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Table of Contents
Series 1929 $100 NBNs Rarity--Lee Lofthus
$20 Series 1880 LT Serial Number Color Change--Peter Huntoon
Civil War Stamp Money--Steve Feller
Glass-Borah Amendment--Peter Huntoon
Gardiner H. Wright & Co.--Terry Bryan
The Promise of a Florida Soldier--Charles Derby
1940 Emergency Issue of Deventer, The Netherlands--Roeland Krul
UNESCO World Heritage Sites-Algeria--Roland Rollins
The Mystery of the Missing Statue--Tony CHibbaro
Wobus Postal Note--Bob Laub
official journal of
The Society of Paper Money Collectors
ANA Honors Three SPMC Stalwarts
Anderson, Boling & Wolka
America?s Oldest and Most Accomplished Rare Coin Auctioneer
1550 Scenic Ave., Suite 150, Costa Mesa, CA 92626 ? 949.253.0916
470 Park Ave., New York, NY 10022 ? 212.582.2580 ? NYC@stacksbowers.com
84 State St. (at 22 Merchants Row), Boston, MA 02109 ? 617.843.8343 ? Boston@StacksBowers.com
1735 Market St. (18th & JFK Blvd.), Philadelphia, PA 19103 ? 267.609.1804 ? Philly@StacksBowers.com
Info@StacksBowers.com ? StacksBowers.com
California ? New York ? Boston ? Philadelphia ? New Hampshire ? Oklahoma ? Virginia
Hong Kong ? Paris ? Vancouver
SBG PM Aug2023 HLs 230601
LEGENDARY COLLECTIONS | LEGENDARY RESULTS | A LEGENDARY AUCTION FIRM
Featured Highlights from the
STACK?S BOWERS GALLERIES
August 2023 Global Showcase U.S. Currency Auction
Auction: August 14-19, 2023 ? Costa Mesa, CA
Expo Lot Viewing: August 6-11, 2023 ? Pittsburgh, PA
Contact Us for More Information Today!
West Coast: 800.458.4646 ? East Coast: 800.566.2580 ? Info@StacksBowers.com
Fr. 197a. 1863 $20 Interest Bearing Note.
PMG Very Fine 20.
Fr. 2123-G. 1988 $50 Federal Reserve Note. Chicago.
PCGS Currency Very Fine 30.
From the Issie Chaimovitch Collection of Radars.
Fr. 37. 1917 $1 Legal Tender Note.
PMG Gem Uncirculated 66 EPQ.
From the Wisconsin Collection.
Fr. 2173-B. 1990 $100 Federal Reserve Note.
New York. PMG Choice About Uncirculated 58 EPQ.
From the Issie Chaimovitch Collection of Radars.
Fr. 280m. 1899 $5 Silver Certificate Mule Note.
PMG Choice Uncirculated 64.
From the Wisconsin Collection.
Fr. 1600. 1928 $1 Silver Certificate.
PCGS Currency 64 PPQ.
From the Issie Chaimovitch Collection of Radars.
Fr. 2175-A. 1996 $100 Federal Reserve Note. Boston.
PMG Choice Uncirculated 63 EPQ.
Binary-Radar-Rotator S/N.
From the Wisconsin Collection.
MD-44. Maryland. January 1, 1767. $1.
PCGS Banknote Gem New 65 PPQ.
From the Mid-Continent Collection.
SC-153. South Carolina. February 8, 1779. $40.
PMG Gem Uncirculated 65 EPQ.
From the Mid-Continent Collection.
Fr. 1152. San Francisco, California. $20 1870.
The First National Gold Bank. Charter #1741.
PMG Very Fine 25.
CC-59. Continental Currency.
February 26, 1777. $6.
PMG Superb Gem Uncirculated 67 EPQ.
From the Mid-Continent Collection.
Fr. 2221-G. 1934 $5000 Federal Reserve Note.
Chicago. PMG Choice Uncirculated 64 EPQ.
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253 Series 1929 $100 NBNs Rarity--Lee Lofthus
266 $20 Series 1880 LT Serial Number Color Change--Peter Huntoon
269 Civil War Stamp Money--Steve Feller
276 Glass-Borah Amendment--Peter Huntoon
282 Gardiner H. Wright & Co.--Terry Bryan
284 The Promise of a Florida Soldier--Charles Derby
288 1940 Emergency Issue of Deventer, The Netherlands--Roeland Krul
292 UNESCO World Heritage Sites-Algeria--Roland Rollins
294 The Mystery of the Missing Statue--Tony CHibbaro
286 Wobus Postal Note--Bob Laub
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
247
274 Central National Bank of Frederick, MD--J. Fred Maples
Columns
Advertisers
SPMC Hall of Fame
The SPMC Hall of Fame recognizes and honors those individuals who
have made a lasting contribution to the society over the span of many years.?
Charles Affleck
Walter Allan
Doug Ball
Hank Bieciuk
Joseph Boling
F.C.C. Boyd
Michael Crabb
Forrest Daniel
Martin Delger
William Donlon
Roger Durand
C. John Ferreri
Milt Friedberg
Robert Friedberg
Len Glazer
Nathan Gold
Nathan Goldstein
James Haxby
John Herzog
Gene Hessler
John Hickman
William Higgins
Ruth Hill
Peter Huntoon
Glenn Jackson
Don Kelly
Lyn Knight
Chet Krause
Allen Mincho
Clifford Mishler
Barbara Mueller
Judith Murphy
Dean Oakes
Chuck O?Donnell
Roy Pennell
Albert Pick
Fred Reed
Matt Rothert
John Rowe III
Herb & Martha
Schingoethe
Hugh Shull
Glenn Smedley
Raphael Thian
Daniel Valentine
Louis Van Belkum
George Wait
D.C. Wismer
From Your President
Editor Sez
New Members
Uncoupled
Chump Change
Obsolete Corner
Quartermaster
Cherry Picker Corner
249
250
251
298
304
305
308
311
Robert Vandevender
Benny Bolin
Frank Clark
Joe Boling & Fred Schwan
Loren Gatch
Robert Gill
Michael McNeil
Robert Calderman
Stacks Bowers Galleries IFC
Pierre Fricke 247
Greysheet 275
Tom Denly 281
Higgins Museum 283
Fred Bart 289
PCGS-C 290
MPC Book 291
DBR Currency 293
Benny Bolin 295
Bob Laub 297
Lyn Knight 310
FCCB 313
ANA 314
PCDA 315
Heritage Auctions OBC
Fred Schwan
Neil Shafer
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
248
Officers & Appointees
ELECTED OFFICERS
PRESIDENT Robert Vandevender II
rvpaperman@aol.com
VICE-PRES/SEC'Y Robert Calderman
gacoins@earthlink.net
TREASURER Robert Moon
robertmoon@aol.com
BOARD OF GOVERNORS
APPOINTEES
PUBLISHER-EDITOR
Benny Bolin smcbb@sbcglobal.net
ADVERTISING MANAGER
Wendell Wolka purduenut@aol.com
Megan Reginnitter mreginnitter@iowafirm.com
LIBRARIAN
Jeff Brueggema
MEMBERSHIP DIRECTOR
Frank Clark frank_clark@yahoo.com
IMMEDIATE PAST PRESIDENT
Shawn Hewitt
WISMER BOOk PROJECT COORDINATOR
Pierre Fricke
From Your President
Robert Vandevender II
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Paper Money * July/August 2020
6
jeff@actioncurrency.com
LEGAL COUNSEL
n
Mark Anderson mbamba @aol.com
Robert Calderman gacoins@earthlink.com
Matt Drais stockpicker12@aol.com
Mark Drengson markd@step1software.com
Jerry Fochtman jerry@fochtman.us
Pierre Fricke pierrefricke@buyvintagemoney.com
Loren Gatch lgatch@uco.edu
William Litt billlitt@aol.com
J. Fred Maple s maplesf@comcast.net
Cody Regenitter cody.reginnitter@gmail.com
Andy Timmerman andrew.timmerman@aol.com
Wendell Wolka purduenut@aol.com
Greetings. During our June Executive Board meeting, we held an election
for the four officers of our organization. I would like to thank the Board of
Governors for selecting me as your President for my second and final 2-year
term. Our Vice President and Secretary Robert Calderman along with our
Treasurer Robert Moon will also continue serving in those positions for the
next two years.
For a time, it appeared we were going to have a contested election for our
Board of Governors. During this election, we were planning to have voting
via electronic means as the primary method while continuing to have the
ability to distribute paper ballots to those individuals who requested one. As
some of you may know, after many years of serving on our Board, both Mark
Anderson and J. Fred Maples decided not to run for reelection but to
continue to support the organization as regular members. This decision by
them freed up two additional spots on our board eliminating the need for a
contested election this year. I am happy to welcome two new members to
our Board of Governors, Derek Higgins, and Raiden Honaker. You can read
more about them in this issue.
Although not needed for this election, it made sense to continue with a
revision of our bylaws to accommodate the new electronic voting process
potentially needed in the future. The new updated bylaws were ratified by
our Executive Board on June 12th and are available at our website for review.
During the third week of June, after my submittal deadline for this article, we
are planning to staff an SPMC table at the Long Beach Expo. If this show
turns out to be like the previous ones, we should see a significant amount of
traffic with many people stopping by our table to either say hello or to
inquire about our organization. I will be walking the floor for a day at the
upcoming Summer FUN show in Orlando, but the SPMC will not have a
table. In August, we will be heading to Pittsburgh and helping to staff the
SPMC table at the ANA World air of Money. I look forward to seeing some
of you there.
Looking forward, one of the things our Society needs to consider is
succession planning for key positions. If you think you are qualified and
interested in potentially becoming our Secretary or Treasurer at some time in
the future, please contact one of our board members. I am sure our highly
efficient Treasurer, Bob Moon, and Secretary, Robert Calderman, would be
happy to work with an understudy!
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
249
Terms?and?Conditions?
The?Society? of? Paper?Money? Collectors? (SPMC)? P.O.?? Box?7055,?
Gainesville,?GA??? 30504,?publishes??? PAPER??? MONEY?(USPS?? 00?
3162)? every? other? month? beginning? in? January.? Periodical?
postage? is? paid? at? Hanover,? PA.? Postmaster? send? address?
changes? to? Secretary? Robert? Calderman,? Box? 7055,?Gainesville,?
GA? 30504.??Society? of? Paper?Money? Collectors,?Inc.? 2020.? All?
rights? reserved.? Reproduction? of? any? article? in?whole? or? part?
without?written?approval? is?prohibited.? Individual?copies?of? this?
issue?of?PAPER?MONEY?are?available? from?the?secretary? for?$8?
postpaid.?Send?changes?of?address,?inquiries?concerning??? non??? ????
delivery??? and??? requests??? for??? additional?copies?of?this?issue?to?
the?secretary.?
MANUSCRIPTS?
Manuscripts?????not?????under??????consideration??????elsewhere?and?
publications? for? review?should?be?sent? to? the?editor.?Accepted?
manuscripts? will? be? published? as? soon? as? possible,? however?
publication? in? a? specific? issue? cannot? be?guaranteed.?Opinions?
expressed? by? authors? do? not?necessarily? reflect?those? of? the?
SPMC.???Manuscripts?should?be? submitted? in?WORD? format? via?
email?(smcbb@sbcglobal.net)? or? by? sending?memory?stick/disk?
to? the? editor.? Scans? should? be? grayscale? or? color? JPEGs? at?
300?dpi.?Color? illustrations?may?be?changed?to?grayscale?at? the?
discretion? of? the? editor.? Do? not? send? items? of? value.?
Manuscripts?are? submitted?with?copyright?release?of?the?author?
to? the? editor? for? duplication? and? printing?as?needed.?
ADVERTISING?
All?advertising?on?space?available?basis.?Copy/correspondence?
should?be?sent?to?editor.?
All?advertising?is?pay?in?advance.??Ads?are?on?a??good?faith??
basis.? Terms?are??Until?Forbid.??
Ads? are? Run? of? Press? (ROP)? unless? accepted? on? a? premium?
contract?basis.?Limited?premium?space/rates?available.?
To?keep?rates?to?a?minimum,?all?advertising?must?be?prepaid?
according?to?the?schedule?below.??In?exceptional?cases?where?
special? artwork? or? additional? production? is? required,? the?
advertiser? will?be?notified? and? billed?accordingly.? Rates? are?
not?commissionable;?proofs?are?not? supplied.? SPMC? does?not?
endorse?any?company,?dealer,? or? auction? house.? Advertising?
Deadline:?Subject?to?space?availability,?copy?must?be?received?
by? the? editor? no? later? than? the? first? day? of? the? month?
preceding? the? cover?date? of? the? issue? (i.e.? Feb.? 1? for? the?
March/April? issue).?Camera?ready?art?or?electronic?ads? in?pdf?
format?are?required.?
ADVERTISING?RATES?
Editor Sez
Benny Bolin
Required?file??? submission?format??? is??? composite??? PDF?v1.3?
(Acrobat?4.0???compatible).???If???possible,?submitted?files?should?
conform?to?ISO?15930?1:?2001?PDF/X?1a?file?format?standard.?
Non?? standard,? application,? or? native? file? formats? are? not?
acceptable.?Page? size:?must? conform?to?specified?publication?
trim? size.? Page? bleed:? must? extend?minimum? 1/8?? beyond?
trim?for?page?head,?foot,?and?front.? Safety?margin:? type? and?
other? non?bleed? content?must? clear? trim?by?minimum?1/2?.??
Advertising?c o p y ? shall?be?restricted?to?paper?currency,?allied?
numismatic?material,?publications,???and???related???accessories.???
The?SPMC? does? not? guarantee?advertisements,? but? accepts?
copy? in?good?faith,? reserving? the?right? to? reject?objectionable?
or? inappropriate? material? or? edit? ? ? copy.? The? ? ? ? ? SPMC??
assumes????? no????? financial?????? responsibility?for? typographical?
errors? in? ads? but? agrees? to? reprint? that?portion?of?an?ad? in?
which?a?typographical?error?occurs.? Benny
Space?
Full?color?covers?
1?Time?
$1500?
3?Times?
$2600?
6?Times
$4900
B&W?covers? 500? 1400? 2500
Full?page?color? 500? 1500? 3000
Full?page?B&W? 360? 1000? 1800
Half?page?B&W? 180? 500? 900
Quarter?page?B&W? 90? 250? 450
Eighth?page?B&W? 45? 125? 225
Summer is here and it came with a vengence. Record setting and
dangerous heat and the humidity made it feel about 10 degrees hotter
than it really is. Here is Texas, we have one word for that
phenomenon--SUMMER! All kidding aside, stay safe out there and
limit your outdoor activities and DRINK LOTS OF WATER--H2O,
Agua, Wasser, Acqua, Aqua!
The front cover of this issue is dedicated to three truly great men
in SPMC circles and paper collecting in general--Mark Anderson,
Joe Boling & Wendell Wolka. The ANA awarded Mark with a
Medal of Merit and Wendell the 2023 Lifetime Achievement Award.
I have been fortunate enough to know and work with both for many
years, on the board, as an officer and friend. My fondest memories of
the two are having Mark drive me and my family around NYC--he
can put NYC taxi drivers to shame and of Wendell as emcee of our
annual Tom Bain breakfast Raffle! Both have a wit that is sharp,
unparalelled knowledge and humor that is infectious. You can never
be in a bad mood when they are around. Mark is on the board of the
Higgins Museum and has received an ANA President's award.
Wendell has received the Glenn Smedly award from the ANA and is
a prolific writer, researcher and a workhorse for the SPMC. Both are
multiple award winners from the SPMC. Both have received the
Nathan Gold Award (our highest award), an Education, Research
and Outreach award, and multiple Presidents awards. In addition,
Mark received the Best-in Show exhibit award for his exhibit on
Swedish Plate Money and Wendell the Founders award, a Forrest
Daniel award and a Wismer award both for literary excellence and
was named a Numismatic Ambassador award in 1985.
I have worked with Joe for all my years as editor. He has been a
great teacher and author. He has co-authored Paper Money's
Uncoupled column for many years with his buddy, Fred Schwan. Joe
has also received the Best in Show exhibit award from the SPMC, a
Forrest Daniel literary award and was inducted into the SPMC Hall
of Fame in 2017. He also has won an ANA medal of Merit, the
Glenn Smedley award, The Farran Zerbe Memorial award, an
Exemplary Service and President's award.
The SPMC and the hobby in general say collectively
CONGRATULATIONS & THANK YOU to these three men!
My apologies for not stating that Howard Cohen was FCCB
member number 37. I apologize for this oversight.
I made a plea for short to semi-short articles (1-4 pages) in
the last issue. You responded well. I am asking this time for
4-8 page articles. Write about anything paper related and see
your name as a by-line.
Have a happy and safe summer and I hope to see you all
some day at a show although I dont generally get to many.
250
The Society of Paper Money
Collectors was organized in 1961 and
incorporated in 1964 as a non-profit
organization under the laws of the
District of Columbia. It is
affiliated with the ANA. The
Annual Meeting of the SPMC is
held in June at the International
Paper Money Show. 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. A parent
or guardian must sign their
application. 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.
WELCOME TO OUR NEW MEMBERS!
BY FRANK CLARK
SPMC MEMBERSHIP DIRECTOR
NEW MEMBERS 05/05/2023 NEW MEMBERS 06/05/2023
15572 Don Smith, Don Kelly
15573 Brian Bazarnicki, Greensheet
15574 Mark Agisotelis, Currency
Face Book Group
15575 Melissa Lumaye, Website
15576 Robert Dreaper, Website
15577 Logan Track, Rbt Calderman
15578 Walt Sanjuan, Gary Dobbins
15579 Jossie Hernandez, Website
15580 June Latorre, Website
15581 Benjamin Doss, Website
15582 Cary Belger,
15583 Carlos Fuster,
15584 Bill Fannon, Website
15585 Scott Garfinkel, Website
REINSTATEMENTS
None
LIFE MEMBERSHIPS
LM465 Mike W. Thompson, Website
Dues Remittal Process
Send dues directly to
Robert Moon
SPMC Treasurer
104 Chipping Ct
Greenwood, SC 29649
Refer to your mailing label for when
your dues are due.
You may also pay your dues online at
www.spmc.org.
15556 Joseph Ford, Website
15557 Rich Voninski, Website
15558 Jeffrey Harmon, Website
15559 Daniel Fellows, Website
15560 Mohammed Khashabi, Website
15561 Aaron T. Allan
15562 George Cuhaj, Website
15563 Jim Wendoll, Michael McNeil
15564 Richard Stachurski, Website
15565 Stephen Fitzmartin, Website
15566 Karl Howard, Raiden Honaker
15567 Louis Padgug, Website
15568 Will Harvey, Website
15569 Angel Navarro Zayas, Website
15570 Troy Snelling, Frank Clark
15571 Steven Arck, Jeff Brueggeman
Reinstatements
None
LIFE MEMBERSHIPS
Correction - LM465 Liran Max Renert,
Correction - LM466 Mike W. Thompson,
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Governor Elections
Due to current sitting governors Mark Anderson and Fred Maples deciding not to run for re-election, the following
two governors who had submitted all required documents for positions and the two current governors who were
standing for re-election are hereby elected by the board of governors by vote per our bylaws.
Returning Governors
Loren Gatch
Loren was first elected to the
board of governors in 2015. He
has taught political science at the
University of Central Oklahoma
since 1998. With collecting
interests in scrip, emergency
monies, and different types of
fiscal paper, Gatch has published
on these topics in Paper Money since the mid-2000s.
For the last eight years he has produced the weekly
?News & Notes? blog that is received by SPMC
members as an email and which appears on the SPMC
website. He also publishes occasional pieces about
fiscal paper on a separate blog on the website.
William Litt
William Litt has been an SPMC
governor since 2020. He started
collecting U.S. paper money in
1980, at the age of thirteen, after
having collected coins for several
years. Since the early 1980s, Bill
has been an active collector of, and
part-time dealer in, U.S. currency, with a particular
love of National Bank Notes and National Bank
memorabilia. He collects Nationals from seven
counties in Northern and Central California. Bill
graduated from Cornell University and the UCLA
School of Law, and has practiced law since 1993.
New Governors
Derek Higgins
Derek was born and raised in
Lincoln, Nebraska, and started
his collecting journey as a child
with stamps, National
Geographic Magazines, and
coins/paper money. His interest
really took off when his
grandmother gave him an old Army sock full of coins
and tokens collected during his grandfather?s WWII
service in Europe. Regular visits to The Coinery in
Lincoln were the gateway to diving deeper into the
hobby, learning about coins and paper money both
world and domestic. A devastating house fire in 2011
decimated his coin collection, but by some divine
miracle his paper money collection survived because
he had it with him in his college dorm the day of the
fire. From then on paper money, specifically United
States small size varieties and regular issues, North
Idaho Nationals, and Lancaster County Nebraska
Nationals have become his collecting focus. Now
living in Aurora, Colorado, he and his wife have a
budding online dealer business and work diligently to
advance the profile of the hobby through social media
and their presence at local shows.
Raiden Honaker
Raiden was born and raised in the
small town of Vidalia, Georgia,
and found his passion in
numismatics at the young age of 8.
Ever since, he has been actively
collecting, expanding his
knowledge, and has maintained his
passion for nearly two decades. His love and specialty
for paper money began when he first learned of
National Bank Notes in his early teens. Raiden became
a part-time dealer of coins and paper currency in his
late teens after moving to Carrollton, Ga to attend the
University of West Georgia. There, he graduated with
a BBA in Management and Marketing in 2019, and a
Master of Business Administration in 2020. In January
2021, he joined Heritage Auctions as a US Paper
Currency Consignment Director and Specialist. He is
a member of the SPMC, IBNS, ANA, Texas
Numismatic Association (TNA), Georgia Numismatic
Association (GNA), Paper Money Collectors of
Michigan (PMCM), and the CSA Trainmen. An
exceptionally avid collector of Georgia National Bank
Notes, he is currently working on a publication on the
history and background of his home state?s National
Banks during the issuing period.
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Series of 1929 $100 Type 2 Nationals
Rarity viewed through the
Hickman & Oakes Auction Sales
Lee Lofthus
Introduction
he 1929 $100 Type 2 national bank notes are the rarest denomination and type of
the small size nationals. Excepting the $500 and $1,000 large size nationals, they
are the scarcest of any national bank note type and denomination. Only 403 $100
Type 2 notes are recorded in the National Bank Note Census. Very few appear on the market each
year, and their scarcity has served to keep them largely out of the current numismatic spotlight.
This article provides a brief background on the conditions that spawned the $100 Type 2 notes,
and looks back to the heyday of early national bank note auctions in the 1970?s and 1980?s to see
the prevalence of these notes in the marketplace when national bank note collecting first caught
fire.
T
Figure 1. Rare Hawaii $100 Type 2. While $100 Type 1 notes from the bank are
common, Type 2 notes are a different matter, with only 3 reported. The finest
recorded is shown above. All the $100 Type 2 notes carry the bank?s third title.
Image courtesy James Simek.
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Type 2 National Bank Notes
Type 2 nationals are distinguished by two features: sequential serial numbers for each note
(versus the sheet numbers found on Type 1 notes) and the addition of a second set of charter
numbers printed in brown ink on the face of the notes adjacent to the serial numbers. These
improvements came as multiple offices in the Treasury Department sought to address ongoing
complaints with the Type 1 nationals. A full discussion of the problems and Treasury Department
deliberations that led to the Type 2 designs is in the Huntoon-Shiva Encyclopedia (2022) and
Huntoon/Lofthus/Simek (2011).
Arrival in the Great Depression?s Shadow
The Bureau of Engraving and Printing (BEP) began the delivery of Type 2 national bank
notes on May 27, 1933. The first $100 Type 2 notes were sent to the Comptroller of the Currency
on June 24, 1933. The nation was deep into the Great Depression and the banks were in crisis.
There were 7,536 national banks operating as of June 30, 1929. In October of 1929 the
stock market crashed. By early March 1933, just 5,916 national banks were operating. By June 30,
1934, 5,422 were in operation but only 4,600 were issuing national bank notes. It was an
inauspicious time for the Type 2 notes to come on the scene.
On March 6, 1933, newly inaugurated president Franklin Roosevelt declared a bank
holiday in an effort to restore confidence in banks and stop runs by frightened depositors. The
holiday closed the nation?s banks until they could be examined by federally-appointed bank
examiners for soundness before reopening. Only 4,510 were licensed to open without restriction
on March 13-15, although others were able to exit receivership in the months ahead.
Just as the Type 2 notes arrived, overall circulation of national bank notes began declining.
There had been a temporary surge in circulation in 1932 and early 1933 due to an extraneous
proviso added onto the Federal Home Loan Bank Act legislation that extended the circulation
privilege to a broader array of government bonds for a period of three years. The additional bonds
temporarily pumped more national bank notes into circulation to help ease the money shortages.
Circulation of nationals peaked in May 1933, but declined thereafter.
Figure 2. The only $100 Type 2 issue from Rhode Island, and the only national
bank to use ?hospital? in its title. The Rhode Island Hospital Trust Company
opened in 1867, founded by the nearby hospital?s trustees. In December 1933, the
trust operations and banking operations were separated, and the bank operation
took national charter 13901. Author image.
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In the 1933 Depression days of ?brother, can you spare a dime?? a $100 bill was a
significant amount of purchasing power, so the demand for $100 bills was limited. It is no wonder
the $100 Type 2 notes are so scarce.
Figure 4. Texas had the most
banks that issued $100 Type
2 notes. Dallas had two of
eight issuing banks. Even the
two big city Dallas banks
combined issued only 3,229
$100 Type 2 notes. The
smallest Texas issuer was the
Central National Bank of
McKinney with just 36
$100s. Author image.
Figure 3. A run on a bank in New York City, June 1931. By the time Type 2 nationals were
produced in May 1933, the Great Depression had hit the nation with a vengeance, causing more
national banks to fail and curtailing the need for national bank notes. The Treasury Department
ended national bank note issuance in the summer of 1935, making the $100 Type 2 nationals a
short-lived type note. Courtesy FPG/Hulton Archive/Getty Images, Federal Reserve History.org
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Basic Issue and Census Data
Only 37 banks issued $100 Type 2 notes. According to the Warns/Huntoon/Van Belkum
blue book, ?The National Bank Note Issues of 1929-1935,? nine other national banks had $100
Type 2 notes printed by the Bureau of Engraving and Printing (BEP) and delivered to the
Comptroller of the Currency Issue Division, but the notes were never sent to the banks and
ultimately canceled. Thirty-seven out of approximately 4,600 banks then issuing notes means less
than 1 percent of the national banks with circulation issued $100 Type 2 notes. The National
Currency Foundation (NCF) National Bank Note (NBN) Census lists 403 $100 Type 2 notes out
of 426,421 nationals in the census (as of June 27, 2022), roughly 1/10th of a percent of the recorded
notes.
Other current sources reinforce the scarcity of the $100 Type 2 notes. The PMG census
records 94 notes. The Heritage Auction Archives show less than 120 notes, compared to over 700
Lazy Deuces (with no attempt to weed out duplicate listings).
The $100 Type 2 nationals are offered so infrequently that it raised the question whether
they were always this scarce in the market, or if they were once more plentiful and have just gone
underground into tightly held collections. To pursue this question, there seemed no better way than
to conduct a survey of the thirty-eight Hickman & Oakes auction sales.
Hickman and Oakes
Hickman & Oakes was one of the top national bank note auction firm in the early days
when national bank note collecting took off. While the firm auctioned other currency as well, it
was in the national bank note arena that the firm gained most attention.
The H&O auctions were a
partnership of John Hickman and Dean
Oakes operating from Iowa City, Iowa.
H&O were the magnets for better
national material, and they reveled in
offering great material fresh from the
weeds. With offerings that included
Territorials, black charter $5 original
series notes, lazy deuces, and $100 Red
Seals, the array of nationals they
offered tantalized collectors.
Hickman and Oakes, together
and/or individually, were frequently
go-to sources when hoards of nationals
were discovered. In the early 1970?s,
Hickman, his earlier partner John
Waters, and collector Mort Melamed
purchased the famed Ella Overby
hoard from Starbuck, Minnesota.
Figure 5. The H&O catalogs were pamphlet size with black and
white photographs of the better lots. They long pre-dated the
glossy catalogs of today that come packed with high resolution
digital images, not to mention convenient online access. But the
H&O lot descriptions were filled with engaging lot descriptions,
well-informed commentary, and outright enthusiasm and
appreciation for the notes. Author copies.
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Hickman and Oakes bought the hoard of large size nationals that surfaced from charter
3939, The First National Bank of Wood River, Nebraska, virtually in their own backyard given
their Iowa City location. Before the H&O partnership, Oakes and his coin shop partner Don Jensen
acquired notes from the famed Oat Bin Hoard of old currency, including dozens of Original Series
and Series of 1875 nationals.
H&O conducted thirty-eight sales from 1976 to 1989. Sale No. 1 featured two key
collection of nationals, one by state seals and one by state capitals, popular pursuits at the time.
Fabulous notes, including two Alaska?s and the Series 1882 FNB of Tallahassee $100 Brown
Back, were sold in page after page. H&O was the annual auctioneer at a half dozen or so early
Memphis paper money shows, with the sales always bringing excitement.
September 1989, the 38th Sale, was the last H&O auction. The sale highlighted the Del
Bertschy collection of Wisconsin national bank notes. The catalog announced it would be the last
H&O sale. John Hickman went on to hold 19 sales under the Hickman Auctions name with his son
Rick, and Dean Oakes continued his longstanding separate business offering fixed price lists to a
large following of collectors of U.S. currency, large and small.
The H&O $100 Type 2 Survey Results
Despite over 10,000 lots sold in 38 sales, $100 Type 2 notes were only offered 24 times in
the H&O sales. In contrast, H&O offered 77 Lazy Deuces. Table 1 offers a comparison of how
many $100 Type 2 notes were sold vs. a selection of other highly sought-after national types. More
large size early-series $100 bills (Original, 1875, and 1882 series combined) were offered by H&O
than $100 Type 2 notes.
While cataloger bias can skew the offerings of certain notes, I don?t believe that is a
material factor in the Table 1 comparisons. H&O were a major market-maker for nationals at the
time, and both consignors and H&O themselves were financially motivated to offer good notes for
sale.
There is every indication from their lot descriptions that H&O was eager to offer a better-
type national like a $100 Type 2, regardless of condition. There is no indication any $100 Type 2
notes were omitted from sales due to space or other elective limitations.
Table 1. Hickman and Oakes Auctions
Sales Frequency by Selected Type
1976 to 1989*
Type of Note
Number of
Lots
Alaska Nationals - Large & Small 15
Lazy Deuces - Original & 1875 Series 77
$100 National - Original, 1875, and 1882 Series 39
$100 National - 1902 Red Seals 12
$100 National - Series 1929 Type 2 24
*omits Sale 34, full data unavailable, but no $100T2 were included
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Table 2 shows the H&O $100 Type 2 notes offered in the 38 sales. A total of 24 lots were
offered over 14 years, comprising 22 different notes. Table 2 is a delight to peruse, and several
notable things jump out.
The first observation is that in the early days of nationals, these notes were modestly priced.
Most sold in the $200 range, slightly less for the more common the Bank of America and Live
Stock National Bank notes, and slightly more for the scarcer banks. And these are prices for notes
that were $100 face value. The purchasers were not risking a lot of money on their acquisitions!
Even the unique Allenhurst NJ note brought only $308 in 1985. Of course, in those days, issue and
census information was in its infancy, and bidders would not know if a given lot was merely the
first of several notes to come along. In the case of the Allenhurst note, it is now thirty-seven years
later and the note is still unique.
None of the $100 Type 2 lots brought big money until H&O Sale No. 28, the 1985
Memphis auction. There, the unique (and still unique) charter 11312, FNB of Lawrence County at
Walnut Ridge, Arkansas note (see Figure 6), sold for $1,150. Hickman?s lot description says it
all:
Lot 362. ?Talk about a miracle of survival! This note, from the only bank in
Arkansas that issued this rare type, and one of only 72 notes placed in circulation,
turned up in Montana in 1982. The random survival of a well circulated note as
rare as this one is much more exciting than a note put away when it was issued.
Signatures of J.E. Krone and J.H. Myers, and light rust marks, as seen in photo.
A note can?t get much rarer than this, certainly not a 1929 note. Sure to be an
exciting lot and to be worth whatever it brings, which will surely be in excess of
$500.?
For aficionados of bank officers, J. E. Krone?s signature as cashier on the Walnut Ridge note is a
puzzle. Per the Rand McNally banker?s directories of July 1933 and the first 1934 issue, which
Figure 6. This is the only recorded $100 Type 2 note from this small issuing
Arkansas bank. Just twelve sheets totaling 72 notes were issued in this small town
of roughly 2,000 people in 1930. This note was the single highest-priced $100
Type 2 note sold in any H&O sale. Image courtesy Heritage Auctions.
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span the December 6, 1933 delivery date of the notes, the cashier in 1933 was L. B. Sharp (1933)
and in 1934 it was E. L. Moore (1934). Pollock?s database of bank officers agrees. Krone is also
unlisted in the bank officer search on the SPMC Banks & Bankers (1782-1935) database, but he
is listed as vice president in the 1933 and 1934 Rand McNally directories. The bank existed since
1919 without issuing notes, and in 1933 it transitioned to its second title, changing from the First
National Bank of Black Rock, Arkansas, to The First National Bank of Lawrence County at Walnut
Ridge, Arkansas. The two locations were barely nine miles apart, both in Lawrence County.
Perhaps Krone functioned as both VP and cashier during the transition period before new cashier
Moore arrived. Whatever the reason, it is Krone?s signature as cashier on the sole known note from
the bank.
Table 2 Census of Hickman & Oakes Lot Listings
for Series 1929 $100 Type 2 Notes
24 lots representing 22 notes
Sale Charter Catalog Price
No. Date Lot No. Bank, Location, and Serial Number if Available Grade Realized
2 4/11/1977 18 13044 Bank of America, San Francisco, CA XF 179$
10 4/10/1980 352 4295 FNB of New Braunfels, TX S/N A001078 VF 550$
11 9/24/1980 23 13044 Bank of America, San Francisco, CA VF 150$ *
16 3/24/1982 51 13674 Live Stock NB of Chicago, IL F+ 180$
17 6/18/1982 106 13044 Bank of America, San Francisco, CA AVF 160$
18 11/30/1982 19 13044 Bank of America, San Francisco, CA F+ 125$
74 13674 Live Stock NB of Chicago, IL F+ 121$
244 10865 Winona National and Savings Bank, MN S/N A000102 VG 200$
484 14219 NB & Trust Company of Erie, PA AVF 225$
570 13743 Mercantile NB at Dallas, TX VG 200$
19 3/30/1983 302 14219 NB & Trust Company of Erie, PA S/N A000314 AVF 242$
20 6/29/1983 11 13044 Bank of America, San Francisco, CA VG 150$ *
23 3/27/1984 38 13674 Live Stock NB of Chicago, IL VG/F 205$ *
25 10/30/1984 264 3913 Exchange NB of Colorado Springs, CO VF 250$ *
27 3/27/1985 218 12891 Allenhurst NB and Trust Co., NJ S/N A000018 VG-F 308$
28 6/15/1985 362 11313 FNB of Lawrence Cty at Walnut Ridge, AR S/N A00056 VG 1,150$
374 13044 Bank of America, San Francisco, CA XF 190$
29 11/16/1985 1317 4295 FNB of New Braunfels, TX S/N A001078 VF 550$ *
31 6/25/1986 52 13759 American NB at Indianapolis, IN F-VF 304$
32 11/14/1986 163 11313 FNB of Lawrence Cty at Walnut Ridge, AR S/N A00056 VG 1,418$
724 14219 NB & Trust Company of Erie, PA VF 300$ *
793 4070 City NB of Bryan, TX S/N A000021 XF "sev. hundred"*
35 6/25/1988 82 13674 Live Stock NB of Chicago, IL VF 275$
225 10865 Winona National and Savings Bank, MN S/N A000005 VF+ 750$
Notes: 1) bolded lot numbers indicate lots with photographs
2) *indicates the lot estimate is shown where the price realized was unavailable
3) the two notes sold twice were the Walnut Ridge AR note and the New Braunfels TX note.
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Another takeaway from Table 2 is that almost half (10 of 22) the Type 2?s sold by H&O
were from the two most common banks, charter 13044 Bank of America National Trust and
Savings of San Francisco, and charter 13674 The Live Stock National Bank of Chicago. That
relative prevalence has continued over time, with those two banks now accounting for 57 percent
of the Type 2 $100?s in the current NBN Census.
The $100 Type 2 notes were highly prized despite most offerings being well circulated
grades. Certainly H&O sales were of an era when notes were judged primarily on their rarity and
the wonder of their survival against long odds. Collectors today striving for high grade examples
of $100 Type 2 notes will have only a few from which to choose. Using the PMG census as a
sample, only four of 94 PMG-grade $100 Type 2 notes are uncirculated, and the NBN Census
shows about a dozen uncirculated notes.
Despite being issued by just 37 banks and in small numbers, the $100 Type 2 notes have a
surprising variety to them. With a territorial issue, a major titling error, notes with famous
pedigrees, and plenty of interesting back stories, a lot of numismatic interest is packed into a few
scarce notes.
$100 Type 2 Rarities Abound
Eight of the 37 $100 Type 2 issuing banks have no known notes. Another 12 banks have
only one or two known notes. See Table 3 for a complete list of the $100 Type 2 issuing banks
and current census.
Over half the 37 banks are represented by zero to two notes, so the most collectible notes
come from less than half the issuing banks, and even most of those are few and far between.
The $100 Type 2 notes from Maryland are, so far, an impossibility to complete. Notes are
known from only two of the three issuing banks. See Figure 7. Maryland had three $100 Type 2
banks that issued a combined total of 93 notes. Not sheets, notes! Maryland boasts the single rarest
$100 Type 2 issuer, Ch. 5471, the FNB of Southern Maryland of Upper Marlboro. The bank issued
just 13 $100 Type 2 notes. None are known.
Figure 7. No national
banks in Baltimore,
Maryland?s largest city
and its largest commercial
center of the national era,
issued $100 Type 2
nationals, but these two
small banks on the eastern
shore did. Each of these
banks has two surviving
notes in the current
census. The issuing
numbers are astoundingly
low: the Salisbury bank
issued 45 notes and the
Cambridge bank issued
35. Images courtesy Fred
Maples and Heritage
Auctions
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Table 3 The 37 Banks Issuing $100 Type 2 National Bank Notes
in Ascending Order Based on Notes Issued
Notes Notes
Charter Bank State Issued in Census
5471 FNB of Southern Maryland of Upper Marlboro MD 13 0
3990 NB of Coatsville PA 24 0
5880 Farmers and Merchants NB of Cambridge MD 35 2
5118 Northampton NB of Easton PA 36 1
14236 Central NB of McKinney TX 36 0
3250 Salisbury NB MD 45 2
13703 Birmingham NB MI 48 0
4260 Citizens NB of Covington KY 56 2
14021 FNB in Boulder CO 60 1
4695 FNB of Brownwood TX 67 2
11312 FNB of Lawrence County at Walnut Ridge AR 72 1
12997 Franklin Square NB NY 72 0
12311 FNB of Ferrum VA 72 1
2154 FNB of Belleville IL 88 0
12891 Allenhurst NB and Trust Company NJ 132 1
10865 Winona National and Savings Bank MN 144 10
14285 Mount Olive NB IL 250 7
13775 Citizen NB of Hampton VA 252 0
13893 Edgewater NB NJ 270 2
13758 NB of Grand Rapids MI 288 4
13676 Witchita NB of Witchita Falls TX 384 5
94 FNB of Port Jervis NY 636 2
5550 Bishop NB of Hawaii HI 682 3
13759 American NB at Indianapolis IN 696 8
9353 Houston NB TX 713 5
3913 Exchange NB of Colorado Springs CO 733 10
13648 Commercial NB in Shreveport LA 751 7
4070 City NB of Bryan TX 889 11
14219 NB and Trust Company of Erie PA 1,017 22
13688 Hibernia NB in New Orleans LA 1,111 10
4295 FNB of New Braunfels TX 1,141 13
13743 Mercantile NB at Dallas TX 1,234 9
13901 Rhode Island Hospital NB of Providence RI 1,611 20
12186 Republic NB and Trust Company of Dallas TX 1,995 10
13681 NB of Commerce in Memphis TN 3,600 0
13674 Live Stock NB of Chicago IL 5,856 61
13044 Bank of America Nat. Trust and Savings Assoc. CA 41,112 172
TOTAL 66,221 404
Notes: 1) Banks canceling their entire $100T2 note deliveries omitted from this table.
2) Notes Issued data from Kelly 6th Ed. (2008)
3) Census numbers from NBN Census, courtesy the National Currency Foundation.
Ch. 13743 count adjusted upward by 1 for author's note not yet in online census.
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Some $100 Type 2 notes come with illustrious pedigrees. The Winona National and
Savings Bank, Winona, Minnesota, has 10 notes known today, a healthy number given its small
issue of 144 notes. One of those is the serial number 5 note, ex Amon Carter, among others. H&O
sold the note in their 1988 Memphis Sale No. 35. See Figure 8. Another Winona prize is the
uncirculated serial number 7 note sold in 2018 in the Davidson collection of $100 type notes.
Hawaii Territorials
The $100 Phantoms of Memphis
One of the most prolific issuers of $100 Type 2 notes, in theory at least, was charter 13681,
the National Bank of Commerce in Memphis, Tennessee. Per Kelly, the bank issued 3,600 $100
Type 2s, exceeded in number by only the Bank of America and the Live Stock National Bank
issues. Yet, not a single National Bank of Commerce $100 is known today. There are four $50
Type 2 notes reported out of 14,760 issued, but no hundreds. What is going on?
The National Bank of Commerce is an interesting case study in what was meant by national
bank circulation. The bank was organized on April 29, 1933. It was well capitalized and purchased
$1 million in 2 percent bonds carrying the circulation privilege.
The Comptroller?s Currency and Bond ledgers show clearly the BEP delivered 4,980 $100
Type 2 notes to the Comptroller?s vault on August 22, 1933 (along with $50 Type 2 stock). On
September 2, 1933, the Comptroller?s office sent the bank its million dollars in circulation,
consisting of 12,800 $50s and 3,600 $100s.
Yet, at the end of December 1933, when it came time to report its taxable circulation to the
Comptroller, the bank reported zero (Pollock 2021). Next year, at the end of December 1934, the
bank again reported zero circulation. Since $50 Type 2 notes from the bank?s stock are known to
collectors, what was the bank doing?
Pulling the Currency and Bond Ledger from the National Archives, the story became clear.
Sure enough, the $1 million in notes were sent to the bank September 2, 1933, but the notes were
never released, hence the bank could justifiably report no circulation each year.
Examination of the bank?s redemption ledger from 1933 onward shows not a single note
of any kind was ever redeemed. The notes never left the bank before July 17, 1935 when the bank?s
bonds were redeemed per Treasury?s bond call that ended national bank circulation.
Figure 8. This Winona National and Savings Bank note was the last $100 Type 2
note H&O sold at auction. It was Lot 225 in Sale 35, the Memphis sale of June
24-25, 1988. The note has had several illustrious owners, and passed through the
hands of H&O, Peter Huntoon, and Lyn Knight. It was part of the serial number 5
collections of Amon Carter and later Dick Erett. Image courtesy Lyn Knight.
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The Kelly reference shows the 3,600 $100 Type 2?s delivered to the bank, and showed the
Out in 1935 circulation to be $1 million. But, what was hidden was the fact the bank never released
the notes during the national era. They earned interest on their robust $1 million in bonds but
avoided paying circulation taxes on the notes.
Once the bonds were called and the proceeds had been deposited with Treasury to end the
bank?s circulation tax liability, the notes became ordinary vault cash. We know the $50s were
released, but what happened to the $100s is unknown. They are true phantoms, likely redeemed
87 years ago.
American National Bank at Indianapolis Errors
In terms of offering something for everyone, the small pool of $100 Type 2 notes even
offers a title error. See Figure 9. A total of 816 $100s were printed by the Bureau of Engraving
and Printing (BEP) for charter 13759 of Indianapolis, sent to the Comptroller?s office in three
deliveries.
The first BEP delivery to the bank was October 19, 1933, consisting of 30 sheets, serials 1
through 180. The notes entered circulation. The second BEP delivery to the Comptroller?s Issue
Division was February 14, 1934, serials 181 to 634. After delivery of much of the stock to the
bank, someone finally noticed the title of the bank was wrong on the notes! The notes said
American National Bank of Indianapolis [emphasis added]. The bank?s actual title was American
National Bank at Indianapolis. The remaining notes with the incorrect title were canceled,
consisting of serial numbers 505-624. The BEP then delivered, on March 27, 1934, serials 625 to
816 with the correct bank title. When the dust settled, 696 notes, counting both titles, were issued
to the bank. Ambitious numismatists can try to beat the odds and collect one of each title.
Figure 9. The only title
error in the $100 Type 2
series belongs to charter
13759. The top note is the
error, the bottom note
shows the correct ?at?
Indianapolis title phrasing.
Images courtesy Heritage
Auctions.
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The Mount Olive National Bank
The Memphis situation is an interesting contrast with another $100 Type 2 issuer, the late-
opening charter 14285, The Mount Olive National Bank, Mount Olive, Illinois. The bank was
chartered in October 1934, but took its time purchasing its circulation bonds. The BEP got notes
ready early, printing $100 Type 2 notes only, and sent two deliveries to the Comptroller?s vault,
one in late December 1934 and one in late January 1935. But the Comptroller sent no notes to the
bank, for the plain reason the bank had no bonds on deposit.
Finally, on February 23, 1935, the Mount Olive National purchased $25,000 in bonds and
deposited them with the Comptroller. The very same day the first of five $5,000 currency
shipments were sent to the bank, the last being sent March 6, 1935, ending in serial number
A000250.
All this work was to be for naught. On March 9, 1935, Treasury Secretary Henry
Morgenthau Jr. released a press statement saying the 2 percent Consols backing national bank note
circulation would be called on for redemption on July 1, 1935, and the 2 percent Panama Canal
bonds would be called August 1, 1935. The bankers at Mount Olive National had just three days
to enjoy their stack of 250 $100 bills before learning the notes would be the last, and only, of their
kind.
The bankers didn?t wait for Treasury?s July bond call to get out of the circulation business.
On April 6, 1935, they deposited lawful money with the Comptroller to clear their tax liability for
the notes. The notes were now vault cash. With seven $100 Type 2 notes known, the evidence
points to the bank taking its modest stack of 250 notes and eventually circulating them over the
counter rather than going to the effort of redeeming them.
Hawaii Territorials
Charter 5550, the Bishop National Bank of Hawaii at Honolulu, issued 682 $100 Type 2
notes, the only territorials of the type. Only 3 are known, a number that hasn?t changed in a decade.
Hawaii national bank notes were subject to the World War II June 25, 1942, order from Territorial
Governor Joseph B. Poindexter to exchange regular currency for Treasury?s specially marked
Hawaii overprint notes. The small issue of $100 Type 2s, together with the mandatory exchange
of notes during the war, makes the survival of three notes all the more amazing. See Figure 1.
Observations
The review of the old H&O auction sales answered the initial question that prompted this
article, namely whether the $100 Type 2 notes used to be more common and have just dried up in
today?s market or whether they were always scarce. The answer is clearly the latter. Beyond the
several banks profiled in this article, all the $100 Type 2 issuing banks listed on Table 3 are worth
the pursuit.
Low prices are not the norm anymore, particularly for true VF and better notes in original,
undamaged condition. Nice original notes fine and better see competitive bids and solid prices.
Issued in small numbers to begin with, and facing withering economic conditions and
almost immediate attrition, the 400+ $100 Type 2 nationals that have surfaced for collectors today
defied the odds to be here.
Acknowledgments
This article utilized several of the high quality online resources our hobby has been making
available, among them the Society for Paper Money Collector spmc.org website and its Bank Note
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History Project databases, the National Currency Foundation and its National Bank Note Census,
the joint NCF/SPMC online publication of the Huntoon-Shiva Encyclopedia of U.S. National Bank
Notes, and the Newman Numismatic Portal at Washington University at St. Louis. The Heritage
Auctions, Stack?s Bowers, and Knight archives continue to be a benefit for the hobby. Fred
Maples, Peter Huntoon, and Jim Simek provided timely assistance as well.
Sources
Bowers, Q. David. American Coin Treasures and Hoards. Chapter 17, pp. 343-350. Bowers and Merena Galleries, Wolfeboro,
NH. (1997).
Comptroller of the Currency, Annual Reports, 1929-1934. 1929 pp. 30-31; 1933 p. 2; 1934 p. 63. Washington, DC (1929-1934).
Comptroller of the Currency, National Currency and Bond Ledgers. Record Group 101, U.S. National Archives, Archives II,
College Park, Maryland. (1863-1935).
Heritage Auction Archives. Heritage Auctions, Dallas TX. ha.com (2022).
Hickman, John, and Dean Oakes, Hickman and Oakes Auction Sales 1-38, Iowa City, IA. (1976-1989).
Huntoon, Peter, Lee Lofthus and James Simek, ?Series of 1929 Type 2 Serial Numbers,? Paper Money, July/August 2011, pp. 244-
249. Vol. L, Whole No. 274, Society of Paper Money Collectors, spmc.org
Huntoon, Peter, and Jamie Yakes, ?Glass-Borah Amendment of 1932 spiked Series of 1929 National Bank Note Circulation by a
Third,? Paper Money, May/June 2022, pp. 198-203,Vol. LXI, Whole No. 339, Society of Paper Money Collectors,
spmc.org
Huntoon-Shiva Encyclopedia of U.S. National Bank Notes, SPMC Content (accessed July 13, 2022). Chapter G4, Serial Numbering
on Series of 1929 National Bank Notes, version of June 4, 2022. (2022). Spmc.org
Kelly, Don C. National Bank Notes, A Guide with Prices, Sixth Edition. Oxford, OH. The Paper Money Institute. (2008).
Lofthus, Lee, ?Hawaiian Series Currency,? Paper Money, January/February 2006, pp. 6-23, Vol LXI, No. 1, Whole No. 337,
Society of Paper Money Collectors, spmc.org
Lofthus, Lee, ?Louis Van Belkum?s ?No Circulation? National Banks Revisited,? Paper Money, September/October 2006, pp. 345-
358,Vol. XLV, No. 5, Whole No. 245, Society of Paper Money Collectors, spmc.org
Maples, J. Fred. Maryland Paper Money, An Illustrated History, 1964-1935, JFM Numismatics, Montgomery Village, MD, (2015).
National Currency Foundation, National Bank Note Census. National Currency Foundation, New York, NY.
nationalcurrencyfoundation.org (2022).
Paper Money Guarantee Inc. PMG Population Report, PMG, Sarasota, FL. pmgnotes.com (2022).
Pollock, Andrew, ?Compilation by Year of National Bank President?s, Cashiers, Total Resources, and Circulations, 1863-1935.?
Newman Numismatic Portal at Washington University, St. Louis, MO. (2021).
Rand McNally, ?Bankers Directory, The Bankers Blue Book,? p. 93. July 1933 edition.
Rand McNally & Co, New York, Chicago, San Francisco. (1933). Via Fraser, Federal Reserve Bank of St. Louis.
Fraser.stlouisfed.org.
Rand McNally, ?Bankers Directory, The Bankers Blue Book,? p. 111. March 1934 edition. Rand McNally & Co, New York,
Chicago, San Francisco. (1934). Via Fraser, Federal Reserve Bank of St. Louis. Fraser.stlouisfed.org.
Rare National Currency, ?Hickman and Oakes Auctions.? August 13, 2011. Rarenationalcurrency.com
Society of Paper Money Collectors, The Bank Note History Project, Banks & Bankers Database (1782-1935). spmc.org (2022).
U.S. Treasury, Press Service No. 4-47, ?Release, Morning Newspapers, Monday, March 11, 1935.? [Secretary Morgenthau
announces call of two per cent Consols for redemption on July 1, 1935 and two per cent Panama Canal bonds for
redemption on August 1, 1935]. March 9, 1935. Treasury Department, Washington. (1935).
Warns, Melvin, Peter Huntoon, and Louis Van Belkum. The National Bank Note Issues of 1929-1935, Second Edition. Society of
Paper Money Collectors. Chicago, IL: Printed by Hewitt Brothers, (1973).
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$20 Series of 1880 Legal Tender
Serial Number
Color Change
Lee Lofthus found correspondence in Bureau of the Public Debt documents in the National
Archives that fully explain a little-noted variety on the last of the Series of 1880 $20 legal tender
notes. Specifically, the serial numbers on the Teehee-Burke and Elliott-White notes were changed
from blue to red. A number of factors came into play to cause this.
Series of 1880 Legal Tender Notes
The 1880 legal tender series encompassed every denomination from $1 to $1,000. The
series was printed from fiscal year 1880 through 1926. However, the Treasury ceased ordering
Series of 1880 $1s and $2s at the end of FY 1896 and $5s at the end of FY 1900. Production of all
the other legal tender denominations in the series except the $20s and $1000s ceased by FY 1903
as the Treasury assigned the use of low denomination Treasury currency to silver certificates and
higher denominations to gold certificates.
The Treasury was adopting new designs for most classes of currency beginning at the turn
of the century. $10 legal tender production continued, but came out in the form of the redesigned
Series of 1901 bison issues. $5 legal tender production resumed after a few years in the form of
Series of 1907 woodchopper notes, and, in the long haul, $1 and $2 production finally resumed in
the form of Series of 1917 notes.
The only Series of 1880 legal tender production that occurred after FY 1903 consisted of
$20s and $1000s as follows (BEP, yearly).
FY Sheets FY Sheets
$20 1909 101,000 $1000 1904 8,000
1910 102,000 1909 5,000
1918 100,000
1922 688,000
1926 457,000
The Paper
Column
Peter Huntoon
Lee Lofthus
Figure 1. The only Series of 1880 Legal Tender notes with red Treasury serial
numbers are Teehee-Burke and Elliott-White $20s. Heritage Auction archives photo.
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Sealing
In 1885, the sealing of Treasury currency was transferred from the Bureau of Engraving
and Printing to the Treasurer?s office as a security measure (Huntoon and Murray, 2019, 2020).
The idea was that sealing monetized the notes, so it seemed appropriate to do it within the Treasury
building. This practice meant that the BEP printed the serial numbers and the Treasurer?s office
printed the seals on the notes.
Things changed in 1910. The BEP installed a new generation of numbering presses that
were capable of numbering and sealing the sheets, separating the sheets into individual notes, and
collating them in serial number order. At this point, Congress ordered that sealing be returned to
the BEP. A major incentive was that both numbering and sealing could be carried out with one
pass through the new Harris presses at great savings (Huntoon and Lofthus, 2014).
Serial Number Colors
The BEP had been using blue ink to number the 1880 LTs and the Treasurer was using red
ink for the seals before sealing was returned to the BEP. The colors didn?t matter because
processing involved two different press runs in different buildings. Using the different colors made
little sense after sealing was returned to the BEP where both the numbers and seals were to be
printed on the same machine.
The Treasury lodged an order for 100,000 sheets worth of $20 LTs in late 1918, the first
such order since FY 1910. The $20 LTs had not been redesigned so the order would come out in
the form of Series of 1880 notes.
BEP director James L. Wilmeth sent the following memo to Secretary of the Treasury
William McAdoo on April 12, 1918 (BPD, 1917-1942).
Reference to order now in hand for printing $20 United States notes, series 1880, I beg to
state that the last time these notes were printed the number was printed in blue by this Bureau
and the seal was printed in red at the Division of Issue in the Treasury Department building. Since
this Bureau has taken over the sealing as well as the numbering of the notes, all of the other
denomination of United States notes have had their series changed and have both number and
seal printed in red. It is suggested, therefore, inasmuch as all of the other denominations are so
printed that this Bureau be authorized to print the number and seal on the $20 denomination also
in red ink. This is an especially opportune time to begin this change for the reason that on the
notes now to be issued, both the facsimile signatures of the Treasurer and the Register have been
changed.
Figure 2. The Series of 1880 Legal Tender notes printed before 1918 had blue
Treasury serial numbers. Heritage Auction archives photo.
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The response from the Treasury was immediate in the form of a letter from Assistant
Secretary of the Treasury James H. Moyle dated April 13th.
By direction of the Secretary the suggestion contained in your communication of the
12th instant is approved and you are hereby authorized to print the number and seal on
the twenty dollar denomination United States notes in red.
Thus, the 1918 printing of 100,000 sheets of Teehee-Burke $20 Series of 1880 notes
sported red Treasury serial numbers. The Treasury ordered two more printings of LT $20s, one in FY
1922 and the second in FY 1926. These also were Series of 1880 notes with red Treasury serials
but Elliot-White Treasury signatures.
As fate would have it, these three $20 orders were the only Series of 1880 notes numbered
and sealed after the Harris presses came on line in 1910. Consequently, they are the only Series of
1880 notes to bear red Treasury serial numbers.
To mark the occasion, numbering of the Teehee-Burke $20s commenced with serial A1A
with the 1918 order. The $20s sealed previously in the Treasurer?s office had blue serials that had
been printed at the BEP with a D-prefix.
Things are Interconnected
The change to red Treasury serial numbers on the Series of 1880 $20 owes its origin to the
introduction of the Harris numbering, sealing, cutting and collating presses at the Bureau of
Engraving and Printing. Because these machines overprinted both the serial numbers and seals, it
made practical sense that both be the same color.
The fact that the Harris presses were designed to overprint both of those features in one
pass caused the entire Treasury apparatus and its Congressional overseers to reevaluate the
necessity of having the seals applied in a separate printing step within the Treasury building. The
BEP had sufficient security protocols in place that it had gained the trust of Congress that it could
add the seals?which technically monetized the notes?and deliver them to the Treasury without
defalcation.
The Treasury was carrying out a program to modernize the look of all of its Treasury
currency series, a slow process begun at the turn of the 20th Century. The redesigns led to the
advent of new series. Simultaneously, the Treasury officials were attempting to reduce the
multitude of different looking notes in circulation by exclusively assigning specific denominations to
one or the other of the three classes of Treasury currency then in use. No priority was given to the
redesign of the Series of 1880 $20 and $1000 legal tender denominations because the plan was to
allocate those denominations to gold certificates. Thus, when belated orders came down from
Treasury for more of them after the turn of the century, the plates available to print them were
those in the Series of 1880.
The Harris presses came on-line in 1910. When orders came from Treasury for more $20
legal tender notes in FY 1918, and again in FYs 1922 and 1926, the notes came out as last-gasp
Series of 1880 notes. Being the last notes in the series, and the only notes in the series overprinted on
Harris presses, they came out with distinctive red Treasury serial numbers.
Thus, the stars had aligned just right in order for the Teehee-Burke and Elliott-White $20
Series of 1880 legal tenders to carry red Treasury serial numbers.
Sources
Bureau of Engraving and Printing, yearly, Annual Reports of the Director of the Bureau of Engraving and Printing: Government
Printing Office, Washington, DC.
Bureau of the Public Debt, 1917-1942, April 12-13, 1918 correspondence between BEP Director James Wilmeth and Assistant
Secretary of the Treasury J. H. Moyle: Files related to Bureau of Engraving and Printing, Record Group 53, Entry UD-
UP 9,ox 8, files C550-C610: U. S. National Archives, College Park, MD.
Huntoon, Peter, and Lee Lofthus, Nov-Dec 2014, The birth of star notes, the back story: Paper Money, v. 53, p. 400- 411.
Huntoon, Peter, and Doug Murray, Sep-Oct 2019, Treasury sealing assigned to Treasurer?s office in 1885: Paper Money, v.
58, p. 328-336.
Huntoon, Peter and Doug Murray, May-Jun 2020, Treasury seal varieties when sealing was carried out at the Treasurer?s
office between 1885 and 1910: Paper Money, v. 59, p. 179-187.
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The Civil War Stamp Money of Confederate Mobile, Alabama
by Steve Feller
On January 11, 1861, Alabama seceded from the United States and on February 4, 1861, the state joined the
Confederate States and the new government?s organizational meeting was held in Montgomery [1]. By April the
American Civil War began and a terrible struggle had begun. During the ensuing war the Southern States issued
thousands of different kinds of paper money.
Initially, United States postage continued to operate in these states and a mutual agreement to separate Southern
post offices was put into place setting June 1, 1861, as the formal date of separation. At that point several post offices
issued their own Confederate provisional stamps and markings until uniform Confederate postage stamps were
released in the fall of 1861. The most common of these provisional adhesive stamps were produced in New Orleans
and it wasn?t long before other post offices followed suit. This included Mobile, AL.
Figure 1a: A montage of Confederate provisional stamps from Mobile, AL.
Figure 1b: Two- and five-cent
Confederate provisional stamps from
Mobile, AL.
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All Confederate provisional stamps are at least scarce. Rarer still by far are the small-change money issues of
these respective post offices [2]. Sometimes just a few notes are known from a particular post office. This article
will focus on the handful of surviving small change chits from Mobile, Alabama.
Here are examples of post office scrip from New Orleans and Mobile:
Figure 2: a. Civil War Stamp Money for one-cent from New Orleans. b. Close up and color enhanced image of the one-cent note with
New Orleans Postmaster J.L. Riddell?s impressed name. Note that Riddell?s daughter signed the note as well as a postage clerk. Much
more detail on New Orleans stamp money may be found in reference [3].
According to The New Dietz Confederate States Catalog and Handbook [4], published in 1986, Owen was the
Assistant Postmaster in Mobile. There is an image of the one-cent scrip in this source that has Owen?s signature with
a slightly different signature orientation than the note shown here. Also, a three-cent note is mentioned as being
printed in black on white paper.
Fig. 3: Three unissued Civil War stamp
money chits from New Orleans.
Fig 4. a, b, and c. One-cent stamp
money from Mobile, AL. Note that
it was signed by Owen.
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Fig. 5: Close-up of the back of the one-cent note.
The date is printed twice and is likely NOV 24.
Fig. 6: a, b, c, and d: One-cent and three-cent post office scrip from the Mobile Post Office.
The one-cent note in Fig. 6 seems to be printed on scrap paper having to do with an election and taxes. Once
again the scrip was dated by the post office?s date mark. The dates are December 7 and October 11. They are without
year, but it seems likely that they were used in 1861-62 as a way to give small change as the Confederate period
began. Small change disappeared from circulation by the fall of 1861. By the fall of 1862 and especially later small
change notes like this were hardly worth printing and yet it was at some post offices, although in somewhat larger
denominations [2]! The value of a Confederate dollar in gold fell during the war and was [5]:
December 1861: $0.83
December 1862: $0.33
December 1863: $0.05
December 1864: $0.026
Thus, by December 1864 a one-cent chit was worth $0.00026 in gold, or 3846 chits was valued at a gold dollar!
Today, it is decidedly a different story.
I present comments from The Organization of the Confederate Post Office at Montgomery by Peter Brannon
[6]:
After secession and before the organization of the Confederate government, the independent states used United
States stamps and stamped covers, and upon the creation of the Confederate Post Office Department the United
States and the Confederate States agreed that postmasters appointed before secession should remit as of June 1,
1861, all monies in hand on that day to Washington City. This arrangement produced many interesting postmarks
and covers. The Confederate postmasters were embarrassed in the sale of postage, and many devised temporary
provisional facilities. Others used pen cancellations and manuscript postmarks. The absence of small change caused
further embarrassments and most postmasters were required to open charge accounts with their patrons.
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Other post offices issued chits. These are dated throughout the war but mainly earlier in the war. Thus, it is not
possible to state for sure what year these were printed.
The Mobile, AL post office was located in the customs house shown below in Figures 7 a, b, and c. It was
designed by noted architect Ammi Burnham Young (June 19, 1798 ? March 14, 1874); he was the first Supervising
Architect of the United States Treasury Department. The building was completed in 1856 and removed in 1963.
The magazine Mobile Bay gave this description of the building [7]:
Architect Ammi Young designed this Italianate and classical revival masterpiece. Located downtown (where the
RSA-Bank Trust Building is now), it was built like a fort ? granite blocks laid with inter-locking joints all set on a
foundation of solid clay and 12-inch-thick heart pine. Not surprisingly, it cost a whopping $360,000. The building
was notable for its disciplined form and pleasing eave brackets. Its demolition nearly bankrupted the company
hired for the job.
Fig.7: a) Plans, b) front and c) side views of the post office and customs house in Mobile that existed during the Civil War. Photos
from the Library of Congress. This is where the Mobile, AL Postmaster?s Provisionals stamps and small-change chits were issued.
The Postmaster of Mobile, AL during the Civil War was Lloyd Bowers. He was 37 when the Civil War began
in April 1861 and when he issued provisional stamps beginning in June or July1861.
Lloyd Bowers was born in Louisiana on March 11, 1824, and was married on June 11, 1846, to Louise Ann
Toulmin. This marriage produced six children. Descendants of the children survived until at least 1995. Lloyd died
May 18, 1891, and Louisa died September 17, 1903 [9].
No biographical information was found on Assistant Postmaster Owen.
Lloyd Bowers was born in Louisiana on March 11, 1824, and was married on June 11, 1846, to Louise Ann
Toulmin. This marriage produced six children. Descendants of the children survived until at least 1995. Lloyd died
May 18, 1891, and Louisa died September 17, 1903 [9].
No biographical information was found on Assistant Postmaster Owen.
These notes are certainly rare. They are not listed in numismatic sources such as Don Kelly?s Obsolete Paper
Money [10] or Walter Rosene, Jr?s, Alabama Obsolete Notes and Scrip [11], just the Dietz books on Confederate
Figure 8: Grave of Postmaster
Lloyd Bowers of Mobile, AL.
Figure 9 a and b: Close ups of Lloyd Bowers and wife Louisa Toulmin gravestones. The
graves are in the Magnolia Cemetery in Mobile. Images are from Find a Grave [8].
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stamps lists them, as mentioned earlier. Do any readers have examples of these scrip? If so, please send images to
sfeller@coe.edu.
In summary, here is a table with up to five scrip notes that are known today of the Mobile Post Office:
Denomination Size Color Date
One cent 49mm x27mm Black on white cardboard Nov(?) 24, 1861 or 1862?
49mm x27mm Black on white cardboard Dec 7, 1861 or 1862?
Black on white* Back not shown
Three cents 49mm x26mm Black on orange cardboard Oct 11, 1861 or 1862?
Black on white* Back not shown
*As listed in [4].
Mobile was a major port for the Confederacy. However, the North, under
Admiral Farragut effectively blockaded the city (See Fig. 10.). Mobile
surrendered to the Union on April 12, 1865, three days after General Robert E.
Lee surrendered.
References
[1]. Dates taken from Dates of State Secession and their Admission to the Confederacy provided by Patricia Kaufman from
https://www.trishkaufmann.com/resources-and-links from Independent State Mail and Confederate Use of U.S. Postage: How Secession
Occurred: Correcting the Record (La Posta Publications: Fredericksburg, VA) 2018.
[2]. Steve Feller, ?Confederate Stamp Money Revisited,? Confederate Philatelist 65 (2) 15-33 (2020).
[3]. S.A. Feller, ?The Notes of John Leonard Riddell, Postmaster of New Orleans.? Paper Money (2012) LI (3) (Whole Number 279) 163-168
(2012).
[4]. Hubert Skinner, Erin R. Gunter, and Warren H. Sanders, The New Dietz Confederate States Catalog and Handbook (Bogg and Laurence
Publishing: Miami) 1986.
[5]. Douglas B. Ball, Financial Failure and Confederate Defeat, (Univ. of Illinois Press: Urbana and Chicago) 1991.
[6]. Peter A. Brannon, The Organization of the Confederate Post Office at Montgomery and a Story of the Thomas Welsh Provisional Stamped
Envelope Together with the activities of the Montgomery Post Office in the Confederate period, (Peter A. Brannon: Montgomery) 1960.
[7]. https://mobilebaymag.com/bygone-structures/
[8]. https://www.findagrave.com/memorial/110255492/lloyd-bowers
[9]. https://gentrekker.com/familygroup.php?familyID=F4139&tree=Dickinson
[10]. Don Kelly, Obsolete Paper Money (The Paper Money Institute: Oxford, OH) 2018.
[11]. Walter Rosene, Jr, Alabama Obsolete Notes and Scrip, (Society of Paper Money Collectors) 1984.
Fig. 10: The geography of Mobile, AL
and its bay during the Civil War.
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The Central National Bank of Frederick, Md., Charter #1138
by J. Fred Maples
This bank was chartered May 15, 1865, from the former Central Bank of Frederick, with Robert Y. Stokes,
president, and Peter L. Storm, cashier. The bank?s founders initially deposited $100,000 in 6% bonds, and issued
$90,000 in Original Series $5s, $10s and $20s, and $50s and $100s. Another $100,000 bond was deposited later that
year to extend the circulation. In subsequent years this bank issued 1875 Series, 1882 Series, and 1902 Series notes,
with a varying circulation that averaged about $150,000. This bank was generally successful and well respected as
the local Frederick Examiner gushed in 1904: ?This institution is one of the best known and most substantial banking
houses in the state and enjoys a liberal patronage throughout the county. Its management consists of men of noted
ability and keen business judgment making it a most desirable depository?. Importantly this bank absorbed The First
National Bank of Frederick, charter #1589 in 1909, but liquidated in 1913, and was absorbed by Emory Coblentz?s
new Central Trust Company of Maryland. Unfortunately, Coblentz overextended the Central Trust Company which
collapsed and failed spectacularly in 1931.
Undoubtedly the best note known from this bank today is this Original Series $5, with red serial #1, Friedberg
397a, certified by PMG as Very Fine 30, with Exceptional Paper Quality (EPQ). Despite appearing a bit dark and
somber, this note is loaded with interesting features, vignettes, serial numbers, and signatures. Notice the centered
statement ?This Note Is Secured by Bonds of the United States, Deposited with the U.S Treasurer at Washington?,
which is expertly stacked across four levels, and the intricate title block ?The Central National Bank of Frederick
Maryland?. This important note was recently sold in Heritage?s 2022 Central States sale, Lot 21019 for $20,400, and
attributed to the renowned collection of Ibrahim Salem. Salem acquired the note for $40,800 from Heritage?s 2018
FUN sale, Lot 20947. This note was a highlight of Marc Watts? Maryland collection, who acquired it for $20,000
via private treaty, after being saved as an heirloom by the cashier?s family.
Signing cashier Peter L. Storm was a respected and successful Frederick citizen. As reported by the Frederick
Examiner in Storm?s October 13, 1875, obituary: ?It is with deep regret that we record the death of this gentleman
who died at his residence on South Market street, on last Wednesday, after a protracted illness, in the 68th year of his
age. He was an excellent citizen and was highly esteemed by a large circle of acquaintances. In 1847 he was elected
Discount Clerk of the Central National Bank, a position he held until 1861, when he was elected Cashier, the duties
Figure 1: $5 Original Series, Serial #1. The Central National Bank of Frederick, Md. Charter #1138. Good pen signatures
of P.L. Storm, cashier, and R.Y. Stokes, president. This bank issued 3,750 sheets of Original Series $5s between 1865 and
1876. This note was issued on July 24, 1865 and was the first note issued from this bank ? indeed it?s the first note issued
from any Frederick national bank.
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of which he discharged with satisfaction and ability until incapacitated by the hand of affliction. His remains were
interred in Mt. Olivet Cemetery on last Saturday, attended by a grief stricken family and numerous friends.?
President Robert Y. Stokes was also a respected and successful Frederick citizen. As reported by the Frederick
Examiner in his July 29, 1874, obituary: ?It is with much regret that we announce the death of this gentleman, who
died at his residence in this city, on Tuesday evening of last week, after an illness of some few months, in the 66th
year of his age. The deceased was a native of Harford county but went to Baltimore quite early in life where he was
employed as a clerk in a large mercantile house. Some years after and before we enjoyed the present facilities for
rapid travel, he engaged in the staging business, which he finally relinquished, and bought the Ceresville property, a
few miles North of this city, which he farmed about twenty years, after which he again went to Baltimore and was
engaged in the banking business under the name of Stokes & Lowndes. In a few years he returned to Frederick, and
in 1860 was elected President of the Central Bank --- now the Central National Bank of Frederick ? a position he
held for fourteen years, the duties of which he discharged with ability, and to the satisfaction of the stockholders. He
was a fine, correct, upright man, and in his death this community loses a useful member.?
All Original Series $5s -- including the note featured in Figure 1 -- were printed by the Continental Bank Note
Company of New York, which was contracted in July 1863 as a federal currency printer, joining the American Bank
Note Company and National Bank Note Company. Continental scored a coup with its contract to print Original
Series $5s, given more $5s were printed than any other notes. Continental printed the front and back with four notes
to a sheet, along with the bank serial number (bottom left). The sheets were then shipped to the National Currency
Bureau in Washington, where they were overprinted with the Treasury seal and serial number. Next the sheets were
sent to the banks and were cut apart and signed by the bank?s cashier and president. The note?s face depicts two
important vignettes. To the left is ?Columbus in Sight of Land?, also called ?Discovery of Land by Columbus?,
which depicts the great moment of exploration, as engraved by Louis Delnoce from art by Charles Fenton. To the
right is ?America Presented to the Old World?, which shows Columbus presenting a Native American princess,
presumably representing America, to her three sisters of the old world -- Europe, Asia, and Africa, as engraved by
W.W. Rice from a painting by T.A. Liebler.
Frederick is a historic city in central Maryland, and northwest of Washington DC. Frederick was first laid out
by land speculator Daniel Dulany in 1745, and settled by German immigrants led by Johann Thomas Schley, who
built the first house there. In 1792 it was called Fredericktown and was incorporated in 1817. Most historians
attribute the name to the sixth Lord Baltimore, Frederick Calvert, son of Charles Calvert. The city served as a major
crossroads from colonial times, and British General Braddock marched west through Frederick on his way to the
fateful ambush near Fort Duquesne in the French and Indian War. Frederick grew into an important market town,
and by the early 19th century became a leading mining area for gold, copper, limestone, marble, iron and other
minerals. Today Frederick is a growing and vibrant mix of rural and urban, and known for its arts, entertainment,
shopping, restaurants, and breweries.
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The Paper
Column
Peter Huntoon
Jamie Yakes
Glass-Borah Amendment
of 1932 spiked Series of 1929
National Bank Note Circulation by a Third
Purpose and Introduction
The purpose of this piece is to explain how the Glass-Borah Amendment to the Federal Home
Loan Bank Act of 1932 caused national bank circulation to increase by $220 million above the then
outstanding $675 million. The amendment was a rider to the home loan act that was unrelated to home
loans, but instead was tacked on to cause an inflation of the money supply in hopes it would help mitigate
the Great Depression. The Glass-Borah amendment awarded the circulation privilege to U.S. bonds with
interest rates of 3-3/8 percent or less to make it more profitable for bankers to take out circulation than the
2 percent bonds then available as security for national bank notes. This favorable provision would
terminate in three year, when it was hoped the depression will have passed.
Inelastic Currency
The purpose of the National Bank Act was to create a new form of currency. To that end, organizers
of national banks were required to take out circulation by the initial legislation. Prior to passage of the
Federal Reserve Act of 1913, the minimum circulation that bankers were required to maintain was: (1)
$50,000 for banks with a capital of $150,000 or more, and (2) one-quarter of their capital for banks with a
capital of less than $150,000.
The bottom line was that the National Bank Act produced a supply of national bank notes that was
predicated on the combined capitalizations of all the banks in the country. Consequently, national bank
note circulation was tied to the capitalization of the banks, a number that was rather inflexible because the
bankers couldn?t readily change their capitalizations.
Section 17 of the Federal Reserve Act passed December 23, 1913 contained a provision that
allowed bankers to sell their bonds to Federal Reserve banks and get out of the currency-issuing business.
This was followed by Section 9 in an Act amending the Federal Reserve Act that was enacted June 21,
1917 that absolved national bankers of any requirement to take out circulation. Thus, after 1913, the supply
of national bank notes was even smaller yet still tied to the capitalization of the banks that did issue it.
Figure 1. The Glass-Borah Amendment caused $220 million worth of Series
of 1929 type 1 nationals to be added to the existing $670 million national
bank note circulation by May 1933. The primary winners were the big city
banks. The officers of this New York bank increased their circulation from
$8.5 to $9.9 million between October 1931 and 1933, but their capitalization
remained constant at $10 million.
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The result was that the national bank note supply was inelastic. That is, the supply didn?t respond
to changing demands for money in the annual cyclic course of commerce. For example, when money was
needed in times of increased activity, such as during crop planting season, there was a shortage of it so
interest rates spiked. In times of diminished activity, such as when crops were sold, there was a surplus of
it, so interest rates sank. Thus, the inelasticity exacerbated seasonal swings in interest rates.
Even worse, the national bank note supply couldn?t increase rapidly during economic emergencies
when cash was needed to offset hoarding. This fueled crippling money panics that came along with
distressing regularity.
People rarely worried about the maximum circulation that a bank could issue. Bankers, of course,
could take out more circulation than the minimum if they wished to invest in more bonds, something they
did when circulation was profitable. The upper limit of circulation that a bank could subscribe for was the
paid-in capital of the bank.
There was a practical cap on the maximum possible total national currency supply. This was
dictated by the supply of federal bonds that were available to back the currency.
Congress accorded the so-called circulation privilege to specific bond issues. Only those bonds
could be used by bankers to back their currency. The bankers would buy these bonds, deposit them with
the U. S. Treasury, and then receive national bank notes equal to the par value of the bonds. They could
then press the nationals into commerce.
The available bonds with the circulation privilege totaled $675 million at the beginning of 1932,
virtually all of which were owned by national banks to back their national bank note issues (FR Board,
1932, p. 478).
The U. S. Treasury was pleased with this cap because it limited the volume of inelastic national
currency to about 12 percent of the total money supply at the time (FR Board, 1932, p. 480). Consequently,
national currency no longer was a major player on the monetary stage going into 1932.
The Federal Reserve Act of 1913 allowed bankers to sell their bonds to the Federal Reserve banks,
which replaced national bank notes dollar-for-dollar with elastic Federal Reserve currency. The hope of
the framers of the Federal Reserve Act and Treasury officials was that Federal Reserve notes would quickly
supplant all national bank notes and eliminate them from the scene.
The problem was that even though the available bonds used to back national bank notes earned
only 2 percent interest, national bank note circulation was sufficiently profitable that the majority of the
bankers held on to them and continued to maintain their circulations. In fact, the supply of eligible 2 percent
bonds was insufficient for this purpose so they sold at a premium over their par value.
Consequently, as the nation began to reel under the Great Depression, the inelastic national
currency was not going away. By its nature, it was actually contributing to the economic woes.
A Stopgap Solution
Then came the Federal Home Loan Bank Act, a measure called for by Republican President
Herbert Hoover to encourage home ownership by providing low-cost home mortgages. The act was signed
into law by Hoover July 22, 1932. However, the form in which it passed was a notable dud because the
only people who could quality for mortgages were sufficiently well off, they didn?t need to fool with the
Federal Home Loan Banks (Wikipedia).
Here is where it gets interesting. Over the objections of Hoover and his Treasury officials, a rider
was tacked onto the bill that became known as the Glass-Borah Amendment. This granted the circulation
privilege for a period of three years from the date of passage of the act to all U. S. bonds that paid interest
at 3-3/8 percent or less. The rider had nothing to do with the Federal Home Loan Banks.
Its sponsors were Virginia Democratic Senator Carter Glass, former Secretary of the Treasury
under Woodrow Wilson, and Idaho Republican Senator William Borah. Both were progressives. Clearly
their amendment was a clumsy attempt to inflate the money supply because it would make national bank
note circulation sufficiently profitable it would incentivize the bankers to invest in the 3-3/8 percent bonds
and take out additional circulation.
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Far more important, it effectively blew the roof off the then current $675 million cap on total
national bank note circulation by making a flood of high-yield bonds available for purchase. There were
about $3 billion worth of them out there.
Suddenly, instead of worrying about the nominal remaining national bank note circulation, the
Treasury had to worry about the theoretical maximum amount of such currency that could be created! Not
only that, they fretted about the weakening effect the move into national currency was going to have on
the Federal Reserve system because the bankers would turn to the Federal Reserve banks to get the money
they needed to buy the newly eligible bonds (FR Board, 1932, p. 474-476).
Treasury officials quickly fathomed that the maximum theoretical national bank note circulation
was the collective capitalization of all the banks in the country. They summed these and found that total
national bank capitalization was $1.570 billion. A mechanism was now in place that could result in almost
a billion-dollar expansion of the national bank note supply. The potential increase was almost one and half
times the size of the existing national bank note supply!
The rider on the FHLB act gave bankers a strong incentive to swap out elastic Federal Reserve
currency for inelastic national currency, just what the Treasury and economists didn?t want. If taken to its
logical conclusion, nationals would grow to 30 percent of the total money supply rather than 12 percent!
Then national currency would be a major factor.
Although he chaffed, President Hoover didn?t veto the bill when it crossed his desk because he
rationalized that the potential spike in national bank note circulation could only last until 1935 when the
circulation privilege for the high yield bonds would expire (Awalt, 1932, p. 5). Then the bankers would
have to sell those bonds and their money would flow back into the Federal Reserve banks. There would be
a reverse substitution of nationals back into FRNs so things would normalize.
Figure 2. Carter Glass (left) Democratic senator from Virginia and William E. Borah (right) maverick
Republican Senator from Idaho sponsored the Glass-Borah rider to the Federal Home Loan Bank Act of July
22, 1932 giving a three-year circulation privilege to 3-3/8 percent or lower interest U.S. bonds that caused a one-
third spike in national bank note circulation by 1933. Wikipedia photos.
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An important fact is that the FHLB Act did not increase the
tax bankers had to pay on their circulation if they used the higher yield
bonds. Consequently, the spread between the interest they earned and
the tax they had to pay was greater than the spread with the 2 percent
bonds. The result was a strong incentive for them to swap out their
existing 2 percent bonds even if they didn?t increase their circulations.
Impact on National Bank Circulation
What actually occurred in the short term is exactly what was
predicted. Of course, the bankers who had surplus cash acted in their
self-interest and bought the high yield bonds and used them to inflate
their circulations. Within three months of passage of the FHLB act,
the national bank note supply grew by $125 million and continued to
grow. It spiked to $893 million at the beginning of May, 1933, its
second highest level in history (O=Conner, 1935). This peak followed
the election of Roosevelt and the bank holiday.
The FHLB spike amounted to $220 million more than the
early 1932 national bank note circulation, a 33 percent increase. A
spike of $220 million was a quarter of the worst-case scenario
contemplated by the Hoover Treasury, but even so it was a significant
increase.
Just as you might expect, the market value of the old 2 percent
bonds fell below par and the glamorous new high yield bonds started
selling for a premium as the bankers competed against each other and
other investors as they substituted the new for the old (FR Board,
1932, p. 479). They not only bought the high yield bonds to support
increased circulations, many simply swapped out their old 2 percent
bonds that were used to back their existing circulations.
Type 1 national bank notes were the impacted series thanks to
the $220 million increase in national bank note circulation. That many
more type 1 nationals were issued than otherwise would have been the
case.
The rapidly rising tide also helped lift the demand for type 2s
when they came along at the end of May 1933, but not by the same
degree. By the time the type 2s arrived, the peak national bank note
circulation already had been achieved so the type 2s were largely
replacements for type 1s that were wearing out. Their numbers of
course were greater than they would have been without the FHLB act
simply because the total amount of nationals in circulation was greater.
If the FHLB act had not been passed, there would have been some $220 million fewer nationals in
circulation during the peak of the small note era. This would have translated into a roughly 25 percentage
decrease in the number of them available to collectors!
As for just which small size nationals became more common as a result of the FHLB act, it was the
big city bank issues. The big city banks, simply by virtue of their size, held the overwhelming dollar value
of available uncommitted capitalization, and their savvy management put it to work to their advantage (FR
Board, 1932, p. 479).
In economic terms, the big city banks already were basking in a surplus of cash whereas the small
country banks were strapped. Thus, the big city banks preferentially got to increase their circulations. After
the smoke cleared, the well-intended rider on the FHLB act didn?t do the economy or the little guy any good.
Figure 3. Graph showing the
impact on the total outstanding
circulation of national bank
currency by the Glass-Borah
Amendment. The tic marks on
the horizontal axis represent
December 31st of the years
shown.
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The Phoenix National Bank
An excellent example of bankers who took advantage of the Glass-Borah Amendment were those
at The Phoenix National Bank, Arizona. Their circulation was $150,000 backed by 2% bonds going into
1932, a figure that had held constant during the Series of 1929 era up to then. In August 1932 they bought
$350,000 worth of the glamorous high yield bonds in four lots that bore interest at between 3% and 3-3/8%,
boosting their circulation to an astronomical for them half million dollars.
In order to make their investment in these bonds pay twice, they had to loan the $350,000 that their
bonds bought. This was a high-risk proposition at that point in the Great Depression but they did circulate
the new currency once it arrived so they somehow put it to work.
In August 1933 they sold $98,000 worth of 3 percent bonds. This was followed in June 1934 by the
sale of $252,000 of their remaining highest-yield bonds; specifically, $175,000 of 3-3/8 percenters and
$77,000 of 3-1/8 percenters, leaving them with their original $150,000 circulation backed by their old 2%
bonds. They apparently felt so cleansed in getting rid of that circulation, they unloaded the remaining
$150,000 of their 2% bonds in August 1934, thus, getting completely out of the note-issuing business.
In this peculiar case, the rate of bond sales beginning in August 1933 exceeded the rate at which the
National Currency Redemption Agency in the Treasurer?s office could scavenge their excess notes from
circulation. The result was that no type 2 notes were sent to the bank.
The bank was issuing $10 and $20 type 1 Series of 1929 notes at the time the bankers ramped up
their circulation to $500,000 in 1932. The Comptroller?s clerks covered most of new $350,000 using $20s;
specifically, sheet serials 948-1094 sent August 12th, 1095-3047 sent August 30th, 3048-3662 sent August
31st, and 3663-3830 sent September 17th, totaling $345,960. $10 sheets 3425-3492 totaling $4,080 were
included in the August 31 shipment comprised the remainder. [These shipments total $350,040, because the
September 17th shipment of $20s included an extra $40 to cover worn notes redeemed from circulation.]
The Comptroller?s inventory of notes for the bank at the time the bankers bought these bonds was
insufficient to cover them, so shipment of most of the notes was delayed until new printings could be
received from the Bureau of Engraving and Printing; specifically, $20 sheets 1095-3662 on August 30, 1932
and 3663-4702 on September 17th along with $10s 3813-5350.
The last sheets sent to the bank were $10 4126 and $20 3974, both from the printing that arrived
September 17, 1932. Significantly, of the 3,974 $20 type 1 sheets worth of notes issued from the bank, 73%
Figure 4. The Glass-Borah Amendment encouraged the bankers at The
Phoenix National Bank to increase their circulation from $150,000 to
$500,000 in 1932 through their purchase of $350,000 worth of high-yield
bonds as allowed under the amendment. This note send to the bank on August
30, 1932 was included in that increase from a printing that was received from
the Bureau of Engraving and Printing that same day, which allowed the
Comptroller of the Currency?s office to fully cover the increase.
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were from the initial shipments made to cover the Glass-Borah bond purchases. Of the $20 type 1 notes
reported from the bank as of 2021, 70% are from these shipments.
Outcome
The last gasp tilt toward keeping national currency viable was the ill-advised Glass-Borah rider to
the Federal Home Loan Bank Act of 1932 that bolstered its profitability for the bankers by allowing them
to use bonds with interest rates of up to 3-3/8 percent to secure their circulations. The amendment was a
populist measure designed to inflate the total money supply so some would trickle down to the little guy on
the bottom rung of the economic ladder during the depths of the Great Depression. In reality, it just made
the big city bankers richer and temporarily burdened the economy with an increased dose of more inelastic
currency.
The worst fears of Hoover?s Treasury officials that the national bank note supply could inflate by
$1 billion to $1.7 billion as a result of the Glass-Borah Amendment didn?t come to pass. The actual increase
was $220 million above the pre-FHLB act circulation of $675 million in 1932.
The circulation privilege on the high yield bonds expired on June 22, 1935. Next, the Treasury called
all the remaining 2 percent bonds that carried the circulation privilege on August 1, 1935. That was the end
of inelastic national currency so reviled by economists and Treasury officials. Thus, the Roosevelt?s New
Deal Treasury got rid of the last of it in 1935 by executive action, not through market forces as envisioned
by the framers of the Federal Reserve Act back in 1913.
Sources of Information and Sources Cited
Awalt, F. G., 1932, Increase in the Circulation of National-Bank Notes; in, Annual Report of the Comptroller of the Currency: U. S.
Government Printing Office, p. 4-5.
Comptroller of the Currency, 1863-1935, National currency and bond ledgers: Record Group 101, U. S. National Archives, College
Park, MD.
Comptroller of the Currency, issued annually, Annual Reports of the Comptroller of the Currency: U. S. Government Printing Office.
Federal Reserve Board, Aug 1932, Review of the Month, home loan banks, p. 474-476, & Recent legislation on national bank note
circulation, p. 478-480: Federal Reserve Bulletin, vol. 18, no. 8.
O=Connor, J. F. T., 1935, Table 4-Authorized capital stock of national banks, circulation secured by bonds, etc.; in, Seventy-Third
Annual Report of the Comptroller of the Currency for the year ended October 31, 1935: U. S. Government Printing Office,
852 p.
United States Statutes, National Bank Act and amendments of various dates; Federal Reserve Act and amendments; Federal Home
Loan Bank Act of Jul 22, 1932: U. S. Government Printing Office. Wikipedia:
http://en.wikipedia.org/wiki/Federal_Home_Loan_Bank_Act.
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Gardiner H. Wright & Company, Bog Iron
by Terry A. Bryan
One of the earliest industries in Colonial America was the refining of iron from ore. This grew to amount to
about 14% of the world?s iron by the time of the Revolution. British industry was the main beneficiary of American
iron, but the need for cannonballs and chain caused the rebels? iron furnaces to be strategic targets for British troops.
Beyond military supplies, the industry supplied the iron ore carriers, known as Durham Boats, that brought
Washington across the Delaware River for his Christmas 1776 attack on Trenton.
The iron industry needed ample raw materials and labor. Large forge installations required huge amounts of
firewood, charcoal, lime flux and labor to maintain furnace operations year-round. Transport from mines was
primitive, so forge complexes were built close to supplies and waterpower. Wood supplies became more distant as
forests were cut away. Shelter and sustenance for laborers was a major logistics problem in rough backwoods.
The difficulties of large-scale processing of ore from mines caused smaller, seasonal operations to become
practical. Small furnaces near ?bog iron? deposits proliferated. Surface deposits of ore are
produced by various chemical and bacterial actions on iron-bearing acidic groundwater. These
surface springs are associated with wetlands, hence the boggy association. Every few decades
the bogs re-grow more ore. The Romans and the Vikings knew how to extract iron from such
sources. The Viking settlements in Newfoundland and Iceland harvested bog iron.
Similar to the blacksmith?s forge setup, iron ore can be smelted in a pile of charcoal with air
blown by a bellows. Released iron separates from the impure slag in the melted mass. Surface
ore could be processed by small seasonal operations in rural locations.
Bog iron can be smelted (iron removed from the raw ore) in a
charcoal-fired clay chimney for continuous production. These small
furnaces were called ?bloomeries?. The ?bloom? was the porous, almost foamy, impure
iron that was produced. Wood started the heating process, and charcoal fuel achieved the
high temperature needed to melt and facilitate the chemical reducing process for the ore.
Huge pyramids of wood were slowly smoldered for enough charcoal to produce a 1:1
weight ratio of fuel to ore. Low percentage productivity was achieved when the iron
floated to the top as liquid slag was released from the bottom. Usable iron was made by hammering the porous
material. At the time, there was no process to extract more metal from the waste. Forced-air blast furnaces have
replaced this method in industry.
Bog iron deposits are found distant from traditional mountainous mining country. Low-lying areas of Delaware,
Maryland and New Jersey had many small furnaces built. Abundant waterpower for the bellows and thick forests
allowed months of operations before winter made living in the woods impossible. Furnace companies often owned
thousands of acres of woodland; charcoal production used tons of wood. Where limestone was unavailable in these
coastal areas, pulverized oyster shells provided flux. Furnace operators were sometimes allowed subsidies for road-
building similar to later public utilities. Many firms, partnerships and ventures rose and fell for over a hundred years
in these three states. Some surface iron deposits were so large that export to other states took place. At least two
Governors of Delaware became rich from iron exports from their properties.
In 1815, ?Delaware Furnace? was established along the south bank of Indian River at present-day Millsboro,
Delaware by William Dagworthy Waples. The area was already a major location of 15-20 grist mills below dams at
the headwaters of the river. Waples? furnace and ore export rapidly became the largest such operation in the state.
Waples? son-in-law, Samuel Gardiner Wright moved from New Jersey to take over operations in 1822. From 1828
to 1830 Delaware Furnace Company produced some 450 tons of pig iron and 340 tons of castings. Samuel?s son,
Gardiner Harrison Wright (1806-1886), became the operator in 1832, and smelting continued until 1836.
The Wrights continued to buy and export bog iron ore. A small ?cupola? furnace continued operation to
re-melt pig iron for castings until 1879. The charcoal operations continued to some degree into the 1930s.
About 1840, Gardiner Wright managed his works from the County Seat,
Georgetown, Delaware, and built a substantial home there. He eventually became
President (1862-1875, then Cashier 1875-1882) of the Georgetown Branch of the
Farmers Bank of the State of Delaware. As President, he participated in the
decision to remain a state bank. The Farmers Bank of Delaware was the last
bank in the United States to have its state government retain a significant
ownership interest.
Slightly magnetic
Delaware bog iron ore
with appropriate
refrigerator magnet.?
Cross section of a bloomery furnace.
Gardiner Harrison
Wright, bank President.
Photo-Georgetown
Historical Society. Gardiner H. Wright?s 1841 mansion
in Georgetown, Delaware, on the
National Register of Historic Places.?
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Wright?s membership in the Delaware Department
of the Great Central Fair of the U.S. Sanitary
Commission in 1864 and his tombstone in the Episcopal
Church Cemetery in Georgetown, Delaware both refer to
him as ?Colonel?. No military record was found.
Delaware Furnace Co. established a company store
and grist mill across the river from the furnace site. The
tiny village was Washington, Delaware. Washington lost
out to Millsborough when the post office moved across
the mill dam to the south side settlement. The Wright
store operation also moved to the south side of Indian
River, and progress reduced Washington to a no-name strip of houses. ?Millsborough? was shortened to ?Millsboro?
in 1837. The town became an important shipping point for produce and, of course, a milling center. More recently,
it is central to the gigantic broiler chicken industry of the area.
A piece of Delaware Furnace scrip on bank note paper?appeared in the Dorothy Gershenson auction of D. C.
Wismer?s (daughter?s) collection in the 1960s. It has a
printed 183_ date filled in with a zero; this is probably too
early a guess, inasmuch as the name of the town changed
in 1837, and scrip issues appeared in conjunction with the
financial panic of that year. One or two more copies of
the same note have been in more recent auctions on thin
white paper. Draper, Underwood, Bald & Spencer is the
imprint. The One Dollar denomination is not common
among scrip notes from rural areas.
The only trace of the large Millsboro industrial
operation today is a riverfront city green space, named Cupola Park, after the small remelting furnace. Bog iron ore
is still to be found along the many streams in the area.
References:
Gerkin, Sandie. ?Millsboro Iron Furnace: Once a Thriving Industry.? High Tide News (June 2017).
Heite, Edward F. ?The Delmarva Bog Iron Industry.? Northeast Historical Archaeology, 3, no. 2 (1974).
Lunt, Dudley. The Farmers Bank. Dover, 1957.
Scharf, J. Thomas. History of Delaware. Philadelphia: Richards, 1888.
?History of Millsboro.? www.millsborochamber.com
?Memorial of the Great Central Fair of the U.S. Sanitary Commission, 1864.? www.archives.org
?Production of Bog Iron.? www.hurstwic.org [recreation of Viking methods].
?Wright Family Papers.? www.hagley.org/research/search-hagley-collection
Thanks to Rosalie Walls for access to the Marvel Museum of the Georgetown Historical Society.
Gardiner H. Wright signed as President of the Georgetown branch of the Farmers Bank
of the State of Delaware on this one dollar note of 1862. The main office was in Dover,
Delaware, and notes were filled in for the branches.?
One dollar scrip of Wright?s Delaware Furnace Store, unissued remainder of 183(7).
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The Promise of a Florida Soldier: Hansford Herndon and his 1862 Promissory Note
to the Trustees of the Pensacola & Georgia Rail-Road Company
by Charles Derby
Hansford Herndon was back home only five
months after he mustered into Company F of the
5th Regiment of Florida Infantry and joined the
fight for the Confederacy. It had been a long haul
for the 29 year old, and a wound to his hand at
Sharpsburg (Antietam) gave him a month long
furlough to recuperate in his north Florida home.
Just before returning to the battlefront, he had
borrowed money, probably to support his wife
and six young children, his youngest born just that
year. Who better to borrow from than the richest
men in the area, John McGehee and William
Bailey, trustees of the Pensacola and Georgia Rail
Road Company? So, on October 30th, 1862, in
Madison, Florida, Hansford Herndon signed a
promissory note to McGehee and Bailey for
$18.01, leaving his ?X? mark on the document
since he did not have the opportunity of an
education and could not sign his own name (Fig.
1). Robert Kinney1 signed as witness to the
transaction, and with his business concluded,
Hansford headed back to the war in Virginia. The
fate of these men in the months after the signing
of this promissory note lends credence to the old
Southern adage that they were engaged in "a rich
man's war and a poor man's fight."
How had Hansford Herndon gotten to this
point in his life? His had been a hard life.2,3 He
was one of 14 children born to John Richard
Herndon (1785-1852) and Pinkney (Pinkey)
Padgett Herndon (1803-1866). The family moved
from Colleton County, South Carolina, to Appling
County, Georgia, in 1832, where Hansford was
born on December 12th of that year. By 1839, the
family continued their migration, to Jennings in
Hamilton County, Florida, just south of the
Georgia border. Hansford and siblings grew up
fast, worked hard, and had little time for school.
In 1850, 17-year old Hansford married 16-year
old Nancy Ann Elizabeth Westberry (1833-1909)
in Hamilton. They settled in Echols County,
Georgia, just over the Florida border and began
raising a family. Several of Hansford?s siblings
also moved to Echols County, including younger
brother James. By 1860, Hansford had six
children (Charles, Elizabeth [Liz], Allen, Susanna
[Sue], Georgia Ann, Harriet). His work as a
laborer had yielded a savings of only $300.
John McGehee, William Bailey, and the
Georgia & Pensacola Rail Road
The promissory note states that Herndon is to pay
the said amount ?to William Bailey and John C.
McGehee, Trustees of the Pensacola and Georgia
Rail-Road Company, or Assigns, at the Office of
Figure 1. Hansford Herndon?s $18.01 promissory note to William Bailey and John C. McGehee. Herndon placed ?his
X mark? next to the ?L. S.? printed on the note. ?L. S.? is an abbreviation for the Latin phrase logus sigilli, which
means ?place of the seal? and indicates where the signer should place his seal on the document to authenticate his
signature.
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the State Bank of Florida, in Tallahassee.? Who
were these men and institutions? Life was very
different for McGehee4,5,6 and Bailey7,8 than for
Herndon. John Charles McGehee (Fig. 2) was
born in Abbeville, South Carolina, in 1801. He
trained as a lawyer and apprenticed in the law
office of John C. Calhoun, from whom he
acquired strong beliefs in States rights. In 1831,
McGehee married well and moved to Madison
County, Florida, where he purchased the
plantation, Cheuleotah (Native American for
?pine hill?). Though Madison is small now, from
the 1830s to early 20th century, it was an
important and influential town in Florida.9
McGehee became a member of the Port Saint
Joseph Convention which in 1839 drafted
Florida's first Constitution. In 1841, McGehee
became Judge of the Court of Madison County.
His strong views on States rights made him a
staunch secessionist, and in 1861, he was selected
to represent Madison County in the Florida
Secession Convention called by Governor
Madison Starke Perry. In fact, McGehee was
elected the Convention?s president, and he led
Florida to become the third Southern state to
secede from the Union. During the war, Governor
Perry chose McGehee as one of his four
counselors. After the war, McGehee moved to
Mexico, but he returned to Madison in 1866. He
became deeply involved in the rail road industry,
and led the building of 15 miles of railroad
between Greenville and Madison. He died in 1881
and is buried in Madison.9
William Bailey (Fig. 2) was born in Georgia
in 1790 and moved to Florida in the 1820s. He
became a planter with plantations in Jefferson and
Leon counties. He fought in the Seminole War in
1840 and earned the rank of general. The year
1856 was monumental for Bailey: he established
the Southern Rights Manufacturing Co. textile
mill, and he founded the State Bank of Florida in
Tallahassee. He was a member of the
Tallahassee Railroad Board of Directors in
1861-1865. He had the rank of general in the
Civil War and was present at the Battle of
Ulustee. He died after the war ended, in 1867.
The Pensacola and Georgia Railroad (P&G)
12,13,14 was chartered in January 1853. It took over
the Tallahassee Railroad in 1855, which ran south
from Tallahassee to St. Marks, a port on the Gulf
of Mexico. In 1858, the P&G constructed the
Lloyd Railroad Depot and the Tallahassee station.
The P&G was active during the Civil War,
especially because of the branch line that was
built from Tallahassee to Lake City in 1860 and
to Quincy in 1863. After the War, the P&G was
merged into the Jacksonville, Pensacola, and
Mobile Railroad in 1869. McGehee and Bailey
were trustees of the Georgia & Pensacola Rail
Road. Figure 2 shows a deed of trust, dated April
1, 1860, that invested McGehee and Bailey as
trustees with a lien on the railroad between
Tallahassee and Lake City (Fig. 2).
Hansford Herndon, Florida Soldier
Five months before Hansford received his loan
from McGehee and Bailey, he had joined the
Southern cause. He enlisted on May 7th, 1862, in
Hamilton County, Florida. He joined for a three-
year stint with Company F, 5th Regiment, Florida
Infantry, led by Captain Frink.15 He joined his
brother, James Perry Herndon, who though seven
years younger than Hansford, had already enlisted
Figure 2. Top, John McGehee (left) 6, William Bailey
(right)7. Center, 1860 P&G deed of trust, signed by
McGehee & Bailey 10,11
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
285
in Captain Frink?s Company F, on March 14,
1862. No photographs of Hansford have survived
if any ever existed, but if he resembled brother
James, Hansford would have been 5?10?? tall with
dark hair and complexion and with blue eyes.
Hansford?s regiment was sent to Virginia to
join the Army of Northern Virginia. On
September 17, Hansford was wounded at
Sharpsburg (Antietam) and treated in General
Hospital No. 21 in Richmond on September 27.
On October 3rd, he received a thirty-day furlough
and $72 for two months of pay and clothing (Fig.
3). He spent his furlough back home, and just
before returning to the front, Hansford borrowed
his $18.01 from Bailey and McGehee.
The following spring, the war season was
intense. Hansford?s all-Florida brigade was led by
Brig Gen Edward Aylesworth Perry, a future
governor of Florida (Fig. 4).16 Hansford was
wounded in the hand at the Battle of
Chancellorsville on May 3rd. Brother James was
also wounded. Hansford and James were patched
up and were soon marching into Pennsylvania.
But Gen. Perry came down with typhoid fever and
missed the Gettysburg Campaign, so Perry?s
Brigade was commanded by Col. (later General)
David Lang (Fig. 4), who had enlisted in 1861 as
a private in the 1st Florida Infantry and quickly
rose in the ranks.17,18 So, Lang led Perry's Brigade
on a July 2 attack of the center of the Union
defensive line on Cemetery Ridge. The brigade
advanced past Codori?s farm but was pushed back
by Union troops from the III Corps. The next day,
the Floridians were supporting Pickett?s Charge,
but their advance was stymied by withering fire
from the artillery of Lt. Col. Freeman McGilvery.
Then, disaster struck: their flank was attacked by
Brig. Gen. George J. Stannard?s 2nd Vermont
Brigade, with devastating results: 60% of its 700+
soldiers were killed or wounded. Captain Frink
died that day.15 Hansford was relatively fortunate:
he was wounded in his right ankle, captured, and
the next day, July 4th, admitted into 12th Army
Corp Field Hospital of the Army of the Potomac.
On July 6th, as a prisoner of war, he was
transferred to Fort McHenry, Maryland, by the
orders of Union Gen. Schenck. Soon, he was
transferred to the prison at Fort Delaware, New
Castle, Delaware. Brother James was also
wounded and captured at Gettysburg and sent to
Fort McHenry and Fort Delaware. Fort Delaware
was a desolate and isolated place located on Pea
Patch Island in the Delaware River (Fig. 5).19,20,21
It became a military prison for captured
Confederate soldiers in 1862, and that year
housed up to 3,500 prisoners. But a string of
prisoner exchanges and an influx of prisoners
from Gettysburg and Vicksburg brought Fort
McHenry?s prisoner population in mid-1863 to
more than 12,000. Because of the overcrowding,
extreme weather conditions in the summer and
winter, and poor sanitation, diseases ran rampant,
including smallpox. Hansford was one of Fort
Delaware?s victims: he died there on January 27,
Figure 4. Left, Gen. Edward Aylesworth Perry, from
1861-1865.16 Right, Col. (later Gen.) David Lang,
taken in Tallahassee.18
Figure 3. Receipt for $72 for pay and clothing
received by Hansford Herndon on October 3rd, 1862,
Hansford put his ?X? mark on this document, as he
did on his promissory note.
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
286
1864, of ?lung infection.? Hansford?s body was
taken across Delaware River and buried at Finn's
Point cemetery in New Jersey. Years later, in
1910, the U.S. government finally memorialized
Hansford and the other 2,435 Confederate
prisoners of war soldiers who died at the prison
with the construction of The Confederate
Monument (Fig. 5), an 85-foot-tall granite obelisk
bearing the names of these fallen soldier.
After the War
Hansford?s wife lived a long life in Echols
County, Georgia, dying there in 1909. Brother
James survived the war. He took the oath of
allegiance at Fort Delaware and was released on
June, 10, 1865. He returned home to Echols
County by September 1865, where he farmed and
raised a family. On April 21, 1892, at the age of
53 years old, he was murdered by fishing
companions, drowned in Suwanee River, and his
body not found until years later.22 Bailey and
McGehee lived till 1867 and 1881, respectively,
and though the war impacted them financially,
they continued to be well off. Hansford never
repaid them the $18.01 that he had borrowed; he
gave his life to the Southern cause before he could
return to Florida.
References and Footnotes
1 Robert McKinney was born in Georgia in 1822 and later
moved to Florida. In 1850 in Madison County, Florida, he
married Lucinda Lanier (born 1829 in Bulloch County, Georgia,
died 1895 in Polk County, Florida). They settled in Madison and
had four children. Like Hansford, McKinney was a farmer with
little money. But unlike Hansford, McKinney could write, so he
accompanied his friend Hansford to the financial transaction as
reader and witness. McKinney died in 1882.
2 U.S. Censuses, accessed in ancestry.com
3 Find-a-grave.com
4 History of John C. McGehee, February 18, 2016, Greene
Publishing, Inc.: http://www.greenepublishing.com/history-of-
john-c-mcgehee/
5 McGehee, Stephen Clay: The McGehee Family:
http://mcgeheefamily.org/southern-connections/
6 State Library Archives of Florida: Portrait of John C.
McGehee: https://www.floridamemory.com/items/show/155826
7 Florida Plantations Past:
www.dejaelaine.com/miscplantations2.html
8 ?William Bailey Plantation?
en.wikipedia.org/wiki/William_Bailey_Plantation
9 Hurst, Bob. 2009. Two giants of their times. Southern
Heritage News and Views, April 19, 2009.
http://shnv.blogspot.com/2009/04/two-giants-of-their-times.html
10 State Library Archives of Florida: Pensacola and Georgia
Railroad Company Bond:
www.floridamemory.com/items/show/34951
11 Confederate Railroads: www.csa-
railroads.com/Pensacola_and_Georgia_Railroad_Map.htm
12 Turner, Gregg M. 2008. A Journey into Florida Railroad
History. Gainesville, Florida: University Press of Florida.
13 Lewis, Lawrence, Adelbert Hamilton, John Houston Merrill,
William Mark McKinney, James Manford Kerr, and John
Crawford Thomson, editors. 1883. The American and English
Railroad Cases: A Collection of All the Railroad Cases in the
Courts of Last Resort in America and England. Edward
Thompson Company, Northport, New York.
14 Wikipedia ?Pensacola and Georgia Railroad:
https://en.wikipedia.org/wiki/Pensacola_and_Georgia_Railroad
15 Company A, 1st Regiment Florida Calvary Volunteers:
http://history-sites.com/cgi-bin/bbs62x/flcwmb/webbbs
16 Pensapedia ?Edward Aylesworth Perry?
www.pensapedia.com/wiki/Edward_Aylesworth_Perry
17 Wikipedia ?David Lang."
https://en.wikipedia.org/wiki/David_Lang_(Civil_War)
18 State Library Archive of Florida ?David Lang?:
https://www.floridamemory.com/items/show/37123
19 Bryant, Tracey, Escape from Fort Delaware, University of
Delaware Research On-Line Magazine, Vol. 2, No. 2:
http://www1.udel.edu/researchmagazine/issue/vol2_no2_security
/escape_from_fort_delaware.html
20 http://www.clubhotrod.com/hot-rod-lounge/53830-nice-
sunday-cruise-i-learn-some-civil-war-history.html
21 Wikipedia ?Fort Delaware?
https://en.wikipedia.org/wiki/Fort_Delaware
22 A tenant farmer of one of the killers told his deathbed story
of what happened to James Herndon?s body. He said that the
killers retrieved James? body at night and paid the tenant farmer
to hide it in a sinkhole, threatening to kill him should he report it.
Figure 5. Fort Delaware on Pea Island, and the Confederate memorial.19,20,21
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
287
On the 1940 emergency issues of Deventer,
The Netherlands
Roeland Krul
Antonius Marinus van de Waal (1890-1968) used to be Chief of the Archive for De Nederlandsche Bank
(DNB), the central bank of The Netherlands, from 1939 till 1956. When Nazi Germany attacked our country by
surprise in the early hours of May 10, 1940, people immediately began to hoard silver coins, so within a matter
of only a few days, hundreds of towns and cities started issuing emergency paper currency. Mr Van de Waal wrote
letters to every municipality in The Netherlands, in the name of the central bank, asking to indicate whether or
not they had issued any emergency notes, and if they did, if he could receive a few copies for the archives of De
Nederlandsche Bank. He is almost single-handedly responsible for this collection of about 400 notes. This
collection is also the foundation of a 1996 catalog by Alphons Toele and Hans Jacobi, that is essentially a must-
have for anyone interested in Dutch paper money.
What was as yet not known, until recently, is that Mr Van de Waal also built up a private collection of all
these notes for himself, and the first part of this collection was auctioned off by Amsterdam-based auction house
Crown Currency. As many of these issues are known to be extremely rare, there was some hard battle for most
of the notes on offer, but I managed to win a 50 Cents of Deventer, my home town! I was so happy I didn't
even bother to try for the 1 Gulden. But as luck would have it, a few weeks later the buyer of the 1 Gulden
regretted his purchase (he had wanted to have them both) and sold that note back to the auction house. As the
owner of the auction house is a friend of mine, he asked me if I would still be interested. Well YES PLEASE!
My hometown of Deventer has never actually issued emergency money, but it does exist! After Van de
Waal had not received an answer to his initial request for some notes, he kept chasing the municipal authorities
for responses, and so in October of 1940 he received a rather peculiar message: The municipal administration
regretted the delay, but it was caused by the fact that the notes had not yet been printed, and the person responsible
for printing the notes had been ill and only recently recovered. Obviously the plates were done already and then
the printer person fell ill, before the provincial government of Overijssel issued a ban on the issuance of local
paper currency (on May 13). Quite a unique situation!
Meaning that the notes have only been printed after the request by Van de Waal for some archive copies.
These notes, in denominations of 50 Cents and 1 Guilder have a print run of only twenty-five notes each. Thus,
by amount printed these are by far the rarest notes in my collection. It is unknown how many survive today, but
to the best of my knowledge the only other copies are the ones in the collection of the Central Bank.
Text on the obverse:
Emergency money - of the municipality of - Deventer
good for fifty cents / one guilder
Mayor and aldermen of Deventer
11 May 1940
Signatures: J.H. Huyser, secretary; & F.W.R. Wttewaall, Mayor
"This piece is an acknowledgement of debt, issued by the
municipality of Deventer for compliance with an indebtedness, and
will be redeemed by said municipality for its monetary value on a
date to be announced later"
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
288
More on Mayor Wttewaall:
One of the signatories is Frederik Willem Reinhard
Wttewaall (1880-1959), a scion of the noble family
Wttewaal van Stoetwegen. A distant relative of his was
once the owner of the Wickenburgh mansion near the
city of Utrecht, where I used to rent a room as a student
back in 1995-96.??
Frederik was the mayor of Deventer from 1929 till 1944. Briefly ousted by the Nazis,
he was reinstated in 1945. Previously he had been the mayor of neigbouring rural
municipality of Lochem, where a street is named after him. (Picture from Wikipedia).
Same text as 50 cents except denomination one gulden
SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346
289
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