Paper Money - Vol. XXXVII, No. 6 - Whole No. 198 - November - December 1998

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./.1=1.■■•••1 NOV / DEC 1998VOL. XXXVII No. 6 WHOLE No. 198 Will You Do What Most Experienced Collectors Have Done When It's Time To Sell? You've enjoyed collecting paper money for years, and now you are seriously thinking about selling. You could grade, price and describe each item yourself, and publish costly newspaper ads. You could write your own fixed price list or catalogue, and mail it out to thousands of collectors. You might even attempt to accurately price each piece, and offer it wholesale to dealers, or you could do what most experienced collectors and dealers have done when faced with this difficult decision - consign your collection to an auction. Once you decide to sell at auction, you need to select the right auction company. While many factors should be taken into consideration, one question should always be ask - "where and when will my material be auctioned?". At R. M. Smythe and Company, we think there is only one correct answer - great collections of paper money should be auctioned at important paper money shows. If your collection was in our June 1998 Memphis International Paper Money Show Auction, or our September 1998 Strasburg Paper Money Show Auction, or our October 1997 St. Louis Paper Money Show Auction it might have been personally viewed by hundreds of the world's top paper money collectors and dealers. It would have been bid on by hundreds more through the mail. Just how many people do you think will see your notes if they're sold at an ordinary coin show? There are many other good reasons to consign to Smythe. We have a full-time staff of recognized experts in paper (Dr. Douglas B. Ball, Martin Gengerke, Kevin Foley, Stephen Goldsmith and Caleb Esterline). We care about our bidders and consignors, so we won't sell your lots at 3 AM in the morning, or during convention hours when dealers need to be at their tables. We'll illustrate every major item, using boxes or color to highlight your material where appropriate. On Federal note consignments we won't charge you for lotting, or photos, and our commission rates are flexible and highly competi- tive. Immediate cash advances are available, and no one pays faster than R. M. Smythe & Company. Why do leading collectors and dealers choose us? They know there are simply no substitutes for years of experience, thorough, professional research, world-class auction catalogues and unquestioned integrity. Take advantage of the hottest paper money market in years, and take advantage of our comprehensive schedule that includes America's best paper money shows. We are accepting consignments NOW for the following auctions: January 18, 19, 1999. Stocks and Bonds. 12th Annual Strasburg Stock and Bond Show. Consignments accepted through December 7, 1998. February 19, 20 1999. Currency, Stocks and Bonds. The Chicago Paper Money Exposition. Chicago, Illinois. Consignments accepted through January 5, 1999. April 1999. Autographs. New York City. Accepting consignments now. June, 1999. Currency, Stocks and Bonds. The Memphis International Paper Money Show. Accepting consignments now. September 1999. Currency, Stocks and Bonds. The Fourth Annual Strasburg Paper Money Show. Strasburg, Pennsylvania. Accepting consignments through August 25, 1999. August 1999. Coins. The Blue Ridge Show. Dalton, Georgia. October 1999. Currency, Stocks and Bonds. The St. Louis National and World Paper Money Convention. St. Louis, Missouri. To find out how easy it is to consign your collection to any of the above auctions call Stephen Goldsmith. Douglas Ball, Lucien Birkler or Kevin Foley at 800-622-1880 or 943-1880. To check on the status of your subscription, ask for Marie Alberti. See Us At Over 40 Shows This Year! We are planning to attend almost every major numismatic event. SOCIETY OF PAPER MONEY COLLECTORS INC. lettot04. 4)14Pis Stephen Goldsmith MEMBER Kevin Foley members 26 Broadway, Suite 271, New York, NY 10004-1701 • e-mail: Toll Free: 800-622-1880 • NYS• 212-943-1880 • Fax: 212-908-4047 • SOCIETY OF PAPER MONEY COLLECTORS INC. PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors. Second 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., 1998. All rights reserved. Reproduction of any article, in whole or in part, without express written permission, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for $2.75 each plus $1 postage. Five or more copies are sent postage free. ADVERTISING RATES SPACE 1 TIME 3 TIMES 6 TIMES Outside Rack Cover $152 $420 $825 Inside Front 8; Rack Cover $145 $405 $798 Full Page $140 $395 $775 I lalf-page $75 $200 $390 Quarter-page $3S $105 5198 Eighth-page $20 $55 $105 To keep rates at a minimum, advertising must be prepaid in advance according to the above sched- ule. In exceptional cases where special artwork or extra typing are required, 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 1st of the month preceding issue (e.g., Feb. 1 for March/April issue). With advance notice, camera-ready copy will be ac- cepted up to three weeks later. Mechanical Requirements: Full page 42-57 pi- cas; half-page may be either vertical or horizon- tal in format. Single column width, 20 picas. I lalftones 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 advertisement in which typographical error should occur upon prompt notification of such error. All advertising copyand correspondence should be sent to the Editor. Paper Money Whole No. 198 Page 177 Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XXXVII No. 6 Whole No. 198 NOV/DEC 1998 ISSN 0031-1162 GENE HESSLER, Editor, P.O. Box 31144, Cincinnati, OH 45231 Manuscripts (mss), not under consideration elsewhere, and publications for review should be sent to the Editor. Accepted mss will he published as soon as possible: however, publication in a specific issue cannot he guaranteed. Opinions expressed by authors do not necessarily reflect those of the SPMC. Mss are to he typed on one side only, double -spaced with at least one - inch margins. A copy should be retained by the author. The author's name, address and telephone number should appear on the first page. In addition, although it is not required, you are encouraged to submit a copy on a 3 1/2 or 5 1/2 inch MS DOS disk, identified with the name and version of software used: Microsoft Word, Word Perfect or text (ASCII), etc. I f disk is submitted, double -spaced printout must accompany disk. IN THIS ISSUE A REVIEW OF THE WORK OF LEO C. KALI FFM NN Mark D. Tomasko 179 THE GREEN GOODS GAME Forrest W. Daniel 187 THE MERCHANTS NATIONAL BANK, BISMARCK, DAKOTA Forrest W. Daniel 188 18TH CENTURY STOCK CERTIFICATES AND THE AMERICAN COMPETITIVE EDGE Ned W. Downing 192 ABOUT TEXAS MOSTLY Frank Clark 195 THE FATI I ER OE TH E SAVINGS BANK Bob Cochran 196 THE BUCK STARTS HERE Gene Hessler 197 BANK HAPPENINGS Bob Cochran 198 NEW LITERATURE 199 CALL. FOR NOMINATIONS 199 CORRECTION FOR NO. 197 201 SOCIETY FEATURES THE PRESI DENT'S COLl ININ 200 AWARDS ATTHE 1998 PORTLAND ANA 200 NEW MEMBERS 201 MONEY MART 201 For change of address, inquiries concerning non-delivery of PAPER MONEY and for additional copies of this issue contact the Secretary; the address is on the nen page. ON THE COVER. The portrait of John F. Kennedy was engraved in 1961 by Leo C. Kau limann. See Mark D. Tomasko's review of the engraver's work. Page 178 Paper Money Whole No. 198 SOCIETY OF PAPER MONEY COLLECTORS COORDINATOR: 1929-1935 OVERPRINTED NATIONAL CURRENCY PROJECT FRANK BENNETT, P.O. Box 8722, Port St. Lucie, FL 34985 BOARD OF GOVERNORS RAPHAEL ELLENBOGEN, 1840 Harwitch Rd., tipper Arlington, OH 43221 GENE HESSLER, P.O. Box 31144, Cincinnati, 01 -1 45231 RON HORSTMAN, 5010 Timber Lane, Gerald, MO 63037 C. JOHN FERRERI, P.O. Box 33, Storrs, CT 06268 JUDITH MURPHY, P.O. Box 24056, Winston Salem, NC 27114 STEPHEN TAYLOR, 70 West View Avenue, Dover, DE 19901 WENDELL W. WOLKA, P.O. Box 569, Dublin, OH 43017 STEVEN K. WHITFIELD, 14092 W. 115th St., Olathe, KS 66062 OFFICERS PRESIDENT ROBERTCOCHRAN, P.O. Box 1085, Florissant, MO 63031 VICE-PRESIDENT FRANK CLARK, P.O. Box 117060, Carrollton, TX 75011 SECRETARY FRED L. REED, Ill—P.O. Box 793941, Dallas, TX 75379- 3941 TREASURER MARK ANDERSON, 335 Court St., Brooklyn, NY 11231 APPOINTEES EDITOR GENE HESSLER, P.O. Box 31144, Cincinnati, 011 45231 MEMBERSHIP DIRECTOR FRANK CLARK, P.O. Box 117060, Carrollton, TX 75011 WISMER BOOK PROJECT STEVEN K. WHITFIELD, 14092 W. 115th St., Olathe, KS 66062 LEGAL COUNSEL ROBERT I. GALIRTE, 3 Teal Lane, Essex, CT 06246 LIBRARIAN ROGER H. DURAND, P.O. Box 186, Rehoboth, MA02769 PAST-PRESIDENT DEAN OAKES, Drawer 1456, Iowa City, IA 52240 The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit or- ganization under the laws of the District of Columbia. It is affiliated with the American Numismatic Associa- tion. The annual meeting is held at the Memphis Il'MS in June. MEMBERSHIP—REGULAR and LIFE. 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 guardian. They will be preceded by the letter "j". This letter will be removed upon notifica- tion to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SMPC member or provide suitable references. DUES—Annual dues are $24. Members in Canada and Mexico should acid $5 to cover additional postage; members throughout the rest of the world add $10. Life membership, payable in installments within one year, is $500, $600 for Canada and Mexico, $700 elsewhere. Members who join the Society prior to Oct. 1st receive the magazines already issued in the year in which they join. Members who join after Oct. 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. BUYING and SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items 60-Page Catalog for $5.00 Refundable With Order HUGH SHULL ANA-LM SCNA PCDA CHARTER MBR. P.O. Box 761, Camden, SC 29020 (803) 432-8500 FAX 803-432-9958 SPMC-LM 6 BRNA FUN AN INDEX TO PAPER MONEY VOLUME 37, 1998 Nos. 193-198 Bennett, Frank No. Page On the waterfront, Red Hook, Brooklyn, and its No. Page National bank notes Series 1929, supplement building company, illus. 197 156 XXI, illus. 197 158 So it was from New York City after all, illus. ... 194 67 Bolin, Benny Were there two Hudson River banks in New Civil war blockade leads to a currency variety • • 194 52 York City?, illus. 195 101 Clark, Frank Grant, Dave About Texas Mostly, illus. A survey of the Bank of Latvia notes during the Farmers & Planters Bank, Pilot Point, Texas 197 163 1920s, illus. 193 7 My Columbian Exposition ticket variety, illus. 198 195 Hessler, Gene A second look at warrant no. 1, illus. 197 154 S. Louis Moore 193 23 The buck starts here 193 24 The Merchants and Planters National Bank of 194 69 Sherman, Texas 196 123 195 100 The national banks in Grapevine, Texas 195 99 196 131 The national banks in McKinney, Texas 194 59 197 164 Cochran, Bob 198 197 Bank happenings 194 67 Hickman, John 198 198 Reflections of 197 154 Corrections to "none outstanding all Huntoon, Peter redeemed" 193 21 The paper column, illus. Syngraphic trivia, illus. 197 151 Do people look at you strangely?, illus. 193 18 The father of the savings bank 198 196 Engraved charter number error, $10 series of The good ol' days 193 22 1902, Smyrna, Delaware, illus. 196 122 Underwood's counterfeit detecor excerpts 194 68 Inartistic, inferior and excessively plain $5 CONFEDERATE Series of 1882 brown back, illus 194 54 The CT-9 Confederate counterfeit: a mystery The elusive Y and Z plate letters on national solved, illus. George B. Tremmel 193 13 bank notes, illus. 195 90 Daniel, Forrest W. Hussein, Mohamad H. A numismatic carrier's address, illus. 196 115 World paper money depicting trees, illus. 194 47 Green good game 194 60 Kelly, Don C. 196 130 What the deuce!, illus. 193 25 198 187 Kvederas, Bob, Sr. & Jr. Money tales 193 19 Varieties of Series 1995 $1 web notes, illus. 195 88 197 153 194 61 Post check notes, illus. 194 43 Lavond, Kevin The Merchants National Bank, Bismarck, John Davenport and his merchant scrip, illus. 193 3 Dakota, illus. 198 188 McNabb, Larry D. Dean, Charles Terre Haute, Alton & St. Louis Railroad bearer What the deuce!, illus. 193 25 notes, illus. 193 15 194 61 Mueller, Barbara R. Downing, Ned American capital markets premier, a review, (illus. in No. 196) 195 98 Sweden uses bank note motif for stamp design, illus. NEW LITERATURE 197 150 18th century stock certificates and the American Confederate States paper money by Arlie R. competitive edge, illus. 198 192 Slabaugh 198 199 ENGRAVERS & ENGRAVING Indian paper money since 1950 by K. A review of the work of Leo C. Kauffmann, illus. Jhunjhuwalla 196 123 Mark D. Tomasko 198 179 Illegal tender by D.R. Johnson 198 199 Fisher, Jack H. The Alexander Hamilton web fed press by B. Plymouth, Michigan note, a pilgrim connection, illus. 197 152 Kvederas Jr. & Sr. OBSOLETE NOTES & SCRIP 198 199 Gardner, Tom G.B. DeBernardi and the Labor Exchange A bridge to the past 195 86 movement, illus. Steve Whitfield 197 147 Goldberg, Stephen M. Correction for No. 197 198 201 John Davenport and his merchant scrip, illus. Kevin Lafond 193 3 On the waterfront, Red Hook, Brooklyn, and No. Page The bank robbery at Liberty, illus. Steve No. Page its building company, illus. Stephen M. Whitfield 195 83 Goldberg 197 156 U.S. NATIONAL BANK NOTES So it was from New York City after all, illus. "Army bank here robbed this evening," illus. Stephen M. Goldberg 194 67 Steve Whitfield 194 56 Syngraphic trivia, illus. Bob Cochran 197 151 Glassport, Pennsylvania discovery, illus. Eric Terre Haute, Alton & St. Louis Railroad bearer Vicker 193 20 notes, illus. Larry D. McNabb 193 15 See The Paper Column, Peter Huntoon The bank robbery at Liberty, illus. Steve See About Texas Mostly, Frank Clark Whitfield 195 83 Syngraphic trivia, illus. Bob Cochran 197 151 Were there two Hudson River banks in New York City?, illus. Stephen M. Goldberg 195 101 The Merchants National Bank, Bismarck, Dakota, illus. Forrest W. Daniel 198 188 Schafluetzel, Dennis What the deuce!, illus. Charles A. Dean and Greely, Colorado banking history, illus. 196 124 Don C. Kelly 193 25 SOCIETY OF PAPER MONEY COLLECTORS U.S. SMALL-SIZE NOTESAnnual financial statement 193 30 Do people look at you strangely?, illus. PeterIn memoriam Charles Colver 194 71 Huntoon 193 18 President's column 193 30 Varieties of Series 1995 $1 web notes, illus. 194 71 Bob Kvederas, Sr. & Jr. 195 88 195 102 National bank notes Series 1929, supplement 196 132 XXI, illus. Frank Bennett 197 158 197 165 Vicker, Eric Publication fund contributors 195 102 Glassport, Pennsylvania discovery, illus. 193 20 STOCK CERTIFICATES & BONDS Whitfield, Steve American capital markets premier, a review, (illus. in No. 196) Ned W. Downing 195 98 "Army bank here robbed this evening," illus. G.B. DeBernardi and the Labor Exchange 194 56 18th century stock certificates and the American Movement, illus. 197 147 competitive edge, illus. Ned W. Downing ... 198 192 The bank robbery at Liberty, illus. 195 83 Tomasko, Mark D. WORLD PAPER MONEY A review of the work of Leo C. Kauffmann, illus. 198 179 A survey of the Bank of Latvia notes during the Tremmel, George B. 1920s, illus. Dave Grant 193 3 The CT-9 Confederate counterfeit: a mystery solved 193 13 Sweden uses bank note motif for stamp design, illus. Barbara R. Mueller 197 150 U.S. LARGE-SIZE NOTES World paper money depicting trees, illus. Oklahoma banking tidbits 194 70 Mohamad Fl. Hussein 194 47 " 1" ATTENTION iff AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 Fig. 1. Paper Money Whole No. 198 Page 179 A Review of the Work of PE() C. Xattff172,0)2,12 by MARK FT TOMASKO© Leo Kauffmann's career as a picture engraver was one of the most unusual in the twentieth century. He is the only engraver who started at the Bureau of Engraving and Printing and twice left the Bureau to go to the American Bank Note Company. Why is this unusual? Because up to the 1950s and 1960s American Bank Note was the place for a picture engraver to work, and ABN had a strong preference for training their picture en- gravers from the beginning of their apprenticeships. In the 1930s and 1940s, leading Bureau engravers such as Charles Brooks and Carl Arlt repeatedly applied for positions at American Bank Note. LO Kauff-mann's career started at the Bureau of En- graving and Printing as a plate cleaner in October 1916. He was accepted as an apprentice engraver in October 1918. Several pieces of work give evidence to the impressive start Leo Kauffmann made in picture engraving. The first, finished in February 1919, is a copy he made of a nineteenth century etching, Braubach on the Rhine (Fig. 1). It demonstrates that Leo Kauffmann had certainly mastered some good etch- ing techniques. Several years later, in 1922, Kauffmann en- graved the head of a 1920s theater girl (Fig. 2), one Harriet Hammond (photo is Fig. 3) of the Mack Sennett Comedies troupe. The line work is a bit unusual in the flesh in the upper part of the face; it is very effective. The portrait appears never to have been used. In 1924 Leo Kauffmann did a reduction of that portrait for a Philippine Islands bond coupon (Fig. 4). L WILL PAY TO BEARER ON Al U N (TE STATES TREASURY DEPARTMENT,WASHiNGTON, BEING SIX MONTHS INTERESTTHEN DUE 2 5.0 0ON 31000 PHILIPPINE ISLANDS 5°7oGOLD LOAN OF 1925 0935-1955) Page 180 Paper Money Whole No. 198 Bureau records show that Kauffmann played a role in engrav- ing the portraits on three definitive stamps of the 1922-1925 series: with L.S. Schofield, the 4-cent Martha Washington (Fig. 5); with John Eissler, the 9-cent Thomas Jefferson and, with L.S. Schofield again, the $2 U.S. Capitol. No information exists as to how Leo Kauffmann was able to move to American Bank Note in 1926. My theory is that it relates to G.F.C. ("Fred") Smillie and Marcus Baldwin. In this era American Bank Note had the finest group of picture en- gravers in the world, with Robert Savage, Edwin Gunn, Will- iam Adolph, Elie Loizeaux, Joseph Keller and Warren I lauck. In 1920 Marcus Baldwin retired from the Bureau and started working for American Bank Note, invited to return there by his old friend Robert Savage, who actually started his engrav- ing career with Baldwin & Gleason in 1885. And two years later, Fred Smillie retired as head of the Bureau's Engraving Department and also returned to American (which he had left in 1891). In all likelihood one of these two men, prob- ably Fred Smillie, told Robert Savage about the very talented Leo Kauffmann. And with the boom in securities issues in the 1920s, along with a robust world economy which was pro- ducing many bank note orders from China and Latin America, there was much work needed from America's picture-engraving room. Leo Kauffmann's work at American dur- ing the next eight years comprised prima- rily a series of beautiful miniature female heads for bond coupons, and some reduc- tions of vignettes. When he moved to American he probably extended his ap- prenticeship because American had its own distinctive training program. It is likely that he trained under Robert Savage, the head of the Picture Engraving Depart- ment until the mid- to-late 1920s. (Savage then relinquished the position to Edwin Gunn but continued to engrave to the end of his life in 1943. Savage was the "Dean " of the department and profession as long as he lived.) Fig. 6 illustrates one of Kauffmann's first coupon heads. Shown is the artwork source, a statue of Perseo di Canova (in the Vatican Museum), Kauffmann's engraving (the technique here is heavily vertical lines in the medallion rul- ing mode), and the portrait used on a Hous- ton Gulf Gas Company coupon. Figs. 7 and 8 illustrate two other coupon portraits done by Kauffmann in January and February 1930. Fig. 8 is from artwork by Alonzo Earl Foringer (1877-1948), the great vignette artist used by American Bank Note from 1915 to 1948. Young engravers frequently did "reduc- tions" of vignettes, i.e., re-engraving a vi- gnette in a smaller-size; the portrait in Fig. 8 is a reduction of a much larger engraving by Robert Savage. A good example of a reduction of a full vignette (original also by Robert Savage) is Secret D'Arnour No. 2, done by Leo Kauffmann in October 1933 (Fig. 9). The etching (background) and "cutting" (fleshwork and drapery) are both equally effective. The Great Depression obviously caused a major loss of busi- ness at American Bank Note. The firm tried to avoid laying off picture engravers, as they were considered ABN's most impor- tant anti-counterfeiting defense, and training a good picture engraver took years. In the first major lay-off of March 1932, no picture engravers were involved. But on July 12,1934, as business continued to contract, four of the younger men were Fig. 4. Fig. 2. Fig. 3. Fig. 5. Paper Money Whole No. 198 181 laid off: Charles Chalmers, Leo Kauffmann, Anthony Kitz, and Wesley Jerndal. It is not known precisely what Leo Kauffmann did in 1934 and 1935, though one fellow engraver remembers something about his working for a die-stamping firm in Baltimore and another thought he did some free-lance work for Quayle, a minor bank note company. Within a year, however, Leo Kauffmann was back where he started, with the Bureau of Engraving and Printing in Wash- ington. His proficiency with small portraits, developed first at the Bureau on stamps and later at American Bank Note for bond coupons, would be used again to great effect on United States postage and revenue stamps. The first stamp he did after his return, in October 1935, was the Michigan Centenary (Fig. 10 contains most of the stamps referred to here). It is primarily a state seal with flags on either side. Thereafter, except for some scenes for Canal Zone stamps, his stamp work was portraiture. A fuller review of „•son MCMPAITIMMEIRIONETC.ii..... ALL If ECNCALUO fORMICVIOUSIMEMPTIONMO PAYMENTOUL,ROVIOLD rOlid ■1111121111_,MENZLILIP OAS P7,-- —PI WILL PAY TO BEARER ATTHE PRINCIPAL OFFICE OF CHATHAM PHENIX NATIONAL BANK AND TRUST COMPANY. OP ITS SUCCESSOR.AS TRUSTEE. IN THE BOROUGH OF MANHATTAN,THE CITY OF NEW YORK. 111- 16-11111RUTIV IEânU.ILLASIRES IN GOLD COIN OF THE UNITED ) STATES OFAMER ICA OFTHE STANDARD OF WEIGHT AN D ' FINENESS EXISTING APRIL 1.192 . 8,WITFIOUT DEDUCTION FOP 44THAT PORTION OFANY NORMAL FEDERALINCONETAX NOT EXCEEDING TWO PER CENT.(2%) PER ANNUM.BEING SIX MONTHS'INTERESTTHEN DUEONITS FIRST MORTGAGE AND NOM COLL ATERALGY.GOLDBOHOS CRIES A. • DUE APRIL 1.1943. TREASURER. Fig. 6. 0"."1".11 1 WILL PAY TO a EAR ERATTHE PRINCIPAL Li,: OFFICE OF THE CHASE NATIONAL BANK OFTHE CITY OF NEW YORK.OR ITS SUCCESSOR IN TRUSTIN THE BOROUGH OF MANHATTAN.CITYAND STATE OF NEW YORK.ORATTHE OPTION OFTHE HOLDER.ATTHE OFFICE OR AGENCY OFTHE CORPORATIOKIN THE CITY OF CHICAGO,STATE OF ILLINOIS.UPON SURRENDER OF THIS COUPON.FS IFTIEIEN IT3OILIL."1125 IN GOLD COIN OFTHE UNITED STATES OF AMERICAIWITHOUT DEDUCTION FOR FEDERAL INCOME TAXES NOTIN EXCESS OF 0% PER ANNUM AS PROVIDED IN SAID OEBENTURELSEING SIX MONTHS INTEREST THEN DUE ON ITS TEN- YEAR G°,5 CONVERTIBLE GOLD Non DEBENTURE,DUC APRIL1,1940.11. LY rue,luRew Fig. 7. ON THE FIRST ion, or ViAVV0WRIED7411 ,17.7=aii-MatV(Itig;trro LMA'. ANADIUM CORPORATION OFAMIEIRICA WILL PAY TO BEARER AT THE OFFICE OF LEE, HIGGINSON a COmPANY.pAYINGAGENTOF SAID CORPORATION,OR or THEIR SUCCESSORS,IN THE BOROUGH OF MANHATTAN.THE CITYOF New YORK,OR.ATTHE OPTION OFTHE BEARER.AT THE OFFICEOF SAID PAYING AGENTOR OF TNEIR SUCCESSORS,IN THE CITYOFBOSTOKHASSACHUSETTS. OR IN THE Cils- OFCHICAGo,ILLI HOIS,TLVELVE AND 00/■00 0011-4175, IN GOLD COIN OF THE UNITEO STATES OFAMERICAIWITHOLITDEOuCTION FORANyNORNALFEDERALINCOMETAX NOT EXCEEDINGTwo PERcENT. OF SUCHAPIOUNTLBEINGSIX MONTHS' INTEREST THEN PAYABLE ON YTS TEN-YEAR 544e CONVERTIBLE SINNING FUND awn GOLD DEBENTUREALIEAPRILI.19 41 . 111 . S. TREASURER. 30 UMSSINEOCII01111.1f111(1..■ fflt1011/(11.1:41b 2n7tjetrrtZtrF:17r1.,Tit'OrrIPII40?1 ft; NI DU GENERAL THEATRES EQUIPMENT INC. PA KT LY PROVIO n FO R 0 ,1.1411.11 [BEEN COAV.I1711 O S C0 IWIOIS AS TNEREINPROVTOLD. 1S scrzaoi Cry t.f.P Fig. 8. Page 182 Paper Money Whole No. 198 Fig. 9. p••■•■••-■ -••••••■•-■nor■-••■••"1,11, ,Ir■Tinirlilnlig UNITED' UNITEOSTATES POSTA, DOTED ISTATESPOSTAGE— --, 41110116;:trz, 17 CENTS 17 1••■■ALILLIAAAL•11.1611 Fig. 10. Kauffmann's engravings for stamps will have to wait for some future time in a more appropriate venue, but I will illustrate some representative pieces. The 1-cent Navy series stamp done in Dec. 1936 has both portraits (Jones and Barry) by Kauffmann, with the etched center by Carl Arlt. Both of the portraits on the 3-cent Navy stamp, Farragut and Porter, were done by Kauffmann in Feb. 1937, with the etching again by Carl Arlt. Kauffmann can claim the unusual distinction of having twice engraved Martha Washington on U.S. stamps, once for the 4- cent in 1922 (see Fig. 5) and again in May of 1938 for the 1'/2- cent being done from statuary and using primarily a medallion-ruling approach. He did five other stamps in the Presidental series, the 4-cent James Madison (not illustrated), the 11-cent James Polk, the 14-cent Franklin Pierce (not illus- trated), the I 7-cent Andrew Johnson and the $1 Woodrow Wilson (not illustrated). While Leo Kauffmann did some fine etching work for Ca- nal Zone stamps and some portraits for U.S. revenue stamps, the last several examples I will illustrate here are two of five portraits Kauffmann did for the Famous American series of 1940. Fig. 10 also shows his 1-cent Washington Irving (one of the stronger portraits in the set) and the 2-cent Mark Hopkins. By letter dated August 16, 1942, Kauffmann was inquiring of American Bank Note whether they would ". . at this time consider engaging my services as a picture engraver." He also says in the letter that "I know you are familiar with the charac- ter of my work, but I have engraved some portraits and vi- gnettes recently which I would like you to see." The inquiry at this time was not coincidental, as Kauffmann undoubtedly kept up with his friends at ABN and knew that the depart- ment had suffered some significant losses; Edwin Gunn died in 1940 and Sidney Smith and Wesley Jerndal (who was laid off with Kauffmann in 1934 but subsequently rehired) both died untimely deaths in 1942. Both Gunn and Smith were fine portrait men, so Kauffmann's expertise in portraits was particularly valuable for the booming bank note, stamp and securities work during the war. The fact that Kauffmann had received much of his training at American Bank Note was prob- ably a significant factor, along with the prestige of working for the best organization in the business. However, as he once told a fellow engraver, another factor was that the work at American was more varied, with hank note, stamp, and stock certificate work, as opposed to the Bureau, where the work was primarily stamps. Kauffmann visited the Bronx plant of ABN on September 11, 1942 to discuss the possibility of re- turning and the discussions were obviously successful as he started work on November 2, 1942. Leo Kauffmann's first job upon returning to ABN was a por- trait of Doctor Jose Maria Castro Madriz for a Costa Rican 100 Colones note. Fig. 11 shows the original photo, a good illus- tration of the challenge an engraver can have with a portrait: there is virtually no detail in the flesh of the face. While Kauffmann handled this nicely, as illustrated in Fig. 12, (the portrait on a proof of the note), the portrait is relatively bland because of the poor artwork. Another early bank note job was the figure on the back of the Brazilian 10 Cruzeiros note of 1943. The artwork is a draw- ing by Alonzo E. Foringer. Fig. 13 illustrates the engraving, for which Harold Osborn did the etching (background) and Leo Kauffmann did the figure. Soon thereafter, in late 1944, Leo Kauffmann did the bank note vignette that ranks as one of his best, namely, the back of the Turkish 1000 Lira note of the mid-1940s. Fig. 14 shows a progressive proof of Oct. 31, 1944, and the final vignette, V-85766. The finished note may be seen in Fig. 15; it appears that the design was changed after the vignette was engraved because the bottom of the scene in Fig. 14 precisely fits the special scroll work while the top is quite different. The Pick bank note catalog calls the scene "military buglers," but they are actually Boy Scouts, according to Kauffmann's notes. Leo Kauffmann's talents in the stamp area were not ignored by ABN; he did a number of portraits for foreign stamps, though I will illustrate only one here. Fig. 16, a Chinese stamp of 1945 commemorating the 1943 Treaty between Great Britain, China, and the U.S., carries a portrait of Chiang Kai- shek by Kauffmann. He also did the three flags (which he origi- nally engraved in a larger-size; they were then reduced and done in color lithography for the stamp). Ibr Mr lr • 4 • Paper Money Whole No. 198 Page 183 Fig. 11. Fig. 12. Fig. 14. Fig. 15. NMI CAN MANI. N. Fig. 13. ESTADOS =MOS DO BRASIL ..11,14/11.AN IWO< MITI. Fig. 17. Fig. 20. Fig. 21. After Foringer's passing in 1948 American Bank Note struggled to find a vignette artist to provide new "stock" (non- Fig. 19. special) vignettes. One artist they tried was Jean Van Noten, a Page 184 Paper Money Whole No. 198 41 iliLILALA.41k.iALAL-I 11,4■-• .• .• • • .• * * IL • -* * & Fig. 16 (150%). In 1947 Kauffmann engraved the scene for the back of a Guatamalan 20 Quetzal note, Firma Del Acta de la Independencia (Fig. 17). Engraving scenes of this size with numerous figures was an unusual job for picture engravers and this was the kind of variety that made working for American Bank Note appeal- ing. The detail in the faces is outstanding, and worth a look with a glass if you have an original of the note. Leo Kauffmann returned to American Bank Note in time to do some vignettes from artwork by A.E. Foringer, who died in 1948. While not as striking as Foringer's earlier work, they were still attractive art. Besides the Brazilian bank note back in Fig. 13, several others Kauffmann did are Steam and Hydroelectric Pottier vignette (October 1948) (Fig. 18), and finished in Sep- tember 1950, is Science, Industry and Commerce (Fig. 19). Fig. 22. ;F Si Paper Money Whole No. 198 Page 185 Belgian stamp designer. Leo Kauffmann engraved an aviation vignette by Van Noten (Fig. 20) that has an Icarus-like figure amid geese and jet planes. No airplane manufacturer or air- line was sufficiently intrigued with the vignette to use it on their stock certificate. But the combination of the geese, Icarus, and jet planes makes it one of my favorite amusing vignettes. Somewhat more useful to ABN was the Commerce and In- dust?) , vignette by Van Noten that Kauffmann engraved in 1954 (Fig. 21). The female figure is actually quite attractive, unlike some of Van Noten's work, and that may account for the fact that Kauffmann could note in 1960 that "It is the only Van Noten that has been used so far." In January 1958 Leo Kauffmann completed an unusual vi- gnette for the Consolidated Cigar Corporation stock certificate (Fig. 22). In this artwork by Orison MacPherson the man's arm appears to be coming out of his chest. However, the position- ing could be "anatomically cor- rect" and simply awkward looking because of the amount of the torso shown. In 1958 a number of ABN's younger picture engravers were occupied doing portraits of American presidents to complete the pages in ABN's upcoming cen- Fig. 23. tennial history published that year. Ed. Cranz engraved Franklin Roosevelt, Ken Guy did Eisenhower, and John Wallace engraved Truman. I lerbert Hoover, though, was given to the more experienced Leo Kauffmann (Fig. 23). Fig. 24. Another MacPherson drawing for a special vignette was more successful than the Consolidated Cigar job. Kauffmann en- graved King Kamehameha I for the Hawaiian Electric Co. (Fig. 24). (The artwork is seen in Fig. 25). It is one of Kauffmann's better pieces and, besides being used on the stock certificate, it also appeared in the ABN Annual Report for 1965. As Leo Kauffmann was approaching retirement in the early 1960s he did a very attractive etching job, the Washington Arch in Washington Square, Greenwich Village, New York City (Fig. 26). It was done for an ABN Christmas card and was finished in July 1961. (The 1976 ABN Annual Report carries Page 186 Paper Money Whole No. 198 Fig. 25. AL4Zre1A.,..../.4reeri• Fig. 26. Fig. 27. this engraving, along with other New York buildings, on its cover.) In 1961 there was another "out of the ordinary" job for Kauffmann. Fig. 27 illustrates his portrait of John F. Kennedy, done from the Bachrach photo. For some unex- plained reason, this portrait was not approved until Novem- ber 1972. Fig. 28. Fig. 29. Fig. 30. In February 1963 Kauffmann was asked to do an unusual "makeover" of a Foringer vignette originally engraved by Rob- ert Savage in 1927. The original vignette is Fig. 28, the "laydown" (a new die made from a roll with all unwanted parts of the vignette removed) is Fig. 29, and the final vignette, for Comsat Corp. (the communications satellite firm) is Fig. 30. It is one of the more unusual redesign efforts of a vignette and was done by Fred Buckes, an in-house designer at Ameri- can. Leo Kauffmann's last vignette for American Bank Note, finished in March 1964, is "Crossman No. 6," a vignette that saw considerable use (Fig. 31). Crosman did only a small num- ber of drawings for American, but they were never quite suc- cessful. At this point, however, American Bank Note had finally found Robert Lavin, who turned out to be the best vignette artist for ABN since A.E. Foringer. Fig. 31. Fig. 32. The Green Goods Game Conducted by Forrest Daniel Paper Money Whole No. 198 Page 187 This review of Leo Kauffmann's work ends with an engrav- ing he did early in his career that indicates his eye for art and his talent in engraving: Fig. 32, the Sphinx and the Chimera, in the Museum of Fine Arts, Boston, is a great engraving of a great subject. Leo Kauffman') retired in 1964 but did not have many years to enjoy his retirement as he passed away in 1970. He had a remarkable career in security engraving. Probably the only engraver to twice move from the Bureau of Engraving and Print- ing to American Bank Note, he had the opportunity to do not only a number of U.S. stamps but also a wide variety of por- traits and vignettes for foreign bank notes and stamps. And, as the bank note work at American diminished in the 1950s and 60s, he did some fine securities vignettes. Both the Bu- reau and American Bank Note can be proud of Leo Kauffmann's work and career. Sources for this article include information and items in the author's collection, conversations with Leo Kauffmann's descendants and his former colleagues Ken Guy and John Wallace, A. Pick's Standard Cata- log of World Paper Money, and G. Hessler's The Engraver's Line. All illus- trations are from the author's collection. RUN IN AS A COUNTERFEITER "Well, this is something like [it]," said John Henry Gudemann, as he pocketed his week's wages in the shape of five crisp new silver dollar certificates with the portrait of Gen. Grant on the face, indicating that they were good for $5 in silver coin, says the New York World. "I like new bills because you have no trouble with them. Everybody knows them and there is no kick." Then John Henry drifted into an east side saloon and took a beer or two to "wet" his roll before he took it home to his wife and babies. 1-le tossed one of the bills on the bar with a careless, "got-plenty-just-like-it" air and waited for his change. The barkeeper picked up the money gingerly, eyed it suspi- ciously, turned it over excitedly, held it off loathingly, and said disdainfully: "See here! Dis don't go! It's queer! Did you tink 1 was come on to be fooled wid such stuff as dat?" "Come off," said Mr. Gudemann. "That money's all right." "Money? Dat ain't money. Dat's green goods," persisted the barkeeper. The conversation was beginning to wax warm when the bar- keeper rushed to the door and summoned a passing cop. The offending bill was passed to him for inspection and, after eye- ing it at long and close range, he solemnly pronounced it bogus. "Guess I'll have to run you in," he said. "You must take us for oysters down here." fifteen minutes later John 1-leery Gudemann was facing a hawk-eyed sergeant in the Eldridge street station house. The latter took one look at the bill and said that the counterfeit was so poor that he wondered that a man had the cheek to attempt to pass it in New York. He told John Henry Gudemann that he was good for 15 years at least, and ordered him sent below with great severity. A search of the prisoner's clothes brought to light four more notes which had evidently just been tossed off from the same counterfeiting plates. Next morning the prisoner was arraigned in the Essex Mar- ket court, and the magistrate scarcely looked at the bills, so evident was their bogus character. "Young man," he said, se- verely, "don't you know that you are engaged in mighty dan- gerous business? The government of the United States will have to attend to your case and it never lets up when it is after counterfeit money." Then John Henry got mad. "See here," he yelled, "I'll bet my week's salary that that money ain't counterfeit. You're a pack of 'blumgagoes,' that's what you are. I got it from one of the best firms in this town, goshblame-it-all!" The magistrate looked a little startled at this outbrust, and being a magistrate of good sense sent a messenger with the offending bill to the nearest bank with instructions to find out how much of a counterfeit it was, anyway. The answer came back: "Good as gold." Then John Henry went home, leaving a trail of profanity behind him and the sickest lot of policemen that ever at- tempted to pose as ready counterfeit detectors.—Butte (Mont.) Miner, Sep. 27, 1896. OHN A. McLean, president of the Merchants National Bank, was born in 1849 at I lighbank, Prince Edward Island. He attended Prince of Wales College and taught school for a year. In the United States he entered business, and when the Northern Pacific Railroad began construction from Duluth, Minnesota to Puget Sound, McLean was a con- tractor who supplied railroad ties and other construction ma- terial for the westbound track. He arrived along with the railroad in Bismarck, a new town in 1873. Bankruptcy that year forced the Northern Pacific to discon- tinue further westward construction until 1879. In Bismarck, McLean entered the mercantile and contracting business with Robert Macnider, a merchant who in 1872, with a train of ten ox teams and wagons loaded with merchandise and inten- tions to establish a store at Bismarck, stopped at Jamestown where the army had just established Fort Seward to protect the Northern Pacific railroad survey parties. Macnider unloaded his wares and set up a successful store which served the rail- road construction crews and the army, as well as the usual mixture of settlers and frontier rowdies, until the track was laid the next year and he could continue on to Bismarck. The McLean & Macnider firm supplied goods to the Missouri River steamboat trade as well as the overland freighters that served the gold miners in the Black Hills. Macnider was a director of the bank. McLean became active in civic affairs and was the first elected mayor of Bismarck; he successfully negotiated the rights of J Page 188 Paper Money Whole No. 198 cf,,'/rout,-,2iPed Junk : THE MERCHANTS NATIONAL BANK, ismarck, akota by FORREST W. DANIEL. Can a national bank with an existence of only six months have a career worthy of study? Certainly. There was a hint of scalawaggery and incompetence from an Eastern investor, but it was a disastrous slump in the region's economy that was the major cause for the failure of the Merchants National Bank, Bismarck, Dakota Territory. Basically, a group of small-town businessmen believed they could become bankers and learned the hard way that they could not. This is the story of a very troubled bank. What is known of the non-bank- ing career of its president, however, adds some color to the bank's story; but the bank was such a passing phase in his career it was not even men- tioned in his obituary. John A. McLean, president, Merchants National Bank. (Cour- tesy State Historical Society of North Dakota.) the squatter occupants on, and several claimants to, the city's original townsite. It is altogether possible that McLean & Macnider were outfitters for the Custer expedition to the Black I lills in 1874 which confirmed that gold was present there. The following year the extent of the gold find was firmly es- tablished and in January 1876 John Mcl,ean and Colonel Clement A. Lounsberry, editor of the Bismarck Tribune, took samples of Black Hills gold to Washington. They displayed the gold to President Grant, Secretary of War Belknap and both houses of Congress. As a result President Grant opened the Black Hills to gold miners and their routes to the hills through Indian lands. On their way to Washington McLean and Lounsberry made arrangements with railroad companies to route freight billed to the Black Hills via Bismarck; and on their return a stage coach and freight line connecting Bismarck and the Black Hills was established. When Lt. Col. George A. Custer's ill-fated campaign into Montana left Fort Abraham Lincoln in May 1876, McLean & Macnider held the contract to furnish civilian teams and wag- ons to carry supplies for the expedition; and when forts were established on the Yellowstone River they supplied hay and wood for the posts. In 1883 McLean County was named for John A. McLean. Paper Money Whole No. 198 Page 189 Bismarck already had three national banks and a Mellon Brothers private bank when, on January 11, 1883, five Bis- marck businessmen applied for permission to organinze a national bank with a capitalization of $65,000. Richard F. Pettigrew, territorial delegate, supplied his required Congres- sional signature. By the time the Articles of Association and Organization Certificate for the Merchants National Bank were filed in June 1883 an infusion of capital credited to investors from Jefferson, Wisconsin raised the proposed capital to $100,000. A new territorial capitol was being built in Bismarck and times were prosperous. The new bank was planned to serve an actively growing economy. It was unknown at the time, but 1883 was the peak of the Great Dakota Boom (1873- 1886). Bismarck was doomed eventually to lose five banks; real estate values fell sharply and merchants fought for cus- tomers. One of the first victims of the economic stagnation was the Merchants National Bank. The boom was still apparent, though, on March 24, 1884, when a booster issue of the Bismarck Tribune announced the opening of the Merchants National Bank and published a drawing of its elaborate new quarters. The three-floor brick building was steam heated and the interior of the bank was finished in cherry wood. The ceiling was white with frescoed ornaments above the chandeliers. The building was as fire proof as possible and the vault contained a 7,600-pound Diebold safe with a Crane hinge which swung on the center of the hinge. The edifice also held a number of stores, and office suites were for rent. The bank's opening was planned for April 1st, according to the Tribune. Merchants National Bank Building, Bismarck. There was a delay in the decoration so the Merchants Na- tional was to open on the 10th. The anticipated opening date appears to have been hopeful speculation since the date on the bank's specimen notes is April 28, 1884. The bank finally opened its doors May 1 with Cashier Edward McMahon, a major stockholder and former banker in Jefferson, Wiscon- sin, in charge. Officers in addition to McLean and McMahon were John Mallanney, vice president; W. D. McMahon, book- keeper; and directors John A. McLean; John Mallanney, real estate and loans; E. McMahon; John E. Garland, lawyer; Rob- ert Macnider, wholesale grocer; Frederick W. Smith, partner in a wholesale grocery, a coffee and spice mill, and secretary-trea- surer of Bismarck Artificial Stone Co.; and H. Hersey, physi- cian. In addition to Cashier McMahon there were five other stockholders from Jefferson and two from Watertown, Wis- consin. The announced cash capital of $100,000 actually reached only $73,000, and that not until September. In June the board of directors had applied to the comptroller of the currency to reduce its capital to $75,000 because the dull times and scarcity of money made it impossible for subscribers to meet the in- stallments on their stock. The board felt reducing the capital would be less injurious to the bank than a forced sale of delin- quent shares. The comptroller replied that the full amount of $100,000 must be paid in full in regular monthly installments. An examination on June 23 showed the bank had only $61,100 of stock paid and $43,550.19 of its assets was repre- sented by the new building, furniture and fixtures. The comp- troller said there was no reason for a bank to invest so much of its initial capital in property; he ordered the building to be sold, suggesting that capitalist stockholders might purchase it and rent it back to the bank. He said in order to complete the organization of the bank the entire $100,000 must be paid up and "the banking house got rid of in some way." Cashier McMahon replied that notice would be served on delinquent stockholders that all payments must be made cur- rent; he expected there would be only two or three who could not produce the cash. He told the comptroller that when the stock was subscribed the investors from Bismarck felt rich but now it was very difficult for them to raise any money. I le felt the cost of the building was comparable to others in the terri- tory, office rentals adequate, and that there was no market for the building, times being what they were. McMahon admit- ted the south half of the building was being built by private parties (with bank money, according to a critic) and said $11,000 would be deducted from the bank's building asset value. A city lot with the part of the building standing thereon was sold to investors in Wisconsin for $8,000. McLean and McMahon gave them a one-year note, intending to redeem the building. They did not; the lot and the debris from the fire that destroyed the building in 1898 were sold to a Bismarck merchant. On July 14 the board of directors passed a resolution to sell the shares of delinquent stockholders and public notice of the sale was published in August. Saml. H. Thompson, a major stockholder in Baltimore, (his address was Bismarck on the stockholder list) protested that the sale of delinquent stock would not save the bank, and that it would produce even greater losses when the bank even- tually was placed in receivership. He called on the comptrol- ler to demand that the Merchants National Bank be placed in voluntary liquidation. In addition to the delinquency of the leading stockholders, some $6,000 of the original stock had ..-01.141.41 f littlfaf Oat ii)111LtiVe r:4:10 • )itlitC11.t Ts GLYiLtaaaLlia4 iiiiti,;10 t l't" Ii PTV!! ig) 49) L.Alit 11114 t \to y 0 01:201411;02:034.3043,0=0*.30=0 . : isga ipmet"ir I UN TED STATES 11,.• joULS, 't (l5 Ill ti IT OW 11* DO 40.0* ' • FiatoAmozzamltommemmo=0TAilif)=.0 t_ 4=rxikz ,174.- "legiar<=00141.*ICfr ORIVIZEMD.n., NIALIKIIJJA:PN NATIONAL BANK lirkW WORMY 0,, . , 1 , .0404)211Z0LatialitA0 1■■ Cmptell, ION All AINI .St WM! Wet CAE V 1 • 4 1 1 .1 4 1 1:4 0.*`‘' .:> v03;,,>0 ea r Page 190 Paper Money Whole No. 198 Specimen Sheet of $5 notes, Merchants National Bank, Bismarck, Territory of Dakota. (Courtesy of Smithsonian Institution.) Paper Money Whole No. 198 Page 191 not and would not be subscribed; there was no way the bank could be saved, and since there was little money in Bismarck, Thompson predicted the other banks would have to consoli- date in order to survive. Thompson went to Bismarck in September and painted a dismal picture for the comptroller. In an aside he said, "The President is intoxicated most of the time & the Cashier is com- monly said to be the meanest drinker in Bismarck." Thompson admitted he was not hurting for funds, and if the bank was placed in voluntary liquidation some of the stock- holders would form a stock company to buy the building for the stated cost. In that way, he said, little injury would be done since each shareholder would receive property for his share of the assets. Thompson received a telegram from Bismarck Director George P. Flannery; dated September 16, it reported McLean had been forced out of directorship and presidency of the bank. The local newspaper said he resigned and John Mallanny was promoted to president. Thompson wrote the comptroller that if McLean had been forced out because of his drinking, "Cash- ier McMahon should go likewise." Director Flannery acknowledged to the comptroller that an order to postpone the sale of delinquent stock would provide some relief and that the stockholders would agree to liqui- date. He confirmed all the statements Thompson had made about depressed conditions in Bismarck. Cashier McMahon still insisted the bank was viable. He vis- ited many of the Eastern investors and said they would take up the sixty unsubscribed shares. In October President Mallaney finally bit the bullet and on the 28th the directors voted to liquidate The Merchants National Bank of Bismarck. When John A. McLean tendered his resignation as presi- dent of the Merchants National Bank he cited private busi- ness as taking so much time he could not give proper consideration to the bank. In November he ran as a substitute candidate for county register of deeds; while saying he would make a dandy register of deeds, the Tribune added, "By the way, though, this seems quite a let-down from the presidency of a national bank." McLean was defeated. When the bank surrendered its charter it continued busi- ness for an undetermined time as a territorial bank under the style Merchants Bank of Bismarck, as it had been in anticipa- tion of receiving its national charter. The private bank handled outstanding claims against the Merchants National. As a terri- torial bank there was no need to register, so there is no official record of when the Merchants Bank finally closed. The bank premises were vacant in 1888. It may well have been another one of the five closed banks mentioned earlier. At the time of liquidation the Merchants National Bank had $22,500 of $5 national currency notes outstanding, $3,250 of which was retired, leaving $19,250 in circulation; $185 was outstanding in 1907 and no examples are known. The liquidation was not expeditious and a final date for closing of the books has not been found. George W. Bird, one of the Jefferson, Wisconsin investors, wrote to the comptrol- ler in 1887 that the circulation was provided for and redeemed and the U.S. bonds disposed of. The depositors were all paid, most of the paper collected, and the proceeds distributed to the stockholders in two dividends, "both amounting to about 20%." When Bird visited Bismarck in June the bank had $6,000 cash deposited in the First National Bank and was holding $5,000 in paper due. The $33,000 building was being offered at $15,000 with no prospect of a sale. It was agreed with the Bismarck people that all the assets and building be sold on October 1 and the proceeds and $6,000 cash be distributed, but it had not been done by the end of January the next year. Bird declared the Bismarck directors wanted to prevent dis- tribution of the property, to keep it for their own benefit. He said Cashier McMahon had long since departed Bismarck and the director left in charge had gone into business elsewhere. Bird asked the comptroller if there was any way to force distri- bution of the assets without resorting to costly receivership. Comptroller of the Currency reports suggest no receiver was ever appointed for the bank, consequently no date for final liquidation appears in his reports. Although the Merchants National Bank building had not been sold by the end of 1887, a separation had been made. According to tax records, Lots 1 and 2 whereon the building sat were assessed to a group of several owners through 1886. The 1887 assessment lists the Merchants National Bank as owner of Lot 1. Since this was the Bank's first ownership list- ing of the lot and building, it probably represents the stock- holders rather than "McLean, et al," as before. Carlos Waldo of Wisconsin became owner of Lot 2. The same ownership remained on the tax list, with declining assessments, at least through 1896. A fire which began in a railroad warehouse burned "the handsomest business portion of the city" on August 8, 1898. The Merchants Bank building was among the many businesses destroyed; the list included the First National Bank, the Mellon Bank, the Capital National Bank building and the postoffice among others. The Carlos Lot 2 and debris was sold shortly after the fire. In December 1898, four months after the fire, Lot 1, the bank's lot, was offered for sale by the Burleigh County Auditor for $170.89, the delinquent taxes for 1897. There were no other bidders so Burleigh County bid it in. The county found a buyer for the lot in 1901, and the legal redemption period having passed, an Auditor's Tax Deed was issued on March 12, 1902. The Merchants National Bank, Bismarck, Dakota, was finally out of business. Handy references reveal nothing on the later career of John A. McLean except the 1900 federal census for Bismarck which has him listed as a day laborer. There is always the possibility something may be found later. l le died in Boston August 1, 1916. SOURCES: Bismarck Tribune. Local histories, fire maps, atlas. Burleigh County Deed Registers. Burleigh County tax assessor's records. National Archives: Organizational Records, Examiner's Reports and Correspondence of the Merchants National Bank. f" ATTENTION f "" AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor: Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 Page 192 Paper Money Whole No. 198 18th C entury Stockertificates and the Americanompetitive Edge by NED W. DOWNING (ndhstry9@IDT.NET ) The recently discovered avocation of collecting and re- searching 18th century American stock certificates has opened a window on the classical evolution of the free world at its most critical juncture. The small group of collector aficionados have been treated to a unique view of the genesis of the United States' competitive edge. IE term "Stock" on American financial instruments has an unexpected and interesting evolution. The ear- liest known usage appeared on the 7,000 Pound 1690 Massachusetts note (and many subsequent issues) floated to pay the expenses of a military action against Canada. On the face of the notes possessors were promised the note would be "accepted ... for any Stock at any time in the Treasury." In those early days taxes were collected in both specie (coin) and coun- try pay (farmers produce and commodities at agreed upon values). Ironically then the "Stock . . . in the Treasury" in which these first paper securities in the free world promised redemp- tion was actually the farmer's produce and commodities pre- viously accepted by the Treasurer in lieu of taxes levied. Three hundred years ago then "treasury stock" equalled commodi- ties, perhaps defying analysis by a 20th century researcher us- ing todays evolved financial jargon. Similar archaic financial jargon has caused the financial history of our country to be consistently misunderstood and very often incorrectly reported by academics and historical pundits alike. Aficionados of 18th-century financial history know the in- credible story of the very first American IPO (initial public offering), The Bank of North America on December 31, 1781— the last minute funding of the 1,000 share offering at $400/ share by the use of the late arrival in Boston of King Louis the XVI's 2,500,000 French Livre cash advance transported in trea- sure chests through enemy lines to Philadelphia by the bank's first cashier, Tench Francis, and 14 ox teams. The strategy of opening a national bank modeled on the Bank of England was a bitter pill for most Americans already engaged in a war caused by the Royal misuse of such governmental prerequi- sites, but Superintendent of finance Robert Morris drove its Charter through Congress as a last gasp measure for a finan- cially expiring country. This was the first American "stock" using todays accepted financial jargon. The original 13 States earned their freedom in the 1775-83 Revolutionary War mostly financed by a blizzard of creatively designed paper financial instruments backed by the good faith and promises of the States and their general representatives at the Continental and Confederation Congress. In 1782 the U. S. war debt had been repudiated by Superintendent of finance Robert Morris for the first and only time in American history. When the country faced the threat of another taxpayer led revo- lution, a group of our nations most respected citizens gath- ered and created a new framework for a more efficient central government in the 1787 Constitutional Convention. The Con- stitution was, they agreed, the best they could make under their circumstances. The first Federal Congress (1789-91) and President George Washington's first administration fleshed out the new gov- ernment with its new and more flexible powers to deal with the previously overwhelming Revolutionary War debt prob- lem. Confounding the traditional classical governmental tran- sition models, the United States adopted Secretary of the Treasury Alexander Hamilton's visionary plan to restore the public credit and honorably funded the combined States and U. S. war debts. This produced a burst of confidence and financiers and foreign capitalists actively sought out invest- ment opportunities in the new nation, driving the value of the Revolutionary War debt securities from their 5 to 20 cents on the dollar value in the 1783-7 period to over 100 cents on the dollar by 1791. Hamilton's 1790 plan called for the voluntary exchange of Revolutionary War debt claims for ultimately $64,456,963.90 worth of three new classes (6's, deferred 6's, and 3's) of Stock in the Public Funds of the United States that paid quarterly dividends. These were by far the most important securities to trade on the NYSE when it began using the exchange's adopted date of origin as the May 17, 1792 Buttonwood Agreement. A tiny but growing cadre of mostly pan-time brokers, traders and adventurers grew up around the trading of these and re- lated securities in the Wall Street area of the then New York Capital of the United States. The most creative and well-con- nected of them organized joint stock investment opportuni- ties to match the sizzling demand for investment opportunities in their promising new country. After the war-ending peace 1783 Treaty of Versailles a short burst of economic activity ensued as merchants banded to- gether in various partnerships to take control of the import/ export shipping trade. The most entrepreneurial of them fanned out across the world to open correspondent merchant counting house branches in ports with attractively priced mer- chandise. The substantial initial capital demands for outfitting of ships and insurance of this trade created a general demand for banking services to discount merchants notes which would be payable upon the subsequent receipt and sale of incoming cargos. Banks up and down the East coast were projected as a result. The Massachusetts Bank, now BankBoston, was char- tered in 1783 and 511 shares were sold in a subscription at $500/share. Unable to secure a State charter The Bank of New York offered an unincorporated joint stock subscription of 500 shares at $500/share on May 1, 1784. (See PAPER MONEY No. 196 p. 121 for illustration.) The brief burst of economic activity after the Peace of Versailles soon expired and the Ameri- can economy was not substantively revived again until capital began flowing back to the U.S. in the post Constitution 1787- 92 era of restored national credit. T Paper Money Whole No. 198 Page 193 Americans were still suspicious then of granting corporate charters, and those granted by the States almost uniformly were for improving the infrastructure of the war torn nation-for canals, turnpikes, bridges-companies with a definably pub- lic purpose. The 1791 New Jersey charter of Alexander Hamilton's Soci- ety for Establishing Useful Manufacturers projected by his Re- port on Manufacturers as Secretary of the Treasury was his visionary model for the future industrial corporations similar to those of today. It had a broad charter for diverse economic undertakings and was favored by government-granted privi- leges to ease its inception. Hamilton and its projectors saw this company as the way to ease the country's dependence on imported goods. The third leg of Hamilton's visionary plan for the economic restoration of the U.S. was his $10,000,000 scheme to finance the first Bank of the United States. So great was the frenzy to invest in this 18th century behemoth that the initial script floated rose from its July 4th, 1791 $25/share price to over $300/share the second week of August! The only 18th-century business rivaling the American im- port/export trade was the U.S. real estate development. Wall Streeters will be amazed at the securitized real estate deriva- tives used by our forefathers more than 200 years ago. Our most abundant physical asset was land, and the most entre- preneurial of the earliest American enterprisers projected and sold joint stock securities out of their landholdings as invest- ment opportunities for both the domestic and foreign mar- kets. Robert Morris and John Nicholson's North American Land Company was an audacious attempt to market over 6,000,000 acres of land in a 30,000 share ($100/sh) offering marketed here and in Europe by a team of security salesmen hired on a salary plus commission basis. The same twosome marketed 1,000,000 acres of Pennsylvania land as the Asylum Company (photo within) projected as a home for well heeled refugees of the French Revolution. A home for Marie Antoinette was built there, but she unfortunately was beheaded before she could use it. The good news for collectors of surviving 18th-century stock certificates that reflect the above nation-defining economic developments is that there are only 40 joint stock companies known to myself and other experienced collectors with extant stock certificates (see list). Not surprisingly many, if not most, of the companies on the list were projected by financiers, mili- tary contractors, and leading merchants of the Revolutionary War-the men who had best learned the secrets of turning the Revolutionary War paper claims into more useful wealth. Present day collectors from around the world have learned the story of how the new United States Constitutional gov- ernment demonstrated the capital-attracting economic benefits of honorably settling their defaulted paper war debt claims and thereby restoring the public credit. Collectors also have a unique window on the 1787-93 development of an economic system of government that actively promoted respect for in- vestors rights and the free and unfettered use of paper securi- ties reflecting ownership interests in financial claims and joint stock companies. Collector prices for the different stock certificates are rela- tively inexpensive compared to other collectibles and recog- nizing their historical importance as the United States' most important and enduring contribution to solving the evolu- tionary problems of their newly freed society. Collectors of- ten become giddy when realizing that they hold the best interpretation of the origin of the American capital markets, and that no institutional collections exist except that of the Museum of American financial History at 28 Broadway in NYC where several 18th-century stock certificates are now on dis- play. The two companies shares with the most certificates known, the North American Land Co., and the Philadelphia 61 Lancaster Turnpike have the lowest prices from $750-1500. The rarity of the rest of the known shares on the list increases dramatically after these two companies. lust a few companies have more than 10 or 15 shares known, most have less than 10 known. Prices for the rest of the stocks on the list will vary widely, but range from $1500-3000 for the lesser known, less important, lower grade examples to over $7500 for the rare interesting examples made to or signed by famous characters. For instance, a Bank of Alexandria (Number 26) example made to George Washington reportedly recently traded for $9500. And a better example of Stock in the Public Funds (Number 4) has recently traded for $15,000, two deported previously in the $30,000 range made to or signed by leading personali- ties of the period. Stock certificates of the 18th-century will be great rarities and will become very expensive when and if Wall Streeters discover and learn to more appropriately value their heritage. Only a few have entered the market seriously so far, but dozens have gotten their feet wet with the least expensive examples. Other than a May 18, 1998 Barron's article, this is 1. 1783 Bank of North America 2. 1784 Massachusetts Bank 3. 1789 New York Manufacturing Society 4. 1791 Stock in the Public Funds of the tlnited States 5. 1791 Schuylkill & Susquehanna Canal 6. 1791 Society for Establishing Useful Manufacturers 7. 1792 Bank of Maryland 8. 1792 Delaware and Schuylkill Canal Navigation Co. 9. 1792 Northern and Inland Lock Navigation Co. 10. 1792 Western Inland Lock Navigation Co. 11. 1783 Bank of North America 12. 1793 Bank of the United States 13. 1793 Compagnie de New York 14. 1793 New Jersey Copper Mine Association 15. 1793 Pennsylvania Population Co. 16. 1793 Piscataqua Bridge 17. 1793 Rancocus Toll Bridge Co. 18. 1794 Asylum Co. 19. 1795 Connecticut Land Co. 20. 1795 German Patent 21. 1795 Merrimack Bridge 22. 1795 North American Land Co. 23. 1795 Philadelphia & Lancaster Turnpike Road Co. 24. 1795 Territorial Co. 25. 1796 Baltimore Insurance Co. 26. 1796 Bank of Alexandria 27. 1796 Connecticut Gore Land Co. 28. 1796 Lehigh Coal Mine Co. 29. 1796 New York Society Library 30. 1796 Library Company of Philadelphia 31. 1797 Bank of Columbia 32. 1797 Kennebeck Bridge 33. 1797 Pennsylvania Land Co. 34. 1797 Pennsylvania Property Co. 35. 1797 Third Massachusetts Turnpike Corporation 36. 1798 Bank of Baltimore 37. 1799 Blodget Canal Co. 38. 1799 Boston Turnpike Co. 39. 1799 Savannah Exchange 40. 179x Union Bank of Boston Page 194 Paper Money Whole No. 198 For the true and faithful i. ,,rmance .ind due obtervanza of the feveral articles, agreements and covenants herein contained, the laid parties to thefe prefcnts do hereby bind themfelves each to the other, fo far as the Payne call upon them, ref:pee-Lively, for performance of any matt,..., thing, or condition therein expreffed, in the penal tutu of one million of dollars, to be paid by the party or parties in default to the party or parties performing. Iti WITNESS whereof; the faid parties have hereunto figned their names and aidiK'cd their Peals, this twenty-lecond day of April, one thoufand feven hundred and ninety-four. Sealed and delivered in the pre:Ante 'if Jo. Keating. Garrett Cottringer. Robt. Morris. jn°. Nicholfon. ..k" .!'t, •,› '• Afylum Company. 0)4 •11 ;4, ti?''-lAqie+ . .i. ... +*+, + + 4. i ,,)ort..0.,1=0 ,4444uAltecAPIZ 0.. s t, al- .0504P.A.O. cs:...A'n. -44, 474. 4i 4:. 4• -it"..',.e. ..:4. 444 .7 *44r i I 1 11 'This is to certify, Tat /..','././h T , v , /, 4, 4.,,t 1 7, i t i ,,,, , , )...„ ,-- „„ „,,,,, C ' , 0/7, ,fe'i <1 6j .....-',/,,, I. , F.' II i', , ■;,* is et/filled to 1 . $!I i , ;) 1 t: aclion or Aire in IL. entire property if the _Van Company, being the evil-I t 1 i .1 :ilen wt ?f to hundred .1cre s fl land, in prop;r1Lat 4b ljsc entire quantity b,1* t V i aen's pm; ,:balLI by lir Aid e.)mp,tay; and the jaid ./-; :iie cc ' 4.---;,,,4,-/, A,„,• ;t 1. te--' ,„ ,„7 , „ ,, c,. , J 11, s ,41S, execuMrs or adminiflraArs, is entitled to receive f 4 i are /hare ,of all the Oats, real and pelfinal, which now is cr may hereafter i T 4 I 1 bc,-,:ane the properly f' tin. .filid con pany, agreeably to the articles of agreement, I ilded ,s,. Philadelphia, the tw, ,,,,,,..friond dyer ef April, one theny:tnd liven hun- dred and ninctyri,u, id Opy IV her CT .;.i hereaoto crowned. 72,,is certificate being traneirable ,,nly in the aninns,r prfferibed in the fill articles of agreement. S I( N. it I) in tic prrfincc, and isy order If the Board ,,, ,, ,11,,,,,,,,, at Philaildtbla, the .s‘ ..., 47 . --day ?/ 71:- 7, Zte., , 41, - I 724 kfri'lY-41i / 1•1 - Secretary. J:f : ov •• • • • i s .1 kotookart.ok~rr owti. As:A.04v iserwArtitskirurakokstotswoutetrols - 1 tile. This certificate, number 18 on the list, is in the name of John Nicholson, who gained control from his partner Robert Morris, whose ignature appears at the bottom. The printing credit is "PHILADELPHIA: PRINTED BY ZACHARIA1-1 POULSON, JUNIOR, NUM- BER EIGHTY, CHESNUT-STREET." (Courtesy of the Museum of American Financial History) Paper Money Whole No. 198 Page 1.95 likely the first ever article published on the discipline of col- lecting 18th-century stock certificates. A collector starting to- day could conceivably develop the best collection in the world with a little patience and persistence. The only known origi- nal share of The Bank of North America, our country's earliest publically owned business corporation, is presently part of an American capital market history collection, perhaps the best ever assembled, which is for sale for $1,190,000. Anyone collecting ten different examples of these 40 stock certificates would have a collection rated among the top ten best in the world. One of the best collections in the world, assembled by a German collector over many years, was repa- triated by a collector here in the United States in December of last year. The trade marked the first time a collection of 18th- century American stock certificate rarities had ever traded as a collection. Another collection assembled over many years by a long time American collector, which I would rate as the 5th or 6th best in the world, just sold for $36,500. Many impor- tant and interesting certificates are included. From the economic platform represented by these few still existing "Stock" certificates, todays $40,000,000,000,000 American capital markets were effectively launched. As role models they provided the inspiration for the investor/financiers of the railroads in the late 1820s and 30s and then the rapid proliferation of telegraph companies in the 1840s all the way to todays explosion of internet companies. The power of public credit restored provided the persistent positive impetus for the economy while President George Washington, his administration and the first Federal Congress successfully launched an experimental new system of Federal government in the 1789-93 period and honorably solved the previously unsolvable Revolutionary War debt problems of the Confederation government. The adaptable new Constitu- tional system of government and its contemporaneously emerging capital markets have proved an enduring competi- tive edge for the United States in the classical evolution of nations. Earliest known dates for still existing 18th century joint stock certificates (thanks to Brian Mills, Chairman of the Interna- tional Bond and Share Society, for his primary help in devel- oping this list). ABOUT TEZA6SMOSTLY My Columbian Exposition Ticket Variety by PRANK CLARK HE souvenir admission tickets sold during the Columbian Exposition in Chicago in 1893 have al- ways intrigued me. They're quite interesting and at- tractive, and most can be purchased at a reasonable price. I discovered an unusual "variety" on a ticket, and I'd like to share it with you. Several different souvenir admission tickets were issued for the Columbian Exposition of 1893, each with one of the fol- lowing vignettes: Indian chief, Christopher Columbus, George Washington, Abraham Lincoln, Benjamin Franklin, and George F. Handel. All of the tickets except those depicting Franklin and Handel are found with or without an "A" over- print. All of the tickets with Franklin I have observed have the "A" overprint, but I have never seen an "A" overprint on a Handel ticket. These tickets were engraved and printed on bond paper by American Bank Note Company to deter counterfeiting. The dimensions of the tickets are approximately 6 .10 centi- meters. My "discovery" has to do with the backs of these tickets. All of them have a common back with "Good For One Admis- The hack of the ticket has been enlarged to show the inverted "9." sion At Pay Gates," the printer's name, and the date the de- sign was patented—March 3rd, 1891. However, a ticket in my collection has the "9" in "1891" inverted! I purchased this ticket from a collector who authored a book about these items. He charged me the "regular" price for it, indicating that he had not noticed the error! After I had purchased the ticket and pointed out the discrepancy to him, he said that he had never seen another one like it. In fact, this variety is not listed in his book. The collector later told me that he wished he had not sold me the ticket. REFERENCE: Doolin, 1.P. (1981). 1893 Columbian Exposition Admission and Conces- sion Tickets. Dallas: Doolco Inc. T Page 196 Paper Money Whole No. 198 The "FATHER" of the Savings Bank by BOB COCHRAN Recognize the name "Daniel Defoe"? Most of us would remember that he wrote the classic novel Robinson Crusoe, yet very few people know that Daniel Defoe came up with the original idea for savings banks. EFOE was born in 1661; he tried several vocations, D including hosiery merchant and tile dealer, but he lost considerable sums in both enterprises (although he did repay all his debts, thereby avoiding debtors prison). He later became an outspoken opponent of the government in England at the time, and he did wind up in jail for complain- ing too much. Among other things, Defoe was an advocate of planned roads and the education of women, and he proposed a scheme to modify the existing bankruptcy laws and imprisonment for debt. He also drew up plans for a marine insurance society, and in 1698 he published an organization plan for a savings bank. In "Essays on Projects" he suggested that if all the work- men of a community paid a proportion of their wages to the pension office, and received some modest interest on their deposits, there would be a sufficient surplus to take care of emergencies and pauperism. "I desire," said Defoe, "any man to consider the present state of the kingdom, and tell me if all the people of England, old and young, rich and poor, were to pay into one common bank four shillings per annum a head, and that four shillings duly and honestly managed, whether the overplus would not in all probablity maintain all that should be poor, and forever banish beggary and poverty out of the kingdom?" Defoe's plan did not come to fruition until about fifty years after he died, when a savings bank was established in Brunswick, Germany in 1765. This bank allowed servants to deposit funds; when they reached a certain age they were paid an annuity. It was so successful that other banks were orga- nized in Germany and in Switzerland. His plan, slightly modi- fied, was revived in England in 1797, when one Jeremy Bentham proposed the establishment of "frugality banks." What must be considered the first "Christmas Club" began in 1799, when the Reverend Joseph Smith of Wendover, England, offered to accept funds from his parishoners between sum- mer and Christmas, and he would return to them at Christ- mas an amount equal to their deposits plus one-third as a Christmas present. He also allowed the withdrawal of these funds in the event of an emergency. In 1810, the Reverend Henry Duncan, of the village of Ruthwell, Dumfriesshire, in the lowlands of Scotland, estab- lished, in a cottage, the first savings bank in that country. His bank, small as it was, did not accept all corners without ques- tion. Before an account was opened there was an investiga- tion of the character of the applicant, and the governors of the bank applied different rates of interest paid to different groups of people. The interest rate didn't depend on the amount of money they placed on deposit in the bank, but rather on their aims and objects in life. A man who saved against the coming of a rainy day, or the coming of old age was just an "ordinary" depositor; but the man who drew out his money after three years for the purpose of marrying stood in a favored class. For this latter individual, the rate of interest paid was five percent; but, if he withdrew his money and chose to remain single, he was dropped down into a lower class and received only four percent. The first savings bank in the United States was founded in 1816. On November 25 of that year, Condy Raguet proposed to a group of business associates the establishment of a soci- ety modeled after the Savings Banks of Great Britain. When that meeting was adjourned, "The Philadelphia Savings Fund Society" had been organized. It commenced business, and was officially incorporated by the State of Pennsylvania on Febru- ary 25, 1819. The first savings bank in New York, the Bank for Savings, found it impossible to obtain a charter from a reluctant legis- lature for nearly three years; it was not until the applicants formed "The Society for the Prevention of Pauperism," an or- ganization established to "encourage and assist the laboring classes to make the most of their earnings by promoting the establishment of a Savings Bank," were they able to convince the legislature of their sincerity. On March 26, 1819 the bank was incorporated. In 1847, Charles Knight Budd, formerly of Philadelphia, proposed the organization of the "Boatmens Savings Institu- tion" as a non-commercial bank for the working class. All of the banks mentioned above were founded on the basic idea put forth originally by Daniel Defoe. Thanks, "Dad." REFERENCES: The Bankers Magazine, 1910. American Bankers Association Journal, October 1931. Charter, By-Laws, Rules and Regulations of the Philadelphia Savings Fund Society, 1905. History of The Bank for Savings in the City of New York 1819-1929 , by Charles E. Knowles, 1929. Engravers Named at the BEP Christopher Madden and William Fleishell have completed their ten-year apprenticeships at the Bureau of Engraving and Printing (BEP) and have been named journeymen picture engravers. They join Thomas R. I lipschen, Kenneth Kipperman and Gary M. Chaconas at the BEP. Mr. Madden received his B.F.A. from Ohio State University. Mr. Fleishell has his B.F.A. from George Washington Univer- sity in Washington, D.C. Before completing their apprenticeships at the BEP they engraved U.S. postage stamps, U.S. Postal souvenir sheets and security documents. Mr. Madden and Mr. Fleishell have en- graved and will further engrave portions of the new U.S. pa- per money, Series of 1996. Both gentlemen have had exhibitions of their art and engraving work. Paper Money Whole No. 198 Page 197 The Starts Here A Primo- for Collectors by GENE HESSLER A S I have written more than a few times, the engravedart work on bank notes often reflects the social and work images of the period and call our attention to indigenous geographical landscapes, monuments and land- marks. The three issues of bank notes, all produced by Ameri- can Bank Note Company, which circulated in Hawaii during the latter part of the 19th century are not only beautiful and rare, they give us a hint as to what life was like on the Sand- wich Islands, as they were designated by Captain James Cook on January 18, 1778. Captain Cook had paid homage to the Earl of Sandwich. Only the $5 and $10 silver certificates include strong im- ages that are indigenous to these Pacific islands. Besides en- gravings of a palm tree and the lolani Palace, there is the likeness of a native man in native attire on the $5 note. When this note was introduced, English was spoken only by a few. Today there is an effort to save the native language that has been headed for oblivion. The palace was engraved by Charles Skinner and the native man is the work of Robert Savage. Both men are legends in the world of engraving. The $10 silver certificate has the image of a cowboy roping steers in the center of the note. James D. Smillie created this piece of art, titled Lassoing Cattle, and Luigi Delnoce engraved it. On the left is an engraving of a ship, similar to one that brought Captain Cook to the islands. On the right is a loco- motive, which relates to the sugar industry. As this industry expanded there was a need to bring the sugar cane to the refineries faster. In August 1878 King Kalakaua signed "An Act to Promote the Construction of Railways." Limited service began on July 20, 1879. The Kahului & Wailuku Railway was the first in service. It operated into the 1960s; passenger ser- vice was also offered. Each of the gold certificates includes a central vignette that is symbolic of life in I-lawaii in the 19th century. The $5 gold certificate hears the image of the Government Palace engraved by W.J. Brown. The $10 and $20 notes remind us that sugarcane was once the primary industry in Hawaii. The Sugar Plantation on the $10 note was engraved by James Smillie. (This engraving was also used on a one peso note for Cuba.) The engraving of the Sugar Refinery on the $20 note was executed by Christian Rost. In addition to a young palm tree, the $50 note shows a different image of a cowboy roping steers, also engraved by Luigi Delnoce. Images of cowboys, horses and cattle remind us that all were introduced to the islands. The cowboys came to take care of the imported cows and to teach some natives how to become cowboys and look after the moneymaking long horns. The $100 note has an engraving of cowboys waiting at a train crossing; the title is On the Plains. Louis Delnoce, Jr. en- graved this image that was probably intended to reflect life in the American West and not Hawaii specifically. All gold certificates have a soft yellow overprint; the silver certificates have a blue overprint. Each denomination was shipped to the Republic of Hawaii in bound booklets. The maximum number of notes for any denomination was 5000. Individual notes were removed as checks from check books. This small number of notes accounts for the rarity of these lovely notes; the humidity that is usually prevalent on tropi- cal islands also contributes to the life of bank notes. Now that you have heard about these historic and beautiful notes that few of us could afford, even if the notes became available, here is the good news. The face designs of the $5, $10, $20, $50 and $100 gold certificates are available on sou- venir cards, prepared by the same company that made the origi- nal notes, the American Bank Note Company. The silver certificates were also prepared as souvenir cards for collectors. Except for the $5 silver certificate, which could cost a few dol- lars more, each card should cost about $10 to $15. This is considerably less than the $6000 to $12,000 it would cost for the actual notes. The uniface intaglio-printed cards look and feel like the original engraved notes. So, look through the advertisements in the Bank Note Re- porter, Coin World and other numismatic journals for souvenir card sales. Many paper money dealers also offer souvenir cards. If you become seriously interested in souvenir cards you might consider joining the Souvenir Card Collecting Society at P.O. Box 4155, Tulsa, OK 74159-0155. The annual dues are $20. (Copyright story reprinted by permission from Coin World, Sept. 25, 1995.) lifil ATTENTION " 1 " AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor: Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 • NAL MUM eir it 1•--- sanumumnattxrcisoc, THE CAMP HILL NATIONAL BAIA CAMPS HILL CO VI PENNSYLVANIA.1, PAY 10 IriE BEAPEP 001A1i. FIVE IIINLIAILS F00012611 Page 198 Paper Money Whole No. 198 B)AltNli Happenings From the American Bankers Association Journal, March 1931. Submit- ted by Bob Cochran.] The Seducer MALL, indeed were the beginnings of the first savings banks early in the last century when the workers had little to save, no background of institutional help for the thr fty, and when small savings had not yet been recog- nized as a legitimate part of the banking business. Then, the word "bank" was associated with the privilege of issuing bank notes, and public opinion could not readily see how an institution could be a bank if it proposed to do noth- ing more than to take and invest the small savings of "the provident poor." The first savings bank in America was the Philadelphia Sav- ings Fund Society, organized in Philadelphia in 1816; the sec- ond in Boston about eleven days later and the third in Baltimore. The latter institution, commencing operations without a char- ter, was the first to include the word "bank" in its name. However much of a handicap the inability of the first two institutions to use the name may have been, it no doubt was not nearly as great a handicap as some that were self-imposed on savings institutions generally, such for instance as the diffi- dence with which the system was inaugurated. The idea of keeping these new institutions open every business day in order that no man's resolution to save might cool off, and the poten- tial saver become an actual spender had not yet been developed. "As there were no funds to hire a regular attendant," says Hoggson's Epochs in American Banking referring to the Balti- more pioneer, "the institution was kept open only three hours a week, from eleven until two o'clock every Monday. One may readily realize that it failed to receive many a deposit which a customer might have made if he had not been compelled to delay so long. It was too much to expect him to resist the many temptations for spending money to which he was sub- ject six days in the week." In the illustration, the artist gives his conception of a com- mon allurement of that time. The conflicting impulse to spend or save remains about the same as it was in those times when a savings institution was a nice little philanthropy rather than an integral part of our business structure. " 1" ATTENTION flifi AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor: Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 S Buying & Selling National Bank Notes, Uncut Sheets, Proofs, No. 1 Notes, Gold Certificates, Large-Size Type Error Notes, Star Notes. Commercial Coin Co. PO. Box 607 Camp Hill, PA 17001 Phone 717-737-8981 Life Member ANA 639 Paper Money Whole No. 198 Page 199 New Literature ILLEGAL TENDER, Counterfeiting and the Secret Service in Nine- teenth Century America. David R. Johnson. 222 pp., hardbound, illustrated, 1995, Smithsonian Institution Press, Washington and London. (Cost unavailable). In this book David Johnson, professor of history at the U. of Texas, does not often address which notes were counterfeited, but, as the introduction states, "describes what the U.S. gov- ernment did to put the many [counterfeiters] in nineteenth century America out of business." The author, a social histo- rian, covers this subject as no one else has. According to the New York Times, in 1862, 80 percent of our circulating currency was counterfeit. A department was needed to deflate this cancer. Prior to the Civil War, Congress passed anti-counterfeiting laws. However, there was no practical way to enforce these laws. And, since most of the currency was issued by state-chartered banks, there was little national con- cern. The first demand, U.S. (legal tender) notes, and national bank notes quickly altered the attitude of the federal govern- ment. All the infamous figures, i.e., Biebusch, Brockaway, Cong- don, McCartney, Smith, Ulrich and many more are mentioned. The author also writes about Edward Langton, a U.S. Treasury printer who made lead copies of federal bank note printing plates for illegal use. Unlike the Customs Department or the IRS, the Secret Ser- vice (SS) was not sanctioned by Congress; it was created by an executive order by Edward Jordan, who was appointed by Salmon P. Chase in 1861. With fluctuating annual budgets for the infant SS, operatives had to improvise. As an example, Andrew Drummond, Chief of the SS 1891-1894, used rela- tives to assist with intelligence when the budget coffers were low. There are a few illustrations of operatives and counterfeit- ers. The two or three illustrations of counterfeit notes are poor and with no authentic notes to compare them with, they are of little benefit. There is no bibliography, however there are 38 pages of endnotes. The primary sources are: The U.S. Secret Service, Register of Monthly Reports, 1864-1871; the Daily Reports of Agents, 1875-1910, both in Record Group (RG) 87, and the U.S. Secret Service, Description and Information of Criminals, 1863-1906 in RG 87 in the National Archives in Washington, DC. The endnote sources are specific, and this is what makes this book so valuable. Anyone who wishes to research specific subjects can, with Professor Johnson's documentation, go immediately to the appropriate document. (Ed.) The Alexander Hamilton Web-Fed Press. Bob Kvederas, Jr. & Bob Kvederas, Sr. 88 pp., softcover, illustrated, 1998. B. Kvederas, Jr., Box 34, Titusville, FL 32781. $10 plus $2. For those who are fascinated by the saga of and have become collectors of notes printed by the Hamilton Web-Fed Press, this little booklet will give you the information you need. The contents include a "Timeline," which chronicles the dates of development to the demise of the press. District blocks are listed, and there are suggested prices. The Web-Fed Press was to save time and money by printing the face and back of paper money on sheets, which would be cut later. The press could never be adjusted to do an adequate job. When the first web notes entered circulation the anemic imprint had people wondering if the notes were counterfeit. The history of this type of press goes back to 1910. It works for stamps, however it didn't seem to be user-friendly for pa- per money. Our paper money continues to be printed on 32- subject sheets: backs first and then the face. (Ed.) Confederate States Paper Money. Arlie R. Slabaugh. 248 pp., soft- cover, illustrated. Krause Publications, 700 E. State Street, Iola, WI, (715) 445-2214, $19.95 plus $3.25 for mailing. This new edition is divided into three parts: catalog of Con- federate States; historical data, and a catalog of southern states. Following important Civil War data, i.e., A Nation Asunder, and The Cotton Economy, the catalog begins with extended information on Collecting Confederate Currency, Catalog Prices, Buying and Selling, and Grading. Pricing for all notes has been made current. There is a cross-index of catalog numbers for all major ref- erences: Raymond, Chase, Bradbeer, Criswell, and Pick. The index to vignettes is extremely helpful for those, like me, who are interested in the art on the notes. The information about the famous Running Deer note takes six pages. The previous edition had 128 pages; the addition of part three, southern states, is the reason for the increased number of pages. This new section is concise but thorough and has good illustrations. If you want to learn about this subject or if you are already a collector, this attractive, comprehensive book is a necessity. "This catalog," Slabaugh says, "has been written with the idea of conveying as much information as possible in a handy-size volume. All notes are listed by types and major varieties. Arlie and Krause are to be lauded for this 9th edition; no other book on this subject has had as many revisions. (Ed.) Call for Nominations for 1999 The following governors' terms expire in 1999: C. John Ferreri (who is completing the term of Milton Friedberg), Gene Hessler and Tim Kyzivat. If you have suggestions, or if the preceding governors wish to run for another term, please notify Fred L. Reed, III, Secretary of the SPMC. In addition, candidates may be placed on the ballot in the following manner: (1) A written nominating petition is submitted, which has been signed by ten current members. (2) An acceptance letter from the person being nominated is submitted with the petition. Nominating petitions (and accompanying letters) MUST BE RECEIVED BY THE SECRETARY BY JANUARY 15, 1999. Biographies of the nominees and ballots for the election will be included in the March/April 1999 issue of PAPER MONEY. The ballots will be counted at Memphis and an- nounced at the SPIvIC general meeting held during the Inter- national Paper Money Show. First-time nominees should send a portrait and a brief bi- ography to the editor, Marilyn Reback. Unless new informa- tion is sent, the editor will use the same portraits and biographies of those who seek another term as governors as were used in the past. WANTED WISCONSIN NATIONALS 4 .7713H 5779 11 &MIN Stileiteaginfil (7e( eccAil /r//a.., taIr:rsairinar444.srapcarmaanr..qdx=rx.v... moo -ard::C=Ct! C. Keith Edison P.O. Box 845 Independence, WI 54747-0845 (715) 985-3644 FAX (715) 985-5225 Page 200 Paper Money Whole No. 198 The President's Column It's late September as I write this column. This is the 198th issue of our journal, the 87th such issue prepared under the guidance of Gene I lessler since he volunteered to assume the Editor's po- sition in the summer of 1984. Folks, we honestly don't realize just how lucky we've been over the past 14+ years! Gene's ef- forts on our behalf have seen PAPER MONEY recognized many times (including 1998) as the BEST organizational publication in the entire hobby! I know how much effort and care Gene has put into EACH issue that bore his name as Editor. I know how much PRIDE the man has in his work, and how much time and energy he expended to insure that the SPMC membership itself could take PRIDE in such a quality journal. At the same time, Gene has continued to produce SUPERB reference books for us, including An Illustrated History of U.S. Loans, and the magnificent work, The Engraver's Line. In addi- tion, Gene produced several updated editions of his Compre- hensive Catalog of U.S. Paper Money and still authored regular columns for several publications. Gene has assured me that he will continue to favor PAPER MONEY with articles, and I'm sure we will be reprinting many of his past articles over the coming years. And, while I praise Caesar, he is NOT gone! Gene will be serving as our Contribut- ing Editor, so we will have the benefit of his advice and counsel to our new editor, Marilyn Reback. On behalf of each and every member of the Society of Paper Money Collectors, I say "THANK YOU, GENE" for everything you've done for our organization and this wonderful hobby! I also ask very member of SPMC to welcome and support Marilyn Reback as she assumes the role of Editor beginning with the first issue of PAPER MONEY for 1999. Numismatics lost some "notables" in 1998. A Gentle MAN and FRIEND to MANY passed away recently. Reverend Malcolm C. Thompson and his lovely wife Cay were familiar faces at nu- mismatic gatherings in the St. Louis area for nearly 30 years. Malcolm always had a ready smile, handshake and kind word for everyone he saw. He always brought a "goodie" to the Mis- souri Numismatic Society meetings to show to his friends, and many times it was currency or a bank note of some significance. Currency Auctions of America sold "The Reverend Malcolm C. Thompson Collection" in September 1997, but I know the cor- rect title should have been "The Reverend Malcolm C. AND Cay Thompson Collection." Malcolm was a member of the SPMC for over 30 years. I will miss him, but, like so many other wonderful people I've met through our hobby, it was MY plea- sure to have known Malcolm. Awards at the 1998 Portland ANA The following paper money exhibitors were recognized by the American Numismatic Association (ANA) in August. U.S. Paper Money: 1st, Kevin V. Maloy for "United States Military Payment Certificates"; 2nd, William Horton, Jr. for "$1 Note Types, 1862 to Present"; 3rd, Ralph Ross for "The $2 Bill." Obsolete Paper Money: 1st, Ronald J. Benice for "Deterring Counterfeiting and Altering in Early America"; 2nd, Phil Iverson for "I luntington Hotel Depression Scrip"; 3rd, no award. World Paper Money: 1st, Steve Cox for "Bank Notes of Alge- ria and Tunisia"; 2nd and 3rd no awards. Mr. Cox also received the First-Time Exhibitor Award, and was second runner-up for the Best of Show Award. General or Specialized: 1st, Robert K. Myles for "Tokens and Currency of the United States Leper Colonies"; 2nd and 3rd no paper money-related awards. Numismatic Literature: 1st, Michael Sullivan for "An Over- view of Bank Note Reporters and Counterfeit Detectors for Pa- per Money"; 2nd, Donna Maloy for "The Literature of Military Payment Certificates." Once again PAPER MONEY was selected by the ANA as the Best Club Magazine. All contributors are to be congratulated. Not mentioned in the previous issue, Bob Cochran received the PCDA-John Hickman National Bank Note Exhibit Award for "45 of 58 $5 Brown Back Nationals" at Memphis, and Frank Clark was presented with the Tennessee State Numismatic Society's Tom Armstrong Literary Award. Mark Hotz and Nathaniel Fick received a Heath Literary Award from the ANA for "Death on the Prairie." The ANA- Catherine Sheehan Award for U.S. Paper Money Studies went to Arthur Crawmer for "A Small Mill in Savage, Maryland." There were awards at the ANA convention from the Numis- matic Literary Guild. Mark Tomasko was honored for "Central Banknote Grew to Prominence with Estys" in the Banlz Note Re- porter. Book awards went to Eric P. Newman for Early Paper Money in America, and editors Colin R. Bruce II and Neil Shafer for World Paper Money Issues. For "America's Money at War: Mili- tary Payment Certificates Saw Duty in Korea and Vietnam" in Coins magazine, Mark Benvenuto received an award. Paul Green was recognized for "Clinton Starts Costa Rican Collec- tion" in World Coin News. 111" ATTENTION " I " AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor: Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 Paper Money Whole No. 198 Page 201 NEW MEMBERSHIP COORDINATOR Intone:oP mart Frank Clark NEW P.O. Box 117060Carrollton, TX 75011 MEMBERS 9532 Scott Lindquist, P.O. Box 392, Minot, ND 58702; C&D, Nor- way, Sweden, Germany, Canada, U.S. 9533 Larry Forsyth, 6143 La Cosa, Dallas, TX 75248; C, Texana & U.S. 9534 David R. Taylor, P.O. Box 66, Beaufort, NC 28516-0066; C. 9535 L. Lee Poppelreuter, 349 E. Lincoln Way, Lisbon, 01-I 44432; C, U.S., lg.-size. 9536 Thomas G. Oristian, CHENNAI CG, U.S. Dept. of State, Wash- ington, D.C. 20521-6260. 9537 Bill Hiatt, 815 N. 52nd St. #1249, Phoenix, AZ 85008-6761; C, NBN, Southern States. 9538 Pam West, P.O. Box 257, Sutton, Surrey, England SM3 9 WW; D, British bank notes. 9539 Mark C. Disanti, 9090 Skillman #182A-352, Dallas, 'LX 75243; C&D, NBN. 9540 Laura Blair, 3655 S. Bear St. #C, Santa Ana, CA 92704-8245; C, silo. certs, low den. 9541 Robert E. Jones, PO Box 191392, San Francisco, CA 94119- 1392; C. 9542 Phillip Howard, 1501 Back Cove Rd., Virginia Beach, VA 23454; C, sm.-size notes. 9543 William Oliveri, 2431 Belmont Ave., Bronx, NY 10458; C, U.S. 9544 Jeff Bubrow, 7 Lenape Trail, Washington, NJ 07882; C, lg.-size notes. 9545 Ronald E. Rothstein, P.O. Box 186, SpringAeld, NJ 07081; C. 9546 Mark Mraz, 70-200 Santa Rosa Rd. #251, Mountain Center, CA 92561; C, sm-size $500 & $1000 notes. 9547 Ronald F. Hedglin, P.O. Box 580, Streator, IL 61364; C&D, IL NBN. 9548 Thomas G. Betros, 1602 Shamrock, Deer Park, TX 77536; C, U.S. 9549 Ray Mayo, P.O. Box 828, Antioch, IL 60002; C, U.S. 9550 Barry Schwartz, 38 N. Front St., Kingston, NY 12401; C, errors, U.S. MPC. 1689 lames R. Weiland, 73 Canterbury Rd Aurora, IL 60506, rein- statement. 8643 Mark A. Atkinson, P.O. Box 5343, Vienna, WV 26105-0343; C&D, all U.S, reinstatement. Correction for No. 197 The two-note sheet mentioned in Steve Goldberg's article on page 156 was inadvertently printed as two separate notes, the first and third in the illustration. lif " ATTENTION " 1 " AUTHORS AND ADVERTISERS Effective Immediately All articles, ads and correspondence should be sent to the new editor: Marilyn A. Reback P.O. Box 1110 Monument, CO 80132 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 special- ized material and disposing of duplicates. Copy must he 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 31144, Cincinnati, 01-1 45 23 1 by the first of the month preceding the month of issue (i.e. Dec. 1 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 0/0 dis- count 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.: ERN counted as one word each) OLD STOCK CERTIFICATES! Catalog plus 3 beautiful certificates $8.95. Also buy! Ken Prag, Box 14817-PM, San Francisco, CA 94114. (415) 586-9386. (198) MASSACHUSETTS LARGE- AND SMALL-SIZE NATIONAL BANK NOTES WANTED from Buzzards Bay, Edgartown, Falmouth, Harwich, I lyannis, Nantucket, Tisbury, Provincetown and Yarmouth. Frank Bennett, P.O. Box 8722, Port St. Lucie, FL 34985. (197) WW II MILITARY CURRENCY MY SPECIALTY! Periodic price lists for 55C SASE; MPC, Philippine Guerilla, Japanese invasion, world coins-paper-stamps, U.S. coins-paper-stamps, Confederate, obsoletes, ERN, stocks-bonds. 702-753-2435. Edward B. Hoffman, P.O. Box 6039 -S, Elko, NV 89802 - 6039. (199) STOCKS & BONDS wanted! All types purchased including railroad, mining, oil, zoos, aviation. Frank Hammelbacher, Box 660077, Flushing, NY 11366. (718) 380-4009 (fax 718-380-4009) (norrico0 compuservescom). (205) STOCK CERTIFICATES, BONDS, 40-page list for two 32c stamps. 50 different $25; three lots $60. 15 different railroads, most pictur- ing trains $26, three lots $63. Clinton Hollins, Box 112, Dept. P. Springfield, VA 22150-0112. (208) WANTED OHIO NBNs. Please send list. Also, want LOWELL, TYLER, RYAN, WHITNEY, JORDAN, O'NIELL. Thanks for your help. 419- 865-5115. Lowell Yoder, POB 444, Holland, 43528. (207) WANTED: STOCKS AND BONDS. Railroad, Mining, City, State, CSA, etc., etc. Also wanted Obsolete and CSA Currency. Always Paying Top Dollar. Richard T. Hoober, Jr. P.O. Box 3116, Key Largo, FL 33037. Phone or FAX (305) 853-0105. (203) NYC WANTED: Issued NYC, Brooklyn, Williamsburgh obsoletes, any obsoletes from locations within present-day Manhattan, Brooklyn, Bronx, Queens, Staten Island. Steve Goldberg, Box 402, Laurel, MD 20725-0402. (204) SEND FOR FREE PRICE LIST 11111111■111111MIM SUPERB UNITED STATES CURRENCY FOR SALE BOOKS FOR SALE COMPREHENSIVE CATALOG OF U.S. PAPER MONEY by Gene Hessler. 6th Edition. Hard cover. 579 pages. The new Edition. $32.00 plus $3.00 postage. Total price $35.00. THE ENGRAVERS LINE by Gene Hessler. Hard cover. A complete history of the artists and engravers who designed U.S. Paper Money. $75.50 plus $3.50 postage. Total price $79.00. NATIONAL BANK NOTES by Don Kelly. The new 3rd Edition. Hard cover. Over 600 pages. The new expanded edition. Gives amounts issued and what is still outstanding. Retail price is $100.00. Special price is $65.00 plus $4.00 postage. Total price $69.00. U.S. ESSAY, PROOF AND SPECIMEN NOTES by Gene Hessler. Hard cover. Unissued designs and pictures of original drawings. $14.00 plus $2.00 postage. Total price $16.00. Stanley Morycz P.O. BOX 355, DEPT. M • ENGLEWOOD, OH 45322 937-898-0114 J.41.1S) . x11.11 77°?' 34 ///// ti 7c " s't t (,■4:11 ) ',14413_21,01011,* ZDID , amtirtraifit -,,,k1vatiiiioaerzeiiiravaieetz4 7,?,,,/,,/,,,/e„, /4, n990, ttAtMgVilitt4AiittiteN, ulu 23z. - Ate ritre ja4), 014,0,10., 11p/1 411111E111 SEIilE 9 D70990 • GOLD ACTRTI FICATE Page 202 Paper Money Whole No. 198 Paper Money Whole No. 198 Page 203 CHECK THE "GREENSHEET" GET 10 OFFERS THEN CALL ME (OR WRITE) FOR MY TOP BUYING PRICES The Kagin name appears more often than any other in the pedigrees of the rarest and scarcest notes (U.S. Paper Money Records by Gengerke). BUY ALL U.S. CURRENCY Good to Gem Unc. I know rarity (have handled over 95% of U.S. in Friedberg) and condition (pay over "ask" for some) and am prepared to "reach" for it. Premium Prices Paid For Nationals (Pay 2-3 times "book" prices for some). BUY EVERYTHING: Uncut Sheets, Errors, Stars, Special Numbers, etc. I can't sell what I don't have Pay Cash (no waiting) No Deal Too Large A.M. ("Art") KAGIN 910 Insurance Exchange Bldg. Des Moines, Iowa 50309 (515) 243-7363 Fax: (515) 288-8681 At 79 Now is The Time — Currency & Coin Dealer Over 50 Years I attend about 25 Currency-Coin Shows per year Visit Most States (Call, Fax or Write for Appointment) Collector Since 1928 Professional Since 1933 *Founding Member PNG, Pres, '1963-64 ANA Life Member 103, Governor 1983-87 ANA 50-Year Gold Medal Recipient 1988 aNce of '102o 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. SPECIALIZING IN: SERVICES: q Colonial Coins q Portfolio q q Colonial Currency Rare & Choice Type q Development Major Show EARLY AMERICAN NUMISMATICS Coins Coverage c/o Dana Linett q Pre-1800 Fiscal Paper q Auction q Encased Postage Stamps Attendance q P.O. Box 2442 q LaJolla, CA 92038 q 619-273-3566 Members: Life ANA, CSNA-EAC, SPMC, FUN, ANACS IL,04.11m4P Your Hometown Currency Headquarters Top prices paid for National Currency Collections. Large-Size Type Notes. All Florida Currency and Scrip Largest Inventory of National Currency & Large Size Type Notes! Interested? Call 1-800-327-5010 for a Free Catalog or write William Youngerman, Inc. Rare Coins & Currency "Since 1967" P.O. Box 177. Boca Raton. FL 33429-0177 Page 204 Paper Money Whole No. 198 5th ANNUAL CHICAGO PAPER MONEY EXPO Friday, Saturday, Sunday February 19-20-21,1999 Ramada O'Hare Hotel 6600 North Mannheim Road Rosemont, Illinois * 100 Booth Bourse Area Major Paper Money Auction * Society Meetings Show Hours: Thursday, February 18 2 p.m.-6 p.m. (Professional Preview—$25) Friday, February 19 10 a.m.-6 p.m. Saturday, February 20 10 a.m.-6 p.m. Sunday, February 21 10 a.m.-2 p.m. Hotel Reservations: Please call the Ramada Hotel O'Hare directly at (847) 827-5131 and ask for the special Chicago Paper Money Expo rate of $85 S/1). Educational Programs Complimentary Airport Shuttle * Complimentary Hotel Guest Parking The Chicago Paper Money Expo is sponsored by Krause Publications, the World's Largest Publisher of Hobby Related Publications, including Bank Note Reporter & Standard Catalog of United States Paper Money. Bourse Infonnation: Kevin Foley P.O. Box 573 • Milwaukee, WI 53201 (414) 481-7287 • FAX (414) 481-7297 011 111 inottil411143. ,C. DON'T RISK YOUR COLLECTION STORE IT IN MYLARTM! Oregon Pioneer Albums & Sleeves SafeKeeper Albums Safe Deposit Box Size Post Binder Format 50 MYLARTM Pages Black Leatherette Cover 6 Sizes in Stock: For Currency of all Types including Checks, Large US, Small US, World, Postcards, Fractionals, etc. Flexible Albums Inexpensive 25 MYLARTM Pages Durable Flexible Cover Plastic Spiral Binding Compact & Lightweight 4 Sizes in Stock: For Checks, Stock Certificates, Postcards, Fractionals, etc. Custom Albums Available Many Sizes of MYLARTM Sleeves Also In Stock Call, Write or Fax Now for Information Your Complete Satisfaction Guaranteed OREGON PAPER MONEY EXCHANGE 6802 SW 33rd Place Portland, OR 97219 (503) 245-3659 Fax (503) 244-2977 Paper Money Whole No. 198 Page 205 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 S PM C #2907 ANA LM #1503 Million Dollar Buying Spree Currency: Nationals MPC Lg. & Sm. Type Fractional Obsolete Foreign Stocks • Bonds • Checks • Coins Stamps • Gold • Silver Platinum • Antique Watches Political Items • Postcards Baseball Cards • Masonic Items Hummels • Doultons Nearly Everything Collectible 399 S. State Street - Westerville, OH 43081 1-614-882-3937 1-800-848-3966 outside Ohio 41:i)rr-sg) Life Member 8.445)- EST 1960 "Ilosaiyamasipi" COIN SHOP INC SEND FOR OUR COMPLETE PRICE LIST FREE 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 .4.•",./,1).., • Itlerr.q.11,...4.—/T.NE ..„ 67431 CANADIAN BOUGHT AND SOLD • CHARTERED BANK NOTES. •DOMINION OF CANADA. •BANK OF CANADA. • CHEQUES, SCRIP, BONDS & BOOKS. FREE PRICE LIST CHARLES D. MOORE P.O. BOX 5233P WALNUT CREEK, CA 94596-5233 (925) 946-0150 Fax (925) 930-7710 LIFE MEMBER A.N.A. #1995 C.N.A. #143 C.P.M.S. #11 WANTED ALL STATES ESPECIALLY THE FOLLOWING: TENN-DOYLE & TRACY CITY: AL, AR, CT, GA, SC, NC, MS, MN. LARGE & SMALL TYPE CONFEDERATE. WRITE WITH GRADE & PRICE. ALSO SEND (WANT LIST) FOR LARGE & SMALL TYPE NOTES SEND FOR LARGE PRICE LIST OF NATIONALS— SPECIFY STATE DECKER'S COINS & CURRENCY P.O. BOX 250, BLAINE, TN 37709 (423) 932-9677 SPMC LM-120 ANA 640 FUN LM-90 Page 206 Paper Money Whole No. 198 00001798 BrATIONTAIMCVERICENCIF - tajtmq THE StIr NATIONAL SANK of py LE SUEUR -- MINNESOTA DOLLARS tmr.r■ FIVE D 0000179A I COLLECT MINNESOTA OBSOLETE CURRENCY and NATIONAL BANK NOTES Please offer what you have for sale. Charles C. Parrish P.O. Box 481 Rosemount, Minnesota 55068 (612) 423-1039 SPMC LM114 - PCDA - LM ANA Since 1976 .re. 1, MYLAR D CURRENCY HOLDERS PRICED AS FOLLOWS BANKNOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 43/4 x 23/4 $17.75 $32.50 $147.00 $255.00 Colonial 51/2 x 3v, 6 18.75 35.00 159.00 295.00 Small Currency 65/8 x 2'/8 19.00 36.50 163.00 305.00 Large Currency 778 x 31/2 23.00 42.50 195.00 365.00 Auction 9 x 33/4 26.75 50.00 243.00 439.00 Foreign Currency 8 x 5 30.00 56.00 256.00 460.00 Checks 9 5/8 x 41/4 28.25 52.50 240.00 444.00 SHEET HOLDERS SIZE Obsolete Sheet INCHES 10 50 too 250 End Open 83/4 x 141/2 $13.00 $60.00 $100.00 $230.00 National Sheet Side Open 81/2 x 171/2 25.00 100.00 180.00 425.00 Stock Certificate End Open 91/2 x 121/2 12.50 57.50 95.00 212.50 Map and Bond Size End Open 18 x 24 48.00 225.00 370.00 850.00 You may assort noteholders for best price (min. 50 pcs. one size). You may assort sheetholders for best price (min. 5 pcs. one size) (min. 10 pcs. total). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar DO is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar0 Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp., Melinex Type 516. DENLY'S OF BOSTON P.O. Box 1010 617-482-8477 Boston, MA 02205 ORDERS ONLY: 800-HI-DENLY FAX 617-357-8163 Paper Money Whole No. 198 Page 207 PHILLIP B. LAMB, LTD. CONFEDERATE STATES OF AMERICA, HISTORICAL CONNOISSEUR Avidly Buying and Selling: CONFEDERATE AUTOGRAPHS, PHOTOGRAPHS, DOCUMENTS, TREASURY NOTES AND BONDS, SLAVE PAPERS, U.C.V., OBSOLETE BANK NOTES, AND GENERAL MEMORABILIA. Superb, Friendly Service. Displaling al many major !rode shows. PHILLIP B. LAMB P.O. Box 15850 NEW ORLEANS, LA 70175-5850 504-8 99 -4710 QUARTERLY PRICE LISTS: $8 ANNUALLY WANT LISTS INVITED APPRAISALS BY FEE. BOOKS ON PAPER MONEY & RELATED SUBJECTS The Engraver's Line: An Encyclopedia of Paper Money & National Bank Notes, Kelly 45 Postage Stamp Art, Hessler $85 U.S. National Bank Notes & Their Seals, Prather 40 Comprehensive Catalog of U.S. Paper Money Paper Money of the U.S., Friedberg. 14th edition 24 Errors, Bart 35 Prisoner of War & Concentration Camp Money of the The Comprehensive Catalog of U.S. Paper Money, Hessler 40 20th Century, Campbell Small-Size U.S. Paper Money 1928 to Date, Oakes & 35 U.S. Essay, Proof & Specimen Notes, Hessler 19 Schwan? Softbound 25 The Houston Heritage Collection of National Bank World Paper Money, 7th edition, general issues 55 Notes 1863-1935, Logan 25 World Paper Money, 7th edition, specialized issues 60 10% off five or more books / SHIPPING $3 for one book, $4 for two books, $5 for three or more books. All hooks are in new condition & hardbound unless otherwise stated. CLASSIC COINS - P.O. BOX 95 - Allen, MI 49227 - NA 310,44.1.. a !I ll Ii ; aY 3 ° 3 specialized in Poland, Russia a E- .Europe visit us: Sel l Free Price Lisi Tom Sluszkiewicz P.O.Box 54521, Middlegate Postal BURNABY, B.C., CANADA, V5E 4J6 B -111.11 Buying & Selling Foreign Banknotes Send for Free List William H. Pheatt 6443 Kenneth Ave. Orangevale, CA 95662 U.S.A. Phone 916-722-6246 Fax 916-722-8689 Paper Money Whole No. 198Page 208 • INC. P.O. BOX 84 • NANUET, N.Y 10954 OBSOLETE CURRENCY, NATIONALS, U.S. TYPE, UNCUT SHEETS, PROOFS, SCRIP. BUYING / SELLING: Periodic Price Lists available: Obsoletes($3 applicable to order), Nationals, & U.S. Large & Small Size Type. PHONE or FAX BARRY WEXLER, Pres. Member: SPMC, PCDA, ANA, FUN, GENA, ASCC (914) 352-9077 0 Always Wanted Monmouth County, New Jersey Obsoletes — Nationals — Scrip Histories and Memorabilia Allenhurst - Allentown - Asbury Park - Atlantic Highlands - Belmar Bradley Beach - Eatontown - English town - Freehold - Howell Keansburg - Keyport - Long Branch - Manasquan - Matawan Middletown - Ocean Grove - Red Bank - Sea Bright - Spring Lake N.B. Buckman P.O. Box 608, Ocean Grove, NJ 07756 800-533-6163 Fax: 732/922-5055 ■ ■ ■ a ■ ■ • ■ • ■ ■ ■ • a ■ • n OBSOLETE NOTES ■a ■ • ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ • Also C5A, Continental & Colonial, Stocks & Bonds, Autographs & Civil War Related Material. LARGE CAT. $2.00 Ref. Always Buying at Top Prices RICHARD T. HOOBER, JR. P.O. Box 3115, Key Largo, PL 33037 PAX or Phone (305) 853-0105 A $5 Federal Reserve Bank note. F-782* in EF realized $7,150. A $100 One-Year Note, believed to be unique, realized $8,250. Moran can NaitOltal Iti1111 ealize Top Market Price for Your Paper Money! The currency market is hot! In recent months we have seen a tremendous amount of buying activity and invite you to jump on the bandwagon. Consider selling your important notes and currency items in one of our upcoming auctions to be held in New York City or in conjunction with the Suburban Washington/Baltimore Convention. The same bidders who helped set world record prices in our recent sales will compete for your currency items as well. Call Q. David Bowers, Chairman of the Board, or John Pack, Auction Manager, at 1-800-458-4646 to reserve a space for your material. We can even provide a cash advance if you desire. It may be the most financially rewarding decision you have ever made. A cut sheet of four $10 Legal Tender notes. F-123 in Average New to Choice New realized $17,600. A $10 Silver Certificate. F-1700 in Gem New realized $8,800. An Interest Bearing $5,000 Proof Note realized $11,000. An Uncirculated Lazy Two $2 note from the State of Missouri, Town of California realized $4,840.Auctions by Bowers and Merena, Inc. Box 1224 • Wolfeboro, NH 03894 • 800-458-4646 • FAX: 603-569-5319 • STANDARD CATALOG OF Upited States Paper Mosey By Chester L. Krause and Robert F. Lemke Robert E. Wilhite, Editor 17th edition NATIONAL DANK NOTES • LARGE & SARA NEW •FRACTIONAL CURRENCY • ERROR I EDITION •POSTAGE STAMP ENVELOPES • ENCAS... •PHILIPPINE ISLANDS COMMONWEALTH ISus.szb •PRE-CIVIL WAR U.S. NOTES • GUIDE TO AUTHENTICITY A N ESSEN t1,1A L PA R1 -' OF YOUR PA PER Nil ONEY CULLECT1 ON 186 years of paper money in three grades of condition 200 high-definition photos for positive identification Valuations for over 10,000 currency items Hardcover • 8-1/2 x 11 • 248 pages 600 b&w photos • SP17 • $24.95 Essential information on design, authenticity, signers, illustrators and more STANDARD C \LOG OF U.S. PAPER MONEY 17th Edition Edited by Robert E. Wilhite The information you need at your fingertips! Small notes, large notes, national bank notes, U.S. Treasury notes, Civil War substitutions, postage stamp envelopes, error notes and more are all cataloged. Buy and sell in today's growing paper money market with confidence. Information can be found quickly and easily with categories listed by denomination rather than obligation. More than 5,000 currency items in one place will save you hours of frustrating time and research. Fully updated with well over 10,000 valuations, and a detailed 15-page guide to authentication. To order by mail send selection list and quantity with payment to: KRAUSE PUBLICATT Book Dept. N83I 700 E. State St., Iola, WI 54990-0001 Please add appropriate book post shipping, handling and state tax charges as follows: $3.25 1st book; $2 ea. add'l. Call for Overnight or UPS delivery rates. Foreign addresses $15 per shipment plus $5.95 per book. Sales tax: WI residents 5.5%, Il residents 6.5%. 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