Return to Alaska Coin Exchange homepage

Return to ACCent homepage


ACCent: The Monthly Newsletter of the Anchorage Coin Club

ACCent Header


Volume 19, Number 2

February 2006

February Membership Meeting
Wed., Feb. 1st, 2006 Central Lutheran Church

7:15 PM Meeting


 

FROM YOUR EDITORS

     Lots of things to look forward to in Year 2006.

With the coming of a new year, we now have a new website for the Anchorage Coin Club.

Our club’s new URL address is:

http://www.alaskacoinexchange.com/Accent/Accent Index.htm

Your editors ask that all of you take a look at the new webpage. Special thanks go to coin club member Mike Nourse for taking on the role of webmaster for our club’s website.

The new year also brings the Anchorage Coin Club’s new $2 trade token. At our club’s January 4th meeting, a set of  these tokens were given out as the door and membership prizes. Winners of the first issues of these tokens were Howard Wright and Jim Hill. See the “A Message From Your President” section of this newsletter on the details.

The January 6th membership meeting saw Larry Nakata giving a great presentation on “Hawaiian Coinage and Currency”.  The presentation was rich in history and how the coinage and currency evolved from the Kingdom of Hawaii to present day. See Larry Nakata’s article in this month’s newsletter.

Anchorage Coin Club Year 2006 Token #1

Our January 6th membership meeting also saw a new program proposed by Loren Lucason. It’s innovative (see Loren’s article- The Coin ID Game” -on the details of this program).

Anchorage Coin Club Year 2006 Token #2

A reminder to all of our club members that elections for new officers will be held at our March 1st membership meeting. We need good people to serve. The success of our coin club depends upon participation by all of you in our club’s processes. Year 2006 sees our coin club in its 18th year of existence. Your editors want to point out that when the Alaska State Quarter comes out in Year 2008, the Anchorage Coin Club will reach it’s 20th Anniversary. Give some thought as to programs our club should implement as we approach that key point in time.

Kudos go to Roy Brown in adding five new members to our coin club in the last month.

Our next club meeting will be on February 1st (the first Wednesday of the month) at Central Lutheran Church (7:15 PM). Club member Stan Mead (who also serves as an appointed commissioner to the Alaska Commemorative Coin Commission) will be giving a presentation on the present status of the Alaska State Quarter program and how our coin club members can help in promoting this program.

See you at the meeting……Your Editors.

 

Schedule of Events for the Month of February
 

  1.  Monthly Membership/YN Meeting: February 1st (Wednesday) at 7:15 PM at the Central Lutheran Church (downstairs meeting area). Stan Mead will be giving a presentation on “The Present Status of the Alaska State Quarter Program”.  There will be a bullet auction of no more than 15 numismatic lots. Members, YNs, and general public welcomed. Refreshments provided.
  2. Anchorage Coin Club Board Meeting: February 15th (Wednesday) at 7:00 PM at the New Cauldron Restaurant located at the University Center. Club members welcomed.  

 

Minutes of January 18th Board Meeting

The Anchorage Coin Club Board meeting was called to order at 7:20 PM by club president (Carl).

The Board met at the New Cauldron Restaurant located at the University Center .

There was no correspondence to be reviewed at this meeting. 

Larry Nakata requested that a check be cut for $300 to Central Lutheran Church for use of their facilities for our club meetings. A donation of $25/meeting is requested by Central Lutheran Church for use of their facilities. The Board accordingly approved this expenditure based upon the number of meetings held in the last year.

There was no Old Business for discussion at the Board meeting.

On the matter of New Business, Secretary Larry Nakata stated that new elections must occur at our club’s March 1st meeting. An official announcement will be posted in the next club newsletter.

Bill Hamilton has found a supplier of display cases that will sell them to our club at $35/case plus freight. Bill is presently looking at the freight costs. These display cases will be needed for future Anchorage Coin Club coin shows. Last year, the Board set a goal of securing 45 such cases (as the club can afford) over a period of time.

The Board discussed having a combined Seminar/Coin Show/Auction event as a major project for this year. It was proposed the event be held in September. It will be necessary to make a determination of what subject matter will be covered in the seminar. At our February 1st club meeting, our president (Carl) will query club members on recommendations.

The final subject on the matter of New Business was a discussion on how our club can make improvements to the YN Program. The Board would like to see an increase in the YN (Young Numismatists) membership for Year 2006.

The Board would like to give special thanks to Mike Nourse on volunteering his time in becoming webmaster for the Anchorage Coin Club’s new website.

The Board would also like to give additional thanks to Roy Brown is adding five new members to our coin club in the last month.

It is efforts by members like Mike and Roy that will ensure the continued existence and success for the Anchorage Coin Club.

As there was no further business to discuss, the meeting was adjourned at 8:20 PM.

 

ANNOUNCEMENT OF ELECTIONS FOR ANCHORAGE COIN CLUB

On March 1st elections will be held for the following Anchorage Coin Club positions:

Our club’s bylaws require that such elections be held every year at our March club meeting by those members in attendance.

We are looking for good people to run for these respective offices. Interested members can contact any one of our club officers or make your intentions known at our club meetings in February and March.

We are looking for good people willing to volunteer their time and efforts….Your Board.

 

1847 Hawaiian "Kaneta" (Cent)

 

A MESSAGE FROM YOUR PRESIDENT

    We have an exciting new announcement to make for the start of the New Year. The Anchorage Coin Club now has its very own official Alaska $2 trade token. Custom minted and struck in solid copper, they are in proof-like condition. There are two separate obverse designs- the 1933 St. Gaudens and the 1793 Liberty cent….hence two different tokens. The tokens sell for $2 each and are available directly from the Anchorage Coin Club. These are nice quality tokens with a classic coin design. These are sure to become very collectable. Of all the tokens in the world, Alaska tokens seem to be the most popular and sought after types.

At the Board meeting, we had a discussion about the need for more YNs at the club. We decided the club should take an active effort to reinvigorate the YN program. We are urging all members to increase attendance with future potential YNs to our monthly coin club meetings. We are not currently having separate YN meetings since the YN attendance has been sparse. We need to correct that situation. Currently we are combining the YN and Membership meetings as one meeting each month.

It is our goal to have a thriving YN Program with regular meetings and activities in the Anchorage Coin Club as we have in the past. YNs are the most important part of any coin club as they are the future of that club. Without them there will be no future. Introducing children into coin collecting is very beneficial in many ways and can be a positive experience for both the individual and the club.

The Anchorage Coin Club is an excellent family oriented place for everyone to enjoy numismatics.

So please….for the benefit of all YNs and the club itself, let us increase club participation.

Your friend in Numismatics…..Carl.

 

1883 Hawaiian "Dala" (Dollar)

 

THE COIN ID GAME

    This is not a game.  Each member will be given a coin in a 2x2 stamped with “ANCHORAGE COIN CLUB”. If that coin is brought to a club meeting by a non-club member, the member will be given a ticket in the gold coin raffle drawing to our club’s Christmas Party. If the person who brings in the coin has the coin ID’ed they will also be given a ticket in that drawing.

Many many more people are getting into coin collecting but few people know that this club even exists. The Coin ID Game will be one of our ways of getting our name out there. A way of telling people that there is a place to learn about coins and coin collecting. The coins will all be from foreign countries. That should give potential members an introduction to the world of numismatics as well as give them a challenge they should enjoy taking on.

It does not matter how the non-members get the coin ID’ed. Whether they talk to collectors or look it up in the library. An introduction to the sources of coin info is an important part of the game. This is not just a game of you ID’ing coins to win the gold. This is about introducing new collectors to the Anchorage Coin Club. And about you winning the gold……Loren.

 

ALASKA COMMEMORATIVE COIN COMMISSION
From Stan Mead (Member #64)

    The Alaska Commemorative Coin Commission’s website is:

http://www.commerce.state.ak.us/alaska_coin.htm

The January 5th, 2006 meeting started off by discussing the State of Alaska press release for the start of the narrative concepts for the Alaska state quarter. As most of you never heard the press release, well….neither did the commissioners. The state press release was done by posting the information in a state website on December 14th, 2005.

During the meeting it was agreed that the commissioners needed to take care of their own districts to get the information out.

1879 Kingdom of Hawaii $100 Note - Obverse

For my part, I have been in contact with the Anchorage Daily News (Rose) who did a small article on January 10th in the Community Events section. Rose said that she would try to do another larger article covering the events of the Alaska State quarter.

I tried contacting Channel 11 and finally got an answering machine asking me to leave a message as the person was on leave for another two weeks. Channel 13 seemed very interested in the information and said that they would see what could be done. I told Channel 13 that the least I expected was for them to post it on their website. Channel 2 ran a newscast on January 16th covering the events of the Alaska State Quarter.

I have been in contact with the Anchorage School District which seems to be heading in the right direction at this time.

I also tried contacting the Boy Scouts, Girl Scouts, Boys and Girls Clubs…which have not yet returned my calls.

So…I am now turning my direction to the Anchorage Coin Club in helping distribute the information throughout Anchorage, Eagle River, and the Girdwood areas. I have posted information at UAA, the Alaska (Health) Clubs, Roy’s Coins and Collectables, Carl’s, Michael’s, a few credit unions, and a few Carrs/Safeway & Fred Meyers stores.

I have been in contact with State of Alaska officials who will make me 200 to 300 copies of the information and forms. My intent is to brief all of you at our February 1st meeting on the present status of the Alaska Commemorative Quarter program and what you as members can do to help. It is important that our members help to distribute this information to different areas such as churches, stores, shopping centers, social events, etc.

Those without computers can call Patricia Swenson at (907)269-8108 or fax her at (907)269-8425 for a copy of the forms which can be mailed or faxed to you. Official entry forms will also be available to be picked up in the offices of the Dept. of Community, Commerce, and Economic Development (DCED) located at 550 W. 7th Ave, Suite 1700/ Anchorage, AK  99501……Stan Mead.

 

1879 Kingdom of Hawaii $100 Note - Reverse

 

THE HISTORY OF HAWAII’S COINAGE AND CURRENCY
By Larry Nakata (Life Member #3)

    At our club meeting on January 6th, I gave a presentation on the history of Hawaii’s coinage and currency.  Since a number of members were not able to attend the meeting, I am following up with this article.

Let me begin by saying that Hawaii’s coinage and currency begins with the establishment of the Kingdom of Hawaii under King Kamehameha I. After Hawaii was discovered by Capt. James Cook (of England) in 1778, other countries would soon visit and try to exert their influence. This (the 19th century) was the “Era of Imperialism” when the major industrial countries of that time were building their colonial empires.

Prior to this discovery, “barter and trade” of goods was used in Hawaii. Following the discovery, exportation of sandalwood (1800-1820) as a commodity, and later whaling (1819-1860) would result in the use of silver and gold coins from other countries trading with Hawaii.

With the help of the United States, King Kamehameha I was able to conquer and unify the islands into one kingdom. This was made possible with the use of warships and cannon. As a result, the U.S. would have the “upper hand” in Hawaii’s politics in the years that follow.

Following the death of Kamehameha I in 1819, his son (Liholiho), also known as Kamehameha II, allowed missionaries from the U.S. to settle in Hawaii. These missionaries would intermarry with the Hawaiian royalty and establish large plantations throughout the islands as the new economic base.

In a large plantation based economy, a stable form of coined money becomes important. At that time what was only available was the use of silver and gold coinage from foreign countries. The problem was that there was a limited supply of such coinage. These plantations needed a form of money to pay their workers. Requirements called for a form of money of low denomination (under $1). Local wages at that time was 12 & ½ cents per day to the worker.

In answer to this problem the plantations started issuing paper scrip that could be exchanged for goods at the local company store by the workers. The first such scrip was used in 1837.

 

Republic of Hawaii 1897 $5 Note - Obverse

 

The next king of Hawaii, Kamehameha III (1825-54) would try and rectify this problem by providing for a Hawaiian Monetary system. In 1846, Kamehameha III set the guidelines for the monetary system based upon the American dollar and decimal coinage system. The equivalent of the American cent was called the “kaneta” (or cent) with 100 “kanetas” equivalent to one “dala” (the Hawaiian term for dollar). Kamehameha III then had a private U.S. firm (the firm that made Hard Time Tokens in the U.S.) mint 100,000 kanetas with his image on the obverse side of the coin. The mintage year on these kanetas was 1847. The “kaneta” never was popular and, therefore, was not accepted by the local workers, who felt the coin was ugly and disrespectful of their king. It’s failure to become a successful coin delayed implementation of Hawaii’s silver coinage. After 1862, the Royal Hawaiian Treasury ceased distribution of these kenetas. By 1884, the 6th king of Hawaii, King Kalakaua (1874-1891) would take away the legal tender status of this coin. By this time, plantations had moved to the use of store tokens in place of scrip.

As privileged royalty, educated in the best universities, King Kalakaua proved to be a renaissance ruler, who understood the importance of maintaining the autonomy of his kingdom during the “Era of Imperialism”. Having your own country’s coinage and currency was a form of national identity which makes a statement that “I am my own country.”

Understanding the unpopularity of the kaneta…besides demonetizing the kaneta, King Kalakaua took a series of measures to create the Kingdom of Hawaii’s coinage and currency. Among those measures was the creation of the Kingdom of Hawaii silver coinage. Charles Barber, of the U.S. Mint, designed patterns for

The decision was made to eliminate the 5 cent and 12 & ½ cent denomination coins from circulation. So in 1883, silver coinage in the remaining denominations were released for use in the Kingdom of Hawaii. Some patterns and proofs in the 5 cent and 12 & ½ cent denominations still survive today and command very high prices in the numismatic market.

In 1879, King Kalakaua also moved forward with the Kingdom of Hawaii’s paper currency. Printed by the American Bank Note Co, this currency (issued as Certificates of Deposits) came out in $10, $20, $50, $100, and $500 denominations. This paper currency was backed 100% by deposits of gold and silver.

Upon King Kalakaua’s death in 1891, his sister Queen Liliuokalani assumed the “mantle of the throne” as the last ruler of the Kingdom of Hawaii.

By 1891, the power of the plantation owners rivaled that of the ruler of Hawaii. Queen Liliuokalani proved to be a determined ruler who, upon assuming the throne in January, 1891, took a series of measures to consolidate her power by revamping the Constitution of the Kingdom of Hawaii. This disenfranchised the plantation owners, who constituted the economic base of the Kingdom of Hawaii.

 

Republic of Hawaii 1897 $100 Note - Obverse

 

Two years later, these owners would overthrow the Constitutional Monarchy (January 16, 1893) with the help of the U.S. Foreign Minister to Hawaii (John Stevens). It is interesting to note that on the day of the coup, the U.S.S. Boston was anchored in Pearl Harbor. The U.S.S. Boston subsequently landed a small force of troops. The leaders of the revolution then marched to Iolani Palace (in Honolulu), arrested Queen Liliuokalani, and then later forced her to abdicate the throne.

To make sure the Kingdom of Hawaii would not come back into existence, a provisional government was set up and in May 30, 1894, the Republic of Hawaii was established.

By Act of Congress in 1898, Hawaii was then annexed with sovereignty relinquished to the United States. In 1900, Congress then formally made Hawaii a “Territory of the United States”. Until 1900, Hawaii continued to function as the Republic of Hawaii….the only difference being that sovereignty was under the control of the United States.

The Kingdom of Hawaii coinage continued to be used through 1898 (annexation), and was slowly replaced with U.S. coinage (following annexation). In 1903, President Theodore Roosevelt demonetized the Kingdom of Hawaii’s coinage by Act of Congress. The silver coinage was subsequently redeemed for U.S. coin…..with the redeemed coins melted down.

In 1897, steps were taken by the Republic of Hawaii to replace the Kingdom of Hawaii’s paper currency with those of the Republic of Hawaii. This new paper currency were in the form of Silver and Gold Certificates of Deposit, again backed 100% by silver and gold. Printed by the American Bank Note Co., this paper currency came out in $5, $10, $20, $50, and $100 denominations. In 1905, this currency would be demonetized (again by Act of Congress )with all paper currency redeemed in favor of U.S. paper currency. The redeemed notes were subsequently destroyed and burned.

Upon becoming a Territory of the United States in 1900, U.S. coinage and paper currency would replace and dominate in the Hawaiian economy.

During the latter 19th Century and early 20th Century, we see the circulation of U.S National Currency, in which the name of a local bank and its charter number would be printed on the face of the note by the U.S. Bureau of Engraving and Printing (BEP). The requirement was that the local bank must have on deposit 90% of the value of the note in the U.S. Treasury….in the form of U.S. bonds. Upon becoming a territory in 1900, National Currency Notes were allowed to the local banks in Hawaii. Such notes circulated until the National Currency program ended in 1929.

There are the Hawaii Wartime Currency Notes (or Brown Seal notes) that were released during WWII when the U.S. government released them for use only in Hawaii. The idea was that if Hawaii was occupied by the Japanese government during WWII, these notes could then be demonetized and rendered useless. That did not happen, and these notes are still legal tender. Such notes came out in $1, $5, $10, and $20 denominations.

In the area of Hawaii coinage following 1900, there is the 1928 U.S. Commemorative Half Dollar, otherwise known as the Hawaii Sesquicentennial, or Capt. Cook Half Dollar. This commemorative coin does command a pretty good price ($2500 in MS60 condition/ Coin Prices- Jan. 2006).

Today, the early 19th century plantation scrip command very high prices in VF to AU conditions (anywhere from $600 to $15,000)….if you can find them. Since such scrip was of low denomination and heavily used, there are very few surviving pieces.

There are a number of 1847 kanetas (cents) that survive today. In VF condition, these kanetas go for about $300-$400.

The Kalakaua silver coinage (10 cent, 25 cent, 50 cent, and $1 denominations) have a number of surviving pieces that can run anywhere from $250 to $750 in XF condition, depending upon the denomination.

If you are lucky enough to find a pattern or proof 5 cent or 12 & ½ cent denomination piece, expect to spend anywhere from $4500 to $30,000 depending on grade.

In terms of the Kingdom of Hawaii and Republic of Hawaii paper currency, expect to pay anywhere from $2500 to $4000 for notes in VF condition….if you can find them.

The National Currency Notes from Hawaii’s banks are more plentiful….the large sized notes going for $500 to $2000 in VF condition….the small sized notes going from $200 to $1500 in XF condition.

Finally the WWII Brown Seal Notes can run anywhere from $35 to $450 depending on denomination and grade.

As you can see, Hawaii’s coinage and currency does have a very rich history. Coins and currency does tell a story about a country and it’s history……Larry Nakata.

References:

 

 

 

 

 


The Anchorage Coin Club

Club Officers

Board of Directors

Editors

Club Archivist/ Photographer

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