Paper Money - Vol. XLII, No. 1 - Whole No. 223 - January - February 2003

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JANUARY/FEBRUARY 2003VOL. XLII, No. 1 WHOLE No. 223 OUR FIRST EVER11,STAGE- CUIZRENt'Yt IRMA-An-rultR trim A_sSis• AL171111.TAIW,117.7A FRACTIONAL CURRENCY SPECIAL ISSUE Ork. !97'F•j, 1 044: -Ale . — iT t 1- POST WE I( t -z L PE 4111W w Official Journal of the Society of Paper Money Collectors WWW.SPMC.ORG ESTABLISHED 1880 Our Outstanding Team of Experts Can Help You Get the Most for Your Collection You've spent years putting together an outstanding collection, and now you are ready to sell. Will the people who handle the disposition of your collection know as much about it as you do? They will at Smythe! Confederate Currency and Bonds; Continental and Colonial Currency; Obsolete Bank Notes; International Currency. DOUGLAS BALL BA, Wooster; MA, Yale; MBA Columbia; PhD, University of London. Author of the books Financial Failure and Confederate Defeat and Comprehensive History and Catalog of Confederate Bonds. Dr. Ball has written more than 50 articles for Bank Note Reporter and has received the Heath Literary Award for Numismatic Articles. Recipient of the Numismatic Ambassador Award 2001, bestowed by Numismatic News. Member: ANA, SPMC. U.S. Federal & National Currency; U.S. Fractional Currency; Small Size U.S. Currency; U.S. MPC. MARTIN GENGERKE Author of U.S. Paper Money Records and American Numismatic Auctions as well as numerous articles in Paper Money Magazine, the Essay Proof Journal, Bank Note Reporter and Financial History. Winner of the only award bestowed by the Numismatic Literary Guild for excellence in cataloging, and the 1999 President's Medal from the American Numismatic Association. Member: ANA, SPMC. Autographs; Manuscripts; Photographs; International Stocks and Bonds. D IANA HERZ OG President, R.M. Smythe & Co., Inc. BA, University of London; MA, New York University— Institute of Fine Arts. Former Secretary, Bond and Share Society; Past President, Manuscript Society; Editorial Board, Financial History. Board Member: PADA. Small Size U.S. Currency; Canadian Banknote Issues; U.S. Coins. SCOTT LINDQUIST BA, Minot State University, Business Administration/Management. Contributor to the Standard Guide to Small Size U.S. Paper Money & U.S. Paper Money Records. Professional Numismatist and sole proprietor of The Coin Cellar for 16 years. Life Member: ANA, CSNS. Member: PCDA, FCCB, SPMC. Why do so many collectors and major dealers consign to Smythe's Auctions? • Competitive commission rates • Cash advances available • Expert staff of numismatic specialists • Thoroughly researched • Flexible terms and beautifully illustrated • Record breaking prices catalogues U.S. Coins and Medals. JAY ERLICHMAN Contributor to A Guide Book of U.S. Coins and A Guide Book of British Coins. Assembled and managed investment portfolios of U.S. coins. Employed by the Federal Trade Commission as an expert witness on consumer fraud. Member: ANA, PCGS, NGC. Antique Stocks and Bonds; U.S. Coins; Paper Money. STEPHEN GOLDSMITH Executive Vice President, R.M. Smythe & Co., Inc. BA, Brooklyn College. Contributor to Paper Money of the United States, Collecting U.S. Obsolete Currency, Financial History, and Smart Money. Editor, An Illustrated Catalogue of Early North American Advertising Notes; Past President and Board Member, Professional Currency Dealers Association. Member: PCDA, ANA, SPMC, IBSS, New England Appraisers Association. f 11 Ancient Coins and Medals. 1 JOHN LAVENDER BA, University of Georgia, Classical History. Former Managing Director at Atlantis, Ltd. Former Numismatist and Web Media Manager at Classical Numismatic Group, Inc. Specialist in Ancient Coinages and related Numismatic Literature. Owner, NUM_LIT-L and Moneta.org. Member: ANA, ANS, RNS. Ancient Coins and Medals. DAVID VAG I BA, University of Missouri—Columbia. Author of Coinage and History of the Roman Empire; columnist for The Celator; Numismatic News, and World Coin News. Editor of the Journal for the Society for Ancient Numismatics; . twice received the Numismatic Literary Guild's "Best Column" award. A recipient of the American Numismatic Association's Heath Literary Award and the Presidential Award. Member: ANA, ANS. We buy, sell, and auction the very best in Antique Stocks and Bonds, Autographs, Banknotes, Coins, Historic Americana, and Vintage Photography 26 Broadway, Suite 973, New York, NY 10004 - 1703 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-908-4670 E-MAIL: info@smytheonline.com INTERNET: www.smytheonline.com wvor Mita. SOCIETY OF PAPER MONEY costecirotta Life Member sieumanism Stephen Goldsmith Scott Lindquist TERMS AND CONDITIONS PAPER MONEY is published every other month beginning in January by the Society of Paper Money Collectors (SPMC). Second-class postage is paid at Dover, DE 19901. Postmaster send address changes to Secretary Tom Minerley, P.O. Box 7155, Albany, NY 12224-0155 © Society of Paper Money Collectors, Inc., 2003. All rights reserved. Reproduction of any article, in whole or in part, without express written permis- sion, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for $6 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 spe- cific issue cannot be guaranteed. Include an SASE for acknowledgment, if desired. Opinions expressed by authors do not necessarily reflect those of the SPMC. Manuscripts should be typed (one side of paper only), double-spaced with at least 1-inch margins. The author's name, address and telephone num- ber should appear on the first page. Authors should retain a copy for their records. Authors are encouraged to submit a copy on a 3 1/2-inch MAC disk, identified with the name and version of software used. A double-spaced printout must accompany the disk. Authors may also transmit articles via e-mail to the Editor at the SPMC web site (fred@spmc.org). Original illustrations are preferred. Scans should be grayscale at 300 dpi. (pegs are preferred. Inquire about other formats. ADVERTISING • All advertising copy and correspondence should be sent to the Editor • All advertising is payable in advance To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or addi- tional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. Advertising Deadline: Copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for exam- ple, Feb. 1 for the March/April issue). With advance approval, camera-ready copy, or elec- tronic ads in Quark Express on a MAC zip disk with fonts supplied, may be accepted up to 10 days later. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover $500 $1350 $2500 Inside cover 400 1100 2000 Full page 360 1000 1800 Half page 180 500 900 Quarter page 90 250 450 Eighth page 45 125 225 Requirements: Full page, 42 x 57 picas; half-page may be either vertical or horizontal in format. Single-column width, 20 picas. Except covers, page position may be requested, but not guaran- teed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper cur- rency, allied numismatic material, publications, and related accessories. The SPMC does not guar- antee advertisements, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typographical errors in ads, but agrees to reprint that portion of an ad in which a typographical error occurs upon prompt notification. PAPER MONEY • January/February 2003 • Whole No. 223 1 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLII, No. 1 Whole No. 223 JANUARY/FEBRUARY 2003 ISSN 0031-1162 FRED L. REED III, Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site: www.spmc.org IN THIS ISSUE FEATURES 'Father of U.S. Fractional Currency': General Francis E. Spinner .. . . 3 By John and Nancy Wilson Served Fractional Term, Honored on Fractional Note: Samuel Dexter .. 16 By Torn O'Mara Musings on Milt 20 By Benny Bolin Fractional Currency Collectors Use Two Catalog Numbers 24 By Fred Reed Inverted and Mirrored Plate Number Fractional Notes 25 By Rick Melamed Notes from the Vault: An Examination of Holdings in the NNC . . 33 By Tom O'Mara A Fractional Currency Dealer's Story 50 By Robert J. Kravitz Gleanings from My Fractional Currency Archive ..... 48, 62, 66, 70, 76 By Fred Reed Fractional Currency Errors 52 By Benny Bolin A Misnomer Postage Currency Mystery Finally Solved 63 By David Cassel The First U.S. Government Currency Engraving Error 68 By Jerry Fochtman SOCIETY NEWS Information & Officers 2 About This Issue 12 Wanted One Volunteer to Serve as Ad Manager for PM 15 President's Column 72 By Frank Clark Money Mart 72 Paper Money's Upcoming Publishing Program/Ad Deadlines/Ad Rates . 73 New Members 74 Letter from the Editor 74 Nominations Open for SPMC Board 75 Deadline for George W. Wait Prize Nears 76 Librarian's Report 78 By Bob Schreiner Editor's Notebook 78 SOCIETY OF PAPER MONEY COLLECTORS INC. 2 January/February 2003 • Whole No. 223 • PAPER MONEY Society of Paper Money Collectors The Society of Paper Money Collectors (SPMC) was orga- nized in 1961 and incorporated in 1964 as a non-profit organiza- tion under the laws of the District of Columbia. It is affiliat- ed with the American Numismatic Association. The annual SPMC meeting is held in June at the Memphis IPMS (International Paper Money Show). Up-to-date information about the SPMC and its activities can be found on its Internet web site www.spmc.org . 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 member- ship; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must he signed by a parent or guardian. Junior mem- bership 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 $30. Members in Canada and Mexico should add $5 to cover postage; members throughout the rest of the world acid $10. Life membership — payable in installments within one year is $600, $700 for Canada and Mexico, and $800 elsewhere. The Society has dispensed with issuing annual mem- bership cards, but paid up members may obtain one from the Secretary for an SASE (self-addressed, stamped envelope). Members who join the Society prior to October 1 receive the magazines already issued in the year in which they join. Members who join after October 1 will have their clues paid through December of the following year; they also receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. Dues renewals appear in the Sept/Oct Paper Money. Checks should be sent to the Society Secretary. OFFICERS ELECTED OFFICERS: PRESIDENT Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 VICE-PRESIDENT Wendell A. Wolka, P.O. Box 1211 , Greenwood, IN 46142 SECRETARY Tom Minerley, P.O. Box 7155, Albany, NY 12224-0155 TREASURER Mark Anderson, 335 Court St., Suite 149, Brooklyn, NY 11231 BOARD OF GOVERNORS: Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 Bob Cochran, P.O. Box 1085, Florissant, MO 63031 Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 Ronald L. Horstman, 5010 Timber Ln., Gerald, MO 63037 Arri "AJ" Jacob, P.O. Box 1649, Minden, NV 89423-1649 Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515- 2331 Steven K. Whitfield, 879 Stillwater Ct., Weston, FL 33327 APPOINTEES: EDITOR Fred L. Reed III, P.O. Box 793941, Dallas, TX 75379-3941 CONTRIBUTING EDITOR Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 ADVERTISING MANAGER Vacant LEGAL COUNSEL Robert J. Gal iette, 3 Teal Ln., Essex, CT 06426 LIBRARIAN Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 MEMBERSHIP DIRECTOR Frank Clark, P.O. Box 117060, Carrollton, TX 75011-7060 PAST PRESIDENT Bob Cochran, P.O. Box 1085, Florissant, MO 63031 1929 NATIONALS PROJECT COORDINATOR David B. Hollander, 406 Viduta PI, Huntsville, AL 35801-1059 WISMER BOOK PROJECT COORDINATOR Steven K. Whitfield, 879 Stillwater Ct., Weston, FL 33327 BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items 60-Page Catalog for $5.00 Refundable with Order ANA-LM SCNA PCDA CHARTER MBR HUGH SHULL P.O. Box 761, Camden, SC 29020 (803) 432-8500 FAX (803) 432-9958 SPMC LM 6 BRNA FUN PAPER MONEY • January/February 2003 • Whole No. 223 3 `Father of U.S. Fractional Currencu' General Francis E. Spinner By John and Nancy Wilson, NLG G ENERAL FRANCIS ELIAS SPINNER WAS BORN ON January21, 1802, in German Flatts (now Mohawk), Herkimer County, N. Y.He was the oldest of nine children. His father, the Reverend JohnPeter Spinner, served with the Fort Herkimer Reformed Church (erected in 1729). His mother was Mary Magdalene Bruement Spinner. Coming from a very intelligent, hard work- ing family, he was destined to become one of the most famous Americans who ever lived. The young Spinner also attended four district schools in Mohawk Valley. Though he attend- ed these schools during his youth, his education actually came from reading and learning skills from others. Following a period when he lived in Amsterdam, N.Y., and worked as a saddle maker, as a teen, Spinner worked in Albany, N. Y., for a small candy manufacturer and wholesaler. In Albany, he was very fortunate to be given access to the private library of Peter Gansevoort. While using the library, he was also privileged to receive an education in bookkeeping and the handling of money. He also was a shareholder in the village library. In 1824, he moved back to Herkimer, N.Y., and set up as a merchant. In 1826, Spinner married Caroline Caswell, and they had five chil- dren. Around 1826, Spinner was appointed a Lieutenant in the 26th Regiment, New York State Artillery. He was appointed to the rank of Major- General in the 3rd Division of Artillery in 1834. General Spinner served with dignity and efficiency during his time in the militia. Spinner also helped to raise the Lafayette Guards. Figure 3 is a very rare Militia form (ca. 1834) signed by Spinner as a Major General. Spinner served as a Deputy Sheriff in Herkimer County in 1829, later becoming Sheriff (1834-1843). While serv- ing as Sheriff he perfected his famous signa- --...)ture to foil counterfeiters from trying to copy it. In 1839, he was one of the founders lki., ^I* of the Mohawk Valley Bank. The bank was organized under the Free Banking Act. He 70.0446-.....A^ served the bank as director, cashier and president. Though he resigned most of his positions with the bank in 1856, he served as its president while serving in Congress. Figure 4 is a check issued on the Mohawk Valley Bank, State of N. Y., dated July 9, 1855, in the amount of $300. Imprint at bottom is Danforth & Huffy, New autograph York & Philadelphia. He also served an appointment to the New York State Hospital Building Commission. From 1845 to 1849, he was Auditor of the Port of New York, under President Polk's administration. Figure 1: a proof vignette of General Francis E. Spinner Figure 2: Spinner's famous Spenserian 4 January/February 2003 • Whole No. 223 • PAPER MONEY atifintitris of Officers elected to 111 vacancies in the c liffele—ftf 4 . of the Militia of the Stale of Ally-rock, u the command of firtgadier—fivoreer4d- a: 1;1. 'e*rttfy the above to be it tru eturn. \Th Oriver,40-oorreh • Figure 3: A militia form signed by Spinner as Major General. Figure 4: Spinner signed this check as an officer of the Mohawk Valley Bank. Spinner started out his political career as a Democrat, identifying himself with the anti-slavery wing of the party. He was elected as a Democrat to Congress, for the 7th district of N. Y. (Herkimer and Lawrence counties), in 1854. Problems with the Speakership of the House caused him to switch parties and join the Whig-Republican group. He was reelected by a huge Republican majority to the 35th and 36th Congressional sessions. He became a strong sup- porter of Lincoln for President. He even organized a Mohawk political group called the "Wide-Awakes," who with their band and banners held political rallies from 1855 to 1861. In 1861, President Lincoln appointed Spinner as Treasurer of the United States. Spinner served in this position from March 16, 1861, to June 30, 1875. Spinner, along with Secretary of the Treasury, Salmon P. Chase, and Spencer M. Clark, was instrumental in forming the first National Currency Bureau (headed by Clark), which was later to become the Bureau of Engraving & Printing. During Spinner's 14 years of service as Treasurer, many advancements were made ■• 4 WAILS LIMO Ir.TUILM ' 11//1// 1 / $ -•-••■ .--,...,-.1-7.- 'A--,--- i ' ‘• ' ' " ' ' * - . -') •'' - ) C.t. oi2 ''..,' -1// ' //T'//(Yr /r. / //r .. r .. 11 . ■ h i / CO ti alt )4 1 AI et tit . kt l 1 , • - (// /4/.../, 4 ///e (-if/4 / vet-c . ---) ////,/./ /////: ( // lit,//// .....--43C----: - 1A ItEl LIVABLE FOR ALL VISITED STATES STO 4111 WS • -aci--/c7)a,[ c -7-17191 ei-pee is issues ffry ipti e c-ltos•eci .Ve/rooZ,..s s4, a I -1%1) . CILP-2.43 S 6 .2 • f • W L< CA. fa; tL S 6 •,..7)-1 si 6? —44.1— 41, vto 5PAPER MONEY • January/February 2003 • Whole No. 223 in the department and other areas over which he was responsible. Improvements in the paper, ink and anti counterfeiting devices improved greatly during his term. Some of these inventions are still in use today. Treasurer Spinner has the great distinction of having his signature placed on some of this country's earliest large size bank notes and U. S. Fractional Currency. Figure 5 is a Third Issue, U. S. Fractional Currency 50-cent note with Spinner's portrait and "autograph" signature. For the record, clerks in the Treasurer's office learned how to do Spinner's auto- graph and hand-signed the issue(s) for him. It really is unknown whether he actually signed any of these notes himself. The copies are so perfect one cannot tell the difference. His signature can he found on all other class- es of U.S. currency issued between 1862 and 1875. A rare CDV (carte de visite) of an older Spinner is shown near the end of this article at Figure 10. The CDV has his name inscribed at bottom. His image was also engraved. Figures 1 at the beginning of this article and Figures 7-8 are three types of Spinner portrait die proof vignettes. A fourth die proof of Spinner is also in our collection. On lower left below the vignette of Spinner is the name Chas. Bart (born 1823, died 1892). Burt was a picture and portrait engraver. For the record, no die proof vignette of Spinner is known that matches exactly with the Third Issue 50-cent note with his portrait on it. Figure 8 is a close up view of the CDV of an older Spinner. It has his name at the bot- tom. Spinner developed his ornate signature (please see an excellent article by the late Brent Hughes tracing the development of Spinner's autograph in Paper Money, Vol. #14 (1974), No. 59, pp. 236ff) to help make it harder for counterfeiters to successfuly copy his name. General Spinner was an object of personal curiosity to all sight-seers who visited Washington. It's not hard to image, Dick and Dolly fresh from their farm asking the General, "Please, sir, will you just show us how you make it -- that queer name?" He stabs the old pen with three points down into the pudding-like ink which sticks to the bottom of the broken-nosed pitcher, and proceeds to pile it up in ridiculous little heaps at cross angles on a bit of Figure 5a (above): An "autograph" Third Issue U.S. Fractional note, pur- portedly signed by Spinner. Figure 5b (below) Detail. Figure 6: An old envelope listing U.S. Fractional Currency issues. )1f..0 ..rfr IS es !"1 Co 47e • -Ty i'e 7o flo' n fitri?' es. e p tic. in j r :191% cr e„ .501- 4' 2:4-1 1•c1i • Ilaff WV& Life Member Mimiume RES CIO) VISA ESTABLISHED 1880 6 January/February 2003 • Whole No. 223 • PAPER MONEY How Did Smythe Get Double and Triple Greysheet for Many of the CertiWed and UncertiWed Coins in Our Nebraska VII Sale? The following 10 coins are highlights from a recent R. M. Smythe Coin Auction held at the Algonquin Hotel in New York City. "Nebraska Part VII" (along with other major consignments) set numerous records as bids were often shouted from the auction Xoor. Phone bids that came from as far as California were also executed during the 840-lot sale. ITEM DESCRIPTION PRICE REALIZED GREYSHEET LISTING 1849-D $1Gold Ch. AU $3,960 AU $1,000 1856-D $1 Gold PCGS AU 58 $11,000 AU $5,750 1899 $21/2 PCGS PR 65 $18,700 PR 65 $10,100 1846-0 $5 NGC AU 58 $4,400 AU $2,300 1852-0 $20 AU $2,475 AU $1,300 1921 Peace $1 Ch. BU $7,700 MS-63 $225 1794 50 cent VG $3,575 VG $1,900 1802 50 cent EF $4,180 EF $1,700 1822 50 cent PCGS MS-63 $3,520 MS-63 $1,250 1911 25 cent Gem Proof $4,180 PR-65 $1,250 How DID WE DO IT? It wasn't easy. We carefully catalogued every coin, illustrated the feature items using digital photography, and showed the lots in New York City. We made the dealers and collectors who came to the auction feel right at home, and we provided telephone bidding for those who couldn't be there in person. 1911 25 cent Gem Proof Realized $4,180 IF YOU ARE THINKING OF SELLING, YOU OWE IT TO YOURSELF TO SPEAK TO US We'll do everything we can to get you great results, and do it in a warm, friendly atmosphere. Call and ask for Jay Erlichman, Stephen Goldsmith, Tom Tesoriero (U.S. Coins), David Vagi, John Lavender (Ancient Coins), Douglas Ball (CSA, Obsolete and Colonial Currency), Martin Gengerke, Scott Lindquist (Federal Currency), Diana Herzog or James Lowe (Autographs). 1852-0 $20 AU Realized $2,475 1802 50 cent EF Realized $4,180 1899 $21/2 PCGS PR 65 Realized $18,700 We will be attending most major coin and currency shows. Scott Lindquist or Tom Tesoriero will be behind our table, buying, selling and accepting consignments. Please visit our gallery at 26 Broadway, in the heart of Manhattan's Financial District, near the new home of the American Numismatic Society, the Museum of American Financial History, the Statue of Liberty, and the New York Stock Exchange. We look forward to seeing you soon. For Upcoming Smythe Auctions Visit Our Website at www.smytheonline.com 26 Broadway, Suite 973, New York, NY 10004-1703 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-908-4670 E-MAIL: info@smytheonline.com INTERNET: vvvvw.smytheonline.com PAPER MONEY • January/February 2003 • Whole No. 223 7 If You Collect Currency, Coins, or Stocks and Bonds, You Won't Want to Miss These Important Auctions! JANUARY COIN AND CURRENCY SALE This important auction will feature United States gold, silver and copper coins, some dating back to the late 18th century. In addition, 19th and 20th century coins, many in Choice to Gem Uncirculated, will be offered. Also included will be foreign lots, medals and other fine numismatic material. Ron Guth, Auctioneer, New York License #111214/111212. SALE DATE: January 13, 2003—New York City. Viewing will take place in New York and January 7-9 in Orlando, Florida. Just one of the exciting coins Smythe will sell in this auction 1842-0 $10. Only 27,400 of these pieces were struck, with perhaps 200 surviving in any condition. The specimen offered in Smythe's January auction, although once cleaned, has sharper details than any known specimen. To receive a catalogue for this sale ($25), call our subscription desk at 800-622-1880. "ABSOLUTELY THE INEST STOCK AND BOND S OW IN NORTH AMERICA, B R NONE." The February Strasburg Stock, Bond and Currency Show and Auction, now in its 16th year, is acclaimed as the most important event of the year for collectors and dealers of stocks, bonds, financial documents and related ephemera. R.M. Smythe & Co. Firm License: Pennsylvania AY 0001861 SALE DATE: February 6-9, 2003, Strasburg, Pennsylvania. An historically significant item included in this sale 1141.;:ggia:2461. y#09441 .VC, iiiTizliCit—snaiilc. °mums. Pttpt, An excessively rare Northern Pacific Railroad bond signed by Jay Cooke, "financier of the Civil War". Also included in the sale will be a comprehensive collection of stocks and bonds with imprinted revenue stamps and an extensive offering of American Bank Note Company stock and bond specimens. To receive a catalogue for this sale ($25), call our subscription desk at 800 -622 - 1880. For information regarding table sales at this show please contact Show Chairman Kevin Foley at 877-210-1727. "Absolutely the finest stock and bond show in North America, bar none. I recommend it without reservation to every serious collector and dealer." — Scott Winslow, dealer 26 Broadway, Suite 973, New York, NY 10004-1703 TEL: 212-943-1880 TOLL FREE: 800-622-1880 FAX: 212-908-4670 E-MAIL: info@smytheonline.com INTERNET: www.smytheonline.com 4:)44,4 Life Member 1-.E..,-,, !te: , ,„ ''',. ''''. Itkollh-■ = VISA' Mtnimnama N oVU 8 January/February 2003 • Whole No. 223 • PAPER MONEY Figure 7: Another engraved vignette of Spinner during the time he was Treasurer of the United States. Figure 8: An engraved vignette of Spinner as a mature man based on the CDV shown following. paper. The two visitors, who are speechless, accept the autograph, and cannot wait to get home to show-off the signature of the Treasurer of the U. S. Treasurer Spinner is very well known as the person who was most instru- mental in the development of U. S. Postage and Fractional Currency. This is how it happened. When Fort Sumter was attacked by the Confederacy on April 12, 1861, President Lincoln issued a call to arms. This impending Civil War caused everyone to hoard specie. All types of make shifts for money were used by businesses and individuals: postage stamps, scrip, tokens, encased postage, postage currency envelopes and others. None of these specie replacements worked well. In order to alleviate the problem, President Lincoln signed an Act in July, 1861, authorizing stamps (with glue on them) as money. A run on the post office soon exhausted supplies. When they stuck together and became unmanageable, almost everyone wanted to redeem them at the post office. At first, Postmaster General Blair refused to redeem them, but later after negotiations, they were redeemed. The prob- lem continued with everyone screaming for a circulating specie. Treasurer Spinner was quite aware of the shortage of specie, and the many non legal tender replacements that were in cir- culation. For that matter, the entire Treasury Department was under a lot of pressure to come up with an answer. Finally, Treasurer Spinner came up with a wonderful idea for a circulating specie replacement. He took unused five- and ten-cent stamps, pasted them on Treasury paper with his signature, made them a uniform size and circulated them around the Treasury Building. Officials liked his idea, and thus the First Issue of Postage Currency came into existence. Unlike the circulating postage stamps with adhesive that had circulated earlier, these notes were uniform in size and had no glue or adhesive on them. They were issued in 5-, 10-, 25- and .50-cent denominations. The Act passed in 1861 authorizing stamps as money was used to produce this issue. Though issued ille- gally, an Act in 1863 legitimized this First Issue, and authorized a Second Issue of U. S. Fractional Currency. U. S. Postage and Fractional Currency had five different issues between 1862 and 1876. Denominations of 3-, 5-, 10-, 15-, 25- and 50-cents were circulated. Not all issues used all denominations. Figure 6 is a rare envelope containing information about the amounts issued. This item was purchased from Hy Brown about 12 years ago along with other envelopes and ephemera. Some experts feel the information on this envelope isn't precisely correct. While at the Treasury, Spinner was credited with bring- ing women into government service. First he hired women to cut sheets of notes apart, then as clerical workers, and finally to detect counterfeit notes in the Redemption Division of the Treasury Bureau. Spinner stated that "most females were doing better and more work for the $600 per year then a lot of the male workers who were being paid twice that amount." He also said, "A man will examine a note systemati- cally and deduce logically, from the imperfect engraving, blurred vignette or indistinct signature, that it is counterfeit, and be wrong four cases out of ten. A woman picks up a note, looks at it in a desul- tory fashion of her own, and says: 'That's counterfeit.' 'Why?' 'Because it is,' she answers promptly, and she is right eleven times out of twelve." Out of great love and appreciation for Spinner, the women workers had his statue cast in bronze. According to legend, one night Spinner lay restless in his bed having a strong impression that something was wrong at the Treasury. Getting up quick- ly, he headed for the Treasury building and came across a guard who was on his , /* /.7 // r ) L i'r7/ tce 7-C 49‹ (.0adaits PAPER MONEY • January/February 2003 • Whole No. 223 9 way to wake him up because someone had left the vault door open. The next day Figure 9: A Treasury Warrant signed he moved to a small room at the Treasury. On a daily basis, he made sure that by Spinner and Register of the Treasury the vault doors were locked. Out of this, he received the nickname, The watch- Colby. dog of the Treasury." Figure 7 is a rare Treasury Warrant dated 1866, and signed by Spinner and Register of the Treasury S. B. Colby. The ABNCo N.Y. imprint is at bottom. The only blemish on Treasurer Spinner's record occurred when Superintendent of the National Currency Bureau, Spencer M. Clark, placed his own portrait on a five-cent Third Issue Fractional Currency note. Spencer Clark was instructed to place William Clark's (of the Lewis and Clark expedition) image on the note. Some fascinating information regarding the Spencer M. Clark inci- dent can be found at the Bureau of Engraving & Printing web page, which can be found at: http://www.bep.treas.gov/document.cfm/18/114 Almost all collectors of fractional currency know that Spencer Clark placed his own likeness on the five-cent note instead of William Clark. We didn't real- ize that when Spencer Clark mentioned to Spinner the name of Clark that he thought Freeman Clark was going to be on the note. Spinner evidently didn't even know that Spencer Clark was given directions to place William Clark on the five-cent note. He absolutely played with words with Spinner regarding the Clark name. Most of the following information will be found on the BEP web page mentioned above. We think it is fascinating reading: Without consulting Treasurer Spinner, Spencer Clark ordered that his por- trait go on the 50 cent Third Issue fractional currency note. It appeared that the Treasurer was pleased with having his portrait placed on the note and approved it. Other portraits and designs were approved as they were getting set to go. Spinner asked Clark whose likeness was going to be on the five-cent Third Issue note? Clark said how about Clark? Spinner said excellent, thinking that Spencer Clark was going to place the portrait of the Comptroller of the Currency Freeman Clark on the note. It is evident that Spinner didn't even realize that the Clark that was supposed to go on the note was William Clark of the Lewis and Clark expedition. In any case the mistake wasn't noticed until large quantities of notes had been produced. Needless to say complaints and criticisms regarding this egotistical act by Spencer Clark came from all areas of government. Due to Spencer Clark's action, Congress passed an Act on April 7, 1866, prohibiting the use of portraits of any living person on U. S. paper money. The Act is still in force today. Unfortunately, this Act prohibited the release of the fifteen-cent Grant and Sherman note which was almost set to be released. The Congressional Act of January/February 2003 • Whole No. 223 • PAPER MONEY10 May 16, 1866, authorized an issuance of five-cent nickels. The Act was passed so the government could withdraw from circulation as many of the Spencer Clark five-cent notes as they could. The Act also forbid the issuance of paper money in denominations less than ten-cents. All of this is very fascinating reading, and as you can see almost every celebrity of the times had his por- trait placed on notes before the Act was passed. When it is all said and done, it is good that the Act was passed in 1866. We don't think living persons should be placed on U. S. Government fiscal paper. This honor should be given to great Americans who are no longer with us. Spinner loved flowers, mineral specimens and crystals and often gave these as gifts. He was a friendly, humble, generous and kind gentleman to both rich and poor alike. In a letter, he is quoted as saying that "great wrong and sorrow can grow out of one sharp retort." During his Washington years, he also spent time in Mohawk, N.Y., which was his official residence. He vaca- tioned in Jacksonville, Florida during the winter months. Late in life, his eyes started failing him and he developed cancer. Right up until he died in Florida on December 31, 1890, Spinner was always happy and in fine spirits. He was buried in Mohawk, New York. His ornate signature is engraved on his tombstone. Figures 11 and 12 show two Spinner checks. The top one is dated 1890 and payable to Spinner for personal expenses. Since Spinner was virtually blind and dying of cancer, it is hard to believe that he could even write a check such as this. The bottom check, dated 1852, is on the Mohawk Valley Bank. This holograph (entirely hand-writ- ten) check is payable to Spinner and signed by him as Treasurer at the bottom. Figure 12 shows the backs of the checks in figure 11. Both are Figure 10: A CDV (carte de visite) enlarged view of an elderly Spinner. endorsed by Spinner. We have spoken to a Buffalo, N.Y. collector/dealer Norm Peters, who he told us that about 13 years ago he was able to purchase 5,000 checks on the Mohawk Valley Bank signed by Spinner. He said that he went to a local antique dealer in the Mohawk Valley area and was able to purchase these 5,000 Spinner checks from the bank. They all were in a large box. The antique dealer told Norm that someone found the checks in a dump in Mohawk Valley, brought them to him and asked if they were worth any money? The antique dealer bought them all. The person then went back to the dump and found that they had been bulldozed over and buried. He dug around and found some more and sold them to the antique dealer also. It was told to Norm that the Mohawk Bank evidently cleared out there storage area and disposed of the old checks and other documents. The bank has been sold several times over and we don't know what name it holds today. Norm told us that he only has a few remaining from the 5,000 checks he purchased from the antique dealer. He said that he sold 1,500 to one person for $12 a piece years ago. Norm didn't say what he paid for the large hoard, but it had to be less than the $12 he sold the 1,500 for. This information is very impor- tant to collectors of Spinner checks. It appears that about the time this hoard was It 1E4' EIVA1P &TEO • MIN sr •.IPS " • '1:MS11E110MT `•' ASSISTANT J-49,PR .90 'DI/Etat:MATED DEPOSITARIES #=7:ff c:? 51.*is /%1%;V;ih f4,77T474P44:6;S• /1.YY/1,/, ,....;,...,;:-..._.„... P 15.; . -..4,,,,,,,,,,/ 4 , 74, ,e, ,i,, . ,/ , /// //e. / 1 , • , / ., , (flit ?... .,„..... . if , i 4. ' , ■ 7 r" '
  • , •.t.„ • 0,0 • • California Census so.k.s.c.,No ‹.. •• 4, .,.e No • • Over 12,225 Notes and Counting! <, 0.i.- +4e, •• •A MUST for Ad)"• • • EVERY COLLECTOR, DEALER & AUCTION HOUSE! • • • • Why use information in a "Guide" that is 5+ years old? • • California is one of the HOTTEST Nationals Markets. • • •YOU need this information. Dealers and Auction Houses •• •use it to get better prices, shouldn't you?• • • Carson Valley Currency & Coins, Inc. •• • • PO Box 8140, Gardnerville, NV 89460 • • 775.265.5053 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • ■QPkwsori siettkiny or $71,9/Yllill fpr 111%/111,11".L to ',wk. orewgrinviorposstiwer (rtlempThig /e iwx.c am/ Unita/1m or I 4 a/tem/ion of lids tmh . rind evert/ mrseir havliv /, ,ystssi,e, W nr impoision nt,iile in inriht/iun i oli/ or. 'v papir ',hub' rots= 1 hilion itt/ I Ihix mole. MW.1. ■joati/ ,111/ fir/ .S711:1/4'1 : floe not ;:erert/tioi lho-Theo fool imio7:■7#/- tow/ noi,dmillov Milton # 3AD5R.1 44 January/February 2003 • Whole No. 223 • PAPER MONEY • UNITED STATES COINS AND CURRENCY • INDIAN PEACE MEDALS • COLONIAL CURRENCY • OBSOLETE CURRENCY • ENCASED POSTAGE STAMPS • FRACTIONAL CURRENCY • REVOLUTIONARY WAR • CIVIL WAR & GREAT AMERICANA •(‘Ce of _ ,, P Ago,. 2P S .4' /-t. •„ b , 't,..,. F--1.., -7a t. ehate.Qtkietef'3.. hrt,[77ITS*11= ltatri u eJlmanri RARE COINS/ CURRENCY Since 1967 PAPER MONEY • January/February 2003 • Whole No. 223 45 EARLY AMERICAN NUMISMATICS P.O. Box 2442 • La Jolla, CA 92038 • (858) 459-4159 • Fax (858) 459-4373 Subscribe to Receive our Beautiful, Fully Illustrated Catalogs Only $72 for a Full Year's Subscription of Six Bimonthly Issues Visit Our Website: www.EarlyAmerican.com WANTED I Collect Florida Nationals, Obtsoletes, Script, Tokens \ In Stock for iminediate Delivery 'all Gold, Silver, and Platinum .Products all o r uuotes The South's oldest and largest co shop sink 1967 Top prices paid fur all National Bank Notes, ollectionsAcd Estates Large Inventory of National Bank i otes for salel See Our Webs i te at Williamyoungerman.com or el us at wymey@aol.corn WILLIAM YOUNGE N INC tYour Hometown Currency Hea ers 95 South Federal Highway, Su3 3, oca Raton. FL 33432 P.O. Box 177. Boca Raton. FL 29-0177 (mailing) (561) 368-7707 (in Forida) • (800) 327-5010 (outside Florida) (800) 826-9713 (Florida) • (561) 394-6084 (Fax) Members of FUN, CSNA. ANA and PNG 46 January/February 2003 • Whole No. 223 • PAPER MONEY WANTED: NATIONAL BANK NOTES Buying and Selling Nationals from all states. Price lists are not available. Please send your want list. Paying collector prices for better California notes! WILLIAM LITT P.O. BOX 6778 San Mateo, California 94403 (650) 458-8842 Fax: (650) 458-8843 E-mail: BillLitt@aol.com Member SPMC, PCDA, ANA .N..01,10 . 74=4 - • X :Ltsiff.g.f.V.:..7.,re 131.3 IX 10 .:.1.TEN) PAPER MONEY • January/February 2003 • Whole No. 223 47 New Hampshire Bank Notes Wanted Also Ephemera I am continuing a long-time study on currency issued by banks in New Hampshire, including state-chartered banks 1792-1865, and National Banks circa 1863-1935. Also I am studying colonial and provincial notes. I would like to purchase just about anything in colonial and provin- cial notes, nearly everything in state-chartered notes, and items that are scarce or rare among National Bank notes. I am not seeking bar- gains, but I am willing to pay the going price. I will give an immedi- ate decision on all items sent, and instant payment for all items pur- chased. Beyond that, I am very interested in ephemera including original stock certificates for such banks, correspondence mentioning cur- rency, bank ledgers, and more. With co-author David M. Sundman and in cooperation with a special scrip note project by Kevin Lafond, I am anticipating the production of a book-length study of the subject, containing basic information about currency, many illustrations including people, buildings, and other items beyond the notes themselves, and much other informa- tion which I hope will appeal to anyone interested in historical details. All of this, of course, is very fascinating to me! Dave Bowers Box 1224 Wolfeboro, NH 03894 Telephone (603) 569-5095 Fax (603) 569-5319 E-mail: barndoor@bowersandmerena.com UNITED STATES TREASURY. NEW-YORK, Nov.13th, 18E32. This will entitle the holder to re- ceive i eh9rige fbr United States Notes Dollars in POSTAGE i RRENCY, each Tuesday and F until further notice. . JOHN J. CISCO, ;! (e"We.1",-4,11("2 Asst.Treas'r.If. S. F014410 94c 6 48 January/February 2003 • Whole No. 223 • PAPER MONEY Gleanings from My Fractional Currency Archive - 1 By Fred Reed U .S. POSTAGE CURRENCY WAS AN EMERGENCYissue arising from the necessity for the government to provide a small circulating medium of exchange after virtually all silver fractional coins were hoarded early in the Civil War. At the time these notes were authorized, there was no Bureau of Engraving and Printing. The federal government was contracting out for the printing of its currency, its stamps, its revenue stamps, bonds and other obligations. The amount of security printing that was necessary to support the war effort outstripped the capacity of the private printing firms with which the government was contracting. Thus the issue of these small value notes was greatly delayed, exacerbating the small change crisis across the north- ern states. As collectors, we know this lack gave rise to private, municipal, corporate and state fractional notes -- a polyglot medium of uncertain value. Even postage stamps circulated during these distressing times! When shipments of Postage Currency were finally made available in fall 1862, the quantities dribbled out far-out- stripped by demand. In order to expedite circulation of the notes, Assistant U.S. Treasurer John Cisco printed up Postage Currency permits entitling the holder to acquire notes (if they were available) up to $30 in value on either Monday and Thursday or Tuesday and Friday. The Tuesday-Friday permit was originally published in The Numimatist many years ago. The Monday-Thursday per- mit was acquired in the 1980s by my friend and fellow SPMC member Ernie Keusch, who permitted me to publish it for the first time in my encased postage stamp book. If any other per- mits survived, the Editor would like to hear about them. UNITED STATES TREASURY. NEW-YORK, Nov. 13th, 1802. This will entitle the holder to re- , ceive in exchange for United States Notes Dollars in POSTAGE CURRENCY, each Monday and Thursday until further notice. , ' JOHN J. CISCO, , /1 Ass t. Troas' U. S. Buying Carl Bombara Selling United States Currency P.O. Box 524 New York, N.Y. 10116-0524 Phone (212) 989-9108 liAl ■ M. : A41■:‘: .1 •:: 1 N I% I Nftt WO 71 rillralC: (.01A I- it.,..Lit.d.ct MI MAIMED 111111111S $500 1880 Legal Tender Serial Washington Brownback /5Ze G131491►1 1882 $1,000 Gold Certificate PAPER MONEY • January/February 2003 • Whole No. 223 49 Lyn Knight Currency Auctions Deal With The Leading Auction Company in U.S. Currency If you are buying notes... You'll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful "grand format" catalog, featuring lavish descriptions and high quality photography of the lots. Annual. Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 1890 $1,000 "Grand Watermelon" Note If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: • Great Commission Rates • Cash Advances •Expert Cataloging •Beautiful Catalogs Call or send your notes today! If your collection warrants we'll be happy to travel to your location and review your notes 800-243-5211 Mail notes to Lyn Knight Currency Auctions P. 0. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowlege receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. Currency Auctions A Collectors Universe Company Nasdaq, CLOT P.O. Box 73111. Overland Park. KS 66267 • 800-243-5211 • 913-338-3779 • Fax: 913-338-4754 • E-mail: lynIknight@aol.com • wvivlynknight.com 50 January/February 2003 • Whole No. 223 • PAPER MONEY T FIRST TIME I SOLD MY FRACTIONAL CURRENCY COLLEC-tion was in 1976. I had been collecting since 1965, when my grandpa gave me my first note, a Crawford (Fr. 1381). Grandpa said it was Bob Hope's dad! I took it to three coins stores to find out it was William H. Crawford, who served as both Secretary of the Treasury and Secretary of War. From 1971-1984 I managed the Coin Place in St. Louis and from 1974-75, my dad's auto parts store. My dad let me "go!" My hair was long and I refused to get it cut. I was making a living playing professional foosball (table soccer). Yes, there was professional foosball competitio, and I was making $200 to $500 per week at it. The money was not always steady, so I made up my mind to sell frac- tional currency via mail order and at coin shows, too. There was already someone (Len & Jean Glazer) doing it, so I knew it would work. In May of 1976, I sent out my first price list containing 99 notes. Some of the notes were; Fr. 1268 in VF ($25); Fr. 1312 in VF ($30) and a Fr. 1253 in Gem New ($70). I was now in the business of selling fractional currency. That same year, I sold a Gem New Fr. 1331 to Don Kelly for $35, and a New Fr. 1331 to Carlson Chambliss for $30. At the first International Paper Money Show in Memphis in June 1977, I sold six fractional currency vignettes from the Rothert sale to Len Glazer for $200; an original pack of Fr. 1381 notes in New to Harry Forman for $650; a Fr. 1246 that I did not know had an inverted "S" to Mike Marchioni, as well as many other notes. I sold fractional via mail for the next two years, then returned to work in my dad's auto parts store. Since I then had a full time job, I started collecting frac- tional currency again. Prices went crazy in 1981 when investors and not collectors A Fractional Currency Dealer's Story By Robert J. Kravitz took over the market and peaked in 1986. My dad sold his auto parts store and I moved west to Sacramento, CA and got yet another job managing an auto parts store there. In 1991, I got a call from an old customer who tracked me down. He knew I had saved a lot of wide margin Grant/Sherman notes and made me a great offer for them. I needed the money, so I sold them. Once again, I started selling fractional at the expense of my collection! I started setting up at coin shows and joined the Fractional Currency Collectors Board. In 1993, I put out my second mail order list. There was not a lot of inter- est in fractional in the 1990s except when there was a big collection sold, includ- ing Alan May in 1992, Herman Halpern in 1993, Wayne Leichty in 1994, Martin Gengerke in 1995, and finally the Milt Friedberg sale in January 1997. With the sale of Milt's amazing collection, a lot of interest in fractional began. So, I decided to do my first full-page ad in Bank Note Reporter. I was able to sell most of the notes in the ad. In September 1997, things changed at work, so I quit. I had just moved into a new house, had two house payments and no job. Luckily, I was also selling large size currency. With the sales of two more major fractional collections, Dr. Wally Lees's (1999) and Mike Marchioni's (2000), interest in fractionals began to skyrocket. Now the problem was finding quality material to sell. I sent out my first real catalog in 2000. I listed 123 different notes, many rare and scarce. I was able to sell 75% of the notes in the catalog. More new collectors are coming to the conclusion that fractional currency is till a bargain when you compare the rarity to the price, especially if you compare them to large size. The Fr. 1296 is a great example. With only 12 known, in gem it has sold for $4,200. Had this rarity and condition been a large size note, it could easily have surpassed $100,000. The fractional currency market is very strong, the best ever. Many new collectors are getting the fractional bug. More and more dealers are stocking fractionals as well. Fractional is truly on the crest of a wave! PUBLIC AUCT AlkeIIERICANA ION skLE COLONIAL AND IFEDIFIlIAL 4414.COINS,MIEDALSAND CIRrolreNCY 5:assuring The Masa 01D4huaxall Pales& a. :if PUBLIC COIN AUCTION 60 1' A nniversary (Private „Aluscum Collection (hated Slates •Thre 'Paper _Alone) , OCTOBER 11,, 2001 123 WEST 57th STREET, NEW TOM N.Y. PUBLIC AUCTION SALE AMERICANA COLONIAL AND FEDERAL COINS, MEDALS AND CURRENCY fir.tam,g Selections from the Hain Family Collection Part II January 15, 16, 17, 2002 jijm :23 WEST 57th MEET. NEW YORE. NY. 10019-2280 123 West 57th Street New York, NY 10019 ® Telephone (212) 582-2580 FAX: (212) 245-5018 e-mail: info@stacks.com Visit our Web site at www.stacks.com PROFESS IS NEL NUMISMRTISTs cum) • I N G STACK'S NUMISMATISTS Auctions — Appraisals — Retail SINCE 1935 Larry Stack Harvey Stack Tom Panichella PAPER MONEY • January/February 2003 • Whole No. 223 51 America's OLDEST COIN Auction House Is Also America's OLDEST CURRENCY Auction House a When you think of selling, you must think of Consignments are now being accepted for our upcoming 2002/2003 Auction Schedule Contact Harvey or Lawrence Stack for consignment information. 2001 AMERICANA SALE Prices Realized nearly $4.5 Million, including $850,000 in banknotes. 66th ANNIVERSARY SALE Private Museum Collection of U.S. Type Notes Prices Realized $300, 000+. 2002 AMERICANA SALE Prices Realized Over $7.3 million, including $500,000 in currency. Above: normal; at right with pearls missing 52 January/February 2003 • Whole No. 223 • PAPER MONEY Fractional Currency Errors By Benny Bolin T IKE ALL PAPER MONEY SERIES, FRACTIONAL CURREN-cy has its share of errors. Either from the scrutiny fractional curren-cy received during its printing, or due to the small numbers still4 extant, none of these errors are numerous. However, with very few exceptions, these are not widely collected and many command only very small premiums. This article is intended to introduce collectors to the field of errors which may be found on fractional currency. ENGRAVING ERRORS: There is only one true engraving error in the frac- tional currency series. This is on third issue, three-cent notes with the light background. Two plates of these notes (plates 32 & 35) were engraved missing the two small pearls below the diamond under the center of Washington's por- trait. INVERTED "S": An error thought by many to be an engraving error and having the appearance of it is the second issue twenty-five cent note with the bronze reverse "S" surcharge in the upper left corner upside down. The bronzing of this series of notes (and also third issue notes) was clone by sprin- kling bronze water glass powder over glue that had been applied by a plate PAPER MONEY • January/February 2003 • Whole No. 223 53 CHECK THE "GREENSHEET" GET 10 OFFERS THEN CALL ME (OR WRITE) FOR MY TOP BUYING PRICES The Kagin name appears more often than any other in the pedigrees of the rarest and scarcest notes (U.S. Paper Money Records by Gengerke) BUY ALL U.S. CURRENCY Good to Gem Unc. I know rarity (have handled over 95% of U.S. in Friedberg) and condition (pay over "ask" for some) and am prepared to "reach" for it. Premium Prices Paid For Nationals (Pay 2-3 times "book" prices for some) BUY EVERYTHING: Uncut Sheets, Errors, Stars, Special Numbers, etc. I can't sell what I don't have Pay Cash (no waiting) - No Deal Too Large A.M. ("Art") KAGIN 505 Fifth Avenue, Suite 910 Des Moines, Iowa 50309-2316 (515) 243-7363 Fax: (515) 288-8681 At 83 It's Still Time - Currency & Coin Dealer Over 50 Years I attend about 25 Currency-Coin Shows per year Visit Most States (Call, Fax or Write for Appointment) Collector Since 1928 Professional Since 1933 Founding Member PNG, President 1963-64 ANA Life Member 103, Governor 1983-87 ANA 50-Year Gold Medal Recipient 1988 4104 1..1171' ••-"" • • 1116111kGE-C sjoisn poky ny ----Tiir tV7/DESICtiTEW DEM, InTos-7-+Trimucicmattr-r- 54 January/February 2003 • Whole No. 223 • PAPER MONEY which had rubber dies on it. Evidently, when the plate was assembled, the "S" was inserted upside down. Interestingly, this same plate seems to have been used to print both experimental notes and regular issue notes since this variety exists in both. There are less than 10 regular issue notes and 8 experimental notes known with this error. Correct (left) Invert (right) DOUBLE DENOMINATION: Double denominations in fractional curren- cy are very rare and less than 10 total double denomination notes for the series are known. All known double denominations are on second issue notes. Collectors are warned to be wary of some of these since many second issue notes were printed on fiber paper, which is easily separated. MISALIGNMENTS: Probably the most common error in fractional curren- cy is the misaligned note. These errors were made when a sheet already print- ed on one side was fed into the press off-register, causing one side or the other to be off center. This creates notes that have a piece of the adjacent note design on them. The key in this error is that one side will be centered fine, but the other side will be off alignment. Since the large majority of these notes are only minimally misaligned, the error generally detracts from the desirability and value of the note instead of enhancing it. i1 11^11^ ,f fr, a AIM/ %;:. . -.--- t I I ill • • vz4., SS 1%1 1.4”/I POLL. vi ,vp11/111:5 „ :; - • ;;;SII/1;/17.1'1'''I.V;1.: /1"'"/ PERFORATION ERRORS: Some first issue fractional currency (Postage Currency) was made with perforations between the notes like postage stamps to facilitate the separation on notes on sheets. Completely printed sheets were fed into perfing machines to achieve this. Sometimes, the perforations were incomplete (missing vertically or horizontally). These errors exist today, but are very rare. At other times, the sheets were off-register when they were fed into the per- forating machine making a note that had some of the perforations done at an angle as this note at left shows on its left side. PAPER MONEY • January/February 2003 • Whole No. 223 55 INK SMEARS: There are relatively few ink smears known in fractional cur- rency. Due to the printing method employed in printing these notes. Thus this is not a common error. The author knows of two full back ink smears in addition to the two smears shown above. PRESS BED SMEARS: Many fractional currency notes (like the one above) have press bed smears. These occurred when the sheet was pulled off the plate and dragged over residual ink. These smears are not considered errors and detract from the desirability and value of the notes. Collectibles INSURANCE For The PaperMoney Collector ; Your homeowners insurance is rarely enough to cover your collectibles. We've provided economical, dependable collectibles insurance since 1966. • Sample collector rates: $3,000 for $12, $10,000 for $32, $25,000 for $82, S40,000 for $132, $60,000 for $198, SI per $1,000 above 560,000. • Our insurance carrier is AM Best's rated A+ (Superior). •We insure Paper Money, Stock Cer- tificates and scores of other collectibles in numerous categories. "One-stop - ser- vice for practically everything you collect. WM= VISA" ft • Replacement value. We use expert/ professional help valuing collectible losses. Consumer friendly service: Our office handles your loss—you won't deal with a big insurer who doesn't know col- lectibles. • Detailed inventory and/or professional appraisal not required. Collectors list items over $5,000, dealers no listing required. See our online application and rate quote forms on our website! Collectibles Insurance Agency P.O. Box 1200-PMC • Westminster MD 21158 E-Mail: info@insurecollectibles.com More Info? Need A Rate Quote? Visit: www.collectinsure.com Or Call Toll Free:1-888-837-9537 • Fax: (410) 876-9233 ***FURNISHED ONLY Ali* ASSISTANT 4 RERa • Ti',... • owyl.tin ae.ianwar- 4, atoll 0 M 3?/""/ v, ,,,, ' ..,,,,, 1 '.W11 -17(Pfl Q YB :1,11.1 1;1111 1Sa, er/..?4,7N? ill.i.-11.0pie \-.\■ ,.s-___H'elZ.,4 , ?OIL r. j.;,,,,,,, , January/February 2003 • Whole No. 223 • PAPER MONEY INSUFFICIENT INKING: When fractional currency was printed, ink was applied to the plate and then the sheet was laid on top and printed. If the oper- ator wiped too hard and removed too much ink, an insufficient inking situation would occur with light or totally absent details in that area. Due to the prob- lems associated with wear on a note, this type of error is very difficult to certify in notes that are not in Uncirculated condition. INVERTS: Inverts are the kings of fractional currency errors, in desirability, number and price. Almost all of the different series of the first three issues of fractional currency have inverts of some type. The first issue notes with inverts merely had the back inverted in relation to the front. The second and third issues have inverted surcharges, inverted back engraving and totally inverted backs (actually inverted fronts). Tom O'Mara very nicely chronicled these dra-matic errors in Paper Money several years ago after displaying them at a Memphis show. With the exception of the first issue five-cent invert, all frac- tional currency inverts are considered rare and most have less than 5-10 exam- ples known. The inverted pair is rare as not many inverted multiples are known. The fifty-cent experimental is one of four known and the five-cent with the inverted reverse engraving is one of only two known. 56 Mgt- 111 77Jt.lti,eritl:KY4 ■;_".1 ties ig,41100 - TUE First issue with inverted reverse Second issue inverted back engraving PAPER MONEY • January/February 2003 • Whole No. 223 BUYING AND SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Certificates, Treasury Notes, Federal Reserve Notes, Fractional, Continental, Colonial, Obsoletes, Depression Scrip, Checks, Stocks, etc. Foreign Notes from over 250 Countries Paper Money Books and Supplies Send us your Want List . . . or .. . Ship your material for a fair offer LOWELL C. HORWEDEL P.O. BOX 2395 WEST LAFAYETTE, IN 47996 SPMC #2907 (765) 583-2748 ANA LM #1503 Fax: (765) 583-4584 e-mail: lhorwedel@insightbb.com website: horwedelscurrency.com Always Wanted Monmouth County, New Jersey Obsoletes — Nationals — Scrip Histories and Memorabilia Illenhurst — Allentown — Ashug Park — Atlantic Highlands — Belmar Bradley Beach — Eatontown — Englishtown — Freehold — Howell Keansburg — Keyport — Long Branch — Manasquan — Matawan Middletown — Ocean Grove — Red Bank — Sea Bright — Spring Lake N.B. Buckman P.O. Box 608, Ocean Grove, NJ 07756 800-533-6163 Fax: 732-282-2525 New Hampshire Notes Wanted: Obsolete currency, National Bank notes, other items relating to New Hampshire paper money from the earliest days onward. Dave Bowers Box 1224 Wolfeboro, NH 03894 E-mail: barndoor@bowersandmerena.com Fax: 603-569-5319 57 r Buying & Selling All Choice to Gem CU Fractional Currency Paying Over Bid Please Call: 916-687-7219 ROB'S COINS & CURRENCY P.O. Box 303 Wilton, CA 95693 L Right: Second issue inverted back surcharge Right: Second issue inverted back surcharges pair of notes Below: Second issue inverted back surcharge ha) c\s‘.‘4::.'1■• orrea-6‘scr. 58 January/February 2003 • Whole No. 223 • PAPER MONEY OFFSET TRANSFERS: Offset transfers occurred primarily by stacking sheets of still wet notes on top of one another. The two second issue notes here have the image from the front on the back. The third issue ten-cent note has the offset of the front "10" surcharge on the back. 7-7 PIC s I r 4 I • S'• r F011 ;is" rrt • ',..,: stja, A very dramatic non-error is shown (left) of a first issue note with a second issue "25" denomination back surcharge on it. Obviously, this is not a BEP product, but resulted from the notes being stacked either wet or under pressure. The author also has a green back justice note that has a red back transfer. We stock a large inventory of high quality fractional notes Below is just a sampling. Please call with specific wants. 1228 5c Very Choice CU $299 1241 10c Very Choice CU $325 1279 25c Gem CU $550 1311 50c Choice CU $110 1245 10c Choice CU $95 1286 25c Choice CU $188 1322 50c Very Fine+ $55 1253 10c Gem CU $325 1295 25c Gem CU $288 1297 25c Gem CU $435 1328 50c Very Choice CU $315 1343 50c Gem CU $555 1269 15c Gem CU $250 1307 25c Very CH CU $110 98 Main Street #201 Tiburon, CA 94920 1-888-8KAGINS www.kagins.com Call Judy Buying Carl Bombara Selling United States Currency P.O. Box 524 New York, N.Y. 10116-0524 Phone 212 989-9108 AP.I .RIS • • You can be a leader too • • Advertise in PAPER MONEY • PAPER MONEY • January/February 2003 • Whole No. 223 59 Why? Why do the leading paper money dealers advertise in PAPER MONEY? Because they are the LEADING DEALERS & They intend to remain THE leaders! r Claud & Judith Murphy We Buy & Sell Paper Money, checks, bonds, stocks, letters, old postcards, stereoviews, cdv's If it's old and it's paper, we have it! Box 24056 Winston-Salem, NC 27114 336-699-3551 NEW YORK STATE SCRIP AND PRIVATE ISSUES 1,300 listings, 800 photos $38.95 (plus sales tax if applicable) Gordon L Harris 5818 S. Terry Rd. Syracuse, NY 13219 DO YOU COLLECT FISCAL PAPER? The American Society of Check Collectors publishes a quarterly journal for members. Visit our website at http://members.aol.com/asccinfo or write to Coleman Leifer, POB 577, Garrett Park, MD 20896. Dues are $10 per year for US residents, $12 for Canadian and Mexican residents, and $18 for those in foreign locations. fax: 336-699-2359 e-mail: MurphAssoc@aol.com www.murphyenterprises.com 60 January/February 2003 • Whole No. 223 • PAPER MONEY Left to right: misaligned "10"; Missing "18"; Extra bronze blob. BRONZING ERRORS: Notes of the second issue and some third issue notes had bronze surcharges and other designs applied as anti-counterfeiting mea- sures. This bronzing was actually silica water glass that was sprinkled over glue that had been applied to the sheet. Many errors resulted from this technique, including misaligned or missing designs. Collectors need to be wary of second issue fifty-cent notes without the bronze corner "18-63" surcharge as no gen- uine examples are known to exist. CUTTING ERRORS: Cutting errors of the first and second issue and the third issue three-cent notes are highly suspect for manufacture outside the BEP since large multiples and even full sheets of these notes are readily available. One type of cutting error that is a BEP product is a "butterfly fold." This occurs when the sheet is folded during cutting and a "bow-tie" or "butterfly" shape exists after. Again, these could be suspect on the aforementioned issues, but on other notes, especially the fourth and fifth issue notes, they are probably genuine. MACERATED MONEY Wanted information on U.S. Chopped up Money. Who made the items, where sold, and anything of interest. Also I am a buyer of these items. Top Prices paid. Bertram M. Cohen, 169 Marlborough St., Boston, MA 02116-1830 E-mail: Marblebert@aol.com / /.3. /13:1• /la irolzp.117,11? PAPER MONEY • January/February 2003 • Whole No. 223 61 GUTTER/INTERIOR FOLDS: Gutter or interior folds have a blank, unprinted white streak that interrupts the normal design of the note. These happen when the sheet has a wrinkle in it at the time of printing. After print- ing, when the wrinkle is straightened out, the white streak is visible. These errors range from very small to large. One example of a first issue note with five gutter folds is reported. The author's favorite is the Spinner note nick- named "Excedrin headache 25/25." FOLDOVER ERRORS: There are two fold over errors in fractional currency known to the author. These errors happen when the paper is folded over and one side is printed on the folded over area. When the paper is unfolded, the design is on the wrong side and a blank area on the other side remains. SEAL ERRORS: Fractional currency was the first U.S. paper money to have the Treasury Department seal imprinted on it. Two types of seal errors are known; the misaligned seal and the missing seal. Misaligned seals happen like all other misalignment errors due to off-register placement of the sheet before the seals were printed. Left: normal seal placement; Right: misaligned seal (too low). Abe A er°1104,13, ,ILINIT71 ay :WW1. =IV • /%0?,, • //,,/,/,/ by///,:"6:qa,mt Sihr...A itath: cat/re • • lEttgOttrotOig*:::sir-- •7cr, "±".:=3 —IND mnit crzt=cr L.- • I TMTEEDAT. .._.. -='.... ... ..—"-r2, 1 Tin f:=1-1 coL:=3. V:17.::: La CL:. c ci=mtl. ;!;',.:74:NS10 .:15 A 1110T. :Vatted etett:s Troops Called LIU) Oftedee to • Czell tab r.:xetteenent. TTIE COLLECTOR 1:11-4.13IIILSR5 svookso. t ts.a% Tro. Cor-r/led is Stag Distnhtin ud AFpals to CAT ty costteil is Etsce NO MORE CURRENCY TO HE DIOTRIe∎ UTED TO-DAY. TM Assivert Dear limed be Gove;roseoe SPECIAL itizgrnio or orrrT rmoramorii TO mule ENLAIR.OIRD Diller/ORION SY TEM . T.11118TESS etty teattstes opiate& emit Ms Las zaftig as tam A. yes- :* and mete is lata•a de re re Eiom, Iola to .t.7, the being 0; the * Int% 711., ar', 3 i 1. 3 e t 7 I CC e • 62 January/February 2003 • Whole No. 223 • PAPER MONEY Fewer than five known notes are known with genuine missing seals. However, many have had the seals removed by chemicals, scraping or erasing as have these two shown above. The ten-cent note is interesting in that Schultz and Valentine listed it in the early fractional reference books as a genuine no seal note. It was not until the Joers collection (of which this note was a part) was purchased by Milt Friedberg that it came to light that it was an altered note. As with anything, whatever is made can be made wrongly. Fractional cur- rency errors are disdained by some and loved by others. No matter how they are viewed, they are truly a fascinating subset of fractional currency. The author is indebted to Dr. Fred Bart whose book, A Comprehensive Catalog of United States Paper Money Errors was the primary reference for this article, and for sharing his vast knowledge and selling many of the notes pictured to the author. v Gleanings from My Fractional Currency Archive - 2 By Fred Reed THE INABILITY OF THE FEDERAL GOVERNMENTto meet the public's need for the promised Postage Currency was widespread especially in the hinterland. Initially when quanti- ties of notes became available, the large Eastern cities of New York, Philadelphia and Boston were the favored destinations for quantities of the government's small change notes. These delays in fall 1862 gave rise to emergency tokens and store cards, especially in Cincinnati. Such "hard money" copper and brass pieces were of more seeming value than the "worthless paper trash" which circulated everywhere, but proved inadequate to fill the needs of the time for the higher values. Dribbles of government small change bills were dispatched to post offices and subtreasuries for disbursement, but long lines of overcharged customers and inadequate supplies created a riot situa- tion in Cincinnati, as reported in the Cincinnati Daily Enquirer November 5th, 1862: The Small Change Panic in Cincinnati 5,000 Citizens Demand Postal Currency at the Custom-House Yesterday Apprehensions of a Riot .. . I published a two-part story on this fractional currency riot in Coin World Nov. 2 & Nov. 9, 1988. It was reprinted in the FCCB Newsletter in 1988 and 1993. The story also caught the eye of the Bicentennial Committee of the U.S. Postal Service in Washington, D.C. When they published the official history of the Cincinnati post office 1994, they requested permission to reprint the article in the book. Permission was granted. No fee was paid, but they did send me a copy of the very fine and large book. PAPER MONEY • January/February 2003 • Whole No. 223 63 A Misnomer Postage Currency Mystery Finally Solved By David Cassel © S INCE I PUBLISHED MY BOOK, UNITED STATES PATTERN Postage Currency Coins in 2000 surveying the U.S. pattern 10-cent coins of 1863 and related issues dated 1868-69 which were produced for the planned redemption of the fractional currency which had commenced during the Civil War, I have been up-dating my manuscript with additional data. For this special issue of Paper Money, I decided to write an original article on one of the most puzzling aspects of my research, the Koulz's Alloy ten-cent pattern coins of 1869, Judd 716/Pollock 795, an alloy of silver, nickel, and cop- per. From a technical standpoint, I'll stand pat with my Chapter 9, which deals with the Postage Currency related pattern dimes of 1869. My continuing research in this area has studied not only the coins, but also more so, the man...or, better, the misnomer. But first, let me lay the groundwork by restat- ing a portion of Chapter 9, which deals with the Koulz's Alloy pattern coins. The following passage will setup my up-date: "A supposed German chemist, Koulz was the inspiration for both the first reverse design, `SIL.9' over 'NIG. l' above a line which is over the date '1869' and second reverse design elements, `SIL.' over WIC.' over 'COP.' above a line which is over the slightly curved date `1869: An effort to garner some addi- tional information on Koulz, proved fruitless. Regretfully, this cataloguer with the help of numisma- tists in Germany and the United States, using the facilities of libraries, encyclope- dias, and the Internet could come up with not a single reference to Koulz, not even his first name, except that in the 600 page German lexicon, Koulz may not be a German name." 64 January/February 2003 • Whole No. 223 • PAPER MONEY "'What little we know originated in a booklet entitled Suggestions to Congress of the Finances of the United States submitted to the Chamber of Commerce of New York, by H. E. Moring, in 1869. This is where the earliest pattern book reference to Koulz is found in the Adams and Woodin United States Pattern, Trial, and Experimental Pieces, published in 1913 and reprinted in 1959. Dr. Judd, Andrew Pollock and now this cataloger essentially restate what, according to Andrew Pollock III, in United States Patterns and Related Issues was offered: `In 1869 the Mint experimented with an alloy consisting of 41% copper, 33% nickel, and 26% silver. The alloy was invented by the German chemist, Koulz, and promoted by a New York chemist [and Metallurgist, Stefan] Krackowizerl. Dr. Judd in his pattern book quotes the commentary of W. E. DuBois who describes the alloy as follows: 'Mr. Eckfeldt made a small bar, and gave it three meltings. It rolled down with great difficulty, splitting and crack- ing in spite of all the precaution and annealing. Mr. Barber made a reverse to try it under the press (using the dime head for the obverse,) and a faint impres- sion was produced in the steam press. The metal is totally unfit for coinage, and the color is bad.' Director Pollock considered the `Koulz's alloy' coinage at some length in his Annual Report of the fiscal year ending June 30, 1869. `Under the coining press it was barely possible to produce a feeble impression, on account of the intense hardness, and danger both of breaking the dies and flawing the planchet. In short, nothing could be more unfit for coinage.'" "With the obverse designed in 1836 by Christian Gobrecht and re- designed in 1859 by James B. Longacre, dimes were created with the dateless Seated Liberty obverse die created during the transition period of 1859-1860. Note the broken "S" serif of the first "S" in "STATES." William Barber designed the reverse in 1869. Another interesting mule was created. Once again, a coin having a common die element with the Postage Currency coins was created. 1869 would be the year that the dateless obverse element of the Seated Liberty Postage Currency ten-cent coins would see its final appearance with two different reverse designs, each, rather plain." Now, the fun begins. As previously noted, no supporting evidence of Koulz (the man) was ever found despite the exhaustive effort of many previous writers, and the additional efforts of my numismatic friends and myself. However, there is no denying that the rare pattern coins attributed as Koulz do exist. Reluctantly, we concluded the name Koulz may have been a simple typo- graphical error that originated in 1869 with the publication of Suggestions to Congress of the Finances of the United States submitted to the Chamber of Commerce of New York, by H. E. Moring. We did find a plethora of informa- tion on a Montchal Ruolz. Montchal Ruolz was born in Paris in 1809 and died in Neuilly-sur-Seine in 1887. Note the similarity in the spelling of Koulz and Ruolz. Note also how easy a letter "R" might resemble a letter "K". A drop of water, for example, on the top of the "R" could blur the letter into looking like a "K". Note also how simple it would be to transpose "uo" with "ou", especially if a writer in English were translating the work of a Frenchman. Consider how easy it might have been for the author Moring or his stenographer to have heard the name Ruolz and mistaken it for Koulz. Of the highest consideration is how H.E. Moring may have interpreted the name if it had been seen in old German script. Old German script was in common use in 19th Century Germany and not so com- mon in 19th century America. The life span of an individual 1809-1887 certain- ly is consistent with the design and striking of a coin in 1869. Consider also, that author H.E. Moring in 1869, referred to Koulz as a German chemist. As you will see, Ruolz was a French chemist. A French biography stated Ruolz was a scholar and savant who presented at the Opera-Comique in 1830 with F. Halevyl. In 1835 through 1839 Ruolz PAPER MONEY • January/February 2003 • Whole No. 223 65 composed operas, cantatas, and melodies. Apparently, he was not all that suc- cessful as a composer as his brief career, prompted by a reversal of fortune, led him to study in the field of chemistry. It is in the field of chemistry that Ruolz became famous. Ruolz discovered in 1841, the process for gilding and silver plating metals by the action of "pile voltaique." He gave his name, "Procedure Ruolz" to these processes by which he could with great ease apply silver or gold to an object by first dissolving silver or gold into cyanide of potassium. In 1855 while serving in the French Artillery, he discovered how to make steel and how to transform phosphorous metals. French inventor, Henri-Catherine, Count of Ruolz, Montchal, composer and chemist, obtained as many as 17 patents in addition to his basic one of 1841 and one of these additions, the 12th, relates to the nickel-plating of copper, brass, bronze and iron, using a nickel-chloride solution. Montchal Ruolz had studied electrolytic gilding and, on finding that process satisfactory, he general- ized it by applying it to the electro-deposition of other metals, such as silver, platinum,... 1 Before long an unbelievably large number of trade names (some of which were the registered trademarks of the makers) had been coined for this alloy; these are set out in the table below. Actually it was not until the present century that these copper-nickel-zinc alloys came to be know as nickel-silver, but that designation has been included in this list for the sake of completeness. "A (partial) list of trade names for Nickel Silver follows: " ,Nickel orei- de, ......, `Ruolz's alloy, ....., White metal, .... 2 A French Patent: 10,472, 1841- for what is referred to as "Ruolz's alloy" was granted in 1841. 3 What is known as "Neusilber" (German Silver) is referred to by many des- ignations including "Ruolz's Alloy. 4 Ruolz is defined in a glossary as "A gilded or silvered metal named after the inventor of the process who was a French chemist." The Frenchman Ruolz perfected the Galvanic Process in 1839. 6 An abandoned process by the end XVII and early XVIII century for metal plating consisted in the placement of gold or money leaf on a support that was a plate of copper. Then this metal plate disappears and is replaced by the gal- vanoplastie. It is a process that consists in depositing the metal on a support and employs the use of electrolysis. The process was discovered in 1840 by Ruolz." 7 In still another source, the history of plating deals with Ruolz, "In 1842 Ruolz succeeded in depositing metallic alloys from solutions of mixed salts." 8 "Instructions on electrotype copies of Daguerreotype pictures and Magneto electric and Galvanic gilding and silvering was according to the processes of Elkington [sic], Roulz [sic], and Fitzeau." 9 According to Patent Materials: "In 1843, Bunsen, a German invented a new electric battery, and two years afterward (1845), Elkampton [sic] and Ruolz dis- covered electro-metallurgy. " Most compelling is a German website "Schmucklerikon" (jewelry dictio- nary): "Argent Ruolz / Argent Francais 37% kuper, 25% nickel, 33% silber," (Dictionary definition of argent - Archaic silver; figuratively, whiteness, silvery; white; shining.) 11 Apparently, no recognition from "Schmucklerikon" was given the name Koulz when defining "Ruolz's Alloy," which is not too dissimilar to the 41% copper, 33% nickel, and 26% silver, as suggested in H. E. Moring's publication. Recall also that coin # 44 (Judd 716 / Pollock 795) in United States Pattern Postage Currency Coins tested by electron microscopic analysis contained: 27.4% copper, 42.1 % nickel, and 30.4% silver. Other "Koulz's Alloy coins have vary- ing proportions of copper, nickel and silver. The actual coin design specified only "SIL., NIC., COP." No attempt to quantify the relative amounts of the metals was offered on the pattern coins. . L order of the NY. !A. j . WA DS WO:ITT!. Secretary. ('Times copy and eb. 17.0 ,antrar.1 POSTAGE CUB.,RENCY. I: CD ."L7 . PIT.,71;30118 HLIT.t.T.11Y 750- i. TTITIL'D not to ineleee meney to Ite throngh the Peat•or.:ce nor in any ether war. for Postage Currency. My pre-tent enpoly i3 about ult. havezed. The labor of opening theee lettere and re- Vorninr, them f ry great. I bare not the Currency to nr.,,,nly the one-hundredth part of the demand. It r.Nocu T. CAI/SON, Deponitary, WOULD AGAIN CALL Tar etteatfen of our renders to the ten,. Shee 66 January/February 2003 • Whole No. 223 • PAPER MONEY Another possibility regarding Suggestions to Congress of the Finances of the United States submitted to the Chamber of Commerce of New York, by H. E. Moring, in 1869, New York chemist Krackowizer may have either descended from a person who lived in Krackow, Poland, or may be someone pulling our leg, perhaps a "Wizekracker." We have an overwhelming amount of information published on a scientist, inventor, chemist, with a specialization in metallurgy by the name of Montchal Ruolz. And, if one discounts the first mention of Koulz's Alloy, Suggestions to Congress of the Finances of the United States 1869 and subsequent mention of Koulz's Alloy, which undoubtedly stem from the first mention, we must con- clude that the name Koulz was substituted for the name Ruolz. Later mention of "Koulz's Alloy" can be found in United States Pattern Trial, and Experimental Pieces (1913 and 1940) by Adams and Woodin, United States Pattern, Experimental and Trial Pieces (1959, 1965, 1970, 1974, 1977, and 1982) by J. Hewitt Judd, M.D., Scott's Comprehensive Catalogue and Encyclopedia of U. S. Coins (1971) by Don Taxay, and United States Patterns and Related Issues (1994) by Andrew W. Pollock III, and possibly others. We have no other information on Koulz, not even a first name. Ruolz rules for me. Thanks to my research staff Andreas BOhm, Wolfgang B6hm, Gunther Gonder, Alan Meghrig and Claire Shull. Footnotes: Nickel an Historical Review by F. B. Howard-White (1963), page 107. 2 Ibid, page 273 3 Ibid, page 285; Ruolz, Montchal, H.-C. de. Comptes Rend. (1841) pages 13, 998-1021. 4 250 Jahre Nickel, Nickel als Mlinzmetal (250 Years Nickel, Nickel as Coin Metal) by Eberhard Auer, Siegfried Muller, and Rainer Slotta, page 42. 5 "Treasures-in-Time" a glossary of jewelry terms is available on the Internet. 6 "A Technical Dictionary of Printmaking," Andre Begun, found on the Internet, www.polymetaal.nl 7 (No title) found on the Internet, www.antiquaires-contact.com 8 (No title) found on the Internet, www.nbplating.condearly 9 "The Daguerreian Society" found on the Internet at www.daguerre.org 10 "Patent Office Reform," Scientific American, vol 62 new series (Jan 1890 — Jun 1890), Feb 8, 1890, page 83. 11 "Schmucklerikon" (jewelry dictionary) found on the Internet, www.beyars.com Gleanings from My Fractional Currency Archive - 3 By Fred Reed D ESPONDING TO THE POSTAGE CURRENCY RIOT 1\.in Cincinnati, an exasperated U.S. paymaster, Depository Enoch T. Carson, complained bitterly that he had not one per- cent of the demand for the small notes at hand. Two days after the riot he placed this small notice in the Cincinnati Daily Enquirer: POSTAGE CURRENCY NOTICE "Persons are hereby notified not to inclose money to me through the Post-office nor in any other way, for Postage Currency. My present supply is about exhausted. The labor of opening these let- ters and returning them is very great. I have not the Currency to supply the one-hundredth part of the demand." Carson's plight and that of the citizens of the Queen City did not get much better soon.after, 'although soldiers dispatched for the purpose suppressed any further violence. PAPER MONEY • January/February 2003 • Whole No. 223 67 Congratulations to Fred Reed, the SPMC, and the FCCB for compiling this Special Issue devoted to Fractional Currency!! Tom O'Mara Collector - United States Fractional & Postage Currency Want to discuss Fractionals....Open to discussion TFXILOM@aol.corn 68 January/February 2003 • Whole No. 223 • PAPER MONEY The First U.S. Government Currency Engraving Error By Jerry Fochtman Full view of 2nd Issue 250 Fractional Currency note showing the S-18-63 corner surcharges. p RIOR TO 1863, ALL PRINTING OF U.S. CURRENCY WAS done by outside contractors. Spencer M. Clark, who was a Civil Service Engineer and been appointed to the position of Chief Clerk on the National Currency Bureau (the predecessor of the Bureau of Engraving & Printing), felt that the price paid to the security printing companies to produce U.S. currency was excessive. So Clark developed a plan for the National Currency Bureau to produce U.S. currency at a lower cost than the government was paying outside firms. Secretary of the Treasury, Salmon P. Chase accepted the proposal and authorized Clark to produce the new "Fractional Currency" that had recently been authorized by Congress. This would become the second issue of what is known as "Postage & Fractional Currency". The Second Issue of Fractional Currency was produced from October 1863 to February 1867. During that time many developments occurred which had a profound impact on our modern day currency. Furthermore, counterfeit- ing was widespread and Clark felt he could reduce this by incorporating tech- niques into the currency making it more difficult to copy. As such, many "firsts" occurred during this time, including things such as the development of special paper used exclusively for U.S. Government obligations; incorporating an iden- tifying fiber in currency paper; and the use of intaglio engraved plates for the printing of currency along with the use of bronze surcharges to prevent photo- copying. However, there were other "firsts" that occurred which were not intentional. This includes the first National Currency Bureau printing errors that reached general circula- tion. Printing errors occurred when a sheet of notes was fed into the press incorrectly or printed with the wrong engraved image on one side. Although rare, there are several examples of notes where the sheet was printed incorrectly resulting in the reverse engraving or surcharge values being inverted. There are PAPER MONEY • January/February 2003 • Whole No. 223 69 also rare examples where the surcharge value on the reverse does not match the engraved value on the face of the note. There is even one known note where the face value, reverse engraved value and the reverse surcharge value are all different (i.e., a triple denomination note!!!). Although these various printing errors have been observed in most all denominations of the Second Issue Fractional notes, only one specific note has the honor of containing the first "engraving error" by the National Currency Bureau to reach general circulation. That dis- tinction belongs to the Second Issue, 25c note with the S-18-63 sur- charge on the reverse (FR-1286). The letter "S" on a surcharge plate was engraved incorrectly, resulting in an Inverted "S": Having been fortunate to acquire a 25c Regular Issue Inverted "S" for my collection, I was interested in learning just how many exam- ples still existed and possibly who owned these notes. In talking with various collectors and dealers, the estimated number of regular issue Inverted "S" notes ranged from a low of 7 upwards to 18 notes. Furthermore, there have been a large number of auctions in the last several years that have included Inverted "S" notes. It became obvious that some of the same notes were being placed up for sale in different auctions. Furthermore, many prior auction cat- alogs mentioned the existence of other copies. Given this high rate of turnover and the catalog references to 1, 2 or up to 4 other examples of this note at different points in time it became difficult to determine just how many examples existed. In order to develop an accurate census of this variety, it would be necessary to trace each note through all its transfers of ownership and develop a pedigree of the note based upon its initial identification as an Inverted "S" variety. Only then would I be able to determine that a specific note was not counted more than once in the census. After many months of research into auction catalogs, locating and talking with current and former collectors, along with close compar- isons of pictures and scanned images of notes, I've succeeded in locat- ing and identifying 14 individual notes with an Inverted "S" surcharge. Of these, 9 were discovered in the last 20 years with 5 in the last 4 years alone. The foremost reference on postage and fractional currency is Milton Friedberg's book entitled "The Encyclopedia of United States Postage & Fractional Currency". This variety is cataloged as Milt 2R25.3g. Milton Friedberg also established a Rarity Guide for postage & fractional currency, which ranges from R1 (fairly common with > 1,250 examples) to R8 (2-3 examples), to RU (unique). Applying this guide to my research, the current rarity level for this variety is R6, with 13 to 30 known examples. As more collectors become aware of this engraving error and examine their holdings other examples may surface. The value of the variety may grow as well simply because of growing interest by error note collec- tors wishing to have an example of the first U.S. Government engraving error in their collection. At a recent sale an EF example of this variety was sold for $300, with a copy tied for finest known bringing just over $3,000 at auction. Clearly a sleeper when compared to the sale of other notes with engraving errors. In addition to the regular issue notes released for circulation, the National Currency Bureau conducted experiments with various inks and papers along with the development of various counterfeiting measures. In doing so, the same engraved plates were used in producing these experimental notes, many of which still exist today as cancelled notes. As such, this same engraving error has been Top: Regular Issue with correctly positioned "S" Surcharge. Note posi- tion of the lower loop of the "S". Middle: A clear Inverted "5". Note position of the lower loop of the //SI/ . Bottom: A Blurred Inverted "S". tered for compo it i011. The special corresp. Mott rd tht New York rib, P3 says tt )Isar.. Steinways' ethbosernent by the Jurors is ent- phatt e, rant ,dreed. r and Tunic in the faint than that of any Etetapott nether." MAGIC POCKET BOOKS, with elastic band. for the new Pont's, Currency. made and .old wholerale and retail by it, NOW & HA P1:041D. Pathfinder