Paper Money - Vol. XLV, No. 6 - Whole No. 246 - November - December 2006

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VOL. XLV, No. 6, WHOLE No. 246 WWW.SPMC.ORG NOVEMBER/DECEMBER 2006 NISPV-5741ilfainIFAMMIMINCW AKA Emergency scri of Dustbow by Dr. Loren Gatch Tido Corfilleate Good Offly le Sopolpn, Okla. N? 848 A •< PAPTICIPA' G ERTIFICATE $1 ON LAR rec tired by pa r Chamber Comex., a ed nail!: r ei;tstt when collection leas been oode an au, 0 0 so ttl n-Vott4:14:9011000C1001100114114):awansossa.otoot.-v.b.11-.a PREMIUM QUALITY BANKNOTES for IMMEDIATE SALE NI 1 LI/ STITIESOFAMEKICA. .'1114q.u• Smythe offers a large selection of choice banknotes for immediate sale. If you are looking for Federal Paper Money, World Bank Notes, Confederate Currency, or Colonial and Obsolete Bank Notes, please be sure to contact us. You'll be glad that you did. To View Our HUGE Inventory of Certified and Uncertified Small Size, Large Size, Nationals, Obsoletes, Fractional, and more, log on to: SMYTHEONLINE.COM For More Information, or Our Latest Buy Prices, please contact Scott Lindquist or Bruce Smart at: 800-622-1880 Steve Goldsmith Scott Lindquist Bruce Smart .00000055A 4aiee MAtAr):0101010EARGIONIAG10101OVA0191X1049131011 fril GEORGIA. 1776. 1,10.74,7rtt -,-"R cr RTI TICATC ..1. t.i. Bo...4 S :PAN 1.11 A Iii. L 1)1 D01 .I A., the vONE . Rdolumn of I ■ f 1.. .4 Ai., II..\„:".„. ,,... 1 ,4'.,,,, a. 1000 „NATIrin''4 AN" Or LIC.I.k +111315 AL. T. It esION by • ,CoLe. avr.yrxsi N. • OLD Dam/ Nat.. Ja Pound, ESTAALIStif, 1880 Stephen Goldsmith Past President R.M. Smythe & Co. 2 Rector Street, 12th Floor, New York, NY 10006-1844 TEL: 212-943-1880 Ton FREE: 800-622-1880 FAX: 212-312-6370 EMAIL: info@smytheonline.com WEBSITE: smytheonline.com We buy, sell, and auction the very best in Paper Money, Antique Stocks and Bonds, Autographs, Coins, and Anything Relating to Financial History TERMS AND CONDITIONS PAPER MONEY is published every other month begin- ning in January by the Society of Paper Morley Collectors (SPMC). Second-class postage is paid at Dover, DE 19901. Postmaster send address changes to Secretary Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515-2331 © Society of Paper Money Collectors, Inc.. 2006. All rights reserved. Reproduction of any article, in whole or part, without written permission, is prohibited. Individual copies of this issue of PAPER MONEY are available from the Secretary for S6 postpaid. Send changes of address, inquiries concerning non-delivery, and requests for additional copies of this issue to the Secretary. MANUSCRIPTS Manuscripts not under consideration elsewhere and publications for review should be sent to the Editor. Accepted manuscripts will be published as soon as possible; however. publication in a specific issue can- not be guaranteed. Include an SASE for acknowledg- ment, 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 authorls name, address and telephone number should appear on the first page. Authors should retain a copy for their records. Authors are encouraged to submit a copy on a MAC CD, identified with the name and ver- sion of software used. A double-spaced printout must accompany the CD. Authors may also transmit articles via e-mail to the Editor at the SPMC web site (fred@spmc.org ). Original illustrations are preferred but do not send items of value requiring Certified, Insured or Registered Mail. Write or e-mail ahead for special instructions. Scans should be grayscale or color at 300 dpi. Jpegs are preferred. ADVERTISING • All advertising accepted on space available basis •Copy/correspondence should be sent to Editor •All advertising is payable in advance • Ads are accepted on a "Good Faith" basis •Terms are "Until Forbid - •Ads are Run of Press (ROP) unless accepted on premium contract basis • Limited premium space available, please inquire To keep rates at a minimum, all advertising must be prepaid according to the schedule below. In exceptional cases where special artwork or additional production is required, the advertiser will be notified and billed accordingly. Rates are not commissionable; proofs are not supplied. Advertising Deadline: Subject to space availability copy must be received by the Editor no later than the first day of the month preceding the cover date of the issue (for example, Feb. 1 for the March/April issue). Camera-ready copy. or electronic ads in pdf format, or in Quark Express on a MAC CD with fonts supplied are acceptable. ADVERTISING RATES Space 1 time 3 times 6 times Outside back cover S1500 52600 S4900 Inside covers 500 1400 2500 Full page Color 500 1500 3000 Full page B&W 360 1000 1800 Half page B&W 180 500 900 Quarter page B&W 90 250 450 Eighth page B&W 45 125 225 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 guaranteed. All screens should be 150 line or 300 dpi. Advertising copy shall be restricted to paper currency. allied numismatic material, publications. and related accessories. The SPMC does not guarantee advertise- ments, but accepts copy in good faith, reserving the right to reject objectionable material or edit copy. SPMC assumes no financial responsibility for typo- graphical errors in ads, but agrees to reprint that por- tion of an ad in which a typographical error occurs upon prompt notification. Paper Money • November/December 2006 • Whole No. 246 401 Paper Money Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XLV, No. 6 Whole No. 246 NOV/DEC 2006 ISSN 0031-1162 FRED L. REED III. Editor, P.O. Box 793941, Dallas, TX 75379 Visit the SPMC web site:www.spmc.org FEATURES Collecting Confederate Currency Began Early 403 By Brent Hughes Currency and the Caduceus 412 By James G. Gamble, MD, PhD Oklahoma!s Emergency Currency of March 1933 419 By Loren Gatch. PhD Nellie T. Peck, National Bank President 434 By Karl Sandford Kabelac About Nationals Mostly: John J. Rowe -- National Bank President 437 By Frank Clark Architects elevation shows Eagle Bank face 437 By Richard Hegel The Buck Starts Here: Grapes and Wine on Notes 438 By Gene Hessler You may not know his name, yet, but Will Fleishell created money 440 By Jamie L. Freedman Interest Bearing Notes: Norton I, Emperor of the United States 442 By Dave Bowers Good for a chuckle: comic fractionals fit the bill 444 By Alan Bleviss On This Date in Paper Money History 447, 449 By Fred Reed wheresgeorge? followup 448 By Fred Reed Nationals were safe, Treasurer said so 453 By James C. Ehrhardt Notes from up North: Three "Guianas" offer unique opportunities 456 By Harold Don Allen, PhD Part 7: More Additions to "A Catalog of SPMC Memorabilia" 464 By Fred Reed King of the Confederate Counterfeiters 466 By Priscilla Rhoades Is this the ultimate courtesy autograph? 472 By Norman G. Peters SOCIETY NEWS Information & Officers 402 A letter for SPMC membership 435 Paper Money and SPMC authors clean up at ANA 446 New references target U.S., Confederate, Texas issues 450 Presidents Column 458 By Benny Bolin 3rd annual SPMC authors forum draws scribes, crowd 460 7th Annual George W. Wait Memorial Prize 474 SOCIFIN oF PAPER M( .)NEV C'OLLECTORS (7 --- BUYING AND SELLING CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items Auction Representation 60-Page Catalog for $5.00 Refundable with Order HUGH SHULL ANA-LM SPMC LM 6 SCNA P.O. Box 2522, Lexington, SC 29071 BRNA PCDA CHARTER MBR PH: (803) 996-3660 FAX: (803) 996-4885 FUN 402 November/December • Whole No. 246 • Paper Money Society of Paper Money Collectors The Society of Paper Money Collectors (SPMC) was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affili- ated 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 membership; other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or guardian. Junior membership numbers will be preced- ed 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 eligi- ble 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 add $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 membership 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 as available. Members who join after October 1 will have their dues 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 a fall issue of Paper Money. Checks should be sent to the Society Secretary. _ OFFICERS ELECTED OFFICERS: PRESIDENT Benny Bolin, 5510 Bolin Rd., Allen, TX 75002 VICE-PRESIDENT Mark Anderson, 115 Congress St., Brooklyn, NY 11201 SECRETARY Bob Schreiner, POB 2331, Chapel Hill, NC 27515 TREASURER Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark Anderson, 115 Congress St., Brooklyn, NY 11201 Benny J. Bolin, 5510 Bolin Rd., Allen, TX 75002 Bob Cochran, P.O. Box 1085, Florissant, MO 63031 Wes Duran, P.O. Box 91, Twin Lakes, CO 81251-0091 Gene Hessler, P.O. Box 31144, Cincinnati, OH 45231 Robert J. Kravitz. P.O. Box 6099, Chesterfield, MO 63006 Tom Minerley, 25 Holland Ave #001, Albany, NY 12209-1735 Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Fred L. Reed HI, P.O. Box 793941, Dallas, TX 75379-3941 Robert Schreiner, P.O. Box 2331, Chapel Hill, NC 27515 Wendell A. Wolka, P.O. Box 1211. Greenwood, IN 46142 Jamie Yakes, P.O. Box 1203, Jackson, NJ 08527 APPOINTEES: PUBLISHER-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 Wendell A. Wolka, P.O. Box 1211, Greenwood. IN 46142 LEGAL COUNSEL Robert J. Galiette, 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 Ron Horstman, 5010 Timber Ln., Gerald, MO 63037 WISMER BOOK PROJECT COORDINATOR Bob Cochran, P.O. Box 1085, Florissant, MO 63031 REGIONAL MEETING COORDINATOR Judith Murphy, P.O. Box 24056, Winston-Salem, NC 27114 Paper Money • November/December 2006 • Whole No. 246 403 Collecting Confederate Currency Began Early By Brent Hughes B SING CURIOUS ABOUT THE EARLIEST COLLECTORS OFConfederate currency, I began accumulating printed references manyyears ago. I found that it all began shortly after the Civil War ended.There was certainly no shortage of notes because bankers and mer- chants had suddenly been left with boxes and barrels filled with worthless cur- rency. I know of one barrel half full of Confederate notes which survived until 1960 when a lucky collector happened to discover it in an old grocery store building in Petersburg, VA. Because the barrel was relatively light, the store owners over the years had assumed the barrel was empty and it had sat there for almost a century. There is little doubt that millions of notes were burned or thrown out as trash, but millions of others survived. The supply was so large, in fact, that when one of the first dealers, John W. Haseltine of Philadelphia, issued his catalog and pricelist in 1876, he offered a set of the 1864 issue, nine notes ranging from 50e to $500, for only sixty cents. The condition of the notes was described as "clean anti perfect and in most cases Uncirculated." That same set wass being offered in recent years by prominent paper money dealer Hugh Shull for $725. Collectors who want the same notes, hand picked in nice Crisp Uncirculated condition, can have them for $1,250. These prices are from Mr. Shull's First Edition 2000 catalog. There is no doubt that the prices have continued to escalate. Thinking back to 1865 and 1866, we can guess that many people set aside a few notes to keep as souvenirs of the great war, but since they were not seri- ous collectors, they soon lost interest in the bills and gave them to their chil- dren to "play store." I can remember seeing cigar boxes full of Confederate notes in South Carolina as late as 1940. They were all $10 and $20 notes of the final issue, but even they have become valuable in recent years. Editor's note: When the author, a charter member of SPMC, passed away a number of his articles on hand were permitted to be published posthumously in his honor by special arrangement with his widow and son. CATALOGUE OF AMERICAN COINS, MEDALS, &c., Selected from the Cabinets of MESSRS. BACH, BERTSCH, COLBURN, EMERY, FINOTTI, I LSLEY, LEVICK, LI L LIEN DA H L, LIGHTBODY, MCCOY, SEM- PLE, SH URTLEFF, and other collections, purchased at various times by W. ELLIOT WOODWARD, OF ROXBURY, MASS. ALSO, A few fine Foreign Coins and Medals, TO IlE SOLD AT AUCTION, IN NEW YORK CITY, On Tuesday, Dec. 1911e, 18135, and following clays, at the Book Trade-Sale Rooms of IS. CooLEY, 498 Broadway. GEORGE A. LEAVITT, AUCTIONEER. 109 .4/./J— 2670 $1,000 Note of the Confederate States of America; genuine, very fine and rare. 2,577 2671 $500 Note, Confederate States ; genuine, fine, scarce. Sn 2672 $50 Note, Confederate States ; genuine, fine, scarce. Lp 2673 $20 Note, Confederate States; genuine, fine. 2674 $10 Note, Confederate States ; genuine, fine. 2675 $5 Note, Confederate States ; genuine, fine. IS 5. There was some interest in Confederate money shortly after the Civil War ended as evidenced by this auction catalog of December 19, 1865. Lot 2670, the Type 1 Montgomery Note in Very Fine con- dition sold for $4.75. Today it would probably bring $20,000 or more. Lot 2671, probably the Type 2 Montgomery Note, sold for $2.50. Today it would probably bring $18,000 and up. November/December • Whole No. 246 • Paper Money We should digress at this point to explain that when Richmond, VA, the Confederate capital, was evacuated in April of 1865, most of the government's documents were necessarily left behind. In the ensuing chaos, drunken mobs set fires which destroyed much of the city. A few days later, when President Lincoln was assassinated, Union officials suspected that Jefferson Davis and his close associates had been a part of the conspiracy. Convinced that evidence to sup- port their belief might be found in the rebel archives at Richmond, they ordered the mili- tary commander there to seize and ship to Washington all docu- ments that his troops could find. Evidently most of the records had been stored in the cellars of brick buildings where they escaped the flames. In any event we know that on July 21, 1865, a train hauling 490 boxes and barrels of documents, includ- ing millions of Confederate notes, left Richmond bound for Washington, D. C. For two years, government employees searched for incrimi- nating evidence, but found none. Disappointed Union officials called off the search, and the mass of paper was considered worthless. They would soon become a nuisance for govern- ment departments to store, so employees who wished to do so were allowed to take home what- ever they wished. Many workers were fascinated by the rebel cur- rency and the notes moved out in good quantity for many years. It appears that some employees turned this activity into a business and began to sup- ply scarce notes to the growing body of collectors. Thus the serious hobby of collecting Confederate money was born. We will never know all that went on in -Washington at that time because the employees kept it quiet. Collectors submitted want-lists just as they do now and their needs were supplied from government file cabinets. Every one involved was understandably quite happy. There were also a few historians who were trying to assemble all the vari- eties of Confederate currency. I have records of a Dr. Thomas Addis Emmett of New York City who as early as 1866 already had a large collection. Professor Charles E. Anthon of the College of the City of New York was literary editor of the prestigious American Journal of Numismatics at that time. He arranged to examine the Emmett collection and wrote several articles about it which appeared in his magazine in May, July and August of 1867. 404 Paper Money • November/December 2006 • Whole No. 246 405 This pioneer effort was incomplete, but it created some interest until Dr. William Lee of Washington, D.C. wrote a history of Confederate currency in 1875. Privately printed, the book did not circulate widely, and is very difficult to find today. Meanwhile, an industrious government employee named Raphael Thian was hard at work on a detailed examination of the rebel currency. Thian had emigated from his native France and on November 13, 1850, enlisted in the U. S. Army. Somehow he came to the attention of General-in-Chief Winfield Scott who persuaded him to resign from the army and join his civilian staff. When Scott retired on November 1, 1861, Thian moved to the Adjutant General's Office where he advanced to become Chief Clerk on July 1, 1871. Apparently well-liked by his superiors, he would serve until 1911, a total of sixty-one years in the federal service. , ' 04 11• -4.15/..t.; It • • NO9 -, E, A ..... '--.' 10 •\ ALBUM l*-, FOR A COMPLETE COLLECTION (WITH DESCRIPTIVE LETTER-PRESS) Of the various Designs for Face and Back selected by the Confederate Treasury Authorities for the Currency of the Confederate States of America. •a . 1861.-1865. 44 ' •• e' A•c,.., Thian's interest in Confederate currency may have begun when he was asked to assemble a number of scrapbooks full of Confederate notes which the Secretary of War wanted to present to retiring generals. Among the recipients of the scrapbooks was General Sherman, who had destroyed the Confederacy's Treasury Note Bureau in Columbia, S.C. during his famous march through Georgia and beyond. Thian soon became obsessed with his research into Confederate finance and would spend the next 20 years in the project. Fortunately for today's schol- ars, Thian made up six scrapbooks for his own use. These books, four contain- ing notes and two with bonds, exist today at the Duke University Library in North Carolina. The Library purchased the books from Thian's son in 1944. Thian's legacy for modern collectors is his Register of the Confederate Debt which became available in reprint form in 1972. The book is of great value to advanced collectors interested in the signers and serial numbers of the various notes. In 1876 Thian copyrighted what he described as his Confederate Note Album for a complete collection of the various Designs for Face and Back selected by the Confederate Treasury Authorities for the Currency of the Confederate States of America, 1861-1865. The title page of the Raphael P. Thian album. Text is "Confederate Note Album for a Complete Collection (with Descriptive Letter-Press) of the various Designs for Face and Back selected by the Confederate Treasury Authorities for the Currency of the Confederate States of America, 1861- 1865." 406 November/December • Whole No. 246 • Paper Money in his preface, Thian said that the album was a result of his "desire to afford collectors of Confederate currency a tasteful repository for their Notes, and at the same time furnish them an accurate and exhaustive description of the varieties comprising a full set." A page from the Raphael Thian album showing the ornate printed frame around the CSA Type 1 $1000 "Montgomery Note." The notes were usually held in place with paste, but in some cases sewing thread was used to form vertical loops to loosely secure them. His descriptions of the individual design types were exhaustive alright. His emphasis on detail can be seen in his description of note number one, the $1000 "Montgomery Note": No.l. $1,000, Montgomery, (written date) 1861. Engraved by the National Bank Note Company of New York and printed on fine bank note paper, in black and green, with plain back. In the right lower cor- ner of the note appears a medallion likeness of Andrew Jackson, while directly opposite is found a corresponding medallion of John C. Calhoun, both of the ovals ornamented at the base and sides by an ele- gant tracery of scroll work. Each of the upper corners contain a very large circular die the one to the right bearing the number "1000", that to the left, the number "M" composed of twelve small elliptical dies grouped together, on each of which appears the words "One Thousand" encircling the number "1000." The central part of the note, above a narrow rectangular space left blank for the signatures, is divided by airy bands and columns of fine lines into forty-five squares - - five in height and nine in length -- the angles of adjacent squares bearing the number "M." From these numerals a narrow band arches upwards and is inscribed "One Thousand." The centre (sic) of each square, a dark ground formed by converging lines, bears the number "1000," while immediately beneath, two narrow bands looped up below the background of the number, are inscribed -- the one to the left, with the numeral "NI", and that to the right, with the number "1000." This central part, a slight border surrounding the note on three sides, and a narrow band at the lower edge, inscribed: "Receivable in payment of all dues except export duties," are printed in green. This note is payable twelve months after date, bears interest ALBUM FO R .. _DERATE CURRENC -,, Y Containing numbered Spaces for the insertion of a Specimen, of each TYPE of the Notes, issued by authority of the Confeatvatz grovtrn.ment, TOG 1,1.2. VT= 1 Iritecr3m7n -p,Try cotes LEO AND AB.B.L.NGED C_ 7E-1_ r3ECr3TEI., NEW TORS. 1877. Paper Money • November/December 2006 • Whole No. 246 407 at ten cents per day, has its number printed in blue, and is signed, in person, by the Register and the Treasurer of the Confederate States Messrs. Alex. B. Clitherall and E. C. Elmore. The pages of descriptions were followed by pages bearing ornate printed frames and numbers matching those assigned to the descriptions. Unfortunately there was no Mylar or other safe material in which the notes could be housed on the pages so the collector had nvo choices. He could either paste the notes to the pages or use sewing thread to form loops to hold the notes in each frame. I have seen both methods used. I once took on the task of removing notes from a Thian album. The paste dissolved easily in warm water and I was able to remove most of the residue from the backs of the notes. The sewing thread never pierced the notes but was placed so closely to the edges that they cut into the notes slightly. Such cuts are easily repaired and cause no great harm to the value of the notes. It would be interesting to know if the Thian albums were made at the Government Printing Office or if he had a private printer. Since such albums were needed to be used as retirement gifts for government officials or military officers, someone in the War Department may have quietly had the albums produced at the government facility. As I recall, the albums were rather plain and utilitarian, but that does not tell us where they were made. During the same year in which Thian introduced his album (1876), John Haseltine produced a price list offering Confederate notes for sale. It is inter- esting that collectors and dealers already knew which notes were rare, scarce or common. Haseltine called the $500 Montgomery Note (CSA Type 2) "exceed- ingly rare" which it certainly is. He also stated that "Uncirculated and even rare clean notes of the first issues are not very plenty." That's still true today. There were obviously several dealers in Confederate currency at the time who were engaging in what Haseltine felt were questionable practices. He said, "I simply wish to state to my friends, and in justice to myself, that in several of The title page of the Bechtel album. Text is "Album for Confederate Currency, containing numbered Spaces for the insertion of a Specimen of each TYPE of the Notes, issued by authority of the Confederate Government, together with a Descriptive Index. Compiled and arranged by C.H. Bechtel, New York, 1877." Ivr TitilkS• ......... /47,- REGISTER „„,,a1,6 14 ..Cii i /' 1' / 7 ////'' lli,74,...Ii ''d.' . : _.2 :-- -e.,:r,./({a/ /Ai - a: ie-` ia.i aaaa ); T1111' : . -._;:li.. !...( , -‘!1, 4L-- .' - , ..0-hea4491,/leac.,PtheeeiP-4/ /(iv(e'W%-----77—;--,--7,-- --- -- ,Ae7-ed•::2344*41 4: 6 A ---, A b. "7/7-?. 11163''/1.75tik-ilMellraa/l/ela/ki ,filiZESEE9-4 408 November/December • Whole No. 246 • Paper Money the published price lists some of the rarer notes have been mentioned at prices which I know it is impossible to furnish them at." In other words, he was accus- ing his competitors of engaging in what we call today the ''bait and switch game. " Collectors of 1876 now had an album in which to house their notes, and several dealers offering to sell them examples. Then, in 1877, a man named C. H. Bechtel of New York City introduced his Album for Confederate Currency, a richly-bound volume which could take its place on any fine library shelf. It con- tained an index of the various designs which he called "types," the same term we use today. Like Thian, he listed the types from the largest denomination down to the smallest, a practice still used today. Somehow, this arrangement seems backward to me as I would have listed them from the smallest upward. It is too late to change it now. Like the "QWTERTY" typewriter keyboard used today, we are stuck with it. Page 34 of the Bechtel album show- ing what is generally considered to be the rarest Confederate note, which is kown today as the "Indian Princess." Bechtel did not use the word "princess." His description was "$5. Richmond; Negroes loading cot- ton in lower left corner; Indian in upper right corner." The name "Indian Princess" was first used by William West Bradbeer in his book which was published in 1915. Bechtel's album had the same disadvantage that Thian's had. There was no easy way to mount the notes on the pages. Collectors used tiny dabs of paste or sewing thread and hoped for the best. Evidently Mr. Bechtel did not know about the Thian album because in his introduction he mentions the book by Dr. Lee and the catalog by Mr. Haseltine, but has nothing about Thian. Mr. Bechtel states that "another want has been made apparent, namely a book or album in which these mute reminders of our late unpleasantness can be preserved, classified and arranged for each reference." The "mute reminders" he referred to were of course the Confederate notes, but I also recall reading several contemporary diaries in which genteel ladies of the South also referred to the Civil War as "the late unpleasantness." Could it be that Mr. Bechtel was a Southern gentleman, who had moved to New York City seeking business opportunities? Bechtel's descriptions of the various notes were much shorter than Thian's. Of the CSA Type 1, he described it as "$1000. Montgomery; interest at ten cents per clay; head John C. Calhoun in lower left corner; head of Andrew Jackson in lower right corner; National Bank Note Co." '; Paper Money of the United States 0 fi 0. rtrt ATtbUT L. and Ira S. Friedberg BASED ON THE ORIGINAL WORK CT ROBERT FRIEDBERG :414 FROM COLONIAL TIMES TO THE PRESENT THE STANDARD REFERENCE WORK ON PAPER MONEY A COMPLETE ILLUSTRATED GUIDE WITH VALUATIONS • Large size notes • Fractional currency • Small size -notes • Encased postage stamps • Colonial and Continental currency • Confederate States notes Paper Money • November/December 2006 • Whole No. 246 409 In the hottest paper money market ever . . . The new and expanded 18th edition of the classic reference work Paper Money of the United States Arthur L. and Ira S. 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Call and place your order now. THE COIN & CURRENCY INSTITUTE, INC. P.O. Box 1057, Clifton, NJ 07014 Tel. (973) 471-1441 • Fax (973) 471-1062 Email: info@PaperMoneyoftheUS.com No. of books: @ $42.50 New Jersey residents: 7% sales tax Shipping & handling (per order) GRAND TOTAL q Check or money order q Discover q VISA q MasterCard q American Express Card No. Exp. date Signature Name Address City Phone AN, Please rush me the 18th (2006 -2007) edition of Paper Money of the United States at $42.50 each. $4.75 St ZIP Puteu LIST or CONFEDERATE NOTES AND BONDS. •10111‘ We HASISIIVINA. 1225 CHESTNUT STREET, PHILADELPHIA, PA. LOT Na.. 1. 1000 dollars, Montgomery National Bank Note Co. (very rare) 1. Sao do. do. (exceedingly rare).. 6 A. e. I00 411 do. do. (very rare) 4. 100 " Richmond, Southern Bank Note Co. (very rare) 6. 60 " Montgomery, National Bank Note Co. (very. fare) 0. 60 .' Richmond, Southern Bank Rote Co. (very rare) ,Telly 25, 1861.--- White faces and backs. T. 100 del are. Two female figures in centre, to. (rare) S. to " Reed q/ WashInglen In centre, go. (rare) 40 0. 20 Ship under full earl In centre, to. (rare) .60 II. to a Female riding a deer in centre, arc. (exceedingly rare) 11. 10 " Female leaning on a shield, on which fel a Confederate flag, itc. (rely, rare) IS. 8 Female leaning on a shield, on which is the ague 6, as (very rare).. IS. 5 4, "Fitz: 5 ,351c.. (very.5ieftenrda,maiContederate states of America" in blue, on1, September 2, 1861.--:Plain white backs. 14. 100 dollars, Man loading a wagon with bales‘ot cotton In centre, to .46 16. so " Seated figure with money cheats In centre, to .le 18. no Train 41 cars In centre, 5,o Southern Bank Note Co. (very rare) Iv. 60 " Read ofJefferson Davis In centre, to. (scarce) lif 21. 20 Head of Alexander H. Steven, In lower left corner, to . Ate 22. 00 Head of Alexander H. Stevens In centre, "Twenty" and "XX" tn green, Sc. (rare) 24. 20 Three female figures In centre, "20" and scroll ingreen, to. (very rim) ea. 20 Snip under full earl In centre, Sc .111 29. 20 Kneeling female figure ; globe and ship In centre, de, Southern Rank Note Co. (very rare) 60. 10 Negro picking cotton In centre, to .86 II. 10 Camp acenh of General Marton Is centre, to .so U. 10 Read of R. M. T.Llunter in lower left corner, SC.— .su U. 10 Group of Indians In centre, Se., Southern Bank Note Co. (very rare) U. Is W5gon loaded with cotton bales. In centre. to. (very rare) U. In Two (filmier; with an urn In upper left cornet, IC .02 LIST OF CONFEDERATE TREASURY NOTES. 1861.— Written . Dates. PRIOR .66 American Numismatic As._=ocluliorl .0., Li re Meit-at, er EMMETT . 1E1 ARA .SON LM-58 i8" kolEMBER-SINCE 1999 410 November/December • Whole No. 246 • Paper Money Haseltine may have been the leading dealer in Confederate notes and bonds when he published his catalog and mail-order price list in 1876. His catalog listed 136 varieties of notes and 55 varieties of bonds. The four- page price list offered notes from five cents to 75 cents each; bonds at 50 cents to 75 cents each, depending on rarity. He also used a much sim- pler and more dignified printed frame on the pages reserved for the notes, and he achieved a cer- tain degree of security for the album owner in the classic design of the spine of his album. On a library shelf, his album looked like a typical fine book of that era. A burglar searching for valuables would not have been likely to scan several hundred book titles in a home library. So far as I can determine, these two albums satisfied the demand from collectors many of whom used individual white envelopes to preserve their notes. With a plentiful supply of notes available, most collectors of that era searched for scarce varieties rather than types. Bechtel estimated that there were more than 1,500 varieties, but that an album to house them would have been far too expen- sive to market. Finally, in 1915, William West Bradbeer published his famous book Confederate and Southern States Currency, which listed all the varieties known to him. These Bradbeer numbers would eventually be adopted by Grover Criswell in his series of guide books which began about 1957, and which have generally prevailed in cataloging notes down to today.. Today of course collectors have a wide variety of albums available to them, There are chemically inert holders which offer maximum protection for the precious notes. Condition seems to be the most important factor in today's marketplace, and we see enormous sums of money being spent by those who want only the finest specimens available. It is not likely that this desire for per- fection will end anytime soon. I still find it amazing that even today collectors can purchase a Confederate note in Gem Crisp Uncirculated condition, but that fact just makes the hobby that much more fascinating. Letter to the Editor Fred, this is just a suggestion for folks who buy Life Memberships. They can arrange to buy a plaque like this one. That way you have something to display. Emmett Haralson SPMC LM 356 .*Nti U..rAW-Eal K2586273* 44,.,444•14 4444I ev h', 4r, flrrati gt ///, ,113729> Ptflffs H11. iRI VL!, 1 ANIVIth • \ Mil \AIN /TES ctivity in the paper money market is stronger than ever! For example, several weeks ago we bought a nice group of "type" paper money. As quick as a wink, they were all gone. We have been cherrypicking certified notes for their eye appeal, brightness of colors, excellent margins, and overall appearance, with an emphasis on popular designs and types, many of which are featured in 100 Greatest American Currency Notes by Q. David Bowers and David Sundman (recently published by Whitman). We are constantly adding to inventory but most items are one-of-a-kind in our stock; therefore we suggest you visit our website and call immediately to make a purchase. If you prefer a printed version of our listings, simply send a request via fax to Melissa Karstedt at the number below. Place an order for any paper money totaling $1,000 or more and you will receive a personally autographed copy of 100 Greatest American Currency Notes with our compliments. CHECK OUT OUR OFFERING TODAY AND GIVE US A CALL. WANT LISTS ACCEPTED! "qk GET A FREE COPY OF 100 Greatest American Currency Notes WITH YOUR $1000 PURCHASE! AMERICAN NUMISIV ATIC RARITIES, Lik, P.O. Box 1804 • Wolleboro, NH 03894 • Th11-free: 866-811-1804 • 603-569-0823 Fax: 603-569-3875 • www.anrcoins.com • salesVanrcoins.com N G Members: RiChattl Kam Q. It Bowers Christine Karsteth ANA Life Members lb. Rich:1M Kam Q. David Bowers ehrittine Karstedt Abb.. KABICAll John bralievich, Jr. John M. Pati Fmk Van Video Paper Money • November/December 2006 • Whole No. 246 411 WISHED ONLY s;',,, ASSISTAKT AN D DESIGN/mill )1 DEFOSI1ARIEVt$: 8 Figure 1: 3rd issue Fractional with caduceus at lower left. 412 November/December • Whole No. 246 • Paper Money Current and: the Caduceus Abstract Today, the caduceus is a universal symbol of medicine. However, this was not always the case. Until the begin- ning of the twentieth century, the caduceus was recog- nized as the magic wand of Hermes, a symbol of good faith, wise leadership, and commercial success. For this reason, mid-nineteenth-century bankers and even the ederal Government put an image of the caduceus on paper currency. Nineteenth-century medical practice had such a bad reputation that no banker or business person would have wanted to be associated with the medical profession. In 1902, the Medical Service of the United States Army adopted the caduceus as its logo, and since that time the caduceus and medi- cine have been intertwined. Currency and the Caduceus ‘ODAY, WE RECOGNIZE THE CADUCEUS AS A UNIVERSAL symbol of the medical profession. The caduceus is so familiar that hospitals, insurance companies, and even pharmaceutical manufac- turers use the symbol with confidence that we will mentally con- nect their organization with the medical profession. However, you might be surprised to learn that the caduceus was not always identified with medicine. In fact, during the nineteenth century the most frequent use of the caduceus was on the vignettes of paper bank notes. Even the Bureau of Engraving and Printing put an image of the caduceus on the 3rd issue five-cent fractional note (Figure 1). Why did so many bankers and even the United States Government use the caduceus to decorate paper money? Were they trying to identify with physicians or with some aspect of nineteenth century medical practice? To answer these questions we must delve into nineteenth-century banking practices and review the history of the caduceus. By James G. Gamble, M.D., Ph.D. Professor, Orthopaedic Surgery Stanford University Medical Center Packard Children's Hospital at Stanford Paper Money • November/December 2006 • Whole No. 246 413 The nineteenth-century saw frequent cycles of inflation and depression during which metallic coins would disappear from circulation because the value of the base metal exceeded the face value of the coin. People would hoard or simply melt down the coins. As a result, consumers were forced to use paper banknotes to pay the grocer, the baker, and even the doctor (if the transaction did not involve barter). Furthermore, with the lax banking laws and the ubiq- uitous political corruption of the times, it was relatively easy for unscrupulous businessmen to open a bank and begin printing paper banknotes. As a result, many varieties of paper notes circulated throughout the country, and counter- feit currency was common. For instance, in 1857, at least 7000 different kinds of valid notes were circulating as well as more than 5500 varieties of fraudulent ones. 1 People were never quite sure of the value of their paper currency. With such a motley array of banknotes circulating, a merchant needed constant expert advice to decide which note to accept and which to reject. 2 Ironically, President Andrew Jackson, whose portrait decorates our twenty-dollar bill, was responsible to a large extent for the currency crisis. The Free Banking Era The 1828 presidential election of Andrew Jackson ushered in a political era of the "common man." All six presidents before Jackson came from a privi- leged, landed background, but Jackson was a commoner and a Westerner, not a member of the Eastern elite. Jackson was suspicious of big government, big business, and especially the Nation's central banking system, which all were centered in the Eastern States. The first Bank of the United States in Philadelphia had received a twenty-year charter beginning in 1791, and the Second BUS (Figure 2) was chartered in 1816. This Second BUS was the largest and most successful corporation in the country. Eastern money interests domi- nated the Bank. Jackson and his supporters thought the national bank was a dangerous monopoly, which operated to the advantage of the Eastern elite. He blamed the conserva- tive policies of the BUS for tightening credit and thereby slowing the economic develop- ment of the West. 3 After his re-election in 1832, Jackson declared unoffi- cial war on the national bank. He ordered his Treasury Secretary to withdraw all the Federal deposits from the Second BUS and place them in selected state banks, 4 the so- called "pet banks." When the charter of the Second BUS ran out, Jackson vetoed a bill that would have extended the life of the bank beyond 1836. Banking now became a state and local affair. Furthermore, it was relatively easy to acquire a charter, begin printing and circulating currency. States, cities, counties, rail- roads, mining companies, local banks, and even construction companies went into the banking business and began issuing paper money. In theory, the paper money of these institutions could be redeemed at any time for specie (gold, silver, or metallic coin). In principle, the vaults of these Figure 2: Second Bank of the United States, Philadelphia C T THE RUN ON THE BANK -Ltire:tOsrqms&VWidlir-Tt ION5TAGE 414 November/December • Whole No. 246 • Paper Money Figure 3: "The Run on the Bank, a crisis in the affairs of the Great Financial Institution," a 19th century stage play. (Library of Congress) banks were a safer place to store coins than in a straw mattress or under the floorboard, and interest offered by banks on some notes must have been attrac- tive. In reality, with little or no regulation of the institutions and with the con- siderable economic instability of the times, financial panics occurred frequent- ly, and customers would make "runs" on the bank (Figure 3), demanding their money and causing the bank to fail. Thus, began the term "broken bank note" for the obsolete currency of these failed financial institutions. To prevent a run on the bank, it was crucial for the banker to maintain public confidence and keep the notes in circulation as long as possible, prefer- ably forever, this retaining possession of the precious metal pledged to redeem the note. To this end, bankers used a number of ploys and even deceptions to garner public confidence. Some banks would keep barrels of nails covered by a thin layer of gold coins in their vaults to assure depositors of the strength of the bank. Other banks would designate, in fine print, of course, that notes could be redeemed only at their " main office," which might be located in remote wilderness areas. This gave rise to the term "wildcat bank" because the holder of the note had to have the tenacity of a wildcat just to get to the bank. It would have been unlikely that the average person would have had the time or the resources to redeem their notes. Thus, people were forced either to attempt to pass the notes on, usually at a discount, or to accept the loss and dis- card the notes. Many of the notes that survive today probably had been tossed aside in disgust and simply forgotten. Another common banker's ploy was to make the paper currency as artisti- cally attractive as possible (Figure 4). The more elaborate the vignettes on the notes, the more impressive the issuing organization might seem, and, as an N? B •Ai; .v://,/, A qua ills.alailLy Pi A rr Wilt)tuystal Latp,Aityx /fr4W. I. .4,e/i/ 4 jvi, 40 • /7;144 11:11 .7ST 17 // 1*, IZ/d . .11! . - FARMERS &EXCHANGEBANK chaideston.s.E._ //i„_ I VII DOLLARS • • .A0 Paper Money • November/December 2006 • Whole No. 246 415 Figure 4: Elaborate $20 note issued by the Chesapeake and Ohio Canal Company on October 9, 1840. Figure 5: A note from the Farmer's and Exchange Bank of Charleston, South Carolina, depicting the har- vest and transport of cotton by slaves. Figure 6: Nautical scene on a note from The New England Commercial Bank in Newport, Rhode Island. added benefit, the more difficult to counterfeit the note. 5 Today, these vignettes and portraits are miniature works of art that offer a glimpse into the life and social values of the nineteenth century. For instance, notes from the Southern states depicted agricultural scenes involving cotton and slave labor, the economic engine of the antebellum South (Figure 5). Notes from the Northern states showed nautical or industrial scenes (Figure 6), while the notes from the Western states often depicted railroad and Native American scenes (Figure 7). One of the more interesting types of vignettes used on a variety of bank notes was the depiction of bare breasted women (Figure 8). At first glance, this might seem like a cultural contradiction, a semi-nude woman appearing on circulating currency during the time of Victorian social and moral values. One could argue that such a vignette might represent nothing more than an example of the double standard of the time. However, we must remember that the goal of the banker was to keep his notes in circulation as long as possible. In 1850, 416 November/December • Whole No. 246 • Paper Money Figure 7: A railroad scene with Native Americans from The Western Exchange Fire and Marine Insurance Company of Omaha City, Nebraska. Figure 8: A rather risque note from the Bank of DeSoto in DeSoto, Nebraska. Figure 9: A note issued by the Bank of Wisconsin in Green Bay showing a semi- nude holding a caduceus. Figure 9a: Close up of caduceus in hand of another risque maiden. it must have been thrilling to see a note with a bold picture of a semi-nude. In fact, it might have been just thrilling enough that the holder of the note would be willing to tuck it away indefinitely for periodic viewing, thus satisfying the banker's wish to keep his note in the public domain and the gold in his vault. Vignettes and the use of the caduceus Obsolete currency commonly included figures holding a caduceus (Figures 9 and 10). What would the medical symbol have meant to someone in the nineteenth century (Close up figures 9a and 10a), and just why was an image of the caduceus put on currency? • - 11. '?: 71,4■..eiTs„ I 0,Tti• I.. ,,,, FARMER SI MERCHANTS'- BANK . • •-/ YILft t,L4rg14a r/i////i// ,/ . tt, a.1' 1'' S I ) I , 4 - ) 4 3 6. L • 4; 1 'MEE 1).7.1.1ti of r m s . : — ... ....- - II .1a.7 1.417.:N R.V.TE 1111; • ' *7 7/ :111.1.M ,fr.:111* 4- i iii. ,oin or-, ,,..ujoitsi N.J.!! vr , , --,-,, 1.1....‘N. ..„. _;$1,“-iJ itt:17211Y ,.......,____-1:)„._ .41"xCla .., ;4),)..1)1),;11, .- toot-E s-raA NO 6 — -_-- ..., ... ..... .. ,... •-..., • • 4 ,-,A, ...,.:.• ....m.A..8,:1:1/4: 1.410A -4t-itor. ut,...jr • i • ' -A ii)01 ‘ Paper Money • November/December 2006 • Whole No. 246 417 Figure 10: A cherub holding a caduceus is part of an elaborate vignette which includes five gold dollars. Figure 10a: close up, Scientific medicine as we know it was in its infancy at mid-nineteenth century. The American Medical Association was established in 1847, but orga- nized medicine remained weak and fragmented. The science of bacteriology- was just beginning. In 1857 Louis Pasteur showed that bacteria cause infec- tions. In 1865 Joseph Lister conducted the first antiseptic operation using car- bolic acid to cleanse the wound and heat to sterilize the instruments. Due to the crude and often harmful medical practices of the mid-nine- teenth century, the public had developed a deep skepticism of physicians. To confound the situation, Jacksonian democracy had a severe, negative impact on science-based medicine. In the name of egalitarianism, most states abolished the licensing of physicians during the 1840s, and anyone was free to assume the title of "Doctor" and to take up the practice of medicine. The public was inundated by quackery of all kinds: hydrotherapy, phrenology, mesmerism, patient medicines, and doctors "for man and beast alike" (Figure 11). It would take the carnage of the Civil War plus another thirty years before scien- tific medicine began to gain the upper hand in the United States. Figure 11: A note issued by the Laboratory of Dr. J. H. McLean of St. Louis and allegedly signed by the Treasurer of the State of Missouri. Figures 12 and 13: The Magic Wand of Hermes, and the Aesculapian Staff. When a nineteenth century person saw the caduceus, he or she would have thought of the magic wand of Hermes/Mercury, the Greco-Roman messenger of the gods. 6 Hermes was also the deity of eloquence, wealth, and commerce. His magic wand was a short rod entwined with two snakes and topped with a pair of wings (Figure 12). On the other hand, the original symbol of the medical profession from Greek antiquity is the Aesculapian staff (Figure 13), often confused with the caduceus. The Aesculapian staff is entwined by one snake and contains the Greek words, "Life is short; art is long; experience difficult." 7 418 November/December • Whole No. 246 • Paper Money From the 16th through the 19th centuries, the caduceus was used mostly as a general symbol of wisdom and eloquence, particularly as related to busi- ness. In 1851 hospital stewards (medical noncommissioned officers) first began wearing the caduceus as their insignia. 8 Then in 1902 the United States Army Medical Department adopted the caduceus as its insignia. 9 Subsequently, hundreds of thousands of draftees were exposed to the caduceus as our country entered the World Wars of the twentieth-century, and the medical branch of the military grew in importance. This exposure in uniform essentially trans- ferred the association of the caduceus from the commercial arena to the med- ical profession. So why did mid-nineteenth century bankers put the caduceus on their paper currency? Bankers wanted to associate their banks with Hermes, thus projecting a public image of good faith, wise leadership, and commercial suc- cess. This was just another visual ploy to instill confidence in the note and pre- vent a run on the bank. As to any association with medicine, given the sorry state of medical practice and the low public opinion of "doctors," at the time, I think the bankers would have been appalled to have anyone associate their bank or their currency, in any way, with the medical profession! Correspondence may be sent to James G. Gamble, M.D., Ph.D., Stanford University Medical Center, Edwards Building, R-144, Stanford, California, 94304-5341. End Notes Elvira and Vladimir Clain-Stefanelli, Two Centuries of American Banking, p 69. 2 Edgar Erskine Hume, Victories ofArmy Medicine, p 160. 3 D. Rubel, Encyclopedia of Presidents anti Their Times, p 46. 4 i0C sit, p 47. 5 R.H. Durand, Interesting Notes about Allegorical Representations, p 3. 6 O.L. Beaman, A Pictorial History of Medicine, p 16. 7 ibid. 8 Hume, p 33. 9 Walter Friedlander, The Golden Wand of Medicine, p 157. References Bettmann, O.L. A Pictorial History of Medicine, Fourth Printing. Springfield, IL: Charles C. Thomas, 1972. Bureau of Engraving and Printing Website. http://www.moneyfactory. gov/document.cfm/18/106. Clain-Stefanelli, Elvira and Vladimir. Two Centuries of American Banking. Washington, D.C.: Acropolis Books, Ltd, 1975. Durand, R.H. Interesting Notes about Allegorical Representations. Rehoboth, MA: R.H. Durand & Co., Ltd, 1994. Friedlander, Walter J. The Golden Wand of Medicine. A history of the caduceus symbol in medicine, Contributions in Medical Studies, No 35. Westport, CT: Greenwood Press, 1992. Hessler, G. The Comprehensive Catalog of U.S. Paper Money, Sixth Edition. Port Clinton, OH: BNR Press, 1997. Lighter, J.E. The Atlantic Online, June 1997. http://www.theatlantic .com/issues/97jun/9706imp.htm. Rubel, D. Encyclopedia of the Presidents and their Times. New York, Toronto, London, Auckland, Sydney: Scholastic Inc., 1994, pp 46, 47. Scroggs, William 0. A Century of Banking Progress. Garden City and New York: Doubleday, Page and Company, 1924. Hume, Edgar Erskine. Victories of Army Medicine. Philadelphia: J.B. Lippincott Co., 1943. Money Mart ads pay dividends. Six issues, three lines, only $20.25 Paper Money • November/December 2006 • Whole No. 246 419 This article describes one particular form of local, Oklahoma currency: the emergency scrip issued during the banking holiday of early March 1933. Desperate for a circulating medium, private employers worked with civic lead- ers and banks to issue legal and acceptable replacements for United States cur- rency. They did this not only in the absence of consistent guidance from the national government, but in the face of open hostility from Oklahoma's impetuous Governor, William 14. ("Alfalfa Bill") Murray, a conservative pop- ulist with deep suspicions of bankers and banking. While the most prominent example of such emergency money was the scrip of the Cash Relief Trust of Oklahoma City, similar arrangements on a smaller scale were also introduced in the cities of Bristow, Cushing, Pauls Valley, Ponca City, Sapulpa, and Seminole. Like many rural states, hard times came to Oklahoma long before the Crash of '29. Throughout the 1920s, the state's banks were plagued by defaults, as their farming clientele was ground down by low agricultural prices. The paralysis of the nation's banking sys- tem by early 1933 only made a bad situation worse, and Governor Murray issued the order to close the state's banks on Wednesday, March first. The possibility of issuing an emergency exchange medium was immediately raised. After all, Oklahomans remembered that during the panic of 1907 bank clearing houses in the new state as well as around the country resorted to the issue of clearing house certificates to relieve shortages of cash. 3 Oklahoma bankers were not, as a group, averse to scrip or clearing house certificates. Yet the banking moratorium left them uncertain as to their legal ability to underwrite either alternative. One Alfalfa County banker, who other- wise favored an issue of "soldier bonus certificates" to circulate as money, prof- fered this reasonable complaint about scrip: "If there is sufficient credit and backening [sic] behind the script [sic], which there must be in order that it will pass, why can't that same credit be used at our federal reserve banks to get the actual currency and not have to issue scrip?" 4 Farmer and sons walking in the face of a dust storm. Cimarron County, Oklahoma. Arthur Rothstein, photogra- pher. Farm Security Administration -- Office of War Information Photograph Collection, Library of Congress Prints and Photographs Division Washington, DC 20540. Digital ID: cph 3g04840. * Ponca City Cushing * Sapulp Bristow * * Oklahoma City * Seminole Pauls Valley tins CiNTIFICAT1C GOOD ONLY IN NNW' 0 W. OK U. PARTICIPATING CERTIFICATE A No 0 Tins CERTIF IC ATE re cure , $14-< its Olaf hrre beers tie.pctektel weft the firUeow Clulamber of Coal ,-ce sod win be rt. deemed in each ►+1, the mci.kow °umber of Cormorroe 'when colletcUon hw been made oet web rive( its as hare been &pow ed, AVTNk,./(r, 9). A R S =10 Bristow "Participating Certificates", issued in denominations from 25 cents to 10 dollars, were the first of Oklahoma's emergency money issues of 1933 (Copyright 1933, The Oklahoma Publishing Company) November/December • Whole No. 246 • Paper Money The severity of the cash shortage depended upon how quickly the state's banks could be reopened. On Friday Murray extended the banking holiday to the following Wednesday, March 8. The prospects for an adequate circulating medium dimmed when the state's bank commissioner, William J. Barnett ruled that frozen assets of the banks could not be used, as in past crises, to back clear- ing house certificates. The Oklahoma City and Tulsa Clearing Houses met separately to deal with the problem of weekend pay rolls without their tradi- tional tools. Unwilling to challenge the Governor by advancing funds for busi- ness's pay rolls or even issuing clearing house certificates, the banks instead deferred to local business leaders to devise a scrip plan. Hubert Hudson of the Oklahoma Railway Co. took the lead in mobiliz- ing the business community to coordinate a scrip alternative called the Cash Reserve Association. 5 Hudson, whose company urgently needed cash to meet its Saturday pay roll, pushed for scrip when it became clear that the governor's executive order had effectively impounded all currency in the banks' vaults. Scrip purchasers would pay by check $101 for every $100 issued, the extra amount covering operating costs. 6 Crucial to the success of the scrip plan was its acceptance both by the general public and by the retail community. The Chamber of Commerce pledged its willingness to support any plan for dealing with the bank moratori- um. For their part, the Clearing House banks issued a statement endorsing the new scrip as a stop-gap measure until the banking moratorium was lifted. To bolster public confidence in the proposed medium, scrip could be obtained only by reputable firms against their frozen bank balances. While banks them- selves could not guarantee the scrip, they did stand ready to divulge to the Cash Reserve Association financial information about firms and individuals seeking to purchase scrip; in effect, the banks would unofficially "earmark" purchasers' accounts to the amount of scrip they drew. 7 While it was unlikely that scrip would be accepted far beyond city limits, Hudson nonetheless declared his eagerness to subscribe to a first issue of $17,000 to meet his payroll. What would the scrip look like in the hands of the public? The denomi- nations would be one, five, and ten dollars, with any change below one dollar made in coin. An issue worth $600,000 was planned-200,000 ones, 40,000 fives, and 20,000 tens. Production would be carried out by the Trave-Taylor Printing Company. For security, the design would be lithographed on gray bank safety paper, with a black-on-white front and a green-on-white back, in somewhat larger size than standard United States currency. On one side, the scrip would bear the reminder "This is Not United States Currency". Its back would early in large print the denomination of the scrip, as well as a medallion depicting the skyline of Oklahoma City with the motto, "Oklahoma City, the City of Progress." 8 While the mechanics of scrip issuance seemed estab- lished, it remained unclear how long it would be needed. In Tulsa, where merchants pre- ferred a clearing house issue to business-sponsored scrip, the banks held back on any plan until they received national guidance. Not every community remained as patient. The oil town of Bristow began moving as early as March 3 to put its own scrip into circulation. At a meeting Friday nigh t, Bristow merchants created the Bristow "scrip bank" under the supervision o f the local Chamber of Commerce, and 420 $5 1899 Silver Certificate4pmG,d 111127S 1 erhre I Burke here StONVI 61 - ,!Vil'i SIN M58433409 pp A v•1 PereatsAilifillkirCIABBILT3001411-Akli'alt, viUrereskUrt.teitie.1.4re,. CO. ee.M.Bleurueterk.; ..Atviivivasitietsatita 111E^11M311513 Paper Money • November/December 2006 • Whole No. 246 421 TRUST YOUR TREASURES TO THE INDUSTRY'S Label Features Prominent display of cataloging information and grade Security features such as hologram, bar code, and reiterated grade Generous area for graders' comments Join thecommunity www.collectors-society.com Preservation. Identification. Appreciation. Your notes deserve the best. That's why PMG developed this holder—combining the qualities that collectors value most. The PMG holder... ...Is made from the highest-quality, inert materials. It contains no openings or perforations—guarding against environmental hazards and contaminants. ...Features a large label that displays precise and specific information about your note, including a full attribution, pedigree, and graders' comments, as applicable. ...Accommodates a wide range of currency albums. Your notes take center stage with protective materials that maximize superior visibility. PMG's primary commitment is to provide accurate and consistent grading of paper money—to impart confidence and reliability. This also includes understanding what numismatists want from a holder. And that's why we are bringing a new standard of impartiality and integrity. To learn more about PMG, visit www.PMGnotes.com , or contact Glen Jorde, Grading Finalizer, at 877-PMG-5570. 4ZAPMG PAPER MONEY GUARANTY P.O. Box 4755 I Sarasota, FL 34230 I 877-PMG-5570 (764-5570) I www.PMGnotes.com An Independent Member of the Certified Collectibles Group t • ...w se,. see voltstIllolkesMISseesetellrost sr wteleerosewseetlerstoewleve seste.hills. 71StessNorPellIOWtsssoWasts. essorisowtioose.,.4 Non Interest Rearing Scrip Al NV 496 Iln)rseroil oof this sstlp III cash Is gsrst•nterel by stet...sit ei 1,111‘ •t`rtl,rol stray step esttes1 with the vent nest.. elsosselser ets'oonstsserese •esti Its re' A••s eloliooss tiossIssr the terms s•f Articles ssf AssesselS11 , 11 Appris,e1 h 6, It.:11 • essio • '4 ,.1,1 , 1, In ..n IN the "fit,' ,f th. Aserselnilsols 7.==rS:=71-=‘,..2.:7"--•:".-!',..---S-27.7—s- es. — — — - 422 G O CO011teltte Cushing "Trade Script" [sic] (Copyright 1933, The Cushing Daily Citizen) SCR I P November/December • Whole No. 246 • Paper Money approved a first issue of $2,000 in "home made money" for the next day. Lea M. Nichols, the Bristow publisher, served as President of the scrip bank. Denominations of the Bristow "Participating Certificates" ranged from ten dollars to twenty-five cents. Staffed temporarily by employees seconded from National Bank and the Community State Bank, the scrip bank issued its paper against deposited No. X193036Z N TRA I) 1,7, dollars worth of Cushing scrip was printed Sunday on blue and yellow safety paper and countersigned by L. N. Stephenson (of the Farmers) and Levi Swingle (of the First National). This scrip would supplement a plan by 0. H. Lachenmeyer, President of the Publishing Company of Cushing. Lachenmeyer, who published the Cushing Daily Citizen, proposed issuing to his employees $1 scrip backed by his frozen bank accounts and receivable for advertising and subscription fees. He was joined by Cooksey's General Store, which planned to issue its own checks in denominations up to $2 and redeemable in the store's own merchandise. 10 At an all-clay meeting Sunday, The Seminole Chamber of Commerce founded a Cash Reserve Association that would issue one, five, and ten dollar scrip in the form of checks signed by Association members. At the initial meet- ing, 50 merchants and business- :, men committed to underwrite the scrip's redemption. Although oil company checks would be the principal security for the scrip, SC11,11' utilities like the Seminole Gas 1: Co. and Oklahoma Gas and Electric also signed on. The Seminole Cash Reserve Association's method differed from other schemes. Instead of selling scrip to companies or employees, merchants would secure scrip in exchange for pay- roll checks which they received from employees and which they would deposit as collateral. As additional security, scrip would be signed by the individual mer- chants who drew it out as well as by the Association's officers. 11 A meeting of Guthrie busi- nessmen Saturday night created a Committee of Ten to devise a scrip plan; by Monday, they had arrived at the idea of Guthrie banks issuing one, five, and ten dollar certificates of deposit against frozen accounts. 12 Seminole "Scrip Dollar" (Copyright 1933, The Oklahoma Publishing Company) Trade Script Issuod By Tilt Cushing Trade Clearance Association 01) FOR FIVE DOI.I.ARS I Must Be Redeemed ;,:nee 1 I933 rhcdc• nn h9 corornitaw g■--• . , the American 4 , 11.'s TRANSFRRAM.1 Series ti payroll checks. 9 That Friday night also saw Cushing merchants forming the Cushing Trade Clearance Association to pursue a similar plan. Backed by payroll checks, Cushing's scrip would rely upon the good agencies of the Farmers National and the First National Banks to confirm employers' account balances. Ten thousand This Is Not Unit ed States Currency .zurip "1 I .,f !essossiossile. t)LIAIssIsIss NE and y !sostIltss! ■ UNITED STATES CURRENCY S C i2 ()V "' RFT: ITT Titt: OF OKLAHOMA ( . 1 . ()I■ 1..1110N1A NOV tiE-11(1N( Irq nO, .• .,•■ t • , Paper Money • November/December 2006 • Whole No. 246 423 Finally, in Ponca City that same night the Retailers Association worked out the details of a substantial $50,000 scrip issue in the same range of denomi- nations. Backed by bank deposits, scrip was to be purchased by check in amounts as low as $50. Applicants for scrip would assign to the Retailers Association an equivalent claim upon their bank accounts. As in Cushing, this plan was made more palatable by the roles played by local bankers. Clyde E. Muchmore, editor of the Ponca City News, exuded confidence: "It is good for the reason that we say it is good, and after all that is the only reason that any money is good. This scrip will and should have free circulation in Ponca City." 13 Nationally, the banking situation only got worse, and by March 4, the very day of Roosevelt's inauguration, the entire nation's financial system was at a standstill. In Oklahoma, meanwhile, legal concerns delayed the issuance of Cash Reserve scrip. The next day, Barnett warned bankers across Oklahoma against scrip. The Tulsa Clearing House backed away from any issue in advance of federal guidelines, while the Ponca City Retailers Association dropped its original plan and considered re-forming itself as a clearing house. 14 The Cash Reserve Association held back on printing scrip, and postponed the opening of the scrip bank's offices until Monday morning. As a result, many Saturday pay rolls such as Hudson's simply went unpaid. Scrip received critical support from Oklahoma City, when city manager Albert McRill announced that the city council had agreed in its Saturday meeting to accept it for fines, license fees, and other city bills. In contrast, Oklahoma County offices elected not to accept scrip for taxes, and court costs. 15 By Sunday night, March 5, 500 businessmen meeting at the Chamber of Commerce were introduced to the "Cash Relief Trust" as a replacement for the Cash Reserve Association. Ten thousand dollars was raised at the meeting to assure its operating costs. Unlike the previous entity, the Cash Relief Trust Cash Relief Trust Scrip of Oklahoma City would not sell scrip to individual purchasers, but would offer it directly to firms (Copyright 1933, The Oklahoma in thousand dollar quantities. Hudson and Edgar T. Bell of the Oklahoma Publishing Company) Publishing Co. remained Chairman and Secretary respec- tively of the new incarnation. Not coincidentally, first in line to pur- chase were the Oklahoma Railway Co., with a payroll of $17,500, and the Oklahoma Publishing Co., with a payroll of more than $20,000. Serving as trustees of the new organization were Edgar Honnold, the hard- ware merchant M. S. McEldowney, and Herbert M. Peck. "Major" Peck in particular exemplified the close ties among the principals of the scrip scheme: a vice president and trust officer of the First National until 1928, Peck served as the Oklahoma Publishing Company's general counsel. Under the revised plan, the trustees were especially important because they were the ones to assess whether or not an applicant qualified to receive scrip. In this Oklahoma Governor William H. "Alfalfa Bill" Murray (1931-1935) looked with suspicion upon the Cash Relief Trust's scrip issue. 424 November/December • Whole No. 246 • Paper Money revised procedure, at the time of application the corporate buyer would give the scrip bank permission to examine the company's account balance in its reg- ular bank. The scrip bank established by this trust would continue to be located at the First National Bank and Trust Company building. As in the old plan, the first printing would amount to $600,000. The "Declaration of Trust" was signed _March 4 and filed at the county courthouse on March 8. 16 National developments Sunday night also called into question the timetable for issuing scrip. Roosevelt's Sunday declaration of a national bank holiday beginning Monday morning and lasting until Friday March 10 pre- empted state moratoria. While Roosevelt's proclamation authorized the issue of clearing house certificates, Treasury Secretary William Woodin delayed issuing any specific orders granting their release. 17 The prospects for Oklahoma scrip dimmed further on Monday when Governor Murray came out roundly against the businessmen's plan. In a ram- bling broadside to the press he reminded Oklahomans that before statehood the coal operators in the Indian Territory issued script [sic], which ultimately was good at the Commissary of the Company, whose prices were outrageously high for redemption of this scrip. In the Constitutional convention we set the ground work and completed in the first Legislature the destruction of this script [sic]. Here Murray was referring to early legislation that sought to force min- ing companies to pay its employees in "lawful money of the United States" instead of the company scrip that commonly circulated in areas without banks. 18 This had been a delicate point for the original scrip plan. He contin- ued: I thought it was gone for good, but I read in the Sunday's and today's Oklahoman a proposition to issue, without limit, script [sic] by cer- tain concerns in Oklahoma City, in which they say: 'Trust will be filed and it is guaranteed'. Evidently it is a Common Law Trust simply, and guaranteed by themselves who pass out this script [sic], by their own bankruptcy. ...I warn those who are attempting to unload such a bubble on the public to stop now, and I warn the general public, especially the little business man, not to accept such chromos in the name of money for such are never sound, even in times of prosperity and solvency. 19 The Daily Oklahoman, which had just published on Monday a full-page ad promoting scrip use, and whose officers were intimately involved in the scrip plan, reacted furiously. In comparing the scrip just issued to the scrip of the old pre-state coal fields, Governor Murray is going to the utmost bound of error. The scrip he has in mind was issued by companies and too often redeemable at company stores only. The scrip now circulating in Oklahoma City is redeemable in the money of the company issuing the scrip. No company repudiating its scrip or failing to make it good would last any longer than if it had repudiated its checks... .In referring to the company scrip of the coal fields the governor makes no mention of the irregular paper issued in the panic days of 1907. That paper kept business alive and prevented suf- fering, and no one who accepted it lost a penny through using it. 20 Whether reasonable or not, Murray's and Barnett's opposition to Oklahoma City scrip reinforced national developments that cast the business- men's plan into doubt. Printed scrip bearing the name of the Cash Relief Trust and amounting to $600,000 languished in the vaults of the First National. 21 The governor's attack on scrip also delayed its issue in Seminole, where direc- tors of the Seminole Chamber of Commerce Cash Reserve Association awaited word of a national scrip plan. Cushing's Trade Clearance Association, which had printed its supply Sunday, delayed releasing it through Wednesday. Skeptical of scrip, Sapulpa businessmen held off on an issue through the S fireilatateretatirlirl $ 1 ta i;e0'010 Kay County Clearing House _Certificate F reach. This chum:duce unanimo esusly decid the amountimr liningFred . CertificatesNC:il b i. claim agaimt a bfiat the Settlr9 itS of freed by o mesnimr- hsnk. Cles.inx -House Certificates are a common slier ti con aieral deposited by the eircuIrting bark. - ; Dated at Ponca City, 0ktabard _this. the 10th ..day of March, 1933. THIS ONE.DOLLAR CEItTIF LASE la issued by- the Koo Cnuoty (Jeering House Association as ESN; p l. a rd nd e the circulating bank. The, seourilld are held - , trust-by the special COtSe repreae• rii;iloo of g House Association Securities led al b , K„ Me'elr each tbIa. nlilo arc unanimously committe by a ni'mi medium of temporary exchange. It is - coliatrialbs .seesitecl oy d"r-ct ^nyment obligations of the United Slates, the State of Oklahoma, and municioa/. 0,11 ,4.1,s thereof(' ami/er by secured notes pledged auaramttd by r^ can be is, i!, a F. Smith T. W. rentice 110NERWINUMMISONE ATTEST: 0. S. ELLIFRIT. Secretary. L. C. WRIGHT. Treasurer. KAY COUNTY CLEARING HOUSE ASSOCIATION _ By 0., 0. JOHNSON, President. ..GEO. F. SMITH, Vice President. 1 ' 92 THE PONCA CITY PUBLISHING CO.. INC. Ponca City, Oklahoma, March 5, 1933, for and guaratBeed by Kifet9.4 S 1 lifiliiiiMBEINNI$ 1 THE--NEWS 10 Make Business-Better-Certificate ,• •• 0 Non•interest bearing. Net United States Currency. ONE DOLL A BY glpile V I.-wed at Attest: El& sK— AVAIRSZION ELIO ? •Head agreement on reserse side. Treasurer. s tripieffiriiiiiterrtin$ 1v eil.1.—.7t The News Malec-Business-Better Certificate ...st r,a5 Trade In Dances City ,„;) 1116-.13 z: .-44, Along with loan,. other businesses, the bank moratolinin caught Tho Nev., with a substantial bank accountand .cry little each order that we may meet our pa ' yroll. we are ',suing scrip ce " 110 rtificate', which linse the 'ante ' sl•aranito hack of theist that Our ' filed: Isat111 bate Them certificate. will be a plea by at g" t=:;3 their fare sal in the payment of all old a ccounts, in the purelia. of advertising in The Neon or of printedmatter at the News Printer). We request merchants. to accept Item in payment of or the par. X.1 ▪ 1 er.jP. chase of tnerchentli,. They will he redeemed at such time as regulations of the banking departments make YOW".. ▪ this possible. There is nothing back of this certified, lint our word business integrity. We :riot ▪ that the-e ate sufficient. Don't Hoard---Spend THE PONCA CITY NEWS Editor end Manager kirtl N Man IVINV,49; nt 0 N Ese-s st's sat's s'Aloit - Paper Money • November/December 2006 • Whole No. 246 Chamber of Commerce pending consultation with the Tulsa Clearing House and with their local bankers. In the meantime, Sapulpans desperate for cash resorted to drawing down their water meter deposits with the city. Guthrie merchants also paused in their plans. 22 Ponca City busi- nessmen scrambled to meet offi- cial objections by restyling them- selves as the Kay County Clearing House Association, whose mem- bership consisted of the two Ponca City banks, the First National Security Banks of Blackwell, and the First National Bank and the Commerce of Tonkawa. Like the old plan, scrip certificates came in one, five, and ten-dollar denominations, but would be issued instead in the name of the bank depositing the collateral. 23 Meeting early Monday, March 6, the Oklahoma City Clearing House considered its own issue of certificates; Tulsa bankers also promised swift action, even as Barnett reminded them that "no scrip of any kind, no clearing house certificates or cashiers' checks be issued until the plan is worked out in Washington and instructions received from there." At a bankers' gathering in Oklahoma City, officers from around the state obliged by coming out against any scrip measures of their own. Muskogee's bankers returned home to instruct their Clearing House against any issue of certificates or scrip. 24 Oklahoma City businesses got along the best they could during the cash famine. Most preferred customer purchases on account to the cutting of small checks. Groceries cooperated with companies by issuing trade coupon books that the companies could give to their employees. The Oklahoma Railway Company, which had missed its regular Saturday payday, advanced its workers five dollars each in cash from streetcar fare receipts. 25 Elsewhere in the state, cor- porations and governments made creative use of popular demand for their goods and services. Following the example of The Publishing Company of Cushing, other newspaper owners capital- ized on their importance in the local economy (as well as on their ownership of printing presses) by issuing scrip. On Tuesday, Muchmore's Ponca City News, put out $1,400 in its own "Make- Business-Better" certificates, while the Bartlesville Daily Enterprise paid out $500 in private currency to its employees in denominations from five dollars down to twenty-five cents. The Miami Daily News-Record paid out scrip to its employees, in amounts up to five dollars. In general, these issues gained easy acceptance not 425 Clyde Muchmore's "Make Business- Better-Certificates" came in one and five dollar denominations. Like Kay County certificates, this sported a vignette of the Ponca City Municipal Building, suggesting that Muchmore was the printer for both issues. (Illustration courtesy of Depressionscrip.com ) and the Bank of Kay County Clearing House Certificate (Courtesy Depressionscrip.com ) 426 November/December • Whole No. 246 • Paper Money only because of the stature of the local publishers, but because they were receivable for advertising and subscription payments to the newspapers. 26 While public authorities around the state could hardly assert legal tender privileges, they did exploit whatever currency their warrants possessed. At its March 7 meeting, the Guthrie City Council voted to issue "all salary warrants for the month of February in $1 denominations insofar as acceptable," and des- ignated a deputy to assist the Treasurer and City Clerk in the tiresome job of signing each warrant. The City Clerk's office stayed open all night preparing the warrants, and on Wednesday paid out more than $4,000 to 43 city workers. Enid teachers managed to get 25% of their salaries paid in one-dollar "trust certificates backed by a specific warrant which will be held for their redemp- tion." while the city of Miami paid $3,000 in employee salaries using five-dollar warrants backed by bonds. 27 On March 8, Murray extended his original bank holiday until Friday the 10th, to match the federal timetable. After some hesitation, Secretary Woodin authorized clearing house associations to issue certificates, but only by March 10 at the earliest, pending any national scrip plan. Federal Reserve officials in Washington, D.C. opposed any national plan, arguing that the Federal Reserve System already possessed adequate mechanisms for currency expansion. Despite this opposition, clearing houses around the country moved to issue certificates. In particular, Governor Lehman of New York oversaw the creation of an Emergency Certificate Corporation that would provide state scrip based upon sound bank assets. 28 While the nation's banks awaited New York's example, printing presses across the country produced millions of dol- lars of emergency circulation. The Oklahoma City Clearing House announced its own plans for issuing up to $3 million in certificates. The Tulsa Clearing House promised an expedited Friday release of certificates. 29 With the Cash Relief Trust apparently out of business, the Daily Oklahoman complained bitterly about Murray's interference: It is rather like Governor Murray to see more evil in the emergency plans of local business men than he can see in his own emergency plans... When local business men drive determinedly towards a wider measure of local relief by issuing local scrip for local convenience the governor attacks the program with a mass of unrestrained epithets and unvarnished errors and advises all people to wait for the launching of the Roosevelt program. But in the matter of banking reform he refuses to wait. While advising others to wait and then follow, he refuses to wait and he fails to follow. 30 Compounding Murray's hostility were the effects of new national legisla- tion. Instead of endorsing nationwide issues of scrip or clearing house certifi- cates, the Emergency Banking Act, passed by Congress on March 9, established a nationwide timetable by which banks could be examined and certified for reopening to the public. In addition, it provided for a rapid increase in the sup- ply of Federal Reserve notes by expanding the category of eligible assets against which notes could be issued. Furthermore, Treasury Secretary Woodin forbade the issue of Emergency Certificates by the State of New York, and clearing houses around the country either truncated or abandoned their plans to issue certificates. In Oklahoma City, banks fell silent about any issue of certificates. 31 These developments did not dissuade the Cash Relief Trust. Ignoring Murray, the Trust went ahead and issued the first $34,500 in scrip on Wednesday, March 8. To the Daily Oklahoman, "issuance of the scrip here acted like a blow torch on the ice cake of frozen assets, with virtually every merchant joining in the move to liquidate business and resume normal trade". A.C. DeBolt, president of the Oklahoma Railway Co., made the first scrip withdrawal on Wednesday, taking $9,000. "I can go back to the office and know that I will be greeted with open arms now," Debolt declared. "I've been Paper Money • November/December 2006 • Whole No. 246 427 going around empty handed for so long, I've simply become afraid of my own shadow." His company accepted a dollar in scrip for a fifty-cent ride card and fifty cents' change in silver. The second applicant for scrip was the Oklahoma City Publishing Co., which took $12,000. More than 140 firms across the trades agreed to accept it, including utilities, although Southwestern Bell demurred, citing its financial obligations outside the city. In his syndicated column, Will Rogers captured the mood and logic of the scrip movement with this backhanded endorsement: "Everybody is all excited over 'scrip'. We are all for it. The way it sounds, all you need is a fountain pen and a prescription blank. . . .So come on with your scrip. The psychology of the stuff not being actual money is going to make everybody want to buy some- thing." 32 The release of Oklahoma "• City scrip was a signal to other schemes around the state. In Seminole, where the city council voted to accept scrip for water bills and other city expenses, $2,500 in Cash Reserve Association scrip was issued in the first two hours of business. With its bank opening delayed, the Sapulpa Chamber of Commerce finally voted to issue $10,000 in "participating certificates," hastily printed in denominations which, A One-dollar Sapulpa "Participating like Bristow's, ranged from twenty-five cents to ten dollars. Signed by the Certificate" (Courtesy Depressionscrip. Chamber's President and Secretary, the scrip was underwritten by the payrolls corn) of factories, oil companies, and utilities. In a simple procedure like Seminole's, payroll checks could be cashed directly with local merchants in exchange for scrip. The Pauls Valley Chamber became an impromptu bank of issue, provid- ing scrip to businesses in exchange for their checks, and quickly had $500 worth of scrip in circulation. As the local paper reported, "many merchants are cashing personal checks with the 'home-made' money, and practically every business house in Pauls Valley is accepting the same as cash." 33 Cushing's scrip eventually entered circulation, while in Bristow, where the first emergency issue had begun, thousands more in scrip, mostly in the smaller denominations, were put out as the week wore on. In addition to the numerous businesses advertising their readiness to take scrip in payment, the Bristow City Council voted to accept it for water bills; other utilities followed the city's lead. In Ponca City, the Kay County Clearing House estimated that up to $100,000 in clearing house certificates would be required to meet local demand. Guthrie, which like Miami had issued a large number of negotiable warrants to pay employees, found its liquidity needs correspondingly reduced and did not go forward with scrip. 34 By Friday March 10, only limited banking services were available statewide, and applications for Cash Relief Trust scrip, encouraged by the Chamber of Commerce's endorsement, remained heavy through the week- end. 35 Although the federal legislation squelched the movement for national scrip, Roosevelt's bank holiday probably increased demand for Cash Relief Trust scrip since his proclamation and the Emergency Banking Act did not allow for the partial withdrawals of deposit balances. About the scrip, Governor Murray sneered, "it's worth a hundred cents on the dollar in trade where it's issued, but it's not worth a damn for anything else." 36 Even if true, that was good enough for its users. As of Thursday, March 9, $88,400 in scrip was in circulation. Noteworthy among the applicants for scrip was the city government itself. Indeed, City Treasurer Joe W. Gt This certificate is secured by pay! . thai I are been deposited with the Sapulpa Chamber of Comnic:ce a.id r -i,teiltlyr the Sapulpa Chamber of Commerce 0-2g, when collection has been made on such c ks akfjpeWsposited. A A A A 2,, 6 b' .17'•,-;V)1:(Cce1c94, ,V4P.i.'4.(t4)1(c. =14tc"' .A541,;(02,1Vit..420UV.A>:,V6.e.2,'.ak4g, V.f.ssz"s- '-keTA;R:p .;767),7P.P;CeigiAnT2WK:WP ,TAK'U-%1"0714'nni This Certificate. Goad Oniy in Sapulpa, Okla. _NY 1 PAPITICMP.X.s.:C-- ON 0 LAR 1 ER.TIFICATE KT2-?Trz&sw-, 848 A - Edgar Honnold, Leg, M. S. AfcEldowney and Herbert Peck At least one group of Oklahoma City business men knows the visst- tudes of a messenger boy—they are trustees of the city scrip bank. riy a provtslon of the trust agreement under which the bank 13 operated, the trustees must be their own messengers, and a large portion of each day must be spent in chasing from bank to bank. As only the trustees are permitted to inspect a bank accouut. It is necessary, after receipt of an application in the First street bank offices, fcr the three trustees to walk over to the hank in which the applicant has /11.3 account, make their Inspection and then walk back to the scrip hank. Above: Scrip Trustees Going About Their Business. Below: Trust officials, with Herbert Peck at right, witness the burning of Cash Relief Trust scrip on March 17, 1933. (Both illustrations, Copyright 1933, The Oklahoma Publishing Company) November/December • Whole No. 246 • Paper Money428 Scrip Trustees Get a Workout Ammerman proved the single largestpurchaser of Cash Relief Trust scrip to use for cashing employees' salary war- rants. The city also accepted several hundred dollars' worth of the paper in payment of various bills and fees. Generally, scrip was taken wherever offered, although wholesalers with obligations outside of the city declined the scrip. The first marriage license paid in scrip went to Sarah M. Adams and R. R. McBride. 37 City bankers prepared for limited operations Monday, March 13th, according to the federal schedule. The minimum scrip purchase from the Cash Relief Trust was dropped Friday to $500, although many smaller mer- chants facing Saturday payrolls chafed at even that minimum. Friday was its busiest day, with twenty-four applica- tions for scrip approved, the largest being Oklahoma Gas and Electric and the City Treasury, which each took $10,000. This rush of business also highlighted one inconvenience in the operations of the Cash Relief Trust: As trustees, Honnold, McEldowney, and Peck were obliged to travel from bank to bank in order to inspect personally the accounts of scrip applicants. 38 By that weekend, issues of Cash Relief Trust scrip peaked at $132,000. 39 With major banks in Oklahoma set to re-open, redemption of Cash Relief scrip was envisioned. The Cash Relief Trust redeemed about $50,000 before it closed at 2:00 pm on Tuesday, March 14, and set June 3 as the final day for redeeming scrip, after which the notes would become worth- less. In contrast to the trustee's scurry- ing of earlier days, the scrip operation was now quieter, as customers lined up to redeem their holdings for U.S. cur- rency. The scrip could be redeemed at the temporary offices until Thursday, after which it would have to be present- ed at the First National Bank. By Friday, March 17, only $15,000 remained outstanding, and the scrip bank wound up its operations. 40 As with the banking crisis itself, Oklahoma's experiment with emer- gency money blossomed and then fold- ed up with great rapidity as commercial Every Auction Lot is Now Available for Online Viewing... www.EarlyAmerican.com Consign Your Important Material • Phone Dana Linea Today! Paper Money • November/December 2006 • Whole No. 246 429 r Buying & Selling All Choice to Gem CU Fractional Currency Paying Over Bid Please Call: 314-878-3564 ROB'S COINS & CURRENCY P.O. Box 6099, St. Louis, MO 63017 Special: my Fractional Currency Book FREE (free postage too!) to all new SPMC members who request one while supplies last EARLY AMERICAN HISTORY AUCTIONS Sign Up to Receive Our Fully Illustrated Catalogs Free Online or Only $72 for a Full Year Subscription of Six Bimonthly Printed Catalogs AUTOGRAPHS • COINS CURRENCY • AMERICANA • MAPS EARLY AMERICAN • P.O. Box 3507 • RANCHO SANTA FE, CA 92067 (858) 759-3290 OR FAX (858) 759-1439 • Auctions@EarlyAmerican.com 430 November/December • Whole No. 246 • Paper Money conditions returned, if not to prosperity, at least to a pre-crisis calm. On March 17, redeemed and unissued scrip of the Cash Relief Trust amounting to $564,543 was incinerated in the furnaces of the First National Bank building. While about $10,000 was estimated to be outstanding in late March, this figure shrank through redemptions to something under $1,000 worth of lost or keep- sake notes. By the terms of the Trust any collateral behind the unredeemed remainder would be turned over to charity 60 days after final redemption dead- line. After expenses, it was reported that this gift amounted to $21.22. 41 Banks in Seminole and Cushing opened on an unrestricted basis, and the scrip issues in both towns (including that of Cushing's publisher Lachenmeyer) were also quickly retired. In Cushing, timely federal payments to military per- sonnel and Indian tribes limited the need for scrip. Pauls Valley banks accepted the town's scrip against cash, and a total of $1,071.60 was redeemed through the Chamber as it deposited the business checks it held as collateral. Of the $10,000 in Sapulpa "Participating Certificates" authorized, apparently only something less than $2,400 was actually issued. In the first two days after redemption was permitted, all but $146.50 had been returned. The Chamber declared outstanding scrip invalid after ninety days. Bristow's "scrip bank," whose final circulation reached $9,678.50, even published a rudimentary balance sheet, signed by Nichols and Brawner, that trumpeted a "surplus" from its operations of $2.37. On Thursday, March 16, Bristow's own "Participating Certificates" were recalled, and by the next day alone $6,453.25 had been turned in. June first was set as the deadline for redemptions. Proceeds from unredeemed scrip reverted to the Chamber of Commerce treasury. Guthrie, which had relied upon $1.00 salary warrants, hastened to retire them before other obligations "because of their bulkiness." 42 The Kay County Clearing House Certificates issued in Ponca City turned out to be the second largest issue of scrip after Oklahoma City's, and the most orthodox in terms of banking practices. Alone among the seven Oklahoma experiments in emergency money, Ponca City recast its issue as a liability of the new clearing house's banks; its certificates were backed by finan- cial securities rather than earmarked bank accounts or pay roll checks, as hap- pened elsewhere. In the event, the Security Bank and Trust issued only $20,000 in certificates, the First National $5,000. With the lifting of the national holi- day, Meek called for their immediate redemption, and over half the issue was paid in on March 16 alone. The Kay County Clearing House represented one of fifteen clearing houses across the country which, following the 1907 prece- dent, actually issued scrip in 1933, although twice that number prepared issues but never put them into circulation. Redeemable up to two years after issue, a mere $40 of the Ponca City currency remained outstanding by 1935. 43 With the lifting of the banking restrictions, Oklahoma's emergency money was quickly cancelled, and the bulk of it reduced to ashes. Samples of Oklahoma's emergency currency still extant, tucked away as curiosities or mementos, testify to the resourcefulness of the state's business and financial elite in meeting local needs at the crescendo of national crisis. Successful local currency required not only business support but public confidence. In the Oklahoma experiments in emergency money, this trust was cultivated by care- ful mobilization of business interests, as well as by scrupulous attention to what backed the scrip and even to its physical appearance. Widespread publicity pro- moted popular awareness and support for the new circulating media. The larg- er the issue (as in Oklahoma City and Ponca City) the more elaborate did these safeguards become. Just as the banking crisis of 1933 brought out the best in community spir- it, its inconvenience may have also postponed some of the worst in human lar- ceny. Burris G. Penn, editor of the Cordell Beacon, noted one unanticipated benefit of the financial turmoil: •1, co aos4erse • I'EN 11■■■•.1,1111,4 67PPQ17 IT5 68PPQ .711 ,*(1141,31_414,1, -"olettep I Paper Money • November/December 2006 • Whole No. 246 431 PCGS Currency Grading Matters! 7';i4-.-Q Fr. 1513 1963 $2 Legal Tender Note Fr. 2039-B* 2004A $10 Federal Reserve Note Fr. 2300* 1935A $1 Hawaii Silver Certificate PCGS Superb Gem New 69PPQ PCGS Perfect New 7OPPQ PCGS Superb Gem New 67PPQ Realized $373.75 Realized $977.50 Realized $5,750.00 Fr. 2301 1934 $5 Hawaii Federal Reserve Note Fr. 2307* 1934A $5 North Africa Silver Certificate Fr. 2404 1928 $50 Gold Certificate PCGS Superb Gem New 68PPQ PCGS Gem New 66PPQ PCGS Superb Gem New 67PPQ Realized $4,887.50 Realized $5,175.00 Realized $12,650.00 These notes are truly exceptional pieces of currency, and the auction results above are proof that PCGS Currency grading is truly a value added service. The notes pictured above realized an amazing average of more than 350% of their current Oakes & Schwartz reference value in the September, 2006 Heritage-CAA Long Beach Sale. Currency collectors and dealers recognize that the PCGS Currency grading standards are the most consistently applied stan- dards in the business, and these auction prices realized are proof that buyers demand PCGS Currency grading for their valuable notes. Whether your notes are worth $100 or less, or 51,000,000 or more, PCGS Currency grading adds value to your collection. We've graded more than 40,000 notes since our inception just over a year ago, spanning the entire spectrum of values—from th most common $1 Silver Certificate to some of the rarest and mos valuable notes ever sold. The consistent application of our gradin standards gives buyers and sellers unmatched security in determinin condition and value. Our grading guarantee insures that even whe: we make a mistake, you don't! Why trust any other service for your valuable currency? PCG. Currency is the only currency grading servic that offers a truly unbiased third-party opinior published grading standards, and a writte] grading guarantee. Standards. Consistency. Integrity. PCGS Currency Grading Matters!CURRENCYA Division of Collectors Universe Nasdaq: CLCT The Standard for Paper Money Grading P.O. Box 9458, Newport Beach, California 92658 • Toll-Free 800-447-8848 • Fax 949-833-7660 • www.pcgscurrency.com 432 November/December • Whole No. 246 ° Paper Money Some of us may have thought the banking holiday worked a great hardship upon us, but imagine the consternation of Oklahoma's numerous efficient bank robbers when they found every bank in the state suddenly closed and their means of living completely shut out. If the holiday should continue longer these modern buccaneers might have to resort to raiding henhouses. 44 Endnotes 1 The author is associate professor of political science at Univeristy of Central Oklahoma, Edmond, OK. A longer version of this article appeared as: "'This is Not United States Currency': Oklahoma's Emergency Scrip Issues During the Banking Crisis of 1933," Chronicles of Oklahoma, 82 (Summer, 2004), 168-199. 2 Two general works on Depression scrip are: Vernon L. Brown, "Scrip and Other Forms of Emergency Currency Issued in the United States During the Depression Years of 1931-1934" 2 Vols. (MA Thesis, New York University, 1941); and Joel William Canady Harper, "Scrip and Other Forms of Local Money" (PhD Dissertation, University of Chicago, 1948). The standard numismatic reference is Ralph Mitchell and Neil Shafer, Standard Catalog of Depression Scrip of the United States (Iola, WI: Krause Publications, 1984). 3 James G. Cannon, Clearing Houses (Washington, D.C.: GPO, 1910), 11, 75-9; A. Matt Andrew, "Substitutes for Cash in the Panic of 1907," Quarterly Journal of Economics, 22 (August 1908), 497-516; James M. Smallwood, An Oklahoma Adventure: Of Banks and Bankers (Norman: University of Oklahoma Press, 1979), 55. By 1933, clearing house associations existed in Oklahoma, Tulsa, Bartlesville, Enid, Muskogee, Guthrie, and (formed that year) Ponca City. 4 Henry C. Doherty (Bank of Burlington, Burlington) to Thomas, March 7, 1933 Box 15 Folder 38, Subject Series, Elmer Thomas Collection, Carl Albert Center Congressional Archives, University of Oklahoma, Norman (hereafter cited as CAC). 5 Daily Oklahoman, March 4, 1933; Guthrie Daily Leader, March 3, 1933. 6 Daily Oklahoman, March 4, 1933; "Growth of the Oklahoma Publishing Company", supplement to the Daily Oklahoman, April 23, 1939, 9-10. 7 Chamber of Commerce, Board Minutes March 2, 1933, 87. Oklahoma City Chamber of Commerce Collection Box 8 Folder 1, Research Division, Oklahoma Historical Society, Oklahoma City (hereafter cited as RD OHS); Daily Oklahoman, March 4, 1933. 8 Oklahoma City Times, March 4, 1933. 9 Bristow Daily Record, March 3-4, 1933. 10 Cushing Daily Citizen, March 3, 1933, 3; March 5, 1933. 11 Seminole Producer, March 6, 1933; Okmulgee Daily Times, March 8, 1933; Seminole News, March 9, 1933. 12 Guthrie Daily Leader, March 5-6, 1933. 13 Ponca City News, March 6, 1933; quote from "Scrip is Money" (editorial), ibid, 4. For a copy of the assignment agreement, see ibid, 6. 14 Tulsa Daily World, March 6, 1933; Ponca City News, March 6-7, 1933. 15 Daily Oklahoman, March 5, 1933, A-7; Oldahoma City Council Journal, March 4, 1933, 96; Oklahoma City Times, March 4, 1933. 16 "Declaration of Trust" Miscellaneous Records, 247: 22-30, Oklahoma County Clerk's Office, Oklahoma City. For application forms for scrip purchase, see Daily Oklahoman, March 6, 1933, p. 4. 17 Ibid, 12; Susan Eastabrook Kennedy, The Banking Crisis of 1933 (Lexington: University Press of Kentucky, 1973), 165. 18 Session Laws of Oklahoma 1909, 637-8. 19 Typescript copy in the Elmer Thomas Collection, Subject Files Box 15 Folder 39, CAC; Blue Valley Farmer, March 9 1933. See also O.D. Hall, "Oklahoma Operating Under Moratoria," Harlow's Weekly, March 11, 1933, 3-6. 20 Daily Oklahoman, March 7, 1933. 21 Specimens bearing the name "Cash Reserve Association" were printed, but never cir- culated. See Mitchell and Shafer, Standard Catalog of Depression Scrip, 212. 22 Seminole Producer, March 7, 1933; Cushing Daily Citizen, March 8, 1933; Sapulpa Herald, March 6, 1933; City of Sapulpa, Commissioners' Proceedings, March 6, 1933, Volume May 1932-December 1934, np, City Clerk's Office, Sapulpa, Oklahoma; Guthrie Daily Leader, March 7, 1933. Paper Money • November/December 2006 • Whole No. 246 433 23 Ponca City News, March 7, 1933; March 9, 1933. 24 Daily Oklahoman, March 7, 1933; Tulsa Daily World, March 6, 1933; March 7, 1933; Muskogee Daily Phoenix, March 6, 1933; March 7, 1933; March 14, 1933. 25 Daily Oklahoman, March 7-9, 1933. 26 Ponca City News, March 7-8, 1933, 1; Miami Daily News-Record, March 12, 1933; Mangum Daily Star, March 3, 1933. 27 Guthrie City Council Minutes, March 7, 1933, 357, City Clerk's Office, Guthrie, Oklahoma; Guthrie Daily Leader, March 6, 1933; March 8, 1933; Enid Events, March 9, 1933; Miami Daily News-Record, March 7, 1933. 28 Twentieth Annual Report of the Federal Reserve Board Covering Operations for the Year 1933 (Washington, D.C.: GPO, 1934), 12; Kennedy, The Banking Crisis of 1933, 172-3. 29 Daily Oklahoman, March 8, 1933; Tulsa Daily World, March 8, 1933. 30 "For Others Only" Daily Oklahoman, March 8, 1933. 31 Kennedy, The Banking Crisis of 1933, 173-8. 32 Daily Oklahoman, March 9, 1933; Rogers quoted in the Tulsa Daily World, March 7, 1933. 33 Sapulpa Herald, March 11, 1933; Minutes of the Board of City Commissioners of Pauls Valley February 21, 1933, Volume July 1, 1929-November 18, 1946, 152;City Clerk's Office, Pauls Valley, Oklahoma; Pauly Valley Democrat, March 9, 1933; Jarrel Ray Walker, "A History of Pauls Valley, Oklahoma" (M.A. Thesis, University of Oklahoma, 1953), 59. 34 City of Bristow, City Council Minutes March 6, 1933, Volume 1932-May 1936, 62, City Clerk's Office, Bristow, Oklahoma; Bristow Daily Record, March 7, 10, 11, 1933; Ponca City News, March 10-13, 1933; Guthrie Daily Leader, March 7, 1933. 35 Oklahoma City Chamber of Commerce Board Minutes March 9, 1933, 92, Box 8, Folder 1, Oklahoma City Chamber of Commerce Collection, RD OHS. 36 Oklahoma City Times, March 9, 1933. 37 Daily Oklahoman, March 10, 1933; City Journal, March 6, 1933, 97. 38 Daily Oklahoman, March 11, 1933. 39 Daily Oklahoman, March 12-13, 1933. 30 Daily Oklahoman, March 14-17, 1933. 41 Roy P. Stewart (with Pendleton Woods), Born Grown: An Oklahoma City History (Oklahoma City: Fidelity National Bank Association, 1976), 239; Daily Oklahoman, March 18, May 29, June 3, 1933; November 4, 1948; Sunday Oklahoman Magazine, March 2, 1958, 29; "Declaration of Trust", Section 16, 27. Stewart and the Daily Oklahoman give a final figure of $729 in outstanding scrip, while Mitchell and Shafer (211) cite $921. 42 Seminole Producer, March 17, 1933; Cushing Daily Citizen, March 10, 1933; March 17, 1933; Sapulpa Herald, March 22, 1933; Bristow Daily Record, March 16, 1933; March 17, 1933; Guthrie City Council Minutes, April 5, 1933, 360, City Clerk's Office, Guthrie, Oklahoma. 43 Ponca City News, March 16-17, 1933; Brown, "Scrip and Other Forms of Emergency Currency", 143-7. 44 Cordell Beacon, March 9, 1933. Paper Money's planning issues devoted to ALL your favorite notes: Nationals, Confederates, Obsoletes, Small Size, Foreign, MPC, Fractionals Make these issues something special -- Publish your best articles in Paper Money NLG Best Large Specialized Publication ANA Best Club Publication You can be sure your articles will be presented to the best possible advantage You can be sure your research will reach readers who matter You can be sure, your articles will stand the test of time for all generations BE SURE -- WRITE FOR PAPER MONEY - -.male • • • 111m.--- Mexico's National Bank. The First National Bank of Mexico has been incorporated and has received authority from the comptroller of the Currency to begin business. The capi- tal is V25,000 and the first issue of cur- rency will iz,000. The Banking Asfto- elation is the E ace° s o r to Charles A. Peck & Company, private bankers, who began business about a year ago, and . is the first bank ever incorporated in this village. A large amount of banking business is transacted here in propor- tion to the population and there is no good reason why a national bank, prop- erly run, should not make ruaney. The directors are Nellie T. Peck, Charles A. Peck, Henry A. Peck, L. G. Ballard and Ida T. Ballard. Nellie T. Peck is president and Charles A. Peck cashier. • • • *m.o..-- _ November/December • Whole No. 246 • Paper Money434 Nellie T. Peck, National Bank President 'IP' ELLIE T. (CLARK) PECK WAS A NATIVE OF PULASKI, NY, a village in central New York about 40 miles north of Syracuse. She was born there on March 4, 1857, to a banking fami- ly. Her father, James A. Clark, was the founding cashier (1865) of the Pulaski National Bank and was its president at the time of his death in 1887. Her mother, Helen A. Clark, then succeeded to the presidency and served until her death in 1893. She was one of the first woman National Bank presidents. Then Nellie's sister-in-law, Ella Clark, became president of the Pulaski bank, serving for about a decade before Nellie's brother, Louis J. Clark, assumed the presidency of this family owned bank which closed in 1932 during the depression. When in her early 20s, Nellie Clark married Charles A. Peck of Mexico, NY. Mexico, also in Oswego County, is about 10 miles southwest of Pulaski. Both Nellie and her husband were directors of the Pulaski NB by the 1890s. Charles was in the mer- cantile business in Mexico and in 1895 (some sources say 1898) he organized a private bank in the village, Charles A. Peck and Company. When that bank evolved into the First National Bank of Mexico, charter #5293, in the spring of 1900, Nellie became its president and Charles the cashier. For the early years of her presidency, her sister-in- law was president of the Pulaski National Bank. Thus these nearby national banks each had a woman president. A local newspaper in 1902 noted this, saying, "Both institutions are flourishing, and justly proud of their women officers." Nellie served as bank Above right: The bank occupied this building from 1903 until 1971, when it moved to new quarters. By Karl Sanford Kabelac Far right: The local newspaper carried this article on April 25, 1900, about the founding of the National Bank, noting Nellie T. Peck as the president. INSURANCE F izczcPoalipeecrto r Your homeowners insurance is rarely enough to cover your collectibles. We have provided economical, dependable collectibles insurance since 1966. • Sample collector rates: $3,000 for S14, $10,000 for $38, $25,000 for $95, $50,000 for S I 90, $100,000 for $278, $200,000 for S418. Above 5200,000. rate is $1.40 per $1,000. • Our insurance carrier is AM Best's rated A+ (Superior). • We insure paper money, paper ephemera, manuscripts, books, autographs and scores of other collectibles. 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Box 1200-PM • Westminster MD 21158 E-Mail: info a,insurecollectibles.com pianos VISA - It Paper Money • November/December 2006 • Whole No. 246 435 A letter for SPMC membership: I was truly disappointed when I read through the latest issue of Paper Money, our journal of the Society of Paper Money Collectors. Among the normally appealing articles by collectors about their interests was an article by Stephen Zarlenga, Director of the American Monetary Institute. My disappointment turned into disgust as I read his reprehensible accusations that the Federal Reserve is responsible for American social ills from child mortality to the nuclear arms race. Let me start first with full disclosure. I am employed by the Federal Reserve Bank of Minneapolis. I support staff in the Research Department with their computer needs, data requirements, and forecasting models. I am not an economist. That is one thing that Mr. Zarlenga and I have in common; however, I do not pretend to be one. I always thought of Paper Money as a place for scholarly research about paper money, its history or its production. Mr. Zarlenga's article satisfies none of these criteria. We have a number of collectors in our membership that can and do write a wide range of worthy articles about their paper money interests. Does Mr. Zarlenga even collect paper money? It would indeed be paradoxical if he collects Federal Reserve Notes, but the point is that any article he wrote about our hobby would be better suited and more welcome than his political views, even if they weren't disillusioned. From my point of view, Mr. Zarlenga does not appear to be one of us. In his conclusions, Mr. Zarlenga makes himself an easy target for criticism. In blaming the Fed for the tragedy of New Orleans, he says that the "Fed facilitated that well publicized idiot (his web site says "maniac" instead) who wants to make our government..." – I don't need to finish the thought, as enough is said to make my point. This tone permeates the article. Is this the kind of language that belongs in any academic discourse? Do we want this in our journal? Mr. Editor? It should come as no surprise that the only economics journal in which Mr. Zarlenga can get published is one in which he is on the editorial board. No scholarly economics journal would accept this article. So why is it that Paper Money should be the publisher of last resort? What is personally disappointing for me is that we had the prospect of my supervisor, an economist at the Fed who has written a number of articles on antebellum banking (many of which have been published in bona fide journals) to write an article or two for Paper Money. Our editor has even cited his work in a series of articles in Bank Note Reporter. Do you think he wants to be associated with our organization now? Why would any self-respecting economist want to be published along with Mr. Zarlenga? It is now an embarrassment to have a copy of Paper Money on my desk. I fear that the reputation of SPMC is severely damaged, and I hope our membership will speak up and support the real mission of the Society. For those of the membership who are interested in the Federal Reserve and its activities in our communities, one place to start is http://www.minneapolisfed.org/community/ . I would rather reserve the pages of Paper Money for articles about our hobby. -- R. Shawn Hewitt, Minneapolis, MN I ;res! tr-s,010 "14:11x - S"qfarrHIF.Lf.J .?'"lat2--•__---"•t44?;43GLi;---rN °1271^1';' ,110,44 ..• • , 1DSR 4111114E.11 SIECURCITIES - rhAtigrft.LA -.-^"rr",`"•_•••,,,,,,4,14,441V1 ;11 1 ,„,, tootion n ort ocinutta. *.;a9.;:445" ,2te4:411(ftausEct 11)*Al4044Zf.%.. apa) ogniikiA W' 3 M9427. 3 ‘20 .26 ilYSTY 3.4• r4:■■;4**::;1:1'4"' ihNir '20: 11;;-.510 436 November/December • Whole No. 246 • Paper Money A Series 1882 $20 Date Back, one of 1,620 issued by the bank, with Nellie T. Peck's faded signature as president. (Courtesy Heritage Numismatic Auctions) Enlargements of the signatures on the note of Charles A. Peck as cashier and Nellie T. Peck as president. (Courtesy Heritage Numismatic Auctions) The building today serves as the Town of Mexico, NY offices. The bank itself continues to serve the community as a branch of KeyBank. president until 1909 or 1910, when she was succeeded by George H. Wilson, a local businessman. Charles continued as cashier until the early 1920s when he became president of the bank. A few years later, when he was about 70 years old, he retired. From the present vantage point, it is hard to know how active a president Nellie was. Because Charles, as cashier, was certainly a more prominent public figure at the bank, his obituary in 1935 credited him with being the president of the bank from its founding in 1900 until his retirement in the mid-1920s. Nellie's obituary the following year made no mention of her decade as president of the bank, but mentioned her church work, membership in the local DAR chapter, and noted she "always had the welfare of the village in her heart and will be missed by all citizens of the village." The bank they founded in the village over a century ago still serves the community as a branch of KeyBank. Sources and acknowledgements Names of presidents and length of their presidencies for both the Pulaski and Mexico, NY banks can be found by consulting the Comptroller of the Currency annual reports. Nellie T. Peck's relationship to the Clark family in Pulaski is found in the obituaries for her mother and sister-in-law, which appeared in the Pulaski Democrat in late July 1893 (exact date not on clipping) and July 29, 1931. Obituaries for Charles A. Peck, who died March 25, 1935, and Nellie T. (Clark) Peck, who died May 1, 1936, are in the Town of Mexico, NY Historian's Office scrapbook collection. Brief overview histories of the bank are found in Mexico, Mother of Towns (1949), p. 270-271 and "Banking in Mexico," the [Mexico, NY] Independent Mirror, July 15, 1992, section four, p. 14. Special thanks to Bonnie Shumway, Town of Mexico Historian, for her help with this article. v THE HOST "'°:°`. NATiONAL BANK OF CINCINNATI 09,0 AV TO ll. HCAiCH OH lt.n Ai.l TEN DOLLAUS 5006821A Paper Money • November/December 2006 • Whole No. 246 437 ABOUT NATIONALS MOSTLY BY FRANK CLARK John J. Rowe- National Bank President, Paper Money Collector N70, THIS ARTICLE IS NOT about the paper money dealer with the same name, but a different middle initial. John J. Rowe was president of the First National Bank of Cincinnati, char- ter #24, during the Series 1929 era. He succeeded his father, W.S. Rowe, as president of the bank. Pictured is a Type 1 $10 with John J. Rowe's litho- graphed signature. Later John J. Rowe would become the president of the Fifth-Third Union Trust Company of Cincinnati. He also was a curator of the Historical and Philosophical Society of Cincinnati. In July 1948 he published in their bulletin an article enti- tled, "Early Money and Banks in Cincinnati Pre-Civil War." It is mentioned that the examples pictured are from his exten- sive collection. Eleven note issuing entities are discussed along with the monetary conditions of the time. A copy of this volume resides within the SPMC library. • Architect's elevation shows Eagle Bank face Dear Fred, With reference to page 155 in the March/April 2006 Paper Money issue, the vignette on the New Haven Eagle Bank currency is a design by Ithiel Town (a well-known classical revival architect) and two proposed buildings for the bank. It was to be a six pillar building at the corner of Church and Chapel streets. The bank failed in 1825 before it could be constructed. The notes I am discussing were printed by N. & S.S. Jocelyn of New Haven. Ithiel Town's front elevation drawing of the six column Eagle Bank is in the archives of the New Haven Colony Historical Society, 114 Whitney Avenue, New Haven, CT 06510. Sincerely, Richard Hegel Municipal Historian for the City of New Haven v MACERATED MONEY Wanted information on U.S. Chopped up Money. RARE, FREE MASCERATED POSTCARD FOR USEFUL INFORMATION 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 A Primer for Collectors BY GENF HESSLER QaTABK.4 C.60,1,31,7 wake, \ 14 6 '7 () 06ECOE4b, cArovantin !IVAN AKT1511 if ion & November/December • Whole No. 246 • Paper Money438 T Grapes and Wine on Notes HE GREEKS, ROMANS AND OTHER ancient cultures, learned that fermented grape juice created a pleasant beverage that could be intoxicat- ing. Centuries of experimentation has given us one of life's pleasures. For those who choose to imbibe, an excellent meal is incomplete without a good wine that comple- ments the food. Perhaps you just like to eat grapes. Either way, images of the small succulent fruit have been used to adorn coins since ancient times and paper money for over a century. (The following references are to the Standard Catalog of World Paper Money by Pick.) Two notes from Bulgaria show women harvesting grapes: a 100 leva, P(ick) 86 and a 2 leva, P89. Each note costs no more than fifty cents (when this article was written). Chile is a major exporter of wine. Three notes include grapes as part of the central vignette. These notes are expensive; nevertheless, I will list them. The 100 pesos, PS112 and the 10 pesos, PS189. The third has my personal favorite engraving on this subject. The infant Bacchus, the Greek and Roman god of wine, engraved by Frederick Girsch (1821-1895 ) for American Bank Note Company dominates the center of the 100 pesos from the Banco Consolidado de Chile. This same engraving was so well-liked by other govern- ments that it was used on the Colombian 100 pesos, P218, the Mexican 50 pesos, P158, and the 2 mil reis from Brazil, PA251. Only the latter, unfortunately, can be purchased at a modest price in condition less than perfect. Another version of a mature Bacchus appears on three notes from Algeria: 500 francs, P40; 5 new francs, P44 and P47. These notes are also expensive, however lower grades might be acceptable to you. An image of an even more mature Bacchus is seen seated on the face of a 20 rials, P14 from the Yemen Arab Republic. Although grapes are only a small portion of the designs, the 100 korun, P24 and the 1000 korun, P26 from Czechoslovakia are so beautiful and relatively inex- pensive they will be included here. France, the country with the reputation of making some of the finest wines in the world, only uses grapes as secondary design features on its notes. Some inex- pensive examples are notes used for French-occupied Germany and Austria after 1945. By the way, many wines from California now rival those of France. An inexpensive note from Germany with grapes and other fruit is the 50 mark, P68. The 500 shegalm, P48 from Israel is an attractive note with large bunches of grapes displayed. On the face of the note is philan- thropist Baron E. de Rothchild who bears a name syn- onymous with wine-making in France. The Lebanese 50 livres, P65 includes a large engraving of the Temple of Bacchus on the face. This colorful note is available for less than $5 in perfect con- dition. Two 1000 dinara notes from Serbia include grapes in the design P24 and P32. These modestly priced notes are lovely. The first of the two is overprinted on a 500 dinara from Yugoslavia. It was part of a provisional Serbian National Bank issue that circulated during the German occupation in 1941. From the same part of the world is a note from Bohemia and Moravia, a 20 korun, P9. This province became a German protectorate dur- ing World War II, but rejoined Czechoslovakia in 1945, and today remains as part of the Czech Republic. You will find more examples simply by looking through the inventory of paper money dealers at numis- matic shows. You will not only find examples of grapes on notes but other subjects that you might want to develop into a collection. Salute; cheers; nostrowa; bot- toms up; and wipe the grape juice off your chin. (Copyright story reprinted by permission from Coin World October 27, 1997) Harlan J. Berk, Ltd. 111L. .tit Lk. e ICC 'if 4'. Linthi MO: 31 N. Clark Strck•t (:Ilit-agn, I T. 60602 312/609-0016 • Fax 312/609- I 305 0-mai 1-1:7,1) jbcf - k.cc:Avi A Tull-Service funislnotic tirm fiviolgoo■-fer.% for .4 11 lour Collecting .•ceds Carl Bombara • United States Currency P.C. Sol S24 - ""*". " 1/4 ' ." 6-n g' ? ` PoS6fIC 2 '? 989 51 CI 2 Always Wanted Monmouth County, New Jersey Obsoletes - Nationals - Scrip Histories and Memorabilia Allenhurst - Allentown - Asbury 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. 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You may assort sheet holders for best price (min. 10 pcs. one size). SHIPPING IN THE U.S. (PARCEL POST) FREE OF CHARGE Mylar D® is a Registered Trademark of the Dupont Corporation. This also applies to uncoated archival quality Mylar® Type D by the Dupont Corp. or the equivalent material by ICI Industries Corp. Melinex Type 516. DENLY'S OF BOSTON P.O. Box 51010, Boston, MA 02205 • 617-482-8477 ORDERS ONLY: 800-HI-DENLY • FAX 617-357-8163 www.denlys.com Paper Money • November/December 2006 • Whole No. 246 439 I Collect FLORIDA Obsolete Currency National Currency State & Territorial Issues Scrip Bonds Ron Benice 4452 Deer Trail Blvd. Sarasota, FL 34238 941 927 8765 BenicePProdigy.net 440 November/December • Whole No. 246 • Paper Money I T'S NO EXAGGERATION TO STATE THAT EVERY AMERICAN owns at least one piece of artwork by William S. Fleishell III. In fact, many people have trouble getting through a day without touching one of his creations. A picture engraver at the U.S. Treasury, Fleishell created the portrait of President Abraham Lincoln on the current U.S. $5 bill. One of only 40 bank note portrait engravers in the world, Fleishell joined the U.S. Bureau of Engraving and Printing in 1987, launching his engraving career with a mandatory 10-year apprenticeship. The job was a perfect fit for Fleishell, who has long been a fan of draw- ing and painting in the naturalistic style of the old masters. "My heroes are the 17th century Dutch painters and engravers," explains Fleishell, who thinks of his paintings as "three-dimen- sional sculptures." [Reprinted courtesy of Gtr Magazine] Soon after landing the job, he enrolled at George Washington University to simultaneously complete his degree in the fine arts. "Right from the start, I felt like I was at home," he reflects, noting that his classmates were "incredibly talented" and that his professors were top notch. Prior to attending GW, Fleishell earned a certificate at the Pennsylvania Academy of Fine Arts in 1983, where he received two prestigious awards for excellence in drawing. A seventh generation Washingtonian, Fleishell's family has resided in the You may not know hit name yet. but Will Fleishell created money you are carrying in your pocket By Jamie 1. freedman Capitol Hill/Navy Yard neighborhood of D.C. since the 1820s. "My great- great-grandfather was a stone carver who worked on the Capitol building before the Lincoln administration, and members of my family have worked as printers in Washington since the Civil War," he says. Fleishell also follows in the footsteps of his father, a professional artist whose drawings filled the walls of his home growing up. Now a full-fledged journeyman portrait engraver at the bureau, Fleishell's group is responsible for creating official engraved portraits of every U.S. president. "It's a ceremonial thing that we've been doing since the Civil War," explains Fleishell, who was chosen to engrave the portrait of President George W. Bush, as well as the late Supreme Court Chief Justice William H. Rehnquist. He also engraved a portrait of George Washington for the 1997 stamp commemorating the 150th anniversary of U.S. stamp production, as well as the border of the current $100 bill. According to Fleishell, bank note portrait engravings take at least 300 hours to complete and are done by hand. A painstaking process, the engravings are cut into steel with hand tools and are typically done in miniature. "All the work is done backwards," Fleishell notes, "so you have to think in reverse." Needless to say, the pictures are hard to duplicate, making bank note portraits an important counterfeit deterrent on U.S. currency. Paper Money • November/December 2006 • Whole No. 246 441 For his portrait of Lincoln, Fleishell used a series of 1864 photographs of the 16th president by Anthony Berger as his reference. "I wanted to capture that faraway, knowing look—that emotion," says Fleishell, who spent more than 400 hours perfect- ing the engraving. "To be a good engraver is to be a good interpreter." For that reason, Fleishell spends hours researching his artistic subjects. "I like to immerse myself in my subjects," he explains. "You develop empathy for them that way, as well as the ability to put yourself in their shoes." Fleishell has a special affinity for Lincoln because of the strong mark that he left on D.C. "He did a lot to make D.C. what it was after the Civil War," he says. Fleishell also notes that his great-great-grandfather was one of Lincoln's guards at his inauguration. While most of Fleishell's work is done behind closed doors, he shares his expertise with the community whenever he gets the chance. Several years ago, Fleishell was featured on the Discovery Channel. "They filmed me for an entire day at the bureau for a segment called `Inside the World's Mightiest Bank,'" he says. He also connects with the public through periodic teaching gigs, including a seminar at the Rhode Island School of Design. Fleishell spends his spare time painting at his Capitol Hill studio—an old carriage house south of the Eastern Market. "My great-grand- parents had a store on the same block as my stu- dio 100 years ago," notes Fleishell, who is creat- ing a series of Baroque carvings to adorn its inte- rior. "I've been to Europe many times and am trying to replicate that Baroque feel." He is heavily involved in "Art on Call," a project to spruce up Washington's 600 old emergency call boxes by creating unique, site-specific artwork for the historic relics, which used to house telephones and telegraphs. Fleishell came up with the idea for the project, which is now being adminis- tered by the D.C. Heritage and Tourism Coalition. "It's a grass roots project that's very dear to my heart because it emphasizes the cultural heritage and hometown aspect of Washington outside of the national political landscape," he states. "The project commemorates the neighborhoods of D.C. through engaging, colorful plaques and sculptures depicting famous historic local events, people, and buildings. Our aim is to showcase the positive side of the city outside the murder and mayhem and to make passers by look twice at the neighborhoods they're walking through." Through his myriad artistic accomplishments, Fleishell has achieved suc- cess on many levels but says that his greatest career triumph is making people happy through his work. "A woman bought one of my prints and walked away with the biggest smile on her face," he says. "That meant the world to me." In addition to the Lincoln portrait on the $5 FRN, Will engraved two postage stamps Scott 2875 "1894-1994" $2 and 3140 "G. Washington" 60- cents. Additionally, he engraved a duck stamp Scott RW65 "Barrow's Goldeneye" $15. Engraver William S. Fleishell III in his Capitol Hill studio. Fleishell created the portrait of President Abraham Lincoln on the current U.S. $5 bill. (Photo by Julie Woodford) rA00 Fri Td . (- t: ftr lusprrial 4;opmunriti INTFITIlrON I_ iK November/December • Whole No. 246 • Paper Money442 Interest Bearing. N otes By Dave Bowers America's Emperor Norton I issued paper money "bonds " THEN ONE THINKS OF THE UNITED STATES V V of America, an emperor does not come to mind. However, we had one. To be sure, our emperor was an impos- tor, self-proclaimed, but in the annals of emperors such as in European history, many pretenders can be found, too. Joshua Abraham Norton was born in London, England in 1818, but in 1820 moved with his family to Cape Town, South Africa, where in time he engaged in business. His parents died in the 1840s, leaving him with a comfortable inheritance. When in 1849 the news of the California Gold Rush caused excitement in South Africa, Joshua packed up and headed for San Francisco, arriving in November. Soon he was in business as a commis- sion merchant, which proved to be very profitable. Early in his new career Norton joined 92 other prominent citizens to petition Congress to open a branch Mint in San Francisco. Norton purchased important real estate and operated the first cigar factory and the first rice mill in the city. Ever the entrepreneur, he endeavored to cor- ner the market on rice, but lost his finan- cial shirt when several shiploads of the commodity unexpectedly arrived in port. Local depressions in 1854 and 1855 swept away the rest of his assets, finally forcing him into bankruptcy in 1858. He took the loss hard, moved into a poor section of the city, and seems to have suffered dementia. On Sept. 17, 1859, a new man was born, or so it seemed. On this date he went to the office of the San Francisco Evenin g Bulletin with this declaration: "At the peremptory request and desire of a large majority of the citizens of these United States, I, Joshua Norton, formerly of Algoa Bay, Cape of Good Hope, and now for the last nine years and ten months past of San Francisco, California, declare and proclaim myself the Emperor of these United States." There was always room for levity in the columns of the paper, and this notice was duly published. Emperor Norton was an entertainment success, and soon his other pronounce- ments were eagerly devoured by readers. They included abol- ishing the Supreme Court and Congress, and his appointment of General Winfield Scott as commander in chief of his "country's" military forces. In his regal vestments, made up of discarded military uni- form components, later embellished with a white hat with pea- cock feathers, Norton became a prime tourist attraction. Stereoview cards of the period show the Emperor decked out in his regalia, plumed hat, epaulets, and sword. On Jan. 8, 1880, at a downtown corner, the monarch col- lapsed. He was rushed to a hospital, but died soon afterward. It has been said that some 30,000 mourners attended his funeral. Emperor Norton issued "bonds" in the form of ornate paper money, yielding interest and payable in 1880. Values from 50-cents to $100 were issued, apparently at a rate of about 300 per year. Notes were printed by Cuddy & Hughes. Today fewer than three dozen examples are known. The Wells Fargo History Museum in San Francisco has an exhibit of Emperor Norton's currency. Examples sold for about $125 dol- lars in 1960, but had ridden to more than $2,000 twenty years later, with the growth of obsolete cur- rency collecting. By 2000 they were worth more than $10,000, and when the Lowell Horwedel collection was sold in 2004, a Very Fine example of the 50-cent note sold for $13,225. The Emperor Norton note ranked #100 in Dave Sundman's and my recent book 100 Greatest American Currency Notes, published by Whitman Publications. This example of a 50-cent note or "bond" was issued on November 14, 1876. At the left is a vignette of Columbia standing with a flag, and Emperor Norton I himself is depicted at the upper right. The note measures 8.5 by 4.4 inches, and serves as a representative of this romantic and rare series of "currency." Deal with the Leading Auction Company in United States Currency Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 UMW ,PaRMAI Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 RPM Paper Money • November/December 2006 • Whole No. 246 443 Currency Auctions If you are buying notes... You'll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful "grand format" catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: • Great Commission Rates • Cash Advances • Expert Cataloging • Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207.0364 We strongly recommend that you send your material via LISPS Registered Mail insured for its lull value. Prior to mailing material, please make a complete listing, including photocopies of the noteis), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. CXnight Currency Auctions 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: lyn@lynknight.com - supnort@lynknight.com Whether you're buying or selling, visit our website: www.lynknight.com 444 November/December • Whole No. 246 • Paper Money Good for a chuckle; comic fractionals fit the bill by Alan Bleviss I LIKE TO COLLECT WHAT FRIEDBERGicalled satirical notes. My collection of these notes numbers 41. Each is different, as you can see from these examples. I am very interested in the artists who made these works, and would be obliged to anyone who could steer me in the right direc- tion. From the quality of the work, it is apparent they were created by various artists. The majority of the notes in my collection were not in great condition, but I find this artwork fascinating none-the-less. • 11,4-17 \re 4P • Paper Money • November/December 2006 • Whole No. 246 445 r: •iten, 4 y.4 . - ■,' a:. ,, ... - l±:ktki-,` vt--, , - --'• - c IL.,„, , 4* ,.., • 2-..-... : I . . , --.14:*•:.`,f`: , '.1._., , ... '. . . -.., , • ' -.1.2''''W1,.. -i- •- •-•r .- ■ - 'Davistoi;Z:: NUMISMATIC Society of Paper Money Collectors \„1 er EDI ILD BY FRED REED FIRST PLACE 200() Outstanding v Numismatic Publication t ,:ECt-firED.H.(101, NLG AWARD ibe ea LARGE CLUB PUBLICATIONS BEST ISSUE PAPER MONEY, May/June 2006 FRED L. REED EEL EDITOR DENVER, AUGUST 2006 446 November/December • Whole No. 246 • Paper Money Paper Money and SPMC authors clean up at ANA S PMC AND OUR MEMBERS SWEPT THE FIELD AT, the recent Denver ANA convention in publications awards. In addition to the "Outstanding Specialty Numismatic Publication" award Paper Money received from ANA, our members received eleven (11) awards from the Numismatic Literary Guild, including the writer's group "Large Club Publiations, Best Issue" award. (Pssssst in case you wonder who we beat out, think N"711 *s *a *i *t). While winning awards is not the purpose of our publica- tion, it's gratifying to see our authors recognized for their tal- ents. Contributing articles to the award winning May/June 2006 issue were Karl Sanford Kabelac, Peter Huntoon, Lee Lofthus, Andrew R. Korn and David M. Diaz, Fred Reed, Leslie Deerderf, Frank Clark, Gene Hessler, President Benny Bolin and Librarian Bob Schreiner. Thanks and best wishes to you all. While our authors for all six 2005 issues are too numer- ous to mention here, they were all listed in our annual index which appeared in our year end issue last year. Once again, thank you and congratulations to all these author-members who make Paper Money a winner! And a big congratulations to all our members for logging home NLG hardware. Here are the SPMC winners: Best Specialized Book, U.S. Paper Money: Collecting Confiderate Paper Money, by Pierre Fricke, edited by Stephen Goldsmith; Extraordinary Merit: 100 Greatest American Currency Notes, by Q. David Bowers and David M. Sundman; Extraordinary Merit: The Comprehensive Catalog of U.S. Paper Money, Seventh Edition, by Gene Hessler and Carlson Chambliss; Extraordinary Merit: The Expert'• Guide to Collecting and Investing in Rare Coins, by Q. David Bowers; U.S. Commercial Numismatic Magazines, Best Article or Series of Articles: Paper Money: "A. Woman's Touch," Gene Hessler, COINage; Non Profit or Club Numismatic Magazines, Best Article, Large Publications: "The Treasury Notes of the War of 1812," Donald Kagin, Paper Money; Best Issue, Large Club Publications: Paper Money, May/June 2006, Fred L. Reed III, Editor; Numismatic Newspapers, Best Article on Paper Money: "Traders Bank of Rochester Lasts Until 1924," Karl S. Kabelac, Bank Note Reporter; Numismatic Newspapers, Best Column: "Shades of the Blue and Grey," Fred L. Reed III , Bank Note Reporter; Commercial Publications, Best Dealer-Published Magazine or Newspaper: The Numismatic Sun, American Numismatic Rarities, Q. David Bowers, Editor; U.S. Commercial Numismatic Magazines, Best Issue: Paper Money Values with member Michele Orzano as associate editor. SPMC salutes all these members who put in the time to research and share their hobby with fellow collectors. Paper Money • November/December 2006 • Whole No. 246 447 On This Date in Paper Money History -- Nov. 2006 By Fred Reed ° Nov. 1 1923, Frank Duffield publishes "Obsolete Notes With Portrait of Lincoln" in The Numismatist; 1928, Last large size currency backs printed; Nov. 2 1864, Farmers Bank of Rustico, Prince Edward Island, issues French/English denomi- nated notes engraved and printed by ABNCo.; 1983, NASCA sells proof notes from estate of early bank note engraver Abner Reed; Nov. 3 1852, Banknote engraver William F. Ford dies; 1944, Minneapolis Fed Bank President Gary H. Stern born; 1992, New Zealand fifth series $50 and $100 notes issued; Nov. 4 1740, Massachusetts governor writes approvingly of notes put into circulation by Silver Bank scheme; 1870, Colonial paper money enthusiast Joshua I. Cohen dies; Nov. 5 1862, Chicago Evening Journal advertises to print "change checks" for customers; 2006, Washington, D.C. Capital Hilton hosts Banknote 2006; Nov. 6 1924, Winston Churchill becomes British Chancellor of Exchequer; 1984, first delivery Series 1981A 5100 FRN; 2001, Fed reduces interest to 1.5%, lowest level in 40 years; Nov. 7, 1912, Paper Money of the United States author Robert L. Friedberg born; 2004, "Feast the Eye, Fool the Eye" tromp l'oeil exhibit closes at Tulsa's Philbrook Museum of Art; Nov. 8 1862. U.S. Depositary Enoch T. Carson explains to Cincinnati merchants tardiness in issuing Postage Currency; 1930, Dealer-collector Aubrey Bebee weds Adeline Dorsey; Nov. 9 1886, Dealer and United States Notes author Wayte Raymond born; 1994, J.S.G. Boggs paper money exhibit opens at University of Pittsburgh; Nov. 10 1796, Jacksonian economist William M. Gouge, author of History of Paper Money and Banking in the United States, born; 1971, Last delivery of Series 1969 $5 FRN; Nov. 11 1862, W. Elliot Wooward holds numismatic auction in Roxbury, MA; 1918, NYSE closes to mark end of WWI, ticker tape confetti rains down on lower Manhattan; 1988, SPMC board OKs insertion of a membership brochure in BNR; Nov. 12 1959, M.H. Bolender auctions collection of CSA paper money; 1980, SPMC increases ad rates and adopts policy of prepayment for advertising in Paper Money; Nov. 13 1770, George Grenville, responsible for passage of the Stamp Act duties on American colonials in 1765, dies; 1861, Baptist minister Mark Watkinson suggests to Treasury that U.S. money recognizes the Deity; 1986, first St. Louis paper money show held; Nov. 14 1893, Ed Frossard stages "$100,000 uncurrent paper money" auction; 1960, Ed Rochette becomes Editor of Numismatic News; 1974, Last delivery 1969C $20 FRNs; Nov. 15 1867, first stock tickers between NYSE and member brokers; 1923, Germany circu- lates 200-billion mark note; 1934, early Fractional Currency collector Henry Russell Drowse dies; 1997, SPMC Board raises LM fee to $500; Nov. 16 1861, CSA reaches $2 million limitation on large denomination, interest-hearing trea- sury notes; 1973, Matt Rothert collection auctioned by Bowers & Ruddy; 1985, SPMC Board approves 25-year membership pins and establishes Tom Bain Memorial fund; Nov. 17 1702, American political economist Pelatiah Webster, who said "paper money pollut- ed the equity of our laws, and went far to destroy the morality of our people," horn; 1981, First delivery of Series 1981 $20 FRN; Nov. 18 1776, Continental Congress creates United States Lottery to draw in Continental Currency and fund military expenses; 1858, Thompson Bank Note Register and Counterfeit Detector published; Nov. 19 1862, New York stationer Leeds & Franklin sell card for mounting monetized postage stamps; 1960, Society of Medal, Token and Obsolete Paper Money (TAMS) organized; Nov. 20 1862, BEP engraving staff of three begins work; 1923, Germany freezes inflation rate of its mark at 4.2 trillion mark to the U.S. dollar; 2003, Lyn Knight sells Dean Oakes Collection of Series 1929 FRBNs; Nov. 21 1860, New York City's consolidated banks agree to form common fund of specie at the Clearinghouse with daily reconciliation; 2003, SPMC Board approves a Founder's Award as Society's highest honor; Nov. 22 1808, Traveler's check namessake Thomas Cook born in Derbyshire, England; 1837, Treasury Secretary Franklin MacVeagh born; 1982, SPMC insititutes New Member Recruitment program; Nov. 23, 1900, William Morton Meredith becomes BEP Director for second time; 1972, Harold Bowen, author of State Bank Notes of Michigan, dies; Nov. 24 1784, President Zachary Taylor, who appears on obsolete banknotes, born; 1986, Fort Worth, TX selected as site for the BEP's Western Currency Printing Facility; Nov. 25 1864, National Banks organized totalled 584, according to President Lincoln's annual message to Congress on Dec. 6th; 1979, NASCA owner George W. Ball publishes "Who really did lose Iran? A look at the Kissinger role" in the Boston Globe; Nov. 26 1807, Tennessee charters Nashville Bank, first in state; 1864, Chief of National Currency Bureau S.M. Clark submits annual report; 1990, Stanley Apfelbaum dies; Nov. 27 1806, Encased stamp issuer Fred Buhl born; 1932, SPMC member and dealer Lowell C. Horweclel born; 1932, Artist Will Low, Educational Note designer (FR 224-225), dies; 1968; first $100 U.S. notes delivered to Treasury; Nov. 28 1950, British East Caribbean Territories introduce dollar-denominated currency; 1979, Camden Company becomes SPMC printer; 2000, first China polymer note; Nov. 29 1820, Kentucky legislature establishes Bank of the Commonwealth of Kentuck wholly owned by the state; 1881, banknote company excutive Tracy R. Edson dies; 1987, British Museum "300 years of British Bank Note Design" exhibition closes; Nov. 30 1656, Stockholms Banco established; first European hank to issue banknotes in 1661; 1906, Ben Green auctions Hiram Deats Collection; 1935, M.H. Bolender sells Alexander P. Wylie paper money collection Part 1; ,OR A'Ll 'LlITTS IPUBELIC'ZZATE 47"7- L 679 MIMI J i-ne -44tIetes T- 13eor0-:, •L 6 7 9: J 12 81ticifigo,14;111 ) :.ti 3111.1EMOIEMILWIE NOW= RICA F 7 7 3 B F 773 os,..d6.4,6if.A.b Hlor • NOTE A THE UNITE iv sTATfis5 or' \k1gtoirA tmer t;ertes_ ... 3ErMX11011:11XCILIGIILIESLIIMILICIME 211" tWE ) TIIE' UNITED- STIVI1 .A TILLS NOTE IS LEGAL TENDERALL DEBTS. PUBLIC AND PRIVATE 448 November/December • Whole No. 246 • Paper Money wheresgeorge? followup By Fred Reed. AYEAR AGO IN OUR NOV/DEC 2005 ISSUE OF PAPER MONEY, I reported on the Where's George project of recording and tracking currency in circulation. In the interim, I have EMSed (enter, mark, spend) no new bills into the system. I also have had no new "hits" on bills I had entered earlier. So I guess all those notes have found their final resting places by now. There is news to report on what has happened in the interim, however. I have nabbed three "wheresgeorge.com " notes that others have put into the sys- tem. Current totals georgewide are about 3 million users and 89 million bills currently in the system, totalling $498,311,522. My current "hit rate" is 18%, and a rank compiled as a "George Score" in the 83rd percentile, pretty good if I do say so myself. A hit rate of 5.5% is typical, and io% considered excellent. + I "won" this bill at the recent Tom Bain auction June 16, 2006, during the SPMC breakfast at Memphis. I say I "won" because this prize was a set-up donated by fellow SPMC board member Judith Murphy. The note entered the system Dec. 15, 2004, in Fayetteville, NC, first hit the system a week later in Fayetteville, and was discovered nearly a year later in Winston-Salem, NC. I recently nabbed two georgenotes (center and bottom) EMSed by a dude in Tulsa, who has entered more than 4,000 bills into the system. Since Tulsa is only 90 miles uphill from where I am, I guess that shouldn't be too surprising. He entered this note Mar. 1, 2006, and I got it four months later. This note was entered in Tulsa June 9, 2006. It hit in Owasso, OK (16 miles away) two days later, and in Oklahoma City on July 17th. I got it 13 miles across town a few days later. BTW, I still have these three bills in my posses- sion and may spend them at the forth- coming St. Louis paper money show. Paper Money • November/December 2006 • Whole No. 246 449 On This Date in Paper Money History -- Dec. 2006 By Fred Reed ©, Dec. 1 1801, Thomas T. Tucker takes office as U.S. Treasurer; 1908, German government announces banking services to be provided by Post Office; 1942, Burton Saxton becomes Editor of The Numismatist; 1959, Story of Civil War Money copyrighted; Dec. 2 1862, CSA Treasury Note Bureau consolidates Confederate currency designs; 1863, Thomas Crawford's statue Freedom (FR 1-5) placed atop U.S. Capitol; Dec. 3 1828, Register of Treasury Noah Lemuel Jeffries born; 1897, beginning of Bruce- Roberts combined tenure as Register and Treasurer; Dec. 4 1869, Series 1869 $100 U.S. note (FR 168) depicting Lincoln debuts; 1974, U.S. Treasurer given responsibility for U.S. Savings Bond division; Dec. 5 1842, Bank of Louisiana resumes specie payments; 1969, Stack's sells Arnold Perl EPS collection; 1980, Bank of Canada's Canadian Currency Museum opens to public; Dec. 6 1864, Lincoln names Salmon P. Chase Chief Justice of the U.S.; 1926, teature film Money to Burn released to public; 2002, Treasury Secretary Paul H. O'Neill resigns; Dec. 7 1886, first in-line Treasury signatures approved on plates of National Currency; 1989, State Bank of Soviet Union circulates 3-ruble marking Armenian earthquake of 1988; Dec. 8 1727, Royal Bank of Scotland issues its first banknotes; 1999, current Paper Money Editor Fred L. Reed III's tenure begins; Dec. 9 1865, NYSE moves to 10 Broad Street; 1876, CSA Treasury Secretary George A. Trenholm dies; 2005, John Albanese of Archival Collectibles announces purchase of American Bank Note Co. archives, including estimated 300,000 dies and plates; Dec. 10 1810, Stockholders in Bank of the United States petition for renewal of bank's charter; 1890, Superintendent of National Currency Bureau Spencer M. Clark dies; Dec. 11 1865, U.S. Congress considers imposing felony charges on anyone who sells Confederate currency, with penalties of lengthy prison time at hard labor and fines; 1932, Innovative bank robber Willie Sutton escapes from prison; Dec. 12 1776, Continental Congress authorizes Robert Morris to borrow money for the Navy; 1982, New York City armored car heist nets theives $9.8 million; Dec. 13 1797, German author Heinrich Heine, who said "Money is the god of our time," born; 1935, cancelled Gold Certificates pitched from fire-ravaged Treasury storage facility; Dec. 14 1855, Florida Legislature charters Bank of the State of Florida; 1970, Secret Service threatens Time Inc. with prosecution for reproducing part of a FRN in color; Dec. 15 1928, last Large Size currency faces printed; 1890, plaster original of Crawford's Freedom given to the Smithsonian Institution; Dec. 16 1919, Ohio Congressman and numismatist William A. Ashbrook's collection stolen; Get hack on Target Zero in on your customer. Advertise in Paper Money right here, 1903, SPMC President Larry Adams appoints Roger Durand Membership Chairman; Dec. 17 1878, paper money reaches par with specie in the U.S., gold coins return to circula- tion; 1971, Beginning of Connally-Banuelos combined tenure; Dec. 18 1816, banknote engraver Jacob Perkins patents watermarked paper; 1934, BEP begins printing $100,000 Series 1934 Gold Certificates for Fed Reserve Bank transactions; Dec. 19 1831, encased stamp inventor John Gault born; 1961, Britain adopts decimal coinage system; 2005, Clydesdale Bank issues new 20-pound note marking new building; Dec. 20 1948, U.S. Treasurer Angela (Bay) Buchanan born; 2002, currency speculator George Soros convicted of insider trading in Paris courtroom; Catching attention = catching caS$Shl Readers will notice your logo on this page. Dec. 21 1863, National Bank Notes first issued to public; 1905, Congress accords Panama Canal Bonds circulation privilege for National Bank deposit; Dec. 22 1885, Frossard sells CSA note collection of collector-author William Lee; 1910, U.S. postal savings stamps first issued; Dec. 23 1785, paper money and U.S. Mint Chief Engraver Christian Gobrecht born; 1986, PCDA invites SPMC to be cosponsor of St. Louis Paper Money Show; Dec. 24 1776, Washington crosses Delaware River (FR 440-451) to surprise Hessians at Trenton, NJ; 2005, world paper money and MPC dealer Leo May dies; Dec. 25 1642, Mint Master Sir Isaac Newton, who appears on Bank of England notes, born; 1862, G.L. Cornell issues five-cent scrip "payable in a day or two or perhaps sooner"; Dec. 26 1814, NYC Common Council approves additional issue of $50,000 in small change bills; 1955, Unites States Paper Money author George H. Blake dies; Dec. 27 1878, American BNCo. consolidates National BNCo and Continental BNCo; 1945, International Monetary Fund and World Bank created; 1968, dealer Jim Kelly dies; Dec. 28 1862, R. Jones & Co. advertise Rebel note facsimiles in Cincinnati Daily Enquirer; 1992, IRS advisory letter confirms SPMC's non-profit tax exempt corporate status; Dec. 29 1864, CSA Congress extends funding of notes from Jan. 1 to July 1, 1865, ironically by then the war is over; 1983, SPMC President Larry Adams offers Editorship of Paper Money to Gene Hessler; Dec. 30 1829, Senate resolution to study a uniform national currency; 1833, antiquarian and Massachusetts Colonial paper money author Andrew McFarland Davis born; 2001, Colombia seizes $41 million in counterfeit U.S. currency; Dec. 31 1861, Horatio Taft records: "Banks in all the Cities and also the U.S. Treasury have suspended specie payments;" 1976, Coin World pressman "stop the presses" to change out B&W currency ad for an unlawful color currency ad in the Jan. 12, 1977 issue; 4. MI United State. 1,1■ rul wpn tone} MI.: 1812 Gene Hessler and Carlson Chambliss ..27.51.?•B•.,! .GsBEBIG tiNgift010411 ra"'. 15.% e.,New Data • Features • Full Values • Now with Friedberg numbers cos SeN enth Edition with Foreword b' Mania Gengt, kc The Works of Raphatii. P. o 5,55de 3n4S.C....5.1■G.G, 11.16,24. snatch.. linandi5 Ea noon tom Con 0.nonni4onl B.n. 1.10B neut. 5 Voloonerfinn 6502 anO Burt•,' OnaOacn rpgtTa.wB4al CONIC:i01. (755. Unne.ity Smton, Con.erate Rao and S.1 -pcBal Colinc.n5 Ouna Unneordiy. nh.gutyhd Ednedin4 4c4ted mroroli.BoG Sdnehar Tnn- TEXAS CURRENCY: A CATALOGUE 1813-1868 by JOSEPH D. OLSON 450 November/December • Whole No. 246 • Paper Money New references target U.S., Confederate & Texas issues The Comprehensive Catalog of U. S. Paper Money The Comprehensive Catalog of U.S. Paper Money, 7th ed., by Gene Hessler and Carlson Chambliss (BNR Press, 2006) ANYONE FAMILIAR WITH GENE HESSLER'S SIXexcellent previous editions of this standard catalog will be pleasantly surprised with its new larger incarnation, and the fine additional information provided by co-author Carlson Chambliss. Its publisher bills this edition as "all new," and while that's not quite the case (it is still organized awkwardly by denomination rather than currency class), it is substantially revamped, reformatted, and infused with commentary that builds on the previous edition's base. Chambliss is the new coauthor and general editor (also author of U.S. Paper Money Guide and Handbook) and his fresh eye supplements the scholarship of Hessler. Chambliss brings real world market information, price structure and commen- tary that distinguished his previous book. As a collector and sometime book author myself, the thing that most amazes me about this work is the depth of knowledge its co-authors exhibit. Compared to other catalogs on the federal series, this book provides historical info not readily available anywhere. Helpful census data from Martin Gengerke's research, as well as info from Don Kelly's work on nationals, and that of other specialists (this author included) is also provided. This edition also incorporates Friedberg numbers, a big plus. In addition to federal issues and nationals, also covered are speci- mens, encased stamps, postage envelopes, souvenir cards, errors, 1812-1860 issues, MPCs, and engravers and designers. While I wouldn't call this book a "must have," I would say that ANYBODY who collects any series within its purview would be silly not to pony up and buy it, and READ it. This book demands your attention, not just a prominent place on your bookshelf. It is flat out that good! The book is in a new larger format, eight by 10 inches, 672 pages, and priced in paper back at a bargain $32 plus $4 P&H. Inquires may be made to BNR Press, 132 E. Second St., Port Clinton, 011 43452. -- Fred Reed The Works of Raphael P. Minn, photographed, edited and activated by George Tremmel, Bob Schreiner and Tom Carson. A S A CONFEDERATE CURRENCY RESEARCHER .4..for more than 30 years, this release is probably the most welcome addition to my library since I got my first "Red Book" in 1956. - This DVD format includes "Records and Correspondence of the Confederate Treasury," and "Financial Extracts from the Confederate Congressonal Records." As anyone who has ever toiled over the musty contemporary volumes of the CSA Congressional documents can tell you, this is a grad- uate student's dream come true. The DVD is not only not smelly, but its 5,800 pages are portable and searchable as well! Also included are five volumes of CSA bonds and curren- cy collected by Raphael P. Thian. Making these unique refer- ences available to anyone -- not just those willing and able to trek to Duke University in North Carolina -- means this com- pendium is valhalla. Thian had the pick of the litter in form- ing his Confederate collections, so notes are pretty much the best available from those impounded by the U.S. government following the Civil War. The DVD is priced at $85 (plus $7.44 sales tax for Tennessee residents), and may be ordered from information technology guru Tom Carson, 5712 N. Morgan Lane, Chattanooga, TN 37415. -- Fred Reed Texas Currency: A Catalog 1813-1868 by Joseph D. Olson (Corporate Image, 2006) 'THIS IS CERTAINLYthe most complete Texas volume ever pub- lished, listing all Texas notes known. It is also the first book to integrate Texas history into paper money collect- ing. Olson's book features a new logical numbering system, according to its author, with up-to-date rarity and valuations. The author is Texas Numismatic Association president. Contributors include John Rowe, Huston Pearson, Hugh Shull and Richie Self. In addition to excellent photos, this hardbound 204-page work has much historical info on signers and issuers, and a helpful index. The book is distributed by Texas Numismatic Heritage Press. Memphis show price was $65; call 1-800-865- 3562 for current pricing. -- Fred Reed We are proud to continue the numismatic legacy begun in 1933 Specializing in Quality and Rare U.S. Currency U.S. Large Size Fractionals U.S. Small Size Nationals National Gold Bank Notes Kagin's -- an established name for conserva- tive grading of quality notes. We specialize in building U.S. currency collections of premium quality and rare notes. Favorable terms to suit your individual needs. 98 Main Street #201 Tiburon, CA 94920 1-888-8KAGINS www.kagins.com You are invited to visit our web page www.kyzivatcurrency.com For the past 8 years we have offered a good selection of conservatively graded, reasonably priced currency for the collector All notes are imaged for your review National Bank NoteS LARGE SIZE TYPE NOTES SMALL SIZE TYPE NOTES SMALL SIZE STAR NOTES OBSOLETES CONFEDERATES ERROR NOTES TIM KYZIVAT (708) 784-0974 P.O. Box 451 Western Sprints, IL 60558 E-mail tkyzivat@kyzivatcurrency.com Paper Money • November/December 2006 • Whole No. 246 United States Paper Money special selections for discriminating collectors Buying and Selling the finest in U.S. paper money Individual Rarities: Large, Small National Serial Number One Notes Large Size Type Error Notes Small Size Type National Currency Star or Replacement Notes Specimens, Proofs, Experimentals Frederick J. Bart Bart, Inc. webeite: www.executivecurrency.com (586) 979-3400 PO Box 2 • Roseville, at 48066 e-mail: Bart@executivecurrency.com 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 451 To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. OUR MEMBERS SPECIALIZE IN CONFEDERATE CURRENCY They also specialize in Large Size Type Notes, Small Size Currency, National Currency, Colonial and Continental Currency, Fractionals, Obsolete Notes, Error Notes, MPC's, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money .. . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of OVER 100 DEALERS in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA • Hosts the annual National and World Paper Money Convention each fall in St. Louis, Missouri. This year's show will be held Nov. 16-18, 2006 at the St. Louis Airport Hilton Hotel. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each June at the Memphis Paper Money Convention, as well as Paper Money classes at the A.N.A.'s Summer Seminar series. • Publishes several "How to Collect" booklets regarding currency and related paper items. Availability of these booklets can be found in the Membership Directory. • Is a proud supporter of the Society of Paper Money Collectors. The Professional Currency Dealers Association For a FREE copy of the PCDA Membership Directory listing names, addresses and specialties of all members, send your request to.. PCDA James A. Simek — Secretary P.O. Box 7157 • Westchester, IL 60154 (630) 889-8207 • FAX (630) 889-1130 Or Visit Our Web Site At: vvvvw.pcdaonline.com 452 November/December • Whole No. 246 • Paper Money „t-,e,..)7•JtV•.0.7*I'V.,..=- '',.'-'"Ic..•=.1.?"..._2*-.7-0........,„,..._., - - - 14-01.11) -..rtia-i ,— ;e.ttitRg_tycv- - ■ . ...,.. • .-. ■......_ •N, . .. ., ,....,.. ,,...„; .i .1..(1 , ( . liti44;;-:.1A At.t r„:r o , . : . r'i .e.:„: . 4 4, ., 1. 1a.4gAtoi -. . N:;* -1,-:_litiNits- t ,:..) ,.. ' - - •-:, ... - . -- . ....,L.,..41.1r .g.r.,, !. !..:st. IL-Lv •......t.,4_0 ,,, _,,,L y..._ wa, UOtslaftS'" — s..attianZialLata, /:. Paper Money • November/December 2006 • Whole No. 246 453 Nationals were safe, Treasurer said so by James C. Ehrhardt r-N THE MID-1860S AMERICANS HAD LEARNED TO BE WARY of paper money issued by unfamiliar banks. Nearly a century's bitter experience with counterfeits and notes from non-existent or failed banks had reinforced a preference for hard money. Even the new-fan- gled federal National Currency traded at a substantial discount to gold. Citizens from all walks of life were confused by National Bank Notes. Were they from the local bank or from the U. S. government? Were the notes any good if the bank failed? The U.S. Treasury must have expended considerable effort to con- vince the public of the safety of National Bank Notes. One example of that effort is given below. The earliest National Bank in Mitchell County, IA was the Osage National Bank of Osage, charter #1618. It began operations on Feb. 1, 1866, almost three years after the start of the National Banking era. just three months later the bank was robbed of about $10,000 plus $9,000 in unissued, unsigned National Bank Notes. Of course this event received intense local publicity and was the topic of much conversation. A loss of this magnitude surely raised the question of whether the bank would collapse. Citizens wondered whether their bank notes would be honored. West Mitchell, a small village (1880 population = 307) about four miles from Osage, had an enterprising newspaper editor named T.M. Atherton. His paper, the Mitchell County Press, had rapidly gained a substantial readership in the surrounding communities. He printed a number of stories about the robbery and the pursuit of the thieves. A month after the robbery, editor Atherton printed the following letter dated May 10, 1866, from Francis E. Spinner, Treasurer of the United States, whose remarkable signature graced the notes of the period. The letter states that it is in response to an inquiry received by Mr. Spinner. It is not clear if Mr. Atherton or another local had made the inquiry. Possibly, the purported inquiry may have been a rhetorical device used by Treasurer Spinner. T.M. Atherton, editor of Mitchell County Press. Osage National Bank was the first bank in Mitchell County, IA to receive a national charter. West Mitchell, Iowa 454 November/December • Whole No. 246 • Paper Money Whatever the origin of the letter, its prominent placement in the paper suggests that the editor felt strongly about his readers' need for reassurance: Dear Sir: Your letter of the 10th inst. has just now been received. You ask to what extent is the government liable for the redemption of notes of National Banks. I answer: To the full nominal face of every note issued by the Controller of the Currency to a bank and by the bank put into circulation. You ask: 'Should the bank deposits with the United States Treasurer to secure the circulating notes with the banks depositing them be inadequate to the redemption of the notes of the bank, by the reason of the decline of the securities deposited, is the government hound to redeem the notes at par? The 47th section of the National Currency act only gives the right to forfeit all the securities held for any deficiency; the government has a first and paramount lien upon all the assets of a defaulting hank. I therefore answer this question affirmatively. You ask again: 'Could the absolute failing of a National Bank impair the value of the circulating note of the bank making such failures?' I answer No. On the con- trary the notes of a National Bank that has failed are rather better than worse of a bank in good standing if away from the business centers of the country, for the reason that the Treasurer of the United States becomes the cashier of each defaulting bank, and will through his assistance and all other govern- ment officers, redeem such circulation. You ask fourth, 'Are the notes of the United States Treasury, beyond the fact of their being legal tenders, a greater security to the holders than the currency of the National Banks.' The United States legal-tender notes afford no greater security to the holder than the notes of National Banks. The only real difference between the two, is that while the latter are only a legal-tender from, and to the government, the former are such legal tender from, and to all parties, whether municipalities, corporations or indi- viduals. Very respectfully yours, F.E. Spinner, Treasurer" Treasurer Spinner makes several points in his discussion to convince readers of the safety of National Bank Notes. He specifies that notes eligible for redemption must meet two criteria: (1) they must have been issued by the Controller of the Currency; and (2) they must have been put into circulation by the bank. Notes stolen before their release by the bank, such as those from the Osage robbery, were not valid. His answer to the fourth question high- lights the original difference in legal tender status of the notes compared to other governmental issues, which is fre- quently overlooked by collectors. Most interesting is his argument that notes of a failed bank may be better than notes of a bank in good standing. I don't understand this argument (other than his assurance that he would use all government offices to redeem notes), but whatever the logic of the reasoning, it would seem to reduce the strength of his effort to convince the public to accept these new notes. Ultimately the Treasury's educational efforts were quite successful. A high degree of safety and the public's overwhelming need for an increased supply of money led to the widespread adoption of the new currency. Economic growth was promoted in all parts of the country, eventually leaving behind much interesting material for collectors and scholars to pursue. Bibliography Mitchell COUlltY Press, vol. 2, no. 7, Thursday, June 14, 1866, West Mitchell, Iowa. Paper Money • November/December 2006 • Whole No. 246 455 * * * * * * * * * * * * * * * * * * * * * * * * NUMISMANIA RARE COINS P.O. BOX 847 -- Flemington, NJ 08822 * Office: (908) 782-1635 Fax: (908) 782-6235 * Jess Lipka, Proprietor - V"' 5 •s ir 4 • 1Irxi= B nt...V(1111Y11"i/ EC/ „jrz,,,, K333872) ..hti,-,- ,/, - ://i:7, (-6Zr.011.2 4A.T;i ( .- t4 * :-.0 ' - -', , ,``-'1 .4 —i-i.-- .. AP- t • . t , ft', v 04. Arkt*iii 1M . 17>r