World Coin of the Week: The World’s Largest and Heaviest Coinage, Yap Island Stones

By Kent Ponterio, Senior Numismatist and Consignment Director, World and Ancient Coins and Todd McKenna, Numismatist

Yap Island produced the world’s largest and heaviest coinage, most commonly referred to as "Fei" or "Rai" and considered sacred amongst the local people. What essentially amounts to a donut made from a hard calcite known as aragonite was used in the payment of debts, tribute to chiefs, payment for support during times of war and even the ransoming of the bodies of fallen warriors. Often called the key or “Holy Grail” to a primitive/curious money collection, they are difficult to obtain as since 1965 it has been illegal to take the stones off the island. The production of these stones has been occurring since at least the early 1800s and was a truly primitive craft employing almost no metal tools or any kind of explosives to quarry the pieces. This feat of primitive engineering is made even more remarkable when one considers that there is no large source of stone on Yap. The stones were quarried and shaped on the island of Malakal in Palau, then shipped back to Yap on native boats, a trip of almost 250 miles one way! Some of the larger stones took as long as two years to quarry and shape using axes made from giant clams. The trip from Malakal to Yap via boat was a hazardous voyage that claimed many lives. Often the value placed on a stone directly related to the number of human lives lost in order to quarry it and deliver to Yap.

The largest examples are in excess of 12 feet in diameter, weighing about two tons and were not produced until after the introduction of foreign trade ships. Due to their excessive size the larger stones often traded ownership without physically being moved. The larger stones would remain in place as it became common knowledge among the inhabitants that it now belonged to a new owner. Although there are many sizes and shapes of Yap stones, they can be classified into two basic types, pre and post O'Keefe. The earliest stones were produced by the locals using axe heads made from segments of the giant clam and are generally more porous and irregularly shaped. Later stones or "O'Keefe stones" were produced in the late 1800s using metal tools and have smoother planes and are more perfectly circular. David O'Keefe was an American of Irish heritage who came to Yap with tools and a junk boat acquired in Hong Kong which he used to quarry and transport "Fei" from Malakal to Yap. Through this process he set himself up as the King of Yap Island. The 1954 motion picture "His Majesty O'Keefe" starring Burt Lancaster, although somewhat dramatized, fairly accurately portrays this series of events.

In Stack’s Bowers and Ponterio’s upcoming November sale at the Whitman Coin and Collectible Expo in Baltimore we will be presenting a collection of odd and curious money which includes not one, not two, but three Yap Island stones. The trio consists of one pre-O’Keefe specimen which weighs nearly fifty pounds and two smaller post-O’Keefe pieces being six inches or less in diameter. The older native-made stone is an attractive milky white with an oblong shape and rough porous surfaces attesting to its manufacture with primitive tools. The smaller pieces are of course much more uniform in shape, thickness and smoothness and are of a more honey colored calcite. The large stone is exciting for its age and size but I find the inclusion of the two smaller pieces to be a great opportunity for odd and curious money collectors on a budget to snag one of these rare gems. The stones will be available for viewing both at our California office, our New York City office and at the show in Baltimore prior to the sale and should not be missed.

United States Coin of the Week: Amazing Gem Proof 1851 Three-Cent Silver to Highlight November Baltimore Auction

By Jim Matthews, Numismatist and Cataloger, U.S. Coins

The official auction of the November 2012 Whitman Coin & Collectibles Baltimore Expo, to be offered by Stack’s Bowers Galleries, will feature an incredibly rare and important Proof striking of the first year 1851 silver three-cent piece. Only a few Proofs of this issue were coined, although no official records on the mintage exist. Auction appearances are few as well, and apparently just four sales are recorded in the past 140 years.

The surfaces of the presently offered piece are bright silver with a few tiny traces of pale patina and considerable frost on the devices and lettering. The fields are highly reflective with bold mirroring and ample frost on the devices. A partial wire rim is present on the obverse and reverse and the reverse is rotated about 25 degrees counterclockwise. Further diagnostics include a flurry of multiple direction die file marks below the date at the edge of the coin, more tiny die file marks on the reverse on the right middle of the leftmost Roman numeral I (one connecting the top of the middle and right numerals), and a couple of others on the right. All are little more than small die filing burrs that appear in the field at the edges of these numerals in the denomination. This coin, certified Proof-66 by PCGS, is apparently the finest known among a very limited number of survivors, and it is the only example certified by PCGS or NGC. One specimen resides in the Smithsonian Institution, reportedly lacquered heavily, another piece (last seen in 1973) was listed as a stained Proof, and a fourth example sold in our (Bowers and Merena’s) 1980 sale of the Garrett Collection. No other Proof 1851 silver three-cent pieces are even rumored to exist.

The Proof 1851 three-cent silver is of comparable rarity to the famed 1850 Liberty double eagle, of which supposedly just two Proofs are known and which were also struck to launch an important new denomination. While the three-cent silver is at the other end of the size scale from the double eagle, its economic importance should not be overlooked. Our nation’s monetary system was experiencing a period of immense upheaval during the early 1850s. Ships laden with newly discovered California gold were arriving in major Eastern port cities on a steady basis, with one result being a steady reduction in the value of gold relative to silver. Since our nation’s monetary system was based primarily on the value of gold, the relative value and price of silver increased sharply – so much so, in fact, that silver coins soon became worth more as bullion than as circulating currency. This caused large numbers of U.S. Mint coins to be withdrawn from circulation and melted, both by private bullion dealers and the Mint itself. Only a fraction of the silver coins minted during the early 1850s survives today.

One of the first attempts to rectify this imbalance between the legislated gold to silver ratio was the introduction of the silver three-cent coin in 1851 through the Mint Act of March 3 of that year. Struck in an alloy of 75% silver and 25% copper, these coins had a melt value far enough below face value that they could not be melted profitably. Furthermore, hardly any coinage remained in circulation during the early 1850s between the copper cent and the gold dollar, with the result that making change for many monetary transactions was nothing short of a nightmare. Postage rates were reduced from five cents to three cents in that year as well, a further tip of the hat to this otherwise curious denomination. Yet clearly the silver three-cent piece could not resolve the economic situation on its own and much more needed to be done in order to return the traditional silver denominations (half dime, dime, quarter and half dollar) to general circulation. A resolution was reached when the Mint Act of February 21, 1853 reduced the weight of most of the other silver coin denominations, allowing them to circulate freely alongside the silver three-cent piece.

The silver three-cent piece represents the first effort of the United States Mint to rectify the imbalance in the nation’s monetary system created by the California Gold Rush. Failure to complete the task would mean continued hardship for businesses and private citizens alike. The exceedingly rare 1851 certified Proof-66 by PCGS that Stack’s Bowers will be offering in our November Baltimore Auction is an important link to this tumultuous time in our nation’s economic and monetary history.

Remember When: A Numismatic Saga, Part 6

By Harvey G. Stack, Senior Numismatic Consultant

History of Stack’s Numismatic Auctions

Harvey Stack continues his reminiscences and the story of Stack’s, with numismatic traditions dating back to 1858, in its present form founded in New York City in 1933. Stack’s held its first public auction sale in 1935. Today, Stack’s Bowers Galleries is the longest established and most accomplished rare coin firm in America.

Various Phases of Growth

Back in the 1930s and continuing into the 1940s, from our offices at 32 West 46th Street and later, at 12 West 46th Street, we often held our auctions on premises. This provided a familiar and friendly atmosphere for collectors attending, and the recording and billing departments were located in-house. Now and again we would hold sales in the Hotel Pennsylvania as well.

Stack’s further branched out to convention sales for the American Numismatic Association and for local shows such as the annual New York Numismatic show held in New York City and the New England Numismatic Association shows in various New England States. It was always a pleasure to work with the committees and members of these groups.

My uncle, Joseph Stack, was the family auctioneer for several decades. He trained my cousin Benjamin Stack and me to be auctioneers. We learned how to conduct an auction as well as organize a sale. Later on Joseph became a prominent hobby auctioneer. Donald D’Amato co-conducted some of our sales.

For a long time my father, Morton Stack, led the team of catalogers who prepared descriptions ranging from coins of ancient Greece and Rome, down to the latest United States commemoratives, and just about everything in between. These experts included myself, Norman Stack, Benjamin Stack, Shirley Stack (my aunt), and specialists such as Fred Knobloch, Edward May, Hans Holzer, Hans M.F. Schulman, Henry Grunthal, Dr. and Mrs. Vladimir Stefanelli, Cornelius Vermeule, Dr. William H. Sheldon, John J. Ford, Jr., Homer Downing, James C. Risk, George Wyer and many others. Some were staffers, while others were consultants.

I like to think that our numismatic team (past and present) has always been by far the most expert and experienced ever gathered together!

Our auctions from the late 1940s into the early 1960s took place in Steinway Hall, the Great Northern Hotel, and the Park Sheraton Hotel (today’s Park Central). I have mentioned some of these sales and the collectors and collections involved in earlier “Harvey Stack Remembers” articles (see our archived material here on our website)

Over 800 Sales

Stack’s has conducted well over 800 sales under the Stack’s name and our subsidiaries, most prominently Coin Galleries. Our catalogs constitute a vast research library and include just about every rarity in ancient, world, and American numismatics. The catalogs for our series of sales offering the John J. Ford, Jr. Collection -- which in total realized nearly $60 million -- are an unequalled research archive on their own.

By the early 1950s Stack’s had established itself as the leading American auctioneer of rare coins. Now, I can reflect on over three quarters of a century of leadership, and look forward to many years more.

Today, as part of Stack’s Bowers, our gallery remains at 123 West 57th Street, where we’ve been since 1953, recently renovated and updated. We have also expanded our New York City presence to include offices and a private auction gallery in the Directors Guild of America building diagonally across the way at 110 West 57th Street.

I invite you to visit New York City, and while here make Stack’s a pleasant stop on your itinerary. You will be surrounded with a lot of tradition and will enjoy our staff and the selection of items we offer.

Crossing the Block: A Helping of Half Dimes (and Half Dismes)

By Jeff Lubinski, Numismatist

Of the thousands of amazing coins I see each week, these few stood out.  Today’s first coin is a true historical treasure.  According to most sources, the 1792 half disme is considered to be the first coin struck under the Mint Act of 1792 and was praised by President Washington as a small step towards our nation’s monetary future.  The present example is likely one of the most affordable, given its grade of Fine details by PCGS, noting some damage on a code 98.  The coin itself is fairly well struck, though worn, and still bears the prominent S of DISME on the reverse, a unique trait to half dimes and dimes of 1792 (the spelling that is).  The obverse has plenty of eye appeal to make up for the damage on the reverse, and alone, the reverse is certainly acceptable for a coin with fine details.  As this piece is one of an estimated 400 survivors of an original estimated mintage of 2,500-3,000 pieces, I’m sure there will be nice bidding war. Listed as #14 in Garrett’s 100 Greatest U.S. Coins, this will be a true centerpiece of an advanced collection.

Today’s second coin is a 1795 half dime with details in the EF range, though we’ll leave the final say to PCGS.  The obverse is very appealing with traces of mint luster, scattered contact marks and some wear on higher points of the hair.  The reverse displays some typical weakness mixed with wear on the eagle’s breast, as well as some wear along the rim and wreath.  Personally, I find the Flowing Hair design used on the silver coinage of 1794-5 to be one of the most attractive ever produced by the U.S. Mint. This coin would make an excellent addition to a type set of early U.S. or Flowing Hair coinage.

The final coin for today is another half dime, this one bearing the date 1796 and displaying details in the AU range.  There is a little bit of damage noted on the reverse, perhaps traces of a distant brushing.  The coin has been cleaned and wiped though is starting to retone and has appealing flashy surfaces and ample eye-appeal.  This will also be a nice addition to a type set of early U.S. or Bust coinage.

From the Desk of Q. David Bowers: 1793 Large Copper Cents

By Q. David Bowers, Chairman Emeritus

Welcome to my current commentary. Stack’s Bowers Galleries recently announced the acquisition of one of the most marvelous collections we have ever had the opportunity to offer at auction. Formed over a period of years by a discriminating connoisseur, the cabinet consists primarily of scarcities and rarities -- trophy coins so to speak. The initial announcement by the firm showcases a superb Gem 1793 Wreath cent graded MS-69 by PCGS. No other early large copper cent, never mind just 1793, has ever been certified this high by either PCGS or NGC!

This brings me to comment on 1793 large copper cents in general. A glance at the Guide Book of United States Coins will reveal that there are several distinctive varieties from this year. The very first is the Chain cent with AMERI. on the reverse. It seems that the engraver felt that the name of our country would not fit symmetrically and therefore abbreviated it. This was quickly overcome by the next variety, with AMERICA in full, nicely arranged by adjusting the other words as well.

Next came the Wreath cent, the type featured in the recent Stack’s Bowers Galleries announcement. Coins of this design have an incredibly high relief to the obverse portrait and wonderful details in the wreath on the reverse, a masterpiece of coinage art. Wreath cents were made in several different die varieties and with two edge types. Concluding the year 1793 is the Liberty Cap type, the rarest of the three major portraits.

When the small diameter (19mm) Flying Eagle cent was introduced in 1857, replacing the large copper cent, a wave of nostalgia spread across the country. Citizens thought about the history and romance of the large copper cents that had been familiar since childhood days, and many attempted to look through change and acquire as many different dates as possible. At the time these could be found all the way back to 1793, although the earlier issues were apt to be worn smooth. The scarcest date was 1799. Much effort was spent in trying to find pieces dated 1815, which seemed to be rarer than all the others. There were no coin reference books at the time, and hardly anyone knew that no cents had been coined in that year. As interest increased, more and more information about coins began to be published in newspapers, in Historical Magazine (which was established in 1857), and elsewhere. Year by year more knowledge was gained, including in auction catalogs which first appeared on a regular basis in 1858.

The American Journal of Numismatics was launched by the American Numismatic & Archaeological Society in the summer of 1866, becoming the first regularly issued national publication on the hobby. Significant to my comment today, the very first photographic illustrations of American coins to appear in print anywhere were in the American Journal of Numismatics in 1869 -- and featured large copper cents of various varieties, all dated 1793.

As the weeks progressed other landmark coins from this marvelous consignment will be featured in print. The coins themselves will be presented in two auctions, first in our sale with the Whitman Coin & Collectibles Baltimore Expo this coming November, and after that, in our ever-popular Americana Sale to be held in New York City in January.

See you next week!

Crossing the Block: Colorful Coins!

By Jeff Lubinski, Numismatist

I see box upon box of beautiful coins every day, but here are a few colorful Gems that you should keep your eye on!  The first coin today is an 1878 7TF (Reverse of 1878) Morgan $1, graded MS-66 by PCGS, and featuring some prominent and attractive rim toning.  On the obverse from about 10:00-4:00 is a lovely crescent of electric blue which blends into a pleasing goldenrod with hints of violet; the remainder of the obverse rim is primarily blended hues of red and orange.  The reverse is whiter than the obverse, though the edges display a nice golden hue.  Today’s second coin is another Morgan dollar, an 1890-O graded MS-64+ by PCGS and bearing a green CAC sticker.  This coin’s obverse is mostly white though 12:00 features a very pleasing patch of pastel blue blended into sunny yellow and magenta.  The reverse is something else, graced by a metallic black sheen featuring a patch of a surprisingly pleasing oil slick-like pattern of emerald green and fuchsia blended with pastel pink and blue.  In most cases I’m not a fan of oil-slick or black toning, but this coin blew me away when I flipped it over and saw the rich luster hiding behind the nice coloration. 

The third coin is an 1807 Draped Bust half dollar graded AU-58 by PCGS with a green CAC sticker.  The obverse is encircled by an aurora of royal blue and violet mixed with rose and sky blue.  The reverse is predominantly white with hints of the same lovely hues though less vibrant.  The fourth coin is a 1946-D Booker T. Washington commemorative half dollar graded MS-66 by PCGS in a secure holder.  This coin’s obverse is filled with color. Two large areas feature rich solid color: the first a nice rainbow between 11:00 and noon, the other displays dragonfly-like colors—rich violet with metallic green and ocean blue.  The rest of the obverse is speckled pleasantly with splashes of forest green and blue.  The reverse is a bit darker, a side effect of storage in its original packaging for an extended period, though not at all unattractive and still very lustrous.  Finally, we have a 1952 Washington-Carver commemorative half dollar graded MS-67 by PCGS in a secure holder.  The coin is speckled on both sides with bright rich rainbow toning, as if painted by Jackson Pollock. 

World Coin of the Week: Finest NGC- certified 1901-ZsAZ Mexico Peso

By Greg Cohen Numismatist and Consignment Director

Over 5.7 million silver peso coins were struck at the Zacatecas Mint in 1901; the vast majority feature the assayer initials “FZ.” A very limited number of coins with the “AZ” initials are known, only two of which are currently listed on the NGC Census, one in VF and the example we are pleased to offer in our November Baltimore auction, which has been assigned the AU-58 grade. This is a lovely example of an extremely rare issue, one that will delight advanced collectors of Mexican coins.

This is just one of the many highlights of an extensive Mexican offering that will cross the block in Baltimore. Hundreds of lots of Mexican coins will be offered, anchored by an old collection that has been off the market for decades, from colonial issues through the Revolution, in all metals. Stack’s Bowers and Ponterio have long been specialists in Mexican coinage, and this sale will join the ranks of great Mexican sales of times past.

Remember When: Rolls of U.S. Coins, A Phenomenon in the 1950s

By Harvey G. Stack, Senior Numismatic Consultant

After the Second World War coin collecting surged, stimulated by the sale of Mint sets by the U.S. Mint, the advent of the Guide Book (red book) published by Whitman, new improved coin albums which sold for 25 cents each, deluxe pages and albums by Wayte Raymond and coin columns in major national publications (such as the New York Times, Chicago Tribune, and Los Angeles Times). Even the very popular Life magazine had a multiple page story of the Louis E. Eliasberg collection in full color!

By 1950 the U.S. Mint had re-introduced Proof sets. At the same time many new coin shops sprang up nationwide, from large coin stores to locations in department stores and even “Mom & Pop” entities. Also, new local coin clubs were formed, which sometimes banded together to conduct regional coin shows and conventions, and the American Numismatic Association got thousands of new members.

In order to be of service to the growing coin business, each year dealers bought Mint State rolls of coins in all denominations, in order to help customers fill albums with coins of Philadelphia, Denver, and San Francisco that were currently being struck. Many were not found in regular circulation, except in the areas that each of these mints served. These collections grew, stimulated by the need to fill the “holes” in albums.

In addition to the regular mint issues for circulation, new commemorative half dollars were minted. In 1946 the Iowa half dollar was issued, as were PDS sets of the 1946 Booker T. Washington commemoratives, and then later years as well. All the above helped stimulate the now growing coin business.

At the same time, many old time collections were being offered for sale, either by private treaty or at auction. Some of the memorable names included Col. E.H.R. Green, Col. Flannigan, J.T. Bell, Atwater, Jerome Kern, Grinell, Dunham, F.C.C. Boyd, “H.R. Lee” (Eliasberg) and many others.

The hoarding of Uncirculated rolls became a new obsession in the marketplace. Many thought that holding quantities would eventually yield big profits. Promoters and scam artists touted the value of holding rolls, using arguments that were as foolish as their recommendations. Their goal was to create pyramid schemes to loot the buyers.

I remember at a trade show when an “investor-collector” walked by my display bourse table and looked it over. He asked: “Mr. Stack, where are your rolls?” I said, “We do not deal with rolls,” to which he responded, “Don’t you know what is rare?” He then tried to explain the logic that led him to that reply. He explained: “Take the 1950-D nickel. Only 2.6 million were struck! That means that there are only 65,000 rolls, and that means there are only 650 bags, and “you know Mr. Stack, that anything that there are only 650 of is RARE!” I was shocked! I stopped our conversation there rather than pursue that foolish logic!

However, when someone is new in the field a promoter or scam artist can easily influence him or her. To illustrate how people can respond foolishly to the promoters’ promises, I continue to tell you about the 1950-D five cents. As we were trying in 1950 to obtain examples of all the minor coinage from our various sources, we were unable to locate the 1950-D five cents. It wasn’t available anywhere for about two months after it was issued. Suddenly in the early spring we heard that $2 rolls of 1950-D nickels were being offered in the marketplace, first at $50 a roll, then $60, $70, $80, and finally $100 per roll! The unknowing public jumped in and hundreds if not thousands of rolls were bought for $100 or more per roll.

Then the inevitable occurred. In the marketplace the price started to drop like a stone! In one week they were being offered at $10 per roll! What the uneducated didn’t know was that over 2.6 million were struck, but by some distribution quirk, most of the Denver Mint nickels of 1950 were sent to the Cleveland Federal Reserve. There they were kept in vaults until there was a need by the member banks for five-cent pieces. Once the bags were released the market was flooded and down came the price! The speculative investor market took a price beating! Buyers should have realized that the 1950-D nickels went somewhere and that they should be careful before they bought.

One of the great scams that occurred in the roll investment era was the sale of “sealed rolls” in “original bank wraps.” One could look at the ends of a roll and often determine the date and the mintmark. But the scam artist preached: “If you open it or break the seal, the value of the roll will drop immediately.”

What had occurred was one of the greatest frauds perpetrated on the coin collecting public. Advertised “sealed rolls” didn’t always mean an original mint sealed roll. The machinery to repackage coins in a bank type roll and seal it was readily available and as long as they remained sealed, no one could tell what was in the roll. We found, as many others did, that rarer coins would be placed at the ends of the roll, but the center would be stuffed with commoner dates, worth only face value. Sometimes the scam artists went one step further in their greed and replaced the center coins with “slugs” or “washers” and resealed the rolls with their own machines.

As losses became evident the market took more care and purchasers started examining their holdings. The demand for “sealed rolls” became quite dead, but it was not until the early 1960s before the promoters lost their market.

From the Desk of Q. David Bowers: The Tradition of Handling the Greatest of the Great Collection

By Q. David Bowers, Chairman Emeritus

Welcome to my weekly comments. As I contemplate what to write about I cannot help but think of our tradition of handling the greatest of the great collections in the past. While inexpensive Morgan dollars, scarce Lincoln cents, interesting tokens, modern Mint issues and the like make up a large part of the numismatic hobby, it is the great rarities and landmark collections that attract the most attention and linger longest in one’s mind.

Stack’s was formed in New York City in 1933 by brothers Joseph and Morton Stack. In 1935 they conducted their first auction, while moving forward in other activities as well, such as being the official distributor for certain commemorative half dollars (beginning with the 1936 Arkansas-Robinson issue) and making their New York City store a magnet, indeed a social center, for collectors and dealers to gather. Today in 2012 the store-gallery at 123 West 57^th Street is still a magnet. When collectors, dealers, and researchers visit New York City from all parts of the world, stopping by at Stack’s is often first on their lists. Or, perhaps visiting the American Numismatic Society is first, and we are second.

My own numismatic career dates back to 1952 when I began collecting, and then dealing in a small way in 1953, this being nearly 60 years ago. My first auction was conducted in 1957, eventually evolving into Bowers and Merena Galleries. American Numismatic Rarities, founded by Christine Karstedt in 2003 and merged with Stack’s in 2006, must be mentioned as well. Today, these entities are all  part of Stack’s Bowers Galleries.

What a tradition there is to behold. In terms of great collections presented at auction, the largest two were the Eliasberg Collection of United States and other coins and the John J Ford, Jr. Collection, both of which challenged the $60 million mark. After that comes the Harry W. Bass, Jr. Collection, not far behind. The Garrett Collection, sold for The Johns Hopkins University, appraised at $8.9 million dollars but sold for us for $25 million at auction comes to mind, as does the collection of Ambassador and Mrs. R. Henry Norweb. These cabinets constitute the greatest of  the great, plus one other, the John Jay Pittman Collection, cataloged by our former colleague and friend, the late David W. Akers. That’s it. All other great collections are of lesser value.

What about rarities? We take the lead in that area as well, with the most expensive coin ever sold at auction, the 1933 double eagle (in cooperation with Sotheby’s) at $7.59 million, setting the record. And, it seems like only yesterday that I was the auctioneer for the Child’s specimen of the 1804 silver dollar, which crossed the block at $4.14 million, still the world’s record for a silver coin. We have handled more 1913 Liberty Head nickels, 1804 silver dollars, 1822 half eagles, and other great rarities than have all other current auction houses combined.

Records continue to be made as other collections and rarities are handled by us, as old collections are sold and new ones are formed. It seems to be a truism that a great collection owned by an individual, museum, university, or estate, if placed with us, is handled with great care and the results break records left and right.

As I am now working with our staff in helping catalog coins for our forthcoming auction at the Whitman Coin & Collectibles Expo in Baltimore in November I am delighted with what will surely be a great event. There will be no 1913 Liberty Head nickel, 1804 dollar, or 1822 half eagle, but choice, rare, and interesting coins, tokens, medals, and paper money will abound. If you are thinking of selling – even if you do not have major rarities – Stack’s Bowers Galleries is ready to help. While we have handled the vast majority of the rarest of the rare, the main part of our business has been composed of tens of thousands of consignments ranging in value from a few thousand dollars up to in the hundreds of thousands or low millions. Whatever you may have to offer, if it is of significance and value, you have come to the right place.

United States Coin of the Week: PCGS/CAC EF-40 1783 J. Chalmers Shilling Returns to Maryland

By Frank Van Valen, Numismatist and Cataloger, U.S. Coins

“Short Worm” Variety to Star in Our November 2012 Baltimore Sale

In 1783, Annapolis, Maryland gold and silversmith Captain John Chalmers (1750-1817), one-time Continental Army recruiting officer and Sherriff of Baltimore, produced a series of silver coins in the denominations of threepence, sixpence and shilling, with several die varieties now known to today’s collectors, some of which are extremely rare. Many, if not all, of the dies were produced and cut by Thomas Sparrow, who is also known for his work on the paper money plates of the Maryland Colony. Chalmers may also have been responsible for some of the dies, as he was a talented silversmith and no stranger to finely detailed engraving. The coins were produced in a wooden building at Fleet and Cornhill streets in Annapolis.

The design of the shilling type to be offered in our upcoming November Baltimore Auction is attractive in its simplicity. A pair of clasped hands at the center of a wreath composed of 12 tri-tipped leaf groups is encircled by I. CHALMERS ANNAPOLIS on one side, while the other side depicts a pair of birds tussling over a worm beneath a hedgerow and a snake, all in a beaded circle with ONE SHILLING 1783 around the circle. An earlier and extremely rare shilling design features a circle of 12 separate rings with a 13^th ring at the center on one side, and with a star within each of the outer 12 rings, the 13^th star at the center near a Liberty cap on pole motif. The other side features I. CHALMERS ANNAPOLIS 1783 around the legend EQUAL TO ONE SHI above a pair of clasped hands.

The upcoming November sale’s Chalmers shilling, weighing 58.9 grains, has been described by our cataloger in part as: “A pleasing steel-gray specimen...the devices are fairly crisp for the grade, and remarkably so for an example of this very challenging type, especially so on the ‘bird’ side, while the central clasped-hands design on the opposite side shows substantial detail. The present piece, ex: Richard Picker, is undeniably choice for the grade...” We can vouch for the in-hand quality as well as the accuracy of the cataloger’s description and the PCGS grade. The overall quality invites brisk auction activity, so we caution that bidding on this particular 1783 Chalmers Shilling will not be for the timid or faint of heart.

Our November Baltimore auction event will feature a special session of colonial, early American and state issues to be offered as part of the annual meeting of the Colonial Coin Collectors Club, or C-4, as it is popularly known to its members. After well over a decade of meeting in Boston at the November Bay State Coin Show, C-4 has coupled with Stack’s Bowers and will now hold their annual November auction in Baltimore to maximize the event through the partnership. We predict an unusually high turn-out at the auction as an incredible array of Colonial-era coins and currency, some rare, others more common but nonetheless impressive, cross the auction block. We hope to see you there!

United States Paper Money of the Week: Don’t Let the Ship Sail without You!

By Bruce Roland Hagen, Senior Research Numismatist

The consignment deadline for our November Baltimore Auction is upon us Monday September 24th. There is scant time for your selected paper money rarities to be showcased in our final auction event of the year. Consignors were more than pleased with their superb results in our recently concluded Philadelphia ANA and Hong Kong sales, proving the market is ripe for prime numismatic items of all genres. The paper money session boasted an overall sell through of 92%. This is remarkable and displays the confidence Stack’s Bowers consignors have in us to highlight their treasured collections and single rarities, without reserves, as we offer accurate grading and descriptions, top notch research and cataloging, and transparent bidding procedures making it a fair playing field for buyers and sellers.

The November sale is a first for us at Stack’s Bowers as we have joined forces with C4 (Colonial Coin Collectors Club) to hold a special auction session on Friday November 16, 2012. Colonial Paper Currency will of course be featured in the paper money session including an old time collection formed nearly 100 years ago and being sold at the request of the Connecticut Historical Society Museum. Also several choice Colonial uncut sheets and several Gem Continental Currency notes are featured. A standout War of 1812 Federal Treasury Note collection has been consigned including nine different types (please see our feature on this collection in the upcoming weeks), all with stellar pedigrees such as Ford, Boyd, and John Whitney. Federal Large Size type will once again be in abundance with several old holdings coming to market for the first time. Fractional Currency, as we wrote last week, is also strongly represented in the paper money auction session.

Act Now! Superb items achieve superior results in our auction venues where the most astute collectors and dealers compete through floor bidding, by telephone and on the internet. There is still extremely limited time and space to consign. Please call Bruce R. Hagen in New York at 1-800-566-2580 or Matt Quinn in California at 1-800-458-4646 immediately. The deadline to consign is Monday, September 24, 2012 so call to include your important banknotes in this exceptional event or a future Stack’s Bowers auction.

United States Paper Money of the Week: Diverse Fractional Currency Offering to be Present in November Baltimore Event

By Matt Quinn, Director of Currency

The upcoming Stack’s Bowers official currency auction of the Whitman Coin and Collectibles Baltimore Expo in November will feature an important Fractional Currency offering. These miniature currency notes have been highly regarded by numismatists since their first public release just over 150 years ago. Collecting a general type set of all denominations from the five issues is quite simple in Extremely Fine grades, but becomes quite difficult in Uncirculated. This offering will present a wide array of varieties from the First Issue to the Fifth Issue, with many pieces also being the finest graded examples according to third party population reports. The notes mostly come from two private collections, which have not been available for decades. The originality and high quality of the notes is absolutely striking. The Third Issue notes in particular are spectacular with vivid bronzing and deeply embossed inks of the primary design.

Fractional Currency was ultimately the best suited replacement for their metallic counterparts from 1862 to 1876. A few other ideas were tried; Postage Stamp Envelopes and Encased Postage Stamps, while slightly successful, both had little public acceptance when compared to Fractional Currency. All three circulating media were created as the introduction to paper money in 1861 caused severe hoarding of gold and silver coins with copper following shortly after. The First Issue notes where placed into circulation between 1862 and 1863, with a Second Issue then circulating from 1863 to 1867.

Counterfeiting became a problem noticed by Treasury officials shortly after the introduction of the Second Series. A Third Issue was then called for and would become the most complex and largest issue in terms of collecting. The first of the Third Issue notes to enter circulation occurred during 1864 and consisted of Three Cent to 50 Cent notes, all with green backs. Later releases of red backed notes were then placed into commerce creating further variety for the series. The Fourth Issue implemented a 15 Cent note showing the bust of Columbia, which was not widely used by the public and ultimately production of the denomination was stopped. The popular “Lincoln Face,” Fifty Cent note was produced within this issue and is quite scarce in Gem preservation. These Fourth Issue notes were produced from 1869 to the beginning of 1875 with the last Fifth Issue pieces being produced for only two years during 1874 to 1876. Overall the variety and possible ways to collect these notes is vast and we hope the varied selection to be offered in November will help collectors further their holdings.

World Coin of the Week: Great Britain Unite of 1653

By Greg Cohen Numismatist and Consignment Director

One of our November Baltimore world highlights is a Commonwealth Unite, 1653. Freshly back from PCGS, this coin is now in a PCGS EF-45 Secure Holder. From the Ronald Lyle Collection, this coin has resided in a safe deposit box for decades until recently, when it was consigned to our sale. A scarce type coin that will delight the eye and incite strong bidding activity when it crosses the auction block in Baltimore.

The coin was issued during the Commonwealth period after Charles I was overthrown and the Parliament took over control of the British government. During this time the number of denominations struck by the British government became fewer, and the designs were changed to reflect the anti-monarchial political environment, including changing the legends from Latin to English. It’s a simple design, with the Shield of St. George within a wreath on the obverse and the conjoined shields of St. George and Ireland. This was also the time period of the original agreement that allowed the Massachusetts Bay Colony to begin coinage of Shillings, Sixpence, Threepence, and Twopence; the “NE” coinage began in 1652, and later that year, Willow Tree coins were struck, eventually leading to the Oak and Pine Tree issues.

The survivors of this historic type have a tangible link recalling the turbulent period after the English Civil War, and the rise of Oliver Cromwell to power.

From the Desk of Q. David Bowers: Congratulations Chet Krause

By Q. David Bowers, Chairman Emeritus

My comment this week is focused on Chester Krause, known to everyone as Chet. Coming up very soon on Monday, October 13, will be the 60^th anniversary of his founding of Numismatic News. The introductory issue included this “short biography of your publisher”:

“If you are like I am and I suppose you are, I imagine you are wondering just who Chester L. Krause is. Well to start with I am just plain Chet. I’m not 30 yet and still a bachelor. I know it’s leap year; I am not advertising, just stating a fact. By trade I am a carpenter. Most of my work is in or around Iola. As far as my collecting, it is strictly U.S. Of late I have two pets – Commemoratives and SL Quarters Unc. Neither are complete but have a nice start. Any nice coin tempts me.

“My favorite Uncle gave me a free trip to Europe during World War II. Saw lots of country over there – that is out of the back of a G.I. Truck. Was gone away from here 3 years. It is since my return my collection really started. It was, however, a hangover from prewar days.

“Until two years ago I lived on a farm a short distance from town. Of course Iola isn’t very big, only about 800.

“That brings up the fact where is Iola? And what a name? Well without the aid of a map it is kind of hard to tell you just where it is. So if you will get out your atlas, find Wisconsin, put your finger on the center of the map, lift it up and you should be quite close to Stevens Point. Just east of there 25 miles is Iola.

“Iola is Norwegian, that is it used to be, however with the advance of time and the migrating of other nationalities such as myself, you’ll find most everything here now. It isn’t too uncommon to hear the Norske language being spoken on the streets and in the surrounding communities. I would say Iola is just an average American Community.”

Numismatic News began life as a focal point for those who desired to run classified ads. These were inexpensive and promoted exchanges and trades. Chet had his eye on the stars, so it seems, and into a decade or two later Krause Publications became a giant in publishing. Cliff Mishler, a young collector who as a teenager was prominent, joined Chet and helped manage the business. In time dozens of reference books were published, including the Krause-Mishler Standard Catalog of World Coins, an indispensable reference. The firm spread out beyond numismatics to include antique cars, hunting, recreation, you name it. Some years later the stockholders, including many employees, accepted a buyout offer from F+W Publications in Cincinnati, the owners today.

Chet retired from business some years back, as did Cliff Mishler. Both went on to other great things, including presidencies of the American Numismatic Association, donations to the ANA and others, and support for the hobby. Along the way both Chet and Cliff were inducted into the ANA Hall of Fame.

As I write these words I again congratulate Chet on his unique accomplishment in numismatic publishing, education, and outreach. Plus, he is the very definition of a nice guy. May he be a dynamic part of our hobby for years to come.

Remember When: A Numismatic Saga, Part 5

By Harvey G. Stack, Senior Numismatic Consultant

Numismatic Days in the Early Thirties

Harvey Stack continues his reminiscences and the story of Stack’s, with numismatic traditions dating back to 1858, in its present form founded in New York City in 1933. Stack’s held its first public auction sale in 1935. Today, Stack’s Bowers Galleries is the longest-established and most accomplished rare coin firm in America.

Sixth Avenue: A Proving Ground

In many ways, in the early 1930s Stack’s 22nd Street and Sixth Avenue location resembled a newlywed couple’s first apartment, great as a starter but sure to be quickly outgrown. It was a test run, a kind of proving ground for the new firm. In this first year of operation, brothers Joseph (my uncle) and Morton (my father) had the chance to try out their initial concept of handling old gold and jewelry, stamps, antiques and coins. Old gold and watches proved to be largely Depression products, most such material being offered by New Yorkers suffering under the desperate conditions that followed the crash. Antiques presented problems of sheer bulk, demanded a wealth of information that was not always readily available and were a further challenge to the limited supplies of cash on hand.

Coins and stamps provided dramatic contrast. Relatively small, portable and appealing to a wide spectrum of collectors, these collectibles were clearly easier to process and sell. While it is unlikely that a good cache of old gold would ever be turned down, the brothers had already perceived that coins and stamps lent themselves to a dignified business image that could place Stack’s far ahead of the “grandmother’s attic” look presented by so many other New York collectibles dealers.

Then too, lower Sixth Avenue offered major physical drawbacks in the early 1930s. Towering overhead was the Sixth Avenue Elevated, one of the main lines of the city’s half century-old El system, and a perpetual source of noise and shadow for neighboring homes and businesses. The city had broken ground for its new Independent subway system (called the IND to distinguish it from the privately operated IRT and BMT lines operating under existing contracts of 1904 and 1913). The IND would soon link the outlying boroughs to two main trunk lines operating under Sixth and Eighth avenues in Manhattan.

By the mid-1930s, Sixth Avenue was a shambles, disrupted by the massive “cut and cover” digging underway beneath the still operating El. The Sixth Avenue subway would not open until 1940, making the avenue a semi-permanent disaster area for merchants along its length. When completed, the Sixth Avenue Line would be hailed as the most advanced subway in the world, but for now it was preparing to create a host of difficulties on top of those already generated by the seemingly endless Depression.

To a Better Address

Coin dealers, like all others engaged in business in New York City, knew the importance of a fashionable address. The Stack brothers realized by 1934 that the trends as well as their own success and expansion mandated an uptown location for a higher image business. Earlier dealers had experienced similar movement. For example, Thomas L. Elder first did business at 32 East 23rd Street in 1904, shifting to 21 West 35th Street in 1919, crossing Fifth Avenue to 9 East 35th in 1924 and making his last in-town move to 8 to 10 West 37th Street in 1927.

Wayte Raymond started out in 1912 as the United States Coin Company at 200 Fifth Avenue, later moving to 489 Park Avenue and then taking over the numismatic department of Scott Stamp & Coin Company at 1 West 47th Street in the early 1930s. Raymond’s last New York offices were located at 654 Madison Avenue.