Paper Money - Vol. XXV, No. 4 - Whole No. 124 - July - August 1986

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VOL. XXV No. 4 WHOLE No. 124 JULY/AUGUST 1986 THEY MAKE IT POSSIBLE 1.111111111111111i1111111111111111111111111111111111111111111111111111 11111111111111111111111111111111111111111111111111111111111111111111111 TWENTY-FIFTH I ANNIVERSARY 1111111111111111111111111111111111111111111111111111111111111111111 1 ' I 1 111111111111111111111111111111 1 1 1 1 1111111 111111 1 1 1 1 1 1 11111 P.O. Box 4290 cda Charter Mentbr Pre/...tonal Currency Deat.r. Alisottation "Pronto Service" Omaha, Nebraska 68104 SCARCE, OBSOLETE UNCUT SHEETS LOUISIANA. $500.00 ( $1,000.00 New Orleans Canal & Banking Co. Superb Crisp New Uncut Sheet (2). Attractive display sheet for your collection or desk $79.50 NEBRASKA. 1857 Bank of Florence Superb Crisp New Uncut Sheet (4): $1 - $1 - $3 - $5. Beautiful Scarce Sheet $114.50 NEBRASKA. Western Exchange Fire & Marine Insurance Co. Superb Crisp New Uncut Sheet (4): $1 - $2 -$3 - $5. Specially Priced $69.50 SPECIAL. BUY ALL THREE SHEETS WHILE OUR SUPPLY LASTS $219.50 WANTED - BUYING - WANTED BEBEE's is Paying from $550.00 to as high as $2,000.00 for the following 1882 $5.00 BROWN BACK National Bank Notes in Choice AU to Choice Uncirculated: ALABAMA-ARIZONA-ARKANS AS -CALIFORNIA-COLORADO-FLORI DA-HAWAII-I DAHO- MARYLAND-MISSISSIPPI-MONTANA-NEVADA-NEW HAMPSHIRE-NEW MEXICO-NORTH DAKOTA-RHODE ISLAND-SOUTH DAKOTA-WYOMING BEBEE'S is also Paying TOP Immediate-Cash prices for Double-Denomination Notes, also All Territorials (Especially Need Arizona-Idaho-Wyoming); Rare Large-Size 1st & 2nd Charter Na- tionals, No. 1 & Star Notes. Please give us a Try — BEBEE'S has been Leading Specialist in U.S. Paper Money ever since January 1941. Please send any of the following Notes with your Asking Price or for our TOP CASH Offer: DEMAND NOTE NATIONAL GOLD BANK NOTES 1861 $20 NEW YORK. Fr. - 11 VF to Unc. SILVER CERTIFICATES 1870/75 $10 Fr. - 1143/1151 VF to Unc. GOLD CERTIFICATES 1880 $1,000 Fr.-346B/D ExF/AU to Unc. 1882 $50 Lg. Red Seal. Fr. 1191 ExF/AU to Unc. 1891 $1,000 Fr.-346E. Any Grade OK 1882 $100 Brown Seal. Fr.-1203 ExF/AU to Unc. 1882 $100 Lg. Red Seal Fr.-1204 ExF/AU to Unc. COMPOUND INTEREST NOTES 1882 $100 Lg.Brown Seal. Fr.-1205 . .. ExF/AU to Unc. 1864 $100 Fr.-193 VF to Unc. 1928 $500 Fr.-12404 Unc. only 1928 $1000 Fr.-240 Unc. only AVAILABLE NOW: U.S. SALES LISTS = (A) Large Size Notes; (B) Large Size Nationals; (C) Colonial & Continental Currency; (D) Fractional Currency; (E) Confederate Currency. Please specify your collecting interest when requesting any of these FREE lists. WHY NOT GIVE US A TRY—WE WOULD GREATLY APPRECIATE YOUR ORDERS—AND YOU'RE SURE TO LIKE DOING BUSINESS WITH BEBEE'S. SINCE 1941, TENS OF THOUSANDS OF "BEBEE BOOSTERS" HAVE. Y'ALL HURRY NOW—WE'LL BE LOOKING FOR YOU! AUBREY & ADELINE BEBEE ANA Life #110, ANS, IAPN, PNG, SPMC, Others socIrry OF RAPER MONEY COLLECTORS I Nc. aim cte. socIrry OF PAPER MONEY COLLECTORS Paper Money Whole No. 124 Page 149 PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors, 1211 N. DuPont Hwy., Dover, DE. Second class postage paid at Dover, DE 19901. Postmaster; send address changes to: Paper Money, 1211 N. DuPont Hwy. Dover, DE 19901. © Society of Paper Money Collectors, Inc., 1984. All rights reserved. Re- pro-duction of any article, in whole or in part, without express written permission, is prohibited. Annual Membership dues in SPMC are $15. Individual copies of current issues, $2.00. ADVERTISING RATES SPACE Outside 1 TIME 3 TIMES 6 TIMES Back Cover $72.00 $195.00 $367.50 Inside Front & Back Cover $67.50 $181.50 $345.00 Full Page $59.00 $158.00 $299.00 Half-page $36.00 $ 98.00 $185.00 Quarter-page $15.00 $ 40.00 $ 77.00 Eighth-page $10.00 $ 26.00 $ 49.00 To keep administrative costs at a minimum and advertising rates low, advertising orders must be prepaid in advance according to the above schedule. In the exceptional cases where special artwork or extra typing are re- quired, the advertiser will be notified and billed extra for them accordingly. Rates are not commissionable. Proofs are not supplied. Deadline: Copy must be in the editorial office no later than the 10th of the month preceding month of issue (e.g. Feb. 10 for March issue). Mechanical Requirements: Full page 42 x 57 picas; half-page may be either vertical or hor- izontal in format. Single column width, 20 picas. Halftones acceptable, but not mats or stereos. Page position may be requested but cannot be guaranteed. Advertising copy shall be restricted to paper currency and allied numismatic material and publications and accessories related thereto. SPMC does not guarantee advertisements but accepts copy in good faith, reserving the right to reject objectionable material or edit any copy. SPMC assumes no financial responsibility for typographical errors in advertisements, but agrees to reprint that portion of an advertise- ment in which typographical error should oc- cur upon prompt notification of such error. All advertising copy and correspondence should be sent to the Editor. Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XXV No. 4 Whole No. 124 JULY/AUGUST 1986 ISSN 0031-1162 GENE HESSLER, Editor Mercantile Money Museum Box 524, St. Louis, MO 63166 Manuscripts and publications for review should be addressed to the Editor. Opinions expressed by the authors are their own and do not necessarily reflect those of SPMC or its staff. PAPER MONEY reserves the right to reject any copy. Deadline for editorial copy in the 1st of the month preceding the month of publication (e.g., Feb. 1 for March/April issue, etc.). IN THIS ISSUE ORGANIZED LABOR AND THEIR BANKS Bob Cochran 153 CLIFTON MANUFACTURING COMPANY, Pioneer in Southern Textiles Brent H. Hughes 159 THE PAPER COLUMN 19-YEAR BANKS and the NATIONAL BANK ACT OF FEBRUARY 25, 1863 Peter Huntoon 163 "SHAKE RAG STREET" ON NEW POST CARD Barbara R. Mueller 165 RAILROAD NOTES & SCRIP OF THE UNITED STATES THE CONFEDERATE STATES AND CANADA Richard T. Hoober 166 SOCIETY FEATURES INTEREST BEARING NOTES 167 AWARD WINNERS AND FACES IN MEMPHIS 168 LETTER TO THE EDITOR 169 IPMS '86 BUREAU CARD 169 NEW LITERATURE 169 NEW MEMBERS 170 MONEY MART 171 Society of Paper Money Collectors OFFICERS PRESIDENT Larry Adams, P.O. Box 1, Boone, Iowa 50036 VICE-PRESIDENT Roger H. Durand, P.O. Box 186, Rehoboth, MA 02769 SECRETARY Gary Lewis, P.O. Box 4751, N. Ft. Myers, FL 33903 TREASURER James F. Stone, P.O. Box 89, Milford, N.H. 03055 APPOINTEES EDITOR Gene Hessler, Mercantile Money Museum, Box 524, St. Louis, MO 63166 NEW MEMBERSHIP COORDINATOR Ron Horstman, P.O. Box 6011, St. Louis, MO 63139 BOOK SALES COORDINATOR Richard Balbaton, 116 Fisher Street, North Attleboro, MA 02760. WISMER BOOK PROJECT Richard T. Hoober, P.O. Box 196, Newfoundland, PA 18445 LEGAL COUNSEL Robert J. Galiette, 10 Wilcox Lane, Avon, CT 06001 PAST PRESIDENT AND LIBRARIAN Wendell Wolka, P.O. Box 366, Hinsdale, IL 60521 BOARD OF GOVERNORS Charles Colver, Michael Crabb, C. John Ferreri, William Horton, Jr., Peter Huntoon, Charles V. Kemp, Jr., Roman L. Latimer, Donald Mark, Douglas Murray, Dean Oakes, Bernard Schaaf, MD, Stephen Taylor, Steven Whitfield, John Wilson. The Society of Paper Money Collectors was organ- ized in 1961 and incorporated in 1964 as a non- profit organization under the laws of the District of Columbia. It is affiliated with the American Numis- matic Association and holds its annual meeting at the ANA Convention in August of each year. MEMBERSHIP - REGULAR. Applicants must be at least 18 years of age and of good moral character. JUNIOR. Applicants must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or a guardian. They will be preceded by the letter "j". This letter will be removed upon notification to the secretary that the member has reached 18 years of age. Junior mem- bers are not eligible to hold office or to vote. Members of the A.N.A. or other recognized numismatic organizations are eligible for member- ship. Other applicants should be sponsored by an S.P.M.C. member, or the secretary will sponsor per- sons if they provide suitable references such as well known numismatic firms with whom they have done business, or bank references, etc. DUES - The Society dues are on a calendar year basis. Annual dues are $20. Members who join the Society prior to October 1st receive the magazines already issued in the year in which they join. Mem- bers who join after October 1st will have their dues paid through December of the following year. They will also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. PUBLICATIONS FOR SALE TO MEMBERS BOOKS FOR SALE : All cloth bound books are 8 1/2 x 11" INDIANA OBSOLETE NOTES & SCRIP $12.00 Non-Member $15.00 MINNESOTA OBSOLETE NOTES & SCRIP. Rockholt $12.00 Non-Member $15.00 MAINE OBSOLETE NOTES & SCRIP. Wait $12.00 Non-Member $15.00 OBSOLETE NOTES & SCRIP OF RHODE ISLAND AND THE PROVIDENCE PLANTATIONS, Durand $20.00 Non-Member $25.00 NEW JERSEY'S MONEY, Wait $12.00 Non-Member $25.00 TERRITORIALS-A GUIDE TO U.S. TERRITORIALS BANK NOTES, Huntoon $12.00 Non-Member $15.00 Write for Quantity Prices 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. INDIAN TERRITORY / OKLAHOMA / KANSAS OBSO- LETE NOTES & SCRIP, Burgett & Whitfield $12.00 Non-Member $15.00 IOWA OBSOLETE NOTES & SCRIP, Oakes $12.00 Non-Member $15.00 ALABAMA OBSOLETE NOTES AND SCRIP Rosene $12.00 Non-Member $15.00 PENNSYLVANIA OBSOLETE NOTES AND SCRIP (396 pages), Hoober $28.00 Non-member $35.00 ARKANSAS OBSOLETE NOTES AND SCRIP, Rothert $17.00 Non-member $22.00 VERMONT OBSOLETE NOTES & SCRIP, Coulter $12.00 Non-member $15.00 on the above books. 4. Enclose payment (U.S. funds only) with all orders. Make your check or money order payable to: Society of Paper Money Collectors. 5. Remember to include your ZIP CODE. 6. Allow up to six weeks for delivery. We have no control of your package after we place it in the mails. Order from: R.J. Balbaton, SPMC Book Sales Dept. 116 Fisher St., North Attleboro, MA 02760. Library Services The Society maintains a lending library for the use of Librarian - Wendell Wolka, P.O. Box 366, Hinsdale, Ill. the members only. For further information, write the 60521. Page 150 Paper Money Whole No. 124 First millionaire farmer behind Missouri banks Michigan bank couldn't fool the examiners BEP details currency changes Paper Money Whole No. 124 Page 151 Paper Money Collectors — Here's Your One-Stop Information Source You know how frustrating it can be to skim coin-related newspapers and magazines looking for that elusive paper money article. Yes, it's disappointing. But, it doesn't have to be that way. If your main interest is in paper money, then a subscription to BANK NOTE REPORTER can provide the information you need. Solid facts and updates concerning all types of paper money, both U.S. and foreign. In BANK NOTE REPORTER, you'll find coverage of U.S. Paper Money, world bank notes, fractional currency, stocks, bonds, obsolete bank notes, military currency and more. You'll find plenty of photos illustrating the factual articles and historical perspectives. And you'll be kept abreast of upcoming shows, new publications, new organizations, and get a monthly update that features the latest information available on paper money worldwide, coverage of new issues, unpublished types, dates of issues and varieties for owners of the Standard Catalog of World Paper Money, Volumes I and II. A U.S. value guide keeps the latest prices at your fingertips. Plus, trustworthy advertisers, screened by a strict BANK NOTE REPORTER acceptance policy, present thousands of buy/sell opportunities in each issue. It's all yours every month in a concise, informative package — in BANK NOTE REPORTER, the complete news and marketplace for paper money collectors. Guarantee If, for any reason you decide to cancel your subscription, simply drop us a note before you receive your second issue and we'll refund your entire payment. After the second issue, we'll refund on all undelivered issues. Send your subscription request, along with $17.50 for one year (12 issues) to 'BANK NOTE REPORTER, Krause Publications, 700 E. State St., Iola, WI 54990. Make checks payable to Krause Publications. Payable in U.S. funds. ANN 40TE IPORTER 700 E. STATE ST., IOLA, WI 54990 Page 152 Paper Money Whole No. 124 fI I .` 111!))/)l,), \v‘j, 1 11' WE ARE ALWAYS BUYING ■ FRACTIONAL CURRENCY ■ ENCASED POSTAGE ■ LARGE SIZE CURRENCY ■ COLONIAL CURRENCY WRITE, CALL OR SHIP: "7° tiTIOnAl fcurnag. I inc. LEN and JEAN GLAZER (718) 268-3221 POST OFFICE BOX 111 FOREST HILLS, N.Y. 11375 SO( 11- T1 )1- \ p \ pi R \ 1()\F ( 01.1.1 ( '1( IRS (1.1 1‘.‘ IA 92- Charier Mernher LM -5773LM-2849 Paper Money Whole No. 124 Page 153 ORGANIZED LABOR AND THEIR BANKS BY BOB COCHRAN The year 1986 marks the 100th anniversary of the found- ing of the American Federation of Labor, commonly known as the A F of L. In 1955 the A F of L merged with the Congress of Industrial Organizations, creating the cur- rent organization referred to as the A F of L-CIO. Organ- ized labor, since its inception, has touched the lives of vir- tually every living American, in one way or another. In 1919, the A F of L, through one of its member unions, entered the banking field—somewhat by accident. THE COMMERCIAL NATIONAL BANK OF WASHINGTON T HE International Association of Machinists was head-quartered in Washington, D.C. As an investment for apart of their trade union funds, they bought a small block of stock in The Commercial National Bank of Washington. In the spring of 1919 proxies for the union's stock were solicited by two factions among The Commercial National Bank's stock- holders. These factions were engaged in a close contest for con- trol of the bank. Without giving an answer to the leaders of either faction, offi- cials of the union quietly added to its holdings through pur- chases of Commercial National stock on the open market. Just before the annual meeting at which the issue of control was to be decided, the union took over a large number of shares from a stockholder pressed for ready cash. On the day of the meeting the union held the largest single block of stock outstanding. Neither faction could secure control of the bank without the assistance of the union. An agreement was speedily reached with the leaders of that faction whose members had been friendly to the union in the past, and at the annual meeting, control of the bank was taken by this group in cooperation with the union's officials. William H. Johnston, president of the union, and E.C. Davison, secre- tary-treasurer, were elected to the board of directors of The Commercial National Bank. For a year they studied banking from their vantage point in the director's room. The experience they gained led them to the decision to open their own bank. THE MOUNT VERNON SAVINGS BANK OF WASHINGTON The first trade union bank in the United States was the Mount Vernon Savings Bank of Washington, D.C. It opened on May 15, 1920 with a capital of $160,000 and a paid-in surplus of $40,000. The subscriptions came from the International Asso- ciation of Machinists, its members and their friends. The re- sources of the bank exceeded $1 million by 1922, and reached nearly $3 million by May of 1923. In the summer of 1920, the Mount Vernon Savings Bank became involved in a situation that justified its existence to union members and helped speed the organization of other union- operated banks. The situation came about in Norfolk, Virginia. Before World War I, Norfolk was an open shop town. This meant that workers were not required to be members of a trade union in order to secure employment. Efforts to unionize marine repair works — the city's principal industry — had met with little success. There were boom and slack periods in each year. Dur- ing the boom periods the workers could earn substantial amounts due to overtime work; during the slack periods almost all of the workers were unemployed. Most of the workers were unwilling to risk disfavor from the plant owners. The war brought steady employment, and with it unionization of the workers. The foundry workers formed a group called the Iron Masters' Association. Its aim was to return the plants to an open shop ar- rangement at the war's end. As the existing union contract was to expire in the summer of 1920, the Iron Masters' Association announced that they would have no further dealings with the union; that the plants would be run as open shops; and that the basic wage for machinists would be reduced by 8 cents per hour from the existing contract wages. The workers struck im- mediately. Most of the companies were in good shape financially, because of war profits. One, the Crescent Machine Company, was not. It had been formed shortly before the strike by the Bankers' Trust Company of Norfolk, to take over the plant and work off the debts of its predecessor, the Southern Iron Works. Crescent's management, some of whom were former union members, realized that the company could not survive the strike. They signed a new agreement with the union on the pro- posed terms and resumed operations. The Iron Masters' Association brought pressure against Bankers' Trust Company to stop furnishing operating capital to Crescent and to call in its notes of $40,000; the bank complied. The Iron Masters' then contacted Crescent and offered to pay off its debts, but only if the company cancelled its union con- tract, offered the lower wages, and became an open shop. The marine repair workers had affiliated with the International Association of Machinists. They contacted the union headquar- ters in Washington and explained the situation. The union of- ficials studied the problem and came up with an idea: could the union lend assistance, through its bank? The cashier of the Mount Vernon Savings Bank went to Norfolk. After evaluating the plant and its books, the union decided to take over the obli- gations of Crescent. During this time the marine repair workers cancelled their accounts at the Bankers' Trust Company and transferred them to the Mount Vernon Savings Bank of Wash- ington. Bankers' Trust Company readily accepted the offer of the cashier of the Mount Vernon Savings Bank, made on behalf of "one of its customers" — the fact that the "customer" was the International Association of Machinists was not disclosed. This was the first time a private industrial enterprise was to be fi- nanced by a labor organization and its bank. Page 154 A severe depression in the shipping industry later that year forced Crescent Machine Company to close, idling it along with the other strike-bound plants. Eventually the company was de- clared bankrupt, and was purchased at the receiver's sale by the International Association of Machinists. The purchase money was later returned to the union as holder of the deed of trust. While not a complete victory for the union, it did save an esti- mated $200,000 in strike benefits by keeping the plant open as long as it did. BROTHERHOOD OF LOCOMOTIVE ENGINEERS COOPERATIVE NATIONAL BANK The Brotherhood of Locomotive Engineers, headquartered in Cleveland, organized this first labor-owned and labor- operated national bank. It became the largest (in terms of re- sources) and the most active of organized labor's cooperative national banks. Because of its importance, this bank and some of its activities are to be discussed in detail. As noted earlier in the discussion about the Crescent Machine Company and the Iron Masters' Association in Norfolk, there was tremendous strife between Capital and Organized Labor in the period immediately following World War I. To get a feel for the feelings of Capital (or "organized banking") toward the es- tablishment of the Brotherhood of Locomotive Engineers Co- operative National Bank, we can look through the pages of The Bankers Magazine, a monthly publication directed at the bank- ing field. The first account of the new bank appeared in the July, 1920 issue, under the title "Railroad Bank Chartered": A charter for the Brotherhood of Locomotive Engineers Co-operative National Bank, Cleveland, Ohio, has been approved by the Comptroller of the Currency. The bank is capitalized at $1,000,000. Warren S. Stone, grand chief of the brotherhood, made the application for the charter. Not an earth-shaking announcement, but then the magazine received more information about the bank. Here's what The Bankers Magazine had to say in the August, 1920 issue, in an editorial titled "Organization of a Co-operative National Bank": According to a Washington dispatch, approval has been given by the Comptroller of the Currency for the organi- zation of "the Brotherhood of Locomotive Engineers Co- operative National Bank of Cleveland, Ohio". In the dis- patch announcing this fact it is said the policy of the bank would be to lend money "to workers and farmers instead of to speculators and manipulators." Paper Money Whole No. 124 Perhaps, if a thorough survey of the character of bank loans were made, it would be found that comparatively few of them represent advances to the two classes last named. No one denies, of course, that "speculators" do obtain loans from the banks, but these loans probably constitute a trifling percentage of all bank loans. If workers and farmers are actually denied loans, while "speculators and manipulators" are not, this might justify the organization of a special type of bank designed to redress this in- equality of treatment. It is very doubtful, however, whether any injustice exists. The great number of banks existing in agricul- tural communities, receiving their deposits largely from farmers and often owned principally by them, would seem to indicate quite clearly, even in the absence of statistics, that the banks of the country are now making large loans to those who own or cultivate the farms. It is also clear enough that banks doing a savings business are lending extensively to workers for the con- struction of homes. IF THE ORDINARY WORKER IN IN- DUSTRY IS SELDOM A BORROWER AT A COMMERCIAL BANK IT IS BECAUSE HE HAS NO OCCASION FOR SUCH SERVICE. THE SERVICES OF COMMERCIAL BANKS ARE FOR THOSE WHOSE OPERATIONS ARE SO LARGE AND OF SUCH CHARACTER THAT CREDIT MUST BE EMPLOYED AND ITS USE PAID FOR. THE WORKER FOR WAGES IS IN A MORE FORTUNATE POSITION. RECEIV- ING CASH FOR HIS LABOR, HE CAN IN TURN PAY CASH FOR WHAT HE BUYS (author's emphasis). If there is room in the United States for the creation of banks to serve a distinct class, the fact seems heretofore to have escaped the attention of a number of enterprising gentlemen who are always anxious to take advantage of opportunities for starting new banks where there is a chance of making a profit. Well, there were some enterprising gentlemen anxious to take advantage of the opportunities, but they weren't necessarily out to make a profit. Edward J. Manion, President of the Order of Railroad Telegraphers, was also president of The Telegraphers National Bank of St. Louis (this bank is discussed later in the ar- ticle). In his capacity as a labor leader and national bank presi- dent, he spells out the reason for the co-operative banks in an article in the Official Year Book of Organized Labor — 1926. The article is titled "Labor Banks—An Economic Weapon": A large part of the workers' billions of dollars on deposit with the banks are loaned by them to big business. It is your money and my money, the workers' money, that is The longest title to appear on a large-size national bank note; it has the engraved signature of Wm. B. Prenter, President. Paper Money Whole No. 124 being utilized to finance the borrowing corporations and employers of Labor. You may only have a few hundred dollars on deposit with your bank; but there are millions of workers like you, that have only a few hundred dollars on deposit with their bank; and in the aggregate these few hundred dollars amount to enormous sums, and repre- sent tremendous financial strength. The power of the employer hinges largely on his ability to obtain the necessary money and credit to operate his business. In the case of a strike, the need of the employer for current bank loans is even greater than in normal times. Yet the worker, until very recently, has never taken into consideration that it is largely his funds that supply the credit for his employer. The worker has contented himself in his battle with Capital, to employ the strike, very often a two-edged weapon, inflicting untold misery upon himself and his family, and not impressing his employer so much, as his employer was well fortified by the money and credit he needed to carry him over the period of non-production. The union man should not knowingly buy goods manufactured by the mill he is striking against. Yet, by maintaining his funds in the non-union bank, he is just as surely lending aid and comfort to the enemy of the labor movement, as if he purchased the product of the mill. While The Banker's Magazine had its earlier comments about the organization of the co-operative national bank, it was also an informative publication. In the same August 1920 issue, it printed the following information about the bank, under the title "Plans for Brotherhood Bank": The Brotherhood of Locomotive Engineers Co-operative Na- tional Bank will open for business soon in Cleveland, the charter having been granted in Washington. The bank will be a national bank, capitalized at $1,000,000, divided into 10,000 shares of $100 each, with 10 percent surplus to be paid in. STOCKHOLDERS WILL BE CONFINED TO THE BROTHERHOOD MEMBERSHIP, AS A PROTEC- TIVE PROVISION (author's emphasis). (A statement on the face of each certificate indicated that the Brotherhood had the right of first refusal in the event that the shares were to be sold, and advised non-members against buying them. The article indicated that the bank would have experienced banking experts, already hired, in charge of commercial, sav- ings, and trust departments. There would be a fiduciary depart- ment to prepare wills for those who wished to do so. The bank had published a circular indicating that its purpose was to AID THE 85,000 MEMBERS, WATCH OVER THEIR WELFARE, FURNISH INFORMATION AND ADVICE, AND ASSIST IN BUILDING HOMES AND PROVIDE INVESTMENT FUNDS FOR OLD AGE OR EDUCATION OF CHILDREN (author's emphasis). The circular was signed by Warren S. Stone, Grand Chief of the Brotherhood, and W.B. Prenter, First Grand Engineer. The charter mentioned earlier as being granted by The Comp- troller of the Currency was number 11862. Warren S. Stone, Grand Chief of the Brotherhood, was the president. The general manager of the bank was Dr. Walter F. McCaleb. He had formerly been vice-president of the Federal Reserve Bank in Dallas. The bank opened on November 1, 1920 with $653,000 of its authorized capital of $1 million paid in. By June of 1923 its Page 155 resources exceeded $22 million. But the bank received little at- tention from the established Cleveland banks until it offered 4% interest on deposits of public money; deposits of public money had been receiving 3 1/2% interest in the established banks. When the Brotherhood bank offered 4% on such funds, several million dollars of state and county funds were transferred to it. The Cleveland Clearing House Association was comprised of all the city's larger banks—all except the Brotherhood bank. The association began an advertising and publicity campaign de- signed to convince the public that any bank not a member of the clearing house, and offering unusually high interest rates (as was the Brotherhood bank), was unsafe. The association devised a "sign of safety" that was prominently displayed at its member in- stitutions. The officials of the Brotherhood bank sent an open letter to the Clearing House Association, inviting it to explain the continued existence of the organization. The previously legiti- mate functions of clearing houses had been taken over by the Federal Reserve Banks, one of which was located in Cleveland. The letter suggested that the real reason was to perpetuate a banking monopoly, by regulating the rate of interest paid to depositors, and to fix the fees and interest charges levied on bor- rowers. When this letter was published, the clearing house cam- paign was suspended. Warren S. Stone The Brotherhood bank took over the Peoples' State Bank of Hammond, Indiana in October of 1921. This was done in co- operation with local lodges of engineers, firemen, trainmen and conductors. The bank was reorganized as the Peoples' Co- operative State Bank, and opened for business on October 25, 1921. The bank's deposits doubled within four months, and its resources exceeded half a million dollars. The Brotherhood of Locomotive Engineers formed the first labor investment company in the United States—the Brother- hood Holding Company. It opened for business in Cleveland on March 10, 1922. Warren S. Stone, also president of the holding company, announced that it was being formed because of the limitations placed on the national bank. In April 1922 the holding company purchased the outstanding shares of the Not- tingham Savings and Banking Company of Cleveland, and con- verted it to a branch of the Brotherhood of Locomotive Engi- neers Cooperative National Bank. The Brotherhood of Locomotive Engineers also financed the Coal River Collieries Company. At the beginning of the United Mineworkers' strike in 1922, the Brotherhood Holding Com- pany took over 6,000 acres of coal lands along the Coal River, in Boone County, West Virginia, and Floyd County, Kentucky. Page 156 A wage scale was set giving miners one dollar a day in excess of the highest wage ever demanded by the United Mineworkers from neighboring mines. The mines were improved and safety devices installed. The company built bungalows, a school, church, theatre, club house, sewage disposal system, and a power plant. Strikers from neighboring mines were given employment, saving substantial amounts of strike benefits from the United Mineworkers' treasury. The coal mined was pur- chased by cooperative associations of consumers in nearby cities and sold by them to their members, at prices well below the market. In 1925, the Brotherhood of Locomotive Engineers organ- ized the Northwest Corporation, to aid distressed farmers in the northwestern United States. The corporation was to invest its funds in the capital stock of national and state banks and trust companies and purchase an established farm mortgage com- pany. Northwest bought control of five banks in North Dakota, including the First National Bank of Oakes, Dakota National Bank of Aberdeen, and the First National Bank of Fullerton. Failure of the Bank The Brotherhood of Locomotive Engineers Co-operative Na- tional Bank became, in a way, a victim of its own success. The Brotherhood Holding Company was the vehicle that doomed the bank. The Holding Company had been the idea of Dr. McCaleb, an experienced banker. Its original purpose had been to finance homes, buy and own securities and to act as invest- ment broker for members who felt the urge to make some more money. Before it had been established, Stone saw its possi- bilities, and made himself president; McCaleb resigned to become involved with a labor bank in New York, leaving an in- experienced Stone in charge of millions of Brotherhood (and its members') money. Stone (who died on June 12, 1925) and his successor Prenter invested it badly. By 1927 the Brotherhood was staggering under tremendous debts. Its ventures into real estate, securities, insurance, trust, mortgage, and thrift agencies were hopelessly insolvent. Prenter and his associates were ousted that year, and Alvanley Johnston took control of the union. Paper Money Whole No. 124 Alvanley Johnston OTHER COOPERATIVE NATIONAL BANKS The success of the Brotherhood of Locomotive Engineers Cooperative National Bank of Cleveland led other unions to or- ganize cooperative national banks. The Cleveland bank offered support to these banks and in several cases assisted with their capitalization; when it became troubled some of them were re- organized or taken over as well. A brief description of them follows. The Telegraphers National Bank of St. Louis The Order of Railroad Telegraphers adopted a resolution at its 1921 convention authorizing the organization of a national bank "similar in scope to the one now operated by the Brother- hood of Locomotive Engineers in Cleveland." Charter 12389 was issued to the Telegraphers National Bank of St. Louis. The bank opened on June 9, 1923 with a combined capital and sur- plus of $600,000. The Telegraphers National Bank added sev- eral by-laws to those required by national banks: The second title (after reorganization) for charter 11862 wi th engraved signature of A(luanley) Johnston, President. Charter 11862 was reorganized as the Engineers National Bank 1. The bank allowed no loans to its directors or officers, of Cleveland on February 15, 1928, but the reorganization and did not permit their endorsements on the obliga- could not stop its fall. The membership had been assessed tions of others to the bank. repeatedly and the brotherhood had lost millions of dollars, 2. The bank voluntarily limited the dividend possibilities much of it bad paper cleared through the bank. The drain on the of its stock to 10 percent, to eliminate "the induce- bank's remaining resources during the early days of the depres- ment to take undue risks. . . . sion forced it into voluntary liquidation on September 12, 1930 3. The by-laws provided for paying dividends to the DE- and it was absorbed by the Citizens Bank and Trust Company of POSITORS, as opposed to paying dividends to the Cleveland. bank's SHAREHOLDERS (author's emphasis). PAINICOMIKE32131A=INISM cl.E6WNE115 0710SAL UNA OF Si, !OITS 13 0 ArestaSair Paper Money Whole No, 125 Page 157 Note from the bank owned and operated by the Railway Tele- graphers—Series of 1929 with engraved signature of J. Manion, President. The bank operated successfully until 1942, when it was ab- sorbed by the United Bank of St. Louis. (For more detailed in- formation about this bank, see Ron Horstman's excellent article in the January/February 1979 issue of PAPER MONEY, pages 24 - 25) . The Brotherhood of Railway Clerks NB of Cincinnati At their convention in Dallas in 1922, the Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees voted unanimously to organize a coopera- tive national bank. They also voted to construct a $300,000 building to house the bank and the union offices in Cincinnati. Charter 12446 was granted to the Brotherhood of Railway Clerks National Bank of Cincinnati on July 16, 1923. The bank's capital was $200,000 and there was a paid-in surplus of $50,000. The bank was placed in receivership on June 26, 1930. It was restored to solvency on July 2, 1930, and placed in voluntary liquidation on August 22, 1930. It was absorbed by the Central Trust Company of Cincinnati. The B.L.E. Cooperative NB of Boston Charter 12540 was issued to the Brotherhood of Locomotive Engineers Cooperative National Bank of Boston in May, 1924. The bank was reorganized as the Engineers National Bank on January 20, 1927 and again to the Continental National Bank of Boston on August 15, 1930. The bank closed and consoli- dated with the Boston National Bank on December 26, 1930. Labor Cooperative NB of Paterson, New Jersey Charter 12560 was issued to this bank on May 23, 1924. Its authorized capital was $200,000, much of it furnished by the Brotherhood bank in Cleveland. The bank was reorganized as the Labor National Bank of Paterson on August 20, 1928. The Brotherhood Cooperative NB of Portland Charter 12613 was issued to this bank in Portland, Oregon in December, 1924. The title was changed to the Brotherhood Na- tional Bank on June 4, 1929 and later changed to the Columbia National Bank on November 22, 1929. It was placed in volun- tary liquidation on July 1, 1931 and was absorbed by the American National Bank of Portland. The Brotherhood Cooperative NB of Tacoma Charter 12667 was issued to this bank on December 27, 1924. The bank's title was changed to the Washington National Bank in the City of Tacoma on May 12, 1930. The bank was placed in receivership on February 2, 1932. The Labor Cooperative NB of Newark This bank was issued Charter 12771 in 1925. The title was changed to the Labor National Bank on January 20, 1927. It was reorganized as the Union National Bank in Newark on August 2, 1929. This note represents the third "labor" national bank. The Transportation Brotherhoods NB of Minneapolis Charter 12282 opened for business on December 18, 1922. It was absorbed on February 4, 1930 by the Marquette National Bank of Minneapolis. The Brotherhoods Cooperative NB of Spokane This bank, with Charter 12418, opened on July 23, 1923. The title was reorganized as the City National Bank of Spokane on December 1, 1928. The bank was placed in receivership on November 20, 1930 because of a deficiency in assets. The Labor National Bank of Jersey City This other New Jersey bank was issued Charter 12939 in June, 1926. It was placed in voluntary liquidation on Septem- ber 18, 1931 and was absorbed by the New Jersey Title Guarantee and Trust Company of Jersey City. The Brotherhood NB of San Francisco Charter 13016 opened in December, 1926. The bank was re- organized as the City National Bank on May 15, 1929. The bank was placed in voluntary liquidation on August 11, 1932 and was absorbed by the Pacific National Bank of San Francisco. Page 158 EPILOGUE Peter J. Brady, President of the Federation Bank of New York, a labor bank, stated in 1925 that labor had gone into the banking business in self defense, after many banks had used funds deposited with them by trade unions to back industrial combinations that were fighting the union movement. "We operate a legitimate business and we grant loans upon a business basis to every one who has good collateral. We are not in the banking business simply to finance strikes, as some may think, and we do not loan to a union except on sufficient col- lateral to protect our investors. We find that in our position we can be of great assistance in bringing capital and labor together, because we are in a position to see both sides of a dispute. I pre- dict that within a few years there will be a string of labor banks across the country." Brady was wrong about the "string of labor banks," as December 1926 marked the last national bank char- tered by organized labor. At one time organized labor owned or controlled some 38 banks in the United States, but the move- ment waned in the late 1920s. As noted above, most of the cooperative national banks organized and operated by trade unions closed or were taken over during the Great Depression of the 1930s. With so many union workers unemployed, the drain on the banks' assets was overwhelming. But the progress made by these banks in chang- ing the operational methods of modern banks cannot be meas- ured. Before the Commercial National Bank of Washington "experiment", the trade unions and their financial activities were taken for granted by the established banks. Organized labor and their banks showed the nation's financial community that they were a force to be reckoned with, and that holds true today. NATIONAL BANK NOTE ISSUES Assembling a representative collection of the national bank notes issued by the eleven national banks discussed in this article would be quite a task. Several of the banks issued large-size notes only, although some issued small-size notes under a differ- ent title. The following chart indicates the types of notes issued by each bank, and the rarity of their surviving notes as defined by the Standard Catalog of National Bank Notes by John Hickman and Dean Oakes. The Brotherhood of Locomotive Engineers Cooperative Na- tional Bank of Cleveland, Ohio, with Charter 11862, has the distinction of having the longest bank title to appear on large-size national currency. But remember the union that organized Charter 12446, The Railway Clerks National Bank of Cincin- nati? Can you imagine the headaches at the Bureau of Engrav- ing and Printing if the union had chosen to use its full name on their notes — "The Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express and Station Employees Na- tional Bank of Cincinnati, Ohio"? CHARTER 1902 PLAIN BACK 1929-1 1929-2 RARITY 11862 5 B.L.E. Cooperative NB of Cleveland 11862 5 5 Engineers NB of Cleveland 12282 5 Transportation Brotherhoods NB of Minneapolis 12389 5-10-20 5-10-20 5-10-20 Telegraphers NB of St. Louis Paper Money Whole No. 124 CHARTER 1902 PLAIN BACK 1929-1 1929-2 RARITY 12418 5 5 Brotherhoods Cooperative NB of Spokane 12446 5 5 3L 5S Railway Clerks NB of Cincinnati 12540 5 5 B.L.E. Cooperative NB of Boston 12540 5 5 6L 5S Engineers NB of Boston 12540 5 6 Continental NB of Boston 12560 5-10-20 5 Labor Cooperative NB of Paterson 12613 5 4 Brotherhood Cooperative NB of Portland 12613 5 6 Brotherhood NB of Portland 12613 5 6 Columbia NB of Portland 12667 5 5 5L 5S Brotherhood Cooperative NB of Tacoma 12267 5 6 Washington NB in the City of Tacoma 12771 NO NOTES ISSUED WITH THIS TITLE Labor Cooperative NB of Newark 12771 5 6 Labor NB of Newark 12771 5 5 4 Union NB of Newark 12939 5-10-20 5-10-20 5L 6S Labor NB of Jersey City 13016 5 4 Brotherhood NB of San Francisco 13016 10-20 3 City NB of San Francisco REFERENCES Labor's Money, by Richard Boeckel. Copyright 1922, Harcourt, Brace, and Company, New York. Standard Catalog of National Bank Notes, by John Hickman and Dean Oakes. Copyright 1982, Krause Publications, Iola, Wisconsin. Additional Safeguards, Additional Interest. Copyright 1923, The Tele- graphers National Bank of St. Louis. The Bankers Magazine. Various issues 1920-1925. Copyright, The Bankers Publishing Company, New York. Official Year Book of Organized Labor — 1926. Page 29. Copyright 1926, The American Federation of Labor, Washington, D.C. The Cleveland Press. Series of Articles by Ira Wellborn, May-June 1933. ACKNOWLEDGEMENTS Thanks to the following who provided assistance and additional infor- mation for this article: Charlie Cashion, Dennis Simmerman of the Brotherhood of Locomotive Engineers, Mercantile Library in St. Louis, and Ron Horstman. 2 3L 2S 5 4L 2S Paper Money Whole No. 124 Page 159 Clifton Manufacturing Co. Pioneer in Southern Textiles by BRENT H. HUGHES, SPMC 7 A SERIES of inventions beginning in 1773 took textilesfrom an English cottage industry to a factory enterprise.The flying shuttle, the spinning jenny, the roller spin- ning frame and the power-loom were gradually developed, as was the technique of the division of labor. In this system differ- ent groups of workers performed the separate steps of carding, roving, spinning and weaving as raw cotton was turned into fab- ric. Many factories were built, exports increased, and a lot of money began to flow back to England. The government then began to jealously guard the devices used in the cotton mills and banned the export of machinery or even blueprints and draw- ings. Affluent colonists in America preferred English textiles to our crude products, but after the Revolution the various states began to encourage industrialization. English mechanics were urged to emigrate to America with the promise of financial rewards far beyond anything they might make in England. One example was Samuel Slater who smuggled out drawings of English ma- chinery when he left for America. He landed in Philadelphia in 1789 and soon thereafter became manager of a textile mill at Providence, R.I. owned by Moses Brown, a prominent Quaker merchant. Slater designed new machinery based on memory and his few sketches. In ten years Brown and Slater opened a second plant, followed by others in New Hampshire and Massa- chusetts. Incredibly the mills were staffed by children four to ten years old. This was not considered unusual at that time. Ameri- can farm children had always been put to work in the fields while very young. In 1814 Francis Cabot Lowell, a Boston importer, organized the Boston Manufacturing Company. He erected, at Waltham, Massachusetts, the first factory in the world to convert raw cot- ton into finished cloth with power machinery inside the walls of a single building. He, too, had smuggled sketches out of Eng- land after a visit there. A machinist named Paul Moody took the sketches, added his own ideas and produced machines driven by water power. The company's cotton products became popular and by 1820 the company had expanded to the point that the local river could not provide enough power. The owners went looking for another stream and found a thirty-foot waterfall on the Merri- mack that could be harnessed. They quietly bought up the sur- rounding area and in 1822 set up the Merrimack Manufacturing Company, capitalized at $600,000. The town that grew up around the mill was named Lowell in honor of the deceased Francis Cabot Lowell. By 1826 the company was producing two million yards of cotton goods per year. The waterfall created only about sixty horsepower of energy but this was enough to operate all 3,600 spindles in the factory. The American textile industry was on its way. The New England mills depended upon a supply of cotton grown in the American South. Logic would have moved the plants closer to the cotton fields but there was resistance from the mill owners who wanted to stay in the North and Southern plantation owners who felt that factories would siphon off their cheap labor. Thus the seeds of the American Civil War were sown. As early as 1845 a South Carolina industrialist, William Gregg, had railed against the evils of one-crop agriculture. He wanted to change things, he said, by building textile mills on fast-moving Carolina rivers to process Carolina cotton using Carolina farm hands who would live in company-owned houses near the plants. Gregg built his first textile mill at Graniteville, S.C. in 1846 and did fairly well with it. But there was still a gen- eral resistance to industry in any form. The Civil War, of course, changed everything and after Re- construction a gradual change of attitude took place. Poverty- stricken Southerners realized that industry had to be brought in if the people were to survive. Alabama, with its rich iron deposits, was to see a "Pittsburgh of the South" develop at Birmingham; North Carolina turned tobacco processing into big business and other areas encouraged the infant textile industry to expand. Since water power was essential, the mills were drawn to the Piedmont area of the Carolinas and Georgia where swift rivers tumbled down the eastern slopes of the Appalachians on their way to the sea. Many local people bought stock in the new com- panies. One newspaper, whose editor probably had a financial interest in the local mill, glowingly described it as "a fine exem- plification of what Southern brains and energy, devoted to busi- ness and consecrated to God" could do. A mill owner, in re- sponse, stated that he had built his mill and village so that "hap- py, God-fearing, working people could enjoy the conveniences and comforts of improved social conditions. We make Ameri- can citizens and run cotton mills to pay the expenses". But the profits, for the most part, still flowed North where New York and Boston banks reaped the dividends. For the farm hand turned factory hand it turned out to be less than the Paradise he thought it would be. The hours were long, the pay was low, and most people ended up owing practically all of their wages to the company store for essentials already consumed. It was still the hand-to-mouth existence he had known on the farm—only the circumstances were different. But there was some small measure of security in a steady job and there were three meals a day. So the era of the Southern cotton mill began. Typical of the textile villages was that of the Clifton Manufac- turing Company near Spartanburg, South Carolina. The Paco- let River flows through the area, at one point becoming quite swift at a place known as Hurricane Shoals. An iron works was there first, the site of a British-American skirmish on August 7, 1780. After independence the area lay dormant for about 50 years. In the early 1830s, Dr. James Bivings came from nearby Lincolnton, North Carolina to build one of South Carolina's SMARR'S . .... . -, 022 it: ,• 9-5 ' ' . I, Spy' '; — CUUCC,:,. a- , c)-),),h,'t.0 }-3 1-5 'IV ttivrire /A/rec.' 1 ..7/,,,,d.6x,,-4),,,/;//;,74 , -0 LA-1-4,,,,,k)Zi '6,/,..44-///*fi.;//?X/' CLIFTON MANUFACTURING CO. .hrtiz; cra/V; es. or/ 44.- ;A,' , 4:',, , ,,,/,/, , 6,/,//' OW /, /////f'iJe'W i/ 4,. V (i,vr,/,, .,..,,./,;. Kra/X■wiir/ew ./,'"4 .)//iii/.4//'i iy/l/i4Ail/ir4vP. ( -///,' ri t .. , t_2 (C.). A.,t -..,Ak I.=' Atc.) (Itr' x gc;971-116-1-1—c----/rwdrwt ■_)k .,,;()CA..}.■ 'CA).■,■.,t_t Tyrattiret Page 160 largest textile mills. His town was called Bivingsville at the time; the name was later changed to Glendale. The author made this sketch of Dexter Edgar Converse, founder of the Clifton textile mills, from a photograph in Spartanburg County, A Pictorial History by Philip N. Racine. Paper Money Whole No. 124 Dr. Bivings sold out 20 years later to a group that included Dexter Edgar Converse, a native of Vermont. Converse was very successful and in 1880 founded the Clifton Manufacturing Company. The village was called Clifton because it is located on steep hills and cliffs on both sides of the river. The first plant, known as Clifton Number One, started production of fabric in 1881. Plant Number Two was built about 1889 and Number Three, named Converse, in 1896. The three villages, tied to- gether by company-owned houses for workers, formed a town with almost everything the people needed within walking dis- tance. The company's general store, a pharmacy, post office, farmers' market and active railroad depots contributed to the general prosperity. June 6, 1903 brought a devastating flood of heavy rains to the area and the normally placid Pacolet River became a raging torrent. Dams above Converse gave way and walls of water all but washed away the mill. The tall brick smokestack atop the boiler room came down, sending a huge spray of water high in- to the air. Swept away were 60 mill houses, the company store at Number Two and other smaller buildings. At least 50 people lost their lives. Total damage amounted to over $3.5 million. Dexter Converse had died in 1899 and operations of the company had been turned over to A.H. Twichell, his brother-in- law. After the flood, Twichell moved quickly to rebuild the dam- aged buildings and get back into operation. By 1907 the com- pany had 1,482 employees with an annual payroll of $348,000. The total population of the village was 3,085. The mills made drills and print cloth, including the red bandanas used by railroad workers. In contrast to today, the company had huge exports to China. This certificate for 20 shares of common stock in the Clifton Manufacturing Co. was issued on January 13, 1899. It was personal- ly signed by Dexter Edgar Converse, President, and A. H. Twichell, Treasurer. Mr. Converse died shortly after signing this certifi- cate and operations of the company were taken over by Mr. Twichell, his brother-in-law, who brought the company back after the devastating flood of 1903. The sunburst and fluffy clouds behind the com- pany name seemed ap- propriate when combined with the open cotton boll and foliage shown at left. "King Cotton" was the popular symbol of the American South. To Converse Savings Bank, Converse, S. Check designers and printers had their favorite symbols, one of which was the magnificent American eagle. This de- sign could be pre-printed and the specific company name added as orders for checks were received at the print shop. Paper Money Whole No. 124 Page 161 This check has the im- printed tax stamp for two cents, a so-called tempor- ary tax imposed in 1862 to help finance the Civil War. It was finally re- pealed in 1882, only to be reinstated in 1898 to support the Spanish- American War expenses. This check was written in 1883 and the tax stamp was rubber-stamped ver- tically with the words "Stamp Redeemed". Ap- parently the government rebated the two cents to the Clifton Manufacturing Co. and allowed them to use up their supply of checks. By 1915, when this check was written, print- ers were gradually getting away from the very or- nate designs that were popular around the turn of the century and be- ginning to use "clean" type faces. i c..) -4:4) = .C. .= -g. z= *= t: Ca7, ‘.' o 5^ ''', (. 3Ng. '-'` Cancyzacm,B.E. ler 30 19IP 1E1 01. ,.'', \ 13"3M a 67-301 c 6,, Per uTo Two / v3kb -6 5.1.5P_,:___:_----- ,,- _9 \ '4-,1‘/ 0calOY`licrgic--,70- 13oLzame co, ,Eyst, ILTNEEIXT or g* ,/ e—a--4, t _____ Page 162 Paper Money Whole No. 124 .L $1.00 1404 A • Clifton and Commas, S C 192 Received of CLIFTON MANUFACTURING CO, Coupon Book to the amount of One Dollar , THE COUPONS IN THIS BOON ARE SSiued L issuealV Date The following members of my family are entitled to use this book in purchasing goods for my account: 593 •••• FTON/, MANU FACT URI NG CO. c......rorr.oaa... '1404A MANU FACT URI NG CO. If presented by any person other than above named I hereby authorize the CLIFTON MANUFACTURING COMPANY'; to take up and creditql*account with the outstanding coupons. ' The receipt of this coupon book shall be considered a full assent to this regulation. 1.7i119, MANUFACTURING CO. LIM. .