Paper Money - Vol. VI, No. 4 - Whole No. 24 - Fall 1967

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OMNI 2 1 is o." ,/40,9r3l . MOM A 11.11N( '() 011).11,1 'E Y (7: %It ,1 1 ,111tI SII111( I 11 N1,11, \ xt.4* ENOS- 1. irinnioYsil Paper litenel DEVOTED TO THE STUDY OF CURRENCY r tor:COW. s [,7,,,w,m ^,r1:111212MENFM366 fi*a r r4 T , ..oky Note of a Chilean private bank, discussed in Richard A. Banyars economic and numismatic study of inflation in Chile, beginning on Page 107. 1967 Whole No. 24 No. 4 OFFICIAL PUBLICATION OF Cociet9 oi Paper litonq Collector, © 1967 by The Society of Paper Money Collectors, Inc. Illebee's, inc. "Pronto Service" NOWLEDGE PROFE SS IO Nik■ N uMI S MRTISTs li o • INC ' RESPONSRITY 4514 North 30th Street Phone 402-451-4766 Omaha, Nebraska 68111 U. S. SMALL SIZE NOTES All Superb, Crisp line. if not otherwise stated. # Indicates margin trifle close. Remember, at ilebee's "you get what you pay for - and WANTED - Silver Certificates Worn or New. We will allow 30% Premium in Exchange for other Notes, etc. Any Quantity $1 SILVER CERT. (none later than May 15th) $5 SILVER CERT. 201-1 1928 # $14.50 $17.50 205-1 1934 $24.50 201-2 1928A AU $5.00 # $8.50 ... 11.50 205-1 1934A AU $9 18.50 201-3 1928B 14.50 205-3 1934B 47.50 201-4 1928C Wanted-write 205-4 1934C 19.75 201-5 1928D # $175 195 00 205-5 1934D 17.75 201-6 1928E Wanted-Write Auto, Georgia 201-7 1934 # $9.75 12.75 Neese Clark 20.50 201-8 1935 # $10.75 13.50 205-6 1953 14.75 201-9 1935A AU $2.00 # $2.95 .... 3.75 205-7 1953A 14.75 201-10 1935B 10.95 205-8 1953B # $9 10.50 201-11 1935C AU $2.00, # $4.50 ... 5.75 201-12W 1935D Ty. 1 - Wide Rev. $10 SILVER CERT. # $3.75 201-12N 1935D Ty. 2 - Nar. Rev. 4.95 210-1 1933 Wanted # $3.50 201-13 1935E # $2.50 4.50 3.75 210-2 210-3 1934 193 •IA 49.00 11 50 201-14 1957 Gem 2.05 210-4 1934B Wanted 201-15 1935F # $2.25 3.25 210-5 1934C 24.50 201-16 1957A Gem 2.95 210-6 1934D 21.50 201-17 1935G No Motto 2.95 210-7 1953 29.50 201-18 35G mot. # $3.25 3.95 210-8 1953A 26.50 201-19 1957B Gem 2.95 210-9 195311 # 23 27.50 201-20 1935H # $2.00 2.95 Above Last Ten (10) 26.75 $2 LEGAL TENDER 102-1 1928 49.50 102-2 1928A Wanted 102-3 1928B Wanted 102-4 1928C # $19 26.50 HAWAIIAN ISSUE 102-5 1928D # $18 24.50 H201 1935A # $6.95 low nos. und. 900 Under 1,000 Under 2,000 11505-1 1934 $5 HSO5-2 1934A $5 # $29.75 H510 1934A $10 wanted-write H220-1 1934 $20 vg-au write H520-2 1934A $20 Wanted-write 8.95 14.95 13.95 12.95 74.50 31 50 102-6 102-7 102-8 102-9 102-10 102-11 102-12 102-13 102-14 1928E 1928F # $16 1928G # $12 1953 # $5 1953A # $5 1953B # $3.25 1953C # $4 1963 Gem 1963A 28.50 22.50 14.50 7.50 7.50 6.75 5.50 3.50 3.75 Above last six 31.50 NORTH AFRICA A201 1935A $1 16.50 RED "R" & "S" ISSUE A205 - 2 1934A $5 24.50 11201, 5201 Gem Pair 145.00 A210-2 1934A $10 '16 50 Another Pair # 127.50 Above Set (3) 72.90 $5 LEGAL TENDER 105-1 1928 AU $14 $27.50 105-2 1928A ExF $18 49.50 105-3 1928B AU $15 34 50 105-4 1928C 24.50 105-5 1928D 47.50 105-6 1928E AU $13 24.50 105-7 1928F 21.00 105-8 1953 18.50 105-9 1953A 14.50 105-10 1953B 12.50 105-11 1953C 9.75 105-12 1963 # $6.75 8.75 $5 FED. RESERVE 505-6GL 1934 18.00 505-9G 1934C 11.50 505-11J 1950 11.00 505-11K 1950 11.00 505-12.1 1950A 10.50 505-13.1 1950B 9.75 505-1!J 1950C 9.50 505-15J 1950-D 6.50 $10 FED. RESERVE 510-8(1 1934C 17.50 510-101 1950 18.00 510-11J 1050A 15.00 510-131 1950C 13.00 $20 FED. RESERVE 520-2D 1928A # $28 33.50 520-3G 1928B 32.50 520-511 1934 29.00 520-15J 1963 23.00 $1 LEGAL TENDER 101-1 1928 # 526 29.50 Nos. under 1,000 # $33 '19 50 Under 5,000 # $28 '13.50 WANTED TO BUY Small Gold Cert.-Gem tTne. only. Territorials: Alaska, Aria., Idaho, Indian, Nebraska, Washington. $1.00 FEDERAL RESERVE SETS 1963 Gran:than-Dillon, 1963.1 Gr::nallan-Fowler Either Set, Both Sets. Complete Sets (12) Superb Crisp 1 ne. Set 2# match all 24# match Complete Set, all 12 Districts 14.95 $15.75 $31.75 Complete Set, all "Stars," 12 Districts 1 5.9.5 21.95 41.95 Both Sets - on all 4S Notes, the last 2 # match. Just a few in stock 69.75 Single Notes, any District $1.60, Stars, each 1.90 WANTED - 200 each 1963A $1 Star Notes - New York & Atlanta. IMPORTANT BOOKS - Postpaid Donlon's "Catalog of Small Sire Notes," New 4th Edition $ 1.10 Kemm's "Official Guide of U. S. Paper Money" 1.10 Shafer's "Guide Book of Modern II. S. Currency" 2nd Edition (uses Donlon Nos.) 1.95 Friedberg's "Paper Money of the United States" New 6th Edition Sten s "Banknotes of the World" Volume I (Aden-China) 174:0500 Volume II (Colombia-Korea) 7.50 Volume Iit & - later this Winter. Order all four Volumes now and we will forward each just as soon as published. Advance order price 28.50 Send Stamp for Lists of World Proof Sets, Mint Sets. Gold, U.S.A. Items. LAY AWAY PURCHASES (Minimum $100.00) Write for details. Minimum Order $5.00 (except Books). Please add 75c for Airmail Postage, Registration, on Orders less than $50.00. Wishing the Season's Best to all our Friends and a New Year filled with Peace, joy and Prosperity. Paper #tenq VOL. 6 NO. 4 FOURTH QUARTER 1967 WHOLE NO. 24 PUBLISHED QUARTERLY BY THE SOCIETY OF PAPER MONEY COLLECTORS Editor Barbara R. Mueller, 523 E. Linden Dr., Jefferson, Wis. 53549 Research Consultant, Obsolete Currency Mrs. C. Elizabeth Osmun Publisher I. Roy Pennell. Jr., Box 3005, Anderson, S. C. 29621 Direct only manuscripts and advertising matter to Editor. Direct all other correspondence about membership affairs, address cnanges, and back numbers of Paper Money to the Secretary, Vernon L. Brown, Box 8984, Fort Lauder- dale, Fla. 33310. Membership in the Society of Paper Money Collectors, including a subscription to Paper Money, is available to all interested and responsible collectors upon proper application to the Secretary and payment of a 4 fee. Entered as second-class matter July 31, 1967, at the Post Office at Anderson, S. C. 29621 with additional mailing privileges at Federalsburg, Md. 21632, under the Act of March 3, 1879. Non-member Subscription. 85.00 a year. Published Quarterly. ADVERTISING RATES One Time Yearly Outside Rear Cover 837.50 8140.00 Inside Front & Rear Cover 35.00 130.00 Full Page 30.00 110.00 Half Page 17.50 60.00 Quarter Page 10.00 35.00 Issue No. 25 Issue No. 26 Issue No. 27 Issue No. 28 Schedule for 1968 Advertising Publication Deadline Date Feb. 15, 1968 Mar. 15, 1968 May 15, 1968 lune 15, 1968 Aug. 15, 1968 Sept. 15, 1968 Nov. 15, 1968 Dec. 15, 1968 CONTENTS Known and Reported Sheets of the 1929 National Bank Note Issues, by M. 0. Warns 103 A Tenderfoot Tracks Onepapa, by George Traylor 106 An Economic and Numismatic Analysis of Chronic Inflation in Chile, 1880-1960, by Richard A. Banyai 107 Collectors of Paper Money in the 18th and 19th Centuries (concluded), by Dr. Arnold Keller 113 Assistant Treasurer of the United States Silver Certificate 116 Here's Your Answer 116 Bank Notes Engraved by Harrisons in the United States (concluded), by William 1. Harrison 117 The Society of Paper Money Collectors, Inc. Proceedings of S.P.M.C. Annual Meeting 105 Smedley Reminisces About Founding of S.P.M.C. 115 Secretary's Report 126 society of Paper litonq Collector,4 OFFICERS President George W. Wait, Box 165, Glen Ridge, N. J. 07028 Vice-President William P. Donlon, Box 144, Utica, N. Y. 13503 Secretary Vernon L. Brown, P. 0. Box 8984, Fort Lauderdale, Fla. 33310 Treasurer I. T. Kopicki, 5088 S. Archer Ave., Chicago, III. 60632 APPOINTEES-1967-68 Librarian Earl Hughes Attorney Ellis Edlow BOARD OF GOVERNORS-1967-68 Thomas C. Bain, William P. Donlon, Harley L. Freeman, Nathan Goldstein II, Maurice M. Gould, Warren S. Henderson. Alfred D. I loch, Richard T. Hoober, Morris Loewenstern, Charles O'Donnell, J. Roy Pennell, Jr., Matt Rothert, Glenn B. Smedley, George W. Wait, M. 0. Warns. aiiiiiiiiiiiiiiiiiffinfirniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinuniniiiinifininimiiilliminiiimmililliiiiiiiiiiiiimillimmummiiiiiiiiiiiiiiiiiiiiiimiiniu.„ = = = = =-_-, Important Notice . = E EE = Paper Money Is A copyrighted Publication ---= = E = No article originally appearing in this publication, or part thereof or condensa- = • tion of same, can be reprinted elsewhere without the express permission of the Editor. = = - Although your Officers recognize the publicity value to the Society of occasional re- prints, they cannot allow indiscriminate use of the material from PAPER MONEY in == other publications even when condoned by the author. Therefore, authors should = Editorh contact t e for permission to reprint their work elsewhere and to make ar-s.- a- rangements for copyrighting their work in their own names, if desired. Only in this= = E way can we maintain the integrity of PAPER MONEY and our contributors. = i = = = 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111117 WHOLE NO. 24 Paper Money PAGE 103 Known and Reported Sheets of the 1929 National Bank Note Issues By M. 0. Warns During the past 21 years I have compiled a list of sheets of the 1929 National Bank Note issues known to exist. In this list note that all 48 States and the District of Columbia are represented with either Type I or Type II or both types. No sheets of this issue have come to light from the Territory of Hawaii (Bishop National Bank, Charter 5550) or from the District of Alaska (First National Bank of Juneau, Charter 5117 and First National Bank of Fairbanks, Charter 7718) although all three of these banks are represented in the 1929 National Bank Note issues. The only other outlying bank doing business during this charter period, the Virgin Islands National Bank of St. Thomas, V. I., never did get around to issuing notes as it was the fourteenth from the last of the banks to be chartered before the 1929 period of issuing currency had been brought to an abrupt end in May of 1935 by the newly passed banking law. There is an apparent scarcity of the sheets of the $50 and $100 denominations. Only four of the $50 sheets and three of the $100 sheets have been reported. Three of the $50 sheets and three of the $100 are from three differently named banks in Detroit, Mich., yet all three hear the same charter number. The fourth $50 sheet is on the First National Bank of Miami, Fla. All seven of these sheets are reported to be of Type I. It is of considerable interest to note that the following States are represented by only one city each: Arizona, Delaware, Nevada, North Carolina, and the District of Columbia. This nominates them for the extremely scarce category at this writing. It is well to note in passing that the $10 sheet on the First National Bank of Plainfield, New Jersey, Charter 447 has an inverted reverse. Recently two higher chartered numbered sheets were reported, a $10 and a $20, both on the First National Bank of Tuckahoe, New Jersey bearing charter 14189. The previously highest chartered sheet reported was a $5 value on the First National Bank of De Ridder, La. We now have reported a $5, $10 and $20 sheet, three different denominations in the 14000 charter bracket. Much more is to be learned from the sheets of this issue, as there are many more sheets in the hands of knowledgeable currency students and collectors. It is my desire that in the best interests of research many of these will be reported so they can be included in this authorita- tive reference list. My thanks to the following who have assisted in this effort: K. P. Austin, Ambrose Brown, Dorothy Gershen- son, Arthur Kagin, Aubrey Bebee, Wm. P. Donlon, the late Albert A. Grinnell, Paul Kagin, Abe Kosoff, Tom Settle, F. W. Spencer, Leo A. Young, Harvey Stack, and Benjamin Stack. ALABAMA Charter 3699 Decatur $5, 10 7944) Slocumb 5 13414 Mobile 5 ARIZONA 13262 Prescott 5 ARKANSAS 7046 El Dorado 10 9022 Newark 5 10406 Berryville 5 13632 Lake Village 5 CALIFORNIA 7999 Whittier 5 8065 Azusa 5 10167 Pasadena 5 10387 McFarland 5 13312 Winter 5 13340 Yreka 10 COLORADO 1016 Denver 10 1955 Denver 5 2179 Colorado Springs 5 2622 Fort Collins 10 6238 Colorado Springs 10 6437 Brush 5 7408 Denver 10, 20 8636 Johnstown 10 8752 Wray 10 9997 Saguache 5 12517 Denver 5 CONNECTICUT 2 New Haven 5, 10, 20 4 Stamford 5, 10, 20 791 Waterbury 5 943 Danbury 5 1128 New Haven 5 1216 Middletown 5 13038 Hartford 10 13704 New Haven 5 DISTRICT OF COLUMBIA 13782 Washington 5 DELAWARE 8972 Dagsboro 10 FLORIDA 6055 Live Oak 20 6370 Miami 10, 20, 50 13214 Palatka 5 13320 Brooksville 5 13370 Lakeland 5 GEORGIA 3983 Gainesville 10 7899 Waynesboro 5 9346 Monticello 5 13897 Jackson 5, 10, 20 IDAHO 6982 Idaho Falls 13288 Coure d'Alene ILLINOIS 3214 Peoria 6564 Granite City 8347 Bridgeport 5 9788 Pekin 10 10237 Chicago 10 11737 Chicago 10 13903 Peru 5 INDIANA 17 Richmond 5 872 Knightstown 5 956 Jeffersonville 5 1896 Greensburg 20 13580 Logansport 10 13717 Marion 5 IOWA 792 Waterloo 5 994 Clinton 10 5022 Sioux City 10 8340 Thornton 5 9306 Council Bluffs 5 13321 Des Moines 5, 10 13473 Grinnell 5, 10, 20 KANSAS 3472 Osborne 10 3745 Mankato 5, 10 4642 Oberlin 10 6797 Coffeyville 10 9773 Dighton 20 10041 Oakley 5 13406 Liberal 5 13924 Independence 5 KENTUCKY 11988 Flemming 5 13612 Harrodsburg 5, 10 LOUISIANA 3600 Shreveport 5 13648 Shreveport 10 14168 De Ridder 5 MARYLAND 8244 Brunswick 5 11193 Perryville 5 MAINE 498 Augusta 5, 10, 20 4128 Portland 5 MASSACHUSETTS 421 Westboro 5 789 Newton 5 895 Conway 5 1527 Boston 5 2435 Springfield 5 4907 Springfield 10 13222 Buzzards Bay 5 MICHIGAN 155 Ypslanti 5 1235 Cold Water 5 2714 Ann Arbor 5, 20 5 10527 Detroit 5, 10, 20, 50, 100 10 (First Nta'I Bank in Detroit) 10527 Detroit 5, 10, 20, 50, 100 5, 10 (First Wayne National 5 Bank) VVIONAL t7 U %CV . %mt. — WIVE 124/116.111.1% Pi NAITIORIAIL CV II E MN 1 TAW vii11111".*Wt"*"...Iseeolea • Fr FIST B0000014 WOOL MX * BALDWIN cr WISCONSIN 'VV. H•L•Utti istie,v00-1"41.41W TM HET MINK MK IF BAIDWIN WISCONSIN ev■Ro (4.1•ND 1101.LAHS 0000001A OW/ 4-.41 Tiff PET NATIONAL BM If BALDWIN 0 WISCONSIN 0 FIVE IN ILLAHS E0000014 E0000014 II FIB WM WM* BALDWIN IRKS/WWI MWEINNALANS F000001A e F000001A 0 000001A FIVE 1101.LARS CO 00001 4 PAGE 104 Paper Money WHOLE NO. 24 10527 Detroit 5, 10, 20, 50, 100 (First Nat'l Bank in Detroit) First National Bank NOTE: Due to reorganiza- tions of the above Detroit banks during the 1929 charter period three different hank names appear with the charter number remaining the same. This is unique! 12027 Marquette 5 12561 Evart 5. 10, 20 12898 Dearborn 10,20 13307 Niles City 10 MINNESOTA 579 Rochester 10 8989 Worthington 5 13081 Olivia 5 13486 Litchfield 20 MISSISSIPPI 3430 Vicksburg 5 8593 Moss Point 5 10738 Columbus 5 MISSOURI 260 St. Charles 10 6383 King City 10, 20 7351 Braymer 5 9519 Windsor 20 MONTANA 4396 Helena 5 8589 Whitefish 5, 10, 20 12608 Lewiston 5 NEBRASKA 2978 Omaha 10 7421 Randolph 10 7425 Emerson 20 8823 McCook 20 9395 Grand Island 5, 10, 20 10025 Belden 5 13339 Oakdale 5, 10 13420 Kimball 5, 10 13453 Pilger 5 NEVADA 8561 Ely 5, 10 NEW HAMPSHIRE 808 Lebanon 5 2299 Keene 5 5258 Gorham 5, 10 NEW JERSEY 447 Plainfield 10 9367 Ramsey IC 9867 West Hoboken 5 12977 Woodbine 5 13537 Kearny 5 14189 Tuckahoe 10, 20 NEW MEXICO 1750 Santa Fe 5 6597 Belden 5 NEW YORK 119 Elmira 20 223 Cooperstown 20 280 Cooperstown 20 316 Champlain 5 340 Batavia 5, 10, 20 353 Candor 10, 20 2661 Millerton 5 4906 Babylon 5 7705 Freeport 5, 10 8923 Lynbrook 5 10043 Livingstone Manor 5 0159 Silver Creek 5 0444 Forrestville 10, 20 2892 Brooklyn 5 3149 New York City 10 3237 New York City 5, 10, 20 3393 Syracuse 5 3493 Odessa 20 3590 Callicoon 5 3592 Mamaroneck 5, 10 3952 Buffalo 5 3965 Brockport 10 NORTH CAROLINA 13636 Henderson 5 NORTH DAKOTA 13385 Valley City 5 13398 Bismarck 5 13454 Carson 5 OHIO 3 Youngstown 5, 10 76 Canton 10 1092 Greenville 10 13535 Delaware 10 2524 Cincinnati 5 3157 Wapakoneta 10 5065 Columbus 10 6059 Oxford 5 13490 Washington Court House 10 13832 Portsmouth 20 13922 St. Clairsville 5 OREGON 8036 Forest Grove 10 9348 Ontario 5 9763 Prairie City 5 13903 Bend 5 13299 Portland 5 PENNSYLVANIA I Philadelphia 5 25 Marietta 10 213 Philadelphia 10 507 Lock Haven 5 552 Westchester 10 685 Pittsburgh 5 1233 Easton 20 6301 Pittsburgh 5 6676 Rimersburg 5 9385 Fawn Grove 10 13032 Erie 5 13644 Donora 5 14093 Union City 5 14156 Hooverville 5 RHODE ISLAND 1150 Ashaway 5 1328 Providence 5 SOUTI I CAROLINA 10085 Marion 5 10660 Sumter 20 10663 Chester 5 SOUTH DAKOTA 9376 Selby 5 13460 Britton 13483 Chamberlain 5, 10 TENNESSEE 1296 Nashville 5 10198 Fayette 10 13349 Memphis 10 13539 Knoxville 10 13635 Johnson City 5 TEXAS 8134 Blanco 4525 San Antonio 5 10078 Trinity 5 10274 Aransas 5 10 13315 Edinsburg 5 WHOLE NO. 24 Paper Money PAGE 105 5 VERMONT 9185 Garfield 5 WISCONSIN 10 5 228 Orwell 1195 Middlebury 7267 Bradford 5, 10 5 10 9280 Bremerton 9411 Okanogan 11935 Stanwood 10 5 5 7040 Edgerton 9606 Neilsville 5 VIRGINIA 7709 Petersburg 5 13444 Reardon WEST VIRGINIA 10 10106 Baldwin 13487 Phillips 5 9343 Danville 5 5164 Wheeling10285 Reedy 5 5 WYOMING5, 10 WASHINGTON 10480 Albright 5 10844 Lovell 5,10 8064 Wenatchee 5 13627 Richwood 10 11380 Cheyenne 13146 Honey Grove 13428 Clarksville 13578 San Antonio UTAH 1695 Salt Lake City 2059 Salt Lake City 6012 Price 9403 Salt Lake City 5 10 5 5 5 10 Proceedings of S. P. M. C. Annual Meeting The seventh annual meeting of the Society of Paper Money Collectors, Inc. was held on August 11, 1967, at the Americana Hotel in Miami co-incident with the ANA Convention, with approximately one hundred in attendance. Secretary J. Roy Pennell, Jr. reported that the gross membership of the Society had now reached 2,142. After deducting losses due to deaths, resignations and other dropouts, the Society now has 1,534 active members, an increase of about twelve per cent in the past year. He also informed the members that after lengthy negotiations the Post Office Department has accorded the Society second class mailing privileges which should assure faster and speedier service. Mr. Pennell expressed regret that due to pressure of business he was resigning his office as Secretary. Treasurer James L. Grebinger reported a bank balance of $5,434.62 as of June 30. He pointed out that although this indicated a deficit for the year's operations, actually the Society is better off financially than a year ago be- cause more of the routine bills had been paid by the June 30 cutoff date, and our balance also reflected a large payment toward the printing cost of our first book. Mr. Grebinger also expressed regret that he could not con- tinue as Treasurer. Editor Barbara Mueller indicated further improve- ments in quantity and quality of articles submitted for the magazine PAPER MONEY and said that in most issues she had been able to strike a satisfactory balance of subject matter in relation to the various categories of paper money and advertising. She recommended con- tinuance of present policies. Attorney Ellis Edlow presented a proposed amendment to the constitution to help satisfy Federal requirements as to the Society's status as a non-profit organization. Dick Hoober, Chairman of the Wismer Committee, reported that the first book, Florida Obsolete Notes and Scrip by Harley L. Freeman, was now on the market and priced at $4 to members, $4.75 to non-members. Other books well along towards publication include Nebraska, Indiana, Texas and Pennsylvania. Most of the other states are in various stages of development. Maurice Gould, Chairman of the Awards Committee, presented these Literary Awards: 1st—Everett K. Cooper for his article "Confederate Money, A Survey of the Source and Use of Paper" 2nd—Joseph Persichetti for his article "Federal Re- serve Bank Notes, Series of 1929" Honorable Mention: Forrest W. Daniel for his article "The Paper Money Laundry" and Peter Huntoon for his article "1902 National Bank Notes" Mr. Gould presented these Awards of Merit: 1. To Harley L. Freeman for his book Florida Obsolete Notes and Scrip 2. To Barbara R. Mueller for her outstanding work as editor of the Society's magazine PAPER MONEY 3. To Nathan Goldstein II for his unceasing promo- tion of the Society in his column "Paper Money Periscope" Finally, Mr. Gould announced these appointments as Honorary Life Members of the Organization: 1. Mrs. C. Elizabeth Osmun, for her continuing great efforts as consultant on the Wismer Project. 2. Thomas C. Bain, past President of the Organiza- tion. 3. Glenn B. Smedley, former Treasurer. Harley Freeman, Chairman of the Nominating Com- mittee, presented a slate of eight candidates for the Board of Governors to replace those where terms had expired, and to fill some of the vacancies occasioned by the recent increase in Board membership. Another candidate was nominated by the members in attendance, and these were elected to the Board for a two year term: Thomas C. Bain, William P. Donlon, Warren S. Henderson, Richard T. Hoober, Charles O'Donnell, J. Roy Pennell, Jr., Matt Rothert, George W. Wait and Melvin 0. Warns. Hold- over members of the Board are: Harley L. Freeman, Nathan Goldstein II, Maurice M. Gould, Alfred D. Hoch, Morris Loewenstern and Glenn B. Smedley. President George Wait thanked Vernon Brown for his work in making the excellent banquet arrangements. At the meeting of the Board of Governors which immedi- ately followed the General Membership Meeting these officers were elected for a two year term: President George W. Wait Vice President William P. Donlon Secretary Vernon L. Brown Treasurer I. T. Kopicki Paper Money WHOLE NO. 24PAGE 106 A Tenderfoot Tracks Onepapa By George Piercing, hawk-like eyes narrowed, sinews taut, jaw clenched grimly, the hunter senses trail's shadowy end. Through the trees, in the next clearing, may lie the answer to his long quest and tormenting question. Who will be sitting cross-legged by the tipi? Will it be a real Indian Chief, resplendent in quill-embroidered buckskins, long shell earrings and a feathered bonnet with horse- hair streamers and white weasel pendants? Or will it be only the redskinned figment of some artist's imagina- tion, similarly arrayed, but existing only in fancy? The sole clue lies in an educated guess by sincere but misinformed palefaces, indicating that the proud, stern visage adorning F271-281 belonged to Sioux Chief Onepapa. Finally, in the flickering light of the council fire, truth, or at least part of it, will be revealed. The chase is over, and the novice hunter, red-eyed and exhausted, contem- plates the now secured quarry. He takes quill in hand to detail his discovery, and the perils of Indian hunting in 1967. For any whose numismatic meanderings have casually introduced them to our noble Sioux friend, but whose curiosity did not extend past Mr. Friedberg's terse de- scription, this may be, if not inspiring, perhaps interest- ing. While directed primarily to other newcomers (such as I) to the realm of Saddle Blankets, allow me to note in passing that several contemporary authorities in this field also had no earthly idea as to the whys and where- fores of the Chief, other than the sketchy remarks on page 65, Second Edition, of Paper Money of the United States. This book, although an excellent work, invalu- able to all who search the happy hunting ground of our nation's currency, is not infallible. This fallibility, how- ever, should not be disheartening; instead it should be encouraging to us tenderfeet, as will be demonstrated. Since I had never before heard of Onepapa, (in itself not very surprising), the first step in an effort to identify him logically seemed to be the study of some more or less scholarly works, such as encyclopaedias, histories, and books on Indian lore. None contained the merest mention of his existence. Therefore, I sagely concluded that Onepapa was not a famous chief (if indeed a chief at all). So, I decided to press on. The next effort in pursuit of this ghostly redman de- manded great imagination and courage. I wrote the Bureau of Indian Affairs, which promptly forwarded the inquiry to The Bureau of Engraving and Printing, which, having no Bureau to Answer Questions Regarding What We Have Printed and Engraved to whom they might further refer the letter, was compelled to reply. With the astute aid of the Smithsonian Institution, they came up with a relatively adequate answer. In all fairness, this response was polite, well-documented and made no pretense toward disseminating facts not readily verifiable to the writer. It turns out Mr. Friedberg's "Onepapa" was actually none other than good old Tatokainyanka! This name, Traylor translated into our immigrant American, means Running Antelope. "Onepapa," it is explained, was not a Sioux word. but a mis-translation of the name of the Dakota Tribe to which Running Antelope belonged—the Onc- papa, or Hunkpapa. This great tribe, interesting enough, boasted as one of its outstanding citizens the famous Sitting Buffalo or, as he is better known to us, Sitting Bull. To proceed, the "why" of Running Antelope's appear- ance on a Series 1899 $5 Silver Certificate remains a mystery, at least to the present experts of the Bureau and Smithsonian (and therefore to me). Now I will make a conjecture about this "why," which I hope will prove unacceptable to readers of this article, thereby stimulat- ing someone to expose my ignorance and in so doing, furnish numismatics with new and refreshing informa- tion on a subject long considered "cut and dried." Now to the conjecture. Perhaps some conscience- striken Senator, uncomfortably considering the 1890 massacre at Wounded Knee Creek, thought that a Sioux likeness on our regular currency might alleviate "the slings and arrows of outrageous fortune" which had befallen our red brothers. Assuming this, or some similar premise, Running Antelope may have been chosen because of convenience or accessibility. Perhaps he was a guest in some Federal prison. How accessible can you get? Or maybe the Senator's choice was a concession to the local Photog- rapher's Union. An Indian holding a peace pipe and wearing a peace medal certainly offered considerably less risk to the cameraman's scalp than one with knife and tomahawk. Whatever the reason, there is Tatokainyanka in all his dignified glory, deserving better than the un- dignified misnomer under which he has gained recogni- tion. After all, if "Onepapa" interpreted as "one having a single father," the name is certainly less than distinctive for a worthy warrior, since this parental situa- tion is common to many. Likewise, should its meaning he taken as "being a papa only once," it is hardly in keeping with his manly appearance and ethnic reputation for virility. Although this tenderfoot's trek is ended, not in the Woodlands of the Great Lakes, where Running Antelope's fellow Sioux ranged, but in the marbled halls of Wash- ington, there are still trails to be blazed. Why was a Sioux selected. and why Tatokainyanka in particular? What were the features of his life and experience? Why was his the only Indian portrait to ever embellish a United States paper money issue? Was he a chief, or just another Indian? These and doubtless many other considerations remain undefined for this beautiful note. So, despair not, fellow frontiersmen. There are other paths to follow, other wildernesses to explore. Put on your moccasins, take trusty flintlock in hand, and for those fortunate enough to survive the rigors, perhaps there awaits a coonskin cap, emblazoned with the ANA medal of merit, or maybe even a string of wampum for your type set! WHOLE NO. 24 Paper Money PAGE 107 An Economic and Numismatic Analysis of Chronic Inflation in Chile, 1880-1960 By Richard A. Banyai INTRODUCTION PART I. The Latin American nation of Chile for well over eight decades has experienced chronic inflationary pres- sures. Indeed Chile's monetary history is an interesting study from the viewpoints of both the economist and numismatist. The specialist in Latin America will also find this paper of interest especially regarding the charts in Part II, which reveal the components of Chile's money supply for this particular period. The map herewith depicts Chile's location in South America. Chile has been described as the long land. In the following excerpt from his book, Carleton Beals has described Chile well: 70• SEA A CA xra,sAN '`., SEA 1° "*.. CA h..... ,PPR CARACAS tacilp A Tiitirivr4 v E Ng A ....." k,Id ., LORGETOWN ';',„ 4.' Z *ARM LOMB1 7 ' 13fi,,,, A A.";CEAN A a T IC ' ' • 71:. Villiiiirkliblpprir IF jil I:: ft •` %.7111, mee 53mpp. fia. llir , 33 R A Z r Lit Ming .. e 0 L I L I p 4.• 0 • • TN, 0* CIPIII[P• C .. . L t, .. , AM. p. • . I 6L,"• ,s ,s,s,op,, .n" 1 •LJANSIRs 4, 4.4 , I. :CI,. 0 ,, 4 0 , O1 pen , ...Mk CI r .. . . Ct14Zoss." um a .4 SCENOSma. 1 i 0 F 'RUCUS :,,, ...r ..1 PLEV1010..k. ... .e I / ..... SOUTH AMERICA Soled Wm 0 100 300 500 1300 • Capatal ‘ ,,,, iiiIV ,,,v...,„,.. 'itt ?- NA BO' Longitude 70. •Wrst 60• from Green Rh 10 South America is shaped like a man with a big paunch. The paunch is Brazil, sticking out toward Africa. Chile is the lean meat along the backbone—the great spinal column of the Andes. Chile also provides one of the legs of the manshaped continent. The toes stick out into the icy South Seas, and the big toe is blunt Cape Horn, a rock cliff on the southernmost island of the Tierra del Fuego— Fire Land—archipelago. Thus Chile is a long thin land. 1 t is a narrow ribbon of crisscross valleys and mountains, deserts and forests, lakes and fiords, that stretches nearly three thousand miles from torrid zone to the sub-Antarctic, from heat to snow, from sea level up to the world's highest peaks outside the Himalayas. ( I, p. 1*) The first section of this paper will cover Chile's early monetary history up to 1931. The second section will cover the period from 1932 to 1960 which, in the writer's opinion, is the most interesting and most important in Chile's financial history mainly because it is an era of chronic paper currency depreciation. In both sections of this paper there will be specimens of the private, Treas- ury, and Central Bank of Chile issues of paper currency. The specimens of paper currency are products of the periods and events under discussion and form an integral part of this paper. The early history of finance and banking developments in Chile up to 1879 reveals no abnormal trends, that is, no severe monetary upheavals. In contrast to its later strong propensity toward inflation over many decades, Chile long enjoyed a unique reputation among Latin American countries for financial stability. For several decades after independence, the landowning elite, which dominated the country's political life throughout the 19th century, was strongly opposed to anything but metallic currency. One Finance Minister exclaimed in 1824 that bank notes convertible into specie would be admitted "only at the point of the bayonet. The person who dared propose it would be looked upon as a dreamer, a tyrant, even a heretic." The "calamities suffered" by other Latin American countries (which were also politically far less stable than Chile in the period after 1830) because of excessive issues of paper money were important at that time in causing Chilean authorities to show prudence in monetary matters. With the expansion of commerce, the idea of a governmental bank of issue was much discussed in the 1830s and 1840s but it was finally rejected because of widespread fears of mismanagement and inflation. The right of issue granted in 1849 to one bank, The Banco de Chile de Arcos y Cia., was withdrawn the following year upon public protests and an adverse decision by the Supreme Court. The needs of the growing economy for means of pay- ment and the distrust of governmental economic activi- ties or regulation combined in 1860 to produce a bank- ing law which established the principle of free, almost wildcat, banking. Private banks of issue were permitted * Numbers in parenthesis refer to reference and page numbers. Paper Money WHOLE NO. 24PAGE 108 I s4.411, .4 Vim 411014 A A ‘1 , 1% r0 4411 Af.40 41113111 X lir* 4111 1 41111M AS 11•1111010 111:012114 .P? 4 1.11i..NC0 01). Ali .1" .♦1 ftoo IF 444140 .'''' , i • !;•n. t. • fox, • :4 t W","",47. 1".•'. 14 fal 1:4 4.4 4, • Twenty peso notes of the private banks of D. Matte & Co. and the Bank of Curico. (American Bank Note Co. engraving) •iit, AI 21,14 4111C+:45116. tX.-41C REP'11BLICApErifi1E POP taqi ata lei „ft; 1." -Aziesr,A, I;(1 - 4*. • - WHOLE NO. 24 Paper Money PAGE 109 to operate subject only to the provision that the right of such banks to issue notes would be limited to 150 per cent of their capital. The legislation "fixed no minimum capital requirement, no limitation on the nature or maturity of loans, no reserve requirement against either deposits or notes, and no provision of any kind for supervision or inspection by the government." (9, p. 164) A few commercial houses had small banking facilities to complement their regular business. Before 1860 a small volume of notes had been issued occasionally by some of these houses. But paper money was not in gen- eral circulation until after 1860, when the first general banking law was passed. Even then issues were small at first, since there was no developed banking system to take immediate advantage of the new law. The banking law contained few restrictions on note issues. Only denominations of 20 pesos and over could be used, and note liabilities of any bank could not ex- ceed a fixed proportion of its capital (noted above). (6, p. 7) This particular law existed until 1898, when the privilege to issue notes was taken from the banks and given exclusively to the Chilean Treasury. The inflation started in 1879. Private banks had been encouraged to increase their note issue in order to lend to the government. The rise in prices this produced led to a severe drain of gold and silver; in order to prevent the failure of the banks, specie payments were suspended. (6, p. 7) During the period 1878 to 1895, there were governmental efforts to return to the metallic standard by withdrawing Treasury notes and raising the value of the peso relative to the British pound sterling, which was the international standard at the time. With re- markable insistence, one conversion law was piled on another from 1892 on until one adopted in 1895 finally proved workable, at least in the short run. (9, p. 170) From 1878 to 1894, many of Chile's internal disorders were traced to paper currency. The suspension of specie payments was treated as a disease. A nation aspiring to self-respect, dignity and prestige simply could not pollute its currency as was the case since 1878. The intensity of feeling was noted by an observer in 1894, shortly before the conversion: The President of the Republic has paper money in horror. His firmest intention is to restore metallic circulation. He would consider well worth while the sacrifices, dis- appointments and bitter experiences which the exercise of power brings with it if, upon returning to his home (at the end of his term), he had the satisfaction of saying that he has suppressed the inconvertible paper money and given back to the country the normal monetary system. . . . . (9, p. 171) Thus the country plunged into the 1895 conversion, probably one of the most disastrous monetary operations of all time. In 1893-94, the average quotation of the peso had been 14d. (British pence quotation). Re- valuation to 18d., coming on top of a still falling world price level, inflicted a sharp contraction on economic activity. The peso was hardly ever quoted above its gold export point, and a specially contracted stabilization loan of two million pound sterling was rapidly dissipated. Moreover, there was continuing heavy domestic demand for gold. A run on the banks in 1898 put an end to the unfortunate and futile episodes. (9, p. 172) One peso Treasury note of S January 1899. Overprints are "Direccion del Tesorero" (Office of the Treasurer) and "Superintendencia de in Casa de Moneda" (Super- intendent of the Mint). This issue was theoretically convertible in gold according to the law, "convertible en oro por El Estado conforme a la lei." (American Bank Note Co. engraving) The conversion was a failure. The gold value of the paper peso was set at 18d. at a time when the exchange rate (the price of pesos in terms of sterling) was in the vicinity of 6d. The result was a rush to convert pesos into sterling, a deflation within the country, business failures and unemployment. By 1898, the country had returned to the lesser evil of inconvertible paper money and inflation. (5, p. 390) The year of 1902 was set as the next possible attempt at convertibility. This plan did not materialize. The decade before the first World War was one of business expansion for Chile. It was, so it would seem, a case of the monetary authorities catering with zeal and flexibility to the needs and mood of the business community. Of course, the complete failure of the authorities to exercise some con- trol, to put on the brakes or to "lean against the wind" still requires some explanation. But it is best accounted for by the peculiar political structure which the country had given itself after the Civil War (1891), with its weakened presidential powers and its eternally and rapidly rotating cabinets. From 1891 to 1915, the aver- age tenure was four months for the Cabinet and only three months for the Finance Minister. As a result, lack of initiative was the rule, and the government was run by an amiable clique of decision- avoiders whose attitude has been epitomized by one of its most prominent members, President Barros Luco, in the immortal saying: "There are only two kinds of prob- lems, those that get solved by themselves and those that PAGE 1 10 Paper Money WHOLE NO. 24 defy solution." Thus, after the scarring experience with the gold standard the essential characteristic of monetary policy was drift, rather than a carefully hatched plot. (9, p. 173) This period was one of inflation (1904-07) and hard- ship for the Chilean wage earner. The Valparaiso earth- quake of 1906 did not help matters at all. The re- construction projects added to the monetary problems. Thus the period 1895-1907 which had started with a serious deflation ended with highly disruptive inflation. After this episode monetary conservatism was the only logical alternative. Plans for a Central Bank of issue, put forth by a commission of experts in 1912-13, backed by the government almost materialized when World War I broke out and had to be suspended by Congress. The World War I period was profitable for Chile's economy. This is attributed chiefly to the growth of the nitrate trade to meet the war demand for explosives. Herein is a chart showing essential figures of Chile's nitrate trade: Exports of Nitrate from Chile, 1910-17 (000's omitted) Year Quantity (tons) Value in Gold Pesos of 18d. Per Cent of Total Exports 910 2,336 232,426 71 911 2,449 262,003 77 912 2,493 286,704 75 913 2,738 314,909 80 914 1,847 212,380 70 915 2,023 232,679 78 916 2,967 338,529 67 917 2,798 475,819 68 (Source: 11, P. 440) The nitrate trade accounted for about three-fourths of exports during the period, a sizeable amount of trade indeed. Copper also was a major export item of Chile. This, too, experienced a remarkable growth under war conditions. Herein is a chart depicting copper exports. Exports of Copper from Chile, 1910-17 Year Quantity (tons) Value (pesos of 18d.) 910 37,804 26,630,704 911 34,587 20,501,183 912 40,897 33,550,041 913 41,323 30,894,566 914 45,227 31,891,726 915 53,587 45,409,745 916 71,904 86,639,941 917 78,183 104,413 Source: 11, p. 443) Generally, Chile had a favorable balance of trade to its credit. The influx of foreign exchange added strength to the value of the peso. This chart shows the favorable trade balance: Chilean Balance of Merchandise Trade, 1910-17 (Thousand Gold Pesos [Peso=18d., or U. S. $ .365.1) During this period there was an appreciation in the value of the Chilean peso mainly due to the strong de- mand for the peso to pay for nitrate exports and also the heavy influx of foreign exchange. The foreign im- porter of nitrate would bid in the market for peso bills of exchange, thus driving up their price in terms of foreign currencies. A slack in nitrate or other exports would generally have reversed the situation. Since Chilean exports are few, there is less demand by foreign- ers for pesos to pay for Chilean exports. Therefore on these conditions the market price of pesos drops. In Chile foreign exchange is bought and sold for paper pesos. The value of the peso, and hence the rate of exchange of bills, depends on a number of highly un- stable factors-on the quantity of paper in circulation relative to the domestic demand for money, on rumors as to the probability of the conversion of paper money into specie at some fixed date, on the degree of con- fidence reposed in the government, and hence on political changes, political gossip or scandal, a controversy in Con- gress or a political attack in the press. (11, p. 445) This condition of unstable currency goes back into the 19th century. The present system began with the law of July 31, 1898, which authorized the emission of 50,000,000 paper pesos. At the same time all bank notes previously issued were taken over by the government. Since 1898 the quantity of paper in circulation has been increased to 159,840,119 pesos (up to December 31, 1916), of which 150,000,000 have been emitted under the act of 1898. The law of 1898 provided for a con- version fund, by means of which the conversion of the paper money into gold at the rate of 18d. per paper peso was to begin January 1, 1902. Conversion was postponed, however, until 1905, and before that date was reached a further postponement to 1910 was announced, and then to 1915. Meanwhile, the gold value of the paper peso, as indi- cated by the rate of foreign exchange, after maintaining a relatively high level through 1904 (about 16.5d.), de- clined gradually, and for the period 1908-13 ranged between 9.6d. (the average for 1908) to 10.8d. (the average for 1910). On the outbreak of war, exchange fell still lower, reaching 7 1/32d. in January, 1915, a depreciation of 61 per cent from the statutory par. Conversion was again postponed to January 1, 1917, and then to January 1, 1919. In the summer of 1918, with exchange at 16-17d., there appeared to be a strong prospect that specie payments would this time be at- tempted, at the par rate of 18d. named in the law of 1898. This prospect was strengthened by the consider- able inflow of gold in 1917. Notwithstanding the reluct- ance of the nations at war to part with gold, Chile secured their consent to considerable shipments of specie, especially from the United States, as a condition of sale of nitrate. (11, pp. 446-47) Herein is a chart of specie Year Exports Imports Balance flows in and out of Chile during this period. 910 911 912 913 $328,827 339,409 383,228 396,310 $297,486 348,990 334,455 329,518 $+ 31,341 - 9,581 + 48,773 + 66,792 Chilean Imports and Exports of Specie, 1914-17 (Gold Pesos of 18d.) Year Export Import 914 299,675 269,757 + 29,918 1914 15,671 3,686,884 915 299,591 153,212 +146,918 1915 40,357 1,035,724 916 505,963 222,521 +283,442 1916 34,958 30,543 917 703,544 355,077 +348,467 1917 522,507 16,446,805 (Source: 11, P. 443) (Source: II, p. 447) Paper Money PAGE 111WHOLE NO. 24 Yi///,////z1;i2_,4_. / /7 /21.)/////i.;7/1/ /.// // 4/ ' 31 ile•,k, 1918 SANT IAGO // P1141e4r7Alit 410:441k#0 et 4 4* r. 4:4:4 // / / //////./ ••■• swim ;a lied/a (X; ///e/Wle &MAW) f '7; 2t; 4e It to 1918 *A4bil5F.41CVZBEitV Two varieties, five peso Treasury notes. The top issue of 31 January 1916 is an American Bank Note Co. engraving and the bottom issue of 20 June 1918 is a Waterlow & Sons Ltd. engraving. Both issues are overprinted "Direccion Del Tesoro" (the Treasury Board of Directors) and "Direccion de Contabilidad" (Accounting Office). In addition to these gold imports the Chilean govern- ment had collected (prior to the war) a gold fund with which to undertake the conversion of the 160 millions of paper pesos in circulation. At the end of 1916, this fund amounted to 87,759,702 pesos (gold), and was deposited in banks of foreign countries, as follows: (Gold Pesos of 18d.) In England 48,765,770 In Germany 22,225,687 In United States 3,124,605 87,759,702 By March, 1918, the conversion fund had grown to 94,000,000 pesos (gold). (11, pp. 447-48). With the war over, Chile's currency resumed its fluctuation of value mainly in a downward direction. The unnerving instability of the country's currency was taken as symptomatic of the incapacity of the traditional ruling groups to govern. It contributed to the sweeping victory of the Liberal Alliance, and anti-oligarchic coalition headed by Arturo Alessandri, in the parliamentary and presidential elections of 1918 and 1920. °TEN, VS89°I itiar.4°4.4) O41}-'1111, ". emee 0177. ;; arit.: :IS 4‘ it Pt' tf DinaLARS ) PAGE 1 1 2 Paper Money WHOLE NO. 24 Two peso Treasury note of 13 April 1925; engraved and printed by Treasury Department. The circular overprints state, "Dirrecion Tesoro" (Treasury Board of Directors) and "Direccion de Contabili- dad" (Accounting Office). This issue was theoreti- cally convertible into gold by law, "convertibles en oro por El Estado eonforme a la lei." The new President was pledged to restore the stability of the currency by linking it to gold. On the other hand, he adopted the old papelero (advocate of paper currency) project of a government-owned Central Bank which fitted in with his conception of the state's responsibility for economic and social order and which was by now also endorsed by international and orthodox opinion. This program was quite popular because the middle and working classes had become convinced that paper money was a capitalist plot. Nevertheless, as the Senate was dominated by a majority hostile to his govern- ment. Alessandri was unable to get this or any other substantial part of his program through Congress until exceptional circumstances gave him virtually dictatorial powers in 1925. (9, pp. 174-5) The year of 1925 was a milestone in the monetary affairs of Chile. There was an economic mission sent from the United States to Chile in July of 1925 to analyze the chaotic financial situation and offer a solution. This mission, the Kemmerer Mission, offered a solution which was enacted by decree-laws from August to October of 1925. It set up a Central Bank controlled, at least in theory, by the bankers and safely out of the hands of the government, and restored the gold standard with the gold equivalent of the paper peso equal to (the gold equivalent of) 6d. (5, p. 390) This convertibility lasted only to 1931 and was followed by a persistent inflation. Part II deals with the chronic inflationary problem of Chile from 1932 to 1960. The paper currency issues after the establishment of the Central Bank of Chile in 1925 bear the inscription "Banco Central de Chile" instead of "Republica de Chile." The "Republica de Chile" inscription was on paper currency issued by the Treasury of Chile before 1925. Before the Central Bank had been set up, all note issue was a liability of the Treasury and additions to the money supply generally depended upon government de- ficits financed by such issues. But the new Bank took over all note liabilities and had the authority to lend to commercial banks and to the public as well as the Treasury. Thus inflation could proceed independently of government deficits. (6, pp. 9-10) (To be continued.) WANTED OBSOLETE PAPER MONEY (Bank Notes, Script, Warrants, Drafts) of the AMERICAN WEST Oregon, California, Idaho, Nevada, Arizona, Utah, Mon- tana, New Mexico, Colorado; Dakota, Deseret, Indian, Jefferson Territories! Cash paid, or fine Obsolete Paper traded. Have Proof notes from most states, individual rarities, seldom seen denominationa Is, Kirtlands, topicals ; Colonial, Continental ; CSA, Southern States notes and bonds. Also have duplicate Western rarities for advantageous trade. JOHN J. FORD, JR. 176 HENDRICKSON AVE., ROCKVILLE CENTRE, N. Y. WHOLE NO. 24 Paper Money PAGE 1 1 3 Collectors of Paper Money in the 18th and 19th Centuries By Dr. Arnold Keller (Concluded from PAPER MONEY No. 23, Page 78.) In Germany most of the collectors came after the Austrian pioneers. The first known was F. W. A. SCHLICKEYSEN, co-author of the lexicon of numismatic abbreviations called "Schlickeysen-Pallmann." The first secretary of the Berlin Numismatic Society, he lectured and showed his collection of French assignats, mandats and billets de confiance on July 9, 1846. He also spoke of the numerous forgeries made for political reasons and wrote on the printing-firm differences of the Erfurt 1813 issue. He died in 1871. ADOLF JUNGFER (1835-89), a Berlin coin dealer and expert who wrote in journals of the time under the name "Miinzbold," owned the oldest-known German note, a Massfeld in Meiningen 1622 three groschen. It later went into the Berlin coin cabinet. His collection of some 900 different was sold in June 1890 by Adolf Weyl. Sedlako- vich and later Pfliimer obtained the Polish and Latin- American notes. A lawyer, v. SCHIMMELPFENNING in Bartenstein (East Prussia), studied and published documents about the history of the Prussian notes which were later used by DR. NICOLAUS in his work on the same subject. A bro- chure by Prof. Ehmcke reproduces a note that has an owner's mark "V. S." proving that it came from v. Schimmelpfenning's collection. LUDWIG CLERICUS (1827-92) collected paper money only a short time but with great success. After a study of law and the arts, he edited several publications, in- cluding an art journal Pallas and the German Engravers Journal. After amassing 1,800 notes from all countries, he published a series of articles about the development of printing paper money in Graphische Kunste in 1887. He unsuccessfully tried to organize paper money collec- tors. His collection was sold in 1892 to the German State Printery but was subsequently destroyed in the air raid of Feb. 3, 1945. Still another important figure but from a different point of view was ADOLF HENZE. From 1865 to 1877, he published a sort of "counterfeit detector" in which he listed all new issues of notes and the terms of redemp- tion, so that merchants could redeem their notes in due time. Perhaps it is his fault, then, that so few old German notes remain! However, it is only through his journal that we know of many notes, for he reproduced them (in reflected image to foil counterfeiters). Un- fortunately, he habitually gave the date as the day of real issue instead of the date printed on the note and listed later printings of the same issue as new issues even when both were identical. He also published a large picture reproducing all current European issues. His work ended with his death in 1883. Poland could boast of two remarkable collectors. The COUNT HUTTEN-CZAPSKI (1828-96) studied in Moscow and later became the service governor of Novgorod and vice-governor of Petersburg. In 1894 he founded a museum for Archeology and Numismatics in Krakau and wrote a catalog describing its notes up to 1863. The second Polish collector was HENRYK BUKOWSKI (1839-1900). Because he participated in the Polish rebellion of 1864, he was forced to emigrate to Sweden. There he dealt in art, coins and archeological objects and held about 130 auctions. Under the nom-de-plume "H. Bi." he published a catalog of Swedish and foreign notes. Henryk Bukowski Notable among Danish collectors was H. J. LYNGE (1822-97), a well-known book dealer. He founded a scientific antiquarian society. At his death his house was the most remarkable in Scandinavia, for he was a collec- tor in the grand style. His collection of paintings about the history of Denmark was given to the Frederiksborg Museum, while all his other collections, including paper money, were sold in ten auctions in 1898-99. JOH. G. GUILDAL, a Danish manufacturer, acquired the collection of a Gen. Major C. T. JORGENSEN in 1901. Guildal wrote extensively for Scandinavian numismatic journals. A third great Danish collector, LARS EMIL BRUUN (1852-1933), collected coins as a young trade apprentice. He made a fortune in the wholesale export Lars Emil Bruun Hans Hildebrand Paper Money WHOLE NO. 24PAGE 1 1 4 butter trade and bought extensively at the Lynge sale. He willed his collections to the Royal coin cabinet. Sweden had two great numismatists who were official, not private, collectors. The first, HANS HILDEBRAND, was the son of a Swedish state antiquarian and succeeded him in 1879. He wrote a book on Swedish coins of the Middle Ages. His last work was "Sedelsamlingen i Riksbankens Myntkabinett" (collection of notes in the Riksbank coin cabinet), in which he described and partially reproduced 1,457 notes. He died before the manuscript was completed and his successor, OSCAR MONTELIUS, finished it for publication in 1915. Montelius (1843-1921) also specialized in research on prehistoric North and Central Europe. Oscar Montelius England's great author of paper money books was MABERLY PHILLIPPS, who was born in 1838 into a family of minor officials of the Bank of England. He, too. served the bank, and wrote a huge volume called A History of Banks, Bankers and Banking in Northumber- land, Durham and North Yorkshire giving detailed ac- counts of 76 local banks and reproductions of their notes. His collection of 800 different notes was given to the London Institute of Bankers. A mysterious collection made the headlines in Septem- ber 1937. Called the AVONMORE COLLECTION (from the street on which its supposed owner, Fred E. Catling, lived in London), it was allegedly stolen from the steel safe in which it was kept. The notes were mounted in Paper MoneyWHOLE NO. 24 PAGE 115 Adolf Meili 110 leather-bound volumes. No thief was found but restitution was made by mail. The number of notes involved was said to be 70,000! Three generations created the collection, beginning with the grandfather, who was an engraver. Little interest in paper money was early manifested in Italy, although coin collecting was popular. The first publication about paper money was written by ISAIA VOLONTE in the Rivista Italiana di Numismatica 1908. It was followed by 40 years of silence. Americans, of course, know the work of David C. Wismer, the old master of U. S. paper money numis- matics. A Latin-American pioneer, less well known, was ADOLF MEILL (1839-1907). This Swiss-born business- man worked in Trieste and Tabriz, Persia, before be- coming a partner in a firm in Brazil. In that country he served as Swiss Consul at Bahia. While there he col- lected Portuguese and Brazilian notes and coins. His thousand-note collection served as the basis for a German- language catalog, fully illustrated. For this work he received an honorary degree from the University of Zurich. He willed his collection to the Landesmuseum in Zurich, which in 1935 sold it to Brazil. In addition to the individual European collectors, many institutions such as the London Bankers Institute and the Ashmolean Museum at Oxford collect notes along with coins. The Austrian coin cabinet in Vienna at first bought only single pieces but later bought the A. M. PACHINGER collection of Austrian notes. Thus when the flood of World War I inflation notes swelled, the cabinet collected them and finally published, in 1918, a completely illustrated synopsis of all issues with dates of issue and quantities. Smedley Reminisces About Founding of S. P. M. C. At the time that Director Glenn B. Smedley received a life membership in the Society (see Page 105), he told how he assisted in the birth of this organization. At the 1960 ANA convention he arranged an informal luncheon attended by a dozen paper money collectors who discussed the idea of a Society favorably. Prior to the 1961 ANA convention in Atlanta, he arranged for a meeting there, inviting those who were at the Boston luncheon and others from whom he had heard in the meantime. It was at the Atlanta gathering that SPMC got under way formally. "I shall never forget receiving an invitation from Blaise Danton to a party at his home the very evening the meeting was supposed to be held," Mr. Smedley reminisced. "He solved the problem simply: 'Invite all your paper money collectors to the party and hold your meeting here.' We did, and it was a never-to-be-for- gotten evening." Did You Know That — Four different types or colors of Treasury Seals ap- pear on $1, $5. and $10 Silver Certificates within a five year period between 1886 and 1891. They appear as small red, plain; large red; large brown; and small red, scalloped. Michael B. Kromeke STATEMENT OF OWNERSHIP, it''''' MANAGEMENT AND CIRCULATION I c „,— , ,..e or raord4 ate co empc•rioN 10-667 3 tl Paper Money I Wawa., or Issue Quarterly Federalsburg, Maryland s LOcanoro co TNT no•cOuarmas Oa CaNtra■ luSiNISS oe, rx 7. tUIII.M.5 ,. • P.O. Box 3005, Anderson S.C. 29621 ( South ,subuffie St. ho t) 6 •NO •DORT SS S 0, NJMIS 1 DOOR • Gi DI OR J.Roy Pannell, Jr., P.O.Box3005, Anderson, S.C. 29621 Miss Barbara Mueller, 523 E. Linden Dr. •Jefferson Wisc adOWNER III •uo.1 Iry • r•Ovralys• as R.... sod adalnro lam, lo. "woo/ sod oho immedtarely Om..., ihe name] awl al-moos of dos motmaimal •••■•■ MIMI le• ,.... If Duo./ by • poorberrsInft or *Ow oolocorporwo, firm an Ramo wed adsins,.., roll . s s 4.0 y ...h ,..k...i.../ .. Iv,. I NM. .0.455 The &octet of Paper Money Collectors P.O. Box 3005, Anderson, S.C. 29671 I II:MOWN •ONDISOLDE•S MO•TG.OKS. AND OTHER 01 ma, mocro.ces Oa ONet• slNenes ,q n‘tro UMW,' ROOM OWNING OR MOLDING I •C•, OR ASO. Of TOL. ARMY. an mum go took, AM*more WNW TOR ca.MSnow DV NONP•ORT owAmtAnoNs AITNONZIED TO MAR AT SHOAL 14113 Orr.. 1.12 l/1 Poaal Mamma/ ,C/No■ me, 2A:1=1.■7::•"aZte:::;:r%Vr:::!:.t..: q :e::42 q "...7.,172=4 Arer‘zatr4;:; ':!rZ:: NI WIN, Al. NATURT Of CIRCULATION 72gWaP.,`,47,7Z'. ob.ole• 1e,mtr.17-–cm– • • ID. ND 07171. 'MATO N. Neu 4.1 7,000 1,000 . .1". sTaT7....... au.. AND