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North Carolina Obsolete Banknotes RALEIGH COIN CLUB NNeewwsslleetttteerr Established in 1954 February 2004 In This Issue North Carolina Obsolete Banknotes By David Boitnott ARTICLES North Carolina Obsolete North Carolina's numismatic history prior to the Civil War is Banknotes quite rich indeed. North Carolina was the site of the first US Numismatic Events documented discovery of gold in the newly formed United For February States (1799) and was the largest domestic producer of gold The Three Dollar Gold Piece in the US until 1849. It was home as well to perhaps period is now referred to as the Thomas Alva Edison the most successful of the obsolete or broken banknote US Commemorative Coin private minters — the Bechtler period of United States paper family. And, in 1838, the first money. It is considered obsolete Royal Canadian Mint United States coinage struck because the federal government Releases 2004 outside of Philadelphia was began printing its own paper Commemorative Silver Dollar completed at the branch mint in money during the Civil War in Charlotte. But this numismatic the north and then passed laws history prior to the Civil War in the aftermath of the Civil War REGULAR FEATURES would not be complete without that made it very difficult through President’s Message the telling of the story of the high taxation for the private paper money that circulated in printing of paper money to the state at the time. continue. All paper money Club Business printed prior to 1866 is obsolete. Before the Civil War, our federal It is sometimes also called the Show Calendar government did not issue paper broken banknote period money like we are familiar with because many of the banks that North Carolina Numismatic Showcase today, it issued only coins. The issued these notes failed. constitution forbid the states from coining or printing money, Of the twenty-one state but the same loophole which chartered banks that issued allowed the Bechtlers to paper money in North Carolina, establish their private mint also all failed. This sad state of allowed private banks and affairs was not due to corruption companies to print their own or mismanagement but instead paper money. This interesting See NC Obsoletes on Page 4 Raleigh Coin Club Newsletter February 2004 Club Business Page The Raleigh Coin Club January Meeting Notes Editorial Address: PO Box 354 Seventeen club members and two guests Morrisville, NC 27560 attended the January meeting of the RCC. [email protected] Kent Woodson provided the Treasurer’s Business Address: PO Box 18801 Report, and reported that the club treasury totals Raleigh, NC 27619 $12,362 across all accounts. Kent indicated that a few minor expenses for 2003 still need to be paid, but no major outstanding liabilities exist. Club Officers Paul Landsberg expanded upon his “President’s Message” in the January newsletter by President Paul Landsberg leading a discussion of ways in which to expand Vice President Harry Corrigan RCC membership. Paul indicated that he had sent Secretary David Provost out a club mailer to a small subset of the database Treasurer Kent Woodson generated from our last show as his first Sergeant-at-Arms TBD membership initiative for 2004 — one of the night’s visitors resulted from the mailing. Paul stated that Directors (Term Expiration) he planned to launch a different initiative each Dot Hendrick (2004) month in an effort to attract new members from as David Boitnott (2005) many different sources as possible. Halbert Carmichael (2006) Dave Provost initiated a discussion regarding the club’s 50th anniversary in 2004. Several ideas were discussed, including a commemorative medal. Club Affiliations Bob Schreiner suggested holding a contest for the medal’s design. An informal vote indicated that American Numismatic Association club members were interested in pursuing the Member #C-79478 medal idea. Dave P. agreed to explore options for the club and to report back at the February Blue Ridge Numismatic Association meeting. BRNA Member #C-3383 Eastern States Numismatic Association Dave P reminded members that the club ESNA Member #0026 (Life) newsletter is available in full color via PDF file sent North Carolina Numismatic Association through email and encouraged members to receive NCNA Member #C-14 (Life) it that way to get the full impact of the images included in each issue. The Bid Board was set up and featured a nice Contents Ó Raleigh Coin Club 2004 selection of US and world material. While not all of The RCC grants permission for the reprinting of any the offered items sold, a fair number of numismatic article contained herein (except for those already collectibles exchanged hands! copyrighted by the author) for non-profit educational purposes provided that the RCC Newsletter and the original author are cited as the source for the See Meeting Notes on Page 3 material. Page 2 Raleigh Coin Club Newsletter February 2004 President’s Message Meeting Notes Continued from Page 2 Hello and welcome to February!!! Show-and-tell items included a polymer note Snow and cold and cold and snow…sounds like from Brazil (Alex L); several error coins, including a a great time to start a fire, pour a cup of your pair of “after-market” rotated die Kennedy half favorite brew and enjoy your coins. Hey!! Like dollars (Roger B); a ten-cent note and a $10.00 hard core collectors need any excuse. note from NC (Leon); several coins and medals struck by the Paris Mint (Dave P); and a Persian Numismatically speaking, January was a good siglo from 450-400 BC (Paul L). month for me. Through the oddest of coincidences I scheduled a five-day family weekend up in New The evening’s program was “Colorized and York City at precisely the time of the New York Holographic Coins of Canada;” it was presented by International show. I only got to spend five hours at Dave P. In addition to a slide set, Dave also the show but a fantastic five hours it was. The brought a selection of the pieces for hands-on most eye popping event at the show for me inspection. The holographic pieces garnered the happened as follows: I stopped by a high-end coin highest praise of the pieces available for viewing. dealer who I very very rarely buy coins from. One piece on display was magnificent. A late Roman Pail L. volunteered to bring the refreshments for silver coin, it was at least as large as a US quarter February. and in at least VF condition. Shaking with fear of dropping such a coin, I viewed both sides. I had to ask — just had to — “How much?” Answer: 22K$. OUCH!! SHOW CALENDAR Feb 13-15 Charlotte, NC To complete this journey into the stratosphere Charlotte Coin Club 34th Annual of ancient coin collecting, I noticed a bronze right next to this piece. It was equally breathtaking but Show in different ways. A stunning coin, high grade, and Merchandise Mart from an extraordinarily scarce empress. The only 800 Briar Creek Road answer I got to “how much” was “more, much more.” I guess “brother can you spare a dime” Feb 21-22 Burlington, NC doesn’t even begin to address this situation. Heart of Carolina Coin and Paper Money Show Enough rambling!! As I spoke of last meeting, I hope that we can attract some new visitors to the Best Western Hotel meeting and we will once again make a special Exit 141, I-40/85 effort. I would also like to find out if we can get sufficient volunteers together to man a “Raleigh Mar 6-7 Raleigh, NC Coin Club” booth at the flea market for one or two Carolina Coin & Stamp Show days in order to reach out to coin, currency, and NC State Fairgrounds medal collectors. Please consider if you are able to Holshouser Building spend a few hours some time in March. As always, share some recent acquisitions or Mar 12-14 Baltimore, MD even just some interesting items in your collection Baltimore Coin & Currency for our monthly “Show ‘n’ Tell.” Convention Baltimore Convention Center See you at the meeting!! Page 3 Raleigh Coin Club Newsletter February 2004 North Carolina Obsoletes Continued from Page 1 due to patriotism. North Carolina was rich in gold In 1810, the General Assembly chartered a prior to the Civil War and its banks were financially bank in Raleigh called the State Bank of North strong. The state in 1861 cast its lot with its Carolina. Although a private bank the state did southern neighbors and joined the Confederacy. hold stock in this institution. It operated until the With the outbreak of hostilities that year the need 1833-1834 General Assembly chartered the Bank for hard money to finance the war effort was felt of the State of North Carolina to replace it. This throughout the south. When the war did not end bank operated with branches in Charlotte, Elizabeth quickly as everyone had hoped the drain on City, Fayetteville, Milton, Morganton, New Bern, southern wealth accelerated. The banks transferred Taraboro, Wilmington, and Windsor until it too was their hard money and gold to the state and replaced by the General Assembly in 1859. Many Confederate governments to be used to procure of its notes are only know from the backs of Civil war supplies from Europe, in exchange for war War issue state notes and bonds. The next iteration bonds. As the war dragged on for four long years of this institution was The Bank of North Carolina the south was not only bankrupted of its young men chartered in 1859. The branches from the previous but also its wealth so when the surrender finally entity were kept except for the closure of the came the banks were left holding worthless paper Elizabeth City branch and the opening of one in issued by a defeated government.
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