Paper Money - Vol. XXII, No. 1 - Whole No. 103 - January - February 1983

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THE BIMONTHLY PUBLICATION OF THE SOCIETY OF PAPER MONEY COLLECTORS VOL. XXII No. 1 WHOLE No. 103 JANUARY/FEBRUARY 1983 1000 Insurance Exchange Building Des Moines. Iowa 50309 800-247-5335 4 Embarcadero, Suite 2800 San Francisco, California 94111 800-227-5676 KAGIN'S WILL PAY BID* ON MOST GEM LARGE AND SMALL SIZE J U.S. CURRENCY L. Kagin's is seeking rare and Gem-quality United States currency. As one of the largest and most qualified dealers of top- condition currency in the country, we are actively involved in today's market. Our clients require the finest grades available. Because of the ever-increasing demand for superlative material and the rapidly decreasing supply, we recognize the true rarity of Gem-quality notes and will pay premium prices to obtain them for our clients. If you have currency for sale—a few notes or an entire collection—call toll free to make arrangements for inspection at your convenience and our top offer. The Most Experiencea Name In Numismatics. 'Hid prices based on current issue of Currency Market Review, 505 Fifth Avenue, Suite 1000, Des Moines, Iowa 50309 SOC I 1,71'1' OF PIPER N ION FA' C011..EC"1 -011S INC. Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XXII No. 1 Whole No. 103 JAN/FEB 1983 ISSN 0031-1162 BARBARA R. MUELLER, Editor 225 S. Fischer Ave. Jefferson, WI 53549 414-674-5239 Manuscripts and publications for review should be addressed to the Editor. Opinions expressed by the authors are their own and do not necessarily reflect those of SPMC or its staff. PAPER MONEY reserves the right to edit or reject any copy. Deadline for editorial copy is the 1st of the month preceding the month of publication (e.g., Feb. 1 for March issue, etc.). IN THIS ISSUE SPECIMENS OF UNREPORTED NATIONAL BANK NOTES OF RHYOLITE AND CARSON CITY IN THE SMITHSONIAN COLLECTIONS M. Owen Warns 3 KAREL SVOLINSKY/CZECHOSLOVAK BANK NOTE DESIGNER Gene Hessler 8 TWO DISCOUNT COUPONS FROM DAKOTA TERRITORY Forrest W. Daniel 12 BIBLIOGRAPHY OF WRITINGS ON IOWA OBSOLETE NOTES Larry Adams 17 INTERESTING NOTES 'BOUT INTERESTING NOTES Roger H. Durand 26 REGULAR FEATURES PAPER COLUMN 18 LITERATURE REVIEW 24 COPE REPORT 25 SECRETARY'S REPORT 34 INTEREST BEARING NOTES 35 Paper Money Whole No. 103 Page 1 PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors, 1211 N. DuPont Hwy., Dover, DE. Se- cond class postage paid at Dover, DE 19901. © Society of Paper Money Collectors, Inc., 1983. All rights reserved. Repro- duction of any article, in whole or in part, without express written permis- sion, is prohibited. Annual Membership dues in SPMC are $12. Individual copies of current issues, $2.00. ADVERTISING RATES SPACE Outside 1 TIME 3 TIMES 6 TIMES Back Cover $72.00 $195.00 $367.50 Inside Front & Back Cover $67.50 $181.50 $345.00 Full Page $59.00 $158.00 $299.00 Half-page $36.00 $ 98.00 $185.00 Quarter-page $15.00 $ 40.00 $ 77.00 Eighth-page $10.00 $ 26.00 $ 49.00 To keep administrative costs at a minimum and advertising rates low, advertising orders must be prepaid in advance according to the above schedule. In the exceptional cases where special artwork or extra typing are re- quired, the advertiser will be notified and billed extra for them accordingly. Rates are not commissionable. Proofs are not supplied. Deadline: Copy must be in the editorial office no later than the first of the month preceding month of issue (e.g. Feb. -1 for March issue). Mechanical Requirements: Full page 42 x 57 picas; half-page may be either vertical or horizontal in format. Single column width, 20 picas. Halftones acceptable, but not mats or stereos. Page position may be requested but cannot he guaranteed. Advertising copy shall be restricted to paper currency and allied numismatic material and publications and accessories related thereto. SPMC does not guarantee advertisements but accepts copy in good faith, reserving the right to reject objectionable material or edit any copy. SPMC assumes no financial responsibility for typographical errors in advertisements, but agrees to reprint that portion of an advertise- ment in which typographical error should oc- cur upon prompt notification of such error. All advertising copy and correspondence should be sent to the Editor. Society of Paper Money Collectors OFFICERS PRESIDENT Wendell Wolka, P.O. Box 366, Hinsdale, IL 60521 VICE-PRESIDENT Larry Adams, 8121/2 Story St., Boone, Iowa 50036 SECRETARY Robert Azpiazu, Jr., P.O. Box 1433, Hialeah, FL 33011 TREASURER Roger H. Durand, P.O. Box 186, Rehoboth, MA 02769 APPOINTEES EDITOR Barbara R. Mueller, 225 S. Fischer Ave., Jefferson, WI 53549 LIBRARIAN Wendell Wolka, P.O. Box 366, Hinsdale, IL 60521 PUBLICITY CHAIRMAN Larry Adams, 8121/2 Story St., Boone, Iowa 50036 NEW MEMBERSHIP COORDINATOR Ron Horstman, P.O. Box 6011, St. Louis, MO 63139 BOARD OF GOVERNORS Larry Adams, Walter Allan, A.R. Beaudreau, Charles Colver, Michael Crabb, Jr., Martin Delger, Roger H. Durand, C. John Ferreri, William Horton, Peter Huntoon, Dean Oakes, Stephen Taylor, Steven Whitfield, Harry Wigington, John Wilson. The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organ- ization under the laws of the District of Columbia. It is af- filiated with the American Numismatic Association and holds its annual meeting at the ANA Convention in August of each year. MEMBERSHIP—REGULAR. Applicants must be at least 18 years of age and of good moral character. JUNIOR. Applicants must be from 12 to 18 y ears of age and of good moral character. Their application must be signed by a parent or a guardian. They will be preceded by the letter "j". This letter will be removed upon notifi- cation to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold of- fice or to vote. Members of the A.N.A. or other recognized numis- matic organizations are eligible for membership. Other applicants should be sponsored by an S.P.M.C. member, or the secretary will sponsor persons if they provide suitable references such as well known numismatic firms with whom they have done business, or bank references, etc. DUES—The Society dues are on a calendar y ear basis. Annual dues are $12. Members who join the Society prior to October 1st receive the magazines already issued in the year in which they join. Members who join after October 1st will have their dues paid through December of the following year. They will also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. PUBLICATIONS FOR SALE TO MEMBERS BOOKS FOR SALE: All cloth bound books are 81/2 x 11" INDIANA OBSOLETE NOTES & SCRIP $12.00 NEW JERSEY'S MONEY, Wait $15.00 Non-Member $15.00 Non-Member $18.50 MINNESOTA OBSOLETE NOTES & SCRIP. TERRITORIALS—A GUIDE TO U.S. TERRITORIAL Rockholt $12.00 BANK NOTES, Huntoon $12.00 Non-Member $15.00 Non-Member $15.00 MAINE OBSOLETE NOTES & SCRIP. Wait $12.00 INDIAN TERRITORY / OKLAHOMA / KANSAS Non-Member $15.00 OBSOLETE NOTES & SCRIP, Burgett & OBSOLETE NOTES & SCRIP OF RHODE ISLAND Whitefield $12.00 AND THE PROVIDENCE PLANTATIONS, Non-Member $15.00 Durand $20.00 IOWA OBSOLETE NOTES & SCRIP, Oakes . $12.00 Non-Member $25.00 Non-Member $15.00 ORDERING INSTRUCTIONS 1. Give complete description for all items ordered. 2. Total the cost of all publications ordered. 3. ALI. publications are postpaid except orders for less than 5 copies of Paper Money. Write for Quantity Prices on the above books. 4. Enclose payment (U.S. funds only) with all orders. Make your check or money order payable to: Society of Paper Money Collectors. 5. Remember to include your ZIP CODE. 6. Allow up to six weeks for delivery. We have no control of your package after we place it in the mails. Order from: R.J. Balbaton, SPMC Book Sales Dept. 116 Fisher St., North Attleboro, MA 02760. Library Services The Society maintains a lending library for the use of Librarian—Wendell Wolka, P.O. Box 366, Hinsdale, Ill. the members only. For further information, write the 60521. Page 2 Paper Money Whole No. 103 Paper Money Whole No. 103 Page 3 Specimens of Unreported National Bank Notes of Rhyolite & Carson City in the Smithsonian Collections An update on "The Nevada Sixteen Banks and Their Mining Camps" By M. Owen Warns, NLG W HEN my book of the above title was published by SPMC in 1974, I was unable to provide illustrations of National Currency issued by The First National Banks of Rhyolite and Carson City, Nevada. Even today, no notes on these banks are known. However, we now are able to illustrate the specimen notes on these banks held by the Divi- sion of Numismatics, Smithsonian Institution, Washington, D.C., through the courtesy of the Curators, the recently-de- ceased Dr. V. Clain-Stefanelli and Mrs. Elvira Stefanelli. Interested readers are referred to the "Nevada Sixteen" hook for historical background, topographical photographs and reproductions of documents pertinent to the Rhyolite and Carson City banks. A brief summary is included here to orient those not acquainted with the syngraphics of Nevada. The First National Bank of Rhyolite Oscar J. Smith and his brother Bert L. Smith were presi- dent and vice-president respectively, with Frank H. Stickney as cashier, throughout the brief three-year life span of this bank. The Smiths originally engaged in sheep and cattle herding in the Elko area. Oscar became president of The First National Bank of Elko, serving from 1905 to 1908. He was instrumental in establishing The First National Bank of Rhyolite in 1907. Previously the Smiths were active in mining interests of the Bullfrog-Rhyolite Mining District. It soon became evident that their unproductive ventures overextended the limits of their ready cash resources. Accordingly, a National Bank examiner was sent from the Treasury Department to ascertain their bank's condition. His report, dated March 23, 1910, declared the bank to be insolvent due to the mismanagement of the bank's funds by its officers. In the U.S. Treasury Department notice dated April 18, 1910, Comptroller of the Currency Lawrence 0. Murray as- sessed the officers and stockholders the sum of $50,000, the amount of the bank's capitalization. In the directive, the Comptroller was both firm and purposeful; he set the date of restitution for May 2, 1910, just 38 days after the bank went into receivership. Rhyolite — The Queen City of the Bonanza Road A glorious year for Rhyolite was 1907! The construction of the city began after the 1904 discovery of the famous Bullfrog mine by Eddie Cross in the Amargosa Desert hills of southern Nevada. The area became known as the Bullfrog- Rhyolite Mining District; it produced the richest ore since the days of the fabulous Comstock, which itself began a decline in the 1870s that lasted through the '90s. According to a U.S. Geological Survey Report, "The discovery of the Bullfrog mine in 1904 created a chain reaction that altered the State of Nevada and rocked the nation." As the Bullfrog-Rhyolite Mining District developed, Bull- frog, because of its geographic features, was passed over as the center of business activity in favor of Rhyolite. Golden Street, the main thoroughfare, stretched from the top of the rise at the west down two miles to the Bottle House to the east. Arising in a flurry of construction down both sides of the street were a drug store, Porter's General Store, a bakery, a buggy-feed- livery stable, a jewelry store, and many saloons and dance halls. Other buildings housed a two-story stone school, a jail, the telephone and telegraph office, three different newspapers, a doctor's office, a miner's meeting hall, a first-rate hotel, the proverbial red light district, and three banks—the John S. Cook Bank, the First National Bank, and The Bullfrog Bank & Trust Company. Nothing seemed to be missing except water and electric power, and they were brought in across the state line from California. John T. Overbury, construction engineer for the Tonopah & Goldfield Railroad, who supervised the building of the Rhyolite railroad yards and its famed passenger station, was one of the first to join the get-rich-quick movement by completing the three-story Overbury stone building bearing his name. The First National Bank of Rhyolite occupied the right half of the first floor, with a jewelry and novelty store in the left half. Yes, this was 1907, a year of marked progress, the year when Charles M. Schwab, the Carnegie Steel magnet, stepped down from his deluxe, private observation car at Rhyolite's elaborate "Dearborn Street Station of the West" to his wait- ing chauffeured Pope-Toledo rental driven down from Tonopah and was whisked off to Rhyolite's finest hotel, the Southern. Later in the day Schwab toured his profitable gold producer, the Montgomery-Shoshone mine which he had bought for five million dollars. Yes, indeed, 1907 was a glorious year for Rhyolite and the First National Bank. The First National Bank of Carson City This writer recalls on several occasions over the years dis- cussions with the noted National Bank Note specialist, William A. Philpott, Jr. He had assembled a collection of Third Charter notes from each of the state capitals but needed only a note from Nevada's capital city to complete his set. Nary a Carson City has been seen at this writing. The First National Bank of Carson City, Nevada, charter 9242, was the ninth chartered during the 1903-1909 period in Nevada. Frank Golden, president of The Nye & Ormsby County Bank, and its officers recognized the popularity and prestige the National Banks offered. So they decided to close their Carson City branch bank and convert to National status. The Nye & Ormsby County Bank was capitalized for half a million dollars. It was the largest bank in the state, with bran- ches in Tonopah, Wonder, Goldfield, Reno and Carson City. The First National Bank of Carson City had a life of only two years and fifty-eight days. /0 — _ 90- a I 1190:41 , --19,0ti 1 I . patUrt A, pia' , I: 1 kiplklitc, 111111111111:11MALTIE 4/44144U4,o tz,k )).„,-/) - __01010===tr&==== " c rreri7)))211224143(04:446 •SCrt. fie / 21LOP- 7t74u131E-* •s.ziar. • atittiri10101001Amatigs NIMIOAN,010 4=- 1°— Olt 4444.4,1044.1.11, " " " ' \ . - LIPA 600G-$41 .,..a..110ECa3Y EtYK3 fTZtc3xxitg.kat Page 4 Paper Money Whole No. 103 THE FIRST NATIONAL BANK OF RHYOLITE, NEVADA — organized on May 14, 1907 with a capital of $50,000. — placed in receivership on Mar. 23, 1910; capital of $50,000. — reason for failure: defalcation of officers Smithsonian Institution Specimen notes on The First National Bank of Rhsolite—red seal at top, date back at bottom. Note plate maker's/finisher's initials on lower note; also, the round Bureau of Engraving and Printing "Specimen" handstamp on both notes. THIRD CHARTER RED SEALS NOTES ISSUED Circulation Issued — — Third Charter Red Seals 5- 5- 5- 5 plate = $ 8,040, worth; 402 sheets, serials 1 to 402 10- 10- 10- 10 plate = $16.720. worth; 418 sheets. serials 1 to 418 THIRD CHARTER DATE-BACK NOTES ISSUED — Third Charter 1902-1908 Backs 5- 5- 5- 5 plate = $ 4,040, worth; 202 sheets, serials 1 to 202 10- 10- 10- 10 plate = 1,840 worth; 46 sheets, serials 1 to 46 — Total amount of circulation issued - $30,640. — Amount outstanding at close $12,500. — Amount outstanding in 1915 -$ 295. — Officers — President — Cashier — Oscar J. Smith (1907-09 reports) — F.H. Stickney (1907-1909 reports) orausoly ynrr 05 da i .,144) ‘.1. le.41-1411 ' ' AUtra,1,8? • /e/w4r i 11,4)2,,,i1)084 111)frAl , MOS ' 771AratilonalCurapenew NEB SUITES KAMERA . 12313 IMILSON ?CITY 41.14.16,114 ,6141.14.444A14411.1k3" 9 PigOolt IMILIt.31.\1* raill %'/7 ///./, ,r• Page 5Paper Money Whole No. 103 THE FIRST NATIONAL BANK OF CARSON CITY, NEVADA Smithsonian Institution Date back specimens on The First National Bank of Carson City with the Bureau of Engraving and Printing "Specimen" handstamp. ONLY THIRD CHARTER 1902-1908 DATE-BACK NOTES WERE ISSUED 5- 5- 5- 5 plate = $ 6,100, worth; 305 sheets, serials 1 to 305 10- 10- 10- 10 plate = $11,200, worth; 224 sheets, serials 1 to 224 — Total amount of circulation issued -$17,300. — Amount outstanding at close -$12,500. — Amount outstanding in Oct., 1911 -$3,105. — first notes sent to the bank on Nov. 18. 1908 last notes sent to the bank on Jan. 20, 1910 — Officers in various annual reports — President — Cashiers — James A. Raycraft (1909-10 reports)— H.G. Marsh (1909 report) — A.T. Hoffman (1909 report) Lee McClung, Treasurer of the United States, on February 4, 1911 sent a U.S. Treasury check for the rounded sum of $12,500 to cover a shipment of notes the bank had previously made to the retirement redemption account for credit. It was certainly possible and likely that included in the shipment was a sizeable amount of the Carson City Nationals. This would have contributed significantly to the scarcity of the Carson City notes. Other factors to be considered in this scar- city were the meager amount of circulating notes issued and the limited scope of the bank's business trading area. Page 6 Paper Money Whole No. 103 Nc, 8686 ASSESSMENT UPON SHAREHOLDERS TREASURY DEPARTM —r:_•NT OFFICE OF THE COMPTROLLER OF THE. CURRENCY ,N \TTFI: OF N vi ii^ii4;i1 Dam( OF RHYOLITE. NEV. WASHINGTON, D. C., April 18, 1910. TO ALL WHOM IT MAY CONCERN: WHEREAS. Upon a proper accounting by the Receiver heretofore appointed to collect the assets of THE FIRST NATIONAL BANK OF RETYOLITE, NEVADA, and upon a valuation of the uncollected assets remaining in his hands, it appears to my satisfaction that in order to pay the debts of such asso- ciation it is necessary to enforce the individual liability of the stockholders therefor to the extent herein- after mentioned, as prescribed by Sections 5151 and 5234 of the Revised Statutes of the United States: NOW. THEREFORE, by virtue of the authority vested in me by law, I do hereby make an assess- ment and requisition upon shareholders o:' the said THE FIRST NATIONAL BANE OENHYOLITE for I.B .ty Thousand Dollars, to be paid by them ratahly, on or Moro the second day -o-f--li\j,cy , 1910 : a nd I hereby make demand upon each and every one of them for One Hundred Dollars upon each and every share of the capita( stock of said association held or owned by them, respectively, at the time of its failure; and I hereby direct Thomas M. Thornton, the Receiver heretofore appointed, to take all necessary proceedings, by suit or otherwise, to enforce to that extent the said individual liability of the said shareholders. IN WITNESS WHEREOF, I have hereunto set my hand and caused my seal of office to be affixed to these presents, at the City of Washington, in the District of Columbia, this eighteenth day of April, A. D. 1910. LAWRENCE 0. MURRAY, Comptroller of the Currency. [SEAL] oi2a./ vc, Assessment instrument sent out by the Comptroller of the Currency to the officers, directors and the shareholders of the First National Bank of Rhyolite to raise the required funds needed to meet the bank's obligations. Paper Money Whole No. 103 Page 7 Form 2423.—Chiet Clerk. Efi..N114 00 NOTICE OF VOLUNTARY LIQUIDATION. _t)(rca6ttr3 Pepartmcnt y OFFICE OF THE. COMPTROLLER OF THE CURRENCY, Washington„ D. C., Nov. 21 _7910 The Chief Clerk, Yon: are advised thin The City, Nevada, No. 9242 1 has gone into voluntary tivtidation Nov. lb 1910 to take ene•t k of Carson 1)!/ resolation of its stockholders dated Nov. 1910. Fir - t National B Strides Made Since 1970 in Reporting Nevada's Rare Third Charter National Bank Notes Still very much alive is the challenge to uncover a note or notes of The First National Banks of Rhyolite and Carson City. The search for these has been sustained over recent years with the result that notes from four other unknown charters were reported during the early 1970s, some 60 years after they had been issued. They are all Third Charter notes, as follows: Charter 8530, The Nevada First National Bank of Tonopah, $5 Blue Seal Charter 9078, The First National Bank of Goldfield, $5, Red Seal Charter 9452, The McGill National Bank of McGill, $20, Blue Seal Charter 9578, The Copper National Bank of East Ely, $10, Blue Seal The surfacing of the above notes has served as a stimulus for the continuing search for other unreported notes. As a result, three more important additional notes have been re- corded since 1978, i.e.: lle,speelfally, Acting Chief, Or4Fanization Division. Charter 8424, The Nixon National Bank of Reno, $100, Date Back (See Paper Money No. 78, December 1978) Charter 8530, The Nevada First National Bank of Tonopah, $5, Red Seal (See Paper Money No. 88, August 1980) Charter 9452, The McGill National Bank of McGill, $10, Blue Seal (See Paper Money No. 91, January 1981) Acknowledgements The author's sincere thanks are extended to the following: Gerome Walton; Louis Van Belkum; and Nell Murbarger, author of Ghosts of The Glory Trail. Other Sources Consulted — Reports of the Comptroller of The Currency, Washington, D.C. — Nevada State Historical Society, University of Nevada. Reno, Nevada. — Reports of the U.S. Treasury Department, Fiscal Service. Washington, D.C. — National Archives, Fiscal Department, Washington, D.C. — Library of Congress, Washington, D.C. Figure 1. Figure Ia. Page 8 Paper Money Whole No. 103 KAREL SVOLINSKY Czechoslovak Bank Note Designer By Gene Hessler Photographs by the Author (The following information is excerpted from the author's exhibit which received the first place Stuart Mosher Award for foreign paper money at the 1982 American Numismatic Association convention. This same exhibit was also given the SPMC Julian Blanchard award for combining numismatic and philatelic elements. BRM) Born on 14 January 1896, Karel Svolinsky is a true renaissance man: painter, graphic artist, illustrator, set designer, and worker in mosaic. He began his studies in 1910 with woodcarving; later he attended art school where he worked under Professors S. Zalezak and B. Kafka. From 1922 to 1927, he studied sculpturing under Professor F. Kysela. Afterward, and until 1945, he worked as an independent engraver and painter. Svolinsky exhibited his works in the major cities in his homeland and Vienna; his first exhibit in the Austrian capital took place in 1934. In 1937, he was awarded the French Grand Prix medal. In 1945, he was chosen as professor for the School of Applied Arts in Prague. In 1953, and again in 1956, he had the title of Artist Laureate bestowed upon him. Karel Svolin- sky was named Czechoslovakia's most deserving national art- ist in 1961. He is now retired and lives in Prague. The 20 korun note (P69a) dated 1 May 1949 was the first banknote design of Karel Svolinsky. This note circulated from 21 December 1949 to 31 May 1953. The face design is printed by the offset method. The Druzicka (Bridesmaid) reflects the Czechoslovak heritage with this traditional wedding costume. This "type a" note has fibers in the left margin of bluish paper. (Figure 1) The back design of this note is also printed by the offset method. A peasant woman gazes toward a vase filled with spring flowers. There are no fibers in the margin of yellowish paper (P69). (Figure la) Another version of the Druzicka takes on a Picasso-like appearance. The engraved initials of the designer are seen on the right; those of the engraver, Jindra Schmidt, were added by his hand. (Figure 2) The 50th anniversary booklet of the Statni Tiskarna Cenin Praha (State Printing Office in Prague) devoted an en- tire page to the vase and spring flowers which appeared on the back of the 20 korun note. (Figure 3) The 100 korun note dated 16 May 1945 was to be replaced by this intäelio engraved essay. (P77). The simple head of a peasant girl appears on this unissued note. The high serial numbers on existing examples indicate the note was being pre- pared for distribution, but for unknown reasons it was not put into circulation. The total for all known examples is about 12 to 15 pieces. (Photo courtesy of Frantisek Sedlacek) (Figure 4) Figure 2. A 2 3 • ST VI' NiBANKA E S S MVENSKA r 24 STÃTNi BAN KA CES ot,447:4, Paper Money Whole No. 103 Page 9 Figure 3. 3396 Figure 4. D NIA C-1, PPE r KORUNAE,<0, 4 , VE NSKiTH PAT KOPLIN C I ' H Figure 5. Figure 5a. K OV KA STAT it KO V KA kATN NKY C;ESKOSIAVENSKE ESKOSLOVENSKEJ ti KO R N DV KORUN Page 10 Paper Money Whole No. 103 Figure 6. Figure 7. The 25 korun (P87) circulated 1 December 1958 to 31 De- cember 1971; the face design was intaglio engraved. Jan Zizka, a Hussite warrior and Czechoslovak national hero, was born about 1376 in Trocnov, by legend under an oak tree. He fought with Poland against the German knights and returned to Bohemia in 1414. At that time he became a follower of John Huss. In 1421, he lost his second eye; it is uncertain when the first eye was lost and which one it was. He was affectionately called Jednooky Jnek—Johnny One Eye. Zizka died on II October 1424. (Figure 5) The back design of the 25 korun (P87 & 89) was offset printed. The town hall in Tabor, a Hussite community found- ed in 1420, is an appropriate subject for the backs of these notes. The building dates to the mid-15th century although the neo-gothic facade was added about 1887. In 1962, it was de- clared a national monument and now serves as a museum. (Figure 5a) The 25 Korun (P89) circulated 2 May 1962 to 31 December 1971; the face design was intaglio engraved. In Paper Money Whole No. 103 Page 11 1{.4j;,i 1 4M2 Figure 8. 1960, the constitution of the Czechoslovak Republic was replaced with one modeled after the Russian constitution. The Lion Rampant Queue Fourchy of the royal house of Bohemia now has a star overhead, in place of the crown, its last vestige of autonomy. The tiny shield at the lion's shoulder now bears a flaming grenade against a stylized outline of Mt. Krivak; this replaces the Slovak symbol. The remaining portions of this design remain the same as the earlier issue (P87). (Figure 6) The 50th anniversary booklet of the State Printing Office in Prague devoted an entire page to the Zizka portrait. A close-up photograph reveals the detail of the engraving. (Figure 7) The signatures of both designer Karl Svolinsky and engraver Jindra Schmidt are visible on number 167 of 200 vig- nettes pulled; it measures 4 3/8 x 2 1/4 inches. The two stamps bear a different portrait of Zizka engraved by Svolinsky. (Figure 8) Graf ton • Grand Forks DAKOTA TERRITORY Page 12 Paper Money Whole No. 103 Two Discount Coupons From Dakota Territory by FORREST W. DANIEL D AKOTA Territory and its two successor states wereorganized too late to have resident issuance of banknotes of the state bank era. The land east of the Mis- souri River was part of Minnesota Territory until 1858 when the state of Minnesota was admitted to the Union. The separ- ated area remained unorganized territory until March 2, 1861, when Dakota Territory was created from that land and the area directly west of the Missouri River which had been part of Nebraska Territory since 1854. The oldest towns in the Territory were Pembina and a few other settlements in the northeastern corner. They had been tributary to the barter economy of Red River Settlement and the Hudson's Bay Company in Canada until the mid 1840s when an active trade was developed with St. Paul. American settlers moved into the southeastern corner of the unorganized territory and started the towns of Sioux Falls, Medary, Yank- ton and Vermillion in an effort to become proprietors and political leaders of the capital of the new Dakota Territory. With them came money lenders and bankers. The Territory developed slowly; it needed railroads and a national bank. Yankton received a national bank late in 1872, and for five years it was the only national bank in Dakota Territory. The Northern Pacific Railway reached Fargo, in northern Dakota, in 1872, and ended construction at Bismarck during the Panic of 1873. With means to ship their agricultural produce to the east, farming communities sprang up along the railroad, and bonanza farms spread northward down the Red River Valley along the old Red River cart trails to Pembina. Settlement followed the railroads and railroads followed settle- ment. In April, 1881, Grafton, Dakota, was eight months old and had a growing population. The residents of Walsh County were an admixture of people of Metis and Canadian descent from the north and Americans and immigrants from the south. The St. Paul, Minneapolis and Manitoba railroad reached Grafton from the south in December 1881, the same month that saw the opening of the mercantile firm of Birder, Olson and Sandager, doing business as The Chicago Store. The store, located next door to the post office, was principally a dry goods store but carried a stock of general merchandise and groceries. Southeast of Grafton at the confluence of the Red and Red Lake Rivers, Indians and fur traders had held rendezvous at a trading post for many years before the first settlers ar- rived. The first settler cabins were built near what was to become Grand Forks in 1868. The north-south cart trails ran far from the river so there was no reason for river steamboats to stop until Captain Alexander Griggs's boat was frozen-in there in 1870. Griggs built a 12 by 12-foot cabin and estab- lished squatter's rights; he filed a village plat in 1875. Grand Forks grew, and by the time the University was established in 1883 there were two railroads; and The Minneapolis Store of Parker and Johnson, wholesale and retail dry goods, carpets and millinery, was well established in a three-story brick business block. Discount Coupons The number of pioneer stores in Dakota Territory which used discount coupons is unknown and likely unknowable since so few specimens remain. But just what should their status be in numismatics? Several types are listed under vary- ing names in catalogues of obsolete paper money and scrip published by the Society of Paper Money Collectors. Actual scrip was issued by banks and some mercantile establishments during periods of shortage of coins and curren- cy to facilitate trade in a limited community. Scrip was re- deemable in money or "current funds" in certain dollar values stated on the face. One assumes the scrip was also redeemable at face value for goods when presented in trade at the store which issued it. Some scrip states it is also redeemable in merchandise; that places it in a hybrid class between scrip and due bills which are redeemable only in trade. Advertising notes with no "redeeming value" are ac- cepted as peripherally numismatic because they are printed in the style of, or in imitation of, bank notes, or even upon actual obsolete notes. Facsimiles of Confederate notes were printed for the specific purpose of having an advertising message printed on the back. The appearance of money is an attention- grabber; advertising men of more than a century ago knew that as well as they do today. Discount coupons are redeemable for neither cash nor merchandise; they allow a discount on a purchase of at least a certain value. It might be five per cent or it might be ten per cent; it might be less on a larger purchase if the coupon had a dollar value. There were many varieties. One of the notes studied allowed a five per cent discount on purchases of five dollars or more; the other was good for 51.00 on a $10.00 purchase. Paper Money Whole No. 103 Page 13 The most common standard form of discount coupon illustrated in the catalogues is the "Commission Scrip" pub- lished by Tiffany Bros., Buffalo, N.Y. Denominations ran from ten cents to $50.00, simulating fractional currency or, v aguely, bank notes. The name of the issuer was on the front while the back carried a scale of redemption values. A typical back has this text: THIS SCRIP is worth Twenty-five Cents, and will be received by us in part payment for a cash purchase amounting to FIVE DOLLARS, or over. Twenty cents will be allowed for this scrip on Four Dollars; Fifteen Cents on Three Dollars; Ten Cents on Two Dollars; Five Cents on One Dollar, or over. Our prices are standard and as low as any house in the city. But One Scrip received on a single purchase as above. Tiffany "Commission Scrip" was widely used and could bear a variety of vignettes to suit the business using it. A. C. Landers of Newport, Rhode Island, used a $1.00 "Centennial Promissory Note," in 1876, as a five per cent dis- count on a $20.00 purchase, or as 50 cents on a $10.00 pur- chase. It is one of the few dated discount coupons. The Novelty Ad. Pub. Co., New York and Peoria, Illinois, published a standard form which was widely used for advertising pieces and for at least one Dakota Territory dis- count coupon. The form was in the style of the first $5.00 United States Note, crudely done, with a three denomination in green and a seal and serial number in red. The back was in imitation of the back of a $10.00 United States Note. Geo. Bonser & Son, clothiers of Kennebunk, Maine, used a "Business Certificate" of 50 cents to be allowed on a $10.00 cash purchase before June 15, '89. The pieces had a variety of titles but the common quality was a discount for a cash purchase. Sandager and Birder The Chicago Store, Birder, Olson and Sandager, opened in Grafton, Dakota Territory in December, 1881. P. E. San- dager chose the site in September a few days after Grafton was chosen as county seat for Walsh County. Excavation for the cellar began early in October. The partners were Jacob P. Birder, Peter Olson and Peter E. Sandager of Calmar, Iowa. The hall above the store was a community meeting place from the earliest days. The ladies held a holiday festival there for the benefit of the new church and school; admission and supper was 25 cents, oysters 35 cents a dish additional. The proceeds were $75.06. On Christmas Day Father James J. Malo, a mis- sionary priest, held Grafton's first Mass in the hall. Jacob Ptacnik was born in Bohemia in 1858 and came with his mother and family to the United States in 1870 and settled in Iowa, where he Anglicized his name to Birder. He learned English and Norwegian in Iowa, and while working in a store in Flandreau, Dakota, learned the Sioux language. He used all his languages in the northern Dakota stores. While working in the store of Peter Olson in Calmar, Birder met Peter Sandager and his brother, Andrew. The Sandagers were born in Iowa of Norwegian immi- grant parents, Peter in 1856 and Andrew in 1862. Peter was a clerk in Peter Olson's store. Andrew Sandager apprenticed in a drug store at age 16 and became a registered pharamacist. He had been in charge of a drug store in Madison, Dakota, for two years when the partnership of Birder, Olson and Sandager was formed. Andrew Sandager became part of the organiza- tion realizing the need for his profession in a very new com- munity. It appears Peter Olson financed his two clerks in their Dakota venture; Olson never came to Grafton. The store prospered. In July the Grafton News reported a large addition to the store, making it 22 by 100 feet. In November, 1882, after only a year in Walsh County, J. P. Birder ran for county treasurer on an independent ticket which was charged by the newspaper as being controlled by the Walsh County Bank. The Grafton News did not directly op- pose Birder, as it did the ticket, but wished he had entered the race under different colors. Birder won office decisively and Peter Sandager became assistant county treasurer. It is very possible that county business was conducted in the store before a court house was built in 1885. Upon taking office in January, 1883, Birder went to Calmar, Iowa, and the partnership of Birder, Olson and San- dager was dissolved. The successor company was Sandager and Birder. Birber Jacob P. (Ptacnik) Birder. The new firm prospered during 1883, The Chicago Store advertised its stock of dry goods and clothing. In August, it was announced that a new brick building would be built and a lot was purchased next to the Bank of Grafton, another new brick edifice. No evidence was found that the brick store was built. In July, a year later, a 40-foot addition was added to the rear of the building making it 130 feet long; surely that was the old store. Ire" 774Lif, mem ■ kAtf . #t)„ , , th/.S tvi/ di/ I' r air / la/ ri WV' ro.rmior.tt" Page 14 Paper Money Whole No. 103 Sandager & Birder Discount Coupon, 1883-1884. Back of Sandager Birder Discount Coupon. A second store was opened in neighboring Minto in March, 1884, and Jacob Birder went there to get the branch started. H. A. Ball may have been made manager later but there is no certain proof. Birder married Gertrude Sandager in May. She was a sister of Peter Sandager. Mrs. Birder died two years later and Birder remarried. November of 1884 saw the opening of another Sandager and Birder Chicago Store in the new town of Park River; but the latter part of the year saw some dissension. After the announcement of the Park River store in August there was no mention of the Grafton Store in the newspaper, other than an institutional advertisement, until January 1, 1885. A news items said only, "The temporary embarassment of Sandager and Birder is over and they will resume business tomorrow." Nothing else was reported. A full three-column advertisement for the Chicago Store, Sandager and Birder, appeared on January 8; it was the last over that name. Andrew Sandager withdrew from the company and moved to Lisbon where he was first in the general merchandise business called the Chicago Store. He became one of the founders of the State Bank of Lisbon and later its president. He was a member of the Constitutional Convention in 1889 and a member of the first session of the North Dakota legislature. The Sandager and Birder name appeared in the early ad- vertisements of the Park River store, but in 1885 only Birder's name appeared as proprietor. It was announced in August that he had severed all business connections in Grafton. Birder sold his store in 1891 and became president of a bank in Park River and a stockholder in several others. While on his way to St. Louis, as a delegate to the National Democratic Convention in 1904, Birder was killed when a special train carrying delegates from Chicago was derailed. More than 20 died in the accident. Peter E. Sandager was elected Walsh County treasurer in 1884 to replace Jacob Birder. He held the position for two terms. His only advertisements for the store for several months were for Waterbury watches which were sold or given as pre- miums with the sale of a suit. The signature was the Chicago Store, P. E. Sandager. In August 1885, it was announced he was entirely renewing the building with plate glass front, hard wood floors and new appointments. He also married in August. In October there was a Grand Opening sale at the Chicago Store with a store-wide seven per cent discount. He eneaged in a bitter, name-calling dispute with a competitor for several weeks in the newspaper. The last few watch advertisements before the end of the year carried only the signature "HAPPY." Through 1886 Sandager advertised made-to-measure and ready-made suits. Late in April, 1887, the newspaper carried the description of a new Chicago Store; Mr. Raylock was named as one of the members of the firm. Sandager completed Paper Money Whole No. 103 Page 15 his term as county treasurer and some time in the early 1890s purchased a plantation in Louisiana and made his home there except for a few years in Minneapolis. He died in 1923. The Chicago Store Discount Coupon The discount coupons were never mentioned in news- paper advertisements or news columns so no definite date can be set for their use. However, the history of Sandager and Birder indicates they would have been used in 1883-1884. There is no indication of how they were put into circulation. Were they distributed by young boys as handbills? We'll prob- ably never know. They may have been given to cash customers in the manner of trading stamps. The News and Times newspaper on April 29, 1886, has this item: P. E. Sandager is always showing some novelty. The latest is a credit coupon cabinet for the purpose of keeping correctly certain kinds of accounts. It would take too much space to enter into particulars, but it is worth an examination. Had the reporter taken the space we might have known just what the novelty was, how it related to coupons, and whether it was a manufactured article or an invention of Sandager's. The Sandager and Birder coupons were printed by the Krebs Lithograhic Company, Cincinnati. The front text is, "Compliments of the Chicago Store. We will allow the Bearer One Dollar for this Coupon at any time, said bearer buy Ten Dollars worth of Goods of us." There is a green numeral 10 as underprinting in the center, 10 counters in the upper corners and a girl with an armful of agricultural produce to the left and a train being loaded on the right. The back has the text, "The Chicago Store is the Headquarters for Ready Made Clothing, Furnishing Goods, Dry Goods, Dress Goods, Boots & Shoes, Etc. Etc.," within a green currency-like design with two large 10 numerals. The discount coupons of Grafton's Chicago Store did not disappear with Sandager and Birder. A few surfaced ten years later during the Panic of 1893 when there was a great shortage of currency throughout the nation. Several types of scrip were circulating in eastern North Dakota and any ten printed on paper might just be money. The following item was reprinted in the Hillsboro Banner on September 15: Down at Hillsboro the people are so much frustrated at the sight of a bank bill that they become an easy prey to the trafficker in goods of that nature. A few days ago, some hobo got hold of three $10 advertising bills of the "Chicago Store" at Grafton and had no trouble to "change" them for good money, a watch and such goods as he wanted and left town before they discovered their mistake.—Mayville Farmer. A. G. Johnson & Co. The mercantile firm of Parker & Johnson, The Great Minneapolis Store, opened in Grand Forks, Dakota Territory, in 1880. The partners were Edwin Parker of Minneapolis and Augustus G. Johnson of Grand Forks. It was one of a number of Minneapolis Stores in several towns; it is likely each was an independent store purchasing goods from a common whole- saler. The Dakota partner, A. G. Johnson, was born in Wis- consin in July, 1859, and moved as a child to Minneapolis. By ten years of age he held exclusive distributorship of the St. Paul Dispatch newspaper in Minneapolis and employed six to eight newsboys. At twelve he was a page in the Minnesota legislature; and at fourteen was employed in the dry goods business by Edwin Parker. He became a partner of Mr. Parker with the establishment of the Grand Forks store. 4ugustus G. Johnson. Parker & Johnson was a wholesaler and retailer of dry goods, carpets and millinery. In the spring of 1882, they listed special novelties in silks, satins, dress goods, ribbons and lace. In a frontier town of approximately 2,500 population they boasted a stock of 10,000 parasols, the largest stock in Dakota, with prices ranging from ten cents to $15.00. By 1883, they were located with other mercantile firms in the Syndicate Block, a three-story brick structure surrounded by lower buildings under construction. The store occupied 50x 100 feet of space with a basement and was acknowledged the largest stock of its kind in the area. In 1887, the firm was reorganized as A. G. Johnson & Co.; Johnson became the principal owner with Henry Gund of Minneapolis the "& Co." The store continued business until 1894, when its sale began to be discussed. The name A. G. Johnson & Co. was dropped from advertisements in May, and Fred Ring served as manager of The Great Minneapolis Store in its final days. The entire stock, valued at $65,000, was pur- chased by Thomas Beare of the New York Dry Goods Store for $30,225, spot cash. Mr. Beare operated his store, also in the Syndicate Block, for three years before buying out the older business. It was considered the biggest transfer of dry goods ever made in one transaction in the northwest. Thus one of Dakota's pioneer mercantile establishments closed its books. Pa .....L..., -,Itm trezitt it GRAND FORKS, DAKOTA. *evr .ivt , r, until Junin% lint tme rikcaultv AO: uitit . . ti. Page 16 Paper Money Whole No. 103 A. G. Johnson & Co. Discount Coupons, 1889. Back of A. G. Johnson & Co. Discount Coupon. Outside the store A. G. Johnson was always a backer of civic improvements and agricultural development of the state, but he never ran for public office. It appears he left Grand Forks about the time the store was sold. The Great Minneapolis Store Discount Coupon The discount coupons were never mentioned in the com- pany's advertising, and there was no notice that they would ex- pire on January 15, 1889. Coupons were an accepted method of promotion and needed no further mention. The discount coupon of A. G. Johnson & Co., the Great Minneapolis Store, is printed on a familiar form published by the Novelty Ad. Pub. Co., New York. The front is a crude imitation of the United States $5.00 Demand Note of 1861 de- nominated 3 with the store name and address. The green back is in the style of the $10.00 Legal Tender note, second obli- gation, with the black text: "This bill will pay five per cent dis- count on any purchase made at our store amounting to Five Dollars or over until January 15th, 1889. But one discount will be made on any one sale," probably printed at the local news- paper print shop. The coupon was printed on very brittle paper, it is torn lengthwise and has been repaired with gummed paper. There are chinks and folds one would hesitate to unfold because of the texture of the paper. ESTABL.ISFIED l'eso. A. G. Johnson & Co., Grand Forks, Dakota. Paper Money Whole No. 103 Page 17 Three weeks before the date on the coupon, on December 28, 1888, a fire broke out in the Syndicate Block damaging the merchandise in the stores which occupied the building. While the stock was badly damaged the stores were not burnt out. After several days' clean up the stores announced fire sales with the entire $65,000 stock of the A. G. Johnson company going on sale January 2. Items especially mentioned in the large advertisement were silks, dress goods, carpets, cloaks, ladies' and gents' underwear, sheetings, prints and blankets. A competing store, undamaged by fire, advertised new goods "not yellow with smoke or gray with age." The A. G. Johnson & Co. discount coupons expired dur- ing the fire sale providing further savings for bargain seekers who still had not redeemed them. SOURCES: Newspapers: Acton News; Grafton News; Grafton News and Times; Walsh County Record, Grafton; Park River Gazette; Northwest News, Grand Forks; Hillsboro Banner; Grand Forks Herald, Special Edition, January, 1892, Red River Valley Facts. Walsh Heritage, A Story of Walsh County and Its Pioneers, Vols. 1 and 3, Walsh County Historical Society, 1976, 1981. They Came To Stay, Grand Forks, North Dakota, Centennial, 1874-1974, Grand Forks Centennial Corporation, Timothy C. Lamb, Editor-in-Chief. Grand Forks Illustrated, Harry H. Hook, Detroit, April, 1891. Compendium of History and Biography of North Dakota, Geo. A. Ogle & Co., Chicago, 1900. History of North Dakota and Its People, Vol. 2, Clement A. Louns- berry, The S. J. Clarke Publishing Co., Chicago, 1917. Minnesota, Dakota and Montana Gazetteer and Business Directory, 1884-5, R. L. Polk & Co. and A. C. Danser, St. Paul, 1884. Grand Forks City Directory, 1889-90, 1891-92, 1893-94, 1895-96, Chas. Pettibone & Co., Sioux Falls. New Jersey's Money, George W. Wait, The Newark Museum, New- ark, 1976. Obsolete Notes and Scrip of Rhode Island and The Providence Plan- tations, Roger H. Durand, SPMC, 1981. Indiana Obsolete Notes and Scrip, Wendell A. Wolka, Jack M. Vorhies, Donald A. Schramm, SPMC, 1978. Maine Obsolete Paper Money and Scrip, George W. Wait, SPMC, 1977. "Commission" Advertising Scrip, Robert H. Lloyd, Paper Money, Vol. XX, No. 2, March/April, 1981. Bibliography of Writings on Iowa Obsolete Notes A Supplement by LARRY ADAMS (Included in the Dean Oakes/SPMC listing Iowa Obsolete Notes and Scrip published in 1982 is a two-page listing of references and sources on the subject. It was developed largely by Larry Adams; the following additions to this list were also furnished by Larry. BRM) BOOKS Erickson, Erling S. BANKING IN FRONTIER IOWA 1836-1865. Iowa State Unversity Press, Ames, Iowa, 1971. Fairall, Herbert S. MANUAL OF IOWA POLITICS, STATE AND NATIONAL CONVENTIONS, PLATFORMS, CANDIDATES AND OFFICIAL VOTE OF ALL PARTIES FROM 1838 to 1884. Republican Publishing Company, Iowa City, Iowa, 1884. Fort Wayne Public Library, EARLY BANKING IN INDIANA. Fort Wayne Public Library, Fort Wayne, Indiana, 1954. Mills, George S. THE LITTLE MAN WITH THE LONG SHADOW. Trustees of the Frederick M. Hubbell Estate, Des Moines, Iowa, 1955. Pease, George Sexton. PATRIARCH OF THE PRAIRIE: THE STORY OF EQUITABLE OF IOWA. 1867-1967. Appleton- Century-Crofts, New York, 1967. ARTICLES "A Dream .. . The Founding of Equitable of Iowa; Eleven Presi- dents Have Guided the Company Since 1867." EQUIOWA, January-February, 1977. Equitable Life Insurance Company, Des Moines, Iowa. Bonney, Margaret Atherton, "Creating New Governments Peace- fully—Bankless Iowa Needs a New Constitution". IOWA HERITAGE IN THE AMERICAN REVOLUTION, 1976. Iowa State Historical Department, Division of the State Historical Society, Iowa City, Iowa. Cassell. Anthony L., ed. "Surveying the First Railroad Across Iowa: The Journal of John I. Blair." ANNALS OF IOWA, Third Series, Vol. 35, No. 5, Summer, 1960, pp. 321-362. Erickson, Erling A. "A History of the Miner's Bank of Dubuque." ANNALS OF IOWA, Third Series, Vol. 39, No. 8, Spring, 1969, pp. 619-639. Gallaher, Ruth. "Money in Pioneer Iowa, 1838-65." IOWA JOUR- NAL OF HISTORY AND POLITICS, Vol. 32, No. 1, January. 1934, pp. 3-59. Jordan, Philip D. "The U.S. Marshal on the Iowa Frontier." THE PALIMPSEST, Vol. 54, No. 2, March/April, 1973, pp. 2-17. ABSO- RBED MIAMI FEB 1,1926 - APRIL 15,1932 BANK OF MIAMI JAR 24,1910-SEPT 30,1924 NAME CHANGED MIAMI OCT 1,1924- FEB.I,1926 PERIOR COMMERCIAL AN TRUST COMPANY 1914-JAN. 14,1916 SUPERIOR FEB L1926 - APRIL 15,1932 LD DOMINION BANK, GLOBE MAY 14, 1926-APRIL15,193 SUCCE DEDBRANCHES YUMA DEC 15,1930 - APRIL 15,1932 RETAINED BRANCH OLD DOMINION COMMEROAL COMPANY, GLOBE ', FEB 17, 1896-MAY 14,1926 BRANCHES ABSORBED OPPER CITIES BANK,GLOB OCT I, 1924-FEB.1,1926 BRANCHES BANK OF SUPERIOR JAN 14,1916-SEPT 30,1924 SUPERIOR OCT 1,1924- FEB 1,1926 RETAINED ,t GONDOL ID ▪ ATED FIRST NATIONAL BANK OF GLOBE OCT 22,1902-OCT 8,1924 CONVERTED TO STATE BANK GLOBE NATIONAL BANK APRIL 12,1906-JAN.11,1910 CSTED--EiBrAZ ASI (COOK AND COMPANY, GLOBE 9-MAR. 24,1910 .1 SUCCE EDED Paper Money Whole No. 103Page 18 THE PAPER COLUMN d, by Peter Huntoon The Tangled Histories of the Globe, Arizona National Banks Purpose and Perspective T HE relationship between the First National Bank of Globe and the Globe National Bank is displayed on the bank tree shown here. What is not shown is how the linkages developed or how relationships evolved between the banks on the tree and other banks in the vicinity. The purpose of this article is to untangle the histories of these banks and the bankers who ran them from the perspective of the city of Globe. Names such as J. N. Porter, J. N. Robinson, and P. P. Greer will be of utmost importance to the First National Bank, and a gentleman named A. G. Smith will play a key role in the Globe National Bank. The stories of these men and their banks are intertwined with the development of the Bank of Safford, the Bank of Clifton and its successor the First National Bank of Clifton, and most importantly, the Gila Valley Bank. The Gila Valley Bank was destined to develop into one of the larg- est banks in the west—the Valley National Bank of Phoenix. However, in its early years it would face tough competition from the two Globe national banks. While the Gila Valley Bank would grow to greatness, the legacy of the Globe na- tional banks would dissolve into history, a casualty of the great depression in 1932. Sources of data used here are records on file with the Ari- zona State Banking Commission and various records of the Comptroller of the Currency. The following two books pro- vided significant insights, historical information, and enjoy- able reading: — Jo Conners (1913) Who's Who in Arizona: Vol. 1, Press of the Arizona Daily Star, Tucson, Arizona, p. 197-293. — Ernest J. Hopkins (1950) Financing the Frontier, a Fifty Year History of the Valley National Bank, 1899-1949: The Arizona Printers, Inc., 271 p. In writing this article, it has been necessary for me to borrow heavily from Hopkins, who developed a significant part of the Gila Valley Bank story from original sources. Globe and the Gila Valley The Gila River rises in the central Arizona highlands near the New Mexico state line. It flows through wide valleys with rolling desert farm country to a point southeast of Globe. Westward from there, the river has eroded deep canyons through rugged, but very scenic desert mountains before reaching Phoenix to the west. Ultimately the river joins the Colorado River at Yuma. Diagram showing the historical development of the Old Dominion Bank of Globe, Arizona, from roots including the First National Bank and Globe National Bank. BANK OF GLOBE OCT. 18, 1899-1903 CONVERTED TO NATION AL BANK J YUMA MIAMI••GLOBE • SUPERIOR FT. THOMAS SAFFORD• SOLOMONVI LLE ®PHOENIX MORENCI.LIFTON Paper Money Whole No. 103 Page 19 ARIZONA • TUCSON Map showing the Gila River and towns in Arizona which provide the setting for this article. Globe is situated in the mountain country north of the Gila and is the center of a rich copper mining district that has intermittently flourished in response to copper prices since the early 1870's. Silver in the area also helped things along. Numerous copper claims were merged into two large com- panies in the late 1890's, the Arizona Copper Company at Clifton, and the Detroit Mining Company headquartered at Morenci. These concerns were bought out in 1897 by the Phelps Dodge Corporation. Large mines continue to operate in this highly mineralized district today, helping to make Arizona the copper state. In contrast, the upriver Gila country to the southeast is cattle and farm country. Safford is the heart of this agri- cultural area and has been an important agricultural center since the late 1800's. In the 1890's the banking needs of this di- verse area were served by mercantile firms such as the Old Dominion Commercial Company and E. F. Kellner in Globe, and I. E. Solomon in Solomonville. With the developing cop- per economy and strengthening agricultural sector, the area was obviously ripe for commercial banking at the turn of the century, and several entrepreneurs saw to it that this oppor- tunity did not slip by. In fact, a race developed between two identifiable groups for prominence, the Solomonville group lead by the Solomons, D. W. Wickersham, and A. G. Smith; and a second group lead by J. N. Porter. Both the Solomonville group and Porter had agricultural identities. The Solomons were pioneer merchants in the agri- cultural part of the Gila basin. Porter was a very popular and hugely successful cattleman, but he would identify closely with the mining economy in his rise through banking. The Solo- monville group would compete for the same turf, but the original partners in this group would gradually lose internal control to powerful mining interests, salvage Porter from his financial problems in the coming decade, and then fade from the Globe banking scene to Safford where they would again consolidate their interests in financing the agricultural sector. Porter Makes His Move The first man to engage in commercial banking in the area was a total stranger—William F. Holt of Missouri and Pueblo, Colorado—who had come to Safford for his health. Being a banker, he saw opportunity and incorporated the Bank of Saf- ford. His bank opened on June 5, 1899, with only $5,000 in capital. J. N. Porter joined the venture shortly by adding another $5,000 and within weeks the bank had $20,000 in deposits. IE 2390. Birds-eve 11iew Town of Globe, Arizona.. Page 20 Paper Money Whole No. 103 The mining town of Globe, Arizona Territory, as shown on a postcard mailed July 6, 1909. Card from the John Hickman collection. Smelling opportunity in this business, Porter and Holt went to Globe and, with 25 locals, they incorporated the Bank of Globe on October 13, 1899. We won't see Holt again, because in 1900 his health was improved and he departed for California where he would make an even bigger impact. Among his legacy is his founding of the Holt Caterpillar Trac- tor Company of Stockton. Porter is worth getting to know. He was originally from Texas, having been a bank cashier in Hills- boro. Upon arriving in Arizona, he became owner of a large ranch in the Gila country at the edge of the Apache Reser- vation. He actively financed diverse ventures throughout the area prior to associating with Holt and the Bank of Safford. In the meantime, a Judge George Hormeyer, his wife, and Charles Shannon incorporated the Bank of Clifton on February 24, 1900. Judge Hormeyer died in October, and his wife sold the bank to Porter. Porter quickly reorganized the bank as the First National Bank of Clifton which was char- tered on May 14, 1901. In this venture he took on local associ- ates J. G. Lowden and E. M. Williams. Lowden would serve as the first president of the bank in 1901, and Williams would follow from 1902 to 1917. Shortly after October 22, 1902, Porter reorganized the Bank of Globe as the First National Bank of Globe, and con- tinued to serve as its president through 1910. The Competition Gets Rolling Fate guided an easterner with banking experience into the Solomonville camp in 1899. A. G. Smith—the "A" probably stands for Abijah after his grandfather—was born in 1857 in Plymouth, Pennsylvania, and at 18 years old he entered western banking with the Bank of Golden, Colorado, in 1876. He quickly rose to cashier and in 1890 took over as cashier of the City National Bank of Denver. The City National was taken over in 1895 by the American National Bank of Denver and Smith moved with the business. Fortunately for the Solomonville group, the American National folded in 1897, and was liquidated in 1899. A. G. Smith, looking for another opportunity, contacted an old friend, Harry S. Van Gorder, whom he had known in Golden as a hardware-mining equip- ment merchant. Van Gorder was now running a business in Morenci and invited Smith to look the Gila country over, specifically to visit with I. E. Solomon at Solomonville, then the county seat, to discuss the prospects for establishing a bank there. Smith arrived in Morenci in April of 1899, and by June was installed as secretary of the Solomon Commercial Com- pany at Solomonville. He immediately got involved in buying copper mining claims in the nearby mining district. Under his auspices the idea of a commercial bank germinated and was ef- fected. On December 15, 1899, the Gila Valley Bank of Sol- omonville was incorporated with I. E. Solomon, D. W. Wickersham, A. G. Smith, and several other principals as stockholders. Suddenly J. N. Porter had serious competition, but it would take some time for him to feel it! The new bank opened in a corner of the Solomon Commercial Company store on January 16, 1900, with A. G. Smith as cashier. On January 7, 1902, the title of the bank was changed to the Gila Valley Bank and Trust Company, and Smith was ordered to take advantage of the liberal branch banking laws of the territory and open branches at Clifton and Morenci. These were opened on February 20 and March 5, respectively. Smith's wife served as the assistant cashier at the Clifton branch. Not being able to resist the opportunities in the heart of the Globe mining district, the Smith group opened a branch of the Gila Valley Bank in Globe on July 12. To his additional credit, Smith founded the Arizona Bankers Association at an organizational meeting in Phoenix on November 13, 1903, and was installed as its first vice-presi- dent. The next year he was honored with election to president of the association. Paper Money Whole No. 103 Page 21 Smith Goes to Globe Porter, with his First National Bank, was feeling plenty of competition in Globe. The established E. F. Kellner and Old Dominion Commercial companies, and the Globe branch of the Gila Valley Bank and Trust Company were solidly in place. Even so, A. G. Smith perceived that the town could stand yet another bank. On January 30, 1906, Smith resigned the Gila Valley Bank, and moved to Globe to start the Globe National. He organized his bank on April 12, 1906, and was soon to of- fer stiff competition to both Porter and his old friends at the Gila Valley Bank. As will quickly become evident, Porter, Smith, the Solomons, and Wickersham, although fierce competitors, were friends, and felt a common bond, having cut financial history on the Arizona territorial frontier. Porter's Associates Two principals figure prominently in Porter's banking ventures—P. P. Greer and James N. Robinson. Both were born in Texas and moved to Arizona at early ages. Robinson was born in Kimball on February 2, 1882. His mother, Louise, was Porter's sister, and the family moved to Globe when Robinson was 11 years old. Porter installed Robinson as an assistant cashier in the First National Bank of Clifton, a capacity he held from 1901 to about 1904. Next he moved on as vice-president to the Bank of Safford. With this excellent experience under his belt, he was promoted to a di- rector and cashier of the First National Bank of Globe, serving as cashier from 1907 through 1918. P. P. Greer was ten years older than Robinson, born in Bosque County, Texas, and first became acquainted with Porter, who hired him as a forwarding agent and bookkeeper in a venture at Fort Thomas, Arizona Territory. Greer had a good aptitude for business so Porter, using old banking con- tacts, sent him to Hillsboro, Texas, to gain banking ex- perience. On Greer's return to the territory, Porter installed him as cashier of the Bank of Safford, a post he held from 1900 to 1903. Next he moved on to the First National Bank of Clifton, where he held the position of cashier between 1903 and 1906. When he was ready for the big time, he was made vice-president of the First National Bank of Globe. By 1907 the Porter-Robinson-Greer team was in place at Globe, center of Porter's operations. The financial prospects for Globe never looked brighter. Copper was selling for record prices; it would reach 24.9 cents per pound in May, 1907. Deposits in the First National Bank of Globe were three-quarters of a million, and the new Globe National had amassed $287,000 in deposits. The Gila Valley Bank was doing so well that a 17.5 percent dividend was de- clared for its shareholders after just the first six months of operation in 1907. The Money Panic of 1907 As the dark clouds began to dim the financial fabric of the nation in 1907, copper took center stage in the ruinous con- traction that burst the bubble in the Territory of Arizona. Copper was being overproduced in the wake of improved tech- nology and surpluses were being stockpiled at the mills. The price of copper began a precipitous decline from the May, 1907 price of 24.9 cents per pound. It sank to 20 cents in July, 17 cents in October, and a disastrous 12 cents in November. When the price slipped below 18 cents, marginal mines in the Globe district began to close. As the price spiralled downward, more and more laborers found themselves out of work. In dis- tant eastern cities, the stock market was collapsing, Col. Green was on the ropes, and runs were beginning to develop at the nation's banks. The psychological shock came when the Knickerbocker Trust Company, second largest of New York's banks, failed on October 23. Credit in the financial centers serving Globe, including El Paso, Los Angeles, and San Francisco, was tightening, thereby freezing reserves. The larger Globe mines began paying their employees with drafts, and the community was asked to accept these as cash. The first Globe bank to develop serious trouble was Smith's newly formed Globe National. There is no specific reason that lines seemed to develop at its windows other than the fact that it was the youngest bank in town. Smith appealed to Porter at the First National for help and Porter quickly loaned the bank additional cash. It didn't help. When word got out that Porter had loaned money to the Globe National, lines began to grow at his bank as well. Meanwhile, all the Globe bankers were sweating and exchanging proposals to stem the drain on deposits. A clearinghouse was established in Clifton and Morenci which authorized itself to issue as much as $66,667 in 1907 panic scrip backed by accumulated bank assets of $1.50 for each $1 circulated. That move took pressure off the Clifton- Morenci banks. A concurrent plan was formulated in Globe. On October 29, representatives of the First National, Globe National, Gila Valley, Old Dominion, and E. F. Kellner banks met to organize and finance a scrip issue of their own. P. P. Greer represented the First National. Unfortunately the cashiers checks that they issued didn't work. Panicky de- positers wanted cash. Soon scrip was printed but it, too, failed to alleviate anxieties. J. H. Page, territorial auditor, heard of the problems in Globe and arrived on the scene in the first days of November. After sizing up the situation, he ordered the Globe National Bank closed on November 4. The bank was declared insolvent on November 9 and a receiver, H. D. Marshall, Jr., was ap- pointed to take over its affairs. Of an original $287,000 in deposits, $150,000 remained in the bank when it was sus- pended, and these assets were now indefinitely frozen. Next to fall was the First National of Globe, which was suspended on November 21, and declared insolvent on November 22. Porter's generosity in going to the aid of the Globe National was rewarded by having $530,000 in remaining depositors' assets locked into a receivership. By this time, the Globe Clearinghouse certificates were finding their way into circulation and although the people didn't particularly care for them, they began to circulate. Author Hopkins documents two highly visible events which turned the tide of withdrawals at the three remaining Globe banks. A miner waded through the lines at the Morenci branch 4.19140:40- 4+1041+' .1.1&1,4; segttem.c.....mmy Illitifil5TATESOFAMERICA 76137414 xtTtipr-,wos, 6579 (.0 `. • n1.1444141141i, 1 tal 2564 . og"'416 r Liktittla R18850:-- It ( (1) (01,1)111.1t 9193 (7) clataiMaam_ r11, Gita k•learadaaAMA TWICNPYril)(1,614.40* Nallitriudirrnionitt*, UNIIEOSTATESOfIMERICA "; V205926E 6579 1,61.1144let'..4 1711iNr !.1,(414∎41, :%45,4 ..L.tx.443,35> 11184 Page 22 Paper Money Whole No. 103 of the Gila Valley Bank where jittery people were demanding withdrawals. When his turn came, he placed $1,200 that he had previously withdrawn on the counter and asked that it be redeposited. Cashier Moore, on the other side of the counter, loudly exclaimed, "You're depositing $1,200 in this bank!" In reply the miner explained that he was more fearful of his house burning down and losing all his money than he was of having the bank fail and losing only part of it. The line behind him melted away, and soon depositors were coming back to the bank. The second instance developed at Globe. A boisterous tamale vendor who plied the streets of Globe liked the Globe clearinghouse scrip. As soon as the scrip began circulating, he yelled, "Bring on your shin plasters! Cash 'em in tamales! I'll take 'em all!" Shortly thereafter the scrip circulated without substantial resistance; after all, the people reasoned, they could always eat tamales. By January, 1908, the panic was over and Globe began to recover. However, almost $700,000 were frozen in the closed Globe and First Nationals. Porter was looking for cash, and Smith in the Globe National was rather dependent upon his success. The Gila Valley Connection During the period of copper growth in the Globe- Morenci-Clifton area, the Gila Valley Bank took on new shareholders, mostly mining men who fueled the bank's ex- pansion with new capital. Gradually these men emerged as a dominant force in the bank. The old Solomonville group head- ed by I. E. Solomon and W. D. Wickersham began seeing the handwriting on the wall—they were no longer essential to the operation of the bank. In early 1908, the mining interests in the Gila Valley Bank gained a majority, yet they reinstalled Solomon as vice-president and Wickersham as president. It was clear, however, that the Solomonville group had entered an era where their minority interests were permanent. They were inclined to retreat to the southern end of the Gila country and realign with the agricultural sector. Porter's failure gave them the perfect opportunity. The Bank of Safford was still open, having escaped the 1907 crash. In early 1908, Solomon and Wickersham negotiated an agree- ment with Porter whereby they would infuse the First National Bank of Globe with cash, thereby also bailing out the Globe National. In exchange they would gain control of the Bank of Safford. On March 15, 1908, the First National deal was an- nounced, the First National Bank having been restored to solvency February 27. The Globe National was likewise re- stored to solvency on May 23. Solomon and Wickersham were hailed as local heroes. Officers of the reopened First National included J. N. Porter—president, D. W. Wickersham and I. E. Solomon—vice presidents, and P. P. Greer—cashier. Simultaneously Wickersham and Solomon resigned their posi- tions and sold their interests in the Gila Valley Bank. On March 16, 1908, the announcement was made that the Bank of Safford had been reorganized on March 13th. Its president was D. W. Wickersham, and its vice-presidents in- cluded I. E. Solomon and J. N. Porter. Porter, the previous controlling owner, was definitely in a minority position. J. N. Robinson, J. C. Robinson (J. N.'s father), and P. P. Greer were also listed as incorporators of the reorganized bank. Series of 1882 Date Back territorial from the First National Bank of Clifton, a bank organized in 1901 by J. N. Porter with locals J. G. Lowden and E. M. Williams. Williams signed this note as president. Both J. N. Robinson and P. P. Greer worked for Porter in this bank before moving up to the First National Bank in Globe. Series of 1902 Date Back territorial from the First National Bank of Globe signed by J. N. Porter, pioneer Globe banker, and early princi- pal J. N. Robinson. Series of 1902 Red Seal territorial from the Globe National Bank signed by A. G. Smith as cashier. Smith was instrumental in founding the Gila Valley Bank of Solomonville before leaving that bank to found the Globe National Bank in 1906. G. S. Van Wegenen signed as president. Series of 1902 Plain Back from the First National Bank of Globe signed by P.P. Greer, early principal, and J. T. Brown. Greer and Brown reorganized the bank under a state charter to form the Copper Cities Bank of Globe in 1924 ending the 22-year life of the First National Bank. Paper Money Whole No. 103 Page 23 1982 view of the Globe branch of the Gila Valley Bank built in 1909 on the corner of Mesquite and Broad streets. The Gila Valley Bank was ultimately the big winner in the Globe banking community, eventually developing into the Valley National Bank of Phoenix which is one of the largest banks in the west today. Interior of the Bank of Miami, Arizona, as shown on a postcard mailed Nov. 6, 1919. Card from the John Hickman collection. J. N. Porter and P. P. Greer were principals in organizing this bank. The hank was merged into the First National Bank of Globe in 1924 as part of the move to reorganize the First National Bank as the Copper Cities Bank. The Miami bank operated thereafter as a branch of the Copper Cities Bank and later as a branch of the Old Dominion Bank. Paper Money Whole No. 103Page 24 Within six months, Solomon and Wickersham disap- peared from the First National of Globe. By then both the First National and Globe National were soundly on their way to recovery and the press hardly noticed the withdrawal of these benefactors. The Gila Valley Bank was under new, ag- gressive management, and was propelling itself into a posture that would dominate banking in Arizona. For the purposes of this story, we shall take leave of the Gila Valley Bank at this point. Recognize that its founders—Porter's continous com- petitors—had salvaged Porter's Globe bank, and in return had gained control of Porter's Bank of Safford. With the Bank of Safford, Solomon and Wickersham were able to return to the agricultural part of the Gila Valley where they had roots. Post-1907 Recovery As the bank tree shows, the Globe National was pur- chased by the First National on January 11, 1910. During this same period, Cook and Company Bankers of Globe was estab- lished as a co-partnership consisting of J. N. Porter, P. P. Greer, W. D. Fisk, and J. N. Robinson. On March 24, 1910, they incorporated this private bank as the Bank of Miami. W. D. Fisk went on to help incorporate the Bank of Superior, which was the reorganized successor to the Superior Commer- cial and Trust Company. On September 30, 1924, the Bank of Miami and Bank of Superior were consolidated into the First National Bank of Globe, and the First National Bank of Globe was liquidated and reorganized by P. P. Greer, now president, and his cashier, J. T. Brown, as the Copper Cities Bank of Globe. The Miami and Superior banks were operated as branches of the Copper Cities Bank. In less than two years, the Copper Cities Bank was pur- chased by the Old Dominion Commercial Company, an old Porter competitor, and the new entity was renamed the Old Dominion Bank of Globe. It maintained the Miami and Superior branches, and opened a very distant branch in Yuma in 1930. By the time the First National Bank of Globe was reor- ganized as the Copper Cities Bank, J. N. Porter had retired from the bank. P. P. Greer and J. N. Robinson did not appear in the Old Dominion Bank or its predecessor as far as I can de- termine. The result is that by 1926, the Porter-Robinson-Greer alliance seems to have faded into history. Postscript The sad fact is that the Old Dominion Bank became a casualty in the Great Depression. Its doors were closed on April 15, 1932. The failure probably could have been avoided if the hustling pioneer bankers had been on the scene because the bank wasn't in that bad a shape. Ultimately in March of 1937. the receiver paid the final dividend to depositors bring- ing their total recovery to 86.6 percent of their 1932 deposits. A 14 percent loss in a failed bank is not that bad based on the dividend records I have seen for western banks. Sadly, too, the historic Bank of Safford failed on May 27, 1932. Depositors in this country bank took a bath—they received dividends amounting to only 24 percent of their deposits, the last small payment of 2 percent being declared November 8, 1937. Literature Review by Barbara R. Mueller, NLG Money of Their Own—The True Stories of the World's Great- est Counterfeiters, by Murray Teigh Bloom, 320 pages, hardbound, from BNR Press, 132 East Second St., Port Clinton, OH 43452. Price $17.95 plus $1.00 postage. The BNR Press has released an "updated and illustrated" edition of Murray Teigh Bloom's 1958 book about counter- feiting—Money of Their Own. The information on the verso of the title page does not make clear the ways this edition dif- fers from the original but gives a copyright date of 1982. Evi- dently the original pages were reproduced by a fine offset pro- cess; then at the end of many of the chapters a continuation was added. A reader who is discerning about typefaces can spot where the old reprint ends and the addition begins, but the average reader may never notice the subtle transition. In some instances the content of the addition does not blend in smoothly with what has gone before, as no effort was made to invade the original text. In the chapter "The Money Makers of Lecumberri", third to the last paragraph, is the statement: "In 1957, he can ask for `cautional freedom', a Mexican variation of our parole, but prison officials I've spoken to do not think he will be freed until 1960, when he will be sixty years old." Here was an opportunity for an update. No matter, though, if readable, reliable information about the fascinating world of paper currency counterfeiting is your only goal. This edition is enhanced by a very few illustrations, the most dramatic of which shows the $50 United States Note 1874-1880, front and back, hand drawn by Emanuel Ninger and compares it with the genuine through the courtesy of the Secret Service and Gene Hessler, respect- ively. This illustration is reprinted on the dust jacket, where the reproduction is better than in the book itself. One can only marvel at the artistry of Ninger, whose only notable failure showed up in the portrait of Franklin. Subtle differences in the nose and mouth give him away. Ten counterfeiters are profiled, but not all worked in paper currency—Sperati, the stamp faker, for instance. The chapter on Artur Alves Reis is a reprise of Bloom's book The Man Who Stole Portugal. One wishes that the epilogue— "Does Counterfeiting Have a Future?"—had been expanded to include 1982 state of the art technology. As it stands, the most recent quotations in it are from the 1950s. Nevertheless, the book should be on every syngraphist's shelf for reference and entertaining reading. Paper Money Whole No. 103 Page 25 BUREAU OF ENGRAVING AND PRINTING COPE PRODUCTION FEDERAL RESERVE NOTES PRINTED DURING OCTOBER 1982 SERIAL NUMBERS SERIES FROM TO QUANTITY ONE DOLLAR 1981 B 88 320 001 D B 99 840 000 D 11,520,000 1981 B 00 000 001 E B 33 280 000 E 33,280,000 1981 B 06 400 001 * B 07 680 000 * 1,280,000 1981 D14 080 001 B D46 080 000 B 32,000,000 1981 I 34 560 001 A I 70 400 000 A 35,840,000 1981 1 01 280 001 * I 01 920 000 * 640,000 1981 J 19 200 001 B J 52 480 000 B 33,280,000 1981 J 01 920 001 * J 02 560 000 * 640,000 1981 K 78 080 001 B K 99 840 000 B 21,760,000 1981 K 00 000 001 C K 14 080 000 C 14,080,000 FIVE DOLLARS 1981 B 19 200 001 B B 38 400 000 B 19,200,000 1981 B 00 640 001 * B 01 280 000 * 640,000 1981 D49 920 001 A F)58 880 000 A 8,960,000 1981 I 11 520 001 A I 21 760 000 A 10,240,000 1981 K 28 160 001 A K 38 400 000 A 10,240,000 TEN DOLLARS 1981 B 03 840 001 B B 20 480 000 B 16,640,000 1981 B 01 280 001 * B 01 920 000 * 640,000 1981 D 15 360 001 A E)25 600 000 A 10,240,000 1981 DOO 652 001 * DO1 280 000 * 256,000 1981 F 11 520 001 A F 21 760 000 A 10,240,000 1981 I 01 280 001 A I 07 680 000 A 6,400,000 1981 I 00 012 001 * I 00 640 000 * 256,000 1981 K 07 680 001 A K16 640 000 A 8,960,000 1981 L 33 280 001 A L,44 800 000 A 11,520,000 TWENTY DOLLARS 1981 B 17 920 001 B B 48 640 000 B 30,720,000 1981 B 01 936 001 * B 02 560 000 * 128,000 1981 D 44 800 001 A D 57 600 000 A 12,800,000 1981 E)00 640 001 * DO1 280 000 * 640,000 1981 I 00 000 001 A I 10 240 000 A 10,240,000 1981 I 00 012 001 * I 00 640 000 * 256,000 1981 K 29 440 001 A K40 960 000 Pi 11,520,000 1981 K 00 652 001 * KO1 280 000 * 256,000 1981 L 07 680 001 B L19 200 000 B 11,520,000 FIFTY DOLLARS 1981 B 16 640 001 A B 26 880 000 A 10,240,000 1981 B 00 652 001 * B 01 280 000 * 256,000 1981 I 01 280 001 A I 02 560 000 A 1,280,000 1981 I 00 016 001 * I 00 640 000 * 128,000 ONE HUNDRED DOLLARS 1981 B 19 200 001 A B 25 600 000A 6,400,000 Page 26 Paper Money Whole No. 103 • INTERESTING NOTES 'BOUT INTERESTING NOTES © 1983 Roger H. Durand • The Internal Revenue Versus The Washington County Bank T HE title of this article reads as if it were yesterday'sheadline. It seems that everyone's thoughts are uponthe April 15th deadline for filing our income tax. With this thought in mind, it would follow that the Washington County Bank looks as though it is guilty of some sort of tax evasion, or at least, is under investigation by the Internal Revenue Service. Well, the Washington County Bank actually was under investigation by the Internal Revenue, not in 1983 but 120 years ago, and not for income tax but for taxes as a result of the enactment of the National Bank Act of February 25, 1863. This story about the Washington County Bank really begins with the formation of our federal government; spec- ifically, with the adoption of our Constitution. It is important for us to note that the Constitution delegated certain specified powers to the federal government and others to state govern- ments. All citizens are subject equally to both governing bodies, each of which is supreme within its jurisdiction. The degree of power in government between the central and local authorities varies from state to state. The banks were always under the jurisdiction of state law since the very first bank was chartered in 1781. With the passage of the National Bank Act, banking came under the jurisdiction of the federal govern- ment. Taxes were levied on the banking industry and the Bureau of Internal Revenue was given the dubious designation as the collection agency for these taxes. When the federal government was established, Congress was given the use of the taxes on custom duties and all other excise taxes. The states retained the right to tax property and individuals. The taxes remitted to Congress were indirect taxes and were the chief form of income for the federal government. They fell into two categories—custom duties on imported goods, and excise taxes which were levied on the goods pro- duced within the boundaries of our country. These excise taxes are internal revenue. Part of the Treasury Department was assigned the task of collecting these taxes, i.e., the Bureau of Internal Revenue. This bureau is under the supervision of the Assistant Secretary of the Treasury of the United States and is directed by a commissioner. Besides the collection of taxes, the bureau is in charge of the enforcement of the internal revenue laws. It has two main divisions—the field audit service and the collection service. A Constitutional amendment passed in 1913 allowed Congress the right to levy personal income tax. With this change in our laws, the term internal revenue fell into misuse. People today associate this department with the col- lection of personal income tax and the tax on the profit of companies. This department is actually in charge of collecting all the taxes due within our borders which consist of excise, in- heritance, income and any other tax levied by Congress other than custom duties. Years ago, among others, one of the more important taxes collected by the bureau was the tax on to- bacco. It provided what was probably our country's largest source of revenue for many years. It should also be noted that the taxes imposed on state banks came under the jurisdiction of this department in 1863 with the passage of the National Bank Act. Paper Money Whole No. 103 Page 27 The National Bank Act per se authorized and made obligatory to conduct business, National charters for banks and gave them the privilege of issuing currency secured by United States government securities. The object of the law was to increase the demand for government bonds; however, the principal result was the elimination of the state bank notes. The new National Bank notes were uniform in design and quality and were a welcome relief to a public that was tired of being duped in many instances with state bank notes that were discounted or worthless. Banks were affected in an entirely different way. One of their largest sources of revenue—unredeemed and discounted currency—was eliminated. No longer able to issue notes at their discretion under favorable state charters, the banks were now required to pay a tax to the federal government on their entire circulation. The law also forced the banks to maintain a minimum amount of capital—$50,000 had to be maintained by banks in a city with a population of 6,000 or less; $100,000 in cities with from 6,000 to 50,000; and at least $200,000 in cities with populations of over 50,000. In addition, an amount equal to one-third of this capital, or $30,000, was to be deposited in United States bonds, and upon deposit of these bonds with the Comptroller of the Currency in Washington the National Banks were allowed to issue bank notes for up to 90 07o of the value of the bonds for circulation. The banks that did not obtain a National Charter and with their principal source of revenue (the profit made on their circulating curren- cy by discounting) no longer available to them, in most cases were abolished and many went into receivership or merged with other banks to form one National Bank. Country banks, as the banks in these desolate areas were called, took advantage of the situation and in many cases decided not to comply with the new federal law. For many years, these banks profited by their unique situation. They cir- culated their bank notes as far as possible from their location with the hope that they would never see them again or at least that there would be a long lapse of time before they had to make good on them. Bank officers made enormous profits on these circulating notes and they tried to prolong the situation as long as possible. They assumed that the Bureau of Internal Revenue would encounter so much difficulty in locating them that they could continue operating as if the law did not exist. Of course, they were sadly mistaken. In some cases it took several months but in time every bank in the country complied with the new law or was forced to close. Years ago in old New England the manufacture of textiles was one of the most common industries. The mills that housed the looms usually were by the side of streams or rivers. Water power was the chief source of energy used to run the machinery. As the rivers made their way to the ocean, mills were built by the side of most of the natural dams and other dams were built where the terrain would permit their construc- tion. After the mills were built, homes for the workers crept up near them. Soon, a town was born, with churches and schools, and as the population expanded, banks were erected. One such typical town was the village of Carolina Mills. It was located in the southwestern corner of Washington County in Rhode Island in one of the most remote areas of the state. The mill the town was named after was located on the banks of the i tea 5 It tit 10 epartutrItt, CrJtfitt at 3 it *nui Rehm-Iv l?'///////Sri,”, ./(r /ilf/( 4///:(ze< Fig. 1. Envelope containing notification about the newly-enacted National Bank Act and franked by Joseph G. Lewis. Commissioner of the Office of Internal Revenue. The new banking law was easily enforceable in large cities. But in the case of the banks in remote areas, sometimes just locating them presented a problem. At that time in our history, communication was difficult, transportation was slow and in some areas, hazardous. Problems with the Indians in remote areas were commonplace. All the major cities in the East were connected by large roads or turnpikes. Several were toll roads but at least transportation by stagecoach was fairly tolerable. Of course, if the railroad passed by, there was no problem at all. The only way to travel to the remote towns was by horse- back or by walking. In either case, transportation was exceed- ingly slow and difficult. Wood River. Even today, Carolina, Rhode Island is still what one would call a whistle stop—a rural town with minimum population which never expanded since its incorporation. The word "Mills" has been dropped from its original name. The Washington County Bank was incorporated in 1856 at Richmond, Rhode Island, a small town not far from Caro- lina Mills. Shortly thereafter, the bank moved its location to Carolina Mills, probably to accommodate the expanding tex- tile industry in the town. R. G. Hazard was the president and J. H. Babcock, the cashier. Very little information about the bank is available to the student of Rhode Island banking Paper Money Whole No. 103 Page 28 No. 93. Craciarq Mifirt of Ottirrnal Ilturitur, 4, • 1)ECISION CONCERNING TAX ON CIRCULATION AND DEPOSITS. By the seventh section of an act entitled " An act to provide ways and means for the support of the Government," all banks, associations, corporations, and individuals issuing notes or bills, for circulation as currency, are required to make a return on the first day of October, 1863, and each six months thereafter, to the Commissioner of Internal Revenue, in the manner by him prescribed, of the average amount of such circulation during the half year then preceding, with payment of tax as follows : Banks, associations, corporations, and individuals having a capital not exceeding $100,000, one per cent. on the excess of the average circulation over ninety per cent. of the capital; one-half per cent. on the average circulation not exceeding ninety per cent. of the capital. Upon banks having a capital exceeding $100,000, and not exceeding $200,000, one per cent. on the excess of the average circulation over eighty per cent. of the capital ; one-half per cent. on the average circulation not exceeding eighty per cent. of the capital. Upon banks havi ng capital exceeding $200,000, and not exceeding $300,000, one per cent, on the excess of the average circulation over seventy per cent. of the capital; one-half per cent. on the average circulation not exceeding seventy per cent. of the capital. Upon banks having a capital exceeding $300,000, and not exceeding $500,000, one per cent. on the excess of the average circulation over sixty per cent. of the capital; one-half per cent, on the average circulation not exceeding sixty per cent. of the capital. Upon banks having a capital exceeding $500,000, and not exceeding $1,000,000, one per cent. on the excess of the average circulation over fifty per cent. of the capital; one-half per cent. on the average circulation not exceeding fifty per cent, of the capital. Fig. 2. Internal Revenue document explaining the new bank tax as sent to the Washington County Bank. Paper Money Whole No. 103 Page 29 Upon banks having a capital of over $1,000,000, and not exceeding $1,500,000, one per cent. on the excess of the avermre Circulation over forty per cent. of the capital; one-half per cent. on average circulation not exceeding forty per cent. of the capital. Upon banks having a capital exceeding $1,500,000, and not exceeding $2,000,000, one per cent. on the excess of the average circulation over thirty per cent. of the capital; one-half per cent. on the average circulation not exceeding thirty per cent. of the capital. Upon banks having a capital of over $2,000,000, one per cent. on the excess of the average circulation over twentv-five per cent. of the capital; one-half per cent. on the average circulation not exceeding twenty-five per cent. of the capital. Fractional notes, or bills issued or re-issued subsequent to April 1st, 1863, are subject to a (Ink- of live per centunt upon the amount of such fractional notes or bills, payable semi-annually. In the case of banks with branches, the duty is imposed upon such branches severally, and the amount of capital of each branch shall be considered to be the amount used by such branch. Each branch will account for the amount of circulation actually employed, whether furnished by the branch or by the parent bank. All banks, associations, corporations, and individuals receiving deposits of money, subject to payment on check or draft, (except savings institutions,) must pay a duty of one-eighth of one per centurn each half year, from and after April. 1st, 1863, upon the average amount of such deposits beyond the average amount of circulating notes or bills lawfully issued and outstanding• as currency. When deposits are received and no notes are issued as currency, the tax must be paid upon the average amount of the deposits. Taxes will be estimated upon the average of the daily or weekly statement of circulation and deposits. relurn, and the payment of the tax, is required within thirty days succeeding April 1st and October 1st in each year, under a penalty of live hundred dollars for default. The first return under the law is required in October, 1863, for the six months then preceding. Blanks will be furnished from this office. The amount of tax should be deposited with the nearest United States Assistant Treasurer, or Designated Depositary, and the original certifi- cate thereof sent with the return; but, if more convenient, payment may be made in United States notes. Fig. 2. continuation of Internal Revenue document. history. The bank had other officers for a time, as is evident from the signatures on some of its bank notes. When word reached this small community about the Na- tional Bank Act, it seems obvious that the officers of the bank chose to ignore it. The first known notification that the bank received was from Joseph G. Lewis, the Commissioner of In- ternal Revenue. It arrived late in June, 1863 (Figure 1). This correspondence explained the newly enacted National Bank Act and informed the bank of its obligation to pay a tax on its circulating notes (Figure 2). The envelope also contained a semi-annual return form which was to be completed by the cashier and returned with the appropriate amount of tax due the Treasury Department (Figure 3). Evidently the bank chose not to comply with the government's request and by the mid- dle of August, 1863, it received another letter from the Office of Internal Revenue. This letter was mailed by the Deputy Commissioner, Edward McPherson (Figure 4). This cor- respondence was addressed directly to the cashier of the bank although the Treasury Department did not know him by name, as can be seen in the illustration (Figure 5). The letter was ac- companied by an extract from an act amendatory of the Inter- nal Revenue Laws, approved March 3, 1863 (Figure 6). Apparently the bank decided not to pay the taxes imposed on it by the National Bank Act and it did not obtain a National Bank charter. In fact, it probably tried to avoid the enforce- ment of the law because during this time span the location of the bank was moved to the town of Charlestown, about five miles away. We have to remember that banks, especially coun- try banks, were not housed in elaborate buildings as we know them today. They usually operated from a room in a commer- cial building such as a tavern or even from a room in a regular house. If the officers intended to continue operations, and ap- parently they did, they would have to avoid any direct con- frontation with the Internal Revenue. By moving the location to another town and taking into consideration the lag in time that it would take for the Internal Revenue to locate them, the bank would have had months, if not a year or more, to con- tinue circulating its currency. Some time during 1865, the bank went into receivership. The officers were guilty of avoiding the tax imposed by the Treasury Department but they apparently did not want to de- fraud their note holders. From all accounts, it seems that they continued to redeem their notes until the bank's failure. The --7===========7... .. AM0UNT. RATE. TAX Dr E. Amount, of fractional note circulation 5 per cent. Average amount of circulation taxable at Do, do. do. do. I per cent. per cent. Average at tount of taxable deposits A per cent. (38.) jcySEMI -ANNUAL RETURN 1n Association,Banks, ssociatio, and individuals issuing - Notes or or circulation as Curren , and receiving- deposits of Money subject to pagment on check or draft, SEcTioN ACCOUNT of the amount of fractional note or other circulation, and of average alliOttlit of deposits received in , in the execs: of circulation, by of , a id in the pp Collection District of the State of , fm. the six months ending 1/L°.-186 with, ihe tax thereon, pursuant March 3, 1863, viz: to anentitled"An act to provicle Way S and means to support the G overnment," approvedact entitled ( Signed , do swear, that the amount of capital of the is and that this account contains, to the best of my knowledge and belief, a true and fitithrul statement of the amount at tax which has accrued during the time, and according to the provisions of the act aforementioned. Sworn m,(1 subscribed before me, this (biy of . 186 . (Signed ) NoTt:.--Payinent el tax not,t in all cases acc otn1iniiy this stzt,tement, which is to be preorcd iii a,co,dance with Decision No. 9l, issued by the Commissioner of Intenntl l evenn , •. 1>auk n`=-h.u. es not issuing notes as circulation will not be required to state the :mount of capital enyloyod, Paper Money Whole No. 103 Page 31 i.rritgurn (office of -Internal It ttlenttc MAz//1 iwr/ I (e_ v//// A 2,/' Fig. 4. Second envelope addressed to the Washington County Bank about its non-compliance with the NBA and franked by Edward McPherson, Deputy Commissioner of the Office of Internal Revenue. OFFICIAL. Tilttftvittrq britartiorttf. Offi‘c of 3fItternal Iret,Tcuttr, fit4411., ,,,0a?e4 iS36c5'. EX 111 A CT FROM AN ACT AMENDATORY OF TILE INTERNAL REVENUE LAWS, APPROVED MARCH 3d, 1863. "SECTION 14. And be it further enacted, That every incorporated bank, or other bank legally authorized to issue notes as circulation, which shall neglect or omit to make dividends or additions to its surplus or contingent fund as often as once in six months, shall, in lieu thereof, make returns, under oath, to the Commissioner of Internal Revenue, on the first days of January and July in each year, or within thirty days thereafter, of the amount of profits which have accrued or been earned and received by said bank during the six months next preceding said first days of January and July; and, at the time of making such returns, shall pay to the Commissioner of internal Revenue a duty of three per cent. on such profits, and shall be subject to the provisions of the eighty-second section of the act to which this is an addition : .Provided, That the return for the first of January, eighteen hundred and sixty-three, shall be made within thirty days after the passage of this act." You will please make return and payment in accordance therewith. Fig. 6. Extract of Internal Revenue laws sent to Washington County Bank. Page 32 Paper Money Whole No. 103 ©DirTi_:o1-14A -Pa4, itrimap, gepartment, Mffitoii1f31utmol trealoo, (r) / / • ,/ ra /a z,e7 ‘.:( // / ,.: L 7 l'G' N.! e!. . ie .:': //2‘_./ i i • Ze /,'. 7 C7-d---;(1 ) 1"V:7V 1)(11.1•Atli.,4 p ,:r1R Page 42 Paper Money Whole No. 103 44444444.1.4.m.m.e. ,4401,44444.4. ATTENTION PAPER MONEY COLLECTORS OF NEW ENGLAND! Don't Miss the "Biggest" Little Coin & Paper Money Show in the Areal "The Mansfield Numismatic Society 10th Annual Coin & Paper Money Show" March 27, 1983 At Ukranian National Home, U.S. Rt. 6, East of Willimantic, Conn. Town Line Near I-84/Rt. 6 Interchange & Windham Airport Featuring these leading paper money dealers . 1. Charles E. Straub—obsolete notes & scrip 2. R. J. Balbaton, Inca—U.S. large & small, foreign, obsolete notes & scrip 3. Denley's of Boston (Tom Denley)—U.S. large & small, foreign, obsolete notes & scrip 4. Kennehunk Coins (Frank R. Trask)—U.S. large & small, foreign, obsolete notes & scrip 5. Dennis Coins & Stamps (Kenneth Elwell)—obsoletes, stock certificates, ephemera 6. Warwick Associates (Harry Williams)—checks, U.S. large & small, obsoletes, ephemera 7. Roland Hill—U.S. Notes, Nationals, ohsoletes, numismatic literature 8. Chet Grabowski—U.S. Notes, checks, paper ephemera 9. Robert Vlack—Colonial coins & currency, foreign coins, obsolete U.S. & Canada 10. Twenty other coin & paper money dealers—various specialties Bourse Chairman—C. John Ferreri, P.O. Box 33, Storrs, CT 06268, 203-429-6970 Z0IoP►P►Z. P►P Nobody pays more than Huntoon for Anizatila, WYOMING State and Territorial Nationals WANT ALL SERIES, ANY CONDI- TION, EXCEPT WASHED OR "DOC- TORED" NOTES. (MANY TRADES!) PETER HUNTOON P.O. Box 3681, Laramie, WY 82071 $1 FEDERAL RESERVE SETS SALE Superb Crisp New Complete Sets. MIS-MATCHED ERRORS 1957 B SI Silver Certificate The Serial Nos. start with 10 07o Discount on order over $200.00 for any of the U37 & U47, Crisp New $57.50 following $1 F.R. sets (Except when shown "NET") 1977 A $5 Federal Reserve The Serial Nos. Start with Regular Sets Star Sets L445 & L455, Crisp New 82.50 1963 (12) 31.95 (12) 33.95 SUPERB UNCUT SHEETS I963A (12) 30.95 (12) 32.95 I963B (5) 14.95 (4) 16.95 CANAL BANK, LA Sheet (2): $500.00; $1,000.00 1969 (12) 24.95 (12) 30.95 Crisp Nev) $105.00 1969A (12) 24.95 (11) 29.95 FLORENCE BANK, OMAHA Sheet (4): $I - $1 - $3 - 1969B (12) 23.95 (12) 29.95 $5 Cr. New 110.00 1969C (10) 21.95 (9) 49.95 Add $3 for 1st Class Ins'd. Charge 1969D (12) 23.95 (11) 27.95 FAMOUS WADE SALE1974 (12) 22.95 (12) 27.95 1977 (12) 21.95 (12) 26.95 BEBEE'S 1956 Sales Catalogue of the Great James M. Wade 1977A (12) 21.95 (12) 25.95 Collection Et Prices You'd Hardly Believe. Yours for only 1981 (12) 19.95 - - (Postpaid) 5.00 Any Above Set - With last Two Serial LIBRARY SPECIALS No. Matching add $2 Per Set. KRAUSE/LEMKE'S NEW 1st ED. SPECIAL OFFER 1963/81 all 11 Sets (NET) 239.95 Last 2 NOS. MATCH (NET) 259.95 1963/77-A all 11 STAR sets (NET) 294.95 Last 2 NOS. MATCH (NET) 314.95 1976 $2 F.R. SET Set (12) Crisp New. The Last Two Nos. Match. Ppd. $34.95 Similar Set (12) - Serial Nos. do not Match. Only Ppd 30.95 1976 $2 STAR SET Set (11) Crisp New Lacks District 8 ppd $76.95 "Standard Catalog of U.S. Paper Money" . . . A MUST for collectors & Dealers. (With Order $11.75) 514.95 O'DONNELL'S NEW 7th Ed. "Standard Handbook of Modern U.S. Paper Money" Revised and Enlarged. (With Order $12.50). 15.00 BUY BOTH BOOKS Ppd. $24.95 Send 50e for 1982 Bargain List. Try Bebee's - Leading Paper Money Specialists Since 1941. ANA Life #110, PNG, SPMC, Others. ,011■11%4 1.; S inc . "Pronto Service" Omaha. Nebraska 681114514 North 30th Street Phone 402.451-4766 MILITARY PAYMENT CERTIFICATES AND ALLIED MILITARY CURRENCY Please send a large SASE for my listing of U.S. MPC and Allied Military Currency. I am always in the market for the above-mentioned notes and will pay the fairest prices. If my offer is not satisfactory, I will pay your postage. Want list service available. CaeTemb'P.O. Box 8374 ROWLAND HGTS., CA. 91748 (213) 964-6263 GOCIETT OF PEA NONLY Paper Money Whole No. 103 Page 43 MONTANA TERRITORIAL BONDS (as featured in June and August Paper Money) 1867 TYPE I 1872 TYPE II 1876 TYPE III $50 (rare) $185 $500 (#9) $495 $1000 (#81 out of 81 issu- $100 $165 ed, with Gov. B. F. Potts sig.) $595 All bonds shipped ppd. with 7 day return privilege. Also interested in purchasing Western Paper material. Please offer what you have for sale. SOUTHLAND COINS & CURRENCY Lou Rasera SPMC 4773 Box 403, Woodland Hills, Ca. 91365 (213) 348-5275 AFT" 7; el INC w, M t. CONFEDERATE NOTES AND OBSOLETE STOCKS FOR SALE CONFEDERATE Type Number is by Criswell Catalog Number $10 CONFEDERATE Type 26, Fine Cut-Cancelled $16.00 Very Fine Cut-Cancelled $20.00 $10 CONFEDERATE Type 28, Very Good - Fine Cut-Cancelled $ 7.50 $100 CONFEDERATE Type 39, About Uncirculated $12.50 $100 CONFEDERATE Type 41, About Uncirculated $14.00 $2 CONFEDERATE Type 42, About Uncirculated $20.00 $1 CONFEDERATE Type 44, About Uncirculated $22.00 $10 CONFEDERATE Type 59, Extra Fine $ 9.00 $50 CONFEDERATE Type 66, Uncirculated $12.00 $10 CONFEDERATE Type 68, Uncirculated $ 5.00 $5 CONFEDERATE Type 69, Uncirculated $ 7.00 $2 CONFEDERATE Type 70, Uncirculated $12.50 $1 CONFEDERATE Type 71, Uncirculated $12.50 A-Z FINANCIAL AMERICANA 1416 SOUTH BIG BEND BLVD. ST. LOUIS, MISSOURI 63117 314-645-3489 OBSOLETE STOCKS AND BONDS CHICAGO, ROCK ISLAND and PACIFIC RAILWAY CO. Stock Certificate for 100 Shares. Train Center. Or- ange and Black. $ 20.00 PEORIA and BUREAU VALLEY RAILROAD CO. Stock Certificate. Train and Indians Center. Black and White in the 1810's-1870's $ 45.00 ATLANTIC CITY and SHORE RAILROAD CO. Stock Certificate. Streetcar Center. Green and Black For 100 Shares $ 25.00 WAGNER PALACE CAR CO. Stock Certificate. Passen- ger Train Center. Grand Central Station Left and Right. Brown and Black. Punch-Cancelled $ 10.00 ST. LOUIS BRIDGE COMPANY Stock Certificate For 10 Shares Preferred. Ead's Bridge Center. Black and White. Punch-Cancelled in the 1890's $ 30.00 DUBUQUE and SIOUX CITY RAILROAD CO. Bond For $1,000.00. Passenger Train Center. Rare Revenue Stamp Scott Cat. #RN-V1 Red Overprint in 1870's $200.00 CHICAGO, ROCK ISLAND and PACIFIC RAILROAD Bond Far $1,000. Trains and Track Laying Crew Center. Unissued Green and Black $ 25.00 CHICAGO and SOUTHWESTERN RAILWAY COM- PANY Stock Certificate For 100 Shares. Train Center. Rare Revenue Stamp Scott Cat. #RNU1. Green and Black. Punch-Cancelled $ 35.00 DUBUQUE and SIOUX CITY RAILROAD COMPANY Stock Certificate. Passenger Train Center. Black and White. Punch-Cancelled in the 187J's. $ 30.30 OSAGE GRAVEL COMPANY Stock Certificate of the 1920's. Eagle Center. Tan and Black $ 6.00 COMMONWEALTH OF PENN. Bond of 1872. Portrait of Lincoln Left. Governor of Penn. Right. Printed by Ameri- can Bank Note Company, Black and White. Cut-Cancel- led. $200.00 TUNNEL RAILROAD of ST. LOUIS Stock Certificate of 1880's. For 10 Sharer . Train by Tunnel Center. Black and White. Punch-Cancelled $ 25.00 Page 44 Paper Money Whole No. 103 BANKNOTES ARE OUR BUSINESS IF YOU ARE SELLING: We are seriously interested in acquiring large size and scarcer small size United States paper money. We are interested in single items as well as extensive collections. We are especially in need of national bank notes and we also buy foreign paper money. If you have a collection which includes both paper money and coins, it may prove in your best financial interest to obtain a separate bid from us on your paper money as we deal exclusively and full time in paper money. We will fly to purchase if your holdings warrant. IF YOU ARE BUYING: We issue periodic extensive lists of U.S. paper money, both large size, small size and fractional. Our next list is yours for the asking. The VAULT Frank A. Nowak SPMC 933 P. 0. Box 2283 Prescott, Ariz. 86302 Phone (602) 445-2930 Member of ANA, PMCM From three cent (Fractional Currency) to $1000 Federal Reserve, Gold Notes, large and small, Silvers, etc. For sale reasonable'pr will tragle—re90% U.S. silVer." Some foreign. InventorY"for three 20c stamps. OVERALL 10028 HeckscherHeckscher Drive Jacksonville, FL 32226 • WOLFEBORO! WOLFEBORO! WOLFEBORO Help me! For a long time I have been advertising for obsolete currency as well as national bank notes ft om Wolfeboro, New Hampshire. (Also spelled Wolfboro and Wolfeborough on early notes). As yet, while I have heard sev- eral times that, "I had one but sold it to someone else last week", I have been able to track down very few of them. So, do what you can! Also want general obsolete currency pre-1865 from other New Hampshire towns. My collection is just beginning, so at this point I can use just about anything and everything! Dave Bowers Box 1090, Wolfeboro, N.H. 03894 (603)569-5095 stoimuisitivict Paper Money Whole No. 103 Page 45 c".**41ra ritAW"b ar■IPIV 61404•1) 15■40411 B RNA SPMC S ANA BUY-SELL-APPRAISALS Please contact us if you have one item or a collection. Top prices paid. We want to buy your notes.' If you collect we offer our ex- tensive list of notes for $1.00. refundable with purchase. ANN & HUGH SHULL P.O. BOX 712 LEESVILLE, S.C. 29070 803/532-6747 e..04114.9 MOM." COM." FOR SALE CURRENCY FOR SALE U.S.A. LARGE & SMALL SIZE CURRENCY INCLUDING: NATIONAL CURRENCY OBSOLETE CURRENCY RADAR & FANCY SERIAL NUMBER NOTES "ERROR" NOTES & OTHER TYPES LARGE MAIL LISTING AVAILABLE FOR A LARGE-SIZE. SELF-ADDRESSED STAMPED ENVELOPE. 10-DAY RETURN PRIVILEGE. YOUR SATISFACTION GUARANTEED. ROBERT A. CONDO P.O. BOX 985, VENICE, FL 33595 Confederate & Obsolete Notes SELL HARRY YOUR MISTAKES Harry wants to buy Currency Errors Also Interested in Buying Nationals • .. Large and Small size Uncut Sheets Red Seals Type Notes Unusual Serial numbers HARRY E. JONES PO Box 30369 Cleveland, Ohio 44130 216-884-0701 NOTE-ISSUING NATIONAL BANKS ALPHABETIC by City Name NUMERIC by Charter Number Don. C. Kelly dak ' liTATESOFAMERICA r° at4001-1-1:P kW' t 10723 ;.:14-476MEDIZ532EV-*.t,...,z4;.:%. S 'Mak 1M4014 3fak '44". -JV Atttaavaai, A useful reference for collectors, researchers, and dealers in national bank notes, the book is divided into two parts: Part one is a listing, alphabetic by town name, of all note-issuing national banks. Following the town name is the state, bank title, and charter number. Part two is a cross reference that lists all towns in numerical order by charter number. If you collect, research, or deal in nationals, you'll find this book a real help. Price: $10, postpaid. Four copies, $25, Order from: THE PAPER MONEY INSTITUTE, INC. BOX 85, OXFORD, OH 45056 1.513-523-6861 •U. S. Obsoletes •U. S. Large & Small Size Type Notes •U. S. Large & Small National Bank Notes BOUGHT AND SOLD FREE PRICE LIST FRANK TRASK SPMC, ANA KENNEBUNK COINS & CURRENCY Shoppers Village, Route 1, Kennebunk, Maine 04043 (207) 985-7431 Paper Money Whole No. 103Page 46 c -4-jefollect Wor for oa .ld, Paper oney, $end r listsT you, viousunds of World Barth notes in s oclz. 50C for Po tage, Please• s ofSERIOUS 5LIEJR w G /NO S°""1-11‘16 E ‘(TEs PAPER MONEYTP■ApFg 1,40/,1Es/ • • ki,)ORI--DpECIN 13'\ NOTES 0S0,501-CrEn ,111 j■10 RI-0 1) NO PROOFS NOTES - s I° TES • ulslITED SIP' -K 8 ' f.t\ ST°L• 01 J7) CHE CKS GARY F. SNOVER CURRENCY OF THE WORLD P.O Box 3034 • San Bernardino, CA 92413 Phone (714) 883-5849 S II 411V & Ctt M4,2 14r . t (Bank Notes, Script, Warrants, Drafts of the AMERICAN WEST Oregon, California, Idaho, Nevada, Arizona, Utah, Montana, New Mexico, Colorado, Dakota, Deseret, Indian, Jefferson Territories! Cash paid, or fine Obsolete Paper traded. Have Proof notes from most states, individual rarities, seldom seen denominationals, Kirtlands, topicais; Colonial, Continental; CSA, Southern States notes and bonds. Also have duplicate West- ern rarities for advantageous trade. JOHN J. FORD, JR. P.O. DRAWER 706, ROCKVILLE CENTRE, N.Y. 11571. WANTED OBSOLETE PAPER MONEY WANTED! Xerox copies of any MISSISSIPPI obsoletes not listed in Leggett's "Mississippi Obsolete Paper Money and Scrip". This is a SPMC sponsored project, the results of which will be published in "PAPER MONEY" as a supplement to the original book. Send Xeroxes to: L. Candler Leggett P. 0. Box 9684 Jackson, MS. 39206 FLORIDA NOTES WANTED ALL SERIES P.O. BOX 1358 WARREN HENDERSON VENICE, FLA. 33595 WANTED! Black & White Pictures of National Bank Notes for Inclusion in the S.P.M.C. Paper Money Library of National Bank Notes Joe Kinney Curator 1133 Lilliam Way, Los Angeles, CA 90038 (213) 465-7056 SOCIETY of P PER MONEY COLLECI ORS IN( Paper Money Whole No. 103 Page 4 7 Page 48 Paper Money Whole No. 103 GRAEME M. TON, JR. 203 47th Street Gulfport, Mississippi 39501 SPMC 3873 PMCM 1593 AAA 93246 (601) 864-5244 SPECIAL NUMBERS SALE At to-day's prices, Low and Special Numbered notes are among the best value acquisitions a collection can have. 0.0 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 • 0 • $1 $1 $1 $1 $1 $1 $2 $2 $1 $1 $1 $1 $1 $1 $1 $1 $5 $5 $5 $2 $2 $10 0 LT LT LT LT LT LT LT LT LT FRB FRB • 0 • 0 • USN USN USN USN USN USN USN USN SC SC SC SC SC SC SC SC SC SC SC FRN FRN FRN 0 1917 (FR 36) B700A CU 1917 (FR 36) B1800A CU 1917 (FR 36) B2000A CU 1917 (FR 37) M1900A CU 1917 (FR 39) N700A CU 1917 (FR 39) N1900A CU 1917 (FR 39) RI000A CU 1917 (FR 39) R1910A CU 1917 (FR 39) R1914A CU 1918 (FR 714) C444444A CU (Solid 4's, Plus small Gutter Error on Reverse) 1918 (FR 718) D344A CU • 0 • 0.0400.0 410 *0.0.0 *0 410 • 0 1928 A00001 183A CU 1928 A00001651A CU 1928 A00001840A CU 1928 A00004200A CU 1928 A00004335A CU 1928 A00004860A CU 1963 A00000189A CU 1963 *00001645A CU 1928 F00000078A CU 1928A S00000116A CU 1935 A00001819A CU 1935A E00000003C CU 1935D T77777778E CU 1935F Y000000101 CU 1935G 0000002691 CU 1957 A00000851A CU 1934 A00000568A CU 1934 B07777777A CU 1934B L11111114A CU 1976 H00000040A CU 1976 A00000398* CU 1974 C11111111C CU • 0 $275.00 225.00 250.00 225.00 275.00 225.00 250.00 200.00 200.00 400.00 250.00 • 0 • 0 • 0 $125.00 125.00 150.00 150.00 150.00 125.00 50.00 30.00 $115.00 75.00 40.00 125.00 85.00 65.00 15.00 15.00 85.00 75.00 85.00 85.00 40.00 275.00 • 0. Please List Alternate Selections - - All are True CU; call them Choice or Gem if you want to. - - FULL RETURN PRIVILEGES - Immediate Refund if not satisfied. - - Extensive Catalogue, over 1,000 selections, free to SPMC members. ESTABLISHED 1974 edatt'q RARE COINS and CURRENCY (BESIDE THE ALAMO) 220 ALAMO PLAZA SAN ANTONIO, TEXAS 78205 (512) 226-2311 It pays to look closely. You know that it pays to look closely when collecting. It does when you are thinking of selling, too. Since you collected with such care, we know you want to be equally as careful when selling. At Medlar's, we take pride in the fact that we've been buying and selling currency for over 25 years. So, we feel we must be doing something right for our many friends and customers. WE ARE BUYING: Texas Currency, Obsoletes and Nationals, Western States Obso- letes and Nationals, U.S. and Foreign Coins. We will travel to you to examine your holdings, Profes- sional Appraisals, or as Expert Witness. Member of SPMC, ANA, PNG, NLG, CPN BOOKS THE DESCRIPTIVE REGISTER OF GENUINE BANK NOTES by Gwynne & Day 1862. 168 pp Cloth bound. 1977 reprint by Pennell Publishing Co. $15.00 postpaid. This book contains descriptions of over 10,000 genuine bank notes from 31 states and terri- tories plus 24 Canadian banks. It also identifies notes known to have been counterfeited. The names and locations of over 800 closed banks are included in the supplements. It is believed that this book was the basis of the famous Wismer Lists published by the ANA 50 years ago. A must for collectors and researchers of obsolete notes. We bound 10 copies in genuine leather and interleaved them with plain pages (for your own notes) and offer them subject to prior sale for $60.00 each. HODGES' AMERICAN BANK NOTE SAFE-GUARD by Edward M. Hodges 1865. 350 pp Cloth bound. 1977 reprint by Pennell Publishing Co. $19.50 postpaid. "Hodgei' " as this book is known, contains descriptions of over 10,000 genuine notes from 30 states, 19 Canadian banks, and the United States notes issued prior to 1865. This 1865 edition was copyrighted in 1864 and at this time the United States was at war with the Confederate States. As a result the listing for six Southern states was not included because they were not a part of the United States. Louisiana was included as in 1864 it was occupied by Union troops under the infamous General Butler. West Virginia was added to this edition as it seceded from Virginia and join the Union in 1863. We have added a section from the 1863 edition (copyrighted in 1862) containing the six states deleted from the 1865 edition making this reprint the most comprehensive Hodges' ever printed. The format used consists of three rows of ten notes listed in rectangles on each page. To quote from E.M. Hodges "The SAFEGUARD is almost indispensable." Collectors will agree with him. We bound 10 copies in genuine leather and interleaved them with plain paper (for your own notes) and offer them subject to prior sale for $75.00 each. THE BANK OF THE STATE OF SOUTH CAROLINA by Dr. F. Mauldin Lesesne 1970. 221 pp Hand bound. University of South Carolina Press $14.95 postpaid. The South had many colorful banks prior to the Civil War, but few could compare with the Bank of the State of South Carolina. From its charter in 1812 until 1881 when its history ended, it was colorful, controversial, and redeemed its issued notes. The "faith and credit" of the State of South Carolina was pledged to back this bank. Dr. Lesesne's account of this bank is interesting reading to both collector of paper money and historical students. Few banks have such detailed accounts of their life as the Bank of the State of South Carolina. The book is annotated and has a wonderful bibliography. If you only read one bank history, and should read this one as it will interest both South Carolinians and non-Carolinians alike. It is just an excellent story of a very important bank. PENNELL PUBLISHING COMPANY P.O. Drawer 858 Anderson, South Carolina 29622 *S.C. residents add 4% S.C. sales tax.