official journal of The Society of Paper Money Collectors ANA Honors Three SPMC Stalwarts Anderson, Boling & Wolka America’s Oldest and Most Accomplished Rare Coin Auctioneer 1550 Scenic Ave., Suite 150, Costa Mesa, CA 92626 • 949.253.0916 470 Park Ave., New York, NY 10022 • 212.582.2580 • NYC@stacksbowers.com 84 State St. (at 22 Merchants Row), Boston, MA 02109 • 617.843.8343 • Boston@StacksBowers.com 1735 Market St. (18th & JFK Blvd.), Philadelphia, PA 19103 • 267.609.1804 • Philly@StacksBowers.com Info@StacksBowers.com • StacksBowers.com California • New York • Boston • Philadelphia • New Hampshire • Oklahoma • Virginia Hong Kong • Paris • Vancouver SBG PM Aug2023 HLs 230601 LEGENDARY COLLECTIONS | LEGENDARY RESULTS | A LEGENDARY AUCTION FIRM Featured Highlights from the STACK’S BOWERS GALLERIES August 2023 Global Showcase U.S. Currency Auction Auction: August 14-19, 2023 • Costa Mesa, CA Expo Lot Viewing: August 6-11, 2023 • Pittsburgh, PA Contact Us for More Information Today! West Coast: 800.458.4646 • East Coast: 800.566.2580 • Info@StacksBowers.com Fr. 197a. 1863 $20 Interest Bearing Note. PMG Very Fine 20. Fr. 2123-G. 1988 $50 Federal Reserve Note. Chicago. PCGS Currency Very Fine 30. From the Issie Chaimovitch Collection of Radars. Fr. 37. 1917 $1 Legal Tender Note. PMG Gem Uncirculated 66 EPQ. From the Wisconsin Collection. Fr. 2173-B. 1990 $100 Federal Reserve Note. New York. PMG Choice About Uncirculated 58 EPQ. From the Issie Chaimovitch Collection of Radars. Fr. 280m. 1899 $5 Silver Certificate Mule Note. PMG Choice Uncirculated 64. From the Wisconsin Collection. Fr. 1600. 1928 $1 Silver Certificate. PCGS Currency 64 PPQ. From the Issie Chaimovitch Collection of Radars. Fr. 2175-A. 1996 $100 Federal Reserve Note. Boston. PMG Choice Uncirculated 63 EPQ. Binary-Radar-Rotator S/N. From the Wisconsin Collection. MD-44. Maryland. January 1, 1767. $1. PCGS Banknote Gem New 65 PPQ. From the Mid-Continent Collection. SC-153. South Carolina. February 8, 1779. $40. PMG Gem Uncirculated 65 EPQ. From the Mid-Continent Collection. Fr. 1152. San Francisco, California. $20 1870. The First National Gold Bank. Charter #1741. PMG Very Fine 25. CC-59. Continental Currency. February 26, 1777. $6. PMG Superb Gem Uncirculated 67 EPQ. From the Mid-Continent Collection. Fr. 2221-G. 1934 $5000 Federal Reserve Note. Chicago. PMG Choice Uncirculated 64 EPQ. 253 Series 1929 $100 NBNs Rarity--Lee Lofthus 266 $20 Series 1880 LT Serial Number Color Change--Peter Huntoon 269 Civil War Stamp Money--Steve Feller 276 Glass-Borah Amendment--Peter Huntoon 282 Gardiner H. Wright & Co.--Terry Bryan 284 The Promise of a Florida Soldier--Charles Derby 288 1940 Emergency Issue of Deventer, The Netherlands--Roeland Krul 292 UNESCO World Heritage Sites-Algeria--Roland Rollins 294 The Mystery of the Missing Statue--Tony CHibbaro 286 Wobus Postal Note--Bob Laub SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 247 274 Central National Bank of Frederick, MD--J. Fred Maples Columns Advertisers SPMC Hall of Fame The SPMC Hall of Fame recognizes and honors those individuals who have made a lasting contribution to the society over the span of many years.  Charles Affleck Walter Allan Doug Ball Hank Bieciuk Joseph Boling F.C.C. Boyd Michael Crabb Forrest Daniel Martin Delger William Donlon Roger Durand C. John Ferreri Milt Friedberg Robert Friedberg Len Glazer Nathan Gold Nathan Goldstein James Haxby John Herzog Gene Hessler John Hickman William Higgins Ruth Hill Peter Huntoon Glenn Jackson Don Kelly Lyn Knight Chet Krause Allen Mincho Clifford Mishler Barbara Mueller Judith Murphy Dean Oakes Chuck O’Donnell Roy Pennell Albert Pick Fred Reed Matt Rothert John Rowe III Herb & Martha Schingoethe Hugh Shull Glenn Smedley Raphael Thian Daniel Valentine Louis Van Belkum George Wait D.C. Wismer From Your President Editor Sez New Members Uncoupled Chump Change Obsolete Corner Quartermaster Cherry Picker Corner 249 250 251 298 304 305 308 311 Robert Vandevender Benny Bolin Frank Clark Joe Boling & Fred Schwan Loren Gatch Robert Gill Michael McNeil Robert Calderman Stacks Bowers Galleries IFC Pierre Fricke 247 Greysheet 275 Tom Denly 281 Higgins Museum 283 Fred Bart 289 PCGS-C 290 MPC Book 291 DBR Currency 293 Benny Bolin 295 Bob Laub 297 Lyn Knight 310 FCCB 313 ANA 314 PCDA 315 Heritage Auctions OBC Fred Schwan Neil Shafer SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 248 Officers & Appointees ELECTED OFFICERS PRESIDENT Robert Vandevender II rvpaperman@aol.com VICE-PRES/SEC'Y Robert Calderman gacoins@earthlink.net TREASURER Robert Moon robertmoon@aol.com BOARD OF GOVERNORS APPOINTEES PUBLISHER-EDITOR Benny Bolin smcbb@sbcglobal.net ADVERTISING MANAGER Wendell Wolka purduenut@aol.com Megan Reginnitter mreginnitter@iowafirm.com LIBRARIAN Jeff Brueggema MEMBERSHIP DIRECTOR Frank Clark frank_clark@yahoo.com IMMEDIATE PAST PRESIDENT Shawn Hewitt WISMER BOOk PROJECT COORDINATOR Pierre Fricke From Your President Robert Vandevender IIFrom Your President Shawn Hewitt Paper Money * July/August 2020 6 jeff@actioncurrency.com LEGAL COUNSEL n Mark Anderson mbamba @aol.com Robert Calderman gacoins@earthlink.com Matt Drais stockpicker12@aol.com Mark Drengson markd@step1software.com Jerry Fochtman jerry@fochtman.us Pierre Fricke pierrefricke@buyvintagemoney.com Loren Gatch lgatch@uco.edu William Litt billlitt@aol.com J. Fred Maple s maplesf@comcast.net Cody Regenitter cody.reginnitter@gmail.com Andy Timmerman andrew.timmerman@aol.com Wendell Wolka purduenut@aol.com Greetings. During our June Executive Board meeting, we held an election for the four officers of our organization. I would like to thank the Board of Governors for selecting me as your President for my second and final 2-year term. Our Vice President and Secretary Robert Calderman along with our Treasurer Robert Moon will also continue serving in those positions for the next two years. For a time, it appeared we were going to have a contested election for our Board of Governors. During this election, we were planning to have voting via electronic means as the primary method while continuing to have the ability to distribute paper ballots to those individuals who requested one. As some of you may know, after many years of serving on our Board, both Mark Anderson and J. Fred Maples decided not to run for reelection but to continue to support the organization as regular members. This decision by them freed up two additional spots on our board eliminating the need for a contested election this year. I am happy to welcome two new members to our Board of Governors, Derek Higgins, and Raiden Honaker. You can read more about them in this issue. Although not needed for this election, it made sense to continue with a revision of our bylaws to accommodate the new electronic voting process potentially needed in the future. The new updated bylaws were ratified by our Executive Board on June 12th and are available at our website for review. During the third week of June, after my submittal deadline for this article, we are planning to staff an SPMC table at the Long Beach Expo. If this show turns out to be like the previous ones, we should see a significant amount of traffic with many people stopping by our table to either say hello or to inquire about our organization. I will be walking the floor for a day at the upcoming Summer FUN show in Orlando, but the SPMC will not have a table. In August, we will be heading to Pittsburgh and helping to staff the SPMC table at the ANA World Fair of Money. I look forward to seeing some of you there. Looking forward, one of the things our Society needs to consider is succession planning for key positions. If you think you are qualified and interested in potentially becoming our Secretary or Treasurer at some time in the future, please contact one of our board members. I am sure our highly efficient Treasurer, Bob Moon, and Secretary, Robert Calderman, would be happy to work with an understudy! SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 249 Terms and Conditions  The Society  of  Paper Money  Collectors  (SPMC)  P.O.   Box 7055,  Gainesville, GA    30504, publishes    PAPER    MONEY (USPS   00‐ 3162)  every  other  month  beginning  in  January.  Periodical  postage  is  paid  at  Hanover,  PA.  Postmaster  send  address  changes  to  Secretary  Robert  Calderman,  Box  7055, Gainesville,  GA  30504. ©Society  of  Paper Money  Collectors, Inc.  2020.  All  rights  reserved.  Reproduction  of  any  article  in whole  or  part  without written approval  is prohibited.  Individual copies of  this  issue of PAPER MONEY are available  from the secretary  for $8  postpaid. Send changes of address, inquiries concerning    non    ‐    delivery    and    requests    for    additional copies of this issue to  the secretary.  MANUSCRIPTS  Manuscripts     not     under      consideration      elsewhere and  publications  for  review should be sent  to  the editor. Accepted  manuscripts  will  be  published  as  soon  as  possible,  however  publication  in  a  specific  issue  cannot  be guaranteed. Opinions  expressed  by  authors  do  not necessarily  reflect those  of  the  SPMC.   Manuscripts should be  submitted  in WORD  format  via  email (smcbb@sbcglobal.net)  or  by  sending memory stick/disk  to  the  editor.  Scans  should  be  grayscale  or  color  JPEGs  at  300 dpi. Color  illustrations may be changed to grayscale at  the  discretion  of  the  editor.  Do  not  send  items  of  value.  Manuscripts are  submitted with copyright release of the author  to  the  editor  for  duplication  and  printing as needed.  ADVERTISING  All advertising on space available basis. Copy/correspondence  should be sent to editor.  All advertising is pay in advance.  Ads are on a “good faith”  basis.  Terms are “Until Forbid.”  Ads  are  Run  of  Press  (ROP)  unless  accepted  on  a  premium  contract basis. Limited premium space/rates available.  To keep rates to a minimum, all advertising must be prepaid  according to the schedule below.  In exceptional cases where  special  artwork  or  additional  production  is  required,  the  advertiser  will be notified  and  billed accordingly.  Rates  are  not commissionable; proofs are not  supplied.  SPMC  does not  endorse any company, dealer,  or  auction  house.  Advertising  Deadline: Subject to space availability, copy must be received  by  the  editor  no  later  than  the  first  day  of  the  month  preceding  the  cover date  of  the  issue  (i.e.  Feb.  1  for  the  March/April  issue). Camera‐ready art or electronic ads  in pdf  format are required.  ADVERTISING RATES  Editor Sez Benny Bolin Required file    submission format    is    composite    PDF v1.3  (Acrobat 4.0   compatible).   If   possible, submitted files should  conform to ISO 15930‐1: 2001 PDF/X‐1a file format standard.  Non‐  standard,  application,  or  native  file  formats  are  not  acceptable. Page  size: must  conform to specified publication  trim  size.  Page  bleed:  must  extend minimum  1/8”  beyond  trim for page head, foot, and front.  Safety margin:  type  and  other  non‐bleed  content must  clear  trim by minimum 1/2”.   Advertising c o p y   shall be restricted to paper currency, allied  numismatic material, publications,   and   related   accessories.    The SPMC  does  not  guarantee advertisements,  but  accepts  copy  in good faith,  reserving  the right  to  reject objectionable  or  inappropriate  material  or  edit      copy.  The          SPMC   assumes      no      financial       responsibility for  typographical  errors  in  ads  but  agrees  to  reprint  that portion of an ad  in  which a typographical error occurs.  Benny Space  Full color covers  1 Time  $1500  3 Times  $2600  6 Times $4900 B&W covers  500  1400  2500 Full page color  500  1500  3000 Full page B&W  360  1000  1800 Half‐page B&W  180  500  900 Quarter‐page B&W  90  250  450 Eighth‐page B&W  45  125  225 Summer is here and it came with a vengence. Record setting and dangerous heat and the humidity made it feel about 10 degrees hotter than it really is. Here is Texas, we have one word for that phenomenon--SUMMER! All kidding aside, stay safe out there and limit your outdoor activities and DRINK LOTS OF WATER--H2O, Agua, Wasser, Acqua, Aqua! The front cover of this issue is dedicated to three truly great men in SPMC circles and paper collecting in general--Mark Anderson, Joe Boling & Wendell Wolka. The ANA awarded Mark with a Medal of Merit and Wendell the 2023 Lifetime Achievement Award. I have been fortunate enough to know and work with both for many years, on the board, as an officer and friend. My fondest memories of the two are having Mark drive me and my family around NYC--he can put NYC taxi drivers to shame and of Wendell as emcee of our annual Tom Bain breakfast Raffle! Both have a wit that is sharp, unparalelled knowledge and humor that is infectious. You can never be in a bad mood when they are around. Mark is on the board of the Higgins Museum and has received an ANA President's award. Wendell has received the Glenn Smedly award from the ANA and is a prolific writer, researcher and a workhorse for the SPMC. Both are multiple award winners from the SPMC. Both have received the Nathan Gold Award (our highest award), an Education, Research and Outreach award, and multiple Presidents awards. In addition, Mark received the Best-in Show exhibit award for his exhibit on Swedish Plate Money and Wendell the Founders award, a Forrest Daniel award and a Wismer award both for literary excellence and was named a Numismatic Ambassador award in 1985. I have worked with Joe for all my years as editor. He has been a great teacher and author. He has co-authored Paper Money's Uncoupled column for many years with his buddy, Fred Schwan. Joe has also received the Best in Show exhibit award from the SPMC, a Forrest Daniel literary award and was inducted into the SPMC Hall of Fame in 2017. He also has won an ANA medal of Merit, the Glenn Smedley award, The Farran Zerbe Memorial award, an Exemplary Service and President's award. The SPMC and the hobby in general say collectively CONGRATULATIONS & THANK YOU to these three men! My apologies for not stating that Howard Cohen was FCCB member number 37. I apologize for this oversight. I made a plea for short to semi-short articles (1-4 pages) in the last issue. You responded well. I am asking this time for 4-8 page articles. Write about anything paper related and see your name as a by-line. Have a happy and safe summer and I hope to see you all some day at a show although I dont generally get to many. 250 The Society of Paper Money Collectors was organized in 1961 and incorporated in 1964 as a non-profit organization under the laws of the District of Columbia. It is affiliated with the ANA. The Annual Meeting of the SPMC is held in June at the International Paper Money Show. Information about the SPMC, including the by-laws and activities can be found at our website-- www.spmc.org. The SPMC does not does not endorse any dealer, company or auction house. MEMBERSHIP—REGULAR and LIFE. Applicants must be at least 18 years of age and of good moral character. Members of the ANA or other recognized numismatic societies are eligible for membership. Other applicants should be sponsored by an SPMC member or provide suitable references. MEMBERSHIP—JUNIOR. Applicants for Junior membership must be from 12 to 17 years of age and of good moral character. A parent or guardian must sign their application. Junior membership numbers will be preceded by the letter “j” which will be removed upon notification to the secretary that the member has reached 18 years of age. Junior members are not eligible to hold office or vote. DUES—Annual dues are $39. Dues for members in Canada and Mexico are $45. Dues for members in all other countries are $60. Life membership—payable in installments within one year is $800 for U.S.; $900 for Canada and Mexico and $1000 for all other countries. The Society no longer issues annual membership cards but paid up members may request one from the membership director with an SASE. Memberships for all members who joined the Society prior to January 2010 are on a calendar year basis with renewals due each December. Memberships for those who joined since January 2010 are on an annual basis beginning and ending the month joined. All renewals are due before the expiration date, which can be found on the label of Paper Money. Renewals may be done via the Society website www.spmc.org or by check/money order sent to the secretary. WELCOME TO OUR NEW MEMBERS! BY FRANK CLARK SPMC MEMBERSHIP DIRECTOR NEW MEMBERS 05/05/2023 NEW MEMBERS 06/05/2023 15572 Don Smith, Don Kelly 15573 Brian Bazarnicki, Greensheet 15574 Mark Agisotelis, Currency Face Book Group 15575 Melissa Lumaye, Website 15576 Robert Dreaper, Website 15577 Logan Track, Rbt Calderman 15578 Walt Sanjuan, Gary Dobbins 15579 Jossie Hernandez, Website 15580 June Latorre, Website 15581 Benjamin Doss, Website 15582 Cary Belger, 15583 Carlos Fuster, 15584 Bill Fannon, Website 15585 Scott Garfinkel, Website REINSTATEMENTS None LIFE MEMBERSHIPS LM465 Mike W. Thompson, Website Dues Remittal Process Send dues directly to Robert Moon SPMC Treasurer 104 Chipping Ct Greenwood, SC 29649 Refer to your mailing label for when your dues are due. You may also pay your dues online at www.spmc.org. 15556 Joseph Ford, Website 15557 Rich Voninski, Website 15558 Jeffrey Harmon, Website 15559 Daniel Fellows, Website 15560 Mohammed Khashabi, Website 15561 Aaron T. Allan 15562 George Cuhaj, Website 15563 Jim Wendoll, Michael McNeil 15564 Richard Stachurski, Website 15565 Stephen Fitzmartin, Website 15566 Karl Howard, Raiden Honaker 15567 Louis Padgug, Website 15568 Will Harvey, Website 15569 Angel Navarro Zayas, Website 15570 Troy Snelling, Frank Clark 15571 Steven Arck, Jeff Brueggeman Reinstatements None LIFE MEMBERSHIPS Correction - LM465 Liran Max Renert, Correction - LM466 Mike W. Thompson, SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 251 Governor Elections Due to current sitting governors Mark Anderson and Fred Maples deciding not to run for re-election, the following two governors who had submitted all required documents for positions and the two current governors who were standing for re-election are hereby elected by the board of governors by vote per our bylaws. Returning Governors Loren Gatch Loren was first elected to the board of governors in 2015. He has taught political science at the University of Central Oklahoma since 1998. With collecting interests in scrip, emergency monies, and different types of fiscal paper, Gatch has published on these topics in Paper Money since the mid-2000s. For the last eight years he has produced the weekly “News & Notes” blog that is received by SPMC members as an email and which appears on the SPMC website. He also publishes occasional pieces about fiscal paper on a separate blog on the website. William Litt William Litt has been an SPMC governor since 2020. He started collecting U.S. paper money in 1980, at the age of thirteen, after having collected coins for several years. Since the early 1980s, Bill has been an active collector of, and part-time dealer in, U.S. currency, with a particular love of National Bank Notes and National Bank memorabilia. He collects Nationals from seven counties in Northern and Central California. Bill graduated from Cornell University and the UCLA School of Law, and has practiced law since 1993. New Governors Derek Higgins Derek was born and raised in Lincoln, Nebraska, and started his collecting journey as a child with stamps, National Geographic Magazines, and coins/paper money. His interest really took off when his grandmother gave him an old Army sock full of coins and tokens collected during his grandfather’s WWII service in Europe. Regular visits to The Coinery in Lincoln were the gateway to diving deeper into the hobby, learning about coins and paper money both world and domestic. A devastating house fire in 2011 decimated his coin collection, but by some divine miracle his paper money collection survived because he had it with him in his college dorm the day of the fire. From then on paper money, specifically United States small size varieties and regular issues, North Idaho Nationals, and Lancaster County Nebraska Nationals have become his collecting focus. Now living in Aurora, Colorado, he and his wife have a budding online dealer business and work diligently to advance the profile of the hobby through social media and their presence at local shows. Raiden Honaker Raiden was born and raised in the small town of Vidalia, Georgia, and found his passion in numismatics at the young age of 8. Ever since, he has been actively collecting, expanding his knowledge, and has maintained his passion for nearly two decades. His love and specialty for paper money began when he first learned of National Bank Notes in his early teens. Raiden became a part-time dealer of coins and paper currency in his late teens after moving to Carrollton, Ga to attend the University of West Georgia. There, he graduated with a BBA in Management and Marketing in 2019, and a Master of Business Administration in 2020. In January 2021, he joined Heritage Auctions as a US Paper Currency Consignment Director and Specialist. He is a member of the SPMC, IBNS, ANA, Texas Numismatic Association (TNA), Georgia Numismatic Association (GNA), Paper Money Collectors of Michigan (PMCM), and the CSA Trainmen. An exceptionally avid collector of Georgia National Bank Notes, he is currently working on a publication on the history and background of his home state’s National Banks during the issuing period. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 252 Series of 1929 $100 Type 2 Nationals Rarity viewed through the Hickman & Oakes Auction Sales Lee Lofthus Introduction he 1929 $100 Type 2 national bank notes are the rarest denomination and type of the small size nationals. Excepting the $500 and $1,000 large size nationals, they are the scarcest of any national bank note type and denomination. Only 403 $100 Type 2 notes are recorded in the National Bank Note Census. Very few appear on the market each year, and their scarcity has served to keep them largely out of the current numismatic spotlight. This article provides a brief background on the conditions that spawned the $100 Type 2 notes, and looks back to the heyday of early national bank note auctions in the 1970’s and 1980’s to see the prevalence of these notes in the marketplace when national bank note collecting first caught fire. T Figure 1. Rare Hawaii $100 Type 2. While $100 Type 1 notes from the bank are common, Type 2 notes are a different matter, with only 3 reported. The finest recorded is shown above. All the $100 Type 2 notes carry the bank’s third title. Image courtesy James Simek. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 253 Type 2 National Bank Notes Type 2 nationals are distinguished by two features: sequential serial numbers for each note (versus the sheet numbers found on Type 1 notes) and the addition of a second set of charter numbers printed in brown ink on the face of the notes adjacent to the serial numbers. These improvements came as multiple offices in the Treasury Department sought to address ongoing complaints with the Type 1 nationals. A full discussion of the problems and Treasury Department deliberations that led to the Type 2 designs is in the Huntoon-Shiva Encyclopedia (2022) and Huntoon/Lofthus/Simek (2011). Arrival in the Great Depression’s Shadow The Bureau of Engraving and Printing (BEP) began the delivery of Type 2 national bank notes on May 27, 1933. The first $100 Type 2 notes were sent to the Comptroller of the Currency on June 24, 1933. The nation was deep into the Great Depression and the banks were in crisis. There were 7,536 national banks operating as of June 30, 1929. In October of 1929 the stock market crashed. By early March 1933, just 5,916 national banks were operating. By June 30, 1934, 5,422 were in operation but only 4,600 were issuing national bank notes. It was an inauspicious time for the Type 2 notes to come on the scene. On March 6, 1933, newly inaugurated president Franklin Roosevelt declared a bank holiday in an effort to restore confidence in banks and stop runs by frightened depositors. The holiday closed the nation’s banks until they could be examined by federally-appointed bank examiners for soundness before reopening. Only 4,510 were licensed to open without restriction on March 13-15, although others were able to exit receivership in the months ahead. Just as the Type 2 notes arrived, overall circulation of national bank notes began declining. There had been a temporary surge in circulation in 1932 and early 1933 due to an extraneous proviso added onto the Federal Home Loan Bank Act legislation that extended the circulation privilege to a broader array of government bonds for a period of three years. The additional bonds temporarily pumped more national bank notes into circulation to help ease the money shortages. Circulation of nationals peaked in May 1933, but declined thereafter. Figure 2. The only $100 Type 2 issue from Rhode Island, and the only national bank to use “hospital” in its title. The Rhode Island Hospital Trust Company opened in 1867, founded by the nearby hospital’s trustees. In December 1933, the trust operations and banking operations were separated, and the bank operation took national charter 13901. Author image. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 254 In the 1933 Depression days of “brother, can you spare a dime?” a $100 bill was a significant amount of purchasing power, so the demand for $100 bills was limited. It is no wonder the $100 Type 2 notes are so scarce. Figure 4. Texas had the most banks that issued $100 Type 2 notes. Dallas had two of eight issuing banks. Even the two big city Dallas banks combined issued only 3,229 $100 Type 2 notes. The smallest Texas issuer was the Central National Bank of McKinney with just 36 $100s. Author image. Figure 3. A run on a bank in New York City, June 1931. By the time Type 2 nationals were produced in May 1933, the Great Depression had hit the nation with a vengeance, causing more national banks to fail and curtailing the need for national bank notes. The Treasury Department ended national bank note issuance in the summer of 1935, making the $100 Type 2 nationals a short-lived type note. Courtesy FPG/Hulton Archive/Getty Images, Federal Reserve History.org SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 255 Basic Issue and Census Data Only 37 banks issued $100 Type 2 notes. According to the Warns/Huntoon/Van Belkum blue book, “The National Bank Note Issues of 1929-1935,” nine other national banks had $100 Type 2 notes printed by the Bureau of Engraving and Printing (BEP) and delivered to the Comptroller of the Currency Issue Division, but the notes were never sent to the banks and ultimately canceled. Thirty-seven out of approximately 4,600 banks then issuing notes means less than 1 percent of the national banks with circulation issued $100 Type 2 notes. The National Currency Foundation (NCF) National Bank Note (NBN) Census lists 403 $100 Type 2 notes out of 426,421 nationals in the census (as of June 27, 2022), roughly 1/10th of a percent of the recorded notes. Other current sources reinforce the scarcity of the $100 Type 2 notes. The PMG census records 94 notes. The Heritage Auction Archives show less than 120 notes, compared to over 700 Lazy Deuces (with no attempt to weed out duplicate listings). The $100 Type 2 nationals are offered so infrequently that it raised the question whether they were always this scarce in the market, or if they were once more plentiful and have just gone underground into tightly held collections. To pursue this question, there seemed no better way than to conduct a survey of the thirty-eight Hickman & Oakes auction sales. Hickman and Oakes Hickman & Oakes was one of the top national bank note auction firm in the early days when national bank note collecting took off. While the firm auctioned other currency as well, it was in the national bank note arena that the firm gained most attention. The H&O auctions were a partnership of John Hickman and Dean Oakes operating from Iowa City, Iowa. H&O were the magnets for better national material, and they reveled in offering great material fresh from the weeds. With offerings that included Territorials, black charter $5 original series notes, lazy deuces, and $100 Red Seals, the array of nationals they offered tantalized collectors. Hickman and Oakes, together and/or individually, were frequently go-to sources when hoards of nationals were discovered. In the early 1970’s, Hickman, his earlier partner John Waters, and collector Mort Melamed purchased the famed Ella Overby hoard from Starbuck, Minnesota. Figure 5. The H&O catalogs were pamphlet size with black and white photographs of the better lots. They long pre-dated the glossy catalogs of today that come packed with high resolution digital images, not to mention convenient online access. But the H&O lot descriptions were filled with engaging lot descriptions, well-informed commentary, and outright enthusiasm and appreciation for the notes. Author copies. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 256 Hickman and Oakes bought the hoard of large size nationals that surfaced from charter 3939, The First National Bank of Wood River, Nebraska, virtually in their own backyard given their Iowa City location. Before the H&O partnership, Oakes and his coin shop partner Don Jensen acquired notes from the famed Oat Bin Hoard of old currency, including dozens of Original Series and Series of 1875 nationals. H&O conducted thirty-eight sales from 1976 to 1989. Sale No. 1 featured two key collection of nationals, one by state seals and one by state capitals, popular pursuits at the time. Fabulous notes, including two Alaska’s and the Series 1882 FNB of Tallahassee $100 Brown Back, were sold in page after page. H&O was the annual auctioneer at a half dozen or so early Memphis paper money shows, with the sales always bringing excitement. September 1989, the 38th Sale, was the last H&O auction. The sale highlighted the Del Bertschy collection of Wisconsin national bank notes. The catalog announced it would be the last H&O sale. John Hickman went on to hold 19 sales under the Hickman Auctions name with his son Rick, and Dean Oakes continued his longstanding separate business offering fixed price lists to a large following of collectors of U.S. currency, large and small. The H&O $100 Type 2 Survey Results Despite over 10,000 lots sold in 38 sales, $100 Type 2 notes were only offered 24 times in the H&O sales. In contrast, H&O offered 77 Lazy Deuces. Table 1 offers a comparison of how many $100 Type 2 notes were sold vs. a selection of other highly sought-after national types. More large size early-series $100 bills (Original, 1875, and 1882 series combined) were offered by H&O than $100 Type 2 notes. While cataloger bias can skew the offerings of certain notes, I don’t believe that is a material factor in the Table 1 comparisons. H&O were a major market-maker for nationals at the time, and both consignors and H&O themselves were financially motivated to offer good notes for sale. There is every indication from their lot descriptions that H&O was eager to offer a better- type national like a $100 Type 2, regardless of condition. There is no indication any $100 Type 2 notes were omitted from sales due to space or other elective limitations. Table 1. Hickman and Oakes Auctions Sales Frequency by Selected Type 1976 to 1989* Type of Note Number of Lots Alaska Nationals - Large & Small 15 Lazy Deuces - Original & 1875 Series 77 $100 National - Original, 1875, and 1882 Series 39 $100 National - 1902 Red Seals 12 $100 National - Series 1929 Type 2 24 *omits Sale 34, full data unavailable, but no $100T2 were included SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 257 Table 2 shows the H&O $100 Type 2 notes offered in the 38 sales. A total of 24 lots were offered over 14 years, comprising 22 different notes. Table 2 is a delight to peruse, and several notable things jump out. The first observation is that in the early days of nationals, these notes were modestly priced. Most sold in the $200 range, slightly less for the more common the Bank of America and Live Stock National Bank notes, and slightly more for the scarcer banks. And these are prices for notes that were $100 face value. The purchasers were not risking a lot of money on their acquisitions! Even the unique Allenhurst NJ note brought only $308 in 1985. Of course, in those days, issue and census information was in its infancy, and bidders would not know if a given lot was merely the first of several notes to come along. In the case of the Allenhurst note, it is now thirty-seven years later and the note is still unique. None of the $100 Type 2 lots brought big money until H&O Sale No. 28, the 1985 Memphis auction. There, the unique (and still unique) charter 11312, FNB of Lawrence County at Walnut Ridge, Arkansas note (see Figure 6), sold for $1,150. Hickman’s lot description says it all: Lot 362. “Talk about a miracle of survival! This note, from the only bank in Arkansas that issued this rare type, and one of only 72 notes placed in circulation, turned up in Montana in 1982. The random survival of a well circulated note as rare as this one is much more exciting than a note put away when it was issued. Signatures of J.E. Krone and J.H. Myers, and light rust marks, as seen in photo. A note can’t get much rarer than this, certainly not a 1929 note. Sure to be an exciting lot and to be worth whatever it brings, which will surely be in excess of $500.” For aficionados of bank officers, J. E. Krone’s signature as cashier on the Walnut Ridge note is a puzzle. Per the Rand McNally banker’s directories of July 1933 and the first 1934 issue, which Figure 6. This is the only recorded $100 Type 2 note from this small issuing Arkansas bank. Just twelve sheets totaling 72 notes were issued in this small town of roughly 2,000 people in 1930. This note was the single highest-priced $100 Type 2 note sold in any H&O sale. Image courtesy Heritage Auctions. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 258 span the December 6, 1933 delivery date of the notes, the cashier in 1933 was L. B. Sharp (1933) and in 1934 it was E. L. Moore (1934). Pollock’s database of bank officers agrees. Krone is also unlisted in the bank officer search on the SPMC Banks & Bankers (1782-1935) database, but he is listed as vice president in the 1933 and 1934 Rand McNally directories. The bank existed since 1919 without issuing notes, and in 1933 it transitioned to its second title, changing from the First National Bank of Black Rock, Arkansas, to The First National Bank of Lawrence County at Walnut Ridge, Arkansas. The two locations were barely nine miles apart, both in Lawrence County. Perhaps Krone functioned as both VP and cashier during the transition period before new cashier Moore arrived. Whatever the reason, it is Krone’s signature as cashier on the sole known note from the bank. Table 2 Census of Hickman & Oakes Lot Listings for Series 1929 $100 Type 2 Notes 24 lots representing 22 notes Sale Charter Catalog Price No. Date Lot No. Bank, Location, and Serial Number if Available Grade Realized 2 4/11/1977 18 13044 Bank of America, San Francisco, CA XF 179$ 10 4/10/1980 352 4295 FNB of New Braunfels, TX S/N A001078 VF 550$ 11 9/24/1980 23 13044 Bank of America, San Francisco, CA VF 150$ * 16 3/24/1982 51 13674 Live Stock NB of Chicago, IL F+ 180$ 17 6/18/1982 106 13044 Bank of America, San Francisco, CA AVF 160$ 18 11/30/1982 19 13044 Bank of America, San Francisco, CA F+ 125$ 74 13674 Live Stock NB of Chicago, IL F+ 121$ 244 10865 Winona National and Savings Bank, MN S/N A000102 VG 200$ 484 14219 NB & Trust Company of Erie, PA AVF 225$ 570 13743 Mercantile NB at Dallas, TX VG 200$ 19 3/30/1983 302 14219 NB & Trust Company of Erie, PA S/N A000314 AVF 242$ 20 6/29/1983 11 13044 Bank of America, San Francisco, CA VG 150$ * 23 3/27/1984 38 13674 Live Stock NB of Chicago, IL VG/F 205$ * 25 10/30/1984 264 3913 Exchange NB of Colorado Springs, CO VF 250$ * 27 3/27/1985 218 12891 Allenhurst NB and Trust Co., NJ S/N A000018 VG-F 308$ 28 6/15/1985 362 11313 FNB of Lawrence Cty at Walnut Ridge, AR S/N A00056 VG 1,150$ 374 13044 Bank of America, San Francisco, CA XF 190$ 29 11/16/1985 1317 4295 FNB of New Braunfels, TX S/N A001078 VF 550$ * 31 6/25/1986 52 13759 American NB at Indianapolis, IN F-VF 304$ 32 11/14/1986 163 11313 FNB of Lawrence Cty at Walnut Ridge, AR S/N A00056 VG 1,418$ 724 14219 NB & Trust Company of Erie, PA VF 300$ * 793 4070 City NB of Bryan, TX S/N A000021 XF "sev. hundred"* 35 6/25/1988 82 13674 Live Stock NB of Chicago, IL VF 275$ 225 10865 Winona National and Savings Bank, MN S/N A000005 VF+ 750$ Notes: 1) bolded lot numbers indicate lots with photographs 2) *indicates the lot estimate is shown where the price realized was unavailable 3) the two notes sold twice were the Walnut Ridge AR note and the New Braunfels TX note. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 259 Another takeaway from Table 2 is that almost half (10 of 22) the Type 2’s sold by H&O were from the two most common banks, charter 13044 Bank of America National Trust and Savings of San Francisco, and charter 13674 The Live Stock National Bank of Chicago. That relative prevalence has continued over time, with those two banks now accounting for 57 percent of the Type 2 $100’s in the current NBN Census. The $100 Type 2 notes were highly prized despite most offerings being well circulated grades. Certainly H&O sales were of an era when notes were judged primarily on their rarity and the wonder of their survival against long odds. Collectors today striving for high grade examples of $100 Type 2 notes will have only a few from which to choose. Using the PMG census as a sample, only four of 94 PMG-grade $100 Type 2 notes are uncirculated, and the NBN Census shows about a dozen uncirculated notes. Despite being issued by just 37 banks and in small numbers, the $100 Type 2 notes have a surprising variety to them. With a territorial issue, a major titling error, notes with famous pedigrees, and plenty of interesting back stories, a lot of numismatic interest is packed into a few scarce notes. $100 Type 2 Rarities Abound Eight of the 37 $100 Type 2 issuing banks have no known notes. Another 12 banks have only one or two known notes. See Table 3 for a complete list of the $100 Type 2 issuing banks and current census. Over half the 37 banks are represented by zero to two notes, so the most collectible notes come from less than half the issuing banks, and even most of those are few and far between. The $100 Type 2 notes from Maryland are, so far, an impossibility to complete. Notes are known from only two of the three issuing banks. See Figure 7. Maryland had three $100 Type 2 banks that issued a combined total of 93 notes. Not sheets, notes! Maryland boasts the single rarest $100 Type 2 issuer, Ch. 5471, the FNB of Southern Maryland of Upper Marlboro. The bank issued just 13 $100 Type 2 notes. None are known. Figure 7. No national banks in Baltimore, Maryland’s largest city and its largest commercial center of the national era, issued $100 Type 2 nationals, but these two small banks on the eastern shore did. Each of these banks has two surviving notes in the current census. The issuing numbers are astoundingly low: the Salisbury bank issued 45 notes and the Cambridge bank issued 35. Images courtesy Fred Maples and Heritage Auctions SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 260 Table 3 The 37 Banks Issuing $100 Type 2 National Bank Notes in Ascending Order Based on Notes Issued Notes Notes Charter Bank State Issued in Census 5471 FNB of Southern Maryland of Upper Marlboro MD 13 0 3990 NB of Coatsville PA 24 0 5880 Farmers and Merchants NB of Cambridge MD 35 2 5118 Northampton NB of Easton PA 36 1 14236 Central NB of McKinney TX 36 0 3250 Salisbury NB MD 45 2 13703 Birmingham NB MI 48 0 4260 Citizens NB of Covington KY 56 2 14021 FNB in Boulder CO 60 1 4695 FNB of Brownwood TX 67 2 11312 FNB of Lawrence County at Walnut Ridge AR 72 1 12997 Franklin Square NB NY 72 0 12311 FNB of Ferrum VA 72 1 2154 FNB of Belleville IL 88 0 12891 Allenhurst NB and Trust Company NJ 132 1 10865 Winona National and Savings Bank MN 144 10 14285 Mount Olive NB IL 250 7 13775 Citizen NB of Hampton VA 252 0 13893 Edgewater NB NJ 270 2 13758 NB of Grand Rapids MI 288 4 13676 Witchita NB of Witchita Falls TX 384 5 94 FNB of Port Jervis NY 636 2 5550 Bishop NB of Hawaii HI 682 3 13759 American NB at Indianapolis IN 696 8 9353 Houston NB TX 713 5 3913 Exchange NB of Colorado Springs CO 733 10 13648 Commercial NB in Shreveport LA 751 7 4070 City NB of Bryan TX 889 11 14219 NB and Trust Company of Erie PA 1,017 22 13688 Hibernia NB in New Orleans LA 1,111 10 4295 FNB of New Braunfels TX 1,141 13 13743 Mercantile NB at Dallas TX 1,234 9 13901 Rhode Island Hospital NB of Providence RI 1,611 20 12186 Republic NB and Trust Company of Dallas TX 1,995 10 13681 NB of Commerce in Memphis TN 3,600 0 13674 Live Stock NB of Chicago IL 5,856 61 13044 Bank of America Nat. Trust and Savings Assoc. CA 41,112 172 TOTAL 66,221 404 Notes: 1) Banks canceling their entire $100T2 note deliveries omitted from this table. 2) Notes Issued data from Kelly 6th Ed. (2008) 3) Census numbers from NBN Census, courtesy the National Currency Foundation. Ch. 13743 count adjusted upward by 1 for author's note not yet in online census. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 261 Some $100 Type 2 notes come with illustrious pedigrees. The Winona National and Savings Bank, Winona, Minnesota, has 10 notes known today, a healthy number given its small issue of 144 notes. One of those is the serial number 5 note, ex Amon Carter, among others. H&O sold the note in their 1988 Memphis Sale No. 35. See Figure 8. Another Winona prize is the uncirculated serial number 7 note sold in 2018 in the Davidson collection of $100 type notes. Hawaii Territorials The $100 Phantoms of Memphis One of the most prolific issuers of $100 Type 2 notes, in theory at least, was charter 13681, the National Bank of Commerce in Memphis, Tennessee. Per Kelly, the bank issued 3,600 $100 Type 2s, exceeded in number by only the Bank of America and the Live Stock National Bank issues. Yet, not a single National Bank of Commerce $100 is known today. There are four $50 Type 2 notes reported out of 14,760 issued, but no hundreds. What is going on? The National Bank of Commerce is an interesting case study in what was meant by national bank circulation. The bank was organized on April 29, 1933. It was well capitalized and purchased $1 million in 2 percent bonds carrying the circulation privilege. The Comptroller’s Currency and Bond ledgers show clearly the BEP delivered 4,980 $100 Type 2 notes to the Comptroller’s vault on August 22, 1933 (along with $50 Type 2 stock). On September 2, 1933, the Comptroller’s office sent the bank its million dollars in circulation, consisting of 12,800 $50s and 3,600 $100s. Yet, at the end of December 1933, when it came time to report its taxable circulation to the Comptroller, the bank reported zero (Pollock 2021). Next year, at the end of December 1934, the bank again reported zero circulation. Since $50 Type 2 notes from the bank’s stock are known to collectors, what was the bank doing? Pulling the Currency and Bond Ledger from the National Archives, the story became clear. Sure enough, the $1 million in notes were sent to the bank September 2, 1933, but the notes were never released, hence the bank could justifiably report no circulation each year. Examination of the bank’s redemption ledger from 1933 onward shows not a single note of any kind was ever redeemed. The notes never left the bank before July 17, 1935 when the bank’s bonds were redeemed per Treasury’s bond call that ended national bank circulation. Figure 8. This Winona National and Savings Bank note was the last $100 Type 2 note H&O sold at auction. It was Lot 225 in Sale 35, the Memphis sale of June 24-25, 1988. The note has had several illustrious owners, and passed through the hands of H&O, Peter Huntoon, and Lyn Knight. It was part of the serial number 5 collections of Amon Carter and later Dick Erett. Image courtesy Lyn Knight. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 262 The Kelly reference shows the 3,600 $100 Type 2’s delivered to the bank, and showed the Out in 1935 circulation to be $1 million. But, what was hidden was the fact the bank never released the notes during the national era. They earned interest on their robust $1 million in bonds but avoided paying circulation taxes on the notes. Once the bonds were called and the proceeds had been deposited with Treasury to end the bank’s circulation tax liability, the notes became ordinary vault cash. We know the $50s were released, but what happened to the $100s is unknown. They are true phantoms, likely redeemed 87 years ago. American National Bank at Indianapolis Errors In terms of offering something for everyone, the small pool of $100 Type 2 notes even offers a title error. See Figure 9. A total of 816 $100s were printed by the Bureau of Engraving and Printing (BEP) for charter 13759 of Indianapolis, sent to the Comptroller’s office in three deliveries. The first BEP delivery to the bank was October 19, 1933, consisting of 30 sheets, serials 1 through 180. The notes entered circulation. The second BEP delivery to the Comptroller’s Issue Division was February 14, 1934, serials 181 to 634. After delivery of much of the stock to the bank, someone finally noticed the title of the bank was wrong on the notes! The notes said American National Bank of Indianapolis [emphasis added]. The bank’s actual title was American National Bank at Indianapolis. The remaining notes with the incorrect title were canceled, consisting of serial numbers 505-624. The BEP then delivered, on March 27, 1934, serials 625 to 816 with the correct bank title. When the dust settled, 696 notes, counting both titles, were issued to the bank. Ambitious numismatists can try to beat the odds and collect one of each title. Figure 9. The only title error in the $100 Type 2 series belongs to charter 13759. The top note is the error, the bottom note shows the correct “at” Indianapolis title phrasing. Images courtesy Heritage Auctions. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 263 The Mount Olive National Bank The Memphis situation is an interesting contrast with another $100 Type 2 issuer, the late- opening charter 14285, The Mount Olive National Bank, Mount Olive, Illinois. The bank was chartered in October 1934, but took its time purchasing its circulation bonds. The BEP got notes ready early, printing $100 Type 2 notes only, and sent two deliveries to the Comptroller’s vault, one in late December 1934 and one in late January 1935. But the Comptroller sent no notes to the bank, for the plain reason the bank had no bonds on deposit. Finally, on February 23, 1935, the Mount Olive National purchased $25,000 in bonds and deposited them with the Comptroller. The very same day the first of five $5,000 currency shipments were sent to the bank, the last being sent March 6, 1935, ending in serial number A000250. All this work was to be for naught. On March 9, 1935, Treasury Secretary Henry Morgenthau Jr. released a press statement saying the 2 percent Consols backing national bank note circulation would be called on for redemption on July 1, 1935, and the 2 percent Panama Canal bonds would be called August 1, 1935. The bankers at Mount Olive National had just three days to enjoy their stack of 250 $100 bills before learning the notes would be the last, and only, of their kind. The bankers didn’t wait for Treasury’s July bond call to get out of the circulation business. On April 6, 1935, they deposited lawful money with the Comptroller to clear their tax liability for the notes. The notes were now vault cash. With seven $100 Type 2 notes known, the evidence points to the bank taking its modest stack of 250 notes and eventually circulating them over the counter rather than going to the effort of redeeming them. Hawaii Territorials Charter 5550, the Bishop National Bank of Hawaii at Honolulu, issued 682 $100 Type 2 notes, the only territorials of the type. Only 3 are known, a number that hasn’t changed in a decade. Hawaii national bank notes were subject to the World War II June 25, 1942, order from Territorial Governor Joseph B. Poindexter to exchange regular currency for Treasury’s specially marked Hawaii overprint notes. The small issue of $100 Type 2s, together with the mandatory exchange of notes during the war, makes the survival of three notes all the more amazing. See Figure 1. Observations The review of the old H&O auction sales answered the initial question that prompted this article, namely whether the $100 Type 2 notes used to be more common and have just dried up in today’s market or whether they were always scarce. The answer is clearly the latter. Beyond the several banks profiled in this article, all the $100 Type 2 issuing banks listed on Table 3 are worth the pursuit. Low prices are not the norm anymore, particularly for true VF and better notes in original, undamaged condition. Nice original notes fine and better see competitive bids and solid prices. Issued in small numbers to begin with, and facing withering economic conditions and almost immediate attrition, the 400+ $100 Type 2 nationals that have surfaced for collectors today defied the odds to be here. Acknowledgments This article utilized several of the high quality online resources our hobby has been making available, among them the Society for Paper Money Collector spmc.org website and its Bank Note SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 264 History Project databases, the National Currency Foundation and its National Bank Note Census, the joint NCF/SPMC online publication of the Huntoon-Shiva Encyclopedia of U.S. National Bank Notes, and the Newman Numismatic Portal at Washington University at St. Louis. The Heritage Auctions, Stack’s Bowers, and Knight archives continue to be a benefit for the hobby. Fred Maples, Peter Huntoon, and Jim Simek provided timely assistance as well. Sources Bowers, Q. David. American Coin Treasures and Hoards. Chapter 17, pp. 343-350. Bowers and Merena Galleries, Wolfeboro, NH. (1997). Comptroller of the Currency, Annual Reports, 1929-1934. 1929 pp. 30-31; 1933 p. 2; 1934 p. 63. Washington, DC (1929-1934). Comptroller of the Currency, National Currency and Bond Ledgers. Record Group 101, U.S. National Archives, Archives II, College Park, Maryland. (1863-1935). Heritage Auction Archives. Heritage Auctions, Dallas TX. ha.com (2022). Hickman, John, and Dean Oakes, Hickman and Oakes Auction Sales 1-38, Iowa City, IA. (1976-1989). Huntoon, Peter, Lee Lofthus and James Simek, “Series of 1929 Type 2 Serial Numbers,” Paper Money, July/August 2011, pp. 244- 249. Vol. L, Whole No. 274, Society of Paper Money Collectors, spmc.org Huntoon, Peter, and Jamie Yakes, “Glass-Borah Amendment of 1932 spiked Series of 1929 National Bank Note Circulation by a Third,” Paper Money, May/June 2022, pp. 198-203,Vol. LXI, Whole No. 339, Society of Paper Money Collectors, spmc.org Huntoon-Shiva Encyclopedia of U.S. National Bank Notes, SPMC Content (accessed July 13, 2022). Chapter G4, Serial Numbering on Series of 1929 National Bank Notes, version of June 4, 2022. (2022). Spmc.org Kelly, Don C. National Bank Notes, A Guide with Prices, Sixth Edition. Oxford, OH. The Paper Money Institute. (2008). Lofthus, Lee, “Hawaiian Series Currency,” Paper Money, January/February 2006, pp. 6-23, Vol LXI, No. 1, Whole No. 337, Society of Paper Money Collectors, spmc.org Lofthus, Lee, “Louis Van Belkum’s ‘No Circulation’ National Banks Revisited,” Paper Money, September/October 2006, pp. 345- 358,Vol. XLV, No. 5, Whole No. 245, Society of Paper Money Collectors, spmc.org Maples, J. Fred. Maryland Paper Money, An Illustrated History, 1964-1935, JFM Numismatics, Montgomery Village, MD, (2015). National Currency Foundation, National Bank Note Census. National Currency Foundation, New York, NY. nationalcurrencyfoundation.org (2022). Paper Money Guarantee Inc. PMG Population Report, PMG, Sarasota, FL. pmgnotes.com (2022). Pollock, Andrew, “Compilation by Year of National Bank President’s, Cashiers, Total Resources, and Circulations, 1863-1935.” Newman Numismatic Portal at Washington University, St. Louis, MO. (2021). Rand McNally, “Bankers Directory, The Bankers Blue Book,” p. 93. July 1933 edition. Rand McNally & Co, New York, Chicago, San Francisco. (1933). Via Fraser, Federal Reserve Bank of St. Louis. Fraser.stlouisfed.org. Rand McNally, “Bankers Directory, The Bankers Blue Book,” p. 111. March 1934 edition. Rand McNally & Co, New York, Chicago, San Francisco. (1934). Via Fraser, Federal Reserve Bank of St. Louis. Fraser.stlouisfed.org. Rare National Currency, “Hickman and Oakes Auctions.” August 13, 2011. Rarenationalcurrency.com Society of Paper Money Collectors, The Bank Note History Project, Banks & Bankers Database (1782-1935). spmc.org (2022). U.S. Treasury, Press Service No. 4-47, “Release, Morning Newspapers, Monday, March 11, 1935.” [Secretary Morgenthau announces call of two per cent Consols for redemption on July 1, 1935 and two per cent Panama Canal bonds for redemption on August 1, 1935]. March 9, 1935. Treasury Department, Washington. (1935). Warns, Melvin, Peter Huntoon, and Louis Van Belkum. The National Bank Note Issues of 1929-1935, Second Edition. Society of Paper Money Collectors. Chicago, IL: Printed by Hewitt Brothers, (1973). SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 265 $20 Series of 1880 Legal Tender Serial Number Color Change Lee Lofthus found correspondence in Bureau of the Public Debt documents in the National Archives that fully explain a little-noted variety on the last of the Series of 1880 $20 legal tender notes. Specifically, the serial numbers on the Teehee-Burke and Elliott-White notes were changed from blue to red. A number of factors came into play to cause this. Series of 1880 Legal Tender Notes The 1880 legal tender series encompassed every denomination from $1 to $1,000. The series was printed from fiscal year 1880 through 1926. However, the Treasury ceased ordering Series of 1880 $1s and $2s at the end of FY 1896 and $5s at the end of FY 1900. Production of all the other legal tender denominations in the series except the $20s and $1000s ceased by FY 1903 as the Treasury assigned the use of low denomination Treasury currency to silver certificates and higher denominations to gold certificates. The Treasury was adopting new designs for most classes of currency beginning at the turn of the century. $10 legal tender production continued, but came out in the form of the redesigned Series of 1901 bison issues. $5 legal tender production resumed after a few years in the form of Series of 1907 woodchopper notes, and, in the long haul, $1 and $2 production finally resumed in the form of Series of 1917 notes. The only Series of 1880 legal tender production that occurred after FY 1903 consisted of $20s and $1000s as follows (BEP, yearly). FY Sheets FY Sheets $20 1909 101,000 $1000 1904 8,000 1910 102,000 1909 5,000 1918 100,000 1922 688,000 1926 457,000 The Paper Column Peter Huntoon Lee Lofthus Figure 1. The only Series of 1880 Legal Tender notes with red Treasury serial numbers are Teehee-Burke and Elliott-White $20s. Heritage Auction archives photo. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 266 Sealing In 1885, the sealing of Treasury currency was transferred from the Bureau of Engraving and Printing to the Treasurer’s office as a security measure (Huntoon and Murray, 2019, 2020). The idea was that sealing monetized the notes, so it seemed appropriate to do it within the Treasury building. This practice meant that the BEP printed the serial numbers and the Treasurer’s office printed the seals on the notes. Things changed in 1910. The BEP installed a new generation of numbering presses that were capable of numbering and sealing the sheets, separating the sheets into individual notes, and collating them in serial number order. At this point, Congress ordered that sealing be returned to the BEP. A major incentive was that both numbering and sealing could be carried out with one pass through the new Harris presses at great savings (Huntoon and Lofthus, 2014). Serial Number Colors The BEP had been using blue ink to number the 1880 LTs and the Treasurer was using red ink for the seals before sealing was returned to the BEP. The colors didn’t matter because processing involved two different press runs in different buildings. Using the different colors made little sense after sealing was returned to the BEP where both the numbers and seals were to be printed on the same machine. The Treasury lodged an order for 100,000 sheets worth of $20 LTs in late 1918, the first such order since FY 1910. The $20 LTs had not been redesigned so the order would come out in the form of Series of 1880 notes. BEP director James L. Wilmeth sent the following memo to Secretary of the Treasury William McAdoo on April 12, 1918 (BPD, 1917-1942). Reference to order now in hand for printing $20 United States notes, series 1880, I beg to state that the last time these notes were printed the number was printed in blue by this Bureau and the seal was printed in red at the Division of Issue in the Treasury Department building. Since this Bureau has taken over the sealing as well as the numbering of the notes, all of the other denomination of United States notes have had their series changed and have both number and seal printed in red. It is suggested, therefore, inasmuch as all of the other denominations are so printed that this Bureau be authorized to print the number and seal on the $20 denomination also in red ink. This is an especially opportune time to begin this change for the reason that on the notes now to be issued, both the facsimile signatures of the Treasurer and the Register have been changed. Figure 2. The Series of 1880 Legal Tender notes printed before 1918 had blue Treasury serial numbers. Heritage Auction archives photo. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 267 The response from the Treasury was immediate in the form of a letter from Assistant Secretary of the Treasury James H. Moyle dated April 13th. By direction of the Secretary the suggestion contained in your communication of the 12th instant is approved and you are hereby authorized to print the number and seal on the twenty dollar denomination United States notes in red. Thus, the 1918 printing of 100,000 sheets of Teehee-Burke $20 Series of 1880 notes sported red Treasury serial numbers. The Treasury ordered two more printings of LT $20s, one in FY 1922 and the second in FY 1926. These also were Series of 1880 notes with red Treasury serials but Elliot-White Treasury signatures. As fate would have it, these three $20 orders were the only Series of 1880 notes numbered and sealed after the Harris presses came on line in 1910. Consequently, they are the only Series of 1880 notes to bear red Treasury serial numbers. To mark the occasion, numbering of the Teehee-Burke $20s commenced with serial A1A with the 1918 order. The $20s sealed previously in the Treasurer’s office had blue serials that had been printed at the BEP with a D-prefix. Things are Interconnected The change to red Treasury serial numbers on the Series of 1880 $20 owes its origin to the introduction of the Harris numbering, sealing, cutting and collating presses at the Bureau of Engraving and Printing. Because these machines overprinted both the serial numbers and seals, it made practical sense that both be the same color. The fact that the Harris presses were designed to overprint both of those features in one pass caused the entire Treasury apparatus and its Congressional overseers to reevaluate the necessity of having the seals applied in a separate printing step within the Treasury building. The BEP had sufficient security protocols in place that it had gained the trust of Congress that it could add the seals—which technically monetized the notes—and deliver them to the Treasury without defalcation. The Treasury was carrying out a program to modernize the look of all of its Treasury currency series, a slow process begun at the turn of the 20th Century. The redesigns led to the advent of new series. Simultaneously, the Treasury officials were attempting to reduce the multitude of different looking notes in circulation by exclusively assigning specific denominations to one or the other of the three classes of Treasury currency then in use. No priority was given to the redesign of the Series of 1880 $20 and $1000 legal tender denominations because the plan was to allocate those denominations to gold certificates. Thus, when belated orders came down from Treasury for more of them after the turn of the century, the plates available to print them were those in the Series of 1880. The Harris presses came on-line in 1910. When orders came from Treasury for more $20 legal tender notes in FY 1918, and again in FYs 1922 and 1926, the notes came out as last-gasp Series of 1880 notes. Being the last notes in the series, and the only notes in the series overprinted on Harris presses, they came out with distinctive red Treasury serial numbers. Thus, the stars had aligned just right in order for the Teehee-Burke and Elliott-White $20 Series of 1880 legal tenders to carry red Treasury serial numbers. Sources Bureau of Engraving and Printing, yearly, Annual Reports of the Director of the Bureau of Engraving and Printing: Government Printing Office, Washington, DC. Bureau of the Public Debt, 1917-1942, April 12-13, 1918 correspondence between BEP Director James Wilmeth and Assistant Secretary of the Treasury J. H. Moyle: Files related to Bureau of Engraving and Printing, Record Group 53, Entry UD- UP 9,ox 8, files C550-C610: U. S. National Archives, College Park, MD. Huntoon, Peter, and Lee Lofthus, Nov-Dec 2014, The birth of star notes, the back story: Paper Money, v. 53, p. 400- 411. Huntoon, Peter, and Doug Murray, Sep-Oct 2019, Treasury sealing assigned to Treasurer’s office in 1885: Paper Money, v. 58, p. 328-336. Huntoon, Peter and Doug Murray, May-Jun 2020, Treasury seal varieties when sealing was carried out at the Treasurer’s office between 1885 and 1910: Paper Money, v. 59, p. 179-187. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 268 The Civil War Stamp Money of Confederate Mobile, Alabama by Steve Feller On January 11, 1861, Alabama seceded from the United States and on February 4, 1861, the state joined the Confederate States and the new government’s organizational meeting was held in Montgomery [1]. By April the American Civil War began and a terrible struggle had begun. During the ensuing war the Southern States issued thousands of different kinds of paper money. Initially, United States postage continued to operate in these states and a mutual agreement to separate Southern post offices was put into place setting June 1, 1861, as the formal date of separation. At that point several post offices issued their own Confederate provisional stamps and markings until uniform Confederate postage stamps were released in the fall of 1861. The most common of these provisional adhesive stamps were produced in New Orleans and it wasn’t long before other post offices followed suit. This included Mobile, AL. Figure 1a: A montage of Confederate provisional stamps from Mobile, AL. Figure 1b: Two- and five-cent Confederate provisional stamps from Mobile, AL. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 269 All Confederate provisional stamps are at least scarce. Rarer still by far are the small-change money issues of these respective post offices [2]. Sometimes just a few notes are known from a particular post office. This article will focus on the handful of surviving small change chits from Mobile, Alabama. Here are examples of post office scrip from New Orleans and Mobile: Figure 2: a. Civil War Stamp Money for one-cent from New Orleans. b. Close up and color enhanced image of the one-cent note with New Orleans Postmaster J.L. Riddell’s impressed name. Note that Riddell’s daughter signed the note as well as a postage clerk. Much more detail on New Orleans stamp money may be found in reference [3]. According to The New Dietz Confederate States Catalog and Handbook [4], published in 1986, Owen was the Assistant Postmaster in Mobile. There is an image of the one-cent scrip in this source that has Owen’s signature with a slightly different signature orientation than the note shown here. Also, a three-cent note is mentioned as being printed in black on white paper. Fig. 3: Three unissued Civil War stamp money chits from New Orleans. Fig 4. a, b, and c. One-cent stamp money from Mobile, AL. Note that it was signed by Owen. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 270 Fig. 5: Close-up of the back of the one-cent note. The date is printed twice and is likely NOV 24. Fig. 6: a, b, c, and d: One-cent and three-cent post office scrip from the Mobile Post Office. The one-cent note in Fig. 6 seems to be printed on scrap paper having to do with an election and taxes. Once again the scrip was dated by the post office’s date mark. The dates are December 7 and October 11. They are without year, but it seems likely that they were used in 1861-62 as a way to give small change as the Confederate period began. Small change disappeared from circulation by the fall of 1861. By the fall of 1862 and especially later small change notes like this were hardly worth printing and yet it was at some post offices, although in somewhat larger denominations [2]! The value of a Confederate dollar in gold fell during the war and was [5]: December 1861: $0.83 December 1862: $0.33 December 1863: $0.05 December 1864: $0.026 Thus, by December 1864 a one-cent chit was worth $0.00026 in gold, or 3846 chits was valued at a gold dollar! Today, it is decidedly a different story. I present comments from The Organization of the Confederate Post Office at Montgomery by Peter Brannon [6]: After secession and before the organization of the Confederate government, the independent states used United States stamps and stamped covers, and upon the creation of the Confederate Post Office Department the United States and the Confederate States agreed that postmasters appointed before secession should remit as of June 1, 1861, all monies in hand on that day to Washington City. This arrangement produced many interesting postmarks and covers. The Confederate postmasters were embarrassed in the sale of postage, and many devised temporary provisional facilities. Others used pen cancellations and manuscript postmarks. The absence of small change caused further embarrassments and most postmasters were required to open charge accounts with their patrons. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 271 Other post offices issued chits. These are dated throughout the war but mainly earlier in the war. Thus, it is not possible to state for sure what year these were printed. The Mobile, AL post office was located in the customs house shown below in Figures 7 a, b, and c. It was designed by noted architect Ammi Burnham Young (June 19, 1798 – March 14, 1874); he was the first Supervising Architect of the United States Treasury Department. The building was completed in 1856 and removed in 1963. The magazine Mobile Bay gave this description of the building [7]: Architect Ammi Young designed this Italianate and classical revival masterpiece. Located downtown (where the RSA-Bank Trust Building is now), it was built like a fort — granite blocks laid with inter-locking joints all set on a foundation of solid clay and 12-inch-thick heart pine. Not surprisingly, it cost a whopping $360,000. The building was notable for its disciplined form and pleasing eave brackets. Its demolition nearly bankrupted the company hired for the job. Fig.7: a) Plans, b) front and c) side views of the post office and customs house in Mobile that existed during the Civil War. Photos from the Library of Congress. This is where the Mobile, AL Postmaster’s Provisionals stamps and small-change chits were issued. The Postmaster of Mobile, AL during the Civil War was Lloyd Bowers. He was 37 when the Civil War began in April 1861 and when he issued provisional stamps beginning in June or July1861. Lloyd Bowers was born in Louisiana on March 11, 1824, and was married on June 11, 1846, to Louise Ann Toulmin. This marriage produced six children. Descendants of the children survived until at least 1995. Lloyd died May 18, 1891, and Louisa died September 17, 1903 [9]. No biographical information was found on Assistant Postmaster Owen. Lloyd Bowers was born in Louisiana on March 11, 1824, and was married on June 11, 1846, to Louise Ann Toulmin. This marriage produced six children. Descendants of the children survived until at least 1995. Lloyd died May 18, 1891, and Louisa died September 17, 1903 [9]. No biographical information was found on Assistant Postmaster Owen. These notes are certainly rare. They are not listed in numismatic sources such as Don Kelly’s Obsolete Paper Money [10] or Walter Rosene, Jr’s, Alabama Obsolete Notes and Scrip [11], just the Dietz books on Confederate Figure 8: Grave of Postmaster Lloyd Bowers of Mobile, AL. Figure 9 a and b: Close ups of Lloyd Bowers and wife Louisa Toulmin gravestones. The graves are in the Magnolia Cemetery in Mobile. Images are from Find a Grave [8]. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 272 stamps lists them, as mentioned earlier. Do any readers have examples of these scrip? If so, please send images to sfeller@coe.edu. In summary, here is a table with up to five scrip notes that are known today of the Mobile Post Office: Denomination Size Color Date One cent 49mm x27mm Black on white cardboard Nov(?) 24, 1861 or 1862? 49mm x27mm Black on white cardboard Dec 7, 1861 or 1862? Black on white* Back not shown Three cents 49mm x26mm Black on orange cardboard Oct 11, 1861 or 1862? Black on white* Back not shown *As listed in [4]. Mobile was a major port for the Confederacy. However, the North, under Admiral Farragut effectively blockaded the city (See Fig. 10.). Mobile surrendered to the Union on April 12, 1865, three days after General Robert E. Lee surrendered. References [1]. Dates taken from Dates of State Secession and their Admission to the Confederacy provided by Patricia Kaufman from https://www.trishkaufmann.com/resources-and-links from Independent State Mail and Confederate Use of U.S. Postage: How Secession Occurred: Correcting the Record (La Posta Publications: Fredericksburg, VA) 2018. [2]. Steve Feller, “Confederate Stamp Money Revisited,” Confederate Philatelist 65 (2) 15-33 (2020). [3]. S.A. Feller, “The Notes of John Leonard Riddell, Postmaster of New Orleans.” Paper Money (2012) LI (3) (Whole Number 279) 163-168 (2012). [4]. Hubert Skinner, Erin R. Gunter, and Warren H. Sanders, The New Dietz Confederate States Catalog and Handbook (Bogg and Laurence Publishing: Miami) 1986. [5]. Douglas B. Ball, Financial Failure and Confederate Defeat, (Univ. of Illinois Press: Urbana and Chicago) 1991. [6]. Peter A. Brannon, The Organization of the Confederate Post Office at Montgomery and a Story of the Thomas Welsh Provisional Stamped Envelope Together with the activities of the Montgomery Post Office in the Confederate period, (Peter A. Brannon: Montgomery) 1960. [7]. https://mobilebaymag.com/bygone-structures/ [8]. https://www.findagrave.com/memorial/110255492/lloyd-bowers [9]. https://gentrekker.com/familygroup.php?familyID=F4139&tree=Dickinson [10]. Don Kelly, Obsolete Paper Money (The Paper Money Institute: Oxford, OH) 2018. [11]. Walter Rosene, Jr, Alabama Obsolete Notes and Scrip, (Society of Paper Money Collectors) 1984. Fig. 10: The geography of Mobile, AL and its bay during the Civil War. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 273 The Central National Bank of Frederick, Md., Charter #1138 by J. Fred Maples This bank was chartered May 15, 1865, from the former Central Bank of Frederick, with Robert Y. Stokes, president, and Peter L. Storm, cashier. The bank’s founders initially deposited $100,000 in 6% bonds, and issued $90,000 in Original Series $5s, $10s and $20s, and $50s and $100s. Another $100,000 bond was deposited later that year to extend the circulation. In subsequent years this bank issued 1875 Series, 1882 Series, and 1902 Series notes, with a varying circulation that averaged about $150,000. This bank was generally successful and well respected as the local Frederick Examiner gushed in 1904: “This institution is one of the best known and most substantial banking houses in the state and enjoys a liberal patronage throughout the county. Its management consists of men of noted ability and keen business judgment making it a most desirable depository”. Importantly this bank absorbed The First National Bank of Frederick, charter #1589 in 1909, but liquidated in 1913, and was absorbed by Emory Coblentz’s new Central Trust Company of Maryland. Unfortunately, Coblentz overextended the Central Trust Company which collapsed and failed spectacularly in 1931. Undoubtedly the best note known from this bank today is this Original Series $5, with red serial #1, Friedberg 397a, certified by PMG as Very Fine 30, with Exceptional Paper Quality (EPQ). Despite appearing a bit dark and somber, this note is loaded with interesting features, vignettes, serial numbers, and signatures. Notice the centered statement “This Note Is Secured by Bonds of the United States, Deposited with the U.S Treasurer at Washington”, which is expertly stacked across four levels, and the intricate title block “The Central National Bank of Frederick Maryland”. This important note was recently sold in Heritage’s 2022 Central States sale, Lot 21019 for $20,400, and attributed to the renowned collection of Ibrahim Salem. Salem acquired the note for $40,800 from Heritage’s 2018 FUN sale, Lot 20947. This note was a highlight of Marc Watts’ Maryland collection, who acquired it for $20,000 via private treaty, after being saved as an heirloom by the cashier’s family. Signing cashier Peter L. Storm was a respected and successful Frederick citizen. As reported by the Frederick Examiner in Storm’s October 13, 1875, obituary: “It is with deep regret that we record the death of this gentleman who died at his residence on South Market street, on last Wednesday, after a protracted illness, in the 68th year of his age. He was an excellent citizen and was highly esteemed by a large circle of acquaintances. In 1847 he was elected Discount Clerk of the Central National Bank, a position he held until 1861, when he was elected Cashier, the duties Figure 1: $5 Original Series, Serial #1. The Central National Bank of Frederick, Md. Charter #1138. Good pen signatures of P.L. Storm, cashier, and R.Y. Stokes, president. This bank issued 3,750 sheets of Original Series $5s between 1865 and 1876. This note was issued on July 24, 1865 and was the first note issued from this bank – indeed it’s the first note issued from any Frederick national bank. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 274 of which he discharged with satisfaction and ability until incapacitated by the hand of affliction. His remains were interred in Mt. Olivet Cemetery on last Saturday, attended by a grief stricken family and numerous friends.” President Robert Y. Stokes was also a respected and successful Frederick citizen. As reported by the Frederick Examiner in his July 29, 1874, obituary: “It is with much regret that we announce the death of this gentleman, who died at his residence in this city, on Tuesday evening of last week, after an illness of some few months, in the 66th year of his age. The deceased was a native of Harford county but went to Baltimore quite early in life where he was employed as a clerk in a large mercantile house. Some years after and before we enjoyed the present facilities for rapid travel, he engaged in the staging business, which he finally relinquished, and bought the Ceresville property, a few miles North of this city, which he farmed about twenty years, after which he again went to Baltimore and was engaged in the banking business under the name of Stokes & Lowndes. In a few years he returned to Frederick, and in 1860 was elected President of the Central Bank --- now the Central National Bank of Frederick – a position he held for fourteen years, the duties of which he discharged with ability, and to the satisfaction of the stockholders. He was a fine, correct, upright man, and in his death this community loses a useful member.“ All Original Series $5s -- including the note featured in Figure 1 -- were printed by the Continental Bank Note Company of New York, which was contracted in July 1863 as a federal currency printer, joining the American Bank Note Company and National Bank Note Company. Continental scored a coup with its contract to print Original Series $5s, given more $5s were printed than any other notes. Continental printed the front and back with four notes to a sheet, along with the bank serial number (bottom left). The sheets were then shipped to the National Currency Bureau in Washington, where they were overprinted with the Treasury seal and serial number. Next the sheets were sent to the banks and were cut apart and signed by the bank’s cashier and president. The note’s face depicts two important vignettes. To the left is “Columbus in Sight of Land”, also called “Discovery of Land by Columbus”, which depicts the great moment of exploration, as engraved by Louis Delnoce from art by Charles Fenton. To the right is “America Presented to the Old World”, which shows Columbus presenting a Native American princess, presumably representing America, to her three sisters of the old world -- Europe, Asia, and Africa, as engraved by W.W. Rice from a painting by T.A. Liebler. Frederick is a historic city in central Maryland, and northwest of Washington DC. Frederick was first laid out by land speculator Daniel Dulany in 1745, and settled by German immigrants led by Johann Thomas Schley, who built the first house there. In 1792 it was called Fredericktown and was incorporated in 1817. Most historians attribute the name to the sixth Lord Baltimore, Frederick Calvert, son of Charles Calvert. The city served as a major crossroads from colonial times, and British General Braddock marched west through Frederick on his way to the fateful ambush near Fort Duquesne in the French and Indian War. Frederick grew into an important market town, and by the early 19th century became a leading mining area for gold, copper, limestone, marble, iron and other minerals. Today Frederick is a growing and vibrant mix of rural and urban, and known for its arts, entertainment, shopping, restaurants, and breweries. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 275 The Paper Column Peter Huntoon Jamie Yakes Glass-Borah Amendment of 1932 spiked Series of 1929 National Bank Note Circulation by a Third Purpose and Introduction The purpose of this piece is to explain how the Glass-Borah Amendment to the Federal Home Loan Bank Act of 1932 caused national bank circulation to increase by $220 million above the then outstanding $675 million. The amendment was a rider to the home loan act that was unrelated to home loans, but instead was tacked on to cause an inflation of the money supply in hopes it would help mitigate the Great Depression. The Glass-Borah amendment awarded the circulation privilege to U.S. bonds with interest rates of 3-3/8 percent or less to make it more profitable for bankers to take out circulation than the 2 percent bonds then available as security for national bank notes. This favorable provision would terminate in three year, when it was hoped the depression will have passed. Inelastic Currency The purpose of the National Bank Act was to create a new form of currency. To that end, organizers of national banks were required to take out circulation by the initial legislation. Prior to passage of the Federal Reserve Act of 1913, the minimum circulation that bankers were required to maintain was: (1) $50,000 for banks with a capital of $150,000 or more, and (2) one-quarter of their capital for banks with a capital of less than $150,000. The bottom line was that the National Bank Act produced a supply of national bank notes that was predicated on the combined capitalizations of all the banks in the country. Consequently, national bank note circulation was tied to the capitalization of the banks, a number that was rather inflexible because the bankers couldn’t readily change their capitalizations. Section 17 of the Federal Reserve Act passed December 23, 1913 contained a provision that allowed bankers to sell their bonds to Federal Reserve banks and get out of the currency-issuing business. This was followed by Section 9 in an Act amending the Federal Reserve Act that was enacted June 21, 1917 that absolved national bankers of any requirement to take out circulation. Thus, after 1913, the supply of national bank notes was even smaller yet still tied to the capitalization of the banks that did issue it. Figure 1. The Glass-Borah Amendment caused $220 million worth of Series of 1929 type 1 nationals to be added to the existing $670 million national bank note circulation by May 1933. The primary winners were the big city banks. The officers of this New York bank increased their circulation from $8.5 to $9.9 million between October 1931 and 1933, but their capitalization remained constant at $10 million. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 276 The result was that the national bank note supply was inelastic. That is, the supply didn’t respond to changing demands for money in the annual cyclic course of commerce. For example, when money was needed in times of increased activity, such as during crop planting season, there was a shortage of it so interest rates spiked. In times of diminished activity, such as when crops were sold, there was a surplus of it, so interest rates sank. Thus, the inelasticity exacerbated seasonal swings in interest rates. Even worse, the national bank note supply couldn’t increase rapidly during economic emergencies when cash was needed to offset hoarding. This fueled crippling money panics that came along with distressing regularity. People rarely worried about the maximum circulation that a bank could issue. Bankers, of course, could take out more circulation than the minimum if they wished to invest in more bonds, something they did when circulation was profitable. The upper limit of circulation that a bank could subscribe for was the paid-in capital of the bank. There was a practical cap on the maximum possible total national currency supply. This was dictated by the supply of federal bonds that were available to back the currency. Congress accorded the so-called circulation privilege to specific bond issues. Only those bonds could be used by bankers to back their currency. The bankers would buy these bonds, deposit them with the U. S. Treasury, and then receive national bank notes equal to the par value of the bonds. They could then press the nationals into commerce. The available bonds with the circulation privilege totaled $675 million at the beginning of 1932, virtually all of which were owned by national banks to back their national bank note issues (FR Board, 1932, p. 478). The U. S. Treasury was pleased with this cap because it limited the volume of inelastic national currency to about 12 percent of the total money supply at the time (FR Board, 1932, p. 480). Consequently, national currency no longer was a major player on the monetary stage going into 1932. The Federal Reserve Act of 1913 allowed bankers to sell their bonds to the Federal Reserve banks, which replaced national bank notes dollar-for-dollar with elastic Federal Reserve currency. The hope of the framers of the Federal Reserve Act and Treasury officials was that Federal Reserve notes would quickly supplant all national bank notes and eliminate them from the scene. The problem was that even though the available bonds used to back national bank notes earned only 2 percent interest, national bank note circulation was sufficiently profitable that the majority of the bankers held on to them and continued to maintain their circulations. In fact, the supply of eligible 2 percent bonds was insufficient for this purpose so they sold at a premium over their par value. Consequently, as the nation began to reel under the Great Depression, the inelastic national currency was not going away. By its nature, it was actually contributing to the economic woes. A Stopgap Solution Then came the Federal Home Loan Bank Act, a measure called for by Republican President Herbert Hoover to encourage home ownership by providing low-cost home mortgages. The act was signed into law by Hoover July 22, 1932. However, the form in which it passed was a notable dud because the only people who could quality for mortgages were sufficiently well off, they didn’t need to fool with the Federal Home Loan Banks (Wikipedia). Here is where it gets interesting. Over the objections of Hoover and his Treasury officials, a rider was tacked onto the bill that became known as the Glass-Borah Amendment. This granted the circulation privilege for a period of three years from the date of passage of the act to all U. S. bonds that paid interest at 3-3/8 percent or less. The rider had nothing to do with the Federal Home Loan Banks. Its sponsors were Virginia Democratic Senator Carter Glass, former Secretary of the Treasury under Woodrow Wilson, and Idaho Republican Senator William Borah. Both were progressives. Clearly their amendment was a clumsy attempt to inflate the money supply because it would make national bank note circulation sufficiently profitable it would incentivize the bankers to invest in the 3-3/8 percent bonds and take out additional circulation. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 277 Far more important, it effectively blew the roof off the then current $675 million cap on total national bank note circulation by making a flood of high-yield bonds available for purchase. There were about $3 billion worth of them out there. Suddenly, instead of worrying about the nominal remaining national bank note circulation, the Treasury had to worry about the theoretical maximum amount of such currency that could be created! Not only that, they fretted about the weakening effect the move into national currency was going to have on the Federal Reserve system because the bankers would turn to the Federal Reserve banks to get the money they needed to buy the newly eligible bonds (FR Board, 1932, p. 474-476). Treasury officials quickly fathomed that the maximum theoretical national bank note circulation was the collective capitalization of all the banks in the country. They summed these and found that total national bank capitalization was $1.570 billion. A mechanism was now in place that could result in almost a billion-dollar expansion of the national bank note supply. The potential increase was almost one and half times the size of the existing national bank note supply! The rider on the FHLB act gave bankers a strong incentive to swap out elastic Federal Reserve currency for inelastic national currency, just what the Treasury and economists didn’t want. If taken to its logical conclusion, nationals would grow to 30 percent of the total money supply rather than 12 percent! Then national currency would be a major factor. Although he chaffed, President Hoover didn’t veto the bill when it crossed his desk because he rationalized that the potential spike in national bank note circulation could only last until 1935 when the circulation privilege for the high yield bonds would expire (Awalt, 1932, p. 5). Then the bankers would have to sell those bonds and their money would flow back into the Federal Reserve banks. There would be a reverse substitution of nationals back into FRNs so things would normalize. Figure 2. Carter Glass (left) Democratic senator from Virginia and William E. Borah (right) maverick Republican Senator from Idaho sponsored the Glass-Borah rider to the Federal Home Loan Bank Act of July 22, 1932 giving a three-year circulation privilege to 3-3/8 percent or lower interest U.S. bonds that caused a one- third spike in national bank note circulation by 1933. Wikipedia photos. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 278 An important fact is that the FHLB Act did not increase the tax bankers had to pay on their circulation if they used the higher yield bonds. Consequently, the spread between the interest they earned and the tax they had to pay was greater than the spread with the 2 percent bonds. The result was a strong incentive for them to swap out their existing 2 percent bonds even if they didn’t increase their circulations. Impact on National Bank Circulation What actually occurred in the short term is exactly what was predicted. Of course, the bankers who had surplus cash acted in their self-interest and bought the high yield bonds and used them to inflate their circulations. Within three months of passage of the FHLB act, the national bank note supply grew by $125 million and continued to grow. It spiked to $893 million at the beginning of May, 1933, its second highest level in history (O=Conner, 1935). This peak followed the election of Roosevelt and the bank holiday. The FHLB spike amounted to $220 million more than the early 1932 national bank note circulation, a 33 percent increase. A spike of $220 million was a quarter of the worst-case scenario contemplated by the Hoover Treasury, but even so it was a significant increase. Just as you might expect, the market value of the old 2 percent bonds fell below par and the glamorous new high yield bonds started selling for a premium as the bankers competed against each other and other investors as they substituted the new for the old (FR Board, 1932, p. 479). They not only bought the high yield bonds to support increased circulations, many simply swapped out their old 2 percent bonds that were used to back their existing circulations. Type 1 national bank notes were the impacted series thanks to the $220 million increase in national bank note circulation. That many more type 1 nationals were issued than otherwise would have been the case. The rapidly rising tide also helped lift the demand for type 2s when they came along at the end of May 1933, but not by the same degree. By the time the type 2s arrived, the peak national bank note circulation already had been achieved so the type 2s were largely replacements for type 1s that were wearing out. Their numbers of course were greater than they would have been without the FHLB act simply because the total amount of nationals in circulation was greater. If the FHLB act had not been passed, there would have been some $220 million fewer nationals in circulation during the peak of the small note era. This would have translated into a roughly 25 percentage decrease in the number of them available to collectors! As for just which small size nationals became more common as a result of the FHLB act, it was the big city bank issues. The big city banks, simply by virtue of their size, held the overwhelming dollar value of available uncommitted capitalization, and their savvy management put it to work to their advantage (FR Board, 1932, p. 479). In economic terms, the big city banks already were basking in a surplus of cash whereas the small country banks were strapped. Thus, the big city banks preferentially got to increase their circulations. After the smoke cleared, the well-intended rider on the FHLB act didn’t do the economy or the little guy any good. Figure 3. Graph showing the impact on the total outstanding circulation of national bank currency by the Glass-Borah Amendment. The tic marks on the horizontal axis represent December 31st of the years shown. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 279 The Phoenix National Bank An excellent example of bankers who took advantage of the Glass-Borah Amendment were those at The Phoenix National Bank, Arizona. Their circulation was $150,000 backed by 2% bonds going into 1932, a figure that had held constant during the Series of 1929 era up to then. In August 1932 they bought $350,000 worth of the glamorous high yield bonds in four lots that bore interest at between 3% and 3-3/8%, boosting their circulation to an astronomical for them half million dollars. In order to make their investment in these bonds pay twice, they had to loan the $350,000 that their bonds bought. This was a high-risk proposition at that point in the Great Depression but they did circulate the new currency once it arrived so they somehow put it to work. In August 1933 they sold $98,000 worth of 3 percent bonds. This was followed in June 1934 by the sale of $252,000 of their remaining highest-yield bonds; specifically, $175,000 of 3-3/8 percenters and $77,000 of 3-1/8 percenters, leaving them with their original $150,000 circulation backed by their old 2% bonds. They apparently felt so cleansed in getting rid of that circulation, they unloaded the remaining $150,000 of their 2% bonds in August 1934, thus, getting completely out of the note-issuing business. In this peculiar case, the rate of bond sales beginning in August 1933 exceeded the rate at which the National Currency Redemption Agency in the Treasurer’s office could scavenge their excess notes from circulation. The result was that no type 2 notes were sent to the bank. The bank was issuing $10 and $20 type 1 Series of 1929 notes at the time the bankers ramped up their circulation to $500,000 in 1932. The Comptroller’s clerks covered most of new $350,000 using $20s; specifically, sheet serials 948-1094 sent August 12th, 1095-3047 sent August 30th, 3048-3662 sent August 31st, and 3663-3830 sent September 17th, totaling $345,960. $10 sheets 3425-3492 totaling $4,080 were included in the August 31 shipment comprised the remainder. [These shipments total $350,040, because the September 17th shipment of $20s included an extra $40 to cover worn notes redeemed from circulation.] The Comptroller’s inventory of notes for the bank at the time the bankers bought these bonds was insufficient to cover them, so shipment of most of the notes was delayed until new printings could be received from the Bureau of Engraving and Printing; specifically, $20 sheets 1095-3662 on August 30, 1932 and 3663-4702 on September 17th along with $10s 3813-5350. The last sheets sent to the bank were $10 4126 and $20 3974, both from the printing that arrived September 17, 1932. Significantly, of the 3,974 $20 type 1 sheets worth of notes issued from the bank, 73% Figure 4. The Glass-Borah Amendment encouraged the bankers at The Phoenix National Bank to increase their circulation from $150,000 to $500,000 in 1932 through their purchase of $350,000 worth of high-yield bonds as allowed under the amendment. This note send to the bank on August 30, 1932 was included in that increase from a printing that was received from the Bureau of Engraving and Printing that same day, which allowed the Comptroller of the Currency’s office to fully cover the increase. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 280 were from the initial shipments made to cover the Glass-Borah bond purchases. Of the $20 type 1 notes reported from the bank as of 2021, 70% are from these shipments. Outcome The last gasp tilt toward keeping national currency viable was the ill-advised Glass-Borah rider to the Federal Home Loan Bank Act of 1932 that bolstered its profitability for the bankers by allowing them to use bonds with interest rates of up to 3-3/8 percent to secure their circulations. The amendment was a populist measure designed to inflate the total money supply so some would trickle down to the little guy on the bottom rung of the economic ladder during the depths of the Great Depression. In reality, it just made the big city bankers richer and temporarily burdened the economy with an increased dose of more inelastic currency. The worst fears of Hoover’s Treasury officials that the national bank note supply could inflate by $1 billion to $1.7 billion as a result of the Glass-Borah Amendment didn’t come to pass. The actual increase was $220 million above the pre-FHLB act circulation of $675 million in 1932. The circulation privilege on the high yield bonds expired on June 22, 1935. Next, the Treasury called all the remaining 2 percent bonds that carried the circulation privilege on August 1, 1935. That was the end of inelastic national currency so reviled by economists and Treasury officials. Thus, the Roosevelt’s New Deal Treasury got rid of the last of it in 1935 by executive action, not through market forces as envisioned by the framers of the Federal Reserve Act back in 1913. Sources of Information and Sources Cited Awalt, F. G., 1932, Increase in the Circulation of National-Bank Notes; in, Annual Report of the Comptroller of the Currency: U. S. Government Printing Office, p. 4-5. Comptroller of the Currency, 1863-1935, National currency and bond ledgers: Record Group 101, U. S. National Archives, College Park, MD. Comptroller of the Currency, issued annually, Annual Reports of the Comptroller of the Currency: U. S. Government Printing Office. Federal Reserve Board, Aug 1932, Review of the Month, home loan banks, p. 474-476, & Recent legislation on national bank note circulation, p. 478-480: Federal Reserve Bulletin, vol. 18, no. 8. O=Connor, J. F. T., 1935, Table 4-Authorized capital stock of national banks, circulation secured by bonds, etc.; in, Seventy-Third Annual Report of the Comptroller of the Currency for the year ended October 31, 1935: U. S. Government Printing Office, 852 p. United States Statutes, National Bank Act and amendments of various dates; Federal Reserve Act and amendments; Federal Home Loan Bank Act of Jul 22, 1932: U. S. Government Printing Office. Wikipedia: http://en.wikipedia.org/wiki/Federal_Home_Loan_Bank_Act. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 281 Gardiner H. Wright & Company, Bog Iron by Terry A. Bryan One of the earliest industries in Colonial America was the refining of iron from ore. This grew to amount to about 14% of the world’s iron by the time of the Revolution. British industry was the main beneficiary of American iron, but the need for cannonballs and chain caused the rebels’ iron furnaces to be strategic targets for British troops. Beyond military supplies, the industry supplied the iron ore carriers, known as Durham Boats, that brought Washington across the Delaware River for his Christmas 1776 attack on Trenton. The iron industry needed ample raw materials and labor. Large forge installations required huge amounts of firewood, charcoal, lime flux and labor to maintain furnace operations year-round. Transport from mines was primitive, so forge complexes were built close to supplies and waterpower. Wood supplies became more distant as forests were cut away. Shelter and sustenance for laborers was a major logistics problem in rough backwoods. The difficulties of large-scale processing of ore from mines caused smaller, seasonal operations to become practical. Small furnaces near “bog iron” deposits proliferated. Surface deposits of ore are produced by various chemical and bacterial actions on iron-bearing acidic groundwater. These surface springs are associated with wetlands, hence the boggy association. Every few decades the bogs re-grow more ore. The Romans and the Vikings knew how to extract iron from such sources. The Viking settlements in Newfoundland and Iceland harvested bog iron. Similar to the blacksmith’s forge setup, iron ore can be smelted in a pile of charcoal with air blown by a bellows. Released iron separates from the impure slag in the melted mass. Surface ore could be processed by small seasonal operations in rural locations. Bog iron can be smelted (iron removed from the raw ore) in a charcoal-fired clay chimney for continuous production. These small furnaces were called “bloomeries”. The “bloom” was the porous, almost foamy, impure iron that was produced. Wood started the heating process, and charcoal fuel achieved the high temperature needed to melt and facilitate the chemical reducing process for the ore. Huge pyramids of wood were slowly smoldered for enough charcoal to produce a 1:1 weight ratio of fuel to ore. Low percentage productivity was achieved when the iron floated to the top as liquid slag was released from the bottom. Usable iron was made by hammering the porous material. At the time, there was no process to extract more metal from the waste. Forced-air blast furnaces have replaced this method in industry. Bog iron deposits are found distant from traditional mountainous mining country. Low-lying areas of Delaware, Maryland and New Jersey had many small furnaces built. Abundant waterpower for the bellows and thick forests allowed months of operations before winter made living in the woods impossible. Furnace companies often owned thousands of acres of woodland; charcoal production used tons of wood. Where limestone was unavailable in these coastal areas, pulverized oyster shells provided flux. Furnace operators were sometimes allowed subsidies for road- building similar to later public utilities. Many firms, partnerships and ventures rose and fell for over a hundred years in these three states. Some surface iron deposits were so large that export to other states took place. At least two Governors of Delaware became rich from iron exports from their properties. In 1815, “Delaware Furnace” was established along the south bank of Indian River at present-day Millsboro, Delaware by William Dagworthy Waples. The area was already a major location of 15-20 grist mills below dams at the headwaters of the river. Waples’ furnace and ore export rapidly became the largest such operation in the state. Waples’ son-in-law, Samuel Gardiner Wright moved from New Jersey to take over operations in 1822. From 1828 to 1830 Delaware Furnace Company produced some 450 tons of pig iron and 340 tons of castings. Samuel’s son, Gardiner Harrison Wright (1806-1886), became the operator in 1832, and smelting continued until 1836. The Wrights continued to buy and export bog iron ore. A small “cupola” furnace continued operation to re-melt pig iron for castings until 1879. The charcoal operations continued to some degree into the 1930s. About 1840, Gardiner Wright managed his works from the County Seat, Georgetown, Delaware, and built a substantial home there. He eventually became President (1862-1875, then Cashier 1875-1882) of the Georgetown Branch of the Farmers Bank of the State of Delaware. As President, he participated in the decision to remain a state bank. The Farmers Bank of Delaware was the last bank in the United States to have its state government retain a significant ownership interest. Slightly magnetic Delaware bog iron ore with appropriate refrigerator magnet.  Cross section of a bloomery furnace. Gardiner Harrison Wright, bank President. Photo-Georgetown Historical Society. Gardiner H. Wright’s 1841 mansion in Georgetown, Delaware, on the National Register of Historic Places.  SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 282 Wright’s membership in the Delaware Department of the Great Central Fair of the U.S. Sanitary Commission in 1864 and his tombstone in the Episcopal Church Cemetery in Georgetown, Delaware both refer to him as “Colonel”. No military record was found. Delaware Furnace Co. established a company store and grist mill across the river from the furnace site. The tiny village was Washington, Delaware. Washington lost out to Millsborough when the post office moved across the mill dam to the south side settlement. The Wright store operation also moved to the south side of Indian River, and progress reduced Washington to a no-name strip of houses. “Millsborough” was shortened to “Millsboro” in 1837. The town became an important shipping point for produce and, of course, a milling center. More recently, it is central to the gigantic broiler chicken industry of the area. A piece of Delaware Furnace scrip on bank note paper appeared in the Dorothy Gershenson auction of D. C. Wismer’s (daughter’s) collection in the 1960s. It has a printed 183_ date filled in with a zero; this is probably too early a guess, inasmuch as the name of the town changed in 1837, and scrip issues appeared in conjunction with the financial panic of that year. One or two more copies of the same note have been in more recent auctions on thin white paper. Draper, Underwood, Bald & Spencer is the imprint. The One Dollar denomination is not common among scrip notes from rural areas. The only trace of the large Millsboro industrial operation today is a riverfront city green space, named Cupola Park, after the small remelting furnace. Bog iron ore is still to be found along the many streams in the area. References: Gerkin, Sandie. “Millsboro Iron Furnace: Once a Thriving Industry.” High Tide News (June 2017). Heite, Edward F. “The Delmarva Bog Iron Industry.” Northeast Historical Archaeology, 3, no. 2 (1974). Lunt, Dudley. The Farmers Bank. Dover, 1957. Scharf, J. Thomas. History of Delaware. Philadelphia: Richards, 1888. “History of Millsboro.” www.millsborochamber.com “Memorial of the Great Central Fair of the U.S. Sanitary Commission, 1864.” www.archives.org “Production of Bog Iron.” www.hurstwic.org [recreation of Viking methods]. “Wright Family Papers.” www.hagley.org/research/search-hagley-collection Thanks to Rosalie Walls for access to the Marvel Museum of the Georgetown Historical Society. Gardiner H. Wright signed as President of the Georgetown branch of the Farmers Bank of the State of Delaware on this one dollar note of 1862. The main office was in Dover, Delaware, and notes were filled in for the branches.  One dollar scrip of Wright’s Delaware Furnace Store, unissued remainder of 183(7). SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 283 The Promise of a Florida Soldier: Hansford Herndon and his 1862 Promissory Note to the Trustees of the Pensacola & Georgia Rail-Road Company by Charles Derby Hansford Herndon was back home only five months after he mustered into Company F of the 5th Regiment of Florida Infantry and joined the fight for the Confederacy. It had been a long haul for the 29 year old, and a wound to his hand at Sharpsburg (Antietam) gave him a month long furlough to recuperate in his north Florida home. Just before returning to the battlefront, he had borrowed money, probably to support his wife and six young children, his youngest born just that year. Who better to borrow from than the richest men in the area, John McGehee and William Bailey, trustees of the Pensacola and Georgia Rail Road Company? So, on October 30th, 1862, in Madison, Florida, Hansford Herndon signed a promissory note to McGehee and Bailey for $18.01, leaving his “X” mark on the document since he did not have the opportunity of an education and could not sign his own name (Fig. 1). Robert Kinney1 signed as witness to the transaction, and with his business concluded, Hansford headed back to the war in Virginia. The fate of these men in the months after the signing of this promissory note lends credence to the old Southern adage that they were engaged in "a rich man's war and a poor man's fight." How had Hansford Herndon gotten to this point in his life? His had been a hard life.2,3 He was one of 14 children born to John Richard Herndon (1785-1852) and Pinkney (Pinkey) Padgett Herndon (1803-1866). The family moved from Colleton County, South Carolina, to Appling County, Georgia, in 1832, where Hansford was born on December 12th of that year. By 1839, the family continued their migration, to Jennings in Hamilton County, Florida, just south of the Georgia border. Hansford and siblings grew up fast, worked hard, and had little time for school. In 1850, 17-year old Hansford married 16-year old Nancy Ann Elizabeth Westberry (1833-1909) in Hamilton. They settled in Echols County, Georgia, just over the Florida border and began raising a family. Several of Hansford’s siblings also moved to Echols County, including younger brother James. By 1860, Hansford had six children (Charles, Elizabeth [Liz], Allen, Susanna [Sue], Georgia Ann, Harriet). His work as a laborer had yielded a savings of only $300. John McGehee, William Bailey, and the Georgia & Pensacola Rail Road The promissory note states that Herndon is to pay the said amount “to William Bailey and John C. McGehee, Trustees of the Pensacola and Georgia Rail-Road Company, or Assigns, at the Office of Figure 1. Hansford Herndon’s $18.01 promissory note to William Bailey and John C. McGehee. Herndon placed “his X mark” next to the “L. S.” printed on the note. “L. S.” is an abbreviation for the Latin phrase logus sigilli, which means “place of the seal” and indicates where the signer should place his seal on the document to authenticate his signature. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 284 the State Bank of Florida, in Tallahassee.” Who were these men and institutions? Life was very different for McGehee4,5,6 and Bailey7,8 than for Herndon. John Charles McGehee (Fig. 2) was born in Abbeville, South Carolina, in 1801. He trained as a lawyer and apprenticed in the law office of John C. Calhoun, from whom he acquired strong beliefs in States rights. In 1831, McGehee married well and moved to Madison County, Florida, where he purchased the plantation, Cheuleotah (Native American for “pine hill”). Though Madison is small now, from the 1830s to early 20th century, it was an important and influential town in Florida.9 McGehee became a member of the Port Saint Joseph Convention which in 1839 drafted Florida's first Constitution. In 1841, McGehee became Judge of the Court of Madison County. His strong views on States rights made him a staunch secessionist, and in 1861, he was selected to represent Madison County in the Florida Secession Convention called by Governor Madison Starke Perry. In fact, McGehee was elected the Convention’s president, and he led Florida to become the third Southern state to secede from the Union. During the war, Governor Perry chose McGehee as one of his four counselors. After the war, McGehee moved to Mexico, but he returned to Madison in 1866. He became deeply involved in the rail road industry, and led the building of 15 miles of railroad between Greenville and Madison. He died in 1881 and is buried in Madison.9 William Bailey (Fig. 2) was born in Georgia in 1790 and moved to Florida in the 1820s. He became a planter with plantations in Jefferson and Leon counties. He fought in the Seminole War in 1840 and earned the rank of general. The year 1856 was monumental for Bailey: he established the Southern Rights Manufacturing Co. textile mill, and he founded the State Bank of Florida in Tallahassee. He was a member of the Tallahassee Railroad Board of Directors in 1861-1865. He had the rank of general in the Civil War and was present at the Battle of Ulustee. He died after the war ended, in 1867. The Pensacola and Georgia Railroad (P&G) 12,13,14 was chartered in January 1853. It took over the Tallahassee Railroad in 1855, which ran south from Tallahassee to St. Marks, a port on the Gulf of Mexico. In 1858, the P&G constructed the Lloyd Railroad Depot and the Tallahassee station. The P&G was active during the Civil War, especially because of the branch line that was built from Tallahassee to Lake City in 1860 and to Quincy in 1863. After the War, the P&G was merged into the Jacksonville, Pensacola, and Mobile Railroad in 1869. McGehee and Bailey were trustees of the Georgia & Pensacola Rail Road. Figure 2 shows a deed of trust, dated April 1, 1860, that invested McGehee and Bailey as trustees with a lien on the railroad between Tallahassee and Lake City (Fig. 2). Hansford Herndon, Florida Soldier Five months before Hansford received his loan from McGehee and Bailey, he had joined the Southern cause. He enlisted on May 7th, 1862, in Hamilton County, Florida. He joined for a three- year stint with Company F, 5th Regiment, Florida Infantry, led by Captain Frink.15 He joined his brother, James Perry Herndon, who though seven years younger than Hansford, had already enlisted Figure 2. Top, John McGehee (left) 6, William Bailey (right)7. Center, 1860 P&G deed of trust, signed by McGehee & Bailey 10,11 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 285 in Captain Frink’s Company F, on March 14, 1862. No photographs of Hansford have survived if any ever existed, but if he resembled brother James, Hansford would have been 5’10’’ tall with dark hair and complexion and with blue eyes. Hansford’s regiment was sent to Virginia to join the Army of Northern Virginia. On September 17, Hansford was wounded at Sharpsburg (Antietam) and treated in General Hospital No. 21 in Richmond on September 27. On October 3rd, he received a thirty-day furlough and $72 for two months of pay and clothing (Fig. 3). He spent his furlough back home, and just before returning to the front, Hansford borrowed his $18.01 from Bailey and McGehee. The following spring, the war season was intense. Hansford’s all-Florida brigade was led by Brig Gen Edward Aylesworth Perry, a future governor of Florida (Fig. 4).16 Hansford was wounded in the hand at the Battle of Chancellorsville on May 3rd. Brother James was also wounded. Hansford and James were patched up and were soon marching into Pennsylvania. But Gen. Perry came down with typhoid fever and missed the Gettysburg Campaign, so Perry’s Brigade was commanded by Col. (later General) David Lang (Fig. 4), who had enlisted in 1861 as a private in the 1st Florida Infantry and quickly rose in the ranks.17,18 So, Lang led Perry's Brigade on a July 2 attack of the center of the Union defensive line on Cemetery Ridge. The brigade advanced past Codori’s farm but was pushed back by Union troops from the III Corps. The next day, the Floridians were supporting Pickett’s Charge, but their advance was stymied by withering fire from the artillery of Lt. Col. Freeman McGilvery. Then, disaster struck: their flank was attacked by Brig. Gen. George J. Stannard’s 2nd Vermont Brigade, with devastating results: 60% of its 700+ soldiers were killed or wounded. Captain Frink died that day.15 Hansford was relatively fortunate: he was wounded in his right ankle, captured, and the next day, July 4th, admitted into 12th Army Corp Field Hospital of the Army of the Potomac. On July 6th, as a prisoner of war, he was transferred to Fort McHenry, Maryland, by the orders of Union Gen. Schenck. Soon, he was transferred to the prison at Fort Delaware, New Castle, Delaware. Brother James was also wounded and captured at Gettysburg and sent to Fort McHenry and Fort Delaware. Fort Delaware was a desolate and isolated place located on Pea Patch Island in the Delaware River (Fig. 5).19,20,21 It became a military prison for captured Confederate soldiers in 1862, and that year housed up to 3,500 prisoners. But a string of prisoner exchanges and an influx of prisoners from Gettysburg and Vicksburg brought Fort McHenry’s prisoner population in mid-1863 to more than 12,000. Because of the overcrowding, extreme weather conditions in the summer and winter, and poor sanitation, diseases ran rampant, including smallpox. Hansford was one of Fort Delaware’s victims: he died there on January 27, Figure 4. Left, Gen. Edward Aylesworth Perry, from 1861-1865.16 Right, Col. (later Gen.) David Lang, taken in Tallahassee.18 Figure 3. Receipt for $72 for pay and clothing received by Hansford Herndon on October 3rd, 1862, Hansford put his “X” mark on this document, as he did on his promissory note. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 286 1864, of “lung infection.” Hansford’s body was taken across Delaware River and buried at Finn's Point cemetery in New Jersey. Years later, in 1910, the U.S. government finally memorialized Hansford and the other 2,435 Confederate prisoners of war soldiers who died at the prison with the construction of The Confederate Monument (Fig. 5), an 85-foot-tall granite obelisk bearing the names of these fallen soldier. After the War Hansford’s wife lived a long life in Echols County, Georgia, dying there in 1909. Brother James survived the war. He took the oath of allegiance at Fort Delaware and was released on June, 10, 1865. He returned home to Echols County by September 1865, where he farmed and raised a family. On April 21, 1892, at the age of 53 years old, he was murdered by fishing companions, drowned in Suwanee River, and his body not found until years later.22 Bailey and McGehee lived till 1867 and 1881, respectively, and though the war impacted them financially, they continued to be well off. Hansford never repaid them the $18.01 that he had borrowed; he gave his life to the Southern cause before he could return to Florida. References and Footnotes 1 Robert McKinney was born in Georgia in 1822 and later moved to Florida. In 1850 in Madison County, Florida, he married Lucinda Lanier (born 1829 in Bulloch County, Georgia, died 1895 in Polk County, Florida). They settled in Madison and had four children. Like Hansford, McKinney was a farmer with little money. But unlike Hansford, McKinney could write, so he accompanied his friend Hansford to the financial transaction as reader and witness. McKinney died in 1882. 2 U.S. Censuses, accessed in ancestry.com 3 Find-a-grave.com 4 History of John C. McGehee, February 18, 2016, Greene Publishing, Inc.: http://www.greenepublishing.com/history-of- john-c-mcgehee/ 5 McGehee, Stephen Clay: The McGehee Family: http://mcgeheefamily.org/southern-connections/ 6 State Library Archives of Florida: Portrait of John C. McGehee: https://www.floridamemory.com/items/show/155826 7 Florida Plantations Past: www.dejaelaine.com/miscplantations2.html 8 “William Bailey Plantation” en.wikipedia.org/wiki/William_Bailey_Plantation 9 Hurst, Bob. 2009. Two giants of their times. Southern Heritage News and Views, April 19, 2009. http://shnv.blogspot.com/2009/04/two-giants-of-their-times.html 10 State Library Archives of Florida: Pensacola and Georgia Railroad Company Bond: www.floridamemory.com/items/show/34951 11 Confederate Railroads: www.csa- railroads.com/Pensacola_and_Georgia_Railroad_Map.htm 12 Turner, Gregg M. 2008. A Journey into Florida Railroad History. Gainesville, Florida: University Press of Florida. 13 Lewis, Lawrence, Adelbert Hamilton, John Houston Merrill, William Mark McKinney, James Manford Kerr, and John Crawford Thomson, editors. 1883. The American and English Railroad Cases: A Collection of All the Railroad Cases in the Courts of Last Resort in America and England. Edward Thompson Company, Northport, New York. 14 Wikipedia “Pensacola and Georgia Railroad: https://en.wikipedia.org/wiki/Pensacola_and_Georgia_Railroad 15 Company A, 1st Regiment Florida Calvary Volunteers: http://history-sites.com/cgi-bin/bbs62x/flcwmb/webbbs 16 Pensapedia “Edward Aylesworth Perry” www.pensapedia.com/wiki/Edward_Aylesworth_Perry 17 Wikipedia “David Lang." https://en.wikipedia.org/wiki/David_Lang_(Civil_War) 18 State Library Archive of Florida “David Lang”: https://www.floridamemory.com/items/show/37123 19 Bryant, Tracey, Escape from Fort Delaware, University of Delaware Research On-Line Magazine, Vol. 2, No. 2: http://www1.udel.edu/researchmagazine/issue/vol2_no2_security /escape_from_fort_delaware.html 20 http://www.clubhotrod.com/hot-rod-lounge/53830-nice- sunday-cruise-i-learn-some-civil-war-history.html 21 Wikipedia “Fort Delaware” https://en.wikipedia.org/wiki/Fort_Delaware 22 A tenant farmer of one of the killers told his deathbed story of what happened to James Herndon’s body. He said that the killers retrieved James’ body at night and paid the tenant farmer to hide it in a sinkhole, threatening to kill him should he report it. Figure 5. Fort Delaware on Pea Island, and the Confederate memorial.19,20,21 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 287 On the 1940 emergency issues of Deventer, The Netherlands Roeland Krul Antonius Marinus van de Waal (1890-1968) used to be Chief of the Archive for De Nederlandsche Bank (DNB), the central bank of The Netherlands, from 1939 till 1956. When Nazi Germany attacked our country by surprise in the early hours of May 10, 1940, people immediately began to hoard silver coins, so within a matter of only a few days, hundreds of towns and cities started issuing emergency paper currency. Mr Van de Waal wrote letters to every municipality in The Netherlands, in the name of the central bank, asking to indicate whether or not they had issued any emergency notes, and if they did, if he could receive a few copies for the archives of De Nederlandsche Bank. He is almost single-handedly responsible for this collection of about 400 notes. This collection is also the foundation of a 1996 catalog by Alphons Toele and Hans Jacobi, that is essentially a must- have for anyone interested in Dutch paper money. What was as yet not known, until recently, is that Mr Van de Waal also built up a private collection of all these notes for himself, and the first part of this collection was auctioned off by Amsterdam-based auction house Crown Currency. As many of these issues are known to be extremely rare, there was some hard battle for most of the notes on offer, but I managed to win a 50 Cents of Deventer, my home town! I was so happy I didn't even bother to try for the 1 Gulden. But as luck would have it, a few weeks later the buyer of the 1 Gulden regretted his purchase (he had wanted to have them both) and sold that note back to the auction house. As the owner of the auction house is a friend of mine, he asked me if I would still be interested. Well YES PLEASE! My hometown of Deventer has never actually issued emergency money, but it does exist! After Van de Waal had not received an answer to his initial request for some notes, he kept chasing the municipal authorities for responses, and so in October of 1940 he received a rather peculiar message: The municipal administration regretted the delay, but it was caused by the fact that the notes had not yet been printed, and the person responsible for printing the notes had been ill and only recently recovered. Obviously the plates were done already and then the printer person fell ill, before the provincial government of Overijssel issued a ban on the issuance of local paper currency (on May 13). Quite a unique situation! Meaning that the notes have only been printed after the request by Van de Waal for some archive copies. These notes, in denominations of 50 Cents and 1 Guilder have a print run of only twenty-five notes each. Thus, by amount printed these are by far the rarest notes in my collection. It is unknown how many survive today, but to the best of my knowledge the only other copies are the ones in the collection of the Central Bank. Text on the obverse: Emergency money - of the municipality of - Deventer good for fifty cents / one guilder Mayor and aldermen of Deventer 11 May 1940 Signatures: J.H. Huyser, secretary; & F.W.R. Wttewaall, Mayor "This piece is an acknowledgement of debt, issued by the municipality of Deventer for compliance with an indebtedness, and will be redeemed by said municipality for its monetary value on a date to be announced later" SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 288 More on Mayor Wttewaall: One of the signatories is Frederik Willem Reinhard Wttewaall (1880-1959), a scion of the noble family Wttewaal van Stoetwegen. A distant relative of his was once the owner of the Wickenburgh mansion near the city of Utrecht, where I used to rent a room as a student back in 1995-96.   Frederik was the mayor of Deventer from 1929 till 1944. Briefly ousted by the Nazis, he was reinstated in 1945. Previously he had been the mayor of neigbouring rural municipality of Lochem, where a street is named after him. (Picture from Wikipedia). Same text as 50 cents except denomination one gulden SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 289 You Collect. We Protect. Learn more at: www.PCGS.com/Banknote PCGS.COM | THE STANDARD FOR THE RARE COIN INDUSTRY | FOLLOW @PCGSCOIN | ©2021 PROFESSIONAL COIN GRADING SERVICE | A DIVISION OF COLLECTORS UNIVERSE, INC. PCGS Banknote is the premier third-party certification service for paper currency. All banknotes graded and encapsulated by PCGS feature revolutionary Near-Field Communication (NFC) Anti-Counterfeiting Technology that enables collectors and dealers to instantly verify every holder and banknote within. VERIFY YOUR BANKNOTE WITH THE PCGS CERT VERIFICATION APP BNR Press 132 East Second St. Port Clinton, OH 43452-1115 New Fifth Edition shipping in March. Order your copy today for earliest shipping. 419 349 1872 fredschwan@yahoo.com 224 large format pages • full color throughout $75 shipped on first available date UNESCO World Heritage Sites Depicted on Bank Notes – Algeria  by Roland Rollins  Algeria is a North African country with a Mediterranean coastline and a Saharan desert interior. Many empires have left legacies here, such as the ancient Roman ruins in seaside Tipaza. In the capital, Algiers, Ottoman landmarks like circa-1612 Ketchaoua Mosque line the hillside Casbah quarter, with its narrow alleys and stairways. The city’s Neo- Byzantine basilica Notre Dame d’Afrique dates to French colonial rule. There are currently 7 UNESCO sites in Algeria. Fortunately 6 sites are shown on Algerian banknotes. There are also 2 Algerian notes with a Tunisian UNESCO site depicted (Ksar of Aït Ben Haddou)! The Kasbah of Algiers is depicted on 13 different banknotes! Most of these are of the “French style” of notes with the use of pastel colors and allegorical and landmark motifs. They include:  P77/B123 5 Francs from 1925-1933 and P94/B137 of 1944 with the very similar motifs  P79/B125 50 Francs of 1913  P80/B126 50 Francs from 1918-1937  P110/B214 10,000 Francs from 1955-1957  P129/B149 100 Nouveaux Francs from 1959-1961  P125/B304 100 Dinars of 1964  P129/B308 500 Dinars from 1970-1973  P135/B314 200 Dinars of 1983  B412 2000 Dinars of 2020  B413 2000 Dinars of 2022 The M'Zab Valley is shown on 2 100 Dinar notes showing the ruins of Ksar: P131/B312 100 (1981) and P134/B313 (1984). Timgad is depicted on 5 notes: P105/B144 5,000 Francs from 1946-1947 P108 & P109 / B203 2,000 Francs from 1949-1956, P113/B208 & P120/B148 overprint 50 Nouveaux Francs of 1956/1959 The Al Qal'a of Beni Hammad is shown P133/B310 20 Dinars of 1983. The Tassili n'Ajjer mountain range is on 1,000 Dinar notes:  P140/B404 of 1992, P142/B406 from 199201998, P143/B407 of 2005 with similar motifs  B413 2,000 Dinars of 2022. I have chosen the B413 note because it depicts THREE UNESCO sites! These include Kasbah of Algiers, The Tassili n'Ajjer mountain range and the last UNSECO site Tipasa. All of these sites are on the back on the note. The note has two other features worth mentioning. It is an IBNS Bank Note of the Year nominee for 2022 – loaded with security features! It has a somewhat unique substrate called DuraNote by the manufacturer LandQart. It is a “sandwich”, with layers of paper/polymer/paper as can be seen in the window. I used a black background to display the crescent and star on the back image. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 292 UPDATE – UNESCO SITES FOUND ON WORLD BANKNOTES  Countries with UNESCO sites – 115 countries • UNESCO sites depicted on banknotes – 147 sites  Total banknotes found with UNESCO sites – 1,339 banknotes Figure 1-B413 2000 Dinar front, 2022 Figure 2 – B413 2000 Dinar back, 2022 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 293 It’s Not Just About the Vignettes: The Mystery of the Missing Statue by Tony Chibbaro Representations of statues of famous Americans are not alien to U.S. obsolete currency. There are scores of “broken” banknotes which feature vignettes depicting a marble or granite bust of George Washington, Benjamin Franklin, or some other historical figure. On many of these the bust is positioned on a pedestal or in some other place of reverence, often with allegorical figures to each side, or in front of a child or two being instructed by an elder. Few notes, however, depict a full-length statue like that of toga-clad John C. Calhoun on the group of four from South Carolina illustrated on the following pages. John Caldwell Calhoun (1782-1850) was arguably the most prominent politician from South Carolina in the first half of the 19th century. The popular statesman was elected Vice President of the United States twice, once in 1825 as John Quincy Adams’ running mate and again as Andrew Jackson’s in 1829. Calhoun also served in the Cabinet of three other presidents - as Secretary of War under James Monroe and as Secretary of State under both John Tyler and James K. Polk. But it was during the fourteen years he served in the U.S. Senate that Calhoun had the most impact in Washington. As a Senator, he was an ardent supporter of the South and was vociferous in the defense of slavery, nullification, and states’ rights. Calhoun was a gifted orator and his debates with fellow Senators Daniel Webster and Henry Clay are often cited as carrying great influence in the national politics of the day.  As a defender of the Southern way of life, it is no surprise that Calhoun’s visage should appear on Southern obsolete currency. In fact, his portrait was placed on no fewer than fifteen types of obsolete banknotes from South Carolina, as well as on a pair of bills issued by the Confederacy. But it is a group of four notes depicting a full-length marble sculpture of Calhoun that is the focus of this article. The statue in question was conceived by noted American sculptor Hiram Powers, who was given the commission to create it in 1844 while Calhoun was running for the Democratic presidential nomination. Powers, however, who had moved to Italy in 1837, took several years to finish the piece. Depicting Calhoun in Roman garb and holding a scroll upon which the words “Truth, Justice, and the Constitution” were inscribed, it was set to arrive in America in July 1850, four months after Calhoun’s death. As fate would have it, the ship carrying it foundered off the coast of New York and the statue sank to the bottom of the ocean. It was salvaged several months later but arrived in South Carolina missing its left arm and a portion of the scroll. The city of Charleston, which had hosted the statesman’s funeral earlier in the year, placed the damaged sculpture on public display in City Hall, but it was not until 1858 that the statue was fully repaired. The first financial institution to issue a banknote depicting the Calhoun statue was the Bank of South Carolina in Charleston. In 1851 or early 1852, the firm contracted with Rawdon, Wright, Hatch & Edson of New York City to print a group of $10 notes featuring the sculpture on their right side. The one illustrated below was placed into circulation almost 10 years later though, just 6 days after the Civil War began. Specimens dated as early as 1852 and as late as 1861 have been encountered in the numismatic marketplace. The Bank of the State of South Carolina (a completely separate entity from the Bank of South Carolina) was the next financial institution to place a vignette of the statue on its notes. Sometime around 1852, the firm hired Danforth, Bald & Company of Philadelphia and New York to print a group of $1 notes featuring the Calhoun sculpture on their left side (see proof note below). Specimens dated 1854 are encountered occasionally today. The bank followed up a few years later with a redesigned $1 note Portrait of John C. Calhoun which appears on $2 notes of the Bank of the State of South Carolina  Statue of John C. Calhoun as it appeared in Charleston City Hall after its repair, circa 1858. Excerpted from a stereoscopic view card, it is the only known photograph of the sculpture. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 294 (see proof note below or at the top of the next page) featuring two marble sculptures, the Calhoun statue on the left as well as a bust of deceased Governor and U.S. Senator George McDuffie at center right. Issued between 1859 and 1862 and carrying the imprints of Bald, Adams & Company, Bald, Cousland & Company, and/or the American Bank Note Company, these are more common and are offered frequently for sale in dealers’ inventories and on online auction sites. The Merchants Bank of South Carolina at Cheraw was the third firm to feature the Calhoun statue on its banknotes. $5 notes (see below) with the sculpture appearing on their left sides were printed by Rawdon, Wright, Hatch & Edson and placed into circulation by the bank in 1857, 1858, and 1859. So what has happened to the statue of John C. Calhoun in the 170+ years since its creation? What is the great mystery which surrounds it? Well, the answer is that no one knows for sure. Historical accounts indicate that it did not survive the Civil War. It is widely believed that as Union forces threatened Charleston, the statue was put in a crate to be shipped to Columbia. Some sources state that it was stored in Columbia in the courthouse while others simply relate that it was placed in the old State House. But was this the old State House in Charleston or the one in Columbia? Most historians feel that it was, in fact, shipped to Columbia and was subsequently destroyed when General Sherman’s troops burned the city. There is one account, however, which holds that the crate never made it to Columbia but remained unshipped and forgotten in the train depot in Charleston until it was inadvertently destroyed when the last of the Confederate troops left the city in February of 1865, blowing up the depot as they retreated to thwart its use by Union forces. At this point in time, the mystery of the missing Calhoun statue will never be solved. There are, however, a number of antebellum banknotes, as well as one old photograph, which can attest to its brief but troubled existence. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 295 The Rare Wobus Postal Note from Saint Charles Missouri by Bob Laub Who ever heard of a Wobus Postal Note? I discovered, years ago, a vast number of people know how to verbally communicate, but many less know how to listen. If you captivate an audience with an interesting title or opening statement you have a better chance of holding their attention during more of the conversation. The same holds true when writing an article. The more interesting and intriguing a title, the better the chances are of drawing a reader in. While actively collecting 1883-1894 U.S. Postal Notes, one of my more recent acquisitions, was a note issued from Saint Charles, Missouri. The note, serial number 9941, was issued for two- cents on Saturday June 30th, 1894, the official “last day of issue”. The series actually began 12 years earlier on Monday September 3rd, 1883. This note, printed by Dunlap and Clarke of Philadelphia, was part of the final four-year contract to produce postal notes. Printed on a light-grey watermarked paper, the notes were designed and implemented to forward small amounts of money more securely through the postal system. In a sense, these historical one-time usage documents, were an earlier generation of today’s post office money orders. The success rate of this series is substantially evidenced by the sheer numbers of notes issued. During the life span of the series, almost 71 million notes were purchased, with over 3 million notes recorded from the state of Missouri alone. The State of Missouri, and the City of Saint Charles Missouri is located in the central portion of the United States and was first settled in 1735 by French-Canadian fur traders. It is one of only two states which are bordered by eight other states, the other being Tennessee. The city of Saint Charles was founded in about 1769. In 1804, the famous explorers Lewis and Clark considered this to be the last “civilized” stop before the western territory. The city later became Missouri’s first capital on August 10th, 1821 when the area became the nation’s 24th state. The capital remained there until 1826. Towards the end of the postal note series Saint Charles had a population of just under 6,200, and today is Missouri’s ninth largest city boasting just over 70,000 inhabitants. Who was R. Wobus?1 Reinhard Wobus was from Sissach, Switzerland and was born on April 20th, 1853. He came to America with his brother in the late 1860’s. In 1877 he returned to Switzerland to marry Adele Bricar on September 25th, 1877. They came to America later that same year. Reinhard then began his pastorate in Saint Charles, Missouri, at Saint John’s Church. There he assisted Doctor Adolph Baltzer, the general president of the Evangelical Synod. This body, commonly known as the “Unitrin” or “Prussian Union”, numbers 842 congregations and 648 pastors. The sale of all church publications came to the church through the mail, and acceptance of funds generated by the same was the responsibility of Pastor Wobus. He also served on the Seminary Board, the first Pension Board, and later became the Treasurer of the Synod. He had the responsibility of monetary donations from individuals as well as all monies received in collections. Another of the Pastor’s duties was the care of the books and certificates. He was also Publisher of the Eden Publishing House, which he actually started in his home. The pastor, with his intense dedication, and schedule, eventually overworked himself, took a heavy cold, and died of complications on November 5th, 1894, at the age of 41. He was survived by his wife of 17 years, Adele, and their five children. Three sons Reinhard, Theodore, and Paul and two daughters Marguerite and Martha. The Wobus Postal Note link On the reverse of all Type V Postal Notes, there are two circles horizontally implemented into the design. The left circle is for the “issuing office”, which in this case is Saint Charles. The right circle was to be cancelled by the “paying office”. In that circle, a very ornate personal cancel which reads: R. Wobus, July 2nd, 1894, St. Charles, MO. Apparently the use of custom cancels was not a rarity in those days, but was more commonly applied to books in one’s personal library. This postal note passed through Pastor Wobus hands just four months before his untimely death. Not only a piece of postal history, but a lasting tribute to a man who dedicated his entire life to his family and church. I was very fortunate to have located, purchased, and researched this unique piece of postal history. Without this lone surviving postal note from Saint Charles, Missouri the story of Pastor Reinhard Wobus might have been lost for all eternity. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 296 Maybe we should try examining various details of our collections more closely. You never know which notes may have an interesting story waiting to be discovered. One of my favorite comments in collecting postal notes is every surviving note has a story to tell, if one only digs deep enough. My other comment is that I have never met a postal note I didn’t like. I hope you came away with some degree of enjoyment from this short glimpse into one of my favorite postal notes. Any questions or comments are appreciated. Also, I would enjoy hearing about any postal notes you may have. briveadus2012@yahoo.com. 1.https://www.ancestry.com/genealogy/records/reinhard-r-wobus-24-1h0sl3 Ty. V Postal Note Issued at Saint Charles Missouri in the souvenir amount of 2-cents. Reverse: Issuing circle (left) clearly shows a Saint Charles, MO, Jun(e) 30, 1894 (last day of issue) M.O.B. (Money Order Business) cancelation. While the paying circle (right) has a custom-made cancel: R Wobus, Jul(y) 2, 1894 St. Charles, Mo. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 297 U N C O U P L E D : PAPER MONEY’S ODD COUPLE Joseph E. Boling Fred Schwan TOYS   Last issue I promised an update on a past column. Now I cannot remember what update I had in mind. Grump. Fred is writing about Brazil this month. That led me to think of a peculiar Brazilian piece I picked up over a decade ago that turned out to be part of a set that I want to know more about. Figures 1 and 2 are of that note—a strange fantasy that superimposes a new portrait on the design of an issued Brazilian note, while also modifying the main title on the note and removing the printer’s imprint. Figure 3 is the note that was used as a model for the fantasy piece. The signatures have also been changed. The fantasy repeats the same design on both sides, but with a dark green overlay on one side. See Boling page 301 Brazil in World War II Brazil played a more significant role in World War II than is generally recognized in the United States. This role included deployment of the only South American ground forces to Europe. In addition to that combat power, Brazil had a strategically important location. The “hop” from Brazil to Africa was the shortest way across the Atlantic. Several United States air and naval bases were operated in Brazil for this reason. Where there were overseas bases there usually were numismatic relics. Bonds We were quite pleased to be able to include listings for Brazil in World War II Remembered in 1995. That was a first. Mostly the inclusion was made possible by the discovery of an issue of war bonds. In the nearly thirty years since that publication, we have been able to find a few more things that have been placed in the draft of the second edition and that we will discuss today. The listings that we created in the 1990s were of the illustrated type bond with a black vignette of a 19th century military scene. The listings were based on the bonds in one small group of five or so pieces that I found at that time. I do not believe that I have seen a single additional piece in all the intervening years. War bonds were issued by Brazil just as they were by most other Allies. The bonds cite an authorizing law of 5 October 1942. Presumably they were not issued until after that date. Citizens were forced to purchase bonds by payroll deduction. A similar plan had been considered and rejected by the United States, but was used in Japan. The bonds paid 6% interest, which was payable on a semiannual basis by the redemption of coupons. Bonds were issued in at least four denominations. Additional denominations may also have been issued. The Cr$5000 bond also cites a decree of 22 May 1944, although its last interest coupon is for the same date as the earlier pieces—1 September 1957. Fig 3 Fig 2 Fig 1 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 298 It is altogether possible or even likely that bonds with the additional 1944 date constitute a separate series of bonds. We need to find two examples of a denomination showing the two versions of text. The bonds were printed by letterpress in two colors (blue and purple with red serial numbers by the Casa da Moeda in Rio de Janeiro on plain bond paper without watermark). The production of the bonds included an unusual element that we either did not notice in 1995, or if we did notice, we did not mention. While the bonds are uniface, the coupons are printed face and back!  Emergency small change notes and chits An emergency small change issue was created in Maceió by United States Navy personnel. Maceió is a seaport and capital city of the Brazilian state Alagoas. The text stated (with slashes indicating the line breaks on the notes) “UNITED STATES NAVY/— MACEIÓ—/This token will be honored for face/value at any of the Base Activities./The value of this token will be re-/deemed at the Base Bank at any time./Charles L. Wiley/Commanding.” The signature of Lieutenant Commander Wiley appears to be a rubber stamp.  These notes were first reported by Captain V. L. Bigsby in the Whitman Numismatic Journal in the 1960s. The same story was repeated in the Jan-Mar 1977 FUNTopics, journal of Florida United Numismatists, and of course in World War II Remembered in 1995. Bigsby reported that a naval seaplane base was established at Maceió in June 1941. He explained that small change was in very short supply and local merchants were charging a fee to change high-value cruzeiro notes. Therefore, the emergency scrip was printed and issued for use on the base. Bigsby states that about $50 worth of scrip was printed and that the base was closed in November 1945. Bigsby reported that the token notes were denominated in cruzeiros, even though only numerals appear in the corners and in the center. The cruzeiro denomination was not introduced until 1942. This would seem to indicate that the chits were not issued until at least 1942, which would be reasonable. The same economic conditions that caused the introduction of the new monetary system probably would also have caused the coin shortage described by Bigsby. Among the many interesting things about these notes is the text stating that the tokens will be redeemed at the base bank! Does that mean army or navy finance office? In any case it seems to separate the Maceió pieces from simple club chits. These chits/tokens are certainly very scarce. I believe that I have seen one piece trade since 1995, but I am not even sure of that. Reports of pieces in collections will be greatly appreciated. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 299 Were other denominations issued? Were similar (semi-official) issues prepared at the other bases? They certainly served under the same conditions as those at Maceió, but there do not seem to be any reports of other local issues. I have seen two interesting locally produced club chits, and we know that there were more chits from the post-war period. The first chit in question was for a USO (United Services Organization) snack bar in Recife where a US air base was operated during the war. The European notation for the denomination (Cr$ 5,00) and the thin paper (instead of card stock) indicate that they were printed locally. It is very possible that other denominations were issued as well. As a fixed (snack bar) club, there is a chance that we can ultimately find more information on it. Again, reports will be very welcome. I have also seen a chit for another food service outlet—a one cruzeiro piece for the ships service fountain in Bahia, Brazil. This piece is a bit more fancy than the ones already discussed—it has a serial number (and a high one to boot). If that number represents a whole booklet (a common format for chits), then bushels of them were printed. Even if the serial represents the single chit, there would still have been a substantial number of these prepared. Let us know if you have one, and what its serial number is.  Short snorters Short snorters do not lend themselves to listing in the ways that the bonds and chits do, but they are often attributable to a place and even a time. They also make great additions to listings in books like Remembered. While all of the above items are scarce to very rare, short snorters with Brazilian notes or signed in Brazil are only slightly more scarce than those of many other countries. The illustrated short snorter with a US and a Brazilian note is a souvenir of a flight from Miami to Natal on 27 February 1944. Furthermore, the flight was made in C-54 #76! The short snorter belonged to a person named Isherwood. Most of the other names are hard to read. More rare than most short snorters are photographs of them being signed. Do not get me wrong, snorting was so popular that there are many photographs, but those that have details are certainly scarce and they are all very interesting. In this case we have a professional news photograph that I attribute to Brazil, even if the official photograph was more vague about the location. In this case the length and detail of the caption are particularly delightful (including the typos). SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 300 “Somewhere in the South Atlantic...typical of the Air Transport Command’s (ATC) bases through out the warring world of United Nations, is the short- snorter craze. Here, exchanging signatures on their bills are Lt. Bob Golden, far side, of Los Angles, who has fourteen bills from fourteen different countries in which he as landed his giant ATC cargo planes recently, and Lt. Wm. J. Scripps, of Detroit (foreground). At ATC bases men and war material are constantly arriving and departing after having been sorted and funneled out for the various war fronts to which they are consigned. The huge planes maintained their schedules rigidly, enabling advancing Allied armies to continue their advances and maintain their supply lines. R.8.43. International News Photo, a unit of King Features Synd., Inc.” This image appeared in the September 6, 1943 issue of Life magazine. The blowup below shows a Brazilian note in the short snorter.  Well, that brings you up to date with what we have on Brazil for Remembered II. Report your additions to these to fredschwan@yahoo.com . Boling continued; I have seven different examples of such pieces. One side of each note has a black NON-NEGOTIABLE legend. Some of them repeat the dark green treatment on one side; others do not. All of them have alterations in the note’s main title. Figures 4-6 are the first such note that came my way, in 2004, with figure 6 being the Nicaraguan design that was adopted for the fantasy. This one also has the dark green treatment of one side. Note that the changes in the title are more extensive than on the Brazilian note, and a few letters have been added to each signature. A year or so ago I fielded an inquiry from the ANA education department about just what this note represented. The collector who was inquiring had not made the Nicaraguan connection. I could add nothing except to identify the model used for the note. Now back to Brazil. This is the only country that is repeated in the seven notes that I have. Figures 7-9 are a Brazilian one cruzeiro note that has received the same treatment, except that here the green side is much more legible. If you go back to figures 1-2, you will see that the note was miscut. A tiny part of the note below is visible at the bottom of each side. That small strip is enlarged in figures 10-11. This shows that the Brazilian one cruzeiro note was printed below the five cruzeiro note on the sheet, but that the green side of the one cruzeiro on that sheet had the same dark green Fig. 6 Fig. 4 Fig. 5 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 301 overlay that we have seen in figures 2 and 5, instead of the more-legible green of figure 8. Very peculiar! As on the five cruzeiro note, the signatures have been completely changed. Each of these first three has retained the shape of the model note, although the sizes are about 10mm shorter. Figures 12-14 depart from this approach. The lower 17mm of the model note are removed and the fantasy stretched out to match the dimensions of the other notes in this set. In this case it is the denomination and some of the text above it that is truncated or garbled. Figures 15-17 follow this same approach on a Chilean note, with again the signatures being altered. Fig. 9 Fig. 8 Fig. 7 Fig. 10 Fig. 11 Fig. 13 Fig. 12 Fig. 14 Fig. 17 Fig. 15 Fig. 16 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 302 In figures 18-19, the perpetrator has added new material at the right end of the Tahitian note’s design, repeated from the left end and center. I can’t show you the other side of this piece, because I was not successful in buying it from the Warrington faker when he offered it in May (he rarely shows both sides of his listings). These are not his work—these are all nicely lithographed, while he uses only inkjet (so far). Figures 20-22 return to following the aspect ratio of the model note, a Yugoslavian piece. Here the bank name is altered, the country name is turned upside down, and the signatures get minor tweaking. As always, the printer’s imprint is removed. If any reader knows where and under what circumstances these fantasies were created, please email me at joeboling@aol.com. ATC Route map Brazil Welcome Home Booklet Fig. 18 Fig. 21 Fig. 20 Fig. 19 Fig.22 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 303 De-throning the Dollar Ever since the middle of the last century, the United States dollar has reigned as the premier international currency. This means that the greenback serves as a means of payment, unit of account, and store of value to people around the world, even alongside their own national currencies. Originally, the dollar’s special status reflected the dominant position of the American economy at the end of World War II. That position has eroded over the decades as faster-growing parts of the world have caught up with the United States, leading to questions about whether the dollar would remain dominant. Every time there’s an international political or economic crisis people return to this issue. The war in Ukraine is no different. As is typical, most of the energy in the latest “de-dollarization” debate comes from those who want to see the dollar dethroned. These include Russia (which chafes under U.S.-orchestrated sanctions), China (which Is hostile to a U.S.-led global order), and the French (who are simply jealous). More broadly, there is a baseline resentment of what one Frenchman once called the dollar’s “exorbitant privilege.” Because the United States trades and borrows in its own currency, it isn’t bound by the constraints felt by lesser countries. If Venezuela runs out of dollars, it is SOL. In contrast, if the United States needs more dollars, it can simply issue more dollar-denominated debt, or create more dollars themselves. It’s an unequal arrangement, but economic pundits from Tyler Cowen to Paul Krugman agree that it’s not going to change anytime soon. The world benefits from the dollar’s hegemony. Above all, it’s the dollar’s function as a store of value that conditions its other uses. Galling as it may seem to advocates of limited government, the trillions of dollars’ worth of U.S. government debt represents a supply of “safe assets” that anchor the global financial system. Currently, no other alternative to the dollar exists. Despite initial high hopes, after two decades the euro does not play this role. Eurozone capital markets are too fragmented to supply the world with safe financial assets; Greek and Italian debt is not as trustworthy as German debt. Even though, by some measures, China has become the world’s largest economy, the renminbi remains a tiny factor in global finance. This is a direct consequence of China’s growth model. Oriented towards exports, it accumulates dollar surpluses that only reinforce the current system. In addition, China’s preferences for capital controls and foreign exchange interventions make the renminbi an untrustworthy alternative. Tellingly, when China lends to other countries, it uses dollars, not its own currency. Dollar dominance won’t last forever. The end to the dollar’s reign may be hastened by choices the U.S. government itself makes. Sanctioning Russia by excluding it from the international payments system has produced a backlash, leading to calls for ways to settle accounts in something other than the dollar (a BRICs currency, for example). More worrying, the inability of the U.S. to get its own fiscal house in order may finally dissuade the world from lending to it. We will know that red line only when we’ve crossed it. The physical form that dollars take is especially important. Some bad people (drug dealers and other criminals) but millions of other good people around the world depend upon paper dollars to meet their needs and protect what’s theirs. When countries like Argentina, Venezuela or Lebanon can’t or won’t supply their peoples with reliable currencies, the dollar is always there to make hard lives easier. In Zimbabwe, which is currently a monetary version of the Hunger Games, the U.S. dollar competes with a number of alternatives, including the South African rand, Chinese renminbi, Botswanan pula and God knows what else. Even inveterate America-haters like North Korea can’t avoid making use of the greenback. At the street level, there’s nothing particularly magical that makes the U.S. dollar widely acceptable. Euros, Swiss francs, British pounds, and whatnot will also do. Nonetheless, the international status of the dollar filters down in a way to make it more useful than other currencies. Key, though, is the persistence of actual, paper bills—having bank accounts in dollars isn’t sufficiently safe. As Argentinians learned during the Corralito episode of 2001, an unscrupulous government can seize dollar-denominated bank accounts and forcibly convert them into devalued local money. Across the globe, economies are inevitably becoming cashless. In high-trust, Scandinavian societies, this transition will go smoothly. Elsewhere, though, it is foolhardy to expect that political authorities will refrain from using their powers over digital currencies to reward friends and punish enemies. Physical currencies make it more difficult for governments to do this. Ironically, through its own wielding of the dollar weapon against Russia, the United States is demonstrating to the world just how much damage can be done. Chump Change by Loren Gatch 304 The Obsolete Corner The Harrisburg Bank by Robert Gill As you read this, Summer is upon us. Here in Southern Oklahoma, we usually have very hot weather during this time of year, but hopefully, we’ll get a reprieve this year. And as for my paper money collecting, I’ve acquired a couple of good sheets to enhance my collection. I hope you’re having success in that regard also. But now, let’s look at the sheet from my collection that I’ve chosen to share with you. In this issue of Paper Money, let’s look at The Harrisburg Bank, located in Harrisburg, Pennsylvania, back in the early to middle 1800s. As engraved on the note, it was printed as a “RE-ISSUE”, requiring only the signature of the Clerk, rather than the usual signatures of the President and Cashier. I have seen a couple others of this note, but both had been trimmed closely to the note’s frame. Until this piece came my way, I had no idea that this issue had been printed as a one-note-impression. And now, let’s look at the history behind this old institution. According to Harrisburg Industrializes: The Coming of Factories to an American Community, by Gerald Eggert, moving quickly to form a locally controlled bank, a group of leading citizens in Harrisburg, Pennsylvania, secured a charter in May of 1814. Popular response was enthusiastic both in the town and in nearby Cumberland County. In the latter, Jacob M. Haldeman, after buying fifty shares himself, persuaded neighbors and friends to take up another two hundred thirty-five shares. Subscriptions in that area were helped by a local bridge that was under construction, which promised easier access to the capital city and to the Bank about to be started. Although the subscription books were open only six days, a total of two hundred thirty-five people bought over six thousand four hundred shares of stock with a par value of $50 each, exceeding the authorized capital of $300,000 by more than $21,000. Ownership of The Harrisburg Bank was not highly concentrated. Two dozen people, including Robert Harris, Thomas Elder, and John Forster, each held one hundred shares, with a par value of $5,000, and controlled a little over a third of the stock. Fifty other people, with between twenty-five and ninety-five shares each, controlled another third; and the remaining third was held by one hundred sixty small shareholders. As might be expected, seven of the thirteen members of the first Board of Directors (including the President) and the Cashier came from the major stockholding group. Four Directors came from the second group, and two from the third. When the Bank organized in June, Harris and Haldeman were elected to the Board of Directors. The others included Henry Beader, a coppersmith who was recorder of Dauphin County, Christian Kunkel and John Peter Keller II, wealthy merchants who also regularly served on the Borough Council, and John Shoch, an innkeeper and treasurer of Dauphin County. Four represented nearby communities: Haldeman from Cumberland County, Thomas Brown from Paxton, John McCleery from Halifax, and Isaac Hershey from Londonderry. The Presidency fell initially to William Wallace, a wealthy ironmaster and chief burgess of Harrisburg; the Cashiership went to John Downey. During the first half of the nineteenth century, "country banks", such as The Harrisburg Bank, were relatively simple affairs. Shareholders met annually to elect (and more often to re-elect) the Board of Directors. The Directors fixed their salaries. Day-to- day operations were conducted by the President or the Cashier, or both, depending on strength of personality, business sense, amount of personal investment in the Bank, and other interests of the two. Periodically, usually once a week, the Directors met to decide which notes offered by businessmen would be discounted, and which would be rejected. They also decided which unpaid loans would be extended (and on what terms), and which would be taken to judgment. In practice, the longer a President or Cashier was in office, the more complete his authority became. Under a strong President and Cashier, the Board's work dwindled to accepting recommendations. and sometimes even ratifying actions taken by the Executive Officer. The physical facilities of such banks were simple at the start. The Harrisburg Bank, for example, opened for business in the parlor of its Cashier's home. It soon contracted for a house to be built that was equipped with a vault and space for conducting business. Then, in 1817, it purchased and moved into the quarters previously occupied by the Office of Discount & Deposit. That two-story building, which remained the home of The Harrisburg Bank until 1854, consisted of a banking room and a small Directors' Room on the first floor, and living quarters for the Cashier on the second floor. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 305 From the beginning, The Harrisburg Bank helped finance the transportation improvements so vital to the growth of the community's trade and commerce. As early as September of 1816 the Cashier requested a number of banks in neighboring communities to send paper. The Harrisburg Bank's funds had become diminished because its local situation had required it to aid both The Harrisburg Bridge Company and The Harrisburg to Middletown Turnpike. Its ties to the Bridge Company were particularly close. The Bank held considerable blocks of Harrisburg Bridge Company stock throughout the pre-Civil War period, and frequently extended loans. Seven of the Bank's early Directors simultaneously were Directors of the Bridge Company. Cashier Downey, with the permission of the Bank's Board of Directors, served as Treasurer of the Bridge Company without pay. Thomas Elder, President of the Bridge Company and owner of one hundred shares of the Bank's stock, became President of the Bank when Bank President Wallace died in 1816. Among the Bank's earliest transactions were frequent discounting of Bridge Company notes, and loans to the Commonwealth of Pennsylvania, to get the state to honor its own warrants to the Bridge Company that the Bank had accepted as deposits. Securing money to lend was The Harrisburg Bank's first task. As soon as the Board of Directors organized, they dispatched Cashier Downey to Philadelphia to secure the printing of $500,000 worth of bank notes; $100,000 at once, the balance within three weeks. They also agreed to accept the notes of certain out-of-state banks, and to make arrangements for friendly inter business with other banks. Finally, they notified Federal Revenue Collectors that The Harrisburg Bank stood ready to act as a depository for their funds. Another early concern of The Harrisburg Bank was that Philadelphia banks were trying to smother it and the other new "country banks" in their infancy. Within a month of opening, it received notice from The Philadelphia Bank's Harrisburg Branch that only its own notes or notes issued by Philadelphia banks would be accepted. In response, Cashier Downey wrote to his counterpart in the new bank at Reading, urging cooperation and an exchange of paper to protect their institutions from the large city banks. The Harrisburg Bank also hosted a series of conferences with other "country banks" to take measures of self-defense against the intolerance of large city banks. These sessions, held in Harrisburg from late 1814 to 1817, protested the behavior of Philadelphia banks, discussed possible legislative remedies, and studied problems stemming from the general suspension of specie by Pennsylvania banks. On another front, The Harrisburg Bank persuaded the "country banks" between Philadelphia and the Allegheny Mountains to issue uniform notes (except for the name of the bank of issue), which it supplied to them. Early in 1815, Cashier Musgrave of the Philadelphia Bank's Harrisburg office intensified the pressure. He notified The Harrisburg Bank that his institution held a large quantity of its notes, and wanted to know how soon and in what manner they could be redeemed. This was a legitimate device that Philadelphia banks employed to protect themselves against inadequately backed issues of notes by "country banks". It could also be used to embarrass banks whose notes were perfectly sound by draining away their limited assets on short notice. The Harrisburg Bank replied that it had no Philadelphia paper at the moment, but would give any other paper it had. By July, Musgrave had more than $30,000 worth of Harrisburg Bank notes he wanted to redeem. With considerable effort, The Harrisburg Bank scraped together enough Philadelphia, New Jersey, Delaware, and Southern state paper to redeem them. Ironically, a few weeks later, after sending Cashier Downey to Philadelphia to persuade banks there to accept its notes, the Directors of the Harrisburg Bank authorized him to reject notes of banks located west of the Susquehanna River. New troubles afflicted the Bank when its first Cashier resigned in 1815, and its first President died in 1816. Thanks to the great need for banking facilities in the region, the Bank prospered, nonetheless. After only four months of operation, it had nearly $95,450 in assets, and issued a thirty-three-cent dividend per share, equal to eight percent a year on the capital stock paid in. By 1816, it was discounting notes for customers not only from Harrisburg and from Dauphin County, but also from most adjacent counties, and from as far away as Crawford County in the northwestern corner of the state. Dividends continued at eight percent until the financial scare in 1819. Meanwhile, new officers, President Thomas Elder and Cashier John Forster, began long tenures. Elder would serve thirty-seven years, until his death in 1853. Forster served from 1815 until he quit in 1833, after having disagreements with Elder. Forster's appointment as Cashier marked his entry into a leading role in building Harrisburg's economy. He was a native of Elder's birthplace, Paxton Township, and was married to Elder's niece. He cut short his schooling at the College of New Jersey at Princeton to serve as a volunteer in putting down the Whiskey Rebellion in western Pennsylvania. During the War of 1812, he fought in the defense of Baltimore, SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 306 and earned the honorific "General." The citizenry also chose him to represent them in the state senate between 1814 and 1818. Although he originally prepared for a career in law, Forster's main interests became mercantile pursuits, banking, and land acquisition. Elder and Forster began serving the Bank forcefully. In 1817, they purchased the business and offices of the Harrisburg Branch of the Philadelphia Bank for just over $245,000. This made The Harrisburg Bank the town's only important banking facility. That same year, the Treasury Department designated it and four other state banks in Pennsylvania Depositories of Federal Revenues. The arrangement provided not only additional funds, but also power over other banks. Revenue collectors were instructed to accept only the notes of state banks that were acceptable to the four depositories, and to The Second Bank of the United States, which had been chartered in 1816. These advantages were lost, at least temporarily, by Elder's dabbling in politics during the gubernatorial election of 1817. His efforts to defeat those favored at Washington led the Secretary of the Treasury to transfer the Federal Government's funds to the nearby bank in Swatara Township. Even so, The Harrisburg Bank enjoyed a strong credit line with The Bank of the United States. As of June 30th, 1818, its obligations to that institution amounted to more than $62,000. The onset of a major business panic in 1819, however, considerably slowed its operations. Despite the strain of the general collapse of business, The Harrisburg Bank, unlike many other state banks, survived. So did the various turnpike and canal companies that were part of Harrisburg's growing infrastructure. All were in place to take advantage of the next upturn in the economy in the mid-1820s. The Bank continued to do ample business thru the Panic of 1837, up to and during the Civil War. A critical point for it during the War was on the night of July 1st, 1863, when Bank President William Kerr took the Bank's gold to New York for safekeeping, as Confederate advances were made. Other valuables were taken to Philadelphia by John Weir. On November 16th, 1864, The Harrisburg Bank took advantage of the National Banking Act, and became The Harrisburg National Bank, Charter # 580. So, there’s the history behind this old institution and its success. Becoming a National Bank was quite an accomplishment back then, as so many of the banks during that time were failures. As I always do, I invite any comments to my cell phone number (580) 221-0898, or you may contact me at my personal email address robertdalegill@gmail.com So, until next time, I wish you HAPPY COLLECTING. SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 307 The front of the Type-40 Treasury note endorsed by 1st Lt. John E. Day, 61st Mounted Tennessee Infantry. image: Raiden Honaker with Heritage Auctions 1st Lt. John E. Day 61st Mounted Tennessee Infantry A new discovery by Raiden Honaker is both fascinating for the new place name of Saulsbury, (Tennessee) and it also illustrates the difficulty sometimes encountered in identifying a new endorsement. We have the endorsement of “J. E. Day” and a date, but no rank, title, or statement of issue. With these clues we can look to the National Archives files, and if we find a corroborating signature, we will have a positive identification. Ten National Archives documents for John E. Day are found in the files for the 23rd Mississippi Regiment. Eight documents are found in the files for Officers, and one document is found in the Miscellaneous file. Nine documents are found in the files for the Sixty-first Mounted Tennessee Infantry. The illustrated Treasury note was stamped with a black issue date stamp of October 7th, 1862. Interest was paid at Savannah in 1863 and at Macon in 1864 and 1865. 1861 John E. Day, aged 40 years, enlisted as a Private in Company I of the 2nd Mississippi Regiment (later called the 23rd Mississippi Regiment after the reorganization into the Confederate Service) on August 24th at Poplar Springs, Mississippi. The National Archives summary card also notes that he died from fever on October 6th, 1862, at Jackson, Mississippi. There is some confusion in the file for John E. Day of the 23rd Mississippi Regiment. A different John E. Day enlisted as a Private in the same Company I on September 19th at Iuka, Mississippi, and his summary card noted that he was left sick at Camp Chase Prison, Ohio. 1862 Private Day was arrested at Clarksville, Tennessee, in March and appears on a list of the prisoners at Camp Chase dated March 28th, 1862. Private day was later exchanged and released at Vicksburg, Mississippi, on August 25th. The last summary card in the files for Day in the Twenty-third Infantry poses another problem; it claims he died of fever at Jackson, Mississippi, on October 6th. Note that both examples of John E. Day died on the same day. They are probably the same man with conflicting dates and places of enlistment who could not have endorsed the Treasury note in 1863. The files for the 61st Mounted Tennessee Infantry solved the mystery. The file for “John E. Day” showed that he enlisted on October 3rd at Claiborne County, Tennessee, in Capt. S. E. Mitchell’s Company H as a 1st Lieutenant. The Quartermaster Column No. 31 by Michael McNeil SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 308 1863 Muster rolls for the 61st Tennessee Infantry indicated that Day was absent without leave from January to April. The National Archives files for Officers contain 8 documents for John E. Day, none of which exhibit a signature. This file consists solely of transcriptions (summary cards) of Union prisoner records. John E. Day is listed as a Captain and Enrolling Officer without any description of his unit. The files for Day in Officers and the 61st Tennessee Infantry both indicate that he was arrested in Claiborne County, Tennessee, on December 8th or 9th, transferred to Louisville, Kentucky, and received at Camp Chase, Ohio on January 18th, 1864. He was also described as 44 years old, 5 feet 6 inches in height, with a dark complexion, blue eyes, and dark hair. His date of arrest in December suggests that he could have endorsed the Treasury note earlier in June. A website for the 61st Tennessee Infantry states that the regiment was defending Vicksburg during its fall on July 4th, 1863. The men were paroled and the circumstances of Day’s capture in Tennessee in December are not known. Here is the website: tngenweb.org/civilwar/61st-tennessee- infantry-regiment/ 1864 On March 11th John E. Day sent a letter as a prisoner of war in Louisville, Kentucky to the Office of the Commissary General of Prisoners in Washington, D.C. He applied for a discharge as a prisoner and his request was denied. 1865 Day was transferred on March 26th to Point Lookout, Maryland. On April 8th, just a day before Gen’l Robert E. Lee’s surrender at Appomattox, Virginia, Day wrote this letter to Maj. Brady, Provost Marshall of Prisoners: Sir, Is there any chance for a prisoner to take the amnesty oath here, & return home, or to some of the Northern states. I was an applicant for the oath at Camp “Chase” more than 12 months. I had 3 or 4 good petitions sent to Washington for my release one of them sent by Hon. Horace Maynard. I got out of heart of being released and started on exchange just to get out of prison, I determine to go home. My family lives in the U. S. lines, in Tennessee but I was going home and then apply for the oath, and ask for mercy under Gen. Grant’s order. I would like to see you on the subject, or hear from you. Very respect, John E. Day This letter was found in the Miscellaneous file, which on rare occasion will yield something of interest. The signature on this letter is a good match to the endorsement on the Treasury note. And with that piece of evidence we have a positive identification for 1st Lt. John E. Day. The lack of a statement of issue or title in the endorsement is unexplained. Capt. John E. Day does not appear in Wyllie’s List of Confederate Officers, suggesting that his commission as an officer was never confirmed. This note may not have been issued by Day but endorsed, much as we would endorse a check today. Wendell Wolka notes that “Saulsbury, TN served as an important rally point for Confederate troops traveling to join their units in Corinth, MS after the fall of Memphis in 1862 and would seem to be an appropriate place of issue in Day’s role as an enrolling officer.” The file for the 61st Tennessee Infantry noted that 1st Lt. Day signed an Oath of Allegiance to the Union at Fort Delaware on June 10th. The new place name of Saulsbury, (Tennessee) adds greatly to the value of this new discovery, and it will appear in the Heritage Long Beach Signature Auction in September. Saulsbury, Tennessee, today with a population of 81, is the least- populated incorporated municipality in Tennessee. ◘ Carpe diem Endorsement of J(ohn) E. Day, June 30/ 63, Saulsbury, (TN) image: Raiden Honaker with Heritage Auctions SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 309 Lyn Knight Currency Auct ions If you are buying notes... You’ll find a spectacular selection of rare and unusual currency offered for sale in each and every auction presented by Lyn Knight Currency Auctions. Our auctions are conducted throughout the year on a quarterly basis and each auction is supported by a beautiful “grand format” catalog, featuring lavish descriptions and high quality photography of the lots. Annual Catalog Subscription (4 catalogs) $50 Call today to order your subscription! 800-243-5211 If you are selling notes... Lyn Knight Currency Auctions has handled virtually every great United States currency rarity. We can sell all of your notes! Colonial Currency... Obsolete Currency... Fractional Currency... Encased Postage... Confederate Currency... United States Large and Small Size Currency... National Bank Notes... Error Notes... Military Payment Certificates (MPC)... as well as Canadian Bank Notes and scarce Foreign Bank Notes. We offer: Great Commission Rates Cash Advances Expert Cataloging Beautiful Catalogs Call or send your notes today! If your collection warrants, we will be happy to travel to your location and review your notes. 800-243-5211 Mail notes to: Lyn Knight Currency Auctions P.O. Box 7364, Overland Park, KS 66207-0364 We strongly recommend that you send your material via USPS Registered Mail insured for its full value. Prior to mailing material, please make a complete listing, including photocopies of the note(s), for your records. We will acknowledge receipt of your material upon its arrival. If you have a question about currency, call Lyn Knight. He looks forward to assisting you. 800-243-5211 - 913-338-3779 - Fax 913-338-4754 Email: lyn@lynknight.com - support@lynknight.c om Whether you’re buying or selling, visit our website: www.lynknight.com Fr. 379a $1,000 1890 T.N. Grand Watermelon Sold for $1,092,500 Fr. 183c $500 1863 L.T. Sold for $621,000 Fr. 328 $50 1880 S.C. Sold for $287,500 Lyn Knight Currency Auctions Deal with the Leading Auction Company in United States Currency Robert Calderman Extraordinary Vinson Red Seal Mule! Uncirculated 637 mules are blazing trophy notes, the ultimate caviar for truly dedicated small size $5 Lincoln aficionados. It should be blatantly obvious at this point that they are a significant favorite of mine since $5 mules appear so frequently in this column. Over the past six years a number of significant specialized small size collections have come to market making these treasures appear so often that you might begin to think they are common place notes! This is very far from reality as these recent occurrences mark an incredible once in a lifetime opportunity as some of the rarest specimens have changed hands all in a very short time within the realm of major public auction. So often is the case that the most coveted material trades secretly via private treaty between incognito buyers and sellers. In these instances, virtually no one knows where or when the rarest of the rare actually transfer ownership when hush hush trades are made behind closed doors. Fortunately for us, a treasure trove of mules have crossed the auction block for all eyes to see! What’s more are some of the incredible deals that have been had by stealthy eagle eyed collectors! When nearly half a dozen major small size collections are released in as many years, supply and demand will eventually hit the preverbal brick wall. An intersection of two roads meets abruptly and at a swift ninety miles an hour! What the heck are we talking about? If roughly six major collections come to market all within six years we have a major dilemma. Not only does this require the requisite number of buyers to absorb all of these epic notes at levels that are deserving of the material, we also need at least two or three of these buyers to be willing to dive in head first and actually become the legendary collectors they are replacing! Without a new power house or two stepping up to the plate, the loss of the preceding half dozen major collectors that are no longer active SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 311 participants can consequently stagnate the market virtually instantly. This is not an overwhelming death blow to the hobby or any specific category when large quantities of material change hands in rapid succession. It is simply the nature of the hobby when a generational transition, for lack of a better term, takes place. What can get lost in the mix is the material itself. Many of the notes will shine brightly at auction and new record sales prices will be achieved. However, inevitably a small handful of ultimate rarities and top pop registry grade treasures will sell at bargain prices and create a bit of confusion in the eyes of many unseasoned collectors. “Oh that material must not be that special, look at this note here, it only sold for $X”. As time progresses and unique rarities enter new collections the victor and their spoils may very well stay hidden, notes may become buried within their new collecting home, not to see the light of day again for potentially decades! Only then, once the dust has settled do collectors begin to realize the blunder of missing that one opportunity to land their dream note! So why are we spending all of this time harping on the subject? What you missed, how you missed it, and the resulting bargains of a lifetime? Because it makes for a very compelling story of course… ha! It happens so often that people say, “Well what is this note worth?” and the typical mind numbing answer then follows, “Well what did the last one sell for?” When it comes to specialized varieties that are unique or can be counted on just one hand, the buyer at auction may have been willing to pay five times what the note actually sold for; there was just no one else willing to continue the fight on that given day! As is so often true, it is the under bidder who is actually setting the price of the material at auction. All of this information and pretense are presented to help you view more clearly the gravity of the note featured in this installment. PMG has graded a total of 181 uncirculated 637 mule notes across all three types: Federal Reserve Notes (21), Legal Tender Notes (11), and Silver Certificates (149).This minuscule number includes all blocks and stars and is a very underwhelming sum when considering the 7.18M notes that were printed featuring the legendary back plate serial number. You read it correctly, only eleven red seal LT’s have reached the minimum grade achieving uncirculated condition, making them by far the toughest type to locate a CU 637 example for your collection. The break down for legal tender 637 mules in New condition is as follows: 1928C (1), 1928D (1), and 1928E (9). That is it, all she wrote… good luck to you if your ultimate goal is completing a set of red seal 637’s in CU, you have your work cut out for you. The short lived Julian-Vinson 1928D $5 legal Tender series had roughly 9.3M notes produced, a significantly low number for the type! PMG has graded a total of twenty individual 637 mules for the 1928D series and only seven of these reaching XF or better. There are four examples graded AU58, just one of these with EPQ. Why is all this data so important? Are your eyes now glazed over, drool quickly pooling onto your copy of Paper Money? Hopefully you are still at least halfway coherent. Back in January 2020 as part of the Gerald Glasser collection, Heritage Auctions sold the sole 58EPQ example, the finest known specimen at the time, for a staggering $4,320! This significantly SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 312 broke the record for any 637 in Choice About Uncirculated condition of any series and type at auction. So now we fast forward, just three short years later as the first ever true uncirculated 1928D mule $5 legal tender example appears, this time as a PMG 63EPQ! What would you expect this ultimate trophy mule note sold for at auction? Two, Three, Four, even Five times what the AU 58EPQ previously realized at auction?? Shockingly the 63EPQ sold for the unfathomable sum of $3,360. Nearly one thousand dollars less for a unique (Pop 1/0) CCU note vs. an AU!!! Wow, someone really made out like a bandit that day. Had this amazing note appeared just 3-5 years ago it likely would have nearly broken the five- figure mark, proving once again that sometimes timing really is everything in this hobby. Do you have a great Cherry Pick story that you’d like to share? Your note might be featured here in a future article and you can remain anonymous if desired! Email scans of your note with a brief description of what you paid and where it was found to: gacoins@earthlink.net Recommended reading: The Enduring Allure of $5 Micro Back Plates 629 and 637 by Peter Huntoon Paper Money *Sep/Oct 2015 * Whole No. 299 SPMC.org * Paper Money * July/Aug 2023 * Whole No. 346 313 OUR MEMBERS SPECIALIZE IN LARGE SIZE TYPE NOTES They also specialize in National Currency, Small Size Currency, Obsolete Currency, Colonial and Continental Currency, Fractionals, Error Notes, MPCs, Confederate Currency, Encased Postage, Stocks and Bonds, Autographs and Documents, World Paper Money . . . and numerous other areas. THE PROFESSIONAL CURRENCY DEALERS ASSOCIATION is the leading organization of Dealers in Currency, Stocks and Bonds, Fiscal Documents and related paper items. PCDA To be assured of knowledgeable, professional, and ethical dealings when buying or selling currency, look for dealers who proudly display the PCDA emblem. For further information, please contact: The Professional Currency Dealers Association PCDA • Holds its annual National Currency Convention in conjunction with the Central States Numis- matic Society’s Anniversary Convention. Please visit our Web Site pcda.com for dates and location. • Encourages public awareness and education regarding the hobby of Paper Money Collecting. • Sponsors the John Hickman National Currency Exhibit Award each year, as well as Paper Money classes and scholarships at the A.N.A.’s Summer Seminar series. • Publishes several “How to Collect” booklets regarding currency and related paper items. Availability of these booklets can be found on our Web Site. • Is a proud supporter of the Society of Paper Money Collectors. Or Visit Our Web Site At: www.pcda.com Susan Bremer – Secretary 16 Regents Park • Bedford, TX 76022 (214) 409-1830 • email: susanb@ha.com Paul R. Minshull #16591. BP 20%; see HA.com 71677 DALLAS  |  NEW YORK  |  BEVERLY HILLS  |  CHICAGO  |  PALM BEACH LONDON  |  PARIS  |  GENEVA  |  BRUSSELS  |  AMSTERDAM  |  HONG KONG Always Accepting Quality Consignments in 50+ Categories Immediate Cash Advances Available 1.6 Million+ Online Bidder-Members U.S. CURRENCY SIGNATURE® AUCTION Long Beach – Dallas | September 13-15 Highlights From the Thomas Collup Collection Offered in Our Upcoming Official Long Beach Auction Deadline July 24 For a free appraisal, or to consign to an upcoming auction, contact a Heritage Expert today. 800-872-6467, Ext. 1001 or Currency@HA.com CH# 2344 The La Crosse NB Fr. 391 $2 1875 PMG Gem Uncirculated 65 EPQ Fr. 302 $10 1908 Silver Certificate PMG Gem Uncirculated 66 EPQ Fr. 122 $10 1901 Legal Tender PMG Superb Gem Unc 67 EPQ Fr. 96 $10 1869 Legal Tender PMG Gem Uncirculated 66 EPQ Fr. 123 $10 1923 Legal Tender PMG Gem Uncirculated 66 EPQ Fr. 1219e $1,000 1907 Gold Certificate PMG Very Fine 30