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ACCent: The Monthly Newsletter of the Anchorage Coin Club

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Volume 12, Number 3

March 1999

March Membership Meeting
Wed., March 3, 1999 Central Lutheran Church

7:30 PM Meeting


 

FROM YOUR EDITORS

Larry Nakata's presentation on U.S. gold coins at the February meeting showed why they command a premium. Larry handed out two types of gold coins in Capital Plastic holders; one in uncirculated condition. We poured over the rare three dollar gold pieces. Our mouths watered admiring the high grade St. Gaudens double eagles with their smooth legs, their clear faces, and their unblemished fields. But then we had to give them back.

Next month we will discuss the lowly dime and it's grandfather "the denarius". Much more important at the March membership meeting will be elections.

This is your chance to become an officer in an internationally known (through the Internet) coin club that is the most powerful coin club in the State of Alaska. Thus far we have nominees for the offices listed in the minutes of this month's Board meeting. You will want to be there to put in your vote.

In addition we will finalize the raffle and draw for the MS-61 NGC graded 3 cent nickel. This 1865 coin was the first year of issue for a coin designed to fight the hoarding of coins (that was going on then) and facilitate the purchase of postage. This is a valuable high grade type coin.

The May 5th membership meeting will feature the Young Numismatists Donation Coin Auction. Each year coins donated by our members are auctioned off to raise money for the Education Fund. The YN coin display at the Library has drawn a number of compliments as well as inquiries into the club. So our fine education program apparently works. To continue programs of this nature members are asked to donate what they can for the YN coin auction.

After a month at the Loussac Library, the display "Kids Coins" was removed Sunday the 14th, Coins not claimed that day are considered donated material the YN Donation Coin Auction. Thank you!! (Editors Note: Just kidding!!).

Some responses are back on the seminar subject survey. Plans are set to have the seminar the weekend of September 10th. Possible subjects for the seminar include coin grading, counterfeit detection, and paper money. We will discuss it further at the March 3rd membership meeting.

$1 US Education Note 1896 Obverse

$1 US Education Note 1896 Obverse

$1 US Education Note 1896 Reverse

$1 US Education Note 1896 Reverse

 

MEMBERSHIP NEWS

Schedule of Events for the Month of March:

1. Monthly Membership Meeting: March 3rd (Wednesday) at 7:30 PM at the Central Lutheran Church. Club members and general public welcomed. Elections of club officers wilt be held at this meeting. Club member Loren Lucason will be giving a presentation on "Ancient Coinage / The Denarius, Grandfather of the Dime". A bullet coin auction of no more than 10 coin lots will occur. Members wishing to submit coins for the bullet auction can bring them to the meeting.

2. YN (Young Numismatists) Meeting: March 12th (Friday) at 7:00 PM at the Central Lutheran Church. YNs, club members, and general public welcomed. There will be a session on "Collecting Error and Variety Coins for the YN".

3. "Anchorage Coin Club Board Meeting: March 17th (Wednesday) 7:00 PM at the Central Lutheran Church. Club members welcomed.

Minutes of the February 17th Board Meeting:

The Board meeting was called to order at 7:30 PM.

The upcoming March 3rd club elections was the first order of business. At this time the following members are running for office:

For President............ Loren Lucason

For Vice-President..... John Larson

For Secretary............ Larry Nakata

For Treasurer............ Robert Hall

For First Board Seat.... Don Thurber

Under our club by-laws, Roy Brown can only serve as president for two consecutive terms. Roy will thus step into the Second Board Seat in accordance with those by-laws. Mike Orr will continue in the Third Board Seat since this is the 2nd year of his term.

Members can still be nominated for club officer positions right up to the day of the election. Members are encouraged to "toss their hat in the ring".

The Board reviewed requests for endorsement of candidates for the ANA Board of Governors, ANA President, and ANA Vice-President. Recommendations will be made for endorsements at the

$2 US Education Note 1896

$2 US Education Note / 1896

March 3rd meeting for approval by club members.

The Board also reviewed surveys submitted on our club's 1999 Numismatic Seminar. Based on the survey results, this year's seminar will be on the subjects of "Grading" and "Counterfeit Detection". The decision was subsequently made by the Board to hold the seminar over a three day period from September 10th - 12th. More information to follow.....

Our club's May 5th membership meeting will also be the date of our annual YN Numismatic Donation Auction. All proceeds from this donation auction go towards the YN Education Fund. Members are encouraged to donate numismatic items for this worthy cause. Contact Larry Nakata on any items to be donated.

As there was no further business, the meeting adjourned at 8:35 PM.

 

YN CORNER
by Larry Nakata (Member #41)

We had a pretty good turnout of YNs at our February 12th meeting. The featured event was a presentation by YN Corey Rennell on the subject of "The Coins and Currency of Chile". Corey recently came back from the Boy Scout Jamboree held in Chile this year. The presentation covered the history of the country, the history of it's currency and coinage, and how inflation has posed a problem for the country's economy. Corey brought back lots of examples of coins and currency from Chile. At the end of his presentation, each Young Numismatist was given a Chilean coin to take back for their collection.

Following Corey's presentation, the YNs also got to see a recent shipment of coins sent to us by our sister club in Australia, the Tasmanian Numismatic Society. Sent were an assortment of coins from Australia, New Zealand, and other countries in Southeast Asia. These coins will be auctioned off at our YN Numismatic Donation Auction at our May 5th meeting. Thanks go to the Tasmanian Numismatic Society... and in particular, Graeme Peterwood, for sending these coins to our club.

The YN meeting also went over a discussion of the new US quarter program, the new one dollar coin expected to come out in the Year 2000, and the upcoming opportunities for coin collecting for the YN. Among these opportunities:

Collecting sets of the new US quarters over the next 10 years. Some 50 different quarters to be minted by each of the US mints... with five new quarters introduced every year.

Collecting Washington quarters. 1998 saw the last year the Washington quarter was minted. This is an opportunity for YNs to collect a series of coins that it is no longer produced by the US Mint.

Collecting $1 currency notes. With the introduction of the $1 coin next year, it is highly possible the $1 currency will be phased out. Now is the time to collect examples of the $1 currency notes by signature and type at very affordable prices for the YN. Another opportunity for YNs.

We concluded the meeting with a discussion of other areas of coin collecting the YN should explore. In the coming months, our future YN meetings will be concentrating on the area of "Errors and Varieties". While it may not possible today for a YN to get that buffalo nickel, mercury dime, or Indian penny from loose change... it certainly is very possible for that YN to find "error and variety" type coins and currency. Meantime that buffalo nickel, mercury dime, or Indian penny has known to be given out at our YN meetings as free coins for their collections.

Remember that we have two meetings every month. The membership meeting... for all of our members (including the YNs).... on March 3rd. The next YN meeting on Friday, March 12th.

See you at both meetings........

        Larry Nakata.

1902 $5 National Bank Note / New York City

 

THE EVOLUTION OF U.S. PAPER CURRENCY
by Larry Nakata (Member #41)

 

While browsing the Internet, I came across quite a bit of information on the subject of paper currency. So much information was on the Internet that I thought I would pass on some of these tidbits in this month's article.

Several WEB pages had sections on frequently asked questions about collecting paper money. One frequently asked question was about the kind of paper money that a person can collect. Among the different types listed were:

$10 Second Charier National Bank Note Front

The next most commonly asked question was "what is the best way one can get started in collecting paper currency? Knowing your local coin dealer is certainly the best way to get started in the right direction. A number of WEB pages recommend that, as one becomes more sophisticated in collecting paper currency, knowledge is important. Subscribing to a magazine such as the Bank Note Reporter was highly recommended. This is a monthly magazine for paper money collectors and is a very good source of information. Your local coin dealer should be able to get you a subscription. Some of our local coin dealers even sell the monthly magazine at their shops.

On the subject of knowledge, a frequently asked question was about good reference books for collecting paper money. Among the reference books suggested were:

"Standard Catalog of United States Paper Money" by Chester L. Krause and Robert F. Lemke. Cost about $22.

"Standard Catalog of World Paper Money / General Issues" by Albert Pick. Cost about $55.

"Standard Catalog of World Paper Money / Special Issues" by Colin Bruce II and Neil Shafer. Cost about $55.

"Standard Catalog of Modern World Paper Money" by Colin Bruce II and George S. Cuhaj. Cost about $30.

"Standard Catalog of United States Obsolete Bank Notes" by James Haxby. Cost about $195.

"Confederate States Paper Money" by Arlie R. Slabaugh. Cost about $13.

"Confederate and Southern States Currency" by Grover Criswell.

"Early Paper Money of America" by Eric P. Newman. Cost about $50.

"Paper Money of the United States" by Robert Friedberg.

"Comprehensive Catalog of US Paper Money Errors" by Frederick Bart.

A number of these books are already reference books at the Loussac Library. (Editors Note: Our club donated many of these books). If you desire to purchase these books, see your local coin dealer.

How does one grade the condition of paper money?

Here is where knowledge becomes important. There is your local coin dealer.

Magazines like "The Bank Note Reporter" is a good source of such information. There are reference books as listed above that go into this subject. Of course...being a member of a local coin club also helps...  since you can communicate with other coin club members who collect paper currency. The Internet also has good information.

One may ask, "How best can I access WEB sites that cover the subject of paper currency?" One way would be to do a search on a WEB page search engine, such as Yahoo http://www.yahoo.com under the category of "paper money". Or...go to the ANA's WEB site http://www.money.org who's WEB page has many links to other Numismatic WEB pages on the subject of paper currency.

How should you store paper currency? Our coin dealers have special inexpensive Mylar holders that are specifically used for storage and display of paper currency. The plastic used on Mylar holders do not have PVC compounds which can deteriorate your paper currency. Most plastics contain PVC which can release acids and gases which can migrate into your paper currency resulting in a note that looks like it was soaked in oil or may turn brittle when touched. So stick to the Mylar holders which you should get from your local coin dealer. Such notes should also be stored away from direct sunlight to avoid fading on the note. Do not use any type of tape to try and repair a note... as it would leave a permanent stain on that note.

$10 Second Charier National Bank Note

$10 Second Charier National Bank Note Back

Is it illegal to copy US paper currency? A good question. The WEB pages I browsed indicated it is indeed illegal to make color copies of any kind of US small sized notes- These notes may only be copied in black and white and must be larger than 150% of the note size.... or less than 75% of the note size. Large sized notes (such as the "horse blankets") may be copied in color as no official regulations have been issued on these older notes. It is advised that to be on the safe side.... use the 150-75 formula set up for black and white copies.

Are old US notes still legal tender? Yes. All of the notes issued by the US government is still honored by the US government. Of course... one has to ask the question as to why a collector would even consider using an older series note in a face value transaction.

1922 $20 Gold Note

1922 $20 Gold Note

What is the role of the Federal Reserve Banks in our paper currency? Currently, all circulating US paper currency are Federal Reserve Notes. The Federal Reserve Banks control the issue of US paper currency throughout the economy. These banks were created in 1913 for this purpose. Today there are some 12 Federal Reserve Banks around the country. Each Federal Reserve Note has a letter (found inside a circle on Federal Reserve Notes) and associated number which identifies the bank it came from:

What is a watermark? A watermark is a design that is within the paper of the note. This watermark can only be seen when viewing the note with a strong light behind it. Such watermarks have been used over the years as a very effective anti counterfeiting device.

Whose portraits are on the various US current banknotes?

  • $1 George Washington
  • $2 Thomas Jefferson
  • $5 Abraham Lincoln
  • $10 Alexander Hamilton
  • $20 Andrew Jackson
  • $50 Ulysses S. Grant
  • $100 Benjamin Franklin
  • $500 William McKinley
  • $1000 Grover Cleveland
  • $5000 James Madison
  • $10,000 Samuel P. Chase
  • $100,000 Woodrow Wilson

"How do you get banknotes from foreign countries?" and "How do I get Confederate bank notes?" Your best source is your local coin dealer. There are occasional coin shows in your local area that can also be source for the collector. At such shows, other coin collectors and dealers set up their tables and sell both coins and currency. There are the coin magazines and dealers who sell through the Internet. In such cases, look carefully at their return policies should you not be pleased with the item received. It's best to view the paper currency first if possible before buying.

$20 State Bank Note Louisiana 1800s

$20 State Bank Note / Louisiana / 1800s

Such were the questions frequently asked on collecting paper currency. For the person wishing to get into this type of collecting, my recommendation is that you first go see your local coin dealer. After that it becomes a matter of improving your knowledge in the area of paper currency.... and the degree of sophistication you wish to achieve in your paper currency collection. Hope this article helped you..........

        Larry Nakata.

 

 

OTHER TIDBITS ON US PAPER CURRENCY
by Larry Nakata (Member #41)

In my continued efforts this month in browsing the Internet, I was seeking more information on US Paper Currency. In browsing the US Bureau of Engraving and Printing's (BEP) WEB Page: http://www.moneyfactory.com , I came across more interested tidbits on US paper currency.

1861 $50 Confederate Note

1861 $50 Confederate Note

Did you know that currency notes above $ 100 denominations are not available today? On July 14, 1969, the Dept. of Treasury and Federal Reserve System discontinued currency notes in denominations of $500, $1000, $5000, and $10,000. Reason given was lack of use by the general public. Those remaining notes (much of which are probably in the hands of collectors and coin dealers) are still legal tender and can occasionally be found in circulation by those lucky few who come across them. Such notes today command a premium price.

Star Notes: There are occasional questions by collectors as to what is a star note. When an imperfect note is detected during the manufacturing process by the BEP, the note must be replaced. Having to replace the note with the exact serial number is costly. So...the BEP replaces that note with a "star note" which has it's own special serial number followed by a star.

Did you know the BEP produces 38 million notes a day worth approximately $541 million?! Of those notes, 95% are used to replace notes already in circulation. Some 48% of those notes produced are $1 notes. This interesting statistic is probably a good reason why we are seeing the introduction the $1 coin in the year 2000.

When did the BEP start making paper currency? 1862 when a shortage of coins resulted in the Federal government issuing paper currency to finance the Civil War.

1922 $100 Gold Certificate Note front

1922 $100 Gold Certificate Note front

1922 $100 Gold Certificate Note back

1922 $100 Gold Certificate Note back

What is the average life of a Federal Reserve Note?

For the $1 note: 18 months

For the $5 note; 2 years

For the $10 note: 3 years

For the $20 note: 4 years

For the $50 note: 9 years

For the $100 note: 9 years.

Note the life of the $1 note and the introduction of our $1 coin in the year 2000.

"In God We Trust" became part of the design of US paper currency in 1957 and has appeared on all currency since 1963.

What is the largest note ever printed by the BEP? It is the $100,000 Gold Certificate, Series 1934. These notes were issued by the Treasurer of the United States to the Federal Reserve Banks. These notes could only be used against an equal amount of gold bullion held by the US Treasury..... and were used for transactions between the Federal Reserve Banks. These notes were not intended for circulation to the general public.

What are WEB Notes? The BEP has been experimenting with new WEB presses since 1988. These presses use a continuous roll of paper, rather than the individual sheets used in the regular presses. Normally, the regular notes have plate check numbers usually consisting of a letter followed by up to a 4 digit number (located on the lower right portion of both the front and back of the note). On WEB notes, the plate check number is replaced with a two digit number located on the upper right side of the note.

Martha Washington is the only woman whose portrait has appeared on a US currency note. Her portrait appeared on the face of the $1 Silver Certificate of 1866 and 1891. Her portrait also appeared on the back of the $1 Silver Certificate of 1896.

Hope you liked these tidbits of information on US paper currency. Browsing the Internet does provide a lot of great information for the collector.......

        Larry Nakata.

1928 $500 Federal Reserve Note

1928 $500 Federal Reserve Note front

1928 $500 Federal Reserve Note back

1928 $1000 Federal Reserve Note front

1928 $1000 Federal Reserve Note back

1928 $1000 Federal Reserve Note

Chief Editor's Note: I came across this interesting "Money Talks" article in the ANA's WEB page. It's a pretty good article on the beginnings of paper currency.

 

 

MING PAPER MONEY
by
Gerald Tebben

How old is paper money? Well, it's not quite as old as gold, silver, and copper coins - which have been used as money for more than 2,700 years. But as your grandma might have put it... it's no spring chicken, either.

Paper money is believed to have been invented in China during the 7th century. The famous traveler, Marco Polo, told a disbelieving Europe about paper money during the late IS"1 century. He wrote that the great Kublai Khan of China, "may truly be said to possess the secret of the alchemists, as he has the art of producing money." Kublai Khan did that by impressing his vermilion seal on large sheets of course mulberry paper.

Most old Chinese paper money still in existence today dates from the beginning of the Ming Dynasty, a century after Marco Polo's incredible journey. Besides dragons and intricate designs - the bills pictured the number of coins they were worth 600 years ago...and told everyone who handled them that counterfeiting was punishable by death.

These bills owe their existence to an accident of history. Sometime during the late 1300s - a cache of about a thousand bills, along with a quantity of gold and silver, were hidden inside the base of a statue in a temple in Beijing. The treasure remained undetected for more than 500 years. Then, during the Boxer Rebellion in 1900, British soldiers discovered the cache while looting the temple. They took the gold and silver, and left the notes behind as worthless trash. But an American surgeon one of 2,500 Americans sent to help put down the rebellion saved the bills from destruction.

While these bills are scarce, few people collect them. Today, Ming Dynasty bills in good condition sell for only about $100........

        Transcript #1295 / September, 1997

1915 $10,000 Gold Certificate

1915 $10,000 Gold Certificate

 

 


The Anchorage Coin Club
 

Meetings:       Membership meeting - First Wednesday of the month, 7:30 PM
                        E-Board meeting - Third Wednesday of the month, 7:00 PM
                        Meetings held at the Central Lutheran Church, at the corner of 15th and Cordova

 

Club Officers

President-                    Roy Brown          Days: 563-6708
                                                                    Eves: 243-5732
V. President-                John Larson       Eves: 276-3292
Treasurer-                      Robert Hall        Eves: 561-8343
Secretary-                   Larry Nakata        Days: 269-5603
                                                                    Eves: 563-1729

Editors -                     Loren Lucason
                                    Larry Nakata
                                    Robin Sisler
                                    Mike Nourse
                                    Jim Susky
Club Archivist / Photographer - Robin Sisler

Board of Directors

Ann Brown-                      Days: 563-6708

Bruce Gamble-               Eves: 345-6273

Mike Orr-                         Eves: 522-3679

DUES

To save costs, members not responding to renewal notices within 3 months will be considered inactive.

The Anchorage Coin Club is a non-profit organization formed to provide information, education, and a meeting place for individuals having an interest in numismatics.

Correspondence Address: Anchorage Coin Club, P.O. Box 230169, Anchorage, Alaska 99523