Paper Money - Vol. XLVII, No. 5 - Whole No. 257 - September - October 2008

VOL. XLVII, No. 5, WHOLE No. 257 WWW.SPMC. ON. E Y Forrest Daniel writes about small Treasury Notes of the War of 1812 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC's, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money .. . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. • Hosts the Please visit • Encourages • Sponsors the Money Convention, • Publishes several of these booklets • Is a proud PCDA annual National and World Paper Money Convention each fall in St. Louis, our Web Site pcdaonline.com for dates and location. public awareness and education regarding the hobby of Paper Money Collecting. 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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 • September/October • Whole No. 257 321 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLVII, No. 5 Whole No. 257 September/October 2008 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: www.spmc.org FEATURES Small Treasury Notes of 1815: A Prototype Circulating Currency By Forrest W. Daniel Series 2006 $5 FRN changeover stumps ye olde Editor By Derek Moffitt Forrest Daniel contributed to SPMC in many, many ways By Fred Reed New catalog for card fans On This Date in Paper Money History By Fred Reed Authors present new works at 5th annual SPMC authors forum More photo highlights from Memphis FCCB celebrates 25 years Stunning Eric Newman Museum hosts CSNS symposium SPMC Thanks 2008 Tom Bain Raffle Sponsors NEWSSOCIETY 367, 323 349 353 359 369 386 388 390 392 394 Information and Officers In Memoriam Thomas M. Flynn, 1929-2008 By John and Nancy Wilson Death claims J. Roy Pennell, past SPMC president, publisher By Fred Reed President's Column By Benny Bolin Money Mart New Members SPMC 2007-2008 Donors Acknowledged SPMC 2008 Award Winners Saluted SPMC Board Meeting June 28, 2008 minutes SPMC Treasurer's Report SPMC Editor's Report What's on Steve's Mind Today? By Steve Whitfield The Editor's Notebook 322 351 357 377 377 384 395 395 396 397 397 398 398 SOCIETY OF PAPER MONEY COI .1 ..ECTORS INC. 322 September/October • Whole No. 257 • Paper Money Society of Paper Money Collectors The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The annual SPMC meeting is held in June at the Memphis International Paper Money Show. Up-to-date information about the SPMC, including its bylaws and activities can be found on its web site www.spmc.org . SPMC does not endorse any company, dealer, or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed by the letter "j," which will be removed upon notification to the Secretary that the member has reached 18 years of age. Junior members are not eligi- ble to hold office or vote. DUES—Annual dues are $30. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world add $10. Life membership — payable in installments within one year is $600, $700 for Canada and Mexico, and $800 elsewhere. The Society has dispensed with issuing annual membership cards. but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join as available. Members who join after October 1 will have their dues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in a fall issue of Paper Money. Checks should be sent to the Society Secretary. OFFICERS ELECTED OFFICERS: PRESIDENT Benny Bolin. 5510 Bolin Rd., Allen, TX 75002 VICE-PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 SECRETARY Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 TREASURER Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 Bob Cochran, P.O. Box 1085. Florissant, MO 63031 Pierre Fricke, Box 52514, Atlanta, GA 30355 Matt Janzen, 3601 Page Drive Apt. 1, Plover, WI 54467 Robert J. Kravitz, P.O. Box 6099, Chesterfield, MO 63006 Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 Neil Shafer, Box 17138, Milwaukee, WI 53217 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 Jamie Yakes, P.O. Box 1203. Jackson, NJ 08527 APPOINTEES: PUBLISHER-EDITOR Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati. OH 45231 ADVERTISING MANAGER Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 LEGAL COUNSEL Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR Frank Clark, P.O.Box 117060, Carrollton, TX 75011-7060 PAST PRESIDENT Ron Horstman, 5010 Timber Ln., Gerald, MO 63037 WISMER BOOK PROJECT COORDINATOR Bob Cochran, P.O. Box 1085, Florissant, MO 63031 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING ti • CSA and Obsolete Notes • Auction Representation • •CSA Bonds, Stocks & • • lo • O. dp 60-Page Catalog for $5.00 Financial Items • •• • Refundable with Order HUGH SHULL ANA-LM SPMC LM 6 SCNA P.O. Box 2522, Lexington, SC 29071 BRNA PCDA CHARTER MBR PH: (803) 996-3660 FAX: (803) 996-4885 FUN Paper Money • September/October • Whole No. 257 323 Small Treasury Notes of 1815 A Prototype Circulating Currency Supplementing The Financing of the War of 1812* by Forrest W. Daniel (deceased) SPMC Charter Member #121 Foreword The Small Treasury Notes of 1815 were the first attempt by the United States governmment to issue a circulating paper currency. Their issue came only after a desperate attempt to finance the War of 1812 by borrowing money alone. Because taxes were not levied immediately to pay off those loans, sales lagged; so to make up for the deficiencies in borrowing, one-year Treasury Notes bearing interest were issued from the time of the first Loan in 1812. The Small Treasury Notes bearing no interest were issued in 1815, after the war was over, into a period of monetary instability. The state-chartered banks had suspended specie payments in most of the country and their bank notes were at great discount. The government was not able to withdraw its own funds deposited in those banks in money acceptable at par at any distance from the issu- ing bank. The Small Treasury Notes in denominations $3, $5, $10, $20 and $50 were receivable for all dues to the Federal Government according to the text; they were payable to bearer in fact (although not so stated) and were acceptable for currency usage throughout the nation. Although not a legal tender, the Small Treasury Notes served the nation as a circulating medium of exchange for anyone willing to accept them. Public journals of the clay said they were welcomed by the people and circulated at par in most of the country. This study concentrates on the intricacies of the preparation and circula- tion of the Small Treasury Notes. Treasury Department correspondence has been sifted for some of the human interest quirks behind the preparation, ship- ping, handling and storage of the notes before they were issued to the public, as * Winner of 2002 SPMC George W. Wait Award 324 September/October • Whole No. 257 • Paper Money well as disbursement to government fiscal agents. Here is some of the inside story of the Small Treasury Notes known only to officials at the Treasury Department. But first related here is the struggle to obtain funds to finance the war effort and maintain the commerce of the nation. Many money lenders were unwilling to lend their money to the government, so many of the bonds were sold at a discount, more than doubling the cost of the war. The suspension of specie payments by the banks removed much of the value of their bank notes. Those conditions set up the need for a viable, circulating national paper money. The Small Treasury Notes were issued to fill that void. Part I Introduction and Background The United States went into the War of 1812 without the power to levy any internal taxes to pay for the war. The same would be true for the Mexican War and the Civil War, as it had been for the Revolutionary War. By the time Congress did get around to levying taxes the war was nearly over, and by the time the bulk of the tax money became available the war was over. Congress believed the war could be financed through loans alone, and that was the course it attempted to follow. Had Congress provided, from the first, for taxes to repay the loans, rather than basing them only on the faith of the nation, their sale might well have been less difficult. But as it was, there was serious opposition to the war from mercantile interests in the Northeast, represented largely by the Federalist party. The very people who were best able to provide the funds were opposed to the war. As a result the treasury was forced to sell its bonds at great discount, even to the point of offering additional annuities to the purchasers. Ultimately the people had to pay $80,000,000 plus interest for the near- ly $34,000,000 of hard money received from the loans. I The actual monetary cost of the war was more than doubled because of opposition to the war in Congress and out, difficulty in borrowing money, and ineptitude in the execu- tive department, especially the treasury. Lack of a standing army and an officer corps composed only of elderly Revolutionary War veterans did not inspire a great out-pouring of national faith in the war; that did not help either. There were some major naval victories, however, which sustained national honor. From the beginning, Congress had doubts about the success of the first loan it proposed to finance a new military and naval force. Its legislation pro- vided for an issue of Treasury Notes to fill any deficiency in case receipts fell short of the goal. 2 Those Treasury Notes, especially the later Small Treasury Notes of low denominations, were the prototypes of later United States govern- ment paper money. Federal paper money was not issued on a permanent basis until 1861. Doubts about the stability of paper money remained from the disas- trous depreciation of the Continental Currency of the Revolution and some of the state issues of the Confederation period. Those doubts were stated clearly in the Congressional debates; but Treasury Notes became an important factor in the financing of the War of 1812. It had been clear for a number of years that war was inevitable; the question was when and with whom. The United States had come to blows with France in 1799. Later, during the presidency of Thomas Jefferson, a naval building program was enacted, but it was plagued with inefficiency and cost over-runs. Jefferson did not wish a war and made every effort to avoid it. The Napoleonic wars in Europe brought great prosperity to American shipping interests. Neutral American commerce became the dominant force in European trade, but that prosperity brought the risk of capture by war ships of the belligerents. Those raids extended even into American coastal waters. Treasury Secretary Albert Gallatin Paper Money • September/October • Whole No. 257 325 Depredation of American ships by the British and French forced retaliation by the United States. An embargo of all trade with Europe in the fall of 1807 brought ruin to American commerce. With the ships held in port the government had little income from import duties and had to resort to borrowing money in 1810. The embargo was partially lifted by a non-intercourse act in 1809 which prohibited trade with Great Britain and countries under French control; it also provided for lifting restrictions on trade with those countries if they ceased violating neutral rights. The difficulties continued. American ships and cargoes were confiscated and sold by the French and the British added the impressment of sailors from American ships to serve in the British navy. By the time war was declared in 1812, the British had seized more than 900 American ships and the French more than 550. 3 When it reached the point of war, British trade restrictions and impressment of American sailors became the overt excuse and England became the enemy. Eleven days after Congress declared war on June 18, but before the news reached England, the British government revoked the orders in council which had been the chief source of grievance to America. That action would have per- mitted resumption of trade between the two nations, and immediately after its passage large quantities of merchandise were shipped from England. On arrival those goods produced duty income to the United States of about $5,000,000, an unexpected windfall at the beginning of the war. Treasury Management All was not well at the Treasury Department and President James Madison had neither the power nor the will to place the department in capable hands. That caused a great deal of difficulty in financing the war. Secretary of the Treasury Albert Gallatin had seen the prospect of war several years before it broke out. He suggsted levying taxes to build up a defense fund, but his warning went unheeded. At the outset of the war he suggested that enough tax revenue be raised to meet the expenses of the peace-time establishment plus interest on pre- sent and future loans. The cost of the war could then be met by borrowing money. Gallatin's proposal met stiff resistance in Congress, even from his own party. General Samuel Smith, (Maryland) Democrat leader in the Senate, was strongly opposed to Gallatin. Even though Gallatin's power was nearly gone, President Madison refused to replace him. With the nation on the brink of war, Gallatin had been secretary for twelve years and he was the best man for the job. 4 In September 1812 Count Romanzoff suggested to John Quincy Adams, American minister at St. Petersburg, that the Emperor of Russia was willing to act as mediator to help settle the differences between the United States and England. A formal invitation came in _March 1813. The United States jumped at the chance for a meeting, sending Albert Gallatin and James A. Bayard, a promi- nent Delaware Federalist, along with Adams to St. Petersburg before determin- ing that any such negotiations were even possible. England declined the offer of mediation in St. Petersburg, preferring direct negotiations with the Americans later at Ghent in Belgium. 5 Negotiations finally began on August 7, 1814, but it was more than four months before agreement on a treaty was finally reached on December 14. When Gallatin was sent to St. Petersburg early in 1813 William Jones, secretary of the navy and Philadelphia shipping merchant, was named acting sec- retary of the treasury; a post he held from May 1813 to January 1814. Jones' lack of qualification for the position was emphasized when he upset regular treasury procedure with his own rulings. He did, however, suggest that revenue be raised by taxation, but Jones did not press the issue, shrugged, and said Congress could do as it saw fit. 6 Treasury Secretary Alexander J. Dallas September/October • Whole No. 257 • Paper Money Madison might have replaced Jones with a stronger personality but Gallatin did not resign the secretary's post when he went to Europe. Getting the negotiations underway took longer than expected and Gallatin finally resigned early in 1814. The man Madison believed best qualified for the trea- sury post, Alexander J. Dallas, a Pennsylvania lawyer and political activist famil- iar with the financial community and a confidant of Gallatin, could not have been confirmed at that time since both senators from his home state were opposed to him. Senator George W. Campbell of Tennessee, who had served as chairman of the House Ways and Means Committee, became secretary. Campbell, too, could not handle the job. "Jones was too ignorant, and Campbell too weak, to grasp boldly questions of finance." 7 At last, in October 1814, the senators from Pennsylvania agreed to accept A. J. Dallas as secretary of the treasury. He gave fresh impulse to the war in the few months it lasted after his appointment. 8 Bumbling in the Treasury Department cannot be blamed for all the monetary woes during the war. In the face of impending hostilities the Democrat majority in Congress dismantled what would have been a source of funds during the war and a stabilizing influence in the post-war period--The Bank of the United States. The bank was a creation of the Federalists and had bitter enemies from the first in spite of its success. The Bank of the United States With the establishment of the federal government under the Constitution, Secretary of the Treasury Alexander Hamilton, a Federalist, sub- mitted a plan for a "financial institution to develop the national resources, strengthen the national credit, aid the Treasury Department in its administra- tion and provide a secure and sound circulating medium for the people. 9 In 1790 he sent Congress a report on a national bank There was opposition from the minority Democratic party, which held the belief that the power to create banks, or any corporate body, had not been expressly delegated by the Constitution to Congress, and therefore was not possessed by it. Democrat Thomas Jefferson said it did not fall within the implied powers of Congress since the bank would be an expedience, not a paramount necessity. Hamilton's views prevailed; the Bank of the United States was incorporated on February 25, 1791. The capital stock consisted of 25,000 shares of $400 each, payable one- fourth in gold and silver and three-fourths in public securities. The government took one fifth of the shares, $2,000,000, paid in ten installments. The govern- ment's shares were sold in 1796, 1797 and 1802 at advances of 25, 20 and 45 per cent. Eighteen thousand shares of the bank's stock were held abroad and 7,000 in the United States, a point which became important when the bank was liqui- dated after twenty years of successful management. 10 Albert Gallatin listed the advantages to the government provided by the bank to be: (1) safe-keeping of the public moneys; (2) instantaneous transmission of the public moneys anywhere in the nation; (3) increased circulation to facilitate collection of revenue; (4) loans to the government. Another service to the nation provided by the bank was an issue of notes which were payable on demand in gold or silver at the bank, or at any of its branches. Notes of the Bank of the United States were receivable for all pay- ments to the United States government. 11 When time for the renewal of the bank's 20-year charter came near, its Democrat opponents were in control of Congress, but the prediction of dire consequences which would follow dissolution of the bank softened some of the 326 Paper Money • September/October • Whole No. 257 327 opposition. Foreign ownership of a majority of stock in the bank was not the great objection to the bank that it might have been -- those shares had no vote in its management -- rather, it was the high rate of interest paid by Americans to foreign countries. The final vote not to re-charter the bank was delayed until only eleven days before the old charter was to expire. Even a grace period to wind up the bank's affairs was denied. The liquidation of the Bank of the United States began in February 1811, and while it did cause serious economic difficulties it proceeded without the disaster which had been predicted. It was the timing of the dissolution which caused much of the difficulty. The United States was approaching war with Great Britain, a war opposed by the Federalists and commercial interests who were advocates of the bank. It is likely the liquidation of the Bank of the United States contributed greatly to the difficulty in raising money for the anticipated deficiency loan of 1810. The loan was offered in the final quarter of 1810; had the Bank's charter not been in jeopardy, a simple borrowing would have eliminated the need for the bonds. At its suspension, the bank had to call in all of its outstanding loans. Even though the notes were short-term, pressure was placed on each of the borrowers to raise money elsewhere or face some losses. Money accumulated in such quan- tities that 70 per cent of the capital of the Bank was paid to stockholders by June 1, 1812, (the war began on June 18) and another 18 per cent by the first of October. That resulted in more than $7,000,000 of specie being withdrawn from the nation by foreign stockholders in the year before the war began. It also meant a loss of $15,000,000 in bank credits and a source for loans to the govern- ment. The recievability of notes of the Bank of the United States expired on March 19, 1812. Capital payments to United States stockholders in the bank and other available money flowed into two channels, both away from government securities. In New England, where opposition to the war was strong, specie in Massachusetts banks rose from $1,706,000 in 1811 to $7,326,000 in 1814. Other capital went The Bank of the United States 328 September/October • Whole No. 257 • Paper Money into organizing local banks; 120 were chartered within four years and the first big banking boom was on. 12 Notes for Part I 1. A. Barton Hepburn, History of the Coinage and CUITenty of the United States and the Perennial Contestfor Sound Money (New York, 1903), p. 79. 2. Act of June 30, 1812. A. T. Huntington and Robert J. Mawhinney, com- pilers, Laws of the United States Concerning Money, Banking, and Loans, 1778- 1909 (Washington, 1910), pp. 76-78; Albert S. Bolles, The Financial History of the United States, From 1789 to 1860 (New York, 1885), pp. 223, 224. 3. J. N. Lamed, History For Ready Reference, Vol. 5 (Springfield, 1901), p. 3455. 4. Bolles, pp. 220-222. 5. Lamed, Vol. 5, p. 3470; Donald R. Hickey, The War of 1812, A Forgotten Conflict (Urbana, 1989), pp. 119, 283- 284. 6. Bolles, pp. 294-296. 7. Ibid., pp. 296, 297. 8. Ibid., pp. 298, 299. 9. Larned, Vol. 3, p. 2257. 10. Ibid. 11. Ibid., 2258. 12. Ibid. Part II The War Loans With the Bank of the United States, the nation's "central bank," out of existence, large shipments of gold being remitted to Europe to repay stockhold- ers of the bank and American anti-war financiers squirreling their share of the money in their own banks, the United States set out to finance a war. The United States was without internal taxes. Since the establishment of the nation, revenue from import duties and levies on the tonnage of merchant ships had been sufficient to pay all expenses of government and make regular payments on the national debt. The embargo of 1807 cut so deeply into that revenue that the Treasury was forced to borrow $2,700,000 to pay the indebtedness due in 1810. That loan was repaid in 1811. 1 The Act of March 2, 1811, authorized a loan of $5,000,000. 2 That borrowing is not mentioned in the standard registers of loans of the United States. It is possible the liquidation of the Bank of the United States that year removed so much money from the market there were no free funds left to be subscribed for that loan. Occasionally more than one type of borrowing was made under a single authorization. The various loans floated during the War of 1812 will be listed. The Treasury Note issues which accompanied the annual loans will be discussed separately and in greater detail. Six Per Cent Loan of 1812 When the House of Representatives took up the matter of annual financing in February 1812, it appeared that ordinary expenses would amount to $1,200,000 more than the estimated receipts. Since the Treasury at the time had a surplus of $3,502,305.80, the deficit could easily absorbed. It was felt, howev- er, that the surplus should not be drawn down any farther. It was evident that war was imminent and a bill was introduced to CURRENCY A Division of Collectors Universe NASDAQ: CLC r The Standard for Paper Money Grading Paper Money • September/October • Whole No. 257 329 Protect Your Notes For the Next Generation When it comes to protecting your investment for future generations, there is no safer way than with PCGS Currency holders. • PCGS Currency is the only grading service that encapsulates notes in Mylar-D , the safest and best archival material for long-term storage • Our unique grading label and open-top holder allow notes to "breathe," thus preventing them from deteriorating due to lack of oxygen • The specifically designed tamper-proof label ensures the security of your notes Experienced collectors trust PCGS Currency — the leader in third-party certification. Call 800.447.8848 or visit www.pcgscurrency.com today, and experience the clear difference. P.O. Box 9458, Newport Beach, CA 92658 • (800) 447-8848 • Fax: (949) 833 -7660 • www.pcgscurrency.com 02088 Collectors Universe 7351111 I'M Arlylar-D is a registered trademark of DuPont. (No _ SIX PER CENT. STOCK OF 1812. UNITED STATES' LOAN.OFFICE, STATE OE 18 DO HEREBY CERTIFT, THAT is the Proprietor of Six per Cent. Stock, of 18 it, in 41:: the Public Funds of the UNITED STATEs, to the amount of ONE THOUSAND 44, r,k hearing Interest at Six per Cent. per dnnunt, from the day of inclusively; and that the Certificate thereof has been cancelled, and the account for said Stock debited therefor in the books of this office under this date; which sum is transferable to the credit of the said in the books of by WARRANT from the Secretary of the Treasury. ,000 DOLL\ RS. COMMISSIONER. S,retaett ,f the Trraeury of the United State:, 330 September/October • Whole No. 257 • Paper Money 1812 Six Per Cent Stock, Hessler X67A increase the size of the army, to arm the militia, purchase supplies of all types to equip those men, as well as to build new ships and fortifications. The cost of those preparations was estimated at $11,000,000. A loan of that amount was authorized in March to pay those expenses. 3 When the subscription was opened in May, the response was discourag- ing. The South and wealthy New Englanders took comparatively little, and support was grudging elsewhere. The Philadelphia bankers were divided in their support. A Philadelphia firm representing foreign owners of $7,000,000 capital from the disolved Bank of the United States said their principals did not want to invest in the bonds, but would be interested in helping finance a rechar- tered Bank of the United States, which was impossible at the time. 4 The maturity of the loan was twelve years and it was redeemable at the pleasure of the government. Interest was 6 per cent and the loan was required to be sold at par. The amount sold at those terms was only $8,134,700. Final redemption of the loan was made March 12, 1833. 5 Temporary Loan of 1812 When the entire loan authorized on March 14 was not sold at the pre- scribed terms, the Treasury exercised its option to accept other terms. An addi- tional $2,150,000 of the loan was sold at par, on special contract, at various maturity dates specified by the contract. The final redemption of the Temporary Loan was made on June 28, 1817. 6 An additional $5,000,000 was authorized to be raised through Treasury Notes. Exchanged Six Per Cent Stock of 1812 The old Six Per Cent and Six Per Cent Deferred Stocks of 1790 7 were selling at a discount of two or three per cent. It was felt the discounted price might be a deterrent to selling current stock, so another issue was authorized to replace the earlier stock. Holders of the old stock, who chose to do so, could exchange it for the new issue on the same terms as the $11,000,000 loan. No money came to the Treasury from this transaction, but redemption of the old Discover... YOUR pot of gold IN FULL LIVING COLOR, too! Advertise in PAPER MONEY Paper Money • September/October • Whole No. 257 331 N'4311: ?`"; a Th, . 1:VITED STITES qf al' fISAig726, the meta qf "*..;01.1): 1- 0 DOLL 1, :, ' .1nnent, from the (lay of i or: tt,irri it, ph.: , . ' iturtiotittrr tf nit .11.i of Votti;-ress intssrli on. ihr 14th day 0. 1' ,thriTit. i ,', I .., eniiitca - .1a . ici ,,,: tot( c.i.-rt , riti it; h:141,,t ..tiithiotts ty• Imilare,, ,-. the l'rineiaal af which Slack is rrinthitri,tthlt. al (lir hi. at any (bar tfter Ihr lost (lay V. Dereinher, in (he urar I :I:21 ; which th ,ht ts t, t . othirtt hi this ,dii,.„ , h t ,,t , hithrurttorr ill purson, 4,1. hy attorney, at the popper alike, areureling I ,. MC 1 .1111. ow 1 Aril's iuhtitulcd ft,- . • 332 September/October • Whole No. 257 • Paper Money March 14, 1812 Six Percent Stock obligation was delayed until after the war. Under the act, $2,984,746.72 of the (Heritage Auctions) old stock was exchanged for new. 8 Sixteen Million Loan of 1813 While the Loan of 1812 passed with little reported debate, that cannot be said for the 1813 loan bill which came up early in the year, passed and was signed on February 8. Congressman Abijah Bigelow (Massachusetts) stated in a long speech that he had been opposed to the declaration of war and was still opposed to it since the reason for the war had been removed (revocation of the orders in council). He also felt the invasion of Canada was both morally and politically wrong, and that the manner of raising funds and distribution of the military forces were not adequate for the object envisioned. Bigelow lamented the loss of public credit and honor; he quoted Benjamin Franklin and others on the necessity of public credit as it was stated following the establishment of the nation. Amendments were proproposed to limit interest to be paid and the discount which might be permitted in case there was difficulty in selling the stock. Those changes were voted down and there was no restriction on interest and discounts. The loan was set at $16,000,000 and the term at a minimum of thirteen years. 9 Secretary Gallatin was able to float less than $6,000,000 of the total at 6 per cent, but more was needed badly. Gallatin turned for assistance to Alexander Dallas, who in turn consulted David Parish, who had banking connec- tions in Europe and Great Britain. The result was a Treasury Circular that eased the terms of the loan. 10 There was no set price at which the stock should be sold and there was a provision for a commission to sales agents not to exceed one fourth of one per cent on the amount they sold or obtained subscriptions. Without limit of interest or discount, the stock was offered in a lender's market. Two choices were submitted to the Treasury: That the lenders receive $100 of the 6 per cent stock for $88 of money, or that the same type of stock be sold at par plus an annuity for thirteen years of $1.50 per $100 of stock, payable quarterly. There was also a proviso that if any other stock was sold at other terms, the purchasers of the $16 Million Loan could have those terms applied to their stock if they so chose. The former terms were accepted by the Treasury. David Parish and Stephen Girard subscribed for half the loan and John Jacob Paper Money • September/October • Whole No. 257 333 "04,1010011040010.0100401,10104.0110:0•0' .. 400.0*0 10 c3.k:kalsocaototmv.o-vootlisk? , 'it3IXAXMUOSICAMO15, a 1[6 Z 10 ANNUITIES FOR TIIIIITEEN EANS. 1, 110.11 J INUARY 1, th■13. ) Treasury of arc United Sinks, Hrgisier's Ogee, 1816.0 • t BE 10:01VN, THAT there is p able by the U 000 STATES or ANERICA, unto St • tt8 • 0 ,,,:-/,/ -{ ,Yeziffri/ _1 -- --") ' -/,, 7 /I ::-*$ arter0 ie y ,, a.e.ittiet, the annual eum of idle, ......-- - _-.... , Dolls yearly pay ern,. from the beet day of jeee,e,..... Jai," until the thitiyAnd day of December, in the year iht:/.. brhtr, 0 An annuity ereateil in por,mance of the art of-Consycse. tiatoed February 8,, 04i;3, entitled - An ar t ,,,,,t,,,ri z i,,,z ,,,, 1,,,,,, ems' OIR for a ,tun not exceeding SIXTEEN NIMMONS OF DOLLARS ; uhieb annuity i, rerorileil in this &Nee. and ii.. ti, • .,,,, tratc.ferable only by appearance in permit, or by attorney, nt the proper tiiiire, according, the rub, and form, h ' Led S• LI ''-'i 0 .'9 fur that pu n., c • ♦ • •• ... • o• 4i.l. •• ••41',r •• •eA _, .• • • • • . • • • e 7 ^,. t N- e, , , ,,,.. Nt. IV.t.k.Ak . t: :ire,:ii7r7 M : * '\ \ ": ' --..,7' % '(:-41.C.4144.3,W,V3e(if.A4t4tfrittliVATCV=6174‘0CMCMCM/fVWC,,OV"05C1.,,5!'01C//' ///,///:;"(7/ Y.1% -)4, //X , 12/1/6r4V - / i/ .17,40(-7;'"&"/"Wifele,/l1;,,-;11, 4.1(V- '7•4:elH //' ./ •-• . Coitntersigned Trirwar,.. %Am.. $41% Wir, ItzifIlIFMWA"„ .. February 24, 1815 $5 and $10 (Heritage Auctions) ///:/../lel 0'. By January, 1817, $8,856,960 of 7 per cent stock had been sold on an issue of $3,392,994 in small notes; and $69,594 of small notes was still outstand- ing. 5 Sales continued until 1825, when $25,900 of small notes were converted to bring the total to $9,070,386.00. The last redemption of 7 per cents was in 1836. In 1880, $32.52 was still outstanding. 6 The circumstances into which the last Treasury Notes and Small Treasury Notes were issued was the most serious of the entire period. Even though peace had returned, economic conditions became worse because relaxed trade demanded a viable currency. The suspension of specie payments through- out the greater portion of the United States, and the consequent cessation of the interchange of bank notes and bank credits between institutions of the different states deprived the treasury of all the facilities for transferring bank credits from place to place. Letters in the treasury records tell of the need for small notes. Joseph Whipple of the Collector's Office for the District of Portsmouth acknowledged the receipt, on April 4, 1815, of a package of $5 notes directed to the Commissioner of Loans, and added, "Notes of that denomination would be peculiarly convenient & useful in this office for making disbursement in small sums during the present almost entire absence of specie, would bring Notes into Paper Money • September/October • Whole No. 257 367 On This Date in Paper Money History -- Sept. 2008 By Fred. Reed Sept. 1 1781, Continental Congress publishes Table of Currency Scale, Paper Money to Silver; 1903, U.S. ships first small size Philippine peso notes to Manila; 1975, Chile exchanges 1,000 escudos for one new peso; Sept. 2 1937, Princeton, KY Tobacco Festival issues wooden nickel flat; 1958, Act of Congress amends Section 474, Title 18 U.S. Code to provide for limited printing and filming of U.S. and foreign obligations and securities; Sept. 3 1866, Treasury Department approves Laban Heath using certain "cuts" for his counter- feit detectors; 1947, Chicago Coin Club members view film The Story of Money; Sept. 4 1841, Third Bank of United States closes doors; 1952, Numismatic novelist Laurence Dwight Smith dies; 1980, NASCA auctions Lyn Knight's obsoletes and ad notes; Sept. 5 1835, Treasury Secretary John Carlisle born; 1927, Fed Chairman Paul A. Volcker horn; 1986, Dire Straits "Money for Nothing" wins MTV Music Award; Sept. 6 1777, U.S. Treasurer Michael Hillegas (FR 1167-1173) appointed; 1893, Plate Printers Union of America unites 350 plate printers in D.C., Boston, NYC, Philadelphia; Sept. 7 1945, Special Allied Military yen notes issued for Korea, 1850, San Francisco private bank of Naglee & Sinton suspends operations in face of bank run; Sept. 8 1664, Dutch Governor of New Netherlands Peter Stuyvesant, who appears on obso- letes, surrenders New York to British; 1862, first day of issue for Postage Currency at New York City, 1865, First National Bank chartered in Oregon tENB Portland #1553); Sept. 9 1890, Comptroller of Currency orders overprinting of charter in upper right corner on Series 1882 Brown Back faces; 1864, College currency issuer Harvey Gridley Eastman patents his school room design; 1953, last delivery Series 1950 $100 FRNs, Sept. 10 1835, Encased stamp issuer Evansville, IN merchant Henry A. Cook born; 1930, Smithsonian Institution mounts "Liberty" exhibit; 1943, Abe Kosoff's Numismatic Gallery sale of Michael F. Higgy Collection ushers in modern numismatic market; Sept. 11 1850, European songstress Jenny Lind, who appears obsoletes, makes U.S. debut; 1911, keel laid down on USS New York (BB 34), shown on Battleship Note, large size S2 FRBN; 2001, Stack's postpones auction sale clue to tragic events of that clay; Sept. 12 1818, Tombeckbe Bank at St. Stephens, Alabama Territory, opens; 2002, BEP resumes public tours after one day observance of events of 9/11/01; Sept. 13 1862, Treasury Secretary Chase OKs new sealing and trimming machines; 1982, Currency Exchange Program computer program by Jacques P. Evans copyrighted; 2004, Princeton University Library names Alan Stahl Curator of Numismatics; Sept. 14 1923, D.W. Valentine's Fractional Currency book in press; 2001, Robert Hoge assumes duties as ANS Curator of American Coins & Currency; Historically since 1933, the largest purchaser of rare American paper currency ... CALL 888-8KAGINS Sept. 15 1837, City of Trenton, NJ issues scrip for 12 1/2 -, 15 - , 25 - , and 50 -cents; 1940, mob crime drama Crooked Money (a.k.a. While Thousands Cheer) debuts; Sept. 16 1861, British Post Office Savings Bank opens; 1861, New Orleans banks suspend pay- ments; 1892, Alabama Governor Thomas H. Watts, who appears on state notes, dies; Sept. 17 1868, Bureau of Engraving and Printing becomes official title for the currency produc- tion bureau; 1960, Cuba nationalizes U.S. owned banks, 1970, U.S. Treasurer Dorothy Andrews Elston marries Walter Kabis creating new currency signature; Sept. 18 1737, Collector and artist Pierre Eugene du Simitiere born; 1879, Philadelphia and Reading Rail Road Co. issues "Wages Certificates"; Sept. 19 1881, James A. Garfield, who said "whoever controls the volume of money is absolute master," dies; 1884, Neil Carothers, author of Fractional Money, born; Sept. 20 1877, Chase National Bank opens in NYC; 1996, European Monetary Institute receives Euro banknote competition designs; Sept. 21 1832, Bank of Scotland currency subject poet Sir Walter Scott dies; 1867, Register of Treasury Stoddard Colby dies; 1974, Virginia curency author Charles J. Affleck dies; Sept. 22 1789, Office of Postmaster General is established within the Treasury Department; 1983, Regan-Ortega combined tenure begins; 2000, Currency Auctions of America sells the Michael J. Sullivan Collection of bank histories; Sept. 23 1852, Artist John Vanderlyn, whose painting Landing of Columbus appears on First Charter $5 NBN backs, dies; 1956, United States Notes author Wayte Raymond dies, Sept. 24 1755, Chief Justice John Marshall (FR 372-375) horn; 1924, Inventor Elizabeth Magie Phillips patents enhanced board game, forerunner of Monopoly; Sept. 25 1981, Bob Medlar auctions Glen Smedley paper money collection; 2004, Oregon group circulates "River Hours" scrip in Columbia River gorge area; Sept. 26 1778, Continental Congress appoints Treasury seal design committee; 1820, Daniel Boone, who appears IL and KY notes, dies; 1996, U.S. Department of Justice charges Ponterio & Associates with bid-rigging at Christie's ABNCo archives auction; Sept. 27 1840, Political cartoonist Thomas Nast, who created "Rag Baby" image for greenback inflation, horn; 1912, Asst. Treasury Secretary Sherman Allen presents collections of CSA notes to public libraries; Sept. 28 1919, Harold Lloyd-Bebe Daniels screen comedy Soft Money debuts; 2000, BEP awards $25.4 million contract to De La Rue Giori to implement sheetfecl perfecting offset press technology; Sept. 29 1547, Author Miguel de Cervantes, honored on a Spanish 100-peseta note, horn; 1946, Philadelphia Federal Reserve Bank President Anthony M. Santomero horn; 2004, Canada releases its newlook $20 note; Sept. 30 1913, End of Napier-Burke combined tenure as Register and Treasurer; 1970, American Revolution Bicentennial Administration urges Bicentennial hack for pro- posed New Two; tt• 368 September/October • Whole No. 257 • Paper Money Table of duties imposed on goods, wares, and merchandise manufactured within the United States or the Terri- tories thereof, by the acts of the 18th of January and 27th of February, 1815. Articles. Rates of duty. Pig iron, bar iron, rolled or slit iron, per ton, - - - - -Castings of iron per ton, - -- Nails, brads, and sprigs, other than those usually denominated wrought, per pound, - Candles of white wax, or in part of white and other wax, per pound, - - Mould candles of tallow, or of wax other than white, or in part of each per pound, - Hats and caps, in whole or in part of leather, wool, or furs; bonnets in whole or in part of wool or fur, if above,two dollars in value; hats of chip or wood covered with silk or other materials, or not covered, if above two dollars in value,- - - - Uribrellas and parasols, if above the value of two dollars,- - - - Paper, -- - _ -Playing and visiting cards,- - Saddles and bridles, - .. - - - - Boots and bootees, exceeding five dollars per pair in value,• - - - Beer, ale, and porter, - - - - .. - -. Tobacco manufactured, segars and snuff, - - - - - Leather, including therein all kinds of skins whether tanned, tamed, dressed, or otherwise made,- . - - - - - - - Gold, silver and plated ware, and jewellery and paste work, except timepieces, - - I dollar. i dollar 50 cents. 1 cent. 5 cents. 3 cents. S per cent. ad val. 8 per cent. ad val. 3 per cent. ad val. 50 per cent. ad val. 6 per cent. ad val. 5 per cent. ad val. 6 per cent. ad val. 20 per cent. ad val. 5 per cent. ad val. 6 per cent. ad val. Source: American State Papers, Finance, Vol. 3, p. 20 circulation as a medium and remove the present objection to those of larger denomination... ." On June 21, $8,300 of small notes was sent from the U. S. Loan Office in New Hampshire to Whipple for use in his office. Benjamin Austin of the Loan Office in Massachusetts asked for $180,000 "of such denomi- nations as shall be most convenient, but including a portion of those of five and three dollars." 7 Constant Taber, Navy Agent at Newport, Rhode Island, had several problems. On September 11 he asked for notes of $3, $5 and $10 "as I cannot settle with those who have Demand for want of small notes." In October he asked for $4,000 on a Navy Warrant, ". . . be pleased to send me a part in small notes. The Brokers purchase tip the small notes fundable at 7 pct. and will not exchange the larger ones under 2 percent which creates a great deal of difficulty in paying small debts or making change for large amts." Taber expressed his frustration on February 8, 1816. "Please send me some small notes as it is more trouble frequently to make Change to pay small accounts than the Commission is worth." 8 Lieutenant Lyman Kellogg, paymaster of the U.S. Marines at Sacketts Harbour, New York, had a different problem in September, 1815. Before a shipment of Treasury Notes arrived he had to discount a draft at the Bank of Utica in order to make payments. When the $2,900 arrived, he asked advice on how to settle the business, and said he would return the notes awaiting advice and orders. 9 There were cases when specific instructions were sent telling exactly how the funds were to be received: Treasure Department 10 April 1815 Sir. Your draft of 25,000 Dollars for the Military Academy will [be] paid by a draft on the New York State Bank of Albany; but you will be pleased to direct the Paymaster to receive the amount in the notes of that bank, and not to assign the draft to any Bank ofthe City of New-York, as such an arrange- Paper Money • September/October • Whole No. 257 369 On This Date in Paper Money History -- Oct. 2008 By Fred Reed Oct. 1 1957, First processing of Savings Bonds by computer; 1990, Treasury will no longer honor checks more than a year old; 2004, ANA closes "Viva la Revolution!" exhibit; Oct. 2 1814, John Elliott Ward, who appears on Confederate 510 notes, born; 1982, Two Centuries of American Banking author and Smithsonian curator Vladimir Clain- Stetanelli dies; 1987, Disneyworld and EPCOT Center introduce scrip notes; Oct. 3 1776, Continental Congress specifies interest bearing certificates be printed in various colors to guard against fraud; 1964, Warner Brothers circulates paper "wampum' for release of James Stewart western Cheyenne Autumn; Oct. 4 1761, St. Louis banker and colonizer Moses Austin born; 1969, SPMC member and dealer Mary Herzog born; 2002, ANA debuts "Show me the Money: the Dollar as Art"; Oct. 5 1815, Bank of Pittsburgh issues scrip; 1892, Dalton gang bank spree ends in Coffeyville, KS; 1999, Roger Ferguson becomes Vice Chairman of the Fed; Oct. 6 1889, Fractional Currency author Frank Limpert born; 1950, BEP engraver Thomas R. Hipschen born; : Oct. 7 1964, Prodution of Series 1963 S20 FRNs with motto "In God We Trust" begins; 1970, Series 692 MPCs issued; 1978, International Bond & Share Society holds first meeting; Oct. 8 1967, BEP Director Henry Holtzclaw retires after 50 years total service at the Bureau; 1979, SPMC liquidates Paper Money back issues; Oct. 9 1781, "Swamp Fox" General Francis Marion, depicted on Confederate $100 note, receives the thanks of Congress; 1967, James A. Conlon becomes BEP Director; Oct. 10 1720, French government says "NO" to banknotes; 1867, John Jay Knox becomes deputy Comptroller of Currency; 1940, Banknote engraver Edwin Gunn dies; 1971, Banker and SPMC Charter Mempher William A. Philpott dies; Oct. 11 1809, Explorer Meriwether Lewis (FR 114-122) dies; 1819, Jacob Perkins receives English patent for anti-counterfeit Stereotype Steel Plate; Oct. 12 1837, Treasury notes issued under this act first to be printed with back designs; 1859, SF paper money issuer "Emperor" Norton orders Congress to dissolve; Oct. 13 1648, Earliest known English check 1862, Treasury contracts with Stuart Gwynn to supply security paper; 1982, BEP installs first mechanical note examining equipment; Oct. 14 1837, Richmond's Bank of Virginia begins emission of fractional shinplasters payable to "Henry Clay or BeareC; 1968, English language Treasury seal replaces Latin seal of Series 1966 5100 U.S. Notes; Oct. 15 1936, Barney Bluestone opens Syracuse Coin and Novelty Co.; 1947, Statue of Albert Gallatin at Treasury Building dedicated; 2003, post-Saddam notes introduced in Iraq; Historically since 1933, the largest purchaser of rare American paper currency ... CALL 888-8KAGINS Oct. 16 1806, Treasury Secretary William Pitt Fessenden (FR 539-548) horn; 1893, Engraver Robert Ponickau appointed to BEP; 2004, Lyn Knight sells John Whitney's currency; Oct. 17 1777, English general Burgoyne surrenders to U.S. general Gates (FR 464-464a); 1821, Photographer Alexander Gardner whose Lincoln portrait was engraved for bond use born; Oct. 18 1859, Dealer and Colonial and Continental Currency collector Henry Chapman born; 1862, Pro-Union Missouri government authorizes state Defence Warrants; 1972, Main Treasury Building declared National Historic Landmark; Oct. 19 1752, Benjamin Franklin explains kite flying electricity experiment (FR 479-492( to British scientific community; 1896, Treasury Secretary William Richardson dies; Oct. 20 1758, New Jersey Colonial Currency (FR NJ119-127); 1837, Pensacola issues munici- pal scrip; 2002, Publisher Chet Krause dismissed from firm he founded; Oct. 21 1862, Contractor Butler & Carpenter deliver first Certificate 2e revenue stamps; 1944, Treasury lifts regulations on currency circulation in Hawaiian Islands; Oct. 22 1780, Early banknote engraver Peter Maverick born; 2004, R.M. Smythe conducts first Herb and Martha Schingoethe obsolete note sale at Strasburg; Oct. 23 1964, Smithsonian Institution's Hall of Monetary History opens; 1993, Thomas Crawford's statue Columbia (FR 1-5) replaced atop Capitol after restoration; 1999, SPMC votes publication grant to Robert S. Neale for his book The Bank of Cape Fear; Oct. 24 1808, Banknote vignette engraver John Sartain born; 1862, Contractor Butler & Carpenter deliver first Certificate 10c revenue stamps; 1929, Black Thursday begins the Great Depression; 1979, Oklahoma Obsolete Notes author Maurice Burgett dies; Oct. 25 1861, Transcontinental telegraph makes possible transfer of bank funds across country almost instantaneous; 1897, Banknote vignette engraver John Sartain dies; 1960, U.S. Treasurer H. Theodore Tate dies; Oct. 26 1831, CSA note collector John Wiley Aulick born; 1981, Treasury resumes selling U.S. currency in sheets; 1989, Artist and banknote engraver John Hay dies; Oct. 27 1648, Massachusetts General Court votes to accept wampum strands at set values; 1856, U.S. currency designer Kenyon Cox born; 2003, DaVinci Institute and Forbes magazine stage the "Future of Money Summit" in Denver; Oct. 28 1823, Encased stamp issuer William Weir born; 1995, At SPMC Librarian Roger Durand's suggestion Board votes to have magazine professionally bound by year; Oct. 29 1616, Sir Walter Raleigh (FR 387-3931 executed by the British Crown for treason; 1892, Tromp l'oeil currency artist William Michael Harnett dies; 1935, French film The Last Millionaire released in U.S.; Oct. 30 1820, Banker and collector Herman Ely born; 1826, New York publisher Mahlon Day patents his bank-note list, counterfeit detector and prices current list; Oct. 31 1863, PMG Montgomery Blair tells Congress $392,499.82 in stamps used as currency redeemed/destroyed; 1985, Roger Durand speaks at ANS COAC; 370 September/October • Whole No. 257 • Paper Money 2 1`,. , 1 '• 1.4/6- ra A.---ck4 ; /1— 11-4- A La- 4ki" - 2 fr • tAi Holograph letter A.J. Dallas to Rob. Brent. (Forrest Daniel collection) Opposite: Transmittal Form for small Treasury Notes, dated May 17, 1815. (Forrest Daniel Collection) Receipt for countersigned small Treasury Notes, dated Jun 9, 1815. (Forrest Daniel Collection) meat has been promised by Mr. (Tomplerni ?) When he deposited the money. I am my respectfully, Sir, Yr abed ser A. :7. Dallas Rob. Brent Esq Paymaster General 10 Even though total revenues were sufficient, funds were often not avail- able to discharge debts where and when they were required. The money in the treasury consisted chiefly of bank credits in southern and western banks. In this situation the relative value of bank notes between states, and different areas of the same state, differed to a much greater degree than they had when there had been freer interchange. Discounts ran from seven to 25 per cent. Even the Treasury Notes were devalued relatively to local currency, in spite of the fact that the treasury was required to circulate them at par. Payments in bank paper were generally preferred to government paper, so when the goverment was unable to procure local currency at reasonable terms its bills went unpaid. Another difficulty was to make the payments equitable; so that no one received more or less than he should in relation to similar transac- tions elsewhere. The orders to the army, mentioned earlier, to make purchases in each area relative to tax receipts in that area was an attempt to spend the rev- enues, as nearly as possible, where they were collected. Paper Money • September/October • Whole No. 257 371 THE REGISTER returned the said Notes, coniticrsigned by hint. for the purpose rf bein' - • –!,.."--,. _ aeposited for safe keening in the Bank this 27 1"--. - Day of ,..--/-2"-7- . 1-44f). -- - - A .,(//z‘,,, .., 4_'- ',„.e-74-- ' - 4 (z--627i OFFICE OF PM' ANT DEPOSIT, 11 -.3 8 DWG TON, -717 Oliki,..4f, O$• ,Jost !n• NOURBE, Esq. for safe keeping in the Iron Chest, a Bundle described as follows: No. ...C/7 The within Packet contains 'small Treasury Notes The ammo hare been counted by us, and are, all 200.9 Notes of 8 a each — Dolls. /Oa e700 Na.,e0.0' - a No ,feci, a. b. c. 5 signed and countersigned Sealed -with tOfru:e Seal, Witness our Hands this TY de . 171E,A,SL ET DEP ARTNENT REGISTER'S OFFICE 1815 77IE Bundle above mentioned, containing small Treasury Notes, •Ve. a. b. c. and d. of delivered by us to nook. a No. was this Day as per his Receipt in the Register's each3 amounting to Dollars kkttr.CCNPt:745.7>itf OFFICE OF Pal" -IND DEPOSIT 6W.118HING 7Y).‘" .c9j.j. ,,, ,. ig / ilk —. . c..... ." 1Bundle ' 4p(V4tOtt.¢0- by JOSEPH NOURSE, i .,, eepng in the Iron. iiiiir . described as folio-illy- - 1 .,...) ---- ' ;2e_ ...-/. No. he witiiiii e contains small TreasuryTh Notes .7■10..,f, I a i i a 7No .tsoe a. b. c. ST d. .9.2 4,.., ....------_ . tit ,,e_ 4/.7e Notes of ,S-. - 8 sach; Doris. for safe .e.-44.----,11—t a , . ■Ci,--nts. Chest, 17ze same hare been counted by us, and are all 4 signed Gull countersigned Sealed Trith the --,J Offi ce Seal. rt itness rntr hands this Day of 2 • September/October • Whole No. 257 • Paper Money ON DEPOSIT IN BANKS IN 1815 June 30 Sept. 30 Dec. 31 $ 165 $ 1,915 $ 2,875 372 SMALL TREASURY NOTES Bank Bath, Cumberland, 915 2,527 3,744 Narragansett, 55 55 55 Union ,, New -Hampshire, 4,700 17,757 28,420 Kennebec, 25 State Boston, 40,485 326,826.75 422,414.50 ,, Saco, 960 1,513 3,185 Merchants' ,, Salem, 155 584 1,357 Roger Williams, 1,170 38,872 38,751 Newport, 50 245 436 New-Haven, 535 535 1,176 Phoenix 0 Hartford, 6,190 25,893 53,792 New-York State Albany, 1,465.; 3,975 3,975 Mechs. and Farmers' do. 825 1,085 1,085 Utica, 2,435 10,305 10,305 " of Manhattan Com. 134,970 815,272 1,003,222 Branch Utica, 825 7,900 7,900 Pennsylvania, 166,940 196,717 200,698 Corn. & Farmers' ,, Baltimore, 1,000 4,285 36,695 Columbia, 200 3,090 6, 325 Dollars 364,040 1,459,351 75 1,789,435.50 Thomas Tudor Tucker's 1816 listing of Small Treasury Note deposits. In 1816 the treasury was compelled to accept local currency in payment of duties and taxes; it was that or abandon hope of collecting the dues in any convertible medium. The bank notes were received and paid at par by consent so long as a bank would receive deposits and credit them to the treasury at par. Discounted notes were received by the banks only as a special deposit for safe- keeping -- a fund upon which the treasury could only occasionally draw. In areas where discounted notes were available, the tax collector was sure to get the most depreciated of the lot. This was especially the case where some of the banks were preparing to resume specie payment; those banks had greatly reduced their circulation so there was not enough good paper available to cover all necessary transactions. For some months after the war the treasury was short of local currency everywhere in the country except the District of Columbia and Baltimore. Collection of revenue later made local currency available in Philadelphia and still later at New York. Public funds were also accumulating in southern and western states but, as stated, it was not always available in the localities where it was needed. The treasury was forced to the choice of leaving the revenue in the hands of the local collectors or opening accounts in many more banks. The lat- ter option was chosen and government money was spread among ninety-four banks from Maine to Louisiana. Because of the differences in value of the many local currencies and the minute calculations involved, the treasury was required to carry four separate accounts in each bank: An account of cash, meaning (in the absence of coin) the local currency; An account of special deposits of bank notes issued by banks other than the depository; An account of special deposits of Treasury Notes bearing interest; An account of deposits of Small Treasury Notes not bearing interest. Paper Money • September/October • Whole No. 257 373 That policy was the final result produced by the treasury circular of November 25, 1814. 11 The Treasurer's reports of Thomas Tudor Tucker in 1816 list banks holding treasury deposits during the last three quarters of 1815; more than eighty of those banks are named. Since Small Treasury Notes are listed sepa- rately from the other deposits, a tabulation is included in the chart opposite. 12 It will be noted that banks holding deposits of Small Treasury Notes were concentrated in the Northeast. That was the area of their principal use. Banks in New England were forbidden by their charters to suspend specie pay- ment under a penalty of 12 per cent a year, consequently they did not overex- tend their emission of bank notes. In fact, they restricted bank issues to a point where the banks accumulated vast reserves of specie, leaving Treasury Notes and notes of the Bank of New York as the principal circulating medium. Revenue from the area was collected almost exclusively in Treasury Notes. Uses of the Small Notes The Treasury Notes of denominations less than $100 and not bearing interest were a distinct type. They were smaller both in size and value, and accounting for them had to be kept separate from the earlier Treasury Notes. In a memorandum dated March 13, 1815, Secretary Dallas specifically designat- ed that they "be called Small Treasury Notes," and prescribed the ways in which they were to be prepared and issued. The notes were printed and signed in Philadelphia and sent to Jonathan Smith, cashier of the Bank of Pennsylvania, the agent there, and then to the Register of the Treasury for his countersignature. The notes were to be held by the register until being disposed of by order of the secretary of the treasury; while in the keeping of the register they were to be deposited in the bank in bundle, and not as money. The register was instructed to "Get a large strong trunk with a good lock and key and padlock for the purpose of depositing the notes for Countersignature in Bank (until you can get an iron chest) ." 13 Whenever the Small Treasury Notes should be received by banks, either as original deposits, from circulation or deposits of loan commissioners, they were to be kept in separate accounts, and all drafts of the treasurer payable in Small Treasury Notes were to have that fact expressed on the face of the drafts. The balance of the memorandum was instructions for the accounting for the notes by the loan offices and regulations for funding the notes; the principal jist being to keep the accounts separate. 14 In his reports for 1815 and 1816 the secretary listed the principal uses of the Small Treasury Notes, stating that the first use was generally limited to cases of peculiar urgency. In 1815 he named the disbursing agents and listed amounts totaling $1,465,069 for payment of the army preparatory to its reduc- tion, $1,203,100 for payment of dividends on the public debt where local cur- rency could not be obtained, and $109,681 for miscellaneous claims; plus of course, the amount sold for a premium. 15 In 1816 the principal uses were pay- ments on account of the funded debt and compensation for members of Congress. Forty-six warrants authorizing the latter payments are in one set of records in the National Archives. As a medium of exchange the Small Treasury Notes were an almost complete failure. A treasury notice on June 15, 1815, (less than three months after the date on the small notes) stated that arrangements were being made to establish a circulating medium throughout the nation, since it was clear that Treasury Notes fundable at 7 per cent could not be used for that purpose. 16 The method forseen was the establishment of another Bank of the United States to issue a uniform currency. Several financiers, including David Parish, Stephen Girard and John 374 September/October • Whole No. 257 • Paper Money Jacob Astor, floated a plan to raise money in Europe, but felt that proposal would best be successful if the loan could be based on a new national bank; an impossibility at the time. Meanwhile the govenment limped along. In early 1814 citizens of New York and Pennsylvania petitioned Congress to establish a national bank. The suggestion was received favorably from such leaders as John C. Calhoun of South Carolina, but strict constructionist John W. Eppes of Virginia blocked any action in the House of Representatives. 17 The unsettled conditions continued and discussion of the necessity for a bank went on confidentially in fiancial and governmental circles while Secretary Campbell drifted along broken in health and spirit. In the fall of 1814 newly appointed Treasury Secretary Alexander Dallas proposed doubling taxes on carriages, liquor, auction sales and postage among other items. He said the issuance of more Treasury Notes might afford some relief "under favorable circumstances and to a limited extent." He insist- ed, however, the notes were "an expensive and precarious substitute either for coin or for bank notes, charged as they were with a growing interest, productive of no countervailing profit or emolument, and exposed to every breath of popu- lar prejudice or alarm." 18 Secretary Dallas proposed another modified plan for a national bank that was similar to the Bank of the United States but with more government participation in the management. His energetic promotion of the proposal gained broad suppport and passed in the Senate; but the House of Representatives rewrote the bill to such an extent that Dallas advised the President to veto the measure. He did. 19 Repaying the Treasury Notes In June, 1815, the currency was in a very disordered state, but the war was over and revenue from the direct tax was coming in. The most pressing obligation was the floating debt of the Treasury Notes. Payments had been deferred in Boston in 1814 for want of local money, and that condition reached other districts later. A schedule for payment was set up for the several districts on June 15, and available funds were assigned to the loan offices to pay the past- due notes. 20 In Philadelphia payments of Treasury Notes were delinquent from November 21, 1814. Payment was set to begin on August 1, 1815, with interest to cease on that date. At Savannah, Georgia, $286,000 of notes were delinquent from April 1 and May 1, 1815, 21 and payment was to begin on September 1, with interest ending that day. In preparation for that event Treasury Secretary A. J. Dallas on August 7 requested that $300,000 in Small Treasury Notes be sent to James Marshall, cashier of the Planters Bank of Savannah, to be deposited in a special account. "They are intended to be employed for paying off, on the 1st. of September next, the Treasury Notes bearing interest, if other means for effect- ing that payment should fail." The notes were to be shipped in care of the Collector of Customs at Savannah. A note on the bottom of the letter indicates the $300,000 was sent on August 14. In another letter the same day (August 7) Dallas asked that $210,800 be placed in the bank in Savannah; a computation at the foot of that letter indicated that amount for Savannah and $149,668 for Augusta, for a total of $360,468. On August 9 Dallas authorized the $149,668 to be sent to Augusta. The final amounts were sent on August 14. Payment of delinquent Treasury Notes in Georgia was set to be made. 22 But settlement did not come easily. R. Habersham, Collector of the Loan Office in Savannah, was unable to pay off the past due notes because the banks which held the bulk of them refused payment in $5 Treasury Notes. The state of finances is illustrated by the following letter: <1 I ;',21 _:V I .'?.LETO TriE 41.443134 E... PER ON 6: J >1443134 rPMNOTEGS REGISTRY AUTHENTICATION EXPERT GRADING ENCAPSULATION IMAGING INTEGRITY IMPARTIALITY Paper Money • September/October • Whole No. 257 375 INTRODUCING A 1\ FW DESTINATION FOR PASSIONATE COLLECTORS Bringing the World's Greatest Notes Together PMG announces the launch of our new Notes Registry, exclusively for collectors of PMG-graded notes. The PMG Registry combines the world's greatest notes with the world's greatest collectors, and is a proud part of our continued commitment to expert, impartial grading, state-of-the-art encapsulation, collecting resources, and the highest standards of integrity. With the PMG Registry, you can track inventory, build sets and compete with others who share your passion for notes. You can also arrange unique Signature Sets based on your own creative criteria. Begin with one note and watch your set grow, or add an entire new collection. Visit www.PMGnotes.com today and click on "Registry" to include your collection among the world's greatest notes. Join the community„w„. —ctor,.so,,eq co„ CZPMG PAPER MONEY GUARANTY P.O. Box 4755 I Sarasota, FL 34230 877-PMG-5570 (764-5570) I www.PMGnotes.com An Independent Member of the Certified Collectibles Group 171 n wr-ri-urr 110E, 711 .11..C..20 U 11,1 eixt AL XdolV JULY 29th, 1815. SIR, IT being desirable to cancel and take out of the way such Treasury Notes, the property of the United States, as cannot be again put in circulation, I beg leave to request, that, ('or effecting this object, you will transmit to the Treasurer such Treasury Notes, now deposited in your institution to his special credit, as have fallen due, with the exception of those payable at New-York or Boston. The Notes ought to be accompanied by a schedule or descriptive list, with the interest computed and entered in it, to the time when it ceased to be payable. The charge in the Treasurer's account will be for the whole amount of principal and interest of the notes ; and as this will always be a sum as much larger than that for which tko_ba.a. origintrity gave credit to the' Erce3urer, when the A.m.. were dipo d as the amount of interest which accrued on the Notes while they were in possession of the bank, it wilt be necessary that this difference should be placed to the credit of the Treasurer in his account with the bank, RC CO mush rocolve for inte est deposit , on Treasury Notes. It will conduce to the convenience of the Treasurer, and probably to that of the bank also, if the Notes be arranged in the schedule in such way, that all those payable at the same place, be entered together ; that those reimbursable at the earliest day, and of the lowest numbers, be first entered, and those with higher numbers and subsequently reimbursable, be made to follow in regular succession. If Treasury Notes should hereafter accumulate in the bank, it will be proper that they should, in like manner, on the first day of every month, or of every quarter, be transmitted to the Treasurer, observing that such only are to be transmitted as have fallen due, and on which interest has ceased to be payable. For your information I annex a note of the time or times when interest ceases to be payable on Treasury Notes now in circulation, in pursuance of the 7th section of the act of Congress of the 3d of March last,. to authorise a loan for a sum not exceeding 18,45:2,800 dollars," and of the public notifications from this department, founded thereon, of the 15th and 23d of June last. I am, respectfully, Sir, Your obedient servant, The Cashier of the )3 -.lc ei4-...G.-;?3 Secretary of the Treasury. n.irs WHEN INTEREST CEASES TO RE FATABLE ON TREASURY NOTES. On Treasury Notes reimbursable at BOSTON OR New-Youx, the interest will continue until funds shall hereafter be assigned for their reimbursement, and public notice thereof given by the Secretary of the Treasury. On Treasury Notes reimbursable at PHILADELPHIA, before the 1st of August, 1815, the interest ceases on the 1st of August, 1815. If reimbursable on or after the 1st of duglist, 1815, the interest ceases on the day when reimbursable. On Treasury Notes reimbursable at ORE OR WASHINGTON, before the 1st day of , 1815, the interest ceases on the 1st day of July, 1815. If reimbursable on or after the tat of July, 1815, the interest ceases on the day when reimbursable. On Treasury Notes reimbursable at R1CIMOND on CHARLESTON, the interest ceases on the day when reimbursable. On Treasury Notes reimbursable at SAN-A N All, the interest ceases on the 1st day of September, 1815. 376 September/October • Whole No. 257 • Paper Money July 29, 1815, letter from Treasury Secretary A.J. Dallas to a banker. (Heritage Auctions) Loan Office Georgia Savannah, Sept 1st. 1815 Secretary of Treasury Sir I have had the honor to receive your letter of the 21st Ulto--and also one of the same date from the Treasurer enclosing a draft on the Planters Bank, for three hundred thousand dollars, for the reimbursement of the Treasury notes which became due on the 1st of April & 1st of May last, on presenting the check at the Bank, the cashier informed me, that the directors had declined granting the loan on which this draft is predicated; I then in con- Paper Money • September/October • Whole No. 257 Memphis in June—Ribs, Radars & Really Good Times! TWAS WORRIED ABOUT HOW WELL THE ANNUAL _Unternational Paper Money Show in Memphis would fare this year, with all the ups and mostly downs of the economy, high gas prices, etc. I was concerned about how much disposable income some people would have for the hobby. But, as usual, I did not have a lot to be worried about. Once again, Memphis was a great show. Foot traf- fic did seem to be down and most dealers said while it was a good show for them, it was not a great show. But, it was still Memphis and that is all that needs to be said. Congratulations and thanks to Mike Crabb and the Memphis Coin Club for once again doing a fantastic job. I did not notice many of the usual dealers absent; except for those we lost this year and saw a number of new faces. Paper money in all types seemed to be out in abundance, with a lot of it TPG'd. Also as usual, exhibit chairman Martin Delger did a great job and there seemed to be as many and maybe more exhibits this year. They were fan- tastic and very intriguing. The best in show exhibit placed by Jerry Fochtman on Laban Heath's Microscopes was very well done and what a good exhibit should do in my opinion—be full of educational facts along with items to show. I also loved the exhibit on the baby bonds. To see pictures of the baby and other association items was a true pleasure. Great job and kudos to all the exhibitors. The annual Tom Bain Raffle was great, but the break- fast before was certainly lacking. For that, I apologize and want to let you know that we are working on something different for next year. More to come. At the breakfast, we made two very deserving awards, the founders' award to Gene Hessler (also this years' ANA Farran Zerbe award winner) and the Nathan Gold award (lifetime achievement award) to Austin Sheheen. Congratulations and thank you to these two true gentlemen for all they have done for the Society. So, even on gloomy projections for a less than stellar show, Memphis held true to its legend and present- ed us with a great time and show once again! I would like to take a moment to remember a great man and supporter of the SPMC. Former governor and President Roy Pennell, Jr passed away a few weeks before the show. Roy will be missed and remembered very fondly. Benny $$ money mart Paper Money will accept classified advertising on a basis of 15rT per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbrevia- tions, figure combinations and initials count as separate words. No checking copies. 10% discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribu- tion to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues = only $20.50! HERE'S YOUR OPPORTUNITY!!! YOUR WORD AD could appear right here in each issue of Paper Money. You could advertise your duplictes inexpensively, or advertise your Want List for only $20.50 for three lines for an entire year. Don't wait. (PM) INTERESTED IN BUYING MISMATCHED serial number notes--with 2 or more numbers mismatched. Also, any information about mismatched serial numbers of this type is appreciated. Kevin Lonergan, Box 4234, Hamden, CT 06514 (262) Wanted: Pre-1900 Notes from Liberia, Africa. Please email to mikej251@aol.com or write Michael S. Jones, PO Box 380129, Murdock, FL 33938-0129 (262) 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) (258) 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 118162, Carrollton, TX 75051-8162 or freed3@airmail.net (258) 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 freed3@airmail.net & I'll sell you what I got! (258) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with descrip- tion (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (258) AUTHORS RECEIVE FREE CLASSIFIED AD. Write now (PM) WANTED OBSOLETE BANKNOTES & SCRIP of Worcester, MA. Please e- mail or write to: edpognt@roaclrunner.com or Don Latino, 1405 Cape St., Cast Lee, MA 01238 (256) WANTED NATIONALS -- HAYS NATIONAL BANK in Clinton, New York. Charter #10295. Neil Schrader, 3320 Minglewoocl Dr., Beaumont, TX 77703-2734 (256) Take Note: SPMC now accepts commercial Money Mart ads Sell your duplicates; advertise your wants Best paper market place anywhere Annual rates begin at only $20.50 As you can see; we have space for YOU Contact the Editor: fred@spmc.org 377 378 September/October • Whole No. 257 • Paper Money for mitt' with your letter required Small Treasury Notes fundable at seven per cent for the amount, which were handed me by the Cashier. The Planters Bank objected to receive Small Treasury notes, in payment and informed me that a letter had been addressed to you by the President of the Bank, offering to receive a new issue of Treasury notes bearing interest. The Agent of the Bank of Augusta, also refused to receive the Small Treasury Notes, Stating that his directions were to receive nothing in payment but specie or the Notes of the Bank of Augusta, and gave me to understand that had payment been offered in a check on the Planters Bank it would not have been accepted. Under the circumstances I must wait your further instructions, in the mean-time the Small Treasury Notes are lodged in the Planters Bank for Safe Keeping. The Honorable I have the Honor to be Sir A. 3. Dallas With Great Respect Your Obt Sera R. H. [Haber sham] 23 On the second of September both the Planters Bank and the Bank of Augusta refused to receive Small Treasury Notes fundable at 7 per cent for the Treasury Notes they held. The president of the Bank of Augusta asked for Treasury Notes of a type the Collector could not supply. The banker was under the impression the notes bore interest before they were funded into stock. 24 Habersham wrote to the secretary of the treasury for instructions. On October 6 the $300,000 of Small Treasury Notes contained in six packages of $50,000 each were returned to the Treasurer of the United States. One package was opened for inspection. 25 Treasury Notes were delinquent only from April 1 at Washington, and payment was to begin immediately with interest ceasing on July 1. Thereafter all Treasury Notes payable at Washington were to be paid punctually, with interest ceasing the day they became payable. At Baltimore the notes were due only from June 1, and became payable immediately; with others to be paid as they came due. 26 Current money was still not available at Boston and New York where notes were due from November 1 and December 1, 1814, to date, respectively. Holders were offered alternatives: They might subscribe to the $12,000,000 loan with $95 principal and interest in Treasury Notes bringing $100 of 6 per cent stock; or they might receive drafts on Philadelphia or Baltimore, where money was available for their claims; or they might exchange their old notes for the new Treasury Notes which were fundable at 6 per cent. From September 30 to early December more than $2 million was retired under this plan. 27 With payment of the Treasury Notes arranged for, the government put pressure on the banks to honor their own notes. After August 1, all the receivers of public funds were forbidden to accept bank notes of any bank which did not, on demand, pay its own notes in gold and silver, and at the same time refused to receive, credit, re-issue and circulate U. S. Treasury Notes in the same manner as cash or its own bank notes. Funds for redeeming Treasury Notes in New York were slow in com- ing, but they did accumulate. A treasury notice dated August 22, 1816, said that the notes which had become due in 1814 would be paid on October 1, and those which had fallen clue in the first six months of 1815 were to be paid on November 1, and interest would cease on those dates. Money continued to accumulate in New York and on November 25 notice was given that the notes which were due and not covered in the August notice would be paid at any time before January 1, 1817, at which time interest would cease. 28 In 1816 an inquiry was sent to the Savannah Loan Office to determine the amount of Treasury Notes to fall due there on September 1, preparatory to payment, and how payment would be received. The secretary was informed, on August 22, that the Planters Bank held about $190,000 and expected payment in • 4.111. ■•••••■ 4.41.441141.4.4. U 0L1471. 47v Commissioner. 1,k3=1=8V3V5-41 ♦44.04.44415.• -tnii0e0 SEVEN PER CENT. STOCK OF 1815. UNITED STATES' L 9:SIN OFFICE, Stale of C) l ii iLi (0 1st k; 3tI 4) tclto Wit, THAT there is due from the United States of amerien. unto e / or , assigns, the sum of 4:,?-// /14' C./(:1-- . , hearing interest at Seven per Centum per Annum, from the CI, 'day of . ‘. • • , inclusively, payable quarter-yearly; being stock created in pursuance of no art of Congress, passed on the twenty-fourth day of February, 1810, entitled "An art to authorize the issuingof Tf/E.ISUll 1' AVMS for the service unite year one thousand eight hundred andfifteen;'' the principal of which stock is reimbursable at the pleasure ofthe United States, at any time after the last day of December, in the year 18.111: which debt isrecorded in this office. and is transferable only by appearance in person, orby attorney, at the proper office, according to the rules and forms instituted for that purpose. es P.ap•-2„ 1-` Paper Money • September/October • Whole No. 257 379 local currency. It was expected that by the due date deposits at the Planters Bank would be sufficient to cover payment to that bank. An answer had not yet been received from the Bank of Augusta. 29 Payment was delayed until December 6 when funds became available to pay all of the notes and notice was given that the Treasury Notes would be paid. Interest on all of the notes ceased on January 1, 1817. 30 Notes dated from November 1, 1814, to March 11, 1816, totaling $1,550,300 were still unpaid on the books in Boston on February 5, 1817. The report stated that $406,000 of the $500,000 due on November 1, 1814, had been paid. However there was no record of the amount of Treasury Notes which had been funded into stocks or paid in for taxes, and Joseph Nourse, reg- ister of the treasury, added a note that "it is presumed only a small part thereof remains unpaid." 31 There is no record why the duplicate certificates required to be made when the notes were paid were not filed at Boston. The Treasury Notes were retired as fast as possible in 1816, with any re-issue made only in cases of emergency. The necessity for their use had passed and on March 3, 1817, Congress approved an act repealing the power of the president to borrow money on the credit of the United states, or to prepare and issue Treasury Notes. The authority to reissue notes when received by the treasury was also revoked, and all notes received by the United States for any purpose were to be canceled and destroyed under such regulations and securi- ties as the commissioners of the sinking fund and the president should establish. Specie payment was nominally resumed in 1817, but inflation and mis- management of the new Bank of the United States kept finances in turmoil and specie payment was again suspended in 1819. In his history of the state of finances dated December 5, 1817, the sec- retary of the treasury stated that he thought any outstanding Treasury Notes, which had not been lost or destroyed, would be converted into funded debt rather than be paid into the treasury for duties or taxes since the stocks were considerably above par. The notes were redeemed, in one way or another, over a period of years. 32 Funded Seven Per Cent Stock certifi- cate, dated January 27, 1816. (ex-John J. Ford Collection, courtesy Stack's) 380 September/October • Whole No. 257 • Paper Money The amounts of Treasury Notes outstanding appear in the annual reports of the state of finances presented to Congress by the treasury depart- ment. The dates for the totals listed is usually about September 30, and the amounts are usually listed "by estimate:" 1817 1818 1819 1820 1821 Small Treasury Notes $ 69,594 $ 45,946 $ 10,961 $ 4,096 $ 3,075 Other Notes 566,369 251,560 170 860 23.560 25 , 420 $635,963 $297,506 $181,821 $27,656 $28,495 The increase in the amount in 1821 resulted from correction of the amounts in the Branch at Washington and the Union Bank of New Hampshire, the difference being from interest being short estimated. 33 At this point the notes are practically eliminated from the records. An Act relating to Treasury Notes approved May 3, 1822, reads: Be it enacted, "that, from and after the passage of this act, no treasury note shall be received in payment on the account of the United States, or paid, or funded, except at the treasury of the United States." 34 Numismatics of the Small Notes The Treasury Notes and Small Treasury Notes were printed in Philadelphia by Murray, Draper, Fairman & Co., America's pioneer bank note company. After printing, the notes were delivered to Jonathan Smith, cashier of the Bank of Pennsylvania, who had been appointed by the secretary of the treasury to prepare them for countersignature. That consisted of having them signed and numbered by several clerks under his supervision. The names of Samuel Clarke, Edward Fox, J. W. McNear and C. C. Biddle appear on notes seen. After preparation in Philadelphia the notes were sent by mail to Joseph Nourse, register of the treasury in Washington for his countersignature. The countersignatures were attested by Michael Nourse and William Mackay of the office of pay and deposit, and the notes were bundled and turned over to Richard Smith "for safe keeping in the Iron Chest," until they should be issued. 35 Early shipments were made in bundles of 300 sheets of four notes let- tered abed to indicate the position of each note on the sheet. The first ship- ment arrived March 18, 1815; it consisted of $6,000 worth of $5 notes. The last of the 10,000 sheets of $5 notes were received in Washington on May 4. The first parcel of $10s was received March 24, and the last of the $10s on April 29. The first 500 sheets of $50s, abed were recorded on April 19; and the last of the first 10,000 sheets on June 1. The first 1,000 sheets of $3 notes were entered on May 15, and the last on June 9. The first 500 sheets of $20 Small Treasury Notes were recorded on May 10, and the last of the first 10,000 on June 20. 36 A shipment of 300 sheets of $10s was sent from Philadelphia on March 28; the receipt was signed in Washington on March 30 and bore this notation: The last packet came much injured from the rain. The packets were thrown in with the newspapers. Should they not he in with the letter mail? I hope I shall be able to keep them, without sending them back to be canceled, and others issued in their place. If they are continued to be sent with the Newspapers I would recommend, a parchment cover and done up to prevent the water injuring them. J. Nourse. 37 Paper Money • September/October • Whole No. 257 381 The notes were acceptable, countersigned and placed in bundle No. 11 and deposited with Richard Smith for safekeeping. While shipments of countersigned notes for circulation were usually sent in care of collectors of customs as noted earlier, some shipments were sent by mail; at least to the distress of Henry S. Langdon, navy agent at Portsmouth, New Hampshire. On October 10, 1815, he asked for some notes under $20 to make change in paying off the rolls, and added, "I have also to request you would cover the remittance to me franked as the Post Master here refuses to receive the postage in notes but demands specie with which I am not furnished by the Government." 38 Register Nourse must have been away from his office on April 17, 1815, because on that day $10 Treasury Notes Nos. 3601 to 3900, a b c d, were sent to Thomas Tudor Tucker, treasurer, for countersignature. 39 Apparently two panes of notes lettered abed were printed on each sheet of paper; and it appears they were cut apart in Washington because a post- script on a letter dated May 18 transmitting a shipment of $20 notes to the reg- ister reads: "P. S. Enclosed are two half sheets of Treasury Notes signed by Messrs. Clarke & Fox -- No. 5631 letters a b c & d, has 50 dolls. each. No. 1788 letters a b c & d 20 dollars each, which was recd in yours of the 16th inst. 40 Those notes had been shipped from Philadelphia unsigned and were returned for official signatures. From that time on several sheets were returned for Fox's signature and one for Mr. Clarke's. At least one $100 note got past the inspec- tors because on December 14, Amos Binney, navy agent at Boston, returned No. 4827a to Joseph Nourse for endorsement. 41 By June 20, 10,000 sheets a b c d of each of the five denominations of Small Treasury Notes had been printed, for a total of $3,520,000. Of that amount, $2,320,400 had been countersigned. No additional small notes were printed until January, 1816, when 6,500 sheets a b c d of $20s and 3,100 sheets a b c d of $50s were printed to meet increased needs. The final shipment of Small Treasury Notes was received in Washington on March 1, 1816. That brought the total to $4,660,000 of small notes printed, but of that amount only $3,392,994 was issued for circulation. The schedule follows: Received Unissued Issued Total of $ 3 40,000 25,132 14,868 @ 3 $ 44,606 5 40,000 11,825 27,176 @ 5 140,880 10 40,000 3,189 36,811 @ 10 368,110 20 66,000 44,000 22,000 @ 20 440,000 50 52,400 4 , 412 47,988 @ 50 2,399,400 238,400 88,557 149,843 $3,392,994 The balance of $1,267,007 was canceled and returned to the treasury. 42 A curious situation occurs in the $10 denomination of the Small Treasury Notes: There are two types but they are not differentiated in the let- ters of transmittal from Jonathan Smith in Philadelphia, or in the receipts in Washington. Type I $10 notes (like all the $5s) carry the legend, "Receivable everywhere by the United States in payment of duties taxes and public lands," in the panel at the right end of the note, and carry the letters a b c and d. On the Type II notes the text in the right panel has been replaced with a reverse logo- type "TEN DOLLARS" like the one on the left panel, and the position letters are advanced to e f g and h. Just when the change occurred has not been determined; but the first shipment of $10s was on March 24 and the last on April 29. The $50 notes which do not have the public lands text were first released on April 19. All let- ters of transmittal, receipts and tabulations found give the letters a b c and d for 382 September/October • Whole No. 257 • Paper Money Small Treasury Notes of all denominations; therefore the date of the design change is not recorded. No correspondence with the printer has been located. The $5 Small Treasury Notes were the first to be prepared under the new law and the receivability statement was retained from the force of usage. It is likely the statement was not removed from the $5s because it was incorpo- rated into the heading design. The change on the $10s was made soon after the plate was engraved; the alteration required a new printing plate and custom called for new position letters on that plate. The $3, $20 and $50 notes do not have the phrase; their plates were engraved after the decision was made to eliminate the receivability statement. The text, "Receivable everywhere by the United States in payment of duties taxes & public lands," also appears on all $20 and $100 Treasury Notes through 1814. That statement gave some redemption quality to the notes that the old Continental Currency had not possed, and with which they had been compared. It also made the $20 and $100 notes more nearly currency than just interest-bearing bonds. While notes issued under the Act of February 24, 1815, were receivable for public dues, they were fundable into government stocks and had little likelihood of being turned in at face value for public lands. It is impossible to tell, from the records at hand, whether or not the receivability of Treasury Notes for public lands increased the sales of those lands. But some trends of sale can be cited. Sales of public lands in 1805 and 1806 topped $1,000,000 each year. Perhaps because of the economic slump caused by the embargo of 1807, sales that year fell below $589,000 and contin- ued to fall to about $421,000 in 1809-10. In 1814 public land sales topped $1.74 million, and reached more than $4,768,000 in 1817. Those are nominal prices, not actual receipts or the allowances for land reverted, but it does show a great increase in land sales after the introduction of Treasury Notes. 43 It is possible an examination of land office records would have some indication of the types of currency used for those purchases and a definite relationship estab- lished. After Word This study of the finances of the War of 1812 concentrates on the Small Treasury Notes and Treasury Notes rather than the loans and taxes because the notes were a novel expedient. Loans and taxes are tried and true methods of raising funds for governments; Congress and the people had a fear of paper money. The notes were made to bear interest and were not a legal tender -- both qualities which restrict circulation; the first because the value rises the longer the note is held and the second because no one is obligated to receive it. The United States had no reserve of specie to redeem the notes and Congress enacted no special levies to repay them when they fell due. They were worth only the value people placed on them. In New England, where the banks held large amounts of gold and silver, Treasury Notes were at premium. Specie was at such a high premium, Treasury Notes could be bought at a small advance and used to pay taxes at an actual discount from coin. In the South and West Treasury Notes were discounted because there was little surplus specie and fewer debts to the government. Local currency was demanded in payment rather than Treasury Notes; and the government, too, was forced to pay in local bank notes, or interest-bearing notes, while accepting depreciated bank notes in payment. Anecdotal material has been presented to explain more graphically the problems faced by both the government and the people when there was no viable, and reliable, money supply common to all the nation. The period of the War of 1812 was only one of several emergency periods caused by war or eco- nomic stress during which the treasury had to resort to Treasury Notes to pay Paper Money • September/October • Whole No. 257 383 its immediate needs. The Civil War finally brought the federal government into the business of providing a national circulating medium of paper money. Interest-bearing notes were issued as late as 1865 and 1879. Some United States currency was discounted until 1879, when specie payment was resumed after the Civil War. Many of the currency problems faced in 1815 and 1816 have been repeated, and some are reflected in modern monetary policy. The Small Treasury Notes were very much like present day currency: they were not con- vertible into money (gold or silver), bore no interest and were receivable in payment of taxes and clues to the government. The same is true of all current United States circulating paper money; but modern currency has one property feared by Congress in 1815 -- legal tender status. Creditors, then, were not required by law to receive Small Treasury Notes. Another fear of Congress, that unfunded notes would depreciate in value, was confirmed in 1963 when convertibility of modern notes was revoked. The 19th century Congress fore- stalled depreciation of its pioneer experiment in paper money -- the Small Treasury Notes were retired as rapidly as possible. Notes to Part V 1. Seybert, pp. 752, 753. 2. Bayley, p. 135. 3. Knox, p. 37. American State Papers, p. 11. 4. Microcopy 235, Roll 249, frames 774, 775. 5. Seybert, pp. 752, 753, 747. 6. Bayley, p. 132. 7. Microcopy 235, Roll 249, frames 78, 82, 88. 8. Ibid., frames 106, 148, 256. 9. Ibid., frame 108. 10. A. J. Dallas, ms. letter to Rob. Brent, April 10, 1815, document in Forrest Daniel collection. 11. Annals, 14th Cong., 2nd Sess., 1816-1817, pp. 1138-1143. 12. Thomas Tudor Tucker, Treasurer of the United States, Letter Transmitting His Accounts for 1816 (Washington, William A. Davis, 1817), pp. 23, 26, 27, 56, 78. 13. Microcopy 235, Roll 249, frame 39. 14. Ibid., frames 58, 59. 15. Annals, 14th Cong., 1st Sess., 1815-1816, p. 1624. 16. American State Papers, p. 9. 17. Raymond Walters, Jr., Alexander James Dallas (Philadelphia, 1943), p. 184. 18. Ibid., pp. 190, 191. 19. Idid., p. 195. 20. Finance, Vol. 3, p. 29. 21. Ibid., p. 81. 22. Microcopy 235, Roll 249, frames 783, 786, 788. 23. Letter Book, U. S. Loan Office, Savannah, Ga., 2810-1817, Vol. 1304, National Archives. 24. Ibid. 25. Ibid. 26. Finance, Vol. 3, p. 29. 27. Ibid. p. 12. 28. Ibid., p. 179. 29. Letter Book, op. cit. 30. Finance, Vol. 3, p. 180. 31. Ibid. 32. American State Papers, p. 222. Recruiter ##s Jason Bradford - PCGS 149 "Nathan Goldstein Recruitment Award Winner" SPMC Website 58 Tom Denly 19 Paper Money Values ad 14 Frank Clark 12 Judith Murphy 09 Rob Kravitz 07 Wendell Wolka 07 BNR Ad 05 Lowell Horwedel 04 Robert Moon 02 Greg Culpepper 01 Allen Mincho 01 Michael Moczalla 01 Bob Schreiner 01 Total 290 This number includes new members, reinstatements, and people who originally join as life members. PROJECT 6000 RECRUITERS Paul Burns Q. David Bowers Torn Denly American Numismatic Rarities Bryn Korn Larry Adams Rob Kravitz Andrew Korn Lowell Horwedel Fred Reed Robert S. Neale Robert Moon Lowell Horwedel Frank Clark Scott Lindquist Bob Cochran Greg Culpepper Ron Horstman Jason Bradford Arri Jacob Jack Levi Benny Bolin Judith Murphy Allen Mincho David W. Moore Wendell Wolka Mark Anderson D. Schafluetzel John Wilson 384 NEW MEMBERS MEMBERSHIP DIRECTOR Frank Clark P.O. Box 1 1 7060 Carrollton, TX 75011 SPMC NEW MEMBERS - 06/02/2008 These memberships expire 12/31/2008 12612 Bob Martin (C), Paper Money Values 12613 Robert Blumin C), Paper Money Values 12614 Marshall Phillips, 6 Rebecca's Lane, Thornton, PA 19373 (C, Fractional, $2 Notes), Website 12615 Steve Pearson (C), Rob Kravitz 12616 Anil Bohora, Bohora House, Gangapur Road, Nashik, MH 422002 India (C, World, British India, Polymer, Non-Paper Bank Notes), Website SPMC NEW MEMBERS - 07/05/2008 These memberships expire 12/31/2008 September/October • Whole No. 257 • Paper Money 12648 Carson Miller (C). Jason Bradford 12649 Kert Phillips (C), Jason Bradford 12650 Harold Skripsky (C), Jason Bradford 12651 Michael Stroscio (C), Jason Bradford 12652 Robert Tharpe (C), Jason Bradford 12653 Trade Mart Coins (D), Jason Bradford 12654 Joseph Muskus (C), Jason Bradford 12655 Troy Snelling (C), Jason Bradford 12656 Dean Stull (C), Jason Bradford 12657 Lynn Thompson (C), Jason Bradford 12658 Stephen Trzcinski (C), Jason Bradford 12659 William Voss (C), Jason Bradford 12660 John Wilkey (C), Jason Bradford 12661 Thomas Pariseau (C), Allen Mincho REINSTATEMENT 10028 W. McNair Tornow (C), Frank Clark 7165 Michael Niebruegge (C), Frank Clark LIFE MEMBERSHIP LM384 William A. Moon, PO Box 1021, Goldsboro, NC 27533-1021 (C, $2s), Tom Denly RECRUITERS FOR NEW SPMC MEMBERS From June 16, 2007 - June 8, 2008 12617 Jim Ingersoll (C), Tom Denly 12618 Robert Ueckert (C), Paper Money Values 12619 Tom Cestaro, 36 West 47th St #901, New York, NY 10036 (C & D, US Small), Wendell Wolka 12620 Brian Lee (C), BNR 12621 Maxwell Korku Semey, PO Box MP1294, Mamprobi, Accra, Ghana (D), Frank Clark 12622 Richard Hana, 1 Rue Royale Suite M, Dayton, OH 45429 (C & D, All) Website 12623 James T. Lee, MD, PO Box 11679, St. Paul, MN 55111 (C & D). Website 12624 Angelo St. John, 1854 SW 28th Ave, Fort Lauderdale, FL 33312 (C, Obsoletes & More), Paper Money Values 12625 John Soria Jr, PO Box 2223, Manteca, CA 95336 (C, World), BNR 12626 Phil Doudar, 827 N. Grand, Glendora, CA 91741 (D, World). Robert Moon 12627 Douglas A. Gregory, 212 Briarcliff Dr, Castle Hill. TX 78213 (C, Small Size). Robert Moon 12628 Jason Friedman (C), Michael Moczalla 12629 Don Wilkinson (C) 12630 Raymond Riker (C), Jason Bradford 12631 G.P. Adams (C), Jason Bradford 12632 David Bennett (C), Jason Bradford 12633 James Burke (C), Jason Bradford 12634 Larry Cagle (C). Jason Bradford 12635 James Cutcliff (C). Jason Bradford 12636 Raymond De St Aubin C), Jason Bradford 12637 Mark Ehlers (C), Jason Bradford 12638 Jim Greene (C), Jason Bradford 12639 Anthony Harmer (C), Jason Bradford 12640 William Kekaula (C), Jason Bradford 12641 Mark Lambert (C). Jason Bradford 12642 Susan Law (C), Jason Bradford 12643 Ron Lichtenhan (C), Jason Bradford 12644 Peter Linden (C), Jason Bradford 12645 Ron Long (C), Jason Bradford 12646 Ronald Long (C), Jason Bradford 12647 John McGraw (C), Jason Bradford Paper Money • September/October • Whole No. 257 385 33. Finance, vol. 3, pp. 229, 281, 436, 558, 690. 34. Huntington & Mawhinney, p, 106. 35. Microcopy 235, Roll 249, frames 39, 412. 36. Ibid., frames 315-319. 37. Ibid., frame 356. 38. Ibid., frame 132. 39. Ibid., frame 402. 40. Ibid., frame 520. 41. Ibid., frame 202. 42. Ibid., frame 319. 43. Seybert, pp. 364, 365. Bibliography American State Papers, Class III, Finance. Documents Legislative and Executive, etc. Washington: Gales and Seaton, 1834. Angel, Norman. The Story of Money. Garden City: Garden City Pubishing Company, Inc., 1929. [Annals of Congress] The Debates and Proceedings of the Congress of the United States; etc., Washington: Gales and Seaton, 1854. Bayley, Rafael A. The National Loans of the United States, from July, 4, 1776, to June 30, 1880. Washington: Government Printing Office, 1882. Bolles, Albert S. The financial History of the United States, from 1789 to 1860. New York: D. Appleton and Company, 1885. DeKnight, William F. History of the Currency of the Country and of the Loans of the United States. Washington: Government Printing Office, 1900. Dunbar, Charles F. Laws of the United States Relating to Currency, Finance and Banking from 1789 to 1891. Gouge, William M. A Short History of Paper Money and Banking in the United States. Philadelphia: T. W. Ustick, 1833. Hammond, Bray. Banks and Politics in America from the Revolution to the Civil War. Princeton: Princeton University Press, 1957. Hepburn, A. Barton. History of Corsage and Currency in the United States and the Perennial Contest for Sound Money. New York: The Macmillan Company, 1903. Huntington, A. T. and Mawhinney, Robert J., compilers. Laws of the United States Concerning Money, Banking, and Loans, 1778-1909. Washington: Government Printing Office, 1910. Knox, John Jay. United States Notes. London: T. Fisher Unwin, 1885. Lamed, J. N. History for Ready Reference. Springfield: The C. A. Nichols Co., 1901. Madison, James. Journal of the Constitutional Convention. E. H. Scott, ed. Chicago: Scott, Foresman and Company, 1893. McLaughlin, Andrew C., The Confederation and the Constitution 1783-1789. National Archives Microfilm Publication. Miscellaneous Treasury Accounts of the First Auditor (Formerly the Auditor) of the Treasury Department, Sept. 6, 1790 - July 1S, 1840. Microcopy 235, Roll 249. National Archives. Registers of Treasury Notes, Vols. 189 and 191. Raguet, Condy. An Inquiry Into The Causes of the Present State of the Circulating Medium of the United States. Philadelphia: Moses Thomas, 1815. Seybert, Adam. Statistical Annals: United States of America. Philadelphia: '1 'homas Dobson & Son, 1818. Tucker, Thomas Tudor. Letter from Thomas Tudor Tucker, Treasurer of the United States, Transmitting His Accounts for 1816. Washington: William A. Davis, 1817. 386 September/October • Whole No. 257 • Paper Money Authors present new works at Fifth SPMC Authors Forum 5th Annual Memphis Authors Forum moderator Wendell Wolka (hack row at right), a decorated author in his own right, presented a fine group of learned researchers and pensmen to an assem- bled audience and Benny Bolin's cam- era lens. Clockwise from top left: Bill Brandimore, Carlson Chambliss, Scott Lindquist, John Schwartz, Wolka, Ron Benice, Pierre Fricke and Dennis Schafluetzel. FOR THE FIFTH TIME IN AS MANY YEARS, SPMC'S INNOVATIVEAuthors Forum provided a handful of authors the opportunity to hook potential readers on the fruits of their labors, while also providing several dozen attendees the opportunity to rub shoulders and glean from the authors' experi- ences to help them with their own writing projects. The field included: Bill Brandimore, co-author of the 26th edition of Standard Catalog of United States Paper Money, Krause Publication's compendium and pricing authority on the U.S. series. Carlson Chambliss, co-author of the Comprehensive Catalog of U.S. Paper Money, 7th ed., unveiled a CD version of BNR Press' most recent edition of that scholarly work. Co-authors John Schwartz and Scott Lindquist described their work on The Standard Guide to Small Size U.S. Paper, another popular Krause Publications title. Ron Benice told how he conceived and developed his award-winning Florida Paper Money: An Illustrated History 1817 - 1934, which was published last year by McFarland Publishing. Confederate note authority Pierre Fricke unveiled his Collecting Confederate Paper Money: Field Edition (Spink-Smythe), which follows up the great success of his earlier CSA note catalog, also published by the firm. Co-author Dennis Schafluetzel told about his research with fellow Tennesseean Tom Carson on their online catalog of the state's merchant scrip, which interactively features hundreds of full color illustrations. So make your plans to attend to next year's SPMC Authors Forum. We'll assemble another good bunch for your education and edification! 'TH E WINCHESTER BARK - fit/ 111 jf•atITIC,(10MT1 4., b., )1. •,C),*'''''''''''''-'4"m"' NATIONAL t1 ,1(RENCY'il fittr"--44,-,..•..thizziav ,,,,,e2117.,±1: 1311/ l(; 4?) VATt-riliiil..,„.„..j7., 4.1r-41------16:4- With the il.tke. rratiftret . at Iliv tillotott . ii f, i•,-., „ ---- ' Ii., 13871 01,. : iy.,,,,,,,, , ,,,,, , „ _. „. ,,,,, 'a.til-w:t__16.> - .(4/iiitrocrait, wmv.tITEN 1)01 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 bank 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. .This .q11111' building tan fined jo the Winchester Hank and its successor, the Winchester Isidtional Bard:. 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! visa the NI I Currency Situ!)' Project website: Irwin talc urrency.com . land a listing of New I lampshire hanks that issued currency, wad sample chapters, and more. We look forward to hearing from you! The NEW HAMPSHIRE CURRENCY STUDY Project Box 539, Wolfeboro Falls, NH 03896 E-mail: intoVnhcurrency.com ()inn' e-mail win be fin -winded to both authors.) killer •inelow circa 1910, WVi, u National Bank A typical Nil Obsolete Now, this from the IVinchester Ban k. A Series of 1882 $10 Brown Back from Ow Winchester National Bank. Apart from the above, David M. Sandman is president of Littleton Coin Company and Q. David Bowers is a principal of American Numismatic Rarities, LLC, and both advertisers in the present book. For other commercial transactions and business, refer to those advertisements. The autiuns of the present book, holding a rare Series of 1901 $ III National Bank Note hom West Deny, New Ilampshire. trini■•■ 11•111111N1111=1=111111firettliell IIMIIIIR3115013111 11111=11111111 www.nhcurrency.com Paper Money • September/October • Whole No. 257 387 Above: John Jackson, holding his Julian Blanchard Award for the outstanding exhibit at Memphis of proofs and essays, poses with longtime exhibits chairman Mart Delger. At right, President Benny Bolin presents Larry Schuffman his SPMC Award of Merit. 388 September/October • Whole No. 257 • Paper Money More Photo highlights from Memphis COVE TO STACKS.COM (f-or-,9-oeffGAciAervnlov -w/zeedevi _ — Wle40 S7e/.1.rf.15 //„il " 10` 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! CP'reel.;tire.;/rom C9tmerie(ii( (Acta L.9K;te 0 mfri // 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! U.S. COINS • ANCIENT AND WORLD COINS • MEDALS • PAPER MONEY P-NG •.— 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/ 26 50 E Stack's Wolfeboro, NH: P.O. Box 1804 • Wolfeboro, NH 03894 • Toll-free 866/811-1804 • 603/569-0823 • Fax 603/569-3875 • www. st achs 1s t $F:26ms41 >14.LaCtS. —toCuozmuitaitagwaiaritcw K258627 ,f,* Irks mt..; mrt" Paper Money • September/October • Whole No. 257 389 HODC,IYINZONg&T© WOOHLEVE011.,11ffill Alexandria, La. Issue Wookey Hole Mill watermarkT-23 PF-1 390 September/October • Whole No. 257 • Paper Money FCCB celebrates 25 years THE FRACTIONAL CURRENCY COLLECTOR'SBoard celebrated its 25th anniversary at Memphis, where the club began in June, 1983. Founding members included Martin Delger, Rocky Rockholt, tU Vonk, John and Nancy Wilson, Tom Flynn, Don Kagin, Dr. Wally Lee, Wayne Liechty, Milt Friedberg, Mike and Victor Marchioni, Doug Hales, Len and Jean Glazer, Martin Gengerke, Vernon Oswald, Tom Denlv and Nick York. To celebrate the club offered a commemorative sheet with facsimiles of 25c 2nd Issue note faces. The sheet, depicting 16 notes, came in two forms: perforated and imperforated, just like the originals. The reverse features anniversary details. Sheets are also still available to non-club members by contact- ing Jerry Fochtmon at jfochtman@bradmark.com , or by calling 281/361-8948 evenings. Prices are $8 for the imperforated sheet and $10 for the perforat- ed sheet plus postage and a mailing tube. In addition to celebrating the club's anniver- sary, the members that were present voted to offer a Lifetime Membership for a single payment of $200. Response for the lifetime membership was strong, with many long-time active members signing-up at the conclusion of the club's annual meeting. Anyone interested in becoming a member of FCCB is encouraged to contact Bill Brandimore, at billb3883@verizon.net . Collecting Confederate Paper Money Better Attribution, Grading, and ValueTM Award-winning author and collector/dealer Pierre Fricke is helping collectors of Confederate paper money build type, rare variety and contemporary counterfeit collections. I've owned and helped others acquire: • 3 of the 5 known T-59 J Green and Son watermarked notes • 43 inverted backs and many of the known examples of the "Great Rarities" • Complete collections of Wookey Hole Mill and J Whatman watermarked notes • A complete plen error (e.g., T-43 1 -10 error) set and complete collections of T-10s, T-26s and T-33s • Many T-21 and T-24 "NY" watermarked notes and Non-Collectible (NCs) rare Confederate notes • Getting started collections, type, contemporary counterfeit, T-39, 40 and 41 specialty items too Pierre Fricke; P. 0. Box 52514; Atlanta, GA 30355 www.csaquotes.com ; pfricke(&attglobal.net Buy * Sell * Auctions * New Varieties * Provenance Email or write to get your rare notes in the Census! Paper Money • September/October • Whole No. 257 391 Online Paper Money at Its Finest 5 iNGOLDt0111` ''Isa4trA x TOON% %VI .,( J1.18* tuokmmtntmgvamumi (4, mg A 006144563A , 644563 A ^ ,4^1`4-a- A iteGA.*MO, oNleftnintm mamas:its It ram 1TED STITES OPAREHICA /r1,1 *1429168 N85439. . —. N Cievositeiillid Z , a*, t, 802s www.DBRCurreney.com P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 FAX: 858-679-7505 >Large size type notes Especially FRN's and FRBN's >Large star notes >1928 $500's and $1000's > National Bank Notes >Easy to sort database By date added to Web site By Friedberg number All or part of any serial # > Insightful market commentary >Enlarge and magnify imagesw 14/4""1"1"UWAINA4LiA,. 1 B7A sserS. KIM& "Ari. orjOILIMUMN - I-A „44 A1962 .02 .11,14•.1.11a1. ”Va.: *0'114 •95705A 1 K9870 FLATION oNYAs Bra PLAYING pm any A pair of past SPMC Presidents, Ron Horstman (above) and Wendell Wolka (left) share salient aspects of their research with forum attendees, while Ben Franklin (the museum's mascot) peers over Dubya Dubya's shoulder. Host with the most, the inimitable Eric P. Newman, himself. 392 September/October • Whole No. 257 • Paper Money Stunning Eric Newman Museum at Washington University in St. Louis plays host to CSNS Paper Money Symposium 393Paper Money • September/October • Whole No. 257 Clockwise from above left Peter Huntoon, Ray Lockwood, Joe Boling, Dave Grant, and nattily attired past SPMC President Bob Cochran put their news and views on the line for the ben- efit of conference attendees. do m—and you Men, I .1,.d v. 1 vkl. e 1,1 Innied on nuorlin ,),..-oon do, 394 September/October • Whole No. 257 • Paper Money SPMC Thanks the Sponsors of the 2008 Tom Bain Raffle Kagins Dave Berg Fred Bart Heritage Acutions Hugh Shull John and Nancy Wilson Gene Hessler Don Kelly Spink-Smythe Robert Kravitz Robert Moon Mark Anderson Benny Bolin Larry Schuffman Paper Money • September/October • Whole No. 257 395 SPMC Awards Presented at Memphis IPMS 2008 THE SOCIETY CONGRATULATES WINNERSof its annual awards presented at the recent Memphis Paper Money Show. They are: • Nathan Gold Lifetime Achievement Award present- ed to Austin Sheheen • SPMC Founders Award presented to Gene Hessler • Nathan Goldstein Award for recruiting presented to Jason Bradford • Forrest Daniel Award for Literary Excellence pre- sented to Gene Hessler • Dr. Glenn Jackson Award for best article of essays, proofs and similar items presented to Mark Tomasko for "Notes on Bank Note Engravers & Artist Attributions" (Paper Money, March/April) • D.C. Wismer Award for best book of the year pre- sented to Hugh Shull for A Guide Book of Southern States Currency, History, Rarity and Values (W hitman, 2007) • Literary Awards of Merit presented to Ronald Bernice for Florida Paper Money, An Illustrated History 1817-1934 (McFarland, 2007), and George Tremmel for A Guide Book of Counterje. it Confederate Currency (Whitman, 2007) • Awards of Merit present to Stack's, and Larry Schuffrnan • Literary Awards (for best articles in Paper Money during the previous year) presented: Federal Currency category to Dr. Clifford Thies for "Murder and Inflation: The Kentucky Tragedy (Nov/Dec) National Bank Notes category to Peter Huntoon, Doug Walcutt & Robert Kvederas for "$5 Series of 1882 Circus Poster National Bank Notes" (May/June) Obsolete Notes category to Terry Bryan for "Art & Commerce Intersect: The Bank Note Vignettes of Felix Octavius Carr Darley" (March/April) Small Size U.S. category Barbara Bither for "The Stylish Secretary" (Jan/Feb) Foreign Paper Money category to Dr. Harold Don Allen for "Final Decade of Canadian Chartered Bank Circuladon" (Nov/Dec) • Exhibit Awards for displays at Memphis present to: Best in show to Jerry Fotchman for "Heath's Counterfeit Detector Microscopes" Honorable Mention present to: Weldon Burson for "Banknotes of Mali" Larry Schuffman for "The Liberty Loan Bonds of WWI and It's Aftermath" Julian Blanchard Award for proofs, essays, etc. to John Jackson for "Jocelyn, Draper, Welsh & Co." + SPMC acknowledges its 2007-2008 donors THE SOCIETY OF PAPER MONEY COLLECTORSis a 501 (c) 3 not-for-profit historical and educa- tional organization, recognized by the Internal Revenue Service. All donations to SPMC are tax-deductible. Each year our annual dues envelope includes a check off box, whereby members can make donations to SPIVIC to support worthwhile activities. These donations may be allocated to the George W. Wait Memorial Fund, which makes grants for publication of book length pro- jects, such as Forrest Daniel's treatise on the small Treasuiy Notes of The War of 1812, which appears in this issue; or the D.C. Wismer Memorial Fund, which facilitates publication of obsolete currency books; or undesignated gifts to the Society's General Fund. With membership dues revenues and advertising revenues down for the year, this would be a good time for all members to consider giving a tax-deductible donation to SPMC. Donations to the Wait Fund totalled $453 in 2007-2008. Gifts to the Wismer Fund during the same period were $487. We thank and recognize those generous benefactors who have clone so in the past year. They include: John P. Ameen Keith S. Bauman Paul E. Boucher James J. Boyer Dean Paul Davis George Decker Donald DeKalb Cliff Dietrich Glenn H. Fisher William Frey Roberti Galiette John Glynn Ronald R. Gustafson Ronald Hamm Myron Harmon Richard L. Horst Peter W. Jones Michael Kovac Charles Lindquist Gerald Loegler Lee Lofthus Allen L. Munro Peter C. Papedeas Russell Pike S.D. Reiss Joseph Ridder Hamm Semple Jr. John A. Sheaffer Jr. Donald L. Skinner Albert L. Smith III Bruce Spence Greg R. Super J. Tracy Walker III David L. Ball will Michael Burke Jeff Keough Daniel J. McKenna Lawrence Struble Raymond E. Leisy Tony Lenamon Charles B. Bond Ed Charnin 396 September/October • Whole No. 257 • Paper Money Society of Paper Money Collectors 2008 Board of Governors Meeting Memphis, TN Meeting date: June 28, 2008 Present: Benny Bolin, Mark Anderson, Frank Clark, Rob Kravitz, Gene Hessler, Bob Moon, Judith Murphy, Jeff Brueggeman, Wendell Wolka, Robert Vandevender, Pierre Fricke, Neal Shafer Not present: Jamie Yakes, Tom Minerly, Bob Cochran, Mat Jantzen, Fred Reed Guests: Peter Syrnes for brief comments — see below Call to order and Determination of Quorum: The meet- ing was presided over by President Benny Bolin and began at 7:55 a.m. Minutes of Last Meeting: The minutes from the June 2007 Memphis and November 2007 St. Louis meetings were approved with corrections as amended. Election: There is no contest to the election this year. Governors Jamie Yakes and Bob Cochran are up for re-election. In the absence of the secretary, VP Anderson cast one vote for the two candi- dates and both were elected as presented. President Bolin then appointed Pierre Fricke and Neal Shafer as governors for three-year terms. Their appointments were accepted by the board. New members Fricke and Shafer were welcomed to the board. President Bolin publicly thanked outgoing gover- nors Hessler and Minerly. He presented Mr. Hessler with Maverick card #3 for his service and will send a like card to Mr. Minerly. Membership Report: Frank Clark had previously sent out his report. Jason Bradford was the Nathan Goldstein award winner with around 150 new members. With Mr. Bradford's efforts, we had 290 new members this year plus already three at the show. Mr. Clark also reported that he had enough membership cards for two more years, but that he was investigating options for more when needed. Memberships as Incentives: The question of allowing companies to give memberships as incentives to use their product, buy from them or join their club was again raised. The discussion centered on the poten- tial perception of endorsement of same by the society. It was decided to have the editor put a two-line statement on the masthead of Paper Money that the society does not endorse any company, dealer, auction house, etc. A discussion also occurred about how many of these new members stay for greater than one year. It was decided to ask the secretary for a report at the 2009 meeting detailing one year members who do not renew and general tenure of all members. Treasurer's Report: Treasurer Moon gave a short update on the finances of the Society. Due to the fiscal year ending on Monday of the next week, a detailed report will be sent out after that. He stated that year to date, expenses have exceeded revenue by about $12,000. This is primarily due to the time of year and virtual- ly the only income we have is from some ads and some new members. However, through March, we were ahead of last year by about $7,000. A word of caution was given that in the coming months/years, interest income will drop. Mr. Moon was also concerned about ad revenue. It has decreased for a myriad of reasons, some of which are unavoidable as the econ- omy has caused some companies to re-think and re-prioritize their advertising strategy. Mr. Moon implored the members to send him checks and bills ASAP so he can pay/deposit them within 48 hrs of receipt. A discussion about the structure of our ad management process was held and it was decided to try to have the ad manager, Governor Wolka, responsible for sending out invoices and receiving checks for ad revenue. He will then send Editor Reed a list of who has paid for ads. This changeover will occur this year. Mr. Moon also reported on additional follow ups regarding the Society's non-profit status. We had within the last year learned of a lapse, unbeknownst to us, in required reporting/filings by DC NFP organizations. An outside agent, on retainer to provide these services, left the field in 2004 and did not notify anyone at the Society. Treasurer Moon worked with the appropriate people to get this rectified, all required filings and fees have been taken care of, and all is well now. Due to the problems, he will be devis- ing a new process flow for use in the future to ensure this does not happen again. Mr. Moon told the group Ile would be send- ing out a tax form to use when buying for the society in order to not pay sales tax. Audit Committee: Mark Anderson reported that based on the coming close of the fiscal year, it makes sense for any audit process to occur after 6/30/08, with an official audit report to be provided at the fall, 2008 St. Louis meeting. He intends a high level analysis only and will do a "deep dive" if problems are identified. He noted that with the departure of Governor Yakes, the Audit Committee is a committee of one and invited anyone who wants to help to let him know. Grant Committee Report: Committee Chairman Ron Horstmann submitted a report on the current grant recipients. Editor/Publisher Report: Editor Fred Reed sent his report out electronically before the meeting. No questions or concerns were noted, although observations and opinions on the journal's ad and editorial content were provided by Board members. Regional Meetings Report: Judith Murphy reported that the regional meetings have been going well. We will have a table at the ANA convention and a program. We will also be present at the Whitman Show in Atlanta in August and the Blue Ridge and South Carolina upcoming shows. Bain Breakfast Report: Treasurer Moon gave a report on the breakfast and raffle. The raffle netted the society $1,021.00. We had 86 paid peo- Paper Money • September/October • Whole No. 257 397 ple at the breakfast. With the changes in the billing by the Marriott, we stand to make a small profit. A long discussion was held as to the future of the breakfast. Many menu and service issues complaints were noted and the price is exceeding good use of revenue by the society and its members. Ms. Murphy is investigating the use of the Sheraton for next year's breakfast and raffle. Currently this looks like a very good and viable option. She will get more information and letters of confirmation and report at St. Louis. (note: President Bolin raised the question of the use of the Crown Plaza at the gener- al membership meeting and a near unanimous yes was received from the attendees). Liana Grant Update: Gene Hessler gave an update on the Liana Grant. To date he has sent copies of The Engraver's Line and The International Engraver's Line to more than 80 libraries and institutions and he anticipates, eventually, reaching between 98-100. By-laws: Mark Anderson stated that he has not gotten any feedback on the redline version of the by-laws that he sent out. For the benefit of the new board members, he will re-send them and asks for input by 8/1 at which time there will be an electronic vote on acceptance. Directors & Officers Insurance: The current D&O insurance is valid through the end of August. Treasurer Moon is waiting for FY financials to be finalized to complete the new application and renew. Get Well Card: A get-well card was passed around for all to sign for Governor Minerly. Mr. Moon will ensure he gets it. IBNS President: At this point in the meeting, per previous invitation, Peter Symes, recently installed as the new President of the International Banknote Society, arrived, and was introduced by Mr. Anderson. Mr. Symes is well known to Governors Shafer and Wolka, who sit on the IBNS Board, and he addressed the group about the IBNS and his observations that the two groups have shared opportunities and challenges. He noted his wishes for us to work together. More investigation will be done with Mr. Symes and Mr. Anderson. It was noted that in 2011, both the SPMC and the IBNS will have their 50th anniversary. 2009 Election: President Bolin encouraged all present to be thinking about qualified people to run for the 2009 hoard. Of the four incumbents up for re-election, at least two will probably not run, so new candidates will be needed. Next Meeting: The group was reminded that the next SPMC board meeting will be in St. Louis at the PCDA show and that the date has changed to mid-October. Adjournment: President Bolin adjourned the meeting at 9:40 a.m. 2008 Treasurer's Report SPMC ended its Fiscal Year on a positive note. The General Fund closed out the year with a balance of $99,617.36 which was $7,000 over last year's balance. Interest income for the year amounted to just over $10,000. We even showed a small profit on our Memphis Breakfast this year. There are a few cautionary notes for the coming year, however. With interest rates dropping, we will not realize that amount of interest income next year. Also, revenues from advertising and dues renewals did not reach last year's level. While we are currently in good shape financially, we must do what we can to reverse these trends to remain on a sound footing. Of course, expenses will continue to be closely monitored. 2008 Editor's Report This will be short and sweet. It won't take five minutes to read. The magazine is in good shape, although we lost some advertisers this year. On the flip side, the July/August issue which is supposed to be mailed tomorrow or Tuesday is full color on both the outside and inside covers, thanks to Spink- Smythe which upgraded their ads from B&W to full color. Our coffers are full of manuscripts. I have been working on and off on Forrest Daniel's War of 1812 manuscript for several years since he was no longer able to assist. Forrest wanted to see it published, even though he was disabled for a long period before he died. I think publishing it (after all it won our Wait award) will be a good memorial to his memory. I hope to have it ready for the Sept/Oct issue. We'll see. If not Sept/Oct we'll see it eventually. Our fifth annual author's forum is Friday at noon-2 p.m. We have a great group of authors talking about their books once again. I urge you to attend. Coin & Currency Inc. has supplied free books again. And Spink-Smythe has supplied free refreshments. Although I won't be there, the affair is in good hands with Messrs. Bolin and Wolka. We added an additional location to our mailing permit. We received several conflicting directions, but eventually a decent human being with knowledge and rank assisted us in fixing the conflicting rulings we were getting repeatedly. But again that is settled now. Next issue we are running donors' acknowledgements, which is the same issue the dues notice goes out in by design- with a check off for donations. This year we developed a significant working relationship with additional folks at the BEP, which is showing fruits in our magazines. The taxpayers are paying for historians to sift through Treasury records and ledgers and these contract employees and the BEP itself are overjoyed to be able to see their hard work in a publication such as Paper Money. I have three commitments for next year's author's forum, and big time issues coming up including Larry Schuffinan's research on bonds. What we could use -- as always -- is short articles about anything, and more articles about modern U.S. currency. Mr. Yakes and Mr. Huntoon are doing their best, but we need more authors for that genre. BTW -- Pete Huntoon's article on WWII currency was as good as anything Paper Money has ever published, and got lots of good comments as it should. Respectfully submitted, Fred Reed Editor/Publisher Paper Money OHospitality Room Networking NE OF THE GREATEST PLEASURES I GET OUT of paper money collecting is the people and friends I've met and made along the way. Sadly, many of them are no longer with us. I used to look forward to Memphis for two principal reasons: first meeting with old friends from the hobby and second for possibly finding a note or two to add to my collection. It was a rare event to find any notes, but I could always count on meeting old friends there. At my first Memphis convention in 1980 I met people that I had only corresponded with or knew of through various publications. All the big names were there. Amon Carter, Grover Criswell, Dr. John Muscalus, Eric Newman, John Hickman, Dean Oakes, Peter Huntoon, Bill Donlon, Aubrey Bebee, Joe Kinney, Chuck O'Donnell, Neil Schafer, Art Kagin; New England friends John Ferreri, Roger Durand, Roland Cormier, Dick Balbaton and Frank Bennett, Roy Pennell, Gene Hessler, Neil Schafer, Lyn Knight, Hugh Shull, Tom Denly, Wendel Wolka, Bob Cochran, Austin Sheheen, Paul Garland and many others were all gentlemen who were glad to share information and friendship. Mr. Roy Pennell invited me up O to a hospitality room that had been set up for collectors to socialize and discuss/buy/sell notes. I showed him some Kansas Nationals and he was most complimentary, even though the notes were not all that special. And lie showed me some great Kansas obsolete material, including a face proof sheet of notes on the Kansas State Savings Bank of 'yandotte. Following the show he mailed me copies of the sheet. Whatever happened to those hospitality rooms? They were a good idea that I'd like to see come back. After returning home there was always follow-up corre- spondence that needed doing. That was always an extra spe- cial aspect of Memphis. Information shared and publicized; new note discoveries, data for the researchers and census tak- ers. Long distance friendships resulted as letters were exchanged before the next Memphis show. One of my princi- pal correspondent friends then was Mr. James Lindsay of Fort Lauderdale, Florida. He would write long letters with infor- mation about new Kansas acquisitions or questions about issuers, locations or Kansas history in general. I got to visit him once when I attended an ANA Convention in Bal Harbor in the early 1970s. I rented a car and drove up to his house. He had taken his Kansas material out of the bank vault so 1 could examine it. First Charter Kansas Nationals (26 as I recall), brownbacks, red seals and rare obsolete notes in abun- dance. Years later I finally was able to obtain his Lawrence Nationals, but I really missed our correspondence. So 1 encourage fellow collectors to get to know the peo- ple who collect what you do. Establish communication with them to maximize your enjoyment of the paper money hobby. That said, who wants to talk about Kansas? September/October • Whole No. 257 • Paper Money A tale of two manuscripts MANY EDITORS STICK THEIR COLUMNS UPfront and attempt to tantalize the heck out of readers with a preview of the following pages. Frankly, I've always thought that pandering was a waste of space. But this time, we'll spend some "Back Page" space discussing two very exceptional manuscripts that I've had the pleasure to work with in recent years. They both were very learned, long and about the small Treasury Notes of the War of 1812, the first United States Currency of the 19th Century. Many of you will remember, we published Dr. Donald Kagin's excellent work on this subject in our Sept/Oct 2005 issue. Don's paper was based on his earlier work at the gradu- ate level, about which he teased all of us at a Memphis break- fast presentation. After publication in these pages, Don won the NLG award for "Best Magazine Article," very richly deserved. Then he gave a more formal presentation on the topic at a Memphis SPMC membership meeting, including a display of a great many rare notes of that genre. If you missed it, you missed out big time. Fortunate are those who still retain our Sept/Oct 2005 issue with the fruits of Don's labor. In that same magazine three years ago, I mentioned another manuscript on War of 1812 notes that had been authored by SPMC Charter Member Forrest Daniel, which we also hoped to publish in the near future. As judge of the Wait competition, I can attest that Forrest had done a bang up job on this topic too. Unfortunately, misfortune plagued our presentation of Forrest's research in Paper Money until the present. Hurdles included the loss of the original manuscript by a party to whom Forrest had sent it for evaluation; the redrafting of the paper and having it typed by a contract typist with no numismatic background who changed things, altered footnotes, even arrangement of the copy, thoroughly frustra- trating Forrest; and ultimately by his untimely demise in 2006. Before Forrest died, we exchanged a good many letters attempting to wrangle the project back into the state I origi- nally saw it. Forrest was particularly keen in having it pub- lished and represented on the shelves of the local library and historical society as a work of a "home grown" Dakota author. With Forrest's demise, publication looked bleak because he was no longer available to assist. Also, his art (he had assem- bled many original documents concerning these notes) were dispersed leaving only poor photocopies to work with. Fortunately, good people at Heritage Auctions and Stack's, Charles Kemp, Ron Horstman, Gene Hessler and Eric Newman furnished wonderful replacements. I've worked on this on and off now for six years; I hope, friend Forrest, you are at length pleased with your result! 398 Buying & Selling Quality Collector Currency •Colonial & Continental Currency •Fractional Currency •Confederate & Southern States Currency • Confederate Bonds •Large Size & Small Size Currency Always BUYING All of the Above Call or Ship for Best Offer Free Pricelist Available Upon Request James Polis 4501 Connecticut Avenue NW Suite 306 Washington, DC 20008 (202) 363-6650 Fax: (202) 363-4712 E-mail: Jpolis7935@aol.com Member: SPMC, FCCB, ANA WANTED FOR HIGGINS MUSEUM LIBRARY Volumes 1, 2, and 3 of PAPER MONEY The first 12 issues. Larry Adams, Curator, Higgins Museum & Library, PO Box 258, Okoboji, Iowa 51355 712-332-5859 or 515-432-1931 email: ladamsPopencominc.com HARRY IS BUYING NATIONALS - LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES 7379 Pearl Rd. #1 Cleveland, Ohio 44130-4808 1-440-234-3330 Are you planning a show? Would you like to have free copies of Paper Money magazine to distribute to attendees? Contact Bob Cochran 1917 Driftwood Trails Drive Florissant, MO 63031 Paper Money • September/October • Whole No. 257 399 DO YOU COLLECT FISCAL PAPER? Write about your specialty for Paper Money Articles on checks, bonds, stocks Always wanted Our SPMC Journal exists to fulfill our mandate to promote education in all these fiscal paper areas So spread your knowledge around to our members DO YOU COLLECT FISCAL PAPER? loin the American Society of Check Collectors http://members.aol.com/asccinfo or write to Lyman Hensley, 473 East Elm St., Sycamore, IL 60178. 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Send us your collection, or if it's too large and value requires, we'll come to you - call for details 7 Each year we spend over $15 million on coins and paper money - isn't it time for your check? Maynard Sundman David Sundman Jim Reardon Butch Caswell Founder President, Numisnu list Chief Numismatist Senior Numismatist (1915-2110T) (..1V1I51 #4.163, g510) Ken Westover Niunismalist Littleton I Coin Company 1309 Mt. Eustis Road • Littleton NH 0356 1-3 73 5 Contact us: Toll Free: (877) 857-7850 Toll-Free Fax: (877) 850-3540 CoinBuygLiltletonCoin.corn References: Bank of America Dun & Bradstreet #01-892-9653 America's Favorite Coin Source • TRUSTED SINCE 1945 02008 LCC. ILC LittletonCoin.com/SellYourCoins B4J9 I 2 400 September/October • Whole No. 257 • Paper Money DEPOSITED IN THE ITILLININI AUCTIONEERS INTEGRITY. EXPERIENCE. GLOBAL REACH. 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