Rare Postal Note from Sitka, Alaska Fractional Currency Errors Legal Tender Classification Chart and much more inside! Paper Money Vol. LVIII, No. 2, Whole No. 320 www.SPMC.org March/April 2019 Official Journal of the Society of Paper Money Collectors 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 • 949.253.0916 123 West 57th Street, New York, NY 10019 • 212.582.2580 Info@StacksBowers.com • StacksBowers.com California • New York • New Hampshire • Hong Kong • Paris SBG PM ANA2019AucSol 190130 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 the Stack’s Bowers Galleries Official Auction of the ANA World’s Fair of Money® Stack’s Bowers Galleries continues to realize strong prices for currency, as shown by these results from our recent auctions. We are currently accepting consignments to our Official Auction of the 2019 ANA World’s Fair of Money in Rosemont, Illinois. Whether you have an entire cabinet or just a few duplicates, the experts at Stack’s Bowers Galleries are just a phone call away and ready to assist you in realizing top dollar for your currency. Contact our currency specialists to discuss opportunities for upcoming auctions. They will be happy to assist you every step of the way. 800.458.4646 West Coast Office 800.566.2580 East Coast Office T-2. Confederate Currency. 1861 $500. PMG Very Fine 30. Realized $39,950 Fr. 2220-F. 1928 $5000 Federal Reserve Note. Atlanta. PCGS Very Fine 30 PPQ. Realized $129,250 Deadwood, South Dakota. $10 1882 Brown Back. Fr. 487. The American NB. PCGS Very Fine 30 PPQ. Serial Number 1. Realized $64,625 Fr. 202a. 1861 $50 Interest Bearing Note PCGS Currency Very Fine 25. Realized $1,020,000 Fr. 346d. 1880 $1000 Silver Certificate of Deposit. PCGS Currency Very Fine 25. Realized $1,020,000 Fr. 183c. 1863 $500 Legal Tender Note PCGS Currency Very Choice New 64 PPQ. Realized $900,000 Fr. 187b. 18803 $1000 Legal Tender Note PCGS Currency Choice About New 55. Realized $960,000 Ketchikan, Alaska. Small Size $5. Fr. 1800. The First NB of Ketchikan. Charter #4983. PMG Gem Uncirculated 65 EPQ*. Realized $90,000 Auction: August 13-16, 2019 | Consign U.S. Currency by June 24, 2019 Fr. 379a. 1890 $1000 Treasury Note, PCGS Currency About New 50. Realized $2,040,000 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. 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Benny Bolin, Editor Editor Email—smcbb@sbcglobal.net Visit the SPMC website—www.SPMC.org Rare Postal Note from Sitka Alaska Surfaces Kent Halland & Charles Surasky .................................. 76 1862-1863 Legal Tender Classification Chart Peter Huntoon & Doug Murray. .................................... 85 3rd Issue Fractional Currency Errors (Part 2) Rick Melamed ............................................................... 92 Uncoupled—Joe Boling & Fred Schwan ................................. 106 Origin of the Train Vignette on T-39 Confederate Notes Marvin Ashmore & Michael McNeil ............................. 116 John Benjamin Burton Charles Derby ............................................................. 119 United Cigar Stores Company Coupons Loren Gatch ................................................................ 129 1917 $1 Fr. 37a Error Peter Huntoon ............................................................. 134 Small Notes—Two $5 Master Plate Proofs .......................... 136 Chump Change .................................................................... 139 Quartermaster Column ....................................................... 140 Obsolete Corner ................................................................... 142 President’s Message ........................................................... 144 New Members ....................................................................... 145 Editor Sez ............................................................................. 146 Membership Map ................................................................. 147 New SPMC Exhibit Program ............................................... 148 Money Mart .............................................................................. 151 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 73 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 90538, Alamo Heights, TX 78209 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 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 5439 Sun City Center, FL 33571 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT--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, www.spmc.org. .The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards, but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the Society prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date which can be found on the label of Paper Money. Renewals may be done via the Society website www.spmc.org or by check/money order sent to the secretary. Pierre Fricke—Buying and Selling!  1861‐1869 Large Type, Confederate and Obsolete Money!  P.O. Box 90538, Alamo Heights, TX 78209 ; pierrefricke@buyvintagemoney.com; www.buyvintagemoney.com  And many more CSA, Union and Obsolete Bank Notes for sale ranging from $10 to five figures ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 74 Contact JimG@Kagins.com or call 888.8Kagins to speak directly to Donald Kagin, Ph.D. who will arrange to visit you and appraise your collecti on free and without obligati on. To reserve your catalog for Kagin’s March 2019 National Money Show auction contact us at : kagins.com, by phone: 888-852-4467 or e-mail: info@kagins.com. Register to Bid and Reserve Your Catalog for Kagin’s O cial Auction of the ANA National Money ShowTM March 28-30, 2019 David L. Lawrence Convention Ctr, Pittsburgh, PA National Bank Note Collection The Joel Anderson Collection of the #1 Registry Set of Treasury Notes of the War of 1812: The First circulating U.S. Bank Note Encased Postage Stamps Additional consigned material includes: – Colonial, U.S. coins and patterns – Pioneer gold coins and patterns – U.S. tokens and medals – U.S. Colonial and Federal Currency – Additional Asian, Mexican, German and World paper currency – Check out new Colonial and complete Barber proof collection for sale now! Mexican Bank Note Collection The Carlson Chambliss Collection: Fractional Currency Collection New Zealand Currency Collection Israeli Currency Collection 1869 $50 “rainbow” note Currency Errors Kagins-PM-NMS-Bid-Ad-02-13-19.indd 1 2/13/19 11:50 AM An Extremely Rare Alaska Postal Note Surfaces After 124 Years by Kent Halland & Charles Surasky When the words “Alaska” and “New Discovery” are mentioned in a room full of currency collectors, the room grows silent, ears perk up, and all attention focuses on the person who spoke those words. Why? In the numismatic specialty of paper money collecting, 19th century notes from Alaska are extremely rare and actively sought by collectors. In the realm of Postal Note collecting, Alaska notes are all but impossible to acquire. That is true because there are just three known examples, all of which reside in private hands, and none have appeared in public for well over a decade. It is an understatement to say we (the authors) were excited to learn of the existence of a previously unreported Postal Note from Alaska! After an up-close inspection, we can now confirm that an extremely rare and desirable U.S. Postal Note, only the fourth Alaska note known to 21st century collectors, has surfaced. Figure 1 is a cropped image of that note. The note, bearing serial number 854 and catalogued as a “Rare 1894 Sitka, Alaska Territory Postal Note in superb condition” was sold at auction in the town of Brodheadsville (pop. 1,800) in Monroe County, Pennsylvania in April, 2018. It was purchased by an astute currency dealer who immediately sold it by private treaty to a Postal Note specialist for an undisclosed price. A Bit of Alaska History Alaska wasn’t a State on September 3, 1883, the day Postal Notes were first issued in the contiguous States and Territories. It became our 49th State nearly 76 years later – in early 1959. Here’s a brief overview of Alaska’s and Sitka’s history: Russia colonized what we know as southeastern Alaska in the early 1700’s after fur traders returned from the area with valuable sea otter pelts. This region was known as Russian America from about 1808 until 1867. The United States, under the direction of Secretary of State William Seward, purchased Alaska from Russia for $7.2 million (“in coin” according to the handwritten receipt that now accompanies the Treasury Warrant in the National Archives). His critics derided the 1867 purchase, calling it “Seward’s Folly,” but we now know his decision proved fortuitous for our nation. How Our Government Paid for Alaska The Treasury Warrant shown below for $7.2 million was issued for the purchase of Alaska from Russia. It is signed twice by Francis E. Spinner, Treasurer of the United States from 1861 to 1875 -- during the terms of Presidents Lincoln, Johnson and Grant. Spinner is credited with the creation of U.S. Postal and Fractional Currency during the Civil War – the immediate ancestors of Postal Notes. The warrant was printed for the government by the American Bank Note Figure 1: A close-up showing Office of Issue and Serial Number of this rare Postal Note. Figure 2: The United States Treasury Warrant issued to pay Russia for Alaska. Image Courtesy of the National Archives: https://catalog.archives.gov/id/301667 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 76 Company. Incidentally, ABNCo was awarded the second four-year contract to engrave and print Postal Notes in 1887. Sitka, located on Alaska’s temperate southern coast, some 850 miles north of Seattle, served as the U.S. government capitol of the Department of Alaska from its acquisition in 1867 to 1884. Likewise, it was the seat of government for the District of Alaska from 1884 to 1906, when Juneau became the capitol. Actually, there were two Russian settlements formally known as Sitka. The first site was settled in about 1799 and named Redoubt St. Archangel Michael. This site is now in the Old Sitka State Historical Park, located about seven miles north of the city now known as Sitka. Present-day Sitka’s first name, in Russian, was Novo-Arkhangelsk. It was established in 1804 by Alexander Baranov about two years after the Tlingit destroyed the original settlement. Later re-named New Archangel and finally Sitka, it served as the capital of Russian America from 1808 until 1867. Following the discovery of gold in 1883 and the subsequent gold rush at the end of the 19th century, Alaska’s population soared from roughly 33,400 to 63,500. Alaska was officially incorporated as a Territory in 1912. It became the 49th State on January 3, 1959. Thus the region once referred to as Russian America, and now known as Alaska, has been officially recognized as a Department, a District, a Territory, and a State since its purchase from Russia. About U.S. Postal Notes U.S. Postal Notes, a special kind of domestic money order, were issued from September 3, 1883 to June 30, 1894. The series was produced on two Crane & Company watermarked banknote papers, by three private firms, in a variety of designs. Official government records indicate 70.8 million Postal Notes were issued to the public. The vast majority were issued, delivered, cashed, accounted for and destroyed – as Congress had authorized. Of the approximately 2,000 surviving examples, the most frequently seen face values are one or two cents, suggesting they were purchased and preserved as collector’s items or souvenirs. Government records show 3,046 Postal Notes were issued by just four postal money order offices in Alaska from late 1889 through June of 1894. Given the dates of issue, those Postal Notes were issued when the region was known as the District of Alaska. To give an idea of rarity, the Postal Notes issued in Alaska represent a mere 0.0043% (3,046/70,824,173) of all Postal Notes issued in the United States in the 19th century. Sitka Postal Note #854 The immense rarity of Alaska Postal Notes has prevented an in-person study of any examples by the authors -- until now (fall of 2018). Before showing images of the note in its entirety, we wish to discuss our observations to explain why this is truly an extraordinary Postal Note—one that has been unknown to collectors for 124 years. As we examined this note, our eyes were drawn to several interesting aspects: 1. Unlike most surviving Postal Notes, Sitka #854 has a face value of five cents, suggesting it may have been acquired to be used as Congress intended: to purchase something, re-pay a debt or transmit funds to a distant location. Observe too, that the note is not signed by a redeemer above the engraving company’s name; Figure 3: Image of Sitka, Alaska circa 1890’s on a postcard. Photo courtesy of the owner of the postcard. Figure 4: Hand-written denomination of five cents. Figure 5: Remitter’s signature is missing. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 77 the “star” below the fee shield is not punched (Figure 6, below), and there is no paying office date stamp on the reverse (Figure 7, also below) – conclusive evidence that this note was never cashed. These observations lead us to believe the note was purchased as a souvenir, despite its atypically high face value, or was set aside and never used as intended. Notice also, the dimes column (Figure 6) was not punched in the “0” location. This oversight was a common problem with Postal Notes and one which allowed the nefarious “raising” of the value of notes not punched correctly. Whatever this note’s intended purpose, it was well cared for and is truly in superb condition for a piece of paper “currency” that is over 120 years old. How it found its way to rural Pennsylvania is a mystery unlikely to be solved. 2. Sitka Postal Note #854 was produced by Dunlap & Clarke, the Philadelphia-based printer that won the final four-year Postal Note supply contract (which commenced on August 15, 1891). The firm’s name appears at six o’clock on the face of the note (Figure 8), making this a Type V note. Figure 8: Engraved name of printer. Please continue reading. This will prove to be no ordinary Type V note. 3. Of special interest is the postmaster signature on the front of the note (Figure 9.) It reads “Paulina Cohen.” She was the town’s postmistress from August 22, 1890 until she resigned in 1900 -- to manage the Baranof Hotel. She holds the distinction of issuing the first Money Order at the Sitka Post Office in 1892. In all likelihood, she issued Sitka’s first Postal Note too. Only a small percentage of the approximately 2,000 surviving Postal Notes exhibit the signature of a Postmistress, making this a desirable example in that regard. Miss Cohen was the daughter of Abraham Cohen, one of Sitka’s best known residents, likely because he had opened the Sitka Brewery in 1868. Following Miss Cohen’s postmistress appointment, she moved the post office to a log building on the corner of American and Lincoln Streets in Sitka. She ensured the post office operated regular hours on Wednesdays to sell Figure 6: The Cancelling Star is not punched and the dimes column is not punched. Figure 7: Cancellation stamp of paying office. Figure 9: Signature of Postmistress Paulina Cohen ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 78 postage stamps and conduct the registry business. On April 4, 1892 her post office was designated as a Money Order Office and Paulina began selling Money Orders and Postal Notes daily between 2 and 3 p.m., except Sundays when the Post Office was closed. She later expanded the operating hours of the office. This Sitka Post Office, (Figure 11) may have been the location where the Sitka #854 Postal Note originated, but that is pure conjecture. 4. If you are not familiar with Alaska history, please re-read the earlier paragraphs mentioning Alaska’s official designations, then look carefully at the wording in the issuing office’s circular date stamp on the back of the note (Figure 12.) For a reason that defies fact, it identifies Alaska as a “Territory” (abbreviated “TER.”). We know Alaska was a U.S. District when this note was issued, so the postmaster’s date stamp is factually wrong. That makes it extra-interesting and worthy of further investigation. Why was the term “Territory” used rather than “District”? 5. The issue date (see Figures 1 and 12) of Sitka Postal Note #854 is January 27, 1894 (a Saturday), making this the earliest issue date known for any surviving Postal Note from Alaska. 6. Now for something special for all Postal Note enthusiasts. Postal Note experts have recognized a “new” variety of the Type V notes since it was first reported by Robert Laub in 2010. Look at the three images on the next page. Figure 13 is from a Type IV reverse engraved and printed by the American Bank Note Company (ABNCo) during the second Postal Note contract (1887-1891.) Figure 14 is the standard Type V reverse, believed to have been created from ABNCo plates modified by Dunlap & Clarke (D&C) by removing the words “American Bank Note Company, New York”, but leaving the scrollwork intact. Notes issued as early as January 1894 began appearing with a new variety of reverse--one in which the residual scrollwork had been completely removed. The authors have designated this new reverse as a Type V.01. The Sitka #854 Postal Note, part of which is shown in Figure 15, is missing the scrollwork and therefore designated as the Type V.01 reverse variety. (The Postal Note identification system in use since the 1970s will be updated and expanded in our upcoming book.) Figure 10: Photograph by Reuben Albertstone showing Paulina Cohen (standing) and her sister Augusta Cohen, ages 25 and 16 respectively. Image PH271 coutesy of the Sitka Historical Society & Museum. Figure 11: Post Office at Sitka. Photo courtesy of the Alaska State Library, Frank LaRoche Photographs Collection, ASL-P130-031. Figure 12: Issuing Office Date Stamp ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 79 Figure 13: Type IV Reverse (has scrollwork and company information.) Figure 14: Type V Reverse (has scrollwork, but no company information.) Figure 15: Type V.01 Reverse (has NO scrollwork or company information.) 7. Here are the full images of this Postal Note. Figure 16: Obverse of Sitka, Alaska Postal Note #854, issued January 27, 1894. Image courtesy of the owner. Figure 17: Reverse of Sitka, Alaska Postal Note #854, issued January 27, 1894. Image courtesy of the owner. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 80 Alaska Postal Notes in Collectors’ Hands With the appearance of Sitka #854, a total of four Postal Notes from Alaska have been identified by modern collectors and researchers. Astoundingly, not one example is from either of modern Alaska’s two most populous cities: Anchorage and Fairbanks. This is because neither of those cities existed during the 1883-1894 Postal Note era. The surviving notes are from three of the four Alaska Post Offices designated as Money Order Offices qualified to issue Postal Notes from late 1889 to June 30, 1894. The previously reported Alaska Postal Notes were all identified as being the Type V design in the late Jim Noll’s 2004 census entitled “Index of U.S. Postal Notes in Collectors Hands”. Because Noll did not list the new variety in his census, it is possible that any one, two or all three could be the Type V.01 variety. As of this writing, the known Alaska notes are as follows: 1. Douglas, AK # 819, issued May 18, 1894 in the amount of two cents. 2. Kodiak, AK # 67, issued June 11, 1894 in the amount of two cents. 3. Sitka, AK # 854, issued January 27, 1894 in the amount of five cents. 4. Sitka, AK # 1051, issued June 18, 1894 in the amount of two cents Also noticeably absent from the list of surviving Alaska Postal Notes: an example from Juneau. Yes, the town destined to become the Capital of Alaska has no surviving Postal Notes reported. It is important to pause here and to make an important fact known to all readers: government records frequently conflict. Regarding Alaska, one source says two Money Order Offices were in operation in October of 1889 while another source does not list any Money Order Offices until 1890. Until this conflict is resolved, we have chosen to list the following months we believe each the four Alaska post offices were designated “Money Order Offices:” Douglas in October of 1889, Juneau in October of 1889, Sitka in April of 1892 and Kodiak in July of 1893. Based on their earliest possible dates of operation, we know the four offices did not issue any Postal Notes between 1883 and 1888, so there were zero Alaska Postal Notes issued on any of Homer Lee Bank Note Company’s designs. Repeat, zero. It’s not even a remote possibility. We are sure some collectors will be saddened by this revelation because it decreases the number of Postal Note types available from Alaska. We also know Dunlap & Clarke did not begin producing the Type V design until their contract commenced on August 15, 1891. Thus, there is the possibility that one or both of the American Bank Note Company (ABNCo) Type IV (with engraved date 188__) or Type IV-A (with engraved date 189__) designs were issued in Alaska by two of the authorized offices that began operation in 1889. So, until researchers can confirm the date that each of the Alaska Post Offices was designated as a Money Order Office and was supplied with Postal Notes for issuance, we cannot be sure if any of those offices first issued Postal Notes in 1889 or 1890. Further research will determine if one, or both ABNCo designs were issued in Alaska. None have been reported to date. Those ABNCo notes, if any exist, will be extremely scarce because only two offices could have issued the ABNCo design. Those offices were Douglas and Juneau, Alaska. With none reported, can we determine how many Postal Notes the Juneau office could have issued? The serial numbers of the known notes indicate the minimum quantity of Postal Notes issued by three of the four Alaska offices. We can draw on this information to determine the quantity likely issued by the Juneau post office. The government data (see Table 1) shows there were only 3,046 Postal Notes with face values totaling $5,768.68 issued throughout the entire expanse of the District of Alaska by the four issuing post offices. By adding the highest known serial numbers of reported notes (using the highest serial, #1051 from Sitka), we know there were at least 819 + 67 +1051 Table 1 Alaska Postal Notes Issued Fiscal Year Ending on June 30 of Quantity Issued Total Value Issued Average Note 1890 158 $ 270.48 $ 1.71 1891 376 $ 720.94 $ 1.92 1892 453 $ 836.77 $ 1.85 1893 906 $ 1,796.47 $ 1.98 1894 1,153 $ 2,144.02 $ 1.86 TOTAL 3,046 $ 5,768.68 $ 1.89 This Alaska Postal Note issuance data was obtained from the Annual Reports of the Postmaster-General of the United States for fiscal years ending June 30, 1890, 1891, 1892, 1893, and 1894. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 81 = 1,937 Postal Notes issued by those three offices, leaving a maximum of 1,109 notes that could have been issued in Juneau. This quantity is probably too high because we have not accounted for quantities issued by the other three offices between the date of their reported notes and June 30, 1894—the last day of issue for all Postal Notes. In all likelihood, the Juneau Money Order Office issued fewer than 1,100 notes, perhaps far fewer. Why? We know the booklets originally containing the other three offices’ notes were likely delivered to each office in increments of 100 notes. Rounding up each of the previously mentioned quantities to the next multiple of 100 results in 900 + 100 + 1,100 = 2,100 notes that were sent to the other three offices in bound booklets. Assuming the other three offices issued every note in their respective booklets by June 30, 1894, we can calculate the minimum number of postal notes that Juneau could have issued by subtracting 2,100 from 3,046 to arrive at 946 as the likely minimum number of notes Juneau issued. Given the number of Postal Notes issued in the other authorized offices throughout the District, we can estimate with some confidence that the Juneau office issued between 946 and 1,109 Postal Notes. If a note from Sitka can surface after 124 years, then perhaps one day soon collectors will rejoice when a new discovery note from Juneau surfaces. So start searching! The lucky finder will hold a very collectable Juneau, Alaska Postal Note worth thousands of dollars. Perhaps it will even be an elusive ABNCo issue! If you find one, please don’t keep it a secret! Let us know of your discovery! About the Authors: Kent Halland has been researching United States Postal Notes and Money Orders for nearly a decade with an emphasis on United States Post Offices, Stations, and Sub-stations that issued those monetary instruments in the 19th century. Kent is a life member of the SPMC. Charles Surasky has collected and written about U.S. Postal Notes for five decades. He has had more than one million words published. The authors are finishing a Postal Notes book that will include previously unknown facts and data (such as the August 15, 1891 contract date mentioned in the article), plus the latest census of all known notes. If you would like to receive a first edition, send your name and email address to: proeds@sbcglobal.net. References and Additional Reading “A Forgotten Chapter: The United States Postal Note”, Nick Bruyer, Paper Money, Whole Number 48-51. “A 131-Year Old Mystery Solved,” Kent Halland and Charles Surasky, Paper Money, November/December 2016. The Comprehensive Catalog of U.S. Paper Money, Fifth Edition, Gene Hessler, pages 387-389. “The U.S. Postal Notes of 1883-1894: The Three Key Pieces of Federal Legislation”, compiled and edited by Charles Surasky, 2011. (Includes a lengthy list of reference sources). “Index of U.S. Postal Notes in Collectors Hands” compiled in 2004 by James E. Noll. States Admitted to the Union: 1883 to 1959 State Date Number State Admitted 39 North Dakota November 2, 1889 40 South Dakota November 2, 1889 41 Montana November 8, 1889 42 Washington November 11, 1889 43 Idaho July 3, 1890 44 Wyoming July 10, 1890 45 Utah January 4, 1896 46 Oklahoma November 16, 1907 47 New Mexico January 6, 1912 48 Arizona February 14, 1912 49 Alaska January 3, 1959 50 Hawaii August 21, 1959 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 82 PMGnotes.com | 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 PMGnotes.com 16-CCGPA-2889_PMG_Ad_NewHolder_PaperMoney_JulyAug2016.indd 1 5/27/16 8:12 AM 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: lyn@lynknight.com - support@lynknight.c om Whether you’re buying or selling, visit our website: www.lynknight.com 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 1862-1863 Legal Tender Classification Chart Purpose Our purpose is to provide a comprehensive and straight forward classification guide that will allow you to unambiguously assign a Friedberg catalog number to 1862 and 1863 legal tender notes. We are using Friedberg catalog numbers because this is the most widely used system of numbers within our hobby. Once you assign the right number to your note, we all will be talking the same language with respect to it. No United States type notes have caused more confusion than the 1862-1863 legal tender issues. The problem is that there are so many arcane variables on these notes that it is easy to misclassify them. Consequently, they are the most erroneously attributed notes in auction catalogs, grading company holders and censes. The process is to match all the diagnostics on your note with the appropriate entry in the accompanying table. Then read the Friedberg number from either the first or last column. Notice that the Friedberg numbers are out of order for the various denominations. We have attempted to put the entries into the approximate chronological order in which they were made. We say approximate because more than one variety was being printed at the same time during some periods. Also, some varieties reappeared after not having been used for a while. The Friedberg numbering system is imperfect, but that is not our problem. Very little was known about these notes when Friedberg first assigned numbers to them. The way his numbering system was set up, all he could do was assign a number to each of the known varieties by series and denomination in the order in which he thought they were produced. He then moved on to the next series and continued numbering. As new varieties were discovered, he had no option but to sandwich the new entries into his listing by assigning suffix letters to them in succeeding editions. However, the letters were assigned in the order in which the discoveries were made, which had nothing to do with the order in which the varieties were produced. Some of the varieties that have been assigned Friedberg numbers are not varieties at all, but misprints. The best example is $2 1862 Fr.41d where the Treasury seal was inverted for at least one printing. This is a misprinted Fr.41c. Another is $20 1863 Fr.126c where the left serial number was misplaced for an entire printing making the notes different from Fr.126b. Doug found a letter in his research where the printer was requested to be careful not to make that mistake again. It certainly created a variety and they made plenty of them so call it what you like, a legitimate variety or a misprint! Of course, this type of numbering system leads to chaos, and that is exactly what happened. That chaos contributes to the difficulty people have when they attempt to classify these notes. At this point, we simply have to acknowledge that the Friedberg numbers are an arbitrary means to allow us to communicate. End of story, for better or worse. Doug Murray, who seriously researched these notes for decades, unraveled the chronology of these issues and determined the actual or approximate numbers of each variety that were printed. He even deduced that certain listed varieties never were printed. Examples being Fr. 149 and 166, respectively a $50 and $100. We have provided census data only for the flaming rarities; that is, the varieties for which fewer than 10 are reported. There is a possibility that you may discover an unreported variety. If you think you have one, send a 300-dpi color scan of it to peterhuntoon@outlook.com. If indeed it is new, you will win for yourself a new listing and the resulting publicity that goes with such a discovery. These wonderful notes were the first true circulating U. S. Treasury issues so there is a great deal of interest in them and they have high visibility. The Paper Column Peter Huntoon Doug Murray ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 85 Classification guide for assigning Friedberg numbers to 1862 and 1863 Legal Tender Notes. Series No. Fr. No. Act Plate Date Series Number Placement Imprints Monogram Seal Serial Numbers $1 1862 17 Jul 11, 1862 Aug 1, 1862 1 left National-American none 1st seal on left serial 17d Jul 11, 1862 Aug 1, 1862 1 left National-American ABC 1st seal on left serial 17b Jul 11, 1862 Aug 1, 1862 1 left National-American ABC 2nd seal on left serial 17a Jul 11, 1862 Aug 1, 1862 1-166 left National-American ABC 2nd left serial on green counter 16b Jul 11, 1862 Aug 1, 1862 166-174 left National-National none 2nd left serial on green counter 16 1st group Jul 11, 1862 Aug 1, 1862 174-234 left National-National none 2nd left serial on green counter 17c Jul 11, 1862 Aug 1, 1862 199-204 left National-American ABC 2nd left serial on green counter 16a Jul 11, 1862 Aug 1, 1862 204-219 left National-National ABC 2nd left serial on green counter 16 2nd group Jul 11, 1862 Aug 1, 1862 219-234 left National-National none 2nd left serial on green counter 16c Jul 11, 1862 Aug 1, 1862 235-284 right National-National none 2nd left serial on green counter $2 1862 41b Jul 11, 1862 Aug 1, 1862 1 right American-National none 1st no face plate number left of portrait 41c Jul 11, 1862 Aug 1, 1862 1-2 right American-National none 2nd no face plate number left of portrait 41d Jul 11, 1862 Aug 1, 1862 1 right American-National none 2nd inverted no face plate number left of portrait 41a Jul 11, 1862 Aug 1, 1862 3-88 right American-National none 2nd face plate number left of portrait 41 Jul 11, 1862 Aug 1, 1862 88-171 right National-National none 2nd face plate number left of portrait $5 1862/1863 61 Feb 25, 1862 Mar 10, 1862 no series none American none 1st one serial number 61a Feb 25, 1862 Mar 10, 1862 2-59 upper left American none 1st one serial number 61b Feb 25, 1862 Mar 10, 1862 59-70 upper left American none 2nd one serial number 61c Feb 25, 1862 Mar 10, 1862 71-119 lower left American none 2nd one serial number 62 Feb 25, 1862 Mar 10, 1862 New 1-23 lower right American-National none 2nd one serial number 63 Mar 3, 1863 Mar 10, 1863 New 24-65 lower right American-National none 2nd one serial number 63a Mar 3, 1863 Mar 10, 1863 New 65-75 lower right American-American none 2nd one serial number 63b Mar 3, 1863 Mar 10, 1863 New 75-83 lower right American-American none 2nd two serial numbers $10 1862/1863 93a Feb 25, 1862 Mar 10, 1862 1 upper right American-Ptd by Nat none 1st upper right corner one serial number 93a-I Feb 25, 1862 Mar 10, 1862 1 upper right American-Ptd by Nat none 1st upper right corner one serial number 93b Feb 25, 1862 Mar 10, 1862 1-9 upper right American-Ptd by Nat none 1st right center one serial number 93c Feb 25, 1862 Mar 10, 1862 1-25 upper right American-Ptd by Nat none 1st right center one serial number 93e Feb 25, 1862 Mar 10, 1862 5-7 census upper right American-Ptd by Nat none 1st right center one serial number 93f Feb 25, 1862 Mar 10, 1862 5 census upper right American-Ptd by Nat none 1st right center one serial number 93d Feb 25, 1862 Mar 10, 1862 26-27 upper right American-Ptd by Nat none 1st right center one serial number 93 Feb 25, 1862 Mar 10, 1862 28-63 upper right American-Ptd by Nat none 2nd right center one serial number 94 Feb 25, 1862 Mar 10, 1862 New 1-15 upper right American-National none 2nd right center one serial number 95 Mar 3, 1863 Mar 10, 1863 New 16-40 upper right American-National none 2nd right center one serial number 95c Mar 3, 1863 Mar 10, 1863 New 40-44 upper right American-National none 2nd right center one serial number 95a Mar 3, 1863 Mar 10, 1863 New 44-48 upper right American-American none 2nd right center one serial number 95b Mar 3, 1863 Mar 10, 1863 New 48-56 upper right American-American N 2nd right center two serial numbers $20 1862/1863 one serial number 124a Feb 25, 1862 Mar 10, 1862 no series none American none 1st one serial number 124b Feb 25, 1862 Mar 10, 1862 2-12 top center American none 1st one serial number 124 Feb 25, 1862 Mar 10, 1862 12-24 top center American none 2nd one serial number 125 Feb 25, 1862 Mar 10, 1862 New 1-8 top center National-American none 2nd one serial number 126 Mar 3, 1863 Mar 10, 1863 New 9-18 top center National-American none 2nd one serial number 126a Mar 3, 1863 Mar 10, 1863 New 18-20 top center American none 2nd one serial number 126c Mar 3, 1863 Mar 10, 1863 New 20-21 top center American none 2nd two serial numbers in line with each other 126b Mar 3, 1863 Mar 10, 1863 New 21-28 top center American none 2nd two serial numbers, left in lower left corner $50 1862/1863 148 Feb 25, 1862 Mar 10, 1862 1-3 upper right National none 1st one serial number 148a Feb 25, 1862 Mar 10, 1862 3-5 upper right National none 2nd one serial number 150 Mar 3, 1863 Mar 10, 1863 New 1 upper right National none 2nd one serial number 150b Mar 3, 1863 Mar 10, 1863 New 1-2 upper right National-American none 2nd one serial number 150a Mar 3, 1863 Mar 10, 1863 New 2 upper right National-American none 2nd one serial number $100 1862/1863 165 Feb 25, 1862 Mar 10, 1862 no series none National ABC 1st one serial number 165b Feb 25, 1862 Mar 10, 1862 2 lower right National none 1st one serial number 165a Feb 25, 1862 Mar 10, 1862 2-3 lower right National none 2nd one serial number 167b Mar 3, 1863 Mar 10, 1863 New 1 lower right National none 2nd one serial number 167 Mar 3, 1863 Mar 10, 1863 New 1 lower right National-American none 2nd one serial number 167a Mar 3, 1863 Mar 10, 1863 New 1-2 lower right National none 2nd two serial numbers $500 1862/1863 183 Feb 25, 1862 Mar 10, 1862 no series none American none 1st one serial number 183a Feb 25, 1862 Mar 10, 1862 no series none American none 2nd one serial number 183b Feb 25, 1862 Mar 10, 1862 New 1 left American-National none 2nd one serial number 183e Mar 3, 1863 Mar 10, 1862 New 1 left American-National none 2nd one serial number 183c Mar 3, 1863 Mar 10, 1862 New 1 left American none 2nd one serial number 183f Mar 3, 1863 Mar 10, 1863 New 1 left American none 2nd one serial number 183d Mar 3, 1863 Mar 10, 1863 New 1 left American none 2nd two serials with left in brackets with different font $1000 1862/1863 186 Feb 25, 1862 Mar 10, 1862 no series none American none 1st one serial number 186a Feb 25, 1862 Mar 10, 1862 no series none American none 2nd one serial number 186b Feb 25, 1862 Mar 10, 1862 New no series lower left American-National none 2nd one serial number 186c Mar 3, 1863 Mar 10, 1862 New no series lower left American-National none 2nd one serial number 186e-1 Mar 3, 1863 Mar 10, 1862 New no series lower left American none 2nd one serial number 186d Mar 3, 1863 Mar 10, 1863 New no series & 2 lower left American none 2nd one serial number 186e Mar 3, 1863 Mar 10, 1863 New 2 lower left American none 2nd two serials with left in brackets with different font ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 86 Green Underprinted Number Patent Date Back Number Printed Special Characteristic Reported Fr. No. $1 1862 30 JUNE 1857 2nd obligation 5,000 est 4 17 30 JUNE 1857 2nd obligation 7,000 est 6 17d 30 JUNE 1857 2nd obligation 12,000 est 1 17b 30 JUNE 1857 2nd obligation 16,512,000 est plates 1 to 45 17a 30 JUNE 1857 2nd obligation 810,000 plates 1-16, 18, 21, 23, 25-45 16b none 2nd obligation 5,854,000 plates 1-16, 18, 21, 23, 25-45 16 - 1st group none 2nd obligation 50,000 est with Fr.16 plates 17, 19, 20, 22, 24 17c none 2nd obligation 150,000 est with Fr.16 plates 17, 19, 20, 22, 24 16a none 2nd obligation 5,854,000 plates 17, 19, 20, 22, 24 16 - 2nd group none 2nd obligation 4,946,000 16c $2 1862 30 JUNE 1857 2nd obligation 10,000 est error - plate number omitted 6 41b 30 JUNE 1857 2nd obligation 178,000 est error - plate number omitted 6 41c 30 JUNE 1857 2nd obligation 12,000 est error - seal inverted & no plate no. 3 41d 30 JUNE 1857 2nd obligation 8,511,160 est 41a 30 JUNE 1857 2nd obligation 8,318,840 41 $5 1862/1863 30 JUNE 1857 1st obligation 100,000 61 30 JUNE 1857 1st obligation 5,750,000 est 61a 30 JUNE 1857 1st obligation 1,150,000 est 61b 30 JUNE 1857 1st obligation 4,900,000 61c 30 JUNE 1857 2nd obligation 2,300,000 62 30 JUNE 1857 2nd obligation 4,132,764 63 none 2nd obligation 1,000,000 63a none 2nd obligation 867,236 63b $10 1862/1863 30 JUNE 1857 1st obligation 60,000 est no starburst bottom 5 93a 30 JUNE 1857 1st obligation 20,000 est with Fr.93a starburst bottom 2 93a-I 30 JUNE 1857 1st obligation 120,000 est with Fr.93c no starburst bottom 93b 30 JUNE 1857 1st obligation 2,220,000 est starburst bottom 93c none (error) 1st obligation 60,000 est with Fr.93b no starburst bottom 5 93e none (error) 1st obligation 20,000 est with Fr.93c starburst bottom 3 93f 30 JUNE 1857 1st obligation 200,000 est starburst bottom 7 93d 30 JUNE 1857 1st obligation 3,600,000 est starburst bottom 93 30 JUNE 1857 2nd obligation 1,500,000 starburst bottom 94 30 JUNE 1857 2nd obligation 2,430,504 starburst bottom 95 April 28, 1863 2nd obligation 370,000 starburst bottom 95c April 28, 1863 2nd obligation 400,000 starburst bottom 95a April 28, 1863 2nd obligation 800,496 starburst bottom 95b $20 1862/1863 30 JUNE 1857 1st obligation 100,000 2 124a 30 JUNE 1857 1st obligation 1,050,000 est 124b 30 JUNE 1857 1st obligation 1,250,000 est 124 30 JUNE 1857 2nd obligation 800,000 125 30 JUNE 1857 2nd obligation 920,984 126 none 2nd obligation 225,000 126a none 2nd obligation 66,016 est error - left serial number was misplaced 9 126c none 2nd obligation 734,000 est 126b $50 1862/1863 30 JUNE 1857 1st obligation 260,000 est 148 30 JUNE 1857 1st obligation 173,600 est 6 148a 30 JUNE 1857 2nd obligation 32,000 150 30 JUNE 1857 2nd obligation 70,504 1 150b April 28, 1863 2nd obligation 65,000 150a $100 1862/1863 30 JUNE 1857 1st obligation 100,000 1 165 30 JUNE 1857 1st obligation 35,000 est 2 165b 30 JUNE 1857 1st obligation 155,000 est 6 165a 30 JUNE 1857 2nd obligation 24,000 2 167b 30 JUNE 1857 2nd obligation 29,440 2 167 30 JUNE 1857 2nd obligation 56,560 167a $500 1862/1863 30 JUNE 1857 1st obligation 26,000 1 183 30 JUNE 1857 1st obligation 12,000 possibly printed 183a 30 JUNE 1857 2nd obligation 5,000 possibly printed 183b 30 JUNE 1857 2nd obligation 22,828 error - plate date should be Mar 10, 1863 183e 30 JUNE 1857 2nd obligation 22,000 error - plate date should be Mar 10, 1863 3 183c none 2nd obligation 8,000 1 183f none 2nd obligation 20,000 1 183d $1000 1862/1863 30 JUNE 1857 1st obligation 12,000 186 30 JUNE 1857 1st obligation 10,000 possibly printed 186a 30 JUNE 1857 2nd obligation 2,500 possibly printed 186b 30 JUNE 1857 2nd obligation 24,904 error - plate date should be Mar 10, 1863 1 186c 30 JUNE 1857 2nd obligation 22,000 error - plate date should be Mar 10, 1863 186e-1 none 2nd obligation 64,000 2 186d none 2nd obligation 20,000 1 186e ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 87 Obligations – backs Several key elements – faces Series Numbers The serial numbering system used on these notes is coupled with the series. Each denomination began with Series 1. The numbering heads used by the bank note companies had five number wheels so the highest number they could print was 99999. However, they hand set 100000 to round out a series. They then advanced the series and printed the next 100000 and so on. In order to change the series, which was a number etched into the surface of the face plates, they had to burnish off the old number and etch in the next. In some cases, they did not etch in a 1 for the first 100,000 notes. See $5 Fr.61, $20 124a, $100 165, $500 183, 183a, $1000 186, 186a. The series number was omitted by mistake on some $2 Fr.41b, 41c, 41d notes. Figure 1. First obligations on left, second on right. The distinction is that the first provides for the exchange of the notes for U. S. bonds. Figure 2. This is a Fr.95 note with March 3, 1863 act date, American & National bank note company imprints, March 10, 1863 plate date, series = 18 New Series, and 30 JUNE 1857 patent date. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 88 Bank Note Company Imprints The contracts for engraving the master dies for the various denominations were spread among the American and National bank note companies as follows: National $1, $2, $50, $100, American $5, $10, $20, $500, $1000, so their respective imprints were placed on the dies. However, a second imprint occurs on most notes, some being duplicates, others being the other company. We have not found an official explanation for the second imprint or discerned a pattern that explains every instance. We simply don’t understand how the imprint system worked. Patent Dates The green ink used to print the green tints on the faces of the notes were patented anti-counterfeiting inks. The patent holders claimed the green couldn’t be removed without damaging the black intaglio printing and the paper, which would prevent counterfeiters from obtaining a sharp photographic image of the black overlay. The Treasury paid a royalty for the use of the inks, first for the Matthews and next for the Eaton formulas; however, neither worked. The patented inks were then dropped from use. The patent dates were incorporated into the designs of the intaglio plates used to print the green tints. Their locations varied depending on denomination, but they are found free-standing under some part of the tint. They can be difficult to see on well-circulated specimens. The Eaton ink is decidedly bluish. The June 30, 1857 date was omitted from one or more of the tint plates used to print $10 1862 Series 5 through 7 notes, thus creating the Fr. 93e & f varieties, which technically classify as errors. Figure 4. George Matthews’ June 30, 1857 and Asahel K. Eaton’s April 28, 1863 patent dates on 1862 and 1863 Legal Tender Notes were for anti-photographic green tint inks. Figure 3. Someone put together this neat pair, not a rollover pair because the 100000 is series 73 and the 1 is series 20. The 100000 had to be hand set because the numbering heads had only 5 number wheels. Lyn Knight Auction photo. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 89 Monograms Corporate monograms were added to a few of the face plates, probably to reveal who printed them. See ABC for $5 Fr.16a, 17a, 17b, 17c, 17d, $100 Fr.165 and N for $10 Fr.95c. Seals Starburst on some $10s The first six $10 plates were altered Demand Note plates. They have no starburst in the center of the lower border. Successive plates made exclusively for the legal tender issues incorporate the starburst. This detail applies only to the $10 notes and is listed in the column labeled “Special Characteristics.” Figure 5. Bank note company monograms: ABC on Fr.17a (left) and N on Fr.95b (right). Figure 6. The background behind the shield is solid on the first seal (left). Figure 7. The bottom border of the $10s come without (top) and with (bottom) a starburst in the center. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 90 3rd Issue Fractional Error Notes (25¢ to 50¢) – Part 2 By Rick Melamed  In previous issues of Paper Money, we explored 2nd issue fractional surcharge errors and fractional error notes from the 3rd issue between the 3¢ to 25¢ denominations. In this issue we complete the 3rd issue research with a presentation of the 25¢ (Fessenden) and the 50¢ (Justice and Spinner) error fractionals.1 Unlike small sized U.S. currency, which has been robustly researched and catalogued, research on fractional error notes is a somewhat under- represented. Therefore, a broad overview dedicated to just fractional errors should be well received. Drawing from an array of high-quality images not available 15 years ago, we are able to deliver a more detailed overview on this subject. A great debt of gratitude must be extended to the father of fractional research, Milton Friedberg. His reference book ‘Encyclopedia of Postage and Fractional Currency’ contains extensive research on all things fractional, with a portion devoted to errors. However, while inverted printing errors were included, other types of errors (i.e. offsets, misalignments, gutter folds, etc.) were not. Also, the images in Milt’s reference were in black and white and were not of optimal quality. Thanks must also be extended to former FCCB (Fractional) President, Tom O’Mara, and SPMC and FCCB former President and current editor, Benny Bolin, for their charts of 3rd issue fractional errors. They’ve allowed me to reprint their original charts and combine them with a host of scans to give us an updated article. Benny shared some of his interesting errors from his personal collection. The images from Tom’s vast error collection (auctioned in 2005 by Heritage), as well as John Ford’s large collection of error fractionals (auctioned by Stack’s from 2004- 2007), were also a huge help. 3rd issue fractionals offer a type of error found nowhere else in U.S. issued currency; the use of bronze surcharges. These bronze surcharges were one of the many anti-counterfeiting measures undertaken by the U.S. Treasury. The process was fairly straightforward; first glue was applied to the notes, then a bronzing powder was added. The bronzing that adhered to the note resulted in the familiar surcharges. The improper application of glue, as well as the multitude of inverted possibilities, produced a fascinating array of bronzing errors. This array of bronzing errors, combined with the more recognizable traditional currency errors, results in an extensive variety of error notes. A. 3rd Issue 25¢ Fessenden Errors. Fessenden fractionals are an underappreciated series. While Spinner and Justice fractionals get more attention from collectors, the Fessenden is a rich series with many varieties and sub-varieties. The mystique of the Fr. 1299 and Fr. 1300 with its thick coarse paper, solid front surcharges and elusive ‘M-2-6-5’ reverse corner surcharges are very desirable, and my personal favorite. It demonstrates how far the Treasury went to thwart the counterfeiters. Too far in actuality, since they were rather difficult to produce. This made them a short-lived series, but a nice well-preserved example is something to be treasured. As it relates to errors; with all those varieties, there a quite a few possibilities. 1. Inverted Reverse Engraving and Surcharge Errors. The chart shown contains the general Friedberg numbers (in the far-left column); individual Milton alpha-numeric designations (i.e.: 3R25.2j) are included where applicable. There are three categories for this kind of error. a. Inverted Back Engraving – Just the back design is inverted; the face engraving and all the surcharges are normal. b. Inverted Back Surcharges – The design and front surcharge are normal; the back surcharge is inverted. c. Total Back Inverted – The face surcharge and design are normal; the back surcharge and design are inverted. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 92 3rd issue - 25 Cents Friedberg No. Inverted Back Engraving Inverted Back Surcharges Total Back Inverted 1291 Unknown 3R25.1h - Unique Unknown 1292 Unknown Unknown Unknown 1294 3R25.2j - Reported 3R25.2i - 12 Known 3R25.2h - Reported 1295 3R25.2k - unique 3R35.2v - unique 3R25.2o - Unique 1296 Unknown Unknown Unknown 1297 Unknown 3R25.4f - unique Unknown 1298 3R25.4b - 2-3 Known 3R25.4e - Unique Unknown 1299 Unknown 3R25.3f - Unique - Ford Unknown 1300 Unknown Unknown Unknown Red back Fessenden surcharge errors are unique; only one example is known to exist. The rarity of this note cannot be understated. Considering the multitudes of green back inverts that exist, only one solitary red back inverted Fessenden is known. Aside from the Fr. 1357 with the inverted reverse (~10 known) there are no known red back inverts for the Spinner, 10¢ Washington and 5¢ Clark. This is also true for inverted plate number notes (see below). There are dozens of examples of inverted/mirrored plate numbers on green backs but only one red back example with an invert (an Fr. 1251 wide margin specimen reverse with an inverted #11). This begs the question: why was extra care used on the red backs? The next string of Fessenden’s show all three types of surcharge errors: inverted back engraving, inverted back surcharge and total inverted back. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 93 Fiber paper Fessenden errors are rare and quite desirable. About five invert errors are known for all 25¢ fiber varieties. Note the inverted ‘25’ and inverted the ‘M-2-6-5’ reverse corner surcharge. 2. Fr. 1296 Engraving Error. A total of 146 plates were used to engrave the Fessenden note: 55 plates for the back design and 91 plates for the face. 90 of the 91 plates were engraved correctly; a single plate (Pate #144) was engraved incorrectly. On the left side of the 12-note sheet plate, a small ‘a’ was engraved as a sheet locator. The normal Fr. 1295 had the ‘a’ designator positioned to the left of Colby’s signature. On the FR. 1296, the engraver placed the ‘a’ 7mm to the right creating a very desirable engraving error. How valuable? A gem Fr. 1296 can easily be worth 15-20 times more than an Fr. 1295. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 94 Fr. 1294-SP-WM with 90° rotated plate #13. A full sheet of Fessenden wide margin specimens consists of eight notes: five horizontal (normal) and three rotated 90°, such that the Fessenden’s are laid out vertically with the portrait looking straight up. The sheet plate #13 was engraved normally, but when the sheet was cut into individual notes, the plate number would appear to be rotated. Not an error, but it sure looks like one. 3. Shifted face surcharge. The bronze surcharges on the Fessenden face are shifted quite significantly to the left. 4. Inverted ‘M’ Surcharge. On all fiber Fessenden’s there is an ‘M-2-6-5’ surcharge stamped onto the back corners. In this rare example of an Fr. 1297 (possibly unique), the ‘M’ in the upper left corner was engraved upside down so the surcharge looks like a ‘W.’ 5. Extra Bronzing. Only 2nd and 3rd issue fractionals contain bronze surcharges. On this example, extra bronzing had been applied to the note. The Fr. 1298 Fessenden is a dramatic example with an extraneous rectangular bronze patch on the left side of the note. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 95 6. Butterfly Error. A butterfly error is a fold along the corner of a note which, after the cutting process, results in an excess flag of paper. It roughly resembles a butterfly's wing. The first Fessenden displays a butterfly error on the bottom left. This Fessenden face has a butterfly on the bottom right. 7. Fessenden Fold-Over Error. The upper left corner on this Fr. 1299 solid surcharge Fessenden was folded during the printing of the back, resulting in part of the reverse design on the fold. 8. Gutter Fold Error. Gutter folds are the result of the uncut sheets being sent through the press with a wrinkle or wrinkles in the paper. When pulled, the gutter reveals a gap in the note design. While they are relatively common in small sized currency, in fractionals they are rare. The Fr-1294-SP-WM shown below (front and back) has discernable gutter fold. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 96 9. Extra Reverse Surcharges. This pair of fiber paper Fessenden’s each have additional surcharges on the back. The first has the ‘25’ shifted so low that there is an extra set of ‘6’ & ‘5’ on the note; the second note has an extra and partial ‘2’ & ‘6’ on the very left margin. 11. Inverted Bronze ‘SPECIMEN’ Imprint on the Back of a Fessenden Specimen. The back of every Fessenden Specimen has the bronze imprint inverted. So finding the imprint right-side up would be the rarity. A. 50¢ Denomination – Spinner and Justice Errors. The undisputed kings of fractionals are the 50¢ Justice and Spinner notes. They contain the most varieties, fetch the highest average price per note at auctions, and offer a large amount of error varieties. 1. Inverted Reverse Engraving and Surcharge Errors. With the all the varieties of Justice and Spinner notes, it would be impractical to show every type of inverted surcharge error per Friedberg number. So we endeavor to show one example of each inverted variety: Type 1 back with and without the corner surcharges and Type 2 reverses. Since the Type 1 reverses were the same for Justice and Spinner notes, the actual amount to showcase is less than one might think. We color coded the entries tying the charts to the images. Citing former FCCB president Tom O’Mara: The third issue Spinner and Justice 50 cent notes were printed in both red and green. Additionally, they were printed with many different bronze back surcharge combinations and on different types of paper. The total number of Friedberg #'s assigned to these 50 cent notes is 19 Spinners and 32 Justices. Of the Spinners, 7 are red backs and 12 are green backs, and of the Justices, 15 are red backs and 17 are green backs. There are NO reported or known Spinner red back inverts and ONLY one Justice red back invert variety (Fr 1357, Milt #3R50.6a). Interestingly enough, there are estimated to be 10 known of this red back Justice variety, making it the most common of all 3rd issue 50 cent inverts. The 50 cent denomination came in 51 varieties of which 29 are green backs. The 29 varieties could create 87 potential third issue 50 cent green back inverts (see charts). 45 of the 87 potential green invert varieties are known (24) or reported to exist (21) of which 8 are unique. The total population of third issue 50 cent green back inverts is estimated to be 57+ (32 Spinner, 25 Justice) ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 97 3rd issue - 50 CENTS - Spinner Friedberg No. Inverted Back Engraving Inverted Back Surcharges Total Back Inverted 1324-1330 Unknown Unknown Unknown 1331 3R50.19p - Reported 3R50.19l - Reported (4) 3R50.19h - Reported 1332 - ‘1’ & ‘a’ 3R50.19q - Unique 3R50.19m - 3 Known 3R50.19i - Reported 1333 - ‘1’ 3R50.19r - Reported 3R50.19n - Reported 3R50.19j - Reported 1334 - ‘a’ 3R50.19s - Reported 3R50.19o - Reported 3R50.19k - Reported 1335 3R50.20h - Reported 3R50.20d - 4 Known Unknown 1336 -’1’ & ‘a’ 3R50.20i - Reported 3R50.20e - Reported Unknown 1337 -’1’ 3R50.20j - Reported 3R50.20f - Unique Unknown 1338 - ‘a’ 3R50.20k - Reported 3R50.20g - 2 Known Unknown 1339 -Type 2 rev Unknown 3R50.21h - 2 Known 3R50.21l – 2 Known 1340 -’1’ & ‘a’ Unknown 3R50.21i - 2 Known Unknown 1341 -’1’ Unknown 3R50.21j Unknown 1342 -’a’ Unknown 3R50.21k - Unique Unknown 3rd issue - 50 CENTS - Justice Friedberg No. Inverted Back Engraving Inverted Back Surcharges Total Back Inverted 1343-1356 (red back) Unknown Unknown Unknown 1357 (red back) 3R50.6a - 10 Known Unknown Unknown 1358 Unknown Unknown Unknown 1359—’1’ & ‘a’ Unknown Unknown Unknown 1360—’1’ Unknown 3R50.13d - Reported Unknown 1361—’a’ Unknown Unknown Unknown 1362 3R50.10h - Reported 3R50.10d - 2 Known Unknown 1363—’1’ & ‘a’ Unknown 3R50.10e - Reported Unknown 1364—’1’ Unknown 3R50.10f - 4 Known Unknown 1365—’a’ Unknown 3R50.10g - 3 Known 3R50.10i - Reported 1366 Unknown 3R50.11d - 6 Known Unknown 1367—’1’ & ‘a’ Unknown 3R50.11e - Reported Unknown 1368—’1’ Unknown 3R50.11f - Reported Unknown 1369—’a’ Unknown 3R50.11g - Reported Unknown 1370 3R50.12h - 2-3 Known 3R50.12d - Unique 3R50.12l - unique 1371—’1’ & ‘a’ 3R50.12i - Reported 3R50.12e - Reported Unknown 1372—’1’ 3R50.12j - Reported 3R50.12f - Reported Unknown 1373—’a’ 3R50.12k - 2 Known 3R50.12g - 2 Known 3R50.12l - 4 Known 1373a—’S-2-6-4’ Unknown Unknown Unknown ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 98 a. Type 1 Inverted Back Engraving with and without Corner Surcharges. These types of error reverses are found on Justice and Spinner fractionals designated in the charts in red fonts. b. Type 1 Inverted Green Back Surcharges with and without Corner Surcharges. These types of error backs are found on Justice and Spinner fractionals designated in the charts in blue fonts. Note how the ‘A-2-6-5’ corner surcharges are inverted along with the large ’50.’ c. Type 1 Total Inverted Back (Surcharges and Design) with and without Corner Surcharges. These types of error backs are found on Justice and Spinner fractionals are designated in green fonts. d. Type 2 Back with Inverted Surcharges. These types of error reverses are found on Spinner fractionals only and designated in the charts in pink fonts. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 99 e. Type 2 Total Inverted Green Back (Surcharges and Design). These types of error reverses are found on Spinner fractionals only and designated in the violet fonts. There are no known examples of Spinner Type 2 backs with inverted back design. f. Type 1 Inverted Red Back Fiber Justice Fractional. While this inverted back engraving error is fairly common (Milt # 3R50.6a), with approximately ten known, it is the only red back Justice or Spinner displaying an inverted surcharge or printing error. This error is designated in the chart in brown fonts. 2. Misaligned Surcharges. The ‘50’ surcharges on these red and green backs were incorrectly aligned. On the first green back, the ‘A-2-6-5’ is also wildly misaligned. The two large bronze ‘FIFTY’s framing the Justice portrait are shifted so low, they are touching the bottom margin. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 100 3. Insufficient Inking. The left side of this Fiber Justice note is under inked, creating a situation where designating this with the proper Friedberg number is impossible. This could be either an Fr. 1370, with no sheet positon designator ‘1’ nor ‘a’, or an Fr. 1372. The under inking on the left side of the ‘FIFTY’, where the ‘1’ could have been, is unknown due to the lack of sufficient ink. 4. Excessive Inking and bronzing. This first error note on a Type 2 reverse is a spectacular example of too much ink. The second Type 1 Reverse has quite a lot of extra ink on the left side of the note and as a bonus there is a partial offset on the far-right margin. This 3rd example of this hand signed Justice has a large bronze spot, the result of some wayward glue and bronzing powder. A minor error but it makes a strong visual impact. 5. Offset Errors. Offset errors are so rare in fractionals that even a minor offset is significant. The left red ‘50’ oval of the note on the left is an interesting offset. The ‘CURR’ of ‘CURRENCY’ on the face of a Justice fractional (below Justice’s portrait on the bottom margin) is clearly visible, as well as the very bottom part of Justice’s robe. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 101 The next error in no way can be considered minor; it is one of the most spectacular offset errors in existence. Two red inverted ‘50’ ovals on a green back type 1 is breathtaking. Apparently, a type 1 red back sheet was laid on top of the green back with the red offset adhering to the note. It also proves that both red and green type 1 reverses were printed simultaneously, giving us valuable insight on the printing process. 6. Signature Errors. National Bank Notes aside, certain varieties of Fractionals are the only U.S. issued currency that are hand signed. Small, MPC and Large sized notes all have preprinted signatures. Fractionals with hand signed autographs can give rise to a unique set of errors. Shown below is a series of notes that are missing the autographs and/or missing the respective titles (Register/Treasurer). These are not printing errors, but rather errors of omission. The first example is an Fr. 1328/1329. Colby’s or Allison’s autograph is missing from the bottom left of this Spinner note. Fr. 1328 contains Colby’s’ autograph and Fr. 1329 contains Allison’s, so we cannot be certain of the exact Friedberg number. It throws the balance of the note off and certainly catches one’s eye. These are relatively common, as about a dozen have shown up at auction over the years. The fraternal twin of the Fr. 1328/29 is the following Fr. 1355 missing Colby’s autograph on the bottom left. Certainly, a perfect bookend to the note above. The next error note is another Fr. 1355, but this time the ‘Register’ and ‘Treasurer’ titles that are supposed to be under Spinner’s and Colby’s name have been omitted. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 102 The array of signature errors continues with this stunning Fr. 1328-1330 that is missing the autographs and the titles. Since it is missing the signatures, we cannot determine the Friedberg number. Fr. 1328 contains Colby and Spinner; Fr. 1329 has Allison and Spinner; Fr. 1330 contains Allison and New. 7. Inverted/Mirrored Sheet Plate Numbers. When plates of Type 1 reverses (used on Justice and Spinner notes) were engraved, it usually fell upon an apprentice to engrave a sheet plate number for accounting purposes. They were engraved inside the design portion of the plate in a place where the number would usually be trimmed when the sheet was cut into individual notes. But every so often, plate numbers survived the scissor, leading to what is colloquially called a ‘plate number note.’ They are always located in the corners. Things get a lot more interesting when the apprentice, either by purposeful intent or carelessness, engraved the sheet plate number inverted or in mirror image. On the Type 1 reverse, nine different numbers have been catalogued2. Rather than show nine different notes, a collage of examples was created with the different plate number errors combined onto a single note for maximum visual impact. Note how the design is different for each number, indicating there was more than one apprentice performing the work. Inverted Bronze/No Bronze ‘SPECIMEN’ Imprint on the Back of a Spinner Specimen. This trio of Spinner obverse specimens have third different backs. The first has an inverted ‘SPECIMEN’ imprint, the second example has ‘SPECIMEN’ printed correctly and the final note has no imprint at all. Two of the three are errors. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 103 Missing Bronze ‘SPECIMEN’ Imprint. A rare error – Specimen reverses almost always have the bronze ‘SPECIMEN’ imprint on the blank back. This example on the left does not; the red back specimen reverse on the right is the correct depiction. 8. Gutterfold Errors. Gutter folds on fractionals are very rare, especially on Spinner and Justice notes. They are much more common on small sized currency. The long, thin gutter fold nearly running the entire note is a very nice example of this elusive error. The Justice note displays a large gutter fold across the entire top margin of the note. I tried to be comprehensive, but one of the intriguing things about error notes is there is always a new discovery around the corner; something we’ve never seen before followed by… “Wow, that’s cool.” The fractional invert charts are waiting to be populated; changing the status category from ‘unknown’ to ‘1 known.’ In the end, it means Milt Friedberg’s exhaustive cataloguing in actuality is still a work in progress. If anyone in the community has an image of a fractional error not contained in this article, please email a scan to me (riconio@yahoo.com) and our editor Benny Bolin (smcbb@sbcglobal.net). We’d love to publish a follow-up with new discoveries. Thanks to Len Glazer at Heritage for his guidance and expertise. Thanks to Martin Gengerke and to Benny Bolin who shared images of a lot of rare errors, to Jerry Fochtman editor of the Fractional (FCCB) Newsletter, to Stacks Bowers and Heritage for use of their auction archives and to the currency community whose interest in all type of errors remains strong. Finally, thanks are to be my son David Melamed; his excellent editing skills have aided me tremendously. 1 A comprehensive article of 1st issue error postage notes and fractional dual denomination errors was presented in a 2016 Fractional (FCCB) newsletter. 2 For more information on inverted and mirrored plate number fractional notes, extensive research was presented in Paper Money Jan/Feb 2003 (Vol. XLII, No.1 – Whole 223) and Jan/Feb 2006 (Vol. XLV, No. 1 – Whole 241) ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 104 GRANT SHERMAN REVERSE WITH 90° ROTATED PLATE #1 by Rick Melamed The following note was discovered after Part 1 of the 3rd issue fractional errors (3¢ - 15¢) was published in Paper Money. The Wide Margin Grant Sherman Fractional Specimen Reverse (Fr. 1272SP-WM-REV) is a fascinating discovery with a logical explanation. On the top margin is a 90° rotated sheet plate #1. Any plate number on a specimen is rare, but one that is rotated in this manner is truly noteworthy.  Here is the same Grant Sherman Specimen that has the sheet plate number positioned correctly. How the sheet was cut determined the position of the sheet plate number. This specimen plate number is not an engraving error, however. Grant Sherman fractionals were produced in sheets of 8 notes. They were laid out 5 horizontal and 3 vertical. The note shown was in the vertical position; so when the note was cut, the sheet plate number “1” was captured in a 90° rotation (the “1” has been enlarged). See the grid to the left to visualize the layout. A stunning effect for sure. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 105 U n c o u p l e d : Paper Money’s Odd Couple Joseph E. Boling Fred Schwan World War I (part 3) Continuing where we left off, I promised a trip to the Straits Settlements. This was a British crown colony principally on the Malay Peninsula. Just as in the following war, from 1914-18 metals were diverted to arms and ammunition. Small change notes were needed to replace coins, and the only ready solution was to print them locally. Both 10 cent and 25-cent notes were created and counterfeited, but I do not yet have a counterfeit of the 25c piece. Both denominations were printed by the Survey Dept., Federated Malay States (without imprint). These are crude by any standard. The following descriptions pertain to the 10¢ note. They are 100% letterpress in three colors on the face and one color on the back (see figures 1 and 2 below). See Boling page 112 Bond-related Throw-aways Envelope stuffers were used by the Treasury Department since at least the beginning of the sale of Series E defense bonds, and probably from the very beginning of the sale of baby bonds in 1935. They were sent with bonds, interest checks, and correspondence to encourage bond sales or inform recipients about some aspect of the system. I avidly collect savings bond envelope stuffers as part of my bond collections. I love collecting things that most collectors have never heard of, or at least would never think of collecting. In the case of bond envelope stuffers, we have sort of a compound obscure situation. Few collectors even think of the bonds as numismatic items. The stuffers are an unusual subset of the bonds. Another level of obscurity is to create catalog listings of unusual items. Joe and I have made virtual careers of that! Indeed, the images shown here were taken from the drafts of two different catalogs of United States savings bonds under preparation. Stuffers are throw away items—items that served no purpose after the initial one. Throw away items are almost always, well, thrown away. They constitute an interesting class of collectibles I love. Even I was slow to start collecting the stuffers. In the late 1990s I had become very serious about collecting war bonds of World War II. Joe and I had included pioneering listings in World War II Remembered. I had some sales literature and other materials in my collection, but I did not have any envelope stuffers. None. It was time to go to Memphis for the big show. My bank account was empty. There was no way that I should be going to Memphis. I had reserved a bourse table some months before, so I felt that I should go and, of course, I WANTED to go. So I rationalized that I would sell, sell, sell and not buy anything. Nothing. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 106 You know where this is going. As I set up my table, I noticed an interesting looking three-ring binder on another back-up table. The now-forgotten table-holder handed it to me. The album contained a quite remarkable collection of 33 different war bond stuffers. The seller did not have any information on the group. To me it looked like one bond buyer had saved the stuffers at the time that the bonds were purchased. The bonds were ultimately cashed, but the stuffers kept. I loved the group immediately, and the vow of poverty went out the window. Of course, it was not all that expensive, and I am grateful that I went to the show. Treasury still sends stuffers today. Probably they are sent with government checks, but there is now only one way to get them with bonds. Paper bonds were discontinued in 2012 with one small exception. You can still request that your tax refund be issued in Series I bonds and receive paper bonds! Not many savers do this today. A few collectors go through the process in order to get these last remnants of the paper bond system. Unfortunately, even when you request the bond refunds, you sometimes (often) do not receive them! In two of the years that I applied for them, I did not get them because of some bureaucratic mix up. It being that time of the year right now, I am preparing to try again. Since obtaining the collection of 33, I have found only one stuffer from the war period to add! It is the last image shown in the groups of WWII pieces. (“The Winnah!”) Unfortunately (and surprisingly), these stuffers do not have any marginal information to help identify the dates of issue and other details. Overall, these are scarce if not rare. A full set of these from World War II should be about 46 different pieces. However, it is possible that more or fewer were created and used. I believe that few of these stuffers have ever been illustrated in any numismatic journal, and I am pleased to share them with you. I have supplemented the images with additional stuffers from the 2000s. I will of course be interested in seeing (and hopefully obtaining) any stuffers that you might have! fredschwan@yahoo.com. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 107 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 108 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 109 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 110 111 Envelope stuffers recent issues ca.2000-2017 Boling Continued: The yellow tint on the face has repeating lines of “Straits Settlements Ten Cents” (figure 3). The yellow print is not always legible on genuine notes. That proved to be the hardest feature for the counterfeiters to duplicate— possibly because they could not read it on the notes in hand. The signature on the initial issues (1917-18) is of the acting treasurer (abbreviated Ag. Treasurer). I have not yet seen a counterfeit of that variety, although I do have a counterfeit dated during the acting treasurer’s tenure with the later (wrong) signature. Genuine paper is thick and stiff and has a screen pattern that may run vertically or horizontally (figure 4, horizontally in this note). Don’t look at the note interior—those lines are the tint described above. If the screen pattern is visible, it will be in the wide margins. There may be a manufacturer’s watermark in some genuine notes—I have not yet observed one. The date is buried in the ornament in the center of the back. Many dates were used—the note in figure 2 is dated 15-1-20 in three circles at left, right, and bottom of that ornament. With the year date on the centerline of the design, it is often illegible due to circulation damage. The counterfeits are also all letterpress. I have three, each apparently from a different gang (based on differences among them, figures 5-13—each group of three shows face-back-watermark of one of the counterfeits). Two are on paper with a screen pattern similar to the genuine notes, but with parts of manufacturer’s watermarks visible (...lton /... e Ledg... on one (figure 7), part of a curlicue design on the other (figure 10)). The third has no screen or watermark (figure 13), and is the one dated during the acting treasurer’s term, but with the treasurer’s signature. The yellow face text on all three counterfeits is gibberish (figure 14 is an example). Figures 15-16 show a low-grade example of the 25¢ note, with many repairs and restorations. I don’t have a counterfeit to show you. The ones I have seen, however, have been modern and very well done, so I recommend against buying raw examples of this note. Not much text this month, but lots of real estate devoted to photos, so I will stop here. Next issue we will look at two British government counterfeits of notes of the Central Powers. Figure 7 Figure 5 above and Figure 6 below ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 112 Figure 8 Figure 11 Figure 9 Figure 12 Figure 10 Figure 13 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 113 Figure 14 Figure 15 Figure 16 Calling all FEST’ers Make plans now to join us at MPC Fest 20 May 3-6 Holiday Inn Express Port Clinton-Catawba Island Hotel—419-349-3492 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 114 Jason W. Bradford Launches Legacy Currency Grading Jason W. Bradford and his team of experts launched Legacy Currency Grading (www.LegacyGrading.com), a new paper money grading and authentication service, on February 20, 2019. Legacy Currency Grading will offer a warranty for all banknotes certified by its graders. "Legacy Currency Grading will strive to improve the consistency and accuracy in grading for which my team has always been known. We will focus our primary efforts on excellent customer service and turnaround times, and we will be expanding our team," stated Bradford, the founding and former President of PCGS Currency. "We’ve added both operational staff and additional grading experts to increase our capacity and help dramatically reduce turnaround times. The guarantee for all Legacy graded notes will be as strong as ever, with all notes guaranteed for grade and authenticity by our lifetime grading warranty," explained Bradford. "In addition, to ensure the continuity and stabilization of the market, Legacy Currency Grading will continue to honor the same grading guarantee for all notes that K3B, Inc. certified from February 4, 2009 until January 30, 2019, under the license for the PCGS Currency brand name from Collectors Universe, Inc. The Legacy Currency Grading population report will also include all notes graded under that same license," he added. In order to make the transition as smooth as possible for all collectors and dealers, Legacy Currency Grading will be offering a discounted "crossover" service for all notes graded under the previous brand name. "For a limited time, we will be offering a special rate for our clients to reholder their notes into Legacy Currency Grading holders," said Bradford. "Details will be announced in the near future regarding the procedures for submitting notes, including the ‘crossover’ service." Legacy Currency Grading is also launching a new holder design featuring a fully sealed holder with the grading insert inside the tamper-proof Mylar plastic. "This holder design is the result of several years of market research. The Legacy Currency Grading holder will be made of the same acid-free Mylar material used by generations of collectors and dealers. We are extremely excited about this new holder because I believe that this is the safest material for the long term storage of any banknote, and we won’t compromise by using anything but the highest archival quality materials for our holders," stated Bradford. Existing grading submissions that were previously submitted to K3B, Inc. now will be graded by Legacy Currency Grading. "We will be contacting all clients in the immediate future regarding the details of their submissions and the estimated time frame for completion. However, if any client prefers that their notes be returned ungraded and their fees refunded, we will, of course, honor that request," said Bradford. "In addition, all current memberships from the old service will be honored and extended in the new Legacy Membership program." Bradford is a pioneer in the paper money grading profession, personally examining, authenticating and grading more than a million banknotes since 2005. He will continue to lead the new company as President and CEO. "It is extremely important for me to focus my energies primarily on grading and training our other graders. The day-to-day operations of the company and customer service will be overseen by our management team, which will free me and the other graders to focus on doing what we do best — grading banknotes. We are optimistic and excited about the future of the currency collecting hobby and the marketplace. Legacy Currency Grading will provide the best and most efficient customer service, and the most accurate and consistent grading process possible," Bradford pledged. Information regarding submitting banknotes for grading and authentication to Legacy Currency Grading will available soon at www.LegacyGrading.com, or by calling the Legacy office at 309-222-8200, or by email at info@LegacyGrading.com. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 115 A modern reproduction of a lithograph by Nathaniel Currier. image: M. D. Ashmore Origins of the Train Vignette on Confederate Type-39 Treasury Notes by Marvin D. Ashmore & Michael McNeil Collectors of Confederate Treasury notes are familiar with the $100 Type-39 design. A production of the Richmond, Virginia firm of Hoyer & Ludwig, it is a decent quality lithograph of an interest-bearing note of the Fourth Series approved by the Confederate Congress on April 17th, 1862. The note bore interest at two cents per day which works out to 7.30% per year, hence the nickname of “seven-thirty” for this and the Type-41 notes. Criswell gave minor plate variations of the T-39 a new Type number of T-40 in an effort to create a broader market for these notes among collectors; the variations are minute with no change in the design or vignettes. These notes were hand-dated on the front to establish the time from which these notes would bear interest. Treasury Secretary Memminger would also later direct that these notes would be dated on the back at their time of issue by depositaries, quartermasters, commissaries, and agents, an effort to further limit government liability for interest payments. Although Memminger’s order only required a date of issue, issuers also wrote their names, titles, rank, and occasionally their locations and military units. Fascination with these more embellished endorsements gave rise to the dedicated group known as “The Trainmen,” founded by W. Crutchfield Williams, II in 1998 and now having many active members. Three members of this group have written many of the recent books on Confederate financial instruments, their counterfeits, and their endorsements.1,2,3,4 It is fitting, therefore, that we might come to understand the origins of the train vignette on the Type-39 Treasury note. The First Series of Confederate Treasury notes were printed from very high quality intaglio plates in two colors by the National Bank Note Company and the American Bank Note Company in New York, but those firms were quickly shut down in their production of these notes when Federal agents seized the printing plates. Secretary Memminger had to make use of scarce Southern resources for the printing of Treasury notes and one of the sources to which he turned was the Richmond firm of Hoyer & Ludwig. This firm was founded by German lithographers and was at the time active in lithographic printing of bonds. They produced virtually all of the Second Series treasury notes, with issues commencing on July 29th, 1861. Their first essay in the Third Series was the lithographed $20 Type-17, first issued on October 22nd, 1861 with a very handsome green overprint. By the end of the Third Series it was clear to President Jefferson Davis that Richmond was at risk and he directed the several printing contractors to move their operations to Columbia, South Carolina. Hoyer & Ludwig refused to make this move, and the $100 Type- 39 notes of the Fourth Series, first issued on May 5th, 1862, would be nearly their last major contract. Their last design was the $10 Type-46 note issued on June 2nd, 1862, although they continued as Richmond printers of the $1 and $2 notes engraved by Keatinge & Ball until mid-1864. Figure 1. Type-39 Treasury note with the imprint of Hoyer & Ludwig dated May 8th, 1862. image: HA.com ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 116 A proof of The Bank of Port Jarvis, Haxby NY-2250 G14aP with the vignette at center based on Nathaniel Currier’s lithograph but now including telegraph poles. The vignette at left is Benjamin Loder, the President of the New York & Erie Railroad from 1845 to 1853. image: HA.com Vignettes of this era were used for extended times and by different banks in many locations. The vignette of the train on the Type-39 note is no exception. It first appears as an undated color lithograph printed by Nathaniel Currier sometime between 1838 and 1856.7 There are notable differences: a bridge replaces the ocean scene and, most importantly, there are no telegraph poles at the right. Scott Currier of the Currier & Ives Foundation estimates that the 152 Nassau Street address on the original imprint was used on lithographs produced between 1838 and 1844.8 Another internet source of Currier & Ives lithographs identified the Currier lithograph as the Conningham catalog No. 1790, the scene as the New York & Erie Railroad, and mentioned The Bank of Port Jervis.9 A search of the Heritage database quickly produced an image of a $5 Port Jervis banknote with a vignette obviously based on the Currier lithograph, but this scene includes telegraph poles, suggesting it was a later derivation of the Currier lithograph. The banknote bears the imprint of Bald, Cousland & Company, New York & Philadelphia, who were acquired in 1858 by the American Bank Note Company of New York (the imprint also bears the patent date of June 2nd, 1857, and the reddish tint is typical of notes produced by the ABNC). The vignette at left on the Port Jervis banknote is Benjamin Loder, President of the New York & Erie Railroad from 1845 to 1853. The Bank of Port Jervis operated legitimately from 1853 to 1865, after which it operated as a National bank.10 The New York & Erie Railroad arrived in Port Jervis in 1847 and telegraph arrived in 1851. The 4-4-0 class and design of the steam engine strongly resembles a drawing of the “Orange,” an engine named for Orange County, New York. The Orange was built by William Norris and delivered to the New York & Erie Railroad in 1841. Nearly all details of the Orange match the Currier lithograph and the Port Jervis banknote vignette except the cab and the location of the safety valve. With this evidence we can be reasonably certain that the train vignette on the Type-39 Confederate Treasury note is based on a New York railway with a New York steam engine. Haxby shows images of these New York banknotes with the same train vignette: Bank of Canandaigua, 1854-1862 Haxby NY-530 G8 Bank of Newburgh, 1811-1864 Haxby NY-1985 G140 Bank of Port Jervis, 1853-1865 Haxby NY-2250 G14a (no image) Bank of Sing Sing, 1853-1865 Haxby NY-2580 G12a, proof, (1850s) The earliest example of the Port Jervis train vignette was found on an 1852 bond of The Junction Rail Road Company in Sandusky, Ohio, with an imprint of Snyder & Black, 87 Fulton, N.Y. The significant differences between the train vignette on the Confederate Treasury note and the Port Jervis banknote are the replacement of the bridge with an ocean scene and the perspective of the telegraph poles, where the poles are more compressed to the right in the New York banknote vignettes. The story started to emerge when the first known example with a train vignette identical to the Type-40 Confederate Treasury Benjamin Loder, President of the New York & Erie Railroad, 1845-18535 The “Orange” image: Richard Palmer6 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 117 A train vignette from a sample proof sheet published by W. L. Ormsby in 1852, with changes made by Ormsby identical to those found on Type-40 Confederate Treasury notes. image: Ashmore note was found on a $2 note dated 1854 and issued by the Crawfordsville, Logansport Northern Indiana R. R. Co., with an imprint of W. L. Ormsby, an engraver and New York printer of banknotes. (The Type-40 vignette differs from the Type-39 with more diffuse steam escaping from the boiler safety valve and a lower configuration to the tree at the far upper left.) Ormsby is the key to unlocking the origin of the Confederate train vignette. He wrote a book, published in London in 1852 by Willoughby & Co., with the improbably-long title of Description of the Present System of Bank Note Engraving, Showing Its Tendency to Facilitate Counterfeiting: To Which Is Added a New Method of Constructing Bank Notes to Prevent Forgery. Ormsby illustrates the Type-40 Confederate Treasury note vignette in this book, and on page 96, where he describes a sample proof sheet, Ormsby writes, “The vignette in the centre of the Bill, was copied from a Bank Note; the sea view, and the Steamer, being introduced instead of a Bridge.” Ormsby is likely the source of the Confederate train vignette; see the illustration of his sample proof, Rail Road Bank. The use in the Confederacy of the vignette based on the Currier lithograph extended, among other examples, to the Type-44 bond (and it’s B-C53 counterfeit)11 and to private railroads like the Virginia Central and the New Orleans, Jackson, & Great Northern. The train vignette on Hoyer & Ludwig’s $100 Treasury note is an excellent example of the resourcefulness of southern firms; they designed financial instruments with northern vignettes when they lacked the resources to create their own. Notes: 1. Fricke, Pierre. Collecting Confederate Paper Money, Field Edition 2014, Pierre Fricke, Sudbury, MA, 2014, 574pp. 2. Tremmel, George B. Counterfeit Confederate Currency, Whitman Publishing, Atlanta, GA, 2007, 331pp. 3. McNeil, Michael. Confederate Quartermasters, Commissaries, and Agents, Pierre Fricke, Sudbury, MA, 2016, 908pp. 4. Tremmel, George B., Fricke, Pierre, Davis, John Martin, Jr. Confederate Treasury Certificates, Pierre Fricke, Sudbury, MA, 2010, 511pp. 5. Image: By Edward Harold Mott - Between the Ocean and the Lakes: The Story of Erie" (1899). p. 86, Public Domain, https://commons.wikimedia.org/w/index.php?curid=31141394 6 Image: Richard Palmer, http://www.alleganyhistory.org/culture/transportation/railroads/erie- railroad/3053-orange-famous-early-locomotive-of-the-new-york-erie- railroad, website accessed 22 November 2018. 7. A standard reference of Currier & Ives prints by Frederic A. Conningham lists this lithograph as 1790, N. Currier, undated. An image of an original print bears the imprint of N. Currier, 152 Nassau St. cor. of Spruce, N.Y. Conningham notes that Currier occupied this address between 1838 and 1856. 8. Scott Currier, Currier & Ives Foundation, website: currierandives.com. “The ‘corner of Spruce Street’ address indicates it’s an early print from the 152 Nassau Street address, as that attribution was dropped in the early/mid 1840s. I would estimate the print in the 1838 to 1844 era.” 9. https://www.coxrail.com/currier/index.asp, website accessed 22 November 2018. 10. Haxby James A., Obsolete Bank Notes, New York, 1782-1866, Krause Publications, PDF, 2009, p. 1748 (p. 353 of digital edition). 11. Ball, Douglas B., Simmons, Henry F., Jr., with Self, Richard and Desabaye, James R. Comprehensive Catalog and History of Confederate Bonds, Second Edition, BNR Press, 2015, 304pp. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 118 From the Gilded Road: John Benjamin Burton and his Civil War Currency for W. E. Morgan, Clerk of Union County, El Dorado, Arkansas by Charles Derby Near the Ouachita River in the Timberlands region of south-central Arkansas is the town of El Dorado.1-4 It became the county seat of Union County in 1843, when county residents persuaded their commissioners to move the seat from Scarborough’s Landing, primarily because El Dorado was closer to the major cotton farms. Matthew Rainey sold a ridge of land to the county, and commissioners adopted John Hampton’s suggested name for the new county seat, Spanish for “The Gilded Road,” in anticipation of prosperity. The original town was laid out around a wooded area with a duck pond, and as El Dorado prospered, the central town was expanded in 1859. By 1860, Union County had become an important farming community with more than 12,000 residents, over half of them slaves, growing and selling not only cotton but also corn, peas, bean, and sweet potatoes. The growth and relative prosperity did not last, with the coming civil war. Arkansas was among the last of states to secede from the Union, on May 6, 1861, three months after the Confederacy was formed, and Arkansas joined the Confederacy 12 days later. Even before the war began, currency was hard to come by in Arkansas, after the state lost trust in its banks and the state legislature passed a law in 1846 that prohibited the incorporation of banks in Arkansas.1 With the onset of the war, specie was almost non-existent and the usual sources of paper money, banks, were outlawed. But there was still a need for currency, so local communities often offered their own notes and scrip,5 sometimes by “exchanges” of local merchants and in other cases by city or county governments. What did El Dorado and Union County do? From existing notes and scrip, we know of two solutions by them. One was late in the war: notes dated March 1865 by the Union County treasurer that are “Receivable in Payment of all county Dues” (Fig. 1). A second set of notes and scrip exists: printed by “The Bulletin Office” for W. E. Morgan, and though undated, are thought to be from 1860-1864.5 A 10 cent scrip from this series is shown in Figure 2. This article tells the story of these El Dorado notes and scrip. Figure 1. $10 note of March 1865 from the Treasurer of Union County, El Dorado, Arkansas. Courtesy of Heritage Auctions. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 119 The W. E. Morgan–El Dorado Notes and Scrip These notes and scrip were printed for W. E. Morgan, who promised to pay in specific currencies when his money was presented at his office. Some but not all of the El Dorado notes and scrip bear the imprint, “Printed at the “Bulletin” Office El Dorado Ark.,” referring to the job print office of the newspaper, The El Dorado Bulletin, owned and edited by John Benjamin Burton. Started in 1860, The Bulletin was a weekly newspaper published each Thursday. The run of The Bulletin was short, being discontinued near the beginning of the civil war when Burton joined the military in May 1861. However, after Burton left, a printer named J. T. Osborn used the former Bulletin office during and briefly after the war to print a newspaper called The Post Boy.6 Rothert 5 lists ten Morgan–El Dorado notes and scrip: R165-1 to 5 and R165-8 to 12 (the reason for the omission of 6 and 7 is not clear.) I have seen one additional 10 cent scrip not listed in Rothert. I list these 11 notes and scrip in Table 1, with their distinguishing features. Based on these characteristics, they appear to constitute two series, each series with denominations of 10 cents, 25 cents, 50 cents, $1, and $2 (Figs. 2-4). I list R165-1 to -5 as series 2, since I surmise that they were printed after the series 1 of R-165-8 to -12 plus R165-UNL, as explained below. Series 2 currency are all very similar, with the only difference besides denomination being a period after the denomination for the $1 and $2 notes but not the fractional. Series 1 currency, on the other hand, differ in a range of features, detailed in Table 1, including the following: vignettes (none used for series 2, three used for series 1 – eagle and flag, carte de visite, and slaves in the field); fonts for “W. E. Morgan;” presence or not of an imprint; the type of currency in which the notes and scrip were payable; font and presence or not of scroll for the serial number; and other features. Despite the fact that only two of the scrip, both series 1, have an imprint (Printed at the “Bulletin” Office El Dorado Ark.), the series 1 and 2 notes and scrip have so many similarities that they must have all been printed at that print job office. Exactly when these notes were printed remains uncertain. All were payable in Arkansas War Bonds, Treasury notes, or other current funds, and series 2 notes were also payable in Confederate currency. Arkansas War Bonds were authorized by an Act of May 24, 1861. Arkansas Treasury Warrants were authorized by Acts of November 14 and 18, 1861. The first, second, and third series of Confederate notes were authorized by Acts of March 9th, March 16th, and August 19th, 1861, respectively. Since some of these dates are after Burton’s May departure from The Bulletin and El Dorado to join the army and Osborn took over the print office, an argument can be made that some were printed later in 1861, possibly even in 1862, by Osborn. I hypothesize that Burton designed all of the Morgan currency, produced the plates, and printed series 1, since some bear the "Bulletin" imprint. Then, after Burton’s departure, Osborn produced the series 2 currency from his print office, without the imprint of the now defunct Bulletin. Figure 2. Ten cent scrip printed by The Bulletin Office of El Dorado, Arkansas, for W. E. Morgan (R165-8). ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 120 Figure 3. El Dorado scrip, series 1. From Heritage Auctions and Rothert.5 Figure 4. El Dorado scrip, series 2. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 121 Figure 5. Excerpts from the May 9, 1861, issue of The El Dorado Bulletin, the final issue. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 122 John Benjamin Burton John Benjamin Burton lived an expansive life on his terms.9-12 He was willing to make big decisions, take risks, and work for what he thought was right. Burton was born October 22, 1836, in Drummondville (later Accomac), Accomack County, on Virginia’s eastern shore. He was the youngest of seven children of John Bayly Burton (1773-1836) and Sarah Poulson Bagwell (1790-1840), whose deaths left young John orphaned by the age of four years old and without financial security. John, who was called “Ben” as a child because his father was John, was raised by his older sisters, friends, and relatives, and quickly became self- reliant. He learned life at sea, as did most on Virginia’s eastern shore and as his father was a sea captain. At the age of ten, he became assistant to the county clerk at Accomack Court House, while also attending school. With the help of friend and relative Percy Duffield, Burton attended Princeton University13 and graduated with honors in Greek, Latin, and French.12 Then, rather than choosing to return to Accomac, the twenty-year-old Burton, “full of ambition and hope and a firm belief in honesty and goodness of mankind,”12 chose adventure and moved west. He landed in Arkansas n 1856, which was “full of a rough element from the Eastern States – where a man, to be a man, must be ready to fight like the rest if he wanted the respect of the community where he lived.”12 Burton landed in El Dorado to become editor of the local newspaper,6 The El Dorado Union, which was established in 1846 by William H. Hines.7 In August 1859, Burton started a new paper, The El Dorado Times, in partnership with Matthew Milton Barron.7 According to Allstopp,7 “the editors complained in the first issue that they were unable to obtain the kind of type and paper ordered,” but still, “the newspaper was a credible one.” But within a few months, Barron left the partnership and El Dorado, and in 1860, Burton was sole editor of a new newspaper, The El Dorado Bulletin. Four years as newspaper editor in El Dorado gave Burton a central place in the El Dorado community, though it did not make him rich; in 1860 he reported only $1,100 in personal estate and no real estate.11 The May 9, 1861 edition of The El Dorado Bulletin was an important one. That was the day that Arkansas seceded from the Union and joined the Confederacy. The headline and key select articles in that issue are shown in Figure 5. Notice that the graphic on this issue is the same eagle and flag vignette that Burton used on the W. E. Morgan series 1 currency. In this issue of The Bulletin, Burton wrote that this was his last, as he was joining the fight for the Arkansan and Southern cause, and he called for others to join him: “Valedictory. My editorial connection with the Bulletin has ceased, and the time has arrived for me to say, farewell to its readers. Duty points to another field of action, and I cheerfully obey the summons….Let us bid defiance to the black flag of the North, and bid what is sacred, good and noble, that it will never wave in triumph over us….We the Sentinals who will be ‘off to the wars’ when you read this, will endeavor to do our duty as soldiers. We will add lustre to old Union county, or our bones will lie bleaching on the plain or buried in the lap of mother earth. We expect you to follow us. I am done – farewell.” Series ID Denomination Vignette W. E. Morgan Imprint Payable in "No." "Five" case Period after Demonination at Horizontal Line Denomination at top Vertical Left End at Denomination 1 R165‐8 10 cents Carte de visite Ornate Block "Bulletin" "Arkansas War Bond, Treasury Notes" no scroll Upper Second only No Short (to indent) 1 R165‐UNL 10 cents Eagle & Flag Ornate Block none "Arkansas War Bond, Treasury Notes" scroll Upper First only No Short (to indent) 1 R165‐9 25 cents Eagle & Flag Ornate Block "Bulletin" "Arkansas War Bond, Treasury Notes" scroll Upper Second only No Long (to margins) 1 R165‐10 50 cents Eagle & Flag Old English none "Arkansas War Bond, Treasury Notes" scroll Upper First and Second No Medium (near margins) 1 R165‐11 $1 Eagle & Flag Old English none "Arkansas War Bond, Treasury Notes, no scroll Upper Second only Yes Long (to margins) or other currrent funds" 1 R16512 $2 Slaves in field Old English none "Arkansas War Bond, Treasury Notes, scroll Lower Second only No Medium (near margins) or other currrent funds" 2 R165‐1 10 cents none Plain Block none "Arkansas War Bond, Treasury Notes, scroll Upper none No none Confederate, or current funds" 2 R165‐2 25 cents none Plain Block none "Arkansas War Bond, Treasury Notes, scroll Upper none No none Confederate, or current funds" 2 R165‐3 50 cents none Plain Block none "Arkansas War Bond, Treasury Notes, scroll Upper none No none Confederate, or current funds" 2 R165‐4 $1 none Plain Block none "Arkansas War Bond, Treasury Notes, scroll Upper First and Second No none Confederate, or current funds" 2 R165‐5 $2 none Plain Block none "Arkansas War Bond, Treasury Notes, scroll Upper First and Second No none Confederate, or current funds" Table 1. Distinctive Features of Notes from W. E. Morgan, El Dorado, Arkansas Figure 6. Major John Benjamin Burton. This carte-de-visite was made by William Brown at Brown’s Gallery, Main Street, Little Rock, between 1863 & 1865. From 8. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 123 Burton joined the Arkansas militia in May 1861, as private. But given his advanced education, literacy, organizational skills, and energy, he was quickly promoted and played important roles in the Eastern and Western theaters for the rest of the war 13-19 (Fig. 6). He first joined the 1st Arkansas Volunteer Infantry Regiment, Company A, which was the Union County company of volunteers raised, equipped, and commanded by Captain (later Colonel) Asa Stokely Morgan. Company A was one of ten county-based companies of volunteers organized into a regiment in Little Rock by Colonel Thompson Breckenridge Flournoy, and offering their services to the Confederacy. James Fleming Fagan (Fig. 7), captain of the Saline County Volunteers, was elected to lead the regiment. They were shipped off to Virginia, and Burton was promoted to captain and quartermaster of his regiment in June 1861. The regiment was present at the First Battle of Manassas on July 21, 1861, but its men did not engage in the fighting and could only watch. Burton served under Colonel (later Brig. Gen.) John George Walker, in the division of Brig. Gen. Theophilus Hunter Holmes (Fig. 7). On January 21, 1862, Burton was promoted to Major and Quartermaster of Walker’s brigade. By March, Holmes ordered Burton to leave the 1st Arkansas Volunteers and transfer to the Trans-Mississippi Department to serve in the Arkansas District, Little Rock, as Assistant Quartermaster (Fig. 8). There appears to have been a delay in his transfer, but he was fulfilling his duties in Little Rock by August 1862. In October, Holmes promoted Burton to Chief of Clothing Bureau of the Trans-Mississippi Department in Little Rock. By June 1, 1863, he was Purchasing Quartermaster and Inspector of the Quartermaster for the District of Arkansas of the Trans-Mississippi District. He served as Chief Quartermaster of the District of Arkansas through the end of war, under Gen. Holmes and Gen. Edmund Kirby Smith. For a time, he simultaneously served the stand-in role as Chief Engineer of the Arkansas district.20 Henry Merrell called Burton “from first to last one of the very best executive and administrative men in the Army.”20 As Union forces squeezed the Confederacy and occupied Arkansas, by March 1865, Burton and his district were relocated to Shreveport. But soon after, Shreveport itself fell and the entire Confederacy capitulated. Burton surrendered, and in June 1865 was paroled (Fig. 8). After the war, Burton moved to New Orleans, set up an office, and became purchasing agent for Imperial Army of Mexico, which upon its disbandment in 1867 Burton returned to Arkansas.8 It was said of Burton, “He fought bravely for the ‘Lost Cause,’ but when lost was more ready than most rebels to shake hands ‘across the Chasm.’”12 He purchased land in Lewisville, Lafayette County, Arkansas, as an early settler to that area. He had a successful career as a lawyer, having offices in both Lewisville and Texarkana, Arkansas8 and working throughout southern Arkansas (Fig. 9). As was his nature, Burton gave back to his community, including serving as his district’s representative in the Arkansas House (1874) and Senate (1874-1876). On August 6, 1873, at the age of 36, he married Cora Holmes Mack, 18 years his junior (born 1854 in Camden, Arkansas), and they soon began raising a close-knit and striking family. Between 1874 and 1884, they had six children, which John called “my jewels”:12 John Bayly (1874-1962), Percy Duffield (1876-1958, named after his benefactor in Accomac), Ashby Prior (1878-1963), Ralph Mack (1879-1965), Louise (1882-1944), and Cleveland C. (1884-1950). But alas, tragedy struck: at only 47 years old, still in the prime of his life, Burton developed cancer. He traveled to Brooklyn, New York, for treatment, but died there of pneumonia on December 18, 1883. His body was returned home, and he was buried in State Line Cemetery in Texarkana, honored with an impressive memorial statue (Fig. 10). Cora honored Figure 7. Burton’s commanding officers. Left to Right. Col. (later Brig. Gen) James Fleming Fagan. Brig. Gen. John George Walker. Lt. Gen. Theophilus Hunter Holmes. Courtesy of U.S. War Records. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 124 his life and memory, stayed in Texarkana, and raised their children, including son Cleveland, born three months after John died (Fig. 11). Cora died in 1927 in Lewisville and is buried next to John. John Burton is remembered and memorialized for his Confederate service by having a Sons of Confederate Veterans camp named after him, the Arkansas Sons of Confederate Veterans Major John B. Burton Camp #1664, Texarkana.22 Figure 8. Top: letter from Major Burton as Chief of the Clothing Bureau of the Trans-Mississippi Department, to Captain Cabell, on September 1862, regarding procurement of clothes for troops. Bottom: June 1865, parole document for Major Burton, Shreveport, Louisiana. Courtesy of U.S. Civil War Records, Fold3.com. Figure 9. John Benjamin Butler, attorney in Lewisville. From 8 and the Washington Telegraph issue of May 8, 1872. Figure 10. John Benjamin Burton’s grave, Texarkana, Arkansas. From 8. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 125 J. T. Osborn J. T. Osborn was born in Georgia ca. 1837. By age 23, he was a printer in La Fayette, Chambers County, Alabama, living in the house of James Jones McLemore and printing for McLemore’s newspapers.10 McLemore (1831-1882), from an influential family, was a planter and editor of the Opposition Paper in 1860, The Southern Sentinel in 1861, and The Chambers Tribune in 1863.6,7,10, Osborn must have left McLemore and Alabama by 1861 to take over Burton’s job print office, where he worked during and after the war at least through 1865.6,7 By 1870, Osborn was printing in Camden, Ouachita County, Arkansas, married to Sarah (Sarah Jane Wells, 1843-1929, born in Old Choctaw Corner, near Thomasville, Alabama, grew up and died in Clarke County, Alabama) and with two young daughters (Alice Irene born in 1864, and Emma born in 1866).10 The ultimate fate of Osborn is uncertain to me, but I believe he is the 43 year old “J. T. Osborne” from Georgia who died on October 4 in the 1878 yellow fever epidemic in New Orleans.23 Washington E. Morgan The El Dorado currency of interest were printed for and signed by W. E. Morgan. He was Washington E. Morgan, born in 1811 in South Carolina.10,11 He married Sarah Anah Elizabeth Stevens Morgan (born Feb 26, 1826) in Troup County, Georgia, in 1844 when he was 33 years old and Sarah 17 years old. Morgan purchased 160 acres of land in El Dorado in November of 1848,24 where he and Sarah built their home. They had several children, two who lived into adulthood: Bernice (Berry) W. Morgan Graham (1853-1883), and William Wright Morgan (1856- 1921). W. E. Morgan was a planter, starting off modestly but in time becoming quite successful. In 1850, he owned only $500 in real estate, but by 1860, he owned $3,500 in real estate, $6,000 in personal estate, and six slaves.11 Morgan joined in the war effort, but he was 50 years old when it began, so rather than serving in the regular army, he joined the El Dorado Township Home Guard, beginning July 1861.25 Sarah lived a long life, dying in 1891 in El Dorado; she is buried in Presbyterian Cemetery. The fate of Washington is less clear, but he probably died between 1864 and 1870. Morgan Issued the El Dorado Currency as Clerk of Union County Why was W. E. Morgan’s name on these El Dorado currency? Some merchants issued currency, but rarely did planters. The notes and scrip bear the text, “W. E. Morgan will pay at his Office El Dorado Arkansas,” but as a planter, Morgan would not have needed an office to redeem the currency. The answer lies in his civil service: Morgan was clerk of Union County in 1854-1856 and 1860-1864.25 Thus, when these notes and scrip were printed, Morgan was responsible for collecting county taxes, debts, and such. Thus, the W. E. Morgan currency is a predecessor of the county treasurer notes issued in 1865 and illustrated in Figure 1, and Morgan signed his notes and scrip in the same capacity as Parks Beeman (1805-1873) signed the 1865 notes: as county clerk of Union County.26 Figure 11. Burton’s family. Left: home of John and Cora in Texarkana. Center: Burton family photo of February 22, 1903. Clockwise from left front: son Percy Duffield Burton; wife Cora Mack Burton; son Ralph Burton; son Ashby Burton; son John Bayly Burton; daughter Louise Burton. Right: Cora Burton. From 8 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 126 References and Notes 1 Encyclopedia of Arkansas History & Culture. Butler Center for Arkansas Studies, Central Arkansas Library System, Little Rock. http://www.encyclopediaofarkansas.net 2 Cordell, Anna Harmon. 1984. Dates and Data of Union County Arkansas, 1541–1948. Century Printing and Publishing Co., Monroe, Arkansas. 3 Green, Juanita Whitaker. 1954. The History of Union County Arkansas. Union County, Arkansas. 4 Tracks and Traces. 1977. Union County Genealogical Society, El Dorado, Arkansas. 5 Rothert, Matt Sr. 1985. Arkansas Obsolete Notes and Scrip. The Society of Paper Money Collectors, Inc. 6 Biographical and Historical Memoirs of Southern Arkansas. 1890. Goodspeed Publishing Co., Southern Historical Press, Chicago, Nashville, and St. Louis. 7 Allsopp, Fred William. 1922. History of the Arkansas Press for a Hundred Years and More. Parke-Harper Publishing. 8 Matthew Milton Barron (1829-1895), like Burton, moved to El Dorado to run a newspaper and lived there only briefly. Barron was born in Clinton, Georgia. He lived in Randolph County, Alabama, by 1850, where he married Eliza Anne Stephens (1836-1897) in 1851 and had five children over the next six years. He moved to El Dorado by 1859 and was working with Burton on The El Dorado Times, and had a son born in Little Rock in 1860. He left Arkansas soon thereafter, even before he sold his house: the advertisement for a “House and Lot for Sale” in the May 9, 1861, issue of The El Dorado Bulletin, shown to the right, was for his house. Barron joined the war in April 22, 1862, in Louina, Randolph County, Alabama, enlisting into Company K of the 46th Alabama Infantry Regiment, at the rank of Sargent. He was captured at Vicksburg, Mississippi, July 4, 1863, and was paroled. He returned to Louina and had four more children. By 1870, he had moved to Newnan, Georgia, by 1870, and lived there until his death in 1895. He is buried in Oak Hill Cemetery, Newnan, Georgia.8-10 9 Documents kindly provided by Charles Walthall and courtesy of the John B. Burton family 10 Ancestry.com 11 U.S. Censuses 12 Letter dated September 24, 1886, from Cora Mack Burton in Accomack, Virginia, to her children in Lewisville, Arkansas (provided by Charles Walthall courtesy of the J. B. Burton family) 13 General Catalogue of Princeton University: 1746-1906. Published by Princeton University, 1908. 14 Krick, Robert E. L. 2003. Staff Officers in Gray: A Biographical Register of the Staff Officers in the Army of Northern Virginia. University of North Carolina Press, Chapel Hill. 15 Wyllie, Arthur. 2007. Confederate Officers. Lulu.com. 16 U. S. Military war records. Accessed through Fold3 17 Congressional Edition, Volume 3968. U. S. Government Printing Office, 1900. 18 http://www.encyclopediaofarkansas.net/ First Arkansas Volunteer Infantry Regiment (CS) 19 http://en.wikipedia.org/wiki/1st_Arkansas_Infantry_Regiment 20 http://www.arkansaspreservation.com/National-Register-Listings/PDF/LA0008.nr.pdf 21 Merrell, Henry. 1991. The Autobiography of Henry Merrell: Industrial Missionary to the South. Edited by James L. Skinner, University of Georgia Press, Athens. 22 ardvscv.tripod.com/camps.html 23 Official Report of the Deaths from Yellow Fever, as Reported by the New Orleans Board of Health, Epidemic of 1878. W. L. Murray’s Publishing House and Newspaper Advertising Agency, New Orleans. 1879. 24 U.S. General Land Office Records, 1776-2015 (accessed through Ancestry.com),\ 25 Union County, Arkansas, County Court Record Book E, pages 632–643, recorded between 8 July 1861 and 23 Oct 1861. El Dorado Township Home Guard. Thursday July 18th, 1861 (p. 635). 26 The Historical Report of the Arkansas Secretary of State 2009. University of Arkansas Press, Little Rock. Acknowledgment. This work would not have been possible without the generous assistance of Charles Walthall and the John B. Burton family. They provided records, photographs, and insight into Burton, allowing his nature and accomplishments to be portrayed here. I am deeply indebted to their generosity. I also thank Bill Gunther and Rodney Kelley for their helpful comments about the manuscript. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 127 Central States Numismatic Society 78th Anniversary Convention April 24-27, 2018 (Bourse Hours – April 24 – 12 noon-6pm Early Birds: $125 Registration Fee) Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: www.centralstates.info Bourse Information: Patricia Foley (414) 698-6498 • foleylawoffice@gmail.com 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 An Introduction to the Coupon System of the United Cigar Stores Company, 1901-1929 by Loren Gatch Beginning in the late nineteenth century and into the first third of the twentieth, premium coupons became a popular marketing device for both manufacturers and retailers of various consumer goods. Under these coupon plans, businesses would issue coupons accompanying the sale of products which could then be redeemed for selected premium items, typically listed in published catalogs with ‘prices’ quoted in terms of the number of coupons required for a given item. Coupon savers could either redeem them by mail, or spend them at designated premium stores (often called “stations” or “parlors”). In the marketing language of the time, these programs were styled as “profit sharing” enterprises, implying that, by amassing and redeeming coupons, shoppers were partaking of the producers' or retailers’ profits in exchange for the loyalty of their patronage. Of the various schemes that were afloat during this era, this article introduces the coupon system operated by the United Cigar Stores Company. An early example of chain store retailing, United Cigar attracted notoriety partly because of its association with James B. Duke’s American Tobacco Company--the much- vilified “Tobacco Trust” broken up by the Supreme Court in 1911. United Cigar’s aggressive expansion strategy across the United States proved disruptive to a retail environment typified by small-scale, independent tobacconists. In particular, United Cigar’s early commercial success was often ascribed to its coupon system, whose extent and popularity few tobacconists could match. Unlike coupons of our time, which usually must be clipped from product packaging, newspaper inserts or magazine ads, and which are otherwise dull and utilitarian in appearance, coupons of this earlier period could be quite ornate. Often manufactured by security printing companies using safety paper, these attractive freestanding coupons came in a variety of sizes, colors, and denominations, and had the appearance of a corporate currency. Indeed, coupon plans like United Cigar’s operated on such a large scale that they did create a kind of premium economy parallel to that based on cash transactions, with millions of coupon savers accumulating the wherewithal to exchange for desirable catalog listings. Despite the widespread availability of these coupons to modern collectors, little systematic research has been published on the types and varieties of this class of inexpensive ephemera. This article introduces United Cigar’s coupon system by surveying its basic history and the denominational structure of its various issues. It does not try to document their many varieties, either in the United States or Canada. Nor does it include the extensive issues of the United Profit- Sharing Company, an affiliate set up by United Cigar in 1914 to sell its premium marketing services to other manufacturers and retailers. Likewise, it does not include the issues of the Mutual-Profit Coupon Corporation, an affiliate of the A. Schulte Cigar Stores, which competed with United Cigars until the two chains formed an alliance in the mid-1920s. A period advertisement featuring a United Cigar store, with its iconic shield logo ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 129 Origins of the United Cigar Stores Company Founded by George and Charles Whelan, brothers originally from Syracuse who had run a small chain of cigar stores there, the New York City-based United Cigar Stores became affiliated with the Duke interests in 1902 and represented the Tobacco Trust’s attempt at forward integration into the retail end of the tobacco industry. Even in their early Syracuse days, the Whelans employed coupons as an inducement for their customers to pay in cash, rather than purchase on credit. From a modest premium list of fifteen items, the Whelans graduated to their first premium catalog by 1901, their first year in New York City. In 1907, United Cigar put out more than a million copies of its first illustrated catalog, and six million by 1915. Beyond their aggressive use of coupons, the Whelans’ early success was due to their application of chain-store methods to a market that was highly fragmented and hidebound. Indeed, United Cigar was one of the first examples of a retail enterprise that branded itself by stressing a high and standardized level of customer service across its burgeoning chain of stores. Selling large quantities of tobacco merchandise on low margins required timely and accurate information flows about consumer preferences and store inventories. The brothers also had a canny eye for real estate locations, which, however expensive, would maximize customer traffic. As coupon use throughout American retailing became more widespread, public debate arose over whether or not coupons represented unfair competition. Beginning in the late 19th century, states were beginning to pass legislation that sought to regulate or even suppress premium schemes. Like other coupon issuers, United Cigar had to abide by or adapt to states’ restrictions. The Supreme Court’s decision to dissolve the Tobacco Trust in May 1911 spun off the United Cigar Stores Company as a separate business. By 1914 United Cigar was the largest chain store in country, notorious for its rapid expansion into cities where independent tobacconists could not match its prices or level of service. “No one can deny”, marveled the Wall Street Journal, “that the management of United Cigar Stores is of the strictly, up-to-the-newest wrinkle, American commercial type. The thousands of salesmen in the stores are drilled like the soldiers of an army. They are taught politeness, cleanliness, alertness.” United Cigar’s monthly in-house magazine, The United Shield, ever solicitous of its employees’ esprit de corps, incessantly admonished them to maintain consistent and high levels of customer service. In the public mind, the fortunes of United Cigar were particularly connected with its coupon program, and indeed with the stereotype that wives would hector their husbands to indulge their tobacco habits in order to get at the coupons. As an early, admiring profile of the company concluded, “premiums… have succeeded, not so much that they have captured the man who smokes, as that they have snared the woman behind him.” An early coupon used by the Whelan brothers, before establishing United Cigar  ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 130 United Cigar’s Coupon System At their first issue, United Cigar’s coupons originally could be redeemed for a premium list so short that it could be printed on the coupon itself. By the end of the decade, United Cigar’s premium list had expanded into a 36-page catalog, divided into men’s and women’s departments, that offered branded products as premiums for coupons redeemable either at dedicated redemption centers in major cities or by mail at the company’s central redemption offices in New York City. United Cigar’s coupon “counting room” at the New York office grew from 6 employees in 1902 to 110 in 1914, and by then that office alone was processing 3 million coupons a day. The scale of United Cigar’s premium program was far beyond the capabilities of smaller retailers, who bitterly resented their competitive disadvantage. Opposition to the kind of premium marketing practiced by United Cigar came from retail merchants’ associations, chambers of commerce, and newspaper publishers, all of whom objected to premium systems—trading stamps as well as coupons—for the expenses they imposed upon their members (or the advertising outlays that they reduced). After United Cigar’s spinoff from the Tobacco Trust, the Whelans established in early 1914 the United Profit-Sharing Corporation. United Profit- Sharing would issue its own coupons and operate its own redemption parlors. The plan was for United Cigar to transfer its coupon business to the new company, thus shielding itself from some of the opposition to its in-house coupon system. Some United Profit-Sharing coupons do indeed exist with a “United Cigar Stores Co.” overprint. However, the tobacco chain continued to issue its own catalogs and coupons, though the two entities did share the same corporate headquarters at 18 West 44th Street in New York City. In the last-published United Cigar catalog of 1928-29, an illustration of the storefront of the company’s Main Premium Station at 537 Fifth Avenue between 44th and 45th Streets depicts window lettering that places United Profit-Sharing’s redemption offices on the top floor of the same building. In the popular imagination, women lay behind the coupon craze in both working-class (above) and middle-class (below) American households (Pearson’s Magazine, 1909).  ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 131 Basic Coupon Denominations and Varieties Like other coupon users of this era, United Cigars issued customers one coupon for each five cents spent. Five coupons were the equivalent of one certificate (for a 25 cent purchase). Since its catalogs quoted premium redemption values in terms of certificates, it is intuitive to array the denominations used by United Cigar above and below this value. Accordingly, United Cigar’s coupon (cash and non-cash) and certificate denominations can be listed in terms of the denomination as printed, their common equivalent in coupons, and the amount of the cash purchase to which they corresponded. Over the years, United Cigar issued coupons denominated in cents (corresponding to the amount of the original purchase) in “coupons” (for a five cent purchase), and in “certificates” (for a 25 cent purchase, and multiples thereof). Premiums available in the catalogs were always priced in terms of “certificates” (see table). Except for the ½, 1, and 2 coupon denominations, coupons and certificates were serial-numbered. While in the earliest years of coupon issuance no printer imprint appears, later varieties bear the imprint of the American Bank Note Co., M.B. Brown Printing and Binding Co. of New York City, and Eureka Specialty Printing Co., of Scranton, Pennsylvania, in that chronological order. United Cigar Coupon/Certificate Denominations Denomination as printed Equivalent in coupons Cash purchase equivalent ½ coupon 5¢ / 1 coupon ¼ certificate 10¢ / 2 coupons 12 ½ ¢ / ½ certificate 20¢ / 4 coupons 1 certificate 2 certificates 4 certificates 5 certificates 8 certificates 10 certificates ½ coupon 1 coupon 1 ¼ coupons 2 coupons 2 ½ coupons 4 coupons 5 coupons 10 coupons 20 coupons 25 coupons 40 coupons 50 coupons 2 ½ cents 5 cents 6 ¼ cents 10 cents 12 ½ cents 20 cents 25 cents 50 cents 1 dollar 1 ¼ dollars 2 dollars 2 ½ dollars Changes in arrangement and wording found on coupons and certificates for the most part reflect the transition from one printer to another. In addition, varieties exist with the overprints “W”, “P”, and the word “Exchange”, mostly in red, for purposes that remain unclear. Yet other varieties of coupons and certificates exist that reflect United Cigar’s attempt to comply with laws in several states that required cash redemption in some fashion. As a chain store operating across the United States in multiple jurisdictions, United Cigar was obliged to adjust where it could its premium practices to variations in the law. A few coupons don’t fit into the 5 coupons = 1 certificate = 25¢ cash purchase equivalence. For that reason, they aren’t included in the table above. For example, a 12 ½ ¢ cash coupon was issued that simply granted customers a discount towards the purchase of a humidor. Likewise, another exception, a 10-certificate “order” issued on United Cigar Day (printed by M. B. Brown, and with an expiration date of July 31, 1918) entitled the purchaser of a dollar’s worth of cigars to a premium value that would otherwise have required a $2.50 purchase, according the normal certificate valuations. As America was drawn into World War I, United Cigar threw itself into patriotic efforts on the home front, and accepted coupon donations from its customers to fund shipments of cigarettes to servicemen, with the goal of “smoking out the Kaiser”. Some cigar coupons United Cigar’s “Profit- Sharing Girl” promoted coupon use by wearing a dress adorned with them (United Shield, Dec. 1914). ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 132 and certificates even migrated to Europe, where enterprising doughboys took advantage of the color similarity between the one-certificate denomination and certain French banknotes to pass their cigar certificates off as currency to the unwary. Whatever were the other effects of that monumental conflict, it created a generation of nicotine addicts (and, later, lung cancer victims) as American servicemen returned home hooked on smoking. After the war, and for the next decade, both United Cigar’s and United Profit-Sharing’s premium businesses operated in parallel, sharing redemption facilities. Throughout the 1920s, the premium catalogs of both companies offered cross-redemption of United Profit-Sharing and United Cigar coupons, as well as those of United Happiness Candy Stores, a chain of confectionary stores within the Whelans’ holdings. A recurrent feature of the tobacco retail business during the postwar years was the price wars between United Cigar and a rival chain, the New York-based A. Schulte Cigar Stores, run by David A. Schulte. Though by far the smaller chain, Schulte represented a scrappy competitor who followed an expansion strategy similar to the Whelans’, which included a penchant for real estate dealing and even the establishment of Schulte’s own premium marketing affiliate, the Mutual-Profit Coupon Corporation. Despite their rivalry, the Whelan and Schulte interests conducted off-and-on negotiations to reach some sort of peace, resulting in a merging of their interests in December 1926, followed by the establishment of a joint retail venture, the Schulte-United 5¢ to $1.00 Stores, in January 1928. After 1926, Schulte Cigars became a client of the United Profit-Sharing premium plan, substituting its coupons for those of the Mutual- Profit Coupon Co. By the end of the decade, the United Cigar chain extended across the country to include over 3000 stores and affiliated agencies. The onset of Great Depression delivered a body blow to the Whelans’ interests, leading to their bankruptcy and the reorganization of the cigar chain by 1932. Even before that, however, competition from other chain stores put an end to United Cigar’s coupon activities. Ironically, even as United Cigar had proved such a disruptive competitor to independent tobacconists, the spread of the chain store model into other retail lines led to intense price pressures on tobacco products, which general retailers discounted as loss-leaders. Constant discounting forced United Cigar to abandon its premium coupon program in 1929. The company promised to redeem its outstanding coupons for the next ten years through the offices of its United Profit-Sharing affiliate, which not only survived the downturn of the 1930s but also continued selling its premium marketing services to other businesses until the late 1950s. REFERENCES Cherrington, Paul Terry, Advertising as a Business Force (Doubleday, Page & Co. 1913). Cox, Reavis, Competition in the American Tobacco Industry 1911-1932 (Columbia University Press 1933). Gillmore, Rufus H., “The Method Behind the Smoker’s Coupon” Pearson’s Magazine (October 1909), pp. 482-490. Gittleman, Karl B. “An Examination of the Growth and Development of the Premium Industry in the United States in Terms of Micro-Economic Theory”( PhD Dissertation, New York University 1974), ch. 2. Lebhar, Godfrey M. Chain Stores in America 1859-1959 (New York: Chain Store Publishing Corporation 1959) United Cigar Stores Premium Catalog, 1928-29. United Shield (various dates). U. S. Bureau of Corporations, Report of the Commissioner of Corporations on the Tobacco Industry, Part I (Washington, D.C.: GPO 1909). Wall Street Journal, May 8, 1911. Zimmerman, M. M., The Challenge of Chain Store Distribution (New York and London: Harper & Brothers 1931).  ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 133 Late-Numbered $1 Series of 1917 Legal Tender KA-Block Fr 37a Error One of the most fun collectable 20th century low-denomination type note varieties that has been found is the $1 Series of 1917 legal tender error where the position of the names and titles of Register of the Treasury William S. Elliott and Treasurer John Burke were switched. The mistake was made on all four positions by siderographer John C. Rout as he laid the signatures into the plate. The rolls he used contained both the signature and title for each signer so the mistake was in simply switching them. It was not noticed by plate finisher Thomas B. Jones Sr., who was the last person to work on the plate, or any of the plate inspectors so the plate was certified as perfect by BEP director James L. Wilmeth on August 24, 1920. The plate bore Treasury plate number 71506 in the top margin and plate serial number1519 on each subject. It was sent to press September 3-29, 1920 to create Fr. 37a and was canceled September 30th. Production from it progressed to the numbering division and was numbered in normal sequence in the low HA block. The reported range of serial numbers as of the 2014 Gengerke census was H5917673A-H17592992A. However, a truly exotic specimen was discovered in 1987 by Tom Denly that bore way- out-of-range serial K29666226A, the only specimen ever discovered from the KA block. This serial is over 110 million higher than its siblings. The exotic was not the result of some peculiar use of the plate at some late date. The plate had long before been canceled by the time the KA block was numbered. The most logical explanation for its occurrence was that the sheet from which it was cut resided in a small stockpile that was finally retrieved and numbered many months after its siblings. Doug Murray justifiably calls it a late numbered note. The fact that it is the only such specimen reported from the KA block of this highly visible error hints that the size of the stockpile was small. Figure 1. This is the only reported Fr 37a $1 Legal Tender note from the KA serial number block. The Fr 37a variety was printed from plate serial number 1519 on which the siderographer switched the positions of Treasury signers Elliott and Burke along with their titles. Doug Murray photo. The Paper Column by Peter Huntoon ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 134 Figure 2. Top and bottom subjects from the certified proof of plate 71506-1519 with BEP Director James L. Wilmeth’s signature. The initials of siderographer John C. Rout are in the upper left corner and plate finisher Thomas B. Jones in the lower left corner. Figure 3. The other reported Fr 37a specimens were numbered early in the HA serial number block. Heritage Auction Archives photo. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 135 $ m a l l n o t e $ Two $5 Master Plate Proofs By Jamie Yakes Steel intaglio master plates comprised the foundation for early electrolytic platemaking. The Bureau of Engraving and Printing (BEP) reproduced each subject on the master from a steel master die by traditional roll- transfer technology. They then produced an electrolytic master from the steel master, and then duplicated production plates en masse from the electrolytic master. The BEP made proofs all finished production plates, but not all master plates. Fortunately, they proofed two $5 master backs: plate 114512 in 1928 and plate 384 in 1930 (Fig. 1). Electrolytic Plates The invention of electrolytic platemaking at the BEP in 1911, and commercial-scale use beginning in 1921, relied on the use of steel master intaglio plates as the templates from which electrolytic production plates ultimately were reproduced.1,2 In electrolytic platemaking, the BEP submerged an electrically-charged steel intaglio plate into a chemical bath containing solubilized nickel. The nickel deposited on the master, and the form created and separated was called an alto, which was a perfect mold of the master. They put the alto through an identical process to produce a basso that was a perfect replica of the master. They finished most bassos as production plates by having plate serial numbers added, but reserved some reserved as master plates. The BEP created the originating steel master plate by transferring to it the intaglio image from a master die using a steel transfer roll. The roll consisted of a soft steel cylinder that was rolled back and forth over the hardened die until the intaglio image on the die completely transferred in relief on the surface of the roll. They hardened the roll and used to impress the image onto the master plate as many times as required. Figure 1. One and the same?! Shown are $5 back plates 114512 (top) and 384 (bottom),  two master plates made in the late 1920s/early 1930s. Notice they do not have plate  serials, which on $5 backs appeared in the white field to the right of S in DOLLARS.  ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 136 They composed master dies by the same technology, by transferring engraved elements from component dies onto the master die using the roll-transfer process to construct the image. The component dies consisted of hand- or machine-engraved elements, such as portraits, lettering, border elements, etc. Siderographers, the men who operated the transfer presses, used the same $5 master back die—no. 274 made in early 1928—to transfer each of the 12 subjects on master plates 114512 and 384. Plate 114512 was made in June-July 1928, whereas plate 384 was made in February-March 1930. Small-Size Plate Numbers in 1928-29 BEP plates generally carry two numbers: a treasury plate number that appears in the margin of the plate, and a plate serial number that is internal to the notes replicated from each subject. Treasury plate numbers were omnibus sequences that threaded through all kinds of plates made for the Treasury Department, including bonds, currency, and revenue stamps. They appeared on the selvage of sheets and were trimmed away prior to serial numbering. In contrast, plate serial numbers were from sets of consecutive numbers assigned to specific classes and denominations, and the faces used different sets than backs. They appeared on printed notes. Numbers 114512 and 384 are both treasury plate numbers; they differ in magnitude because they came from different sets of numbers. Number 114512 is from a set the BEP begun in 1886 with large-size currency. Number 384 is from a new set they started in July 1929 reserved for small size $5 and higher denomination back plates. They BEP assigned new treasury plate number 1 to a $5 back they certified on July 24, 1929 (Fig x). Plate 384 came the following year. Just to make things confusing, they created a third set of treasury plate numbers in 1914 used only for Federal Reserve note faces and backs that continued into the small size era. The BEP did not assign plate serial numbers to large-size master plates, a practice that persisted for a short time into the early small note era. Consequently, master 114512 was not assigned a plate serial number, but master 384 was assigned plate serial number 172. $5 Masters 114512 and 384 Plate 114512 was the first small-size $5 back plate made by the BEP. A 12-subject steel intaglio master plate was proofed July 24, 1928. They used electrolytic altos made from it to make production plates until 1929. They did not certify it as a production plate and canceled it May 24, 1930. They began one of the electrolytic bassos made from 114512 on November 1, 1928 and assigned it treasury plate number 116108. They used it as an electrolytic master from October 1929 to January 1930 to make seven altos. Those altos plus altos made from 114512 were used to make $5 backs 1-171 from July 5, 1929 until February 11, 1930. The BEP then certified 116108 with serial 133 on May 23, 1930, sent it to press over the next few months, and canceled it August 19. On February 21, 1930, they began $5 steel plate 384 and assigned it plate serial number 172 and proofed it on May 12. It replaced 116108 as the $5 master plate and was used to produce three altos in March and April. The BEP used one alto to make bassos 484 and 494 in May and 558 in September. They used altos from all three bassos alongside the altos from basso 116108 and older altos from 114512 to produce $5 production plates until 1931. From then until 1934, basso 558 became the sole source for $5 altos and subsequent production plates. Master 384 and all bassos sourced from it were old-gauge plates, meaning they had narrow vertical separations between the subjects. The narrow spacing resulted in tight margins on cut notes, which resulted in unacceptable spoilage rates. The BEP started making new-gauge plates with wider margins for all denominations beginning in 1934. That required preparation of a new-gauge $5 steel master assigned plate number 1427/plate serial number 630 when it was made in late 1935, from $5 back master roll no. 274. Once a sufficient supply of the new gauge plates became available, the use of the old gauge plates ceased because they were a nuisance. The Bureau canceled a slew of them that had never been used along with master 384. That plate they canceled March 20, 1935. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 137 $5 Master 1442 The BEP used an alto made in 1935 from steel master 630 to produce a basso they assigned Treasury plate number 1442 and plate serial number 637. This became the most renowned of small size plates—$5 micro back 637. At the time it was made it had no engraved plate serials, which was normal for a master plate. They used it as the only $5 master basso for the next eight years. Every $5 back plate made from 1935 until the narrow backs came along in 1951 was fathered by an alto made from 637.3 The BEP ultimately made plate 637 into a production plate by adding its plate serial numbers and certify it on November 10, 1944. It then served 16 press hitches between 1945 and 1949 where it created rare and wonderful non-mule and mule varieties in every class of $5 note. They canceled it on June 16, 1949.4 Notes 1. Huntoon, Peter. “Invention and evolution of electrolytic plate making at the Bureau of Engraving and Printing.” Paper Money 55, no. 1 (2016 Jan/Feb): 4-17. 2. Although electrolytic plate production would become the predominant method of plate production, the BEP continued to make steel intaglio production plates, especially for higher denominations and other infrequently used types. 3. Yakes, Jamie. “The Extraordinary First Ten Years of Micro Back 637.” Paper Money 55, no. 3 (2016, May/Jun): 212-215. 4. Huntoon, Peter. “The enduring allure of $5 micro back plates 629 and 637.” Paper Money 54, no. 5 (2015, Sep/Oct): 304-326. Sources of Data U. S. Treasury. Bureau of Engraving and Printing. “Ledgers Pertaining to Plates, Rolls and Dies, 1870s-1960s.” Volumes 42, 43, 135, 139, 143, and 144. Record Group 318: Records of the Bureau of Engraving and Printing. National Archives and Records Administration, College Park, Maryland. Call for Papers International Paper Money Show IPMS-KC is the paper money speaking event of the year! Gain the cachet of giving your great presentation at the IPMS! Show information can be found at: http://www.ipmskansascity.com We invite presentations on any fiscal paper or fiscal paper tie-in topic. We will have a packed program. We always want new speakers with new topics! Please pass this on to anyone you think might want to contribute. Deadline for submissions is April 1, 2019 Talks are scheduled on Friday and Saturday (June 14 & 15) on the hour. Each speaker is allotted 50 minutes, which includes time for questions. Use PowerPoint for your visuals unless prior arrangements are made. Lavishly illustrate your talk. Bring your own laptop or submit a disk or thumb drive with your presentation to Peter Huntoon in advance of the show. You are encouraged to mount a parallel exhibit in the exhibition area. Application requirements: (1) list of presenter(s) with contact information for each, (2) title of talk, (3) concise two or three sentence newsworthy description of the content of your talk, (4) advise if you need up to three display cases for show-and-tell items at the talk. Send applications to peterhuntoon@outlook.com ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 138 The State of Cash One thing I inherited from my dad (other than prematurely grey hair), is a tendency to express my feelings by attempting to be useful in small ways. I find that easier than actually trying to be an emotionally articulate person. Cars provide good opportunities for this, whether it’s topping off the air in my daughter’s tires or filling the tank. Recently my wife had to take a short business trip to Chicago. As she was bustling about, getting ready to go to the airport, I chirped up helpfully, “hey, do you want me to go get you some cash?” For a moment, she looked at me blankly, as if I had asked her whether she wanted a rubber duck for her carry-on bag. Then, a slight smirk of realization slowly broke out at the corners of her mouth, as if to say—Oh, you want to get me some of that—PAPER MONEY—and she replied quickly, “Nah, I’ll just put everything on plastic.” It doesn’t exactly rise to the level of a family argument, but my wife and I do differ about the role of cash in our lives. She takes malicious joy in minimizing its use, whereas I remain a sentimental holdout for those dwindling occasions to spend real simoleons. My daughter, who uses physical currency at least to play alongside the sharp-elbowed ladies at church bingo night, is otherwise indifferent on the issue. Opportunities to spend the real deal can still be found, of course, but the sheer bother of planning to carry cash around suggests a tipping point: retail establishments go cashless because of declining public use of it, prompting the public to demand less cash because there are fewer places to spend it. A recent, sobering article in the Wall Street Journal on kids and cash highlighted the scope of the problem. In a world where the Game of Monopoly has gone cashless and Girl Scout Cookies are bought online, even children prefer to swipe a debit or gift card rather than wrap their little minds around what to do with a nice, crisp piece of currency. I also wonder whether those counterfeiting reports that actually involve people being fooled by motion picture money, or even Chinese bank teller training notes, reflect the general dulling of our discriminating faculties as to what genuine money really looks like in the first place. Even in those circumstances where I do reliably use cash, incongruities and Indignities abound. At the convenience store where I buy my morning coffee (no barista for me), I strongly suspect that most of the cashiers, if not innumerate, are at least unused to performing the basic counting skills that handling cash sharpens. On Thursday afternoons, I take one of my sons to a local bowling alley for an after-school club, and it’s pulling teeth to get the attendant to properly calculate the per-person cost for a scrum of children waving their parents’ dollar bills in his face. Moreover, as any lush will tell you, the best spirits store in Oklahoma City is Byron’s Liquor Warehouse at 23rd and Broadway. Yet there, the hardened clerks take a counterfeit detector pen even to a lowly five-dollar bill. It becomes hard these days not to feel insulted at the lack of trust in, and respect for, your wad. Anecdotes about the coming cashless society abound, from the Church of England’s electronic collection plates to Europe’s abandonment of the mighty 500 Euro note. Oh, and there’s also the entire economy of Sweden, which is rapidly becoming a cash desert. In China, the biggest consumer market of them all, the proliferation of smartphone-based payment apps renders cash unnecessary, and even a nuisance, for even the smallest transactions. Why does griping about this trend amount to anything more than yelling at the kids to stay off my lawn? I suppose I feel a lingering queasiness about the privacy implications of a cashless world. Also, I worry about the odd electromagnetic pulse that might fry the world’s payments systems. On a less hysterical note, a world without cash usage might also be world where people no longer wish to collect it. In previous columns, I’ve explored the decline of stamp collecting, and its connection to the demise of postal systems globally. This might be the future of paper money collecting as well. We cash users could resist in small, if futile, ways. We could start by practicing more cash- friendly rituals. I’m thinking here of the Lunar New Year, and how (ironically) in China and elsewhere in Asia, red envelopes stuffed with hongbao commemorate the holiday. I write this column on the eve of Valentine’s Day. Perhaps instead of marking it with boxes of chocolate and flowers, we could instead give money in exchange for… then again, maybe not. Chump Change Loren Gatch ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 139 The Quartermaster Column No. 5 by Michael McNeil Nearly all of the endorsements of issuance on the backs of Types-39, -40 “Train,” and -41 “Hoer” Confederate Treasury notes are the work of government depositaries (common) and the bonded quartermasters, commissaries, and paymasters who supplied the troops (much less common). On rare occasions, however, field officers of infantry units endorsed and issued these notes when they assumed the temporary role of an unbonded “acting” quartermaster, commissary, or paymaster. Among the few such known field officers was an endorsement which turned up on 84 Treasury notes sold over a period of a few months in late 2015 on Heritage internet auctions from what was reportedly a large Texas hoard. The tiny signature on these notes was enigmatic, with just a simple last name: “Woods.” A great many Train and Hoer Treasury notes are endorsed by civilians, presumably much in the manner in which we endorse checks today. Some civilians endorsed these notes when they received interest on them from a depositary. These civilian endorsements lack the crucial clues that the Treasury notes were actually issued by the endorser, i.e., wording which reads “Issued on (date), by (name, rank, and title)” of the officer, agent, or depositary. The 84 notes endorsed by Woods look like a common civilian endorsement. Wendell Wolka solved the identity of this signature, and Woods turned out to be much more than a civilian. He was Colonel Peter Cavanaugh Woods, commander of the 36th Texas Cavalry. A quick check of the National Archives files for Texas on Fold3.com confirmed his signature on numerous original documents; see the illustrated example. Woods’ documents in the National Archives files do not specifically mention that he acted as a quartermaster, commissary, or paymaster, but it is probable that he assumed at least one of those roles when he endorsed the Treasury notes. Texas was in the Trans- Mississippi Department where communications with Richmond became difficult as the Union blockaded ports and gained control of the Mississippi River. Col. Woods was probably unaware of the request by Secretary Memminger that all interest-bearing Train and Hoer notes needed a date of issue written on the back of the note (to minimize government liability for interest payments). Several sources describe incidents in which Woods was protective of his men. On September 9th, 1863, Woods’ regiment was ordered “dismounted,” meaning that their horses were to be taken from them for use in other commands. It is worth noting that the enlistment records in the National Archives show that most Confederate men, including Woods, brought their personal horses with them when they enlisted. Woods protested this “dismounting” of his regiment and refused to obey the order. 157 of Woods’ men deserted to their homes on February 1st, 1864. Woods followed them to their homes Woods’ endorsement is at top. The rest of the notations read: “Issued Jackson Jany 1, 1863/ Reissued, San Antonio Octr 21, 63/ Int(erest) P(ai)d to 1 Jan 1864.” image courtesy HA.com Signature of “P. C. Woods, Col. Com(man)d(in)g” the 36th Texas Cavalry, on a requisition of forage for horses, dated December 31st, 1862 at Camp Magruder, Texas. image courtesy Fold3.com ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 140 An endorsement by Col. Woods at the top, with another endorsement which reads: “Issued Houston/ M(ar)ch 3d 1863 by/ B Bloomfield/ Maj etc.” image courtesy HA.com and later returned with them. The unpopular dismounting order was executed on Feb. 20th.1 Col. Woods’ 36th Texas Cavalry did not see action until April 12th, 1864, when “they received their baptism of fire at the battle of Blair’s Landing, Louisiana” in pursuit of Union Gen’l Nathaniel P. Banks’ defeated army. They continued to skirmish with Union forces, and on May 18th Woods was wounded when a bullet entered his left hand, traversed his arm, and exited the elbow.1 The regiment returned to Texas in February 1865, and on May 21st it disbanded and divided its public property. Woods died on January 27th, 1898, and is buried at San Marcos, Texas.1 A place marker at Woods’ grave notes that after the war “...he freed his slaves, giving them tracts of land....,” an altruistic gesture very unlike the ubiquitous post-war practice of sharecropping that kept former slaves in the South destitute. Woods is one of the South’s important role models. Peter Cavanaugh Woods graduated from Louisville Medical Institute in 1842. He had no formal military training but he was elected by his men to his commanding rank of Colonel. He was a surgeon by profession and among the first to realize the value of antiseptic techniques in surgery.1 More soldiers would die of disease and infection in the Civil War than would die on the battlefield. A little persistence will reward the collector with a Treasury note signed by Woods; and with more persistence you can find Treasury notes signed by both Woods and a commissioned quartermaster. One note is known with the signatures of Woods and a Texan of Prussian ancestry, Capt. Henry Loebnitz, Asst. Quartermaster. Several examples are known with the endorsements of Woods and Maj. Benjamin Bloomfield, QM, who often appended “Issued Houston” to his endorsement, as seen in the illustrated example. carpe diem ◘ Notes: 1. See the detailed history at tsahaonline.org/handbook/online/articles/fwo16, accessed January 12th, 2016, published by the Texas State Historical Association. 2. McNeil, Michael. Confederate Quartermasters, Commissaries, and Agents, published by Pierre Fricke, 2016, and often listed in eBay’s Confederate paper money. See pp. 754-758 for more information on Woods. Peter Cavanaugh Woods image courtesy of Wendell Wolka The front of the Type-41 Treasury note endorsed by Col. Peter Cavanaugh Woods, commander of the 36th Texas Cavalry and re-issued at San Antonio, Texas. image courtesy HA.com ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 141 The Obsolete Corner The Munroe Falls Manufacturing Company by Robert Gill The winter months are now upon us, and before we know it, June will be here, and it will be time for the big paper money show in Kansas City. It can’t get here soon enough for me. I was able to pick up a couple of nice sheets in January’s FUN show. Maybe before too long, I will be able to write an article to share them with you. But now, let’s look at the sheet that I’ve chosen for this article. That is on The Munroe Falls Manufacturing Company, which operated over a hundred and seventy years ago in Munroe Falls, Ohio. In 1817, a log dam was built on the Cuyahoga River to power a saw and gristmill. This power source attracted small industries to what became referred to as the town of Florence, Ohio. Edmund and William Munroe, of Boston, Massachusetts, purchased two hundred acres of land in Florence in 1836, and made plans for a new manufacturing community. They were quite aggressive in purchasing land and businesses. They built a general store, improved existing mills, and began building larger mills and more homes. The small town's name was changed to Munroe Falls, which was incorporated on October 26, 1838. In his very comprehensive book, A History of Nineteenth Century Ohio Obsolete Bank Notes and Scrip, Wendell Wolka tells us in the nation-wide financial unstable year of 1837, the Munroe Brothers established the Munroe Falls Manufacturing Company, which was to grow or manufacture silk, wool, cotton, paper, flour, sugar, as well as machinery and tools of all descriptions. They heavily invested in imported silk worms and mulberry trees to feed the worms. However, it was soon realized that the climate was not suitable for the worms. The trees survived, but the worms did not. A banking operation was started that issued notes that were supposed to be secured by real estate. Nevertheless, state authorities quickly recognized it as an illegal bank, as it did not have a state charter. By 1840, the bank's notes were widely listed as "no sale". Poor management decisions, and the results of the Panic of 1837, caused the entire enterprise to be bankrupt by 1846. Contemporary sources pegged the losses as significant for note holders. This is a perfect example of what happened to many, many businesses that tried to operate during these stringent times, resulting in failure, causing the surrounding community to suffer heavily. Over the last several years, I have seen maybe a handful of sheets on this company. Being able to acquire one is quite an accomplishment for a sheet collector like myself. I always enjoy hearing from our members. So, as I always do, I invite comments to my cell phone (580) 221- 0898, or my personal email address robertgill@cableone.net Until next time… Happy Collecting ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 142 ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 143 President’s Column Mar/Apr 2019 I hope your new year is off to a good start. We had a very good start at the FUN show in Orlando as many of the SPMC governors hosted the club table. Separately, we presented our first ever speakers series at the convention on Friday and Saturday, January 11- 12. It was very well received. Approximately 20-25 attendees were present at each of the sessions. Our Friday speakers were Bob Moon (National Bank Notes), Robert Calderman (Small Type), Wendell Wolka (New Orleans Obsoletes), and Pierre Fricke (Confederate). On Saturday, Benny Bolin (Fractional Currency) presented after the membership meeting. I would call this a success by every measure. Each session was engaging with lots of questions and we were definitely able to reach new collectors. Our table also hosted what they call Treasure Trivia, where young numismatists go to participating tables seeking answers to trivia questions created by the hosts. Ours was “What was the smallest denomination of currency ever issued by the U.S.?” On Saturday we drew about 50-60 YNs, each of whom received a free world bank note. Now we are cooking! It is so rewarding to reach out to new collectors while having a great time doing it. Count us in for next year. On this particular trip, my wife Cheryl and daughter Ashley came along for a brief vacation while Dad tended to business. On Friday they found an hour to spend with me at the show, and for the first time ever Ashley said “Wow, that’s cool” to a bank note I showed her. Of course, it would have to be a note with a personal connection: a series 1902 national bank note from FNB of ASHLEY, Pennsylvania. How’s this for satisfaction: That note now resides in a brand new collection, thanks to Dad. Do you remember how you felt when you acquired the first note of your collection? Pretty good feeling, right? After FUN, governors Gary Dobbins and Robert Calderman each recently hosted club tables at the Houston Money Show and Long Beach, respectively. Both reported good activity. Robert was even interviewed by a Vietnamese YouTube TV Channel about growing paper collecting interest in Vietnam. That’s fantastic! Now we start to look ahead to the International Paper Money Show in Kansas City in June. That venue is our premiere gathering of the year. If this is news to you, embrace your sense of adventurism and make the trek. There is so much going on and so many people to meet. This will really kick-start your collecting experience. You can check out our website calendar and press releases for more information as we get closer, at www.spmc.org. By the time you read this, we should have our portal to national banking data open for business. Again, please visit our website for a press release. I know you will be impressed! I hear our biggest snowstorm of the year is on its way to Minnesota, so I will spend the rest of the day clearing out the newspaper that my snow blower ingested earlier this week. I hope spring comes quickly! Shawn ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 144 W_l]om_ to Our N_w M_m\_rs! \y Fr[nk Cl[rk—SPMC M_m\_rship Dir_]tor NEW MEMBERS 01/05/2019 14898 Donald S. Lafont, Tom Denly 14899 Edward Wengert, Website 14900 Mike Batkin, ANA Ad 14901 James McCants, Robert Calderman 14902 Michael Saharian, Heritage 14903 Emil Schutte, Website 14904 Paul E. Peelle, Website 14905 Dennis Boykin, ANA Ad 14906 Steve Fawthrop, ANA Ad 14907 Phillip Mangrum, Frank Clark 14908 Mark Anderson, Robert Calderman 14909 Robert Horton, Jason Bradford 14910 Dan Fanger, Website 14911 Roy Vajdak, Jason Bradford 14912 Dennis Earl, ANA Ad 14913 Albert Hall, Website REINSTATEMENTS None LIFE MEMBERSHIPS LM442 D. Lynn Fox, Membership Upgrade New Dues Remittal Process Send dues directly to Robert Moon SPMC Treasurer 104 Chipping Ct Greenwood, SC 29649 Send your dues in when your mailing label states they are due. You may also pay your dues online at www.spmc.org. Governor Elections The following governor’s terms of office are up in 2019;  Jeff Bruggeman • Steve Jennings  Gary Dobbins • Robert Vandevender If you are interested in running for a seat on the board, submit a self-biography and signatures of ten SPMC members to the secretary by April 1 at; Jeff Bruggeman 711 Signal Mtn. Rd. #197 Chattanooga, TN 37405 These will be published in the May/June issue of Paper Money and if there is a contested election, it will be held in May 2019. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 145 Editor Sez I hope everyone was able to stay warm during this strange extreme weather we are having this year. We have some friends in upper Michigan and they were having snow measured in feet and wind chills of NEGATIVE double digits. I will take my triple digit summer heat here in Texas any day! We started the year off in a truly great manner! The SPMC put together a speaker series for FUN and it was all that (fun) and more! I rarely go to FUN, but since I am going to be touring Italy with our high school choir at the time of the KC IPMS, I decided to use some miles and attend. President Hewitt asked me to do a presentation on Fractional and of course I say YES! I arrived at MN on Thursday and left at noon on Saturday, so it was a whirlwind trip, but incredibly enjoyable none the less. We plan on continuing the series and I hope to return in the future. It was truly amazing and satisfying at the turnouts we had. We had four presentations on Friday and the general SPMC meeting and my Fractional presentation on Saturday. Each session was well attended with over 125 people total at the five sessions. All had over 20 or more attending. It was great to see people interested in learning about paper! One of the most interesting things was that we had 20-30 people at the Friday and Saturday 8a sessions! Thanks to the presenters and a big thanks to President Hewitt and Cindy Wibker of FUN for setting this up. Bob Moon started us off at 8a on Saturday with an introduction to National Banknote collecting. It was well done and even held the interest of a fractional boy like me! He related how he had waited for one note and after years and years, he was able to get it and truly showing that patience is a virtue and persistence pays off! Small size expert Robert Calderman was next presenting “An Introduction to Small Size Currency Collecting.” His presentation focused on the different series of small size notes (but not the smallest size— fractional), and the many different ways one could collect them. I learned a lot about the different seal colors and what series are the most rare and desirable. The ever ebullient, knowledgeable and entertaining Wendell Wolka followed with a talk titled “Enemy at the Gates.” He detailed how New Orleans was impacted during the Civil War and how many merchants printed their own currency, the rarity of same and of course he delved into the less than above the board antics of some of the merchants, bankers and printers. He always does a good job and truly made it very entertaining while teaching! Pierre Fricke finished the day with a nicely done presentation on contemporary confederate counterfeits. He detailed many of the notes found today and the men who were the counterfeit masterminds. Finally, I was able to bring the program to a close on Saturday morning when after a short business meeting and state of the society presentation by President Hewitt, I talked about the Civil War small change crisis, causes and effect and remedies tried. I talked about the five issues of Fractional and even broached the chicken/egg controversy (perf vs. non-perf first issue notes—which came first) and of course went on a tireless tirade defending the greatest man involved in U.S. currency, Spencer Morton Clark! While it was a quick trip, it was very enjoyable and one I would love to do again. So, besides KC- IPMS, mark your calendars and try to make it to the 2020 FUN January 9-12 in Orlando where the show is slated to be held until at least 2023. Until next issue! Enjoy and contribute to our hobby. Benny Texting and Driving—It can wait! ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 146 Where do SPMC members live? That question was recently asked so President Hewitt took all the members in the 48 continental states and using the zip codes on file, created this comprehensive population map. the more densely populated, the more bright green, yellow and red. (ed. note—I had no idea we had so many in the DFW area) ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 147 New SPMC Exhibit Class and Award Structures   The SPMC Awards/Exhibit Committee has made the following changes to the SPMC Exhibit Award Program, which were approved by the Board and will be instituted at the 2019 KC IPMS. Categories: A Five-Class Exhibit award structure as follows:  Federal Issues (Large Size; Small Size; Fractional)  Non-Federal Issues (Obsolete Paper Money, Colonial Paper Money, Confederate States of America Issues, Depression Scrip all eras)  National Bank Notes – all types; all periods  World Paper Money (including Canada and Mexico)  Related Fiscal Items (Checks, Bonds, Stocks, MPC, Ephemera such as post cards and advertising, literature) Certificates will be awarded as follows:  1st Place SPMC Exhibit Award  2nd Place SPMC Exhibit Award  Certificate of Appreciation for all exhibitors Financial Awards will also be instituted as follows:  First Place in all five classes: $100 Cash  Second Place in all five classes: $50 Cash (if awarded)  Best of Show $250 Cash  First Place Single Case Exhibit: $25 (not eligible for Best of Show award) Judging:  Judges will use a custom-made SPMC standard Exhibit Grading sheet/categories.  A minimum of 3 Judges will be selected for the event if available (exceptions may be made by the President or Vice President based on personnel availability)  Judges will be SPMC members in good standing and selected by the President or Vice President.  A minimum score (the number to be determined) will be required to qualify for a First or Second Place Award.  Best of Show will be awarding from the winners of each of the five First Place class winners. Cases:  Each exhibit will be limited to seven (7) cases.  If an exhibitor wants to do a larger exhibit, it will be considered a non-competitive exhibit and not eligible for awards. ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 148         International Paper Money Show Exhibit Judging Sheet Title of Exhibit: Category: Attribute Maximum Score Score PRESENTATION Title/Scope of the exhibit is obvious. 10 Manner of presentation, neatness and eye appeal is good. 15 NUMISMATIC INFORMATION Provides sufficient educational value to the viewer. Numismatic specifications of the exhibited items are described to the extent needed by the exhibit's scope to answer the questions of other numismatists. 10 Does the exhibit present information beyond what is known to the average collector of this type of material. 10 Would a non-collector understand the exhibit. 5 CREATIVITY and ORIGINALITY The exhibit should be novel and imaginative. 10 DEGREE of DIFFICULTY The exhibit should show dedication to collecting and that the numismatic material or related information was difficult to assemble or to present. Examples: multiple rare pieces, new research or a collection that took years to assemble. 15 CONDITION Quality of exhibited material compared to highest reasonably available quality of like material. 10 RARITY Scarcity of the exhibited material without regard to its price. 5 COMPLETENESS Completeness of exhibit material as it relates to the scope implied in the title of the exhibit or other data in the first case of the exhibit. 10 TOTAL 100 Comments:   ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 149 United States Paper Money specialselectionsfordiscriminatingcollectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type ErrorNotes Small Size Type National Currency StarorReplacementNotes Specimens, Proofs,Experimentals FrederickJ. Bart Bart,Inc. website: www.executivecurrency.com (586) 979-3400 POBox2• Roseville,MI 48066 e-mail: Bart@executivecurrency.com Buying & Selling • Obsolete • Confederate • Colonial & Continental • Fractional • Large & Small U.S. Type Notes Vern Potter Currency & Collectibles Please visit our Website at www.VernPotter.com Hundreds of Quality Notes Scanned, Attributed & Priced P.O. Box 10040 Torrance, CA 90505-0740 Phone: 310-326-0406 Email: Vern@VernPotter.com Member •PCDA •SPMC •FUN •ANA WANTED: 1778 NORTH CAROLINA COLONIAL $40. (Free Speech Motto). Kenneth Casebeer, (828) 277- 1779; Casebeer@law.miami.edu 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. kmk050652@verizon.net 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 LFM@LARRYM.com WANTED: Republic of Texas “Star” (1st issue) notes. Also “Medallion” (3rd issue) notes. VF+. Serious Collector. reptexpaper@gmail.com. BUYING ONLY $1 HAWAII OVERPRINTS. White, no stains, ink, rust or rubber stamping, only EF or AU. Pay Ask. Craig Watanabe. 808-531- 2702. Captaincookcoin@aol.com Vermont National Bank Notes for sale. For list contact. granitecutter@bellsouth.net. 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 Amazon.com . AhlKayn@gmail.com Stamford CT Nationals For Sale or Trade. Have some duplicate notes, prefer trade for other Stamford notes, will consider cash. dombongo@earthlink.net 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 tip001@verizon.net. $ MoneyMart $  ___________________________________________________________Paper Money * March/April 2019 * Whole No. 320_____________________________________________________________ 151 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 83/4 X 141/2 $23.00 $101.00 $177.00 $412.00 National Sheet--side open 81/2 X 171/2 $24.00 $108.00 $190.00 $421.00 Stock Certificate--end open 91/2 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 www.DBRCurrency.com 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 * March/April 2019 * Whole No. 320_____________________________________________________________ 152 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 & Coin Convention during March in Rosemont, Illinois. Please visit our Web Site pcdaonline.com 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 summer at the International Paper Money Convention, 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. Or Visit Our Web Site At: www.pcdaonline.com James A. Simek – Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 • Email: nge3@comcast.net PLATINUM NIGHT® & SIGNATURE® AUCTIONS April 24-30, 2019 | Chicago | Live & Online T35 1861 “Indian Princess” $5 PCGS Very Fine 25 T3 1861 Montgomery $100 PMG Choice Very Fine 35 T1 1861 Montgomery $1,000 PMG Very Fine 30 Net T4 1861 Montgomery $50 PCGS Choice About New 58 T27 1861 $10 PMG Very Fine 20 T12 1861 “Manouvrier” $5 PMG Choice Uncirculated 63 EPQ T2 1861 Montgomery $500 PMG Choice Very Fine 35 Selections from the Grand Canyon Collection Inquiries: 800-872-6467, Ext. 1001 Consignment deadline March 4 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 Paul R. Minshull 441002067; Heritage Numismatic Auctions #444000370. BP 20%; see HA.com. 52954