Paper Money - Vol. XXIX, No. 2 - Whole No. 146 - March - April 1990

""•-.....-_1 1 BENJAMIN FRANKLIN STANDARD CATALOG OF Upited States Paper Mopey By Chester I Krause and Robert F. Lemke Robert E. VIldiute, Editor $19.95 (plus $2.50 shipping when ordering direct from the publisher) Twice the Information of Any Other U.S. Paper Money Reference! ALL NEW INFORMATION • The latest pricing data in up to three grades to determine the actual value of your notes • Special 16-pg. "Authentication Guide" details notes positively identified as counterfeit • Many rare notes — $500 and $1000 bills — listed and priced for the first time ever fefi))krause ••45. / publications 700 East State St. Iola, WI 54990 202 pg. 8-1/2 x 11-in., hardbound The most comprehensive, up-to-date, illustrated guide to U.S. paper money from 1812 to date • Complete coverage for 175 years of official paper money circulated by the Federal Government • Listings for more than 5,500 currency items • Over 14,000 market values • Grading guide providing common-sense definitions • In-text cross referencing of Krause/Lemke and Friedberg numeric systems • Historic and economic background information for each major section • Complete National Bank Note listings with rarity ratings for each bank of issue • Identification of all portraits in addition to the actual illustration provided — for accurate identification and enhanced knowledge Yes! Send me copies of the STANDARD CATALOG OF UNITED STATES PAPER MONEY, 8th ed. at just $19.95 each. (U.S. addresses add — S2.50 per hook shipping and handling. Non-U.S. addresses add $5.15) per hook. Payable in U.S. funds.) ( ) Check or money order (to Krause Publications) Name Address City State Zip IMS Amount for books $ Credit Card No. Expires: Mo. Yr Signature Mail with payment to Krause Publications, Catalog Dept. 700 E. State St., Iola, WI 54990 Shipping $ Total amount enclosed $ ( ) MasterCard ( ) VISA SOCIETY PAPER NIONEY COLLECTORS I NC. PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors. Sec- ond class postage paid at Dover, DE 19901. Postmaster send address changes to: Bob Cochran, Secretary, P.O. Box 1085. Florissant, MO 63031. © Society of Paper Money Collectors, Inc., 1987. All rights reserved. Repro- duction of any article, in whole or in part, without express written permission. is prohibited. 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Opinions expressed by the authors are their own and do not necessarily reflect those of SPMC or its staff. PAPER MONEY re- serves the right to reject any copy. Deadline for copy is the 10th of the month preceding the month of publication (e.g., Feb. 10th for March/April issue). Camera-ready copy will be accepted up to three weeks beyond this date. IN THIS ISSUE CONFEDERATE COUNTERFEIT CURRENCY OBSERVATIONS by Henry N. McCarl 37 A BRIEF HISTORY OF FREE BANKING IN MINNESOTA by Steve Schroeder 42 BANK HAPPENINGS by Bob Cochran 49 "MOOSE JAW MONEY" by Fred Angus 50 DETROIT'S PRIVATE BANKERS by Robert D. Hatfield 51 SOCIETY FEATURES INTEREST BEARING NOTES 53 ST. LOUIS AWARDS 53 CANDIDATES FOR THE SPMC BOARD 54 MONEY MART 55 ON THE COVER. April 17, 1990 is the 200th anniversary of the death of American Renaissance-man Benjamin Franklin. This por- trait appears on the $10 refunding certificates dated 1879. This en- graving is based on a portrait by James Barton Longacre. Inquiries concerning non-delivery of PAPER MONEY should be sent to the secretary; for additional copies and back issues contact book coordinator. Addresses are on the next page. Paper Money Whole No. 145 Page 33 Page 34 Paper Money Whole No. 146 Society of Paper Money Collectors OFFICERS PRESIDENT Richard J. Balbaton, P.O.B. 911, N. Attleboro, MA 02761-0911 VICE-PRESIDENT Austin M. Sheheen, Jr., P.O.B. 428. Camden, SC 29020 SECRETARY Robert Cochran, P.O.B. 1085, Florissant, MO 63031 TREASURER Dean Oakes, Drawer 1456, Iowa City, IA 52240 APPOINTEES EDITOR Gene Hessler, P.O.B. 8147, St. Louis, MO 63156 MEMBERSHIP DIRECTOR Ron Horstman, P.O.B. 6011. St. Louis, MO 63139 BOOK SALES COORDINATOR Richard J. Balbaton, P.O.B. 911, N. Attleboro, MA 01761-1911 WISMER BOOK PROJECT Richard T. Hoober, P.O.B. 196, Newfoundland, PA 18445 LEGAL COUNSEL Robert J. Galiette. 10 Wilcox Lane. Avon. CT 06001 LIBRARIAN Walter Fortner, P.O.B. 152, Terre Haute, IN 47808-0152. PAST-PRESIDENT Roger H. 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PUBLICATIONS FOR SALE TO MEMBERS All cloth bound books are 8 1/2 x 11"BOOKS FOR SALE : ALABAMA OBSOLETE NOTES & SCRIP, 1984 Rosene $12.00 Non-member price $15.00 ARKANSAS OBSOLETE NOTES & SCRIP, 1985 Rothert $17.00 Non-member price $22.00 FLORIDA PAPER MONEY, ILLUSTRATED HISTORY OF, (softcover) 1980 Cassidy $16.00 Non-member price $19.50 INDIANA OBSOLETE NOTES & SCRIP, 1978 Wolka $12.00 Non-member price $15.00 INDIAN TERRITORY/OKLAHOMA/KANSAS OBSOLETE NOTES & SCRIP, 1980 Burgett and Whitfield $12.00 Non-member price $15.00 IOWA OBSOLETE NOTES & SCRIP, 1982 Oakes $12.00 Non-member price $15.00 MAINE OBSOLETE PAPER MONEY & SCRIP, 1977 Wait $12.00 Non-member price $15.00 Write for Quantity Prices MINNESOTA OBSOLETE NOTES & SCRIP, 1973 Rockholt $12.00 Non-member price $15.00 NEW JERSEY'S MONEY, 1976 Wait $15.00 Non-member price $20.00 PENNSYLVANIA OBSOLETE NOTES AND SCRIP (396 pages), Hoober $28.00 Non-member price $29.50 RHODE ISLAND AND THE PROVIDENCE PLANTA- TIONS, OBSOLETE NOTES & SCRIP OF, 1981 Durand $20.00 Non-member price $25.00 TENNESSEE-THE HISTORY OF EARLY TENNESSEE BANKS AND THEIR ISSUES, 1983 Garland $20.00 Non-member price $29.50 TERRITORIALS-A GUIDE TO U.S. TERRITORIAL NATIONAL BANK NOTES, (softcover) 1980 Huntoon $12.00 Non-member price $15.00 VERMONT OBSOLETE NOTES & SCRIP, 1972 Coulter $12.00 Non-member price $15.00 on the above books. ORDERING INSTRUCTIONS 1. Give complete description for all items ordered. 2. Total the cost of all publications ordered. 3. ALL publications are postpaid except orders for less than 5 copies of Paper Money. 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., P.O. Box 911, N. Attleboro, MA 02761-0911 Library Services: The Society maintains a lending library for the use of the members only. For further information, write the Librarian - Walter Fortner, P.O. Box 152, Terre Haute, IN 47808-0152. Paper Money Whole No. 146 UNPRECEDENTED! Page 35 The ULTIMATE United States Obsolete Bank Note Reference Is Here! STANDARD CATALOG OF UNITED STATES OBSOLETE BANK NOTES 1782-1866 By James A. Haxby Four volumes, 8 1/2x11, hardbound r You'll find over 2700 pages in four comprehensive, hardbound volumes. This landmark reference work offers you: • Vast amounts of original research, including the most authoritative treatment of counterfeit, raised, altered and spurious notes to date! Where notes of altered origins are documented, unaltered notes are listed as well to help you trace the actual origins of issues in your collection. • The most complete list of state bank engravers (imprints) ever assembled! One more way to attribute your notes. • Prices for each note! For the first time you'll know exactly what a note is worth. Improve your collecting rewards significantly with this vital market data! • Every bank note documented to have been issued is listed. More than 77,000 in all! Use this information to trace those puzzling notes from your collection. • Each listing is accompanied by catalog number; denominations of issue; engraver identifications; issue dates as engraved or hand-written on the notes; overprint colors; and where no photo is available, a detailed description. It's a comprehensive study! • Many notes are pictured for the first time anywhere! More than 15,000 photos make the Standard Catalog of United States Obsolete Bank Notes a tremendous asset in attributing your notes. Books will be available in early November. Reserve your copy now! Still Available — The Standard Catalog of World Paper Money, Vol. II, General Issues. It's Albert Pick's classic listing of government legal tender worldwide! Mail to Krause Publications, Catalog Dept. 700 E. State St., Iola, WI 54990 Send me copies of the Standard Catalog of World Paper Money, Vol. II, General Issues, at $45.00 each. Yes! Send me sets of the all new Standard Catalog of United States Obsolete Bank Notes, 1782-1866 at $195.00 per st. Amount for books Shipping Total amount enclosed Name Address City State Zip ( ) Check or money order (to Krause Publications) ( ) MasterCard/VISA (order billed as Krause , Publications) i■T■ Credit Card No. Expires: Mo. Yr Signature (Obsolete Bank Note Book, U.S. addresses, postage included. Foreign addresses add $18.00 for shipping. For the World Paper Money book, U.S. addresses at $2.50 per book; foreign addresses add $4.50. Payable in U.S. funds) Credit card customers dial toll-free 800-258-0929 8 am-5 pm, CST, Mon.-Fri. Non-orders and Wisconsin callers, please use our regular business line, 715-445-2214. FEE JA5 Igpero: coo.:Ormsb 1852 Present S :43 culk a pore's PAP Page 36 Paper Money Whole No. 146 iLICIIEMMZWZZZICZA[31EX1EZZZZJEZ]lEXXXZMILXIICZXZZIMEZZM3E3EXXXM3r3EMZZ3C3EMX.It. RARE AMERICAN PAPER MONEY BOOKS N Major June 1990 Auction Sale of Important Works from the American Numismatic Library of John W. Adams Featuring: 3 Classic Works on Large Cents, including Correspondence and Manuscripts 3 Magnificent Set of The Numismatist, including Originals of the First Six Volumes 3 Complete Runs of Nineteenth Century American Auction Sale Catalogues 3 A Superb Library of Works on American Paper Currency The Paper Money Books will be available for viewing at the Memphis International Paper Money Show from June 15th to the 17th and will be sold at mail bid sale on June 18th. The remainder of the sale will be a public and mail bid auction sale which will take place earlier on June 1st, 1990 at the Long Beach, California Coin Convention. Copies of the illustrated, large format sale catalogue may be reserved by sending $10.00 before April 15th. After April 15th, the price of the catalogue will be $15.00. Copies of the Paper Money Section only of the Sale Catalogue will be available for $2.00. GEORGE FREDERICK KOLBE Fine Numismatic Books Post Office Drawer 3100 • Crestline, California 92325 Telephone: [714] 338-6527 Fax: [7141338-6980 N *411EZZZZZZZACMEZZZMEZZZZUZZZZZZZIEZIICZMZZ1EZ7EZZMZZZZMICZZZZZZ3CO3 Paper Money Whole No. 146 Page 37 Confederateounterfeiturrency Observations by HENRY N. McCARL, Ph.D. Associate Professor of Economics The University of Alabama at Birmingham INCE the publication of my article "An Introduction to Confederate and Southern States Counterfeit Currency" in Paper Money, Vol. XXVI, No. 5, Whole No. 131, September/October, 1987, there has been much in- terest expressed by collectors in the counterfeit printings of S.C. Upham. An article in the Bank Note Reporter, November, 1988, by Robert S. Larkin, entitled "Upham's 'fac-similes': A peek at private papers of C.S.A.'s most wanted man"' is per- haps the most comprehensive recent discussion of the topic. Due to the increased collector interest and discussion among specialists such as Brent H. Hughes, Ray Waltz, Jim Ruehr- mund. Bob Larkin, Hugh Shull, Grover Criswell, Tom Denly, Arlie R. Slabaugh, Allan C. Hoekzema, and myself, I felt it was time to publish some additional information and observations on the topic of CSA, Southern States and local counterfeit notes of the Civil War period. Table 1 provides the latest, comprehensive summary on the known status of CSA counterfeits. The reader should note that there have been some additions and revisions since my 1987 ar- ticle. Specifically, the addition of varieties CT-8, CR-9, CT-35, CT-40 and CT-49, and the verification of Upham varieties bas- ed on the observation of both block and script imprints of S.C. Upham is the lower and left margins of notes in this author's col- lection and the collections of Brent Hughes, Ray Waltz, Jim Ruehrmund and Arlie Slabaugh. Questions have been raised about my identification of left margin imprints as those of S.C. Upham, since they did not in- clude his name and address. The accompanying photographs of some of these notes should verify to the careful observer the fact that Upham did sponsor several printings of these notes, and that there were variations in the placement of the imprint, as well as the style of the print face of the imprint. It is on the basis of the varieties of the imprint on identified Upham notes that I base my observation that CT-42 and CT-44 are the $2 and $1 counterfeit notes printed by S.C. Upham, as noted in Bob Lar- kin's article in the November, 1988, Bank Note Reporter. I would also point out that CT-45 is an overprinted variation of CT-44. Collectors have yet to identify variety CT-43 in counter- feit, but it would seem likely that it also exists and is the product of S.C. Upham or his printer. It should be noted that S.C. Upham was basically a salesman/promoter, and probably con- tracted the printing of his notes to one or more printers in Phila- delphia. Since at least one "shinplaster" counterfeit, the $0.05, note from Dumries, Virginia, is known with an imprint of another Philadelphia counterfeiter named Storey, there may have been other merchants that used the same printers contract- ed by S.C. Upham. Table 1 Known Counterfeits of Confederate States Currency (Revised September 11, 1989) Type' Year Brief Description Upham' Varieties' XXI 1861 $20 Female Riding Deer Yes 12° CT-8 1861 $50 George Washington 1 CT-9 3 1861 $20 Sailing Ship, "20" at left 0 2 CT-10 1861 $10 Liberty, Shield & Eagle Yes 6 CT-11 6 1861 $5 Liberty & Eagle 0 1 CT-13 1861 $100 Loading Cotton & Sailor Yes 10 CT-14 1861 $50 Moneta & Chest Yes 3 CT-16 1861 $50 Jefferson Davis 4 CT-18 1861 $20 Sailing Ship Yes 5 CT-19 1861 $20 Navigation & Blacksmith Yes 6 CT-20 1861 $20 Industry & Beehive 5 CT-22 1861 $10 Indian Family Yes 6 CT-25 1861 $10 Hope with Anchor (no X) 2 CT-26 1861 $10 Hope with Anchor (red X) 2 CT-28 1861 $10 Ceres & Commerce 2 CT-29 1861 $10 Picking Cotton 2 CT-31 1861 $5 Five Women, Washington Yes 6 CT-33 1861 $5 C.G. Memminger, Minerva Yes 10 CT-35' 1861 $5 Indian Princess 0 1 CT-36 1861 $5 Ceres on Cotton Bale 2 CT-37 1861 $5 Sailor & Cotton Bale Yes 4 CT-39 1862 $100 Train with straight steam 3 CT-40 1862 $100 Train with diffuse steam 3 CT-41 1862 $100 Hoeing Cotton, Columbia ? 4 CT-42 1862 $2 South striking down Union Yes 1 CT-44 1862 $1 Steamship, Lucy Pickens Yes 1 CT-45 1862 $1 Same as CT-44 with green 1 and "ONE" overprint Yes 1 CT-46 1862 $10 Ceres on Cotton Bales 2 CT-49 1862 $100 Lucy Pickens, Green reverse 0 1 CT-56 1863 $100 Lucy Pickens, Green reverse 0 1 CT-58 1863 $20 Capitol at Nashville, Blue rev. 0 1 CT-64 1864 $500 Stonewall Jackson (Havana)" 0 1 CT-65 1864 $100 Lucy Pickens, Blue rev." 0 1 CT-66 1864 $50 Jefferson Davis, Blue rev.' 0 1 The above list is based on the collections and records of the author, as well as those of Brent Hughes, Jim Ruehrmund, Ray Waltz, and Bob Larkin, and the catalog listings published by Hugh Shull, P.O. Box 712, Leesville, SC 29070. Any collector with knowledge of additional counterfeit types would provide a valuable addition to our knowledge of the subject by contacting Henry N. McCarl, P.O. Box 352, Birmingham, AL 35201-0352. Page 38 Paper Money Whole No. 146 Counterfeit Type 22 CSA note, $10 denomination with Indian Family (center) and Corn maiden (right). Three varieties widely recognized as "Upham" types with bottom marginal inscription identifying S.C. Upham as originator on one, and two different left margin inscriptions. This would indicate the production of three printings from basically the same plates. Paper Money Whole No. 146 Page 39 ' 8 5-14H—t i Tj I 4 7 OF' lif(liTe -z:Figig% r,;.•;;;;r4 . 54 ftl, p 1r* 4.7.01:CIV1 O F 1.14 P.Ts XI? -r D tpri.1>:, i NO1E--)Li , WHOLEqAtE AND RE {Aq r SYND,4,6,f1114,EtOliT z,,E,4(„^,CA/7 R 9QNO S OF CO T1t 7t4 • \,.,L1 (0, t: TSt1I for' IVA 111,Ft PA t+11- r O t LI. Itl CI;r r poi W44404 t ak aka ‘kaak 0.4A-u4 X. "4.344 U4. kkf forltegister. eiCen,,terzi MENT OP.AFILL DUES XCEPTEXPO Sold Wholes k and Retail, by S. C. Upham, 403 Chestnut Counterfeit Type 31 CSA note, $5 denomination with five women center. Two varieties of work attributed to S.C. Upham with two different lower marginal inscriptions. One variety has printed serial number "364;" the second printing has space for written serial number. Page 40 Paper Money Whole No. 146 Counterfeit Type 33 CSA note, $5 denomination with C.G. Memming- er (center), Minerva (right). Four dif- ferent printings use two bottom and two left side inscriptions, all recog- nized as "Upham" types. Details show variations in marginal inscrip- tions on what appear to be the same plates. A M 44 Paper Money Whole No. 146 Page 41 FOOTNOTES 1 Type designations are based on the widely recognized 72 types of CSA notes. CT-10 represents the counterfeit note corresponding to T-10; CT-11 corresponds to original T-11, etc. Type XXI is unique and is considered bogus since there is no known original note of this type. However, XXI is known to be contemporary in at least some varieties; two Upham bottom imprint varieties have been observed. 2 Upham imprints have been identified on some varieties of types desig- nated "Yes." Others, designated "?", may or may not have varieties printed by Upham. Those designated by "0," are unlikely to have varie- ties attributed to S.C. Upham. 3 The number of counterfeit varieties is based on observed differences in printing, imprint type faces, printed or handwritten signatures or serial numbers, varieties of color of ink or paper, paper types (including differ- ent watermarks), face or back designed variations, etc. 4 There have been three face printing varieties and seven back designs denoted as well as at least one variety on blue paper. Face-designs have used red, green, and orange with black ink. The twelve varieties indicat- ed here include some plain backs without design; some back designs are limited to certain face color patterns and print variations. The S.C. Upham imprint has been positively identified on this note in two varia- tions, in script and block, type face full bottom imprints with Upham's name and business address in Philadelphia. 5 This note has been classified counterfeit based on the darker inking of the "20" at left and sailing ship in center, but signatures appear genuine for the serial number range, and there is a legitimate question as to whether this might have been an error from original plates rather than a counterfeit type. 6 This note appears to be a period, photographic copy and may not be considered a true counterfeit by some specialists. 7 Very rare original note with one known apparent counterfeit or bogus copy in the collection of Duke University [ref. Hugh Shull correspond- ence, September 3, 19891. 8 A large shipment of these "Havana" notes was discovered aboard a blockade runner from Havana, Cuba, at the Port of Mobile, Alabama in late 1864. The three types of counterfeit notes were described by a Mobile newspaper in an editorial published in early November, 1864. Table 2 presents the most recent summary of state and local counterfeit notes of the Civil War period based on extensive dis- cussions with collectors and data received since my earlier article. Three new types have been identified and Upham imprints have been verified on three notes not previously indicated. Values of counterfeit notes vary according to condition and rarity in much the same way that values of original notes vary. AU, UNC, and CU counterfeit notes are normally worth more than notes of lower grades. Notes that are stamped or marked "counterfeit" are likely to have circulated during the Civil War period (1861-1865) and are generally taken as evidence that the note is contemporary to the period. The collector should be aware however that as the counterfeit notes become more valu- able, there may be attempts to create bogus markings to enhance their value to unsuspecting collectors. As with any collectible, it is always advisable to know your dealer and their reputation for in- tegrity. A reputable dealer will generally refund your purchase price if you are unsatisfied with the quality, or question the authenticity of their merchandise. Remember that you are collect- ing counterfeit and bogus notes that are likely, but are not guaranteed, to be contemporary with the period 1861-1865. There are also many post-Civil War reprints and alterations of original notes for advertising, theatrical, souvenir, and other pur- poses. A popular breakfast cereal even published a series of reproduction notes and an album in which to display them in the mid-1950's . I would be remiss in these observations if I did not mention a pamphlet by Brent Hughes entitled "The Saga of Sam Upham `Yankee Scoundrel"' published by that author in his Notorious Counterfeiters Series, No. 2, revised in 1988. This publication discusses the printing methods of the Civil War period and illus- trates some of the variations in S.C. Upham imprints. Table 2 Southern States and Local Counterfeit Currency (1861-1865) (Revised September 8, 1989) Type' Year Brief Description Upham' Varieties' G19(Cr) 1863 5( State of Georgia 1 M-578 1861 5C Mechanics S&L Assoc. Savannah, GA Yes 3 C-369 1862 $3 City of New Orleans, LA 0 1 C-880 1861 25( Camden Co., N. CAROLNA. (Green) Yes 2 NC148 (Cr) 1863 5C State of North Carolina 1 T-65 1861 5C Bank of Tennessee 1 T-100 1861 10C Bank of Tennessee Yes 2 M-32 1861 $2 Madison County, VA Yes 1 UNL 1861 5( Dumfries, VA Storey 1 C-1317 1862 25( The City of Richmond, VA Yes 1 C-3203 1861 $1 Corp. of Richmond, VA (Green & Black) Yes 3 C-3206 1861 $2 Corp. or Richmond, VA (Red-Orange & Black) Yes 1 UNL 1861 5C C.R. Bricken of Richmond, VA' Yes 2 UNL 1862 $15 Corp. of Charlestown, VA 5 Yes 2 UNL 1861 5C Corp. of Winchester, VA' Yes 2 (Black) C-3503 1861 15C Corp of Winchester, VA Yes 2 (red) C-3535 1861 $1 Corp. of Winchester, VA 1 The above list is based on the collections and records of the author, as well as those of Brent Hughes, Jim Ruehrmund, Ray Waltz, and Bob Larkin, and the catalog listings published by Hugh Shull, P.O. Box 712, Leesville, SC 29070. Any collector having knowledge of additional counterfeit types would provide a valuable addition to our knowledge of the subject by contacting Henry N. McCarl, P.O. Box 352, Birmingham, AL 35201-0352. FOOTNOTES 1 Types in this table are all counterfeits corresponding to the real notes listed by indicated designation in the references North American Cur- rency, Confederate & Southern States Currency by Criswell, catalog listings by Hugh Shull, or UNL for unlisted types. 2 Upham imprints have been identified on some varieties of types desig- nated "Yes." Others, designated "?", may or may not have varieties printed by Upham. Those otherwise designated are unlikely to be pro- ducts of S.C. Upham. Those otherwise designated are unlikely to be products of S.C. Upham, and at least one bears the imprint of another Philadelphia dealer in contemporary facsimiles (Storey). 3 The number of counterfeit varieties is based on observed differences in printing, imprint type faces, printed or handwritten signatures or serial numbers, varieties of color of ink or paper, paper types face or back de- signed variations, etc. (Continued on page 48) Page 42 A Brief History of Free Banking in Minnesota by STEVE SCHROEDER Minnesota Territory was established on March 3, 1849 and statehood followed on May 11, 1858. During most of this short, territorial period Minne- sotans opposed what is now called free banking— banking accompanied by the issue of state bank notes as currency. Free banking was never au- thorized in Minnesota Territory and the area had to use the currency of banks in other states. The first state legislature authorized free banking in 1858, but the system was an expensive failure until 1862. B ANKING and currency did not go together in MinnesotaTerritory. In 1849 and 1853 the public's attitude wassoured by fraudulent issues of the Bank of St. Croix and the Merchants and Mechanics Bank of St. Anthony Falls. Two legitimate banking firms, which proposed issuing currency, found strong opposition from lawmakers and businessmen. In 1853 Richards, Clarke and Company opened a banking house in St. Paul under the name Central American Bank. When they issued bank notes local merchants condemned the bank's at- tempt "to impose upon us an illegitimate and irresponsible paper currency" (Patchin 128). In February 1854 the Central American Bank closed. At about this time (January 1854) Bor- up and Oaks announced that they would issue "certificates pay- able in (bank notes) or in coin, or exchange on the east at cur- rent rates." The legislature responded on March 4, 1854, by making the certificates illegal. The Democratic party controlled Minnesota during most of its territorial history. The Democrats' attitude toward banks was ex- pressed by Governor Gorman to the legislature n 1854: "No law, creating a bank within this Territory for circulating a paper currency, can receive my official sanction" (Patchin 129). There were no wildcat banks in Minnesota territory, but there was only one instance of a sound local currency. Since Minnesota did not sanction banks it had no control over paper money and became a haven for wildcat issues from other states. The illegal but sound certificates of Borup and Oakes (who defied the 1854 law until 1856) circulated with legal but doubtful notes from Georgia, Maine and elsewhere beyond Minnesota's control. When the legislature outlawed payments of debt with unau- thorized currency in 1856 Borup and Oakes withdrew their notes from circulation, reducing the supply of good paper money in the territory. The years from 1855 to 1857 were boom years for Minneso- ta. New settlers came by the thousands, raising Minnesota's population from 40,000 in 1855 to over 150,000 in 1857 and filing claims on 5.2 million acres of government land. Real es- tate values doubled and doubled again. Thirty private bankers were in business in the territory earning profits by making loans Paper Money Whole No. 146 and by discounting and redeeming out of state bank notes. Since there was not enough gold and silver (specie) for com- merce, Minnesotans depended on the currency of other states. In the fall of 1857 there was a general financial panic, which made Minnesota businessmen want a sound locally regulated currency. The Democratic legislature and governor refused. Bank failures across the nation and a shortage of specie caused a money shortage, particularly on the frontier. On November 3, 1857, Ramsey County authorized and began issuing county scrip. There were other city and county issues, none authorized by the legislature. On January 29, 1858, the first state legisla- ture authorized its own scrip. The Chicago Tribune is supposed to have described Minnesota's money during this troubled time as the "paradise of the feline tribe" including the wild cats of Pennsylvania and Georgia along with the red dogs of Nebraska and Indiana and the shinplasters of Michigan (Patchin 147-148). Minnesota government was not effective in the late 1850s. The legislators of 1857 and 1858 were schemers, not planners, and their schemes showed a lack of character and judgment. The first state legislature convened in December 1857, five months before Congress and the President granted Minnesota statehood. Since it did not have legal status to tax or to borrow, it passed a law authorizing the issue of state scrip in January 1858. Over $180,000 was issued but no accounts were kept until after statehood was granted. The quality of this legislature's judgment is shown by two bills that passed near the end of the session. As adjournment neared, the legislature found that it had spent less than it would receive in taxes. It appropriated $6,000 to itself for stationery. Since there was still money re- maining, it appropriated the balance, $3,500, to itself for post- age for all that stationery (Folwell II, 30-33). Railroad development was an important Minnesota issue in 1858. In March the legislature approved a scheme called the "Five Million Loan." This amendment to the state constitution called for a "loan of public credit" to Minnesota's four railroad companies for the construction of railroads. The amendment was approved by the voters on April 15, 1858, and provided for up to $5,000,000 in seven percent Minnesota State Railroad Bonds backed by a pledge of the state's full faith and credit for interest and principal. These bonds were to be issued to the rail- roads in return for railroad bonds as the railroads built roads and laid track. For each ten-mile section of road built $100,000 in bonds were issued with another $100,000 to be issued when rails were in place and in use (Folwell II 46). The Minnesota 7s, as they were called, were to be sold in New York to provide cash to the railroads for railroad construction. Railroad operating rev- enues paid to the state would allow Minnesota to pay off the Minnesota 7s. Minnesota's railroad companies had no credit in 1858 and the Five Million Loan was a scheme to create credit for them. In 1857 Congress had provided railroad land grants for Minneso- ta. The legislature approved routes and land grants. Railroad franchises were given to the St. Paul and Pacific Railroad, The Transit Railroad Company, the Root River and Southern Min- nesota Railroad Company, and the Minneapolis and Cedar River Railroad Company. Money was tight in 1858, the firms had no operating assets or credit history and they could not raise money by selling their land grants because there was a surplus of railroad land for sale farther to the east. The Five Million Loan was a typical frontier scheme to do the impossible, but in this case it failed. When these bonds were tied to the state banking system they caused serious financial problems. Paper Money Whole No. 146 Page 43 The Five Million Loan was an amendment to the state consti- tution. Minnesota statehood did not occur until May 11, 1858, when the state constitution became law by Congressional ap- proval. As a matter of fact, the constitution was amended before it was approved. The legality of the loan was doubtful at best, and for nearly a quarter of a century there was spirited public debate about the wisdom and legality of this "loan of public credit." On June 3, 1858, Minnesota's first state governor, Henry H. Sibley, said a few words about bankers in his opening address to the first Minnesota state legislature. Governor Sibley, a Demo- crat, urged great caution in designing banking laws for the state. He was less than complimentary. "Banks are, at best, but a ne- cessary evil," he said.' But Sibley and other Minnesota Demo- crats were finally ready to bow to necessity. On July 26, 1858, a carefully written law was passed. The statute contained forty- five sections, twenty-four of which regulated currency. This act, as originally passed, provided a system that might have worked despite such weaknesses as a lack of reserve requirements on deposits and failure to require that capital be paid in full in gold. Unfortunately the law was fatally weakened by an amendment nineteen days later allowing currency to be backed by the Min- nesota Railroad Bonds. The first 1858 Minnesota banking law authorized the issue of paper money by Minnesota's state banks. The auditor was re- sponsible for printing, accounting for, countersigning and issu- ing notes to the individual banks. Each bank had different plates and note designs varied widely. Denominations were $1, $2, $3, $5, $10 and $20. Section 5 of the act provided: Whenever any person or association of persons formed for the purpose of banking under the provisions of this act shall duly assign or transfer in trust to the Auditor of this state any portion of the public stocks issued or to be issued by the United States, or the stocks of any State of the United States, on which full interest is semi-annually paid, said stocks to be valued at a rate to be estimated and governed by the average rate at which such stocks have been sold in the city of New York, within the next six months preceding the time when such stocks may be left on deposit with the Auditor of State, such person or association of persons shall be entitled to re- ceive from the Auditor, an amount of such circulating notes of different denominations, registered and countersigned, equal to and not exceeding the amount of public stocks assigned and transferred as aforesaid. .. 2 The bank act was approved July 26, 1858. On August 14, 1858, an amendment was passed which changed this section of the original act. The amendment may have been intended to make the Minnesota Railroad Bonds more liquid, but instead it undermined the banking system. The amendment is as follows: Section 1. Section five of (the Act to authorize and regulate the business of Banking, approved July 26, 1858) is hereby amended so as to read as follows: Whenever any person .. . shall duly assign or transfer in trust to the Auditor of this State, any portion of the public stocks issued or to be issued by the United States or the State of Minnesota, at their current value, . such person or association of persons shall be enti- tled to receive from the Auditor, an amount of such circulat- ing notes of different denominations, registered and counter- signed, equal to and not exceeding the amount of public stock assigned and transferred as aforesaid . .. 3 The amendment to the banking law meant the railroads could convert Minnesota 7s to cash by using state banks. The state banks could pledge Minnesota 7s to the auditor and receive state bank notes in return. In 1858 the auditor allowed the issue of $1,000 of currency for each $1,000 bond, reducing the ratio to 95% in 1859 ($950 in notes for $1,000 in bonds). If the Min- nesota banking system had had enough capital all the bonds might have been absorbed this way without the necessity of go- ing to the New York markets at all. This was not the case, and currency issues were excessive for several, thinly capitalized banks. For example, the Exchange Bank of Glencoe with $25,000 in capital, received $25,000 in bank notes in 1858 and another $55,502 on May 17, 1859, for a total of $80,502 at its maximum circulation. Currency backed by the railroad bonds was attacked in the press and discounted by merchants and bankers. To make matters worse, certain newspapers (especially the Daily Minnesotian) urged that the railroad bonds be repudi- ated. The market for the bonds was never good, and collapsed when the railroad companies suspended construction in the spring of 1859. The state banking department was busy in the first year of the bank act. The auditor's records show that thirty-four banks re- corded articles of incorporation with the auditor from August 16, 1858 to July 6, 1859. Sixteen banks opened for business. In the spring of 1859 the railroads suspended operations and bankers wanted no connection with the railroads. This is seen in the auditor's correspondence. On March 29, 1859, Auditor W. F. Dunbar, sent this order for engraving currency plates to his agent in New York: March 29, 1859 Mr. S. J. Dennis, Esqr. Dear Sir: Please find enclosed order for the engraving of the Minnesota Valley Bank. Also drafts on Winslow, Lanier and Company for two hundred dollars in part payment for the engraving- and please forward the bill for the balance and the parties say the amount will be forthcoming. The parties want a good first rate plate well guarded against counterfeiting and desire your honour to select vignettes, etc. They say anything you think proper (except r.r. cars). They are anxious to get the bills as soon as possible. They would send the whole amount for the engraving but did not know the amount. I believe the parties responsible. Respectfully yours, W. F. Dunbar, State Auditor' TABLE I Date Face Value of Good Notes Outstanding Face Value of Notes of Closed Banks Outstanding Dec. 1, 1859 $206,336 $135,236 Dec. 1, 1860 $106,004 $ 31,675 Jan. 1, 1862 $ 81,236' Jan. 1, 1863 $198,107 Dec 1, 1863 $412,398 Dec. 1, 1864 $496,234 Dec 1, 1865 $350,678 Dec. 1, 1867 $ 31,378 Dec 1, 1868 $ 14,777 Dec. 1, 1872 $ 9,950 $ 13,182 'Of this total, $29,873 was issued by the LaCrosse and Lacrescent Bank and $29,500 by the Bank of Chatfield. These notes only circulat- ed in Wisconsin. In addition the auditor reported $8,283 in notes out- standing from four banks that closed in 1861. VE, FIVE Page 44 Paper Money Whole No. 146 In 1860 the legislature amended the constitution, repudiating the Minnesota State Railroad bonds. The amendment was rati- fied by the voters and the market value of the railroad bonds fell to sixteen cents on the dollar. The banks using the railroad bonds as security were ruined. The private bankers made a prof- it by purchasing state banks notes at a discount and redeeming them for gold. In May 1860, after the state banks could not re- deem their notes for specie, the auditor sold the bonds he held as security for the notes. These bonds were mostly Minnesota Railroad bonds, which secured 95 cents of currency per dollar of bond value, and sold for as little as 16 cents. There were also some University of Minnesota bonds, which had been received by the auditor at par; they sold for 36 cents. Tight money made it impossible for the state banks to oper- ate. Their currency was presented for redemption in gold as fast as it was paid out. Twelve banks closed and nine of these were broken by the collapse of the railroad bonds. Strong local re- sentment of out of state ownership of several of these banks (see table III) contributed to the rush to liquidate the currency. Of six- teen banks, which opened in 1859, four were open at the end of 1861 and only one, the Winona County Bank, maintained a specie reserve as required by law. This bank had $3,863 in notes outstanding. Paper Money Whole No. 146 Page 45 TABLE II State Bank Notes Outstanding--Failed Minnesota Banks Name of Bank Security For Date Bank Discount on Sale Currency Redemption Public Outstdg Rate Loss Currency Outstdg Currency Failed of Bonds At Close in 1891 Exchange Bank 24 Minn 7s 5/9/60 18,908 22,435 21.25X 17,668 3,168 Bank of the 6 Minn 8s 6/1/60 3,000 10,000 70.00% 3,000 1,357 State of Minn 4 U of M 10s Chiaago County 10 Minn 7s 5/23/60 7,839 8,626 19.25% 6,965 1,797 Bank Bank of 13 Minn 7s 5/23/60 10,360 9,590 20.75% 7,600 1,550 Owatonna Bank of 13 Minn 78 5/23/60 10,372 12,175 16.25% 10,197 1,925 Rochester Fillmore 4 Minn 7s 5/23/60 3,147 3,265 20.O0X 2,612 230 County Bank Bank of 30 Minn 7s 10/4/61 23,502 5,100 98.00X 102 450 St. Paul Nicollet 9 U of M lOs County Bank 10/15/60 5,860 9,000 35.00% 5,860 1,799 Central Bank 7 Minn 7s 4/30/62 5,390 4,200 30.00X 2,940 863 Totals 88,378 84,391 56,944 13,139 The column showing the redemption rate indicates the value of $1 of currency. 35.00% indicates the notes redeemed for 35 cents per dollar. The column showing discounts on sale of bonds shows the difference between what the bonds were sold for, net of selling expenses, and the rate at which they had been accepted for deposit by the auditor. In general the University of Minnesota Bonds (U of M 10s) and the regular Minnesota state bonds (Minn 8s) were received at par (01,000 in currency was released for each $1,000 bond deposited). The railroad bonds (Minn 7s) were accepted by the auditor at 95% of par in 1859 (0950 in currency was released for each $1,000 bond). The U of M lOs were sold for 25 cents and 36 cents on the dollar, but were eventually redeemed in full. The estimate of the public's loss on these notes is based on the currency outstanding when the banks were closed. It does not take into account losses due to discounting of these notes by bankers and merchants or losses which occurred because the notes were never redeemed. The total loss due to bank failure and failure to redeem notes was $60,918.79. Page 46 Paper Money Whole No. 146 TABLE III CERTIFICATES OF INCORPORATION OF BANKS RECORDED IN AUDITOR'S JOURNAL MAJORITY NAME OF BANK LOCATION OWNERS' CAPITAL DATE RESIDENCE FILED 1 STATE BANK OF AUSTIN MILWAUKEE 25,000 8/16/58 MINNESOTA 2 BANK OF FARIBAULT FARIBAULT MILWAUKEE 25,000 8/16/58 3 BANK OF ST PAUL ST PAUL MILWAUKEE 25,000 8/18/58 4 THE EXCHANGE BANK GLENCOE MILWAUKEE 25,000 8/23/58 5 THE FARMERS BANK GARDEN CITY FOX LAKE WIS 25,000 8/28/58 6 BANK OF OWATONNA OWATONNA MILWAUKEE 25,000 9/8/58 7 BANK OF MANKATO MANKATO MILWAUKEE 25,000 9/8/58 8 BANK OF THE CAPITOL ST PAUL MILWAUKEE 25,000 9/8/58 9 BLUE EARTH COUNTY BANK MANKATO MANKATO 25,000 9/11/58 10 MORRISON COUNTY BANK LITTLE FALLS NEW YORK 25,000 9/21/58 11 BANK OF SOUTHERN MINN NEW ULM NEW YORK 25,000 9/21/58 12 BANK OF AUSTIN AUSTIN CHICAGO 25,000 9/21/58 13 CHISAGO COUNTY BANK TAYLORS FALLS CHICAGO 25,000 9/21/58 14 BANK OF THE STATE OF ST PAUL ST PAUL 25,000 9/22/58 MINNESOTA 15 GOODHUE COUNTY BANK CANNON FALLS ST PAUL 25,000 9/24/58 16 ST ANTHONY FALLS BANK ST ANTHONY NEW YORK 25,000 10/1/58 17 WINONA COUNTY BANK WINONA CHICAGO 100,000 10/1/58 18 THE NORTHERN BANK LITTLE FALLS CINCINNATI 25,000 10/6/58 19 NICOLLET COUNTY BANK ST PETER ST PAUL 100,000 10/23/58 20 RAMSEY COUNTY BANK ST PAUL NEW YORK 110,000 11/27/58 21 BANK OF ROCHESTER ROCHESTER JOLIET, ILL 50,000 11/24/58 22 CITY BANK OF ROCHESTER ROCHESTER WARREN OHIO 25,000 12/9/58 23 MARINE BANK ST PAUL ST PAUL 25,000 1/25/59 24 MISSISSIPPI RIVER BANK ROCHESTER (NOT STATED) 50,000 1/17/59 25 BANK OF NORTHFIELD NORTHFIELD NORTHFIELD 25,000 3/25/59 26 FILLMORE COUNTY BANK PRESTON GALENA ILL 25,000 3/31/59 27 THE PEOPLES BANK ST PETER FT SNELLING 50,000 3/23/59 28 BANK OF AUSTIN AUSTIN CHICAGO 25,000 9/21/58 29 BANK OF RED WING RED WING RED WING 25,000 5/6/59 30 WINONA CITY BANK WINONA WINONA 25,000 5/16/59 31 BANK OF CHATFIELD CHATFIELD BOSTON 50,000 5/14/59 32 LACROSSE & LACRESCENT HOKAH MILWAUKEE 50,000 1/1/59 BANK 33 CENTRAL BANK NEW ULM FT SNELLING 50,000 5/27/59 34 LA CRESCENT BANK LA CRESCENT MILWAUKEE 25,000 6/27/59 35 STEARNS COUNTY BANK ST CLOUD ST PAUL 100,000 7/6/59 36 BANK OF SOUTHERN MINNESOTA WINONA WINONA 25,000 2/18/63 37 BANK OF WINONA WINONA MILWAUKEE 25,000 4/16/63 38 FARMERS BANK MANKATO FOX LAKE WIS 25,000 5/7/62 39 BANK OF MINNESOTA ST PAUL ST PAUL 25,000 7/1/62 40 BANK OF HASTINGS HASTINGS HASTINGS 25,000 7/13/63 41 THORNES BANK HASTINGS HASTINGS 27,500 9/1/63 42 THE MINNEAPOLIS BANK MINNEAPOLIS MINNEAPOLIS 60,000 2/26/64 BANK OF ISSUE FOR WHICH NO ENTRY WAS FOUND: BANK OF STILLWATER (1863) NO ENTRY FOUND FOR THE MINNESOTA VALLEY BANK, NEW ULM, BUT PROOFS EXIST. (SOURCE: MN HISTORICAL SOCIETY, AUDITORS RECORDS, BOX 43F 5.4F) Notice how many banks were owned by out of state interests. Such out of state ownership was attacked often in the local press. Paper Money Whole No. 146 Page 47 TABLE IV TOTAL NOTES DATE NOTES OUT REDEMPTION BANK NAME LOCATION ISSUED OF LAST IN 1872 VALUE ISSUE State Banks organized and operating during the period of free banking: Bank of the State of Minnesota St. Paul 35,004 4/2/59 1,367 70.00% Exchange Bank Glencoe 80,502 5/17/59 3,174 21.50% Farmers Bank* Shakopee 25,016 9/16/65 480 100.00% Farmers Bank Mankato Farmers' Bank Garden City 25,000 1/20/59 *** Nicollet County Bank St. Peter 40,000 5/24/59 1,799 35.00% Bank of St. Paul St. Paul 29,262 6/21/59 450 98.00% Bank of Owatonna Owatonna 44,600 4/14/59 1,555 20.75% Chisago County Bank Taylors Falls 36,561 5/23/59 1,807 19.25% Central Bank New Ulm 24,832 12/28/60 865 30.00% Fillmore County Bank Preston 25,000 6/2/59 230 20.00% La Cross and La Crescent Bank Hokah 75,512 8/18/64 2,440 100.00% Winona County Bank Winona 38,710 12/10/64 663 100.00% Peoples Bank St. Peter 41,049 4/21/65 1,620 100.00% Bank of Rochester Rochester 49,400 5/24/59 1,935 16.25% Bank of Chatfield Chatfield $154,355 2/8/65 $929 100.00% Bank of Red Wing Red Wing 70,056 8/23/62 864 100.00% State Bank of Minnesota Minneapolis 59,229 6/30/65 784 100.00% State Bank of Minnesota Austin H ** Bank of Minnesota* St. Paul 99,997 3/16/63 929 100.00% Marine Bank St. Paul 39,261 12/2/65 423 100. 00% Bank of Hastings Hastings 25,000 10/7/63 441 100. 00% Bank of Southern Minnesota Winona 40,356 1/21/64 636 100.00% Bank of Stillwater Stillwater 35,640 1/21/64 490 100.00% Thorr,es Bank* Hastings 36,900 1/13/65 622 100.00% Bank of Winona Winona NONE 0 Minneapolis Bank Minneapolis 40,000 1/21/64 660 100.00% ------------ ----- Circulation issued and outstanding $1,171,242 $25,163 *Specie withdrawn and circulation assumed by a national bank. Not included in 1872 totals. **See State Bank of Minnesota at Minneapolis *** Included in Farmers Bank of Shakopee From 1859 until 1862 the Minnesota state banks were virtual- ly inactive. The Civil War disrupted the economy which, since 1837, had relied on state bank notes. Secession made the bank notes of all Southern banks doubtful. The value of notes from some northern banks, especially in Wisconsin and Illinois, were doubtful since they were backed by bonds of southern states (Patchin 159). The demand notes of 1861 and greenbacks of 1862 filled this void. In 1862 the Minnesota state bank system was revived. Seven new banks were formed and several older banks reopened. State banking worked now because the econ- omy could support the banks, federal expenditures for the war found their way to Minnesota and federal greenbacks provided liquidity. The auditor's records show changes in the level of cir- culation of the Minnesota state bank notes.' The auditor recorded certificates of incorporation for forty- one state banks, as shown as Table III. It appears that two other banks, the Minnesota Valley Bank of New Ulm and the Bank of Stillwater, were also legally established, making a total of forty- three state banks chartered during this period. According to the auditor's reports, twenty-five state banks operated during the free banking period and twenty-four issued currency. Table IV shows the amounts issued and outstanding. In addition, proof notes are known for a number of other banks (See Table V). These banks filed certificates of incorporation with the auditor but were not reported open for business in any of the auditor's annual reports. If any of them opened, they closed without issu- ing notes or reporting to the auditor. Several factors hurt the state banking system in its first year. The amendment to the bank act weakened the security of the currency. The press, especially the Republican St. Paul Minne- sotian, damaged confidence by attacking the railroad loan, the companies and the banks. There was resentment against the owners of several banks living in Wisconsin and elsewhere out of state. The railroad companies were dishonest, working to profit Page 48 TABLE V Other state banks for which proof notes are known:(Numbers 25 Bank of Austin Austin 26 Goodhue County Bank Cannon Falls 27 Bank of Faribault Faribault 28 La Crescent Bank La Crescent 29 Morrison County Bank Little Falls 30 Northern Bank Little Falls 31 Bank of Mankato Mankato 32 Blue Earth County Bank Mankato 33 Minnesota Valley Bank New Ulm 34 Bank of Southern Minnesota New Ulm 35 Bank of Northfield Northfield 36 City Bank of Rochester Rochester 37 Mississippi River Bank Rochester 38 St. Anthony Falls Bank St. Rnthony 39 Stearns County Bank St. Cloud 40 Bank of the Capitol St. Paul 41 Ramsey County Bank St. Paul on the bonds rather than by running railroads. Auditor Dunbar and Governor Sibley were at fault for allowing banks to substi- tute railroad bonds for better security. When these substitutions were publicized bank runs followed. Private bankers conspired against the note issuing banks in 1858 and 1859, converting notes to gold as fast as the state bank paid out currency. The system worked after 1862 because the Minnesota railroad bonds were out of the picture, federal currency provided liquidity, and Republican control of Minnesota politics brought with it some cooperation by the Republican press and others who had op- posed the "easy money" from state bank notes. Several new banks were locally owned and had better relations with their communities. The period of free banking ended in 1866. In his report to the 1866 legislative session the auditor wrote, "All the banks of this State are voluntarily relinquishing the banking business under State laws, and most of them are reorganizing under the laws of the United States."' He added that the banks had agreed to re- tire their circulation by May 1, 1866, in order to avoid the feder- al tax on state bank notes. Legal notices were properly pub- lished and by the end of 1868 the required notice period expir- ed relieving the auditor of further responsibility. In 1872 the au- ditor transferred the reserves to the banks for redeeming their currency. The auditor was responsible for the currency of the failed banks until the legislature transferred this duty to the office of the public examiner in 1887. In 1891 the auditor transferred there funds and accounts to the public examiner. Table II shows the amounts outstanding in 1891 and the redemption rates in effect for the currency of the failed banks. Only $43 of the cur- rency of failed banks were redeemed from 1872 until 1891. The end of free banking left one unsolved problem. The State of Minnesota had $2,275,000 of repudiated 7 percent bonds outstanding. These bonds caused difficulty for over twenty years. The railroad work done in 1858-59 was appraised in 1867 at a value of $2,803.42 per mile, for which the railroad companies had received $10,000 per mile in bonds. Some poli- ticians righteously objected to paying in full for the shoddy work done while others urged that the bonds be redeemed to repair the state's reputation. The U.S. Supreme Court ruled that the Paper Money Whole No. 146 bonds were a valid obligation of Minnesota but could not be en- forced because of the sovereign immunity of the state. Finally, in 1881, after years of political debate, several lawsuits and five failed statewide referendums, Minnesota redeemed the Minne- sota 7s with bonds styled as "Minnesota State Railroad Adjust- ment Bonds." The owners of the defaulted bonds received ap- proximately $1,800 for each old $1,000 bond. The debate did not end there, for the politicians claimed that they had paid off the old bonds in full with 2.5 percent interest, while others claimed that the old bonds had been redeemed at only half of their value.' FOOTNOTES 1 Folwell, W.W. (1924). A History of Minnesota, II. St. Paul: Minne- sota Historical Society, p. 23. 2 General Laws of Minnesota for 1858. Chap. XXXII, Sec. 5, pp. 69-70. 3 Ibid., Chap. XXXIII, pp. 80-81. 4 Correspondence Register of the Auditor, State of Minnesota. Ar- chives of the Minnesota Historical Society, p. 109. 5 Source: Compiled from annual reports of the Minnesota State Audi- tor to the Legislature of Minnesota, 1860 through 1868; auditor's cur- rency register for 1872. 6 Annual Report of the State Auditor to the Legislature of Minnesota, Session of 1866 (St. Paul, 1866), p. 18. 7 Folwell, Vol. III, appendix 9, contains the complete story of the 1881 Minnesota Railroad Adjustment Act. REFERENCES Folwell, W.W. (1924). (1969, revised). A History of Minnesota, St. Paul: Minnesota Historical Society. Minnesota State Auditor, Annual reports to the Minnesota Legislature, sessions of, 1860, 1862. 1863, 1865, 1868. Patchin, S.A. (1917 August). The development of banking in Minne- sota. Minnesota History Bulletin, Vol. II, No. 3, pp. 111-168. ACKNOWLEDGEMENT I would like to thank Barbara Glommen for her assistance in researching and preparing this article. ■ Confederate (Continued from page 41) 4 The original note is printed in black ink on light blue paper. The Up- ham counterfeit is printed in blue ink on light blue and possibly white paper. There is reason to believe that the white paper may be faded light blue paper, and thus there might only be one variety of the coun- terfeit. 5 Black printing on blue paper. 6 Paper for both counterfeit varieties and real note is buff. There are two distinctly different designs on counterfeit notes. Upham imprint is known on first design, second design misspells "VIRGINLA." ■ COLLECTOR WILL PAY ABOVE DEALER PRICES FOR ALL U.S. LARGE-SIZE BILLS 1861-1929 In truly crisp uncirculated condition Please send photocopy or description, and price, to: BOB WARREN BOX 1510 NYC, NY 10013 Paper Money Whole No. 146 Page 49 NIA Happenings "I WANT $5,000 Quicker Than Hell Can Fry a Flea" (From Growing Through History With Colorado) Submitted by BOB COCHRAN O NE morning during the 1860s, the cashier at a Denverbank unlocked the door and was surprised to see threetired-looking fellows waiting outside. The man in the middle clung to a sealed envelope and kept a wary eye on his companions. "Please step inside, gentlemen," the cashier said. "Would you like to make a deposit?" "No, I want to arrange a loan," said the man with the en- velope, "and there ain't a minute to lose. I want $5,000 quicker than hell can fry a flea!" "What collateral have you—any property?" inquired the cashier. "You bet! I've got the hottest property in Denver right here in my hand. And there's a poker game going on across the street with over $4,000 in the pot. There are four or five other strong hands out, but everything I own is in the pot. I've got the best cards in town here in this envelope. Take a look, but don't let these two varmints see it. They're in the game and came along to see that I don't fiddle with the cards." "My dear sir," said the cashier after peeking into the en- velope, "this is most irregular. Our bank does not lend money on cards." "You're going to see me raised out of a hand like this!" yelled the gambler. "These fellows think I'm bluffing. I could wipe out the whole bunch of 'em." "Sorry sir. That's against bank policy." Dejected, the card shark headed for the door, almost bump- ing into the bank president, who was coming in late after an all- night game of his own. The gambler re-explained his case and showed the bank president his hand—four Kings and an Ace.' "Wait a minute, gentlemen," the president ordered as he headed for the vault. In five minutes he returned with a bulging leather bag. "Put this $5,000 on five percent a day," he ordered to the cashier while grabbing a few extra twenties out of the drawer up front. "I thought you had more business sense," he snapped at the cashier. "Ever play five-card draw?" "No, sir." "I thought not. If you did, you would know this is unbeatable collateral. In the future, sir, a hand like this is good in this institu- tion for our entire assets—our entire assets." [•1n nineteenth century poker, flushes and straights did not count; so four Aces or four Kings and an Ace was an unbeatable hand.] SOURCE: Noel, T.J. (1987). Growing through history with Colorado—The Colo- rado National Banks, the first 125 years 1862-1987. The Colorado Na- tional Banks and the Colorado Studies Center, University of Colorado at Denver . KNEW HIS BUSINESS From The Bankers Magazine Submitted by BOB COCHRAN Leslie M. Shaw, former Secretary of the Treasury, was discuss- ing with a correspondent a financial muddle. "They lied," said the famous financier, "but, as with Hugh Ralston of Castana, their lying was absurd. When I was in the banking business in Charter Oak there was a young coal heaver who courted a Charter Oak girl. His name was Hugh Ralston and he pretended to be a banker. "But one afternoon the girl happened to visit Castana and she saw Hugh hurrying home for supper, as black as the ace of spades. He would have dodged past without speaking, but the girl held him up. "'Why, Hugh,' she said, reproachfully, 'I thought you were a banker!' "He heaved a kind of sigh. "`Ah,' he said, 'we've had a terrible day of it today, cleaning all the ink wells."' BOY TRAVELS AS FREIGHT TO BANK AS COLLATERAL From The Bankers Magazine Submitted by BOB COCHRAN A recent news dispatch was sent out from St. Louis as follows: One seven-year-old boy was received on a bill of lading at the Union Station here recently over the Iron Mountain Railroad from Monroe, Louisiana. He was consigned to a local bank as collateral for a board bill to be remitted to a bank at Monroe. Mrs. J.J. Koontz, acting as agent for J.J. Koontz, father and owner of the boy, whose name is Arthur, called at the Union Station for the consignment, but the railroad officials refused to deliver him to her because she was not the consignee named in the bill of lading. The boy, still tagged, was taken to the bank in a taxicab. A disputed board bill incurred by the boy being in Monroe for seven months caused the bill of lading to be issued. When the boy reached the bank the amount due was paid and the boy was turned over to his parents. The $2 Dominion of Canada Note, Series of Jan. 2, 1914. Portraits of the Duke and Duchess of Connaught; the Duke was a son of Queen Victoria, and Governor-General of Canada from 1911 to 1916. This type was pro- duced by American Bank Note Company, Ottawa, and was issued from 1914 to 1923. Page 50 "MOOSE JAW MONEY" The $2 Bill No Longer Shunned the Canadian West Submitted by FRED ANGUS [Reprinted with permission from The Gazette, Montreal, January 4, 1990.] OTTAWA (CP) —The $2 bill is making a comeback in the West after decades of being shunned for its link with the red-light heydays of Moose Jaw, Saskatechwan. Paper Money Whole No. 146 N the Roaring '20s on Moose Jaw's notorious River St. hotel strip, it was the standard price for a prostitute. Rail- way workers and farm-hands forked over a $2 bill—even- tually dubbed "Moose Jaw money." For years, some shopkeep- ers in the West would refuse to accept $2 bills as legal tender, while customers rejected them as change. The bills were ship- ped out by the banks as fast as they came in with travellers. But with the death of the $1 bill last year, replacd by the shiny new loon coin, the deuce is once again changing hands in Moose Jaw and throughout the Prairies. "Prostitutes were paid in $2 bills, so that anybody who was re- spectable or claimed to be didn't want to have any $2 bills," said Leith Knight, a local historian who set up Moose Jaw's city ar- chives. "This sort of carried over to this day." Across Canada, the $2 bill has increased in popularity as the loonie has replaced the greenback. Gerrit Bilkes, a spokesman for the Bank of Canada in Ottawa, said the total number of $2 bills in circulation in Canada reached 188 million in Decem- ber—an 18 percent increase from a year earlier. Bilkes said the most dramatic change has been in the three Prairie provinces. "In those three provinces, $2 notes on balance used to come out of circulation," he said in an interview. In 1988, for the first time in years, 3 million more $2 bills were shipped to the Prairies than shipped out. Louis Lewry, a former newspaperman, broadcaster and ex- mayor of Moose Jaw whom everybody calls "Scoop", said there are few people who still remember why the $2 bill was in dis- favor. "It's a new generation," said Lewry, who served as mayor G-825587 Jxs Paper Money Whole No. 146 Page 51 'IMION2110121=M1:4141=1421g1====grAlral1212217XIMISMISZVI )1031117S The $2 Dominion of Canada Note, Series of June 23, 1923. Portrait of the Edward, Prince of Wales; in 1936 he became King Edward VIII, and after his abdication the Duke of Windsor. This type was produced by the Canadian Bank Note Company, and was issued from 1923 to 1935. 111103110MBLIS IMISZIVIL/i=Igt osimp itetria. Ve" Mr,4 ,1•+;14n=01.4 •%>"•-trifelti+0.3VCANZIKI,VVI. ,---,-xosissainnomeruvrea A.,..,orregroteittMeAVAV on and off between 1950 and 1986. "They don't recall that a $2 bill was the price of a girl. We never used to see a $2 bill around here. Now they are being flooded in here." Lewry said he was never bothered by the $2 bill. "I got a pocket full of them now." Jim Botteril, executive director of the Moose Jaw Chamber of Commerce, said Moose Jaw merchants and their customers are pleased to have an alternative to the loonie. But he said not everyone has forgotten civic history. "You still hear the snide re- marks, you know." The $1 banknote isn't coming out of circulation as fast as the government had expected after it stopped printing them in early 1989 to insure the success of the loonie. About 195 million re- main in the hands of Canadians, many saved as souvenirs. By late last year, more than 400 million loonies were in circulation. Detroit's Private Bankers from the 1820s to the 1900s by ROBERT D. HATFIELD, SPMC 6803 Private bankers were those individuals, and partnerships, who carried on unchartered, and for the most part, un- regulated banking business. In Michigan, these bankers seldom issued banknotes of their own, but relied upon scrip, banknotes of chartered banks of Michigan, and notes from Ohio. They were not required to file reports with anyone, and so we have little information on the conduct of their business. P RIVATE bankers had their beginnings in what is now Italy. The word 'bank' is derived from the Italian word for `bench'. The early money changers conducted their business behind, or on a bench. If the money changer became insolvent the bench was broken in public; we now call this bank- ruptcy. Quite some time would pass before the small independ- ent money changers would become the rich banking families like the Medici of Florence. Banks, as formal institutions, did not exist in what is now the United States until about 1780. Most of the country's earliest banks were state chartered. Michigan Territory was set off in 1805, the same year that its first bank, the Bank of Detroit, was founded. William Hull, the first territorial governor, and August- us B. Woodward, one of the territorial judges, established this bank with help from friends in Boston. However Hull and Woodward had forgotten to get Congressional approval for this bank and it was forced to close in 1809. The Bank of Michigan, chartered in 1817, was the first bank to be properly established. Many other banks were opened in Michigan so that by the time Page 52 of its admission in 1837 there were at least 15 banks in opera- tion. Chartered banks in Michigan, as elsewhere, were opened in large cities and towns, or they were so few in number that op- portunity existed for individuals, and partnerships, to open their own banks. The term 'private banker' did not come into use until some time between 1835-1850. Quite often they were called `brokers.' Whether they were called 'broker' or 'private bankers', they "became indispensable, especially in the interior, for the purchase of uncurrent notes and to provide [for] exchange."' They also carried on the business of loans on long or short terms. Between the early 1820s to the end of 1909 there were more than 50 private bankers in Detroit. In the thirty-year period before the Civil War there were more private bankers in Detroit than there were chartered bankers, and the private bankers also handled more business. 2 The list of private bankers includes many who afterwards became prominent in financial circles, and whose knowledge of credit made them useful as organizers and officers of state and national banks.' The earliest listing of a private banker in Detroit is in 1822 with one Darius Lamson, who continued as a banker until 1865. Silas Farmer, in his history of the Detroit area, does not list this man, and in fact lists no one as a private banker until 1843. One must use the information gathered from four sources in order to get a comprehensive (but probably not complete) listing of pri- vate bankers. These four sources are: Harold L. Bowen, Theodore H. Hinchman, Silas Farm- er, and Emory Wendell I will not list all the names here, only the prominent ones. Anyone desiring a complete list is encouraged to consult the four noted sources. LIST Henry H. Brown—listed as a private banker in 1837, merged into the Michigan Insurance Co. in 1838. This firm was ac- tually a bank. William A. Butler—listed as private banker in partnership with Bailey; Butler & Bailey 1847-1870. They became the Me- chanics' Bank. Alexander H. Dey—listed only for the year 1844, he may have been associated with Israel Coe in the firm of Coe & Dey (1842). Alexander merged with the American National Bank (charter 1542) in 1865. Dey was also one of the prime mov- ers behind the Detroit Gas Light Co., organized in 1849. Robert Hosie —listed as a banker from 1866 to 1872. He was in- volved in some unspecified way with the Protestant Orphan Asylum, which was founded in 1889. Hosie died on Febru- ary 11, 1901. S.H. Ives & Co.—The Ives family was engaged in banking from 1847 to 1900. S.H. Ives & Co. became the C.&A. Ives firm in 1854, and the A. Ives & Sons firm in 1864. Albert Ives was noted during the 1880 period as "giving of his time and talents to the Baptist work in Detroit". Albert is also listed as a deacon in the "First Church." The Ives banking firm went from handling clearings nearing $8 million in 1890, to being accused in 1900 of looting their bank. Butler, Louis, and both the senior and junior Albert Ives, were all implicated in fraud schemes. Their bank closed on September 10, 1900. Edward Kanter—he began his bank in 1850, changing the name to E. Kanter & Co. in 1868. This firm went on to be- come the German-American Bank in 1871. Edward served in the Legislature in 1857. He was a member of the Demo- cratic National Convention from 1876 to 1884. Paper Money Whole No. 146 J.H. Kaple & Co.—John H. Kaple (spelled wrongly in one source as Kapel) began as a private banker in 1858. In 1861 he was appointed Registrar for the Probate Court. John be- came assistant-postmaster in 1879, and later served as post- master of Detroit. In 1879 he helped organize the Detroit Casket Co. After his days as a private banker, date un- known, he became a vice-president in the Michigan Savings Bank. Philo Parsons—he became a private banker in 1857. He was as- sociated with Fisher in 1859 as the firm of Fisher & Parsons, and in 1860 as Parsons & Fisher. Parsons went on his own in 1863 but went out of business in 1864. He again entered the private banking business in 1866 and continued until 1886 even though he was engaged by the First National Bank since its beginning on September 2, 1863. Philo helped be- gin the Detroit Medical College and was its first secretary and a trustee. He was the driving force behind the move to bring the State Fair to Detroit in 1879. Philo was active in obtain- ing a railroad connection for Detroit with the Wabash system. He donated about $60,000 to Olivet College. After his death in 1896, and his wife's death, probably in 1905, his home- stead at Woodward and Watson became the Detroit Conser- vatory of Music. The house still stands and is used by a musi- cal instrument company. David Preston & Co.—this firm began in May, 1852. In 1867 he associated with J.L. Harper, but the firm's name did not change. During 1885-86 the D. Preston Bank organized un- der the state law of 1871 as a commercial and savings bank. The bank also formed a safe deposit company in 1886. David also opened a bank in Chicago in 1852 called the Preston, Kean & Co. bank, which would one day become the Metropolitan National Bank. David Preston helped to raise funds to build the Methodist Church at Woodward and Adams. He was one of the main backers for raising $60,000 for Albion College in 1873. These are but a few of the many private bankers of Detroit. According to a 1910 report to the U.S. Senate by the National Monetary Commission, private bankers fulfilled two distinct functions: 1. As an adjunct to the brokerage business in large cities, and 2. As a means of furnishing credit in small communities, chiefly in the agricultural sections.' Although few records exist to show that Detroit's private bankers did either of these functions, we do know about their financial position at certain times. The Detroit Advertiser and Tribune reported on July 19, 1869 that the following private bankers had sworn before the U.S. Assessor that their average daily deposits for the month of June, 1869 were as follows: D. Preston & Co. $335,501.04 A. Ives & Sons 274,324.00 V.J. Scott 143,850.72 W.A. Butler & Co. 87,013.00 Robert Hosie 71,598.00 Granger & Sabin 38,695.00 F.L. Seitz & Co. 32,000.00 Fisher, Booth & Co. 7,000.00 Kanady & Taylor 6,400.00' It is uncertain when the last Detroit private banker closed, but as late as 1916 there were 229 such bankers throughout Mich- igan.' The state and national banks soon forced these men out of business, but they each left a unique mark as part of a vibrant element of business, society, and their families. Footnotes & Sources continued in next issue Paper Money Whole No. 146 Interest Bearing Notes Richard Hello again. In January we packed our grips and made our way to Tampa, Florida for the annual F.U.N. convention. This event, sponsored by the Florida United Numismatists, is probab- ly the oldest running show in the country. Each year in early January, collectors and dealers from all parts of the country make their way to Florida to do some horsetrading and take in some of the great sunshine. This year was no exception as the skies shown gloriously upon us for the nearly two weeks that we were there. The show is a big event with probably 400 or so tables of deal- ers in attendance; some tables were shared by multiple firms. Notable among these was the table of Leo May, who graciously shared his space with Fred Schwan of BNR Press, and Ian Mar- shall of Canada. So that you don't think it was all work and no fun and games, we were able to spend a day at the Busch Gardens, at which time we were introduced to a wide group of animals some of which were unfamiliar to us. After Tampa it was off to fabulous Orlando, with its MGM Studios, Magic Kingdom, and Epcot Center. Upon visiting these attractions one gets the feeling that he or she is the last person from the civilized world to visit there. If you don't think that the world we live in is small, while in Busch Gardens I struck up a conversation in French with a cou- ple from Switzerland, and lo and behold met them again the fol- lowing week at the Magic Kingdom. We also happened upon one of Mrs. B's cousins and her husband who were visiting there for the 9th time. A bit of overkill it you ask me!! Also while in Orlando we had the pleasure of visiting with E. Burnell Overlock and his lovely Mrs. "Bun" as he is affectionate- ly called, is a transplanted Mainer by way of Rhode Island and Massachusetts. Bun is a long time SPMC member, and is one of the persons that I give credit to for having introduced me to paper money collecting back in the early 60s. Back then my world centered on the collecting of RI obsolete bank notes; that collection was sold in 1975, and I moved to other interests. St. Louis Show, November 1989 Page 53 As Bun's guests we were able to attend a meeting of the Cen- tral Florida Coin Club. If ever there was an active group of col- lectors, this is it, however as their name implies, their interest lies in collecting primarily the "hard stuff". Over the years I've heard many exciting things about the clubs in Florida and their mem- bers. And this one visit proved to me that what I'd heard was true. And surely if numismatics is to survive, much of the credit for it is due to the efforts of the Florida collectors. In the Jan/Feb edition of PAPER MONEY a call went out for nominations to the Board of Governors. This is a very important function of your organization as the members of the Board are your voice in the group. From the Board are selected the Execu- tive that performs the "nitty gritty" tasks of day to day operations of the Society. Each year five members are elected to three-year terms on the SPMC Board of Governors. Naturally we have to reach out and try and recruit new people with fresh ideas, to keep YOUR ORGANIZATION on an even keel. If you don't feel up to offering your services this year, we'll be looking for you next time around and look forward to your help. Till next time, happy collecting! BOOK PROJECT ROUND UP There have been two changes in the list that appeared in PAPER MONEY No. 143, p. 163. The cataloger of NEVADA notes is Douglas McDonald, P.O. Box 20443, Reno, NV 89515. A cataloger is needed for OHIO. Exhibitors Wanted for Memphis SPMC members interested in exhibiting at the IPMS in Memphis in June should contact Mart Delgar, 9677 Paw Paw Lake Drive, Mattawan, MI 49071. Entries must be received by 10 May 1990. Clifford Mishler presents the Krause Publication Numismatic Ambassador Award to Arlie Slabaugh (R). Exhibitors (L to R): Gene Hessler, Niel Nielsen, Milton Friedberg, Armen Youssefi, Neil Shafer, John Wilson, Roger Durand, Doug Walcutt, Arlie Slabaugh, Steve Taylor, Nancy Wilson, Bob Stephen Goldsmith (L), the new PCDA Ross III & Howard Berlin; Bill Mross not in photograph. Each exhibitor received a framed, $10 re- President, and John Wilson, Exhibit Chair- mainder from Fairmont, Maine. (Photos by Roy and Chiyo Peterson) man. Page 54 Paper Money Whole No. 146 CANDIDATES FOR SPMC BOARD GENE HESSLER, a native of Cincinnati and a musician by profession, was curator of The Chase Man- hattan Bank Money Muse- um in New York City and the Mercantile Money Mu- seum in St. Louis. He is an author of three U.S. paper money-related books and well over 100 articles. He is an elected Fellow of the American Numismatic Society. Gene has served as editor of PAPER MONEY since 1984, and feels that it would be advantageous to continue as a gover- nor due to his editorial responsibility to the SPMC membership. RONALD HORSTMAN, a native of St. Louis, col- lects obsolete and national bank notes from the area. He has been employed by the City of St. Louis for 33 years and is currently Su- pervisor of Vehicle Main- tenance. A member of the SPMC since 1964, he is currently Membership Director and a life member. Ron has writ- ten for PAPER MONEY and other publications; he is presently working on a book, The Financial History of the St. Louis Area. He is a life member and serves on the Board of Directors of the Missouri Numismatic Society. Ron is Honorary Life Member 1 of the PCDA, and has been General Show Chairman of their St. Louis show since 1986. He was instrumental in arranging SPMC co-sponsorship of that show, bringing us financial gain and an excellent working relationship between dealers and col- lectors. JUDITH MURPHY, in addition to membership in the ANA, is a member of various state numismatic associations. She is the current vice presi- dent of the Blue Ridge Nu- mismatic Association and the Love Token Society, and a Board member of the BOB RABY is a native of Memphis and has been a force behind the annual IPMS in that city. He is Director of Security Services for the Memphis City Schools. While serving in the Military Police in Italy in the mid-60s, Bob be- came interested in collect- ing paper money; he now collects CSA and southern obsolete notes as well as Egyptian and French Colonial issues. Bob has written articles on the amusing side of paper money collecting for Coin World. He pledges to extend every effort to insure the continued growth of our hobby on every level. WILLIAM F. MROSS practices law in Racine Wisconsin. Bill is extremely active in our hob- by. He has served on com- mittees for the ANA, Cen- tral States and local con- ventions. Bill is a certified, ANA exhibit judge and has received numerous awards for his exhibits of U.S. cur- rency and Roman imperial coins at national, regional and local shows. He also has experience in holding various offices in four, WI collector organizations including the Milwaukee Numismatic Society. Bill's column, "Legal Tender," appears regularly in The Centinel, the CSNA Journal. Bill feels that his collecting and writing experience, and his law background would be an asset as an SPMC governor. American Check Collectors Society. Judith has also served as the vice president of the Atlanta Society for the Study of Money Other Than American (ASSOMOTA). She resides in Atlanta, GA with her husband, Claude Murphy. FRANK TRASK, holds a degree in Mechani- cal Engineering from the U. of Maine (1956). He is a collector of Maine fiscal paper and is currently gath- ering data on all Maine na- tional bank notes. In addi- tion to membership in the SPMC and ANA he is Vice President of the Maine Nu- mismatic Association and is the club-state representative. Frank is the Eastern Director of the Canadian Paper Money Society. His pet peeve is doctored paper money and improper grad- ing. Outside our field, Frank lectures to gifted and talented young people of the Wells/Ogunquit School District. Paper Money Whole No. 146 Page 55t.mon!I mar Paper Money will accept classified advertising from members only on a basis of 15C per word, with a minimum charge of $3.75. The primary purpose of the ads is to assist members in exchanging, buying, selling, or locating specialized material and disposing of duplicates. Copy must be non-commercial in nature. Copy must be legibly printed or typed, accompanied by prepayment made payable to the Society of Paper Money Collectors, and reach the Editor, Gene Hessler, P.O. Box 8147, St. Louis, MO 63156 by the tenth of the month preceding the month of issue (i.e. Dec. 10 for Jan./Feb. issue). Word count: Name and address will count as five words. All other words and abbreviations, figure combinations and initials count as separate. No check copies. 10% discount for four or more insertions of the same copy. Sample ad and word count. WANTED: CONFEDERATE FACSIMILES by Upham for cash or trade for FRN block letters, $1 SC, U.S. obsolete. John W. Member, 000 Last St., New York, N.Y. 10015. (22 words: $2: SC: U.S.: FRN counted as one word each) STOCK CERTIFICATES & BONDS — buy and sell! Current catalog of interesting certificates for sale, $1. Buying all—but especially interest- ed in early Western certificates. Ken Prag, Box 531PM, Burlingame, CA 94011, phone (415) 566-6400. (149) WANTED: INVERTED BACKS FOR MY PERSONAL COLLEC- TION . Any condition; large and small-size notes. Please send photo or description with your price for the notes. Lawrence C. Feuer, c/o C &F , 200 E. Post Rd., White Plains, NY 10601. (146) ALBANY & TROY, NEW YORK NATIONAL WANTED. Also Altamont, Cohoes, Ravena, Watervliet, West Troy, Lansingburgh , Castleton. Describe or ship with price or for offer. William Panitch, P.O. Box 12845, Albany, NY 12212. (149) NEW YORK NATIONALS WANTED FOR PERSONAL COL- LECTION: TARRYTOWN 364, MOUNT VERNON 8516, MAMA- RONECK 5411, Rye, Mount Kisco, Hastings, Croton on Hudson, Pelham, Somers, Harrison, Ossining, Yonkers, White Plains, Irvington, Peekskill, Bronxville, Ardsley, Crestwood, New Rochelle, Elmsford, Scarsdale, Larchmont, Port Chester, Tuckahoe. Send photocopy; price. Frank Levitan, 530 Southern Blvd., Bronx, NY 10455. (212) 292-6803. (150) WANTED: ALL OBSOLETE CURRENCY, ESPECIALLY GEORGIA, which I collect. Particularly want any city-county issues, Atlanta Bank, Georgia RR Banking, Bank of Darien, Pigeon Roost Min- ing, Monroe RR Banking, Bank of Hawkinsville, La Grange Bank, Cen- tral Bank Milledgeville, Ruckersville Banking Co., Bank of St. Marys, Cotton Planters Bank, any private scrip. I will sell duplicates. Claud Murphy, Jr., Box 24056, Winston-Salem, NC 27114. (147) SCHENECTADY, NEW YORK 1929, T2 $10 & $20 WANTED. Also Canadian merchants scrip, chartered bank notes from Quebec Provence. St. Eloi, P.O. Box 3536, Holiday, FL 34690-0536. (813) 942-6613; eve. 938-5141. (147) MINNESOTA NATIONALS WANTED BY TYPE. Notes of these types wanted from any Minnesota bank: $50 or $100 first charter period; $100 1882 Brown Back or date back; $50 or $100 1902 red seal, $100 1902 blue seal. Steve Schroeder, Box 323, Moorhead, MN 56560. (146) WANTED ILLINOIS OBSOLETES from Bank of Illinois at Shaw- neetown and any obsolete banknotes from Vienna, Illinois. Gary Hack- er, 2710 Overhill Rd. Pekin, IL 61554. (146) DISCOUNTING 215 BROKEN BANK NOTE INVENTORY (33 duplicates), $12,000 retail value; net $8,000. Sell 25 state catalogs $425. Don Embury (SPMC 3791) 121 Maynard #1, Glendale, CA 91205. (147) STOCK, BOND CERTIFICATES. 250 different Railroads, Street- cars, 10 Automobiles. Oils, Mines, Banks, etc. Over 850 total. National bank notes, types. Scarce, rare. Free list. Also buying, price, describe. Free list. Mail bid auction closing soon. Ed Richt. Scripophilist, Profes- sional Currency Dealer. P.O. Box 7485, Louisville, KY 40207. (148) WANTED FOR MY PERSONAL COLLECTION: Large & small- size national currency from Atlantic City, NJ. Don't ship, write first, describe what you have for sale. Frank J. Iacovone, P.O. Box 266, Bronx, NY 10465-0266. (156) WANTED: NEW JERSEY OBSOLETE BANK NOTES AND SCRIP. Ocean Grove National Bank, anything. Ocean Grove post- cards, souvenirs, maps, prints, etc. N.B. Buckman, P.O. Box 608, Ocean Grove, NJ 07756. (148) 1929 VIRGINIA NATIONALS WANTED: All 1929 VA, NBN want- ed, send list you have to sell or trade. Paying top prices for charters 3209, 4940, 6031, 6235, 6389, 6443, 6666, 6842, 7258, 7338, 7782, 8643, 8791, 9455, 9635 and all other from charter 10611- 14052. Francis Hough, Rt. 1, Box 486, Round Hill, VA 22141. (148) MANHATTAN COMPANY, Chase Manhattan Bank and Aaron Burr material wanted. Obsoletes, checks, nationals, books, stocks, bonds, fiscal paper items, etc. Write: Thomas Buda, P.O. Box 315, Wyckoff, NJ 07481. (149) PAPER MONEY MAGAZINES: 14 complete years, Jan. 1974-Jan. 1988, $40 plus postage. Lot of 44 auction catalogs 1973-1980, mostly currency, with prices realized. Write for details. Virgil Culler, 729 Lynn- haven Lane, La Canada, CA 91011. SELLING WISCONSIN NATIONALS: Antigo, Appleton, Beaver Dam, Brillon, Burlington, Chippewa Falls, Columbus, Darlington, Dodgeville, Eau Claire, Fond du Lac, Green Bay, Kenosha, Lady- smith, Madison (several), Manitowoc, Marinette, Menasha, Menomi- nee, Monroe, Neenah, Oconto, Oshkosh, Portage, Racine. Seymour, Shawana, Sheboygan, Superior, Watertown, West Allis, Whitewater, Wisconsin Rapids, other states (specify). Free lists. Joe Apelman, Box 283, Covington, LA 70434. WANTED: Obsoletes, checks, stocks, bonds, etc. with Ben Franklin pictured. Send photocopy or description with price. Phil W. Greenslet. Box 377, Reisterstown, MD 21136. (149) PAPER MONEY UNITED STATES Large Size Currency • Small Size Currency Fractional Currency • Souvenir Cards Write For List Theodore Kemm 915 West End Avenue q New York, NY 10025 Page 56 7 a,i.;11.1 ..Hi,,.. , . Y ! I IIP'ii, . .._. 11,11....0, 1, 1,Iild." b Ifii, , ' d. : 11 . '. ,,',‘-..ii, : i.,1 ,. , , , , , !., ‘: " 1 ''1 ' 1 ', 1 ',! I i. :I , ; , , , r .1, , 11.1■ 1 (1 11'111' f , Iirl ', , i !, Paper Money Whole No. 146 1 1 1 ,110/ WE ARE ALWAYS BUYING ■ FRACTIONAL CURRENCY ■ ENCASED POSTAGE ■ LARGE SIZE CURRENCY ■ COLONIAL CURRENCY WRITE, CALL OR SHIP: • "j -0) ^ -* A A-0 re---)1(r :464.C1s, •Nla t 11-R Irt 4-0v -tv inc. LEN and JEAN GLAZER (718) 268.3221 POST OFFICE BOX 111 FOREST HILLS, N.Y. 11375 . y X•11- T 1' Cia,,,,' „f-,.\,P \ PI- R MONEY $,C 01.11C -1'0M ey iv j_ieta nrt e2V—z.- : \ - 1 Charter Member Paper Money Whole No. 146 Page 57 DON'T MISS THIS IMPORTANT AUCTION MEMPHIS 1907 C I ?I r 1C.411.1U1111..J41.10A,,,- sj, PW -6 *'r:10#WMH.(OMCNgfMl A607100:-. 4 0 Tfi r` 0 44.17.1:4432,44.441.11.11.73.1114.17.0.%11, :31'4142A 42 - • ‘' *- ' M 703t THE OFFICIAL AUCTION TO BE HELD IN CONJUNCTION WITH THE INTERNATIONAL PAPER MONEY SHOW IN MEMPHIS,TENNESSEE JUNE 15,16, 1990 NASCA is proud to announce that we will be offering important Federal Proofs, Essays and Wash drawings from the Dr. Glenn Jackson Estate and other important U.S. and International Currency, Stocks and Bonds and related material CONSIGNMENTS STILL BEING ACCEPTED UNTIL APRIL 14, 1990 ACT NOW! CALL 1-800-622-1880 NASCA Division of 1990 AUCTION SCHEDULE April 21, 1990 Ephemera May 9, 1990 Sports Memorabilia May 10, 1990 Autographs June 15, 16, 1990 Memphis Ir N91;113LI th4 II E 11 — 1fte4o• '— Auctioneers. Appralt‘ers. Dexers: _Ant:du• Certificate:. Coins. Banknotes, Books, .Auto4raoh,. Researchers of Obscure Stoci:s and Bonus Other auctions to be announced SUBSCRIBE NOW AND SAVE Receive the next six NASCA catalogues in your interest area for only $60.00 Telephone 212 943-1880 Fax 212 908-4600 Toll Free 1 800 622- i 880 Smythe &Co. Inc. 26 Broadway New York, NY 100; ;4 $1 National Bank Note. First National Bank of Pueblo, Colorado Territory. F-382. New. Realized $5,170 in one of our recent sales. Page 58 Paper Money Whole No. 146 REALIZE THE BEST PRICES FOR YOUR PAPER MONEY Go with the world's most successful auction company— Auctions by Bowers and Merena, Inc! When you consign your collection or individual important items, you go with a firm with an unequaled record of success! Over the years we have handled some of the most important paper money collections ever to be sold. Along the way our auctions have garnered numerous price records for our consignors. Indeed, certain of the price records established at our Matt Rothert Collection Sale years ago still stand today! Thinking of selling your collection or desirable individual notes? Right now we are accepting consignments for our next several New York City and Los Angeles sales. Your collect call to Dr. Richard Bagg, our Director of Auctions, at (603) 569-5095 will bring you complete information concerning how you can realize the very best price for your currency, in a transaction which you, like thousands of others, will find to be profitable and enjoyable. What we have done for others, we can do for you. Tele- phone Dr. Richard Bagg collect today, or use the coupon provided. Either way, it may be the most profitable move you have ever made! cilt4 MAIL TO: Auctions by Bowers and Merena, Inc. Attn: Publications Dept Box 1224 Wolfeboro, NH 03894 PM3/4 Dear Rick Bagg: Please tell me how I can include my paper money in a upcoming auc- tion. I understand that all information will be kept confidential. Name Address City State Zip Check here: q I am thinking about selling. Please contact me. Brief description of holdings• Daytime phone number. Paper Money Whole No. 146 Page 59 "THE CONFEDERATE TREASURE TRAIN, The Facts and the Fables" The legendary train escaped from Richmond in April 1865 with $845,000 in gold, silver coins, and ingots plus millions in Confederate currency and bonds. In this thoroughly researched narrative you will learn what really happened to the treasure as it was hauled south, where $86,000 in gold may be buried in Georgia, and why hundreds of $20 gold pieces were scattered on a plantation by renegades. Fascinating 34-page illustrated booklet with route map $3.95 postpaid. "THE SAGA OF SAM UPHAM, 'Yankee Scoundrel"' Upham was a Philadelphia shopkeeper who printed and sold over one and a half million coun- terfeit Confederate and Southern States notes during the Civil War. All are highly prized today. There is reason to suspect that Upham may have been a secret agent of the Union govern- ment. This 38-page booklet has 27 illustrations, including 21 of Upham's "facsimile" notes with captions giving size, type, color of paper, and the kind of printing used. A valuable reference item $3.95 postpaid. "EMANUEL NINGER, Master of Homemade Money" About the year 1884 Ninger began drawing counterfeits of U.S. currency which he successfully passed in New York City for twelve years. A freak accident led to his arrest in 1896. A model prisoner, he was released early for good behavior and simple dropped from sight. This 32-page booklet with 20 illustrations is based on data supplied by the U.S. Secret Service $3.95 postpaid. BRENT HUGHES 871 Seay Road, Inman, S.C. 29349 SPMC #7 SYNGRAPHIC SPECIALS 1902-08, $10 "Bank of North America" Phila., PA. The only National Bank Note that does not have the word "National" in the title. UNC. with light fold. Scarce, popular. $475 1902, $5 "American National Bank", Idaho Falls, Idaho. CR AU. Lists $2,250 in CU. Priced to sell. $1,150 1902, $5 "Brotherhood of Locomotive Engi- neers Cooperative National Bank of Cleve- land". The longest name of any National UNC with faint fold. $500 SASE for our list of other "Syngraphic Specials". Be sure to visit the ANA's great World-Class Museum. It now houses the $2 Million Collection of United States Currency, also the 1913, Liberty-Head nickel, both gifts from Aubrey & Adeline Bebee. AUBREY and ADELINE BEBEE ANA LIFE #110, P.O. Box 4290, Omaha, NE 68104 • (402) 558-0277 -4- K. Vjgli-414:51*"14 1 afgalgP, A11111111 A11111111 A #00000001, #11111111 thru #99999999, #12345678, #10000000 and #100,000,000 serial numbered U.S. & Canadian small & large-size type notes BUYING & SELLING Send for FREE price list Mike Abramson P.O. Box 6105 • Duluth, Minnesota 55816 SPMC #2653 1-218-724-8433 evenings/weekends Page 60 Paper Money Whole No. 146 EARLY AMERICAN NUMISMATICS - *619-273-3566 COLONIAL & CONTINENTAL CURRENCY We maintain the LARGEST ACTIVE INVENTORY IN THE WORLD! SEND US YOUR WANT LISTS. FREE PRICE LISTS AVAILABLE. SERVICES: q Portfolio Development q Major Show Coverage q Auction Attendance SPECIALIZING IN: q Colonial Coins q Colonial Currency q Rare & Choice Type Coins q Pre-1800 Fiscal Paper q Encased Postage Stamps D EARLY AMERICAN NUMISMATICS c/o Dana Linett q P.O. Box 2442 q LaJolla, CA 92038 q 619-273-3566 Members: Life ANA, CSNA-EAC, SPMC, FUN, ANACS BUYING and SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Cer- tificates, Treasury Notes, Federal Reserve Notes, Fractional, Continental, Colonial, Obsoletes, Depression Scrip, Checks, Stocks, etc. Foreign Notes from over 250 Countries Paper Money Books and Supplies Send us your Want List ... or ... Ship your material for a fair offer LOWELL C. HORWEDEL P.O. BOX 2395 WEST LAFAYETTE, IN 47906 SPMC #2907 ANA LM #1503 , - -- ----e-01,4 40.4 ._.._.:-..,,,,+ is9-07-) -.-- 144,— _-- - ---- --'.......,4777 .,• ,„ , , -, I 4....,°a ,„ . .T.: .,_ ... ';,., • :. 4 .„., , . LiiirAwy \ , : ,camtlisvjg. ` . IF, t _...----< „,„/,a,/z.. a,,, /%,, 7, ONE 111:171REDOOLLIRS e/ a. / ,, 4f/i// l4w, 1 , •• .{: -1 . IIE CoLoir.um NiINE DEVEIMPINO COMPANY. .4.nf.,4 WM Iwe'r,/, //i, -,6; thl,i / •‘. , r.n0a, , , , fr.eyr e, /5,(V/klo, 9 P. //i, / 1 MCOPPORATEO. UNDER /Mr STA Of COLON. Oregon Paper Money Exchange We Buy and Sell Western Material STOCKS, CHECKS, ILLUSTRATED BILLHEADS PROMPT SERVICE-GUARANTEED AUTHENTICITY WE SOLICIT YOUR WANT LIST CURRENT LIST FOR $1.00 - REFUNDABLE Send For Our Catalog Today! OREGON PAPER MONEY EXCHANGE 6802 S.W. 33rd Place. Portland, OR 97219 (503) 245-3659 (EVES) Million Dollar Buying Spree Currency: Nationals MPC Lg. & Sm Type Obsolete Stocks • Bonds • Checks • Coins Stamps • Gold • Silver Platinum • Antique Watches Political Items • Postcards Baseball Cards • Masonic Items Hummels • Doultons Nearly Everything Collectible COIN SHOP EST. 1960 INC " 1.11k9kat Voi‘y•t” 399 S. State Street - Westerville, OH 43081 1-614-882-3937 1-800-848-3966 outside Ohio Life Member LIC41.1 `k■Ztg,"•:2 r.7faZi.."‘Mo% Fractional Foreign SEND FOR OUR COMPLETE PRICE LIST FREE 334.-.-0. ore,. :7.■ ell gaol, PAY*VC I COLLECT MINNESOTA OBSOLETE CURRENCY and SCRIP Please offer what you have for sale. Charles C. Parrish P.O. Box 481 Rosemount, Minnesota 55068 SPMC 7456 LM ANA Since 1976 ISCOUSPSOIM.O.7.1. "MillitiglitiRk9KMVSji"d114\ 67431 CANADIAN BOUGHT AND SOLD • CHARTERED BANKNOTES. • DOMINION OF CANADA. • BANK OF CANADA. • CHEQUES, SCRIP, BONDS & BOOKS. FREE PRICE LIST CHARLES D. MOORE P.O. BOX 1296P LEWISTON, NY 14092-1296 (416) 468-2312 LIFE MEMBER A.N.A. #1995 C.N.A. ,` 143 C.P.M.S. Paper Money Whole No. 146 Page 61 WE NEED TO BUY If you are selling a single note or an entire col- lection, you will be pleased with our fair offer — NO GAMES PLAYED HERE! (Selling too! Write for free catalog.) Subject to our inventory requirements we need the following: ALL WORLD BANK NOTES Also U.S. Large Size Notes All Military Currency U.S. Fractional Currency Colonial Currency U.S. Encased Postage Souvenir Cards National Bank Notes U.S. Small Size Currency Ship With Confidence or Write We pay more for scarce or rare notes. TOM KNEBL, INC. (714) 886-0198 P.O. Drawer 3949 San Bernardino, CA 92413 WANTED! FLORIDA under the rule of Spain, England or the United States...virtually anything prior to March, 1845: bonds, books, checks, documents, stocks, medals and tokens. Especially want material re: • Alabama, Florida & Georgia Railroad • The 1817 Amelia Island Affair • The Bank of Pensacola • Southern Life Insurance & Trust Co. • The Union Bank of Florida Photocopy or description and price first response, please. Thank you! CARLING GRESHAM P. O. Drawer 580W, Pomona Park, FL 32181 (904) 649-9730 BUYING-SELLING PAPER MONEY LARGE & SMALL SIZE Nationals, Errors, Type Notes, Stars, Number 1 & 2 Notes, Radars, Solid Num- bers, Ladders. Ship with confidence or write for our offer. We pay more for quality unmolested material. ROBERT and DIANA 11.11.1:TV MUCK V■IN CI el /471 AZPIAZU P.O. Box 1565 St. Augustine, FL 32085-1565 (904) 797-8622 HARRY IS BUYING NATIONALS — LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES PO Box 30369 Cleveland, Ohio 44130 216.884-0701 Page 62 Paper Money Whole No. 146 2t)%?) :t4litog.*W10 ,4j*::.*