Paper Money Vol. LVII, No. 1, Whole No. 313 www.SPMC.org January/February 2018 Official Journal of the Society of Paper Money Collectors Eric Pfeiffer Newman 1911-2017 Christine Karstedt LM #5492 John M. Pack LM # 5736 Peter A. Treglia LM #1195608 Christine Karstedt John M. Pack Peter A. Treglia 1231 E. Dyer Road, Suite 100, Santa Ana, CA 92705 • 949.253.0916 123 West 57th Street, New York, NY 10019 • 212.582.2580 Info@StacksBowers.com • StacksBowers.com California • New York • New Hampshire • Hong Kong • Paris SBG PM JRA_Annouce_171212 America’s Oldest and Most Accomplished Rare Coin Auctioneer 800.566.2580 East Coast Offi ce • 800.458.4646 West Coast Offi ce Stack’s Bowers Galleries Presents e Joel R. Anderson Collection of United States Paper Money to be off ered beginning with our Offi cial Auction of the Whitman Coin & Collectibles Expo March 21-23, 2018 With great pleasure, Stack’s Bowers Galleries brings to market e Joel R. Anderson Collection of United States paper money, the largest, nest, and most complete collection of Large Size United States paper money types in existence today. It is rivaled only by great collections of generations ago that have long since been dispersed, including those of Albert Grinnell and Amon Carter, Jr. Mr. Anderson had a goal to acquire the nest known for the seal type and amassed a collection that will most likely never be duplicated. Stack’s Bowers Galleries will be preparing a series of special catalogs to showcase the collection, starting with their March 2018 o cial auction of the Whitman Coin & Collectibles Expo in Baltimore. Highlights will be on display at the upcoming Florida United Numismatists convention in January, the Long Beach Convention in February, and other venues. e collection of approximately 240 Large Size (pre-1928) currency notes (certi ed by PCGS Currency) consists of Demand Notes, Legal Tender Notes, Compound Interest Notes, Interest Bearing Notes, Refunding Certi cates, Silver Certi cates, Treasury Notes, National Bank Notes, National Gold Bank Notes, Federal Reserve Bank Notes, Federal Reserve Notes, and Gold Certi cates. ere are notes in this collection that are unique in private hands, as well as those that are absolutely unique, with no examples known in government institutions! Virtually every note in this collection can be considered a highlight. Whether it is the rarest or the nest known, every note o ers some type of WOW factor. For more information on the collection please contact Christine Karstedt at ckarstedt@ stacksbowers.com or Peter Treglia at ptreglia@stacksbowers.com. Terms and Conditions PAPER MONEY (USPS 00-3162) is published every other month beginning in January by the Society of Paper Money Collectors (SPMC), 711 Signal Mt. Rd #197, Chattanooga, TN 37405. Periodical postage is paid at Hanover, PA. Postmaster send address changes to Secretary Jeff Brueggeman, 711 Signal Mtn. Rd, #197, Chattanooga, TN 37405. ©Society of Paper Money Collectors, Inc. 2014. 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. PAPER MONEY Official Bimonthly Publication of The Society of Paper Money Collectors, Inc. Vol. LVII, No. 1 Whole No. 313 January/February 2018 ISSN 0031-1162 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. Include an SASE if acknowledgement is desired. 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 payable in advance. All ads are accepted 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 Space 1 Time 3 Times 6 Times Fullcolor covers $1500 $2600 $4900 B&W covers 500 1400 2500 Fullpagecolor 500 1500 3000 Full page B&W 360 1000 1800 Halfpage B&W 180 500 900 Quarter page B&W 90 250 450 Eighthpage B&W 45 125 225 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, front. Safety margin: type and other non-bleed content must clear trim by minimum 1/2” Advertising copy 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 upon prompt notification. Benny Bolin, Editor Editor Email—smcbb@sbcglobal.net Visit the SPMC website—www.SPMC.org Eric Pfeiffer Newman ................................................................ 4 The Dies that Fathered 1872 & 1882 Nationals Peter Huntoon ................................................................ ...7 “Star Spangled” Merchant Scrip Ron Spieker .................................................................... 14 Colony of North Carolina 1£ Note David Lok ....................................................................................21 The Adoue Banking Family of Dallas, TX Frank Clark ..................................................................... .25 U. S. Serial No. 1,000,000,000 Notes Jamie Yakes & Peter Huntoon ................................................. .27 Uncoupled Joe Boling & Fred Schwan .....................................31 New Members ........................................................................... 37 Columbia, Tennessee’s First National Bank John Abernathy .........................................................................39 Father of the Adams Bank Josh Colon ................................................................................. 47 A Detailed Survey of New FRNs Carlson Chambliss ................................................................... 49 SPMC Obsolete Database Update ........................................ .57 Small Notes—Cleveland Cashier’s Missing Note .................... 61 Interesting Mining Notes—David Schenkman ....................... 63 Obsolete Corner--Robert Gill .................................................. 65 Chump Change--Loren Gatch ................................................. 60 2017 Paper Money Index. ....................................................... 69 ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 1 Society of Paper Money Collectors Officers and Appointees ELECTED OFFICERS: PRESIDENT--Shawn Hewitt, P.O. Box 580731, Minneapolis, MN 55458-0731 VICE-PRESIDENT--Robert Vandevender II, P.O. Box 2233, Palm City, FL 34991 SECRETARY--Jeff Brueggeman, 711 Signal Mtn., Rd. #197, Chattanooga, TN 37405 TREASURER --Bob Moon, 104 Chipping Court, Greenwood, SC 29649 BOARD OF GOVERNORS: Mark B. Anderson, 115 Congress St., Brooklyn, NY 11201 Gary J. Dobbins, 10308 Vistadale Dr., Dallas, TX 75238 Pierre Fricke, Box 1094, Sudbury, MA 01776 Loren Gatch 2701 Walnut St., Norman, OK 73072 Joshua T. Herbstman, Box 351759, Palm Coast, FL 32135 Steve Jennings, 214 W. Main, Freeport, IL 61032 J. Fred Maples, 7517 Oyster Bay Way, Montgomery Village, MD 20886 Michael B. Scacci, 216-10th Ave., Fort Dodge, IA 50501-2425 Wendell A. Wolka, P.O. Box 5439, Sun City Ctr., FL 33571 APPOINTEES: PUBLISHER-EDITOR--Benny Bolin, 5510 Springhill Estates Dr. Allen, TX 75002 EDITOR EMERITUS--Fred Reed, III ADVERTISING MANAGER--Wendell A. Wolka, Box 5439 Sun City Center, FL 33571 LEGAL COUNSEL--Robert J. Galiette, 3 Teal Ln.,ssex, CT 06426 LIBRARIAN--Jeff Brueggeman, 711 Signal Mountain Rd. # 197, Chattanooga, TN 37405 MEMBERSHIP DIRECTOR--Frank Clark, P.O. Box 117060, Carrollton, TX, 75011-7060 IMMEDIATE PAST PRESIDENT--Pierre Fricke WISMER BOOK PROJECT COORDINATOR--Pierre Fricke, Box 1094, Sudbury, MA 01776 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 i s 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. Their application must be signed by a parent or guardian. 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 S o c i e t y 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. Pierre Fricke—Buying and Selling! 1861‐1869 Large Type, Confederate and Obsolete Money! P.O. Box 1094, Sudbury, MA 01776 ; pierrefricke@buyvintagemoney.com; www.buyvintagemoney.com And many more CSA, Union and Obsolete Bank Notes for sale ranging from $10 to five figures ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 2 Contact Nina@Kagins.com or call 888.8Kagins to speak directly to Donald Kagin, Ph.D. for a FREE Apraisal! Consign Your Currency with The Offi cial Aucti oneer of the ANA Nati onal Money ShowsTM For more information about consigning your currency to Kagin’s Auction for the ANA National Money Show contact us at : kagins.com, by phone: 888-852-4467 or e-mail: Nina@kagins.com. March 8-10, 2018 Irving Convention Center Dallas, TX (Irving, TX) Experience the Kagin’s Di erence: • Free one year online membership in SPMC with each purchase of currency • 0% Seller’s fee for $25,000 consignments and $1,500 per lot • 1% credit back on all purchases through the KAGIN’S AUCTION LOYALTY PROGRAM TM • 99% and 100% sell through for the last two auctions • Innovative marketing and exposure outside as well as inside the coin industry as we did by partnering with Amazon.com for the Saddle Ridge Hoard Treasure • Free ANA and club memberships and educational reference books Currency already consigned: – The largest collection of Federal Reserve Notes and Federal Reserve Bank Notes in decades – Colonial and Confederate Currency – Small Size and Error banknotes – National Bank Notes – Western Assay Receipts – Hundreds of lots of U.S. Large Size Currency – Fractional currency – The largest and fi nest collection of Encased Postage Stamps 99% Sell Through RECORD PRICES REALIZ ED! 100% Sell Through RECORD PRICES REALIZ ED! Kagin’s only produces two auctions a year so your consignment will receive up to four months of innovative and unprecedented promotion. Boutique style sessions limited to 500 lots allow us to highlight your collection and tell your numismatic journey, or as a buyer, to focus in on just the currency you need. Kagins-PM-Ad-Mar2018-NMSCons-10-14-17.indd 1 10/15/17 11:55 PM Eric Pfeiffer Newman 1911 – 2017 Noted numismatist Eric Pfeiffer Newman passed away at his St. Louis home on November 15, 2017 at the age of 106. Mr. Newman was an 80+ year member of the ANA and a founder of the SPMC. He was a consummate numismatist and authority on almost every aspect from colonial coins and paper money, to federal issues, books and general history. His interest in numismatics began at the age of seven when his grandfather gave him an 1859 Indian Head cent. He accomplished something no one else could do in the past or present—owning all five 1913 Liberty Nickels. He was born to Samuel Elijah and Rose (Pfeiffer) Newman in St. Louis, Missouri and earned a bachelor of science degree from the Massachusetts Institute of Technology (MIT) in 1932 and a Juris Doctor from Washington University in St. Louis in 1935 and practiced law until 1943. He was hired by Edison Brothers Stores, rising to executive vice president in 1968, before retiring in 1987. While attending MIT, Newman became acquainted with E. H. R. Green, himself a coin collector. Newman and other students were given the use of Green's private radio station at Round Hill, Massachusetts, to follow Rear Admiral Richard E. Byrd's first Antarctic expedition (1928-1930). After Green died in 1936, Newman raised $600 from his family and purchased some currency from the estate. After he told Burdette Johnson about it, Johnson put up the money to buy most of Green's collection, including the only five known 1913 Liberty Head nickels and Newman's favorite coin, a unique 1792 pattern in gold that he believed was owned by George Washington. He married Evelyn Edison on November 29, 1939. They were very devoted to each other and had two children, Linda N. Schapiro and Andrew E. Newman. Eric and Evelyn supported a variety of philanthropic efforts including medical ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 4 research, academia, and St. Louis cultural affairs. In 2003, the Newman’s donated money to Washington University in St. Louis to establish the Newman Money Museum which opened in 2006 and displays part of Newman's collection on a rotating basis. They also established the Eric P. Newman Education Center at the Washington University School of Medicine and established numerous professorships and scholarships. Eric and Evelyn were together 85 years until she died on September 1, 2015 at the age of 95. Newman wrote over 13 numismatic books. He is known for his pioneering study The Early Paper Money of America (1967), which remains the standard work on the subject and has entered its fifth edition. Other written works include The 1776 Continental Currency Coinage: Varieties of the Fugio Cent (1952), The Fantastic 1804 Dollar (1962) and U.S. Coin Scales and Counterfeit Coin Detectors (2000). Mr. Newman was awarded many awards from various clubs over his many years. He won the ANA’s Heath Literary Award an unprecedented sixteen times between 1955 and 2015. He also won the ANA Medal of Merit in 1964, Farran Zerbe Award in 1969, Numismatist of the year in 1996, Wayte and Olga Raymond Memorial Award, and was inducted into the ANA Hall-of-Fame in 1986. He was also the recipient of the ANS’ Archer Milton Huntington Award, the NLG Clemy, Burnett Anderson Memorial Award for Excellence in Numismatic Writing, the Rittenhouse Society Gold Medal and the Medal of the Royal Numismatic Society. Mr. Newman was a founder of the SPMC and held membership number 290. He was SPMC Vice- President 1975-1979, served on the board of governors in 1962 and 1973-1976. He received the Nathan Gold award in 1968 and was bestowed Honorary Life Member #13 upon his induction into the SPMC inaugural Hall-of-Fame class in 2014. The numismatic hobby was made richer by Mr. Newman’s efforts and activities and he will be sorely missed by all, but we are all richer due to his efforts. A Fond Farewell to Eric Newman by Pierre Fricke “…The secret to retirement is – don’t retire!” a 98-year-old Eric Newman chided me (48 years old at the time) leaning over to me and grabbing my arm in a discussion at his library at the Eric Newman Money Museum in St Louis, MO while we were eating lunch after a review of his Confederate States of America paper money including counterfeits made during the War. Fred Reed was with me and together we were researching our book, The History of Collecting Confederate States of America Paper Money – 1865-1945, published in 2012. We had been discussing when Eric bought his CSA notes, from whom and how much he paid if he could remember. He said of his Montgomery notes, “I don’t remember who I bought them from… it was in the 1930s”. Wow! Been quite a while since I talked with someone who could have bought something in the 1930s! They turned out to be Colonel Green notes and were sold with his collection this decade. A discussion on price trends lead up to his statement about retirement. He stated, “Pierre, you seem a lot more concerned about prices than I am”. My response, “Well Eric, you bought these things for 10 cents, 50 cents, $5 or $100 and I am paying $10, $100, $500, or $20,000! We don’t have pensions today and many industries are not particularly friendly to its senior citizens. So, I have to plan for retirement and fortunately have numismatics…”. He responded with the opening statement and added, “... Yes, you do have numismatics and that will be with you the rest of your life. As long as you maintain your health and study, you become more knowledgeable and valuable to the hobby”. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 5 A year later, I visited him at his home built in 1920 near his museum in St. Louis. This time we discussed Fugio coppers at length and he brought out his unusual patterns and trial pieces which were fascinating to see. I bought a piece or two to show him as well. We discussed his book, United States Fugio Copper Coinage of 1787 (see figures) and I asked him to sign my copy which I treasure. Fugio coppers were one of his favorite coins and it showed in the discussion. The intrigue, corruption, bribery and theft associated with this production of the Fugio coppers along with being the first authorized coin of the United States fascinated him. Eric was a founding member and on the original board of governors of the Society of Paper Money Collectors as seen in the 1962 first edition of Paper Money magazine. He also was an Honorary Life Member of the Society. Eric was part of the illustrious inaugural class of 2014 into the SPMC Hall of Fame based on his many research and educational contributions to the hobby. I want to thank Eric one more time for his help, guidance and wisdom and for his many contributions to the hobby. I’m certain it was a fascinating reunion of the old-time numismatists when Eric went to meet them again this past November. I miss him and look forward to seeing him at another of those numismatic reunions in the sky later this century! Tributes to Mr. Newman I first met Eric in the early 1950's at the Missouri Numismatic Society meeting. We both shared the love of numismatics, especially in the St. Louis area. Over the years, I enjoyed visiting with him both at his home and mine and later at the museum. One of the enjoyable experiences we had was when he acquired an antique gold coin changer. Because of some broken pieces, it would not function. Being a mechanic and welder, I was able to repair the changer and clean out the sand that had accumulated in it. Eric explained that the changer had been used in an amusement park near the English seashore. We had a great time running coins through it to observe the operation. It was then that he showed me his machine shop in the basement. He had a degree in engineering from MIT, as well as a law degree from Washington University. We discussed Missouri Bank history and he invited me to join him in writing a book on the subject. Over the years, we acquired and shared information on the subject. I spoke to him several years ago about completing the book project, but he was involved in updating his Early American Paper Money book and he advised me to finish the book and publish it myself. Over the years, I learned a great deal from Eric and enjoyed his company. One of his favorite sayings after completing a trade was "I know you will enjoy owning this" and on several occasions he would say "if I die" rather than "when I die". I guess the time arrived when he decided to do so.......Ronald L. Horstman I met with Eric only one time, for a six hour stretch at his home in St. Louis. He responded to a public appeal I made for assistance in writing a book on Minnesota obsoletes, inviting us to visit him and view his collection. What I appreciated most about Eric was his willingness to generously share his time, knowledge and resources. That quality defines what it means to be a true student of the hobby. It is my wish that all collectors take his example to heart. Shawn Hewitt I have never had the opportunity to meet Mr. Newman, but I do have the privilege of owning some Obsoletes out of his collection. By watching what he has done for the world of paper money and coins, and reading the book written about his life, its easy to see what an important asset he has been to others. I hope someday to be able to sit down with him, and listen to the stories he has about his experiences in our fabulous hobby. Thank you so much, Mr. Newman. Robert Gill. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 6 The Dies that Fathered BEP $10 and $20 Series of 1875 and 1882 Nationals Two full-face dies prepared by the American Bank Note Company for the Original Series were the source for all the $10 and $20 Series of 1875 and 1882 plates made at the Bureau of Engraving and Printing. It is the objective of this article to explain how this occurred. Like genes passed to future generations, unambiguous telltale vestigial markings that originated on the original ABNC dies were passed down to the BEP plates. We will necessarily delve into the technical details of plate making in order to follow the forensic evidence. Let’s dispel a commonly held misconception at the outset. The plates used to print the Series of 1882 notes were not altered Original/1875 plates. Rather all were entirely new plates made at the Bureau of Engraving and Printing. Figure 1. All the $10 subjects on Original, 1875 and 1882 national bank note plates made at the Bureau of Engraving and Printing were reproduced from American Bank Note Company Original Series full-face die 1925, a print of which is illustrated here. We will trace the loops from the Treasury signatures that extend upward into “Deposited with the U. S. Treasurer at Washington” to future generations. Photo courtesy of Bruce Hagen. Origins The engravers and siderographers at the American Bank Note Company made full-face dies for the $10 and $20 Original Series nationals, prints of which are illustrated here as Figures 1 and 2. These were generic dies, generic meaning that they carried all the design elements common to plates regardless of bank. Notice on the $10 that the layout included the partial bank title “The First National Bank of.” This was in keeping with Secretary of the Treasury Salmon P. Chase’s original concept that all national banks in a given town or city would be numbered in the order in which they were organized starting with “First.” Obviously, the designers at ABNC weren’t thinking about a “Second” when the partial title block was laid out! This oversight was corrected when they made the $20 die. At the time, they also didn’t contemplate that the Treasury officials would change, so Chittenden’s and Spinner’s signatures were superimposed on the master dies as well. This quirk is the smoking gun in the analysis that follows. The Paper Column Peter Huntoon ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 8 Figure 2. All the $20 subjects on Series of 1875 and 1882 national bank note plates made at the Bureau of Engraving and Printing were reproduced from American Bank Note Company Original Series full-face die 1940. As with the $10, the loops from the Treasury signatures extend upward into “Deposited with the U. S. Treasurer at Washington.” Photo courtesy of Bruce Hagen. Notice, as expected, that the generic items in the title blocks on the $10 and $20 Series of 1875 proofs for The First National Bank of Philadelphia, charter 1, are identical to those on Figures 1 and 2 except for the Treasury signatures, which were updated when the plates were altered from their Original Series to Series of 1875 form at the Bureau of Engraving and Printing. Dies, Rolls and Plates The process of making printing plate begins with numerous component dies, which were flat soft steel blanks with a polished surface into which were engraved individually the elements such as vignettes, counters, border segments, lettering, manufacturer imprints, etc., that were later brought together to create a master die. Dies are intaglio meaning that the image to be printed is comprised of recesses such as groves cut into the surface that hold the ink. Many of the dies, such as the vignettes and most letting, were engraved by engravers. Other elements were engraved using machines, such as border elements that were produced on geometric lathes. Once completed, the component dies were hardened by heating and quenching in brine and/or oil. Once a die was hardened, rolls were made from them, which were used to transfer the images to other dies or plates. The process involved rolling a soft steel cylinder over each component die under loads sufficient to cause the steel on the surface of the roll to flow into the recesses engraved on the die. This was carried out by siderographers on machines called transfer presses. The image picked up on a roll stood in relief on its surface and was, in fact, a mold of the image on the die. The roll was then hardened by heating Figure 3. Title blocks from the earliest plates made from ABNC $10 die 1925 and $20 die 1940 that exhibit the same generic title block items as found on Figures 1 and 2. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 9 and quenching. Individual rolls could contain images from one or more dies around their circumference. Once dies and rolls were hardened, the images on them could not be altered. A full-face generic master die was constructed on a transfer press wherein the component rolls lifted from the component dies were used to lay in the elements onto the surface of the master. That process was called a transfer. Notice that the vast percentage of the work on the master consisted of transfers. The only involvement of an engraver at this stage was to do touch up work. Figure 4. Jack Ryan, Bureau of Engraving and Printing siderographer, using a transfer press to lay in an image of a note onto a steel master plate from a roll that contains the image. The press exerted loads of tons per square inch through the roll. BEP photo. The obvious advantage of generic master dies was that rolls lifted from them could be used to transfer all the common elements to a printing plate in one transfer for each subject. Component rolls with bank-specific elements such as lettering in the title blocks, plate letters, Treasury signatures and charter numbers on Series of 1882 plates were then laid in separately to complete the plate. Our story gets very interesting when we examine how $10 and $20 Original Series ABNC full-face dies 1925 and 1940 were handled once they were turned over the BEP in 1875. By then the partial bank titles and Chittenden and Spinner signatures were obsolete so they had to be removed. But the dies were hardened so they couldn’t be altered. Instead, the job was accomplished by altering the rolls lifted from the dies before the rolls were hardened. The intaglio images cut into the dies stood in relief on the rolls so all that the craftsman had to do was grind or burnish the unwanted obsolete items off the rolls and polish the resulting surface. Removing the partial bank titles was easy because they didn’t overlap other design elements. However, removing the Treasury signatures was difficult because the loops in the two signatures arched upward into the lettering comprising “Deposited with the U. S. Treasurer at Washington.” Early on they simply removed the signatures from the space below the lettering, thereby leaving vestiges of the loops within the letters. See Figure 5. The vestiges made it to both the Series of 1875 and 1882 plates yielding an unambiguous record of what transpired. The rolls used for the Series of 1882 were different from those prepared for the Series of 1875. Cutouts had to be made for the charter number on the Series of 1882 rolls. The cutouts were made by removing the unwanted parts of the borders from the rolls before they were hardened. Bureau personnel laid in a new Series of 1882 $20 master die in 1884 using a roll made from $20 ABNC die 1940. It was labeled BEP die 392 and was used in conjunction with $10 ABNC 1925 to make 10-10-10-20 Series of 1882 plates between 1884 and 1900. It was peculiar in that they left cutouts only for ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 10 Figure 7. Locations of the hidden stars on Series of 1882 plates made from $10 and $20 BEP dies 2988 and 2681. Plates bearing the stars began to be certified on April 16, 1900. the two charter numbers in the top border. The vestiges of Chittenden’s and Spinner’s signatures were nicely preserved on it as solid lines. As time went on Bureau craftsmen periodically had to make new rolls from the full-face masters for use in making their high-volume Series of 1882 plates. They got progressively better at removing the unwanted loops from the Chittenden-Spinner signatures from those rolls. The technique used was to simply remove the residual lines and leave blanks in their wake because the blank spaces were less visible. See Figure 6. They were carefully removing all the residual black lines from the loops by 1894 so the vestiges of the old Chittenden-Spinner signatures consisted entirely of tiny blank spaces. Work began on a new pair of full-face $10 and $20 Series of 1882 master dies in 1896. New BEP $20 die 2681 replaced BEP 392. It was begun May 22, 1896 and completed April 2, 1900. The image was from an old roll lifted from full-face ABNC die 1940. Full-face $10 BEP die 2988 was prepared as a companion to BEP 2681. Work on it began January 30, 1899 and was completed March 30, 1900. An engraver eliminated all vestiges of the Chittenden-Spinner signatures before dies 2681 and 2988 were hardened. In addition, hidden stars were added to the borders of each as shown on Figure 7 to distinguish subject made from them. No comparable new BEP $10 and $20 master dies were made for the Series of 1875, owing to waning demand. Consequently, rolls made from old ABNC dies 1925 and 1940 continued to be used to lay in the $10 and $20 subjects needed for Series of 1875 plates to the end of that series in 1902. Legacy All the $10 and $20 Series of 1875 plates made by the Bureau of Engraving and Printing were made from rolls lifted Figure 6. Detail whereon the red lines point to vestiges in the form of blanks where remnants of Chittenden’s and Spinner’s signatures were removed from rolls lifted from ABNC $10 die 1925 (top) and BEP $20 die 392 (bottom) that were used to make Series of 1882 plates beginning in March 1893. By then most of the residual lines were tooled away leaving blank spaces where the loops in the signatures used to exist. Their skill in removing the residual lines continued to improve as successive rolls were made. Figure 5. Detail whereon the red lines point to black vestiges in the form of fragments of both Chittenden’s and Spinner’s signatures on Series of 1875 plates reproduced from rolls lifted from ABNC $10 die 1925 (top) and $20 die 1940 (bottom). Compare the positions of the loops in the signatures on Figures 1 and 2 to the vestiges illustrated. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 11 Figure 8. Prints from BEP full-face Series of 1882 master dies $10 2988 and $20 2681 completed in March 1900. All vestiges of the Chittenden-Spinner signatures were removed from both. Rolls from the two were always paired to make Series of 1882 10-10-10-20 plates from April 1900 to the end of the series in 1922. All Series of 1882 10-10-10-10 plates were made from 2988. Photos courtesy of Bruce Hagen. respectively from ABNC Original Series dies 1925 and 1940. This spanned the years 1875 through 1902. All the subjects carry clear vestiges of Chittenden’s and Spinner’s signatures. The first 10-10-10-20 Series of 1882 plates were made from rolls lifted from ABNC dies 1925 and 1940. Both subjects on notes printed from them carry vestiges of Chittenden’s and Spinner’s Original Series signatures. The first of these plates was for The First National Bank of Washington, Iowa, charter 2656, certified July 14, 1882. The last was for The Calumet National Bank of South Chicago, charter 3102, certified January 18, 1884. The Series of 1882 $10 subjects made from 1884 to 1900 continued to be made from rolls lifted from ABNC 1925, and carry vestiges of the old signatures. However, as time went on the vestigial black lines on them where progressively replaced by blank spaces because BEP craftsmen became more skillful at removing the lines from the younger rolls. All the black lines were removed so only voids remained from 1894 until 1900. The Series of 1882 $20 subjects made from 1884 through 1900 were from BEP die 392 and, like the $10s made during that period, the vestigial lines progressively were replaced with voids as craftsmen more thoroughly removed them from successive rolls. The first Series of 1882 10-10-10-20 plates made from die 392 was for The Farmers National Bank of Kittanning, Pennsylvania, charter 3104, certified ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 12 January 23, 1884. The last was for The First National Bank of Dyersburg, Tennessee, charter 5263, certified April 18, 1900. When Series of 1882 full face $10 and $20 BEP dies 2988 and 2681 were placed in service in 1900, the vestigial lines were gone because engravers removed them completely from the dies before the dies were hardened. The first Series of 1882 10-10-10-20 plate made from $10 and $20 BEP dies 2988 and 2681 was certified April 14, 1900 for The First National Bank of Hudson, Wisconsin, charter 95, an extended bank. The first for a new bank was for The Riddell National Bank of Brazil, Indiana, charter 5267, certified April 20, 1900. Those rolls were used from then to the end of the series in 1902. The vestigial features discussed here are esoteric curiosities. Their primary importance is that they help us to understand how the BEP personnel used the American Bank Note Company dies turned over to them in 1875 to make their own Series of 1875 and 1882 plates. The vestigial Chittenden and Spinner loops probably require the services of a magnifying glass if you are to observe them. Of course, they are more easily observed on high grade notes than on worn and soiled notes! This article focused on the vestigial lines that were inherited from the ABNC Original Series dies to tell that story. Mentioned also were the hidden stars added to the new $10 and $20 Series of 1882 master dies that were put into service in 1900. Probably far more important to variety collectors are readily distinguished variations of the Battle of Lexington vignette on the $20s, of which there are three as shown on Figure 9. Variety 2 occurs on ABNC die 1940, variety 1 on BEP 392, and variety 3 on BEP 2988. However, variety 1 vignettes were reentered over 2s, and vice versa, on worn plates so you can’t unambiguously deduce with certainty the master die used to make a variety 1 or 2 plate based on its vignette (Huntoon, 2006). References Cited and Sources of Data Bureau of Engraving and Printing, 1875-1929, Certified proofs lifted from national bank note face plates: National Numismatic Collection, Smithsonian Institution, Washington, DC. Huntoon, Peter, May-Jun 2006, Varieties in the Battle of Lexington vignette on $20 national bank notes and hidden stars on Series of 1882 $10 and $20 notes: Paper Money, v. 45, p. 170, 172, 174, 176, 226-230. Figure 9. Varieties of the Battle of Lexington vignette as found on national bank notes. From left to right: variety 1 = no 75 above the foot of the wounded man, variety 2 = weak 75, and variety 3 = bold 75. The blue ovals contain details common to varieties 1 and 3. The items in the red ovals are as found on variety 2. The arrow points to the white spot in the shading behind the 2 that is pronounced on variety 2. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 13 “Star‐Spangled” Merchant Scrip by Ron Spieker Pre-Civil War merchant scrip from the District of Columbia (D.C.) is generally very scarce, so a recent trip to the National Numismatic Collection at the National Museum of American History made the rewarding find of two fascinating notes issued during the “hard times” financial panic of 1837. While these musical-themed merchant scrip notes are themselves quite unusual, the man behind the notes, Samuel Carusi, is perhaps even more intriguing given the story of how he came to the United States and how he and his family became musicians and citizens of some prominence. The first note for 6 ¼ cents is illustrated below. The note is about 6 inches x 2½ inches, uniface, engraved with no imprint and carrying a handwritten serial number 3 and dated August 1, 1837. The central vignette is a brief but recognizable musical excerpt from the Star-Spangled Banner. The text reads “I promise to pay the Bearer SIX and a QUARTER CENTS in notes current at the Banks of the District of Columbia, when presented at my music store in sums of FIVE DOLLARS.” The note is signed “Sam’l Carusi.” Figure 1--A 6 ¼ cent note dated August 1, 1837, bearing a musical excerpt from the Star-Spangled Banner. The National Numismatic Collection, National Museum of American History, Smithsonian Institution. This and a number of Washington D.C. merchant scrip notes issued from this “hard times” period of 1837 and held in the Smithsonian collection were described by the late Richard Doty, former senior numismatic curator at the collection, in a series of three articles in Coin World from early 1990. For the Carusi scrip, he noted that the curator of Graphic Arts at the museum, Dr. Elizabeth Harris, had speculated that it was very likely that that these notes were produced with engraving using a pewter plate.1 This rather specialized method of engraving had become common for musical scores in the nineteenth century having advantages both in cost and ease of use when compared with engraving on other metals, or compared to the use of typesetting. The peculiarities of musical scores challenged early printers with the precision needed to show parallel lines coupled with the need for the precise location of various combinations and types of musical notes.2 The second note is for 12½ cents and is illustrated below. The note is also about 6 inches x 2½ inches, uniface, engraved with no imprint and carrying a handwritten serial number 20 and dated August 1, 1837. The central vignette is a musical excerpt from Yankee Doodle Dandy. The text reads “I promise to pay the Bearer TWELVE and a HALF CENTS in notes current at the Banks of the District of Columbia, when presented at my music store in sums of FIVE DOLLARS.” The note is signed “Sam’l Carusi.” Figure 2--A 12 ½ cent note dated August 1, 1837, bearing a musical excerpt from Yankee Doodle Dandy. The National Numismatic Collection, National Museum of American History, Smithsonian Institution. In late 1821, Samuel Carusi and his father began operating a music store in a former residence on the south side of Pennsylvania Avenue in Washington D.C. between 10th and 11th streets, the current location of the headquarters of the Internal Revenue Service. In mid-1835 they relocated to the corner of 12th and Pennsylvania Avenue, a location adjacent to what is now the current Trump International Hotel. In 1839, Samuel left the District and moved to Baltimore, opening a store at No. 84 Market Street. The music store began as a family operation, with father Gaetano and brothers Lewis and Nathaniel also working at various times from these sites. Perhaps making a living from just music was difficult in these “hard times” since Samuel Carusi advertised frequently, describing himself variously as an Auction and Commission Merchant, a Professor of Music, or a dealer in fine musical instruments. In addition to items you would expect at a music store such as the sale ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 14 of sheet music and musical instruments, Samuel offered music and singing lessons, as well as a diverse set of products for sale including items such as perfumery and “fancy articles,” garden seeds, writing and drafting instruments. Following are a few sample ads. A Musical family Samuel Carusi was one of three musically- inclined brothers (Samuel, Nathanial and Lewis), who along with their father (Gaetano) became well known in the early District. In 1818, while still living in Philadelphia, Gaetano opened a music school in Alexandria, D.C. (now VA) where he and his sons could teach. In 1819, he opened music stores in Easton, Maryland and in 1819 opened a music store in Philadelphia, Pennsylvania--father and sons Samuel and Lewis were members of the Philadelphia Musical Fund Society. In 1820 the Carusi Family moved from Philadelphia to Washington D.C. and began making a name for themselves participating in various musical performances in the city.3 In addition to the Washington D.C. music store on Pennsylvania Avenue, the Carusi Family became well-known for opening and running “Carusi’s Saloon,” a popular and prominent facility that operated for some 40 years at the corner of 11th St NW and C Street (a location also occupied now by the Internal Revenue Service headquarters). In 1821, Gaetano saw an opportunity to purchase the burned-out remnants of a theater that had been destroyed the previous year and began constructing an assembly hall on the site. When near completion, the building was described in the Washington Gazette as for the “purpose of assemblies, concerts, and elegant and rational amusements generally – and for such occasions it certainly furnishes the most spacious and commodious rooms of any in the District.”4 While named the Washington Assembly Room, it was often referred to as Carusi’s Assembly Room or Carusi’s Saloon – with the term saloon having a more refined meaning similar to the French term “salon” rather than the more current usage referring to a tavern. Carusi’s Saloon became an important entertainment complex in the city, providing facilities for meetings, exhibitions, concerts, and frequent dances. This includes at least four Presidential inaugural balls: John Quincy Adams (1825), John Tyler (1841), James Polk (1845), and James Buchanan (1857). The city’s elite were often found at various events and concerts at the site which provided some of the best entertainment facilities in the city. In addition to operating the music store and the Assembly Hall, Gaetano and the three brothers were well known as instructors of music and dance, and as composers and publishers of music.5 Samuel arranged, composed and published over 200 works, including works for voice, piano and guitar.6 One such work is shown below. This is a published ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 15 music sheet with a march for General William Henry Harrison and was used in the presidential campaign of 1840. In the picture, General Harrison is standing before a log cabin greeting a wounded soldier. On close review of the score, you can find small figures of soldiers, bayonets and barrels included among the musical notation. Interestingly, one of Samuel Carusi’s published works was involved in an important early musical copyright infringement case, a case sometimes cited in modern litigation. The case involved a very popular 1838 poem, The Old Arm Chair, a poem that was set to music by no fewer than four publishers, including Samuel Carusi. While Carusi owned the copyright to the underlying music used in his arrangement, the author of the poem had previously sold the rights to the poem which had been used in another arrangement. During the trial, the jury heard testimony that, in addition to common wording, similarities in the underlying music to older songs raised important questions about what constituted originality. While the complaint asked for $2,000 in damages, the jury eventually found Carusi liable for only a nominal $200, $100 of which was due to the United States. At the request of the US Attorney for Maryland, President Polk later pardoned the $100 due the US.7 Figure 1—The Old Arm Chair by Eliza Cook. Publisher Samuel Carusi, Baltimore, 1842. Library of Congress. https://www.loc.gov/resource/sm1842.381990.0/sp=1. How the Carusi’s Came to America The story of how and why Samuel Carusi and family came to America is perhaps the most interesting part of this history. His musical career in the United States begins at age ten when he, his father, and his nine-year old brother Nathaniel, were recruited in Sicily by the Marine Corps to join their band, with the three of them enlisting (!!) in 1805. They then emigrated to the U.S., accompanied by his mother and infant brother Lewis. Following the 1798 Congressional Act which authorized the establishment of the Marine Corps including a Marine Corps band, the Commandant of the Corps, Lieutenant Colonel William Burrows apparently thought recruitment of some outside musicians would improve the newly formed band, with a focus on Italy due to the proximity to US forces operating in the Mediterranean at that time. So, in 1803 or 1804, he issued orders to Captain John Hall to begin actively recruiting some Italian musicians. At this time Captain Hall was about to leave for the Mediterranean for duties in the war with Tripoli.8 Based on recommendations received from a band leader attached to the King of Naples regiment located in Sicily, among the names considered was one Gaetano Carusi, a Sicilian musician of some repute. Gaetano first expressed little interest after initial enticements such as an offer of $12 per month salary were rejected as inadequate. Captain Hall persisted with various offers and for nearly a year Figure 4—General Harrison’s March & Quick Step, Published by Samuel Carusi, Baltimore, 1840. Library of Congress Prints and Photographs Division, Washington D.C. 20540. http://hdl.loc.gov/loc.pnp/cph.3g04551. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 16 these offers were rebuffed. Finally, on receiving a personal visit from the Captain, a deal was struck. This included a monthly ration to Gaetano’s wife, salaries for his children, and the lure of a better life in the new country. Upon the agreement, two of his sons, Samuel and Nathaniel, ages ten and nine, were enlisted in the Marine Corps on February 17, 1805, as were a number of other Italian musicians. Eventually some eighteen musicians were recruited with a total of thirty people, including wives and children, brought to the U.S.9 Gaetano and his two sons carry the interesting distinction of being the first instances in Marine Corps history of a father serving alongside his son(s).10 The Carusi Family’s move, however, immediately encountered serious problems. After packing their most valued possessions they boarded the heavy frigate President, but instead of traveling immediately to the United States, the family was surprised to learn that the frigate was ordered to serve in a blockade and naval bombardment around the port of Tripoli. As Marines, the Italian musicians aboard were given various wartime assignments with the Carusi children assigned duties such as handing cartridges to the cannoneers. After a truce was finally signed, the President headed to Malta in June 1805 and then in July the ship began its long arduous journey towards the United States. During this period Gaetano began training his musicians as a working band. Unfortunately for the musicians, also during the time at sea, the Commandant of the Corps had been replaced. The new Marine Corps Commandant, Lieutenant Colonel Franklin Wharton, had apparently never been informed of the effort to recruit musicians and when he learned of this, was furious and immediately disavowed the authority to recruit the musicians or for the Marine Corps to pay their expenses. In a June 1805 letter to Captain Hall, he expressed his belief that the arrangements were unacceptable and he would refuse to pay most of the various expenses involved. However, apparently the communique was never received by Captain Hall in time to prevent the crossing, so the ship and musicians arrived in Alexandria, DC (now VA) in September. Even though Carusi’s band was well received by the people of Washington, the Commandant’s dissatisfaction with the situation became more and more pronounced. In October, the musicians and their families, who spoke little English and had little money, were ordered to leave the Marine barracks and find their own quarters in the sparsely populated city. The Commandant then began an active campaign to have the musicians accept discharge, which included ordering various difficult and unpleasant tasks such as digging latrine trenches. This situation continued for almost a year until he finally ordered the musicians’ discharge. At first however, the Italians refused, and they sought redress from both Secretary of the Navy Smith and Secretary of State Madison. Unfortunately for the families however, neither official interceded. A copy of a letter in the National Archives from Secretary of Navy Smith to Lt. Colonel Wharton supports the Commandant’s decision that the recruitment had occurred without proper authorization.11 In August 1806, Gaetano finally decided the situation was intolerable and accepted the discharge and made plans to return to Sicily. Gaetano, upon hearing of a ship bound for the Mediterranean, tried to book passage from Alexandria to Norfolk. Unfortunately, Commandant Wharton, upon hearing of this possible travel, felt that any music composed by Gaetano during his time with the Corps in his possession had to be returned. So, he had Gaetano arrested, and his music confiscated. After this incident, Carusi, his family, and several other musicians eventually got to Norfolk and while waiting several months for an opportunity to book passage, they earned a living performing as musicians in the area. Finally, in February 1807, after an appeal to Secretary of the Navy, Carusi was granted permission for travel aboard the frigate Chesapeake. It wasn’t until June 1807, however, that the ship set sail.12 The family’s misfortunes continued. Students of history will remember that the USS Chesapeake, unready for battle and carrying passengers, as well as having provisions and equipment on deck, was set upon by the British Man of War HMS Leopard seeking deserters. In a hasty attempt to get ready for battle, the Captain of the Chesapeake ordered the decks cleared which included throwing all Gaetano’s possessions overboard. After initially refusing British demands, the British ship opened fire, severely damaging the Chesapeake and killing a number of sailors. The ship surrendered and was then boarded and four deserters removed. The Chesapeake, with its masts shot away and taking on water, returned to Norfolk. During this period, relations with England were extremely strained and war appeared imminent. As a result of this incident, Gaetano decided it was now unsafe to travel and made a home in America for the next few years.13 By 1816, another opportunity to return to Italy presented itself when various government officials ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 17 successful and prominent American citizens. In 1830, Samuel married Adelaide Sofia McLean, daughter of John McLean who later became an Associate Justice of the Supreme Court. Another descendent of Gaetano was one of the founders of the National University Law School which later became part of the George Washington University Law School. And, while Gaetano Carusi’s petitions were never granted, upon his death in 1843, Gaetano was recognized and honored with assisted in obtaining permission for the Carusi family to travel aboard the newly constructed ship of the line USS Washington. Traveling in winter to Boston to meet the ship, Gaetano Carusi and his family boarded along with several other dignitaries including a Minister to Naples and the Commodore of the Mediterranean squadron of which the Washington was to be the flagship. The maiden voyage of the ship was a major event so instead of traveling directly to Italy, the ship traveled to Annapolis for public display, as well as to receive on board a second Minister to Naples and for a review by a number of dignitaries, including President Madison. Among the events during the several weeks layover in Annapolis, Mr. Carusi and his band performed a concert for the President. Gaetano Carusi later noted that, despite receiving polite treatment while the Commodore was on board, when the Commodore disembarked, now all on board were subject to the whims of the Captain, who had a reputation of being somewhat of a despot. Further, the Captain, who had also been on board the ill-fated engagement of the Chesapeake with the British in 1807, appeared to have considerable ill feelings for the Italians on board and heaped considerable abuse upon them. Mr. Carusi, who was advancing in age and somewhat ill, felt he was unable to “suffer the insults, tyranny, oppression and maltreatment”14 so left the ship. Interestingly, Mr. Carusi had these abuses documented with written statements from three witnesses and are described in his Narrative of Gaetano Carusi, in Support of his Claim before the Congress of the United States” 15 16 Gaetano Carusi and family now seemed to accept their apparent destiny to remain in the U.S. Samuel and Nathaniel became naturalized citizens in 1816, with father Gaetano becoming a citizen in 1817. Gaetano and sons Samuel and Lewis located in Philadelphia until moving to Washington DC in 1820. Later in his life, noting that he felt he had “been deceived, nay, betrayed and insulted, by persons concerned in the Government of the United States of America,” Gaetano sought partial redress for his treatment by making several petitions to Congress for compensation. In 1840, he provided a detailed account of his treatment in his Narrative 17 While one petition was approved in the House of Representatives in 1837; a final bill never passed the Senate. So, in spite of generating a great deal of sympathy, these petitions were never granted. Gaetano and his family became highly Cemetery.18 Conclusion One of the more interesting parts of numismatics is the study of the underlying history behind the currency we find. These two rare and highly distinctive merchant notes are, in particular, backed by a rich and fascinating history and provide a glimpse into an early part of District of Columbia history that has generally been forgotten. I would be very interested in hearing from anyone who has any further information about these notes, or has information about other specimens. Please feel free to contact me at tip001@verizon.net. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 18 1 Doty, Richard, Coin World, “District of Columbia Note Listing Continues”, vol. 31, no. 1558, (Feb 21, 1990), pp. 106‐113. Coin World 2 George Grove D.C.L, editor, A Dictionary of Music and Musicians (A.D. 1450‐1880), (London: Macmillan And Co., 1880). Vol. II, p 436. 3 James R. Heintze, “Gaetano Carusi: From Sicily to the Halls of Congress,” in American Musical Life in Context and Practice to 1865, edited by James R. Heintze (New York and London, Garland Publishing, 1994), p 102‐104 4 Washington Gazette, 9/9/1822. 5 Heintze p. 108 6 Heintze p 108 7 Francis M. McCormick, Jr., George P. Reed v. Samuel Carusi: A Nineteenth Century Jury Trial Pursuant to the 1831 Copyright Act. Baltimore. 2005. file:///C:/DC%20Research/Merchant%20scrip/Carusi/McCormickReedCarusi%20article.pdf 8 Heintze, pp. 77‐80. 9 Heintze, p 81 10 “Marine Band Legacies”: http://www.marineband.marines.mil/About/Our‐History/Marine‐Band‐Legacies/ 11 Letter from Secretary of the Navy Smith to Lieutenant Colonel Wharton, May 5, 1806. National Archives, Senate documents RG46 4.36A‐E1, box 15. 12 Heintze, p. 89. 13 Heintze, pp.90‐93. 14 Certificate of T Downey. National Archives, Senate document RG46 4.36A‐E1, box 15. 15 National Archives, Senate documents RG46 4.36A‐E1, box 15. 16 James R. Heintze, “Tyranny and Despotic Violence”: An Incident Aboard the U.S.S. Washington. Maryland Historical Magazine, Vol.94, No 1 (Spring 1999), p 45. 17 National Archives, Senate documents RG46 4.36A‐E1, box 15. 18Heintze, “Gaetano Carusi: From Sicily to the Halls of Congress,” p.116. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 19 Central States Numismatic Society 78th Anniversary Convention April 25-28, 2018 (Bourse Hours – April 25 – 12 noon-6pm Early Birds: $125 Registration Fee) Schaumburg, IL Schaumburg Renaissance Hotel & Convention Center Visit our website: www.centralstates.info Bourse Information: Patricia Foley (414) 698-6498 • foleylawoffice@gmail.com Hotel Reservations: Schaumburg Renaissance Hotel - 1551 North Thoreau Drive • Call (847) 303-4100 Ask for the “Central States Numismatic Society” Convention Rate. Problems booking? - Call Convention Chairman Kevin Foley at (414) 807-0116 Free Hotel Guest and Visitor Parking. • Numismatic Educational Forum • Educational Exhibits • 300 Booth Bourse Area • Heritage Coin Signature Sale • Heritage Currency Signature Sale • Educational Programs • Club and Society Meetings • Free Hotel Guest and Visitor Parking • Complimentary Public Admission: Thursday-Friday-Saturday No Pesky Sales Tax in Illinois Colony of North Carolina One Pound December 1771 by David Lok Authorized by an act in December 1771, this note was one of 10,000 1 Pound notes to be issued in the Colony of North Carolina. Along with other denominations being issued the combined total was 60,000 Pounds for this issue. The Signers were Richard Caswell, Lewis De Rosset, John Harvey and John Rutherford. The notes issued in this series each have a small vignette in the lower left corner. Each vignette corresponded to one of the ten different denominations that were issued by this act. This One Pound note features a bear in pose with the constellation Ursa Minor, which is also known as the Little Dipper. The last star of the bear’s tail, or the dipper's handle, is of course the North Star. Richard Caswell was born in the Colony of Maryland in 1729, but moved to North Carolina in 1746. He had a long and distinguished career in service to the United States and to North Carolina. He started as the Colony's Deputy Surveyor, obtained his legal degree, and practiced law in Hillsboro. He fought in several battles throughout the Revolutionary War, and was eventually promoted to Brigadier General. He was one of the first members of the Continental Congress, and was also elected as North Carolina's first governor, and then again as its fifth governor. He was still serving North Carolina, as the Speaker to the State House of Commons, when he died in November 10, 1789. Lewis De Rosset was a Loyalist, not a Revolutionary. He was a member of the Lower House of General Assembly, Chairman of Public Accounts and also served as Justice of the Peace. De Rosset served as Lieutenant General under William Tryon, the Colonial Administrator (British Appointed Governor) in 1768, and as Adjutant General under General Waddell of the Militia as late as 1771. John Rutherfurd emigrated from Scotland and was in the Colony of North Carolina by 1732. He had a mercantile and a lumber business and married a well-to-do widow, Frances Johnston, in 1751. He had served as the Wilmington Town Commissioner twice, in 1749 and again in 1751. He was also appointed as the Receiver General of the Kings Quit Rents (a type of land tax for lands owned by the King), serving until the demise of the British Government in North Carolina. Rutherfurd too was a Loyalist, and served as a Lieutenant General under William Tryon, establishing the Cherokee Boundary line and the boundary between North and South Carolina. He stayed in North Carolina until Yorktown fell, and then sailed to England, dying in route in 1782. John Harvey was a Revolutionary who had served as Speaker to the State House of Commons, and represented Perquimans County at the Colonial Assembly in 1755. In 1766, he served as Speaker of the Colonial Assembly under Colonial Governor William Tryon. in August 1774, he moderated the First Provincial Congress, in direct violation of the orders of the British Administration. He convened a second Congress in April 1775. Shortly afterwards, he fell from his horse and became seriously ill from the injuries. John Harvey died in May 1775 as a result. But the real star of this banknote is actually on the reverse. The back of this note has a stamped name of I. ASHE (the capital letter I at the time actually standing in for the letter J). This stamp is for Mr. for John Ashe, who was the treasurer for the Southern district of Colony of North Carolina. Born in 1720, John Ashe, the son of Colonel John Baptista Ashe, was orphaned at 14 years of age with three siblings to look after. His Uncle Sam Swan was able to look after him however, and saw to it that the young John was able to be properly educated. He attended school in England but returned to North Carolina to make his living. He was fond of reading, and had such a valuable library that, during the revolution, he hid it in the hollow of a vast cypress tree in the Burgaw swamp. By the age of 31 he was the Justice of the Peace for New Hanover County, and at 32, he was elected to the Assembly where he served along with his Uncle Sam Swan. Ashe continued to serve in the Ursa Minor ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 21 Assembly for many years, and he saw that there were injustices in authorized payments, such as money earmarked for schools, being sent back to England or used for other projects in North Carolina. By December 1758 He had seen too much of it to suit his tastes and, when the Assembly met, John Ashe took advantage of an opportunity to send correspondence to King George III. In it, he remarked that over the years, North Carolina has had to divert money for schools to be used for the defense of the colony against the Indians. He asked the king to reimburse North Carolina for these monetary burdens and to have that money used to build a free school in each of North Carolina’s counties. Amazingly, funds were granted by the King, but North Carolina’s Governor Dobbs saw to it that the money was spent on his own needs instead. During this time, John Ashe also served in the militia as an officer and in 1754 when the French and Indian War broke out, had been promoted to Major in Colonel Innes’ Regiment. In 1762, Sam Swan stepped down as speaker of the Assembly, and John Ashe was selected to serve in his stead. In 1764, the colonies were informed of the Stamp Act, in which they would be taxed in order to help support the British Empire. This was an exceedingly unpopular act both in the colonies as well as among the English Merchant Class who were afraid of losing business with the Americas. As Speaker of the Assembly, Ashe was in favor of opposing the act in any way possible. The fervor of the colonist over the taxation was increasing, and as a result, many persons in North Carolina set up looms in order to weave their own clothes instead of buying them from England. In 1765, Colonel Tryon succeeded Dobbs as Governor and changed the Assembly meetings to May 3rd, 1765. This change was an attempt to stall the meetings in order to stall any action by the North Carolina assembly to oppose the act. The Continental Congress was set to meet in New York City on October 07, 1765. Ashe was going to take part in the Congress or at least send a representative, but Governor Tryon again postponed the meeting of the North Carolina Assembly, and continued to do so repeatedly, eventually dissolving it. As a result, no North Carolina delegate was sent. The Stamp Act was passed in March, and Mr. William Houston was appointed the Stamp Master in North Carolina. Even though the stamps were still in route from England, North Carolinians were taking matters into their own hands. On November 16th, 1765, William Houston was seized by a force led by Moses John de Rosset (Who was the father of Lewis John de Rosset) and ordered to resign his position as Stamp Master. Two days afterward, John Ashe, together with 50 other gentlemen, informed Governor Tryon that they would not allow the Stamp Act to be enforced, and that they would resist it “to blood and death”. In the meantime, the stamps arrived, but with no one to turn them over to, they remained on board the ship. This caused a sudden stop in commerce, as ships that were coming and going were stopped and seized by the British for not having the proper stamps. The Mayor of Wilmington resigned and was replaced by Moses John de Rosset. General Hugh Waddell was placed in command of the 1,000-strong militia force, which was in turn under the command of the Speaker of the Assembly, John Ashe. What's more this militia was on the move, making their way to Brunswick. They took control of Fort Johnston and detained the officers and officials until the release of all merchant vessels was secured. Due in no small part to this action, the Stamp Act was repealed in March of 1766. At the next meeting of the Assembly, John Ashe was absent for the first few days. As a result, John Harvey was elected as the Speaker, while John Ashe was elected as the Treasurer. By 1768 John Ashe and his militia was called upon to end a riot in Hillsboro. This happened again in 1771, but there were no official funds to be had to pay the expenses. Ashe was compelled to pay the funds from his southern district and issued his own banknotes to pay for the military action, and the rioters were thus routed in large part to John Ashe using his position to fund the excursion. However successful he was in this matter, in following the dictates of the assembly to not collect a particular one shilling tax, the governor disbanded the Assembly in 1772 and ordered new elections. John Harvey was elected as Speaker, and Richard Caswell was elected as Treasurer. This move assuredly helped propel Ashe into his next career. Ashe had been a Colonel of the New Hanover Regiment, but he resigned and further declined a reappointment to this position. Ashe had by this time started to form a separate militia group, and had in fact been the very first North Carolinian to accept a commission “at the hands of the people.” Ashe had in fact been instrumental in getting persons to enlist in the new militia and had even threatened bringing legal action to those who would refuse service to the militia. On April 19, 1775, the Battle of Lexington commenced which effectively started the Revolutionary War. When news of the success of the ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 22 Colonists reached the governor, he fled his estate and took refuge in Fort Johnston, fortifying it against attack. Ashe had taken it upon himself to route the governor from North Carolina, and reportedly Ashe himself set fire to the fort, causing the governor to flee to ships in the harbor; North Carolina was no longer under Royal Administration. In February 1778, Ashe was appointed Brigadier General of the Wilmington District of militia, a force of some 9,000 men. He successfully defended against the British invading Cape Fear in April and by the end of May had sent the Redcoats back to their ships. Ashe continued to serve civilly as well as militarily, and in December 1776, was again appointed as treasurer of the Assembly, while Richard Caswell was elected as Governor of the Assembly. In 1868, he was commissioned Major- General and sent south to Elizabethtown to command a gathering militia force there. Governor Caswell offered to take over the duties as Treasurer, but wrote to Ashe on December 29, 1776, that he was concerned that the militia had insufficient numbers of firearms and that many of those which were available were not fit for service. It was reported in January 1777 that of the 5,000 men ordered out, “not more than half had marched, and those badly armed.” This was a warning that things were not going well. Ashe’s subordinate commanders placed their soldiers in positions that were poorly defensible and when the British came to meet them, many of the militia quickly threw down their firearms and fled. Ashe tried to regroup the forces, but the pandemonium was too far gone. Ashe was held responsible for this defeat and, when his militia was disbanded, he returned home himself never again taking military command. When British took control of Wilmington, North Carolina in January 1781, John Ashe fled into the Burgaw swamp. He was pursued by the British and shot in the leg, but survived and was taken prisoner. While in prison he contracted the dreadful smallpox disease, but survived that infection as well. Ashe was paroled from the prisoner of war camp and he returned home, but he did not wish to stay in occupied Wilmington, so he took his family to the country. Along their journey, he stopped at the home of Colonel John Sampson, where he was taken ill and died that night. John Ashe was an instrumental figure in the North Carolinian fight for freedom, fighting against the injustices that he saw in the political and economic spheres in which he travelled. His troubled beginnings were set into this course of action by his Uncle Sam Swann, but his conviction to duty was absolutely his own. He was a gentleman, whose generosity and valor, together with his ability to fight when needed were indeed his strengths. He was not mislabeled when he was remembered by the historian Thomas Jones as perhaps the most chivalric hero of the Revolution. *Much reference was pulled from the "Biographic History of North Carolina" published in 1906. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 23 PMGnotes.com | 877-PMG-5570 United States | Switzerland | Germany | Hong Kong | China | South Korea | Singapore | Taiwan | Japan THE CHOICE IS CLEAR Introducing the New PMG Holder PMG’s new holder provides museum-quality display, crystal-clear optics and long-term preservation. Enhance the eye appeal of your notes with the superior clarity of the PMG holder, and enjoy peace of mind knowing that your priceless rarities have the best protection. Learn more at PMGnotes.com 16-CCGPA-2889_PMG_Ad_NewHolder_PaperMoney_JulyAug2016.indd 1 5/27/16 8:12 AM The Adoue Banking Family of Dallas, Texas by Frank Clark Jean Baptiste Adoue, Sr. was born on October 24, 1846 in Aurignac, France. Adoue moved from France to New Orleans in 1861 with his younger brother in order to join his older brother who had already gone ahead. After federal forces captured New Orleans in the year 1862, Jean moved on to Bryan, Texas. He would next move to Waco where he operated a grocery store. His next stop was Bremond, Texas. There he opened both a general store and a private bank in that Robertson County hamlet. He remained there until 1880 before moving on to Dallas. He would help organize a bank in Dallas with the name of Flippen, Adoue, and Lobit. This bank would become The National Bank of Commerce of Dallas on March 8, 1889 with charter number 3985. Adoue became its president in 1892. He married Mary or Mittie Neosha Simpson in 1885 and they had four children. The first was a boy given the name of Jean Baptiste Adoue, Jr. and he was followed by two sisters and a brother. Bertrand was the brother and he was killed in France during World War I. In 1896 the Adoue family was living at 2309 McKinney at the corner of McKinney and Maple. This address is less than one mile southeast of the location of my employer, Heritage Auctions. Mr. Adoue took his own life with a gunshot to the head on June 20, 1924. This occurred in the upstairs bathroom of the McKinney address on a Friday morning. Mrs. Adoue and a grandchild were in the house at the time. Family members did not know there was a firearm on the premises. Members of the family believed that ill health was the reason for the suicide as Mr. Adoue had recently suffered an apoplectic stroke that had affected his sight. He had often said in the days leading up to his suicide that he would rather die than become helpless. Mr. Adoue, Sr. was regarded as the dean of Dallas bankers at the time of his death. Jean Baptiste Adoue, Jr. immediately succeeded his father as president of The National Bank of Commerce. He was president for over thirty years. He did take time off from 1951 to 1953 to serve as the mayor of Dallas. He was also a leading amateur tennis player in the state of Texas. He sat on the board of directors of the United States Lawn Tennis Association for thirty years. Mr. Adoue, Jr. went back to being the president of The National Bank of Commerce after his term as mayor. He died at his desk at the bank on November 17, 1956. Charter number 3985 issued Series 1882 Brown Backs, Series 1902 Date Backs and Plain Backs, and Series 1929 Type 1 and Type 2 notes. The Philpott/Moody Foundation Collection has a Series 1882 $10 Brown Back signed by the father as president as "J.B. Adoue." That collection also has a Series 1902 $100 Plain Back signed by the son as president as "J.B. Adoue, Jr." All Series 1929 notes have the engraved president signature of "J.B. Adoue, Jr." Bank officers on this note are Cashier George Miller and President J.B. Adoue, Jr. Image courtesy of Heritage Auction Archives. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 25 U.S. Serial Number 100,000,000 Notes By Jamie Yakes and Peter Huntoon Serial number 100,000,000 notes represent the pinnacle in fancy serial numbers. They haven’t been made since 1936, so the supply is limited to about three dozen in collector’s hands, and an unknown population undiscovered by the numismatic market. Table 1 is the current census of 100,000,000 notes. This compilation was made with the enthusiastic help of serial number aficionados and a thorough scouring of auction catalogs dating back to the famous Grinnell sales of 1946. Especially helpful contributors to this census were Mike Abramson, Martin Gengerke, Peter Huntoon, and Doug Murray. The data reveal that printings of 100,000,000 serials were sporadic in the large size series from about 1923 through 1928. No small size examples were printed until the beginning of 1933, and their production lasted only through 1936. The earliest that has been recorded is a $1 Series of 1899 silver certificate printed in 1902 from the first Lyons-Roberts serial number block, which had no prefix or suffix letters. The last printed is a $1 Series of 1934 Silver Certificate bearing serial F100000000A that was numbered on February 24, 1936. The use of 100,000,000 serials was restricted mostly to the highly visible $1 silver certificates. There are known among $1 Series of 1917 legal tenders of 1915-1920 vintage (Fig. 1). Two deuces are recorded, one 1899 silver certificate and a 1917 legal tender note. Only one Federal Reserve Note example is reported, a $5 Series 1914 note from Chicago, which also is the highest denomination recorded (Fig. 2). Figure 1. $1 1917 Legal Tender Note, serial E100000000A, delivered to the Treasury on January 30, 1928. It’s the youngest reported large size 100000000. Figure 2. This is the only reported Federal Reserve Note with a 100000000 serial, and the only such note that has a face value greater than $2. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 26 Numbering 100,000,000 Notes The 100,000,000 notes were not printed on conventional numbering presses because the numbering heads on those presses could not accommodate a nine numbering wheels. The notes instead were numbered on paging machines, which were hand-operated devices that applied serial numbers one at a time from the same numbering head. Paging machines were routinely used to number large size type notes with low serial numbers during the era of the 100,000,000 notes. They also were used to number both large and small size high denomination replacement type notes, and large and small size replacement national bank notes. The physical evidence that 100,000,000 notes were numbered on paging machines with the same numbering head is definitive. The two numbers on a given specimen exhibit identically formed serial numbers: The relative alignments and spaces between the characters within each are identical, as are the internal flaws within the individual characters (Fig. 3). Great care was used to print the numbers; even so, some exhibit slightly tilted numbers identical to those observed on make-up replacement notes. Data from rollover sequences comprising 99999999, 100000000, and 00000001 notes reveal that the 100,000,000 notes were printed on separate sheets from the others (Fig. 4). Care was taken to place the 100,000,000 serial on the correct plate position: D or H for large-size notes, and J for small-size notes. The following three rollovers from the Series of 1934 $1 Silver Certificate series illustrate this point: Type Serial Face Back $1 1934 B99999999A I194 2573 B100000000A J111 2542 C00000001A A36 2786 $1 1934 E99999999A I399 2725 E100000000A J397 3017 F00000001A A397 3017 $1 1934 F99999999A I752 2861 F100000000A J337 2741 G00000001A A750 2862 Figure 3. Notice the tilt of the right serial number, the drop of both 1s, and identical thin imprint of the left zero in both serials. Both were printed from the same numbering head on a paging machine. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 27 BEP Ends 100,000,000 Notes Management at the Bureau of Engraving and Printing wanted to avoid printing any 100,000,000 notes because they represented a bottleneck to productivity by having to be handmade. BEP Director Alvin W. Hall, who served from 1924 to 1954, was not the type of administrator who wanted his Bureau to be bothered with such things. His management style was to drive continually for efficiencies and cost-reducing innovations. It is easy to infer from the census of reported specimens that he quietly let production of the 100,000,000 notes lapse as much as possible during the end of the large note era, and hoped to continue to avoid them during the small note era. Hall succeeded in casting 100,000,000 notes to the wayside for five years. Production of them resumed in 1933 when the following was written in a BEP Numbering Division log book: “In place of a substitute star note the one hundred million figure was printed for the first time January 20, 1933 $1 Silver Certificate Series 1928 A100,000,000B.”1 Resumption may reflect the fact that officials high in Hoover’s Treasury, and those of his successor Roosevelt, had a collecting bent, as did philatelist-in-chief Roosevelt himself. Probably Hall was requested to resume the practice, which he did at least for the high-profile $1 silvers. An internal BEP explanation of serial numbering written September 22, 1933 explained the practice: “To have all notes numbered in even millions, a note is numbered 100,000,000 by hand at the proper time.”2 Production of the notes finally became history with the close of Series of 1934 $1s in 1936. None appeared on the new Series of 1935 notes. But the issue rattled around again in the Treasury Department in 1941. An inquiry was made by someone in the department that reached Mr. Duncan, Chief of the BEP Numbering Division. He advised that the note following 99,999,999 was a star note. William S. Broughton, Commissioner of the Public Debt, confirmed the practice in a memo dated February 13.3 Broughton’s memo was taken as an official directive and formally entered into the Numbering Division log book on Feb’y 18.4 Today, 100,000,000 serials print as 00000000 in the normal course of machine production. That note is rejected as mutilated and replaced with a star note. Only one legitimate 00000000 note is known to have escaped the Bureau, a $1 Series of 1969A Federal Reserve note bearing serial A00000000A complete with a red crayon reject line scrawled across its face. Undoubtedly additional gems will be discovered that can be used to build on this story. The information presented here builds on the pioneering sleuthing into 100,000,000 notes by Jack Fischer published in Coin World in the December 2, 1987 and March 2, 1988 issues. Figure 4. Rollover serial numbers between the A‐A and B‐A blocks of $1 Series of 1934 silver certificates. Each note is from a different sheet. Serial A100000000A was numbered on a paging machine. These notes came from the sale of the Albert A. Grinnell collection in 1946. ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 28 It is easy to understand heightened numismatic interest in 100,000,000 notes—they are visual knockouts. They eclipse all other fancy serial numbers in rarity, a reality exacerbated because they no longer are being made. Yes, serial number 1 large size notes, 00000001 small size notes, as well as solids and other neat serial numbered notes on any size notes are prizes, but those serials are many times more common, and new ones are being printed on modern notes every month. Sources Used 1. Bureau of Engraving and Printing, undated, Log book maintained within the Numbering Division: Bureau of Engraving and Printing Historical Resource Center, Washington, D.C. 2. Bureau of Public Debt, Record Group 53, Entry 13, Historical Files 1913-1960, Box 1, National Archives and Records Administration, College Park, Maryland. 3. _____, Record Group 53, Entry 13, Historical Files 1913-1960, National Archives and Records Administration, College Park, Maryland. 4. Bureau of Engraving and Printing, Log book maintained within the Numbering Division. Table 1. Reported United States notes bearing serial number 100,000,000. Plate Type Letter Public Sale (if known) Large Size Notes: Legal Tender $1 1917 Teehee‐Burke A100000000A D Elliott‐Burke D100000000A D Elliott‐Burke E100000000A D Elliott‐Burke K100000000A D $2 1917 Elliott‐Burke A100000000A D Silver Certificate $1 1899 Lyons‐Roberts 100000000 D Vernon‐McClung V100000000 D Napier‐McClung Z100000000 D Napier‐McClung E100000000E D Abramson 2/16 Parker‐Burke K100000000K D Abramson 10/16 Parker‐Burke M100000000M D Grinnell 967 Parker‐Burke N100000000N D Teehee‐Burke R100000000R D Grinnell 966 Teehee‐Burke U100000000U D reported by Knight Teehee‐Burke V100000000V D Abramson report 1/16 Teehee‐Burke B100000000A H Abramson 2/16 Elliott‐White H100000000A D Elliott‐White K100000000A Stacks 6/2005 Speelman‐White M100000000A D Speelman‐White N100000000A D Speelman‐White R100000000A H Speelman‐White V100000000A D $1 1923 Speelman‐White Z100000000B D Speelman‐White N100000000D H Grinnell 968 $2 1899 Teehee‐Burke M100000000 D Federal Reserve Note $5 1914 White‐Mellon G100000000A H Small Size Notes: Silver Certificate $1 1928A C99999999B, C100000000B Grinnell 5735 $1 1928B G99999999B, G100000000B Grinnell 5737 I99999999B, I100000000B, J00000001B $1 1934 A99999999A, A100000000A, B00000001A Grinnell 5733 B99999999A, B100000000A, C00000001A Grinnell 5734 C100000000A E99999999A, E100000000A, F00000001A F99999999A, F100000000A, G00000001A Grinnell 5736 ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 29 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 U n c o u p l e d : Paper Money’s Odd Couple Specimens Joseph E. Boling Fred Schwan This month we deal with specimens. I will cover the typology of Japanese and Japan-related specimens that we developed for World War II Remembered and follow with examples of counterfeit and fantasy specimens that are found in the market. Fred will cover other aspects of specimen emissions. The typology mentioned was extended to specimens of all issuers. Many varieties of specimens were created in the Pacific theater by Japan, her colonies, and for use in the areas she occupied during WWII. Prior to WWII (including for this discussion the years before the US was involved, but Japan was already fully engaged in China), notes were printed by the Japanese Finance Ministry Printing Bureau (which went by several names in the imprints found on notes) or by commercial printers contracted by the printing bureau. Specimens from these sources are referred to as manufacturer’s or bureau specimens. They look like most such pieces—zero serial numbers or words where the serials and blocks would appear indicating what should be there on an issued note; the word “specimen” in one of more languages; and perforations of various sorts (either as cancellation holes, or as text and numbers). Figures 1 and 2 (below) show a typical bureau specimen. The word mihon (specimen) is both printed on and perforated into the note; the serials and blocks are indicated by the Japanese words for “number” and “mark”; and a specimen serial number (92) is printed and perforated at opposite ends. The back I like specimen notes. That is not much of a confession. I like just about all notes. Here I will try to limit my comments to ways that specimen notes are different or are particularly interesting. When Joe and I had our editorial meetings (two emails and a phone call) on this edition of our column, we finally settled on specimen notes. I was going to discuss specimens of military payment certificates (MPC), Allied military currency, and some other classic military issues. I have created an outline. I do not think that I will get past MPC specimens. There is a great improvement in the state of our knowledge of just a few years ago. Of course the sale of the Paymaster Collection is the basis of much of our new information and ideas. Just as with most other paper money issues, when a series of MPC was created, specimens were also printed. Ultimately some of those specimens made it into collections. That is where we come in. Series 461 MPC was proposed, printed and issued in 1946. The whole process was done very quickly. The Bureau of Engraving and Printing awarded the contract for the printing to Forbes Lithograph Manufacturing in Chelsea, Mass. It is my opinion that Forbes did a good job on the project. One of the details of the order was for the creation of an uncertain number of specimen sets. As if to be a special treat for us, Forbes created the specimen certificates from left-over replacements! This approach had been used during Boling continued on page 33 Classic Contractor Format ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 31 the production of Allied military currency by the same manufacturer during the war years, and the same system was used by all of the private contractors through the printing of Series 591. Those specimen/replacements can nicely fill two holes in a collection. Furthermore, the serial number data help us with our studies of replacement numbers. How many? Collectors are very interested in how many pieces were printed, issued, and redeemed for regular issues, replacements and specimens. Detailed records were kept by the BEP/contractors on how many regular issues were printed. All of the other holes in the matrix are much less certain, adding to some of the fun of collecting. We know that for Series 461 the authorities were dealing with unknown questions. They had to estimate and experiment. This is clear when we look at the production number for the $10 certificate of that first series. More than 40 million pieces were printed. Within a year, when Series 471 was printed, the number was reduced to 13 million, and the total for tens continued to go down. How many specimen sets to create? That was another great question. To answer that question, planners would have to consider the intended purpose of the specimen sets (and possible loose specimens as well). Just what was the purpose of the specimen sets? That is a much more interesting question than it seems. We have always said that the purpose was education, as in briefing the command authorities on future issues, training (such as familiarizing finance clerks with issues), and counterfeit detection (by military police and finance officers). All of these purposes seem reasonable enough. Reasonable, that is, to collectors who made them up. They seemed reasonable and we did not have any reason to doubt them, but they still were only our guess. In about 2001 at the Florida United Numismatists convention I had an opportunity to conduct an important interview for our MPC research. Jeff Wiley (colonel, US Army retired) was a career Army finance officer. He was also a long time collector. His name appeared in the early Toy and Toy-Schwan books. Jeff and Ray were friends. I did not know who Wiley was until that FUN show, where he introduced himself. Colonel Wiley had been the chief finance officer in Korea when Series 651 and the entire MPC system were retired. It was a great opportunity for me. There was only one thing that he told me that was a real surprise. In fact I was stunned. As an afterthought I asked him something about specimen certificates. He too was surprised. He leaned forward and told me that not only had he never in his entire career seen an MPC specimen, but that he was quite sure that specimens did not get issued to the field. If they had, he certainly would have seen and remembered them. He had been intimately involved with MPC from Vietnam through the end of the system. Clearly this meant that we should reevaluate our thinking. Do we have any additional evidence relating to the use of specimen MPC? I can think of a few bits of information. One of the earliest Series 461 sets came in a group of things from the collection of R. A. Gunston. The cover has a clear pencil annotation “Return to LTC Gunston.” In 1946 Gunston was on a civil affairs staff in Europe, where he appears to have had this booklet as part of his duties. (Gunston is famous to stamp collectors who are interested in World War II. While he moved around the world, he created and sent first day covers of military stamps to his collector friends at home and elsewhere.) His use of specimens while conducting civil affairs duties is one we had not thought of. I think that we could probably put this example in the education category. A letter in the files at the BEP alludes to the fact that an Army officer sent specimen books to many central banks around the world. It was and possibly still is a common practice for central banks to send samples (specimens) to other central banks when new issues were created. This officer felt it was necessary to do this with MPC, or at least with the first series. This use could also be put in the education category I think. It is consistent with Wiley’s observation, but it certainly is not an educational use in the way that I had anticipated. Colonel Wiley infers that since specimens were not in the field, they must have been at only the highest headquarters, or possibly only at the Pentagon or BEP. We have some clues. The “Controller Sets” (one each Series 541 and 591) have been fairly well documented as having come from the Pentagon when a high finance officer retired. On the other end of the debate, we know from cover markings that the famous Series 692 PCS (progressive, composite, and specimen) set had been at the Pacific headquarters in Hawaii before finding its way to a private collection. Headquarters USPACOM is hardly a local finance office, but it is also not the Pentagon. Here is an observation that may relate. The National Numismatic Collection at the Smithsonian Institution includes seventeen (yes, seventeen) specimen sets of Series 471, and few or no sets from any other series. This could mean that the production of 471 sets was based on the production of Series 461 sets, but was excessive. The serial numbers of these ___________________________________________________________Paper Money * January/February 2018* Whole No. 313_____________________________________________________________ 32 specimens have been key to replacement studies of this scarce series. Moving on. Series 471 was the second series and its specimen sets are rare in private hands. The first set that was reported in collections had the $5 certificate torn out. To make matters worse, the tear was ragged. A terrible job. Series 472 had only one booklet reported in private hands for many years. Furthermore, during many of those years, the twenty-five cent replacement (specimen) in the booklet was the only replacement known for the denomination. Ultimately, a few issued replacements were found. T