A Spectacular Bond

When I started blogging about bonds a few days ago, I emailed Bob Patetta, who has contributed some great documents before, asking if he had any unusual bonds.

Am I glad I asked! It turns out Bob has a spectacular bond, ex Morton Dean Joyce, written for Three Hundred and Fifteen Thousand, Two Hundred and Eighteen Pounds, Fourteen Shilling Sterling. That converts to $1,525,658.50 with the tax at 5 cents per $100 in face value, or fraction thereof, being $762.85

The $762.85 tax was paid by an interesting combination of stamps: four $50, five $30, twenty $10, twenty-nine $5, twenty-two $3, one $1, one 80-cent, and one 5-cent.

The Securities Company Consol (Bond)
New York, New York September 1, 1899
Bob Patetta

front of attachment sheet showing tax stamps
Bob Patetta scanback of attachment sheet showing the balance of the tax stamps
Bob Patetta scan

I'm guessing this Securities Company bond was a type of investment vehicle where the assets of various investors were pooled to create a super bond. Considering the official British Government bonds of the period generally paid just 2 3/4% annual interest, the 4% offered through this bond must have looked attractive to its investors. Anyone who can shed further light on how this investment likely was structured is invited to Comment below, or email 1898revenues@gmail.com

The stamps are all cancelled with a single-line hand stamp reading, J. A. H. Macnair, C. A. , the company's named agent, and a separate single-line date stamp dated, 29 AUG 1900. There is no indication other than the lined out signatures that the bond was called, but the fact that it was not taxed until 2 days prior to September 1, 1900, one of the interest due days when the principal also could have been paid off, suggests that's what occurred thus forcing Macnair to pony up the tax nearly a year after it should have been paid.

It's hard to find on-document usages of the $3 and $30 Commerce issues. To find both on the same document is a real coup! And it's likewise hard to find on-document usages of the 80-cent Battleship.

Thanks Bob for sharing this spectacular bond. If anyone else has an unusual bond with unusual taxation, please send a scan and description to 1898revenues@gmail.com

The Fullerton List: Railroad 60, The Kansas City, Fort Scott & Memphis Railway, aka "The Memphis Route"

This post is part of a continuing series on Richard Fullerton's 1952 Catalog of Railroad Company, Street Railway & Express Company Printed Cancellations on the 1898 U. S. Revenues.

Examples of the cancels, when available, are posted.

RR060:  The Kansas City, Fort Scott & Memphis Railway -or- "Memphis Route"

A post with a bit more detail on this railroad can be found here.  By early 1901 the KC,FS&MRy would become a part of the St. Louis & San Francisco, known as The Frisco, though by late 1901 Gould interests would predominate.  There is no evidence to date that The Frisco used printed cancels, while Gould railroads clearly did.

From the historical information at the back of the Fullerton Catalog:  Originated as an independent line of the Missouri River, Fort Scott & Gulf, which was originally the Kansas & Neosho Valley RR.  The evolution is a bit hazy but a consolidation of the KCFS & Springfield and the KC, Springfield & Memphis occured April 23, 1888.  The KCFS&S was formed by a consolidation of  KCFS&Gulf RR, Rich Hill RR, Southeastern & Memphis RR, KC&Missouri RR, Short Creek & Joplin RR, and the Memphis, Kansas & Colorado Ry on February 8, 1888, in the state of Kansas.  In 1917 all 920 miles wre controlled and operated by the St. Louis-San Francisco Ry.

Perhaps the most important historical information on this railroad for the printed cancel collector is the fact that the Memphis Route was controlled by the Goulds late in the history of the 1898 tax period.  As many (perhaps all?) Gould railroads used printed cancels, this would explain the Memphis Route's use of the cancel only later in the tax period:  the railroad appears to have only used the cancels on hyphen-holed stamps.

From The New York Times, December 22, 1901:

GOULDS GET ANOTHER ROAD.
---------
Report that the Kansas City, Fort Scott and Memphis Has Changed Hands.

  KANSAS CITY, Mo., Dec. 21.--A report is current here that George Gould, working with Nathaniel Thayer, has secured the controlling stock in the Kansas City, Fort Scott and Memphis Railroad, and that the Memphis system will be taken out of the hands of the St. Louis and San Francisco, which has operated it for the the past several months, and will be made an independent property, in which the Gould interests predominate.
  According to this report, Thayer, who has long been one of the principal stockholders on the Memphis system, was dissatisfied with the operation of the property by the "Frisco", believing that the latter road had taken Memphis route equipment for use on Frisco lines, leaving lines of the Memphis system unprovided for and had otherwise used the Memphis property for the benefit of the Frisco.
  It is said that Mr. Thayer and Mr. Gould conferred with the result that Thayer agreed if Gould would buy enough Memphis stock to give his own and the interests represented by Thayer control, that the property would be turned over to Gould management, and that this plan has been followed out.

Only one type on two denominations:

Type 1:  One line of serifed caps and lower case letters within quotation marks 27.5mm long.  Caps 2mm high.

1ct  Pale Blue                  a.   Normal    (2)   HH

2ct  Carmine Rose           a.   Normal    (2)   HH

RR060 Type 1, 1ct a.(2)

1ct, hyphen hole

RR060 Type 1, 2ct a.(2)

2ct, hyphen hole

Scan courtesy of Richard Friedberg

This cancel is very scarce on the 2ct battleship

"Memphis Route" handstamp on 2ct roulette

Handstamps are generally not listed in the Fullerton catalog.  This cancel is provided for reference. 

Bonds - Michigan Central Railroad 1902 Gold Bond

Michigan Central Railroad 3.5% First Mortgage 50-Year Gold Bond

May 1, 1902

Long term railroad bonds appear to have been a popular investment at the turn of the 19th century. The security of a first mortgage on the company's tangible property must have added to their popularity as opposed to less secure investments in stocks. The Michigan Central mortgaged the best part of its 270 mile route from Detroit, Michigan to Kensington, Illinois along with its terminal properties and any future acquisitions for this 50-year 3 1/2% coupon bond.

It was beautifully engraved by the American Bank Note Company, with ornate green borders and scrollwork. Looking closely at the vignette of the steam locomotive at left one can make out a set of golf clubs lying on the luggage gurney in the foreground. Someone was headed for a golfing vacation.

The MCRR was incorporated in 1846 to acquire the line the State of Michigan had built from Detroit to Kalamazoo. It extended the line over the years, but also ran afoul of the State of Michigan who pulled its charter in 1900 over a dispute involving allegedly delinquent taxes. The State allowed it to reincorporate in 1901 and issue this bond offering in May 1902. The influx of cash allowed the company to expand operations and to take over some other lines. For details of MCRR operations as of 1912, go here.

The 5-cent per $100 tax was paid with a single 50-cent battleship cancelled with a light blue circular datestamp of the M.C.R.R. Co. The stamp was further defaced with a three line cut-cancellation. This is late in the tax period; the tax on bonds and all other documentary taxes were repealed as of June 30, 1902.

M. C. R. R. Co.
May
1
1902

The Fullerton List; Railroad 55, The International & Great Northern Railroad

This post is part of a continuing series on Richard Fullerton's 1952 Catalog of Railroad Company, Street Railway & Express Company Printed Cancellations on the 1898 U. S. Revenues.

Examples of the cancels, when available, are posted.

RR055:  The International & Great Northern Railroad
 
The I&GNRR was featured on this site in a post on February 27 of this year. I've learned a little more about this railroad since that time, for while I reported than that the I&GNRR was bought out by the MOPAC in the 1950s and merged with the MOPAC, the two lines have always been run as if they were the same company.  Indeed, the I&GNRR and the MOPAC were the cornerstone of Jay Gould's and the Gould family's railroad empire.  Gould was active in railroads in the southwest from St. Louis to Texas, including other major lines like the Cotton Belt, which also issued printed cancels on the 1898 battleships. 

From the historical information as the back of the Fullerton Catalog:  A consolidation on February 19, 1872 of the Houston & Great Northern and the International RR, both Texas lines.  The I&GNRY was incorporated in Texas August 10, 1911, as successor to the I&GNRR due to foreclosure.  The line was purchased in 1924 by the Texas & Mexico Railway  but is now solely owned and operated by the MOPAC (RR075).

The Texas & Mexico and the MOPAC were Gould lines.
 
Handstamp cancels:  Fullerton lists three types of cancels in the I&GNRR section, including the catalog's only handstamp cancel.  In keeping with site policy regarding handstamps and the battleship proprietary series, I will omit this entry in my listing here.  Apparently there is an I&GNRR handstamp that looks somewhat like the type 1 printed cancel, and on this basis Mr. Fullerton probably felt obliged to include the cancel.  The cancel is Type HS-1, is a bold and large set of I&GNRR initials 21mm long.  This is not a printed cancel.
 
There are two major types of printed cancel, on three different denominations of battleship stamps and on R154, the green Franklin IR overprinted stamp.
 
Type 1:  One line of serifed caps 2.5mm high and 20.75mm long without punctuation.  Undated.
 
1ct Pale Blue              a.   Normal     (1)  Roulette
                                                        (2)  HH
                                 av.  Invert        (2)  HH
 
2ct Carmine Rose       a.  Normal      (1)  Roulette
                                                        (2)  HH
 
5ct Lilac                     a.  Normal      (1)  HH

Unlisted by Fullerton:

10ct  Dark Brown      a.  Normal      (1)  roulette 
 

Type 1, 1ct a.(1)

roulette

Ron Lesher scan

 

Type 1 1ct a.(2)

Hyphen hole

Type 1 1ct a.(2)

Hyphen hole Block of 4

Frank Sente scan

There appear to be numerous remainders of the I&GNRR 1 cent stamps, as this block can be added to a block of 100 recently sold in one of Eric Jackson's self-run auctions.

Type 2, 2ct  a.(1)

2ct roulette w/HS bullseye

Type 2, 2ct a.(2)

hyphen hole

Ron Lesher scan

Type 1, 5ct  a.(2)

5 cent hyphen hole

 

10ct roulette Type 1 - unlisted by Fullerton

Ron Lesher scan

Type 2:  One line of serifed caps 2mm high and 17.5mm long without punctuation.  Undated.
 
1ct Green - Perf 12, 1895 Regular Postage Issue overprinted "I.R." in 1898.
                    a.  Normal
 

Type 2  a.

Frank Sente scan

The I&GNRR is the only railroad known to have used a printed cancel on this stamp. 

 

*******

Example of IGNRR Handstamp

Ron Lesher scan

 

I&GNRR check with rouletted 2ct printed cancel

Corporate Bonds - The Patchogue Ice Manufacturing And Cold Storage Company

The tax on bonds was defined in the very first paragraph of the War Revenue Law Schedule A Documentary Stamp Taxes. Specifically, bonds, debentures, or certificates of indebtedness issued by any association, company, or corporation were taxed at the rate of 5-cents per each $100 of face value, or fraction thereof.

That initial Schedule A paragraph goes on to define taxes on both the initial sale, and on any resale, of stock certificates (we'll cover those taxes in subsequent posts). But there is no mention about any tax on the resale of bonds.

I'm not a student of financial history and there simply may not have been a resale market for bonds at this time. But it always has seemed odd to me that the law specifically taxed both the sale and resale of stock certificates, while only taxing the initial sale of bonds. We'd welcome comment from anyone who could share additional information or insight about the investment bond market circa 1900, and why only the initial sale of bonds was taxed.

I've found only scant information about the Patchogue Ice Manufacturing and Cold Storage Company whose $100 bond appears below. The company, according to its seal, was incorporated in 1898 and apparently was created via this $15,000 (later raised to $20,000) ten-year bond offering.

Only the first three annual interest coupons have been clipped on the several examples I've seen suggesting the company either was sold or closed in 1902. Can anyone offer further information about the disposition of the company and the fate of its founding investors?

It does clearly illustrate the basic 5-cent per $100 rate with a single five cent battleship documentary affixed next to the corporate seal, properly cancelled with the initials of its secretary and date of 12-28-98.

The Patchogue Ice Manufacturing and Cold Storage Company

$100 Ten Year 6% Mortgage Bond

Although it exhibits ornate scrollwork, the bond is not engraved, but appears instead to simply have been litho-printed on a generic stock form devoid of any defining vignettes. It nonetheless was nicely designed with the type having been set specifically to accomodate the placement of the corporate seal and the necessary tax stamp; a nice touch not found on some of the more elaborate, engraved bonds we'll show in future posts.

Detail showing seal and cancelled stamp with the

signature of Secretary, Joseph T. Losee, below

Closeup showing one of the attached annual interest coupons

The Fullerton List; Railroad 50, The Hannibal & St. Joseph Railroad

This post is part of a continuing series on Richard Fullerton's 1952 Catalog of Railroad Company, Street Railway & Express Company Printed Cancellations on the 1898 U. S. Revenues.

Examples of the cancels, when available, are posted.
 
RR050:   The Hannibal & St. Joseph Railroad
 
The Hannibal and St. Joseph Railroad was formally acquired by the Chicago, Burlington, and Quincy Railroad in 1883.

From the historical information at the back of the Fullerton Catalog:  Chartered February 16, 1847.  Building started 1853.  Road opened June 25, 1858.  Operated from Hannibal to St. Joseph, Mo. (206 miles), Palmyra, Mo to Quincy, IL (15 miles) and Cameron to Kansas City, Mo. (55.5 miles).  Consolidated in 1882 with the CB&Q.
 
One type only on two denominations:
 
Type 1:  One line of plain type caps and lower case letters 19.5mm long.  Caps 2mm high.  Undated.
 

1ct   Pale Blue                a.  Normal   (1)  roulette

                                                         (2)  HH
 
2ct  Carmine Rose          b. Normal   (2)  HH
 

RR050 Type 1, 1ct a.(1)

1 cent roulette

The Hannibal & St. Joseph Railroad bridge over the Missouri River at Kansas City.  Built in 1867-69.  The bridge played a major role in Kansas City's growth as a city and commercial and railroad center.

Bill of Lading - Illinois Central Railroad

Bills of lading and any other documents, such as manifests or express receipts, evidencing the shipment of goods were taxed a flat one cent according to the War Revenue Law. Neither the weight of, nor the quantity of items shipped mattered. As indicated by the Illinois Central Railroad Freight Contract illustrated below various items all sent to the same destination were considered as a single shipment. Essentially the 1-cent tax was levied on the shipping document, not the contents of the shipment.

The handwriting has faded, but clearly 1 box, 3 bundles, and 3 sacks, or a total of 6 items were shipped from Paducah, Kentucky to Bearden, Arkansas. As per the endosement in the lower left corner the shipment was routed via Memphis where it then had to be transferred to the Cottonbelt Railroad(St. Louis Southwestern Railway) for eventual delivery in Bearden. The transfer to another rail line was not subject to tax; the initial bill of lading, and the 1-cent tax thereon, covered the shipment from its origin in Paducah to its final destination in Bearden.

Illinois Central Railroad Bill of Lading

Paducah, Kentucky, August 23, 1898

RECEIVED BY THE
Illinois Central R. R. Co.
PADUCAH, KY.
IN APPARENT GOOD ORDER
AUG 23 1898
AND SUBJECT TO CONDITIONS NAMED
IN ITS BILL OF LADING.
Per (signed by J.F. Donovan)

Both John and I have blogged about the ICRR before. On July 8 it was the subject of the cancel of the day. On August 3, 2010 I wrote about the tax on an ICRR Parlor Car ticket. We both found the same ICRR route map online to then include in those blogs. Today's map comes from the back of the bill of lading. I had completely forgotten it was pictured there!

Route Map Illinois Central Railroad circa 1898

Cancel for October 7: Palatine Insurance Company

PALATINE

OCT    7    1898

INS.  CO.

The former pieces of the Palatine Insurance Company now function as a part of Aviva Group, a UK group of companies.

From the New York Times, November 13, 1900:

   NEW ORLEANS, La., Nov. 12. -- It has been definitely settled that the new Palatine Insurance Company of London, organized by the Commercial Union Assurance Association to succeed the Palatine of Manchester, which was purchased outright by the Commerical Union, will enter the Unted States Jan. 1, when the business will be transferred.

   A conference has just been held here by General Manager Owen of the Home Office, United States Manager Wray of New York, both of the Commercial Union, and Charles Janvier, Southern Manager for the Palatine of New Orleans.  After the meeting it was announced that the new Palatine would supplant the old Palatine on the first of the year.  Mr. Janvier will continue as Southern Manager of the Palatine, though with a smaller territory.

Credit Certificate taxed as a Promissory Note

Hammar Bros. White Lead Company sent this $2.50 credit certificate to a potential customer in order to induce a new order. Although it was never used, because it promised a potential credit it was taxed as a promissory note. The tax for promissory notes was 2-cents per $100 or fraction thereof. It's an unusual example of the application of the tax on promissory notes. Can anyone offer other examples of credit certificates like this one?

Hammar Bros. White Lead Co. $2.50 Credit Memo
St. Louis, Missouri June 3, 1901

Detail of stamp and cancel
Hammar Bros. White Lead Co.
Jun
3
1901

Requirements for using the certicate were detailed on the reverse side.

Reverse Side of Certifcate

The accompanying letter further explains the offer and, as was customary of the time, showed the company's plant as part of the masthead. Somewhat curiously the letter is dated May 22, 1901, almost two weeks earlier than the certificate, and the amount of the certificate, $2.50, was added by a penned notation.

Hammar Bros. Promotional Letter 5/22/1901

Masthead detail showing the company's plant in East St.Louis

Note the references to the B. & O. R.R.; the L. & N. R.R.; the Vandalia Line; and the E. St.Louis & Carondelet Line. Click on the masthead image to enlarge it.

The Fullerton List; Railroad 45, The Fremont, Elkhorn, & Missouri Valley Railroad

This post is part of a continuing series on Richard Fullerton's 1952 Catalog of Railroad Company, Street Railway & Express Company Printed Cancellations on the 1898 U. S. Revenues.

Examples of the cancels, when available, are posted.
 
RR045:  The Fremont, Elkhorn, & Missouri Valley Railroad

The Chicago & Northwestern Railway controlled the FE&MVRR at the time these printed cancels were produced, and was part of a coherent system along with RR040, the Chicago, St. Paul, Minneapolis & Omaha Railway.
 
Fullerton includes at the beginning of his RR045 listings illustrations of three types of ampersands used on these printed cancels:

These ampersand types are important for distinguishing between types of these cancels.  The heavy ampersands are designated with an "H", medium with and "M," and thin with a "T."

Type 1:  Two lines of plain type all caps 3mm high.  RR initials are 20.5mm long.  Line of 16 dashes is 22mm long and 6.5mm below.  Date is 6mm long, 2mm high, and 8 1/4 mm below.  Figure "1" of date is serifed.  Ampersand is style H.

1ct Pale Blue          a.  Dated 1898    (1) Roulette


Type 2:  Two lines of plain type all caps 3mm high.  RR initials are 20mm long.  Line of 16 dashes is 22mm long and 6.5mm below.  No date.  Ampersand is style M.

1ct Pale Blue          a.  Normal           (1)  Roulette

Type 2 a. (1)

No date, M style ampersand, roulette

scan courtesy of Frank Sente

Type 3:  Same as above except with date 2mm high.  1899 is 6mm long and 8 1/4mm below.  Figure "1" of date is serifed.  Amersand is style H.

1ct Pale Blue           a.  Dated 1899       (1)  Roulette

Type 3, 1ct a.(1)

Roulette, 1899, Heavy Ampersand

Ron Lesher scan

Type 4:  Two lines of plain type all caps 3mm high.  RR initials on the 1900 issue are 21mm long; on the 1901 and 1902 issues are 22.5mm long.  Line of 16 dashes is 22mm long and 6.5mm below.  Dates are 2mm high;  1900 is 6.75mm long, 1901 is 5.75mm long and 1902 is 6.75mm long.  Date is 8 1/4mm below.  Figure "1" of date is not serifed.  Ampersand is style M.

1ct Pale Blue             a.  Dated 1900        (2)  HH
                                 b.  Dated 1901        (2)  HH
                                bs.  Varieties:            (2)  Split cancel, 1901 above, HH
                                 c.  Dated 1902         (2)  HH

Type 4 a. (2)

1900 hyphen hole

scan courtesy of Frank Sente

Type 4 b.  (2)

1901 hyphen hole

Type 5:  Two lines of plain type all caps 3mm high.  RR initials 20.5mm long.  Line of 16 dashes is 22mm long and 6.5mm below.  No date.  Ampersand is style T.

1ct Pale Blue             a.  Normal              (1)  Roulette


Type 6:  Same as above except with date 2mm high.  1899 is 6mm long and 8.5mm below RR initials.  Figure "1" of date is serifed.  Ampersand is style T.

1ct Pale Blue              a.  Dated 1899       (1)  Roulette

Type 6

Thin Ampersand

Ron Lesher scan

Unlisted:  Type ?:  Same as above, 1899 year date, with medium ampersand:

unlisted by Fullerton

1899 with medium ampersand

Ron Lesher scan

The Fullerton List; Railroad 40, The Chicago, St. Paul, Minneapolis & Omaha Railway

This post is part of a continuing series on Richard Fullerton's 1952 Catalog of Railroad Company, Street Railway & Express Company Printed Cancellations on the 1898 U. S. Revenues.

Examples of the cancels, when available are posted.

RR040:  The Chicago, St. Paul, Minneapolis & Omaha Railway

This railroad was controlled by the Chicago & Northwestern Railway at the time of the use of these printed cancels.  The railroad was known as "The Omaha Road."


Type 1:  One line of plain type caps and lower case letters.  Caps 2.5mm high.  Top line 25mm long; "Ry. Co." is 12.5mm long.  Solid line 16.5mm long is 7.5mm below and to the left.  No date.

1ct Pale Blue         a. Normal  (1) Roulette

Type 1, 1ct Pale Blue.  Unlisted variety in Fullerton; scan from Frank Sente.  No date cancel with line shifted to top instead of below letters.

Type 2:  Same as above except with date 2mm high.  Date 1899 including period is 8mm long.  Solid line plus date is 25mm long.  Figure 1 of date is serifed.

1ct Pale Blue         a.  Dated 1899   (1)  Roulette
                            as.  Varieties        (1) "&" is .4mm high, Roulette

Type 2, 1ct a.(1)

1899 roulette

Type 3:  Two lines of plain type caps and lower case letters.  Caps 2.5mm high.  Top line 25mm long; "Ry. Co." is 13mm long.  Series of 26 dots is 16.5mm long and 5.4mm below "Ry. Co."  Dates are 2.4mm high; 1900 is 8mm long.  1901 is 6.5mm long.  No period after date.  Figure 1 of date is not serifed.

1ct Pale Blue        a.  Dated 1900  (2)  HH
                           av. Invert            (2)  HH
                            b.  Dated 1901  (2)  HH

Type 3, 1ct b.(2)

1901 hyphen hole

American Express Money Order

Yeah, I know, the remitter and the payee for this American Express Money Order are one in the same, it is made payable for just one cent, and it hasn't been cashed. That's three strikes against it being a normal, legitimate usage. But so what if it was likely just philatelicly inspired, or purchased as a souvenir, or for some other unknown reason?

How else would one obtain a usage example? Once cashed, money orders were returned to the company issuing them never to be seen again; not unlike the treasury bond interest check previously described here. I just wish F.W. Covel would have purchased it on July 1, 1898, the first day of the tax period, rather than 10 days later!

American Express Money Order for One Cent
Rockland, Maine July 11, 1898

Because it helps to "tell the story" of the usage of the 1898 revenue stamps (money orders were specifically taxed, like inland bills of exchange, at the rate of 2-cents per $100 in value or fraction thereof), I include it in my exhibit of taxed documents, acknowledging its likely nature as a philatelicly inspired souvenir.

Chapter 3 of the current 6th edition of

APS' Manual of Philatelic Judging, under Philatelic Importance, states, "...If the only existing material is philatelicly inspired or contrived, the exhibit should not be penalized for its inclusion."

I believe Covel's money order is a prime example of that situation. Can anyone otherwise show an example of a "cashed" money order from the 1898 tax period?

Can anyone show other philatelic items either addressed to, or created by, F. W. Covel?


UPDATE Tuesday October 5, 2010:

I'm reminded by Bob Hohertz, whose memory obviously is much better than mine, that he helped me secure this money order at a show some years ago. According to Bob he had found two of them in a dealer's stock and bought both and then offered me the one shown above, keeping the other one for himself. That one reportedly is dated July 5, 1898 and it bears a 2-cent I. R. overprint paying the tax.

But we still don't understand why Mr. Covel bought them!

Bob also suggested the purchaser's name was probably Covel, not Cavel. He was correct, as with that spelling I found reference to Mr. Covel on Google.

F. W. Covel was a manufacturer of fine sleigh trimmings and carriage name plates in Rockland, Maine. Mr. Covel took over the business in 1884 from his father, J. W. Covel, who founded it in 1875.

F. W. Covel is also credited as being the inventor " Covel's Electric Rheumatic Ring," for the prevention and cure of rheumatism in the wrist, arm and through the shoulders. The ring was composed of a coil of copper and zinc, and when placed upon one's finger it reportedly generated a current of electricity which passed through the affected parts giving immediate relief.

I wonder if the sale of those "Rheumatic Rings" were taxable under the proprietary tax laws as medicinal proprietary articles?

The more you learn, the more you wonder!

Letter of Credit

Letters of credit, like bills of exchange that were drawn in, but payable outside the United States, were taxed at the rate of four cents per $100, or fraction thereof. At the turn of the 19th the currency of choice for most world travelers was the British pound, so while this letter of credit was drafted at the National Bank of Commerce in St. Louis, it is for drafts against The Union Bank of London in the amount of 200 Pounds Sterling.

The first two pages of this quatro were engraved by the American Bank Note company and feature delicate scroll-work with the bank's name interwoven throughout as a security measure. The last two pages list the worldwide corresponding banks where drafts against the letter of credit may be drafted.

The National Bank of Commerce in St. Louis

200 Pounds Sterling Letter of Credit

October 26, 1898

Using the gold standard based exchange rate of L1.00 = $4.85, it had a value of $970. At 4-cents per each $100, or fraction thereof, it was properly taxed 40-cents.

Detail of Stamps and the Bank's Dated N.B.C. St. Louis Cancel

The letter was good for one year and James A. Thomas used it only once. At the Chartered Bank of Hong Kong, on April 4, 1899, he secured 100 pounds. Presumably upon return to St. Louis he turned it in to the Commerce Bank where it was cancelled with a perforation reading "CANCELED" along the right front edge and bottom.

Detail of April 4, 1899 Endorsement of the

Chartered Bank of Hong Kong

According to a handwitten note at the bottom of the second page of the list of corresponding banks, "In all cities marked thus (red plus sign) + drafts will also be cashed by Messrs. Thos. Cook & Son."

First Page of Corresponding Bank List

Detail from Corresponding Bank List

This is the only Letter of Credit bearing 1898 revenues that I've ever seen. If anyone has other examples we would like to show them too on the 1898 Revenue Blog.