.. art -* ' • """ PAPER MONEY • January/February 2006 • Whole No. 241 71* * * * * * * * * * * * * * * * * * * * * * * * * NUMISMANIA RARE COINS P.O. BOX 847 -- Flemington, NJ 08822 * Office: (908) 782-1635 Fax: (908) 782-6235 * Jess Lipka, Proprietor NOBODY PAYS MORE TROPHY NATIONALS Buying All 50 States, Territorials, Entire State and Regional Collections, Red Seals, Brown Backs, Statistical Rarities, New Jersey. Also Buying Coin Collections and Type NO DEAL TOO LARGE! ** * * * * * * * * * * * * * * * * * * * * * * * * * The PRESIDENT' Column January/February 2006 • Whole No. 241 • PAPER MONEY72 An Exciting New Year T HOPE THAT EACH AND EVERY ONE OF YOU had a great and safe holiday season. With all the adversity that struck this year, we certainly all had a lot to be thankful for. On the paper front, I welcome you all to this exciting Fractional Currency special issue of Paper Money. I know this is a real niche market, but I hope you all enjoy the arti- cles and columns. The week before Thanksgiving, I had the pleasure to travel to the PCDA show in St. Louis where the SPMC had a board meeting and a general meeting featuring an old-timers forum. Ron Horstman, Allen Mincho and Neal Shafer all gave talks about how they got started in the hobby, where they see it today and where they see it going. It was a most interesting presentation, and I thank each and every one of the presenters and the attendees for making it a success. I thought Allen Mincho had some very relevant ideas that I had not thought of before. He spoke of the importance of information, but also the correct use of infor- mation and gave instances where too much or mis-use of information is as bad as not having enough information. Interesting and very thought provoking. I want to thank the PCDA for allowing the SPMC to have a table and a board meeting at their annual show. We have a long time relation- ship of cooperation between the two groups. This is an example of a relationship that is beneficial to those most important to our hobby--the collectors. When two groups can work with different agendas to ultimately make it better for collectors, truly positive results occur. I congratulate the new officers and board of PCDA with Dave Berg now lead- ing the group as president. I have appointed SPMC gover- nor and PCDA member Rob Kravitz as the liaison between the two groups to ensure this relationship works to provide quality results for the hobby. At our board meeting, we ran it in a new fashion— rapidly and to the point with most of the actual work done via email before the meeting. We also utilized conference calling to allow participation by two members who could not attend. It worked very well and we will utilize it in the future to deal with more business of the society in a timelier manner. At our meeting, we discussed how the recent hurri- canes, tornadoes and other member disasters could poten- tially negatively impact our members. It brought us to the realization that we need to have member needs at the fore- front of our agendas. While not making a blanket policy, if a member you know is in need of help with dues, let me know. Finally we are already planning our Memphis meeting and are pleased to have Don Kagin give our program on War of 1812 notes. Until next issue, I wish you all a Happy New Year and good collecting. Benny $ money mart PAPER MONEY will accept classified advertising on a basis of 15c 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 abbreviations, figure combinations and initials count as separate words. No check copies. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad •Vw fix issues = only $20.50! (Wow) INTERNATIONAL ENGRAVER'S LINE, World engravers & their work, 392 pages, 700 ill., most in color, $74 incl. post. Premium ed. with signed notes $140. Gene Hessler, PO Box 31144, Cincinnati., OH 45231 or engraversline@aol.com (246) BOOKS ON U.S. & FOREIGN PAPER MONEY, Securities, Obsoletes, Bank Histories, Nationals, Small/Large Notes, etc. Lists available. Sanford Durst, 106 Woodcleft Avenue, Freeport, NY 11520 Fax 516-867-3397 e-mail: sjdbooks@verizon.net (246) BOOKS: OFFERING WISMER'S Obsolete NY $20; Pennsylvania $12, Ohio $12, Pennell's N.C. $10, Bowen's Michigan Notes/Scrip (HC) $45, Slabaugh's Confederate States Paper Money (updated Doug Ball) $12 and many others. Write!! Add $3.00 postage/book. Sanford Durst, 106 Woodcleft Avenue, Freeport, NY 11520 (246) MEXICO BANKNOTES WANTED. Prior to 1915 with IMPRINTED or AFFIXED revenue stamp on reverse. Bob Bergstrom, 1711 Driving Park Road, Wheaton, IL 60187 USA bobanne@sbcglobal.net (244) COLLECTOR NEEDS Annual Report of the Comptroller of the Currency 1863 thru 1935. Ron Horstman, 5010 Timber Lane, Gerald, MO 63037 (A) WASHINGTON STATE NATIONALS WANTED. Seeking large- size WA nationals from Aberdeen, Hoquiam, and Montesano. Chris Flaat, cflaat@msn.com, 425-706-6022 (244) SHAWNEE AND KINGFISHER Oklahoma Nationals wanted #9998 and #6416 with George McKinnis signature. Large size #9954 and #5328. Carl Cochrane, 12 Pheasant Dr., Asheville, NC 28803, e- mail cicochrane@prodigy.net (243) KANSAS NBNs WANTED . Goodland #14163, Olathe #3720, Pleasanton #8803. A.R. Sundell, Box 1192, Olathe, KS 66051 (246) BANK HISTORIES WANTED. Collector seeking published histo- ries of banks which issued Obsoletes and/or Nationals. Also seeking county/state/regional banking histories. Bob Cochran, PO Box 1085, Florissant, MO 63031 e -mail: spmclm69@cs.com (246) LINCOLN PORTRAIT ITEMS. Collector desires bank notes, scrip, checks, CDVs, engraved/lithographed ephemera, etc. with images of Abraham Lincoln for book on same. Contact Fred Reed at P.O. Box 118162, Carrollton, TX 75051-8162 or freed3@airmail.net (245) WANTED. Canadian Chartered Bank Notes. Wendell Wolka, PO Box 1211, Greenwood, Indiana 46142 (246) WANTED. OBSOLETES AND NATIONALS from New London County CT banks (Colchester, Jewett City, Mystic, New London, Norwich, Pawcatuck, Stonington). Also 1732 notes by New London Society United for Trade and Commerce and FNB of Tahoka Nationals #8597. David Hinkle, 215 Parkway North, Waterford, CT 06385. (249) SHOW ME THE MONEY! Standard Catalog of Motion Picture Prop Money (2005) by Fred Reed, 800 pages, $82.50 postpaid & you get FREE Prop note. P.O.B. 118162, Carrollton, TX 75011-8162 (245) WANTED RADARS, REPEATERS, low and fancy serials 1928- 1963 also Large Size 8 digit radars and repeaters. Logan Talks, 14 Misty Cove Ln., Hilton Head Island, SC 29928 (243) PAPER MONEY • January/February 2006 • Whole No. 241 73 A Little Known Phase . of the Public Service ojf. by Leslie Deerderf INTRODUCTION T T.S. TREASURER FRANCIS E. SPINNER IS Li lionized by collectors of Postage and Fractional Currency. This is especially true of collectors of the present generation who grew up under the shadow of Matt Rothert's influential 1963 Whitman "Black Book," A Guide Book of United States Fractional Currency. Matt canonized sparkplug Spinner as "The Father of United States Postage and Fractional Currency." Dozens of excellent articles, exhibits, and speeches in recent years, many of them in this very publication, have gilded the government lilly, but an unfortunate aspect of Spinner's public service has been overlooked in the rush to such providential judgement. It seems Spinner was something of a lightning rod and whirling dervish politico, as an old circular I found while browsing around in the Library of Congress divulges. Not everyone in Spinner's time admired his char- acter. I'll share the broadside's unvarnished pleas here with Paper Money readers, so they can come to a sense of equilibrium on the (( general's" legacy in the future. Titled "An Earnest Appeal to the Moral and Religious Citizens of all Denominations, in the Counties of St. Lawrence and Herkimer," the publication pans Spinner. This publication is a slender four-page, self covered circular published on cheap, lousy paper by the "Corresponding Committee of the County of Herkimer," who identified themselves as George B. Judd, Fred. Lansing, Wm. I. Skinner, Wm. Bridenbecker, C.A. Burton, and C.A. Griffith. BACKGROUND Francis Elias Spinner was a man of talent and ambi- tion. He was born January 21, 1802, in Mohawk, Herkimer County, NY. Home schooled he entered banking and rose to president of the Mohawk Bank. Spinner was also commissioned Major General in the state militia, and served in a variety of bureaucratic 74 January/February 2006 • Whole No. 241 • PAPER MONEY posts. A Democrat, he was elected Congressman for the 17th district of the Empire State to the U.S. House of Representatives from 1855-1856. Jacknape turned Republican, he was reelected through 1861. It was during his 1856 reelection bid that the Corresponding Committee of Herkimer County issued its pamphlet opposing the turncoat's candidacy. This Democratic tirade proves that negative campaign- ing surely is not a new phenomenon. Their mud sling- ing did not work. On March 16, 1861, President Abraham Lincoln tapped the born-again Republican as Treasurer of the United States. As Treasurer, General Spinner served with four Registers of the Treasury, their names appearing on U.S. currency: Lucius E. Chittenden, S.B. Colby, Noah L. Jeffries, and John Allison. His long tenure ended June 30, 1875. Spinner died in Jacksonville, FL December 31, 1890. less, have thus been thrown temporarily from the great democratic track, who will unquestionably return again with the returning "sober, second thought" of the public mind. Upon the general issue, therefore, we, the under- signed, members of the Democratic Corresponding Committee of the Country of Herkimer, do not now propose to speak. Our object now, is simply to exhibit before the Electors of the 17th Congressional District the real character, in a religious sense, of a single candidate who is asking for their votes for a seat in Congress--Hon. Francis E. Spinner. And here, we desire to strip our- selves of all political prejudices and predilections, and to NEST APPEAL AN EARNEST APPEAL To the Moral and Religious Citizens of all Denominations, in the Counties of St. Lawrence and Herkimer. Fellow Citizens:--The politi- cal affairs of our country have reached an important crisis. We are upon the eve of one of the most eventful and decisive political struggles in which the people have been engaged for many years. The fountains of the great deep of the popular will have been broken up, and the elementary principles of government are well nigh reduced to a state of chaos by the reckless career and ambitious aims of designing demagogues and unprin- cipled political adventurers. In this general upheaval of party organi- zations and dismemberment of old associations and affinities, former antagonisms have become assimi- lated, and formed intimate alliances with each other. Many honest men find themselves now acting side by side with those whom they have all their lives heretofore bitterly opposed, and against their former warmest friends. In view of the strenuous and systematic efforts of the lead- ing men and presses opposed to the democracy of the country, this is not strange. Thousands, doubt- To the Moral and Religious Citizens of all Denominations, in the Counties of St. Law- ience and Ilerkimei. FELLOW CITIZENS ;—The political affairs of our country have reach- ed an important crisis. We are upon the eve of one of the Anast eventful and decisive political struggles in which the people have beau engaged for many years, The fountains of the great deep of the popular will have been broken up, and the elementary principles of government are well nigh reduced to a state of chaos by the reckleas career and ambitious aims of designing demagogues and unprincipled political adventurers, In this general upheaval of party orgarazatiosue and dismemberment of old associations and affinities, former antagon- isms have become assimilated, and formed intimate alliances with each other. Many honest men find themselves now acting side by aide with those whom they have all their lives heretofore bitterly oppoied, and against their former warmest friends. In view of the streemowt and systematic efforts of the leading men and presses °pleased to tha democracy of the country, this is not strange. Theusands, doubtleek have thus been, thrown temporarily froni : the great democratic track• who will unquestionably return again with the returning " second thought" of the public mind. Upon the general issue, therefore, we, the undersigned, members of the Democratic Corresponding Committee of the County of Herkinief, do not now propose to speak. Our, object now, is simply to exhibit before the Electors of the 17th Congressional District the real character, in a religious sense, of a sin- gle candidate who is asking for their votes for a seat in Congrese--Hou. FRAwors E: SPINNER, And here, we desire to strip ourselvee of all PAPER MONEY • January/February 2006 • Whole No. 241 75 deal only and solely with NAKED, STUBBORN FACTS. We cannot believe, that any considerable por- tion of the intelligent, right-minded, morally disposed, to say nothing of the religiously inclined citizens of this District, irrespective of party, can by any possibility be induced to give their votes to a known, openly avowed, and even BOASTFUL, DEIST AND INFIDEL. And we are prepared to show, by the most undubitable evi- dence--by oft-repeated declarations and sober assevera- tions from the lips of Gen. Spinner himself, that he not only holds in utter contempt the universally acknowledged tenets and princi- ples of the Christian religion, but openly and boldly mocks at the idea of the Divinity of Jesus Christ, and denounces him as the an IMPOSTOR, the ILLEGITI- MATE OFFSPRING OF A PROSTITUTED MOTHER. These are not vague charges, made merely for political effect; but they are solemn truths, suscep- tible of the clearest demonstration, by testimony of the most unim- peachable character. Men of the highest standing in our communi- ty, as citizens and as Christians, whose own ears have been astounded and shocked by Gen. Spinner's avowals of audacious infidelity--even bordering upon atheism itself--stand ready at any moment, under the sanctity of a solemn oath, to swear to the sever- al charges and specifications herein set forth. Let the following decla- rations from Francis E. Spinner's own mouth, be duly weighed by every voter in the District. And let it be remembered that it is utterly impossible for Mr. Spinner to evade or deny the fact of his hav- ing uttered them: Gen. Spinner, in the hearing of distinguished and highly respectable citizens of Herkimer County, has repeatedly been heard to declare, THAT JESUS CHRIST WAS THE SON OF JOSEPH, THE CARPENTER, AND IF NOT, HE WAS A BAS- TARD, and if he was the SON OF JOSEPH, THEN HE WAS AN IMPOSTOR, AND THAT THE NEW TESTAMENT WAS A FABLE. These awful sentiments of Gen. Spinner, are sus- ceptible of proof by the testimony of persons of unques- tionable veracity, and the Democratic Corresponding Committee of Herkimer County hereby agree to hold themselves responsible for the truth of the charge, and will substantiate it with ample proof if an attempt to deny it should be made by Gen. Spinner or his friends. 2 political prejudices and predilections, and to deal only and solely with NAKED, STUBBORN FACTS. We cannot believe, that any con- siderable portion of the intelligent, right-minded, morally disposed, to say nothing of the religiously inclined citizens of this District, irre- spective of party, can by any possibility be induced to give their votes be a known, openly avowed, and even BOASTFUL, DEIST AND INFIDEL. And we are prepared to show, by the most indubitable evidence—by oft-repeated declarations and sober asseverations from the lips of Gem Spinner himself, that he not only holds in utter con- tempt the universally acknowledged tenets and principles of the Chris- tian religion, but openly and boldly mocks at the idea of the Divinity of Jesus Christ, and denounces him as the an IMPOSTOR, the II_, LEGITIMATE OFFSPRING OF A PROSTITUTED MOTHER These are not vague charges, made merely for political effect ; but they are solemn truths, susceptible of the clearest demonstration, by testimony of the most unimpeachable character. Men of the highest standing in our community, as citizens and as Christians, whose own ears have been astounded and shocked by Gen. Spinner's avowals of audacious infidelity—even bordering upon atheism itself—stand ready at any moment, under the sanctity of a solemn oath, to swear to the several charges and specifications herein set forth. Let the following declarations from Francis E. Spinner's own mouth, be duly weighed by every voter in the District. And let it be remembered that it is utterly impossible for Mr. Spinner to evade or deny the fact of his having uttered them! Gen. Spinner, in the hearing of distinguished and highly respectable eititens of Herkimer County, has repeatedly been heard to declare. THAT JESUS CHRIST WAS THE SON OF JOSEPH, THE CARPENTER, AND IF NOT, HE WAS A BASTARD, and if he . was the SON OF JOSEPH, THEN HE WAS AN IMPOST- OR, AND THAT THE NEW TESTAMENT WAS A FABLE. The awful sentiments of Gen. Spinner, are susceptible of proof by the testimony of persons of unquestionable veracity, and the Dowtoottc, co7espoudias Commits .irkkfmr cpwo 76 January/February 2006 • Whole No. 241 • PAPER MONEY But again, the fact of Gen. Spinner's infidelity and disbelief in the Bible, together with the sneering, shameless epithets by which he characterizes our Lord and Saviour Jesus Christ, is of such common notoriety here in Herkimer county, that no proof whatever is nec- essary to establish the truth of his entertaining such abhorrent sentiments. Gen. Spinner, also, in a recent conversation with one of his own Republican friends, in reply to a sugges- tion of this friend that he ought to be more cautious in uttering his irreligious views, and tion, who is known to hold ideas and sentiments like these? Our Congressional halls have sometimes been stigmatized as a "bear garden," in consequence of the lawless and reckless character of the Representatives who have succeeded by shrewd political management in obtaining seats therein; but suppose the entire body should once be composed of men of the precise stamp of Gen. Spinner--men openly repudiating the verity of the Holy Scriptures--spurning, and disdainfully setting at naught the divinity of Jesus Christ, and contemning the that his opponents would use them against him greatly to his injury, said: "I don't care; if they choose to make that an issue, there are infidels enough in the District to elect me. They would vote for the Devil if he was right on the Kansas question!" As an evidence of the utter contempt in which he holds the religious institutions of the coun- try, and the Clergy generally, at the opening of the last session of Congress, when balloting for Chaplain of the House of Representatives, Gen. Spinner cast his vote for a notorious female infidel preacher, to fill that office-- Miss Antoinette Brown! And to his shame be it spoken, Gen. Spinner was the only man in all that body who could thus debase himself. Miss Brown therefore, had Gen. Spinner's vote recorded in her favor for the office of Chaplain upon the pages of the House Journal, and HIS VOTE ONLY! This is history. Electors, look at the record, and you will find it so. Gen. Spinner is an open viola- tor of the Sabbath. He has been frequently seen with his gun on his shoulder, hunting in the woods on Sunday! It is but a short time since he was thus noticed by the citizens of the town of Warren, in this county. Scores of responsible wit- nesses will testify to this fact. Now, in all candor, we appeal solemnly and directly, to every moral and religious citizen of this 17th Congressional District, to say, whether he is willing to cast his vote for any man, no matter what party puts him in nomina- 3 hereby agree to hold themselves responsible for the truth of the charge, and will substantiate it with ample proof if ain attempt. :to deny it should be made by Gen. Spinner or his friends. But again, the fact of Oen. Spinner's infidelity and disbelief in the Bible, together with the sneering, shameless epithets by which he characterizes our Lord and Saviour Jesus Christ, is of suckcommon notoriety here in Herkimer county, that no proof whatever isnecessa- ry to establish the truth of his entertaining such abhorrent sentiments: Gen. Spinner, also, in a recent conversation with one of his own Republican friends, in reply to a suggestion of this friend that he ought to be more cautious in uttering his irreligious views, and that his op- ponents would use them against him greatly to his injury, said : " I del' t core ; if they choose to make that an issue, there are infidels enough, in the District to elect me. They would vote for the Devil if he was right on the Kansas question !" As an evidence of the utter contempt in which he holds the reli- gious institutions of the country, and the Clergy generally, at the opening of the last session of Congress, when balloting for Chap- lain of the House of Representatives, Gen. Spinner cast his vote for a notorious female infidel preacher, to fill that office---Miss AN- TOINETTE BROWN I And to his shame he it spoken, Gen. Spinner was the only man in all that body who could 'thus debase himself. Miss Brown therefore, had Gen. Spinner's vote. recorded in her favor for the office of Chaplain upon the pages of the House Journal, and HIS VOTE ONLY ! This is history. Electors, look at the record, and you will find it so. Gen. Spinner is an open violator of the Sabbath. He has been fro- quently seen with his gun on his shoulder, hunting in the woods on Sunday .1 It is but a short time since he was thus noticed by the cit- izens of the town of Warren, in this county, Scores of responsible witnesses will testify to this fact. Now, in all candor, we appeal solemnly and directly, to every moral and religious citizen of this 17th Congressional District, to say, whe- ther hale willing to east his vote for adly man, no matter what party piits him in nomination, who is known to hold ideas and sentiments like these ? Our Congressional halls have sometimes been stigmatized aa a " bear garden," in consequence of the lawless and reckless char- acter of the Representatives who have succeeded by shrewd political management in obtaining seats therein ; but suppose the entire body should once be composed of men of the precise stamp of Gen. Spin- per—men openly repudiating the verity of the Holy. Scriptures— spurning, and disdainfully setting at naught the divinity of Jesus , Christ, and contemning the revered and fundamental principles of the Christian Religion. What a spectacle would our countrS, present be- fore the civilized nations of the earth !—A nation of infidels I Even France, in her sacrilegious attempt to abolish the Sabbath, Manifested no deeper hatred of the Chriitian religion, nor a more hearty con- tempt for the commandments of God, than would such a Spinnevr 4.agnpe,d, Cengreete in this boiltid ChristianitepUblic -. Electors i Will you aid in verifying Gen: Spinner's prediction that .4 there are infidels enough in this District to elect him ?" Will you entrust to the hands of such a man, the responsible oce of Member of Conguess ? Will you, can you, as accountable beings, as moral citizens, as Christians, as respecters of God, and as friends of your fellow men, live your suffrages to a mans who thus sets at defiance and breaks over all the bounds of moral and religious accountability, and. ice= piouslysets up his Own puny wisdom, not only above that of the wise men of all ages, but even above that of the Creator himself ? Can veu do it? GEORGE B. JUDD, FRED. LANSING, WM. L SKINNER, 1 WM. BRIDENBECKER, C. A. BURTON, C. A. GRIFFITH,,, CORRESPONDING COMMIT1RE Of THE COUNTY OF HERRIDIEL r Herkimer, Oct, 27, ism PAPER MONEY • January/February 2006 • Whole No. 241 77 revered and fundamental principles of the Christian Religion. What a spectacle would our country present before the civilized nations of the earth!--A nation of infidels! Even France, in her sacrilegious attempt to abolish the Sabbath, manifested no deeper hatred of the Christian religion, nor a more hearty contempt for the commandments of God, than would such a Spinner- stamped Congress in this boasted Christian Republic. Electors! Will you aid in verifying Gen. Spinner's prediction that "there are infidels enough in this District to elect him?" Will you entrust to the hands of such a man, the responsible office of Member of Congress? Will you, can you, as account- able beings, as moral citizens, as Christians, as respecters of God, and as friends of your fellow men, give your suffrages to a man who thus sets at defiance and breaks over all the bounds of moral and religious accountability, and impi- ously sets up his own puny wis- dom, not only above that of the wise men of all ages, but even above that of the Creator himself? Can you do it? * GEORGE B. JUDD, FRED. LANSING, WM. I. SKINNER, WM. BRIDENBECKER, C. A. BURTON, * C. A. GRIFFITH, Corresponding Committee of the County of the Herkimer. Herkimer, Oct. 27, 1856 CONCLUSION I take no stand on the veracity of the charges or even whether they are important in assaying Spinner's public service. In retro- spect we can understand the fer- vency of religious sentiment then as well as now, and its relative importance in informing public activities. Whereas widespread public sentiment of religious nature swept mid-America in the run up and events of the Civil War era -- notably leading to the introduction of the religious motto "In God We Trust" on our coinage through the decree of Treasury Secretary Salmon P. Chase alone -- one wonders how his hireling Spinner viewed that action -- if the charges voiced by his Herkimer neighbors were true. Be that as it may, I thought this circular from the Library of Congress was very interesting, provocative, and definitely worthy of presenting in our annual Civil War issue devoted to Fractional Currency. Politics is a dirty business and this incendiary message is NOT intended to call attention to God or Spinner's clay feet, but merely to tweak the interest and imaginations of fel- low collectors to research with open minds and hearts. v 4 ;77; i5T4TE (rw GEORGIA 7 C LONIAL. OMAN ENTIL, °NSF:DI:RATE. Rxta NC Y. t. S. Frartiml Currency. h CENTS SCOTT Si COM PA N January/February 2006 • Whole No. 241 • PAPER MONEY78 State of Georgia—a New Book STATE OF GEORGIA: TREASURY NOTES, TREASURY Certificates Bonds, by W. Mack Martin and Kenneth S. Latimer, is an in-depth catalog of Georgia's Civil War money. Southern States cur- rency has been included in some of Grover Criswell's books on Confederate paper money and in Arlie Slabaugh's similar works, but this, as far as I know, is the first in-depth treatment of the Civil War money from one Southern state. It sets a standard for future volumes on other states, and it's a worthy standard. The book is aimed more at the specialized collector than the historian in that it deals pri- mary with the artifacts—the notes—and not monetary policy, legislative intent, social histo- ry of how money was used, and similar matters, but it doesn't totally neglect the historical set- ting either. The detail about the notes themselves ought to satisfy the collector's desire for infor- mation. Besides the expected descriptions of the different issues, denominations, dates, and associated rarities are explanations about SPMC Librarian's Notes By Bob Schreiner, Librarian vignettes, the use of control stamps, and listings of serial number ranges, plate letters, and signers for the various issues. The signers are identified by name and a sample signature is provided to help the collector identify falsely filled in (and hence fraudulent) issues. Legislative acts leading to different issues are listed, each with a brief summary of provisions. There are sections on printers and engravers, counterfeits, notes used later for ads, and errors. The authors identify an even 100 different varieties of notes in 40 major types, using a type number and subtype capital letter and some- times second lower case letter, similar to Criswell's system. But accord- ing to the ML-Criswell numbering system conversion chart provided, the authors describe 43 varieties not in Criswell! That shows just how much work has been done on this one state since the last Criswell refer- ence that included Southern States' listings. The illustrations are all full color, a real plus. While not every variety is illustrated, there are no omissions that could cause identifica- tion confusion, a problem with some earlier cataloging. While the authors include rarity information, they wisely steer clear of values. The book seems to me to be well-balanced and thorough, with much new information. One thing that occurred to me is that I would like to know a little more about who the signers were. Were the "clerks" who signed most of the notes people hired just for this purpose, like the Confederate note signers, or did they serve in other capacities, perhaps having some past or present association with Georgia banks? How well did the notes serve the State? Was depreciation a serious concern? How much of the circulating currency was State notes, how much Confederate, and how much something else? Not easy questions, I know, and perhaps ones that cannot be accurately answered. It will be interesting to see if new varieties come to light as the book is adopted by collectors. I hope this book encourages other authors of Southern States money, and they achieve a success equal to this very fine model. Card covers, 95 pages. Self published, copyright 2005, $30. Probably available from all major paper money dealers. I obtained my copy from Amanda Sheheen, http://www.aoauctions.com/. SPMC's library catalog is on www.spmc.org. I welcome your thoughts at rcschreiner@mindspring.com or my address on page 2. Raising Our Historical Consciousness Paper Money prides itself that while being informative and entertaining we also present living history. Our collections are great repositories of historical documents and data, and our collective rec- ollections are deep depositories of historical information. Our his- torical consciousness ought to be the flip side of the bill to our acquisitiveness. I very seldom comment on items in an issue, believing that no hype is warranted and the articles will speak for themselves unlike many colleagues, but I'd like to mention the lead article in this issue because it raises a belief close to my heart: although most collectors know something about the history of their notes, many know very little about the history of their collecting niche. Authors Gengerke and Bolin do a nice job in outlining FC collecting's past. Many of you have been following my parallel series of essays on the history of CSA currency collecting in Bank Note Reporter over the last year. Hopefully many readers have found it informative, entertaining and raising his- torical consciousness. The Numismatic Literary Guild honored it as best column in a numismatic newspaper, which pleased me greatly. That topic was real- ly an outgrowth of tracing the story of collecting encased stamps for my book. While researching and writing the BNR series (which has not concluded yet) I often came across the growth of fractional currency collecting, too. Since these twin pursuits grew largely in tandem in the last half of the 19th century, I mentioned fractional currency collecting currents often as they intersected with my story about Confederate note collecting. I had planned to collect that data and resurrect it here, but this issue over-filled faster than a ketch in a squall, so I'll save that story for a later time, but I'd like to address one gerinane topic here now. As many readers know, I developed the story of John Walter Scott to some extensis in BNR, calling him among other things "the father of Fractional Currency collecting," and tracing the growth of this aspect of hobby directly to his seminal 1879 catalog and price lists of fractionals. Scott, I reported in BNR, generally gets short shrift from numismatists because he was such a towering figure worldwide in philatelics. I'll have more to say about Scott in future issues of BNR. Meanwhile, I'll share the cover of his rare 1879 cata- log of FC courtesy of SPMC member Eric Newman. I'll also include an interesting brief from a 1888 New York Sun newspaper account on fractionals below. nu juzl. .w6 ,y -n,, LCIlis. EL WV our W11.11 Luc tie. or Sills, yeller ,0111,1VIS 1..111 he bought for fifty cents. There is not a Confederate bill in existence, whatever its late Caine, worth more than $1. None of the State issues of the Confederacy reach 51 in value, although five and ten cent shinplasters of Alabama, North Carolina and South Carolina bring fifteen cents apiece among collectors. In the dark days of the war, even the most enthusiastic Unionist could hardly have anticipated that within a quarter of a century five cents of United States fractional currency would be worth from fifty cents to $1, or from ten to twenty times the lawful value. Such, however, is the fact as to the series of 1862, while certain specimens of all the issues are largely in demand at high prices. — New York Son. • ••■■"P- 11111.11111 ANA 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 You are invited to visit our web page www.kyzivatcurrency.com For the past 5 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 Springs, IL 60558 E-mail tkyzivat@kyzivatcurrency.com ,LIVZ 1/0,1,7 CFI rg-rces. PCDA, SPMC PAPER MONEY • January/February 2006 • Whole No. 241 79 United States Paper Money --special selections for discriminating collectors-- Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. (586) 979-3400 PO Box 2 • Roseville, MI 48066 E-mail: BartIncCor@aol.com 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 80 January/February 2006 • Whole No. 241 • PAPER MONEY "...I didn't worry about selling my mother's coin collection. Littleton's reputation is well deserved." R.L., LANCASTER, NH Inherited coins or paper money? Thinking of selling your own collection? For over half a century, thousands of folks just like you have counted on Littleton Coin Company to provide accurate appraisals and the industry's best pricing. We treat you and your collection with the respect you deserve. 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