Paper Money - Vol. LIII, No. 4 - Whole No. 292 - July/August 2014

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Table of Contents

The Paper Column—First National Bank of Porto Rico at San Juan

                 by Peter Huntoon............................................. 235

The Puerto Rican Junta Issues of 1813............................ 254

by Mark Anderson

Russian-American Company Scrip................................... 258

by Kathy Lawrence

Mexico Has Printed Its Own Notes Since 1969................ 261

by Carlson Chambliss

SPMC Celebrates its Inaugural Hall of Fame.................... 271

From One Big Collection to Another................................. 272

by Robert Gill

Fourth Issue 15ɇ Seal Plate Numbers.............................. 274

by Rick Melamed

Fighting Corruption with the Zero Rupee Notes................ 278

by Loren Gatch

An Introduction to CSA Paper Money............................... 281

by Pierre Fricke

About Texas Mostly—Paris, (TX) Bankers...................... 285

                    by Frank Clark

Small Notes—A Rare $5 Silver Certificate 629 Mule....... 287

by Jamie Yakes

Uncoupled—Souvenir Notes............................................ 289

                   by Joe Boling and Fred Schwan

New Obsolete Book Review............................................. 295

Chump Change—Loren Gatch........................................ 297

   CSA Field Edition 2014 Book Review.............................. 298

President’s Column—Pierre Fricke.................................... 300

Membership Report—Frank Clark..................................... 301

Editor Sez—Benny Bolin................................................... 302

Memphis Happenings/Information.................................... 303

Money Mart........................................................................ 310

Paper Money Vol. LIII, No. 4, Whole No. 292 July/August 2014 Official Journal of the Society of Paper Money Collectors Inside Peter Huntoon on Porto Rico Mark Anderson on Puerto Rico Kathy Lawrence on Russian-America Frank Clark on Paris (Texas that is) Rare Confederate and Obsolete Money for Sale!  Pierre Fricke,  P.O. Box 1094, Sudbury, MA 01776;;  T‐6 PF‐1 Very Choice Uncirculated!   $5995  T‐8 PF‐4 Ex Rare Red Trans‐Miss. reissue   $1995  T‐41 PF‐4 Choice Unc; 2nd finest known  $6950  T‐41 PF‐22 PCGS Superb Gem New 68 PPQ!!  $4750  And many more CSA, Southern and Obsolete Bank Notes for sale ranging from $10 to five figures  BUYING!!  Space 1 Time 3 Times 6 Times Full color covers $1500 $2600 $4900 B&W covers 500 1400 2500 Full page color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W 45 125 Requirements: Full page; 42X57 picas; 225 half-page Terms and Conditions  PAPER MONEY (USPS 00-3162)is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 101-C North Greenville Ave. #425, Allen, TX 75002. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Benny Bolin, 101-C North Greenville Ave #425, Allen, TX 75002. ©Society of Paper Money Collectors, Inc. 2014. All rights reserved. Reproduction of any article in whole or part without written approval is prohibited. Individual copies of this issue of PAPER MONEY are available from the secretary for $8 postpaid. Send changes of address, inquiries concerning non- delivery and requests for additional copies of this issue to the secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuacripts will be published as soon as possible, however publication in a specific issue cannot be guaranteed. Include an SASE if acknowledgement is desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be submitted in WORD format via email ( or by sending memory stick/disk to the editor. Scans should be grayscale or color JPEGs at 300 dpi. Color illustrations may be changed to grayscale at the discretion of the editor. Do not send items of value. Manuscripts are submitted with copyright release of the author to the Editor for duplication and printing as needed. ADVERTISING All advertising on space available basis. Copy/correspondence should be sent to editor. All advertising is payable in advance. All ads are accepted on a “good faith” basis. Terms are “Until Forbid.” Ads are Run of Press (ROP) unless accepted on a premium contract basis. Limited premium space/rates available. To keep rates to a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork, or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. SPMC does not endorse any company, dealer or auction house. Advertising Deadline: Subject to space availability, copy must received by the editor no later than the first day of the month preceding the cover date of the issue (i.e. Feb. 1 for the March/April issue). Camera ready art or electronic ads in pdf format are required. ADVERTISING RATES may be vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but is not guaranteed. All screen should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency, allied numismatic material, publications and related accessories. The SPMC does not guarantee advertisements, but accepts copy in good faith, reserving the right to reject objectionable or inappropriate material or edit copy. The SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. PAPER MONEY Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol.. LIII, No. 4 Whole No. 292 July/August 2014 ISSN 0031-1162 Benny Bolin, Editor The Paper Column—First National Bank of Porto Rico at San Juan ..................................................... 235 by Peter Huntoon The Puerto Rican Junta Issues of 1813 .......................... 254 by Mark Anderson Russian-American Company Scrip ................................. 258 by Kathy Lawrence Mexico Has Printed Its Own Notes Since 1969 .............. 261 by Carlson Chambliss SPMC Celebrates its Inaugural Hall of Fame ....................... 271 From One Big Collection to Another ................................. 272 by Robert Gill Fourth Issue 15ɇ Seal Plate Numbers ............................. 274 by Rick Melamed Fighting Corruption with the Zero Rupee Notes .............. 278 By Loren Gatch An Introduction to CSA Paper Money .............................. 281 By Pierre Fricke About Texas Mostly—Paris, (TX) Bankers. ........................ 285 by Frank Clark Small Notes—A Rare $5 Silver Certificate 629 Mule ...... 287 by Jamie Yakes Uncoupled—Souvenir Notes ......................................... 289 by Joe Boling and Fred Schwan New Obsolete Book Review ............................................ 295 Chump Change—Loren Gatch ...................................... 297 CSA Field Edition 2014 Book Review ............................. 298 President’s Column—Pierre Fricke .................................. 300 Membership Report—Frank Clark ................................... 301 Editor Sez—Benny Bolin ................................................. 302 Memphis Happenings/Information .................................. 303 Money Mart ........................................................................ 310 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 233 Society of Paper Money Collectors The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show in Memphis, TN. Information about the SPMC, including the by-laws and activities can be found at our website, .The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards, but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the Society prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date which can be found on the label of Paper Money. Renewals may be done via the Society website or by check/money order sent to the secretary. Officers and Appointees ELECTED OFFICERS: PRESIDENT--Pierre Fricke, Box 1094, Sudbury, MA 01776 VICE-PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 SECRETARY--Benny Bolin, 101-C North Greenville Ave. #425, Allen, TX 75002 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Jeff Brueggeman, 1032 Lower Brow Rd., Signal Mountain, TN 37377 Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 Kathy Lawrence, 5815 Clendenin Ave., Dallas, TX 75228 Matt Janzen, 3601 Page Drive Apt. 1, Plover, WI 54467 Scott Lindquist, Box 2175, Minot, ND 58702 Fred L. Reed III, P.O. Box 118162, Carrollton, TX 75011-8162 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Lawrence Schuffman, P.O. Box 19, Mount Freedom, NJ 07970 Robert Vandevender, P.O. Box 1505, Jupiter, FL 33468-1505 Wendell A. Wolka, P.O. Box 1211, Greenwood, IN 46142 APPOINTEES: PUBLISHER-EDITOR-----Benny Bolin, 101-C N. Greenville Ave #425, Allen, TX 75002 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 1211 Greenwood, IN 46142 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT- - M ark Anderson, 115 Congress St., Brooklyn, NY 11201 WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 REGIONAL MEETING COORDINATOR--Judith Murphy, Box 24056, Winston-Salem, NC 27114 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Auction Representation 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR HUGH SHULL P.O. Box 2522, Lexington, SC 29071 PH: (803) 996-3660 FAX: (803) 996-4885 SPMC LM 6 BRNA FUN ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 234 Th_ First N[tion[l B[nk of Porto Ri]o [t S[n Ju[n \y P_t_r Huntoon At first blush, The First National Bank of Porto Rico at San Juan organized in 1903 with its modest $100,000 circulation, has the look of possessing all the romance we national bank note collectors love to project onto our favorite banks. That is, a home-grown institution on the cutting edge of some frontier, in this case, our newly liberated far-flung Caribbean outpost. In this vision the bank undoubtedly was managed by men in white tropical suits working under slowly revolving ceiling fans, who routinely wore Panama Hats when they ventured out onto streets populated by indigenous men driving donkey carts. Nothing could be further from the truth. Maybe the bankers wore Panama hats, but the fantasy stops there. In fact, the bank was the wholly owned appendage of a slightly older much larger bank, the American Colonial Bank of San Juan, which in turn was the linchpin American- owned financial institution in an interlocking web of sugar corporations desiring to feast on the newly acquired possession. The American Colonial Bank was the first American bank in Puerto Rico, and was organized and owned by New York venture capitalists. Their primary object was vertical integration of all things sugar on the island as they solidified monopoly control over the production of sugar and turned that pursuit into an industrial behemoth second in size only to the Standard Oil Trust. Figure 1. Note from the first shipment of 10-10-10-20 sheets sent to The First National Bank of Porto Rico, hand signed by president S. O’Donnell and cashier F. M. Welty. Photo courtesy of Andrew Shiva. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 235 The First National Bank of Porto Rico served as their local commercial bank, which provided another avenue for their financial penetration of the economic fabric of Puerto Rico. It could be used to further their primary sugar interests as well as reap other bounty they anticipated from their exploitation of Puerto Rico. San Juan was not some backwater outpost. It was settled in 1509, was initially the most important port in the new world, and served as a major port ever since. In 1903 it was a mature cosmopolitan city, the largest on Puerto Rico, with a rich cultural and historic heritage and its own wealthy elite. The First National Bank of Porto Rico owed its origin to the convergence of three trends: (1) the heady imperial objectives of the United States at the end of the 19th century, (2) vertical integration of the Sugar Trust throughout the Caribbean and beyond, and (3) the rise of industries controlled not by corporate heads versed in their products but rather by capitalists in the form of investment bankers who financed and orchestrated those ventures. The capitalists resided far away in mainland seats of power such as New York, and never laid eyes on their facilities in Puerto Rico. We’ll examine this confluence in broad strokes. Most of the local management of The First National Bank consisted of people brought in from the mainland. Their presence on the board caused a year delay in getting the bank chartered because they had to stay on the island for that period to satisfy the one-year residency requirement. The fact is, The First National Bank of Porto Rico was successful and profitable, but it only lasted until 1911. By then, it had become apparent that its commercial banking functions could just as easily be handled by the mother American Colonial Bank across the street without burdensome Federal oversight, so it was liquidated and its business folded into the parent. Maturation of American Imperialism The Bureau of the Census reported in 1895 that the American frontier was closed; that is, that Americans had explored and colonized all the land in the contiguous United States (Porter and others, 1895). The implications were profound. There were no more vast tracts of free land up for grabs. By the early 1800s, our emerging culture elevated the conquest of the west to a birthright. The western lands were viewed as a gift open to hard working people willing to secure them with their labor. By this time in American history white Americans in their quest for “free” land had shredded the Bill of Rights as it pertained to indigenous peoples and were reaping the bounty of occupying lands formerly owned by the natives who were displaced and largely annihilated. The emerging doctrine found voice in editor John O'Sullivan in the July-August 1845, issue of the Democratic Review, who was writing in support of the annexation of Texas from Mexico during the administration of James Polk (De Voto, 1943). In his words, it was "our manifest destiny to overspread the continent allotted by Providence for the free development of our yearly multiplying millions." This lofty prose resonated with the expansionists, particularly because it made clear that God had provided the opportunity and, by implication, sanctioned the enterprise. Manifest destiny was quickly recast in more eloquent form through the crucial addition of a bit of the flag. It is the country's manifest destiny to overspread and to possess the whole of the continent which Providence has given us for development of the great experiment of liberty. The expansionists burnished over their conquests of native peoples because the opportunity to acquire new land that Providence was providing to them was also obligating them ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 236 to bestow the benefits of civilization, Christianity and liberty on the savage heathens they were overrunning. It was an easy leap to extend the vision of manifest destiny to imperial aspirations. The purchase of Alaska in 1867 had laid the foundation for the idea of acquiring far flung colonies, but the movement took on urgency in the 1890s. Rear Admiral Alfred Thayer Mahan, an eminently influential U. S. Navy geostrategist and historian, championed U. S. overseas imperialism by pointing out that successful projection of U. S. sea power required the acquisition of defensive bases and naval coaling stations in the Caribbean and Pacific. Publication of his ideas in 1890 coincided with a major shipbuilding program to vault the United States into third place among the naval powers. Imperial economic interest in the tropical islands, including Cuba, Puerto Rico, the Dominican Republic, Hawaii and the Philippines, was driven not by the quaint Figure 2. Rear Admiral Alfred Thayer Mahan, a naval strategist, wrote a compelling analysis that supported the acquisition of Caribbean and Pacific islands in order to successfully project American’s naval sword. His ideas were used by expansionists to agitate for American imperialism. Wikipedia photo. visions of pioneers forging their way forward in covered wagons carrying axes and plows as part of their luggage, but rather by capital intensive industrialized production of specific tropical crops being grown in those places where governments were unstable and thus posed a high risk to investment. Sugar would prove to be king, but tobacco, coffee, tea and fruits such as bananas and pineapples were also major considerations. Figure 3. Map showing the location of Puerto Rico in the Caribbean. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 237 There is irony in this list of products. American imperial entrepreneurs had learned their lesson well from the British, particularly from the British West Indies Corporation. The most lucrative commodities to engage in were those that were highly addictive, cheap to produce locally in raw form and readily moved to the motherland for finishing so value-added wealth could not be taxed at the point of origin. Opium production in China was the model for addictive substances, whereas the manufacture of cloth epitomized the value-added dimension because the cotton was grown and shipped from India, transformed into cloth in mills in England, and the cloth shipped back to markets in India. Sugar, coffee and tea were among America's great addictions. Let’s focus on sugar. Cheap, readily available sugar quickly saturated the American food industry within the first decades of the 19th century. The colonial islands were transformed into cane fields, the cane was milled into raw sugar there, the raw sugar was transported to industrial facilities in the United States where it was processed into refined sugar and marketed. Cheap native labor on the islands toiled to see the major value-added percentage of their product accrue to the mainland manufacturing and distribution parts of the chain. The Sugar Trust was forged on the mainland during the 1890s as modern capitalist restructuring took hold in the form of horizontal corporate integration of entire industries. Control was monopolized by an amalgam of corporations welded together through interlocking ownership (Ayala, 1994). This had been accomplished internally within the sugar industry through fierce competition, mergers and buyouts along the lines of Rockefeller’s Standard Oil model. The key players were Henry O. Havemeyer, president of American Sugar Refining Company, whose best known brand was Domino, and James Howell Post, president of the National Sugar Refinery (Ayala (1999, p. 41-43). However, the growing and processing of sugar was scattered throughout the Caribbean and Pacific in large numbers of plantations and processing facilities, mostly on islands governed by Spain. These were largely feudal enterprises and the political environments there were increasingly unstable. Significantly, during the late 1880s, American bankers marshaled the accumulation of money used to fund the integration of the refined sugar interests, so bankers increasingly occupied key positions on the boards of these corporations. Ownership and power gradually began to transfer to this emerging class of investment bankers (Ayala, 1994), a process that was beginning when Puerto Rico came under American control. If the sources of supply could be stabilized, the sugar trust could vertically integrate not only the source of supply but also intermediate raw sugar processing. In an island such as Puerto Rico, this would require construction of infrastructure including roads, railroads, electric power generating capacity, shipping capacity, each of which also provided opportunities for interlocking corporate control and profit. Upgrading the infrastructure would benefit the indigenous population. Investment bankers would play a significant role by providing the money required for the enterprise. Extension of the concept of manifest destiny into an imperial context was driven by a sense of lost opportunity on the part of the American public over the closing of the frontier as well as Federal interest in the strategic military advantages inherent in owning possessions and growing institutional interest in economic imperialism by the moneyed elite. There were great financial incentives for corporations to favor imperial conquest, so they aggressively agitated for ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 238 it politically. Corporations desired the social and political stability that imperialism could provide as well as tax and tariff concessions that undoubtedly would attend it. However, the United States faced the problem that the available global real estate already had been carved up by the European powers. Spain happened to own most of the islands that we coveted. Her power and wealth were seriously dissipated, her mainland South and Central American colonies long lost to independence movements, and her morale sapped by fighting the strengthening Cuban insurgency. Consequently we adopted a time honored European approach to expanding our colonial holdings: simply take them from an existing weak colonial rival. We instigated the Spanish-American War of 1898 largely using the lofty pretext of liberating Cubans from an oppressive overlord. Our troops were not sent to Spain, but rather to Cuba, the Philippines and Puerto Rico, her vulnerable weakly defended possessions. U. S. General Nelson A. Miles invaded Puerto Rico on July 25, 1898, by landing 3,000 troops at Guanica on the southern coast. Many Puerto Ricans welcomed their arrival as liberators and bearers of the American ideals of individual freedom and liberty, political democracy and economic progress. The treaty ending the Spanish-American War was signed December 10, 1898, and ratified by the Senate February 6, 1899. The United States acquired Puerto Rico as part of the settlement, as well as Cuba, the Philippines and Guam. In fact, as a result of the war, the United States grabbed so much in the way of territorial possessions we felt a bit guilty, so as part of the peace treaty, we paid Spain a consideration of $20,000,000 to level the table. In the meantime intertwined American missionary and sugar interests, which had gained control of the land and economy of the Hawaiian Islands, overthrew the Hawaiian Monarchy in 1893 and established the Republic of Hawaii. They then petitioned Congress to annex it, a feat accomplished in the midst of the Spanish-American War when President McKinley signed the Congressional resolution allowing for the annexation of Hawaii on July 7, 1898. Figure 4. Republican President William McKinley presided over the launch of America’s golden era of colonial conquest with the annexation of Hawaii and the bounty of the Spanish- American War that yielded Puerto Rico. With Hawaii, Wake, Guam and the Philippines, the United States now possessed a string of naval coaling stations that marched across the Pacific to our concession in Shanghai. Puerto Rico and Cuba tied up the Caribbean for us, & served as an umbrella over our future construction of the Panama Canal. The door was flung wide open for the exploitation of Puerto Rico. There was a problem with it though. Puerto Rico was populated mostly by Spanish-speaking very poor people of color, most of them Catholics and with little education. Republican pro-expansionists couldn’t allow the place to be annexed as a state because it certainly would vote Democratic. Puerto Rican Governance Puerto Rico was governed by a succession of three military governors from October 1898 to May 1900. Mayor General John R. Brooke, the first military governor, ordered that henceforth the spelling of Puerto Rico would be Americanized to Porto Rico. This was used as the official spelling until 1932 (Dietz, 1986, p. 85).The first organic act establishing a civilian government was passed by Congress and signed into law by President McKinley on April 12, 1900. It was called the Foraker Act, after Ohio Republican Senator Joseph B. Foraker who sponsored it. Its primary author was Secretary of War Elihu Root. The act replaced military rule with a civilian government but affirmed the colonial status of Puerto Rico and endowed Puerto Ricans with Puerto Rican citizenship, an ambiguous designation on the international stage. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 239 Figure 5. Ohio Republican Senator Joseph B. Foraker (left) sponsored the organic act that affirmed the political status of Puerto Rico as a colony. The primary author of the act was Secretary of War Elihu Root (right). The act threw open the door for Puerto Rico to be exploited by sugar interests. Wikipedia photos. The provisions in the Foraker Act tilted advantage to the North Americans. Key officials were appointed by the War Department and President with approval of the Congress. The principal decision-making body consisted of an 11-member Executive Council appointed by the President with Puerto Ricans in the minority that functioned as a cabinet to the governor. A house of delegates was established but the governor had veto power over its decisions and Congress had veto power over its legislation. Tariffs were the discretion of the U. S. Congress and shipping to and from the island was required to be carried on U. S. flagged vessels. Dietz (1986, p. 90) unequivocally concluded: “The local economy was left defenseless against the inflow of U. S. products and capital - which, in fact, was precisely what the Foraker Act intended.” The U. S. Supreme Court in 1901 ruled that Puerto Rico was a “non-incorporated territory” and that the provisions and protections of the Constitution did not automatically apply to its citizens. This solidified its status as a colony. The Jones Act passed in 1917 during Woodrow Wilson’s presidency marginally liberalized things but continued to affirm Puerto Rico’s colonial status. That act, named for Representative William Atkinson Jones, (D-Virginia), chair of the House Committee on Insular Affairs, created a bicameral elective legislature. Males over 21 were granted suffrage. Key executive officials including the governor were still appointed by the U. S. President, and the governor could veto acts of the legislature although he could be overridden by a two-thirds vote of both houses. Puerto Ricans were conveniently granted U. S. citizenship just in time for 20,000 of them to be drafted into World War I. The Sugar Economy Sugar quickly rocketed to the predominant export crop and largest sector of the economy after the U. S. invasion. The 1930 production of sugar was more than ten times what it had been in 1900 (Dietz, 1986, p. 104). Most of it was exported in raw form to U. S. mainland refineries. During the same period the total number of acres devoted to sugar production in Puerto Rico doubled, the acres owned by or controlled by U. S. corporations increased dramatically at the expense of indigenous ownership, and the processing plants increasingly came under U. S. corporate control. Early on land was predominantly acquired by the U. S. sugar companies through outright purchases using mainland capital made more valuable by devaluation of Puerto Rican currency against the dollar. U. S. banks facilitated the concentration of land under U. S. corporate ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 240 domination by loaning, often at usury rates of 9 to 12 percent, to indigenous growers who collateralized their loans by mortgaging their property. Growers who could not repay either sold to the sugar companies to pay off these debts or the banks foreclosed on their land and sold it to the companies. Of course, the insidious aspect of this was that the banks and sugar corporations had interlocking ownership backed by mainland capital. American Colonial Bank In order to understand how The First National Bank of Porto Rico fit in to the Puerto Rican mosaic, it is necessary to profile its parent, the American Colonial Bank in San Juan. Bankers saw opportunity in establishing banks in the lands ceded by Spain. The first American owned bank established on Puerto Rico was the American Colonial Bank, which was organized with $400,000 gold in April 1899 under West Virginia banking law by Muller, Schall & Co., a New York investment banking firm located at 45 William Street in partnership with the Cuban-American Bank owned by Juan M. Ceballos (Dana, 1918). The board of American Colonial was dominated by New York venture capitalists and mainland sugar magnates. For example, Muller, Schall & Co. helped capitalized numerous sugar enterprises besides the American Colonial Bank including South Porto Rico Sugar Company, which operated Guanica Central, the largest mill on Puerto Rico (Ayala, 1994, p. 210). Figure 6. American Colonial Bank owned The First National Bank of Porto Rico. The American Colonial building shown is still standing at the corner of Calle Recinto Sur (on right) and Calle San Justo. The Federal Court House, which post-dates this photo, is across the street to the right. The bank was founded in 1899 and by 1910 was the largest bank in Puerto Rico. Restaurante Triana currently occupies the former quarters of the bank complete with the vault door with the name of the bank preserved on it. Jose Rogriguez photo. Juan Ceballos, a Cuban capitalist with diverse multinational interests, cut a wide figure across the Caribbean and Mexico. He invested in league with New York capitalists in sugar production, shipping, refining and brewing and served on innumerable corporate boards (Hart, 2002, p. 93). Another notable director was sugar magnate James Howell Post, president and director of the National Sugar Refining Company in New Jersey, who also served on the boards of numerous sugar and sugar related companies throughout the Caribbean and Hawaii. To name just a few, in time Post was on the boards of Holly Sugar Corporation, American Hawaiian Steamship Company and National City Bank of New York. National City Bank also was seriously involved in sugar and a major competitor to American Colonial Bank on Puerto Rico (Ayala, 1994, p. 203, 208). At the outset, William Schall was installed as president, and E. L. Arnold cashier of American Colonial Bank. Arnold formerly was the vice president of The Citizens National Bank of New Philadelphia, Ohio, and he eventually became the president of The First National Bank of Porto Rico during the 1908-1910 era. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 241 American Colonial was the depository for the insular government of Puerto Rico, and in 1900 was named the U. S. depository for Puerto Rico. As such, it was considered the official bank of the island by the banking community (Chicago Banker, 1900, p. 325-326). By 1910, American Colonial was the largest bank in Puerto Rico and William Schall Jr. of Muller, Schall & Co. had become its president. The directors of American Colonial Bank desired to establish a national bank in San Juan as quickly as possible after American Colonial was up and running to further their interests, especially to serve as another U. S. depository because there was considerable Federal money required for the administration of the military occupation. Before granting a charter for their proposed national bank, then current Comptroller of the Currency William B. Ridgely requested an opinion from the U. S. Attorney General about the legality of chartering national banks in the former Spanish possessions. Ridgely (1902, p. 52-53) wrote the following pertaining to Puerto Rico in his annual report, which provides insights into the origin of this most interesting bank. Subsequent to the passage of the act extending the laws of the United States over Porto Rico applications have been filed for authority to organize national banking associations at San Juan, Figure 7. We are standing in Calle Recinto Sur with The First National Bank on the left and American Colonial Bank on the right, which is undergoing renovations in 1910. The sign for The First National Bank is across the second story window two in from Calle San Justo. The large paved square in front of The First National Bank is Plaza Francia. Jose Rogriguez photo. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 242 P. R., and other places in the island. The question of authority for the organization of national banks in Porto Rico was submitted to the Attorney-General, who, under date of June, 1900, stated: By letter of May 24 you [Secretary of the Treasury] advised me that the Comptroller of the Currency is receiving applications for the granting of national-bank charters in the island of Porto Rico, and you request my opinion as to whether or not the national banking laws of the United States are now applicable to that island. By the Paris treaty between the United States and Spain, Porto Rico was ceded to the United States and became subject to the jurisdiction of this Government. Before the ratification of the treaty of Paris the island had been in the occupation of the military forces of the United States, and the government of the same was carried on under the law of belligerent right by means of the military forces, under the direction of the President of the United States. This condition continued after the ratification of the treaty of peace until Congress, exercising the power to dispose of and make all needful rules and regulations respecting the territory belonging to the United States, passed the act entitled "An act temporarily to provide revenues and a civil government for Porto Rico, and for other purposes," approved April 12, 1900. This act took effect on the 1st day of May, 1900. Section 14 of said act is as follows: “That the statutory laws of the United States not locally inapplicable, except as hereinbefore or hereinafter otherwise provided, shall have the same force and effect in Porto Rico as in the United States, except the internal-revenue laws, which in view of the provisions of section 3, shall not have force and effect in Porto Rico.” By virtue of this provision, a broad extension of all the statutory laws of the United States, not locally inapplicable, is made to the island of Porto Rico, the only exception being the internal-revenue laws, which are excepted by name, and such other laws as are in the said act, otherwise provided. This language is broad enough to extend to Porto Rico the laws relating to the organization and powers of national banks, Figure 8. William B. Ridgely was Comptroller of the Currency from 1901 to 1908. He devoted considerable attention to the legality of chartering national banks in Puerto Rico in his 1902 annual report to Congress. Photo from Kane (1922). unless there be in such laws something indicating that they are locally inapplicable to Porto Rico, or that they are so locally applicable to some other place or places of specific character as to make them practically inapplicable locally to Porto Rico. An examination of the various sections of the Revised Statutes and subsequent acts of Congress relative to national banks discloses no provisions which are locally inapplicable to Porto Rico. There seems to be in the structure of the national banking laws no general provisions which can not be carried into force and effect in Porto Rico equally with all of the various States and Territories to which the laws were originally applied. I can find no reason to hold that the statutes relative to the organization and powers of national banks have not, by section 14 of the Porto Rican act, above referred to, been extended to that island. The language of that ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 243 section is broad enough, and in my opinion does authorize the organization and carrying on of national banks in Porto Rico. As citizens of Porto Rico are not characterized as citizens of the United States by Congressional enactment, the position was taken that to effect the organization of a national bank would require at least five of the shareholders, to be elected as directors, to be citizens of the United States, and that at least three-fourths of the number, residents of the island for at least one year prior to their election and during their continuance in office. Pending the existence of conditions which would enable this provision of the law to be complied with, certain citizens of the United States organized The American Colonial Bank, under authority of a charter obtained from the State of West Virginia, which institution has been in operation for some time. The application for authority to organize The First National Bank of Porto Rico at San Juan, by those interested in the bank named, was renewed from time to time, until in the early part of November, 1902 it was possible to comply with the conditions precedent to the organization of the association. The bank was chartered on November 10, with capital of $100,000, and a board of directors elected, who are citizens of the United States, and the requisite proportion residents also of the island. It is understood to be the intention of the organizers to gradually liquidate The American Colonial Bank and transfer its business to The First National Bank of Porto Rico, and to increase the capital stock as conditions demand. Things worked out just the opposite of Ridgely’s vision, because The First National Bank eventually transferred its business to American Colonial! Eventually National City Bank of New York bought American Colonial in 1930 (Dietz, 1986, p. 126). Then National City almost collapsed when European sugar beet production recovered after World War I, which drove sugar prices down, causing its long-serving chairman James Stillman to resign (Alaya, 1994, p. 209). The First National Bank The First National Bank of Porto Rico at San Juan was organized October 27, 1902, granted charter 6484 November 10th, and opened January 5, 1903. It was the only bank to perfect an organization in Puerto Rico during the note issuing period, or in any of the other acquired Spanish lands for that matter. Figure 9. This 1911 photo is looking north. The First National Bank occupied quarters in the Banco Territorial y Agricola building, which faces Plaza Francia. Plaza Francia is the paved area in front of the building with Calle San Justo on the east side. Notice "First National Bank" on the placard above the second window in from the right. This building and Plaza Francia were replaced by the Banco Popular building in the 1940s. Carli’s Fine Bistro & Piano, now occupies the Banco Popular building just about where The First National Bank used to be. Jose Rogriguez photo. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 244 The initial slate of stockholders in the bank was the following (Comptroller of the Currency, undated): Shares 10 Name E. L. Arnold Address New York City Occupation banker 10 A. Crosas San Juan merchant 10 O. E. Schnitzpahn San Juan cashier 10 S. M. Woodson San Juan merchant 10 F. M. Welty San Juan cashier 950 American Colonial Bank San Juan bank Clearly The First National Bank was a wholly-owned subsidiary of American Colonial Bank with the non-institutional owners simply holding sufficient shares to qualify as directors. S. O’Donnell was elected the first president along with F. M. Welty as cashier. Andres Crosas was the most influential Puerto Rican on the board. Eventually he was installed as president in 1911 and presided over the bank as its affairs were wound up and its business folded into American Colonial. Crosas, a self-proclaimed merchant, was a well-connected civic leader and capitalist, a Democrat, and a pro-annexation advocate (Costa, 2007). He had been appointed by President McKinley to Puerto Rico’s Executive Committee in 1900 at the time the civilian government was established and served in that capacity until he resigned in 1907. During this period he was director of health, charities, and corrections for the Puerto Rican Beneficence Board. Frank M. Welty was a rising star who rose to vice president of American Colonial Bank. When Müller, Schall & Co., founders of American Colonial Bank, liquidated in January 1918, to reorganize as William Schall & Co, the two original partners, William Schall and Carl Müller, were joined by others including Welty (Dana, 1918). Figure 10. Andres Crosas was a prominent civic leader and politically well-connected Puerto Rican capitalist who served as president of The First National Bank of Porto Rico in 1911. He was appointed to the Puerto Rican Executive Committee by President William McKinley in 1901 and served until 1907. Photo from Costa (2007, p 61). The First National Bank was located in what is now called Old San Juan. The bank occupied quarters on the second floor of the Banco Territorial y Agricola building. It faced south toward a setback called Plaza Francia on the north side of Calle Recinto Sur. The First National’s parent, the American Colonial Bank, was across Calle San Justo immediately to the east. The American Colonial Building faces the younger Federal Court House building, which is on the south side of Calle Recinto Sur. The American Colonial Bank building still stands; however the Banco Territorial y Agricola building was razed in the 1940s and replace by the Banco Popular building. The Banco Popular building consumed both the space occupied by the Banco Territorial y Agricola building and Plaza Francia so it fronts Calle Recinto Sur. The National City Bank of New York built new quarters on the corner to the west of the Banco Popular building years after it purchase American Colonial and long after The First National Bank was gone. When you go to San Juan, you can dine at Restaurante Triana, which occupies the former quarters of American Colonial Bank complete with vault door with the name of that bank on it. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 245 If you are really feeling nostalgic you can go to Carli's Fine Bistro & Piano, which occupies the former Banco Popular building just about at the spot where The First National Bank used to be. Both are high end eateries. Porto Rico National Bank Notes Porto Rico national bank notes are among the most highly prized of all nationals because only the San Juan bank issued them, and only in modest quantities. Fourteen are now reported, thirteen Series of 1902 red seals and one $10 date back. The red seals consist of eight $10s, two each of the $20s and $50s and one $100. This rate of survival is unusually high for a bank having a $100,000 circulation from the 1902-1911 era. Table 1. Vital statistics pertaining to the national bank note issues of The First National Bank of Porto Rico at San Juan (6484). Serial numbers shown are bank sheet serial numbers. Data from Comptroller of the Currency (1863-1935) and Comptroller of the Currency (1903-1911). First National Bank organized: Oct 27, 1902 First National Bank chartered: Nov 10, 1902 2% bonds purchased to secure circulation: Nov 10, 1902 $50,000 Jan 11, 1903 $50,000 $100,000 Year 1903 President S. O’Donnell Cashier F. M. Welty Circulation 100,000 Resources 313,279 1904 S. O’Donnell F. M. Welty 100,000 439,318 1905 S. O’Donnell F. M. Welty 100,000 460,497 1906 S. O’Donnell F. M. Welty 100,000 482276 1907 --- F. M. Welty 100,000 463,971 1908 E. L. Arnold F. M. Welty 100,000 477,327 1909 E. L. Arnold Wm B. Hamilton 100,000 509,097 1910 E. L. Arnold O. E. Schnitzspahn 100,000 528,566 1911 Andres Crosas O. E. Schnitzpahn 100,000 360,223 Printings received by the Comptroller: 1902 red seals 10-10-10-20 Dec 20, 1902 1-500 A416413-A416912 Jan 19, 1903 501-1200 A439215-A439914 Nov 16, 1903 1201-1600 B356421-B356820 Apr 21, 1906 1601-2000 N836948-N837347 Oct 20, 1908 2001-2400 Y421046-Y421445 50-100 Dec 17, 1902 1-240 A13843-A14082 Jan 17, 1903 241-340 A14203-A14302 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 246 Nov 20, 1904 341-540 A59060-A59259 Apr 23, 1906 541-807 A264333-A264599 Oct 20, 1908 808-847 A424642-A424681 1902 date backs 10-10-10-20 Jan 30, 1909 1-1200 H464899-H466098 Jun 3, 1911 1201-2200 not recorded 50-100 Feb 3, 1909 1-200 A169341-A169540 First red seals shipped to bank: Dec 17, 1902 50-100 1-200 Dec 20, 1902 10-10-10-20 1-400 Jan 23, 1903 10-10-10-20 401-1100 Jan 23, 1903 50-100 201-300 First redemptions logged in: notes Jul 23, 1903 $10 30 $20 Oct 2, 1903 $50 10 6 $100 6 Last red seals and first date backs shipped to bank: Jul 19, 1909 10-10-10-20 2400 & 1 Sep 20, 1910 50-100 847 & 1 Last date backs shipped to bank: May 29, 1911 50-100 22 Sep 14, 1911 10-10-10-20 1019 Bankers vote to voluntarily liquidate: Sep 8, 1911 Notice of liquidation received by Comptroller: Oct 14, 1911 Unissued 1902 date backs canceled: Nov 21, 1911 10-10-10-20 1020-2200 50-100 23-200 Bonds sold: Dec 4, 1911 The note illustrated is the newest addition to the census and is, in my opinion, one of the nicest of the lot. I am drawn to it because it has excellent grade, it is from the first shipment of 400 sheets of 10-10-10-20s sent to the bank on December 20, 1902, it has excellent penned signatures of the first pair of bank officers, and it is undoctored. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 247 Figure 11. The organization report reveals that the bankers placed San Juan on the Island of Porto Rico for want of an official status for the island. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 248 Figure 12. The title used on the charter incorporated the proposition “at” in the bank title, whereas it was inadvertently omitted from the organization report. The title as shown on the charter was the one that appeared on the notes. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 249 The title and location provided by the bankers was The First National Bank of Porto Rico at San Juan, Island of Porto Rico. They used the Americanized spelling for Puerto Rico, which had been mandated by the time they organized, and they specified the location of San Juan as being on the Island of Porto Rico, as revealed by the organization report. Notice that someone inadvertently omitted “at” from the bank title on the Organization Report whereas it is included on the charter. The Big Picture It is difficult for a hometown national bank note romantic to acknowledge that one of his favorite banks was but a cog in a far larger corporate enterprise and a minor one at that. There is more charm in thinking that our notes represent the fruits of what has been euphemistically but often inaccurately labeled home-grown main street banking by our peers. The concept of locally owned unit banks serving small geographic areas may have been an initial objective behind national banking when it was established in 1863, but this objective failed to account for the creativity of humans to circumvent the intent of the law to gain power and advantage. First came chain banking where one interest owned several seemingly independent banks, then came bank holding companies that owned several banks, and by the turn of the 20th century there were complex corporate structures welded by interlocking ownership that possessed banks as one part of their overall business such as the one under consideration. Next would come branch banking, first on a state level, then a national level. The ingenuity of capitalists to invent ever more complex corporate structures following the Civil War outpaced the ability of Federal regulators to stay ahead of the game. Big mainland money moved into Puerto Rico after the U. S. invasion in 1898, most of it to develop and exploit sugar production. Mainland control was maintained over the Puerto Rican government by the politicians and over the island’s capital by mainland venture capitalists working in harmony. The exploitation of the colony was loaded in favor of powerful mainland financial interests through the provisions of the Foraker Act of 1901, which defined and constrained the civilian government. Outside capital flooded into the colony after the invasion and the capitalists established the American Colonial Bank in 1899. The directors of that bank launched The First National Bank of Porto Rico as soon as directors they brought in from the mainland met the one-year residency requirement of national banking law. The First National Bank was designed to be their commercial banking appendage. The First National Bank was a successful enterprise, but it was heavily regulated so it had to be operated conservatively. National banks were designed primarily to make short term commercial loans to local businesses. They were excluded from real estate loans. The big action in Puerto Rico was in land and the mainland sugar corporations that were penetrating the economy were primarily interested in land as they vertically integrated the sugar industry. Also their corporate reach extended far beyond San Juan to the entire Caribbean. In reality, The First National Bank was a small potatoes operation for the sugar interests that owned it. American Colonial Bank operated under a far less restrictive West Virginia charter and could engage in land as well as far flung enterprises. In comparison the rate of return from The First National Bank was not what these men were used to. Money is a very fluid commodity in the hands of these types and they saw that American Colonial readily could handle the business held by The First National. It was only a matter of time before they phased out The First National and folded its business into American Colonial. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 250 This was accomplished with the liquidation of The First National in 1911. By then the hot money was gone in the pursuit of more lucrative opportunities elsewhere. The talented mainland officers from The First National were bounced up the chain into positions in American Colonial Bank and Schall, Muller & Co. It is an important historical fact that no other national banks were organized in the former Spanish lands, not Cuba, the Philippines or Guam. The reason was that such banks simply were not flexible enough to meet the needs of the heady colonial banking environment. References Cited Ayala, Cesar J., 1994, Finance capital vs. managerial control in a colonial sphere, United States agribusiness corporations in Puerto Rico, 1894-1934: Research in Political Economy, v. 14, p. 195-219. Ayala, Cesar J., 1999, American Sugar Kingdom, the plantation economy of the Spanish Caribbean 1898-1934: University of North Carolina Press, 323 p. The Chicago Banker, May 1900, Chicago Banking Company, Chicago, IL, v. 5, no. 1, 392 p. Comptroller of the Currency, undated, National bank correspondence files: U. S. National Archives, record group 101, College Park, MD. Costa, Humberto, 2007, The notes of the island of Puerto Rico, the Humberto Costa Collection: Westernbank Puerto Rico, Mayaguez, PR, 219 p. Dana, Jan 5, 1918, Banking and financial news, in: The Commercial & Financial Chronicle: William B. Dana Co., New York, NY, v. 106, no. 2741, p. 47. Dietz, James L., 1986, Economic history of Puerto Rico, institutional change and capitalist development: Princeton University Press, 337 p. De Voto, Bernard A., 1943, The year of decision, 1846: Little, Brown and Company, Boston, MA, 538 p. Hart, John Mason, 2002, Empire and revolution, the Americans in Mexico since the Civil War: University of California Press, 683 p. Kane, Thomas P., 1922, The romance and tragedy of banking: The Bankers Publishing Company, New York, 549 p. Mahan, Alfred Thayer, 1890, The influence of sea power upon history, 1660-1783: Little, Brown and Company, Boston, MA, 557 p. Porter, Robert; Henry Gannett and William Hunt, 1895, Progress of the Nation, p. xviii-xxxiv: in, Report on population of the United States at the Eleventh Census, 1890, Part 1, Bureau of the Census, U. S. Government Printing Office. Ridgely, William B., 1902, Annual report of the Comptroller of the Currency to the Second Session of the Fifty-Seventh Congress: Government Printing Office, Washington, DC, v.1, 1081 p. Rogriguez, Jose, Archivo historico y fotografico de Puerto Rico: ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 251 AUTHENTICATION EXPERT GRADING ENCAPSULATION IMAGING INTEGRITY IMPARTIALITY Independent, expert grading. A collecting environment that benefits the collector. PMG values what our independence brings to the professional certification of US and World currency. 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PMG’s team is prohibited from commercially ne of the great benefits of PMG grading is that we are truly independentO showcased online in the PMG Registry. a free resource on PMG’s website, and all PMG certified currency can be comprehensive population report of notes graded by PMG is available as —notes to date certification and authentication, having graded more than half a million As a result, PMG has become the most trusted name in currency including the Bebee and Harry Bass Jr. collections. A ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 252 When it comes to achieving the highest prices realized at auction, there is no comparison. Consign with us to the August 2014 World’s Fair of Money — the best choice for U.S. currency and world paper money. 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[Non-professionally] translated, the document reads as follows: NATIONAL TREASURY  OF PUERTO RICO  By  this  solemn  document,  at  [four  months]  from  its  date,  it will  be  paid  to  [Don  Franciso  Puig  y  Gibent]  twenty‐five  pesos  in  provisional  money  in  paper money, which has been committed to as a  loan  in accordance with  the act of  the Provisional  Junta of  Hacienda  of  March  22nd,  of  this  year.    The    interest  owed will be paid at the rate of six percent annually, in  silver specie. This obligation may be endorsed, as is the  case  with  scrip  and    commercial  payments,  being  presented  at  the  Treasury  persons  known,  for  the  payment of principal and  the  collection of  interest by  the owed parties.  Dated in Puerto Rico, the [4th of May] of 1813.  Juan Patino  Jose Bacener  Treasurer  Accountant  While this instrument is not listed in the Pick Catalog [14th Ed.], it is listed in the definitive Spanish Edifil Specialized Catalog [Madrid, May 2002], in the Puerto Rican Section, as “PR2.” Interestingly, Edifil PR1, which is listed in the Pick Catalog [Pick 2a/2b], is an 8 reales note dated 1813, and bears the identical signatures of Treasurer Patino and Accountant Bacener. The distinction made by the cataloguers in not listing the 25 peso instrument is understandable, given its having been made payable to a specific individual and carrying a maturity and rate of interest. This makes it seem more akin to a bond than a piece of currency. On the other hand, the body of the text specifically permits transfer by endorsement [provided the eventual presenter is “known”], which suggests that movement from hand to hand was expected. Providing the analogy to commercial and scrip payments suggests that this was issued with liquidity and commerce in mind. These are big documents – 12.5” (315mm) by 8” (200mm). They exist with and without endorsement. The following example, issued June 12th, 1813, carries on the verso an endorsement dated four days after its issue, payable to [apparently] a “Don Francisco Puigso y Givex,” signed by the original owner, Don Salvador Blanch: ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 254 Interestingly, at the bottom of the June 12th issue, there is the beginning of a written notation: This instruction, which continues on the reverse, translates as “For this quantity, no interest shall be paid at maturity, per the decision of [what appears to the writer to be] the superintendent.” This order is signed [again] by Treasurer Patino and Accountant Bacener, followed by Don Salvador’s endorsement: In Tghusi In ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 255 To fully understand the nature of these issues, and why [in the writer’s experience], when they appear in the market, they appear unredeemed and in high grade, some history is worth revisiting: Much could be written here about the gullibility of Spain’s King Charles IV, the rapacity of Napoleon, and the betrayals that led to the Peninsular War [1807 to 1814]. Suffice it to say in 1808 Napoleon invades Spain, resistance on the ground is inadequate to repulse the invaders, and Napoleon’s brother Joseph is promptly placed on the Spanish throne. In reaction to this new administration, several local municipalities form “juntas” to assist in governing at the local level. In the larger capitals, “Supreme Juntas” are formed, and colonial dominions all over Spanish America do the same, Puerto Rico included. The juntas formed at the time are far from revolutionary, consisting of city councils, prominent citizens, influential politicians, all engaged in constructive patriotic activity. Ultimately, a "Supreme Central and Governmental Junta of Spain and the Indies" meets in Aranjuez on 25 September 1808, with the Conde de Floridablanca as its president. Depiction of Count Floridablanca, on the Spanish 500 peseta note of July 1st, 1884, Pick 32, Edifil B74  [collection of the author]  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 256 The aging Floridablanca passes away shortly after its convention, but in 1809, recognizing the political and economic importance of Puerto Rico, the Supreme Central Junta recognizes Puerto Rico as an “Overseas Province,” giving the island’s citizens the right to vote for its own delegates. By early 1810, concern over Spanish military losses results in the dissolution of the Supreme Central Junta, which is replaced with a five person “Regency Council.” The Regency Council is charged with and convenes the body which will effectively rule much of Spain in exile until the monarchy is restored, the Cortes de Cadiz. While word of the Spanish troubles, when it reaches South and Central America, gives rise to many of the Spanish colonies ratcheting up already active debate over their right to govern themselves and moving forward with their own independencies, this does not occur in Puerto Rico. Cognizant of their dependence on Spain's administrative and military assistance, Puerto Rico sends a delegate to the Cortes, who serves for three years before his death. In 1815, fealty is rewarded when the Spanish government, restored under King Ferdinand VII and back in operation in Madrid, passes legislation which provides significant liberties to the island, allowing immigration by Catholics, land grants to new immigrants, and expands trade. The dissolution of the overarching Spanish Supreme Central Junta had no effect on the grassroots and regional Juntas, and Puerto Rico was no exception. As the 1813 issue we are discussing indicates, the sovereign Treasury of Puerto Rico is as of March 22nd of that year clearly subject to the administration of the Puerto Rican “Provisional Junta of Hacienda.” In this context, “hacienda” does not refer to an estate or ranch or farm. Use of the term at the Ministry or State level suggests a revenue, treasury or taxation authority. The author is not aware of any of these instruments which bear any sign of redemption. This fact and the generally high grades of the [relatively few] examples he has inspected, despite the stated permission to endorse, suggest that these instruments did not see long life, frequent endorsement, or extended circulation. It could be posited that upon the return to the throne of Ferdinand VII, that obligations incurred or acts passed by the juntas were disavowed. Any information as readers can supply about these interesting instruments and circumstances would be most appreciated by the author. Acknowledgements: 1] Standard Catalog of World Paper Money – General Issues, 14th Edition, F and W Publications, Iola WI 2] Catalogo Especializado de Billetes de Espana, 3rd Edition, Edifil, S.A., Madrid, Spain Mark Anderson, the author and President Pierre Fricke at the SPMC breakfast in Memphis. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 257 Count Rumyantsev Russian-American Company Scrip 1816-1852: Popularly Referred to as Walrus Skin Notes by Kathy Lawrence As a cataloger of paper money, coins, tokens and medals for many years, I am frequently asked which of the items I have described are my favorites. Although there is not a short answer to that question as my interests are exceedingly diverse, a common theme would have to be items with close ties to history. Among my many favorites are two Russian‐American Company notes I cataloged for Heritage Auctions a few years ago, which appeared in separate auctions, one shown at right. As is often the case, the appearance of one rare piece often serves to bring others to view, as happened then. One of the primary businesses of the Russian‐ American Company was fur trading. The notes produced by the Russian‐American Company are often referred to as "walrus or sealskin money" because some of the notes were actually printed on walrus skins, although many were printed on parchment. Otter skins were shipped in waterproof walrus skin bags and the bags were then recycled to produce the notes. In Russia the notes were known as Kozhanye (skins). The Russian‐American Company issued notes from 1816 until 1852, with seven different denominations having been reported: 10, 25, and 50 Kopeks along with 1, 5, 10, and 25 Roubles. Notes were issued in 1816, 1822, 1826, 1834, and 1852. Chartered by Czar Paul I in 1799, the state‐sponsored Russian‐American Company (RAC) was Russia’s first joint stock company and held an initial, renewable charter of twenty years, with the Czar receiving one third of the profits. Though lesser‐known than some of its counterparts, the company was similar in scope to other European expansion efforts into the New World, including Hudson's Bay Company and the Dutch East India Company, with the Russian‐American Company granted a monopoly on trade in Russian America. Fur trading, largely sea otters, was a major component of their money making efforts. The state‐sponsored activity followed several private attempts in the same vein. The Ministry of Commerce of Imperial Russia provided direct control of the company. The initial minister was the influential Nikolai Petrovich Rumyantsev who served until 1808 and had the company’s headquarters moved from Irkutsk to St. Petersburg in 1801. In the beginning, merchants served as the major stockholders, however that later changed to the country’s nobility and aristocracy. Russia’s first circumnavigation of the globe, taking place from 1803 to 1806, was funded by Count Rumyantsev, as well as a subsequent expedition in 1814‐1816. The trips were quite successful and provided much useful data concerning native animals and plants as well as the inhabitants in both Alaska and California. Northern California’s Rumyantsev (Bodega) Bay was named for him during the Russian‐California period (1812–42) of Fort Ross. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 258 Rumyantsev was appointed Foreign Minister and Imperial Chancellor in 1808 and served in that capacity until 1812. During that period, he collected massive amounts of rare coins, maps, manuscripts, and historical documents. His materials helped form the Rumyantsev Museum in Moscow, which later became the State Russian Library. Agreements were in place with the three countries controlling North America; Spain, Great Britain, and the United States, granting the RAC control over the territory in North America above 54°40′ (though in 1821, the czar expanded the Russian territory to 51° by decree). The Russian‐American Company territory included the Aleutian Islands, Alaska, and extended as far south as present‐day Northern California. Beginning in 1769, Spanish missionaries erected 21 missions along the California coastline from San Diego to Sonoma, with Mexico not receiving her independence until 1821. Canada was not granted dominion status by Great Britain until 1867. A number of settlements were established by the Russian‐ American Company, including one in 1804 at Novo‐Arkhangelsk, known today as Sitka, Alaska. That location was the scene of successful maritime trade. Later settlements included Fort Ross, established in 1812 and located in today’s Sonoma County, California. The state‐sponsored trading company also had Fort Elizabeth built on the island of Kauai, Hawaii in an attempt to gain influence there as well. The Russians ultimately failed to establish a large, permanent settlement of Russians due to a number of factors, including the unfavorable climate at some of their settlements, difficulty obtaining enough food and provisions despite attempts at farming and raising livestock, declining profits (due to a decrease in the number of fur‐bearing animals, transportation costs, and other factors), the increasing presence of other nations, and the Russian desire to expand into newer, more promising territories. After thirty years, the approximately 100 colonists left Fort Ross on January 1, 1842. Twenty‐five years later, in 1867, U.S. Secretary of State William H. Seward negotiated the sale of Alaska to the United States for $7 million dollars and the RAC ceased operations there as well. The purchase was known as "Seward's Folly" until gold was discovered. An estimated 150‐200 total pieces of Russian‐American Company scrip are believed to survive today. The majority of the approximately 20 known 1 Rouble denomination examples are housed in museums around the world: including the Hermitage, the Museum of Anthropology and Ethnography in St. Petersburg, the Smithsonian, the National Museum in Helsinki, and the Ulster Museum in Belfast; leaving very few pieces available to private collectors. Examples rarely appear at auction, though a few collections have been sold over the years, including eight notes in the March 1982 Bowers and Ruddy Galleries Western Numismatic Americana sale. The prices realized ranged from $425 to $3,200, aside from lot 352 which contained a “Unique Specimen of a 25 Rouble Walrus Skin Note,” hammering for $15,000. Part VIII of the John J. Ford, Jr. Collection, offered January 18‐19, 2005 included six pieces. The prices realized for those notes ranged from $7,000 to $9,000. The first of the two specimens offered by Heritage Auctions appeared in their 2010 June Memphis Signature Currency Auction as lot 12205. That 1 rouble note was graded by PMG as Choice Very Fine 35 Net and realized $18,975. Company Flag ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 259 Common Obverse 50 Kopek25 Kopek 10 Kopek1 Rouble The second example, a 25 kopek piece, certified by PMG as Very Fine 25, brought $8,050 as lot 12446 at Heritage’s 2010 Boston ANA Signature Currency Auction. The Alaskan Parchment Scrip of the Russian American Company 1816‐1867, Randolph Zander's 1996 48‐page monograph, is the most comprehensive reference on the subject. Zander expanded upon Ted Uhl's earlier research. In the monograph, Zander explains that beginning circa 1842, changes to the physical appearance of certain notes were performed by hand and were made as a means of differentiating the various denominations, as much of the native population was illiterate. The upper corners of the 10 kopek notes were holed, all four corners of the 25 kopek pieces were clipped, and the 50 kopek examples were clipped at the upper two corners. The common face with a company seal has a double headed Imperial Russian eagle within an oval frame and a legend in Russian translated UNDER THE HIGH PATRONAGE OF HIS IMPERIAL MAJESTY. These rare and interesting notes are numismatic links to Russia’s attempt at expansion into North America. (images below courtesy of Stacks Bowers and Heritage). References Bowers and Ruddy Galleries, Western Numismatic Americana, The Henry H. Clifford Collection: Coins of the American West, March 18‐20, 1982. Heritage Auctions, Memphis Signature Currency Auction #3510, June 17, 2010, Lot 12205. Heritage Auctions, ANA Boston Signature Currency Auction #3511, August 11, 2010, Lot 12246. Nikolai Petrovich Rumyantsev; Russian‐American Co.‐American‐Company. Russian‐American Company. Fort Ross Conservancy.‐american‐company.htm. Russian‐American Company. February 25, 2014.‐American_Company. Stack's, John J. Ford, Jr. Collection Part VIII, Numismatic American History, January 18‐19, 2005. Zander, Randolph, The Alaskan Parchment Scrip of the Russian‐American Company 1816‐1867, 1996. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 260 MEXICO HAS PRINTED ITS OWN NOTES SINCE 1969 by Carlson R. Chambliss Most of the republics of Latin America have relied on foreign securities printers to produce their paper money, although both Argentina and Chile have used their own firms for many decades. For both Mexico and Brazil, however, the transition to domestic securities printers took place only about four decades ago. For a number of years into the 1970s the American Bank Note Company (ABNCo) in New York continued to print some denominations of Mexican notes, but since 1969 almost all of the paper money of Mexico has been printed in Mexico by the Banco de Mexico (BdM), the government bank that is also responsible for the issue of all money in that nation. Mexico is no stranger to paper money, but in the 19th century the only government issues were from the short-lived empire of Augustin lturbide and its immediate republican successor in the 1820s along with the even shorter-lived empire of Maximilian in 1866. During the long rule of Porfirio Diaz (1876 - 1911) all paper money in circulation was private in origin. Most of this was issued by about fifty different commercial banks, and their notes are referred to as “Bancos.” For the most part these notes were redeemable in silver pesos that the Mexican mints were coining in large quantities. Unlike the United States after 1873 Mexico had free coinage of silver, and almost its entire production of this metal went into eight reales or peso coins, most of which were exported to China and other East Asian countries where they were always in huge demand. Between 1913 and 1920, Mexico was convulsed by a multi-faceted civil war that has come to be known as La Revolucion. This upheaval affected all aspects of Mexican life including its currency system. After 1914 no more “Bancos” were issued, but numerous state and local authorities issued their own currency. Especially famous are the various issues of the State of Chihuahua created by Pancho Villa and the Gobierno Provisional issues released by Venustiano Carranza. Huge quantities of these issues still survive, in large part because they were almost never redeemable into silver despite the solemn promises to do so printed on their faces. Most of these notes were crudely lithographed, but in 1913 there were state issues of Chihuahua and Sonora and in 1915 there were issues of Carranza’s government in Mexico City that were beautifully engraved by the ABNCo. In terms of redeemability, however, these items were no better than any of the others, and by the time that the great national convulsion wound down in 1919 - 20, most Mexicans wanted nothing more to do with paper money. During the early 1920s only coins circulated as currency in Mexico aside from a single issue of fractional notes prepared by the Interior Ministry and some United States paper money that was acceptable to most parties. In 1925, however, a government-controlled bank of issue, El Banco de Mexico, was established, and it has been responsible for the sole issue of paper money ever since. The first issues were of large size (180 x 83 mm, or about the size of contemporary large-size notes in the United States). The denominations were 5 through 100 pesos, and in 1931 500 and 1,000 peso notes were added. All were printed by the ABNCo, the firm which had printed most of the “Bancos" in former years. In 1936 the size of Mexican bank notes was reduced to 156 x 66 mm, which is precisely the same as that of small-size U. S. paper money. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 261 Between 1936 and 1978 the notes of the BdM printed by the ABNCo proved to be one of the most conservative issues of world paper money in terms of design. Most of the designs introduced in the 1930s were still in use four decades later. Nine different denominations were issued - 1, 5, 10, 20, 50, 100, 500, 1,000, and 10,000 pesos. At the beginning of this period the peso was a silver coin trading at about 27 cents, or 3.70 pesos to the dollar. By the end of this era the peso coins were made of cupronickel and were worth about 23 pesos to the dollar. Overall the notes are characterized by their extreme conservatism of design. Only the 10, 50, and 100 peso notes underwent major design changes, in 1937, 1941, and 1945, respectively. For a full generation most Mexicans and frequent visitors to Mexico would have known only one set of bank note designs, & many persons probably assumed that these designs were permanent. With only one exception, the one peso notes printed prior to 1943, all Mexican notes of this era include the date of issue, and all notes feature three signatures of officials of the BdM. The three individuals are termed Consejero (Counselor), lnterventor (lnspector), and Cajero (Cashier). These are merely three officials who were holding those titles, however, and the number of signature combinations is large. Even for a single date there can be a number of different signature combinations, and thus BdM notes are not usually collected by signature combinations as would be the case for American or Canadian issues. Each note of this era has two colored seals printed on its back, a circular seal of the Secretaria de Hacienda (Interior Ministry) and a guilloche of the BdM. On the one peso notes these were always printed in black or greenish black, but on the other values a variety of colors were used. On almost all notes these seals were overprinted at the same time and in the same color for a given note. Every note has a series designation on its face, and typically this features either two or three letters and is printed in either red or black. The serial number itself is preceded by a single letter, and it is five, six, or seven digits long. Most syngraphists collect these notes by basic type or by date only. BdM notes do not lend themselves to being collected by serial number blocks, since the number of possibilities for these or for the different series or signature combinations is very large. The Mexican postal system goes back to 1856, and for its entire history the postage stamps of Mexico were locally produced. Printing bank notes, however, demands greater security controls, and in any case, almost all paper money in Mexico up to 1914 was private in nature. The chaotic years of the Revolution resulted in numerous issues of inflated notes, but high quality securities printing would have been quite impossible in Mexico at this time. When the BdM was founded in 1925, it is hardly surprising that it chose to contract the ABNCo to print their notes, since this firm had printed the majority of the “Bancos” prior to 1914. Evidently the BdM officials were quite pleased with the work of the ABNCo, since they continued with their products for the next four decades. By the 1960s, however, printing facilities in Mexico were sufficiently advanced for the BdM to print its own notes. It was decided to retain the same size for all notes, but the new designs and color schemes were entirely different and were introduced over a period of several years. The low denomination notes were replaced first, but it was decided not to continue printing the one peso note. The last of these were printed by the ABNCo in July, 1970, and cupronickel one peso coins were introduced in the same year. Some five peso notes were made by the ABNCo as late as 1970, but in 1969 both 5 and 10 peso notes of entirely new designs were printed by the BdM. At the time these notes were worth 40 and 80 cents in U. S. currency, respectively. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 262 The new five peso note proved to be a very short issue, since these were printed with only three dates, 1969, 1971, and 1972. They depict Doña Josefa Ortiz de Dominguez (1768 - 1829), who is referred to as La Corregidora (the Corrector) on these notes. She was involved in pro-independence conspiracies in the town of Queretaro, which is depicted on the backs of these notes. Although imprisoned by the authorities, she escaped execution and lived until age 61. She had previously appeared on the 20 peso note of the ABNCo printings. The 5 peso note is printed in black and dark brown, and the seals on its back are printed in dark green. Circulating five peso coins were introduced in 1971, and these soon resulted in the removal of this note from circulation. The ten peso note introduced in 1969 portrays the national hero Miguel Hidalgo y Costilla (1753 - 1811) and the Church of Dolores on its back. It is from this building that Hidalgo, a Catholic priest, made his famous “Grito de Dolores” (Shout from Dolores) calling for Mexican independence in 1810. He helped to organize a rebel army, but he was defeated and executed in Chihuahua in 1811. He previously appeared on the 100 peso note of the ABNCo printings. The ten peso note is printed in dark green with multicolored underprints. The BdM seal is printed in lilac, but the Hacienda seal appears in a variety of colors. There are nine different dates ranging from 1969 to 1977, but a number of different signature combinations and seal colors are possible for each date. Circulating ten pesos coins were introduced in 1974, and by 1978 these had displaced these notes from circulation. By then these items were worth about 45 cents. The 20 peso note was not introduced until 1972, when they replaced the 20 peso notes of the ABNCo printings. Depicted is Jose Maria Morelos y Pavon (1765 - 1815), a priest who raised a substantial army and won numerous victories in southern Mexico. Eventually, however, he was captured and executed in 1815. During his revolt Morelos struck a number of provisional coins in copper. These were marked with a crossbow and the word SUD both of which appear on both sides of these coins. The back of this note depicts the Temple of Quetzlcoatl at Teotihuacan. Morelos appeared on the 500 peso note of the ABNCo printings. The 20 peso note is predominantly red or brown-red in color. The Hacienda seal in printed in orange and the BdM seal in a variety of colors. There are five date varieties, ranging from 1972 to 1977, but this note circulated until 1980. Initially worth $1.60, by then their value had fallen to about 90 cents. Circulating 20 peso coins were introduced in that year. The 50 peso notes were first introduced in 1973. They depict Benito Juarez (1806 - 72), a Zapotec Indian from Oaxaca who was president of Mexico from 1858 to 1872. Juarez is most noted for his role in the expulsion of the French forces from Mexico in the 1860s. The Government Palace in Mexico City also appears of the faces of these notes, while their backs depict various Amerindian motifs. The last printing of these notes was dated 1981, but the cupronickel coins of 1982 - 84 were bulky and it was not until 1984 that smaller 50 peso coins also depicting Juarez were introduced. Although there are only five date varieties for the notes, there are far more possibilities than this. On the notes dated 1973 or 1976, the serial numbers and series letter appear in both red and black. On the later ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 263 issues the serial numbers are in black and the series letters in red only. Up until 1979 there are three signatures on each note, but in 1981 a fourth signature for Direccion General was added. These notes are predominantly blue in color, but both the BdM and Hacienda seals show a wide range of colors. Although this note had an exchange value of about $2.20 when it was first issued, this had fallen to about 25 cents by the time that it was replaced in 1984. The 100 peso note was introduced in 1974. It depicts Venustiano Carranza (1859 - 1920), one of the pivotal figures of the Mexican Revolution. He is honored for his role in the development of the Mexican Constitution of 1917, but there were controversial aspects to his career. He led the revolt against Victoriano Huerta in 1913 and eventually served as President from 1917 - 20. He did make enemies, however, and was assassinated in 1920. Also depicted on this note is a detail from the painting “La Trinchera" (the Trench) symbolic of the Revolution on its face and a Chac Mool carving from Chichen ltza on its back. There are six different date varieties, but numerous other variants also exist. The colors used on the serial numbers and series letters parallel those of the 50 peso notes. Notes dated 1979 or earlier have three signatures, while those dated 1981 or later bear four. The earlier issues have engraved backs, while the later issues have lithographed backs. The dominant color is purple on both sides. Both the BdM and Hacienda seals are printed in a wide variety of colors. This note continued to circulate until 1984 when it was replaced by 100 peso coins depicting Carranza and minted in aluminum bronze. It started out with an exchange value of about $4.40, but by 1984 its value had fallen to only about fifty cents. In the 1950s and 1960s 500 pesos was a substantial sum of money, and notes of this denomination saw relatively little use in everyday transactions. As a consequence the BdM waited until 1979 before introducing a new design to replace the ABNCo type that had circulated since 1936. This note depicts Francisco Madero (1873 - 1913), who served as President in 1911 - 13 until his assassination. Madero had previously appeared on a 100 peso note issued between 1936 and 1942. He opposed the dictatorship of Porfirio Diaz and was instrumental in the fall of that regime. The earlier printings of this note bear the title El Banco de Mexico S. A. (Sociedad Anonimo or corporation) and are printed on pink paper, while the notes dated 1983 or 1984 are printed on white paper and lack the S. A. lettering. All but the first issue have four signatures rather than three, and on some of these one signer is referred to as Junta de Gobierno, i.e., (a member of) the governing board. The backs of these notes depict an Aztec calendar stone along with an ancient bas relief. The dominant color is dark olive green, but there are shadings in other colors. The BdM seals are actually part of the engraved portion of the note rather than being added later by letter press. When these notes were first issued they had a face value of about $22.00, but they were worth only about 80 cents when they were replaced by cupronickel coins bearing Madero’s portrait in 1986. All notes with values of 100 pesos or less bear the title El Banco de Mexico S. A. This organization was fully nationalized in 1982, and all notes dated 1983 or later lack the S. A. designation. For the 500, 1,000, 5,000, and 10,000 peso notes both possibilities exist. Notes for 2,000 pesos and all denominations above 10,000 pesos did not appear until after 1983, and they exist only without the S. A. designation. The 1,000 peso notes depict Juana de Asbaje (Juana lnes de la Cruz, 1648 - 95), a popular writer who was also a nun. The Plaza de Santo Domingo is featured on the back. This note was first issued in 1978, or just about a year after the last issue of 1,000 peso notes printed by the ABNCo that had ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 264 been in continuous use since 1936. Both sides are basically brown in color, and the note is printed on tan-colored paper. On issues of this note made in 1984 and 1985 the watermark of Juana has been replaced with a vignette of a quill pen in an inkwell. The earlier printings feature serial numbers in green and either red or black. In the later printings they are in black only. The BdM seal is printed on the note in either blue black or brown, but the Hacienda seal is overprinted in a variety of colors. (Most of these notes have four signatures, but the last issue of 1985 carries only three signatures, that of the lnterventor having ‘vanished. These notes continued to circulate until 1988 when they were replaced by aluminum bronze coins portraying Juana de Asbaje. Although these notes were worth about $44.00 when first issued, high inflation in the late 1980s led to their value being only about 50 cents when they were replaced by coins. In 1980 the BdM introduced for the first time a 5,000 peso note. These notes are extremely colorful being printed on light blue paper with the engravings mostly in orange brown and dark blue plus some added dark green on their backs. Depicted are the six cadet heroes who helped to defend Chapultepec Castle (depicted on the back) from the Americans in their siege of Mexico City in 1847. Each cadet is named, and a watermark of Juan de la Barrera appears at the right. The first issue of 1980 carried three signatures, but on the issues of 1981 - 83 there are four signatures of BdM officials. On the later printings of 1985 - 89 there are once again only three signatures. In 1985 tan colored paper was used rather than light blue and the printing was in various shades of brown and dark olive. Also additional engraving was extended into the watermark area. No other denomination features such a contrast in colors between the earlier and the later printings as this note. On the earlier issues the Hacienda seal is printed in dark green, and the BdM seal is “overprinted" in a variety of colors. On the later issues these seals are printed in dark brown and olive brown, respectively. When this note was first issued, 5,000 pesos was still a lot of money, and the exchange value was over $200. These notes were not replaced by coins in the old currency, and they continued to circulate up to 1992 by which time inflation had reduced their value to only about $1.60. During the 1980s, inflation heated up considerably in Mexico, and the officials decided that a 10,000 peso note would be necessary. Much time and effort went into preparing the new designs, so an issue of provisional 10,000 peso notes was released in the meantime. The ABNCo still held in its archives the plates that were used to print the earlier BdM notes, and between 1943 and 1953 there had been three separate printings of notes of this value. These represented a great deal of money at that time, and they were used almost exclusively for interbank transfers. A new printing of these notes dated January 18, 1978 was made to satisfy the BdM’s emergency needs. They depict Matias Romero (1837 - 98), a diplomat who served in both the Benito Juarez and Porfirio Diaz administrations. The face is printed in light violet, while the back printed in blue- green features the Government Palace in Mexico City. Unlike all other ABNCo printings, the BdM and Hacienda seals are in different colors, lilac and light blue in this case. Although dated 1978, these notes were not actually issued until 1982 at which time their exchange value was still well over $100. The newly designed 10,000 pesos notes depict on their faces Lazaro Cardenas (1895 - 1970), the popular president (from 1934 - 40) who is noted for the nationalization of the oil industry. An Aztec Coyohauhqui stone appears on their backs, printed in dark green. The ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 265 eight earlier dates of these notes (from late 1981 to 1987) are printed on light green paper, while the later printings from 1987 to 1991 are on light tan paper, and on these notes the watermark area has been filled in with an oil derrick and storage tank. The earlier printings carry four signatures, the later ones only three. As is the case with the other high value notes, the BdM and Hacienda seals are engraved on the notes, but different colors do exist for the latter on some of these notes. The serial numbers are printed in various colors - black, red, green, blue, and purple. These notes did not enter circulation until late in 1982, but their value was still an impressive $100 at that time. They soon fell victim to the high inflation that Mexico experienced in the late 1980s, and by the time of the revaluation of the Mexican peso in 1992 their value was down to a less impressive $3.20. Notes for 2,000 pesos were first issued only in 1983. When the 5,000 peso notes were first issued in 1980, they were intended more for large cash transactions than for retail trade. By 1983, however, inflation had reduced their value considerably, and it was felt that there was need for a note between 1,000 and 5,000 pesos. The 2,000 peso note depicts Justo Sierra (1848 - 1912), a writer and journalist, together with the library of the University of Mexico that is built in the “Aztec modern" style. A 19th century university courtyard is depicted on their backs. The basic color is dark green plus brown on their faces and olive on their backs. The two seals are engraved on the backs of these notes and are without color variations. The serial numbers are printed in dark green. The earlier notes have four signatures, while the later ones have three. There are six different date varieties, but this is a much uncomplicated issue in comparison with most of the others. All of these notes were issued after the nationalization of the BdM, and so all of these notes lack the letters “S. A.” in their title. When first issued these notes had an exchange value of about $13.00. Their use was continued until they were replaced by a two (new) pesos coin in 1982, at which time their value was about 65 cents. The three highest denominations of BdM notes in the old currency had comparatively short careers. The first of these is the 20,000 pesos note which portrays Don Andres Quintana Roo (1787 - 1851), an important political figure in the early years of Mexican independence. Also depicted on the face is the Mayan temple at Tulum in the state of Quintana Roo that was named in his honor. The backs of these notes depict the Mayan wall paintings at Bonampak together with a Mayan bas relief at Yaxchilan. The predominant color is blue, but there are two quite distinct printings. The first are printed on bluish paper, include a watermark area, and have serial numbers on their backs. The latter printings have their face and back designs extended over the watermark area, and serial numbers appear on their faces. In both cases the two seals appear as part of the engraving on the backs of these notes. There are three date varieties of the first type and two on the second type. These range from 1985 to 1989, but this note continued to circulate until it was replaced by its 20 (new) peso counterpart. When first issued this note had a value of about $64.00, but by 1992 its value had fallen to one-tenth of that amount. The first type of 20,000 peso notes as well as the earliest of the 5,000 and 10,000 peso notes and all 50,000 and 100,000 peso notes feature a scattering of metallic dots as a security feature. This feature was continued on the 50 and 100 nuevos pesos notes that were printed in 1992. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 266 The 50,000 pesos note was first issued in 1986, and there are a total of seven different dates that continued until 1990. Depicted is the Aztec leader Cuauhtemoc (ca. 1502 - 25), a nephew of Moctezuma II, who had previously been portrayed on the 1,000 peso notes of the ABNCo printings. The predominant color is violet. This note depicts a combat scene on its back along with a number of Aztec artifacts on both sides. The serial number is printed on the back, and the two seals are engraved into the back designs. When first issued this note had a value of about $80.00, but this had fallen to about $16.00 by the time of the conversion in 1992. The 100,000 pesos notes were first issued in 1988, and there are only two date varieties for this short-lived issue, 1988 and 1991. Depicted is Plutarco Elias Calles (1877 - 1945), the President of Mexico from 1924 - 28 together with a vignette of the headquarters of the BdM. This institution was founded by the Calles administration, and Calles himself continued to exercise a great deal of influence in political affairs up until 1934. The backs of these notes depict a wilderness scene from his home state of Sonora. The color scheme is largely blue-black and dark red, and the two seals appear on the back side engraved in these colors. The serial number is printed twice on the back side in black. When initially issued the value of this note was about $45.00, but the worst of the inflation of the 1980s was already over before these notes were placed into circulation. By the time of the currency reform of 1992 these notes still had an exchange value of $32.00. Not many of these high value notes were saved, and this remains by far the scarcest type of BdM notes from 1969 - 92. The first issue of notes in nuevos pesos currency is dated July 31, 1992, but they were actually issued a few months later than this. There are four denominations in this set, 10, 20, 50, and 100 nuevos pesos, and in almost every detail their designs are the same as those of their immediate predecessors. The serial numbers are printed in black on all four values, but this was not the case on the 20,000 and 50,000 peso notes of the late 1980s. There is only one date variety for each value, but more of the 100 nuevos pesos notes of 1992 were put aside than was true for the 100,000 pesos notes of 1988 - 91. At their time of issue the exchange values of these notes ranged from about $3.20 to $32.00. It seems a bit surprising that the BdM decided to terminate the circulation of 5,000 peso notes and replace them with a 5 nuevos pesos coin rather than a five peso note. The former still had a fairly respectable value, and Mexico has had a long history of circulating bank notes of relatively low denominations. In 1994 the BdM issued an entirely new series of notes ranging from 10 to 500 nuevos pesos, and after 1996 the word "nuevos" was dropped. Since then a 1,000 pesos note has been added, and the ten pesos note was dropped in favor of a coin. The most controversial aspect of the new 10 peso note was the fact that it portrayed Emiliano Zapata (1879 - 1919), who is regarded as a freedom fighter and land reformer by some Mexicans but viewed as far too radical by many others. The Mexican peso has had a long history both of stability and of progressive severe devaluations with respect to the U. S. dollar. Prior to 1873 the two currencies were effectively at par, but in that year the U. S. abolished the free coinage of silver while Mexico did not. In 1905 the Mexican currency was put on the gold standard at a rate that was just slightly under 50 cents per peso. It remained at that rate until 1931 when Mexico abandoned the gold standard. During the years of the Revolution from 1913 - 20, of course, there were numerous emissions of mostly worthless paper money, but the coins of the national mint, when available, remained sound. Sound paper money reappeared in Mexico only after the establishment of the BdM in 1925. After gold parity was abolished in 1931 the value of the peso fell fairly rapidly to about 27 cents, and by ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 267 the end of the 1930s its value was down to about 20 cents in U. S. currency. A further slide in the value of the peso occurred in the 1940s, but in June, 1949 the rate of exchange was officially pegged at 8.65 pesos per dollar or 11.56 cents per peso. This rate was maintained until April, 1954, when the rate of exchange was lowered to 12.5 pesos per dollar or 8.0 cents per peso, a rate that it was to maintain for the next 22 years. Typically the BdM would go to great lengths to maintain a constant exchange rate, but if the debt pressure on its assets became too great it would be forced to make a sudden devaluation. That indeed happened in August, 1976, when the exchange rate for the peso was changed to 22.85 pesos per dollar or 4.38 cents per peso. This new rate was maintained until 1982 when Mexico was forced to default on its international debt. Although Mexico was a major oil producer by that time, oil was then selling for low prices, and the nation was under extreme pressure to pay for its imports and to make interest payments on its debt. During 1982 the value of the peso fell drastically to about 90 to the dollar by the end of that year. The worst period for Mexican inflation occurred during the presidential term of Miguel de la Madrid (1982 - 88). The Mexican peso was allowed to trade freely, but the mid-year exchange rates were about 120, 260, 600, and 1,400 pesos to the dollar, respectively, for the years 1983, 1985, 1986, and 1987. The year 1987 was the worst of all for inflation in Mexico when it reached an annual rate of 160%. During the administration of President Carlos Salinas (1988 - 94) drastic anti-inflationary measures were undertaken, but they took some time to take effect. By mid-1988 the exchange rate had reached 2,270 to the dollar, and for 1989 and 1990 it was 2,460 and 2,840 pesos per dollar, respectively. By 1992 the value of the peso had fallen to just a bit over 3,000 to the dollar, but there it held. There is little point in chopping several zeros off a currency unit unless that currency is reasonably stable, but by 1992 that achievement had been made for the Mexican peso. The new peso was introduced with an exchange value of about 3.10 to the dollar. This apparent stability did not last very long, however, since there was a rapid fall in the value of the (new) peso to almost seven to the dollar at the end of 1994. At this time the United States loaned Mexico large amounts of money to stabilize its currency, but during the next four years the value of the peso gradually slid from about 6 or 7 to the dollar to more like 8 to 9.5 to the dollar. Since 2003, however, the Mexican peso has been fairly stable, and it trades within a range of 10 to 14.0 pesos per dollar. Given the current weakness of the dollar there have been some periods in which the value of the Mexican peso has risen significantly with respect to the U. S. dollar. By the standards of Argentina or Brazil, the rate of inflation in Mexico has been very mild, but by U. S. or western European standards it has on occasion been very high. The BdM has tried to convey an image of great stability in its currency, and one way of doing this is to be extremely conservative in its note designs. If one forgets about differences in dates, signatures, series, and serial numbers, the Mexican notes printed by the ABNCo have probably undergone less change than have the notes of any other country. The obligation on any of these notes states that the BdM will pay the bearer on sight “…” pesos. On the notes issued since 1994 this obligation has been dropped altogether. The one peso notes add the clause “en efectivo” (i.e., in cash), but this doesn't change this obligation at all. In other words Mexican notes are far more conservative in their wording than are such issues as U. S. Federal Reserve Notes, where very important changes in their obligations have been made over the years. It seems likely that some of the issues of BdM notes released in the 1950s are seriously under priced. This would be much truer of the earlier issues of the ABNCo than of the Mexican printings. For the notes of 1969 - 92, minor changes in design took place frequently on most denominations, and these are duly noted in the paper money catalogs. Mexico has such a long historical and cultural tradition that the officials of the BdM must often make hard choices as to whom to portray and thus honor on their notes. Sometimes new persons are added, for instance the new 500 peso note honors lgnacio Zaragoza (1829 - 62), who defeated the French at Puebla on May 5, 1862, the “Cinco de Mayo." Actually this is the second appearance of Zaagoza on Mexican notes, since his portrait was used on 50 peso notes dated 1937 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 268 and 1940. The portrayal of Zapata on recent Mexican notes suggests that his fellow revolutionary Pancho Villa might also be so honored, but doubtless there are some Mexicans who would want neither of these individuals on their currency. Similarly if Plutarco Calles is featured on Mexican currency, then why not his fellow President Alvaro Obregon? Heroes of the War of Independence are often honored on Mexican coins or bank notes, but lgnacio de Allende, who appeared on the 50 peso notes printed by the ABNCo, was dropped from later issues, while Vincente Guerrero has appeared only on coins. Despite the fact that the name of Porfirio Diaz appears on many public buildings and other structures still in use that were built during his long period of rule (1876 - 1911), his style of governance was so reactionary that most Mexicans would not wish to honor him today. Individuals such as Antonio Lopez de Santa Anna or Augustin lturbide would fare even worse. Although the notes of the BdM are easy to collect by major types, when one looks into dates, seal colors, series and serial number varieties along with a number of other factors the possibilities for forming interesting collections expand considerably. The basic design types are so conservative that the inflation which the currency has experienced has actually resulted in many issues becoming considerably cheaper with time rather than more expensive in numismatic markets. For many issues of coins or bank notes one is apt to say, “lf only l had saved a few of those when they were current.” For many of the BdM notes, however, this statement most definitely is not appropriate. THE COMPREHENSIVE CATALOG OF U. S. FEDERAL LARGE-SIZE NOTES, 1861 - 1929 by CARLSON R. CHAMBLISS and GENE HESSLER One of the most beautiful and authoritative books ever written devoted to the subject of Large-Size Notes of 1861- 1929 is about to appear on the market. Delivery is expected mid-July. Stunning with lavish use of full color for depicting most notes. The majority of illustrations are direct scans of the notes themselves and not transfers of items from third parties. The complexities of the USNs of 1862-63 explained in detail along with stars, mules, and block varieties. The NBNs are listed both by Treasury sigs. and by States and Territories. Also a section on errors, fancies, and uncut sheets. A new numbering system is introduced (the Chambliss-Hessler numbers), but the more familiar Friedberg numbers are also quoted for each and every variety. Census data are given for all varieties, and these are very much up to date. Current valuations are used, and thousands of auction realizations are quoted. This work is an absolute essential for anyone involved at all with U. S. Large-Size Notes. The book is soft-bound, 8."5 x 11" in size, and is 320 pages long with almost all of these in brilliant color. Both authors are by now well-known to the syngraphic community. Chambliss applies the analytic skills of his scientific background and discusses many aspects of these notes and the monetary history of the years in which they were issued. Many new insights - some perhaps controversial - are provided. He is the owner of a formidable collection of these notes, and the majority of the illustrations are from that source. Hessler is a true artist, and he has spent literally years in researching the designs of these notes and in studying the careers if the engravers who produced them. Our special pre-publication price is $35.00 per copy postpaid to anywhere in the USA. Prices to foreign countries will be higher (please enquire). Quantity discount rates do apply, and these can be large if sufficient books are ordered. Copies of the beautiful 152-page catalog of MPCs that Chambliss published in 2012 are also available, and a special "package deal" is offered to anyone who wants both books postpaid for $55.00. Deliveries should be made in the week of July 21st-25th, but order yours now to insure prompt delivery. All orders should be check or money order to Carlson R. Chambliss, P. O. Box 804, Kutztown, PA 19530. Dr Chambliss can also be reached by email at (one "s") or by telephone at 1 - 610 - 683 - 6572. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 269 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 270 At the International Paper Money Show in Memphis in June 2014, the SPMC proudly unveiled its Hall-of-Fame program. This program will recognize those who have personally and professionally gone above and beyond for the good of our hobby and the Society. We Thank Them All! The inaugural class was chosen by a committee of the SPMC Board of Governors. Tom Bain George Blake William West Bradbeer Amon Carter, Jr. William P. Donlon Robert Friedberg Nathan Gold Nathan Goldstein Gene Hessler John Hickman Ruth Hill Peter Huntoon Chester Krause Eric Newman Glenn Smedley The board welcomed the inaugural class and celebrated it with a dinner on Saturday night in Memphis. Peter Huntoon, the only member of the class in attendance represented his peers. Future classes will be chosen each year and presented at the SPMC annual meeting. There will also be a special place on the website related to the Hall-of-Fame. SPMC Hall of Fame ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 271 From One Big Collection to Another by Robert Gill Being a very passionate collector of uncut Obsolete sheets, over the years I have been able to assemble a collection of over 350 different sheets. The desire always being in me to continue to add "a tough one" to the collection sometimes leads me to making a private deal on a sheet. And sometimes I'm fortunate enough to nab "a special one" in an auction. That is what I was able to do in the recent Central States Auction in Chicago. Heritage Auctions was given the privilege to conduct the sale of the Wendell Wolka Collection. Probably anyone who has anything to do with Obsoletes knows of Wendell, and his passion for the State of Ohio Obsoletes. For whatever reason he decided to disperse his collection so that other collectors could have the opportunity to enjoy what he had accumulated in Ohio Obsoletes over the years. I was fortunate enough to be the high bidder on the five sheets that I went after. And one of them holds a very special place in what I've been able to put together. "The Commercial Bank of Lake Erie" notes, which are from the print shop of Abner Reed, are very rare. And the sheet that I acquired on that bank could very well be unique. Because of the unusual hand written markings, it was probably used to test the printing set up for an order. John Warner Barber, who served as an apprentice under Reed, signed his name (JWBarber) on each note's left selvage. He also wrote in the town's name where Reed's shop was located (East Windsor), as well as the date (May 14, 1817). For anyone who is a sheet collector it is probably easy to understand why this sheet means so much to me. I just hope some day I'm able to meet Wendell and personal thank him for presenting the opportunity for me to be the new owner of this great piece of Paper Money History. I invite anyone with comments to contact me at ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 272 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 273 Fourth Issue 15¢ Seal Plate Numbers by Rick Melamed In previous issues of Paper Money (Vol. XLIX, No. 4, Whole No. 268 – July/August 2010) I wrote  about  seal plate numbers on  the 50¢  Lincoln  (FR1374).    I also wrote about  them on  the 10¢  Liberty  (FR1257‐1261) in the Fractional Currency Collectors Board newsletter.  The research continues with seal  plate numbers on the 4th issue 15¢ Columbia fractional (FR1267‐FR1271).    A Brief History of the Series  In order to combat counterfeiting, 4th  issue notes were the first to  incorporate a 3rd plate with  the use of a Treasury seal  (the  first 3  issues of  fractionals were made using 2 plates‐‐front and back).  With  the FR1271,  further steps were  taken with  the  inclusion of bluish  fibers on  the  right side of  the  note.  A really fresh example of the FR1271 with white paper (sort of a mini‐Rainbow note – 1869 Large  sized US Notes) is a stunning piece; a patriotic homage with the red, white and blue colors.  The design  of Columbia in a feather headdress was created by Douglas R. Romerson and engraved by Charles Burt  (who also engraved the FR1374 Lincoln fractional).   They were printed from July 14, 1869 to February  16, 1875. According  to Q. David Bowers  in his  reference  “The Whitman Guide  to US Paper Money  ‐  2009”  the following is number of  4th issue notes printed:  Denom   FR#    Amount Printed  10¢   1257‐61  349,409,600  15¢   1267‐71  35,361,440  25¢   1301‐07  235,689,024  50¢ Lincoln   1374    19,152,000  50¢ Stanton    1376    86,048,000  50¢ Dexter   1379    49,499,200  Undoubtedly the lesser amount of BEP plates and overall lower print quantity of the Fr. 1267‐71  is attributed to the odd and unpopular denomination. 10¢, 25¢ and 50¢ divide evenly  into $1.00.   15¢  does not.    The  National  Bank  Note  Company  provided  the  obverse  plate,  the  American  Bank  Note  Company  the  reverse,  and  the  Treasury  provided  the  plate  containing  its  distinctive  red  seals.   All  4th  issue 15¢ notes were  issued  in sheets of 12‐‐3 horizontal x 4 vertical.    The only known uncut sheet of  Columbia notes was sold on May 12, 2004, by Stack's from the great John Ford, Jr. Collection (lot 1005 –  sold for $25,300).      It exhibited a mirrored plate #5  in the center column, bottom note.    Since  it  is the  only  known  uncut  sheet,  it  begs  the  question:    Were  all  seal  plate  numbers  always  in  the  same  approximate location?  The obverse and reverse sheet plate numbers were engraved in the outer edge  of the plate.  Since all examples including the singular sheet were trimmed of any selvage, there are no  known 15¢ notes exhibiting a sheet plate number.   Examples of any 4th  issue sheet plate numbers have  shown  up  very  rarely  (FR1301,  FR1257…and  recently  on  a  Stanton  –  FR1376).    So,  hopefully  an  untrimmed  FR1267‐71  will  eventually  show  up  with  the  selvage  intact  and  containing  a  sheet  plate number.  So far 100% of the 15¢ plate numbers catalogued are seal plate numbers only.  15¢ Seal Plate Numbers  Except  for Valentine’s  reference  in  1924,  little  attention  and  research has been  given  to  the  subject matter until now.   This  is significant because there are no known existing records of seal plate  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 274 numbers and only by observational research can we piece together a listing.  We can now postulate that  20 BEP Treasury seal plate numbers (some anomalies exist ‐ see below) were used in the production of  the  15¢  note.   We  have  scans  of  24  seal  plate  number  varieties  (18 with  different  numbers).    The  placement of the seal plate number is either below the portrait or in the right corner (upper or lower).   Four (4) of the notes exhibit inverted plate numbers and one (1) is mirrored.   An interesting anomaly exists where both seal plate #4,  #7 and #10 show up regular and inverted.   And in yet another twist, seal plate #1, #8 and #11 appear in 2 different styles.   Inverted  plate #4  Regular plate #4 Inverted plate #10Mirrored plate #5  Plate #8 in two  different styles ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 275 How this could happen is a mystery but I offer the following opinions:   Perhaps the seal plate number was engraved twice on the same plate  Or maybe the plate was damaged and remade  Or maybe the accounting of plate numbers was lax Note, as in all 4th issue seal plates, the color of the plate number is the same as the seal.    Out  of  the  20  BEP  plates  known,  we  have  evidence  of  18  different  plate  numbers.    As  a  comparison, the 10¢ variety used 41 different plates, the 50¢ Lincoln used 28, and the 25¢ Washington  used 29.   A  complete and detailed accounting of 4th  issue  seal plate numbers  (as well as  sheet plate  numbers for  2nd and 3rd  issue fractional)  is printed  in Rob Kravitz’s new and well researched reference  book, “A Collector’s Guide to Postage & Fractional Currency – 2nd Edition 2012.”    FR1267‐1271 ‐ 15¢ Seal Plate Numbers:  1‐20 Observed examples:  #1 – Regular (2 styles)  #2 ‐ Regular  #3 ‐ Regular  #4 ‐ Regular and Inverted  #5 ‐ Mirrored  #6 ‐ Regular  #7 ‐ Regular and Inverted  #8 – Regular (2 styles)  #9 ‐ Regular  #10 – Regular and Inverted  #11 – Regular (2 styles)  #12 ‐ Regular  #13 ‐ Regular  #14 ‐ Regular  #15 ‐ Suspected but not observed  #16 ‐ Regular  #17 ‐ Suspected but not observed  #18 ‐ Regular  #19 ‐ Regular  #20 – Inverted  These are scarce, with some examples showing an auction population of only a couple of pieces.   Remember only one  in 12 notes can contain a seal plate number and many of  them are  trimmed off  when the sheet is cut into individual notes.  Auction companies are doing a better job in pointing out the  inclusion of the seal plate number, but many times they don’t get a mention.  This is to the detriment of  the consigner since the mention of a plate number does increase the sale value of the note.  A full plate  number adds 20% or more to the price…with the occasional spike on a particularly nice example.     Since the seal plate number was not part of the note design, they were virtually ignored by the  community.  This is exacerbated because the 15¢ note is heavy on design and many times the seal plate  number  is buried  in the black scrollwork.    It takes scrutiny, a sizable  loupe and a  lot of direct  light, to  make out the plate number.   Check out plate #3 as an example.   However, when one gets an example  where the only contrast  is  just the white of the paper such as the FR1267 with plate #12, one cannot  help but be drawn to the plate number.  In  conclusion,  that  we  have  so  many  different  examples  really  gives  the  series  some  context.   They  are  fun  to  collect,  but  you  are  wise  to  be  patient  since  they  turn  up  fairly  infrequently.  But  with an  eagle eye and some patience, one can put together a nice assortment.  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 276 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: - support@lynknight.c om Whether you’re buying or selling, visit our website: Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency Fighting Corruption with the Zero Rupee Note  by Loren Gatch  Corruption takes many forms and occurs in many circumstances, but it’s useful to think  about  it  according  to  two  basic  types:  retail  and  wholesale.  Retail  corruption  involves  small  transactions  between  individuals.  These  could  be  monetary  payments  to  make  something  happen more quickly (or, alternatively, not to happen at all). These could be non‐monetary quid  pro quos  (like  hiring  the  relative  of  a  bureaucrat  in  return  for  more  favorable  regulatory  treatment).  In contrast, wholesale corruption  involves shifts  in the entire terrain of economic  and political  life.  It takes place when post‐Soviet managers  in the right place and at the right  time  take  over  entire  companies,  as  they  did  in  the  1990s.  It  takes  place  when  Chinese  municipal governments dispossess thousands of farmers of their land, in order to sell it for the  revenue stream, as they do right now.  When  it  comes  to  corruption,  India  is  an extremely  interesting place.  It’s  the world’s  largest democracy, albeit a messy one. Its economy has grown rapidly in the last twenty years,  albeit not as fast as China’s. Given the size and poverty of India’s population, it ought to be able  to do better. Corruption, both of the retail and wholesale variety, represents a major stumbling  block to the country’s development prospects. According to Transparency International (TI), an  international  non‐governmental  organization  that  has  developed  an  influential  ranking  of  countries according to their degree of corruption, India regularly ranks well down in the lower  half of  all  countries  surveyed,  though higher  than most of  sub‐Saharan Africa  and perennial  failed states  like Somalia, North Korea, and Afghanistan (all of which tied for  last  in the  latest  report).  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 278 In  India,  the  popular  imagination  is  captured  not  so much  by wholesale  corruption  (whose  volumes of  “black money”  can be numbing), but by  the  incessant  shakedowns  that ordinary  citizens experience  in  their  contact with  low‐level public officials. There  is even a marvelous  website, “I Paid a Bribe”  (, whose plaintive mission  is to record,  in real time,  testimonials of the daily importuning and humiliations that ordinary Indians experience. A 2013  survey  by  Transparency  International  India,  the  national  chapter  of  TI,  reports  that  71%  of  Indians consider the problem of corruption to have worsened  in recent years, while fully 86%  find political parties to be “corrupt or extremely corrupt.” Dealing with corruption entails not  just challenging specific examples of it, but in raising public consciousness that corruption isn’t  just a  fact of  life, but a condition  that can be  remedied.  It  is  for  these  reasons  that  the Zero  Rupee Note was invented.  The  story  of  the  Zero  Rupee  Note, which  is  told  in  a  variety  of  places,  begins with  Satindar Mohan Bhagat,  a NRI  (i.e. Non‐Resident  Indian), who was  a physics professor  (now  emeritus)  at  the University  of Maryland. On  a  trip  back  to  India,  Bhagat was  struck  by  the  ubiquity of the bribery culture that had beset his native country, and he hit upon the idea of the  Zero  Rupee  Note  as  a means  for  ordinary  citizens  to  register  their  dissatisfaction with  the  incessant demands by petty officials for baksheesh as a condition for any public service. When  asked  for a bribe,  the  citizen  instead hands over a Zero Rupee Note as an act of protest.  In  2006, another NRI working in the United States, Vijay Anand, returned to India to co‐found 5th  Pillar, a private group whose mission  is  to “encourage, enable, and empower every citizen of  India  to  eliminate  corruption  at  all  levels of  society.”    Since  2007, when  25,000  Zero Rupee  Notes were disbursed  in Chennai, millions more have been distributed around the country by  volunteers at specific locations—railway stations, bus stops, outdoor markets—where extortion  might be practiced by  local officials. As recent national elections  illustrate, corruption suffuses  the  basic  exercise  of  the  franchise,  where  large‐scale  vote  buying,  both  with  cash  and  intoxicants,  is  a  notorious  practice.  In  late April  2014, members  of  the Aam Aadmi,  a  small  protest party that  is an outgrowth of the  Indian anti‐corruption movement, even handed out  Zero Rupee notes  in Kurnool, Andhra Pradesh  to  register  their protest over  the  vote buying  indulged in by other political parties.  The note itself is a simple facsimile of a 50‐Rupee bill, with the same portrait of Gandhi  but with the denomination changed to “Zero Rupees.” The note exhorts its holder to “promise  to  neither  accept  nor  give  bribe”,  and  “if  anyone  demands  bribe,”  to  “give  this  NOTE  and  REPORT THE CASE!” The reverse of the note provides contact information about 5th Pillar, but is  Zero Rupee Note Front  Zero Rupee Note Back  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 279 otherwise blank white. They are printed  in five of India’s official  languages: Tamil, Malayalam,  Telugu, Kannada, and Hindi (the language of the note pictured here).  The notion of fighting bribery by handing over a worthless note seems almost touching  in its naïveté, and indeed there is something Gandhian about the strategy of fighting corruption  by engaging in, as it were, non‐violent resistance to bribery demands. There is also the quibble  that,  given  the  systemic  presence  of  corruption  in  the  Indian  economy  and  public  life,  going  after  minor  examples  of  it  seems  to  be  attacking  the  problem  from  the  wrong  end.   The  response, at least from “I Paid a Bribe,” is that “the small guy is the weakest link in the chain.” If  corruption  can  be  successfully  fought  at  the  retail  level,  then  the  large‐scale  defalcations  for  which India is notorious—the coal allocation scam of 2012, or the 2G spectrum auction scam of  2010—may become less politically tolerable. In this sense, over the long run the notes serve as  much  to educate ordinary citizens about  the unacceptability of bribes as  they do  to dissuade  public  officials  from  demanding  them.    Indeed,  a  more  potent  legal  weapon  in  the  hands  of  groups  like  5th  Pillar  is  the  Right  to  Information  Act  of  2005,  a  law  passed  by  the  Indian  Parliament  which  empowers  ordinary  citizens  to  demand  timely  access  to  information  possessed by the government.  In addition to handing out Zero Rupee Notes, 5th Pillar has engaged in a range of public  outreach efforts and other educational programs. As a non‐governmental organization, it even  enjoys special consultative status with the United Nations Economic and Social Council. The use  of such protest currency in the global fight against bribery may be an idea with legs, if interest  from countries  like Malaysia and Yemen  is any  indication (in the  latter country they are called  “Honest Riyals”, according to activist Mariam Adnan). What makes the use of Zero Rupee Notes  in India particularly promising is that, for all of its incompetent and corrupt governance, India is  a  genuine  democracy  with  a  genuine  commitment  to  the  rule  of  law.  Although  there  are  certainly examples of more authoritarian countries with cleaner governance (Singapore comes  to mind), there is in the long run no check upon the avarice of political elites if there isn’t some  mechanism that holds them accountable to the people.  With the election of Narendra Modi as India’s new Prime Minister (he  last ran Gujarat,  one of India’s least corrupt states), the fight against corruption may finally gain official support  at the highest levels of government.  REFERENCES  5th Pillar‐‐  I Paid a Bribe.  Miglani, Sanjeev, “Indian Voters Lured by Cash Handouts, Drugs, Bootleg Liquor” Reuters (Apr 15, 2014).‐india‐election‐funding‐idUSBREA3E0LQ20140415  Nagano, Fukimo, “Paying Zero for Public Services” The World Bank (December 29, 2009).‐zero‐public‐services  Wadhwani, Sita, “Zero Rupee: Fifth Pillar’s Subtle Fight Against Corruption in India” CNN (Feb. 9, 2010).‐rupee‐833044  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 280 Introduction to Confederate States of America Paper Money by Pierre Fricke  As the guns fell silent at the close of the U.S. Civil War in the spring of 1865, troops from both  sides went  home  to  rebuild  their  lives.  The  Confederates  in  the  South  were  saddled with  great  destruction,  an  occupying  Union  army,  prohibitive  new  taxes,  and  a  worthless  currency,  shunned  with  bad  memories  or  kept  as  mementos  of  a  Lost  Cause.  Union  troops  also  brought  back  mementos  including the curious, now seemingly worthless Confederate paper money.    In the  young  field  of  American  numismatics,  Confederate  paper  money  collecting  took  hold  immediately,  primarily  in  the wealthier northeast. One of  the  first  sales  of  Confederate  paper money was  held  by  W.  Elliot  Woodward  in  New  York  City  on  December  10,  1865.  A  $1000  Montgomery  issue  Confederate note brought $4.75 and a similar $500 bill  yielded $2.50. Only American colonial coins  and paper money along with U.S. large and half cents had a significant earlier collecting tradition.  The Confederate States of America began in early 1861 with much fanfare and a great deal of  hope of  independence. One of the first acts of  its provisional congress was to authorize funding the  government with bonds and the creation of paper money, starting with  large denomination,  interest  bearing notes. This Montgomery  issue was printed by the National Bank Note Company  in New York  City  and was  cut  short  upon  the  outbreak  of  hostilities  at  Ft.  Sumter,  South  Carolina  on April  12,  1861. Only 607 $1000 and $500 and 1606 $100 and $50 notes were  issued. Many were  redeemed  within the year and others saved. Today, these are highly sought after and are very scarce with 137  surviving $500 notes  currently  identified up  to 190 $100 notes.  These notes  range  in value  from a  few thousand US dollars up to over $100,000 US.  Figure 1. Type 1 PF‐1 $1000 Montgomery note.  Figure 2.  Type 3 PF‐2 $100 Montgomery note.  The  Montgomery  issue  was  quickly  supplemented  by  more  interest  bearing  $50  and  $100  printed by  the  "Southern" Bank Note Company  (American Bank Note Co  renamed)  in New Orleans,  Louisiana.  Additionally,  Secretary  of  the  Treasury  C.G.  Memminger  sought  out  other  suppliers  to  fulfill  the  new,  much  larger  authorization  of  paper  money  of  May  16,  1861.  He  settled  on    a  Richmond Virginia  firm, Hoyer & Ludwig and also had a short relationship with another New Orleans  printer,  Jules  Manouvrier whose  $5  notes were  issued.  The Hoyer &  Ludwig    notes   were   much  cruder  than  the  high  quality previous  issues and were  issued  in much  larger quantities. $100, $50,  $20,  $10  and  $5  denominations were  authorized  leaving  smaller  change  notes  to  the  States  and  local  currencies.  The  $10  and  $5 denominations were quickly and heavily  circulated as demand  for  small change drove their use. Today,  they are very rare in higher grades.  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 281       Figure 3. Type 12 PF‐1 Manouvrier note  Figure 4. Type 10 PF‐6 Rare High grade 1861 Hoyer &  Ludwig $10  Memminger  soon  realized  that  the  Confederacy  needed  a much  greater  quantity  of money  and  Congress  authorized  $100 million with  the  Act  of  August  19,  1861  creating  the  vast  Third  Series  of  Confederate  paper money.  Dated  September  2,  1861  and  printed  and  issued  from  September  1861  through January 1863, these notes offer some of the most beautiful currency in American history. Many  printers were utilized  including Hoyer &  Ludwig,  Southern Bank Note Company, Keatinge & Ball,  and  Blanton  Duncan.  The  rarest  Confederate  type  note,  the  Hoyer &  Ludwig  Eagle  and  Shield  $10  note  currently has 111 tracked  in the census.  Its sheet mate, the rare and popular  Indian Princess currently  stands at 137 known.  These two notes may cost from $5,000 to $50,000 for most examples.      Figure 5. Type 27 PF‐1 Eagle and Shield, rarest  Confederate type.  Figure 6. Type 35 PF‐1 Indian Princess, very popular  rare note  The Fourth Series finally authorized smaller change notes, $1 and $2, along with 7.3% interest bearing  $100 notes. The latter come in two major designs ‐ one with a train vignette and the other design, slaves  hoeing cotton. These $100 notes are some of the most popular notes to collect today by variety, issuing  person and place on the back, or by interest paid and other stamps also found on the back. These were  issued up through January 1863. Typically worth from $50 to several hundred dollars each, they make  great gifts and an easy start to a fun Confederate money collection.         Figure 7. Type 39 PF‐4 $100 7.3% interest bearing Train note.  Figure 8. Type 41 PF‐22 $100 7.3% interest bearing Hoer note.  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 282 During  the  1861  ‐  1862  period,  the  vast  array  of  designs  of  Confederate  paper  money,  many  of  which were easy  to  reproduce, encouraged counterfeiters  to ply  their  trade. The most notorious of  these  was  Samuel  Upham  in  Philadelphia  PA with  his  "souvenir"  or  "facsimile"  Confederate  paper money.  By  the fall of 1862  it became a  crisis  to  some degree with many  in  the Confederate  financial  community  in  something  of  an  uproar  for  the  government  to  do  something.  Various  communiqués,  stamps,  and  advertisements  to  educate  the  public  and  threaten  counterfeiters were  tried.  But  the most  effective  measure was to standardize the currency designs with the Act of October 13, 1862 which authorized $90  million. Most  of  the  subsequent  designs were  engraved  by  Keatinge  &  Ball  (the  Confederacy's  highest  quality engraver and printer). This Act was quickly followed by  the Act of March 23, 1863 authorizing $50  million  more  using  the  same  designs,  but  adding  the  $0.50  note  and  using  monthly  date  stamps  to  indicate the date a note was  issued. Over $500 million of this Series was printed. Counterfeiting waned  to  some degree, but was never completely eradicated. The notes  in these series may be acquired for as  little  as $20 up to more than $1,000 depending on grade and type.  Figure 9. Counterfeit T‐22 note printed in Philadelphia by  Samuel Upham.  Figure 10. 1863 Type 57 PF‐7 $50 Jefferson Davis note.  The  final  series  of  notes  created was  the  Seventh  Series  dated  February  17,  1864.  These  notes  are  well known well beyond collector circles and are readily recognizable with their red faces and blue backs  (on most of the denominations). The famous General Stonewall Jackson $500 note is  part  of  this  series.  These  $500  notes  are  worth  from  a  few  hundred  to  a  couple  of  thousand  dollars  each.  Other  1864  denominations may cost as little as $20‐$30.  Figure 11. 1864 Type 64 PF‐3 red Stonewall Jackson  $500 note  Figure 12. 1864 T‐68 PF‐27 horses pulling artillery $10 note.  Today,  collecting  Confederate  paper money  remains  popular  and  easy  to  do. While  a  complete  type set of 70 regular  issue notes runs between $150,000 and $500,000 for most sets,  interesting and  fun  to  collect  short  sets may  be  assembled  for  far  less.   For  example,  a  collection  of  nine  different  denominations  of  1864  notes  would  run  from  several  hundred  to  a  couple  of  thousand  dollars  depending on grade. Other popular approaches  to  collecting  include  rare  varieties, particularly errors  and watermarked  notes,  various  signatures  and  stamps  on  the  backs  of  the  7.3%  $100  notes,  and  contemporary counterfeits. The old‐timers  in  the  late 19th century collected  types, varieties and plate  letter‐number sets.  My advice to those who want to begin to collect Confederate paper money (or anything for that matter)  follows a certain pattern of learning before spending large amounts of money. To learn, you must spend  some  money  on  books,  common  notes  and  join  the  Society  of  Paper  Money  Collectors  (  ) to gain quicker access to other collectors and resources. Also, get to  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 283 know multiple dealers and proceed with caution on eBay until you know who you are buying from. This  advice  is  in contrast to some who suggest buying  the rarest notes  first…you do want  to get  the rarest  notes as early as possible in your collecting journey, but not before you learn enough to be comfortable  and have the experience purchasing common notes.  Here  is a  list of current Confederate paper money books  for your  library. Most of these  are available at and or at leading numismatic book dealers such as Stanton Books in  Roswell, GA.  Confederate  Currency,  Pierre  Fricke.  Shire  Publishing.    2012.  Distributed  by  Random  House  in  the USA. A  fun,  easy‐to‐read  primer  on  Confederate  currency,  how  it  came  about, was printed, counterfeiting, and what was going on during the Civil War as these  fascinating notes were being used.  Collecting  Confederate  Paper  Money  –  Field  Edition  2014,  Pierre  Fricke,  privately  published. 2014. This is the standard catalog, grading guide and price guide. A wealth of  current information.  History  of  Collecting  Confederate  States  of America  Paper Money  –  1865‐1945,  Pierre  Fricke and Fred Reed, privately published. 2012. This book takes you through the history  of  collecting  Confederate  money  and  also  includes  a  DVD  with  over  1000  pages  of  articles, the rare CSA note condition census, etc…  Confederate  Issuers  of  Train  and Hoer Notes, Mike McNeil,  privately  published.  2010.  Available from Pierre Fricke. This book takes you on a journey exploring the people who  issued the 7.3% interest bearing 1862‐1863 $100 notes – a popular sub‐series to collect.  A  Guide  to  Confederate  Counterfeit  Currency,  George  Tremmel.  Whitman  Publishing.  2007. This book explores the history of the counterfeiting of Confederate money during  the war and presents a catalog and pricing.  A Guide  to Southern  State Currency, Hugh  Shull. Whitman Publishing. 2006. This book  explores  the paper money  issues of  the  individual  southern  states before, during and  after the Civil War and presents a catalog and pricing.  Confederate Treasury Certificates – A Guide to IDRs, George Tremmel, Pierre Fricke, and  John Martin   Davis,  Jr.  Privately   published.  2010. This book  takes   you   on a  tour of  Confederate finance and explores these intriguing certificates that served as receipts for  trading  in  expired  Confederate money while waiting  for  new money  or  bonds  at  the  local  depository.  This  presents  interesting  information  at  the  local  level  and  offers  a  catalog and pricing as well.  Comprehensive Catalog and History of Confederate Bonds, Dr. Douglas Ball. BNR Press.  1998. Available from Pierre Fricke. This book is the standard guide to Confederate bonds  with  fascinating history documented.  It offers a  catalog and pricing as well – updated  prices may be  found  in Collecting Confederate Paper Money – Field Edition 2014  in an  Appendix.  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 284 Paris, Texas Bankers – William J. McDonald & Rufus Fenner Scott by Frank Clark Paris is the county seat of Lamar County. The first settlements in the area were in the 1820s. Local merchant George W. Wright donated fifty acres of land in February 1844 to found the town. Paris was named for Paris, France by one of Mr. Wright's employees. Paris was situated on the Central National Road of the Republic Texas. This road ran north from San Antonio through Paris and onwards just a little farther to cross the Red River into the Indian Territory. Paris had a population of around 700 on the eve of the Civil War. Lamar was one of the few Texas counties that voted against secession. However, many of its citizens would go on to serve in the Confederate States of America army. The first of two major fires swept the town in 1877. William J. McDonald (1844-1926) was one of the founders of this bank. Organization began in late 1886 and the bank received charter number 3638 on February 19, 1887. Mr. McDonald earlier had organized in adjacent counties the Citizens Bank of Clarksville and the Delta County Bank in Cooper. It is said that McDonald was careful in granting loans and that he seldom had to foreclose. Original stockholders of the First National besides McDonald were George F. Hicks, A.G. Hubbard, Edward Reuss and Rufus Fenner Scott (1848-1932). The bank building seen today on the northwest corner of the square was originally completed in 1916, but in less than three months it would be gutted by a downtown fire, the second major fire to strike the town in 39 years. However, after a year the building was completely restored. Later in 1951 it was remodeled and it is used by the bank to this very day. Mr. McDonald died in 1926 and left $850,000, the bulk of his estate, to the University of Texas in order for an observatory to be erected. The world famous McDonald Observatory was completed in 1939 in the Texas County of Jeff Davis. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 285 Another one of the founders of the bank was Rufus Fenner Scott. He was born in 1848 on his grandfather's farm just north of Detroit, Texas in Red River County. This is just a few miles to the east of Paris. Rufus would go on to serve in the Home Guard during the Civil War. After the war he hauled freight to and from the port of Jefferson, Texas and this led to him starting what later became the largest wholesale grocer concern in Paris. Next up on his ladder of success was helping with the organization of the First National Bank as mentioned earlier, but he also helped organize the Paris National Bank, charter number 5079, on July 6, 1897. This bank would consolidate with the First National Bank on March 13, 1907. Notes are known for both banks with R.F. Scott as president. Mr. Scott left his footprint in Paris in other ways besides banking. If one takes a stroll around the downtown square of Paris, you will notice another enterprise of Mr. Scott. On the northeast corner is the R.F. Scott Building. It is now home to an antique mall. Also, if you take a short walk south of downtown on South Church Street, you will find Mr. Scott's elegant former residence. Today it is known as the Scott- Roden Mansion and it has housed the Garrett Funeral Home since 1938. It is an impressive structure that was designed by German born St. Louis architect J.L. Wees. Construction took place between 1908 and 1910 and it reflects a combination of Art Nouveau and Dutch Renaissance. It is a two-and-a-half story residence that occupies a large corner lot. It has twin staircases, a full basement and a carriage house/garage. Also, the second floor has seven bedrooms and five baths. Only slight changes have been made to the house during its 104 year life. It is listed in the National Register and is also a recorded Texas Historic Landmark. R. F. Scott Building Scott-Roden Mansion ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 286 Shown here is a $5 silver certificate Series of 1934C back plate 629 mule. As a 629 mule, it ranks among the top rarities for $5 plate varieties. The M-A serial block perhaps catapults it to the very top. The note's particulars are M98327736A, plates F1908/629, and it is one of only two recorded by dedicated serial number researcher Logan Talks. The note's owner, the late Thomas Irwin (pseudonym) had recently obtained it from the family of Marty Vink, also deceased. Vink's family was liquidating his collection and found their way to Irwin through dealer Scott Lindquist. Vink had owned the note for years, and his is likely the one I had recorded in my census simply as "M98xxxxxxA." I had never seen an example until Irwin sent me scans in an email. Back plate 629 first went to press late in 1947 just as the M-A serial block for $5 silver certificates was ending. The early sheets landed on the numbering presses just in time to get those serials. The rest of them received N-A block serial numbers. The same sheets were also being routed to presses having Series of 1928E $5 legal tender and Series of 1934C $5 Federal Reserve note face plates. Small Notes by Jamie Yakes Rare $5 Silver Certificate 629 Mule ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 287 Back plate 629 has an interesting history. It was finished in normal fashion on December 29, 1933, as one of the last old-gauge $5 backs made by the Bureau of Engraving and Printing.(1) The gauge referred to the width of the gutter between the two columns of subjects on the plate. The Bureau began increasing the gauges on small-size plates starting with $1 faces in July 1934. The wider gutters on the new-gauge plates allowed plate printers more tolerance when mating printed backs onto face plates. All $5 back plates were new-gauge starting with back 630 certified on January 31, 1935. The Bureau typically rushed them to press and earmarked unused old-gauge plates for cancellation. Five-dollar backs 575 to 628 met that fate, but 629 was saved as a model of the former registration. Up to this time, it had never gone to press. Beginning in 1938, the Bureau started salvaging usable master plates for conversion into production plates. These salvaged plates, formerly known as late-finished plates, also included $1 back 470, $5 back 637, $5 silver certificate face 307, $10 silver certificate faces 86 and 87, and $20 back 204. To finish them as production plates, plate technicians etched plate serial numbers onto each of the twelve subjects on the plates, certified them, and sent them to the plate vault for eventual use. Because of when they were finished, they carried plate serials that were out of sequence with contemporary plates. Back 629, though, was not a true salvaged plate. A common thread among the other salvaged plates is that they were new-gauge plates. Because 629 was not shows that it was actually used by mistake. In fact, likely after it was pulled for safekeeping someone had penned in large letters, "Do Not Send To Press," at the top of the plate ledger page for the plate. Regardless, 629 went to press for one short period from November 17, 1947 to February 2, 1948--14 years after it was certified! Its short press-time shows that someone quickly realized it was an old-gauge plate and promptly removed it from service. It was canceled on February 17, 1948. Most observed $5 silver certificate 1934C 629 mules have serials within the first 8 million numbers of the N-A block. The other M-A note has serial M99064292A. Considering that 629 sheets comprised an extremely small percentage of $5 backs at the time, and were being parsed among three different classes, it is not surprising that 1934C 629 M-A notes are so rare. Who will be the lucky person to report the third note? Author's postscript: Thomas Irwin passed away suddenly on Father's Day of 2013. He was a dedicated collector of small-size $5 notes, and was a dear friend to me and many others in the community. This issue's column is dedicated to him. He will be missed. Acknowledgments The Professional Currency Dealers Association and the Society of Paper Money Collectors supported this research. Logan Talks provided data on $5 back plate 629 serial numbers from his personal census. Source: 1. United States Treasury. Bureau of Engraving and Printing. Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s. Volume 10. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 288 U n c o u p l e d: Paper Money’s Odd Couple Souvenir Notes Joseph E. Boling Fred Schwan In our last column we talked about short snorters. Those are a subset of a larger class of notes—souvenir notes. Travelers have long brought money home from their trips to foreign lands—sometimes accidentally, sometimes because the conversion of foreign money back to homeland currencies could not accommodate the last few minor pieces, but sometimes intentionally as souvenirs of their travels. These coins and notes could be glued into scrapbooks and photo albums, or framed with other artifacts of the trips and displayed in offices and homes. But if the trip was long enough for mail to be exchanged with family and friends, money might be sent home to correspondents as educational items or souvenirs. Many a junk box note bears graffiti indicating that it was sent from one person to another as a memento of travel or of their relationship. GIs were well-known souvenir senders. The Indian rupee that I showed last issue was probably exactly that—not intended as a short snorter per se (not an organizational record of shipmates or itineraries), but simply a record of the individual’s presence at a time and place, annotated with a greeting and a note about what that money was worth in dollars or cents when acquired by the sender. GIs were forever scrounging for items to send home to Susie (or to Aunt Maude or to Granddad). And when the supply of local currency was inadequate to satisfy the demand for souvenirs, entrepreneurs found ways to satisfy the demand. Boling continued on page 291 By far the most common souvenir notes for World War II are short snorters. We discussed them last time. Our use of the term then was to describe a note taken from circulation with signatures added to make the note into a customized souvenir. Short snorter souvenir notes were also created from scratch as souvenirs. Some of these use the term “Short Snorter” as a legend on the note—very helpful to collectors. Short snorters were printed in multiple designs for Operation Crossroads. These souvenirs seem to have been produced in somewhat large quantities based on observed examples. Operation Crossroads (per Wikipedia) was a series of two nuclear weapon tests conducted by the United States at Bikini Atoll in mid- 1946. They were the first nuclear weapon tests since Trinity in July 1945, and the first detonations of nuclear devices since the atomic bombing of Nagasaki on August 9, 1945. The purpose of the tests was to investigate the effects of nuclear weapons on warships. At least three major design types of souvenir notes were produced and a few varieties are reported as well. The three types are shown on the next page. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 289 1. Joint Task Force One, “58th Wing 509th Composite Group” in seal at right. Series 1946A. 2. USA * USN Atomic Short Snorter 3. Short Snorter, ship at center. The ship that I have seen is the USS Sumner, but the way that this note was produced allowed for other ship names. I would love to have reports of other names. In my opinion the notes are scarce in inverse of the three types that I have listed. The type one notes often come with signatures and other writing. I recently obtained images of a true short snorter version of this note with five examples taped together with a Hawaii note and a regular silver certificate for good measure. Joe has a four-note snorter with a type one and two type two notes, all signed. A short snorter souvenir note was issued in 1945 on Midway Atoll. The note features a gooney bird and the legends “West of Everything” and “East of Nothing.” This short snorter is scarce. I have not seen one with signatures. The balance of the notes that I have for you are of less certain purpose. The $10 A.R.C. (American Red Cross) River Club note clearly was not intended to circulate officially. Not only is the $10 denomination way too high to be some sort of expedient, the set goes up to $100. I am confident that most of the pieces found in collections were kept as souvenirs, but as souvenirs of what? Certainly of the River Club, but that is not saying much. My guess is that the club held a casino party and issued these notes, but I am far from certain on that. I have not seen any of these with short-snorter style signatures. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 290 The next two notes must certainly have been created as souvenirs: Okinawa Credit Reserve and Naval Receiving Station. Both of these are intriguing and interesting, but, unusual for me, I have no comment on them. Finally, I have a note that clearly was kept as a souvenir, but would best be classified as an advertising note. Still the fact that some lonely soldier, sailor, or airman kept it justifies my inclusion of it here at the risk of making the whole magazine R rated. It is a 200 yen advertising note for the Blue Sky club. The club featured entertainment. I do not think that it was Shakespeare. Boling continued: Probably the most well-known unofficial souvenir notes of WWII are the set of replicas of Japanese occupation currency intended for British Oceania. The original notes are the shortest set of JIM (Japanese invasion money). JIM were issued in five regions, each using a different currency. Millions of yen worth of JIM were printed and issued for four of those regions, but British Oceania comprises a few small islands with small populations. When thousands of US troops descended on the southwest Pacific to begin wresting control back from the Japanese, there was very little JIM to be had as souvenirs. Some troops in Australia used local sterling-denominated notes for this purpose, but how much more interesting it would be to send home a note marked “The Japanese Government.” Enter the entrepreneurs. David Klinger and Tony James have delved into the archives of the Commonwealth Bank of Australia and filled in many blanks that existed when World War II Remembered was written. In early 1944 authorities noticed a souvenir shop in Sydney selling marked replicas of the Oceania JIM. These were somewhat crude copies of the original notes, in approximately correct colors, decorated with the word REPLICA in red on their backs. Legal inquiries led to a conclusion that no laws were bring broken, since the notes had no legal tender status in Australia, even if they had NOT had the replica markings. An investigation of the source led to Economy Printers Pty. Ltd. in Brisbane, who was apparently supplying several vendors. In his defense, the proprietor stated that other replicas of the same series, not marked as replicas, were Beer ration chits – items that are not souvenirs, but actually had value in trade. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 291 also available in Brisbane. Not content to let Economy Printers enjoy the fruits of their enterprise, the authorities invoked the wartime paper rationing regulations and shut down this unapproved use of paper. We have no information about who was printing the other replicas, nor whether any enforcement action was taken regarding them. Figure 1 is a pair of one shilling notes, the top one original and the bottom one the Economy Printers copy. Note that the central guilloche is grey-green on the original, but is copied in blue using the same ink as the main plate on the replica. Figure 2 shows the backs of these same notes, and Figure 3 is a closeup of the replica marking. The original piece is watermarked with the standard JIM repeating quatrefoil. The replicas have a paper manufacturer’s watermark “524 BOND,” the significance of which we don’t know. The watermark does not appear in every note. All of Economy Printers’ work is letterpress. Figure 4 is an original one pound note. The ten-lobed guilloche at left center in pale blue was evidently not reproducible by Economy Printers, because they used a different guilloche, with six lobes (fig 5). In Figure 6 you see the red replica marking on the bottom note, but you also see where the replacement guilloche was found—in green on the back of the note. The green ink could be copied satisfactorily. The original also had a pale blue tint under the entire face; no attempt was made to copy that feature. Economy Printers also made replicas of the ½ shilling note in this series, copying both the violet main plates (face and back) and the yellow face tint. They did not make copies of the ten shilling note, presumably because they did not have one to copy. That denomination has always been the key to this set. Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 292 Figure 7 shows the one shilling note produced by another source, not yet known to us. We presume that this was part of the “other notes available in Brisbane.” This printer made no effort to copy the grey-green guilloche, in any color. He left the central field of the face blank, and also did not use a separate color for the blocks—they are included in the single face plate. The back of this note does not say anything about being a replica. This note is lithographed, the only piece among the WWII-era Oceania replicas that uses that technology. Figure 8 shows the face of the unmarked replica one pound note. This printer also had trouble with the pale blue face guilloche, and used the same solution as Economy Printers—lifted one from the back. Notes from this source come in a wide range of colors, from dark green, to a couple of shades of olive green, and bright green—from at least two plates. All of this version of the one pound replicas are letterpress. Because of inking variations, it is not always possible to distinguish between plates, so there may have been more than two in use. Because these used a different technology than the one shilling unmarked replicas, they may have been produced by different printers. The paper is unwatermarked. Did these notes ever get out to the troops on the islands, or were only the rear-echelon folks in Australia able to obtain them? Hard to know. They are not rare—barely even scarce. Hitoshi Kozono had a short snorter of an olive green unmarked one pound replica endorsed “Leyte PI 20 Nov ’44.” In our last column I showed you a short snorter on the same variety of replica signed by Phyllis Brooks, Gary Cooper, and Una Merkel—but we don’t know where that USO show was presented. No location was given by the GI who presented the note for signing. Finally, there is yet another replica of the one pound note—see Figure 9. This note does not use blue for the face guilloche, but it does use the six- lobed guilloche of the replica pieces, so evidently it was not copied from an original note. This note is truly a souvenir—it was prepared for a reunion of Guadalcanal veterans in October 1977—the 35th anniversary of the Guadalcanal campaign. It’s a souvenir of a souvenir. Figure 8 Figure 7 Fig. 9 ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 293 Whitman Encyclopedia of Obsolete Paper Money Volume 1 – An Introduction for Collectors and Historians by Q. David Bowers Reviewed by Pierre Fricke A couple of weeks before the Memphis paper money show, I arrived home to find a box from  Whitman Publishing at my door. I had known about the Whitman obsolete paper money project for a  long time and my interest grew as I had been building a small collection  of obsolete notes with vignettes that appear on Confederate notes over  the past several years. More recently,  I entered the market as a dealer,  focusing  on  northeast  and mid‐Atlantic  state  notes,  but  handling most  any.  I  expressed  interest  in  reviewing  the  new  obsolete  books,  these  books  particularly  relevant  to  the membership  of  the  Society  of  Paper  Money Collectors. Whitman Publishing obliged. So, finding this box at my  door  was  one  of  those  rare  exciting  moments  in  my  decades  of  numismatic experience where I knew when I opened it, I would be on an  enhanced journey and experience through history!  I found two wonderful books in the box, more striking due to the  beautiful  colorful  covers  and  the  immense  size  of  volume  2,  the  first  three states catalog (Connecticut, Maine, and New Hampshire). I spent a  few minutes glancing through them, but had to hurry; the Currency Club  of New  England was meeting  at  7:30PM  in Waltham, MA  some miles  away. These books solved another problem and presented an opportunity at the same time that evening  – I did not have anything for “show and tell” –until I opened that box!  Upon entering the meeting place, several members  swarmed  around  the  table  to  take  a  look  at  the  books. An  interesting  discussion  ensued which  carried on  throughout  the evening during  the breaks.  I  left  the meeting  thinking  these  books will really be a hit in the paper money collecting and dealing community – they certainly were at  this meeting!  The Whitman  Encyclopedia  of Obsolete  Paper Money  Volume  1  offers what  is missing  from  most numismatic books , an introduction for collectors and historians. The obsolete paper money field is  vast, with  thousands  of  issues  from  a wide  range  of  states  and  locales.  This  introduction  enables  a  novice  or  expert  to  learn  or  renew  their  knowledge  and  interest  in  these  interesting  notes    from  American history. The book begins with a foreword by John Ferreri, telling his story of collecting these  notes  of  New  England  and  describing  this  project.  Chapter  1  is  a  nuts  and  bolts  beginning  with  a  description of the anatomy of an obsolete note, what’s different about these notes vs. most specialties,  and some suggested paths to collect.  Grading is a significant topic in any field of numismatics and Bowers goes into that early as well.  The grading he describes  is  a more  recent  and  liberal  interpretation of grading –  similar  to what  the  grading services use – with not a lot of information about uncirculated notes as the latter is not much of  an  issue with obsolete  currency.  The most  interesting  notes  are  issued  and have been  circulated  vs.  choice or proof remainder notes. The grading described is useful and with prices in the cataloged aligned  is perfectly acceptable. However, those used to traditional grading (e.g., no more than eight cross body  folds on a Very Fine; at  least partial body remaining  for a Fine; edge nicks of any visible size making a  note Very Good) will have to adjust. The Very Fine note described within  is a Fine to the traditionalist.  Centering and margins are important – Dave notes this – and I agree. Though for a rare obsolete note,  getting one in any decent or not so decent condition may take precedence!  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 295 Dave also presents his Universal Rarity Scale – a mathematically appealing but psychologically  challenged  approach.  Appealing  due  to  its  power  of  two  progressions  which  makes  it  easier  to  remember. Challenged due to the fact that all other rarity scales use rarity 1 as common, not unique.  With no competing scale in obsolete currency, this arena is likely a good place for this scale to take hold.  Chapter 2 goes in depth into the anatomy of a bank note. This chapter is wonderfully illustrated  and      captioned     helping     one     understand      the      intricacies      and     nuances     of      the      variety     of  information presented    by    the    old    banks    on    these    notes.  Dave  explores    banks,    locations,  denominations,  imprints,  plate  letters,  obligations  and  payee  information,  safety  and  security  seals,  overprints, and backs.  Dave goes on to explore what the banks added to the notes‐‐dates, serial numbers,  signatures.  Finally,  we  see  a  section  on  post‐issue  additions  such  as  bank  overprints,  counterfeit  stamps and  such. This  chapter  really helped me understand  the  structure and meaning of what I find  on obsolete notes in general.  We proceed to a chapter on the banks and notes themselves from 1782 through 1829. This is a  section where we really learn about how these bank notes got started, how they were printed, and their  relation to other circulating coins and currency.  I enjoyed the pictures and relationship discussion with  respect to everything from Continental currency and state coinage of the 1780s through the silver and  gold  coinage  in  the  early  1800s.  Bank  note  innovations  such  as  the  stereotype  steel  plate  and  siderography are described which enabled  these notes  to  feature more detailed vignettes and greater  beauty than earlier paper money. The history of the period paints the picture of the economic and social  conditions prevalent during this early obsolete note period.  A new  chapter goes  into  the  second half of  the bank note era – 1830  through 1866 at which  time bank notes were taxed at 10% and were replaced with the new standardized national bank notes  driven out by an 1863 Act of Congress. Bank note reporters make  their appearance during  this period  and  Dave  does  an  excellent  job  describing  these  and  their  use.  I  really  liked  the  pictures  showing  examples of these bank note reporters and signature verification documents. By the 1830s, bank note  printing  techniques had  further matured and an era of ornate designs  inaugurated which would carry  through the Civil War. The Jacksonian prosperity and subsequent hard times fascinate me and are made  vivid in the prose. This chapter provides a detailed view of American history and its money through the  end of the Civil War.  Chapter 5 describes engravers and printers, naming them with some historical discourse. Dave  highlights  imprints, printer advertising  sheets, and who’s who  in  this arena. Chapter 6 continues with  details on vignettes and ornaments featured on the notes. These are grouped into various types such as  people  famous  and  obscure, Washington,  eagles,  Liberty,  ships,  bank  buildings,  etc. A  short  section  illustrating coins and medals on the notes bridges  the paper money and coin worlds. There  is another  whole  chapter dedicated  to  counterfeits,  spurious, altered and  raised notes along with  counterfeiting  avoidance techniques.  The final chapter goes into the bank notes of each state, setting the stage for a number of future  volumes cataloging obsolete notes. The first of these in volume 2, include Connecticut, Maine and New  Hampshire  in a massive,  full  color, 760 odd page  treatise. This  summary describes previously written  works on the obsolete notes of the state and briefly summarizes the banks and history of these notes in  that particular state.  I must  say  that  I  am  thrilled  to  see  these  books  published  and  await  further  volumes with  eagerness.  This  introdutory  volume  is  a must  for  anyone  collecting  paper money  as  it  describes  the  basics as well as the history of how paper money came to be in the earliest stages of the United States  of America – a time when paper money was not trusted after the Continental Currency inflation. My first  reading of this introductory volume for this review was a pleasant and educational experience and I look  forward to going into this volume in more depth. Finally, the price of $39.95 seems too good to be true  for a full color book of this magnitude and depth – but there it is!  Enjoy!  ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 296 CURRENCY AND CORRUPTION  I ACCEPTED MY FIRST BRIBE sometime in the spring of 1983. At the time, I was working as a security guard at the Koelnmesse in Cologne, Germany—the same place where, in an earlier column (Paper Money Sep/Oct 2012) I reported on my joy at being paid in large denomination deutschmark notes. In my defense (if any defense is possible), I wasn’t the one soliciting the bribe. On that particular day I had the typically pointless task of preventing vehicles from entering a particular parking lot. A barrel- chested fellow barged through my gate, his van full of exhibition materials in close pursuit. Objecting in my bad German didn’t add much to my credibility, though as a sop to my dignity the guy did flip me a five mark piece (by 1982 this would have been the ugly cupro- nickel variety with the number “5” embedded in what looks like an old television screen). Chump Change Loren Gatch Checking my morals when everyone wanted me to proved to be pretty easy, and by the end of that day I had accumulated a good slug of those chunky coins, one of which just happened to be the price of the Roth-Händle cigarettes I favored when the supply of smokes my girlfriend had rolled for me each morning ran out. In their own way those Roth-Händles were a kind of currency of sociability in their own right. Sharing them with acquaintances was an easy way of breaking the ice when language failed me. From that experience I learned two things. One was that, despite what I thought I had learned from movies and TV growing up in the Sixties, Germans weren’t particularly respectful of the uniform I wore. In fact, I understood very quickly that, while Germans might crave order, they were happy to dismiss authority figures, especially when they were phonies like me who weren’t backed up by any real power or legitimacy. Preening in my fancy peaked cap and uniform, I was actually the lowest form of Mietbullen—literally, a “rent-a-cop.” The second thing I learned had to do with the connection between corruption and cash. None of my tawdry windfall would have been possible had those Germans been obliged to, say, make a giro transfer instead of just throwing me a coin. As my article on the Zero Rupee Note in this issue makes clear, corruption (at least of the retail sort) depends upon the existence of currency as an anonymous means of transmitting resources. The idea of fighting crime and corruption by restricting mobile money is an old one, the germ of which goes back at least to Plutarch, who describes how Lycurgus introduced an iron money (pelanors) amongst the Spartans in order to make wealth harder to move. The intimate connection between corruption and cash is underscored by the recurrent arguments made against the use of large denomination currency. Arthakranti, an Indian organization, argues that the value of the biggest bill in India—Rs. 1000—is actually extemely high relative to to the per capita income of the country—so much so that, compared to the value of the American $100 bill relative to American incomes, the Indian note is worth about ten times as much. This imbalance, Arthakranti argues, invites corruption. Canada, which retired its $1000 note in 2000, still has more than $1 billion worth in circulation, which won’t come in anytime soon because bad guys find them so useful. Within the Eurozone, the €500 note (about US $750) repesents perhaps the highest value note issued by a major economic unit, with nearly 600 million of them in circulation. Intended as a blatant challenge to the international hegemony of the America’s Benjamin Franklins, the €500 has already been banned for dealing in the UK, and other Eurozone countries are having second thoughts. The Swiss, who are unrepentant about the criminal consequences of currency, maintain in circulation some $35 billion worth of their largest denomination, the CHF 1000 note (about US $1000). The prize for the highest denomination (that’s relative to purchasing power— sorry Zimbabwe!) must go to Singapore and Brunei, whose SG$ 10,000/ BN$ 10,000 notes represent nearly the same in US funds. For the Chinese, whose 100 Renminbi note (about a measly $20) is the highest valued instrument available, corruption on a cash basis of any scale requires considerable ingenuity. The government understands this, which is why it doesn’t print anything larger. In Nigeria, the prospect of introducing a 5000 Naira note has stirred protests precisely over the filip this new note might give to the kleptocracy that bleeds that poor country dry. I feel for Nigeria’s people, but if that reduced the number of email scams from that country which show up in my inbox, then the new note couldn’t be all bad. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 297 Collecting Confederate Paper Money: Field Edition 2014 by Pierre Fricke Reviewed by Mark Anderson. It is hard to believe that it will soon be a decade since the 2005 release of Pierre Fricke’s seminal and comprehensive Collecting Confederate Paper Money, at the time of its release a modern day breakthrough for collectors and researchers interested in civil war currency. Profusely illustrated and incorporating the work of the many previous scholars in the field, such as William Bradbeer, Raphael Thian, Douglas Ball, Philip Chase and Mr. Fricke himself, the book was easy to use, scrupulously detailed and highly informative cataloguing. For amateur users such as the writer, this work made identifying varieties a snap, demystified the origins of many collecting aspects of the field, and provided reliable empirical bases for assessing rarities, understanding pricing, and getting a grip on the grading standards in the confederate currency market. Weighing in at a bicep-building 4 pounds 13 ounces, the first book was perfect for home or office use, but for collectors, researchers and dealers as travel, particularly to conventions, the first generation was unwieldy. Understanding this, Mr. Fricke, who is a collector and a dealer as well as an author, promptly began work on his next project - Collecting Confederate Paper Money: Field Edition 2008. That version of the book advertised “reduced historical discourse” [although all key aspects of the currency’s origins still remained], as well as incorporating additions and suggestions from over 200 parties, the addition of specific pricing records for rarities, and a side by side [actually over and under] ability to compare color images of authentic notes and known problematic contemporary counterfeits. The new book also expanded the pictorial-based grading guide, and included the author’s perspective on the [then] recent and current market for confederate currency. Printed in full-color, it measured a svelte 6 ¼ by 9 ¼ inches and weighed in at less than half its predecessor at 2 pounds 3 ounces, making the book a more convenient item to carry and allowing a reduced price point [$40.00]. As expected, the book received positive critical acclaim and proved popular amongst its target clienteles. We now have Collecting Confederate Paper Money: Field Edition 2014, building on and refining these works. While utilizing essentially identical formatting and an almost identical organizational approach [only the author’s bio has been relocated], the book has grown by 120 pages. Organized into three parts, the book begins by covering numerous categories of factual and practical information on a variety of topics and issues relevant to either novice or experienced collectors. After the expected foreword and the copious list of acknowledgements which underscore the collaborative nature of this work, the author addresses in highly complete fashion the historical circumstances surrounding issuance, paper varieties, an understanding of grading standards, their relation to pricing, printers, plate layouts, counterfeits, different ways to collect confederate currency and the like. After this comprehensive introduction, the catalog portion of the book follows, which lists, illustrates and describes the basic types and their many PF varieties. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 298 Notably, the author has included in the new volume information which has come to light since the last edition, as well as relevant research findings since the 2008 volume, new varieties and other discoveries, and the significantly expanded grading section for each note. Roughly 75% of the book’s growth is in the 88 pages added to this 420 page catalog section The expanded geography devoted to listing pricing for different grades reflects the growth of the third party grading services’ presence in the area of collecting confederate currency. Previous editions listed prices for each note in a range of traditional collector grade labels, Very Good to Uncirculated, defined by the author earlier in the book and titled “Collector” grading. The new edition provides two tables for each note. The previously labelled “Collector” grading table has been relabeled as “Collector, C, C & A Grading” to reflect more conservative standards, and tables have been added to reflect values for notes graded by “Market, PCGS and PMG” standards. Too lengthy to detail in this review, Mr. Fricke provides a detailed explanation of this approach in the introductory text in the book. Lastly, the book includes five appendices, entitled: Confederate Bonds, Pages from Dr. Ball’s Original Manuscript, Grading, Criswell to Fricke Variety Number Cross Reference and, new to the 2014 edition, Appendix E, which is a “Quick Finder.” The Quick Finder allows rapid identification by type on the basis of color thumbnail photos. The volume finishes with information about the author and a comprehensive index For those concerned over the portability of this new and somewhat larger volume, the page growth has increased the weight by a noticeable almost 9 ounces. However, the volume’s format is unchanged at a convenient 6” x 9”, and users of the 2008 volume should detect no real difference when acclimating to the new book. Mr. Fricke’s passion for his topic and his uncountable man-hours of work in this field, researching, codifying previous works and refining the extensive research of notable others comes across in the extensive detail he has poured into this work. While the vast majority of the historical and valuation information in this volume existed in the previous edition, the changes made reflect his making every effort to share with the reader every possible added piece of useful or interesting information. The result is an elegant, organized volume with minimal compromise which presents excellent value for the quantity and quality of the information contained. Buyers of this volume will derive value and satisfaction from this work in direct proportion to the reader’s passion for the topic, requirement for detailed variety information, and market knowledge. Battle between the C.S.S. Virginia and the U.S. Monitor General Pickett’s Charge at Cemetery Hill ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 299 President’s Column May / June 2014 Spring continues with a blitz of coin and paper money shows as usual each year. These shows are usually a lot of fun and put a “face” on the hobby and the people we deal with. It’s at these events, face to face, where I have the most fun, getting out from behind the computer and putting the iPad and Droid phone down! In Mid-April, we attended the Georgia Numismatic Association (GNA) show in Dalton, GA. This is a great show for paper money aficionados to attend as there is a good mix of dealers, especially southern and obsolete paper money and programs such as the usual Society of Paper Money Collectors (SPMC) meeting where I welcomed the 25+ guests. Each guest introduced themselves and their paper money collecting interest. We then moved to the exhibit area on the bourse floor. Mack Martin gathered everyone around his exhibit on Athens obsolete currency and talked about each of the types in the display. Then we gathered around Dennis Schafluetzel’s display of the Wills Valley and Chattanooga - Alabama Railroad scrip display. Dennis talked about the scrip and induced some of the stories related to the two railroads that eventually connected Chattanooga to New Orleans, LA. We also attended two other significant shows with a paper money component. The first was Central States in Chicago. This is a major show that has a wide range of paper money dealers and a significant auction. This could be a good show to expand our Society presence into – are there any regular attendees interested in hosting, co-hosting or attending SPMC meetings at Central States? Please contact me – My other major show of the spring was Early American Coppers (EAC), not a paper money show in the least. However, I effectively had a mini special interest group meeting of Confederate paper money collectors at my table during the show. I also sold obsolete currency from their home towns to otherwise mainly coin collectors, perhaps stimulating interest in our side of the numismatic field. This is one of my favorite shows for many reasons (friends, intimacy, in-depth programs and fun events) and always a learning experience. I learn things from these people that help me in SPMC and collecting paper money too. We are now just back from Memphis – Editor Benny Bolin held this copy until we returned to get a bit of news from Memphis rather than waiting for the Sept/Oct issue. It was another great International Paper Money Show. We had a great time with a steady beat of activity. The journey there was challenging - it took 26 hours flying and driving to get to Memphis from Boston and my luggage showed up Saturday afternoon! Luckily we rented a car and went shopping Thursday evening - but that did not get the SPMC breakfast tickets to the event in time, unfortunately. We passed out some tickets Saturday and Sunday and will bring them to Memphis next year along with new tickets for those who attend the 2015 SPMC breakfast. This year's event was great fun with some exciting award winners - a special shout out to Benny Bolin recipient of the Nathan Gold award for lifetime service and to Dennis Tucker for the Forrest Daniel award for ongoing literary achievements. See my review of Whitman's Encyclopedia of Obsolete Currency by Q. David Bowers in another column in this issue. We announced the first class of the SPMC Hall of Fame and held a special dinner in honor of these inspirational leaders both past and present. The lecture series was excellent - I did get the honor of introducing Peter Huntoon's talk on Civil War Money. The exhibits were great and I enjoyed announcing the winners Saturday afternoon. Sunday was time for last minute business and heading home. I look forward to 2015. One of the big news items from the International Paper Money Show in Memphis was the release of Q. David Bowers’ Encyclopedia of Obsolete Paper Money Volume 1 and Volume 2 published by Whitman. I did a review of these volumes elsewhere in this issue, but suffice to say – these are landmark volumes that certainly improve my understanding of and appreciation for obsolete paper money! Congratulations to Q. David Bowers, Dennis Tucker, John Ferreri, Fred Reed and many others who contributed! We have three governor slots up for election/re- election where we need strong leaders and contributors to our hobby & the Society. This is an opportunity to shape our hobby as part of the leadership team of the Society of Paper Money Collectors. If you have a vision or area you would like to lead advancement in such as research programs, education, presentations, meetings, internet, etc..., please contact me at On page 222 of the May/June Paper Money magazine, we find Terry Bryan’s compilation of an index to Paper Money Magazine for 2013. I want to thank Terry for taking this task on and doing such a wonderful job with it. Looking over the index reminds me of the strength of our Society and the knowledgeable people in it with the wealth of articles published in Paper Money magazine just in 2013! Of course, it and the on-line Paper Money magazine search capabilities deliver to we Society members an immeasurable resource for learning and research. For ongoing education and introduction to paper money collecting, we are doing recordings of presentations to feature to our membership on our web site ( ). I volunteered to go first, recording both short and long versions of an introduction to Collecting Confederate Paper Money. These should be posted by the time you get this in July so please take a look and offer feedback. We also are looking for others to do the same–it is a great opportunity to spread the word about your favorite part of the hobby. Judith Murphy has volunteers lined up, so if interested contact her or me. Pierre ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 300 M_m\_rship R_port \y Fr[nk Cl[rk—SPMC M_m\_rship Dir_]tor SPMC NEW MEMBERS  04/05/2014 ‐ 14233 ‐ 14241  14233 Michael Gruber, (C), Scott Lindquist  14234 Glenn Purcell, (C&D), Jason Bradford  14235 Stan Burns, (D), Website  14236 Doug Riley, (C), PCGS  14237 Cody Regennitter, (C), Website  14238 Jay Bailey, (C), Website  14239 Michael Wiley, (C), Jason Bradford  14240 Robert Saylor, (C), Frank Clark  14241 Joseph Stan, (C), Jason Bradford  REINSTATEMENTS  None  LIFE MEMBERSHIPS  LM418 Scott Lindquist, (C & D) converted  from 9532  SPMC NEW MEMBERS  06/05/2014 ‐ 14256 – 14260  14256 Joey Lamonte, (C), Jason Bradford  14257 Bruce Walker, (C), US Large, Nationals,  Ephemera, World), Website  14258 Larry J. Pitre, (C & D), Website  14259 Jeffrey Valvano, 2 (C & D), Website  14260 William Ritger, (C), Website  REINSTATEMENTS  None  LIFE MEMBERSHIPS  None  RECRUITERS FOR NEW SPMC MEMBERS  From June 05, 2013 ‐ June 05, 2014  SPMC Website 96  Jason Bradford 51  Frank Clark 15  Scott Lindquist 9  Benny Bolin 4  Judith Murphy 3  Mark Anderson 2  Bank Note Reporter 2  Tom Denley 2  Pierre Fricke 2  Coin World 1  David Helfman 1  Edward Henley 1  Ron Horstman 1  Don Kelly 1  Rob Kravitz 1  Stephen Webber 1  Wendell Wolka 1  Total 194  Highest Membership Number For This Time Period‐14260   Highest LM Number For ThisTime Period‐418  For Membership questions, dues and contact information go to our website ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 301 Editor Sez `` Another Memphis is in the history books. After a three hour delay due to thunderstorms (a rare but very welcome occurrence in Texas), I arrived in time to set up my exhibits, say hello to some friends and horn my way into a dinner invitation. My wife reminded me that this is the 30th year in a row I have attended Memphis (and exhibited at 28 of them). It never gets old as the show seems to have evolved as I have aged. My collecting interests have changed and I now primarily go for the social aspect and SPMC business instead of my earlier "buy a lot, visit a little strategy." This year, the show seemed really busy on Friday and while busy, a bit slower on Saturday. The SPMC breakfast and Tom Bain raffle on Friday morning was well attended and a lot of fun. The raffle, emceed by the ever ebullient Wendell Wolka was again a hilarious affair. We want to thank all of our donors of raffle items including the donor of the pack of $100 bill tissues!!! Quite an expensive way to blow your nose! I was very honored to be have the Nathan Gold award bestowed on me at the breakfast. For the past 12+ years, I have been privileged to be in a leadership position and have enjoyed every bit of it. Peter Huntoon did a fantastic job coordinating the speaker series at the show which offered many speakers on diverse topics during Friday and Saturday. They were well attended and the speakers presented a fascinating array of information. The exhibits were at their usual high level of education and presentation. Thanks to Mart Delger and Bob Moon! Twenty- seven exhibitors placed 31 exhibits in 160 cases along with two very special exhibits. Andrew Shiva presented 20+ cases of #1 nationals from all 48 states and territories. This was a very exciting exhibit that I hope we can showcase in an upcoming edition of Paper Money. Lyn Knight also placed a 20+ case exhibit with notes from the Robert Bode collection of world paper money. It had examples of paper money from most of the countries of the world and he also had a treasure hunt associated with it! Special thanks and congratulation to these two gentlemen and to all the exhibitors. I was shocked, thrilled and very honored that I was awarded the Mike Crabb Most Educational Exhibit award for my exhibit on paper money from the original 13 colonies and the Continental Congress. The SPMC introduced its new Hall of Fame at the show and our inaugural class had 15 members who we celebrated at a dinner on Saturday night. The people honored have had a hand in making the SPMC into the outstanding society it is today. Peter Huntoon represented this class at the dinner. I was able to sit beside him at the dinner and was enthralled as he related story after story of his work in the field and research at the BEP, National Archives and Smithsonian. I also have to thank Peter for helping me and teaching me how to be an editor. He is truly a gem in our society. The SPMC board made a very sad but necessary decision at the meeting on Saturday morning. Since we have had no new information on Fred Reed, it was felt that in the best interest of the society to name a new permanent editor for Paper Money. In that end, I will continue to serve as editor on a permanent basis. I am humbled at the confidence that the board has in me to fill these incredibly large shoes. Our thoughts and prayers remain with Fred and his family and we wish him well and a continue recovery. So now that Memphis ’14 is behind us, we can begin to look forward to the next show. I encourage you all to be as involved as you can be with our hobby and if I can help you in any way, feel free to contact me. Benny ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 302 Society of Paper Money Collectors Board of Governors Meeting June 14, 2014 Boardroom, Marriott Downtown, Memphis, TN Present: Mike Scacci, Gary Dobbins, Scott Lindquist, Frank Clark, Judith Murphy, Pierre Fricke, Bob Moon, Jeff Bruggeman, Benny Bolin, Robert Vandevender, Mark Anderson, Wendell Wolka, Shawn Hewitt Absent: Larry Schuffman, Matt Janzen, Fred Reed, Kathy Lawrence Call to order: The meeting was called to order at 0800 AM by President Fricke Governor Election: Secretary Benny Bolin cast the lone ballot to re-elect Robert Vandevender. Financial Report: Treasurer Moon gave an update on the financial condition of the Society. The treasurer’s report for the quarter ending March 31 was previously distributed via e-mail and a year-end report will be mailed after the fiscal year ends on June 30. Tom Bain Raffle and breakfast report o 85 physical attendees ($2,000) o 74 advance and 16 walk-ups o $1,215 in raffle tickets sold o $2,199 total cost o $1,085 profit (approximately)  President Fricke will draft formal letters of thanks for raffle items to all the donors.  Current on all advertising with the exception of two 1/8th page and one full page ads. Membership report: Membership chairman Frank Clark gave his report that had been previously circulated via e-mail. No questions or concerns were expressed. Membership Secretary Report: Membership secretary Benny Bolin gave a synopsis of his report that had been previously circulated via e-mail. Our current membership is at 1375 with 48 on-line members. This is down and creates an area of concern that the board will address. Renewal notices are now sent on-line and only one delinquent card is sent before that member is dropped from the roll for an approximate cost savings of $400/year. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 303 Editors Report: Interim Editor Bolin gave an update on the current state of Paper Money. There has been great support during the issues related to the editor change and we have retained most of our regular authors and added a couple more. A discussion on the use of color was held and it was felt that color enhanced the magazine but it needed to be held to cost effective levels. Editor Bolin asked the board that if they wanted to do a book review for the magazine, to check with him first in order to ensure no duplication occurred. A discussion was held as to the status of the editor position. Even though we have tried many times and different methods, no update on Fred Reed’s condition has been forthcoming. It was decided that for the good of the Society, a permanent editor needed to be named. Mark Anderson made a motion to name Benny Bolin permanent editor on a year rolling basis at a compensation level of $1,500 per issue. Mike Scacci seconded and the motion passed unanimously. Mr. Anderson will communicate this with Mr. Reed and his daughter when he informs them of the awards Mr. Reed won. Marketing Committee Report: Gary Dobbins, chairman of the committee reported that he is working to restart the work on this committee. He asked for volunteers and his committee will be comprised of himself, Shawn Hewitt, Jeff Bruggeman, Kathy Lawrence, and President Pierre Fricke. Items for the committee to consider were working with BNR and other publications, establishing a Twitter and Facebook presence and others. Publication Committee Report: One proposal has been received for help with a book on Nebraska notes. President Fricke has been in contact with the requestor and has steered him to the process and will see where the proposal goes. Educational Grants: Two grant proposals were applied for in 2013, one for $500 to Fred Reed and one for $5,000 to Peter Huntoon. Both were granted and the board will follow up with the Reed grant at a later date. $4,000 of the Huntoon grant was taken from the Shiva fund and $1,000 from the SPMC fund. Regional Director Update: Coordinator Judith Murphy gave an update of past and future regional meetings.  Regional meetings have been very active and doing well.  The webinar plan has been placed on hold due to cost. Investigations are on-going on how to do this and possibly making presentations available as PowerPoint presentations, or via other media.  It was noted that a meeting was also held this year at the Texas Numismatic Association convention in Arlington TX, with a presentation on Fractional Currency. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 304 Audit Committee: Chairman Scacci reported that the audit was done and it was in agreement with the financial report done by Treasurer Moon. Due to Larry Schuffman leaving the board, another member is needed. Mark Anderson volunteered and was accepted. A motion was made by Wendell Wolka to accept the report, seconded by Mark Anderson and passed unanimously. Exhibits: Exhibit co-chair Moon reported there were a total of 27 exhibitors placing 31 exhibits for a total of 160 cases. He also reported that two special exhibits had been placed by Andrew Shiva and Lyn Knight bringing the total to 200 cases. Bequeaths: In follow-up, the SPMC made the following donations;  $1,000 to Lyn Knight to promote the exhibits and education.  $1,000 to the Higgins Foundation for their upcoming seminar in July. Website report: Webmaster Hewitt gave an update of the website. Two major functions to the website have been made. PCGS has been given tokens to give their members who join at that level that they have to redeem, instead of the company redeeming for them. The other added function was the first on-line voting process that was used for the article winners. This worked well with only a few issues that will be dealt with before the next session. Mr. Hewitt reported that to date, 528 new members joined via the website. Hall of Fame Report: The Hall of Fame inaugural class has been decided and will be introduced at this show. Only four of the class is living and only one-Peter Huntoon is in attendance. The board will honor the class with Peter’s representation at a dinner Saturday night. Webmaster Hewitt will also be working to establish a HOF presence on the website. Back up strategies; Mike Scacci presented a preliminary process to ensure all vital processes to the Society are backed up in case the primary person becomes unable to perform their duties. This is a work in progress that will be worked on more in the future. Obsolete Database: A proposal for establishing an on-line database via the website was presented by Shawn Hewitt. A motion was made by Mike Scacci and seconded by Wendell Wolka to have our web designers develop this with an expense up to $5,000 from the Wismer fund. Motion carried. Adjourn: President Fricke adjourned the meeting at 9:5910:10 AM. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 305 SPMC Breakfast and Tom Bain Raffle On Friday morning, SPMC members and guests gathered for our annual breakfast and Tom Bain Raffle. 90+ people attended and the raffle raised $1285 for the SPMC coffers. The raffle was emceed by Wendell Wolka who outdid himself this year! The raffle had lots of goodies that were donated by many generous contributors. Did you take the prize or the mystery box? Thanks to our donors! American Paper Connection Mark Anderson Steve Barber Benny Bolin Barry Ciociola Tom Denly Pierre Fricke Heritage Glen Jorde Rob Kravitz Rob Kverdas Tom Kyzivat Scott Lindquist Andy McKay Mickey’s Currency John Parker PCGS Currency Stacks/Bowers Pam West John & Nancy Wilson Wendell Wolka If I left anyone out, please contact me and I will recognize you in the next edition. A truly beautiful buffet awaited the guests. Wendell Wolka and President Pierre Fricke And then they descended on it! ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 306 Awards at Memphis Awards Program Purpose SPMC recognizes its members as being the lifeblood of the organization. The society values the hard work and extra effort that its members do to make the SPMC an exemplary organization. The society rewards members for their contributions through its awards program. The awards program is designed for the purpose of publicly recognizing these individuals/groups in the areas of service, literary achievements and exhibiting. Nathan Gold Award--SPMC’s highest award. Given for continuing contribution to the collecting of paper money and to the SPMC over a period of years. 2014 winner—Benny Bolin Nathan Goldstein Award—For recruiting the most members during the past year. 2014 winner—Jason Bradford-PCGS Forrest Daniel Literary Excellence Award--For exceptional literary achievements. 2014 winner— Dennis Tucker Wismer Award—Best book on paper money, stocks, bonds, etc. 2014 winner—Fred Reed—Civil War Stamp Envelopes Runners up—Neil Shafer & Tom Sheehan—Panic Scrip of 1898, 1907 & 1914 Richard Doty—Pictures from a Distant Country Pierre Fricke—Collecting Confederate Currency—2014 Field Edition. Literary awards for articles appearing in Paper Money. Confederate First place--Counterfeit Confederate Currency; New Discoveries by George Tremmel Second--1847 Note Survey of Type 64 CSA $500 Notes by Steve Feller Federal First--Series 1933 $10 Silver Certificates; the Making of a Rarity by Lee Lofthus Second--A Russian Counterfeit Intrigue by Doug Murray Nationals First--First National Bank of Bells, Texas by Frank Clark Second--Greatest Territorial Discoveries of All Time by Peter Huntoon and Andrew Shiva Obsolete First--The Rebel Who Issued Obsolete Currency by Richard Frey Second--More on the Bank Cancelling Hammer by Terry Bryan World First--Detachable Canadian Political Currency by Loren Gatch Second--The Hague Conference on Complementary Currency by Loren Gatch Miscellaneous First--150 Years Remembering the Battle of Gettysburg by Fred Reed Second--Detecting "Enhanced" Notes by Jeff Sullivan ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 307 Education at Memphis One of the really neat things about Memphis is the fact that besides the bourse and the social aspects of meeting new friends and restoring old acquaintances is the educational aspect and all the wonderful opportunities that are there. This year was no exception as the exhibits were great and the speaker series spanned both Friday and Saturday. We thank all the exhibitors and speakers for adding to the education component of the show! Exhibitors—29 exhibitors placed 31 exhibits for a total of 200 cases. Andrew Shiva Lyn Knight Robert R. Moon William Brandimore Martin J. Delger David Polson Frank E. Clark III Michael Pierce Michael J. Dougherty Steve Carr Mack Martin Ron Yeager Ron Urce Carlson R. Chambliss R. Shawn Hewitt Benny Bolin James Warmus Dennis Schafleutzel Nancy Wilson John Wilson Richard Dreger Dan Freeland Mark Anderson Robert Liddell III Dustin Johnston Pierre Fricke Michael B. Scacci Myles Fenske Armen Hovsepian Award Winners: SPMC Stephen Taylor Best in Show Mack Martin Runners Up Andrew Shiva & Armen Hovsepian IBNS Amon Carter, Jr. Award Mark Anderson PCDA John Hickman National BN Award Andrew Shiva BNR Most Inspirational Award Ron Yeager Mike Crabb Most Educational Award Benny Bolin Bill Sharp Best Obsolete Award Dennis Schafleutzel Special thanks to exhibit chairs—Mart Delger and Bob Moon. Speaker Series Presenters Shawn Hewitt Carlson Chamblis Wendell Wolka Tom Snyder Joe Boling Peter Huntoon Fred Schwan Ali Mehilba Steve Carr Roger Urce Howard Daniel Q. David Bowers Dennis Tucker Lee Lofthus Jamie Yakes Ray and Steve Feller Neil and Joel Shafer Special thanks to the speaker series coordinator—Peter Huntoon. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 308 HIGGINS MUSEUM 2014 NATIONAL BANK NOTE SEMINAR The Higgins Museum of National Banking has announced the scheduling of this year's addition to an ongoing series of educational seminars dedicated to National Bank Note topics for Wednesday and Thursday, July 23‐24, 2014. There will be presentations by four nationally recognized authorities in the field, including Lyn Knight, Glen Jorde and Dean Oakes. There presentations will embrace a range of subjects from insights into the great collections and great personalities of the hobby to in‐depth perspectives on paper money grading. The 2014 Higgins Museum National Bank Note Seminar will be held at the museum facility in Okoboji ‐‐ situated in the heart of the Great Lakes resort and recreation area of northwest Iowa ‐‐ enabling participants to enjoy the largest collection of National Bank Note issues on permanent exhibit anywhere in the country. While the Museum's focus is on the National Bank Note issues of Iowa, it presents impressive holdings from the adjoining states of Minnesota, Missouri, Nebraska, South Dakota and Wisconsin as well. Joining with the Higgins Museum in sponsoring this seminar are the Society of Paper Money Collectors, the Professional Currency Dealers Association and the Central States Numismatic Society. The registration fee for the seminar, including a catered lunch and light snacks during morning and afternoon breaks, is $75, or just $65 for members of the co‐sponsoring SPMC, PCDA and CSNS organizations. The 2014 Higgins Museum National Bank Note Seminar will be launched with a welcome reception for speakers and early arrivals at the museum from 5:00 p.m. to 6:30 p.m. on Wednesday evening, July 23. The seminar proper will get underway at 8:30 a.m. on Thursday, July 24, with a brief welcoming assembly and introductions. Each speaker is scheduled for one‐hour and 15‐minutes presentations, with short breaks between each speaker. A one‐hour roundtable question and answer discussion panel will follow the afternoon speakers, with the seminar session scheduled to formally conclude at 5:30 p.m. Those wishing to participate in the seminar sessions must register in advance. Contact Larry Adams, the Higgins Museum curator at 1‐712‐332‐5859 or 1‐515‐ 432‐1931, or by e‐mail to or Registration remittances are to be directed to the Higgins Museum, 1507 Sanborn Avenue, P. O. Box 258, Okoboji, IA 51335. A selection of overnight accommodation options within a mile of the museum are available to registrants. These include the AmericInn Lodge, 105 Brooks Park Dr. (just off U.S. Hwy. 71), 1‐800‐634‐3444; Arrowwood Resort, 1405 U.S. Hwy. 71, 1‐800‐727‐4561; Abe's Okoboji Motel, 1107 Sanborn Ave. (just two blocks from the Higgins Museum), 1‐712‐ 332‐8040; Bridges Bay Resort, 640 Linden Dr., 1‐800‐727‐4561. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 309 WANT ADS WORK FOR YOU We could all use a few extra bucks. Money Mart ads can help you sell duplicates, advertise wants, increase your collection, and have more fun with your hobby. Up to 20 words plus your address in SIX BIg ISSUES only $20.50/year!!!! * * Additional charges apply for longer ads; see rates on page above -- Send payment with ad Take it from those who have found the key to “Money Mart success” Put out your want list in “Money Mart” and see what great notes become part of your collecting future, too. (Please Print) ______________________________ ___________________________________ ___________________________________ ___________________________________ ONLY $20.50 / YEAR ! ! ! (wow) $$ money mart Paper Money will accept classified advertising on a basis of 15¢ per word (minimum charge of $3.75). Commercial word ads are now allowed. Word count: Name and address count as five words. All other words and abbre- viations, figure combinations and initials count as separate words. No checking copies. 10 discount for four or more insertions of the same copy. Authors are also offered a free three-line classified ad in recognition of their contribution to the Society. These ads are denoted by (A) and are run on a space available basis. Special: Three line ad for six issues ‘ only $20.50! Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, wil l consider cash. (293) WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277-1779; (292) WORLD PAPER MONEY. 2 stamps for new arrival price list. I actively buy and sell. Mention PM receive $3 credit. 661-298-3149. Gary Snover, PO Box 1932, Canyon Country, CA 91386 (288) WRITINg A NUMISMATIC BOOK? I can help you with all facets of bring- ing your manuscript to publication. Proven track record for 40 years. Create a legacy worthy of your efforts. Contact Fred Reed (294) Authors can request a free one-time ad. Contact the Editor (A) WANTED: Notes from the State Bank of Indiana, Bank of the State of Indiana, and related documents, reports, and other items. Write with description (include photocopy if possible) first. Wendell Wolka, PO Box 1211, Greenwood, IN 46142 (294) vermont National Bank Notes for sale. For l ist contact. (294) WANTED: Any type Nationals from Charter #10444 Forestville, NY. Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701- 4129.t (295) FREQUENT PAPER MONEY AUTHOR (Joaquin Gil del Real) Needs a copy of the Mar/Apr 1997 issue of the SPMC journal to complete his col- lection.  You can contact the editor if you can assist in this matter. (A) TRADE MY DUPLICATE, circulated FRN $1 star notes for yours I need. Have many in the low printings. Free list. Ken Kooistra, PO Box 71, Perkiomenville, PA 18074. (288) BUYINg ONLY $1 HAWAII OvERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. (291) Civil War Stamp Envelopes, the Issuers & Their Times, 672pp, hardcov- er, $89.95 postpaid. Mail checks to Paper Money editor-author Fred Reed. ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 310 United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. website: (586) 979-3400 PO Box 2 • Roseville, MI 48066 e-mail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`IW[VVK& ! !"#$%&''#()&*+,+$-"&.$ 7NOOPE7Q&R&S@SPO&7DTTP74.UTP>&R&7D.E>& D74DUPO&KK&W&KYB&IJKY& !PUON@OQ&KL&W&K_B&IJKL& 4+#&T,2#1,5$&7#5-#"& XJK&Z#)-&T(9#&>-"##-B&T,2#1,5$B&!T&YY[KV& Z#<&>(-#\&***%*(6%8/9;8/(5)+/*);8/11#8-/",9,& P$&]0)^9,"&R&V_KWY`IW[VVK& ! "#$%!&'!$%!($))!*+!,-.!/)-.$'&!01..+234!&2'!0-$2%!&2'!5!(-1)'!)$6+!7-!.12!7#&7!,-.!&))!%$8!&'%!,-.!9:;<=! /012345$%62278%9$584$%138-$ KLK&E%&Z%&IJ4'&>-"##-&R&>0(-#&UWYB&U/8,&O,-/5B&!T&YYLYK& 7:)+;'<:"#=$<>$?&(+$2+)&>@$/'&*<=+$:<>(#$ABCC$ a.>.4&DNO&EPZ&ZPU&>.4P& Z#&<0C&,5$&)#11&9,5C&$(33#"#5-&,5$&050)0,1& &N%&>%&70""#58C&(-#9)&,5$&E#,-&S,A#"&@9#"(8,5,%& D#$=&$>&)$;EF$&*$:#''$)"<*=$G+*)F$H*+=#=$%E**#>(FI$ !/"&9/"#&(53/"9,-(/5&8,11&P$&]0)^9,"&R&V_KWY`IW[VVK& & S1#,)# ,(1&9#&,5$&1#-&9#&25/*&(3&-+()&,11&*(11&*/"2%&&.&*(11&<#&<,82&(5&-+#&)+/A&/5&40#)$,CB&,5$&*(11&)#5$&C/0& -*/&8+#82)&3/"&bIIV%&&D5#&3"/9&7/11#8-/",9,B&,5$&-+#&/-+#"&3"/9&!1/"($,&70""#58C&,5$&7/(5)%&&4+,52)%& P$&]0)^9,"! FLORIDA CURRENCY AND COINS 2290 NW Boca Raton Blvd. Suite 9 Boca Raton, FL 33429 Mail: PO Box 294049, Boca Raton, FL 33429 VISIT OUR NEW WEB SITE We buy and sell many different and unusual U.S. Currency items and Neat Paper Americana. We do not buy or sell third party graded Currency. For more information call Ed Kuszmar – 561-392-8551 You are invited to visit our web page For the past 13 years we have offered a ,good selection of conservatively graded. reasonably priced currency for the collector. All notes are imaged for your review NATIONAL BANK NOTES LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM kYZIVAT (708) 784-0974 P.O. BOX 401 WESTERN SPRINGS, IL 60558 e-MAIL: TKYZIVAT@KYZIVATCURRENCY.COM ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 311 Florida Paper Money Ron Benice “I collect all kinds of Florida paper money” 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 Books available,,, MYLAR D® CURRENCY HOLDERS PRICED AS FOLLOWS BANK NOTE AND CHECK HOLDERS SIZE INCHES 50 100 500 1000 Fractional 4-3/4" x 2-1/4" $21.60 $38.70 $171.00 $302.00 Colonial 5-1/2" x 3-1/16" $22.60 $41.00 $190.00 $342.00 Small Currency 6-5/8" x 2-7/8" $22.75 $42.50 $190.00 $360.00 Large Currency 7-7/8" x 3-1/2" $26.75 $48.00 $226.00 $410.00 Auction 9 x 3-3/4" $26.75 $48.00 $226.00 $410.00 Foreign Currency 8 x 5 $32.00 $58.00 $265.00 $465.00 Checks 9-5/8 x 4-1/4" $32.00 $58.00 $265.00 $465.00 SHEET HOLDERS SIZE INCHES 10 50 100 250 Obsolete Sheet End Open 8-3/4" x 14-1/2" $20.00 $88.00 $154.00 $358.00 National Sheet Side Open 8-1/2" x 17-1/2" $21.00 $93.00 $165.00 $380.00 Stock Certificate End Open 9-1/2" x 12-1/2" $19.00 $83.00 $150.00 $345.00 Map & Bond Size End Open 18" x 24" $82.00 $365.00 $665.00 $1530.00 You may assort note holders for best price (min. 50 pcs. one size). You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY’S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 See Paper Money for Collectors Harlan J. Berk, Ltd. “The Art & Science of Numismatics” 31 N. Clark Street Chicago, IL 60602 312/609-0016 • Fax 312/609-1305 e-mail: A Full-Service Numismatic Firm Your Headquarters for All Your Collecting Needs PNG • IAPN • ANA • ANS • NLG • SPMC • PCDA DBR Currency We Pay top dollar for *National Bank notes *Large size notes *Large size FRNs and FBNs P.O. Box 28339 San Diego, CA 92198 Phone: 858-679-3350 Fax: 858-679-7505 See out eBay auctions under user ID DBRcurrency HIGGINS MUSEUM 1507 Sanborn Ave. • Box 258 Okoboji, IA 51355 (712) 332-5859 email: Open: Tuesday-Sunday 11 to 5:30 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards ___________________________________________________________Paper Money * July/Aug 2014 * Whole No. 292_____________________________________________________________ 312 OUR MEMBERS SPECIALIZE IN NATIONAL CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPC’s, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. Please visit our Web Site for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory or on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. The Professional Currency Dealers Association For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: PCDA James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 Or Visit Our Web Site At: TX & NY Auctioneer license: Samuel Foose 11727 & 0952360. Heritage Auction Galleries CA Bond #RSB2004175; CA Auctioneer Bond: Carolyn Mani #RSB2005661. Buyer’s Premium 17.5%. See for details. HERITAGE Reg. U.S. Pat & TM Off. 30991 Annual Sales Exceed $900 Million ❘ 850,000+ Online Bidder-Members 3500 Maple Ave. ❘ Dallas, TX 75219 ❘ 800-USCOINS (872-6467) ❘ DALLAS ❘ NEW YORK ❘ BEVERLY HILLS ❘ SAN FRANCISCO ❘ HOUSTON ❘ PARIS ❘ GENEVA SIGNATURE® & PLATINUM NIGHT® AUCTIONS Heritage’s Late Summer Currency Auctions Selections are HOT, HOT, HOT! ANA Chicago World’s Fair of Money August 6-11 – Consignment Deadline: June 16 Long Beach Coin Expo – September 3-5 – Consignment Deadline: July 14 Fr.1132D $500 1918 Federal Reserve Note From The St. Cloud Collection Fr. 1185★ $20 1906 Inverted Back Gold Certificate From The St. Cloud Collection Santa Fe, NMT - $10 1882 Brown Back Fr. 484 The First NB Ch.# 1750 From The St. Cloud Collection $5 Series of 1896 Silver Certificate Proof Dated 1895 $10 Series of 1861 Demand Note Face and Back Proofs “for the” Printed Hessler Plate Note Do not miss your chance to consign. Call a Heritage Consignment Director today. 800-USCOINS (872-6467) Ext. 1001 Always Accepting Quality Consignments in 38 Categories. Immediate Cash Advances up to $50 Million.