Paper Money - Vol. LVII, No. 4 - Whole No. 316 - July/August 2018

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Table of Contents

Changeover from 12 tp 18 Subject Plates--Peter Huntoon & Jamie Yakes

Choctaw Corner: A Dead Town in Alabama--Bill Gunther

Nicaraguan Paper Money--Carlson Chambliss

Series of 1882 & 1902 National Bank Replacement Note--Peter Huntoon & Shawn Hewitt

Unserialed Replacement Sheet Notes--Joe Farrenkopf

Kansas City Happenings and Board of Governors Meeting Minutes

Paper Money Vol. LVII, No. 4, Whole No. 316, July/August 2018 Official Journal of the Society of Paper Money Collectors SPMC?s 2018 Hall-of-Fame Class Martin Delger, Neil Shafer, Hugh Shull, Matthew Rothert, Louis Van Belkum 800.458.4646 West Coast Office ? 800.566.2580 East Coast Office 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 ? 949.253.0916 123 West 57th Street, New York, NY 10019 ? 212.582.2580 ? California ? New York ? New Hampshire ? Hong Kong ? Paris SBG PM ANA2018 Anderson 180530 America?s Oldest and Most Accomplished Rare Coin Auctioneer LEGENDARY COLLECTIONS | LEGENDARY RESULTS | A LEGENDARY AUCTION FIRM Now Accepting Consignments to our Official Auction of the ANA World?s Fair of Money Auction: August 14-18, 2018 | Consign U.S. Currency by: June 15, 2018 Peter A. Treglia LM #1195608 John M. Pack LM # 5736 Peter A. Treglia John M. Pack Brad Ciociola Contact us for more information today! 800.458.4646 West Coast 800.566.2580 East Coast Fr. 345c. 1880 $500 Silver Certificate. PCGS Currency Very Fine 20. Fr. 346d. 1880 $1000 Silver Certificate. PCGS Currency Very Fine 25. Fr. 376. 1891 $50 Treasury Note. PCGS Currency Gem New 65PPQ. Fr. 202a. 1861 $50 Interest Bearing Note. PCGS Currency Very Fine 25. Fr. 204. 1863 $100 Interest Bearing Note. PCGS Currency Very Fine 25. Fr. 1179. 1905 $20 Gold Certificate. PCGS Currency Gem New 65PPQ. Serial Number 1. Fr. 1218d. 1882 $1000 Gold Certificate. PCGS Currency Extremely Fine 45. Petaluma, CA. $20 1875. Fr. 1157. The First National Gold Bank. Charter #2193. PCGS Currency Extremely Fine 45. Fr. 1204. 1882 $100 Gold Certificate. PCGS Currency Extremely Fine 40. Fr. 1a. 1861 $5 Demand Note. Handwritten ?For The.? PCGS Currency Extremely Fine 40 PPQ. Fr. 115. 1901 $10 Legal Tender Note. PCGS Currency Choice About New 58 PPQ. Serial Number 1. Fr. 198a. 1863 $50 Interest Bearing Note. PCGS Currency Extremely Fine 40. Fr. 340. 1880 $100 Silver Certificate. PCGS Currency Very Fine 35. Fr. 378. 1891 $100 Treasury Note. PCGS Currency Very Fine 35. Terms?and?Conditions? PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 711 Signal Mt. Rd #197, Chattanooga, TN 37405. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Jeff Brueggeman, 711 Signal Mtn. Rd, #197, Chattanooga,TN 37405. ?Society of Paper Money Collectors, Inc. 2014. All rights reserved. Reproduction of any article in whole or part withoutwrittenapproval 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. PAPER?MONEY? Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LVII, No. 4 Whole No. 316 July/August 2018 ISSN 0031-1162 MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts 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 Alladvertising onspaceavailable basis. Copy/correspondence shouldbesent toeditor. 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ADVERTISING RATES Space 1 Time 3 Times 6 Times Fullcolor covers $1500 $2600 $4900 B&W covers 500 1400 2500 Fullpagecolor 500 1500 3000 FullpageB&W 360 1000 1800 Halfpage B&W 180 500 900 Quarterpage B&W 90 250 450 EighthpageB&W 45 125 225 Required file submission format is composite PDF v1.3 (Acrobat 4.0 compatible). If possible, submitted files should conform to ISO 15930-1: 2001 PDF/X-1a file format standard. Non-standard, application, or native file formats are not acceptable. Page size: must conform to specified publication trim size. Page bleed: must extend minimum 1/8? beyond trim for page head, foot, front. Safety margin: type and other non-bleed content must clear trim by minimum 1/2? 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 materialoreditcopy. 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. Benny Bolin, Editor Editor Email? Visit the SPMC website? Changeover from 12 to 18 Subject Plates Peter Huntoon & Jamie Yakes ...................................... 220 Choctaw Corner: A Dead Town in Alabama Bill Gunther. .................................................................. 230 Kansas City Happenings ..................................................... 233 Nicaraguan Paper Money Carlson Chambliss ........................................................ 235 Series of 1882 & 1902 National Bank Replacement Notes Peter Huntoon & Shawn Hewitt ...................................... 242 Unserialed Replacement Sheet Notes JoeFarrenkopf ................................................................... 252 Uncoupled?Joe Boling & FredSchwan????????..?258 Mea Culpa--Rick Melamed .................................................... 264 Kansas City Awards ............................................................ 269 Small Notes?$10 NY Late-Finished Face 169 Varieties ..... 272 Quartermaster Column?Michael McNeil .......................... 274 Obsolete Corner--Robert Gill.......................... ..................... 276 Interesting Mining Notes-- David Schenkman...................... 278 Chump Change--Loren Gatch ............................................... 279 Presidents Message ............................................................. 281 Editors Sez ........................................................................... 282 New Members ....................................................................... 283 2018 SPMC Board of Governor?s Meeting Minutes .......... 284 Money Mart .............................................................................. 287 ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 217 Society of Paper Money Collectors Officers and Appointees ELECTED OFFICERS: PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 VICE-PRESIDENT--Robert Vandevender II, P.O. Box 2233, Palm City, FL 34991 SECRETARY--Jeff Brueggeman, 711 Signal Mtn., Rd. #197, Chattanooga, TN 37405 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Robert Calderman, Box 7055 Gainesville, GA 30504 Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Loren Gatch 2701 Walnut St., Norman, OK 73072 Joshua T. Herbstman, Box 351759, Palm Coast, FL 32135 Steve Jennings, 214 W. Main, Freeport, IL 61023 J. Fred Maples, 7517 Oyster Bay Way, Montgomery Village, MD 20886 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Wendell A. Wolka, P.O. Box 5439, Sun City Ctr., FL 33571 APPOINTEES: PUBLISHER-EDITOR--Benny Bolin, 5510 Springhill Estates Dr. Allen, TX 75002 ADVERTISING MANAGER--Wendell A. Wolka, Box 5439 Sun City Center, FL 33571 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln.,ssex, 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--Pierre Fricke WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 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 i s held in June at the International Paper Money Show. 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 S o c i e t y 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 v i a the Society website or by check/money order sent to the treasurer. Pierre?Fricke?Buying?and?Selling!? 1861?1869?Large?Type,?Confederate?and?Obsolete?Money!? P.O. Box 1094, Sudbury, MA 01776 ;; And many more CSA, Union and Obsolete Bank Notes for sale ranging from $10 to five figures ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 218 September 21, 2018 West Coast Auction, Santa Clara, CA March 28-30, 2019 O cial 2019 ANA National Money Show Auction David L. Lawrence Convention Ctr, Pittsburgh, PA Experience the Kagin?s Di erence: ? 0% Seller?s fee ? Unprecedented Exposure to millions of potential buyers leveraging our extraordinary marketing with Amazon, ANA, Coin World, NGC, PCGS, iCollector and non-numismatic media ? Innovative marketing as we did with The ANA National Money Show Auction and the ?Saddle Ridge Hoard Treasure? ? Innovative programs including the fi rst ever KAGIN?S AUCTIONS LOYALTY PROGRAMTM that gives you 1% back in credit. ? Free educational reference books and coin club memberships99% Sell Through RECORD PRICES REALIZ ED! For more information about consigning to Kagin?s upcoming 2018-2019 auctions contact us at :, by phone: 888-852-4467 or e-mail: Contact or call 888.8Kagins to speak directly to Donald Kagin, Ph.D. for a FREE Appraisal! Consign with The Offi cial Aucti oneer of the ANA Nati onal Money Shows? Kagin?s has handled over 99% of the coins listed in The Guide Book of U.S. Coins from Colonials to Pioneer and 99% of the currency listed in Paper Money of the United States from Fractional to Errors. ?? Check out our NEW website or contact us for our latest off erings. We also handle want lists and provide auction representation. Because Kagin?s only produces two auctions a year, your consignment will receive up to four months of innovative and unprecedented ?promotion including non-numismatic venues like ?? Let Kagin?s tell your personal numismati c story and create a lasti ng legacy for your passion and accomplishments! ? 1% credit back on all purchases through the Kagin?s Auction Loyalty ProgramTM ? Free memberships in a number of coin clubs and associations. ? Free references works (some worth over $200) to successful buyers of certain types of coins. ? Free grading initiatives for consignors and buyers from NGC and PCGS. 99.9% Sell Through RECORD PRICES REALIZ ED! Consign alongside these upcoming highlights Israeli Currency Collection Mormon Coin & Currency Collection National Bank Note Collection Fractional Currency Collection Also U.S. Type Coins and Currency, Encased Postage and Pan Paci c So-Called Dollar Collection Kagin-PM-NMS-WCA-Cons-Ad-06-22-18.indd 1 6/22/18 2:44 PM The Changeover from 12- to 18-Subject Plates by Peter Huntoon and Jamie Yakes The Bureau of Engraving and Printing announced on April 28, 1952 that they were converting currency production from 12- to 18-subject sheets (Hall, 1952, p. 1). The conversion for all classes and denominations was accomplished by September 9, 1953 when the last production from 12-subject plates was delivered (Hall, 1953, p. 65). The changeover to 18-subject plates resulted directly from the development of non-offset inks. Once printed, these inks set rapidly enough that when the sheets came off the press and landed on the pile, the ink did not transfer to adjacent sheets. The story of the inks is highly technical so without going into the chemistry of inks we will focus on processing and how non-offset inks allowed for larger plate size. The conversion program began with $1 silver certificates. $1s always led the charge when innovations came along because they comprised the highest volume product so BEP management traditionally attempted to maximize their technological gains by bringing the $1s along first. Furthermore, when innovations did occur generally the first plates to be affected were the backs because backs were printed first. This almost was true for the 18-subject changeover. One of the 18-subject $1 face plates beat the first back plates to certification by a day; otherwise the tradition of backs-first prevailed. The changeover from $1 12- to 18-subject plates involved a brief experimental phase followed by a gradual switch from 12- to 18-subject production during which both types of plates were in use. Consequently, the changeover story for the $1s is the most complex and most interesting. The biggest hurdle faced by the Bureau was that there were no 18-subject bicolor rotary overprinting presses to apply the series, Treasury signatures, seals and serials. This did not deter Director Hall?s aggressive push to use the larger plates. As an interim measure, they purchased flatbed typographic presses to do the overprinting until they could design and have built rotary presses. They utilized two types of flatbed overprinting presses. The first acquired were mono-color presses that were used in tandem where one applied the black overprint and the other the blue. Next came bicolor presses that applied both colors simultaneously. Both types of flatbed overprinting presses were used through April 1954. The mono-color tandem pairs appear to have been used exclusively for overprinting $1 silver certificates, whereas the bi-color presses appear to have been employed for all the other classes and denominations (Martin and others, 2015). Newly designed and built 18-subject rotary overprinting presses came on line in March 1954. By then all production was in 18-subject form so within a period of about 10 days all of it was being processed by the new machines. Processing Printing from intaglio plates is a challenging undertaking because the image to be printed is from grooves cut into the surface of the plate rather than ridges standing in relief on the plate. Thus the ink is held in the recessed grooves and the paper must be pressed under great pressure so that it deforms downward The Paper Column ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 220 into the grooves sufficiently to pick up the ink. Traditionally it was the practice to use wetted paper in order to soften the paper so that it would deform more easily. Here is the agonizing process used to print the backs and faces before the advent of non-offset inks. 1. The paper was wetted. 2. The back was printed. 3. A tissue was inserted between the printed sheet and the previous sheet to prevent offsetting of the ink. 4. The sheets were dried to set the ink but, at the same time, the paper itself dried. 5. The tissues were removed. 6. The paper was rewetted. 7. The face was printed. 8. Tissue was inserted. 9. The sheets were dried. 10. The tissues were removed. Figure 1. 12-subject $1 silver certificate plates on a 4-plate power press. There are four plates that move counterclockwise around the press. The tower between the printer and women at the far corner inks the plates. The roll of paper in front of the printer wipes the excess ink from the plates. The roll of paper to the right polishes the plates. The women with her back towards us feeds the sheets. The black roller in front of her presses the sheets against the plates as the plates and paper pass under the roller. The women in the far corner removes the printed sheets from the press and interleaves them with tissues. Bureau of Engraving and Printing photo. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 221 Finally, after a period that usually took 10 days, the generic back- and face-printed sheets then progressed on to the numbering and sealing presses where the individual notes were simultaneously cut from the sheets and collated. The 10-step process outlined above does not include the onerous security counts and quality control inspections at each handling! Now that you have the picture, imagine pushing 196,372,000 sheets through this process, which is exactly what was done during fiscal year 1952 (Hall, 1952, p. 84). The big bottleneck of inserting and removing the tissues could be eliminated if they could develop non-offset inks. Furthermore it would be unnecessary to dry the sheets so they could move directly from the back to the face printings without rewetting the paper. The typical processing time of 10 days between back and face printings could be eliminated so the faces could be printed within a day of the backs, and all but 2 inspections and counts eliminated (BEP, 1962, p. 157-159). Now consider a further innovation. Instead of receiving dry paper from the paper mill, what if the mill delivered wet paper in sealed containers so that the BEP could get rid of their wetting machinery (BEP, 1962, p. 163). BEP chemists worked for years to develop non-offset inks and finally succeeded first with non- offset green ink in 1950, and then non-offset black ink in 1952. The tedious wetting and drying operations could now be eliminated. Differential paper expansion and shrinkage was minimized using mill-wet paper thus giving the sheets greater dimensional stability. At last, plate size could be increased to more than 12- subjects. The power presses at the BEP carried four plates that circulated around the bed of the press, each passing through a different station as they moved to the impression roller that pressed a sheet against the plate. There were inking, wiping, polishing and printing stations, all operating simultaneously as the plates moved. The BEP had a huge fleet of the 4-plate power presses that they were automating, so rather than buy new machines that could handle really large sheets, they asked how many subjects could they squeeze onto the working surfaces of their existing presses. The answer turned out to be 18. This alone would boost output by 50%. Concurrent automations such as automated plate wiping, automated feeding and centering of sheets, and automated sheet takeoff, greatly increased productivity well beyond the initial 50% gain from increased plate size. Clearly the development of non-offset inks yielded an entirely new horse race. $1 18-Subject Experiments The BEP plate makers produced two full sets of four experimental 18-subject $1 back and face plates plus a spare of each in May 1952 to test the concept of 18-subject production. These plates were identical in all respects to the production plates that followed. There was nothing on them to reveal that they were experimentals such as EP in front of the plate serial numbers as we usually observe on more modern experimental plates. The experimental plates are listed on Table 1. The term iron electrolytic on the table refers to plates made using electrolytic deposition of iron in the duplication process. Iron was the primary metal used in 1952 in contrast to nickel today. Those labeled steel were made by traditional Perkins roll transfer technology from a master die. Figure 2. Detail showing the plate serial numbers from the first $1 silver certificate 18-subject back and face plates. These were experimental plates made in May 1952. We don?t know if production from these plates reached circulation, but it is likely. Photo courtesy of the National Numismatic Collection, Smithsonian Institution. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 222 Table?1.?$1?experimental?Silver?Certificate?18?subject?plates?made?in?1952.?Date?from?BEP? (various?dates).? Treasury? Plate? Certification? Plate?No.? Serial?No.? Date?? Type?of?Plate? Backs? 162567? 5689? May?14,?1952? steel? 162581? 5690? May?15,?1952? steel? 162583? 5691? May?15,?1952? iron?electrolytic? 162385? 5692? May?20,?1952? iron?electrolytic? 162595? 5693? May?22,?1952? iron?electrolytic? 1935D?Faces? 162582? 7463? May?12,?1952? iron?electrolytic? 162584? 7464? May?20,?1952? iron?electrolytic? 162590? 7465? May?22,?1952? iron?electrolytic? 162596? 7466? May?22,?1952? iron?electrolytic? 162600? 7467? June?4,?1952? iron?electrolytic? Hall (1952, p. 58) chronicled that the first paper for printing 18-subject currency was received in the wetting section, processed on May 21, 1952, and sent to the experimental room for printing. Printing of 18-subject currency was started in Section 1 on June 16, 1952. By the end of the fiscal year on June 30, 27,647 back impressions and 22,664 face impressions already had been printed from the experimental plates.? Processing of the sheets could not proceed owing to the lack of 18-subject overprinting capability. However, the viability of 18-subject intaglio back and face production was demonstrated so 18-subject $1 production plates began to be made. What is unknown at this time is whether production from the experimental plates ultimately was sealed, numbered and issued. Let us know if you find these plate serial numbers on your notes. Such a find would not be a surprise. 12- to 18-Subject Changeover The first 18-subject production plates began to be made in July 1952, but it took a year before all classes and denominations were switched to the new size. In the meantime 12-subject plates continued to be made as needed, and printings continued from 12-subject plates. Table 2 summarizes the changeover in the manufacture of plates for all classes and denominations. The cutoff between the plate sizes was abrupt in time for all but the $1 faces and backs, although one early 18-subject back plate was made for both the $10 and $20 denominations. Table?2.?Certification?dates?for?the?last?12?subject?and?first?18?subject?production?plates.?Data? from?BEP?(various?dates).? 12?Subject?Plates? 18?Subject?Plates? Plate? Date Plate? Date? Den? Series? Serial? Certified? Series? Serial? Certified? Face?Plates:? Silver?Certificate? 1? 1935? 7500? Sep?12,?1952? 1935? 7469a? Jul?11,?1952? 5? 1934D? 2171? Aug?21,?1952? 1953? 1? Mar?31,?1953? 10? 1934D? 257? Sep?7,?1952? 1953? 1? Apr?21,?1953? Legal?Tender? 2? 1928G? 516? Sep?24,?1951? 1953? 1? Mar?26,?1953? 5? 1928F? 683? Jul?24,?1951? 1953? 1? Mar?31,?1953? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 223 Federal?Reserve? 5? 1950? 144? Aug?28,?1951? 1950A? 145? Apr?1,?1953? 10? 1950? 187? Jan?28,?1953? 1950A? 166b? Feb?13,?1953? 20? 1950? 105? Nov?26,?1951? 1950A? 106? Apr?2,?1953? 50? 1950? 22? Dec?19,?1952? 1950A? 23? Jun?9,?1953? 100? 1950? 22? Dec?22,?1952? 1950A? 23? Jul?9,?1953? Back?Plates:? 1 5735? Oct?14,?1952 ? 5694a? Jul?10,?1952? 2 390? Apr?14,?1952 391? Mar?26,?1953? 5 2096? May?28,?1952 ? 2097? Mar?31,?1953? 10 1456? Jan?8,?1953 ? 1448c? Feb?13,?1953? 20 821? Jan?2,?1953 ? 815d? Jul?1,?1953? 50 166? Aug?8,?1944 ? 167? Jun?9,?1953? 100 132? Jul?28,?1944 ? 133? Jul?9,?1953? a. See?Table?3?for?mixed?12??and?18?subject?$1?faces?and?backs. b. 18?subject?$10?faces?166?and?181?were?made?prior?to?12?subject?187,?which?was?the?last?12?subject?plate. c. 18?subject?$10?back?1448?was?made?prior?to?12?subject?1456,?which?was?the?last?12?subject?plate. d. 18?subject?$20?back?815?was?made?prior?to?12?subject?821,?which?was?the?last?12?subject?plate. We have arrived at the point where we can examine the changeover from 12- to 18-subject plate size for the all-important $1 silver certificates. One overriding constraint overshadowed this changeover; specifically, production of $1s could not cease while the BEP retooled. The 18-subject plates had to be phased in while the 12-subject plates were phased out. There would be 15 months of simultaneous production from both, where some of the power presses were set up for 12-subject production and others 18-subject. Both $1 12- and 18-subject plates were made during the transition. Table 2 reveals that the first non- experimental 18-subject $1 silver certificate face and back plates were certified respectively on July 11 and 10, 1952, whereas the last 12-subject face and back plates were certified September 10 and October 14, 1952 (BEP, various dates). The back and forth numbering of the plates is detailed on Table 3. Table?3.?Intermixed?numbering?of?$1?Silver?Certificate?12??and?18?subject?plates?during?the?12?? to?18?subject?transition.?No?proof?usually?means?the?plate?was?defective?so?it?was?not?certified.?Data? from?BEP?(various?dates).? Faces? No.?Subjects? Backs? No.?Subjects? 7462?and?lower? 12? 5688?and?lower? 12? 7463?7467? 18?experimentals? 5689?5693? 18?experimentals? 7468? no?proof? 5694?5698? 18? 7469?7472? 18? 5699?5700? no?proofs? 7473?7474? no?proofs? 5701?5702? 12? 7475?7476? 12? 5703?5704? no?proofs? 7477? no?proof? 5705? 12? 7478?7481? 12? 5706? no?proof? 7482? no?proof? 5707?5714? 12? 7483?7488? 12? 5715?5733? 18? 7489?7491? 18? 5734?5735? 12? 7492? no?proof? 5736?and?higher? 18? 7493?7498? 18? 7499?7500? 12 7501?and?higher? 18? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 224 The manufacture of 18-subject plates for all the other classes and denominations began in March 1953. The changeovers were abrupt as shown on Table 2, except for a single early 18-subject back plate for both the $10 and $20 denominations. The delivery data on Table 4 demonstrates that there was simultaneous 12- and 18-subject production for all but the low demand types during the transition period. The conversion was completed with delivery of the last 12-subject Series of 1950 $100 Federal Reserve notes for New York on September 9, 1953 (Hall, 1953, p. 65). Table?4.?Last?deliveries?of?notes?printed?from?12??and?first?deliveries?from?18?subject?plates?to? the?Treasury?by?the?Bureau?of?Engraving?and?Printing.?Data?from?Shafer?(1967).? Last?12?subject? First?18?subject? SC? $1? Oct?16,?1953? Nov?20,?1952? $5? Oct?1,?1953? May?12,?1953? $10? Apr?14,?1953? May?12,?1953? LT? $2? May?6,?1953? May?4,?1953? $5? Apr?27,?1953? May?6,?1953 FRN? $5? Sep?1,?1953? Jul?6,?1953? $10? Oct?1,?1953? Apr?3,?1953? $20? Sep?1,?1953? Aug?13,?1953? $50? Aug?28,?1953? Dec?7,?1954? $100? Sep?9,?1953? Dec?8,?1954? 18-Subject Overprinting Because the Bureau did not possess 18-subject overprinting presses at the beginning of July, 1952, they planned to acquired ?suitable flatbed cylinder presses? to accommodate overprinting of the $1 silver certificates on an interim basis (Hall, 1952, p. 1). The cylinder on each press was an impression roller that pressed the sheet against the flat bed of the press, which contained the inked elements. The first were mono- color presses operated in tandem, one for each overprinted color, and were used to overprint $1 silver certificates (Martin and others, 2015). One characteristic of these presses was that 36 serial numbering registers were mounted in or on the flat bed of the blue presses along with the 18 seals. A press of similar design had been used to seal and number 4-subject national bank note sheets between 1926 and 1929 (Hall, 1926, p. 6-7). The first recorded use for the tandem flatbed presses involved the overprinting of $1 Series of 1935D star notes on July 29, 1952 when serials *00000001D through *00144000D were printed (BEP, undated). The GG serial number block was assigned to the first regular 18-subject production with first deliveries to the Treasury on November 20, 1952 (Hall, 1953, p. 65). This was followed by the NG block for 18-subject production. Figure 3. $1 Series of 1935D star note from the first group of 18-subject notes that were numbered July 29, 1952, which included serials *00000001D to *00144000D. The sheets were fed through newly acquired mono-color flatbed cylinder presses operated in tandem, the first used to print the black and second to print the blue colors. Photo courtesy of Derek Moffitt. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 225 All the GG block notes were Series of 1935D. The changeover to the narrow back designs already had taken place so all GG production was of the narrow variety. The NG block bridged the 1935D and E series. Serials up through N46944000G were 1935Ds and those beyond were 1935Es. The intervening HG through MG blocks were assigned to 12-subject 1935D production. There was no 1935E 12-subject production. The Bureau had ?five one-color and four two-color typographic presses? in operation by June 30, 1953 (Hall, 1953, p. 42-43) as other denominations and classes of currency began to be converted to 18- subject format. Of course, the appeal of the two-color presses was that both colors could be applied simultaneously on the same press. The first overprints from the two-color presses probably consisted of the first 18-subject Federal Reserve notes that were delivered on April 3, 1953, which were $10s (Hall, 1953, p. 65). The first of the 16 newly designed 18-subject bicolor rotary overprinting presses came on line in March 1954. Their one-pass overprinting capability, coupled with the greater speed of rotary presses, materially increased production rates. These machines arrived fairly early during the Series of 1935E $1 silver certificate era so most of the Series of 1935E notes were numbered on them. All 16 of the new 18-subject rotary overprinting presses were in operation by April (Holtzclaw, 1954, p. 92). Consequently, the use of the flatbed cylinder overprinting presses - both tandem mono-color and single two-color - ceased in April 1954. The last batch of Series of 1935E star notes printed on the tandem flatbed presses consisted of 4444 and 8/18 sheets bearing numbers *6112001D-*61200000*, which were numbered on April 1, 1954. That printing had been preceded by rotary press star printings, the first of which occurred on March 20th, so there was a transition period lasting at least 10 days during which both the flatbed and rotary overprinting presses were in use (BEP, undated). The 18-subject sheets, regardless of press, were numbered consecutively through the stack rather than down the half sheets. Consequently, consecutive notes had the same plate position letter, rather than cycling through the letters on a given half sheet as before. The notes generally were numbered in production units of 8,000 sheets (144,000 notes) so serial numbering advanced by 8,000 between the subjects on a given sheet. Numbering progressed from the high to low serial numbers within the production units. Neither the 18-subject flatbed nor new bicolor rotary presses possessed the capability to cut the notes from the sheet in contrast to their 12-subject rotary predecessors. The notes had to be cut using guillotines as a separate operation. Innovation The change from 12- to 18-subject sheets allowed for major restructuring in how the work progressed through the BEP, and greatly streamlined and reduced costly counts and inspections. Figure 4. The GG serial number block was the first assigned to 18-subject Series of 1935D $1 production. Notice that this note is from the Q plate position from the new row of subjects on the right side of an 18-subject plate. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 226 Obviously, the change required retooling in many guises, including the design and construction of entirely new overprinting presses to accommodate the larger sheet size. By numbering through the stack, they eliminated the need to separate and collate the notes within the overprinting presses as individual sheets were numbered. Instead they could wait to separate the notes after all the sheets in a given batch were numbered. The result was that the 18-subject overprinting machines were far simpler than their 12- subject predecessors, and, more importantly, much faster. The entire interlinked chain of innovations chronicled here was about increasing economic efficiency through improved processing speed. The thing that set the whole in motion was the development of non-offset inks. We found it astonishing that something as seemingly benign as reformulating ink recipes could have such major ramifications. Figure 5. Fully automated 4-plate power press printing 18-subject backs. The 4 plates are traveling counterclockwise around the bed of the press. The plates are inked to the left of the printer. The roll of paper with dark smears of ink wipes the plates. The clean roll to the left polishes the plates. The vacuum mechanism in the foreground lifts, places and centers unprinted sheets onto the plate. A sheet, half of which is visible, is moving with a plate toward the printer where on the way it is being pressed by the impression roller against the plate. The printed sheets are discharged to the left of the printer where a takeoff device moves them toward the right and stacks them directly under his gaze. Notice that he is looking into a plastic housing that encloses the takeoff mechanism. This housing prevents drying of the paper so that the still wet work can be passed off to the press behind him, which prints the faces before the paper dries. Even though the paper remains wet, the non-offset inks set and do not offset onto adjacent sheets in the finished pile. Bureau of Engraving and Printing photo. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 227 References Cited Bureau of Engraving and Printing, 1962, History of the Bureau of Engraving and Printing, 1862-1962: U. S. Government Printing Office, Washington, DC, 199 p Bureau of Engraving and Printing, various dates, Certified proofs of intaglio printing plates: National Numismatic Collection, National Museum of American History, Smithsonian Institution, Washington, DC. Bureau of Engraving and Printing, undated, Ledger showing serial number press runs for $1 Series of 1935D and E silver certificates: Bureau of Engraving and Printing Historical Resources Center, Washington, DC. Hall, Alvin W., 1926, Annual Report of the Director of the Bureau of Engraving and Printing: Government Printing Office, Washington, DC, 22 p. plus appendices. Hall, Alvin W., 1952, Annual Report of the Director of the Bureau of Engraving and Printing, fiscal year ended June 30, 1952: Bureau of Engraving and Printing, Washington, DC, 115 p. Hall, Alvin W., 1953, Annual Report of the Director of the Bureau of Engraving and Printing, fiscal year ended June 30, 1953: Bureau of Engraving and Printing, Washington, DC, 87 p. Holtzclaw, Henry J., 1954, Bureau of Engraving and Printing, p. 87-96; in, Annual report of the Secretary of the Treasury on the state of the finances for the fiscal year ended June 30, 1954, U. S. Government Printing Office, Washington, DC, 781 p. Martin, James, Peter Huntoon, Bob Liddell, Jamie Yakes, Derek Moffitt, Doug Murray, Nov-Dec 2015, Mono-color 18-subject overprinting operations created distinctive errors on $1 Series of 1935D and E silver certificates: Paper Money, v. 54, p. 394-401. Shafer, Neil, 1967, A guide book of modern United States currency, 2nd edition: Whitman Publishing Company, Racine, WI, 160 p. containing data from Bureau of Engraving and Printing, Summary of small size serial numbers printed: U. S. National Archives, College Park, MD (318/450/79/18/1 v. 62). New?Method?for?Remittance?of?Dues? Effectively?immediately,?if?you?send?in?your?dues?via?USPS,?send?them?to;? Robert?Moon,?SPMC?Treasurer? 104?Chipping?Ct.? Greenwood,?SC?29649? Note?In?the?Sept/Oct?issue?of?Paper?Money,?all?members? will?get?a?dues?envelope.?Please?keep?this?envelope?and?use? it?when?your?dues?are?due.? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 228 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 Choctaw Corner: A Dead Town in Alabama by Bill Gunther The only thing left of the town of Choctaw Corner, in Clarke County, Alabama, is a highway historical marker showing the direction to the once vibrant community. The historical marker is located west of Thomasville on County Road 48 near the community of Bashi. Here is what the sign says: ?CHOCTAW CORNER, Established by Choctaw and Creek Indians about 1808 as the northern limit of boundary line between their lands. This line begins at the cut-off in South Clarke County, follows the watershed between Alabama and Tombigbee Rivers without crossing water. The disputed territory boundary was settled by two ball games, one between the warriors and one between the squaws of each tribe. The Choctaws won both games clearing forever their title to the lands.?1 The town of Bashi is located 1.3 miles south of the Marengo County line and about nine miles north west of the town of Thomasville, Alabama. When a railroad bypassed Choctaw Corner in the 1880s, most of the residents of Choctaw Corner moved toward the railroad route and created the town of Thomasville in 1888. The railroad was directly responsible for the demise of Choctaw Corner. One vestige of Choctaw Corner is the Choctaw Corner Cemetery, now located in the north-west corner of Thomasville.2 A couple of less depressing remnants of Choctaw Corner are the two pieces of scrip shown below, issued by the merchant firm of Carleton and Slade. It is their story that we recount here. The Scrip of Carleton & Slade The two notes shown below are unlisted in the major reference work on Alabama Obsolete Notes and Scrip.3 The 10 cent note was sold at Auction in 2015 and at that time was the only note known from Choctaw Corner.4 A second note from Choctaw Corner, the 25-cent note shown below, became available on eBay in November of 2016. Both notes exhibit some damage, but the two shown here are the only two notes known in the collector community and thus are considered rare. Carleton & Slade The company of Carleton and Slade in Choctaw Corner was formed in 1852 and continued until it failed in 1867.5 The two principals were Alexander B. Carleton and William H. Slade. The enterprise was, by all accounts, successful, doing some twenty-thousand dollars per year in business.6 However, the extensive use of credit and rapid devaluation of the Confederate currency eventually led to the failure of many businesses after the war. Ball commented on the use of Confederate currency that ?during the (period of) depreciation the decrease Carleton & Slade, 10 cents, No date (1862). Image courtesy of Heritage Auctions. Carleton & Slade, 25 cents, August 20, 18(62?). Image courtesy of eBay. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 230 in value was so rapid that merchants could not turn over goods fast enough to save themselves from loss?Merchants were obliged to fail, as debts due to them were paid in a currency that became worthless before they could pay their own debts.?7 Carleton and Slade both became farmers after the war (1870). Alexander Byard Carleton8 Alexander Byard Carleton was born on February 16, 1816 in Wilkes, North Carolina. Alexander?s father, Ambrose, relocated the family to Alabama sometime between 1816 and 1818 when Alexander?s brother, Harrison, was born in Clarke County. The Carleton family was among the first to settle in Alabama while it was still a Territory and a year before it became a State in 1819. Alexander was the sixth oldest of eight children born to Ambrose and Prudence Carleton. There were seven boys and one girl, the oldest being born in 1806 and the youngest born in 1821. Alexander had the distinction of outliving all but one of his siblings, passing away in 1870 at the age of 64. The longest living sibling was brother Montgomery who died at the age of 73. Alexander Carleton ?commenced business at Bashi in 1843.? He reportedly had a bell shop that was connected to his store.9 On March 22, 1845, Alexander Carleton became a Justice of the Peace and on August 16, 1847 he became Postmaster in Bashi, Clarke County.10 Interestingly, his younger brother George followed him as Postmaster on August 24, 1852. This was the same year that Carleton and Slade began their business in Choctaw Corner and may be why Alexander did not seek reappointment as Postmaster. Their business was referred to by Ball as a ??large and once prosperous business house?.11 Alexander Carleton was said to often be at ?Grove Hill as administrator of estates and tending to matters of business. He is a moralist and not a church member, and used to meet the principal lawyer of Grove Hill with the dignity of an old Roman Judge. He still retains his urbanity and dignity.?12 Ball also noted that Carleton was referred to as a very intelligent and enterprising man, sociable, hospitability, and pleasant as a friend. There is no 1860 Census record for Carleton or any record of a marriage, but the 1870 Census record shows five children ranging in age from 5 to 28 but no spouse. In 1880, Alexander lists his marital status as ?widower?. The oldest child listed in the 1870 Census was born in 1842, suggesting a marriage occurred in 1841 or 1842. The youngest child, born in 1864 or 1865, suggests the wife may have passed away between 1865 and 1870. The 1870 Census shows Carleton as a farmer with real estate valued at $300 and a personal estate valued at $250. No death record for Alexander Carleton could be located. William H. Slade13 Alexander Carleton?s business partner was William H. Slade. He was born in South Carolina on February 17, 1817 and was one year and one day younger than Carleton. It appears his family moved to Alabama by 1837 when his brother was born in Wilcox County. William Slade married on May 13, 1847 to Amanda Eleanor Vick. She was born in Alabama and only 16 years old at the time she married while William was 30 years old. The 1850 Census shows that the Slade family was living in Clarke County and he was a small merchant, with real estate valued at only $200. They had a young son, Henry, who was born in June of 1850. As noted earlier, Slade became a partner with Carleton in 1852. By 1860, the Slade?s had become rather well off, with real estate valued at $8,000 and a personal estate of $40,300. While no 1860 Census record of Carleton could be found, we presume his relative wealth would be at least equal to that of Slades. The Slades had a second son, Willie, born in 1858, followed by Bennie in 1862, Earnest in 1863 and Millie in 1869. In 1870, William H. Slade reported his occupation as a ?farmer?, with a personal estate valued at $2,300, a loss of $38,000 in his personal estate likely the direct result of the war. It is interesting that in 1870, Slade did not list owning any real estate, or at least any real estate that had any value. Farming, it seems, was a fall back occupation for many merchants whose businesses failed following the end of the war. All it took was land and a strong back. However, farming must not have been too enjoyable an occupation for Slade since he reported his occupation in 1880 as ?Justice of the Peace.? No death record for either William Slade, or his wife Amanda, could be located. No record of either Carleton or Slade enlisting in any state militia or Confederate unit during the Civil War was found, perhaps because of ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 231 their ages, 43 and 42 respectively, in 1860. Those ages would have excluded them from service at the beginning of the war.14 An interesting fact shows the town of Choctaw Corner cast the third largest number of votes for secession in Clarke County in January of 1861.15 The ?yeas? and ?nays? totaled 154 (98 for, 56 against) in Choctaw Corner, compared to a total vote of 903 (733 for, 170 against) in the County. That makes Choctaw Corner?s voting population 17 percent of the voting population in Clarke County. If that ratio holds true for the population in general (15,049 in 1860), Choctaw Corner would have had a total population of around 2,558 (15,049* .17) in 1860. As the prospect for war increased, a volunteer company was organized in Choctaw Corner. This company, as well as a second one in Grove Hill (the Grove Hill Guards), made their way to Jackson, Alabama on the Tombigbee River where the steamer ?Cherokee? waited for their arrival. The troops left Jackson amid ?the most deafening shouts and cheers from boat and shore. As the beautiful steamer moved majestically away we noticed many tearful eyes.?16 After the war, economic recovery in Alabama included a strong focus on rebuilding and adding railroads to the infrastructure. By the late 1880s, plans had been developed for a railroad that would connect Birmingham with Mobile and would pass through Clarke County. However, when the plans were revealed it was noticed that the railroad would bypass Choctaw Corner to the east in an unsettled area. Merchants in Choctaw Corner recognized the advantages of being closer to a railroad for rapid shipment of goods and improved travel and decided to move closer to the railroad. These merchants were the first settlers in what would become Thomasville in 1888. Choctaw Corner, once the largest trade center in Clarke County in the 1850?s was replaced by Thomasville by the 1890s and Choctaw Corner slowly faded away. Footnotes 1See 2,_Alabama 3Walter Rosene, Alabama Obsolete Notes and Scrip (Society of Paper Money Collectors, 1984). 4Heritage Auctions Archives ( 5Timothy Horton Ball, A Glance into the Great South-East, or Clarke County, Alabama, Grove Hill, Alabama, and its surroundings, from 1540 to 1877. 1882. British Library Historical Print Collections. Reprint. P. 470. 6Ball, p. 471. 7Ball, p. 295. 8The following data are derived from Census records via 9Ball, p. 470. 11Ball, p. 471. 12Ball, p. 471. 13The following data are derived from Census records via 14Margaret Wood, ?Civil War Conscription Laws,? Library of Congress, November 15, 2012. Males between 18 and 35 were required to serve for three years effective April 1862. 15Ball, p. 295. 16Ball, pp. 269-262. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 232 KC Happenings Many?coveted?treasures?could?be?found?on?the?bourse Do?we?really?want?to?know?what?these?guys?are?up?to? SPMC board at the club table Fractional Collectors Club Table? ? ? ? ? ? ? ? As always, Peter? ? ? coordinated?a?great? speaker?series.? New?and?past?members?of?the?SPMC?Hall?of?Fame?at?the? celebratory?dinner. To?see?all?the?members?go?to? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 233 NICARAGUA?S PAPER MONEY REFLECTS BOTH STABILITY AND CHAOS by Carlson R. Chambliss Unlike some of the other Central American countries Nicaragua had neither extensive mines nor mints in the colonial period or in the 19th century as an independent state. The first Nicaraguan coin dates only from 1878. During the 1880s some notes were issued by the National Treasury, and in 1888 two private banks controlled from London began to issue notes. One of these, however, promptly failed, thus leaving the Banco de Nicaragua as the only commercial bank in the country, although the National Treasury notes saw a wider circulation than did the notes of this bank. All Nicaraguan notes of this vintage are far from common, however. These notes were denominated in pesos and in fractions thereof, but a paper peso from Nicaragua traded at a large discount from a Mexican silver peso or a U. S. dollar at this time. American economic interests in Nicaragua have long been strong, particularly since Nicaragua was seriously considered along with Panama as a country in which a trans-oceanic canal could be built. Such a canal would take advantage of the large but relatively shallow Lago Nicaragua that drains into the Caribbean Sea. After successfully completing the sea-level Suez Canal in 1869, the French engineer Ferdinand de Lesseps (1805-94) began work on a sea level canal in Panama in 1882. This project, however, was ruined by muddy landslides and by high mortality among the workers from tropical diseases, and all work ceased in 1889. The Americans resumed work on a canal through Panama that featured locks in 1904, but serious consideration was also given at that time to the possibility of a canal through Nicaragua. Heavy U. S. involvement in the affairs of Nicaragua began in 1912 when the U. S. Marines were stationed there to control various insurgencies. They were to remain in Nicaragua for the next two decades. Adolfo Diaz, who was president from 1911-17 and again from 1926-29 along with Emiliano Chamorro (in office 1917-21) are often regarded as U. S. puppets. The U. S. was also responsible for establishing the National Bank of Nicaragua Inc., and this title (in English) appears at the top of each note above its Spanish-language equivalent up to 1941. This notice served as a rather unsubtle reminder of who was really in charge of the economic affairs of Nicaragua at this time. These notes were denominated in cordobas, the new currency that was introduced in 1912 at the rate of 12.5 old pesos to the cordoba. It was valued at one dollar in U. S. funds. In 1912 there was a limited mintage of only 35,000 one cordoba silver coins, but these evidently had a very limited circulation. The notes in circulation included fractionals for 10, 25, and 50 centavos, as well as all seven denominations from one to 100 cordobas. High-value notes for 500 and 1000 cordobas were added in the 1940s and 1950s. This currency unit was named for Francisco Hernandez de Cordoba (ca. 1475-1526), the Spanish explorer who founded the Nicaraguan cities of Grenada and Leon. It was initially planned to keep the cordoba pegged to the U. S. dollar at a rate of one-for-one, but since Nicaragua relies almost exclusively on agricultural exports for its income, the value of these items naturally went down in the 1920s and 1930s. For quite a few years the exchange rate was seven to the dollar, and by the time of the fall of the Somoza regime in 1979, the rate was down somewhat to ten to the dollar. For more than 60 years, however, the cordoba was a reasonably stable currency, and the Nicaraguan economy was subject to only modest inflation. Between 1912 and 1934 the United States exercised enough influence in Nicaraguan politics to keep ?friendly? persons in office as president. In addition to Adolfo Diaz and E. Chamorro these included Juan B. Sacasa (president from 1933-36) and the head of the newly formed National Guard, Anastasio Somoza Garcia (1896-1956), whom I shall refer to as Somoza Sr. One person who did not fall into the plans of ?friendly cooperation? was Augusto Cesar Sandino (1895-1934), a revolutionary leader who was very much at odds with the U. S. Marines and with Somoza and his National Guard. Sandino?s revolt began in 1927 at a time when Nicaragua was in effect under occupation by the U. S. Marines. Eventually he was assassinated in an ambush that was arranged by Somoza. The 45-year period between 1934 and 1979 is often referred to as the Somoza Era. Although nowhere near as brutal as was Trujillo in the Dominican Republic, Somoza was exceptionally greedy, and with time a large portion of the total economic output of Nicaragua fell into his hands or those of his cronies. The basic infrastructure of the country remained little developed, and Nicaragua continues to remain a nation with a great deal of seasonal unemployment since a large portion of the workforce serve as laborers who harvest products on plantations at only certain times of the year. Somoza had received much of his training in the USA, and he ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 235 spoke American English with total fluency. There is some debate as to whether FDR ever said, ?Somoza is an S. O. B., but he is our S. O. B.? Nonetheless the USA could always rely on Nicaragua for a ?friendly? vote at the UN, the OAS, or in other international organizations. Fractional notes for 10, 25, and 50 centavos were in general use between 1912 up to the 1940s when they were replaced by cupronickel coins. The notes of 1 cordoba to 100 cordobas used a wide variety of designs up through the 1940s, but all featured the national coat of arms on their back sides. Almost all of these were printed by the ABNC. Several of the higher values of these years are impossibly rare at least when in decent condition. Between 1953 and 1960 a new series of banknotes appeared that were uniformly 156 x 66 mm in size, i.e., identical to those of current American notes. This set did not include a 2 cordobas note, but it did include both 500 and 1000 cordobas values. The coat of arms was no longer printed on the backs of most of these, and the printer was TDLR. All of these notes carry the signature of the president of Nicaragua, and these are signed by either A. Somoza or his son Luis A. Somoza. This set is at least collectible, although the higher values are rare when in nice condition. These notes are inscribed Banco Nacional, but the demeaning (in my opinion) English-language title has been dropped, as it was on the last bunch of notes with older designs that were printed after 1945. In 1956 the elder Somoza was assassinated. He was succeeded by his elder son Luis Somoza (1922- 67). This individual had a reputation for being milder and less corrupt than his father, but he was seriously obese. Luis Somoza died of a heart attack in 1967, although his presidential term of office had already expired in 1964. The Somozas often used puppet presidents to fill out interim periods between their own terms of office, but throughout the Somoza Era much of the real power lay with the National Guard and the person who controlled it, i.e., either the elder Somoza or his younger son Anastasio Somoza Debayle (1925- 80), whom I shall refer to as Somoza Jr. During his 15 years of rule the younger son had a reputation of being more thuggish and more corrupt than was his father. In 1962 the name of the bank of issue was changed to the Banco Central de Nicaragua. The notes issued in 1962 all bear the designation Series A. The signature that appears on the left side of these notes is that of Luis A. Somoza. A portrait of Somoza Sr. appears on the 1000 cordobas value of this series, and all values feature a portrait of Francisco Cordoba on their backs. The next issue was Series B, and these were dated 1968. They were printed by TDLR rather than by the ABNC. The signature in this case is that of Somoza Jr., who signed them as A. Somoza. For this series there are no 500 or 1000 cor notes. The notes of Series C are dated 1972 and include values for 2, 500, and 1000 cor. They are all signed by A. Somoza. The 20 cor note depicts on back a vignette depicting the abrogation of the Bryan-Chamorro Treaty. This treaty which was passed in 1916 gave the United States a 99- year lease on the territory of any canal that might be built through Nicaragua as well as the right to establish military bases in that country. This was clearly an infringement of Nicaraguan sovereignty, and the treaty was eliminated in 1970. The same designs are found on the notes of Series D that are dated 1978. Only 20 and 50 cor notes were issued in this series, and they proved to be the last group of notes issued by a Somocista regime. In 1972 the city of Managua was devastated by a very strong earthquake that leveled much of the city and killed about 10,000 people. A great deal of international aid flowed into Nicaragua, but a substantial amount of this was diverted by Somoza Jr. and his cronies. One of their sharpest critics was the newspaper editor Pedro Chamorro (1924-78), who also exposed a corrupt blood bank that was being run by some cronies of Somoza. Eventually Chamorro was murdered, and it is commonly believed that the son of Somoza Jr. was involved in this assassination. Prior to this an armed opposition had been formed as far back as 1961. This was known as the Frente Sandinista de Liberacion Nacional (FSLN). Its founders were Carlos Fonseca (1936-76) and Tomas Borge (1930-2012). Initially the FSLN was engaged in small-scale operations such as bank robberies, but by the later 1970s this had developed into full-scale war with Somoza?s National Guard. Very serious fighting took place around the northern city of Esteli, and on July 19, 1979, the day after Somoza Jr. had fled the country, the opposition forces including most especially the FSLN entered the capital city Managua. Although the Sandinistas rarely used the death penalty, one assassination that they did carry out was that of Somoza Jr. A seven-man hit squad travelled to Paraguay where Somoza Jr. was living in exile, and assassinated him during an assault on his car in 1980 that utilized a variety of weapons including machine guns, grenade launchers, and a bazooka. Although some Latin American dictators such as Juan Peron, Fulgencio Batista, Marcos Perez Jimenez (Venezuela), or Gustavo Rojas Pinilla (Colombia) were able to retire into peaceful exile, this did not prove to be the case for Anastasio Somoza Debayle. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 236 Although the Sandinistas ruled as part of a coalition of liberal and left-wing elements, they wasted little time in implementing many of their economic policies. One of the first things that they did was to confiscate all of the properties that had been owned by the Somoza family. The new currency continued to be printed by TDLR, but price controls were proclaimed and restrictions were placed on the use of 500 and 1000 cordoba notes of the old regime. The 50 cor note now portrays Carlos Fonseca rather than the 19th century diplomat Maximo Jerez, and the back of this note depicts a mass rally in Managua on the day of its liberation in 1979. The first Sandinista notes were in Series E. The 50, 100, and 500 cor notes initially were printed in intaglio in the style of the earlier series, but soon these were replaced by lithographed notes for 10, 20, 50, and 100 cor along with engraved notes for 500 and 1000 cor. These notes were printed in an entirely different style that had no margins, but all of these were still printed by TDLR. The signature of the Minister of Finance has replaced that of the President. The 20 cor note now portrays German Pomanos (1937- 79), a Sandinista leader killed in the recent civil war. The 1000 cor note of Series E depicts Sandino himself along with the primitive house in which he was born. This note initially had an exchange value of about $US 20, and it is fairly scarce when in CU condition, but circulated examples are easy to come by. The Series F and G notes were dated 1984 and 1985, respectively. Attempts at price controls undertaken when a regime is being subjected to a variety of sanctions that result in severe shortages coupled with also having to deal with the hostility and sabotage of the so-called Contras, is a guaranteed recipe for hyperinflation, and indeed there was a huge amount of inflation at this time. No notes for less than 50 cor were now being issued. The 500 and 1000 cor notes of Series F are intaglio, while in Series G they are mostly lithographed. Some of the 1000 cor notes of Series G were engraved, but that process was soon dropped. Series G also included a colorful engraved note for 5000 cor that featured a portrait of Benjamin Zeledon (1879-1912), an idealist and military leader who staged a brief revolt against the American- dominated government of his day. The 50 cordoba notes of Series D and E that were issued in 1978 and 1979, respectively. The frame designs are identical, but the former portrays Maximo Jerez, a 19th century politician, while the latter has Carlos Fonseca, one of the founders of the FSLN. Note also that on the latter note, the year 1979 is referred to as the Year of Liberation These two 1000 cordoba notes have identical color schemes and the same basic designs. The face portrays Augusto Sandino, while the back depicts his primitive place of birth. The Series E note was first issued in 1980 when the exchange rate was about 20 cordobas to the dollar. By the time that Series G notes were issued in 1987, the exchange was down to about 3000 cordobas to the dollar. Note also that the Series E note has seven digits in its serial, whereas Series G has nine digits. There was also a Series F note and a Series G note printed by lithography instead of intaglio as is the case with this example. These two 5000 cordoba notes were issued about 18 months apart in 1987 and 1988, respectively. Both had face values of about $1 U. S., but the first is in the old currency, while the second is in the so-called 2nd cordoba that was valued at a rate of 1000 to the old units. Both were worth about $US 1 at their times of issue. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 237 These notes were actually issued in 1987, and in that year surcharged notes for 20 K, 50K, 100K, and 500K (i. e., 20,000 to 500,000) cor were also issued. The so- called 1st cordoba was replaced in 1988 by a 2nd cordoba, but the former unit went out more with a whimper than with a bang. By late 1987 and early 1988 inflation was running at as high as 14,000% per annum or 240% per month. Things were going very badly in the late 1980s for Nicaragua. The Sandinistas were proving themselves incompetent, and they were facing armed opposition from the so-called Contras. This group was a highly diversified bunch of persons who included ex- Somocistas together with ex-Sandinistas who had become disillusioned by what was happening in Nicaragua. Although the Sandinistas did make progress in some of their education and health programs, there was much criticism of their human rights abuses and their intrusions into traditional societies such as that of the Miskito Indians on the Caribbean coast. In the USA there was also much criticism of the clandestine support that the Reagan administration was giving to the Contras. Although the Sandinistas could be accused of gross incompetence in several of their policies, they were hardly the murderous Stalinists that were portrayed by some individuals in the Reagan administration. In 1989 a peace agreement was finally agreed upon between the Sandinistas and their opponents, which along with other things called for elections to be held in 1990. In February, 1988 a new cordoba was introduced, and the older notes were exchanged for the new notes at a rate of 1000 to 1. Although these notes were dated 1985, they were in fact issued three years later. The denominations ranged from 10 to 1000 cordobas, and the term ?cordobas nuevos? was not used. The 100 cor note portrays the young poet Rigoberto Perez Lopez (1929-56), who was the assassin of Somoza Sr. All notes are lithographed except for the first printing of the 1000 cor notes that are engraved. These are in the FA serial number block, but they seem to be much scarcer than the later notes of this value that are lithographed and bear numbers in the FC block. Inflation continued to rage, however, the nicely engraved 5000 cor note of Series G was subtly overprinted so that it could be used as a 5000 cor note in the new cordoba currency. In 1989-90 five of the values of the notes dated 1985 were surcharged with new values ranging from 10,000 cor to one million cor. Various errors including inverted surcharges are often found on these notes. Contemporary with these surcharged notes were four different small-size notes (135 x 59 mm) that were lithographed by a more local firm. Portrayed are two 19th century figures, Cleto Ordonez (1778-1839) and Jose D. Estrada (1787-1869), the latter best known for his victories against the American filibusterer William Walker in the 1850s. The 20K and 50K cor notes were issued in 1989, while the 5 and 10 million cor notes were released in 1990. These notes circulated side-by- side with the surcharged issues used in the last binge of hyperinflation in Nicaragua. Although often considered as Sandinista issues, the notes of 1990 were actually issued by the newly installed government of Violeta Chamorro. The elections held in Nicaragua in 1990 were by all accounts regarded as honest. Daniel Ortega and the FSLN lost out to Violeta Chamorro, the widow of the murdered editor Pedro Chamorro, who headed a Surcharges for 20,000 1st cordobas and for 200,000 2nd cordobas that were issued in 1987 and in 1990, respectively. The first is on an unissued Series F 20 cor, note, all examples of which were surcharged. Inverted surcharges are frequently encountered on notes that were surcharged in 1989 and 1990. These colorful but rather crudely lithographed notes are the last of the hyperinflation notes for Nicaragua. Shortly after issue they were exchanged for one and two cordobas oro, valued at 20 and 40 cents U. S., respectively. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 238 coalition of diverse parties. One of the first priorities of the new government was to end the runaway hyperinflation Substantial foreign assistance was necessary to stabilize the currency, but that was soon forthcoming from a wide variety of sources. A new unit, the cordoba oro, was established. It was valued at five million of the cordobas of 1988, or five billion of those used prior to that date. Initially it was hoped that the value of this new unit could be set equal to that of the U. S. dollar, but in 1991 a rate of five cordobas oros to the dollar was established. The hyperinflation that Nicaragua had endured between 1979 and 1991 was more severe than that experienced by any other Latin American republic over a comparable amount of time. In effect the exchange rate for the cordoba had gone from ten to the dollar at the beginning of 1979 to 25 billion to the dollar by late in 1991. Over a total of 13 years this amounts to a rate of 430% per annum or about 15% per month. Since no coins had circulated for several years, fractional notes in the new currency were needed and large numbers of 1, 5, 10, and 25 centavos notes were issued. These remain extremely common today. Ironically the same three individuals who signed the 5 and 10 million cordoba notes also signed these items a few months later. In addition to the fractional notes, normal size notes were also issued for ?, 1, 5, 10, 20, 50, and 100 in cordobas oros. This designation continued for the notes of 1991 and 1992, but the meaningless term oro (= gold) was dropped for all later issues. Various figures from Nicaraguan history appeared on these notes including Augusto Sadino on the 20 cor and Pedro Chamorro on the 50 cor note. Miguel Larreynaga (1772-1847) who advocated Central American independence early in the 19th century appeared on the 10 cor, while the well-known journalist and poet Ruben Dario (1867-1916) appeared on the 100 cor note. So far as I know, all issues of Nicaraguan banknotes issued since 1991 remain valid as currency. Nicaragua continues to suffer from a variety of economic problems and the income spread between the wealthiest people and the poorest people in this country remains among the widest found in any Latin American republic. The new cordoba that started out with a value of five per dollar is today trading about just about 30 to the dollar. Over 27 years this amounts to a rate of depreciation of about 6.8% per annum, which is just about what the current inflation rate is in that country. In recent years Nicaraguan banknotes have been printed by several firms in a variety of countries. These include TDLR and Harrison in the United Kingdom, the CBNC in Canada, Oberthur in France, and Giesecke & Devrient in Germany. In addition to the persons already mentioned, other persons portrayed have been the Indian chief Diriagen who resisted the Spanish in the 16th century, Rafaela Herrera who resisted the British in the 1760s, and Jose Santos Zelaya, who was president from 1893 to 1909 and resisted pressure from the Americans for a canal route and other concessions. These post-inflation notes issued in 1997 and 1991 honor Jose Santos Zelaya, who served as president from 1893 to 1909, and Pedro J. Chamorro, whose murder in 1978 helped trigger a nation- wide revolt against the Somoza regime. The current 100 cor notes are on paper rather than polymer plastic, although four values of this set are printed on the latter substance. Both sides of these notes honor the poet Ruben Dario. The face depicts the Dario Monument in Managua, while the back side shows the Leon Cathedral where the poet is buried. One of these notes also mentions the centenary of the introduction of the cordoba as the currency unit of Nicaragua. It would seem, however, that most citizens of this country would want to forget its extremely bumpy ride during the years 1979-91. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 239 New issues of banknotes were issued in 2002 and again in 2006, but all of these remained printed on paper. In 2007 provisions were made for printing some of the notes on polymer plastic, but the notes themselves were not issued until 2012. These notes also have the same width, but their lengths vary with denomination. In 2014 a second version of these notes was issued, but some of these differ from the first set only in the figures in the transparent windows. The 100 and 500 cordobas notes are still on paper rather than on polymer plastic. No portraits are featured, but the 100 cor note depicts the Dario Monument on its face and the Leon Cathedral (where Dario is buried) on its back. The 500 cor note depicts the crude house where Sandino was born on its face. Very recently two different designs of notes for 1000 cordobas have been issued. One of these features poetry by Ruben Dario on both sides, while the other features a vignette of Hacienda San Jacinto, a feature that has previously appeared on several Nicaraguan banknotes. Both are largely bluish green in color. Violeta Chamorro served as president until 1997. She was followed by two individuals each serving five- year terms, but in 2007 Daniel Ortega was elected president, and he has served in that office ever since. A law was passed allowing for the re-election of a sitting president, and he has taken advantage of that provision. Ortega today, however, is much less Marxist in his views than previously was the case. The big issue in Nicaragua these days is does the country want to attempt the construction of a canal? This would be quite beyond the capabilities of the Nicaraguans themselves, but the Chinese are expressing a significant amount of interest in such a project. The San Juan River that drains Lake Nicaragua is too narrow and shallow to serve as a canal, and so a ditch would have to be dug between the Caribbean and the lake in the low relief land of southeastern Nicaragua. Lake Nicaragua itself would also require channelization, since it is mostly fairly shallow. A lock system would then be required between the western end of the lake and the Pacific Ocean. All in all this would be an enormous project, and there would be numerous environmental factors to be considered. P. S. The past year has been a truly disastrous one for me. In addition to the previously mentioned robbery which by the way included all of these Nicaraguan notes ? now recovered, an even worse experience occurred in late December. At that time I fell on black ice and broke both my left arm and my left hip. I was hospitalized for almost two months. Since October of last year I have also been taking blood thinning drugs such as warfarin. Hopefully this ordeal will come to an end, but I still have a very sore left arm and I often now walk with a cane. I do hope to see many of you again in Kansas City in June. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 240 Series of 1882 and 1902 National Bank Replacement Notes printed after mid-1903 Introduction and Purpose Make-up sheets always were used to replace misprinted national bank note sheets. They were printed with the identical serial numbers as on the sheet being replaced. The purposes of this article are to explain what we now know about large size national bank note replacement notes and how you can spot them. The information presented here revises and expands on information that first appeared in Huntoon and Hewitt (2012). Candidate make-up replacement notes must meet these two requirements: (1) the note was serial numbered after mid-1903 and (2) old font numerals were used to print the serial numbers. All blue seal Series of 1882 and 1902 notes meeting these requirements qualify. However, only Series of 1882 brown backs and 1902 red seals printed after mid-1903 qualify, so you must screen their Treasury serial numbers against the table presented below. Make-up notes have long been recognized in the Series of 1929. Simek and Huntoon (2012) provide considerable information about the production of them wherein they explain that extra sheets were printed with everything except serial numbers during each print run. The extras were used as necessary to replace defectives caught by inspectors on which operators using paging machines entered the necessary serial numbers. A unique convergence of circumstances allows us to identify large size make-up replacement national bank notes printed during the period between late 1903 and at least 1920. The technique utilizes differences between the font used to print the serial numbers on regular production notes and that used to print the replacements during that period. Both regular production and make-up replacement national bank notes were numbered in sheet form on paging machines prior to September 1903. Consequently, differentiating between the two on the basis of the font is not possible for replacement notes made prior to September 1903. Figure 1. This attractive red seal from Los Angeles is particularly special because it is from a 10-10-10-20 make-up sheet substituted for a misprinted sheet during the manufacturing process in 1904. The distinguishing feature is the font used to print the sheet serial numbers. The note is from the first sheet in a 600-sheet printing bearing bank sheet serials 3201-3800. Photo courtesy of Heritage Auction Archives. The Paper Column Peter Huntoon Shawn Hewitt ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 242 Automated rotary numbering machines were introduced in 1903 that radically improved the numbering process. The numbering heads in the new machines utilized a different font than found on the paging machines, so as shown on Figure 2 the difference forms a ready and reliable basis for distinguishing between the two. It appears that the old fonts in the paging machines were replaced by new around 1920, so thereafter this diagnostic for spotting the replacements no longer works. Make-up Sheets The purpose for make-up replacements was to preserve the continuity of serial number sequences in order to maintain counts for accounting purposes. There were four situations where the Bureau of Engraving and Printing employed make-up sheets in the large size series. Three of these involved substitutions of make-ups for misprinted sheets. The make-ups carried identical serial numbers as found on the defectives in the cases of all the replacements. (1) National bank note sheets misprinted during the manufacturing process were replaced with make-up sheets. (2) National bank note sheets found to be defective after delivery to the Comptroller of the Currency were rejected by the Comptroller?s office, and the BEP replaced them with make-up sheets. This practice was discontinued during the Series of 1902 blue seal plain back issues. Thereafter the defective sheets were simply canceled by the Comptroller?s clerks so the sequences of sheets sent to the banks had telltale gaps in the serial number sequence. (3) Make-up sheets were used to replace all misprinted type note sheets found during the manufacturing process prior to the introduction of star notes beginning in 1910, and for $500 and higher denomination notes to the end of the large note era (Murray 1996). (4) Paging machines were employed to number type notes having 1-, 2- and 3-digit serial numbers and certain limited issue star note printings, which, of course, were identical to make-up notes. Numbering Technology The overprints on national bank notes consist of two parts: (1) serial numbers and (2) seals and charter numbers. Both were overprinted at the Bureau of Engraving and Printing. The sheets were numbered on numbering machines and next the seals and charter numbers were overprinted on topographic presses. The two operations were combined on flat-bed typographic presses in 1926 (Hall, 1926, p. 6-7). Prior to 1903, the numbering was carried out on the paging machines shown on Figure 3. Nationals came in 2- and 4-subject sheets, each with a Treasury and bank sheet serial number. The device held a numbering head that the operator used to stamp the respective numbers onto the sheet one at a time. The automatic rotary numbering machines shown on Figure 4 were installed in mid-1903, and began to be used to number national bank notes around September. They too printed only the serial numbers. It was the advent of these rotary presses with their new number fonts that allow us to distinguish between the regular production and make-up replacement notes. Figure 2. Comparison between the old style (top) and new style (bottom) serial number fonts found on 1903-1915 vintage national bank notes. The old-style font was used to print make-up replacement sheets on paging machines. The differences between digits 2, 3 and 4 are especially pronounced. Notice the droopy 2, exaggerated cross hatch in the 3, and particularly long diagonal sloping line in the 4. Minor differences also are apparent between digits 1, 5, 6, 7 and 9. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 243 Figure 3. Women numbering 4-subject sheets of Series of 1886 $5 silver certificates on paging machines at the Bureau of Engraving and Printing. Paging machines of this type were used to add the serials numbers to make-up replacement national bank note sheets. Next the seals and charter numbers were added on topographic presses. Photo courtesy of the Bureau of Engraving and Printing Historical Resource Center. Figure 4. Numbering 4-subject sheets of Series of 1902 red seals on rotary serial numbering machines introduced in 1903 at the Bureau of Engraving and Printing. Only the Treasury and bank sheet serial numbers are being applied in this operation. The seals and charter numbers were added later on typographic presses. Photo courtesy of the Bureau of Engraving and Printing Historical Resource Center. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 244 Figure 5. This spectacular number 1 sheet from Moravia, New York, is a make-up replacement, easily recognized by the distinctive 2 and 4 in the Treasury serial number. Number 1 sheets were at the top of their piles, so were the sheets most commonly damaged and replaced of all serial numbers. Notice how well- formed the serial numbers are. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 245 The quality and crispness of the make-up serial numbers on large nationals is exceptional. In comparison, those found on Series of 1929 notes are quite sloppy. The numbers on the Moravia sheet illustrated here as Figure 5 are precisely placed and perfectly formed. Diagnostics National bank notes meeting the following criteria are replacements. 1. The note must have a blue seal or, if a Series of 1882 brown back or 1902 red seal, it must have a Treasury serial number greater than these: Sheet Combination 1882 Brown Backs 1902 Red Seals 5-5-5-5 H705403H A530328 10-10-10-10 all qualify all qualify 10-10-10-20 E538996E B241777 50-100 B474307 A92661 2. The serial numbers must be composed of old style numerals as shown on Figure 2. Series of 1882 brown backs without regional letters don?t qualify because all were printed before 1903. The serial numbers listed above will be adjusted as new observations are made. We occasionally find make-up replacement notes with a new or non-traditional font numeral mixed in among the old-style numbers. These appear to represent cases where worn or damaged number wheels were swapped out and replaced by wheels made by other suppliers. See Figure 6. Rejected Misprints Occasionally the clerks in the office of the Comptroller of the Currency found misprinted sheets. They rejected them and ordered perfect replacements from the BEP up until the beginning of the 1902 plain back era. This created an onerous, tedious situation at the BEP. The face plate for the affected bank had to be checked out of the plate vault so the necessary image could be printed on an appropriate back drawn from preprinted back stock. Then the new sheet had to be forwarded down the line for application of the same serial numbers as on the rejected sheet and finally be overprinted with the seals and charter numbers. We located reject orders requesting replacements for misprints among the correspondence files of the director of the Bureau of Engraving and Printing in the National Archives. One is reproduced here as Figure 7. Figure 6. The 4 in the Treasury serial number on this New York make-up replacement note printed in 1919 is not an old-style font character. All the other numerals in both serials are old font. The occasional anomalous numeral such as this probably was printed from a new number wheel made by another supplier that was used to swap out a worn or damaged wheel in the numbering head on the paging machine. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 246 Figure 7. Order from Deputy Comptroller of the Currency Fowler to BEP Director Ralph requesting that a Series of 1902 date back 10-10-10-20 make-up sheet be prepared to replace a misprint found by his clerks. Notice the distinctive droopy 2 in the Treasury number and the 3s with exaggerated cross hatch in both numbers that were stamped on the order. It wasn?t long after this order was executed that the distinctive fonts used to make serial numbers on replacement sheets were replaced. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 247 The letter illustrated reached BEP Director Ralph, who in turn bounced it down the line until it and the make-up sheet that it called for arrived at the numbering division. The paging machine operator dialed in the appropriate numbers called for and tested them on the most convenient piece of paper available before affixing them to the make-up sheet. The spectacular result was the perfectly printed serial numbers on the order form! Notice that the numbers were printed with the telltale old-style font that we use to distinguish make- up replacement sheets. Discovery The discovery of how to distinguish between make-up and regular production notes outlined here is a great tale of numismatic deductive sleuth work worth telling. Co-author Hewitt started to recognize that numbers from two different fonts were used on Series of 1902 red seals. The older font appeared on all the earliest notes in the series, but then appeared rather randomly later on. He then wondered if the older font might somehow have been used exclusively on make- up notes during the latter printings for the series. At first, he attempted to find examples of notes printed after late 1903 with old style numbers. He knew from work on the Series of 1929 nationals that the most replaced sheets were the number 1 sheets or Figure 8. Significant pair of St. Louis brown back $10s from the same press run from the same plate position wherein the top note bears replacement sheet serial numbers and the bottom note has conventional numbers. Notice the distinctive droopy 2's in the Treasury serial number and exaggerated cross bar on the 3 in the bank serial number on the top note. Photos courtesy of Heritage Auction Archives. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 248 first sheets in successive printings because those sheets were most susceptible to damage. He focused on serial number 1 Series of 1902 red seals and on notes with serial numbers that looked like first numbers in successive print runs. This yielded a surprising number of examples and gave him confidence that he was indeed looking at replacements. His was no small effort. He ground through images of some 4,000 notes in auction catalogs and various auction archives, especially those in the Heritage Auction Archives and the National Currency Foundation census websites. The search tools available on the National Currency Foundation website made the study feasible because through them he was able to isolate the notes of interest that he had to view. A critical test had to be passed. Hewitt had to find a pair of notes both of which were from the same serial numbering press run and the same plate position wherein the serial numbers on the respective notes exhibited different fonts. Such a pair would prove conclusively that a substitution had been made. A hand full of such pairs has been identified. A spectacular uncirculated Series of 1882 example from St. Louis is shown on Figure 8. Another example is a pair of Series of 1882 brown back $5s from The First National Bank of Donora, Pennsylvania, charter 5835, with serials T45064T-1-A and T45385T-322- A, where the number 1 is the replacement. The Donora notes can be viewed on the National Currency Foundation website. Icing on cake though is the consecutive pair of number 1 and 2 Series of 1902 $5s from the A plate position from the Oklahoma City bank illustrated on Figure 9 that was printed in 1910. The 2 and 3 in the Treasury number on the number 1 note reveals that it is a make-up replacement. Compare those numerals with their counterparts on the number 2 note printed on a rotary press. Perspective Collectors have long recognized Series of 1929 replacement notes, but have been frustrated by not being able to readily identify their counterparts in the large size series. We are chipping away at solving Figure 9. The number 1 note in this consecutive Oklahoma City pair from the same plate position is a make- up replacement note. All the numerals in the serial numbers on the number 1 note are old font whereas those on the number 2 are new font. Compare especially the 2s and 3s. Photos courtesy of Heritage Auction Archives. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 249 that problem by at least providing a protocol for recognizing the ones made after mid-1903 and at least into 1920. Over the last five years co-author Hewitt has found 155 replacements after viewing more than 10,000 images of notes printed during the critical 1903 to 1920 window where circumstances allow us to identify them. The replacements are sprinkled through all the series and types that were current then. Some interesting statistics are revealed from this research. Amazingly about 20 percent of the number 1 Series of 1902 red seals and date backs that are illustrated in the National Currency Foundation census from the critical window are replacements. This finding demonstrates that those vulnerable sheets at the top of their stacks were frequently damaged, which is consistent with what we see in the 1929 series. In contrast, for non-number 1 notes, the replacements account for a mere 0.1 to 0.5 percent of the total viewed depending on type and denomination. References Cited and Sources of Data Bureau of Engraving and Printing, 1914, Central correspondence files of the Bureau of Engraving and Printing, Record Group 318, locator 450/79/10/5 box 13, national currency, defective: U. S. National Archives, College Park, MD. Friedberg, Arthur L., and Ira S. Friedberg, 2013, Paper money of the United States, 20th Edition: Coin and Currency Institute, New York, 328 p. Hall, Alvin W., 1926, Annual Report of the Director of the Bureau of Engraving and Printing for the year ended June 30: Government Printing Office, Washington, DC. Heritage Auction Archives website: Hessler, Gene, and Carlson Chambliss, 2006, The comprehensive catalog of U. S. paper money, 7th edition: BNR Press, Port Clinton, OH, 672 p. Huntoon, Peter, and R. Shawn Hewitt, Sep-Oct 2012, Identification of Series of 1882 and 1902 national bank replacement notes printed in the 1903-1915 period: Paper Money, v. 51, p. 378-384. Murray, Douglas D., Michael Tauber and Tom Conklin, 1996, The comprehensive catalog of United States large size star notes: BNR Press, Port Clinton, OH, 128 p. National Currency Foundation website: Simek, James A., and Peter Huntoon, Mar-Apr 2012, Series of 1929 national bank replacement notes: Paper Money, v. 51, p. 97-108. Figure 10. This Binghamton, New York, $5 Series of 1902 plain back is an archetypical make-up replacement as revealed by the old font serial numbers. Notice especially the telltale 3s and 4s. This note numbered in 1920 is the youngest replacement note identified to date. We will not be surprised if even younger examples are discovered. Figure 11. Series of 1902DB tough denomination for a replacement! The 2s in both serials are the giveaway. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 250 Central States Numismatic Society 78th Anniversary Convention April 24-27, 2019 (Bourse Hours ? April 24 ? 12 noon-6pm Early Birds: $125 Registration Fee) Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: Bourse Information: Patricia Foley (414) 698-6498 ? Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive ? Call (847) 303-4100 Ask for the ?Central States Numismatic Society? Convention Rate. Problems booking? - Call Convention Chairman Kevin Foley at (414) 807-0116 Free Hotel Guest and Visitor Parking. ? Numismatic Educational Forum ? Educational Exhibits ? 300 Booth Bourse Area ? Heritage Coin Signature Sale ? Heritage Currency Signature Sale ? Educational Programs ? Club and Society Meetings ? Free Hotel Guest and Visitor Parking ? Complimentary Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois Unserialed Replacement Sheet Notes by Joe Farrenkopf You?re likely familiar with star replacement notes such as the 2013 $10 Federal Reserve Note pictured below. But did you know that there is a second type of replacement note? Printing and handling imperfections can occur throughout all stages of Federal Reserve Note production. When such imperfections are found during the offset printing and plate printing stages, imperfect sheets are simply discarded without replacement. But when imperfections are found during the serialing stage, those sheets are replaced to maintain an accurate count of sheets, which are gathered into piles of 100 at the end of the serialing process (Bureau of Engraving and Printing n.d.). After the serial numbers, Federal Reserve seal, the Department of the Treasury seal, and the Federal Reserve identification numbers have been overprinted on a sheet, the sheet is computer- inspected for defects. A sheet flagged as defective is pulled for examination by a Bureau of Engraving and Printing worker. If the sheet is confirmed to be defective, that sheet will be replaced by another sheet from a supply of previously serialed star sheets. Star sheets are identical to regular production sheets except that the star serial number sequence is unrelated to the serial number sequence of the regular notes, and more notably, the serial number suffix character is a star rather than a letter. Occasionally a sheet is damaged just prior to being loaded into the serialing press, or a sheet could 1Unserialed replacement sheet notes are often found disproportionately in the lowest sheet numbers of a press run because normally within the last 10,000 sheets of the run, all of the accumulated bad sheets from the run are exchanged for good sheets. Further, after the initial exchange, any additional bad sheets generated are misfeed while going into the press. And sometimes sheets with small defects are discovered immediately prior to serial overprinting. In such circumstances, the sheet may need to be replaced. The replacement sheet is not taken from the supply of star sheets, however, since the serial numbers hadn?t yet been applied to the damaged sheet that was removed. Rather, the replacement sheet comes from a supply of previously face- and back- printed but unserialed sheets. Notes that come from that supply of sheets are the second type of replacement note. When the replacement sheet passes through the serialing press, it is overprinted with the next set of regular serial numbers for the press run. At the start of a new series, a small supply of unserialed sheets is set aside for such replacement purposes. As production of the series continues and that supply is used up, a new small supply of unserialed sheets is set aside for replacement purposes. This practice continues throughout the life of the series. Like sheet-replacement star sheets, these unserialed replacement sheets can be inserted at any point during a press run as needed1. Yet unlike star sheets, which are identified by the star suffix in the serial number, these unserialed replacement sheets are indistinguishable from all other sheets because they have no special markings of any kind, and their serial numbers are in sequence with the press run. The only way to know if a note came from an unserialed replacement sheet is by examining serial and plate data from other notes in the series. It is sometimes possible to identify an unserialed replacement sheet note by its plate serial numbers. In determining whether a note may have come from an unserialed replacement sheet, three factors need to be evaluated: (1) the atypicality of the note?s plate numbers in the press run; (2) the plate number chronology of the series; and (3) the presence of the plate numbers outside of the press runs where those plate sequences are typically found. exchanged at the end of the press run in order to complete the run, usually a small amount in the last 100 sheets or so. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 252 Plate Number Atypicality As an example, consider the three notes pictured below. All are Series 2013 $10 Federal Reserve Notes from the MG-B block, press run 7, whose serial range spans 38400001 through 44800000. Data recorded from other notes in press run 7 shows that about 85% of the run is composed of face plate/back plate sequence 88-89-90-91/45-46-47-48 while the remaining 15% of the run is composed of face plate/back plate sequence 99-100-101-102/53- 54-55-57. The face plates of the second and third notes pictured above (101 on MG39400001B and 90 on MG39604459B) belong to one or the other of those two sequences. But the face plate of the first note pictured above (70 on MG39205952B) oddly does not belong to either of those two sequences. Indeed, face plate 70 belongs instead to face plate sequence 70-71-72-74; the back-plate number of the note is 43, which belongs to back plate sequence 40- 42-43-44. The atypical plates of the first note pictured raise the possibility that the note came from an unserialed replacement sheet. Plate Number Chronology Next, the production chronology of the series needs to be examined. That?s because prior to the serialing stage, sheets that do not meet quality standards (e.g., those with ink spots or smears, ink deficiencies, etc.) and sheets that are damaged during the face and back printing stages are removed, but are not replaced. The remaining good sheets are collated into batches of 20,000 half-sheets for serial overprinting. Because a varying number of sheets is removed at each step of the manufacturing process, including offline inspection, the resulting new batch of 20,000 half-sheets could be made up of sheets from two or more consecutive input loads. This is seen in run 7 of the MG-B block, which comprises more than one set of face and back plate sequences in the last load of the run. But in the absence of a sufficient amount of data, one cannot know if the MG-B note with face plate 70 merely reflects the combining of a third input load. Hence, it is necessary to look at the chronology of the series. Face plate/back plate sequences 88-89-90- 91/45-46-47-48 and 99-100-101-102/53-54-55-57 appear primarily in press runs that were serialed June 2016 through October 2016 plus February 2017 (a brief hiatus of $10 production occurred in late 2016/early 2017). Had face plate/back plate sequence 70-71-72-74/40-42-43-44 been contemporaneous with those other two sequences, notes with face plates 70, 71, 72 and 74, and with back plates 40, 42, 43 and 44 would also appear in press runs serialed around the June 2016 to February 2017 time frame. Yet data from observed notes show that face plate/back plate sequence 70-71-72-74/40- 42-43-44 appears primarily in press runs that were serialed much earlier ? in October and November 2015. The note pictured below, serial MF68493485C, with face plate 70, is such an example; it belongs to the MF-C block, run 11, serialed in October 2015. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 253 Thus, face plate/back plate sequence 70-71-72- 74/40-42-43-44 was not contemporaneous with 88- 89-90-91/45-46-47-48 and 99-100-101-102/53-54- 55-57. It is worth noting that the vast majority of notes with face plate 70, like the note from the MF- C block, run 11, did not come from an unserialed replacement sheet. So, the appearance of a note with face plate 70 in a press run serialed many months later than most notes with face plate 70 is another indicator that the MG-B note with face plate 70 could have come from an unserialed replacement sheet. Presence of Plate Sequences Outside their Typical Press Runs The Bureau of Engraving and Printing is essentially a manufacturing facility that mass produces a product (currency) and sells that product to its customers (the Federal Reserve Banks). As a general rule, the BEP manages its inventory using the first-in, first-out method, meaning that sheets usually travel from the back-printing stage to the face printing stage to the serialing and finishing stages in relatively quick succession; that is, while rare exceptions exist, sheets are not typically stored in quantity for any length of time between production stages. Storage may occur following occasional production stoppages, but upon resumed production, the stored sheets are usually serialed and finished first followed by the new production. Because of using the first-in, first-out method, when worn plates are removed from a press and are replaced by new plates, the transition between old and new plate sequences in the data tends to be fairly abrupt. That is, once sheets from the old sequence are used up, the old plate sequence usually disappears completely from the data in a short time frame. For example, in Series 2013 $10 FRNs, face plate sequence 26-27-29-31 first appears in the MA- A block, run 6, serialed in October 2014. After those plates were worn, they were replaced by plates 32, 33, 34 and 35. Face plate sequence 32-33-34-35 first appears in the MD-A block, run 12, serialed in February 2015. The MD-A block, run 12, is also where the last notes with face plate sequence 26-27- 29-31 show up. In this instance, the transition between face plate sequences 26-27-29-31 and 32- 33-34-35 occurred within a single press run. For a larger example, consider one segment of Series 2013 $10 FRN production in which sixty-five press runs were serialed from October 2015 through July 2016: Oct 2015 MFC block, runs 2 through 11 (serials 06400001 to 70400000) MKA block, runs 13 through 15 (serials 76800001 to 96000000) MKB block, runs 1 through 2 (serials 00000001 to 12800000) Nov 2015 MFC block, runs 12 through 15 (serials 70400001 to 96000000) MFD block, run 1 (serials 00000001 to 06400000) Feb 2016 MAA block, runs 8 through 10 (serials 44800001 to 64000000) MHA block, runs 8 through 10 (serials 44800001 to 64000000) Mar 2016 MJA block, runs 6 through 7 (serials 32000001 to 44800000) Apr 2016 MBC block, runs 6 through 15 (serials 32000001 to 96000000) May 2016 MBD block, runs 1 through 4 (serials 00000001 to 25600000) MCA block, runs 12 through 15 (serials 70400001 to 96000000) MDA block, runs 14 through 15 (serials 83200001 to 96000000) Jun 2016 MDB block, runs 1 through 4 (serials 00000001 to 25600000) MEA block, runs 14 through 15 (serials 83200001 to 96000000) MEB block, runs 1 through 4 (serials 00000001 to 25600000) Jul 2016 MGB block, runs 3 through 9 (serials 12800001 to 57600000) Figure 1 illustrates this segment of production, with different colors representing different face plate sequences (or combination of sequences on occasions when a single plate had to be replaced): Color Face Plate Sequence Red 62-67-69-68 Orange 70-71-72-74, then 76-71-72-74 Yellow 77-78-79-80 Green 81-82-83-84, then 81-86-83-84, then 81-87-83-84, then 81-87-92-84 Blue 93-94-95-97, then 93-98-95-97 Purple 88-89-90-91 Pink 99-100-101-102, then 99-103-101-102 ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 254 Figure 1. Serial and plate data recorded from a random sampling of 2,602 Series 2013 $10 notes serialed from October 2015 through July 2016 reveals the evolution of face plate sequences during that time frame. The areas on the graph in red, for example, identify the press runs where face plate sequence 62- 67-69-68 is found. That means notes from those press runs will have either face plate serial 62 or 67 or 68 or 69. For example, the note pictured below, serial MF28920407C, with face plate 62, belongs to the MF-C block, run 5, which falls in the red region of the graph. Two or more colors within a single press run means that more than one face plate sequence is found in that press run. Notice in Fig. 1 how the horizontal transition between colors is generally sharp; there isn?t much overlap between colors, and once a color ends, it doesn?t usually show up elsewhere. The two exceptions in the figure are the orange sequence 70- 71-72-74 (and 76-71-72-74) and the purple sequence 99-100-101-102 (and 99-103-101-102). Let?s start with the purple sequence, which needs some explanation. At times during FRN production, only one pair of face and back presses will be in operation. When that is the case, the plate sequences in the data will be largely self-contained. That is, a single plate sequence will be found in many consecutive press runs with little overlap on either the beginning or the end of the sequence?s appearance. This phenomenon is seen in Fig. 1 at the juncture of the red/orange regions, the orange/yellow, yellow/green, and green/blue regions. A single pair of face and back presses was in operation for several months, and the evolution of face plate changes on the face press was as follows: ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 255 ? 62-67-69-68 replaced by 70-71-72-74 ? 70 replaced by 76, resulting in sequence 76-71-72-74 ? 76-71-72-74 replaced by 77-78-79-80 ? 77-78-79-80 replaced by 81-82-83-84 ? 82 replaced briefly by 85, which was quickly replaced by 86, resulting in sequence 81-86-83-84 ? 86 replaced by 87, resulting in sequence 81-87-83-84 ? 83 replaced by 92, resulting in sequence 81-87-92-84 ? 81-87-92-84 replaced by 93-94-95-97 ? 94 replaced by 98, resulting in sequence 93-98-95-97 These transitions occurred on the same face press, which is the reason Fig. 1 shows abrupt changes between color regions. But sometimes two (or more) pairs of face and back presses will be in operation simultaneously. When that is the case, two sets of plate sequences will appear in the data, usually intermingled. This phenomenon is seen in Fig. 1 in the purple regions. About mid-way through production of the green sequences, a second pair of face and back presses was put into operation producing $10 FRNs while the first pair of presses continued to produce $10 FRNs. The second pair was loaded with face plates 88, 89, 90 and 91 (reflected in Fig. 1 by the purple regions), and the second press remained in operation partway through the pink sequences. It is not the case that the blue and pink regions of Fig. 1 (and to a lesser degree the green region) reflect ceased production of those sequences where the purple regions appear. Rather, the purple regions reflect concurrent production with the blue and pink regions as a result of two pairs of presses being in operation simultaneously. Indeed, notice how there is little overlap between the pink and blue regions. That?s because those sequences were on the same press; that is, 93-98-95-97 (blue) was replaced by 99-100-101- 102 (pink). But the purple regions are overlaid on top of both the blue and pink regions in an intermixed fashion because 88-89-90-91 was on a different face press. Now look at the orange sequence, which mostly spans 7+ adjacent press runs (MFC10 through MAA8). Notice that an instance of orange also precedes that grouping by several press runs (MFC3), plus a few scatterings of orange show up many months and many press runs later (in MEB1, MGB7, and MGB8). This is an important point in the context of unserialed replacement sheet notes, because it isn?t the case that just any sequence will turn up scattered throughout the data like the orange sequence does in this example. Only sequences from the supply or supplies of unserialed sheets set that were aside for replacement purposes will turn up scattered elsewhere in the data. Further, while the orange sequences have turned up as late as the pink/purple sequences, it is expected that a large enough sample of notes would reveal the orange sequences to be present within the yellow, green and blue sequences as well. The presence of the orange sequence 70-71-72-74 in multiple places elsewhere in the series is the third indicator that the MG-B note with face plate 70 came from an unserialed replacement sheet. In summary, unserialed replacement sheet notes can sometimes be identified by their plate serial numbers because: a) the note?s face/back plate numbers may be atypical of the plate numbers of other notes from the same press run; and b) the face/back plate numbers of the note appear in a press run that was serialed much later than most notes that bear those same face/back plates; and c) the sequences to which the face/back plate numbers belong are found scattered throughout many press runs outside of the press runs where the sequences are otherwise typically found. Other Unserialed Replacement Sheet Sequences In Series 2013 $10 FRNs, four face plate/back plate sequences have been identified as having been used for unserialed replacement sheets: Face Plate Sequence / Back Plate Sequence 1-2-3-4 / 1-2-3-4 22-23-24-25 / 19-20-21-22 70-71-72-74 / 40-42-43-44 106-111-108-109 / 59-61-62-63 In the prior Series 2009 $10 FRNs, three face plate/back plate sequences have been identified as having been used for unserialed replacement sheets: Face Plate Sequence / Back Plate Sequence 1-2-3-4 / 1-2-3-4 42-43-45-46 / 34-35-37-38 64-61-57-60 / 46-55-56-57 Unserialed replacement sheet notes are found in other denominations as well. For example, three Series 2013 $5 FRNs are pictured below. The first note (MJ92800479A, face plate 85) is from an unserialed replacement sheet; the second note (MJ92804329A, face plate 131) is from the same run as the first note but is not from an unserialed replacement sheet; and the third note (ML14726430E, face plate 85) has the same face ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 256 plate number as the first note but is not from an unserialed replacement sheet. The three criteria for determining whether a note comes from an unserialed replacement sheet bear this out: a) the early portion of the ML-E block (much of run 1 plus runs 2 through 4) is composed of face plate sequence 85-90-92, so the note ML14726430E with face plate 85 is consistent with other notes in run 3; by contrast, the last portion of the MJ-A block (runs 12 through 15) plus the beginning of the MJ-B block (run 1) is composed of face plate sequence 124-130-131, so the note MJ92800479A with face plate 85 is atypical of other notes in the same run; b) notes from the early portion of the ML-E block were serialed in February and March 2015 while notes from the last portion of the MJ-A block and the beginning of the MJ-B block weren?t serialed until June 2016; and c) face plate sequence 85-90-92 is found regularly in notes serialed between February 2015 and June 2015, but multiple individual instances of notes from that sequence have turned up much later (November 2015, June 2016). Relative Scarcity The quantity of sheets that the BEP sets aside for the unserialed replacement sheet supply isn?t precisely known, but it is possible to estimate that quantity and ascertain whether that quantity is variable in the same way that it is with replacement star runs. A starting assumption would be that the supply amounts to a typical half-load (10,000 sheets) or whole load (20,000 sheets), which is the common quantity for many sheet-replacement star runs. Sequences identified in Series 2013 $10 FRNs and in other series show that the supply of unserialed replacement sheets was replenished either after approximately 60 to 70 press runs or after approximately 110 to 120 press runs. During the period April 1992 through February 2013, one partial (20,000-sheet) sheet-replacement star run was produced at the Western Currency Facility in Fort Worth for every 61.1 press runs of regular $1 FRNs (Farrenkopf 2017, 225). If that figure is comparable for $10 FRNs, that suggests that unserialed replacement sheet batches are set aside in quantities of one load (20,000 sheets) or two loads (40,000 sheets) at a time. In comparing the scarcity of unserialed replacement sheet notes found in circulation with the scarcity of star replacement notes found in circulation, those figures seem consistent; that is, unserialed replacement sheet notes aren?t common, but they do seem to turn up slightly more often than the typical sheet- replacement star note. So, if you?ve never paid much attention to the plate numbers on the notes in your collection or the notes you receive in change, take a look sometime and consider that your note might just have come from an unserialed replacement sheet! Sources Bureau of Engraving and Printing. n.d. ?How Money is Made.? Accessed March 18, 2018. eyismade.html. Farrenkopf, Joe. 2017. ?Star Notes: An Examination of Production and Scarcity, 1991 to 2014.? Paper Money LVI, no. 3 (May/Jun): 224-242. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 257 U n c o u p l e d : Paper Money?s Odd Couple Finds at MPCFest XIX Joseph E. Boling Fred Schwan Parallel to Fred?s material in this issue, I also acquired some interesting items at the Fest XIX auction. First is an example of a note (actually only part of a note) that provided documentary evidence of the source of the odd-colored ?100 military yen notes that populated junk boxes after WWII. The first military ?100 notes were homeland notes (intaglio) with overprints identifying them as military notes. The next ones were lithographed notes using the intaglio designs, but with the military markings included in the printing plates. Both of these had black faces, and red-brown, then brown, backs. The odd ones had orange faces and backs. Unconfirmed reports were that they were a local printing in Hong Kong after shipments of homeland-produced notes were cut off by the Allied naval blockade. The proof we had been searching for was a QSL card (an acknowledgement of contact between amateur (?ham?) radio operators) that was printed on unfinished versions of the orange notes. The main face plate had not been printed. These unfinished pieces were further overprinted with the template to be filled in by the ham operator documenting a radio contact. In small print at the bottom of the template is the line ?(Incomplete Japanese Military Yen seized in Hong Kong in 1945).? Ward Smith had one of these in his collection that had not been filled in. In this year?s Fest auction was the first used one I have seen. See figures 1 and 2 for the original note, and figure 3 for the QSL card. Smith?s was for the same radio station, VS6AL (it is illustrated in Schwan-Boling on page 595). Another interesting acquisition is the note in figure 4, a 100-mark note of the Allied military currency series for occupied Germany. This one is a locally-made counterfeit, with the serial number See Bolin pg. 260 I had a great time at MPCFest XIX. I believe that everyone did. There were many highlights, but one certainly was the opportunity to add to my collection. The Fest has two main events for acquiring goodies. These two are not surprisingly the bourse and auction. Additionally, of course, are the near-constant opportunities for commerce between Festers. The bourse is unique on several counts. First, I am quite sure that it is the only bourse in the country and probably the world that is held on Friday only. Even on Friday it is short, from 10 to 2 or 3. The short hours are possible because there are not many dealers. The short hours are also necessary because there is so much else to do. Short hours, few dealers?sounds like disaster. To the contrary, the dealers have specialized material and the Festers are specialized collectors. In addition to things that I bought and sold, I saw many items that were new to me. The Sunday morning auction must also be unique for its timing, but its best argument for being unique is again the material. The auction is a charity auction where money is raised to support scholarships to the ANA Summer Seminar. The idea was borrowed (stolen) from the auction at the Summer Seminar. Because the auction is held at the Fest, the material tends to be of interest to Festers. Just like the auction in Colorado Springs, additional strange things can and do show up. T shirts, C rations, MREs, and other items have set world record prices. Still, legitimately numismatic and interesting things can be found in the auction. The headline item was a newly-found example of a famous error. It is a Series 692 $20 certificate that is missing two colors. Even with the missing colors, most collectors would miss the error on a circulated piece if they did not know the secret! The known notes are all from the same sheet and, therefore, have telltale serial numbers. The key to ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 258 look for is a serial number that ends in 27. Not all certificates that end in 27 will have the error, but thus far, all of the errors are from the sheet ending in 27. (If we ever find the error on a note that does not end in 27, it likely to be within a few numbers (sheets) of 27.) The really amazing thing about this error is that it was first discovered by finance officers in Vietnam who attempted to find and withdraw examples from circulation. They found a few, as have collectors since then. Three or four are known in collections. The error sold in the Fest auction for $1760 (including juice). In my pile of stuff from the Fest, I find that I obtained (purchased or traded for) what amounts to a World War II check collection. By most accounts they do not amount to much in terms of value, but I like them all. Three of the four relate to war savings items. This is an area of special interest to me as I have mentioned several times here in Paper Money. The first check is a government check of the Province of Newfoundland. Most significantly, the account is for savings certificate redemption. The check is for $6 in 1953. It seems quite clear to me that this check was for the redemption of Newfoundland War Savings Certificates that were sold during World War II. It could have been for two $3 or one $6 certificate. The redemption was probably done by mail because in person redemptions would likely have been paid with cash. Many years ago, I wrote to the Bank of Canada enclosing a copy of a war savings certificate that was in my collection. I implied that I had inherited the certificate from a long-lost uncle. The response was quite interesting. I was told that if I sent the certificate, that the bank would send me a check made out to the long-lost uncle. I thought that it was a very efficient method for the bank to use. If I were indeed an heir, I would have a way to cash the check. If not, I could not cash it. In either case the bank was relieved of any additional administrative responsibilities. I think that this check was issued in the same way. Furthermore, it is altogether possible that such checks might be issued today. The check was issued by the Province of Newfoundland, but the war savings certificates were issued by the colony of Newfoundland. This tells us that when Newfoundland joined Canada in 1949, the new province retained responsibility for the redemption of the certificates. It also likely that similar checks were issued before that date. I will hold a place in my collection for one of those! Next, I have a ragged United States treasury check dated February 26, 1944 for all of $1.25. It might seem unusual, but it is actually fairly common to find a government check from the war period for this amount! The purchase price of a $25 war bond was $18.75. People sent in $20 and received a refund of $1.25. Sure enough the check has a memo ?WAR BOND REFUND.? The check has an interesting payee: Robert T. Handfield or Treasurer, US. Why the Treasurer bit? I have seen these checks before. I might even have one (or some?) hidden away here in the black hole, but I had never before noticed this curious text. The answer is on the back. Below the normal instructions found on government checks is an additional interesting statement: ?If this check is applied to purchase of a War Savings Bond in favor of the named payee, no endorsement is necessary.? Then there is a place to enter the serial number of the bond purchased. In a manner similar to the Province of Newfoundland check above, this seems like a system designed to sell more bonds with minimal administrative effort. The next item might catch you off guard. It is a cancelled check drawn on the Winters National Bank & Trust Co of Dayton, Ohio. The account at Winters belonged to the Ohio Yellow Cab Company. Most importantly for me, the check is annotated (twice) with typewritten text ?Employees War Bond Account!? The details of the check are interesting too. It is dated 6 April 1944, in the heart of the war, only a few weeks after the government ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 259 refund check above. It is made out to Fitzhugh Smith for all of $1.88. The check number is 117. That seems like a very low number of checks for so late in the war, and the amount is oddly low too. I would love to be able to figure out that this unusual amount was for refund of a bond purchase in a way similar to the above government check, but I cannot. The final check in my new collection in quite different. It is a Bank of France check payable to the port of Le Havre, France for 500,000 francs. Most significantly the check is dated 19 August 1944, and has a rubber stamp of the German navy, which I take as being official approval of the check. Le Havre is a commercial seaport in the north of France on the English Channel. It was taken by the Germans in June 1940 and held until 11 September 1944, only shortly after the check was written. I am not sure what the check is trying to tell us, but it is certainly a fascinating piece of history. All four of these checks will make it into the manuscript for the next edition of World War II Remembered. Indeed, I will drop them into the manuscript as soon as I make the scans for this column. That means that if you have additional information relating to these or other wartime checks, we would be delighted to have it now. BOLING CONTINUED typed on the note rather than being printed (figures 5-7). In figure 5 the note on the left has the typed serial number. Figure 5 Figure 1 Figure 2 Figure 3 Figure 4 ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 260 A serial number with a leading dash is a replacement note if the colophon (a script F) of the Forbes Lithograph Manufacturing Corporation is present (see figure 8), but it isn?t on the counterfeit. That tells us that the note is meant to emulate the Soviet-printed Allied mark currency, most of which used the leading dash (the Soviets did not realize that the specimen notes they received as models were all replacements, so they used the dash on all of their printings until they ran out of serial numbers, after which they used a leading ?1? to avoid duplicate numbers). Although the typed numerals are a form of letterpress (the same printing technology used for printed serials), there is a qualitative difference between the two (see figures 6-7, which also show the difference in the font design for the numerals ?3? and ?9?). The last piece did not come from the auction, but from the other opportunities for acquisition that Fred also mentioned. It is a propaganda note based on the Nazi Behelfzahlungsmittel fifty reichspfennig note. The original notes are uniface, so the British prepared a series of propaganda pieces that copied the note face faithfully and bore a message in German on the back meant to demoralize German troops. The British pieces had the same watermark as the originals. We don?t know whether they had the paper made to match the originals, or found a stock of paper in Britain with the correct watermark. In any event, the piece I found at Fest is a copy of the British piece on unwatermarked paper, lithographed in the wrong color (brown instead of red and light brown), and with severe loss of detail in the note?s features. This could have been a second-generation version of the propaganda piece, or a modern replica made to bilk collectors. I believe it is the latter. See figures 8-10. The replica piece is at the bottom, with the watermark showing in figure 10. The replica paper is mottled, but has no recognizable watermark. Fest was festive, as always. Join us next year for fest XX. Watch this space for announcement of dates. Figure 6 Figure 7 Figure 8 Figure 8 Figure 9 Figure 10 ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 261 | 877-PMG-5570 United States | Switzerland | Germany | Hong Kong | China | South Korea | Singapore | Taiwan | Japan THE CHOICE IS CLEAR Introducing the New PMG Holder PMG?s new holder provides museum-quality display, crystal-clear optics and long-term preservation. Enhance the eye appeal of your notes with the superior clarity of the PMG holder, and enjoy peace of mind knowing that your priceless rarities have the best protection. Learn more at 16-CCGPA-2889_PMG_Ad_NewHolder_PaperMoney_JulyAug2016.indd 1 5/27/16 8:12 AM Mea Culpa! By Rick Melamed While doing research one must always strive to be accurate when publishing. In this case, I presented erroneous information and I would like to set the record straight. A fellow SPMC member recently contacted me about my 2nd issue surcharge article from a previous issue of Paper Money. The following notes, which have Milton Friedberg numbers, are not Treasury issued Experimentals, but rather, counterfeits. I presented them as legitimate; they are in fact not genuine. When researching the article, I observed in the John Ford sale (Part XIX ? October 11, 2007), lot 331 was an Experimental fractional with just surcharges on the face and back. Nowhere in the auction description did it mention this note was a counterfeit. The cataloguer cited Milton 2C50FR.1b with the following heading: ODD BOND PAPER 50 CENTS BRONZING ?EXPERIMENTAL? WITH UNUSUAL SURCHARGES In hindsight I should have checked Milton?s encyclopedia to verify its authenticity. Milton?s cataloging, while intimidating at first, becomes clearer with more familiarity. The following, from Milton?s encyclopedia explains his numbering system: The 2nd counterfeit Experimental (Milton 2C50FR.1a) cited in my original article as genuine (and not from the Ford sale) is a forger?s progress proof. It is the same note as above, but with the crimson shield added. The verso is the same blank paper with just the bronze oval. Both contain the ?18-39? and large ?50? surcharges. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 264 If these were Treasury issued Experimentals, Milton Friedberg may have designated this as 2E50FR.1a and 2E50FR.1b. I suspect that since auction companies never sell counterfeits at auction (and risk the wrath of the Secret Service); the cataloguer used the code ?ODD BOND PAPER? instead of the verboten counterfeit designation. The ?C? in 2C50RF.1a/b is an obvious reference to its counterfeit nature ? frankly, I just missed it. At the Kansas City IPMS show in June 2018 former FCCB and SPMC president Benny Bolin (current SPMC Paper Money Editor) and counterfeit fractional expert Art Paradis explained to me my mistake. Just to be sure, Art previously observed the note under 40X magnification stating that the paper was not consistent with Treasury Department standards. Both Benny and Art opined that this was in actuality a Counterfeiter?s Experimental. Apparently the forgers did some test sheets of just the bronze surcharges and another with the crimson shield added. With all that effort to produce a counterfeit they messed up the usual ?63? and it came out looking like an inverted ?39.? Finally, for those who might think that a note with just surcharges on both sides (with no other design) is a counterfeit, then the following should prove of interest. It is a legitimate Experimental, Milton 2E10FR.3. The ?T-1-18-63? and fiber paper is consistent to our expectations of a regular 2nd issue Fr. 1249. Thanks to Benny Bolin and Art Paridis for their gentle and patient explanation of my mistake. Also to Heritage for the image of the 10? Experimental. Lastly, I?d like to offer my sincere apology to my fellow club members for my mistake. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 265 Kristenstad - A Texas Utopia by Frank Clark Pictured is a $10 Depression Scrip Note from the settlement of Kristenstad, Texas with a printed date of 1933. Socialism was practiced at this small central Texas settlement. The Standard Catalog of Depression Scrip of the United States list the following denominations for Kristenstad: $1, $2.50, $5, $10, $50 and $100. The $1 is listed only as a "sample" note. "Sample" is printed in large letters in red ink diagonally across the face of the note. The other five denominations are listed as unissued and cancelled with the word "Sample." The $10 note that accompanies this article is of this variety. The following has been added to the face in all denominations of this issue. "Sample" and "Sample;" are typewritten on the face on the "On Demand" line and on the "Number" line respectively. Also, along the payer signature line is typewritten its non- obligation clause, "Sample; This form not issued as an obligation;" Mr. Kristensen's typewriter probably lacked a colon (:) key and he therefore used the semicolon (;) key in its place. All of these added inscriptions are "barred" off along the top and bottom with red ink lines. The faces of these notes are otherwise utilitarian, while the back has a vignette of an overflowing cornucopia along with the wording of, "Exchange what you don't need for what you do need" and "America is, in fact, a Land of Plenty." The payer signature line is at lower right and in this case, it is between the two added red ink lines. The note would have been signed by John B. Kristensen, the founder of Kristenstad, if the note had been issued. The listings in The Standard Catalog of Depression Scrip of the United States leads one to believe that not a single note of this issue actually performed any circulation duties. I would like to point out that Kristensen's name is sometimes seen Americanized in print as either "Cristiansen" or "Christensen." You can also find 5, 10, 25, 50 Cents and $1 "Good for Coupons" for merchandise issued by The Rainbow Marketing Association, Inc. of Kristenstad. The coupons were originally issued in $20 booklets. Also, the same denominations for the same purpose were issued in round metal disk form. These medium of exchanges were necessary, as the community operated non-profit store did not accept United States paper money or coin. John B. Kristensen, with the help of a deferred payment plan, took possession of 6000 acres of heavily wooded land along the Brazos River near Granbury on January 1, 1928. The land was mostly in Hood County with a small amount in Johnson County. The settlement was called "Kristenstad" using Kristensen's Danish family name. It translates into English literally as, "Kristen's homestead." The community was intended to become self-sufficient as much as possible with "sell much, buy little" and "work if you eat" being their guiding ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 266 maxims. Farmers and others were recruited for this purpose from as far away as at least North Dakota. Many were actually dispossessed Texas farmers who were interested in the cheap land and other settlers were idealists who had read press accounts in scattered newspapers across the nation about the "Texas Utopia." The new settlers would be integrated into the community when they arrived. They could buy unoccupied land for $40 an acre at 6% interest and without a down payment. Next, the land would be cleared and the trees sent to the community saw mill. The trees would be turned into lumber so that the newcomer could use it to build his new home. Native stone was also employed in the construction of homes. The sawmill also produced charcoal from the wood by-products. A chair factory was built in order to use the wood that was too small for lumber, but was also too good to burn into charcoal. The community bought the Southern Diaryman, which was a monthly publication of twenty pages with a circulation of 25,000. Next, a print shop was built to print the magazine. The Depression Scrip discussed in this article is without an imprint and might have been printed in their print shop. Three corporations conducted the community's business. They were The Rainbow Marketing Association, Inc., The Cooperative Association, and The Loan Company. Wood products, dairy products, peanuts, pigs and cattle were sold to provide money for supplies that were bought on the outside at wholesale prices and then sold through their non-profit cooperative store. The local industries in the community were operated during the non-farming times. Workers would earn scrip at the rate of $2 per day. The scrip could be exchanged for stock in the industries if the receiver wanted to do this. It is said that the population probably peaked in the winter of 1932 at 200 or so citizens with around 1200 acres under cultivation. Many settlers only stayed for a short time and moved on due to disillusionment. The farm life in the settlement was especially hard. Non-luxuries included outdoor plumbing, wood stoves and kerosene lamps. However, it is stated by several that no one ever went hungry.? The Great Depression only accelerated Kristenstad's decline. Farm prices weakened and a drought in the area did not help matters. The chair factory burned to the ground and markets for the community's finished products dried up.? There was an attempt to get federal aid for the settlement with the help of Dallas banker and insurance executive, Homer F. Mitchell. However, that plan eventually failed. Even the Kristensen family moved to the nearby hamlet of Rainbow in Somervell County in 1936. The excuse given to the few hardy souls who remained in Kristenstad, was that the oldest Kristensen child, who was going into the eighth grade, needed to continue his education beyond the small school provided by the settlement. Kristensen was still able to manage Kristenstad from Rainbow with frequent visits. Even so, his popularity continued to decrease. This was highlighted one day by a disgruntled settler attack who threw a bottle of acid on Kristensen's car while Kristensen sat in it. John B. Kristensen died suddenly in his Rainbow home on June 30, 1937 at the age of 61. His final resting place is at Squaw Creek Cemetery near Rainbow. The small school in Kristensen closed the next year and John's widow returned the land to the previous owner. She and her five children moved to Dallas. The land for Kristenstad now is a large pecan orchard. Very little remains of the settlement outside of the school building. This experiment in socialism or as Kristensen called it, "pure Americanism," failed. Today, it is remembered mostly by its numismatic relics. Bibliography: Fickle, Mary. "Texas' Lost Utopia." Texas Parade Magazine May 1971. Fowler, William E. "Trade Tokens of Texas." Token and Medal Society, Volume 13 Number 2 April 1973. Hammond, C.M. "Kristenstad: A Practical Utopia." The Texas Weekly Newspaper August 29, 1931. Hunt, Vaudrene R. Smith. "Toward a History of Kristenstad." Hood County, Texas Genealogical Society, Grandbury Depot 1978. Mitchell, Ralph A. and Neil Shafer. "Standard Catalog of Depression Scrip of the United States of the 1930s Including Canada and Mexico." Iola, Wisconsin: Krause Publications, Inc. 1973. The?author?awaiting? his?turn?at?the? breakfast?line.? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 267 800.458.4646 West Coast Office ? 800.566.2580 East Coast Office 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 ? 949.253.0916 123 West 57th Street, New York, NY 10019 ? 212.582.2580 ? California ? New York ? New Hampshire ? Hong Kong ? Paris SBG PM ANA2018 180530 America?s Oldest and Most Accomplished Rare Coin Auctioneer Peter A. Treglia LM #1195608 John M. Pack LM # 5736 Peter A. Treglia John M. Pack Brad Ciociola Peter A. Treglia Aris MaragoudakisJohn M. Pack Brad CiociolaManning Garrett LEGENDARY COLLECTIONS | LEGENDARY RESULTS | A LEGENDARY AUCTION FIRM Now Accepting Consignments to our Official Auction of the ANA World?s Fair of Money Auction: August 14-18, 2018 | Consign U.S. Currency by: June 15, 2018 Call us for more information today! 800.458.4646 West Coast Office ? 800.566.2580 East Coast Office Lancaster, Ohio. 1902 $100 Red Seal. Fr. 686. The Fairfield NB. Ch.#7517. PCGS Extremely Fine 45PPQ. Serial Number 1. From the John Whitney Walter Collection Ketchikan, Alaska. $5 1929 Ty.2 Fr. 1800-2. The FNB of Ketchikan. Ch. # 12578. PMG Gem Uncirculated 65EPQH Fr. 1700. 1933 $10 Silver Certificate. PCGS Gem New 66PPQ. Fr. 2010-B. 1950 $10 Federal Reserve Note. PCGS Very Choice New 64PPQ. Additional Overprint on Face Error. United States of America. ND (18xx). Act of March 3, 1893. $10,000. Department of the Interior Cherokee Nation Bond. Extremely Fine. Specimen. From the John E. Herzog Collection of United States Treasury Bonds ? 1861 to 2000 United States of America. August 8, 1868. $10,000 Registered Bond. Loan of March 3, 1865. Choice Very Fine. From the John E. Herzog Collection of United States Treasury Bonds ? 1861 to 2000 United States of America. November 16, 1861. $100 Registered Bond. Loan of July 17 & August 15, 1861. Very Fine. From the John E. Herzog Collection of United States Treasury Bonds ? 1861 to 2000 United States of America. ND (18xx). Act of February 25, 1862. $50 Registered Bond. Loan of 1862. Uncirculated. Proof. From the John E. Herzog Collection of United States Treasury Bonds ? 1861 to 2000 Service Awards in KC The International Paper Money Show (IPMS) is not only about buying and selling currency, but is also a time for the society (and other societies) to recognize and reward members for outstanding service, literary awards and excellence in exhibiting. Doug? Davis? received? the? Founders? Award? for? support? and?service?to?the?hobby.? Armand?Shank?and?Mack?Martin? (not? present)? received? the? Education,? Research? and? Outreach? award? for? their?work?on? the?Obsolete?Database? Project.?? Pierre?Fricke?receives?the?highest? SPMC? award?the?Nathan? Gold? Award?for?long?time?service? President?s?Awards?recipients?Robert?Calderman,?Gary?Dobbins,?Loren?Gatch? Hugh?Shull?and?Neil?Shafer? 2018?SPMC?Hall?of?Fame?Inductees? Jason?Bradford?and?Laura?Kessler?were? awarded?the?Nathan?Goldstein? Recruitment?award?corporate?and? Robert?Calderman?won?the?individual? award.? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 269 Literary and Exhibit Awards in KC Awards were also given out for literary excellence, top articles in different categories (voted on by the membership via the web), book of the year and for excellence in exhibiting. Book of the Year (Wismer Award) Truth Seeker: The Life of Eric P. Newman Len Augsburger, Roger Burdette, Joel Orosz Runners Up Images of Value?Mark Tomasko Florida Nationals?William Youngerman Favorite Column Uncoupled?Joe Boling & Fred Schwann Runner Up?Jamie Yakes Dr. Glenn Jackson Award Bernard Wilde Articles appearing in PM in 2017 Federal (Misc).?Bob Ayers World?Carlson Chambliss Runner up?Rick Melamed Runner Up?Carlson Chambliss Small Size?Peter Huntoon & Doug Murray Runner Up?(tie) Carlson Chambliss, Joe Farrenkopf, Jamie Yakes Nationals?(tie) Shawn Hewitt & D. B. Hollander Obsoletes?Doug Nyholm Runner Up? Bill Gunther Confederate?Michael McNeil Runner Up?Michael McNiel Exhibit Awards Stephen R. Taylor Best in Show?Shawn Hewitt Runners Up?Bob Moon, Jim Simek Julian Blanchard Award?Nancy Wilson Best one-case exhibit?Jerry Fochtman IBNS Amon Carter Award?Neil Shafer PCDA John Hickman Award?Jim Simek BNR Most Inspirational Award?Robert Calderman Thanks? to?all?of?our?other?exhibitors??Robert R. Moon, Frank E. Clark III, Robert Gill, Michael Scacci, Michael Dougherty, Ron Horstman, Joseph Ridder, Steve Sweeney, Benny Bolin, Roger Urce, John & Nancy Wilson, Jerry Fochtman, Robert W. Liddell III, Shawn Hewitt, Fred Bart ,Robert Calderman, James Simek Roger?Gill?Forrest?Daniel? award?for?literary?excellence? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 270 SPMC Breakfast & Tom Bain Raffle The SPMC held its annual breakfast and Tom Bain Raffle on Friday morning of the show. Due to the popularity of the venue last year, we again held it at Harvey?s in Union Station. The acoustics were a challenge, we have been assured will be overcome next year. Almost 80 people attended and had a great breakfast. After the breakfast ever ebullient and always entertaining emcee Wendell Wolka held the audience in rapt anticipation for their number to be called for the great prizes offered. Due to the acoustics challenge, he had a special mouthpiece to help him out. The ticket for the event featured a commemorative likeness of Eric P. Newman and ticket chair Bob Vandevender and Treasurer sold tickets at the stairwell entrance. ???????The?breakfast?buffet?was?well?received?with?a?long?line.??????????????????????Mark?trying?to?gain?an?edge?in?the?raffle?by?using?red?tickets.? Thanks to all of our Raffle donors?Mark Anderson, John & Nancy Wilson, Hugh Shull, Heritage Auctions, Bruce Smart, Pierre Fricke, J. Fred Maples, John Park, Lee Quast, Jerry Fochtman, Bob Kvederas, Sr/Jr, Mike Scacci, Wendell Wolka, Mike Crabb and to anyone I left off, I sincerely apologize. Who needs a microphone when you have a MUSK?!? A table full of raffle prizes Neil and Joe tearing tickets hoping for the big prize Tickets, Tickets, Get Yer Tickets Heyah! ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 271 $10 New York Late-Finished Face 169 Varieties By Jamie Yakes Small-size collector Randy Vogel has discovered a spectacular Series of 1934A $10 Federal Reserve Note changeover pair on New York with late-finished face 169 (Fig. 1). The particulars are B04288284D- position L-face 169 and B04288285D-position G-face 389. Coupled with finds from collector Robert Calderman, we now have a complete set of possible varieties with face 169: B-C and B-D block notes, a star note, and a changeover pair (Fig. 2). Ten-dollar New York face 169 is one of four new late-finished plates announced to the collecting community in 2017.1 The other were $5 New York 58, $5 Philadelphia 39, and $5 San Francisco 52. Each plate originally was a 1934 $10 FRN master plate that in 1938 the BEP altered to a 1934A master plate, and then in 1944 finished as a production plates and used for sheet printings. Face 169 started life as $10 New York Series of 1934 plate 9 in August 1934, when the BEP prepared eight $10 steel intaglio plates for New York at the onset of Series of 1934 production. They designated plate 1 as the master and lifted from it four electrolytic altos in September. They started making electrolytic bassos in October, beginning with plates 9 and 10 on October 3. They made plate 9 a master, and for the next three years altos from plate 1 and 9 would spawn all the $10 1934 New York production plates, ending with plate 168 in June 1937.2 In January 1938, the BEP began etching macro serial numbers on finished plates,3 and designated those FRN faces the Series of 1934A. Series of 1934 faces had micro plate serials; otherwise 1934 and 1934A faces had identical designs. Because of this on February 8 the BEP simply altered plate 9 to a 1934A by etching an ?A? after each ?SERIES OF 1934? located on all 12 subjects. They reassigned it plate serial 169, which was the first serial for $10 New York faces, and designated it the 1934A master.4 Over the next six years, the BEP lifted 10 altos from 169, which directly and indirectly spawned all the 1934A production plates made through April 1945 inclusive of serials 170 to 478. The indirect plates were a small batch made in March 1944 from altos lifted from face 418, which itself was derived from 169 on February 22, 1944. The BEP had designated 418 the new master for $10 1934A New York faces, and finished face 169 as a production plate on March 15.5 Face 169 became part of the large rotation of $10 faces the BEP had been sending to press since the late 1930s. They initially sent it to press on March 21, and used it for six press runs until November 21, 1944.6 They Figure?1.?$10?1934A?New?York? changeover?pair?with?late?finished? face?plate?169.?(Courtesy?Randy? Vogel).? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 272 canceled it the next day. Face 169 sheets moved through the numbering division to receive serial numbers from the high B-C and low B-D blocks. The reported range currently is B87540284C to B21570316D.7 The companion note to 169 in the changeover pair is from plate 389. Plate 389 was a progeny of 169, started in June 1943 and certified on July 13. It endured nine press runs from September 28 to December 2, 1944. Five of those runs overlapped runs for 169, so at some point those two plates straddled the same press, possibly numerous times.8 Two other plates would have occupied the other two spots on the four-plate press with 169 and 389. It is impossible to know which ones, though they?ll have serials between 377 and 449, inclusively.9 This is important because as the pressman?s assistant lifted sheets from all four plates and stacked them, sheets from 169 became sandwiched between sheets from 389 and one of those two other faces. Vogel?s L-position 169 is the sixth note from the half-sheet. The first note from position G with serial B04288277D was part of another changeover pair with the L-position note from a different sheet. Does that pair exist, or was it long ago separated? Sources Cited 1. Yakes, Jamie. ?Altered 1934A $5 and $10 Federal Reserve Note Master Plates.? Paper Money 56, no. 1 (2017, Jan/Feb): 54-56. 2. Record Group 318-Bureau of Engraving and Printing: Entry P1, ?Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s,? Container 147. National Archives and Records Administration, College Park, Maryland. 3. Huntoon, Peter. ?Origin of macro plate numbers laid to Secret Service.? Paper Money 51, no. 4 (2012, Jul/Aug): 294, 296, 316. 4. Container 147. 5. Ibid. 6. Ibid. 7. Author?s observations. 8. Container 147. 9. Ibid. Figure?2.?Three?$10?1934A?New? York?late?finished?face?plate?169? varieties:?B?C?block?(top),?B?D? block?(middle),?and?star?note? (bottom).?(Courtesy?Heritage? Auction?Galleries?[top];?Robert? Calderman?[middle?and?bottom].)? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 273 The Quartermaster Column by Michael McNeil Benny Bolin graciously extended me an invitation to write a column about the Confederate quartermasters, commissaries, and agents whose endorsements occasionally grace the backs of T-39 and T-40 ?Train? notes and T-41 ?Hoer? notes. I am a member of the Trainmen, a group of collectors who have worked for years to identify these officers and have sought to understand some of their history. These treasury notes bore interest at 7.30% per year and the only requirement for a disbursement was a date of issue on the back of the note to provide a starting date for the interest the government would pay. Endorsements of issue by the many government depositaries are relatively easy to find. More rarely do we find endorsements by military quartermasters, commissaries, paymasters, and surgeons, who sometimes thought to include their name, rank, title, and more rarely, their military unit or place of issue. The first issue of this column will tell the story of a rather rare endorsement, but there will be future stories of many officers whose endorsements are easily found at shows and online auctions. The information for these stories is primarily sourced from the new book, Confederate Quartermasters, Commissaries, and Agents. While the book is written in an academic style, war brings out the best and the worst in the participants and this column will focus on the more colorful stories of these officers and agents. As Randy Shipley would often say, holding a note with these endorsements is like holding history in your hands. A Bidding War for a Confederate Quartermaster A T-41 note endorsed by Major John A. Harman crossed the Heritage auction block in September 2014 for $5,581, a price several times that of a typical new discovery of a military officer. The author of the book on this subject, Confederate Quartermasters, Commissaries, and Agents, was as astounded by this auction as anyone else. What did the bidders in this auction know that wasn?t obvious to the collectors who specialize in these endorsements? The illustration of the endorsement on the back of the note shows that Major Harman was a Chief Quartermaster in General Robert E. Lee?s 2nd Corps, Army of Northern Virginia. The military history of Harman on pages 318-320 in Confederate Quartermansters, Commissaries, and Agents is based on research of Harman?s original documents from the National Archives, made available online by the website No details emerged from these documents that would explain the stratospheric auction price. Page 592 in the second volume of Shelby Foote?s monumental work, The Civil War, A Narrative, suggested an answer to the Heritage auction bidding war. Lee lost the Battle of Gettysburg and retreated towards the Potomac river on the night of July 4th, 1863. The victorious Union General Meade made constant excuses to his commanding officer Halleck about his refusal to pursue Lee. President Lincoln grew increasingly impatient as well. On July 14th Meade finally overcame his inertia and moved against Lee, who had become trapped at the swollen edge of the Potomac River. Lee was extremely vulnerable, but Meade?s caution had given Lee precious time. Foote rarely mentions a quartermaster, but he credits ?...Jackson?s ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 274 old quartermaster, Major John Harman, who managed the army?s extraction and landed it safe on the soil of Virginia, having improvised pontoons by tearing down abandoned houses for their timbers....? John Harman saved Robert E. Lee?s army just in the nick of time as Meade?s army arrived to meet the last remnant of Lee?s troops crossing the river. It is quite possible that Meade?s inaction and Major John Harman?s initiative to save Lee?s army might have extended the war by two years. There were apparently other collectors who knew Shelby Foote?s story about Major Harman and recognized this as a significant endorsement, paying dearly to acquire it. Confederate Treasury notes are interesting in their own right, but sometimes, with notes endorsed by men like John Harman, we are indeed ?holding history in our hands.? Michael McNeil The front of the Type 41 Treasury note endorsed by Major John a. Harmon. Image courtesy The back of the Type 41 note with an Interest Paid stamp at Richmond and an endorsement which reads: ?Paid out on the 27 th of February 1863. Joh A. Harman, Maj & Ch. QM 2 nd Corps, A(rmy) N(orthern) V(irginia).? Image courtesy ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 275 The Obsolete Corner The James River and Kanawha Company by Robert Gill Wow! What a week. As I write this, my wife and I have just returned from MONEY 2018 KANSAS CITY. Last year was the first year for the Annual International Paper Money Show to be held in Kansas City, and it was a big success. But I think this year was even better! Dealers were commenting on how they were having a good show with their sales, the exhibits were very good, and most of my "paper money friends" were there. I also, as I always do at shows, met some new ones. I was only able to add one sheet to my collection, but it is a tough one. I'm already looking forward to seeing what Kansas City has in store for us next year. And now, let's look at the sheet that I've chosen to share with you. In this issue of Paper Money, we?re going to look at a sheet from my collection that is by no means rare. There was a group of approximately fifty of them that surfaced about twenty years ago. But this company, supported by a couple of men who would later become very important to our nation, had an interesting history. And that is The James River and Kanawha Company. The creation of Virginia?s canal system began in 1746, spurred on by the support of George Washington and Thomas Jefferson. The goal was to create an economical and reliable way for farmers living on the interior of the state to transport their goods to market. To achieve this, existing rivers were widened, dams were created to control water levels, bridges and aqueducts were erected, and a lock system was established. The James River Company was chartered to raise capital for this venture. For a time, it was very successful, producing significant returns for its investors. However, the citizens of Virginia demanded that the company also maintain and / or improve the canal structure. When the company was unable, or unwilling to comply, the state managed to obtain the charter in 1820. The state intended to further improve the Kanawha River, and to connect the existing canal to the western part of the country, via the Ohio River. The invention of the railroad, however, would eventually cast doubt upon the wisdom of this scheme. Joseph Cabell became the leading proponent of the canal system. He, along with his longtime friend, John Cocke, was able to convince the state to consider a joint / private charter in 1832. The charter was conditioned upon the procurement of five million dollars in private capital. It took Cabell and his supporters nearly three years to interest enough investors in the project. Finally, in 1835, the General Assembly officially granted a charter to The James River and Kanawha Company. Cabell was elected as its first president. Canal construction was divided into three divisions. Ultimately, the plan was to connect Richmond to Covington. Further, railroad lines were to be added after the final division was completed in order to link towns to the waterways. Unfortunately, the company was faced with a myriad of technical and economic problems; subscribers refused to pay, flooding was continual, working conditions were deplorable, creating sever labor shortages, and early work on the canal proved to be defective, requiring nearly continuous repair work. The demise of the company was further hastened by the Civil War. In 1863, General Sheridan and his troops razed many of the bridges and canals, and most of the company?s operating documents were destroyed during the burning of Richmond. This alone wasn?t fatal, but without the funds for repairs, the problems worsened. The combination of these difficulties, coupled with increasing competition from railroads, finally became too great. The James River and Kanawha Company was terminated by the General Assembly in 1880. The original vision of connecting Virginia with the Ohio River came up short, as the canal ended at Buckhannon, in Western Virginia (later became West Virginia). Its assets were subsequently sold to The Richmond & Allegheny Railway Company. So, there's the history behind why this old sheet of paper money exists. Like so many enterprises in the early years of our great country, this company was probably doomed to fail as soon as it was created. But because our forefathers had the character to not give up, other projects continued to be created to take its place. And because of our American "we don't give up" attitude, our great nation is what it is today. As I always do, I invite any comments to my cell phone (580) 221-0898, or my personal email address Until next time... HAPPY COLLECTING. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 276 ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 277 INTERESTING?MINING?NOTES? by?David?E.?Schenkman? The?San?Miguel?Supply?Company?Note?of?Copper?City,?New?Mexico? You will not find Copper City on a map of New Mexico, and according to the web site it ?is not only gone, its exact location is in doubt.? It goes on to say that in 1883 a post office was established in the town, which was located in Sandoval County, but it was discontinued seven years later. During its short heyday, however, there was a population of more than five hundred residents, a school, various stores, a hotel, restaurant, and of course several saloons. Mining towns such as this sprout up quickly when a significant quantity of ore is discovered. An article in the December 29, 1882 issue of the Albuquerque Journal newspaper advised readers ?That Copper City is to be the great copper producing section of the southwest there is no longer any reason to doubt. There is in that vicinity already as great a quantity of ore in sight as there are (in) many districts where much more development work is being done. When Copper City is connected with the outside world by a railroad, its resources will be very rapidly developed.? This sort of news travels fast, and it usually creates a rapid influx of merchants and workers to an area. A typical example is an announcement in the July 19, 1883 issue of the Albuquerque newspaper that ?Reese and Loebner yesterday loaded up all their goods at the Monarch Billiard Hall and shipped them to Copper City where they will at once open a saloon. Copper City is growing every day and men moving into that thriving camp show their business foresight.? To the best of my knowledge, the San Miguel Supply Company note was unknown until the illustrated example was sold by Heritage Auctions as lot 18488 in its October 2015 sale of the Eric Newman collection, where it fetched a price of over two thousand dollars. As the cataloguer pointed out, ?Western and New Mexico Territory National Banknotes have been avidly collected, and many have achieved significant realizations at auctions. New Mexico scrip from this period, like this note, is even rarer.? I agree, and feel very fortunate to have been able to acquire it. Information concerning short-lived companies such as this is nearly as rare as the notes they issued. The San Miguel Supply Company was the company store for the San Miguel Mining Company, and they are both listed in the 1887 and 1889 lists of ?Mines and Mining Firms of New Mexico,? which were published in the Executive Documents of the House of Representatives. The fact that the post office was closed after 1890 indicates that by this time the mines had shut down and the miners had moved on to greener pastures. James E. and Barbara H. Sherman, in their 1975 book Ghost Towns and Mining Camps of New Mexico, relate that ?a tale is told of buried treasure at Copper City. Two partners, Harris Dupont and F. D. Thompson, worked a mining claim near Copper City. Greed took hold of Dupont, and he began quietly caching away more than his share of the mine?s profits. One day when Dupont had gone to town for supplies, Thompson discovered the hidden coins and realized he had been cheated. Thompson kept this discovery from Dupont while awaiting the perfect opportunity to deal out revenge. One afternoon, while Dupont was leaning over to inspect some mine equipment, Thompson hit him on the head with a hammer, killing him instantly. Covering the mine entrance and burying the gold coins, Thompson made a hasty departure for Texas. An innocent sheepherder who stumbled across Dupont?s body and stole the miner?s watch later was hanged for Thompson?s revengeful crime. Years later Thompson returned to recover the money he had buried but was never able to find it.? The story might have nothing to do with the San Miguel Mining Company, but it is interesting nonetheless. The 1886-dated note was printed by the J. M. W. Jones Stationery and Printing Company, located at 76-82 Sherman Street in Chicago, Illinois. This firm?s advertisement in a 1902 directory tells us they were blank book manufacturers, railroad printers, and lithographers and electrotypers. I can?t think of any other mining notes bearing the imprint of this company. Comments, questions, suggestions (and even criticisms) concerning this column may be emailed to or mailed to P.O. Box 2866, La Plata, MD 20646. ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 278 The Silver Certificate After a Half Century This past June marks fifty years since the United States Treasury stopped redeeming silver certificates in ?silver payable to the bearer on demand.? The milestone brought back memories. In 1968 I was old enough to be annoying bank tellers with my own incessant demand for penny rolls in search of wheat cents, cleaning out the neighborhood banks like some numismatic Dillinger. My parents, seeing that I had taken up an innocuous hobby that might shield me from the oncoming cultural tsunamis of sex, drugs, and rock & roll, were indulgent, and fronted me financially. At my tenth birthday they gifted me a peculiar little album called ?The Silver Story?, a leatherette display folder that held a silver certificate, two cheap silver dollars (one Morgan, one Peace), and a little supply of silver granules representing the amount of silver one could get in exchange for a dollar. A text insert described the final years of the silver certificate. Most likely my parents picked up that overpriced bit of instant nostalgia from the coin department at Woodward and Lothrop. My young mind was hugely impressed by those silver dollars, much less so by the petri dish of granules, which looked rather like chewed- up pieces of gum spat out by some mint employee. While I don?t think I cared or understood much about the certificate itself, half a century later that?s what interests me now. Some commentators marking the occasion have waxed sentimental about the final disappearance of currency that was ?backed? by anything, but this is a serious misreading of the history of this remarkable currency. These certificates were never ?backed? by silver. Rather, their issue and circulation always reflected the ebb and flow of silver politics, and the power of silver-mining states, in American history. The Bland-Allison Act of 1878 mandated the coinage of bulky dollars that piled up at the Treasury, as people preferred the more convenient paper certificate that circulated in their stead. The Treasury Note of 1890, issued to purchase the silver states? mining output and ostensibly backed by silver bullion, stated on its face that it was redeemable in ?coin?, language vague enough to allow the government to maintain the gold standard and yet still throw a sop to silver. While resulting in some of the prettiest examples of American currency, silver certificates created no small amount of monetary mischief in the 19th century. Despite their promise to represent silver dollars, the certificates were just another form of fiat money whose mounting volumes tested the credibility of country?s commitment to gold. A federal law of 1882 allowed national banks to hold silver certificates as reserves, yet bank clearinghouses resisted using them in settlements. Like national banknotes, the certificates weren?t legal tender. But unlike United States Notes, they were receivable for duties on imports, as were the Notes of 1890. Since the country otherwise relied upon customs duties to bolster its supply of gold coin, this paper circulation nearly ended the gold standard in 1895, if a Morgan-organized bond syndicate to secure gold from Europe hadn?t come to the rescue. These currency distinctions were characteristic of the ramshackle monetary arrangements of the time. In the words of a Sound Currency author from 1896, ?our currency system?is like one of those old country mansions which have been so altered in the course of generations that of the original structure but little can be recognized?the result may be picturesque, but it is hardly consistent and harmonious.? The defeat of William Jennings Bryan in 1896 and the Gold Standard Act of 1900 formally ended agitation for a silver standard, but silver politics, and the silver certificate, lived on. In a sequence of utter futility, the Pittman Act of 1918 required those unwanted silver dollars to be melted, the bullion sold to Great Britain for use in India, and then replaced through renewed coinage of metal purchased at an inflated price! These shenanigans continued into the 1930s, thanks to the Thomas Amendment to the Agricultural Adjustment Act (1933) and the Silver Purchase Act (1934). Together, these laws assured that the federal government would keep issuing silver certificates as a pretext for propping up the price of the metal. Legal distinctions between the various types of American currency disappeared in the 1930s, and thereafter United States Notes and silver certificates differed only in that they were emissions of the Treasury, rather than obligations of the Federal Reserve. Distribution of the descendants of the original Greenback ended in 1971. Silver certificates persisted only so long as the market price of silver remained below their face value, but once it rose beyond that, their use became untenable. With their disappearance, the ?country mansion? that is the currency of the United States became simpler, but also much less interesting. Chump Change Loren Gatch ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 279 Wednesday, August 22, 10AM ? Friday, August 31, 10AM online at 1875 Colorado National Bank of Denver $5 Note, PMG Very Fine 20; 1934 $500 Federal Reserve Note, Fr. 2201a-D, PCGS About New 50; Confederate Packing-House 5 Cent Note; 1882 The First National Bank of Malden Brown Back $5 Note; 1902 The First National Bank of Chicago Date Back Uncut Sheet Coins & Currency at auction Kyle Johnson 508.970.3191 MA LIC. 2304 President?s Column July/August 2018 I?m two for two at IPMS KC. Last year, at the first International Paper Money Show held in Kansas City, I was able to pick up some unique Minnesota obsoletes for my collection. We did it again this year! Check out this charming, previously unreported piece of scrip: I was also able to pick up a winner at the auction and a super rare pre-star replacement Black Eagle on the bourse floor. We?ll try for a three-peat next year! All these are icing on the cake. The IPMS lived up to its reputation as the premier currency show in the country. In addition to the bourse floor and auction opportunities to buy and sell, there was the Federal Reserve Bank tour, the SPMC breakfast, a packed seminar agenda with twelve presentations by leading researchers, 91 exhibit cases and the award ceremony, and the SPMC Hall of Fame induction. I just wish I had more time to participate in all these events! Let me touch on some of our awards this year. I look forward to the SPMC breakfast each year as this is our opportunity to recognize deserving individuals in the hobby. The Nathan Gold award, our version of a lifetime achievement award, went to Pierre Fricke for his many contributions in the CSA field, as well as his long-time service to SPMC. We were pleased to recognize Doug Davis, the IPMS bourse show chairman and founder of the Numismatic Crime Information Center, with the Founders Award bestowed for outstanding service. With the President?s Award, I thought Robert Calderman and Gary Dobbins were especially deserving for embracing the priorities we identified last year in outreach, by setting up SPMC tables at more regional shows. Loren Gatch took one of these home as well, for his work on ERO foundational activities. Top recruiters for the year were once again longtime missionaries to the hobby Laura Kessler and Jason Bradford of PCGS Currency, along with Robert Calderman. They earned the Nathan Goldstein Awards. The ERO Award (formerly the Social Media Award) went to Armand Shank for building on Maryland on the ODP website and Mack Martin for his work on Georgia over the last year. Our editor, Benny Bolin, presented several literary awards at the breakfast. The winners, selected by you the membership with our online voting, can be found on the SPMC website. One important take-away from our SPMC board meeting is that in the coming year, in time for the next IPMS, we will start a new initiative to up the stakes in our exhibit judging and correspondingly in the awards we present for those exceptional exhibits. Watch for details from our exhibit committee members Robert Moon, Wendell Wolka, Robert Vandevender and Robert Calderman. We also discussed starting a speaker?s program at the FUN show in January, aimed at introductory topics to the hobby. Those who volunteered to give talks are Robert Moon (nationals), Pierre Fricke (Confederate), Wendell Wolka (obsoletes) and Robert Calderman (small type). Many thanks to these individuals for their part in building the Society and proselytizing our hobby. With that, it?s time for me to pack away the banknotes and rebalance for the summer. I?ve always told my two daughters that they need know their passion and find their balance. I plan to spend the summer somewhere in the sunshine with family and friends. I hope you have a great summer! Shawn ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 281 Editor Sez KC was FUN! Hopefully you were all able to join us for the 2018 IPMS in Kansas City. If not, you missed a great time and show. Once again KC was a great venue and the Sheraton was nice. After the show, my wife (Kim) and I went to Eureka Springs and stayed a couple of extra nights in a treehouse! Yes, the squirrels were honored! That was neat, but I want to go back and stay in one of the castle rooms or the hobbit caves! While IPMS has now become a time of fun, meetings and mingling with old friends, I was able to buy a few notes. My collecting focus has changed drastically and am now primarily only collecting fractional currency look-a-likes and fractional manuscript notes, pickings are slim. But, it is still a wonderful time and one I would not miss for the world. Well almost?Seems the HS choir is going on a ten-day trip to Italy next summer and they need a nurse and have asked me to go. But it is during the same time as the IPMS?now that is a quandary in that this would be the first I have missed since 1985! Oh well we will save that for a later day. Kansas City was great. I got to meet up with many old friends, made new ones and got to see a LOT of paper money. This show was pretty much my swan song as far as exhibiting goes. I have place at least one and most years two exhibits since my second IPMS in 1986. My collecting focus has changed to mostly research and literature, so not a lot of notes to exhibit. Speaking of exhibits, we must say a JOB WELL DONE to new exhibit chair Robert Moon (and his able- bodied assistant Frank Clark). Bob had some incredibly big shoes to fill, those of long time exhibit chair Martin Delger. He did a great job and has wonderful ideas for next year?and he won an SPMC runner-up exhibit award for his exhibit on ?How to Get Your Wife Interested in National Banknotes.? Peter Huntoon once again did a great job coordinating the speaker series. Many great and educational presentations were done and much knowledge was gained. Club meetings were of course held. My group, the Fractional Currency Collectors Board (FCCB) met for dinner at a wonderful KC BBQ joint and it was quite the time. And we had the honor of installing five new members to the SPMC Hall-of-Fame. I have been privileged to know four of them. All have contributed extensively to the hobby, but three have had a hand in shaping my collecting career. I started collecting coins in 1964 and sold all of them and moved into paper money in 1982. I got one of Hugh Shull?s early catalogs and was forever hooked. For some reason, I started collecting South Carolina obsoletes and he has been a wonderful dealer friend, mentor and all around good guy ever since. Martin Delger of course was bourse chair when I started exhibiting and as a fellow fractional collector, gave me lots of tips and advice on exhibiting and collecting in general. I missed seeing Martin but wish him well. Matt Rothert was the man responsible for getting ?In God We Trust? placed on our paper money. But to me he was more than that. I only had the privilege of meeting him once or twice at my early IPMSs, but his knowledge of fractional currency was substantial. His Guidebook of United States Fractional Currency? was one of my earliest references and it was my true early guidebook. I have known Neil Shafer for many years, primarily through our overlapping service on the SPMC board and he is a true gentleman. I never met Mr. Vanbelkum, but have many pieces of correspondence between him and Milt Friedberg on fractional. To all five of these men, we say a hearty CONGRATULATIONS on a well-deserved honor. To finish, I just wanted to share a funny with you. When I got home from my Arkansas trip post KC, I had a letter in my mail that had an FCCB return address on it (mine from when I was newsletter editor). I looked at it and it seems I had sent our members a one page note about Tom Denly buying the third complete set of fractional ever put together. It was postmarked in Dallas on Aug. 7, 2000. It had a yellow RTS sticker on it due to unable to forward that was dated 6/3/2018. It had been in the hands of the USPS for 18 years and finally made it back to me with a 33? stamp! Glad it wasn?t real important! Benny Texting and Driving?It can wait! ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 282 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk?SPMC M_m\_rship Dir_]tor NEW MEMBERS MAY 2018 14774 Kelly Prinkki, Jason Bradford 14775 Gary Braisted, Robert Calderman 14776 Dan Dieter, Website 14777 Roddie Cook 14778 Robert Christiansen, Website 14779 Kyle Mullins, Jason Bradford 14780 Howard Sparks, Coin World 14781 John Lyons, Robert Calderman 14782 Karl Zimmerman, Robert Calderman 14783 Joe Bargowski, Jason Bradford 14784 Larry Scoggins, Website 14785 Jeffrey Jennings, Jason Bradford 14786 Jeff Poulson, Website 14787 Kraig Tripp, Robert Calderman 14788 David Harris, Shawn Hewitt 14789 Tom Havelka, Robert Calderman 14790 Jack Libman, Website REINSTATEMENTS None Life Memberships None NEW MEMBERS JUNE 2018 14791 Brad Rogers, Website 14792 Edmund Ackerman, Website 14793 Nedf CPS, Website 14794 Kimberly Modrall, Jhon E. Cash 14795 Warren Pollard, Website 14796 William Lynch, Website 14797 Leonard Ballas, Website 14798 Patrick Bain, Website 14799 Matt Miller, Jason Bradford 14800 John Shannon, Jason Bradford 14801 James Polis, Website 14802 Gerald Bracken, Website 14803 Jacob Emmons, Website 14804 Jack Overmeyer, Don Kelly 14805 Boris Antipin, Website REINSTATEMENTS None Life Memberships LM437 Wayne Jenevein, Pierre Fricke LM438 Brian Kaufman, Website LM439 William May, Website For Membership questions, dues and contact information go to our website Summer is here! Time for Watermelons!!! ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 283 SPMC?Board?of?Governors?Meeting? June?9,?2018? KC?Sheraton? Present:??Hewitt,?Vandevender,?Bruggeman,?Moon,?Scacci,?Fricke,?Gatch,?Calderman,?Maples,?Wolka,? Dobbins,?Clark,?Bolin? Call?to?order:??The?meeting?was?called?to?order?and?an?announcement?that?a?quorum?was?present?was? made?by?President?Hewitt?at?7:49.?Introductions?were?made?for?new?governors.?? Governor?Election:?After?the?secretary?cast?a?single?ballot,?governors?Dobbins,?Anderson,?Wolka,?and? Scacci?were?re??elected?to?the?board?by?acclimation.? FUN?show?in?Jan.??Treasurer?Moon?has?the?table?app?and?needs?names?of?people?who?will?be?there?to? staff?it.??Must?be?FUN?member?to?work?table.?If?you?can?help,?email?name?to?Mr.?Moon?by?July?1.?? Finance?Report:? ? Three?returned?checks?have?been?received.?Two?for?INSF?Funds?and?one?for?forgery.?Members who?sent?those?checks?have?been?contacted?and?did?not?respond.?Those?members?have subsequently?been?dropped?from?the?rolls. ? Financial?report?was?given?and?the?Society?is?in?good?financial?shape. ? Breakfast??$1280?in?tickets?were?sold.?The?breakfast?cost?was?$1444?and?$1201?in?raffle?tickets were?sold?for?a?bottom?line?profit?of?1036.25. ? Advertising?checks?for?all?PM?advertisers?have?been?sent?in?to?Mr.?Moon. ? A?change?in?dues?submissions?has?been?completed.?Dues?will?now?be?send?directly?to Treasurer?Moon?and?near?real?time?database?update?is?expected. Breakfast?Report?It?was?felt?that?the?breakfast?and?raffle?went?off?smoothly?and?a?good?time?was? had?by?all.?The?major?problem?was?the?sound?issue.?President?Hewitt?had?a?discussion?with?the? manager?and?he?stated?they?would?be?installing?speakers?in?floor?before?next?year?and?that?rooms?in? Union?Station?are?available?for?rent.?? Membership?Director?Membership?director?Clark?gave?a?report?on?membership.??158?new?members? joined?last?year.??The?Society?now?has?1157?members?which?was?up?from?1130?in?Dec.??A?discussion? was?held?about?members?dropping?vs.?joining.?While?we?are?slowing?the?drop?rate?(54?members? dropped?last?year),?this?is?less?than?in?years?past?(<50%).A?discussion?was?held?on?how?to?reach?and? recruit?younger?members.?Various?ideas?were?talked?about?primarily?relating?to?use?of?social?media? and?the?internet.?Governor?Calderman?gave?input?from?his?show?experiences.?An?investigation?of? putting?the?SPMC?table?on?the?youth?treasure?hunt?at?FUN?will?be?started?as?well?as?other?ideas? patterned?after?coin?show?activities.??Mr.?Clark?also?note?that?the?Society?joined?IBNS?as?a?life? member.? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 284 Editor?report:? Paper?Money?editor?Bolin?reported?on?the?state?of?the?journal.?? ? The?normal?6?issues?were?published?in?2017 ? 496?pages?not?counting?covers ? 46?articles?not?including?columns,?society?news?or?ads ? 340?pages?of?original?articles Articles?are?still?needed?especially?in?the?areas?of?World?and?Nationals.?However,?any?subjects?in? length?of?1?4?pages?are?needed.?Also,?any?article?will?be?accepted?as?long?as?it?is?in?a?WORD?format? and?pictures?submitted?in?Jpeg?format.?? Awards:? Awards?chair?Vandevender?reported?on?the?process?since?the?duties?were?transferred?to?the?VP?from? the?IPP.?It?went?well?and?the?awards?were?well?received.?Certificates?printed?by?Mike?Bean?were?given? for?literary?awards?and?for?those?speaking?in?the?speaker?series?sessions.?Awards?for?those?who?were? not?in?attendance?will?be?mailed?by?editor?Bolin.??? Exhibits,?awards?and?recognition:? VP?Vandevender?has?three?volunteers?to?judge?the?exhibits.??Awards?will?be?bestowed?at?4p?in?the? exhibit?area.?A?discussion?was?held?related?to?having?better?prizes?like?other?shows?do.?To?accomplish? this,?we?would?need?to?develop?standards.?Wolka?raised?the?point?to?pattern?these?after?ANA? standards.?This?topic?and?other?initiatives?to?increase?recognition?and?participation?were?brought?up.? A?committee?headed?by?Moon,?with?Wolka?and?Calderman?was?formed.??Governors?were?encouraged? to?send?ideas?to?the?committee.?Hopefully,?a?decision?will?be?made?by?January?for?2019?in?time?for? exhibit?chairman?moon?to?include?with?the?exhibit?apps.?Exhibits?chairman?Moon?noted?that?the? overall?number?of?exhibits?was?down?but?with?some?help?from?members?who?did?multiples,?a?total?of? 91?cases?were?placed.?? Marketing?Committee:?? Chairman?Dobbins?stated?that?our?increased?presence?at?shows?was?successful?and?has?resulted?in? new?members.?Our?ANA?ad?exchange?has?been?deemed?successful?as?>10?members?joined?off?of?our? ad?in?The?Numismatist.?The?club?will?have?a?club?table?at?the?October?SC?state?show.? Website?report:? President?and?website?master?Hewitt?reported?on?the?website.?It?was?upgraded?to?Drupal?7?this?year.? Yearly?maintenance?is?$700.??? Obsolete?Database?report:? President?Hewitt?gave?a?report?on?the?ODB.?Currently?there?are?2,376?locations,?6,756?issuers,?24,159? designs?and?5,058?notes?in?the?database.?Four?states?are?stable?and?ready?to?use?with?two?others?in? process.?Sixteen?states?have?design?data?completed.?The?registries?are?working?well?and?awards?were? voted?on?via?the?website?and?were?awarded?at?the?breakfast.??Currently?there?are?16?sets?included?so? far.?? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 285 Education,?Research?and?Outreach:? Chairman?Gatch?gave?an?update.?Currently?only?one?grant?has?been?received,?that?of?Peter?Huntoon? whose?$5000?grant?was?discussed?and?approved.?A?renewed?effort?to?increase?this?program?will?be? forthcoming?with?information?in?Paper?Money?about?grant?applications?being?available?on?the? website.??President?Hewitt?stated?that?Peter?Huntoon?s?grant?check?of?$5000?has?been?delivered.? Publications?committee:? Chairman?Fricke?gave?an?update.?There?has?been?no?formal?activity?except?for?offering?advice.?The? recommendation?to?move?the?committee?to?advice?and?consult?only?was?approved.?? Audit:? The?audit?of?2017?financial?records?was?completed?by?Governors?Scacci?and?Anderson.?The?financial? were?all?found?to?be?in?compliance.?Motion?to?accept?the?report?was?made?by?Wolka?and?seconded?by? Calderman.?Motion?carried?unanimous.?Report?to?be?retained?in?Societies?permanent?records?by?the? Secretary.?? Hall?of?Fame:? Chairman?Scacci?reported?that?the?HOF?2018?Class?was?made?up?of?Hugh?Shull,?Neil?Shafer,?Martin? Delger,?Robert?Van?Belkum?and?Matt?Rothert.?The?HOF?celebration?is?scheduled?for?6p.?Editor?Bolin? will?place?their?bios?and?pictures?on?the?Website.?? Also?need?expanded?bios?on?the?Shingoethes.??Pictures?needed?of?Robert?Friedberg?and?William? Bradbeer.?Send?to?editor?Bolin?if?you?have?any.?? Philadelphia?ANA?membership?meeting:? Governor?Wolka?reported?he?had?a?room?for?the?meeting/speaker.?It?will?be?held?in?room?122a?of?the? convention?center?on?Saturday?10?11a.?Robert?Calderman?will?be?the?speaker?on?Cherry?Picking?101.?? Governors??terms/By?laws:? Governor?Anderson?has?been?revising?the?by?laws?with?clarification?of?the?governor?terms?and?other? updates.?He?will?send?this?out?ASAP?and?all?were?asked?to?send?him?feedback?and?we?will?act?on?these? at?the?next?phone?conference.?? SPMC?Support?to?Lyn?Knight?for?IPMS?show:? A?discussion?was?held?about?increasing?the?Society?s?support?to?Lyn?of?$1000.?It?was?felt?that?at?this? time?it?would?remain?the?same?and?we?will?try?to?increase?our?support?related?to?increasing?exhibitor? recognition?and?exhibit?awards.?? FUN?speaker?series:? An?initiative?to?set?up?a?speaker?series?related?to?paper?money?for?the?January?FUN?show?will?be? investigated.?? Adjournment:? The?meeting?was?adjourned?at?9:57a.? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 286 WANTED: 1778 NORTHCAROLINACOLONIAL$40. (Free Speech Motto). Kenneth Casebeer, (828) 277- 1779; 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. 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 FOR SALE: College Currency/advertising notes/ 1907 depression scrip/Michigan Obsoletes/Michigan Nationals/stock certificates. Other interests? please advise. Lawrence Falater.Box 81, Allen, MI. 49227 WANTED: Any type Nationals containing the name ?LAWRENCE? (i.e. bank of LAWRENCE). Send photo/price/description to WANTED: Republic of Texas ?Star? (1st issue) notes. Also ?Medallion? (3rd issue) notes. VF+. Serious Collector. BUYING ONLY $1 HAWAII OVERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. Vermont National Bank Notes for sale. For list contact. WANTED: Any type Nationals from Charter #10444 Forestville, NY. Contact with price. Leo Duliba, 469 Willard St., Jamestown, NY 14701-4129. "Collecting Paper Money with Confidence". All 27 grading factors explained clearly and in detail. Now available . Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. Wanted Railroad scrip Wills Valley; Western & Atlantic 1840s; East Tennessee & Georgia; Memphis and Charleston. Dennis Schafluetzel 1900 Red Fox Lane; Hixson, TN 37343. Call 423-842-5527 or email dennis@schafluetzel WANTED: DC MERCHANT SCRIP. Looking for pre-1871 DC merchant scrip (Alexandria, Georgetown & Washington). Send photo/price/description to Buying & Selling ? Obsolete ? Confederate ? Colonial & Continental ? Fractional ? Large & Small U.S. Type Notes Vern Potter Currency & Collectibles Please visit our Website at Hundreds of Quality Notes Scanned, Attributed & Priced P.O. Box 10040 Torrance, CA 90505-0740 Phone: 310-326-0406 Email: Member ?PCDA ?SPMC ?FUN ?ANA UnitedStatesPaperMoney specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes LargeSize Type ErrorNotes SmallSizeType National Currency StarorReplacementNotes Specimens, Proofs,Experimentals FrederickJ. Bart Bart,Inc. website: (586)979-3400 POBox2? Roseville,MI 48066 e-mail: $MoneyMart $? ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 287 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, Fractional Currency Collectors Join the Fractional Currency Collectors Board (FCCB) today and join with other collectors who study, collect and commiserate about these fascinating notes. New members get a copy of Milt Friedberg?s updated version of the Encyclopedia of United States Postage and Fractional Currency as well as a copy of the S implified copy of the same which is aimed at new collectors. Come join a group dedicated to the are fractional fanatics! New Membership is $30 or $22 for the Simplified edition only To join, contact Dave Stitely, membership chair Box 136, Gradyville, PA 19039. SIZE INCHES 50 100 500 1000 Fractional 43/4 X 21/4 $28.40 $51.00 $228.00 $400.00 Colonial 51/2 X 31/16 $25.20 $45.00 $208.00 $364.00 Small Currency 65/8 X 27/8 $25.45 $47.00 $212.00 $380.00 Large Currency 77/8 X 31/2 $31.10 $55.00 $258.00 $504.00 Auction 9 X 33/4 $31.10 $55.00 $258.00 $504.00 Foreign Currency 8 X 5 $38.00 $68.50 $310.00 $537.00 Checks 95/8 X 41/4 $40.00 $72.50 $330.00 $577.00 SHEET HOLDERS 10 50 100 250 Obsolete Sheet--end open 8 3/4 X 141/2 $23.00 $101.00 $177.00 $412.00 National Sheet--side open 8 1/2 X 171/2 $24.00 $108.00 $190.00 $421.00 Stock Certificate--end open 9 1/2 X 121/2 $21.50 $95.00 $165.00 $390.00 Map & Bond--end open 181/2 X 241/2 $91.00 $405.00 $738.00 $1,698.00 Photo 51/4 X 71/4 $12.00 $46.00 $80.00 $186.00 Foreign Oversize 10 X 6 $23.00 $89.00 $150.00 $320.00 Foreign Jumbo 10 X 8 $30.00 $118.00 $199.00 $425.00 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 1507 Sanborn Ave. ? Box 258 Okoboji, IA 51355 Open from Memorial Day thru Labor Day History of National Banking & Bank Notes Turn of the Century Iowa Postcards MYLAR-D? CURRENCY HOLDERS BANK NOTE AND CHECK HOLDERS 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 Out of Country sent Registered Mail at Your Cost 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 29, Dedham, MA 02027 ? 781-326-9481 ORDERS: 800-HI-DENLY ? FAX-781-326-9484 WWW.DENLY?S.COM ___________________________________________________________Paper Money * July/August 2018 * Whole No. 316_____________________________________________________________ 288 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 To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to: The Professional Currency Dealers Association PCDA ? Hosts the annual National Currency and Coin Convention during March in Rosemont, Illinois. 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 International Paper Money Show, as well as Paper Money classes and scholarships 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. Or Visit Our Web Site At: Bea Sanchez ? Secretary P.O. Box 44-2809 ? Miami, FL 33144-2809 (305) 264-1101 ? email: Paul R. Minshull #LSM0605473; Heritage Auctions #LSM0602703 & #LSM0624318. BP 20%; see 48408 DALLAS | NEW YORK | BEVERLY HILLS | SAN FRANCISCO | CHICAGO | PALM BEACH LONDON | PARIS | GENEVA | AMSTERDAM | HONG KONG Always Accepting Quality Consignments in 40 Categories Immediate Cash Advances Available 1 Million+ Online Bidder-Members U.S. & WORLD CURRENCY SIGNATURE? AUCTIONS September 5-11, 2018 | Long Beach | Live & Online Now Accepting Consignments for our Official September Long Beach Signature? Auctions. Highlights Already Consigned Deadline: July 16 To consign, contact a Heritage Consignment Director 800-872-6467, ext. 1001 or Fr. 181 $100 1880 Legal Tender PMG Very Fine 30 Vermont February 1781 20s PCGS Extremely Fine 40 From the Cherry Blossom Collection Continental Currency April 11, 1778 $5 PCGS Superb Gem New 67PPQ From the Cherry Blossom Collection Continental Currency May 10, 1775 Marbled Edge $20 PCGS Extremely Fine 40 From the Cherry Blossom Collection Massachusetts August 18, 1775 4s PCGS Choice New 63 From the Cherry Blossom Collection Fr. 196a $10 1863 Interest Bearing Note PMG Very Fine 25