Paper Money - Vol. XLVI, No. 1 - Whole No. 247 - January - February 2007

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VOL. XLVI, No. 1, WHOLE No. 247 JANUARY/FEBRUARY 2007 r • • r-/ I1 I I tJICI ;-1PEI Fri( r_ RG 7 0 7 5 7 r 7....... • • FFICIAL JOURNAL Y OF PAPER MONEY r f r D r r°-_ r r' rr ;21 1 , r r t I - () r PAPER MONEY Alexander Hamilton by J.F.F. Prud'homme Fr 148 Proof Fr 198 Proof ./.4 75571 AV tan V Mb\ /fraiei PREMIUM QUALITY BANKNOTES for IMMEDIATE SALE .". TIMM 1 I UNITED STATES OFAMEIM / 1/7/./.0.3 K2755717* A4J43184 T EWATE5if g 10111111101111200u,o,tt, fvoetat).- ,-, . . . . ..... , of.• ..... ••, -•• • • .......... • • Smythe offers a large selection of choice banknotes for immediate sale. If you are looking for Federal Paper Money, World Bank Notes, Confederate Currency, or Colonial and Obsolete Bank Notes, please be sure to contact us. You'll be glad that you did. To View Our HUGE Inventory of Certified and Uncertified Small Size, large Size, Nationals, Obsoletes, Fractional, and more, log on to: SMYTHEONLINE.COM For More Information, or Our Latest Buy Prices, please contact Scott Lindquist or Bruce Smart at: 800-622-1880 Steve Goldsmith SMYTH E ESTABLISHED 1880 T ',EggirNIAlito" ATI-4'14-014 *00000051 jitam 11,00 114 A 71 GEORGIA. 1776. No.240/ IRS CERTIFICATE intidea the Barer to OVE :TAN ts , i A111 1 111) 17011.1i, or the Value thereof, according to Realution of CONGRESS t1."1/1; MICOMOCCIMOrt".< NOPAVMOMIThenlE\ San,- Lindquist Blum Smarr (---)c.,,,, .1,0,Arit NAL I!-A',,I19 Jr E ir j.c...,.....P•r&re....4,..C.4,-,.. 7,•=2, ,,,,-..1C,P,„i,..-4.1116:1■,............4,J;.-........—.., ...... IT? . "2"41 • 11111011M.A.U.1.4 , '''''-V,' -"'-',''',', r - ..11tle , L,X , PO n, , a. ...7 . riti. 74 -: *01115 BILL of Ix ou N 0 S roilautattoo,14 TO is mitt.d by a 1L+ of :I. Col... of lair-Ma 0+% onikilin x... of tl. R, r. a s. ,,,,,,, _ D■t 0 , ..G. I 2s, a 5. Six POOM/5. . Algibpialmintwaymih, Stephen Goldsmith Past President R.M. Smythe & Co. 2 Rector Street, 12th Floor, New York, NY 10006-1844 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-312-6370 EMAIL: WEBSITE: We buy, sell, and auction the very best in Paper Money, Antique Stocks and Bonds, Autographs, Coins, and Anything Relating to Financial History TERMS AND CONDITIONS PAPER MONEY is published every other month begin- ning 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 part, without written permission, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for 06 pos./aid. Send changes of address, inquiries concerning non-delivery, and requests for additional copies of this issue to the Secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts will be published as soon as possible; however, publication in a specific issue can- not be guaranteed. Include an SASE for acknowledg- ment, if desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be typed (one side of paper only), double-spaced with at least 1-inch margins. The author's name, address and telephone number should appear on the first page. Authors should retain a copy for their records. Authors are encouraged to submit a copy on a MAC CD, identified with the name and ver- sion of software used. A double-spaced printout must accompany the CD. Authors may also transmit articles via e-mail to the Editor at the SPMC web site ( ). Original illustrations are preferred but do not send items of value requiring Certified, Insured or Registered Mail. Write or e-mail ahead for special instructions. Scans should be grayscale or color at 300 dpi. Jpegs are preferred. ADVERTISING •All advertising accepted on space available basis •Copy/correspondence should be sent to Editor •All advertising is payable in advance •Ads are accepted on a "Good Faith" basis •Terms are "Until Forbid" •Ads are Run of Press (ROP) unless accepted on premium contract basis •Limited premium space available, please inquire To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or additional production 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). Camera-ready copy, or electronic ads in pdf format, or in Quark Express on a MAC CD with fonts supplied are acceptable. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover S1500 $2600 $4900 Inside covers 500 1400 2500 Full page Color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but not guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications, and related accessories. The SPMC does not guarantee advertise- ments, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that por- tion of an ad in which a typographical error occurs upon prompt notification. Paper Money • January/February 2007 • Whole No. 247 1 Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLVI, No. 1 Whole No. 247 JAN/FEB 2007 ISSN 003 -1-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web FEATURES Museum of American Finance salutes Alexander Hamilton 3 By Kristin Aguilera Depictions of Alexander Hamilton on United States Federal Notes 10 By Benny Bolin Mr. Hamilton's Bank 17 By Sanford J. Mock Alexander Hamilton: the Man and the Myths 18 By Joanne B. Freeman Bank of Hamilton, Ohio, Gone But Not Forgotten 30 By Wendell Wolka Washington & Hamilton grace Hamilton Bank $1 34 By Leslie Deerderf Reader supplies data Note printer was Hamlin 35 By Roland Rivet Alexander Hamilton and the Birth of a Capital Market 36 By Robert E. Wright U.S. Treasury securities market: Lessons from Alexander Hamilton 41 By Alan Greenspan, past Chairman Federal Reserve Board Interest Bearing Notes: Hamilton notes popular with collectors 42 By Dave Bowers Alexander Hamilton on U.S. Government Bonds 44 By Gene Hessler On This Date in Paper Money History 47, 49 By Fred Reed The "Laziest Deuce" of Hamilton Bank 50 By Leslie Deerderf Hamilton's Great Invention 52 By Howard Brod Concurrent Resolution recognizing and honoring Alexander Hamilton 57 By Congressman William Pascrell (D-NJ) Web test press named for first Treasury Secretary 60 By Michele Orzano The Story of Alexander Hamilton's Portrait on the new $10 note 65 By Barbara Bither New sawbuck backs portray Hamilton clearly 73 By Fred Reed Hamilton's Great Experiment: Society for Establishing Useful Manufactures 74 Russell Roberts SOCIETY NEWS Information & Officers 2 President's Column 58 By Benny Bolin Nominations Open for SPMC Board 59 2 January/February • Whole No. 247 • Paper Money Society of Paper Money Collectors SOCI En . The Society of Paper Money PAPER N1ONEY OF Collectors (SPMC) was organized in 1961 and incorporated in 1964 as aI) COLLECTORS non-profit organization under the laws of the District of Columbia. It is affili- ated with the American Numismatic Association. The annual SPMC meeting is held in June at the Memphis IPMS (International Paper Money Show). Up-to-date information about the SPMC and its activities can be found on its Internet web site . MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character, Members of the ANA or other recognized numismatic societies are eligible for membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed by the letter "j," which will be removed upon notification to the Secretary that the member has reached 18 years of age. Junior members are not eligi- ble to hold office or vote. DUES—Annual dues are $30. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world add $10. Life membership — payable in installments within one year is $600, $700 for Canada and Mexico, and $800 elsewhere. The Society has dispensed with issuing annual membership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join as available. Members who join after October 1 will have their dues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in a fall issue of Paper Money. Checks should be sent to the Society Secretary. 411.'Z OFFICERS ELECTED OFFICERS: PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 VICE-PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 SECRETARY Bob Schreiner, POB 2331, Chapel Hill, NC 27515 TREASURER Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St.. Brooklyn, NY 11201 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 Robert J. Kravitz, P.O. Box 6099, Chesterfield, MO 63006 Tom Minerley, 25 Holland Ave #001, Albany, NY 12209-1735 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 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 APPOINTEES: PUBLISHER-EDITOR Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 ADVERTISING MANAGER Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 LEGAL COUNSEL Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN 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 SELLIN G CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Au ction Representation 60-Page Catalog for $5.00 Refundable with Order HUGH SHULL ANA LM P.O. Box 2522, Lexingon, SC 29071 SPMC LM-6 SCNA PH: (803) 996-3660 FAX: (803) 996-4885 BRNA PCDA Charter MBR. FUN Paper Money • January/February 2007 • Whole No. 247 3 Hist Relocated, Renamed Museum of American Finance previews new digs with salute to Alexander Hamilton January 11, 2007 By Kristin Aguilera Visitors to the Museum of American Finance's new home at 48 Wall Street will ascend this magnificent staircase to the building's Grand Mezzanine (Alan Schindler, Photographer) January/February • Whole No. 247 • Paper Money4 WHEN THE BANK OF NEWYork opened its first building at 48 Wall Street in 1797, New York's first bank instantly attracted attention. And although the building that cur- rently stands at 48 Wall is not the original, but the third Bank of New York headquarters on the site, it will once again welcome an excited public in 2007 as the new home of the Museum of American Finance. The Museum, an affiliate of the Smithsonian Institution, plans to open in its new location in spring 2007 but will preview the space at a symposium, cocktail reception and silent auction on January 11. The event will be a cele- bration of the life of Alexander Hamilton, the first U.S. Secretary of the Treasury and, appropriately, a founder of the Bank of New York. This event will also serve as the unveil- ing of the first of the Museum's per- manent exhibits, which will be a feder- alist-style room paying tribute to both Hamilton and the Walton House, where the Bank of New York first con- ducted business in 1784. Left: Watercolor rendering of Museum entrance at 48 Wall Street. Below: Design rendering of the Museum's Grand Mezzanine, housing permanent exhibits on Capital Markets, Money, Banking, Entrepreneurship, and Alexander Hamilton. (Both, credit: C&G Partners) John Herzog, founder and chair of the Museum, said the 48 Wall Street address is ideal not only for its Downtown loca- tion, but for its architecture and history. "In planning the Museum's move to larger quarters, we felt it was important to choose a site with historic significance," Herzog said. "And perhaps there is no more fittinc , a home for the Museum of American Finance than the former head- quarters of New York's first bank, which was founded by Alexander Hamilton, creator of -- 1 (dr- Paper Money • January/February 2007 • Whole No. 247 5 Above: The "Alexander Hamilton Room" exhibit will pay trib- ute to our first Secretary of the Treasury, and to the living room of the Walton House, where the Bank of New York first conducted business. Right: Close-up rendering of the capital markets exhibition. (Both, credit: C&G Partners) our nation's financial system." 48 Wall Street is located in the heart of New York's financial district on the corner of Wall and William Streets, just one block east of the New York Stock Exchange. The Museum will occupy 30,000 sq. ft. of space on three floors of the 36-story landmark building. The main exhibition space will be located in the build- ing's former banking hall on the Grand Mezzanine level, opening directly onto Wall Street. This space features 30-foot ceilings, magnificent windows, arched wall panels with murals depicting various aspects of commerce and banking, and an elaborate marble stair- case and floors. The Museum's other two floors will feature a 250-seat auditorium, a state-of-the-art educa- tional facility, library, archives, and offices. The large exhibition space will allow for the display 6 January/February • Whole No. 247 • Paper Money of both permanent and temporary exhibitions, and progress on exhibit designs and content is well underway. This article shows watercolor render- ings of some of the Museum's planned exhibitions, designed by the prestigious New York-based design firm C&G Partners. The permanent galleries will allow people of all ages to learn about the capital markets, the exchanges in New York and around the world, money, banking, entrepreneurship Above: Close-up of cases in the money exhibition. Below: The Wall Street side of the Museum will be an interactive exhibit on entrepreneurship. Right: Close-up rendering of one of the stations in the entrepreneurship exhibit. (All, credit: C&G Partners) and the brilliance of Alexander Hamilton in creat- ing America's economic sys- tem. The exhibitions will contain gems from the Museum's collection, as well as some of the latest techno- logical gadgets in the financial field. Historic photographs, ..-----'-. ,---------..--,„ i ' Paper Money • January/February 2007 • Whole No. 247 7 colorful graphics and engaging interactives will lead visitors to learn firsthand the bene- fits of investing. Temporary exhibitions will highlight both historic and contemporary subjects. The announcement of the Museum's new home was made in tandem with that of a recent name change from the Museum of American Financial History to the Museum of American Finance. Executive Director Lee Kjelleren said the Board felt the new name better reflects the Museum's growing commitment to its role as a guardian of America's collective financial memory, and as an interpreter and explicator of current finan- cial issues. "Modifying our name and moving into a magnificent new facility are momentous milestones in our quest to build the Museum into a national institution of distinction," Kjelleren said. "Our new home on Wall Street will enable us to expand our reach sig- Above right: The largest of the Museum's perma- nent exhibits will be about the capital markets, and will line the William Street side of the exhibi- tion space. Right: Upon entering the Museum's exhibition space, visitors will be greeted by inter- active towers on the major exchanges. Below right: Rendering of the Museum Shop. (All, credit: C&G Partners nificantly, giving New Yorkers, as well as national and international visitors, the tools they need to lead more financially secure lives." The Museum's move from its small quar- ters in the Standard Oil building at 26 Broadway was prompted by rising demand for its programs and services in recent years. As financial literacy becomes an increasingly important component of middle and high school curricula, the Museum has renewed its emphasis on financial education — from teaching responsible saving and investment habits and encouraging entrepreneurship to explaining how the capital markets work. The financial education center, located on the building's concourse level, will be a collaborative effort with the National Council on Economic Education (NCEE) and will combine classroom space with inter- active kiosks and displays. Various symposia and televised issue debates are also planned. v 8 January/February • Whole No. 247 • Paper Money MIN INN 1=111 I= N Like what you see? Would you like to see more? PAPER MONEY is published six times per year -- don't miss out The Society of Paper Money Collectors is 46 years young and nearly 2,000 members strong. Members' collecting interests cover the gamut of currency, engraving, and banking from federal bills to Civil War scrip, from worldwide bank notes to fractional curren- cy, from Confederate issues to counterfeits, from stocks to bonds, soup to nuts, and checks to chits. Only $30/yr U.S. addresses $35/yr Canada & Mexico $40/yr Worldwide Enjoy BIG VALUE with six BIG issues for only eight cents per day when you join SPMC for 2007 MN INN =III YES, I want to join SPMC and receive a full year's subscription to the big 80-page, award-winning bimonthly magazine PAPER MONEY. also am eligible to borrow from the Society's library, attend regional and national mem- bership meetings and participate in other benefits available to members. Make check payable to SPMC and mail to Membership Director Frank Clark, POB 117060, Carrollton, Texas 75011-7060. Please mail this form or a facsimile with payment today New members' names are published. If you do not want your address published check here r Jq Paper Money • January/February 2007 • Whole No. 247 9 Please join the MUSEUM of AMERICAN FINANCE to CELEBRATE the BIRTHDAY of ALEXANDER HAMILTON Thursday, January 1 1 th, 2007 48 Wall Street, New York Please join us for this special event to honor Alexander Hamilton. The program will include a symposium featuring Hamilton scholars and authors, a cocktail reception and silent auction, the Museum's new Alexander Hamilton Room, period music, costumed actors, and behind-the-scenes tours of the Museum's new home. Tickets: $100 Auditor, includes regular Museum membership $150 Assistant Secretary of the Treasury, includes Smithsonian level membership $500 Secretary of the Treasury, includes two tickets and Hamilton level membership $1,000 Corporate Sponsor, includes 10 tickets to event Hamilton Symposium 5:00 — 6:15 pm Cocktail Reception 6:00 — 8:00 pm Silent Auction 4:00 — 8:00 pm For information or to purchase tickets, please call Kristin Aguilera at 212-908-4695 or e-mail MIJSEIIM4AMERICAN FINANCE 48 Wall Street, New York, NY 1000541111-2 In association with the Smithsonian Institution 10 January/February • Whole No. 247 • Paper Money De , lc -dons of Alexan H a mitt on United Sta By. Bolin Above: Alexander Hamilton by John Trumbull LEXANDER HAMILTON WAS BORN ON January 11, 1757 (some authorities believe it was 1755), and died on July 12, 1804. Besides being the founder of the Federalist party, he was also a military officer, a lawyer and a delegate to the U.S. Constitutional Convention in 1787. He was the primary author of the Federalist Papers and a very influential politician. He was the first and most influential Secretary of the Treasury and responsible for the formation of the nation's banking system. Some historians feel that Hamilton was the founding father who advocated the principles of a strong cen- tralized federal government and elastic interpretation of the Constitution most effectively. He was a supporter of a strong national defense, solid national finances based on a national debt that linked the national government to the wealthy men across the country, and a strong banking system. 4111•1•••'—'7_ ,V7 --- ger/cm r tl ..,,41357208 91,ft itetRIASAt Aocofr.w.41.4(.*.arcooluta 1.ortem.111,4r.irvE xurE CTIVITY IN THE PAPER MONEY MARKET is stron- ger than ever! We have been cherrypicking certified notes for their eye appeal, brightness of colors, excellent margins, and overall appearance, with an emphasis on popular designs and types, many of which are featured in 100 Greatest American Currency Notes by Q. David Bowers and David Sundman. WE ARE CONSTANTLY ADDING TO INVENTORY but most items are one-of-a-kind in our stock; therefore we suggest you visit our website and call immediately to make a purchase. RECEIVE OUR PAPER MONEY MAGAZINE, THE Paper Money Review. This full color publication highlights paper money in our inventory, as well as articles and features about this fascinating collecting specialty. To receive your copy send us an invoice of a previous paper money purchase. Or, if you place an order for any paper money totaling $1,000 or more you will receive the Paper Money Review AND a per- sonally autographed copy of 100 Greatest American Currency Notes with our compliments. CHECK OUT OUR OFFERING TODAY. WANT LISTS ACCEPTED! (SYyectomml .lerynt (/4 CAyek)zieJ, (114ine4eicavi a ami Vok oliOamy We are pleased to announce the ongoing sales of the greatest hoard of bank-note printing plates, dies, and other material ever assembled. The American Bank Note Company (ABNCo) was formed in 1858 by combining seven of the most important bank note engraving firms then in business. Hundreds of printing plates and other artifacts were brought into the merger, and survive today. To these are added many other items made by ABNCo from 1858 onward, a museum quality selection. In sales in 2007 Stack's will continue to bring to market hundreds of bank note printing plates, vignette dies, cylinder dies, and other artifacts, each unique. These items are so rare that most numismatic museums and advanced collectors do not have even a single vignette die, cylinder die, or plate! If you would like to have more information, contact us by mail, phone, fax, or on our website. This is an absolutely unique opportunity! K2586273 O STACKS.COM je;ttcy,otaA, ett inoizryizeedy/./ Paper Money • January/February 2007 • Whole No. 247 11 U.S. COINS • ANCIENT AND WORLD COINS • MEDALS • PAPER MONEY Stack's New York City: 123 West 57th Street • New York, NY 10019-2280 • Toll free: 800/566/2580 • Telephone 212/582-2580 • Fax 212/245-5018 Stack's Wolfeboro, NH: P.O. Box 1804 • Wolfeboro, NH 03894 • Toll-free 866/811-1804 • 603/569-0823 • Fax 603/569-3875 • www. ""- 'ztk` 1 ) -N1C sj 7 . 4-7 , 177/11AmmrstorixizuzajXMI17,7-^ J ..itairjaMija:arrrMrririqr) 01,4. a lfir, ? t 2. 5 t 71/7,.//, /7 /4; />7•,///.; 4;.././/.1%/fh.s - = xi xxamarawrA. — jrzuhzus„Aik 4 4.7r4"1141311 jriallial as A C4I 12 January/February • Whole No. 247 • Paper Money Hamilton on United States Federal Notes Alexander Hamilton's portrait has been on no fewer than 14 different Unites States federal note types comprising Friedberg numbers and sub-vari- eties. He also graces many other fiscal documents, stamps, and obsolete notes. Fr 1 $5 Demand Note of 1861 Fr 1 -5: These demand notes were the first circulating U.S. currency of the Civil War. Issued in denominations of $5, $10 and $20, these notes are the only U.S. notes that do not have either the Treasury seal or the names of the Treasurer or Register. The engraver of the Hamilton portrait is unknown. $5 Legal Tender Note Series of 1862 Fr 61 -64: These greenbacks were a true fiat currency of the Civil War. Issued in denominations of $1 to $1000, United States Notes were issued for more than a century. Design is similar to that of the Demand Note above. Fr 41 $2 Legal Tender Note Series of 1862 Fr 41/41a: Five issues of legal tender notes are also referred to as United States Notes. The first series $2 note had a portrait of Hamilton on face. The portrait was engraved by Luigi Delnoce (left) and Joseph Proper Ourdan. Delnoce was born in Italy in 1822 and died in Melrose, NY in 1890. He began engraving in 1848 and furthered his education by studying with John Casilear from 1851-1855. He engraved for the Columbian Banknote Co. and the National Banknote Co in the 1860s. From 1870 until near the time of his death, he worked as an independent engraver for many firms including the BEP. Ourdan was born in New York City on February 16, 1828, and died in Washington DC on May 10, 1881. He learned engraving as an apprentice of $20 Legal Tender Notes Fr 127 - 147: Twenty-one different designs and seventeen different signa- ture combinations make up this issue. The portrait of Hamilton on these notes was engraved by Charles Kennedy Burt (right). Burt was born in Edinburgh, Scotland, on November 8, 1823, and died in Brooklyn, NY on March 25, 1892. His engraving career started at age 12 in Scotland. In 1842 he came to New York and spent four years engraving Da Vinci's Last Supper. Burt worked for many banknote companies including Rawdon, Wright and Edson, Homer Lee and the American Bank Note Co. Although he was never employed by the BEP, he engraved for them independently for 20 years. Fr 128 Fr 150 Paper Money • January/February 2007 • Whole No. 247 13 W. L. Ormsby and then worked for the Continental Banknote Co. and the American Banknote Co. He was one of the first engravers to join the BEP on October 20, 1862, where he eventually became chief of the engraving division. He finished his career with the National Banknote Co. which he joined in 1867. $50 Legal Tender Notes Fr 148 - 150: Four different Friedberg numbers (including #150a) make up this issue. All notes were signed by Chittenden and Spinner and had red seals. The portrait of Hamilton on these notes is the same as on the $2 Legal Tender Notes (at left) and was engraved by Joseph Prosper Ourdan and Luigi Delnoce. LAY 4111ER. intormirD,oitillout, Wit 0.01-fielf ////_/5/////.11///// / „4:,-,4-1,->;: .! • •• ow/ /41 ./,;(,"? 7....;%"ft; /;';',V4 (7.V;(./ KO/ • • ,,,,(24"),.// le:4.4;/ , 444/ 44 •, - • • . • • /21, ( , • / .4 • The certificate of Hamilton's official commission as Secretary of the Treasury, signed by George Washington September 11, 1789. (library of Congress) 24 January/February • Whole No. 247 • Paper Money but since you have thought it necessary to tell me, so we part," and he left. Washington soon sent an offer of reconciliation to Hamilton, but Hamilton took their minor disagreement as his opportunity to leave what had become a hated position. Still seething and resent- ful, Hamilton sent back a stiff, cold reply, stating that his resolution was "not to be revoked," and that an interview with Washington would be "mutually disagree- able." After waiting for a replacement for himself at headquarters, he left. It is clear from this story that Hamilton certainly did not leave at Washington's request. He was actually all that Washington could want in an aide: he was quick; he wrote well; he spoke French fluently; he could entertain visiting dignitaries; and he was capable of taking in the whole of the American campaign and offering sound advice to his General. What drove Hamilton to leave headquarters was his craving for glory on the battlefield. When Hamilton later heard of this rumor of his being cast out of Washington's family, he wrote to Washington, asking him to correct this falsehood in writing, and confessing "that this . . . hurt my feelings." Washington replied, with admirable restraint, that "your quitting was altogether the effect of your own choice." Throughout his life, Hamilton was constantly being accused of being completely self-serving, as the previous myth seems to imply. He was certainly highly ambitious and always concerned with himself, his importance and his reputation. But he was also completely committed to the American nation, and in his eyes his actions were, above all, for the public good. Washington, when confronted by the accusation that Hamilton was dangerously ambitious, replied, "By some, he is considered as an ambitious man, and there a dangerous one. That he is ambitious I shall readily grant, but it is of that laud- able kind which prompts a man to excel in whatever he takes in hand." Indeed, it was blind ambition in Aaron Burr that led Hamilton to fear and oppose him. Hamilton recognized in Burr the same driving ambitions that he recognized in himself. But to Hamilton, Burr only did what served Burr best. As Hamilton put it, Burr "is for or against nothing, but as it suits his interest or ambition. Determined to climb to the highest honors of the State, and as much higher as circumstances may permit, he cares nothing about the means of effecting his pur- pose... I feel it a religious duty to oppose his career." MYTH NUMBER THREE is perhaps the most accepted myth concerning Alexander Hamilton: that he was a monarchist, anxious to establish the equivalent of a king in America. During the Federal Convention, Hamilton was out- numbered in the New York delegation by two decidedly anti- national delegates. Rendered essentially useless by their opposing votes, Hamilton remained uncharacteristically silent for much of the convention. But on June 18, with the Convention seemingly hesitating to create a strong national government, Hamilton rose and delivered a marathon six-hour speech detailing his thoughts on a new government for the American nation. He openly professed his admiration for the British sys- tem of government: its balance; its strength; and its structure. He recognized, however, that the American people would only accept a republican model of government, a government deriving its authority from the people, and in which no one would hold political office as a matter of right or ownership. His pro-British statements were risky after America's recent war against what was perceived as a tyrannical king. He made matters worse by advocating the creation of an executive who served for life; to him, this would promote stability and would prevent the executive from having to continually pander to the public to win re-election. In later years, when Hamilton became a more contro- versial political figure and a recognized advocate of a strong national government and a strong executive, political oppo- nents, and even friends, used this evidence, combined with Hamilton's continued skepticism about the durability of the American republic, to accuse him of being a monarchist. Hamilton fought this perception throughout his life. To him, if the executive was elected, could be removed by the people's representatives, and could not pass his office on to his descendants, he was not a monarch. And although he continu- ally fought to strengthen the powers of the government, Hamilton never felt that he had strayed from the principles of a republic. To his friends, he admitted having some doubts. He once wrote, "I said that I was affectionately attached to the republican theory. This is the real language of my heart, which I open to you in the sincerity of friendship; and I add that I have strong hopes of the success of that theory, but in candor, I ought also to add that I am far from being without doubts. I consider its success as yet a problem. It is yet to be juryircel rke sf r, gat's/ Res,?'/iLrt ter - azur- - L,' T eV: LI F.t:;01,F rixhi piece r frrcp.rry era niy Ober. €1;- e 751 j"; raran..i rn their. thrnk11 Phe r.; the ern, ..._::7 make and an .1,(...:rar Jr..; rep rray ,-4/ebarged ; rnrai (. k?;er 179n. Mak rf Sm,..; ..;:ar•airoz have re. r:y 5f..7,2d Sipc%. ifr 1749, in ti:Z.1rd A reiiiWirZ t; Ctf.h and PO' 1, :rrac,-; re?--,:i.:erf ..g., awns of the P1-91rierri einm - rU. cafe r..12!, - 2V..r1ir rerrzsrf 7. .vajrtry Thd tf, :• z.r.r 11,:embc r 1791, be ;;:arir. ihrrricularlf l, _ti aad fr,nnage. - z Alexander Hamilton's circular to Collectors of Customs, Jan. 2, 1792, regarding receipt of "Cash Notes" and "Post Notes" of the Bank of North America and the Bank of the United States. (Library of Congress) Paper Money • January/February 2007 • Whole No. 247 25 determined by experience whether it be consistent with the stability and order in government which are essential to public strength and private security and happi- ness." Doubts he may have had, but he never sought to do anything but preserve the American republic, no matter what he saw as its flaws. MYTH NUMBER FOUR involves two statements that Hamilton supposedly made. The first one occurred during the Federal Convention, after Benjamin Franklin suggested that each session begin with a prayer, a suggestion on Franklin's part probably meant to cool some rather heated tempers and put the Convention's proceedings in perspective. Supposedly, Hamilton rose at this point, and opposed Franklin's suggestion, con- cluding that "he did not see the necessity of calling in foreign aid." James Madison, although Hamilton's political opponent, later denied that this ever occurred and he was the Convention's unofficial secretary, noting down all the proceedings in his meticulous notes. Hamilton, however, was certainly capable of making scandalous and ill- thought-out jokes. In a letter I recently discovered in the Hamilton papers, Hamilton is writing to Gouverneur Morris, a friend who had a renowned wit, which often strayed towards the scan- dalous. Hamilton, when writing to Morris, always assumed a witty, slightly scandalous tone. In this particular letter, Hamilton states that he is writing on a Sunday, a day when he should be in church. He then obviously proceeds to make some sort of joking comment about God, a comment which, unfortunately, anxious Hamilton descendants ripped off the page to protect his reputation for posterity. Hamilton's other supposed comment is better known. At one point in his career, in response to someone's comment in favor of the "people," Hamilton supposedly responded, "the people? Your people, sir, are a great beast!" This comment has been cited as proof of Hamilton's desire to remove the government from the reach of the people and as proof of his interest in nothing but himself and the American elite. Hamilton certainly considered himself to be of the upper class, and his aristocratic tastes were apparent in his clothing, his manner, and the company he kept. Unlike Jefferson, he was never successful at communicating with the "common man." But he always felt that his actions were in the best interest of the nation at large. Although he was openly concerned with the interests of the wealthy and powerful, it was because he felt it necessary to attract their money and power to support of the weak, new American government. Even his constant struggle to strengthen the national government, an effort that Jefferson considered as aimed at removing the government from the reach of the people, was rli r ..6 eh'r rizine../2/, 1■1,:!(..7::( '2, 17,42. intended by Hamilton to promote a government strong enough to protect the people's liberties, and prevent the majority from crushing the rights of the minority. Hamilton's comment about the people being a "great beast" was actually first popularized by Henry Adams, a descendant of John Adams. For generations, the Adamses had persisted in a family hatred of Hamilton. Henry Adams was predisposed to believe the story, but had very little support for it. He got it from someone, who got it from someone, who got it from someone. MYTH NUMBER FIVE is the belief that Hamilton was thoroughly corrupt, financially benefitting from his posi- tion as Treasury Secretary and leaking Treasury secrets to his wealthy speculating friends. As far as Hamilton's own finances were concerned, not only did he never financially gain from his position, but he actually resigned because his low salary as Treasury Secretary had almost bankrupted him, and he needed time to attend to his family's finances earning some money while practicing law. As Hamilton put it, "Our finances are in a most flourish condition. Having contributed to place those of the Nation Alexander Hamilton addressing three judges. (Library of Congress) 26 January/February • Whole No. 247 • Paper Money on a good footing, I go to take a little care of my own; which need my care not a little." Hamilton often said far too much, and he might, on occasion, have revealed too much while conversing with friends. And there were, unfortunately, occasions when his staff leaked information. But I have not seen any evidence that Hamilton consciously gave his supporters illegal advice or funding. Even Thomas Jefferson stated that Hamilton was not a corrupt individual. Hamilton was actually almost careless with his own finances. His wife, Elizabeth, managed their household bud- get, and as one friend said, deserved "as much merit as our treasurer as you have as treasurer of the wealth of the United States." Hamilton readily admitted to Elizabeth before their marriage that "an indifference to property enters into my character too much," and asked her if she were prepared to "relish the pleasure of being a poor man's wife." A few days after he retired as Treasury Secretary, he even wrote to his bank admitting that he had lost his bank book, and didn't know how much money he had in his account. However, Hamilton didn't help his own case very much. In 1792 Hamilton's ill-timed sense of humor led to an accusa- tion that he was bribing a Congressman. A particularly can- tankerous Representative named John Francis Mercer was owed money by the government for a horse which had been shot out from under him during the war. Hamilton and Mercer did not like each other at all, and most probably Hamilton was somewhat slower in filing Mercer's claim than he might have been with someone else. Hamilton, as I mentioned before, was very conscious of his own importance, and could not resist putting others in their place. One day, while on the way to dinner with a group of friends, Hamilton was confronted by Mercer on the street. Mercer accused Hamilton of not handling his request because of per- sonal dislike. In a later account of the incident, Hamilton reflected that at the moment, he had two choices before him. He could either be greatly offended -- the more charac- teristic response -- or he could make a joke and pass on. Hamilton chose the latter course. In response to Mercer's comment, Hamilton said, "There is one expedient which will shorten the discussion very much. If you will vote for the assumption tomorrow, or if you will change the vote you gave upon the assumption today, we'll make the thing very easy, we'll contrive to get your account settled." In Hamilton's later account of this incident, he remarked that everyone laughed at this point, even Mercer himself. However, Mercer began spreading stories about Hamilton's attempt to bribe him, and eventually Washington found out, and demanded an explanation from Hamilton, who was forced to admit that he had made a joke, admittedly a poor one. Mercer and Hamilton almost fought a duel over this incident. MYTH NUMBER SIX is the belief that Hamilton was Washington's mentor, secretly running the government, telling Washington what to do, and using Washington's repu- tation to wipe away stains left in his wake. There is no doubt that Hamilton was a prime force in the Washington adminis- tration. NATashington trusted Hamilton and gave him far more free rein than he did to Jefferson or other cabinet members. But part of the reason for Washington's lesser involve- ment in Hamilton's affairs is that Washington knew far less of finances than he did of foreign affairs, Jefferson's realm. And although Hamilton continually advised Washington on eco- nomic matters and much more, Washington took his time making decisions, weighed all sides of an issue, and came to his own conclusions. One of Washington's greatest skills was his ability to find and use men of great talent to counsel him. When one looks carefully at Washington's relations with his Treasury Secretary, one finds that, although Washington followed Hamilton's counsel much of the time, Hamilton most certainly did not have free rein. At one point, Hamilton was accused of misapplying Treasury funds. His defense, when confronted by a congressional investigation, was that Washington had verbally agreed to Hamilton's actions. Washington professed no memory of an oral autho- rization, although he assured Hamilton that "I do not doubt, that it was substantially as you have stated it." Hamilton was quite wounded by what he saw as Washington's lack of support. But even more worrisome to Hamilton was the fact that Washington showed a marked increase in attention he gave to Hamilton's financial dealings after this point. Shortly thereafter, Washington asked Hamilton if he had followed through on a recent request, and Hamilton who had been making plans quite different from Washington's original instructions, replied, "I had entirely forgotten the existence of your ... instructions." Hamilton continued to resist Washington's instructions, and Washington was forced to insist that Hamilton comply. So, Washington was not a sleeping President, and Hamilton Paper Money • January/February 2007 • Whole No. 247 27 H.R. HARMER, INC. IS PROUD TO PRESENT THE HISTORIC "AMERICAN BANK NOTE ARCHIVES AUCTION" „Rod and .(Ao fid Cer-tate,v ; .(AcTRAR(Yee,t; 7Jlnettes atm/ 'Pity/tette 4e)(4s6 f-Ayiekztion-fle-zre.y .(1/, lecrepti,!Av ./it-tic/9 eMemera, arm/--,7kcal(2,c0c.- JANUARY 31, FEBRUARY 1-2, 2007 WEST CALDWELL, NEW JERSEY A majority of the material in this sale will be offered for the first time to the collecting public. All of the items being offered are fresh from the Archive of the American Banknote Company and up until a little over a year ago, had been known to exist to only a handful of people. The scope and quality of the material in this archive is staggering and offers many opportunities for the general collector, specialist and dealer to acquire exhibition quality items that are unique or extremely rare. Hundreds of proof vignettes used on obsolete banknotes, foreign banknotes and stock certificates Four different Santa and 10 different Whaling proof vignettes Over 50 Production Department Sample Books from 00 ABNCo. and numerous other security printers, all unique Over 3000 specimens, proofs and models of stock and bond Certificates, most new to the hobby Over 200 specimens and unique proofs and models of foreign banknotes including over 40 lots of Philippine proofs, specimens and models and Proofs of Panama P-22 to P-25 Unique production files for stocks, foreign banknotes and Interesting security printed documents Dynamic A.E.Foringer portrait of 3 allegorical figures plus other original artwork 0 Unique Enron stock certificate models and proofs including the unique production files Foreign stocks and bonds from dozens of countries including early European Union predecessor bonds. U.S. military sanctioned "Turnkey Commissary Receipts" that are related to MPC Hundreds of other security printing ephemera items never offered before to the public and up until the liquidation of the archive, never known to exist CALL OR EMAIL US TO ORDER A CATALOG $30.00 H.R. HARMER. INC. 775 Passaic Avenue, West Caldwell, NJ 07006 Phone: +1.973.882.0887 Facsimile: +1.973.882.3499 Email: • An engraving depicting the duel between Aaron Burr and Alexander Hamilton. (Library of Congress) 28 January/February • Whole No. 247 • Paper Money was not the secret President, at least not under George Washington. MYTH NUMBER SEVEN involves women and scandal. Hamilton was always something of a ladies' man, particularly noted for his gallantry. Abigail Adams, in keeping with her New England Puritan back- ground, was scandalized by Hamilton's behavior at par- ties; she described him as entering parties and immedi- ately scanning the room for the most attractive women to flirt with. A scandalous rumor states that Hamilton had an affair with Angelica Church, his wife's sister. Elizabeth Schuyler, Hamilton's wife, was a stable, down-to-earth, unpretentious woman, the perfect match for the high- strung, unpredictable, emo- tional Hamilton. Elizabeth's sister Angelica was a noted beauty, flirtatious, highly intelligent, and a prominent society figure. The surviving corre- spondence between Hamilton and Angelica shows that they flirted quite a bit, even to the point that Angelica was prompt- ed to tell Hamilton, in a very delicate way, to cool off. But no evidence exists to suggest that they went any further. And sur- prisingly, some of Hamilton's more flirtatious letters have postscripts from Elizabeth on them, or passages written by Elizabeth. No matter how foolhardy Hamilton was, he would not have shown these letters to Elizabeth if he had any fear of revealing a dread dark secretive affair with her sister. And the two families were always the closest friends. This is not to suggest, however, that Hamilton was not capable of adultery. When, in 1791, the attractive Maria Reynolds came to his office, pleading for help after her hus- band had abandoned her, Hamilton gave her far more than money. As he put it, "some conversation ensued from which it was quickly apparent that other than pecuniary consolation would be acceptable." He had an affair with her that lasted over a year, involving the payment of blackmail money to Maria's husband, who appeared on the scene shortly after their first meeting. Maria's husband later used these blackmail payments to help Hamilton's political opponents accuse him of misusing Treasury funds. To defend his public reputation, Hamilton wrote a pamphlet in which he denied the accusations regard- ing Treasury funds, and instead, confessed in great detail to an "amorous connection" with Maria Reynolds. Years later, political opponents were still referring to Hamilton as Mrs. Reynolds' lover. This sketch of Hamilton's life and the myths surround- ing it is scarcely capable of portraying the true Alexander Hamilton. For, besides being a pivotal historical figure who took part in the creation of our Constitution, fought to include New York in the new constitutional government, saved the United States from financial ruin, and left his imprint on the identity of the America nation, Hamilton was also a man who kissed his children, talked too much, told bad jokes, feared humiliation, worried about supporting his family, and above all, was as unsure of the outcome of his actions as we are of ours. Myths dehumanize, removing the uncertainty, the excitement, the ambiguities, and the emotions of the unfolding of history. We seek to clearly identify the "good" and the "bad." We try to create better, more logical reasons for the events of history. We endow historical figures with more knowledge, absolute confidence, and ulterior motives than they ever possessed. But what is truly fascinating about Hamilton, Washington, Jefferson, and their contemporaries is that they were real people, with their good and had sides, living during a turbulent period, blessed with the talents to take part in the creation of a nation, but like any other person faced with chal- lenge, unsure of how to proceed and doubtful about the suc- cess of their actions. The history of the United States is a human story. To truly understand it, it is important to pre- serve its humanity. Editor's note: This article first appeared in Financial History magazine, issues 41-42. Every Auction Lot is Now Available for Online Viewing... ' %Cr., • J.1.11, -41 L.) „ 0 STATES OT Consign Your Important Material • Phone Dana Linett Today! Paper Money • January/February 2007 • Whole No. 247 29 r 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 • I Special: my Fractional Currency Book FREE (free postage too!) I to all new SPMC members who request one while supplies last EARLY AMERICAN HISTORY AUCTIONS Sign Up to Receive Our Fully Illustrated Catalogs Free Online or Only $72 for a Full Year Subscription of Six Bimonthly Printed Catalogs AUTOGRAPHS • COINS • CURRENCY • AMERICANA • MAPS EARLY AMERICAN • P.O. Box 3507 • RANCHO SANTA FE, CA 92067 (858) 759-3290 OR FAX (858) 7594439 • This Note, CiAt iU "TY-ElYE t117,..4,1"V>7i in 02 IllilVda% .A.I1,miito Ofkit); Jt.(111' 30 January/February • Whole No. 247 • Paper Money Bank of Hamilton, Oh. 0 Gone But, Not Forgot en By Wendell Wolka An embossing of Alexander Hamilton as engraved by Underwood, Bald & Spencer (detail from Bank of Hamilton $5 note). An early scrip note issued by the Bank of Hamilton, Ohio, issued in 1820, prior to its fourteen year hiatus from 1821 to 1835. 0 HIO WEIGHED IN ON the honoring of Alexander Hamilton by naming the county seat of Butler County after him. General Arthur St. Clair, the first Governor of the Northwest Territory, had established Fort Hamilton (also named after Alexander Hamilton) on the site in 1791. The town of Hamilton was incorporated in 1810. Some of the earli- est settlers were veterans who remained when General Anthony Wayne's army was disbanded. Banking came to Hamilton in the form Bank of Hamilton which was given a charter by the state legislature on December 19, 1817. The bank's capital was set at $300,000. The stock subscription books were opened in the spring of 1818 and sufficient subscriptions were received to commence operation of the enterprise. The Board of Directors met for the first time on July 11, 1818, and named John Reily as President and William Blair as Cashier. The bank began its career in the hum- ble surroundings of the front room of Mr. Blair's house. The capital stock paid into the bank was $33,062.68, only a small portion of the authorized amount, but the bank continued to discount and do a small but respectable business for a time. The bank's timing however was -- to say the least -- "unfortunate." Following a period of rapid expansion after the War of 1812, a ruinous contraction in credits and prices of both commodities and land occurred in 1818-1819 as banks struggled to return to a specie paying basis (generally bank notes were intended to be convertible into gold or silver coin except when specie payments were suspended due to times of financial stress). Debtors found that the means for paying their debts had become depreciated and that they were therefore financially "embarrassed." To compound the problem, the Bank of the United States began a severe contraction of credit to the western banks in the summer of 1818. In an attempt to meet the demands made upon them, the banks began to call in loans which, in turn, could not be paid, and the avalanche into recession accelerated. Such specie as did exist soon was drained by additional calls from the Bank of the United States to the western banks to settle accounts. As a result, the banks of the State of Ohio, and the banks in the West of the Tug ilY,SMEMEA .47 - 1110:112#131= "140.-•-■". • 70331863A I PT'S 711.3167EF f r.Z.Vor 19,5.“1 67PPQ Iln$1, tin 7OPPQ 111YX'.# • 661'I'Q68PPQ 1 Why trust Paper Money • January/February 2007 • Whole No. 247 31 I 1 .0 Lesa114.11,...nej."1". i, 150 MOS: PCGS Currency Grading Matters! -67i461 Fr. 1513 1963 $2 Legal Tender Note Fr. 2039-B - 2004A SIO Federal Reserve Note Fr. 2300' 1935A Si Hawaii Silver Certificate PCGS Superb Gem New 69PPQ PCGS Perfect New 7OPPQ PCGS Superb Gem New 67PPQ Realized $373.75 Realized $977.50 Realized $5,750.00 Fr. 2301 1934 $5 Hawaii Federal Reserve Note Fr. 2307* 1934A $5 North Africa Silver Certificate Fr. 2404 1928 $50 Gold Certificate PCGS Superb Gem New 68PPQ PCGS Gem New 66PPQ PCGS Superb Gem New 67PPQ Realized $4,887.50 Realized $5,175.00 Realized $12,650.00 These notes are truly exceptional pieces of currency, and the auction results above are proof that PCGS Currency grading is truly a value added service. The notes pictured above realized an amazing average of more than 350% of their current Oakes & Schwartz reference value in the September, 2006 Heritage-CAA Long Beach Sale. Currency collectors and dealers recognize that the PCGS Currency grading standards are the most consistently applied stan- dards in the business, and these auction prices realized are proof that buyers demand PCGS Currency grading for their valuable notes. Whether your notes are worth $100 or less, or $1,000,000 or more, PCGS Currency grading adds value to your collection. We've graded more than 40,000 notes since our inception just over a year ago, spanning the entire spectrum of values—from the most common $1 Silver Certificate to some of the rarest and most valuable notes ever sold. The consistent application of our grading standards gives buyers and sellers unmatched security in determining condition and value. Our grading guarantee insures that even when we make a mistake, you don't! any other service for your valuable currency? PCGS Currency is the only currency grading service that offers a truly unbiased third-party opinion, published grading standards, and a written grading guarantee. Standards. Consistency. Integrity. PCGS Currency Grading Matters! Nasdaq: CLCT The Standard for Paper Money Grading CURRENCY A Divi i n f Coll t U iv rssun or cc ors n e c P.O. Box 9458, Newport Beach, California 92658 • "kill-Free 800-447-8848 • Fax 949-833-7660 • Cash Tres. 77/7; ii:///t/l/ , - //( BANK oF HAMILTON / //%"/1 / /1( FITE / 4/4 /..1/2 / ) 1////11 /1 1// / / /6"i(( (7/ ikile.TOR,41%(' (///r ,130401476° 1119,19V/171/7190.;,' (/ ///-/- tr. 7W K3ivi/7/7//' iaiw( (Y/ Cash. / /1/17 / 32 January/February • Whole No. 247 • Paper Money Proof of a likely pre-1821 $5 issue of the Bank of Hamilton. Proof of a likely pre-1821 $10 issue of the Bank of Hamilton. generally, suspended specie payments in early November, 1818, with the Bank of Hamilton doing so November 9. In May, 1819, the Farmers and Mechanics Bank of Cincinnati, as the result of an agreement with the Treasury Department, became a depository of government funds on which they resumed specie payments. Under these cir- cumstances a proposal was made to the Bank of Hamilton on May 27, 1819, by their agent, Nicholas Longworth, for a loan of $10,000 in specie, in order to enable the Farmers and Mechanics Bank to carry on business and carry out its agreement with the Treasury Department. The Cincinnati firm gave assurances that they were to receive a permanent deposit from the government of $100,000 which, it was stated, exceeded the amount of their paper in circula- tion. Consequently they needed this "bridge loan" for a short period. The Farmers and Mechanics Bank stated that the specie could be returned on a moment's notice and not be affected by any amount of the notes of the Bank of Hamilton which they might have in hand at the time. It was also proposed to make the notes of the Bank of Hamilton receivable in the land office, if desired, on terms that would be mutually satisfactory. On the general resumption of specie payments the Farmers and Mechanics Bank proposed to reciprocate the accommodation in any way that might be most advantageous for the Bank of Hamilton. The proposition was accepted by the directors of the Bank of Hamilton, and the sum of $10,000 in silver was paid over to the Farmers and Mechanics Bank on June 15, 1819. A few weeks afterwards the Farmers and Mechanics Bank suspended specie payments and closed its doors. Needless to say, this alarming turn of events initiated an immediate exchange of correspondence with the Farmers and Mechanics Bank on the subject of the loan which they 77 r- , Zrr, %K 4-/U2 /r /1.'0/10/; „ - tech etult5T-l o al* of L_Trwirmati r: 'al rwlrl fe/ierr,ere-/;ear7/kria l/L:"L (.. --11,416.1 (/:; ty9 /Sere/4 ile,// tr?' -441rei- c.:// r/-//////e./ FIVE Ironically, the building which was offered to stave off a financial disaster for the Bank of Hamilton is portrayed on this issue of the Farmers and Mechanics Bank of Cincinnati. An apparent con- temporary coun- terfeit of the post- 1835 $10 issue. 7K77 1W ti7y(1? 4f/ / BAN K :GI' 0:NT , „ , Z,„ , „, / 1 1 ,1 1 ///, , `I I I, 01 1 11) 1 / r / $10 Bank of Hamilton proof of post-1835 issue. 111,V.• 41. Paper Money • January/February 2007 • Whole No. 247 33 were suddenly unable to return or secure. Finally, in May, 1820 a deed was made by the Farmers and Mechanics Bank to the Bank of Hamilton, for their banking house and lot located on Main Street between Front and Columbia Streets, in Cincinnati. Since no other set- tlement method seemed to be in sight, this property was accepted as payment in full for the loan of $10,000, including interest. The Bank of Hamilton took possession of the property and rented it to John and Gurden B. Gilmore for use as a broker's office and residence. In December, 1824, a writ of ejectment, issued from the Circuit Court of the United States for the district of Ohio, in favor of the heirs of Israel Ludlow was served on the tenant of the Bank of Hamilton for the recovery of the house on the grounds that the property had been illegally sold by the administrators of Israel Ludlow after his death. During the January term of the Circuit Court in 1827, a judgment was rendered in favor of the heirs of Ludlow against the Bank of Hamilton. li; 2\‘' k" 1 ) 1' ' I Is\INA 11.(11) ,:s, //,// , FIVE DOLLARS 1/ ()///o ( ) IN' . E . DULL A It 4, ' I.::`• / 4 sr 'T.:-. - 34 January/February • Whole No. 247 • Paper Money $5 Bank of Hamilton proof of post-1835 issue, with portrait of the bank's namesake Alexander Hamilton at left. The Bank of Hamilton took up a writ of error to the Supreme Court of United States and when the case came up for hearing, the judgment of the lower court was affirmed, which rendered the title of the Bank of Hamilton void. This ruling essentially left the Bank of Hamilton holding the bag. However, further examination found that the property had been conveyed to the Farmers and Mechanics Bank by one John McIntyre, by deed of general warranty dated the 31st of May, 1815. Mr. McIntyre lived in Madison, Indiana, and was perfectly solvent. The agent of the bank accordingly called on him on October 29, 1819, at which time Mr. McIntyre agreed to pay to the Bank of Hamilton the sum of $2,000, which was accepted. The Bank of Hamilton was, nonetheless, severely crippled. While the bank did not suffer outright failure, it was driven into virtual inactivity from roughly 1821 until 1835. During this time period, the stockholders did nothing more than to elect directors to keep the bank alive. In 1835, the bank received an additional $50,000 in new investment and again went into operation. The bank's second period of operation was hardly more successful than its first. Thanks in part to the Panic of 1837 and its aftermath, the Bank of Hamilton finally shut its doors on the February 9, 1842, when an assignment was made. • Washington & Hamilton grace Hamilton Bank $1 By Leslie Deerderf Portraits of both 1st President and 1st Treasury Secretary grace this elegant Hamilton Bank, Boston, $1 note, the only note from this bank with Hamilton's bust. According to Jim Haxby, the bank was organized in 1831, becoming the Hamilton National Bank of Boston. 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 insurancecarrier is AM Best's rated A+ (Superior). • We i nsure paper money, paper ephemera, manuscripts, books, autographs and scores of other collectibles. 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Sincerely, Roland Rivet 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: RANCE For The PaperMoney Collector all Toll Free:1-888-837-9537 • Fax: (410) 876-9233 More Info? Need A Rate Quote? Visit: 36 January/February • Whole No. 247 • Paper Money and the Birth of a Capital Market By Robert E. 'Wright x-'4* .0<%1 )F-.1C .(1 At‘°t' e41/4S )9s, '4171 16 A ,Itated of t/imerica, anto • /(:(Je itt rice_ L3- t./Ohtne kft-0 ; payae/d partez-yearly, awe lapel to redem/21cole, 4 Me parzoila7 1 / , ,' I I 6 77b, idielieve2; p:OVI:110. 11 .1h,tli L made Me7-efiz 4 lam .. 77111,(11 ge/71 1.4 1,ecorded 1:97; )-, 1Iar e** 1,` jal:171.7, e,eol, at three ter ceillawe per a9znam, from Me /rid- Ia. d bt - h. /7 fide /610,1t2i L6,:iaaAh //7HY1/1 02' Prld juin& 01 7' Air/in/rid *GralteR 41170 Y4, 26' .... _ .i/(J11:2;'Pa d',X<',1' ../.70d,Ar_ 0,1; -,76'S . siA P'-,( Ar.",. ..1 ( ) AI, of '\ / 4/ i / 7 i a / ,,,, :-, 1 .;,:' ,„, - , 7 I: KNOWN --/, 1 vi:,. , c" :_a: '...:CTC. l:; da6 ler 0271 IA &Idled 7 qi .ce, and fraredferaGle ogdy /y, rawee Izerfre, or allormey, at ?Me pro- (4-Pee,, aceedt..77 to Me ^,aleJ wrid forme t dttfated fir Mat Izari2JL This certificate issued to Founding Father Patrick Henry in 1792 indicates that he invested in America's first bond issue. ri4APITAL MARKETS ARE WONDROUS THINGS. No nation with a good one is poor; no nation without one is rich, unless one counts as wealth the income reaped by the temporary exploitation of oil and gold, blood and bone. Alas, institutions as complex as capital markets do not usually arise of their own accord. To flourish, as they have in America, they typically require, at a minimum, political stabili- ty and a helpful hand from on high. In America, Alexander Hamilton provided both. Few doubt the importance of the Constitution, or Hamilton's seminal role in its ratification, but many scholars, like their Jeffersonian and Jacksonian forbears, routinely question the efficacy of Hamilton's financial reforms. Such debates, which raged even before Hamilton's untimely demise in 1804, were fueled by a dearth of hard evidence. In Hamilton's time, the depth and liquidity of the new financial markets were clear to all not blinded by partisan rage, but the ultimate effects of the financial revolution of the 1790s remained obscure. Today, we know that Hamilton's revolution did not create the exploitative financial oligarchy that many feared it would. The founding generation's intimate understanding of the eco- nomic efficacy of the early financial system, however, was lost long ago. In recent decades, most historians ignored the early financial system entirely or hinted that it did more harm than good. The prevailing sentiment to this day appears to be that a few, rich speculators dominated the early debt markets and turned them to their own, greedy ends. Recent work, however, is proving that such views are ques- tionable. A few years ago, two colleagues and I completed a Paper Money • January/February 2007 • Whole No. 247 37 TABLE I Group Number of Accounts Percentage of Accounts Face Value of Bonds Purchased ($millions Percentage of Bonds Purchased Non-merchants 253 29.54 1.033 13.09 Merchants 234 27.40 3.043 38.56 No Occupation Given 367 43.06 3.816 48.35 Occupation Analysis 854 100.00 7.892 100.00 Non-Charleston U.S. 211 24.71 2.049 25.96 Charleston 375 43.91 2.991 37.90 Foreign 84 9.84 .728 9.23 No Location Listed 184 21.54 2.124 26.91 Location Analysis 854 100.00 7.892 100.00 Estates 112 13.11 .349 4.42 Trusts 39 4.57 .223 2.83 Organizations 20 2.34 1.692 21.45 Partnerships 61 7.14 .957 12,12 Females 89 10.42 .208 2.64 Miscellaneous Accountholders 321 37.58 3.429 43.46 Owners of Accounts on Charleston, SC transfer books by occupation, location, and type. large data set of early securities prices. The data, gathered from early newspapers, suggested the early appearance of vigor- ous capital markets in each of the new nation's major coastal cities. Where there are prices, there are transactions, and where there are transactions, the forces of supply and demand ensure the economically efficient allocation of resources. Data on trading volumes, however, remained scarce, so stalwarts, who are always too plentiful, clung tenaciously to the old view that the "markets" were little more than the playthings of the rich and powerful few. Even the most steadfast supporters of the old, anti- Hamiltonian view, however, will have difficulty deflecting the data currently emerging from an in-depth study of the recent- ly (re)discovered national debt transfer books. Those account books list the owners of U.S. national bonds, often provide the accountholder's place of residence and occupation, and invari- ably reveal the date, type, and face value of bonds that they purchased and sold. In short, scholars will soon know precisely who owned the national debt and how frequently the various bonds creat- ed by Hamilton's funding plans traded in the secondary mar- kets. Although results are preliminary, they are highly encourag- ing to those who argue that Hamilton's financial reforms played an important, if not crucial, role in forging America's economic greatness. The initial data come from the Charleston, SC transfer books. Charleston was chosen for first study because price and anecdotal evidence suggested that it possessed the smallest and thinnest of the early U.S. securities markets. Logically, if the Charleston debt market was an active one, the findings from Boston, New York, Philadelphia, and Baltimore should prove even more encouraging. Here is an overview of the find- ings: Between November 1790 and January 1797, the Charleston transfer books list 854 accountholders. This is not the same as the number of persons who owned bonds. Some accounts listed several people as owners; some people controlled several accounts. The former were generally partners in mercantile firms; the latter were typically attorneys who held bonds in trust for minors, the estates of the deceased, etc. Of those 854 accountholders hailed most resided in Charleston or its environs; but they included people from at least 87 different places, from Amsterdam to Bermuda, from Bordeaux to Bristol, and from Massachusetts to Georgia. The accountholders included members of 48 different occupational groups, including bricklayers, gunsmiths, innkeepers, and painters. The size of transactions ranged from $1.40 to almost $804,000. The average sale, of which there were 2,148 over the period, was for $1,359.10. The median transaction size was only $540.07, however, and 25 percent of the transactions were for bonds the face value of which was $173 or less, a sum well within the reach of "middling" households. As Table 1 shows, merchants were major participants in the market, but they were so numerous, and so geographically dispersed, that it is highly unlikely they could have systemati- cally manipulated the market for their own benefit. Moreover, in aggregate, miscellaneous holders (women, estates, trusts, partnerships, and organizations) were more numerous than merchants and purchased a greater face value of bonds. TABLE 2 Month - Year Amount Sold Number of Sales Average Sale Size Month - Year Amount Sold Number of Sales Average Sale Size November 1790 $2,876.39 10 $287.64 January 1794 $10,654.39 18 $591.91 December 1790 $4,667.92 4 $1,166.98 February 1794 $34,178.08 28 $1,220.65 January 1791 $10,739.25 10 $1,073.93 March 1794 $5,189.63 12 $432.47 February 1791 $15,704.86 3 $5,234.95 April 1794 $17,706.84 21 $843.18 March 1791 $16,261.23 10 $1,626.12 May 1794 $2,500.12 2 $1,250.06 April 1791 $17,260.66 29 $595.20 June 1794 $4,414.35 9 $490.48 May 1791 $1,800.68 5 $360.14 July 1794 $54,982.84 35 $1,570.94 June 1791 $1,686.01 6 $281.00 August 1794 $7,619.83 9 $846.65 July 1791 $17,122.78 23 $744.47 September 1794 $9,987.14 14 $713.37 August 1791 $7,759.47 21 $369.50 October 1794 $3,029.57 10 $302.96 September 1791 $3,407.02 7 $486.72 November 1794 $27,266.70 18 $1,514.82 October 1791 $26,841.11 26 $1,032.35 December 1794 $1,526.72 4 $381.68 November 1791 $254,830.71 107 $2,381.60 January 1795 $12,453.91 18 $691.88 December 1791 $104,626.72 75 $1,395.02 February 1795 $27,711.80 30 $923.73 January 1792 $58,103.70 54 $1,075.99 March 1795 $21,973.90 25 $878.96 February 1792 $1 13,527.63 64 $1.773.87 April 1795 $35,455.43 39 $909.11 March 1792 $52,697.30 68 $774.96 May 1795 $44,045.29 25 $1,761.81 April 1792 $98,032.16 91 $1,077.28 June 1795 $17,679.84 7 $2,525.69 May 1792 $260,086.57 166 $1,566.79 July 1795 $82,982.47 53 $1,565.71 June 1792 $74,815.37 65 $1,151.01 August 1795 $78,518.71 40 $1,962.97 July 1792 $60,232.27 73 $825.10 September 1795 $11,443.35 10 $1,144.34 August 1792 $46,229.91 54 $856,11 October 1795 $43,156.04 26 $1,659.85 September 1792 $18,701.02 34 $550.03 November 1795 $17,149.88 13 $1,319.22 October 1792 $44,650.38 60 $744.17 December 1795 $12,437.45 7 $1,776.78 November 1792 $53,419.74 52 $1,027.30 January 1796 $18,784.21 7 $2,683.46 December 1792 $11,337.71 21 $539.89 February 1796 $15,331.31 19 $806.91 January 1793 $43,398.47 32 $1,356.20 March 1796 $15,341.32 9 $1,704.59 February 1793 $40,686.19 51 $797.77 April 1796 $20,574.70 20 $1,028.74 March 1793 $13,088.07 18 $727.12 May 1796 $79,066.64 23 $3,437.68 April 1793 $124,353.24 63 $1,973.86 June 1796 $15,875.23 9 $1,763.91 May 1793 $20,516.04 17 $1,206.83 July 1796 $158,145.36 42 $3,765.37 June 1793 $6,228.97 12 $519.08 August 1796 $37,559.98 22 $1,707.27 July 1793 $16,097.78 11 $1,463.43 September 1796 $10,273.87 13 $790.30 August 1793 $66,272.57 36 $1,840.90 October 1796 $28,426.54 12 $2,368.88 September 1793 $16,145.93 15 $1,076.40 November 1796 $30,709.57 14 $2,193.54 October 1793 $85,467.64 29 $2,947.16 December 1796 $14,503.65 I S $966.91 November 1793 $64,334.76 16 $4,020.92 January 1797 $4,804.81 13 $369.60 December 1793 $11,047.36 18 $613.74 38 January/February • Whole No. 247 • Paper Money Sales recorded on Charleston, SC transfer books from November 1790 to January 1797. Moreover, as Table 2 suggests, the market for govern- ment bonds was quite liquid, both in terms of number of trades and the face value traded. Over time, the market in Charleston for the bonds that Hamilton's Treasury issued starting in late 1790 became some- what smaller. Several factors account for the decline. First, by the late 1790s new varieties of U.S. bonds, tracked in separate account books not yet studied, became available, as did other securities, including shares in business corporations. Second, in the early decades of the 19th century the federal government rapidly paid down its debt, so there were fewer bonds available to trade. Third, securities have a tendency to end up in the possession of one of two types of owners - long-term hold- ers like widows and estates, and short-term traders. The former did not trade frequently, and the latter tended to send their bonds to the larger markets of the Northeast. Fourth, the original southern holders liquidated their U.S. bonds, often selling them to northerners, to reinvest in the South's booming agricultural economy and foreign trading ventures. Such asset redeployments are among the advantages conferred by good capital markets. So, by April 1, 1809, only 163 accountholders are listed on Charleston's books. They owned a total of only $1,900,797 face value worth of Hamiltonian bonds. The median accountholder owned $780.35 worth. vap '19147:1V/111( 1111401.11".01■1tS tt- Buying Carl Bombara ,;.. United States Currency t ■•.■11. P.O. Box 524 j New York, N.Y. 10116-0524 raltit\ Phone 212 989-9108 Always Wanted Monmouth County, New Jersey Obsoletes - Nationals - Scrip Histories and Memorabilia Allenhurst - Allentown - Asbury Park - Atlantic Highlands - Belmar - Bradley Beach - Eatontown - Englishtown - Free- hold - 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 I Collect FLORIDA Obsolete Currency National Currency State & Territorial Issues Scrip Bonds Ron Benice 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Paper Money • January/February 2007 • Whole No. 247 39 Harlan J. Berk, Ltd. "The Art & Science of Numismatics" 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 www e-mail: A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs 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" $22.50 $40.50 $180.00 $320.00 Colonial 5-1/2" x 3-1/16" $23.00 $42.00 $195.00 $350.00 Small Currency 6-5/8" x 2-7/8" $23.50 $45.00 $200.00 $375.00 Post Card 6-5/16" x4" $25.50 $48.50 $215.00 $400.00 Large Currency 7-7/8" x 3-1/2" $26.50 $49.50 $220.00 $410.00 Auction 9 x 3-3/4" $29.00 $53.00 $250.00 $450.00 Foreign Currency 8 x 5 $33.00 $60.00 $275.00 $485.00 Checks 9-5/8 x 4-1/4" $33.00 $60.00 $275.00 $485.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00 National Sheet Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00 Stock Certificate End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00 Map & Bond Size End Open 18" x 24" $77.00 $345.00 $625.00 $1425.00 F 04619594 r, You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY'S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY 800-HI-DENLY • FAX 617 -357 -8163 40 January/February • Whole No. 247 • Paper Money TABLE 3 Residence Number Percentage of Face Value of Bonds Owned Occupation Number Percentage of Face Value of Bonds Owned Beaufort, South Carolina 1 0.47 Attorney 15.24 Bermuda 7 1.28 Broker 1 0.02 Camden 0.48 Factor 2 1.91 Charleston 64 61.75 Grocer 1 0.89 Chester, Great Britain 1 17.62 Merchant 18 46.65 Georgetown 0.79 Merchant Tailor 0.07 Georgia I 0.01 Physician 2 2.93 Great Britain 4 8.14 Planter 19 19.07 James Island 2 0.53 Reverend 3 0.66 New River 0.02 Spinster 6 1.31 Newberry district 0.78 Surveyor 0.48 Ninety Six district 3 1.13 Tanner 0.06 Peedee 1 0.02 Treasurer of the State 5.96 Pendleton County 1 0.68 U.S. Navy 0.15 Redland, near Bristol 1 0.09 Widow 15 4.60 South Carolina 2 4.47 Total 73 100.00 St. Eustatius 2 0.10 St. Helena 0.80 St. James Santee 1 0.05 St. John's Parish 1 0.10 St. Paul's 0.03 St. Thomas Parish 2 0.63 Winyaw 0.03 Total 101 100.00 Percentage of face value of bonds owned recorded on Charleston, SC transfer books by residence and occupation. Moreover, as Table 3 indicates, accountholders now rep- resented fewer communities and fewer occupations. Charlestonians owned decreasing numbers of Hamiltonian bonds until the first U.S. national debt was completely paid off during Andrew Jackson's administration. The redemption of the bonds, or their sale to northern and foreign markets, was a grad- ual process. Some Charlestonians consumed the proceeds of the sales and redemptions or invested them directly in productive assets like land and slaves. Others undoubtedly reinvested in state and local bonds, private bonds and mortgages, and corporate securities. Thanks to the helping hand that Hamilton provided the nation's nascent capital markets, Charlestonians, and indeed all Americans, enjoyed a variety of long-term investment options, and a greater ability than before to reallocate capital to take advantage of new and profitable investment opportunities. Two hundred years after Hamilton's death, scholars study- ing the long-dormant early U.S. transfer books are finally poised to understand with clarity, depth, and precision the importance and complexity of the Treasury Secretary's accomplishments in creating liquid capital markets. These markets were a major advantage of the United States in comparison with almost all other nations at the start of the 19th century. Prevailing notions that capital markets were unimportant and "dens of thieves" need to be tempered with factual knowledge of their nature and depth, and how they contributed to the efficient allocation of scarce capital resources. Editor's Note: Robert E. Wright is the author of America's First "Wall Street": Chestnut Street Philadelphia and the Birth of American Finance (U niversity of Chicago Press, 2005), and four other books on U.S. financial history. He teaches economics, business, and history at New York University and DeVry University. Sources South Carolina Loan Office Records Relating to the Loan of 1790, National Archives and Records Administration, RG 53, Records of the Bureau of the Public Debt, T719, Reels 1-3. Sylla, Richard E. "U.S. Securities Markets and the Banking System, 1790-1840." Federal Reserve Bank of St. Louis Review, 80, 83-104, 1998. Sylla, Richard, Jack Wilson, and Robert E. Wright. "America's First Securities Markets, 1787-1836: Emergence, Development, Integration." National Science Foundation, grant no. SES-9730692, data housed by ICPSR, 2003. Wright, Robert E. Hamilton Unbound: Finance and the Creation of the American Republic. Westport, Connecticut: Praeger, 2002. Wright, Robert E. The Wealth of Nations Rediscovered: Integration and Expansion in American Financial Markets, 1780-1850. New York: Cambridge University Press, 2002. Wright, Robert E. America's First "Wall Street": Chestnut Street, Philadelphia and the Birth of American Finance. Chicago: University of Chicago Press, 2005. Wright, Robert E. and David Jack Cowen. Financial Founding Fathers, the men who made America Rich, Chicago: University of Chicago Press, 2006. Paper Money • January/February 2007 • Whole No. 247 41 U.S. Treasury securities market: Lessons from Alexander Hamilton Remarks by past Fed Chairman Alan Greenspan At the Annual Public Service Awards Dinner of the Public Securities Association, New York, New York October 7, 1996 I thank the members of the Public Securities Association for bestowing upon me this award for distinguished public service. I am particularly honored by the company that I keep as a winner of this award, as previous recipients have included Senators Daniel Patrick Moynihan, Christopher Dodd, and Kay Bailey Hutchison and my predecessor as Chairman of the Federal Reserve, Paul Volcker. I trust that everyone in this audience would agree that the U.S. government securities market works as well as any on earth and generates wide- spread macroeconomic benefits. In one sense, that is regrettable. The market has become so efficient in part because of the economies of scale associ- ated with the large volume of Treasury debt issued over the years. While the massive federal debt has allowed traders to refine their skills, it has also implied that much of the small pool of national saving has gone toward funding the government. Moreover, the interest burden of this debt has kept tax rates higher than we might have wanted. In another sense, though, the efficiency of the government securities market stands as testimony to decisions by policymakers in the formative days of our nation that convinced the world that the United States honored its commitments and valued the rule of law. Every time I visit Secretary Robert Rubin, I am reminded of the power of the decisions of the first Secretary of the Treasury that laid the foundations for this nation's financial credibility. Engraved at the base of the statue of Alexander Hamilton outside the Treasury building are the words of Daniel Webster: "He touched the dead corpse of the public credit, and it sprung upon its feet." Everyone knows the short version of the events that prompted that praise. Hamilton convinced the new Congress to honor the debts of the Continental Congress. Under his prodding, the federal government also assumed responsibility for the debts of the individual states incurred in fight- ing the War of Independence. But there are five details of the debate at that time that we all would be well served to remember. FIRST, Hamilton insisted on full payment of the debt. Many at that time counseled discrimination among those obligations--perhaps by favoring vendors and veterans over bond holders or perhaps by paving original holders of debt more than those who purchased securities in the sec- ondary market. Hamilton recognized that an obligation was an obligation, no matter how it was incurred or who held it. Repayment had both a moral and a practical dimension. The debt, in Hamilton's words, was the "price of liberty" because it financed the successful completion of the War of Independence. Those who extended aid at a time of peril, or supported the debt subsequently, deserved to be repaid. But repayment would also send an important message to investors, particularly those abroad, that the United States could be trusted in the future. Hamilton recognized, and we should never forget, that investors have many choices on world markets. Even the whiff of the possibility that the United States would not honor its debt would push up the cost of borrowing for years to come. Following Hamilton's lead, the Treasury has never defaulted on any debt security, notwithstanding the abrogation of the gold clauses in 1933. SECOND, Hamilton was practical in his understanding that economic policymaking cannot be divorced from the broader discourse on public priorities. The debate on the assumption of state debts generated arguments so heated as to make our weekend television talk shows appear as civil as tea parties. Reflecting on those days in his later years, Thomas Jefferson--by no means an admirer of the first Secretary of the Treasury--was led to write that "this measure produced the most bitter and angry contest ever known in Congress, before or since the Union of the States." But those bitter enemies, Hamilton and Jefferson, compromised with an old-fashioned horse trade. Jefferson threw his support behind the assumption of the state debts in return for Hamilton's advocacy of placing the nation's capital on the banks of the Potomac. Political realities have not changed in that regard in the succeeding two centuries. It is inevitable that consideration of the budget be included as part of a wider debate on public policies. However, Alexander Hamilton drew a line that no one should cross: The government of the United States must never default on its debt. THIRD, Hamilton's plan to honor the old debt provided a sinking fund to help repay new debt as it came due. The first Secretary saw that Treasury debt was a burden to future generations. And it was his responsibility to provide the means to lighten that load. In those simpler times, before we became too sophisticated for our own good, deficit financing was a necessity prompted solely by peril, not as a tool of active demand man- agement or as an excuse to put off hard decisions. In one sense, though, Hamilton's job of planning for the retirement of the debt he was issuing was easier than the problems confronting today's policymakers. In 1789, government obligations could be measured by the amount of debt outstanding. Today, debt comes in many forms, including promises to pay that have become embodied in unfunded entitlement programs. FOURTH, Hamilton's refunding scheme provided for the issuance of securities of long maturity that would be repaid in specie. Thus, his Treasury locked in longer-term funding and did not have to test continually the market's willingness to finance the new government. At the same time, investors were given some assurance that holding government securities would preserve their purchasing power. Those same incentives have led our present-day Treasury to issue securities across a wide range of maturities and, I am pleased to note, to begin soon to offer debt indexed to consumer prices. FIFTH, and this should come as no surprise from one of the authors of the Federalist Papers, Hamilton explained his policies in well-written, logically constructed arguments that remain a pleasure to read, even two hundred years later. Hamilton's lessons speak across the generations, both to policymakers in mature democracies and those coping, as he did, with financing newly independent states. If we are to protect his creation, the U.S. Treasury market, we must remember two facts he could not afford to forget. For one, buyers of Treasury securities do so through their own volition. Investors have alternatives, and more so now than ever before. For another, the issuer of those securities, the U.S. Treasury, must finance an amount, on net, that is determined by the political judgments of the congressional and executive branches of government. If the government makes purchasing its debt harder--by imposing onerous reporting or bookkeeping requirements--or riski- er--by following capricious macroeconomic policies--buyers will pull hack and the cost of servicing the debt will rise. We at the Federal Reserve will do our part to contribute to financial stability, which is to preserve the purchasing power of money over time. To be sure, the dollar sums that preoccupied Alexander Hamilton were small. The national debt totaled $75 million, or $18 per capita. But the issues at stake were large. I can only hope that, by following his precedent, today's policymakers show some of the same wisdom in dealing with the public debt. Background: Alexander Hamilton by John Trumbull • C832,1(k s • Itnl. ■ - 01441.1.r11,-.3 . 991°11141020,9Jfisk)It PSCAT Goi Cutit /Pam/ 424444**2"' January/February • Whole No. 247 • Paper Money42 Hamilton notes popular with collectors in hobby today Thousand dollar bills with the portrait of AlexanderHamilton (1755-1804) were quite popular with voters surveyed for the recent book Dave Sundman and I wrote, 100 Greatest American Currency Notes. Three different "Millenium notes" landed in positions #74 (Series 1918 $1000 Federal Reserve Note), #75 (Series 1907 and 1922 $1000 Gold Certificate), and #80 (the Series 1882 $1000 Gold Certificate shown here). As a subject on federal paper money, Hamilton was and still is (on the current $10 note) a great choice. In all our first Secretary of the Treasury was broadly represented. Five other winning types depicting Hamilton landed at Nos. 32, 38, 82, 88, and 97. More than any other individual, he was central to financial planning in the early days of the government, and thus the distinction is richly deserved. The present type began with a single Friedberg number, F-1218, in early edi- tions of Bob Friedberg's Paper Money of the United States. Things were less sophisti- cated back then. For high-denomination notes, basic types were often assigned a single number; signature combinations or, in related instances, Federal Reserve Bank locations, were sometimes ignored. This listing is now expanded with added letters "a" through "g" to reflect dif- ferent Treasury signatures and seal vari eties. For today's collecting community, however, the more information the better, and basic listings acceptable in 1953 will not suffice. F-1218a has Blanche K. Bruce James Gilfillan signatures and a countersignature by Thomas C. Acton, assistant treasur- er, and is payable in New York City. The Bruce-Gilfillan combined tenure lasted until March 31st, 1883. Scholarship by members of the Society of Paper Money Collectors and others has revealed much information not known to earlier generations. Today's listings are more precise.. The F-1218f shown bears facsimile signatures of Register of the Treasury Judson W. Lyons and U.S. Treasurer Ellis H. Roberts, whose combined term of office was April 7, 1898, to June 30, 1905. Accross the different varieties within this type, researcher Martin Gengerke records 22 different known examples today, including two of the curious F1218a. Ten of the known exam- ples are part of the National Numismatic Collection at the Smithsonian Institution. In 1789 President Washington apointed Alexander Hamilton as the first Secretary of the Treasury, a position he held until 1795. He created and reported to Congress a pro- gram that sought to strengthen the finances of young America. Particularly important was to build credit domestically, for the currency of the Continental Congress had depreciated to vir- tual worthlessness. Credit with foreign countries was also a part of his bold program, with Europe being the main focus. The national government, not the states, was to be the bearer of the govern- ment's financial plans, although most banking and related activity was regulated with the states if at all. In his Reports on the Public Credit, delivered to Congress on January 14 and December 13, 1790, Hamilton took the aggressive step to recommend that the federal government assume the debts incurred by the states in the fighting of the Revolutionary War. This measure would encourage leading business and financial interests to support the fledgling gov- ernment during its development. Thomas Jefferson, Secretary of State at the time, opposed certain provision of Hamilton's plans. A compromise with Jefferson was stuck, including locating the Federal City (later called Washington) in the South, after which southern votes were instrumental in passing the recommended legislation. In his second message to Congress, Hamilton proposed the Bank of the United States, a government-chartered insti- tion similar to the successful Bank of England. It would issue currency and to an extent regulate credit and interest rates through practices of receiving and lending money. Banks were just beginning to be formed, with the Bank of North America chartered in Philadelphia, being the first such commercial institution. Banking was viewed as a right of the states, and there was much opposition regarding any possible interference by the federal government. Hamilton promoted BUS, which operated until its 20-year charter expired in 1811. Ownership was mostly by private shareholders, although the government held an interest. Hamilton was caught up in the politics of the Federalist campaign for the presidency in 1796. John Adams won, but Hamilton tried to influence the Electoral College to name Thomas Cotesworth Pinckney. He remained active in politics for years afterward. In 1804, in a famous duel with his politi- cal enemy, Aaron Burr, Hamilton was the loser. Series 1882 $1000 Gold Certificates with financial archi- tect Alexander Hamilton's portrait is a favorite of many, but only the well-healed can afford one today. Valued in Extremely Fine at a relatively modest $1,650 in 1960, the note's value had risen to $12,500 two decades later. An EF example of F-1218g sold for $264 ,500 in 2005. • Currency Auctions If you are buying notes... You'll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful "grand format" catalog, featuring lavish descriptions and high quality photography of the lots. Aimual 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 • Beantiful 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 1:SPS 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. )911 CXnig-ht Currency Auctions 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: - Whether you're buying or selling, visit our website: Deal with the Leading Auction Company in United States Currency ' 44FP4" ----7;" 1'9""24.:±tio.i. -7? !.' .s.a2c4,74. Fr. 379a 51,000 1890 T.N. Grand Watermelon Sold for $1,092,500 II I otiouttorgis Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S C Sold for $287,500 , :111-‘1 ." 44 ILL Paper Money • January/February 2007 • Whole No. 247 43 I-MUD" ..1/ Nei / 4;4 Shfv,..A. 141semvx' tlf 9.13.y.juaLi &Le •• 0 0 •• • e„,,k, / 7 .,,,,,, i,,,,/,/,,,,,,,, 4\mwice) - -N 41.,;,,„'t ) -Th, i 0 57'004,11.11.11 1, 6, v v n , $ SAIL ------- • 0 el / / 3/../ ////////j /////////% /1• //i//,/ ri . ,77 "i//7 y// / / • /////////// / //////2/ // V • i ///• /4///////: / / I I ,"//////(///// // Afk //// ss . / / / /// / .0 • • :•0 • 0:0 •:• 0:0 0 • 0. 01,0:• • •. 5 0:•0 • :0 • • • 0:0 00 • 0:0 6 0 • O 00 •• • • 0 • 0 • • // / / k 4 ttiTI,°ffettErdWiitA y, .1 5701 . Ad/ r4e • ,•■•• W 6 r,14.,./ ■ 44 January/February • Whole No. 247 • Paper Money Alexander Hamilton on U.S. Government Bonds By Gene Hessler 1 N AN ILLUSTRATED HISTORY OF U.S. LOANS, 1775-1898 THERE ARE 196 LISTINGS FORemissions issued between the dates mentioned. Excluding eagles and idealized images of Liberty, justice,Mercury, etc., the first likeness of a named person did not appear until 1846. As you might surmise, theimage of George Washington appears more often than any other person; portraits of Alexander Hamilton are second in usage. Four different engraved images of Alexander Hamilton appeared on eight U.S. bonds in two cate- gories. Registered bonds were issued to and were redeemable by a specific person; coupon bonds were redeemable by the bearer. ' s i I r ',A._ Act of February 25, 1862 Authorized amount: $500,000,000, however, the Act of March 3, 1864, authorized an additional $11,000,000 and the Act of January 28, 1865 increased the authorization by $4,000,000. Amount issued: $514,771,600. Interest rate: 6%. The $50 registered bond bears a portrait of Hamilton engraved by Owen G. Hanks. -4 N / / \ NA> it.tft 1 ',,, w tr.3 U.14111114. • t _ _ ■ *' ■ -41' ' O. itnr-e# tIti 1 t et1 LOT 4\8%ilt ., .. f , • / • Alik Cliarageldb WM — le,— ./..•—•••• •Ik• V t 1 ,• - --":.: 7...'"'''.:. * AU ', \.4 11, /, 11 e WO 7: CI 4.- ,,) 1 r / / „ '/OPl2 /*/ '" //•./ t/ r/ /1///e / i I/ / 11// . /// i II/ e/ /// ) / //` I ////// / W.,. b / // e r r /// 14/ / el /I //// //I /11 //1/11 .1 r // /he 7/ / 1/ 1 // I, i /1/ 4///////, /./ I/ // al ////' 1 I/14 y,,, ,•, , // ///, ..//, ,, ,,,/,///e 7., / //i. //, /1/, , /,...?4 ..,, /..:, II IT /r/I ,,//s/eii),/ di., /1;1/ // //////le z/.., I I/ / 1, / / / ell I/11/171111 rr/1//ril/e/. /4/1"1/1 / .1-, I 1// OY IL(C ..- V4111105.11.1 , 1, 1 i ,// /// / Paper Money • January/February 2007 • Whole No. 247 45 111.71/17",11...1T. 12345 :".`st s /41ceS c•-■ 1?/: It71.7) r v `rt", row • / /1/ e ,/, e///// /// (1)111* eltitlijall.41:110ilittli feet, //err/ ".• el/r/e. 7441 .11,re /// 1 /21 144 r/' //e/Ir///, • • e ,,•re el.;/// • / //,'/1,1/ / / • /111/21,17.• ///•• '• /e //le // e .041.17 /4/ // ///e •//1; ••• 4 WA. 1/1 ,11/1,1//1 • 1' /Illy // 17/1,7 / 4:11 /1/ et' /// / /.••• // e /e/ 1/1/ / /// /7/1 /// /5., .7,1/4 e // i// -OA,/ /.• /,G7/r, // y /Ire / f*, //," , /,"/ / , / /1,./ ••• • • The $1000 coupon bond has a portrait that was engraved by Charles Burt. Act of March 3, 1863 Authorized amount: not to exceed $300,000,000 for the current fiscal year and $600,000,000 for the following year. Issued amount: $75,000,000. Interest rate: 6%. The $50 coupon bond has the portrait by Owen G. Hanks. The Eagle's Nest was engraved by Louis Delnoce and justice and Shield was engraved by Charles Burt. Obit 1101M10401143/40$ ioatraBioataayaverizowsikeltekt"- - .,14)1,14)4144.- -* 4 *"4'3140,;almotowoz.,..mialik› itii/i / ) , '?„, * 'A II *Vr , / l. ) • Th e Ent" statesurAutertes Aaim i/ *ErrAsiA e` / '11,41' 7 4:94101., / teett: eve /he elklie .40,7 Pro-mho*f JAInA...i5e ad e., /VIA, ( io./.40,Vitt/ir ' J111, 'Cott o•.•thi NN ACT 01` .+1 USA` 111-"r 1870. •■• '. /hz24/&//,`,/,/ hz/z/ 'Lee /If,/ /I ere, /,./eee7W/ oweri.ereow at, t /saw/ t-ttwt /4, tjeWfdAviiii,j.a/ evlivw/ eetft/e. rweaDeakialeigeligalitkat„. ,‘,/•c•-*/11,74•1**It•***. czoCizroleapc.zq3c.„w3.z...% , tn 6575800 /ere: e, ;levee/ e.1 le /4,4,, (-,./ e/ -4/ eitie/ hie/AA, le-///e /eel", ie., /;;/ / e•fee// // ./Ae ‘file-eivee:ee, eoy, eel /2/. ,//7=7"772, %//77 1/ ./: e,leVerefe,4 je/ 11*.s; (4/ .. e/erl a* 751.4sit:/, J, e /. -, cv a Wit e/ ti/.5 /PA' / its /fife'', AieW/ei.9/ le? re /y/14,1/11 Yht DOB MI= • •.**-* ***-1**4 *-4 mczilat.aent= 46 January/February • Whole No. 247 • Paper Money Act of March 3, 1865 Amount authorized: Included in the $800,000,000 from the Act of June 30, 1864, and the Act of March 3, 1865, both for U.S. Treasury notes. Issued amount: $203,327,250. Interest: 6%. The $100 coupon bond bears the por- trait engraved by Owen G. Hanks. This bond is unknown; the illustration is from a U.S. Bond Detector. Act of July 14, 1870 Amount authorized: $300,000,000 and increased to $500,000,000 by the Act of January 20, 1871. Amount issued: $250,000,000 including the Acts of January 20, 1871, and January 14, 1875. Interest: 4 f%. The $1000 registered bond has the portrait engraved by Charles Burt. Currency Conservation & Attribution LLC To learn more about this holder: • go to • email us at • or mail us at CC'cYA LLC, P.O. Box 2017, Nederland, CO 80466 CC&A Paper Money • January/February 2007 • Whole No. 247 47 On This Date in Paper Money History -- Jan. 2007 By Fred Reed. Jan. 1 1780, State of Massachusetts Bay issues "inflation proof" post notes payable in flexible sums of money based on ratios to various commodities such as corn, beef, wool and leather; 1819, Burough of Norfolk, VA emits municipal scrip; Jan. 2 1879, U.S. Government resumes specie payments for paper currency; 1919, Private banking company, Bishop and Co. in Hawaii incorporates; Jan. 3 1991, Dealer and Texas Obsolete Notes author Bob Medlar dies; 2001, Currency Auctions of America sells Texas National Currency collection of Steve Ivy; Jan. 4 1777, Continental Congress' Resolution recommends States make bills of credit issued by Congress lawful tender in payment of public and private debts; 1842, First issue of Thompson's Bank Note Reporter issued; Jan. 5 1864, CSA Treasury Secretary George Trenholm reports on finances; 1996, Standard Catalog of United States Obsolete Bank Notes, 1782-1866 by Jim Haxby copyrighted; Jan. 6 1776, New York Water Works Colonial Currency (FR NY181-183) bears this date; 1929, Van Buren Studios releases animated short subject (cartoon) Wooden Money; Jan. 7 1782, First bank in United States, Bank of North America opens for business; 1862, Citizens Bank of Louisiana loans $325,000 to the Confederate government; Jan. 8 1816, Due to financial hardship from War 0)1812, Congress proposes a second Bank of the United States; 1931, First delivery of Series 1928A $5 USNs; Jan. 9 1790, Alexander Hamilton advocates assuming states' debts; 1868, College currency issuer Harvey Gridley Eastman patents an improved pen holder; Jan. 10 1855, John lay Knox becomes cashier of Susquehanna Valley Bank, Binghamton, N.Y.; 1935, Lee F. Hewitt's The Numismatic Scrapbook debuts; Jan. 11 1757, Treasury Secretary Alexander Hamilton (FR 1-5, 411 born; 1862, Leslies' Illustrated depicts a Confederate $10 Treasury Note; Jan. 12 1826, Committee appointed to consider establishing branch banks for Bank of England; 1862, Horatio Nelson Taft records in his diary that Treasury Notes are dis- counted 2-4% and gold is at a tour percent premium; Jan. 13 1842, Senator Thomas Hart Benton decries bankers as "red clogs" and banks as "Cairo swindling shops;" 1979, Eric Newman wins ANS Huntington Medal, first American since 1961, only specialist in U.S. series ever; Jan. 14 1790, Alexander Hamilton proposes paying national debt through sale of government bonds; 1875, Congress removes circulation limits on National Currency; 1936, L.M. Mario Giannini elected president of Bank of America; Jan. 15 1841, Bank of the United States resumes specie payments after 15 months suspension; 1975, Vernon Brown announces his intent to resign as SPMC Secretary; Jan. 16 1833, Artist and banknote engraver James David Smillie born; 1942, Actress Carole Lombard dies in an airplane crash on tour selling war bonds; Jan. 17 1826, Encased stamp issuer Chicago hotel proprietor John B. Drake born; 1863, Lincoln's special message to Congress urges passage of national banking legislation; Jan. 18 1862, Richmond Dispatch reports postage stamps are circulating as small change; 1887, Last stacked Treasury Signatures approved on plates of National Currency; 1995, Copyright renewed for "Banknotes," a song by Paterson, Kemp and Herd; Jan. 19 1821, Thomas Willing, first President of the Bank of North America and the Bank of the United States, dies; 1839, Republic of Texas authorizes treasury notes, $5-$500; Jan. 20 1878, Maryland Senate reports to Maryland House on the emission of paper money; 1801, Fire damages Treasury Building; 1814, Massachusetts Senate orders publication of consolidated statement of the 29 banks in the state; Ian. 21 1791, Alexander Hamilton urges both gold and silver coinage; 1793, Opponents of BUS accuse bank and Treasury Secretary Hamilton of corruption; 1851, Florida state legislature authorizes State Bank of Florida at Tallahassee; Jan. 22 1561, British essayist Francis Bacon, who wrote "money is like muck, not good except it be spread," horn; 1879, Last sheets of Lazy Deuce 1st charter Nationals issued; Jan. 23 1862, Louisiana authorizes state treasury notes; 1862, NYT reports Demand Notes to be made legal tender; 1903, Numismatic book dealer Frank Katen born; Jan. 24 1862, NYT reports S40 million in Demand Notes have been issued, with $500,000 additional issued daily; 1953, Paper money fan/ANA President Waldo C. Moore dies; Jan. 25 1815, NYC Common Council pays J. Hays $50 for detecting counterfeit municipal small change bills; 1845, Alabama liquidates State Bank of Alabama, destroys notes; Jan. 26 1863, John Sherman introduces National Currency Act in Senate; 1866, Man dressed as policeman robs bank porter in NYC of $3,000 in Treasury Notes and Nationals; Jan. 27 1817, Cincinnati Branch of 2nd Bank of the United States established; 1910, Story of Paper Money author Fred Reinfeld born; 1915, Sydney Noe becomes ANS Librarian; Jan. 28 1791, Alexander Hamilton reports composition of Spanish piece of eight to Congress; 1847, Congress funds treasury notes issued during War with Mexico with six-percent registered bonds; 2004, Canada unveils "Canadian Journey" 5100 note; Jan. 29 1761, Treasury Secretary Albert Gallatin (FR 183) born; 1863, CSA Erlanger Loan coupon bonds bear this authorization date; 1968, Treasury Order No. 212 mandates a new Treasury Seal; Jan. 30 1828, Treasury Secretary Rush reports to Congress on the amount of Continental Currency issued during the Revolutionary War; 1934, Congress passes Gold Reserve Act (31 U.S.0 440-445); currency no longer redeemable in gold; Ian. 31 1842, Congress okays one-year interest-bearing notes of $50 and up; 1913, Treasury , Secretary MacVeagh approves new George Washington $1 Silver Certificate; 4* WIMP i111111111"11411111/11111K111111115 ....A....A/ "A., / a,. SNOW WINNINIIPPIM/16•/A,. re. • //W../ • / Ay /A / • 9/ . 91 /1.VA7,„_4\,,.....• 441Bia=r74=004iitcrziAttic=mfoot.imic1/4=04ittri ,,,,milt.A <20000> ‘` e1:\ • ON- Ctlf.The 4.12 10009 tolvtAgit wria34,41k , innxiiinottr ..0,thkupit 4 tlugu. :11.iirtt6er/ 4 je6tItt A -141+10=14. 48 January/February • Whole No. 247 • Paper Money Act of January 20, 1871 Amount authorized: $200,000,000. Amount issued: $185,000,000. Interest: 4 '/2%. This $1000 coupon bond is similar to the preceding with minor differences. Act of July 12, 1882 Amount authorized: Indefinite. Amount issued: $305,581,250. Interest: 3%. This act extended the charters of existing national banks for twenty years. It also stated that except when bonds that secured the circulation were called in for redemption, a limit of $3,000,000 per month could be retired. This $10,000 bond has a portrait of Hamilton that has not been attributed to a specific engraver. Paper Money • January/February 2007 • Whole No. 247 49 On This Date in Paper Money History --- Feb, 2007 By Fred Reed c' Feb. 1 1862, City of Pensacola issues municipal scrip for 50-cents payable in specie; 1886, Final semi-annual payments on Louisiana "Baby Bonds;" 1936, U.S. Treasurer Azie Taylor Morton born; 1978, NASCA sells Paul Garland's Confederate bonds; Feb. 2 1819, Patent medicine vendor and Confederate currency facsimilist Samuel C. Upham born; 1863, NYT reports letter from Hon. Robert J. Walker to Sen. John Sherman on the certainty the national banking project "will give us a sound national currency;" Feb. 3 1468, Printer Johannes Gutenberg, who appears on NY obsoletes, dies; 1822, Counterfeiter William "Long Bill" Brockway born; Feb. 4 1811, Eighty "worthy" citizens of Pittsburgh protest substantial British ownership of Bank of the United States; 1974, Socialite cum bank robber Patty Hearst kidnapped by Simbianese Liberation Army; 1998, First Sri Lanka polymer note; Feb. 5 1794, Treasury Secretary Alexander Hamilton reports to Congress on the status of loans from BUS; 1863, Abraham Lincoln nominates John M.G. Parker to be deputy postmaster at New Orleans, in place of scrip issuer John L. Riddell; Feb. 6 1861, President-elect Lincoln writes check for 50 cents in payment of taxes on lot in Lincoln, IL before leaving for inauguration; 1940, Second series of New Zealand bank notes introduced; 1997, BEP resumes public tours after two months of renovations; Feb. 7 1804, America's richest man Senator William Bingham, key founder of the Bank of North America, dies; 1870, Supreme Court holds Legal Tender Acts unconstitutional; 1979, Smithsonian Institution unveils highlights from the Chase Manhattan Bank Collection; Feb. 8 1864, Richmond Examiner prints Treasury Secretary Memminger's report of Feb. 6th; 1875, Act taxes notes of state banks, towns, cities/municipalities & persons at 10%; Feb. 9 1864, Photograph of President Abraham Lincoln by Anthony Berger destined to he model for $500 Gold Certificates beginning 1882 and Series 1999/2004A $5 FRNs; 1866, Louisiana authorizes issue of post-war state treasury notes; 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; Feb. 11 1837, U.S. Supreme Court in Briscoe v. Bank of Kentucky (36 U.S. 257) validates a hank, even one 100% owned by the State, could issue paper money; Feb. 12 1862, Act of this date authorizes additional S10 million in Demand Notes; 1934, Export-Import Bank incorporates; 1963, First delivery of Series 1950D 520 FRNs; Feb. 13 1810, Banknote engraver George Murray receives patent for "mode of engraving and printing to prevent counterfeits;" 1834, Indiana charters State Bank of Indiana; Feb. 14 1862, NYT reports Senate in Committee of the Whole passes Treasury Note Bill 30-7; 1922, President Harding restores 17 of 29 BEP employees he'd sacked two weeks ago; Get back on Target. Zero in on your customer's interest. Put your logo in Paper Money here, Feb. 15 1791, Secretary of State Thomas Jefferson advises President Washington that the bill for establishing a national bank is unconstitutional; 1999, U.S. News & World Report says that North Korea uses same presses as BEP to produce bogus U.S. currency; Feb. 16 1659, Oldest surviving English check; 1875, Fourth Issue of Fractional Currency ceas- es; 1973, Independent Arbitrage Intl issues bearer notes denominated in "constants;" Feb. 17 1776, Continental Currency fractional issues proclaim "'Time flies ...;" 1899, U.S. Senate accepts John B. White's canvas "General Marion Inviting a British Officer to Share His Meal" on which a famous currency vignette is based; Feb. 18 1774, U.S. Treasurer William Clark born; 1842, Banks in Cincinnati resume specie Catching attention = catching caUShl Readers flock to this page; and see your logo. payments; 1875, Act prohibits national banking associations from issuing "any other notes to circulate as money;" Feb. 19 1858, Pennsylvania charters Philadelphia Numismatic Society; 1980, Introduction of S2305 to OK printing $1 bill backs "by a method other than the intaglio process;" Feb. 20 1817, Leading banks in NYC, Philadelphia and Richmond resume specie payments; 2002, A Financial History of U.S., 3 vols, by Jerry W. Markham copyrighted; 2002; Towson, MD resident arrested for spending genuine 52 bills; Feb. 21 1861, CSA Treasury Secretary Memminger's tenure begins; 1921, REP Director Jim A. Conlon born; 1967, The Early Paper Money of America by Eric Newman copyrighted; Feb. 22 1819, McCulloch v. Maryland argued before the U.S. Supreme Court; 1864, Rochester, NY artist H.J. Kellogg sends President Lincoln a painting of a U.S. Treasury Note and requests "appropriate recompense" should Lincoln like to keep it; Feb. 23 1816, Ohio banking law creates a "brood of vipers," 12 bank hatchlings; 1876, Last Fractional Currency issued; 1996, Treasury Secretary Joseph W. Barr dies; Feb. 24 1841, British Post Office officially transfers funds by money order; 1862, Facsimile Confederate Treasury Note illustrated in Philadelphia Daily Inquirer; Feb. 25 1813, Congress authorizes interest-bearing 5100 treasury notes; 1866, NYT reports arrest of William Garnont and Herman Lochman for $500 in counterfeit FC; Feb. 26 1777, "Baltimore" Continental Currency (FR CC55-62) bears this printed date; 1797, Bank of England issues first one-pound note; 1867, Kansas authorizes Military Scrip; 1913, Treasury Secretary MacVeagh instructs BEE to redesign U.S. currency; Feb. 27 1787, Inventor of the geometric lathe Cyrus Durand born; 1866, James MacDonough patents an improved ink for bank note printing; 1933, Lewisburg Grain Elevators cir- culates depression scrip with multiple images of Abraham Lincoln; Feb. 28 1860, William C. Price becomes U.S. Treasurer; 2005, NY Historical Society exhibit "Alexander Hamilton: the Man Who Made Modern America" exhibition ends; .1. 90% AKE INDEBTED UNTO THE NEARER IN THE SIIKOF 01411T1111114eili tit! I)DII • 11,4, Oe////////.//r/./r//14,/./4/ yrier. / / /4////, h/. // / • /, /•-•-/// h• //////, It ////,, /kW/ /r/h rl,;////r h///,.. ,41.,,/ //0////,/ /.. /v//////////i /1/ /4, „1/4/4.///r i, /7/. /////////'//.././.. ...A. /h. ///y/../4/.761./ /////r/./. Ol/e. e/V11, //eh ////11/re 1,/ im4 41,1„.< ,.////yht/i„, tv /Ye. / le 11/.////,,d/ //,// ti1/// Ir//////: . //4../..e//x. .4/6/7 ./////` ..///.7/4./ /// tr./4 Jnn ./(// ////. /Y../ /4,/ , r///0/1/r/// re/11/o ,.., / 4SPECiatif,Ny //,.//,e:///s , /// /a/////.// ,///971;./y// ty; ///,.4 1,1/1 b////r/rX,// r e/l/ tf////(// /VA/ 1/4 , 1911 SUN 77310 c , f11.1.111,1210l 50 January/February • Whole No. 247 • Paper Money Act of June 13, 1898 (Spanish-American War) Amount authorized: $200,000,000. Interest: 3%. The $1000 coupon bond has the portrait engraved by Charles Burt. The figures of Agriculture and Forestry were created by Walter Shirlaw; they were engraved by Charles Schlecht. Sources Hessler, Gene. An Illustrated History of U.S. Loans, 1775 - 1898. Port Clinton, OH: BNR Press, 1988. Hessler, Gene. The Engraver's Line. Port Clinton, OH: BNR. Press, 1993. C TRIKE A COLLECTOR Li and mention "Lazy Deuce" and she'll probably think of First Charter S2 Nationals. Notes wear this arrest- ing moniker because of the "2" poised on its side over half the note's face. While the nickname gives these notes sex appeal, this engraving conceit was functional because the motif made it more difficult to raise the $2 to say, S20. Those Nationals were pikers, however, judged by this overall "Laziest Deuce" engraved by Danforth & Hufry for the Hamilton Bank, North Scituate, RI. This large numeral also resided on an Albany, NY note that I'll write about when Paper Money has its "Albany" issue! • The "Laziest Deuce" of Iamittou Rauh Leslie Deerhil United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: www.executivecurrency.corn (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail: 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.corn website: 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 conserva- tive 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 You are invited to visit our web page For the past 8 years we have offered a good selection of conservatively graded, reasonably priced currency for the collector All notes are imaged for your review National Bank NoteS LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM KYZIVAT (708) 784-0974 P.O. Box 451 Western Sprints, IL 60558 E-mail Paper Money • January/February 2007 • Whole No. 247 51 ton's G FRENC American verte des t (the Arne LEGAL HISTORIAN, WRITING ABOUT THE business corporation, said, "C'etait la plus grande decou imps modernes, au mere titre que la vapeur et l'ectricite." "It By Iowa CONIPAG NEW-YORCK. ACQUISITION fiats anT P.y1R RE CH RS S N I S ., de deux cent mills acres de tares ir dipetraFt440) '"-:.1,Vilgru'es furs le corn de Callorland , fituees dans ChatdeNew-lOrck, conzte de Montgomery. fir :tes lards du lac Ontario if de In rivilte Black, pat atie du arid .179,7. N.`7 (0g, COUPON DIVIS. L E Porteur, , au coven do payement ete:Fru/ du prix de l'Aalion entiere, dont to pr/Icnt Coupon fait porde, eft propri6taire, en vertu dudit Coupon, du Lot di vis dui iacherra en portage au --,—--- tint dans ('emplacement de la premiere vitle qui fern projet/e fur to terrain de la Compagnie, quo dans les deux mille Lots de cinquante acres chacun, qui doivtalt former to portage de la propriac: divife de cent mide acres, I:dim: partie de facqui- lition lus-6nonc6e, d'apres le mode d6termin6 par fa/le d'6:tabliiiment de ladite Compagnie, en date do 2 8 join 1793, dont on quadruple cli relic :MN archives de la Compagnie, & an autre fern enregillr/ & d6p0I6 en to s ille de New-Yorck. c o. :Non. Cc Cvup.m fera Ichave cant,: unc diciarcnian terS 41,7 d41VranCe da La. .10914;,31 Cortmdfair.. Direaeur. Vu, conforiii6nent audit adt du .28 juin 1795. (Acid 52 January/February • Whole No. 247 • Paper Money modern times, as important as steam power and electricity." Indeed, if it wasn't for the legal device of the business corporation, how would the founding fathers of free private enterprise have ever been able to put together the great amounts of capital needed for our giant enterprises? Alexander Hamilton invented the business corporation as we know it, and Stock in Compagnie de New-Yorck John Marshall's Supreme Court of 1819 gave it a firm infrastructure. Before (sic), Paris, 1793. 1789, when the Constitution became effective, the United States had a handful of corporations, but they were British, which meant they were pro bow public() (for the public good). The British took incorporating very seriously, so the corpo- rate charter first had to be passed as an Act of Parliament, and then had to be signed and sealed by the King. Typical corporations of the colonial period included: • Mayor Alderman & Sherrife, according to the Customs of England in other of his Majesties Corporacons [sic], of the inhabi- tants of Manhattan Island (1665); • Overseers of the Poor in the town of Boston (1772); • The Overseers of the publicke schoole [sic] founded in Philadelphia, at ye request, costs, & charges of the people of God called Quakers; • The President and Society for the Propagation of the Gospell [sic] in New England (1649). By 1819, however, the American business landscape had perhaps several hundred bust- Paper Money • January/February 2007 • Whole No. 247 53 ness corporations. A good number were banks, including the First Bank of the United States (our only national bank) and The Bank of New York (our most important state bank). AN ACT Hamilton played a leading role in establishing both of these. .170 INCORPORATE THE SUBSCRIBERS There was, therefore, a great deal of interest among the incorporating class when TO THE Dartmouth College v. Woodward came up for decision before John Marshall's Supreme Court. In its decision on that case, the Court Interim held a corporate charter to be inviolable. A charter could not any longer be amended or canceled by the very public power which had granted it in the first place. Dartmouth College fire 3n5utance Company. z). Woodward is the "Magna Carta" of our cor- porate barony, even though the actual case had nothing at all to do with a business corpo- -..,131.1slita) FROM A CERTIFIED COPY ISSUED FROM THE OFFICE ration. Woodward was the Governor of New OF THE SEC ItETARy OF THE COMMONWEALTH, Hampshire, and Dartmouth was a charity school for Indians. In 1819, Dartmouth College had already had succeeded in incorporating his Native American charity school (which he named after a principal benefactor, the Earl of Dartmouth). According to its by-laws, the college corporation J810. was directed by a board of 12. These 12 also had the privilege of naming their successors and/or replacements. The 12 controlled An early American corporate charter the corporation into all eternity. In this, the Dartmouth Board rather resembled for the American Fire Insurance a modern Board of Directors, who are rarely embarrassed from performing in Company, 1810. like fashion by the nondescript stockholders. The sovereign state of New Hampshire attacked this privilege provided for in the by-laws. New Hampshire passed a legislative act amending the corporation's private laws and increasing the Board to 21; New Hampshire proposed to name the extra nine. Dartmouth sued in the state courts to prevent this. Dartmouth lost and appealed to the Supreme Court. There was great interest in the case. Business and established pro Bono publico corporateers realized the importance of the basic issue presented: If Dartmouth's corporate charter and private laws (the by-laws) were vulnerable to governmental supervision, so were theirs. Only six judges sat the Supreme Court bench in those days of low-cost government (and they rode the federal circuit when they were not in session). Princeton University, Incorporated made two of the six honorary Doctors of Law, presumably so they would be better judges. Harvard University, Incorporated improved the same two (Brockholst Livingston and William Johnson) with the same degree from Harvard. Harvard also made Justice Story, Chief Justice Marshall's good friend, a member of the College Corporation Board. Justice Story later became a Professor of Law at Harvard. The Court's decision reversed British law. The decision established the so-called "American doctrine"—that a corporation cannot be directly con- lived 50 years as a corporation. In 1769, after 15 PHILADELPHIA. years of trying, the Reverend Eleazer Wheelock .'TINTED by JOHN IIINNs Franklin Court, Market Streot, Supreme Court Associate Justice and Merchants Bank of Salem, MA president Joseph Story. 11To. z This certifies ) that 7/-`Ce.- Proprietor of Share No. 4/j.. . of the TI II n M CIIUSETTS TURNPIKE, CORPOR AT1ON ; which Share is trans- ferrable by nifignment on. the back of Ibis Certificate ; the lame be- ing Awed and faded by inch Proprietor, acknowledged b‘rfOre fame ,7u,/lice f the Peace, and recorded at length, by the Clerk of the Proprietors, in a book kept for that pulpofe. IN tellunony whereof, the feal of the Corporation is here- unto aped,. the 4,-,./:;://: day vc . . in theYear ()four LORD, 6. "16,(1 .-."44!efel!": CerteeP -i ti ..;11 e - Z:,:. 7;e; ;2;" 9 C.:/. /,6,-- "2' .7 Le- /SI-74C d'Ot. -1 2'. ' • t ::. ., 54 Pr f,';clent A . Stock in the 3rd Massachusetts Turnpike Corporation. June 20, 1797. January/February • Whole No. 247 • Paper Money trolled, through modifications of an existing charter or by-laws, by the public power. Among the most important (prop- erties of a corporation) are immortali- ty...and individuality. They enable a cor- poration to manage its own affairs, and to hold property...Because the govern- ment has given it the power to take and hold property in a particular form, and for particular purposes, has the govern- ment a consequent right substantially to change that form, or to vary the purposes to which the property is applied?...The objects for which a corporation is created are universally such as the government wishes to promote. They are deemed beneficial to the country; and this benefit constitutes the consideration, and, in most cases, the sole consideration of the grant...The benefit to the public is con- sidered as an ample compensation for the faculty it confers, and the corporation is created. If the advantages to the public constitute a full compensation for the faculty it gives, there can be no reason for exacting a further compensation, by claiming a right to exercise over this artificial being a power which changes its nature, and touches the fund, for the security and application of which it was created. The court found a Constitutional basis for this position, holding that a corporate charter was a contract even if it did not look like one. The Constitution protects the sanctity of private contracts; it prohibits the states from passing any law impairing an existing private contract. This is plainly a contract...within the letter of the Constitution, and within its spirit also...It is more than possible that the preservation of rights of this description was not particularly in view of the framers of the Constitution...yet it must be governed by the rule. The Court then appealed to charitable sentiment, blithely ignoring the wave of profit-making incorporations already rolling over our landscape. Religion, Charity and Education are in the law of England, lega- tees or donees, capable of receiving bequests or donations in this (cor- porate) form...Are they of so little estimation in the United States that contracts for their benefit must be excluded from the protection of words, which in their natural import include them?...All feel that these objects are not deemed unimportant in the United States. The interest this case has excited proves they are not...The acts of the legislature of New Hampshire...are repugnant to the Constitution of the United States;...The judgement of the State Court must, therefore, be reversed. Justice Story, who moonlighted as the president of the recently incorpo- rated Merchants Bank of Salem, MA, spoke more to the point. Perhaps so there would be no mistaking the generality of the decision, he extended the principle of corporate inviolability from the Dartmouth College Corporation eastward to the sea—to the Merchants Bank of Salem. Paper Money • January/February 2007 • Whole No. 247 55 * * * * * * * * * * * * * * * ******** * * NUMISMANIA RARE COINS * P.O. BOX 847 -- Flemington, NJ 08822 * * Office: (908) 782-1635 Fax: (908) 782-6235 * * Jess Lipka, Proprietor ** *p t 4,. 4 Pi raRR 1)14' .. st 4 , * ',, „t „I, i;ti n 17=7;+,:a,,,,„ r,357 * G30 9 * „...,,,,. A. ...• GC ”,.1.17324.1Y. 7 ** ( rt * _ * _____!..-:: OF .,_ N,fm ,,„ Q,(tatta‘ ,.,,,,„,,,, u, ,.„....,* , ....„,.......4 „, ,,.„-. „.-4,-,.„., ,: - ..,E.,,,,-04..A ,),-;. ,,„,,ih's3_ ,... ..,A..:,;-,- ea 1 ■ a —/ /....:... ,..., ,-. • .J., •:, ,:z...:0;- * * * * * * * * * * * TROPHY NATIONALS * * *Buying All 50 States, Territorials, Entire State and * * * Regional Collections, Red Seals, Brown Backs, 4idT Statistical Rarities, New Jersey. * * * Also Buying Coin Collections and Type * * ** NO DEAL TOO LARGE! ** ********************** * * ** *NOBODY * *PAYS MORE BE IT K NOWN, that is a Subscriber to the 56 MACIIIPOSIX NAVIGATION, inthe Slate of licrojersty, fur air( S in the First Subscription, tran■ferable only on the Books of said Conibany, in Person, or is Aitarrny, and Mat on (d, dee Payment of the several Instalment, as called for by Order of Lies .UL, Novrs, not Exceeding Ion Dollars an each Share, ,4 1-_e,.; will be entitled to the afi,eesaiil Stock. 1805. President ofitrc Board of Directors. Countersigned by Treasurer. Ten shares of Machiponix Navigation issued to Andrew Bill. September 17, 1805. January/February • Whole No. 247 • Paper Money Justice Story added these remarks: A bank, whose stock is owned by private persons is a private corporation, although...its objects and operations partake of a public nature. (Note: It was always under the mask of public interest that our early business corpora- tions claimed the corporate cloak. They inevitably described themselves in the pream- bles to incorporating legislation as do-gooders akin to churches, colleges, poorhouses, etc.) The same doctrine may be affirmed of insur- ance, canal, bridge and turnpike companies. In all these cases, the uses may, in a certain sense, be called public, but the corporations are pri- vate. A misunderstanding about the term 'pub- lic' has led to the proposition the government should have the right, as trustee of the public interests, to regulate, control, and direct the corporation, and its funds, and its franchise, at its own good will and pleasure. This cannot be. Such an authority does not exist in government. After Dartmouth College v. Woodward, entrepreneurs who had squeezed corporate charters for private business through state legislatures by sweeten- ing them up with marmalade of public interest could breathe easy; those char- ters could not be canceled. The virtues of our competitive system are such that states began to compete for the corporate charter business. States such as New York, which first began to grant only limited duration charters after the Dartmouth decision, either gave up the fight or lost the incorporation busi- ness to New Jersey, the Delaware of the 19th century. Today, any American who can pay a modest franchise tax and filing fee can get a corporate charter, which is legally as valid as the kind George III used to put his seal and ribbon on. To be sure his private corporation bears only formal resemblance to General Motors, General Tire, General Electric, or General Telephone. Since Justice Marshall and his associate justices made their pronounce- ment, longevity has become as inherent a property of the corporate jugger- naut as inertia of matter. Adolph Berle, Jr. calculated the life expectancy of a large corporation to be some 900 years—close indeed to Methusaleh's recorded 963. Few large corporations ever vanish, for self-perpetuation is the real purpose of the corporation become institution, as it is of every institu- tion. When the tobacco corporations felt their existence threatened by the Surgeon General, they went into other businesses. The corporation must sur- vive even if the business purpose it once represented is gone and forgotten. A thousand years from now, if banks have become places of worship as Samuel Butler predicted in Erebwon, the depositing congregation will be singing "AT&T, dey live nine hunnert year." Skeptics please note the Bank of The Manhattan Company and The Bank of New York still have their corporate charters. Editor's Note: Howard Brod (Harvard College '39, Harvard Business School '41) had 25 years of senior marketing experience before becoming a consultant specializing in new product marketing and turnarounds. Recognising and honoring the life and legacy of Alexander Hamilton on the bieentennial of his death because or his standing as ace of the most influential Fonnding Fa tlu rs of the thinned States. IN THE HOUSE OF REPRESENTATIVES .1-ULY 12. 200-I Sir. l'ASCREI.1, submitted the follosaing enncurrent resolution, which won referred to the Committee on Government Reform CONCURRENT RESOLUTION Reeog,nizing and honoring the life and legacy of Alexander Hamilton on the bicentennial of his death because of his standing as One of the most influential Founding Fathers of the United States. 108TH CONGRESS H. CON. RES. 4712D SESSION Paper Money • January/February 2007 • Whole No. 247 57 108TH CONGRESS 2D SESSION H. CON. RES. 471 IN THE HOUSE OF REPRESENTATIVES, JULY 12, 2004 Mr. PASCRELL submitted the following concurrent resolu- ion; which was referred to the Committee on Government Reform CONCURRENT RESOLUTION Recognizing and honoring the life and legacy of Alexander HIamilton on the bicentennial of his death because of his standing as one of the most influential Founding Fathers of the United States. Whereas Alexander Hamilton dedicated his life to serving his adopted country as a Revolutionary soldier, aide-de-camp to General George Washington, Representative to the Continental Congress, member of the New York State Assembly, first Secretary of the Treasury of the United States, and Inspector General of the Army; Whereas Alexander Hamilton was a poor teenage immigrant to New York from the West Indian Islands of Nevis and St. Croix; • Whereas in the early days of the Revolutionary War Alexander Hamilton was commissioned as a captain and raised and trained his own New York artillery regiment and served valiantly in the battles of Long Island and Manhattan; • Whereas Alexander Hamilton quickly captured the attention of General George Washington who made him his aide-de-camp and confidant throughout the most difficult days of the Revolutionary War; • Whereas in 1781, Lieutenant Colonel Alexander Hamilton of the Continental Army led a bold attack of New York troops during the siege of Yorktown, the decisive and final battle of the Revolutionary War; • Whereas in 1782, Alexander Hamilton was elected as a member of the Continental Congress from New York; • Whereas as a private citizen Alexander Hamilton served many phil- anthropic causes and was a co-founder of the New York Manumission Society, the first abolitionist organization in New York and a major influence on the abolition of slavery from the State; • Whereas Alexander Hamilton was a strong and consistent advocate against slavery and believed that Blacks and Whites were equal citi- zens and equal in their mental and physical faculties; • Whereas Alexander Hamilton was one of the first members of the founding generation to call for a convention to drastically revise the Articles of Confederation; • Whereas Alexander Hamilton joined James Madison in Annapolis, Maryland in 1786 to officially request that the States call a constitutional convention; • 'Whereas Alexander Hamilton was elected as a delegate to the Constitutional Convention of 1787 from New York, where he played an influential role and was the only delegate from New York to sign the Constitution; • Whereas Alexander Hamilton was the primary author of the Federalist Papers, the single most influential interpretation of American constitutional law ever written; • Whereas Alexander Hamilton was the most important individual force in achieving the ratification of the Constitution in New York against the strong opposition of many of the delegates to the ratify- ing convention; • Whereas Alexander Hamilton was the leading voice of the founding generation in support of the controversial doctrine of judicial review, which is the backbone for the role of the Supreme Court in the constitutional system of the United States; • Whereas on September 11, 1789, Alexander Hamilton was appoint- ed by President George Washington to be the first Secretary of the Treasury; • Whereas as Secretary of the Treasury Alexander Hamilton salvaged the public credit, created the first Bank of the United States, and outlined the basic economic vision of a mixed agricultural and man- ufacturing society supported by a strong financial system that would underlie the great economic expansion of the United States for the next 2 centuries; • Whereas Alexander Hamilton was the leading proponent among the Founding Fathers of encouraging a strong manufacturing base for the United States in order to create good paying middle-class jobs and encourage a society built on merit rather than class or skin color; • Whereas in pursuit of this vision Alexander Hamilton founded The Society for Establishing Useful Manufactures which in turn found- ed the town of Paterson, New Jersey, one of the first industrial cen- ters of the United States; • Whereas Alexander Hamilton proposed and oversaw the creation of the Coast Guard for law enforcement in territorial waters of the United States; • Whereas in 1798, President John Adams called upon Alexander Hamilton to raise an army in preparation for a possible war with France and, as Inspector General of the Army, he trained a power- ful force of well-equipped soldiers who were able to help deter war at this vulnerable stage in the founding of the United States; • Whereas throughout the founding era Alexander Hamilton was the leading advocate of a strong national union led by an efficient Federal Government with significant protections for individ- ual liberties; • Whereas on July 11, 1804, Alexander Hamilton was fatally wounded in a duel in Weehawken, New Jersey at the hands of Vice President Aaron Burr; and • Whereas Alexander Hamilton died in Manhattan on July 12, 1804, and was eulogized across the country as one of the leading visionaries of the founding era: Now, therefore, be it Resolved by the House of Representatives (the Senate concurring), That Congress (1) honors the great importance of the life and legacy of Alexander Hamilton to the United States of America on the bicentennial of his death; (2) recog- nizes the tremendous significance of the contributions of Alexander Hamilton to the United States as a sol- dier, citizen, and statesman; and (3) urges the people of the United States to share in this commemoration so at to gain a greater appreciation of the critical role that Alexander Hamilton had in defense of America's free- dom and the founding of the United States. Background: Alexander Hamilton by Charles Willson Peale 58 January/February • Whole No. 247 • Paper Money Paper Money will accept classified advertising on a basis of 156 per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbrevia- tions, figure combinations and initials count as separate words. No checking copies. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribu- tion to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues = only $20.50! 2007 Exciting yet Challenging! I hope you all had a great holiday season and were ful- filled and fulfilled the lives of others around you. We ended the year of 2006 at the PCDA show in St. Louis. It was a good show and the hobby seems to still be on a high. The floor traffic was slow on Saturday, but Friday seemed a good day. We had probably 20-30 people at our general member- ship meeting to give us feedback on our new educational ini- tiative. Wendell did the first presentation at FUN and I am sure he did a great job. Some asked us to develop grading standards. I maintain that the goal and mission of the SPMC is to "educate, not dictate." In other words, we hope to give collectors the tools to look at and scrutinize notes and there- by interpret the grade and price, as well insuring that the note is genuine and has not been assisted in its appearance. I think this is a great initiative and I look forward to taking it further. Also at the meeting, I asked for input from the members and except for the desire to have regional meetings west of the Rockies (which we will begin to investigate immediately), it seems the collector base is satisfied with our direction. If not, please let me know. On a side note—the Eric Newman museum opened and one of our hoard mem- bers visited it and said it is great, well worth the trip and encouraged everyone to go see it. We owe a debt of grati- tude to Mr. Newman for this great opportunity he has given the hobby. By the way, Eric (SPMC #9) is one of the senior members (along with Roy Pennell, SPMC #8, and Hany Forman, SPMC #13) of our organization. I see 2007 as exciting because I don't see the hobby falling off and think it will maintain its momentum. I also say it will be challenging. I say this for two reasons. First, we have to act to make sure the momentum stays high. Exhibit, give lectures, write an article—all things all collec- tors can do. The second reason I think this will be a chal- lenging year is that our hobby is on what I see as a precarious slippery slope. I see the highs, but also see some cooling down and the real potential that many new collectors are buying holders and grades and not notes. I fear that when they try to turn these notes over, they will get far less than they paid and therefore get discouraged and leave the hobby. I think the best way to ensure this does not happen is to pro- mote our new educational initiative and teach collectors how to insure they get what they are buying. I was asked if I was presiding over the death of the society. I really feel that I am not. While our membership growth is flat, that seems to be the standard in all of numismatics. Whether this is due to less disposable income or less time to devote to hobbies, I don't know, but I think if we all work and promote our hobby, it will grow and only get stronger. We are only as good as our members and I challenge you to do something to further promote it! Benny 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 (246) BOOKS ON U.S. & FOREIGN PAPER MONEY, Securities, Obsoletes, Bank F-listories, Nationals, Small/Large Notes, etc. Lists available. Sanford Durst, 106 Woocicleft Avenue, Freeport, NY 11520 Fax 516-867-3397 e-mail: (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 Woodclett 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 (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,, 425-706-6022 (244) KANSAS NBNs WANTED . Gooclland #14163, Olathe #3720, Pleasanton #8803. A.R. Sundell, Box 1192, Olathe, KS 66051 (246) COLLECTOR BUYING AND SELLING published U.S. National Bank Histories and other publications! Offer what you have; send your "Want List." Bob Cochran, PO Box 1085, Florissant, MO 63031 (PROUD SPM- CLM69) (252) AUTHORS RECEIVE FREE CLASSIFIED AD. Write now (PM) 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 11 81 62, Carrollton, TX 75051-8162 or (252) HUNDREDS OF PAPER MONEY MAGAZINES FOR SALE from before I became Editor back to 1960s & 1970s. I bought these filling sets. Fill your needs now. E-mail me & I'll sell you what I got! (252) 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. (248) OLD PAPER MONEY MAGAZINES FOR SALE! Great reading & research material. Five different copies from the 1960s and 1970s only $50. Multiple groupings available. e-mail first to Fred Reed at (252) AUTHORS RECEIVE FREE CLASSIFIED AD. Write now (PM) Paper Money • January/February 2007 • Whole No. 247 59 Official Notice: Nominations Open for SPMC Board THE FOLLOWING SPMC GOVERNORS' TERMS EXPIRE IN 2007: Wes Durand Fred Reed Rob Kravitz Bob Schreiner If you have suggestions for candidates, or if the governors named above wish to run for another term, please notify Nominations Chairman Torn Minerley, 25 Holland Ave #001, Albany, NY 12209-1735. 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, 2007. Biographies of the nominees and ballots (if necessary) for the election will be included in the May /June 2007 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. v WANT ADS WORK FOR YOU Money Mart ads can help you sell your duplicates, advertise your want list, increase your collection, and help you have more fun with your hobby. Up to 20 words plus your address in SIX BIG ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page opposite -- Send payment with ad Take it from those who have found the key to "Money Mart success" Put out your want list in "Money Mart" and see what great notes become part of your collecting future, too. (Please Print) ONLY $20.50 /YEAR ! ! ! (wow) L 60 January/February • Whole No. 247 • Paper Money Web test press named for first Treasury Secretary Hamilton Press prints both sides of FRNs By Michele Orzano Copyright 1994 Coin World, Sidney, Ohio USA 45365. Reprinted with permission from the August 15, 1994, issue of Coin World ( ). Above: Close-up of the plate used to FTER MAKING REQUESTS FOR TWO YEARS, COIN print the face of $1 Federal Reserve World finally got its first look at the Bureau of Engraving and Notes. Printing's $12.7 million web-fed currency system. Unfortunately, it wasn't running. Printing of the face of the notes begins The day Coin World visited, July 12, 1994, the 120-foot long press had been here. shut down for almost two months. According to James FI. Salter, acting manag- er of the web currency manufacturing unit, the last time the press ran was May 17th. Since then, web-fed press officials have been waiting for new plates to print Series 1993 $1 Federal Reserve notes. Those plates will bear the signatures of U.S. Secretary of the Treasury Lloyd Bentsen and U.S. Treasurer Mary Ellen Withrow. New plates for the sheet-fed presses took priority, according to Salter, who said he didn't know when to expect Series 1993 plates for the web-fed press. Salter, who served as manager from the time the contract was awarded in 1986 until the BEP took possession of the press in August 1991, began his work 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 1210 Winston, OR 97496 (541) 679-1002 ANA LIFE MEMBER 2247 MEMBER MANUSCRIPT SOCIETY 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: Member SPMC, PCDA, ANA $85 Check or Money Order Tennessee Residents add $7.44 sales tax Tom Carson 5712 N. Morgan LN Chattanooga, TN 37415 htcarson(ci! The Works of Raphael P. Thian Manuscripts from Duke Universihj Records and Correspondence of the Confederate Treasury Financial Extracts from the Confederate Congressional Records Five-Volume Thian Personal Collection: Confederate and Other Paper Money, Confederate Bonds and other Financial Documents History of the Confederate Flag and Seal Photographed, Digitized and Edited by George Tremmel, Bob Schreiner and Tom Carson 5,838 Searchable Pages on One DVD Requires Adobe Acrobat Reader 7 (included on DVD) Buying & Selling Quality Collector Currency •Colonial & Continental Currency •Fractional Currency •Confederate & Southern States Curren- cy • 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: Member: SPMC, FCCB, ANA Paper Money • January/February 2007 • Whole No. 247 61 January/February • Whole No. 247 • Paper Money62 Light mounted inside the web-fed press shines on plate used to print the back of the notes. This "sleeve" contains three 32-subject note plates that apply a 96-subject impression on the paper as it passes through. First stop is a vacuum unit that removes loose particles from the paper. White arrow indicates the black vacuum tube beneath the paper. with the BEP in 1972. The Alexander Hamilton press, considered by BEP offi- cials as a prototype model, was designed by Hamilton Tool Inc. of Hamilton, Ohio. The BEP said the purchase price of the press was $10.2 million. According to BEP officials, about "$2.5 million more has been spent on testing and developmental efforts" in addition to "costs normally associated with site preparation and installation." What makes the web-fed system different from the BEP's sheet-fed presses is that the back, and then the face of the note is printed on the same press as a web of paper passes over two chrome-plated copper printing cylinders of 96 subjects each. Salter said it takes three men to operate the equipment, and when in operation, is in use on only one shift. The process begins with a continuous roll of 25.5-inch wide paper thread- ing its way through various printing process stations tucked along the 120-foot- long machine. Rolls of paper for the web-fed press are 23,000 to 24,000 feet long, and weigh between 950-970 pounds. Approximately 400 feet of paper is thread- ed through the machine during a press run. The first stage in the process is the vacuum unit, which removes loose parti- cles from the web (paper). Then there is an optical camera to check for flaws, holes or tears in the paper. In addition, there is a mechanical detector that looks for any- thing in the web more than twice as thick as the web. There are also sensors to detect the moisture and/or dryness level of the paper as it is going through the unit. Salter said BEP officials have never had to add moisture at this stage. He said the paper is produced in a climate-con- trolled plant and stored in climate-controlled areas of the BEP, which helps control the amount of moisture it might absorb. After checking the moisture/dryness level of the paper and adding appro- priate moisture or drying the paper if necessary, the actual printing process begins. The paper comes in contact with the "sleeve" that contains three 32- subject note plates of the back of the note which then applies a 96-subject impression of the back of the note. Next comes a visual inspection by a camera synchronized with a strobe light to continuously scan the paper from side- to-side while the press is running to check on the printing quality. The camera is searching for evidence of too much ink, too little ink, or smears. The paper is then fed into a gas-fired oven which maintains a 280-degree web temperature. The paper is then cooled and the moisture level is checked and adjusted if necessary. The process is repeated to print the face of the notes. Once the printing of the front of the note is complete, the paper once again is checked for moisture level before being sent to the oven to dry. BANK NOTE REPORTER 7129 ST27.1C7727,fr,... 11C4,731313Patit214474ffe N295 -685.4 tib.fitrmviikcipamoilma.m IY1)135 TS 1 naba labium filillres. • • 558 Paper Money • January/February 2007 • Whole No. 247 63 You're Invited to the• 13th ANNUAL CHICAGO PAPER MONEY EXPO Featuring a Major Auction by Lyn Knight Thursday, Friday, Saturday, Sunday March 8-11, 2007 Crowne Plaza Chicago 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 * 85 Dealer Bourse Area * Paper Money Auction by Lyn F. Knight * Society Meetings * Educational Programs * Complimentary Airport Shuttle Show Hours Thursday, March 8 2 pm - 6 pm (Professional Preview — $50) Friday, March 9 10 am - 6 pm Saturday, March 10 10 am - 6 pm Sunday, March 11 10 am - 1 pm (Two-day pass valid Friday and Saturday: $5.00, Free Admission Sunday, Children 16 and under — Free) Hotel Reservations Please call the Crowne Plaza O'Hare directly at (847) 671-6350 and ask for rate code "MON" for the special Chicago Paper Money Expo rate of $112 S/D. Bourse Information: Kevin Foley P.O. Box 573 Milwaukee, WI 53201 (414) 421-3484 • FAX: (414) 423-0343 E-mail: kfoley2@wi.mcom January/February • Whole No. 247 • Paper Money64 As the paper nears the end of its run, an inspection unit has been installed which is the second module of an automated on-line inspection system, accord- ing to BEP officials. It was delivered last fall and is now undergoing a series of test trials. BEP officials say they expect the "developmental and full conversion to these systems to take about 10 years." A check is again made on the quality of the printing. If a particular section is bad, it is marked with a symbol recognizable by an automatic sort- ing machine under development by the BEP. Flawed notes are sent to the mutilation bin. Almost all of the rejects are over-inked or under- inked. If the notes pass inspection, they are sent upstairs to the Currency Overprinting and Processing Equipment that applies the black Federal Reserve Bank seals and four Federal Reserve numbers and the green Treasury seal and serial numbers -- called the overprint -- before the sheets are cut, stacked and packed for ship- ment. Notes printed on the web-fed press are easy to spot because of certain adaptations made for the press. Most significantly, the plate location number and face check letter have been eliminated from the face of the notes and the plate number on the back of the notes has been moved from the bottom of the E in ONE to the top. Salter said there are six major tension zones scattered throughout the machine that continuously monitor paper tension, two other areas that specifi- cally check face and back registration, and three moisture units. In addition to checking for printing quality and registration, equipment on the press will also detect whether a pollution control device is malfunctioning or whether the continuous roll of paper tears during the printing process, at which point it will automatically shut the press clown if it detects problems. Salter, who acknowledged that the depth of the engraving on the plates has been reduced in spots, but wasn't specific about where, said the press is still officially considered to be in the developmental stage, although the press has produced acceptable quality notes. Salter said the BEP is currently testing inks and paper on the press, which still requires some fine tuning. He said they want to make the optimum use of the 75-percent cotton, 25-percent linen paper used. Because the web-fed press uses moisture during the printing process, the wet-tensile strength is a prime consider- ation. According to Dennis R. Jacobs, assistant for technical ser- vices for the web-fed press, this is the only wide web press cur- rently using the intaglio method of printing. Jacobs emphasized that the intaglio printing requires different pressure on the press and different paper properties. Those requirements in turn call for tighter controls on the tension, moisture and dryness of the paper. France uses several web-fed presses that print single-note wide, but Jacobs said "this is the only operating bank note press that prints both sides in one pass." "The ink, paper and plates are all unique for this press -- it's all together unique," Jacobs said. Gas-fired oven, mounted above print- ing area, maintains a 280-degree web temperature to dry the paper after printing. The paper is then cooled and the moisture level is checked and adjusted if necessary. Below: Paper begins its journey through the web-fed press. 65 1.101WIT4.11): ATV.. 0174.1i1:1” 3 , CB 345858758 B2 a ,GB AL the Paper Money • January/February 2007 • Whole No. 247 • - • .... • ------ ------- " • - ----- • '"••• • . --The Stylish Secretary The Story of Secretary Alexander Hamilton's Portrait on the New $10 Note •. ........ .. ... • ........... , .. ...... .... .. „, . • • ^ * . . „ . ........ . ? . .....• . ... . .. WtTH THE UNVEILING OF• he Series 2004A $10 Federal Reserve Note (below) last year, the portrait of Alexander Hamilton, first Secretary of the Treasury, once again graces the face of the note. '41:S.1111■11eb...-••=... "19.7RS:11100.71en.711:51.. Portrait detail engraved by BEP Portrait Engravers Kenneth Kipperman and William Fleishell Ill, Series 2004A $10 Federal Reserve Note face. NUMBER OF DIFFERENT ortraits of our first Secretary of Three-cent postage stamp, 1957 Bicentennial of Alexander Hamilton's Birth. Portrait engraved by Richard M. Bower, 1956. January/February • Whole No. 247 • Paper Money66 the Treasury have graced U.S. currency. Hamilton's image first appeared on the $10 note beginning with the Series 1928 Federal Reserve Notes. The earliest use of the secretary's portrait, however, was on the $5 Demand Note, Series 1861. The new note was released March 2nd, but this portrait and the Bureau of Engraving and Printing have had a long association. To understand this associa- tion we must go back to an earlier peri- od and a different BEP product. Fifty years ago on Jan. 11, 1957, a commemorative postage stamp celebrat- ing the bicentennial of Alexander Hamilton's birth was issued in New York City. The Post Office Department commissioned BEP to design the stamp, supplying BEP designers with a portrait of the first Secretary. This article is based on exhibitions at the BEP facilities in Washington, DC and Fort Worth, TX surrounding release of the NexGen colorful $10 note. BEP's Curator, Cecilia Wertheimer and her staff prepared these exhibits, which are shared with Paper Money readers by Claudia W. Dickens, Manager, Division of External Affairs at the BEP. While nearly everyone in the BEP Historical Resource Center played some role in putting these exhibits on display, Barbara A. Bither and Colleen Hennessey, both of whom work for HRC under the Byther, Managing Collections, LLC contract, wrote the labels and captions and selected the topics as well as the contents of the exhibits. Ravinder Ganjoo pre- pared the images. Photos not otherwise credit- ed are courtesy of the Department of the Treasury, Bureau of Engraving and Printing. Engraved portrait of Alexander Hamilton by BEP Portrait Engravers Kenneth Kipperman and William Fleishell Ill, Series 1999 $10 Federal Reserve Note face. THE WINCHESTER BANK • nRSIIINII Me" Tr. ///// On© Donar/zE4.4.'4 ..firft, (i, 4.4it ■■•••.ve 1 WRAC NATION.IL CURROIC1717-1 .11- 7 uj jjacia,, .131,1,11LIEP- V387-1 W ""t PS*4;114 ...I With the a; Ar /,'- 11 . 7 • '// ///,/ / S,/ti) • )1.11144-241241 ILVILE k fa r( 4 el:1=Tel t" 1 1.9 TEN DOI is 111111121=1M111111111111111 111111=11111=1111111111MiyalIN SitiM111 10511111•1111111.1111 ■ C_ ■ An Invitation from The NEW HAMPSHIRE CURRENCY STUDY Project Q. DAVID BOWERS and DAVID M. SUNDMAN are involved in a long-term project to describe the history of all currency issued in the State of New Hampshire, as well as to compile a detailed registry of all known notes (whether for sale or not). Our area of interest ranges from early colonial times through the Revolutionary era, the state-chartered hank years (1792-1866), and the era of National Banks (1863-1935). This will result in a hook under the imprimatur of the Society of Paper Money Collectors, with help from the New Hampshire Historical Society, the Smithsonian Institution, and others. Apart from the above, David M. Sundinan is president of Littleton Coin Company and Q. David Bowers is a principal of A merican Numismatic Rarities, LLC, and both advertisers in the present book. For other commercial transactions and business, refer to those advertisements. The authors of the present hook, holding a MN' Series of 1902 $10 National Bank Note ,from IV'est Dery, New Hampshire. A typical NI I Obsolete Note, this from the Winchester Bonk. A Series of 1892 $10 Brous, Back from the Winchester National Bank. This same building MIS used for the Winchester Bank and ins succe.,m,r, the I Vinchester National Bank. Teller window circa 1910, Winchester National Bank I f you have New Hampshire currency orold records or correspondence relating to the same, or other items of historical interest, please contact us. In addition, Bowers and Sundman are avid collectors of these bills and welcome contact from anyone having items for sale. We will pay strong prices for any items we need! Visit Ole Ni I (:utiency Study Ptvject www.rilicurrencycont. rind a listing of New Ilampshire banks that issued (111Telle)% 11'1111 sample ellaptiTS, and mote. We look forward to hearing from you! The NEW HAMPSHIRE CURRENCY STUDY Project Box 539, Wolfeboro Falls, NH 03896 E-mail: info( (lin/re-mail win be linwarded to both maim.) Paper Money • January/February 2007 • Whole No. 247 67 AnnsInun: & lith llontor. Original source for portrait of Alexander Hamilton. Lithograph with tint stone by Armstrong and Co., fron- tispiece for George Shea's Life and Epoch of Alexander Hamilton, Boston: Houghton, Osgood and Co., 1879. Artwork for the 3-cent Bicentennial of Alexander Hamilton's Birth postage stamp, 1957, and the $10 FRNs Series 1999 and 2004A, designed by William K. Schrage, 1956. 68 January/February • Whole No. 247 • Paper Money rE ORIGINAL IMAGE CAMEfrom a lithograph after a full- length painting by John Trumbull locat- ed in New York City Hall. This paint- ing is also known as the Wierner por- trait. The lithograph was printed by Armstrong and Co. as thefrontispiece to George Shea's book, The Life and Epoch of Alexander Hamilton, published in 1879. Development of the stamp began in August of 1956 when John Underhill, a representative from the Alexander Hamilton Bicentennial Commission, requested, with the approval of the Post Office, that BEP prepare rough sketch- es, which were to include the portrait of Hamilton and Federal Hall in New York City. Bureau designers Charles R. Chickering, Victor S. McCloskey, and William K. Schrage each prepared mod- els for the bicentennial stamp. Schrage, who prepared the artwork chosen for the stamp, reversed the por- trait from the original lithograph. By August 20th William K. Schrage had completed the artwork for the portrait. On the 20th, proposed postage stamp designs were delivered to the Commission. ALEXANDER HAMILTON BI CENTENNIAL FEDERAL 1-i; U. S. POSTAGE 3( Paper Money • January/February 2007 • Whole No. 247 69 Artwork, 3-cent postage stamp, Alexander Hamilton and Federal Hall, Bicentennial of Hamilton's Birth, 1957. Designed by William K. Schrage, 1956, and approved for production. Above: Two photographic copies of rejected postage stamp designs, S- cent Alexander Hamilton and Federal Hall, Bicentennial of Hamilton's Birth, 1957. Designed by Victor S. McCloskey Jr. (top), and Charles R. Chickering (immediately above), 1956. Right: Model approving production of 3-cent postage stamp, Alexander Hamilton and Federal Hall, Bicentennial of Alexander Hamilton's Birth, 1957. Signed by Arthur E. Summerfield, Postmaster General. O F THE SEVERAL DIFFERENTmodels submitted by designers McCloskey, Schrage and Chickering, Schrage's was the one finally selected. Models from all three designers are illustrated. It was not until the end of October that the model was approved, and work on the die begun by engravers Richard M. Bower and George A. Payne. By December 10th, plates were certified and printing began. First delivery of completed sheets to the Post Office Department was on Dec. 27, 1956. In all of the models for the stamp, Hamilton and Federal Hall are included with the portrait, in two cases being reversed from the original design source to balance composition of the stamp. The inclusion of Federal Hall was important for it was the site of the first meetings of the Federal Government after the ratification of the Constitution in 1788. Hamilton served as the New York delegate to the Constitutional Convention in Philadelphia, and was one of the signers of the Constitution. IiittormAppAsiLmigN maiyoltiorpk,A "K 12345678 I. '1.2 (OP ;11'.1YZ41::i01-t . otrirr4:11011: 1 23(45678 A fLti-jjx• @ 70 January/February • Whole No. 247 • Paper Money E NEWLY RELEASED $10 Federal Reserve Note is based on the Series 1999 design concept. In 1998, Bureau designers returned to Schrage's 1957 portrait to create the new, larger engraving of Hamilton used on the Federal Reserve Note. Thus, the portraits of Hamilton, used for both Series 1999 and 2004A, comes from the same artwork and design source as the bicentennial postage stamp. During planning for the Series 1999 $10 note several designs were consid- ered including a different portrait of Alexander Hamilton. It was rejected because Hamilton looked far too young to be a states- man on U.S. Currency. This portrait is based on an 1865 Daniel Huntington painting after a portrait by John Trumbull. BEP Portrait Engravers Kenneth Kipperman and William Fleishell III engraved the portrait for the note. Important changes from the first series include the elimination of the concen- tric circles which had surrounded Hamilton's image, the addition of shoulders, and the movement of the portrait up into the decorative lathe work at the top of the note. Computer-generated, rejected face design concept for the $10 FRN, Series 1999. Design attributed to V. Jack Ruther and/or Peter M. Cocci, 1995, and back design concept A. Portrait of young Alexander Hamilton engraved by Thomas R. Hipschen in 1995 for the new $10 note, but rejected for use because the unfamiliar image of Hamilton was considered too young and dashing. Painting of Alexander Hamilton by Daniel Huntington after John Trumbull, circa 1847-1851. (Department of the Treasury) 2,F-dv-1 IrNM ■11),S,TATES OPAxw itittx Paper Money • January/February 2007 • Whole No. 247 71 0 ,102 41-1 ..575 Progress proof, $10 Federal Reserve Note, Series 2004A, face. Proof is from final die used for Series 2004A, before the shoulders and coat were added. Portrait engraved by Kenneth Kipperman and William Fleishell III, 2004. Above and below: Engraved proofs, $10 Federal Reserve Notes, Series 2004A, faces. A representation of Liberty's torch appears in metallic ink. c Y / - a' - 0 ■•••-avria O RANGE, YELLOW AND REDcolors have been added to the background. A rendition of the torch from the Statue of Liberty and the beginning line of the Preamble to the Constitution, "We the People appears in red behind the Federal Reserve and Treasury seals. Completed in 1884, the Statue of Liberty remains a symbol of freedom and democracy throughout the world. Her torch, an emblem of life and enlightenment, is the familiar icon that has become shorthand for both the larg- er figure and her deeper meaning. To the right of the former Secretary, Liberty's torch again is seen as a small engraved icon. Liberty, as an allegorical female fig- ure, has often been a source of imagery for earlier issues of currency, where she has appeared in classical garb accompa- nied by an evolving inventory of sym- bols. The Statue of Liberty has also appeared on our currency, notably on the backs of large size Federal Reserve Notes and Federal Reserve Bank Notes. Above: Computer-generated back design concept B for the $10 FRN, Series 1999. Notice differences from the accepted design below. Below: Approved model for the Series 1999 $10 Federal Reserve Note, face and back, signed by Secretary of the Treasury Lawrence H. Summers. 72 January/February • Whole No. 247 • Paper Money AS A COMPLEMENT TO THE, portrait of the first Treasury Secretary, it is only fitting that the back of the note includes a vignette of the Department of the Treasury building. This view is the same as the one used for the Series 1999 note, but the building's surroundings have been made more nat- ural with clouds replacing concentric lines of the previous series. This image of the Treasury build- ing is based on an engraving done by Louis S. Schofield in 1923 from a pre- World War II photograph. BEP Portrait Engraver Christopher D. Madden engraved the Series 1999 vignette of the Treasury building on the reverse of the $10 note. Also contribut- ing to the back design was BEP Letter Engraver Gary Slaght. Why is Alexander Hamilton so important that he would appear on so many United States notes over nearly a century and a half? His legacy remains an indelible imprint on our money and our times. Tilut.INEMP$10401*BE 0000 4 261 A E5 BE 00004261 A .1 OA -9Ft 5101,' (AMU SWEN alsVPRIMEN GB34589875 B - GB 345898758 B2 Paper Money • January/February 2007 • Whole No. 247 oil nil: - IT #41=mitio 73 LLD u ir. shik.72- D,*-"416a, it FaNpus FarieFrqser statue depicts LrfaLaj; Secretag New sawbuck backs portray Hamilton clearly By Fred Reed FOR EIGHT DECADESAlexander Hamilton has shared a distinction with Abraham Lincoln. Each appears on BOTH the face and back of modern small size U.S. cur- rency. Lincoln's portrait on the $5 face and his shadowy appearance between columns on the Memorial back is widely known. In fact, Lincoln's dual appearance is a standard trivia quiz answer. However, our first Treasury Secretary's dual presence on $10 bills is less well known. The reasons for this oversight are easy to explain. Like Lincoln, Hamilton's back image is in the form of a statue, but unlike the Great Emancipator ensconsced in his Greek temple on the Mall, Hamilton's free- standing bronze is on the south plaza of the Main Treasury Building. In the past Hamilton has been easy to overlook because the angle of the source model L.S. Schofield used for the Treasury engraving when small size currency was introduced poses the standing figure against a backdrop of foliage. The engraver attempted to lighten this backdrop, but it takes a dis- cerning eye to find Hamilton. Unlike the 1929 and later notes which show the Treasury's Greek-revival south face from the southeast, these newer 1999-date FRNs depict the edifice's south plaza head on. Thus, Chris Maden's closeup, full-face engraving shows the statue larger and in greater detail on its sunny south plaza location. The heroic-sized Hamilton statue is the work of sculptor, coin and medal designer James Earle Fraser. A member of the Commission of Fine Arts during the post-WWI era when much of the adornment that graces the Nation's Capital was produced, Hamilton was Fraser's first great public commis- sion, followed by many federal projects in succeeding years. Fraser's Hamilton bronze was dedicated on May 17, 1923, with President Harding and Treasury Secretary Mellon present. Art historians have labeled it the finest freestanding single sculpture in the federal District of Columbia, a city daz- zling with artistic ornamentation. According to tradition, a bit of mystery shrouds this statue. At its dedication, President Harding mentioned a donor, but did not reveal his/her identity. "News reports," according to one source, "attribute the statue to a veiled woman who was reported to have donated the funds." This donor's identity is still unknown. Interestingly, Fraser also sculpted the companion heroic- sized bronze statue of our fourth Treasury Secretary Albert Gallatin (right), which graces the opposite, north plaza of the main Treasury Building. 74 January/February • Whole No. 247 Paper Money t .1110y Russell Roberts .,, cir Ar 0 :// tilka C:r.tbe,r 4.0 E.;, i .e. I/. I I, . -.: / c ", - 4771 7 7 I .7.7'2 7 (( ‘7/' Ill'''. if' I' le/a I7 at aotz,(4; 4ct el vi°,.. .v - , , o u. I z. / 1, :: 01.6c/t3 of ,...)A1 e,'")/... 7 . (°,1 ii) ; a i i[O - 7/ ti,/, 071, /1 a t ayine,71 ,/, Lti - / o :. (:, ,1,.:.?Y• - : ,/, I . i agtO :,;_°_-_---)' ,,,..,,- f: ..,•,-' ,,,,, I,: z_vvt. lne,7114 , o,..1.,;:ie .°,' ),),,, s7:. , t2 -„" „ ,a ac 'or Hi .-- , .. oz/ ( i / (i, ihe ,, ,, a t '--( (t. oc Ira, v 1 „f. , :------) - ) -- ° , pi ., / i 1, i . ,/ pa I: o ot lild JC Idlil cicfy of .. ecc Tao? . °, , on v: ?,,,z0(146111u e507., ,C1Z, IICZ/21C T CO C-' ovi2 ,...) ; 1 i,. : / !rev on ' e, „ i. e .„ o' ))1-,,,