Volume 12 Issue 12 December 2008

We meet at the El Segundo Library on Mariposa Avenue, West of

Sepulveda, South of LAX. Next meeting: Thursday, December 11, 7 PM
The Greenback - 1860 to 1880

The United States of America

In spite of a constitutional bar to un-backed paper money which existed at the time Abraham Lin-
coln was forced, in 1862, to issue the first batch of what was eventually $450,000,000 of
"greenbacks" needed to finance the North's efforts during the civil war.
The greenback was a credit note. Unlike America's extant currency it conferred no right of re-
demption into gold. What it did do was offer a promise that at some unspecified future date the is-
suer - Lincoln's government - would honor them with conversion back into a truly gold convertible
currency. Clearly this was an unfunded promise based on the outcome of the war, a fact which was
not lost on the population.
When soldiers sent their greenbacks home they were inferior to the sounder notes backed by gold,
and a price differential arose according to which type of money was being used. As fears of a long
and costly war peaked, the credit of Lincoln's government diminished until the differential reached
3:1, and even that flattered the greenback because there were doubts about the gold backed cur-
rency itself, whose redemption rights had been suspended to prevent its owners bleeding the treas-
ury dry as they hedged the military outcome with metal.
But - and here is a rarity - the greenback was redeemed, some fifteen years later. This simple fact
disproves the popular belief that 'all paper currency systems eventually end in disaster'. On the
contrary, this particular one was something of a success - especially for those who bought their
government's integrity at a deep discount.

(Continued on page 2)
December 2008 CCCC Journal

The Greenback - 1860 to 1880

(Continued from page 1)

We could conclude that the greenback was a story to re-assert faith in paper money systems, but
it would be simplistic. A significant factor in the redemption was corruption. At the time there was
no such thing as insider dealing and for those who knew that a redemption of doubtful paper was
likely the only respectable course of action was to buy some. In fact one of the constitutional rea-
sons for sound money in the first place was to prevent a conflict arising where those with privileged
knowledge could benefit privately. It is beyond doubt that by the time of redemption a substantial
haul of deeply discounted paper had found its way to officials and their private and commercial as-
sociates. Their money was made at the collective expense of others who had held the paper while
it was sinking.

"The greenbacks ceased to be legal tender after a Supreme Court ruling struck them down as un-
constitutional money. Who was the man who led the Supreme Court to strike down the very financ-
ing tool of the North's victory? It was the same man who ushered in its birth. For you see by 1870
the Chief Justice of the Supreme Court was none other than former Secretary of the Treasury,
Salmon P. Chase."

In the end the greenback's successful redemption was a mixed blessing. This experience of state
borrowing under duress was an important driver in encouraging the next political generation to em-
bark, in the 1930s, on the deficit financing which is the cause of so much private prosperity and
public debt today. In that sense maybe the jury on the greenback case is still out.

JvB

PAGE 2 CCCC Journal

December 2008 CCCC Journal

The Tennessee Quarter – Thematic Trio

The Tennessee Quarter was the 16th coin in the 50 State Quarter Series of the US Mint. This is
rather a different coin than those of all the preceding states. It doesn’t directly reference a major
event in history or a significant natural wonder or architectural achievement.
On its face (actually, its reverse) it’s all about music – the music of Tennessee. The design in-
cludes three musical instruments: a fiddle (violin if you’re a Yankee), a guitar, and a trumpet.
There’s an intentional association of each of these with one of the three regions of the state, and
the musical and historical roots of each.

Fiddle

The fiddle refers to the Appalachian beginnings of East Tennessee, the first part of Tennessee to
be reached by westward moving American colonials from Virginia and the Carolinas. Solo fiddle
players sounded the early strains of folk, bluegrass, and mountain music so familiar to this region.

Guitar

Moving further west into Middle Tennessee the mountains of the east give way to rolling country-
side well matched to the needs of permanent settlement and farming.
This countryside gave us country and western music, whose plaintive laments and easy going bal-
lads are played on guitars like the one on the Tennessee State Quarter.

Trumpet

The blues tradition in music has deep roots in the city of Memphis in West Tennessee. Trumpet
playing bluesmen playing tunes grounded in an African-American musical idiom flourished along the
Mississippi River. The fusion of blues, western swing, and boogie-woogie engendered the first stir-
rings of rock and roll and later, a hybrid sound known as “rockabilly”.

JvB
PAGE 3 CCCC Journal
December 2008 CCCC Journal

US Gold Dollars
A Full Day’s Pay Sized Smaller than a Dime
US gold dollars, the smallest of United States gold coins (actually of all US coins) were first issued in 1849 -
the same year as the twenty dollar gold piece, the largest of the US gold series.

TYPE I GOLD DOLLAR [1849 – 1854]. Designed by James B. Longacre. At a mere 13 millimeters in diameter,
this is the smallest coin ever minted by the United States (about two-thirds the size of a dime.) The Liberty
head design of the obverse side is similar to the design of the much larger twenty dollar gold coin, designed
by Longacre and also introduced in 1849. Gold production had jumped off the page with the California Gold
Rush. Coins were scarce in the gold fields. Many of the privately minted gold coins in California were of unre-
liable weight and purity.
But the gold dollar coins were easy to lose, owing to their diminutive size. Loss of one of these tiny gold
pieces was a serious matter - the same as losing a full days pay!

TYPE II GOLD DOLLAR [1854 – 1856]. To make the gold dollar more convenient, its size was increased from
13 millimeters to 15 millimeters. To compensate for the larger diameter, the coin was made thinner. Weight
and purity remained the same as for the Type I coin. The design changed from a Liberty head to an Indian
head. The Type II coin is often weakly struck.

TYPE III GOLD DOLLAR [1856 – 1889]. This coin is identical to the Type II in size and weight. The Indian
head device was made considerably larger. Striking quality greatly improved. In fact, many of the business
strikes (coins made for normal circulation) are mistakenly identified as proofs (coins made for collectors and
presentations.)
Still, the coin was regarded by the public as inconveniently small. From the mid 1870s through 1889 the
gold dollar was made in reduced quantities, often less than 10,000 pieces a year. Even so, it reportedly circu-
lated in the western parts of the US until the nation went off the gold standard in the 1930s.

JvB
PAGE 4 CCCC Journal
December 2008 CCCC Journal

Club News From November

The November meeting was called to order at 7:08 PM with 16 members and 3 guests present.
Steve D. led the Pledge of Allegiance. The first name for the membership drawing was Bob D. who
was not in attendance. Then second name drawn was Eric A. who took his two dollars in tickets.
The minutes for October and the Treasurers report were approved. The guests were:
Velma von Bloeker-(Jack vB’s wife). Attended to support her husband.
Carol Ann Craft-She has attended in the past and was instrumental in getting us our regular
meeting room this month. (She works for the El Segundo Library.)
Bobbie ???- Saw the meeting notice in the Daily Breeze. She inherited a bunch of coins and
would like to sell them. Steve D. offered to meet with her to see what she has and possibly make
her an offer to purchase some of the coins.

ANNOUNCEMENTS

Jack vB. told us that he contacted John Forrey (our vice-president) via telephone during the month
several times to see how he was doing after having his heart blockage and subsequent triple bypass
operation. The recovery seems to be slower than anticipated. John was running the show at a
Gold Prospecting store in Santa Ana for an absentee owner for many years prior to his recent medi-
cal problems. The owner stepped in to run the business while John was recovering and because he
found out it was much more difficult than he thought. So he decided to sell the business, which he
did. That left John out of a job which further complicates John’s troubles. Not a happy state of af-
fairs, but we wish John all the best.
Steve D. mentioned that John Forrey was the keeper of the coin-o (bingo) paraphernalia. Garn A.
offered to contact John F. to obtain the materials and bring them to the December meeting.
Steve D. brought up the nominations for club officers and there was a discussion about the duties
of each office. When the nominations for next years officers came up, it seems we will have basi-
cally the same set with the exception of running Richard Navarro for Vice-President. Later on in the
meeting someone nominated Garn Anderson to run against Steve Demmer for President. (Steve D.
has recently joined several choir groups and is running for union representative at his workplace.
Which means he really would prefer not to be President next year.) Jack vB will print up the ballots
and bring them to the December meeting.
Garn A. talked about our Christmas wreath for the December meeting and offered to purchase one
from Home Depot. He will bring it to the December meeting.

SHOW AND TELL

Jack vB.—Brought in the current Daily Breeze meeting notice and an intaglio from the 1972 ANA
annual meeting. Each year the Department of the Treasury creates a intaglio for those meetings
showing obverse or reverses of various currency notes that were issued in past years. This one
showed the obverse of the 1896 $2 silver certificate.
Eric A.—Seven ancient Roman coins. One of the coins was given to him when he was in the 5th
grade. He cleaned the coin and found that the details came out quite beautifully.
Steve D.—Plastic baggies with silver necklaces. He has been purchasing them and offers his wife
first choice and then either re-sells them or saves them for future melting.

PAGE 5 CCCC Journal (Continued on page 7)

December 2008 CCCC Journal

November Club News-Continued

SHOW AND TELL (continued)

George S.—Four fantasy coins, some of which were magnetic. Brought in a listing from “Craigslist”
(an online auction site) that spoke about “whizzing” (a coin cleaning process) and suggested that
the journal include an article about various forms of coin cleaning. (see January issue)
Steve R.—Brought in a book about five POWs that survived a sinking POW ship during WWII. Also
10 coins from Turkey and a small suitcase that was originally designed for 35mm slides, but that
would suffice nicely for 2X2 coin holders.
George G.—Used his executive discretion to increase the club’s treasury by ordering a new set of
our club’s 50th anniversary medals with the corrected obverse design. He showed us the new set
of four finishes along with the advertisement that appeared in “Numismatic News”. Steve D.
whipped out his latest “Coin World” to find our announcement/advertisement there. The club is
selling the medals for $5 plus postage. The two new finishes are copper and silver satin.

BREAK TIME

Jack vB.—Brought the goodies—A shrimp cocktail platter, two kinds of cookies, chips & dips,
homemade banana bread, small baked “char siu bow” (Chinese dim sum that amounts to flavored
pork inside a bun.) along with a small microwave to warm them up and sodas to wash it all down.

COIN AUCTION

We had 11 lots that were auctioned off from four groups. Many thanks to Clint McG. for partici-
pating. He bought most of them.
COIN RAFFLE

1.) 1951-D—Lincoln 1c-Geo. G. 6.) 1949-S—Roosevelt 10c-Jack dB.

2.) 1957-D—Lincoln 1c-Rich. N. 7.) 1944-P—Washington 25c-Rich N.
3.) 1903-P—Liberty 5c-Clint McG. 8.) 1908-O—Barber 25c-Bobbie ?.
4.) 1942-P—Jefferson 5c-Rich N. 9.) 1974-S—Ike 1$-Eric A.
5.) 1907-P—Barber 10c-Rich N. 10.) 1922-S—Peace 1$-Jack dB.
11.) CCCC 50th Medal-Jack dB
(donated by Jack vB.)

Meeting adjourned at 8:38 PM.

PAGE 6 CCCC Journal JvB

December 2008 CCCC Journal

President’s Message
December 2008

I picked our cat up at the vet today, I was thinking how nice it would be for us to have free medi-
cal. The animals prefer not to go to the doctor, (like some of us!), but it helps us all live longer. So
far, the coin market still has a pulse, with many people looking for type coins to finish their collec-
tions. It seems they are just cutting back in the amount they buy. For instance, if they were going
for several AU coins for their set, they might just settle for one in a better grade but still spend less
overall. In these economic times, people are seeing more value in the coin market than in stocks or
savings, so there is still traffic at the shows.

Can you believe it, Holiday time is upon us again? I hope everyone had a good Thanksgiving, and
didn’t eat too much! We felt like we were cooking forever, and cleaning twice as long. We hosted
the whole family (9 people), and all the work is worth the effort when everybody enjoys the food.
We would miss them if they DIDN’T show up! That means Christmas is going to be in Torrance, so
we’ll get a break. When we do a turkey, we cook the stuffing separately so it doesn’t take as long to
cook. I wonder how a turkey would cook stuffed with coins…. For Christmas, one of our nephews
wants a Turducken, a hen inside a duck inside a turkey. It’s going to be good, it’s boneless, but you
won’t be getting that for 39 cents a pound, or buy one get one free.

Don’t forget, the meeting this week is our Holiday Giveaway! Thanks to Garn for buying the
wreath, we’ll fill it with coins that we bring for a lucky winner in our blackout game. If possible, let’s
put silver coins on it, except for the pennies and most of the nickels, of course 1942 to 1945 nickels
will be accepted. We went over the game at the last meeting, but just so it’s easy to remember,
here’s how it works. We sell bingo cards for the games, price will be determined on Thursday; you
can get as many cards as you want. The first few games are standard bingo games, and the final
game is a blackout game, (you have to fill every space on the card), and that one is for the wreath.
It’s always a fun meeting; we have our elections that night also. January we will have our installa-
tion dinner at a place we will determine on Thursday, the February we are back at the library.
I got a call from John Forrey today; he is out of the hospital, and going out of town for a few days,
but plans to see us on Thursday. After all he has been through; our coin-o night should make him
feel better, especially if he wins.

I’m getting ready for the chorus show this weekend, (Dec 6, 7), so it’s been a week of rehearsals
and singing. I always have blast singing, but it’s nice to have a rest after pushing for a couple
months. Looks like we’ll have a fun meeting--see you all on Thursday!

Till then, keep checking your change!

Steve

PAGE 7 CCCC Journal

 December 2008 CCCC Journal
CCCC 50th Medal CCCC 50th Medal
Coin World,11/24/2008 REFRESHMENTS (continued from column 1)

The Culver City Coin Club, a Califor- Curved along the edge of the top half is
December—Steve Demmer the club motto, THE POWER OF COINS.
nia organization, has issued a medal in
February__???? Below the motto and between the
four finishes to celebrate its 50th anni-
versary. COIN SHOWS wheat heads are the years 1958 and
2008. Below the years is the club
Each medal is made of brass, and
plated in antique brass, antique cop- name, CULVER CITY COIN CLUB. Be-
per, antique silver or brilliant gold. Dec 19-21 Glendale tween the wheat head shafts near the
bottom is the number, 50, and be-
The medal measures 1.5 inches in Glendale Coin, Currency, Jew-
diameter. neath that along the edge are the club
elry & Stamp Show. Glendale initials C.C.C.C.
The obverse shows the club logo
Civic Auditorium, 1401 N. Ver- Individual medals may be ordered at
with a large 50 superimposed over the
eagle from the Liberty Seated silver dugo Rd. Hrs: Fri. 11AM-6PM, a cost of $7 each. A set of four med-
dollar (1840-1873) with CULVER CITY Sat. 10AM-6PM, Sun. 10AM- als (one of each finish) may be or-
COIN CLUB curved along the edge of 5PM. ADM. Free parking dered for a price of $25. Shipping is
the top half. included in the prices of both ordering
Under the club name and over the eagle options.
is a curved banner with the caption
Mar 6-8 San Diego To order, send a check or money
FOUNDED 1958. San Diego Coin, Currency, Jew- order to Culver City Coin Club, Treas-
On the bottom is the year of issue, 2008. elry & Stamp Show. Handlery urer George Gill, P.O. Box 142, Man-
The reverse design was selected from hattan Beach, CA 90267.
entries members submitted.
Hotel & Resort, 950 Hotel Circle
See the coin club’s Web site,
The medal’s reverse show wheat heads N. Hrs: Fri. 11AM-6PM, Sat. www.culvercitycoinclub.org for date
as were featured on the Lincoln cent in 10AM-6PM, Sun. 10AM-5PM. and time of the club’s meetings.
1958, the year of the club’s founding.
(continued in column 3)
ADM JvB

Any items of interest for The Culver City Coin Club Take the 105 Freeway
this newsletter can be normally meets on the West to the end, go about
mailed or emailed to: second Thursday of every a mile or so to Main Street,
month in the El Segundo turn left, the Library will be
CCCC Journal Library on Mariposa after you make a right turn
c/o Jack von Bloeker III Avenue, West of on Mariposa.
5714 Apia Drive Sepulveda, South of LAX.
Cypress, CA 90630 Next meeting Thursday, We will be in the Meeting
Email: [email protected] December 11th @ 7 PM Room downstairs.

2008 OFFICERS
President
Steve Demmer

Vice President
John Forrey

Secretary/Editor
Jack von Bloeker III

Treasurer
George Gill
PAGE 8 CCCC Journal