Paper Money - Vol. XXVIII, No. 4 - Whole No. 142 - July - August 1989

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00 0 LIBERTY VOL. XXVIII No. 4 WHOLE No. 142 HAWAII $10 GOLD CERTIFICATE Standard Catalog of United States Paper Money 7th edition By Chester L. Krause and Robert F. Lemke Robert T. Wilhite, editor 192 pages, 8 1/2 x 11, hardbound, $19.95 Complete coverage for 175 years of official paper money circulated by the Federal Government. Listings for more than 5,500 currency items provide 14,000 market values, in up to three grades. More than 600 photos for easy identification. Standard Catalog of World Paper Money General Issues 5th edition By Albert Pick Colin R. Bruce and Neil Shafer, editors 1088 pages, 81/2 x 11, hardbound, $45.00 "The" reference book for internationally circulated government legal tender from throughout the last 300 years. Coverage encompasses the 18th through 20th centuries. More than 21,000 notes listed, with more than 9,600 illustrations to facilitate quick and accurate attribution of issues. Your Paper Money Reference Center The Standard Catalog of United States Obsolete Bank Notes, 1782-1866 By James A. Haxby Four volumes, 8 1/2 x 11, hardbound More than 77,000 bank notes are listed! Each listing is accompanied by catalog number; denominations of issue; engraver identification; issue dates as engraved or hand-written on the notes; overprint colors; and where no photo is available, a detailed description. More than 15,000 photos, with many notes pictured for the first time anywhere. Prices are listed for each note. So krause ublications 700 East State St. Iola WI 54990 715-445-2214 Mail with payment to Krause Publications, Book Dept. ZBH, 700 E.State St., Iola, WI 54990 Send me copies of the Standard Catalog of Obsolete Bank Notes, 1782-1866, at $195.00 per 4 volume set. Send me copies of the Standard Catalog of World Paper Money, Vol. II, General Issues at $45.00 per book. Send me copies of the Standard Catalog of U.S. paper Money, 7th ed. at $19.95 per book. (U.S. addreses send $2.50 per book shipping; Obsolete Bank Notes price includes shipping. Foreign addresses send $5.50 per book shipping; $18.00 for Obsolete Bank Note set.) ) Check or money order (to Krause Publications) ( ) MasterCard ( ) VISA 11 MasterCard/VISA customers call toll-free, 800-258-0929, Dept. ZBH, 8 a.m.-5 p.m. CST, Monday-Friday ZBH1 Zip Amount for books $ Shipping $ Total Amount Enclosed $ Name Address City State Credit Card No. Expires: Mo. Yr. Signature L $195.00 Per 4 volume set . SOCIETY OF PAPER NIONEY COLLECTORS 07,3M %Z. Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. XXVIII No. 4 Whole No. 142 JULY/ AUG. 1989 ISSN 0031-1162 GENE HESSLER, Editor P.O. Box 8147 St. Louis, MO 63156 Manuscripts and publications for review should be addressed to the Editor. Opinions expressed by the authors are their own and do not necessarily reflect those of SPMC or its staff. PAPER MONEY re- serves the right reject any copy. Deadline for copy is the 10th of the month preceding the month of publication (e.g., Feb. 10th for March/April issue). Camera-ready copy will be accepted up to three weeks beyond this date. IN THIS ISSUE THE KOSCIUSZKO INSURRECTION AND THE EARLIEST POLISH BANK NOTES OF 1794 by Dr. Andrej Mikolajczyk 109 TRADING IN THE ENEMY'S CURRENCY by Everett K. Cooper 112 THE GREEN GOODS GAME by Forrest Daniels 115 LOOKING CLOSELY AT PORTRAITS OF DOM PEDRO II by Gene Hessler 116 PAPER COLUMN MARY M. COSTELLO AND THE FIRST NATIONAL BANK OF TOMBSTONE, ARIZONA by Peter Huntoon 118 RAILROAD NOTES & SCRIP OF THE UNITED STATES, THE CONFEDERATE STATES AND CANADA by Richard T. Hoober 127 SYNGRAPHIC VIGNETTES by Robert H. Lloyd 129 SOCIETY FEATURES AWARDS AT MEMPHIS 129 MONEY MART 130 ON THE COVER: Liberty by Alfred Jones, is one of three vig- nettes that appears on the $10, Republic of Hawaii gold certificate. A souvenir card, just issued, that displays this design can be ordered from American Bank Note Commemoratives, Newfane, VT 05345 -0420. The cards are $7.50 each. Inquiries concerning non-delivery of PAPER MONEY should be sent to the secretary; for additional copies and back issues contact book coordinator. Addresses are on the next page. Paper Money Whole No. 142 Page 105 PAPER MONEY is published every other month beginning in January by The Society of Paper Money Collectors. Sec- ond class postage paid at Dover, DE 19901. Postmaster send address changes to: Bob Cochran, Secretary, P.O. Box 1085, Florissant, MO 63031. © Society of Paper Money Collectors, Inc., 1987. All rights reserved. Repro- duction of any article, in whole or in part, without express written permission, is prohibited. Annual Membership dues in SPMC are $20; life membership is $300. Individual copies of PAPER MONEY are $2.50. ADVERTISING RATES SPACE Outside 1 TIME 3 TIMES 6 TIMES Back Cover $152 $420 $825 Inside Front & Back Cover $145 $405 $798 Full Page $140 $395 $775 Half -page $75 $200 $390 Quarter -page $38 $105 $198 Eighth -page $20 $55 $105 To keep rates at a minimum, advertising must be prepaid in advance according to the above schedule. One-half of amounts in shaded area may be paid six months after initial payment. In exceptional cases where special artwork or extra typing are required, the advertiser will be notified and billed extra for them accordingly. Rates are not commissionable. Proofs are not supplied. Deadline: Copy must be in the editorial office no later than the 10th of the month preceding issue (e.g., Feb. 10 for March/April issue). Camera-ready copy will be accepted up to three weeks beyond this date. Mechanical Requirements: Full page 42 x 57 picas; half-page may be either vertical or hor- izontal in format. Single column width, 20 picas. Halftones acceptable, but not mats or stereos. Page position may be requested but cannot be guaranteed. Advertising copy shall be restricted to paper currency and allied numismatic material and publications and accessories related thereto. SPMC does not guarantee advertisements but accepts copy in good faith, reserving the right to reject objectionable material or edit any copy. SPMC assumes no financial responsibility for typographical errors in advertisements, but agrees to reprint that portion of an advertise- ment in which typographical error should oc- cur upon prompt notification of such error.\titt All advertising copy and correspondencele, should be sent to the Editor. Society of Paper Money Collectors OFFICERS PRESIDENT Roger H. Durand, P.O.Box 186, Rehoboth, MA 02769 VICE-PRESIDENT Richard J. Balbaton, 116 Fisher Street, N. Attleboro, MA 02760 SECRETARY Robert Cochran, P.O. Box 1085. Florissant, MO 63031 TREASURER Dean Oakes, Drawer 1456, Iowa City, IA 52240 APPOINTEES EDITOR Gene Hessler. P.O. Box 8147, St. Louis, MO 63156 MEMBERSHIP DIRECTOR Ron Horstman, P.O. Box 6011, St. Louis, MO 63139 BOOK SALES COORDINATOR Richard Balbaton, 116 Fisher Street, N. Attleboro, MA 02760. WISMER BOOK PROJECT Richard T. Hoober, P.O. Box 196, Newfoundland, PA 18445 LEGAL COUNSEL Robert J. Galiette, 10 Wilcox Lane, Avon, CT 06001 LIBRARIAN Walter Fortner, P.O. Box 152, Terre Haute, IN 47808-0152. PAST-PRESIDENT Larry Adams, P.O. Box 1, Boone, IA 50036 BOARD OF GOVERNORS Nelson Page Aspen, Richard J. Balbaton, Charles Colver, Michael Crabb, C. John Ferreri, Milton R. Friedberg, Gene Hessler, Ronald Horstman, William Horton, Jr., Robert R. Moon, Dean Oakes, Austin M. Sheheen, Stephen Taylor. Frank Trask. Wendell Wolka. The Society of Paper Money Collectors was organ- ized in 1961 and incorporated in 1964 as a non- profit organization under the laws of the District of Columbia. It is affiliated with the American Numis- matic Association. The annual meeting is held at the Memphis IPMS in June. MEMBERSHIP - REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. JUNIOR. Applicants must be from 12 to 18 years of age and of good moral character. Their application must be signed by a parent or a guardian. They will be preceded by the letter "j". This letter will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or to vote. Members of the ANA or other recognized numis- matic societies are eligible for membership. Other applicants should be sponsored by an SPMC mem- ber or provide suitable references. DUES - Annual dues are $20. Life membership, payable in installments, is $300. Members who join the Society prior to Oct. 1st receive the magazines already issued in the year in which they join. Mem- bers who join after Oct. 1st will have their dues paid through December of the following year. They will al- so receive, as a bonus, a copy of the magazine issued in November of the year in which they joined. PUBLICATIONS FOR SALE TO MEMBERS BOOKS FOR SALE: All cloth ALABAMA OBSOLETE NOTES & SCRIP, 1984 Rosene $12.00 Non-member price $15.00 ARKANSAS OBSOLETE NOTES & SCRIP, 1985 Rothert $17.00 Non-member price $22.00 FLORIDA PAPER MONEY, ILLUSTRATED HISTORY OF, (softcover) 1980 Cassidy $16.00 Non-member price $19.50 INDIANA OBSOLETE NOTES & SCRIP, 1978 Wolka $12.00 Non-member price $15.00 INDIAN TERRITORY/OKLAHOMA/KANSAS OBSOLETE NOTES & SCRIP, 1980 Burgett and Whitfield $12.00 Non-member price $15.00 IOWA OBSOLETE NOTES & SCRIP, 1982 Oakes $12.00 Non-member price $15.00 MAINE OBSOLETE PAPER MONEY & SCRIP, 1977 Wait $12.00 Non-member price $15.00 bound books are 8 1/2 x 11" MINNESOTA OBSOLETE NOTES & SCRIP, 1973 Rockholt $12.00 Non-member price $15.00 NEW JERSEY'S MONEY, 1976 Wait $15.00 Non-member price $20.00 PENNSYLVANIA OBSOLETE NOTES AND SCRIP (396 pages), Hoober $28.00 Non-member price $29.50 RHODE ISLAND AND THE PROVIDENCE PLANTA- TIONS, OBSOLETE NOTES & SCRIP OF, 1981 Durand $20.00 Non-member price $25.00 TENNESSEE-THE HISTORY OF EARLY TENNESSEE BANKS AND THEIR ISSUES, 1983 Garland $20.00 Non-member price $29.50 TERRITORIALS-A GUIDE TO U.S. TERRITORIAL NATIONAL BANK NOTES, (softcover) 1980 Huntoon $12.00 Non-member price $15.00 VERMONT OBSOLETE NOTES & SCRIP, 1972 Coulter $12.00 Non-member price $15.00 Write for Quantity Prices on the above books. ORDERING INSTRUCTIONS 1. Give complete description for all items ordered. 2. Total the cost of all publications ordered. 3. ALL publications are postpaid except orders for less than 5 copies of Paper Money. 4. Enclose payment (U.S. funds only) with all orders. Make your check or money order payable to: Society of Paper Money Collectors. 5. Remember to include your ZIP CODE. 6. Allow up to six weeks for delivery. We have no control of your package after we place it in the mails. Order from: R.J. Balbaton, SPMC Book Sales Dept., P.O. Box 911, N. Attleboro, MA 02761-0911 Library Services: The Society maintains a lending library for the use of the members only. For further information, write the Librarian - Walter Fortner, P.O. Box 152, Terre Haute, IN 47808-0152. Page 106 Paper Money Whole No. 142 Paper Money Whole No. 142 Page 107 U.S. PAPER MONEY COLLECTORS! Bank Note Reporter is for you! L U.S. paper money collectors! Get more news of your particular collecting interest, every month, in Bank Note Reporter. Bank Note Reporter is the only independently produced publication that blankets the entire paper money spectrum. You'll get all the news you need. And, you'll find it a convenient way r I Mail to: Bank Note Reporter Circulation Dept. 700 E. State St. Iola, WI 54990 Enter my Bank Note Reporter subscription as follows: ( ) New ( ) Renewal/Extension (attach your mailing label) ( ) 1/2 year (6 issues) $12.95 Foreign addresses send 17.95. Payable in U S. funds. ( ) Send me a free sample issue (U.S. addresses only) ( ) Check or money order (to Bank Note Reporter) to keep current on U.S. and world notes, plus all other related fiscal paper. Bank Note Reporter is your one-stop paper money information source. Make sure you're in the know, by entering your subscription now. Take advantage of our special half-year offer. Or request a free sample issue (U.S. addresses only). Name Address City State Zip ( ) MasterCardNISA Credit Card No Expires: Mo. Yr Signature Note: Charge orders will be billed as Krause Publications. ccR = HARRY IS BUYING NATIONALS — LARGE AND SMALL UNCUT SHEETS TYPE NOTES UNUSUAL SERIAL NUMBERS OBSOLETES ERRORS HARRY E. JONES PO Box 30369 Cleveland, Ohio 44130 216-884.0701 #00000001, #11111111 thru 99999999 and #10000000, & #100,000,000 WANTED Large and Small Size Notes, 1862-1988 series, $1-$100 denominations CALL TOLL FREE: 1-800-727-8288 Mon.-Fri. Mike Abramson SPMC #2653, ANA, PMCM P.O. Box 6105 Duluth, MN 55816 Oregon Paper Money Exchange , cOlLOirt4 naive zo, ( /4, V ONE 111:17111EDINALLItti //4 &V—/ - C.01.011,1,0 MIN DEVI: LOPING CI 5S1 VANY. eve/je Po ec -,,,,irk///ir rzt0e, //, 4,ev• /'? /*e. ..11/71,/eA 7W4, • "Ikea, •,-ham We Buy and Sell Western Material STOCKS, CHECKS, ILLUSTRATED BILLHEADS PROMPT SERVICE-GUARANTEED AUTHENTICITY WE SOLICIT YOUR WANT LIST CURRENT LIST FOR $1.00 - REFUNDABLE Send For Our Catalog Today! OREGON PAPER MONEY EXCHANGE 6802 S.W. 33rd Place, Portland, OR 97219 (503) 245-3659 (EVES) Page 108 Paper Money Whole No. 142 BUYING and SELLING PAPER MONEY U.S., All types Thousands of Nationals, Large and Small, Silver Certificates, U.S. Notes, Gold Cer- tificates, 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 47906 SPMC #2907 ANA LM #1503 Paper Money Whole No. 142 Page 109 The Ko4ciuszko Insurrection and the earliest Polish Bank Notes of 1794 by DR. ANDREJ MIKOLAJCZYK Clasped Hands, engraved by G.F.C. Smillie, symbolizes the friendship shared by the people of Poland and the United States, a friendship that has endured over two centuries. (Dr. Mikoi'ajczyk is the Director of the Museum of Arche- ology and Ethnography in Lodz, Poland. He also serves as editor of the museum's Journal, PRACE I MATERIALY.) G ENERAL TADEUSZ KOSCIUSZKO is much better known inAmerica as one of the Poles who joined the war for in-dependence of the United States of America than the politician who, after his return home, served in the Polish army as a major general, and then, as the commander-in-chief of the national insurection, introduced paper money in Poland. T. Kosciuszko, skilled military engineer who held the rank of colonel, arrived in America in the autumn of 1775 and soon dis- tinguished himself in the service, especially when fortifying Sara- toga where General Burgoyne had to surrender British troops to American General H. Gates on October 17, 1777. T. Kos- ciuszko, who received the rank of brigadier-general, was not the only Polish officer engaged in the American War of Independ- ence. General Kazimierz Pulaski commanding the Pulaski Legion (including Polish captains, Balderski, Kotkowski, Litow- ski, Rogowski, and Lieutenant Jerzmanowski) distinguished himself as a cavalry offier in the Battle of Savannah in late 1778: one year later he died in action. K. Pulaski's military career began in the late 1760s when Poland, ruled by the newly elected King Stanislaw August Po- niatowski (1764-1795), had no other way to escape from the political and economic stagnation than to instigate decisive reforms. The monetary reform of 1766 introduced a new coinage standard to the nation and withdrew debased money, both domestic and foreign, from circulation. In the reformed coinage the traditional unit, the Polish zloty (4), remained, but its previous division into 30 groszy (gr) was applied only to copper coins while the silver was now equal to 4 gr. The conventional mint-foot was chosen and the talers contained 23,9812 g of fine silver. The following silver denomiations were introduced: 8 gr. (2 zlp), 4 gr. (1 zlp), 2 gr. (1/2 zlp) and 1 gr.; and in copper 3 gr. (trojak), 1 gr. (grosz), 1/2 gr. and shilling (szelag). In 1787 the silver coins were slightly reduced and the billon 10 gr. piece was added, and gold ducats were coined. The Warsaw Mint, established in 1765, took over most of the mint-output for the Crown. Two municipal mints in Gdansk and Torun operated only in the 1760s. Returning to the reforms one should say that the new trends didn't enjoy popularity among the conservative politicians and rich magnates who began to seek support from Poland's hostile neighbors. primarily Russia, who willingly and frequently inter- fered in Polish national affairs. Thus on February 29, 1768, in the small Podolian town, Bar, the confederation was established for the defense of Poland's freedom and independence. with a strong anti-Russian sentiment, and then—as the King represent- ed a very passive attitude toward the Russians—an anti- Poniatowski direction. One of the Bar confederate commanders was K. Pulaski. In response, the Russian army entered Poland to begin a long series of struggles with the confederates. In 1771 the last confederates' positions in Poland were liquidated by the Russian invaders. Many of the captured confederates were im- prisoned in Siberia. Others, like K. Pulaski, were compelled to leave Poland. A separate uprising of Hetman' Oginski in the Great Duchy of Lithuania was supressed by the Russian army under General Alexandr W. Suworow. Moreover the Russian Czarina, Cather- ine II, persuaded Prussia and Austria to conquer some pro- vinces of Poland, and on August 5, 1772, the first partition of Poland was signed in Petersburg, the capital of the Russian Em- pire. Catherine II warned the Polish King of further attempts at reforms in Poland during the meeting in Kaniow. Nevertheless, the reform movement in Poland was strong enough to lead to the so-called Four-Years-Diet (October 6, 1788 to May 29, 1792). The most important result of the Diet sessions was the Constitution that was finalized on May 3, 1791, expressing the democratic and progressive political and eco- nomic trends in the reconstruction of domestic affairs in Poland. The reaction was immediate: the home adversaries of demo- cracy and the Constitution settled down in Petersburg, and in Targowica (a small locality in the eastern corner of Poland) offic- ially proclaimed the confederation on May 14, asking Catherine II for military intervention. The Russians moved in four days later and—despite the brave efforts of a much smaller Polish army commanded by the King's nephew Prince Jozef Poniatow- ski in the Zielence battle and by General T. Kosciuszko in the Dubienka battle—proceeded as far as Warsaw. The next political step was the second partition of Poland sealed by Russia and Prussia on January 23, 1793. A small part of the country remained in Polish hands with the strong position of the pro- Russian renegades supported by Russian bayonets. The King joined the Targowica Confederation, which name became Paper Money Whole No. 142 10 groszy, PA9 500 zloty, PA6. All denominations, 5 - 1,000, had the same design. Page 110 synonymous with national treason. General T. Kosciuszko left Poland, but returned the following year. In such circumstances the insurrection broke out in Poland. The starting point was Kosciuszki's oath taken on March 24, 1794, in the Cracow market square. He appealed for national defense, and called all citizens of the Cracow voivodship 2 to take up arms. On April 4 the Polish army, supported by the peasant volunteers, under the command of T Kosciuszko, defeated the Russians in the Bottle of Raclawice. Two weeks later Warsaw was liberated from the Russians, and the next week the Polish insurgents liberated Wilno, capital of the Great Duchy of Lithuania, from Russian occupation. In early May a manifesto was proclaimed in Polaniec abolishing the personal serfdom of the peasants; in Warsaw the uprising broke out against the home followers of Russia and some of them were sentenced to death and executed. On May 10 T. Kosciuszko called the Supreme National Council (Rada Najwyzsza Narodowa) into being, which constituted itself on May 28. Unfortunately the situation worsened in June when the Poles were defeated near Szczekociny (Little Poland) by the Russian army and the Prus- sian troops who had seized Cracow in the middle of the month. 1 zloty, PA10 In such complicated conditions, on June 8 the Supreme Na- tional Council proclaimed the edict concerning the issues of the treasury notes amounting to 60 million zip, covered by the na- tional domains. It was the emergency issue as Poland was in the state of emergency. It is necessary to add that in 1794 the next change of the mint-foot' took place reducing the fineness of talers, silver 8 and 4 gr. and billon 10 and 6 gr. Other denomi- nations were not continued. The new edict contained some ex- planations of such decision: " . . . the will of immediate liberation of our Fatherland from alien violence ... in order to support the holy nation's uprising . ..". The notes, equal to the circulating currency, were intended to be withdrawn later by selling nation- al properties and realizing a minimum of ten million zlp one year after the issue and every following year under similar conditions. Five percent interest was also promised for both Polish citizens and foreigners. Under this edict it was obligatory that these notes be accepted. Anyone who refused the notes would be fined ten percent of the value for the first offense, 20 percent in the sec- ond instance and the entire amount for the third offense. Until the end of the war only 50 percent of taxes were allowed to be paid in notes, the other half in coins. The death penalty and confiscation of property were the penalties for forgery. A trea- BILf47 SICARBOWY Cztry Ztote Polskie Paper Money Whole No. 142 Page 111 4 zloty, PAll sury note board was established. In late June the board bought 200 reams of Dutch paper and the Warsaw printers P. Dufour and M. Groll were engaged. In August the notes were ready in the denominations as follows: 5 zlp 58,500 notes equal to 292,500 zip 10 zip 46,500 465,000 zlp 25 zlp 35,500 875,000 zlp 50 zlp 36,000 1,800,000 zlp 100 zlp 19,300 1,930,000 zlp 500 zlp 500 250,000 zlp 1,000 zlp 1.000 1,000,000 zlp The entire issue of treasury notes, dated June 8 and released on August 16, amounted to about 6.6 million zlp. The restricted number of 500 and 1,000 zlp notes make them very rare in nu- mismatic collections today. The entire set, including the unique specimen of the proof 1,000 zlp note and the uncut sheets of other denominations, is now in the possession of the Numis- matic Department of the Archaeological and Ethnographical Museum in Lodz. Every note bears, at the bottom, the hand- signed signatures of two (5 to 50 zip) or three (100 to 1000 zip) treasury commissars. In the upper part of the notes the Polish Eagle and Lithuanian Rider as well as the revolutionary symbols (a Phrygian cap crowning crossed arms that break the chain of captivity) are displayed. The center of the notes is filled with text. The watermarks are the initials B-S (Bilet Skarbowy - Treasury Note). The round seal, without color impressed next to the initials presents the inscription Wolnosc - Calosc - Niepod- leglosc (Liberty -Integrity - Independence). The backs are blank. Each denomination was printed on paper in different colors: 5 zip—pink or (rarely) light cream, 10 zip—white, 25 zlp —cream or orange-yellow, 50 zip—red-brown or light brown, 100 zip— light pink or pink, 500 zlp —light pink, 1000 zlp—light yellow. The unique proof 1,000 zlp note is light pink. In addition, on August 13 T. Kosciuszko ordered the addi- tional issue of small change denominations for the purpose of trade: 5, 10, 20 gr. and 1 zlp, limiting the amount of the new paper money to 6 million zip. The entire authorized amount was not issued; notes released equaled about 274 thousand zlp. The 1 zip notes were released on September 27, the 5 gr. notes on October 10 and finally the 10 gr. notes on October 20. All of them were printed on white, thick paper; on the backs were printed signatures of the treasury note commissar. The next edict of the Supreme National Council was pro- claimed on September 4. It concerned the issue of the treasury notes in two, new denominations: 2 and 4 zlp, totaling 8 million zlp. On September 27 of this amount only the 4 zlp notes amounting to 3,962,920 zip were released. They were printed on white, thick paper. The total of all treasury notes released was equal to 10,874,187 zlp against the planned sum of 74 million zlp. The nature of this emergency issue of paper money did not create sufficient confidence among the people who were obliged to ac- cept it. In fact, the notes circulated mostly in Warsaw. The political and military events in autumn did not lead to the acceptance of the currency innovations of the Supreme National Council. The short, temporary siege of Warsaw in early September was a re- sult of Prussian army advances. The uprising in the Great Poland' forced the Prussians to withdraw their troops from the outskirts of Warsaw. From the opposite direction the Russian army was on the move in order to crush the Polish resistance. On September 12 Wilno surrendered and fell into Russian hands. One month later, on October 10, the Russians defeated T. Kosciuszko in a desperate battle near Maciejowice, southeast of Warsaw. General T. Kosciuszko himself fell into Russian hands. General Tomasz Wawrzecki, designated by the Supreme National Council as the commander-in-chief of the insurrection, repelled the enemy's attacks for an entire month. However, on November 4 the Russian army under General A.W. Suworow seized Praga —a portion of Warsaw on the right bank of the Vis- tula river. Five days later the entire city of Warsaw was in Suwo- row's hands. A.W. Suworow, a very respected hero in the Soviet Union today, cast a bloody strain on his reputation by or- dering the slaughter of the Praga population. This massacre was an epilogue to the long years of foreign supremacy and repres- sion in Poland. The last Polish troops were defeated on Novem- ber 17 in the Battle of Radoszyce. In 1795 Poland was finally partitioned by her neighbors. Russia seized the eastern territories (463,200 km 2 ), Austria received the southern area (138,900 km 2) and Prussia the western regions including Warsaw (141,400 km 2 ). Imprisoned T. Kosciuszko was sent to Russia. Catherine's successor, Czar Paul, released him in 1796, but T. Kosciuszko never returned to his conquered Poland; he spent the rest of his life in exile in Switzerland. The third partition of Poland brought an end to the treasury notes; they were withdrawn from circulation on May 22, 1795, by Buxhoewden, the general gouverner in Warsaw. The notes introduced during the Kosciuszko Insurrection were nothing but a short episode in the monetary history of Poland prior to her partitioning. The idea of paper money was proposed in Poland even earlier during the reign of Stanislaw August Poniatowski, but neither the people nor the authorities had confidence in this kind of currency. As far as we know, only in the estate of one magnate in Bialaczow (near Opoczno in Kielce district) belong- ing to the Stanislaw Nalecz, the marshall of the Four-Year-Diet, (Continued on page 126) 'W//// /7/// /// //if/ IONE DOI LAR] V,V.4 Vic. k. • 4 it N Page 112 Trading in the Enemy's Currency by EVERETT K. COOPER T HE NEED to acquire and spend the paper money of anenemy during war time has always been practiced by theadversaries in the hostilities. The most obvious needs are the cloak-and-dagger operations that take place in the enemy's territory. This was certainly true during the period of the Ameri- can Civil War where travel and communication into enemy terri- tory was easily and routinely accomplished. Obviously the covert Confederate agent crossing into Maryland or Ohio could not pay for his travel and other expenses with a paper currency that carried the likeness of Jefferson Davis. The Northern agent traveling into Dixie perhaps found the Southerners more willing to accept the Yankee greenback, but it could arouse unneces- sary suspicions. Paper Money Whole No. 142 A passing itinerant preacher gave the merchants 5( on the dollar for their acumulations. They were pleased to redeem the rebel paper at any exchange rate, and the minister took it back to Virginia and invested it in real estate at a profit. The circula- tion of Yankee greenbacks in the Southern economy, however, was an accepted fact. The Confederate army would utilize cap- tured Yankee weapons and uniforms, so it was not abnormal to utilize Yankee money in the fragile Southern economy. The Union army invading the Confederacy would in one case forbid the circulation of Confederate money because it represented a de facto recognition of the rebel government. On March 29, 1863 the United States Military Department of the Cumberland, at Murfreesboro. Tennessee, issued their General Orders No. 63 which read: It has been ascertained that persons in this department are dealing in Confederate scrip, thus giving aid and comfort to the rebellion, by making its worthless paper an article of traffic. Any officer, soldier, camp follower, or citizen, within the limits of this department, who shall hereafter buy or sell Confederate currency or its counterfeits' will be arrested and punished.' U.S. $1 greenback dated August 1, 1862. Sometimes using the enemy's currency would help to bring home the bacon and catch the culprits selling that commodity. On April 18, 1863 Union Brigadier-General E. A. Paine wrote from Gallatin, Tennessee of a Yankee plot to catch some gullible Johnny Rebs: The history of the Civil War is replete with examples of these efforts by both sides to trade in the enemy's currency whether greenbacks or bluebacks. A survey of some of these incidents provides an interesting perspective in the use of paper money during the trying days of 1861-65. On September 27, 1862 a Confederate cavalry brigade commander, operating in the border state of Kentucky, sent a request to "Send me $300 in United States or Ken- tucky money to use in secret service."' The movement of military units, agents, and informers in and through the bluegrass state would have made this a normal and probably oft-made request. The public circulation of the enemy's paper money was never a practice or a problem in the Northern states. The minor excep- tion was on those occasions when Confederate soldiers went shopping during an invasion of the loyal states. The Southern soldiers were disciplined to pay for any purchases from Yankee merchants but payment could be in Southern money.' An un- usual example is the storekeepers of Chambersburg, Pennsyl- vania who had a surge of customers during the 1863 invasion of Pennsylvania. After the Confederates withdrew from Gettys- burg back to Virginia, the Chambersburg merchant's cash drawers were full of Southern money. They were in despair as to how they could convert it into currency that circulated locally. One of my scouts, who is a good detective, engaged [bought] two or three tons of bacon this week for the Southern army, the bacon to be delivered at certain points near the river. He is to pay 30 cents [per pound] in Confederate money. I shall send him back with some of that money, to make small payments, and have the bacon delivered at certain points, where I intend to seize it. The sellers are violent rebels.' How did the adversaries acquire the paper money of their op- ponent? Surprisingly neither government made an effort to counterfeit their enemy's paper currency as a means of eco- nomic warfare. During the Revolutionary War the British gov- ernment had counterfeits made of continental currency of the embryo United States. Most large-scale wars after the Civil War resorted to using counterfeits as a tactic. The souvenir facsimiles of Southern currency produced by Mr. Upham of Philadelphia was a private enterprise. During the Civil War each side ac- quired the enemy's paper money by a variety of means, but on September 21, 1863 the Yankees reported a large acquisition, by unspecified means. The following was communicated to the United States Secretary of War: I have just received intelligence of the capture ... of three rebel officers and a number of privates, $2,200,000 in Confederate funds, and very important rebel dispatches, all of which are now at Cairo [Illinois]. ONE )3 0 LLAR thinnataniamultaMin .11 1/2/4 _Am,or.ort,' it.11. 04.11,I . ////' R ( 1 M 31),': Paper Money Whole No. 142 The Secretary of War made an immediate response to this re- port by requesting the captured Confederate money be immedi- ately sent to Washington.' Organized military raids by the Confederates during the war would on occasion add to the supply of enemy currency held by the Richmond government. In August 1862 renowned Confed- erate cavalry leader General J.E.B. Stuart made a spectacular raid on the Union army near Warrenton, Virginia. At Catlett's Station the Confederates captured the headquarters of Union General John Pope's Army of Virginia. In his report prepared after the action, General Stuart stated that the capture included "public property to a fabulous amount." He was more specific later in the report to indicate that the capture included "money- chests." The memoir of a participant in the raid recalled more precisely that they had captured $500,000 in greenbacks and $20,000 in gold and that the funds were locked in solid iron safes, which were very difficult to open.' Confederates operating out of Canada in October 1864 con- ducted a raid on the banks of St. Albans, Vermont near the Ca- nadian border. The raiders carried away approximately $208,000 in greenbacks and banknotes from St. Albans. The net proceeds of this raid were used to fund the operations of the Confederate commission in Canada. Another well-known incident occurred on June 8, 1864 dur- ing a Confederate raid into Kentucky under the leadership of General John H. Morgan. When the raiders were in Mount Sterling, Kentucky several of the Southern soldiers looted the local branch of Farmers Bank of Kentucky of $60,000. The death of General Morgan a few months later, before he wrote his report of the action, left unanswered the legitimacy of the bank looting.' Page 113 General Robert E. Lee was concerned, according to a com- munication dated February 15, 1864, about escalating requests for funds by a between-the-lines agent named Langley.' Gen- eral Lee wrote: When last here he was paid $200 in Northern funds and $500 in Southern, for current expenses. It was before Christmas. Recently he has written to General Hill for $1,000 of the first and $1,500 of the latter. He professed not to want pay for services, but only enough to defray his expenses. Before I can make arrangements with him I must know more about him. " Illicit trade in cotton and supplies was difficult to control par- ticularly in the western Confederacy along navigable waters. Confederate Major-General Richard Taylor wrote from Alexan- dria, Louisiana on February 21, 1864, apparently unaware of the action of Congress on February 6th, that: The rage for cotton speculation has reached all classes of the people. Foreigners of every hue and of all religions are swarming over the land, and Confederate currency near the lines has ceased to have even a nominal value. I have ordered all persons coming within our lines arrested and sent here under guard, with their letters, papers, and all money other than gold or Confederate currency. Un- less the most stringent measures are adopted we shall soon have Federal currency—national or bank—the com- mon currency of the country to the entire exclusion of Confederate paper. 12 The United States War Department, without specifying the reason, issued an order on March 8, 1864 requiring all Confed- erate money in the hands of the army or government agents to be turned in: Confederate $1 issue dated Feb. 17, 1864. Clement Claiborne was a CSA Senator from Huntsville, Alabama (see PAPER MONEY No. 139, p. 11). The Confederate Congress, somewhat late in the war, saw the need to restrict the public use of Yankee money in the Southern economy. On February 6, 1864 Congress passed "An ACT to prohibit dealing in the paper currency of the enemy." The essence of the legislation was: no broker, banker or dealer in exchange, or person con- cerned in trade as a merchant, or vendor of merchandise of any description, or any other person, except within the lines of the enemy , shall buy, sell, take, circulate, or in any manner trade in any paper currency of the United States; Provided, That the purchase of postage stamps shall not be considered a violation of this act. That this act shall not be construed to apply to any person acting in behalf of the Government of the Confederate States, by special authority from the President, or any heads of departments.' General Orders No. 89 All Confederate bills, notes, or bonds in the hands of of- ficers or agents of the Government will be transmitted to the Adjutant-General of the Army, with a specified state- ment of how and from whom they were received. If cap- tured, the circumstances of the capture will be stated; and if any portion has been expended, the amount and mode of expenditure will be given. Commanding officers of de- partments, armies in the field, independent posts, regi- ments, and companies are charged with the execution of this order." Lieutenant-colonel John S. Mosby, the famed Confederate partisan cavalry leader, showed his resourcefulness in a letter dated March 26, 1864. Mosby has a need for some U.S. cur- rency but instead of requesting greenbacks he requested Con- federate currency: Page 114 I would be glad if you would furnish me with $2,000 secret-service money, as with my present opportunities I could use it greatly to the public advantage. In the event of getting it, I propose investing it in tobacco, and then converting it into greenbacks. This could be done without much loss in the differences of currency." A few months later, on October 14, 1864, Colonel Mos- by made a substantial acquisition of Yankee money, but it was distributed to individuals and not the government coffers. Near Kearneysville, West Virginia Mosby's com- mand stopped a westbound Baltimore & Ohio Railroad passenger train. Unexpectedly their catch yielded two U.S. Army officers carring payroll of about $168,000 in greenbacks. In accord with regulations the money did not go to Richmond but was divided among the members of Mosby's command; except Mosby declined a share. His- tory has dubbed this incident as "Mosby's Greenback To facilitate the purchasing of food supplies for the Confederate Army, which at times in border areas re- quired the use of Federal currency, the following order was issued on June 8, 1864: War Department, Confederate States of America Richmond, Virginia The Commissary General is authorized to purchase the paper currency of the United States for the use of his of- fice as occasion may require.' However, Secretary of War Seddon had to modify the order of June 8th with new instructions on October 20. 1864: War Department, Confederate States of America Richmond, Virginia I find that some inconvenience results from the competi- tion of several bureaus of this Department in the purchase of Federal currency, and in consequence I desire that all such purchases be made through one agent. I am in- formed that Captain Morfit, assistant quartermaster, from his position is required to buy large amounts of that cur- rency, and to avoid the evils resulting from competition it is deemed judicious that all bureaus shall employ him as their agent in procuring the Federal currency necessary to their operations.' Two days later, October 22, 1864, the Confederate War De- partment issued the formal guidelines to be followed in making such purchases of Federal currency: Special Orders No. 251 The Quartermaster-General will designate an officer of his department who shall be charged with the purchase of all currency of the United States which may be needed for the purpose of the Government. In making purchases of currency said officer shall conform to the rate of exchange which shall be established from time to time by the Quar- termaster-General. The currency thus purchased shall be issued only on the order of the Quartermaster-General, which shall prescribe the terms on which it shall be issued. It being expedient that there shall be but one purchaser of this currency, the wants of the other departments of the Government will, as far as practicable, be supplied under the foregoing regulations: 8 Captain Clarence Morfit, who was assigned the responsibility of purchasing Federal currency, was serving as an assistant quartermaster for prisoner of war camps and was located in Paper Money Whole No. 142 Richmond. It had been a responsibiity of his to serve as custo- dian of the funds belonging to prisoners of war. Any Federal currency owned by Union prisoners, either when captured or subsequently sent to them, was held in trust for them by the Confederate quartermaster. If the prisoner requested small amounts for personal use he could authorize the conversion of any Federal money in his account to be converted to Confeder- ate currency. The conversion was handled by Captain Morfit at the highest market exchange rates obtainable. If the prisoner did not request any withdrawal of his funds the Federal currency in his account was left intact. A strict accounting of these funds was maintained and any unconverted greenbacks remained in Cap- tain Morfit's strong-box and were not utilized by the Confederate government." When the prisoner was released any remaining funds were returned to him. The most bizarre episode recorded involving prisoner of war funds involved Colonel Abel D. Streight of the 51st Indiana. Streight led a raid of infantrymen mounted on mules into Ala- bama from April 11 to May 3, 1863. He was soon relentlessly pursued by Confederate cavalry under the command of Gener- al Nathan B. Forrest. Streight and his command were captured in Alabama on May 3rd. When captured, Colonel Streight had in his personal possession approximately $3,444, which he claimed to be personal funds. The money consisted of $2,512 in U.S. Treasury notes, which included $1,152 in greenbacks, and $932 in Southern bank bills. This raised a potent issue. If the funds were his personal money they would not be subject to seizure by the Confederate government, but it raised the ques- tion as to why he was carrying such a large amount on a risky in- vasion raid. If the funds were U.S government money then the Confederates could seize them as legitimate spoils of war. Col- onel Streight indicated that when the raid started from Nashville he purchased $5,000 in Southern banknotes to make purchases during the raid. Any such purchases were repaid in brand new, never circulated U.S. greenbacks. This was his explanation for having personal money that consisted of brand new $1 green- backs in original wrappers. The records do not indicate if the re- payment in U.S. funds was at a discount or at face value. "After capture his surgeons sold their mules to Confederate quarter- masters for about $800 or more in Confederate money. Of this amount Colonel Streight purchased from his surgeons about $825 (Confederate) paying them 20 cents on the dollar in Fed- eral money." Then General Forrest had taken a package of $851 in Federal treasury notes—all $1 notes—except one $5 bill from the quartermaster of Colonel Streight. For this package Colonel Streight gave General Forrest $851 in Confederate money, the exchange being made dollar for dollar."" These money exchanges with the surgeons and the Confederate gen- eral netted Colonel Streight a profit of $640 in Yankee money! After much investigation the Confederates ruled it was "proper to regard all the funds, except $800, as money belonging to the United States Government, and therefore liable to con- fiscation."" Ironically, Colonel Streight, along with 108 other Union officers, made a daring escape from Libby Prison in Rich- mond on February 9, 1864. He probably left behind any un- spent residue of that $800. Almost three years after the first major land battle of the Civil War, the battle of First Bull Run or First Manassas, the Lincoln administration was still wrestling with the ideological concept of not acknowledging the existence of the Confederacy. On June 15, 1864 Secretary of State William H. Seward wrote to Secre- tary of War Edwin M. Stanton: The Green Goods Game Conducted by Forrest Daniel Paper Money Whole No. 142 After reflecting upon the suggestion of Lieutenant-Gener- al Grant in regard to the use of spurious currency, called by the insurgents Confederate currency, I have come to the conclusion that no responsible representative of the Government could give circulation to that money, as an equivalent for value received, without compromising the Government of the United States, and laying the founda- tion for allegations that we anticipate and expect ultimate- ly to recognize the insurgents." In early July 1864 the irascible Confederate General Jubal A. Early invaded Maryland and carried the war to the outskirts of Washington. In the process he added $220,000 of Northern currency to the Confederacy's coffers. This was from ransoms collected from Frederick and Hagestown. Maryland. Less than a week later, on July 15, 1864, General Early issued the follow- ing order: Headquarters Valley District General Orders No. - All officers of this army who have drawn pay in Federal currency will immediately refund the same to the quarter- master from whom it was drawn." Why officers had been paid in U.S. currency is not known. Per- haps, the availability of Federal currency from the Frederick and Hagerstown ransoms and the opportunity to purchase goods in- duced a sudden payday. General Early retreated from Washing- ton and crossed back into Virginia on July 4th. The next day, when they were outside of enemy lines, he issued this order to be in compliance with the Act of February 6, 1864. Some Yankee prisoners of war held by the Confederates were, as late as January 25, 1865, encouraged to exchange their greenbacks for Confederate bluebacks. The exchanged greenbacks were then used for some apparent clandestine pur- pose in the United States. Headquarters C.S. Military Prisons East of the Mississippi Columbia, S.C. You will convert greenbacks to the amount of $200 for the immediate use of the prisoners with their consent, and let Lieut. James Ormond have it for the use of our people in the United States." Undoubledly the ever-widening siege lines around Peters- burg. Virginia made it easier for Union agents to routinely pene- trate and travel to Richmond. On February 4, 1865 General U.S. Grant wrote to Secretary of War Stanton: Two of three times each week scouts are sent from here [Petersburg area] into Richmond. The only funds the provost-marshal has for defraying their expenses is U.S. currency. These funds naturally would attract suspicion, and have therefore to be converted for their use. If, there- fore. you have any rebel currency, I would respectfully re- quest that from $20,000 to $50,000 to be sent to Colonel George H Sharpe. assistant provost-marshal-general, at City Point [Virginia]." With the war almost over Lieutenant-General Nathan B. For- rest issued this circular from Gainesville, Alabama on April 19, 1865 to the men in his command. Division and brigade commanders will notify their com- mands that there is a surplus of Federal money in this de- partment arising from the sales of Government cotton. Being now cut off from Richmond, it may not be possible to pay the command in currency. As there are many sold- iers who have families inside the Federal lines where such money is serviceable, it is offered to the entire command at the same rate at which it was received for cotton, yet it Page 115 is not obligatory upon any to receive it, being altogether a matter of choice. Should soldiers determine to accept this money. they will receive pay to 28th of February ultimo at the ratio of $1 in Federal currency for $15 of Confederate currency, the rate at which the cotton was sold." If the men of Forrest's command were as wise as they were good fighters this was an offer that no one could refuse. For in little over a month their Confederate currency would, to quote the first line in the well known Confederate Note Poem, "Repre- senting nothing on God's earth now." The capture of Columbia, South Carolina, February 17, 1865 stopped the presses that were printing the Confederacy's paper money. Apparently quantities of printed currency not yet numbered and signed for release were taken in the capture and possibly some was added to the collection in Washington. The appearance of unsigned and unnumbered individual notes and sheets of the February 17, 1864 issue in today's collector's market attests to the looting done by individual Union soldiers while in Columbia. When Richmond was hastily evacuated on April 2, 1865, massive amounts of records and paper currency were left be- hind. The records and possibly much of the currency were scooped up by the Federals and sent to Washington for exami- nation and storage. Thus, at the end of the war. the Federal government was holding a large accumulation of the currency of their vanquished enemy. That accumulation remains intact to- day in the National Archives, except for what was given to pub- lic institutions in 1912. 27 (Continued on page 129) ROUND UP OF GREEN GOODS MEN New York, Aug. 21. — What is said to be the biggest roundup of green goods swindlers ever made by the federal authorities in this city, was announced today. Five men and a woman were taken into custody and an entire green goods plant was cap- tured. Four of the prisoners, Joseph R. Baker, Elmer Brown, S. Gottlieb and the latter's wife were arrested in Newark and George Brown and Thomas Henry were arrested in this city. According to Postoffice Inspector Michael Boyle, he has secured as complainant against the prisoners Antonio Capresso (?), a butcher of New Haven, Conn., who paid $300 in cash and received green paper in return. — Daily Republican and Leader, La Crosse, Wis., Aug. 21, 1902. Page 116 Paper Money Whole No. 142 Looking Closely At Portraits of Dom Pedro II Brazil Sends Photo by GENE HESSLER I F THE CLIENT of a banknote company requests that a por- trait already used on one of their notes should face the op- posite direction on another note, the solution is simple; re- verse the original photograph. This might work in some in- stances, but it will not prove acceptable in most. We shall take a look at one such example. The first use of a portrait of Dom Pedro II (1825-1891), Em- peror of Brazil (1831-1889) can be seen on the 10 mil reis (PA204). This and other notes in this series were printed by Per- kins, Bacon & Petch. There is a portrait of the youthful emperor on the 50 mil reis (PA224). On the 1 mil reis (PA228) a matur- ing Dom Pedro II faces to his right; on the 200 mil reis (PA235) he faces to his left. These notes were printed by Perkins, Bacon & Co. 500 Reis The 500 reis (PA242) was printed by the American Bank Note Company. The portrait on this note shows the image of the forty-nine year old Dom Pedro with his large, bushy beard that had turned gray prematurely. A series of notes that fol- lowed displayed a younger portrait; this, too, was printed by the American Bank Note Company. The series consisted of 1, 2, 50 and 10 mil reis notes (PA244-246 & 252); the portrait on these notes was engraved by James Bannister. The portrait that served as a model for the next group of notes is the one that concerns us most. More often than not, the client provides a portrait for the banknote company that engraves and prints the notes. In this in- stance the Government of Brazil (probably) sent a photograph of Dom Pedro II, facing to his right, to the American Bank Note Company. The first use of this photograph as a model appeared on the 100 mil reis note (PA247); it was issued about 1877. The designer of this and the notes that follow was Thomas F. Morris. This same portrait was the model for at least five other bank- notes: (PA248, 249, 254, 255, 260 & 263). All others (PA242, 250, 251, 253, 256, 258, 259, 261, 262 and 264; and P 138, 146, 153, 162, 170 and 180) have the subject facing to his left. Some of these notes were issued with overprints; they are il- lustrated in PICK Vol. 1. Bank Note Portrait Reversed The portrait of Dom Pedro II facing right reveals that he part- ed his hair on the left. This is verified by the profiles of the em- peror on the coins of Brazil. Both left and right profiles corrobo- rate this fact. When the banknote portrait was reversed, the hair was parted on the opposite side; an observation that few might not care about or even notice. However, on this same portrait, the coat is buttoned right over left, the antithesis of the way males have buttons arranged on their clothing. 500 reis. PA242. Unissued 20 mil reis similar to PA244-246 & 252. Paper Money Whole No. 142 Page 117 This is the correct portrait with the lapel overlapping to the right. PA247. Although portions, including the beard, have been retouched, this por- trait shows the lapel overlapping incorrectly to the left, PA249. When preparation was made for the original engraved por- trait, the photograph of Dom Pedro II was reduced to the exact size needed. The engraver, Charles Burt, with the aid of a steel point, traced the outline and general details of the portrait onto transparent cellulose. The next step was to completely fill the lines with a fine black or red powder. The side of the cellulose with the powder was carefully placed on a piece of steel that had already been coated with etching ground and wax. With a bur- nisher, the engraver forced the powder into the wax surface. When the cellulose was peeled away, the outline of Dom Pedro II remained, in reverse, on the wax. The engraver, again with the aid of a steel point, then made the first attack on the plate. After acid was applied to bite into the area where the dots had been made, a variety of burins and gravers were selected to cut lines of different widths, some shallow, some deep. For the two or three weeks that followed, Charles Burt applied a talent that few have mastered. To prepare the same portrait—facing the other way—for en- graving. the above process is repeated; however, the original photographic print must be printed backward, or incorrectly. The portrait of Dom Pedro II facing to his right was engraved by Charles Burt. The portrait with the coat buttoned incorrectly is the work of engraver Louis Delnoce. Charles Burt Charles Burt was born in Edinburgh, Scotland in 1822. In 1836 he came to New York City. During his lifetime he worked for ten different banknote companies. i.e., Rawdon, Wright, Hatch & Edson; British-American; Homer Lee; John A. Lowell; New York; Western: American; Baldwin, Gleason; Continental; and International. Ultimately he engraved for the U.S Bureau of Engraving and Printing. Charles Burt died in Brooklyn, N.Y. in 1892. Correct Reversed Louis Delnoce The life of Louis Delnoce parallels that of Charles Burt. Del- noce was born in the same year as Burt in New York City; he died there in 1890. This equally talented engraver was em- ployed by six different banknote companies, i.e., Columbian; National; American; Homer Lee: Franklin; and International. He, too, engraved for the U.S. Bureau of Engraving and Print- ing. His portrait of Dom Pedro II was engraved in 1878. Thomas F. Morris Thomas F. Morris, designer, was born on September 2. 1852 in New York City; his parents had come from Merthyr Tydfil, Wales. Young Morris was apprenticed as a designer at the American Bank Note Company; he became Chief Designer in 1882. Six years later he accepted the position of Superintend- ent of Designing and Engraving at the Homer Lee Bank Note Company. In 1893 Thomas F. Morris was appointed Chief of the Engraving Division at the U.S. Bureau of Engraving and Printing. This highly respected designer died on January 8, 1898 in Brooklyn, New York. Dom Pedro H Dom Pedro II, the second and last emperor of Brazil, was an imposing man; he was 6 feet 4 inches tall. His blue eyes were in- herited from his German mother. Dom Pedro de Alcantara. his full name, was considered a good, patient and liberal ruler, al- though he initially favored the old landowning aristocracy. He was somewhat of a linguist. After thirty years as emperor he went abroad. In Europe he sought out literary figures with whom he felt at home and he conversed with them in their lan- guages. In 1876 Dom Pedro visited the United States, where he met Henry Wadsworth Longfellow and John Greenleaf Whittier. Slavery posed a problem for this emperor. Nevertheless. he freed his personal slaves in 1840, forty-years before emancipa- (Continued on page 126) Paper Money Whole No. 142Page 118 Mary M. Costello and the First National Bank of Tombstone, Arizona County. The management had changed however. William Cowan became president in 1917, and Maurice M. Bludworth assumed the office of cashier in 1919(42). Bludworth's oppor- tunity came on the heels of the tragic death of the bank's cashier, T.R. Brandt. Brandt was alone tending the business of the bank during the noon hour on Friday, November 2, 1917, when a pistol-wield- THE PAPER COLUMN by Peter Huntoon Tombstone, Arizona — the name conjures up ghosts of the wild west, the shootout at the OK Corral, barroom brawls, wide open gambling, bordellos, and the silver mines that drove the local economy. The Tombstone legend epitomizes the old west — a man's world populated by desperate men — a place that spelled survival of the fittest. Tombstone has come to repre- sent macho Americana at its best, or at least maybe the way it should have been. This is the story of one of the great figures to emerge from Tombstone's past —a self-made individual who grew from per- sonal tragedy to become a respected leader, a person who had intense loyalty to the community, a capitalist who would save the town from economic strangulation by saving its bank. This person was lauded by the local press at the time, but has been largely forgotten — probably because she was a woman and that fact didn't fit the bullet-ridden image of the place as depicted by later historians, The woman is Mary McNelis Costello. Acting with the aid of her daughter Ruth, Mrs. Costello bailed out the First National Bank of Tombstone in 1921, saving it from collapse in the wake of mismanagement and looting from within. The cost was dear. Her generosity carried a price tag of approximately $100,000 — $100,000 in 1920 dollars. Her actions altered Ruth's budding career as a lawyer in southern California's 1920 growing en- vironment and firmly emplanted this dynamic young woman in southern Arizona's cattle and copper belt as a permanent and greatly revered resident. THE BANK T HE First National Bank of Tombstone, Territory ofArizona, was organized on July 11, 1902, with M.D.Scribner as president, and T.R. Brandt as cashier(43). The U.S. Comptroller of the Currency awarded charter 6439 to the bank on September 25, 1902; it boasted a capital of $25,000 when it opened that fall. The bank was located on the east side of Fifth Street between Allan and Fremont streets. At that time Tombstone was 23 years old, and had served as the county seat of Cochise since that county was organized in 1881. The silver boom was long past, although the economy of the town was still partly rooted in silver production from various mines and claims nearby. Ranching in the vicinity rounded out the economy. Not much changed in the town or the local economy during the first two decades of the 20th century. The bank remained small, and its influence was hardly noticed outside Cochise Mary McNelis Costello, 1926 ing gunman, Fred H. Koch, attempted to rob the bank. Brandt foolishly made a quick move toward the bank's shotgun, frightening the intruder into shooting him below the heart. The would-be bandit ran from the bank, jumped on his horse, and attempted an escape toward the town of Gleeson to the east. The villain was quickly apprehended by Chief Deputy Sheriff Guy Webb who chased Koch two miles in a Ford racer driven by Immigration Inspector Jeff Milton(8). Brandt was mortally wounded and he died December 10th, whereupon he was suc- ceeded as cashier first by J.A. Rockfellow and then by H.C. Almy, who served until a permanent replacement could be found(9). The young replacement was Maurice M. Bludworth who moved to Tombstone in 1919 with his wife. The couple quickly and easily blended into the community. Bludworth was recalled as a very fine young man, and it appears that he soon became aligned with a number of go-getters who were enjoying the Paper Money Whole No. 142 speculative boom in the overheated post-World War I stock market(5). Interest in stocks was so great, in fact, that a big blackboard was set up in the ice cream parlor in Bill Boyd's drug store upon which the latest quotes were entered each af- ternoon (5) . Tombstone was enjoying modest prosperity, its sons were re- turning from the World War, and the population of the town was stabilized at about 1.500. One local newspaper—The Epi- taph — described the place as "a quiet, prosaic little town(32)." At this time, Mary Costello, the focus of this account, was a minor stockholder in the First National Bank, but she was a resi- dent of Los Angeles and had virtually nothing to do with the management of the bank. The post-World War I agricultural depression initiated a seri- ous impact on southern Arizona cattlemen as early as 1921(33); the local economy of Tombstone was affected. As a conse- quence, attention, but not great concern, began to focus on the First National Bank. TROUBLE STRIKES The first hint that trouble might be brewing came on Monday, August 15, 1921, with a front page headline announcing: "First National Bank Changes Management(11)." Gone were William Cowan and M.M. Bludworth. The new management, installed at a meeting the previous Saturday, included Mary M. Costello, president; C.L. Cummings, vice president; Ruth Costello, vice president; and D. Pierce, cashier. Mrs. Costello released the fol- lowing letter of assurance to the community: This is to advise that I have today arranged to increase my holdings of stock in the First National Bank of Tomb- stone, to a substantial sum; that because of the interests which I have increased, and because of the very friendly interest that I felt in the town of Tombstone, I wish to as- sure my friends and the friends of the bank that the insti- tution is to be put and kept, in the most solvent and liquid condition possible to have a bank; that it is the de- sire of the president, Board of Directors and the officers of the bank, to maintain the First National's record of usefulness to the community, and in soliciting continua- tion of the business of the people of Tombstone and its surrounding territory they may be assured of all the cour- tesies to be had of a carefully conducted and obliging banking house. To those depositors now doing business with the bank, I have no hesitancy in saying that their in- terests will be fully protected by me. Thanking you in behalf of myself, and associates, I remain, cordially, Mary M. Costello(11). The circumstances behind Mrs. Costello's presence at the re- organization meeting are uncertain. She may have been called from her home in Los Angeles specifically for the meeting with plans to buy the bank, or she may have been visiting her pre- vious hometown when the meeting was called and the oppor- tunity for the purchase presented itself. Regardless, it is clear that when she increased her holdings in the bank, she bought nothing but a headache. She was aware that the loan portfolio included some slow or questionable notes; however, it is certain that she was not aware of the extent of the damage or the fact that several shortages were hidden in the cracks—one amounting to $15,000. She re- turned home to Los Angeles immediately after the reorganiza- tion meeting to confer with her attorney, William A. Bowen of the firm Flint, McKay, and Bowen. Bowen did not like what he found on the bank's books. He advised Mrs. Costello to back Page 119 away from her deal and close her bank pending a full investiga- tion . On Friday, August 19, 1921, a headline on the front page of the Tombstone Prospector screamed: "First National Bank Closes Doors Today(12)." Chief bank examiner R. H. Collier of the 11th Federal Reserve District suddenly found himself in charge of the bank, pending appointment of a temporary re- ceiver(12). The Prospector carried the following news: It was announced that on advice of her attorneys. Mrs. Costello had decided to repudiate her former assurance and agreement, and would not go through with the mat- ter as formerly intended. The reason given for this ac- tion, is because the statement was too broad and let down the bars for unlimited guarantee(12). Furthermore, it was announced publicly that through her at- torneys Mrs. Costello was initiating an investigation into the af- fairs of the bank. From the tone of the reporting in the Prospector, it is clear that the editors felt duped in publishing Mrs. Costello's letter of assurance upon her takeover of the bank. The paper lamented that the published assurances had prevented withdrawals by de- positors, and had in fact encouraged new deposits right up until the day the bank closed. In frustration, the paper carried the following: We are of the opinion that the hundreds of depositors are taking the matter a little too calmly, believing that their interests are being protected, but judging from the trend of events since that notorious guarantee of the president of the bank, which was carried in these col- umns for our readers in absolute good faith, following the reorganization, it appears the depositors had better organize, and at least get some satisfaction as to what is to be done(13). MRS. COSTELLO DEALS Mrs. Costello was caught in a miserable position. She could cut her losses to a minimum, discredit her word by worming out of the deal, and jeopardize old friendships in Tombstone. On the other hand she could swallow hard and protect the deposi- tors against loss by covering the bad paper with her own money. There is no available record of her exact maneuvers; however, the broad outlines of her strategy are revealed in subsequent news accounts, which demonstrate that she had remarkable business savvy. She kept her word by protecting the depositors from loss by infusing the bank with her own capital, yet before she did so she walked a middle ground wherein she extracted important concessions from all parties. She gained guarantees from the depositors that they would not withdraw their deposits immediately upon a reopening of the bank. She also won significant concessions from the pre-takeover owners of the bank. These involved a renegotiation of the terms of her pur- chase, which included her acquisition of the remaining out- standing stock in the bank. All of this took time, but since she was clearly holding the only ticket to salvation, everyone worked patiently to secure her objectives. The bank was closed August 19, 1921, and stayed closed un- til November 10th. A number of events transpired almost im- mediately. Bank examiner J.T. Jernigan took over the receiver- ship on August 24 as a temporary replacement for Chief Ex- aminer Collier who returned to Dallas. Abijah G. Smith, presi- dent of the Cochise County State Bank with headquarters in Tombstone and a branch in Benson, attempted to ferret out a deal whereby his bank could purchase the good assets held by TOTAL RESOURCES 4- U)cr _J _J 0 0 0 0 2 CO 2- 0 f— U_ 0 cc 0 z 3- TOTAL DEPOSITS 5) 0 0 cs,cr, 5) C%.1 Page 120 the First National Bank, thus assuring its liquidation as a po- tential competitor(13). Nothing came of Smith's negotiations. William Bowen, Mrs. Costello's attorney, left for Washington, D.C. to confer with Comptroller of the Currency D.R. Crissing- er and his staff regarding the affairs of the bank soon after it was closed. Mrs. Costello joined him in Washington about Septem- ber 1 to review her options(15). Next, Alexander Bailey McCans, a National Bank examiner who was headquartered in Dallas, was appointed as temporary receiver and arrived in Tombstone September 16th to take charge of the bank(14), (15). McCans then traveled to Los Angeles to confer with Bowen who apparently still had posses- sion of many of the bank's books. He was joined in Los Angeles by another examiner, H.F. Brewer, and together the three men returned to Tombstone on October 1st where Bowen publicly advised that a thorough investigation of the bank's affairs was to be made with the objective to reopen if possible(16). At this point, a depositor's committee pledged their support to the bank should it be reopened, thus partially eliminating one of Mrs. Costello's principal hurdles(17). Their guarantee was to leave their funds on deposit for at least six months after the bank was reopened, provided that Mrs. Costello covered the questionable loans. Bowen returned to Los Angeles with this good news on October 6th(19). BAD BOOKS Meanwhile the audit of the bank's books revealed serious shortages and manipulations. The evidence pointed to Blud- worth, the former vice president and cashier. He was arrested in Tombstone and taken to Tucson on charges of false entries and misapplication of bank funds. Bludworth's preliminary hearing began on October 6, a Thursday, wherein Assistant U.S. At- torney John H. Martin presented evidence of criminal wrong- doing using testimony from Bank Examiners McCans and Brewer, and D. Pierce, a clerk at the bank(18). The worst charge aired at the hearing was that Bludworth had taken $15,000 from the bank's deposits and placed the money in the First Cat- tle Loan Company, a firm that he apparently established as a front for such minipulations. Ironically, it turned out that the $15,000 was bond money deposited with the First National Bank in a surety account to cover an embezzlement of county funds by W.P. Walker, a former assistant treasurer of Cochise County. Newspaper accounts advised that the two bank ex- aminers introduced ledger leaves and checks into evidence. "Their testimony, largely of a technical nature, bristled with dates and figures(18)." The evidence was damaging and Bludworth's case was brought before the Grand Jury of the United States, District of Arizona, in late 1921. The jury handed down indictment C1596 against him charging that he had misapplied the Walker Bond money(45). This was the first of 24 separate indictments span- ning dozens of counts arising from Bludworth's manipulations of bank funds that would come from the Grand Jury over the next two years(44). REORGANIZATION The reorganization of the bank was largely handled by Mrs. Costello's lawyer, William Bowen, who traveled between Los Angeles and Tombstone to work out the remaining details. These involved a number of crucial matters including rounding up the last of the outstanding stock for Mrs. Costello(20), (25), settlement of a $97,000 surety bond covering county funds on deposit with the bank(22), (23), reorganization of the manage- Paper Money Whole No. 142 ment of the new bank, and securing outstanding pledges of sup- port from depositors. Mrs. Costello stayed in Los Angeles. At the time the bank closed, Cochise County had $92,000 on deposit with the bank—funds that were covered by a $97,000 security bond held by the United States Fidelity and Guaranty Company of Los Angeles. Consequently, the bonding com- pany became the greatest creditor of the bank, On October 21, Bowen telegraphed the Prospector from Los Angeles with the news that an agreement was made between Mrs. Costello and U.S. Fidelity and Guaranty Company whereby Mrs. Costello would purchase the bonding company interest at a discount. On that same day a representative of the bonding company met with the county supervisors in Tombstone to deliver a check for the $97,000 face value of their bond, and the supervisors re- turned the $5,000 difference between their deposits and the value of the bond(21). This bond was the worst liability facing Mrs. Costello, and purchasing it effectively infused the bank with substantial cash, thus paving the way for its reopening. C.) Total resources and deposits of the First National Bank of Tombstone, Arizona. 20 CJ) CC <15 0 U_ 0 v)10 0 z 0 VALUE OF NATIONAL BANK NOTES IN CIRCULATION National bank note circulation for the First National Bank of Tomb- stone, Arizona. Paper Money Whole No. 142 Page 121 THE BLUDWORTH CASE Maurice M. Bludworth, former cashier and vice president of the First National Bank of Tombstone, was indicted by the Grand Jury of the United States, District of Arizona, in Tucson in 1921. He was charged with misapplying $15,000 in funds deposited with the bank as surety in an embezzlement case involving a former assistant Cochise County treasurer. His was criminal case 1596, and it charged that he used the $15,000 to pay his brother $8,000 to cover a deposit his brother had entrusted to the bank which was not properly recorded on the bank's books, and the remainder was used to cover Bludworth's personal obligations(45). As the investigation of the bank's books proceeded, numerous misapplications were discovered, as well as falsified records, and falsified reports to the Comptroller of the Currency regarding the condi- tion of the bank. These additional findings resulted in 23 new indictments between November, 1922, and November, 1923(44). It appears from the indictments that Bludworth utilized two companies as fronts, the First Cattle Loan Company and Solstice Mining and Milling Company, to juggle funds taken in through deposits, and funds he created through ledger en- tries as bogus loans to the bank, credits, or discounted paper from other banks(45). In the process he was guilty of falsifying entries, and also of falsifying statements of condition to the Comptroller of the Currency. In one interesting twist, he misap- plied $7,192.14 to cover the cost of 40 shares of stock in his bank that he purchased for himself. The books ultimately revealed that Bludworth not only misapplied bank funds to cover personal liabilities, but that he also took care of his friends as well. Among the counts in the indictments are charges of excessive loans to cronies in viola- tion of National Banking laws, bogus letters of credit to other banks for friends, and discounting of worthless paper pre- sented to the bank by co-conspirators, wherein the bank paid out cash which was apparently used in speculative ventures(45). Several of the indictments named additional parties, some of whom were probably just fictitious names entered on the bank's books by Bludworth. Bludworth's known crimes dated from the beginning of 1921, about the time the stock market began to sour in the post-war depression. His illegal activities resulted in 24 felony indictments. These were ultimately consolidated into three indictments, C1990, 2192, and 2220, which involved dozens of counts. As shown in the accompanying table, cases 1990 and 2192 went to trial together in the United States District Court at Tucson in late 1923 and resulted in conviction on De- cember 15, 1923. On December 24, Bludworth was sentenced to three years in the U.S. Penitentiary at Leavenworth, Kansas, and fined $5,000. U.S. Marshal G.A. Mank delivered Bludworth to prison on December 27th. Case 2200 was later brought before the District Court at Tucson and settled with a guilty plea from Bludworth on September 12, 1924. He was sentenced in that case to one year and one day concurrent with the previous prison term(45). A phone call to the rec- ords center at Leavenworth Penitentiary disclosed that Bludworth was released on May 18, 1926(4). Of the several people named in the indictments as co-conspirators with Bludworth, only K.N. Coplen was convict- ed—of using $487.40 in funds that Bludworth had misapplied to his account. On June 3, 1924 Coplen was sentenced under case 2200 to imprisonment for six months in the Yavapai County Jail at Yuma(45). Ironically, Coplen was a direc- tor of the competing Cochise County State Bank at the time(34). Table 1. M.M Case Number Indicted Disposition Bludworth's criminal cases before the U.S. District Court for the District of Arizona at Tucson(45). Sentenced 1990 Feb. 19. 1923 jury trial, convicted Dec. 15, 1923 for false entries Dec. 24, 1923 3 years concurrent with case 2192 2192 Nov. 8, 1923 jury trial, convicted Dec. 15, 1923 for false entries and misapplication of funds Dec. 24, 1923 3 years and $5000 fine concurrent with case 1990 220 Nov. 13, 1923 guilty plea Sept. 12, 1924 false entries and misapplication of funds Sept. 12, 1924 1 year and 1 day concurrent with cases 1990 and 2192 Other indictments dismissed or consolidated into above cases were 1596, 1971 through 1989, and 2201. In what proved to be a public relations coup, Bowen con- firmed on November 3rd that Mrs. Costello would appoint J.P. Connolly as cashier of the First National Bank(24). Connolly, a native of Canada, was a graduate of St. Francis Xavier Universi- ty at Antigonish, Nova Scotia, and later a graduate of Provincial Normal College(33). After teaching mathematics at St. Francis Xavier University, he moved to the southwest for his health, which he regained(33). He found employment with the Bank of Bisbee wherein he advanced to assistant cashier over a period of 19 years. It was this position that he would leave to take over the management of the First National Bank of Tombstone. His ap- pointment generated considerable enthusiasm in Tombstone and reinforced confidence in Mrs. Costello's integrity and com- mitment to the bank and the community. 4114111(1„ " III" Nrall h al 1 fr,C, 6,,..51EtPREP 1111110TEMITATES BONES IM OINERWOURITIES •*1-- WED STATES;DIANMCV , • • • • flomoricazzervz, Y282995 H F 64:4"-47,7 VAL i ) .4444,44.44usaghamv TIA-Nt C439 ,..11904‘43Cat,C31-- — set majwa altraleutereit SECURES NTYNITEtl SULTE511011011111111TNER :1 11 NEED STATESOF AM ERICIV 20262SMI1ES 01,01, F icI leopjaWAI{ANKOr 6439 ...111 774A-\111- 2026 °C49_14 Page 122 Ruth Clare Costello, 1924 SUCCESS Mrs. Costello, her daughter Ruth, and lawyer Bowen arrived in Tombstone Wednesday, November 9th with the news that the last of the outstanding stock had been relinquished to their control the previous day in Los Angeles, and that the bank would reopen on the 10th(26). The Prospector was jubilant and had this to say: Mrs. Costello in her loyalty and interest in Tombstone deserves the highest commendation. Although interest- Paper Money Whole No. 142 ed but slightly in the bank when it first closed its doors, she has come to the rescue with funds running well into six figures, rather than allow the matter to go through the hands of a receiver. Confidence in the people and future of the Old Camp inspired her to back up the institution with the result that when it opens its doors tomorrow it will stand out as one of the strongest financial institutions in the United States(26). The first order of business before the reopening was to elect new management. This was carried out late in the afternoon of November 9th with the following result: Mrs. Costello, presi- dent; Ruth Costello, vice president; J.P. Connolly, cashier and director; Martin C. Costello (one of Mary's sons), J.N. Gaines, and C.L. Giragi (principal in the depositors committee during the closing), directors(28). By a formal resolution, reciever A.B. McCans was extended a vote of thanks for his efforts to reopen the bank. McCans left for Dallas on the Golden State Limited the evening after the bank reopened. He made the following statement: And while I am glad to be able to return to my home, with my mission finished, I am leaving Tombstone with fond memories of having met and associated with some of the best people I have ever known, and I will always have a warm place in my heart for Tombstone(27). McCans also advised that the statement of the bank on its open- ing day was one that the citizens and officers of the bank should be proud of. National bank notes issued by the First National Bank of Tombstone during the Costello era. Note 1953 is signed by J.P. Connolly—cashier, and Ruth C. Costello —vice president. Note 2026 is signed by Ruth C. Costello as cashier and her mother Mary M. Costello as president. BANK OF BENSON BENSON FEB. 13,1905-MAY 29, 1917 CITIZENS BANK OF BENSON ) MAR. 14, 1905-MAR. 16, 1908 PURCHASED FIRST NATIONAL BANK OF TOMBSTONE JUL. II, 1902-MAY 21, 1926 PURCHASED BRANCH Benson May 29,1917 - Sep. 4, 1931 Paper Money Whole No. 142 Page 123 TOMBSTONE — HISTORY AT A GLANCE The story of Tombstone is a tale of the greatest silver rush to converge on Arizona. Its fame rivaled that of the Com- stock Lode in Nevada. Tombstone did not exist prior to 1879. A prospector named Ed Schieffilin is credited wth discovering the rich silver deposits that started the rush and for naming the town that grew around the mines(32). Schieffilin prospected the San Pedro River country of southeastern Arizona for some time and made his base at a place known as the Brucknow House. This haven from the hostile Apache Indians was also home for a group of smugglers and rustlers, none of whom particularly understood Ed's interest in rocks. One the chaps asked Ed just what he was doing on his solo trips into the countryside and mountains. He replied, "Just lookin' for stones." "Well," was the rejoinder, "you keep on and you'll sure find your tombstone out there some day(32). Schieffilin recalled this conversation upon discovering his famous lode in the fall of 1878, and in the wholesome spirit of black humor named the lode Tombstone. The first towns to spring up in the vicinity were Watervale and Rich- mond, respectively located about a mile west and a mile southwest of what was to become Tombstone. Both sites were unsuited for a large town so in the summer of 1879 the town of Tombstone was begun on a level mesa at an elevation of over 4,000 feet. and Watervale and Richmond were abandoned. Like most western boomtowns, the first structures in Tombstone were tent homes, dance halls, saloons, and gambling dens, plus flimsy structures posing as rudimentary business establishments offering basic services. These gradually yielded to more substantial structures. Along with the miners came the riff-raff that prey on others. By 1880 there were 3,000 peo- ple in all, but few families. The saloons and gambling halls never closed; laws and positive social behavior did not seem to permeate the city limits. Cochise County was carved out of the southeastern part of Pima County in late 1881, and Tombstone ascended to a county seat. Concurrent with this honor, the local cattlemen organized and ran out or killed a number of the worst char- acters. Feuding among the remaining thugs culminated with the shootout at the OK Corral between the Earp and Clanton factions in 1882. The participants were never brought to trial, but their spate of violence aroused such public ire that all were forced to leave the county. The heyday for Tombstone lasted only from 1880 to 1883. Two principal factors gutted the town's population in 1883: first, silver fell into a severe slump, and second. the miners struck the mines to protest a cut in wages(32). Although the mines produced fortunes in silver for many years thereafter, much of the population moved away in 1883. A number of historic sites dotted the town; among these were two handsome gambling houses, the Crystal Palace and the Oriental. Another favorite was the Bird Cage, a vaudeville theater and dance hall. A great deal of silver still lies under Tombstone, but long ago the mine workings flooded, making the silver irretrievable. The Costello family arrived in Tombstone a few years after the boom. Martin's first apparent claim to fame was re- corded in the Prospector in February 15, 1882. Quoting from that news story: The first carload of Anheuser Busch keg beer to go into Martin Costello's new cold storage rooms on Fremont Street, was placed there on Friday night. So favorable has been the weather for shipping it, that the huge chunks of ice retained their shape as when originally cut and placed with the beer in the car(6). Decades after Martin had passed from the Tombstone scene, a big sinkhole, resulting from the collapse of the ground into the mine workings, exposed some of the upper level workings near the Tombstone high school. Kids I knew who at- tended that school in the late 1950s used to sneak off into the old tunnels to play hooky and smoke cigarettes! NAME CHANGED HEAD OFFICE MOVED CCOCHISE COUNTY STATE BANKTOMBSTONEMAY 29,1917- SEP. 4, 1931 Relationship between the First National Bank of Tombstone and the Cochise County State Bank which purchased it in 1926. Page 124 Not a single withdrawal was made on opening day; in fact a number of new accounts were opened(28). Cashier Connolly announced the bank's new slogan: "The bank of courteous service," which would be used in advertising for years to come. Mrs. Costello returned home to Los Angeles after a few days. Ruth stayed on with the bank, first as assistant cashier to Mr. Connolly, and then as cashier when Mr. Connolly left the bank in 1925(42). Cecil, her brother, remained director of the bank, but did not actively participate in the day-to-day affairs of the in- stitution. POSTSCRIPT On May 12, 1926, A.G. Smith of the Cochise County State Bank, with its main office in Tombstone and a branch in Ben- son, got his old wish by purchasing the First National Bank from Mrs. Costello(34). Mrs. Costello advised that it was her desire to sell her Tombstone interests so that she could devote her entire energies to managing her affairs in California. Once the take- over was completed, the First National Bank was formally liqui- dated on May 21(42). Ruth Costello was made an assistant cashier of the Cochise County State Bank, as was John M. Cos- tello, a brother(34). None of the Costello's were on the board of directors. By 1931, both A.G. Smith and the Costello's had severed their ties with the Cochise County State Bank. A.G. Smith, a pioneer Arizona banker, was retired and living in Benson, the location where the Cochise County State Bank was founded. The institution was under the management of acting president S.N. Spry and cashier O.E. Kellond. The bank suddenly became a casualty in the great depression. On September 4, 1931, The First National Bank of El Paso, Texas, one of the oldest and supposedly soundest National Banks in Texas, failed. As luck would have it, the El Paso bank was the depository for the reserve funds of the Cochise County State Bank, and with the reserve funds tied up in the El Paso re- ceivership, the bank found itself insolvent and was forced to close Saturday, September 5(35). Efforts to resuscitate the Cochise County State Bank began immediately by a reorganization committee in cooperation with the officers of the bank and Arizona Superintendent of Banking James B. Button. A full meeting of the depositors was arranged for Thursday evening, September 10, at 7:30 in Tombstone's Crystal Theater and Friday evening at the Benson Audi- torium(35). A plan was proposed whereby the depositors would relinquish a third of their deposits to the capital account of the bank, a third would be converted into time certificates of deposit payable in one year, and the remaining third in time certificates payable in two years(36). In addition, the time certificates were to be treated as negotiable. Public response was good but in- complete. On December 17th, a second depositors' agreement was pro- posed wherein the depositors would get (1) a 10 percent cash dividend on their deposits the day the bank opened, (2) trust certificates for the other 90 percent, which would be backed by the remaining assets of the bank, (3) orderly liquidation of the trust fund, and (4) a promise that the directors and stockholders would assume their full liability(37). Although the terms of this arrangement were considered an improvement, there was not a 100 percent signup among either the depositors or sharehold- ers(38), (40). As the months dragged on, the State Superintend- ent of Banking was forced to begin the liquidation of the bank. On February 25, 1932, it was announced that the depositors would receive their first dividend of 10 percent from the liquida- tion(39). All plans to reopen the failed bank had been dropped by June 3(41). Liquidation proceeded with dismal results—the Paper Money Whole No. 142 last dividend of 2.25 percent was paid to depositors by the Ari- zona Superintendent of Banking on December 12, 1936, bring- ing the total recovery to 37.25 percent of deposits at the time of closing five years earlier(3). REFERENCES CITED 1 . Arizona Daily Star, Sept. 19, 1911, Doctor told Costello that he was doomed. 2. Arizona Historical Society Library, various dates, miscellaneous newspaper clippings and bibliographical files: Tucson. 3. Arizona State Banking Department, undated, File of summary records for banks that operated or operate in Arizona: Commercial Building, Phoenix. 4. Leavenworth Federal Penitentiary, Records Center, Leavenworth. Kansas. 5. Siek, Iris Marcia, May, 1983, Personal communication to author regarding her recollections of the events in Tombstone relative to the First National Bank. 6. Tombstone Daily Prospector, Feb. 15, 1892, Interesting items that appeared in the Prospector this date 1882. 7 , June 19, 1913, Widow of Arizona millionaire handles estate and financial matters with good judgment and ex- cellent executive ability. 8. Nov. 2, 1917, Daring attempt to rob bank, p. 1. 9. Dec. 11, 1917. T.R. Brandt passes away at El Paso after a brave fight for life against assassin's bullet. p. 1. 10. Mar. 10, 1919, History of Cunningham-Costello case. 11. Aug. 15, 1921, First National Bank changes man- agement, p. 1. 12. Aug. 19. 1921. First National Bank closes doors today, pp. 1, 2. 13. , Aug. 24, 1921, Nothing to be given out in First Na- tional Bank case; deal pending, p. 1. 14. Sept. 2, 1921, Receiver is appointed for First Na- tional, p. 1. 15. Sept. 17, 1921, Temporary receiver of First Na- tional, p. 1 . 16. Oct. 1, 1921, Encouraging situation in First Nation- al Bank status, p. 1. 17. Oct. 3, 1921, All working for reopening First Na- tional, p. 1. 18. Oct. 6. 1921, Bludworth hearing is taken under advisement, pp. 1, 4. 19. Oct 6, 1921, Outlook bright for reopening First National, p. 1. 20. , Oct 10, 1921, Good news on bank opening re- ceived here, p. 1. 21. , Oct. 21, 1921, Bonding company pays $97,000 in settlement, p. 1. 22. , Oct. 21, 1921, Important step for reopening of bank is made, p. 1. 23. , Oct. 26, 1921, Looks better for reopening of bank soon, p. 1. 24. , Nov. 3. 1921, Bank opening may be delayed for a week, pp. 1, 4. 25. Nov. 4, 1921, Bank opening is postponed to next week, p. 1. 26. Nov. 9, 1921, First National Bank will open to- morrow, p. 1. 27. , Nov . 10, 1921, Bank examiner thanks people of Tombstone, p. 1. 28. Nov . 10, 1921, First day of bank opening is reas- suring, p. 1. 29. Tombstone Epitaph, Oct. 1, 1911, Costello will up for probate. 30. May 25, 1919, Sgt. Cecil Costello in Camp Upton. 31. July 11. 1920, $250,000 real estate deal closed in Pima County by co mpany. 32. Nov . 1924, City of Tombstone section, pp. 1, 8. 33. Nov . 1924. First National Bank. 34. May 13, 1926, First National Bank is sold, p. 1. Paper Money Whole No. 142 Page 125 MARY M. COSTELLO Who was Mary M. Costello, and what was the source of her wealth? Mrs. Costello was the wife of copper king Martin Costello who settled with her in Tombstone in 1887. At that time. Martin was 41 and a cabinet maker by trade. His wife was 21. Both had emigrated independently from their native Ire- land, he from the vicinity of Dublin and she from Donnegal. They met in Philadelphia but opportunities in the raw Ameri- can west beckoned. Theirs was a classic page from western lore. Martin opened a small saloon on Fremont Street, which he operated until the turn of the century. It was common gossip that Costello befriended a lonely, tired and hungry prospector, gave him food and shelter and possibly a drink. In return, said this rumor, to show his gratitude the prospector gave all that he had, a mining claim, to the man who had befriended him. Though Mr. Costello was always frugal, it was known that he was liberal with those he liked. This was the case with the prospector. The claim turned out to be worth considerable in copper. Mr. Costello made $60,000 out of this deal, and then began his career in which, as was popularly said, everything that he touched "turned to gold." Out of this money Mr. Costello invested $50,000 in the "Irish Mag," held the property for two years and sold it for $750,000. In a similar manner he bought the Bailey, near Tombsone for $40,000 and sold it for $500,000 three years later. After that Mr. Costello gradually increased his holdings so that his fortune was variously estimated at from $4,000,000 to $5,000,000. Despite his vast holdings, Mr. Costello was a member of no company and never had a partner. Ac- cording to his attorney, Ben Goodrich, Mr. Costello never lost any money on any investment he made; everything he "touched turned to gold(1)." Mr. and Mrs. Costello had ten children, five boys and five girls, eight of whom were born in Tombstone. Following his great success, Martin moved his family to an elegant home at 1417 S. Figueroa Street in Los Angeles in 1902(1). It ap- pears that he lived in Arizona afterward and commuted regularly to Los Angeles to visit his family. Martin's health began to deteriorate in 1905 and he was eventually diagnosed as having walking typhoid fever. On a Monday morning, September 8, 1911, he visited his physician in Los Angeles regarding his worsening condition and was told there was little that could be done. After enjoying an affectionate luncheon with his entire family, he went to the Gold- en West Hotel, 844 E. 5th Street, rented a room, and with the revolver he had carried in pioneer days shot himself through the heart(1). Just prior to his suicide at age 65 Martin had sold the principal interest in the Copper Belle, located near Gleeson, Ari- zona. He was still holding major interests in at least 50 claims in Arizona, most located near Tombstone in the Turquoise District. In addition, he had major real estate holdings in Douglas, Tucson, Nogales, Courtland, Gleeson, Bisbee, Tomb- stone and Los Angeles. His portfolio of bank stocks and school district bonds was reportedly valued at many hundreds of thousands of dollars(29). Mrs. Costello was a rather typical turn of the century Victorian homemaker when Martin died. Their eldest son was 19, and the oldest daughter was 16 at the time. Suddenly Mrs. Costello found herself sole heir to a vast and complex es- tate, which would demand significant attention and acumen. The record demonstrates that she quickly grew to her new- found responsibilities. Among her major tests was the famous Costello-Cunningham suit filed against Martin's estate on April 5, 1912, by heirs to the estate of one Patrick Cunningham who had died in 1899(10). The suit alleged that Martin had not settled fairly with Cunningham's widow during the year 1901 on a package deal including 17 major claims in the Warren District near Bis- bee. Cunningham was half-owner in these claims, and Costello sold them between 1899 and 1904 to the Calumet and Arizona Company and the Shattuck Company for a reported total of $1,000,000. The biggest producer among these pro- perties was the prolific Irish Mag, one of the great copper deposits in the southwest from which the Calumet and Arizona Company produced millions. The Costello-Cunningham suit dragged on for 7 years during which the case was repeatedly appealed by both sides. Three lawyers on the case died during this period among a total of 13 attorneys involved. The initial suit claimed that $525,878.34 was due the Cunningham estate. Final settlement was made on March 9, 1919 for about $200,000. The Willard Hotel in Tucson was among the assets that Mrs. Costello inherited. Built in 1902 on the corner of South Sixth Avenue and East Twelfth Street, it was, at the time, Tucson's largest and most luxurious hotel. News reports of 1913 vintage reveal that Mrs. Costello lived at least part of the time in Tucson and actively managed this fixture(7). Business and social life brought her to Tombstone frequently. Her desire to return to Los Angeles and probably a desire to simplify her affairs prompted her, on July 6, 1920, to sell her entire Pima County holdings, which included the Willard Hotel(31). The purchaser, for a quarter of a million dollars, was the Excelsior Realty and Improvement Company, a corporation headed by Albert Steinfeld, a very prominent Tucson merchant and president of the Consolidated National Bank of Tucson. Nu- merous other important commercial, residential, and undeveloped properties were included in that transaction; $250,000 bought a considerable amount of property in those days! (Continued on page 126) Page 126 35. Sept. 10, 1931. Reopening of closed Cochise County State Bank will depend entirely upon 100% cooperation of depositors, p. 1. 36. , Sept. 17, 1931, Second letter is sent to bank's de- positors, p. 1. 37. , Sept. 17, 1931. New and approved agreement re- ceived and submitted to depositors, p. 2. 38. Jan. 7, 1932, Stockholder liability met 80%; de- positor 50% sign-up helpful, but rest must sign, p. 1. 39. , Feb. 25, 1932, 10% dividend checks mailed soon, p. 1. 40. April 7, 1932, Slowness of final small per cent of depositors in signing up puts reopening plan for local banks in lim- bo. p. 1. 41. June 2, 1932. Bank reopening plan is dropped, 1 42. U.S. Comptroller of the Currency, issued annually, Annual Re- ports of the U.S. Comptroller of the Currency: U.S. Government Printing Office, Washington, D.C. 43. U.S. Comptroller of the Currency. Aug. 18. 1902. Report of Or- ganization of National Banks: U.S. National Archives, Wash- ington, D.C. 44. United States District Court, District of Arizona, various dates, Criminal Docket sheets for C-1990 TUC and C-2192 TUC, United States of America us. Maurice M. Bludworth: Office of the Clerk, Tucson. 45. United States District Court, District of Arizona, various dates, Recognizances of Appearance, Indictments, Verdicts, Commit- ment to Penitentiary. Commitment to County Jail, and other rec- ords. United States of America us. Maurice M. Bludworth, C-1596, 1971 through 1990, 2192, 2200, 2201 TUC.: Los An- geles Federal Archives and Records Center, General Services Ad- ministration, Laguna Niguel, California. Costello (Continued from page 125) Mrs. Costello was 45 years old when Martin died. By the time she took control of the First National Bank of Tombstone, she was 55. By 1924 she was honored as "a capitalist and busi- ness woman, well-known for her financial standing throughout the Southwest(33)." She was the largest property holder in Tombstone in the early 1920s. Mrs. Costello gradually retired and maintained her home in Los Angeles where she died December 12, 1941, at 74 years of age(2). Her daughter Ruth stayed in Tombstone after the bank was reopened and married in 1926. One of Mary's sons, Cecil, began his career in ranching in 1915 in the Cochise Stronghold country 12 miles northeast of Tombstone. His Sycamore Springs Ranch was one of the most successful spreads in the area, earning Cecil prominence throughout the state. He took about two years out of his ranching career to serve in the tren- ches of World War I during which he rose to the rank of sergeant(30). Insurection (Continued from page 111) notes as emergency money were issued in the following de- nominations: 10 and 15 gr., 1, 2 and 5 zlp, each in different paper colors (white, green, yellow, pink and blue) and signed by the issuer (Malachowski) and his clerks. One should remember that paper money has not been so unfamiliar to T. Kosciuszko. During his American campaign he probably saw and used vari- ous notes issued by both the Continental Congress and the indi- vidual colonies, or states, in America. Here again we come to the American aspect of T. Kosciuszko's unusual career that pro- posed this last observation as a hypothesis. Two and a half months of treasury notes circulating in Warsaw amounted to no more than 6 million ducats, estimated according to the nominal value of all the paper money printed during this turbulent Paper Money Whole No. 142 period. The next chapter in the history of Polish paper money took place in the Duchy of Warsaw, which existed during the Napoleonic wars in central and eastern Europe in the early 19th century. On the other hand Polish territories seized by Russia, Austria and Prussia were incorporated into the monetary mar- kets of those three partitioning powers, which just began to issue their own paper money at the turn of the 18th and 19th cen- turies. Literature: Askenazy S. and W. Dzwonkowski (ed.), Akty powstania Kosciuszki (Records of the Kosciuszko's uprising) vols 1-2, Krakow 1918. Grodeck A., Pieniadze papierowe podczas Insurekcji 1794 roku (Paper money during the Insurrection of 1794). Rocznik Wyzszej Szkoly Handlowej vol. 4:1927, pp. 67-152. Kurnatowski M., Pieniadze papierowe polskie z roku 1794 (Polish paper money from 1794), Zapiski Numizmavyczne (Krakow) vol. 5, 1888, no 18, pp. 313-327 Mikolajczyk, A., Najstarsze banknoty polskie w zbiorach Muzeum Archeologicznego i Etnograficznego w Lodzi (The earliest Polish notes in the collection of the Archaeological and Ethnograhical Museum in Lodz), Prace i Materialy Muzeum Archeologicznego i Et- nograficznego w Lodzi, seria numizmatyczna i konserwatorska vol. 2, 1982, pp. 51-62, plates 1-XII. Footnotes 1. Hetman was the highest military rank, from the 16th to the 18th century, in the Kingdom of Poland and the Great Duchy of Lithu- ania; it was held independently. 2. Voivodship (wojewodztwo) is a traditional Polish administrative unit, equal to province or department. 3. Mint-foot was the basis of the Polish monetary standard: it estab- lished the quantity and quality of coins struck. 4. Great Poland is the name of one of the Polish historical provinces. Dom Pedro (Continued from page 117) tion was accomplished in Brazil. In 1880, he lost his popularity among the wealthy landowners due to his liberal policies, in- cluding the abolition of slavery, freedom of speech and freedom of the press. A military revolt helped create the Republic of Brazil, which was established on November 15, 1889. Dom Pedro II left the country with his family, refusing the considerable sum of money offered to him. He died two years later. The reversed portrait of Dom Pedro II has bothered me for years, so I decided to submit my observations to these pages. Undoubtedly there are portraits of others, printed or engraved in reverse. Have you seen any? From the illustrations shown here we can see that if a portrait is to be reversed, without visible notice, the subject must have his or her hair parted in the middle, or no part at all, and have no overlapping lapels. This article was originally published without illustrations in the Interna- tional Bank Note Society Journal, Vol. 24, No. 1. 1985. Since then I have located photographs that illustrate the text. . &• -It pay-I aide at the (Ave of the Itutlana &•i N'Va,sliitigton R. it ht elarent bsnk hills, in $urris or ono or more dol-i :larA., vavile for f4ros diarg.o.; TLA17 SFIPT. 1Nfi2. Ct ,,nrne. Paper Money Whole No. 142 Page 127 Railroad Notes and Scrip of the United States, the Confederate States and Canada by RICHARD T. HOOBER (Continued from PM 141, Page 92) UTAH SALT LAKE CITY—BINGHAM CANYON & CAMP FLOYD RAILROAD COMPANY The road was incorporated September 10, 1872, to connect the silver and lead mining districts of the Bingham Canyon area with the Utah Southern Railroad. On September 1, 1881, the road was sold under foreclosure to the Denver & Rio Grande Western Railway. On July 31, 1908, the com- pany merged to form the Denver & Rio Grande Railroad. 1. 1.00 (L) Indian, 1 above. (C) Train. (R) Female, i above. R7 2. 2.00 Similar to No. 1, except denomination. R7 3. 5.00 Similar to No. 1, except denomination. R7 4. 10.00 Similar to No. 1, except denomination. Date—January 15, 1874. Imprint—H. Seibert & Bros. Lith. 182 William St. N.Y. R7 VERMONT RUTLAND—RUTLAND & WASHINGTON RAILROAD 1. 50 Type set. (C) 5. Date—Sept. 1862. Imprint — None. R5 Vermont No. 1 XA AFA, MP:VI Page 128 Paper Money Whole No. 142 VIRGINIA ALEXANDRIA — ALEXANDRIA, LOUDON & HAMPSHIRE RAILROAD COMPANY The road was chartered March 15, 1853, and construction started February 16, 1855. The line from Alexandria to Leesburg was opened in 1858. The original line was to end at Round Hill. A Virginia Act of March 29, 1870, authorized the company to change the route from the original proposal to one as the most direct through the counties of Clarke and Frederick, and by Win- chester. The corporate name would be changed to "Washington & Ohio," and the capital stock increased to $15,000,000. A West Virginia act authorized the extension to the west bank of the Ohio River at any point between the Little Kanawah and the Big Sandy rivers with a branch to the Great Kanawah and such branches as might be expedient. The road was acquired by the Washington, Ohio & Western Railroad, May 9, 1893, then leased to the Richmond & Danville Railroad, in October, 1886 for 999 years. The railroad later became part of the Southern Railway. 1. 250 Female holding sheaf, 25 above. (C) Train. (R) TWENTY-FIVE. 2. 500 No descripton. Date—May 25, 1861. Imprint — None Virginia No. 1 BERKELEY COUNTY—BERKELEY COAL MINING & RAILROAD 3. 100 Type set note Date-1837. Imprint—Unknown. LYNCHBURG —VIRGINIA & TENNESSEE RAILROAD The road's first locomotive, "Roanoke," made its initial run from Lynchburg to Bristol, Ten- nessee, in 1856. 4. 5.00 (L) 5 above, FIVE below. (C) Train. (R) 5 above, 5 below. R6 5. 10.00 (L) Three women, 10 above. (C) Man. (R) 10 above, X below. R6 6. 20.00 (L) 20 above, XX below. (C) Woman, eagle, train. (R) 20 above, TWENTY below. R6 R7 R7 R7 (To be continued) Paper Money Whole No. 142 Enemy's Currency (Continued from page 115) Footnotes 1 War of the Rebellion: Official Records of the Union and Confeder- ate Armies (Washington: Government Printing Office) (Hereinafter cited as OR), Series I, Vol. 16, Part II, p. 882 2 Immediately after the Confederates left Frederick, Maryland in September 1862 a reporter from the New York Herald asked Fred- erick merchants: Question: Was there any Federal money used by the Confeder- ates in their purchases? Answers: None at all. The only money besides Confederate Scrip was some South Carolina money. 3 At the time of General Orders No. 63 the counterfeits of Mr. S.C. Upham of Philadelphia were being produced and sold. See Paper Money, Vol. XV No. 4/5, July-October 1976, p. 188-199. 4 OR. Series I, Vol. 23, Part II, p. 189 5 OR, Series I, Vol. 23, Part I, p. 262 6 OR, Series I, Vol. 30, Part III, p. 757 7 Heros Von Borcke, Memoirs of the Confederate War for Inde- pendence (Philadelphia: J.B. Lippincott & Co., 1867), p. 87. 8 Albert Castel, "Morgan's Last Raid", Blue & Gray Magazine (December 1988) 9 OR, Series IV, Vol. 3, p. 82 10 John Bakeless, Spies of the Confederacy (Philadelphia: J.B. Lip- pincott Company, 1970), p. 87. Mentions a Charles E. Langley, employee of the B & 0 Railroad who was engaged in movement of supplies through the lines. 11 OR, Series I, Vol. 33, p. 1174 12 OR, Series I, Vol. 34, Part II, p. 978 13 OR, Series III, Vol. 4, p. 158 14 OR, Series I, Vol. 33, p. 1241 15 John H. Alexander, Mosby's Men (New York: The Neale Publish- ing Company, 1907), 104-15. 16 OR, Series IV, Vol. 3, p. 477 17 OR, Series IV, Vol. 3, p. 741 18 OR, Series I, Vol. 42, Part III, p. 1159 19 OR, Series II, Vol. 7, p. 460 20 OR, Series II, Vol. 6, p. 469 21 OR, Series II, Vol. 6, p. 507 22 OR, Series III, Vol. 4, p. 432 23 OR, Series I, Vol. 37, Part II, p. 596 24 OR, Series II, Vol. 8, p. 131 25 OR, Series I, Vol. 46, Part II, p. 366 26 OR, Series I, Vol. 49, Part II, p. 1254 27 Michael P. Musick, "Uncle Sam's Confederate Fortune", North South Trader, September-October 1977, p. 14-16. Syngfapitie Vigrtetteb by ROBERT H. LLOYD T HE early 'twenties were great years for bank note col-lectors. We were able to buy foreign currencies on thestreets from vendors who hawked their wares by pointing out that German marks, once worth 23.84, someday might again return to par from their low market quotations. The ap- peal was potent, as a small investment from a quarter to a few dollars might bring a tidy profit. A hundred marks for a quarter! Page 129 The writer admits to buying German marks over a period of three years, not with any idea of future redemption, but to see if a set of quali- ty notes could be acquired this way. A great many people were "into it" it seemed. Travel agents—not many in those days—mostly sold tickets to Europe, and many did a good business in foreign exchange. Their window displays were intriguing. Many notes were mounted on the in- side of the window to attract attention; others were in frames arranged by countries, next to steamship posters. There were marks, rubles, kronen, zlotys, francs, lire and florins. If you have a faded note that shows signs of mounting, it could well be one of these window display items of the 1920s. In addition to travel agents, some small banks got into the game. One that comes to mind is the Public State Bank of Chicago, whose letter- size double-fold pages listed all their offerings, and notes by denomina- tions in quantities of 1, 10 or 100. The sheets were printed on pink, orange or canary paper, and were published for over a year, until the craze subsided. Alas! I destroyed these along with many of my old files when I gave up our city home on retirement. The correspondence. much of it from prominent men in the ANA, would be interesting reading today. The Public State Bank enabled me to complete some nice sets from Poland, Russia, Austria and Hungary, and a few more costly notes from the allied nations. It was an exciting time to be a collector. Many of the notes I obtained for a modest amount were in my cabinet for over forty years. More on the 'twenties later. Awards at Memphis In addition to the attractive plaque that each exhibitor received from the Memphis Coin Club, the following awards were pre- sented. The Fractional Currency Club: Doug Hales, first; Ben- ny Bolin, second; Nancy Wilson, third. The International Bank Note Society (IBNS) Amon Carter, Jr. Award: Armen Youssefi. The Society of Paper Money Collectors (SPMC): Robert Ross; the Julian Blanchard Award, Gene Hessler. In addition to these two awards presented at the banquet, the Nathan Gold Award for the advancement of paper money col- lecting went to Chet Krause. The Society's Award of Merit was presented to James Haxby for his Standard Catalog of U.S. Obsolete Bank Notes. Literary Awards for articles in PAPER MONEY were as follows: first, David Ray Arnold, Jr. for "The Calmady Children" in No. 138; second, Rodney Battles for "John S. Fillmore, U.S.A. Paymaster" in No. 136; third, Ron Horst- man for "The First Greenbacks of the Civil War" in No. 135. A new award was announced at the SPMC banquet —the R.A. Johnson Memorial Award for a currency exhibit that dis- plays unusual serial numbers. The first recipient of this award was Mike Abramson. The 121st Numismatic Ambassador was announced at the SPMC banquet. Chet Krause presented this award to SPMC- member and IBNS president, Joseph Boling. Paper Money Whole No. 142Page 130 Paper Money will accept classified advertising from members only on a basis of 15t per word. with a minimum charge of $3.75. The primary purpose of the ads is to assist members in exchanging, buying, selling, or locating specialized material and disposing of duplicates. Copy must be non-commercial in nature. Copy must be legibly printed or typed. accompanied by prepayment made payable to the Society of Paper Money Collectors, and reach the Editor, Gene Hessler, P.O. Box 8147, St. Louis, MO 63156 by the tenth of the month preceding the month of issue (i.e. Dec. 10. 1988 for Jan 1989 issue). Word count: Name and address will count as five words. All other words and abbreviations, figure combinations and initials count as separate. No check copies. 10% discount for four or more insertions of the same copy. Sample ad and word count. WANTED: CONFEDERATE FACSIMILES by Upham for cash or trade for FRN block letters, $1 SC, U.S. obsolete. John W. Member, 000 Last St., New York, N.Y. 10015. (22 words: $2: SC: U.S.: FRN counted as one word each) STOCK CERTIFICATES & BONDS — buy and sell! Current catalog of interesting certificates for sale. $1. Buying all—but especially interest- ed in early Western certificates. Ken Prag, Box 531PM, Burlingame, CA 94011, phone (415) 566-6400. (149) WANTED: NORTH CAROLINA OBSOLETE CURRENCY, SCRIP, BANK ITEMS AND CONFEDERATE ITEMS. Single items or collections. Send description and price. Jim Sazama. P.O. Box 1235, Southern Pines, NC 28387. (143) OHIO NATIONALS WANTED: Also want Lowell, Holland. Tyler, Ryan, Jordan, O'Neill. Private Collector. Lowell Yoder, P.O. Box 444, Holland, OH 43528. (142) ALASKA SCRIP, CLEARING HOUSE CERTIFICATES, NA- TIONALS AND TOKENS WANTED. Describe or ship with your price or for my offer. Ron Benice, 25 Stewart Place, Mount Kisco, NY 10549. (143) BUYING OLD BANK CHECKS, certificates of deposit, bills of ex- change, older books on Confederate or obsolete bank notes. Bob Pyne, P.O. Box 149064, Orlando, FL 32814. (145) WANTED: INVERTED BACKS FOR MY PERSONAL COLLEC- TION . Any condition; large and small-size notes. Please send photo or description with your price for the notes. Lawrence C. Feuer, c/o C &F, 200 E. Post Rd., White Plains, NY 10601. (146) ALBANY & TROY, NEW YORK NATIONAL WANTED. Also Altamont, Cohoes, Ravena, Watervliet, West Troy, Lansingburgh, Castleton. Describe or ship with price or for offer. William Panitch, P.O. Box 12845, Albany, NY 12212. (149) NEW YORK NATIONALS. Ballston, Saratoga, Mechanicville, Schuylerville, Corinth, Waterford. South Glen Falls. Send description and price. All letters answered. Thomas Minerley, 30 Charles St., Balls- ton Spa, NY 12020. (143) BUYING OLD BANK CHECKS, certificates of deposit, bills of ex- change, older books on Confederate or obsolete bank notes. Bob Pyne, P.O. Box 149064, Orlando, FL 32814. (145) NEW YORK NATIONALS WANTED FOR PERSONAL COL- LECTION: TARRYTOWN 364, MOUNT VERNON 8516, MAMA- RONECK 5411, Rye, Mount Kisco, Hastings. Croton on Hudson, Pelham, Somers, Harrison, Ossining, Yonkers, White Plains, Irvington, Peekskill. Bronxville, Ardsley, Crestwood, New Rochelle, Elmsford, Scarsdale, Larchmont. Port Chester, Tuckahoe. Send photocopy; price. Frank Levitan, 530 Southern Blvd., Bronx, NY 10455, (212) 292-6803. (144) WANTED: I will pay $100 for a CU, $1 FRN or a small-size CU, SC with serial number 00099999. Any series. Any block. Jim Lund, 2805 County Rd. 82, Alexandria. MN 56308. (143) NUMBER ONE NOTES AND SHEETS, 11111111 through 99999999, nine digit 100000000. 2 through 9, large-size "stars" CU. small-size number one "stars", $100 1966 "stars" s/n 1 to 4, Cu 1907 $10 Gold. and high denominations in all United States types and varieties. Want Michigan Nationals, singles and sheets. KALAMAZOO, MICHIGAN all types. Paying up to $25,000.00 for wanted notes and sheets. Jack H. Fischer 3123 Bronson Boulevard, Kalamazoo. MI 49008. A/C 616-344-5653 and 343-5538. (145) 1907 CLEARING HOUSE SCRIP AND CHECKS WANTED: Need examples and information from most states. Please send informa- tion with copy. I am currently interested in scrip from Mississippi, Ohio. Wisconsin, Virginia, North Dakota, Georgia and Florida. Tom Sheehan, P.O. Box 14, Seattle, WA 98111. (144) MINNESOTA MATERIAL WANTED FOR MY PERSONAL COLLECTIONS: Obsoletes. Nationals, Postal Notes, Civil War Tokens. Have other states for trade. Send want list. Shawn Hewitt, Box 1114, Minneapolis, MN 55458-1114. (144) MICHIGAN NATIONALS, OBSOLETES, SCRIP, SC, U.S. FRACTIONALS. FRN block set 1963-1974 including -Ars, complete 358 notes $1,200. Partial block sets, 1963, 1963A & B. 1969, 1974 lacking 4 notes, $625. Dr. Wallace Lee. Suite 210, Summit Pl., Ponti- ac, MI 48053. (144) WANTED, INFORMATION ON: $1, 1865 1st NB of YPSILANTI. I have found three auction listings of this note. Grinell 2016 Gd & 4245 Fair; & Kosoff 517 Gd (10/26/71). Are these listings the same note or is there more than one known? David Davis, P.O. Box 205, Ypsilanti, MI 48197. (144) WANTED: ALL OBSOLETE CURRENCY, ESPECIALLY GEORGIA, which I collect. Particularly want any city-county issues, Atlanta Bank, Georgia RR Banking, Bank of Darien, Pigeon Roost Min- ing, Monroe RR Banking, Bank of Hawkinsville, La Grange Bank, Cen- tral Bank Milledgeville, Ruckersville Banking Co., Bank of St. Marys, Cotton Planters Bank, any private scrip. I will sell duplicates. Claud Murphy, Jr., Box 24056, Winston-Salem, NC 27114. (147) FIXED PRICE LIST OF BROKEN BANK NOTES, U.S. notes, paper Americana and tokens, about 40 pages. Norman Peters, P.O. Box 29, Lancaster, NY 14086. (144) PAPER MONEY (SPMC JOURNAL), Vols. 5-12, 1966-1973 com- plete, excellent cond. Also, SPMC membership lists for 1966, 1967 & 1973 (incl. constitution and bylaws). Index to Vols. 1-10. 1962-1971. Make offer. C. Meccarello, 228 Vassar Rd., Poughkeepsie, NY 12603. NATIONAL CURRENCY WANTED. PLEASE DESCRIBE & PRICE: Hillsboro, & Lewistown, IL; Louisville, KY 109; Iron River, MI, McCook, NE; Swedesboro. NJ; Gastonia, NC 4377; McAlester, OK; Luzerne, Quakertown, Shippensburg, Swissvale, Union City, Wikensburg, & Wrightsville, PA; Waco, TX 6572; Janesville, WI. Apelman's, Box 283, Covington, LA 70433.. SCHENECTADY, NEW YORK 1929, T2 $10 & $20 WANTED. Also Canadian merchants scrip, chartered bank notes from Quebec Provence. St. Eloi, P.O. Box 3536, Holiday, FL 34690-0536. (813) 942-6613; eve. 938-5141. (147) WANTED: I will pay $100 for a CU, $1 FRN with serial number 00088888. Any series. Any block. Jim Lund, 2805 County Rd. 82, Alexandria, MN 56308. (145) WANTED. OBSOLETE BANKS (PA): Pottsville, Minersville, Tama- gua, Schuylkill Haven. Nationals (PA): Ashland 403, Pottsville 649 $50 Ty I. (IL): Gillespie 12314 $5L. Continental: 5-20-77 signed H. Christ, Jr. Robert Gillespie, P.O. Box 4281, Mt. Penn, PA 19606. Paper Money Whole No. 142 ['' I (1 1 1 .11 1 4: I I 1. opi,) j) 111101 ( 11 " Page 131 N WE ARE ALWAYS BUYING ■ FRACTIONAL CURRENCY ■ ENCASED POSTAGE ■ LARGE SIZE CURRENCY ■ COLONIAL CURRENCY WRITE, CALL OR SHIP: T)R Nte;;''CIVERIElit Inc. LEN and JEAN GLAZER (718) 268.3221 POST OFFICE BOX 111 FOREST HILLS, N.Y. 11375 --- 11'VPFRVIUAEl (()1 I "Ft Ms NI Charter Member SYNGRAPHIC SPECIALS 1902-08, $10 "Bank of North America" Phila., PA. The only National Bank Note that does not have the word "National" in the title. UNC. with light fold. Scarce, popular. $475 1902, $5 "American National Bank", Idaho Falls, Idaho. CR AU. Lists $2,250 in CU. Priced to sell. $1,150 1902, $5 "Brotherhood of Locomotive Engi- neers Cooperative National Bank of Cleve- land". The longest name of any National UNC with faint fold. $500 SASE for our list of other "Syngraphic Specials". Be sure to visit the ANA's great World-Class Museum. It now houses the $2 Million Collection of United States Currency, also the 1913, Liberty-Head nickel, both gifts from Aubrey & Adeline Bebee. AUBREY and ADELINE BEBEE ANA LIFE #110, P.O. Box 4290, Omaha, NE 68104 • (402) 558-0277 Page 132 Paper Money Whole No. 142 e of .1,,,,., , EARLY , .., , ,s.- AMERICAN . r NUMISMATICS \ i .,,,,,,.. *619-273-3566 COLONIAL & CONTINENTAL CURRENCY SPECIALIZING IN: SERVICES: q Colonial Coins q Portfolio q Colonial Currency Development q Rare & Choice Type q Major Show q EARLY Coins Coverage q Pre-1800 Fiscal Paper q Auction We maintain the LARGEST ACTIVE INVENTORY IN THE WORLD! o SEND US YOUR LISTSWANT FREE PRICE . LISTS AVAILABLE. AMERICAN NUMISMATICS c/o Dana Linett o Encased Postage Stamps Attendance ■ P.O. Box 2442 q LaJolla, CA 92038 ■ 619-273-3566 Members: Life ANA, CSNA-EAC, SPMC, FUN, ANACS EIGHTEEN PENCE. WE NEED TO BUY If you are selling a single note or an entire col- lection, you will be pleased with our fair offer — NO GAMES PLAYED HERE! (Selling too! Write for free catalog.) Subject to our inventory requirements we need the following: ALL WORLD BANK NOTES Also U.S. Large Size Notes U.S. Encased Postage All Military Currency Souvenir Cards U.S. Fractional Currency National Bank Notes Colonial Currency U.S. Small Size Currency Ship With Confidence or Write We pay more for scarce or rare notes. TOM KNEBL, INC. (714) 886-0198 P.O. Drawer 3949 San Bernardino, CA 92413 Ir 0 draws a p■IT■no (1)# Rom (7444, / I COLLECT MINNESOTA OBSOLETE CURRENCY and SCRIP Please offer what you have for sale. Charles C. Parrish P.O. Box 481 Rosemount, Minnesota 55068 SPMC 7456 LM ANA Since 1976 I Paper Money Whole No. 142 Page 133 Caul; at &mum Sell Your Coins & Currency To The Highest Bidder •Pr . NASCA Auctions reach the nation's most important collectors of U.S. and International Coins, Currency, Stocks & Bonds, Autographs. Medals. Tokens, and Related Items. Consigning is easy. Immediate cash advances are readily available. PENCE.. sae r, ie uino • S. .0111 "IL I cam) , , , ,..,, amn) I1 Accepting Consignments Now For These Auctions: JUNE 1989, MEMPHIS INTERNATIONAL A major offering of STOCKS, BONDS & RELATED ITEMS. Closes April 15, 1989. JUNE 1989 & 1900, MEMPHIS. Major public auctions to be held in conjunction with BOTH the 1989 & 1990 MEMPHIS INTERNATIONAL PAPER MONEY SHOWS! Plan ahead. NAs cA Space will be at a premium in both catalogues which will feature FULL COLOR photography. U.S. & INTERNATIONAL CURRENCY, STOCKS & BONDS & RELATED ITEMS. Division of R.M. Smythe & Co., Inc. Subscription Information: U.S. & CANADA OVERSEAS One Year Two Years Three Years One Year TVio Years Three Years NASCA $45 $80 $105 $55 $100 $125 FRIENDS OF FINANCIAL HISTORY $25 $45 $60 $30 $55 $75 COMBINED SUBSCRIPTION $70 $120 $160 $85 $150 $195 26 Broadway New York, NY 10004 NY residents Toll-Free 800-622-1880 call 212-943-1880 MYLAR D CURRENCY HOLDERS This month I am pleased to report that all sizes are in stock in large quantities so orders received today go out today. The past four years of selling these holders has been great and many collections I buy now are finely preserved in these. For those who have not converted, an article published this past fall in Currency Dealer Newsletter tells it better than I can. Should you want a copy send a stamped self-addressed #10 business envelope for a free copy. Prices did go up due to a major rise in the cost of the raw material from the suppliers and the fact that the plant work- ers want things like pay raises etc. but don't let a few cents cost you hundreds of dollars. You do know—penny wise and pound .foolish. SIZE INCHES 50 100 500 1000 Fractional 41/4 x 21/4 $14.00 $25.25 $115.00 $197.50 Colonial 51/2 x 3%, 15.00 27.50 125.00 230.00 Small Currency 6% x 15.25 29.00 128.50 240.00 Large Currency 7 '/ x 3 1/2 18.00 33.00 151.50 279.50 Check Size 9% x 4 1/4 22.50 41.50 189.50 349.00 Baseball Card Std 2 3/4 x 3 3/4 13.00 23.50 107.50 198.00 Baseball Bowman 2% x 4 14.00 25.50 117.00 215.00 Obsolete currency sheet holders 8 3/4 x 14, $1.10 each, mini- mum 5 Pcs. SHIPPING IN THE U.S. IS INCLUDED FREE OF CHARGE Please note: all notice to MYLAR R mean uncoated archival quality MYLAR R type D by Dupont Co. or equivalent mater- ial by ICI Corp. Melinex type 516. DENLY'S OF BOSTON P.O. Box 1010 I Boston, MA 02205 Phone: (617) 482-8477 BANKS 1868 UNION NATIONAL BANK (Philadelphia) $75 Black/White Capital Stock certificate with several attractive vignettes. One of the very few engraved banking stocks, from the American Bank Note Company. Pen-cancelled, otherwise in VF + condition. Our Current BANK listing includes more than 3 dozen Bank stocks, from 1812 to 1933, many with vignettes by the major bank note companies of the 19th century. Call or write today and ask for our BANK listing, or for our general catalogue of more than 150 stocks and bonds . CENTENNIAL DOCUMENTS P.O. Box 5262, Clinton, NJ 08809 (201) 730-6009 1"AllikaiitAWCAIWADA 4 3 ? CANADIAN BOUGHT AND SOLD • CHARTERED BANKNOTES. • DOMINION OF CANADA. • BANK OF CANADA. • CHEQUES, SCRIP, BONDS & BOOKS. FREE PRICE LIST CHARLES D. MOORE P.O. BOX 1296P LEWISTON, NY 14092-1296 (416) 468-2312 LIFE MEMBER A.N.A. #1995 C.N.A. #143 C.P.M.S. #11 Page 134 Paper Money Whole No. 142 IAN A. MARSHALL P.O. Box 1075 Adelaide St. P.O. Toronto, Ontario Canada, M5C 2K5 WORLD PAPER MONEY Also World Stocks, Bonds and Cheques 416-365-1619 Extensive Catalog for $2.00, Refundable With Order CSA and Obsolete Notes CSA Bonds, Stocks & Financial Items P.O. Box 712 / Leesville, SC 29070 / (803) 532-6747 ANA-LM SCNA PCDA SPMC-LM BRNA FUN HUGH SHULL BUYING AND SELLING BUYING / OBSOLETESELLING. CURRENCY, NATIONAL • UNCUT SHEETS, PROOFS, SCRIP S BARRY WEXLER, Pres. Member: SPMC, PCDA, ANA, FUN, GENA, ASCC (914) 352.9077 --AL N C . P.O. BOX 84 • NANUET, N.Y 10954 Nobody pays more than Huntoon for ARIZONA & WYOMING state and territorial Nationals NIZIOXAL COMENCY Q4"X' --irkAall±$,i141":$ fSSEES ;it 10111110114.*l tvr 111 a∎ n. : 5720 Peter Huntoon P.O. Box 3681 Laramie, WY 82071 (307) 742-2217 Million Dollar Buying Spree Currency: Nationals MPC Lg. & Sm. Type Fractional Obsolete Foreign Stocks • Bonds • Checks • Coins Stamps • Gold • Silver Platinum • Antique Watches Political Items • Postcards Baseball Cards • Masonic Items Hummels • Doultons Nearly Everything Collectible COIN SHOP EST 1960 INC 474‘1449/6.4&f.t" 399 S. State Street - Westerville, OH 43081 1-614-882-3937 1-800-848-3966 outside Ohio SEND FOR OUR COMPLETE PRICE LIST FREE CTQ Life Member Paper Money Whole No. 142 Page 135 Page 136 Paper Money Whole No. 142 WANTED! FLORIDA under the rule of Spain, England or the United States...virtually anything prior to March, 1845: bonds, books, checks, documents, stocks, medals and tokens. Especially want material re: • Alabama, Florida & Georgia Railroad • The 1817 Amelia Island Affair • The Bank of Pensacola • Southern Life Insurance & Trust Co. • The Union Bank of Florida Photocopy or description and price first response, please. Thank you! CARLING GRESHAM P. 0. Drawer 580W, Pomona Park, FL 32181 (904) 649-9730 RESEARCH INQUIRIES • APPRAISALS MADE • BROKERAGE & COMMISSION SALES • CONSULTING SERVICES MOREY PERLMUTTER HISTORIAN — ANTIQUARIAN WANTED: Strictly Gem Crisp Uncircu- lated U.S. Large Size Type Notes, All Varieties. Write or Call 617.734-7344 between 11 a.m. and 4 p.m. EDT P.O. Box 176, Newton Ctr., MA 02159 COMPUTERIZE YOUR INVENTORY Automate your record keeping with the NUMISMA In- ventory program. Handles U.S. and foreign bank- notes, C.S.A. notes, broken bank notes, souvenir cards, and lots more (including coins, antiques, etc.). Keeps information on what you have and what you sold, plus a complete description of each item. Prints current inventory customer lists and prints mailing labels. Requires IBM PC or compatible com- puter (hard disk recommended). Only $49.95 ppd. For brochure send 45¢ in stamps. Louis Barton, P.O. Box 215, Theodosia, MO 65761. MEMBER SPMC BROKEN BANK NOTES CONFEDERATE CURRENCY •Collections Needed •Buy/Consignment •Approval Service Available— •Supply One Dealer Reference or Your S.P.M.C. Number. PRICE LIST — Enclose Large Size 25c Self-Addressed Stamped Envelope. DON EMBURY 121 MAYNARD, #1, GLENDALE, CA 91205 S.P.M.C. 3791 PAPER MONEY UNITED STATES Large Size Currency • Small Size Currency Fractional Currency • Souvenir Cards Write For List Theodore Kemm 915 West End Avenue q New York, NY 10025 gnterestingoeZ =*Nate5 About Denaminations By *9er J-1. Durand This new profusely illustrated book covers the history of over a hundred denominations used on notes during the state banking era. This book is a MUST for the obsolete bank note collector. $18.95 + $1.05 P&I ROGER H. DURAND P.O. Box 186 Rehoboth, Mass. 02769 FRANCE WANTED! Please help me build my collection. I need the following notes and will pay top collector prices to acquire them. May I hear from you soon? • Important Type Notes from about 1750 to date. • Specimen Notes AU or better. • World War I and II Locals — these can be Chambers of Commerce, Merchants, Factories, Mines, etc. • Encased Postage Stamps — even some very common pieces are required. • Postcards that show French Banknotes. I am a very serious collector of these items and have been known to pay some sky-high prices for needed items. Priced offers are preferred as I can't tell you what you should get for your material! Finders fee paid for successful referrals! If possible please provide me with a photo-copy of item(s). R. J. BALBATON P.O. BOX 911 NORTH ATTLEBORO, MASSACHUSETTS 02761-0911 Tel. 1-508-699-2266 Days Dean Oakes Nick man- Oakes Auctions ,Inc. Purveyors of National Bank Notes & U.S. Currency to the collecting fraternity for over 20 years: As a seller, this method gives you the opportunity to get the full market price without the "in" dealers short-circuiting the bidding, as so often is seen at public auction sales. ith 36 sales behind us, we look forward to a great 1989 for all currency hobbyists as well as our mail bid and floor auctions. We have had the pleasure of selling several great notes during the past years at prices for single notes above $30,000 with total sales of an auction in the $250,000 area. Currency collecting is alive and well. If you have currency, a single rarity, or an entire collection, now is the time to consign. Our sales will give you the pulse of the market. Currency collecting is alive and well. Our November auction is in the planning stages now; watch for further details. There will be hundreds of lots of U.S. and national currency in each sale. Join others in experiencing the true market between buyer and seller at a Hickman-Oakes auction. Write, or call 319-338-1144 today! As a seller: Our commission rate is 15% and down to 5% (depending on value of the lot) with no lot charge, no photo charge, in fact no other charges. As a buyer: When bidding and winning lots in our auctions you are charged a 5% buyers fee. As a subscriber you receive at least 4 auction catalogs and prices realized after the sale, plus any price lists we put out, and all by 1st class mail. If you send us $8 now, we will send you the June Memphis convention auction catalogue and prices rea- lized plus our other auction catalogues and price lists through June of 1989. Send $8.00 now, you won't be sorry. Our currency auctions were the first to use the Sealed Mail Bid System, which gives you, the bidder and ultimate buyer, the utmost chance to buy a note at a price you want to pay with no one looking over your shoulder. Drawer 1456 jowa at Iowa 57240 _Hickman Au nc. Oakes vslo. YEARS C1131WIll unal0010 ,John Hickman 319-338-1144 1-k■-