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ACCent: The Monthly Newsletter of the Anchorage Coin Club

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Volume 25, Number 11


November 2012


November Membership Meeting

Wed., Nov. 7, 2012

Central Lutheran Church, 15th & Cordova

7 PM



Minutes for the October 3rd Membership Meeting

Door Prize: 2004-S Lincoln Cent Proof. Won by Bill Rodeck.

Membership Prize: 2002-S Lincoln Cent Proof. Won by Jill Barnhart.

    Briefing by club president (Carl) on details of the upcoming Oct 13th / 14th Collectibles Show at the Northway Mall. Cost of a table will be $40 for the weekend. Interested members can arrange a table through Excalibur Sports/Northway Mall (organizer of the show).

    Reminder that club members are asked to submit coin designs for our club's upcoming 25th Year Coin Set. Club will make 25 years in March, 2013.

    Larry Nakata then gave a presentation on "U.S. State Bank Notes 1836-1866". Following presentation, the club's monthly coin auction was conducted.

Meeting concluded following auction.

Minutes of the October 19th Board Meeting

    Meeting called to order at 6:50 PM by club president (Carl). Board meeting held at the Yamato Ya Japanese Restaurant (located near the University Center).

    First order of business was to process paperwork for renewal of the club's gaming permit (which is required for our club raffles).

    Discussion on results of the Oct 13th / 14th Northway Mall Collectables Show. Decision by Board is that our next coin show to be held at the University Center on Sat Dec 8th / Sun Dec 9th. Carl will make arrangements. Announcement of coin show to be made in this month's club newsletter and at the club meeting on Nov 7th.

    Board then discussed arrangements for the club's Christmas Party on Thursday evening/ December 13th at the Central Lutheran Church. The club will provide the chips, dips, beverages, plates, forks, spoons, knives, napkins, and table cloths. We have volunteers that will bring the main dishes (turkey and ham), mash potatoes, and gravy.

Club members will be asked to bring potluck dishes to augment these dishes.

If your last name starts with the letters A thru H, bring a salad.

If your last name starts with the letters I thru P, bring a side dish.

If your last name starts with the letters Q thru Z, bring a dessert.

Start time (like last year) will be at 6 PM.

    The key event at the Christmas Party will be the coin club's Christmas Coin Auction. Members wanting to have their auction lot coins posted in our next newsletter are asked to bring their list into the Nov 7th club meeting. Members can then bring their coins and numismatic auction lots to the Dec 13th Christmas Party.

    Raffle prizes will be drawn at the Christmas party. Need to promote raffle ticket sales with our club members. At this time, the ticket sales are less than the value of the prizes.

    Next club meeting (on Nov 7th) will see a presentation by Larry Nakata on the subject of "History of U.S. Proof Coinage". Members are asked to bring in potluck dishes as refreshments to this meeting....... Larry Nakata/Secretary.

Bill Fivaz Coin Lots Submitted for the November Auction

1. 1929P S. L. 25c AU-58 (FH) Minimum Bid (MB) $45

2. 1884-CCS1.00 MS-60 MB $160

3. 1915 Indian $2-1/2 AU TBD

4. 1881 Liberty $5.00 AU TBD

5. 1907 No Periods Indian $10.00 TBD

6. 1908 No Motto $20.00 St. G. MS-63 TBD

7. 14K Miniature $20.00 St. G. BU MB $15.00

8. 1925 Stone Mt. 50c VF MB $23

9. V.E./V.J. Day 1945-P 1c Encased Cent EF MB $5

10. 1799 Mex. 8 Reales (Mo Mint) Fine MB $35

11. 1963 Red seal $2.00 Crisp UNC MB $5

12. Donation from Bill: 1934-A Blue Seal $5.00 Fine

Note: TBD (To Be Determined). Because of the bullion value of the gold coins, Bill Fivaz will provide the minimum bid (MB) pricing several days prior to the Nov 7th club meeting.

Have items to sell in the December holiday auction? Bring your list to the November 7 meeting and we'll list them in the next newsletter.



    The Anchorage Coin Club's is seeking designs for its anniversary medallion program. The club will celebrate its 25th year on March 2013. Design concepts should be submitted to the club (or to a club officer) by our Thursday, December 13 potluck meeting. Stay tuned for more information on the production and availability of these highly collectable commemorative sets.


U. S. State Bank Notes 1836-1866
By Larry Nakata (Life Member #3)

    In earlier newsletters, I wrote a two part article on the "History of US Paper Currency". In this article, I'm going to focus on the "U.S. State Bank Note System" and its demise at the end of the U.S. Civil War.

Prior to the presidency of Andrew Jackson, the Constitution of the United States allowed for:

Each state the right to have local banks issue their own paper currency.

Yet the Constitution also allowed for the Federal Government to establish a National Bank that would act as a repository for federal funds and act as the Federal government's fiscal agency. By the way.... today that National Bank is called the Federal Reserve Bank.

    This created an intense rivalry between both banking systems. What was essentially at stake was the power of the Federal Government vs. State Rights in determination of U.S. monetary policy.

    When Andrew Jackson assumed the U.S. presidency, he solved this problem by not allowing for the renewal of the charter of the Bank of the United States in 1836. At this point, the State Bank Note System became the primary paper currency system until the Civil War.

    In this system, each State encouraged local banks to make and issue their own paper currency. This currency to be backed by the local bank's reserves of gold and silver coinage (and bullion).

The effect of having such local currency was that it helped stimulate that local region and the state's economy.

However... on the other hand.... the State Bank Note system was not without its problems:

Each state had its own monetary policy with no two states doing it the same.

Foreign governments really wanted to deal with one national bank rather than a number of state banks.

More important....there were lots of problems with local banks "going under".

    While a local bank was only as good as the gold and silver in its vault.... in all cases, the bank always issued more paper currency than what gold and silver was held in their vault. If there was any sign of instability in that bank, the public would cause a "run on the bank" by redeeming that bank's paper currency for gold or silver coinage/bullion. Many local banks went "under" in this way as there was little if any help from the state to "bail them out".

As a result, by the start of the U.S. Civil War, there existed a period of economic instability nationwide.

    With the start of the U.S. Civil War, both the North and the South had to solve the problem of funding their respective war efforts. It became apparent that funding war efforts via the State Bank Note system was not going to work.

    Accordingly, both the North and the South realized they would need to issue their own national paper currencies. In the North, it was called Federal Currency. In the South, it was called Confederate Currency.

    In the North, the Federal Government immediately forced all State Banks in the North to deposit (from their vaults) gold and silver equivalent to 10% of the value of the paper money they issued. This effectively amounted to a 10% tax on the North's economy. By 1862, the Federal Government issued the first Federal currency.

    In the South, State Bank Notes continued...but unlike the North.... no tax was imposed on the notes. Instead, the South issued Confederate paper currency. At first, the populace of the South supported the Confederate paper currency. But as the Civil War dragged on, support crumbled...not only for Confederate currency, but also the State Bank Notes in the South. It especially got aggravated in the latter years of the war when the South was losing. By this time, both paper currency systems in the South essentially became worthless forcing the South's economy to one of "barter and trade".

    With a stronger economic base in the North, the North was able to avoid these problems and in the end prevailed in the U.S. Civil War.

    By the end of the Civil War, the State Bank Note system had pretty much reached its end. State Bank Notes in the South and Confederate paper currencies were demonetized by the Federal Government.

At this point Federal paper currency dominated and in 1866, the last of the State Bank Notes were issued.

    What would replace the State Bank Note system would be National Bank Notes (1863-1935), which was nothing more than Federal currency notes with banks being able to have their bank names printed on these notes..... for a price. That price being these banks had to deposit U.S. Bonds in the U.S. Treasury equivalent to 90% of the value of their National Bank Notes.

Fairbanks Five

    It was a good form of advertising for these banks who were willing to pay such a price. But the Depression of 1929 would eventually see the Federal Government change the Federal Currency System to Federal Reserve Notes and Silver Certificates in 1935.

    By 1965, even the Silver Certificates would give way only to the Federal Reserve Notes we see today........... Larry Nakata.


Upcoming Events

Wednesday November 7 at 7pm - Coin Club membership meeting at Central Lutheran Church

TBA - Coin Club board meeting

Saturday & Sunday December 8 & 9 -Coin Show at University Center

Thursday December 13 6pm-Coin Club annual holiday potluck meeting, auction and raffle drawing. NOTE: There will be no meeting on Wednesday December 5



America The Beautiful:
Denali National Park and Preserve Quarter
By Carl Mujagic (Life Member #2)

    On November 5, 2012 the 15th coin in the America the Beautiful quarter program (and the fifth coin for 2012) will be issued featuring Alaska's Denali National Park and Preserve. The U.S. Mint will host an official launch ceremony quarter on November 15, 2012 at 10:00 a.m. in Healy, Alaska at the Tri-Valley Community Center, .5 Mile Healy Spur Road. They will also host a coin forum the evening before on November 14, 2012 6:00 p.m. at the Tri-Valley Community Library, 400 Suntrana Road.

    According to, a typical quarter launch ceremony lasts between 30 and 40 minutes, featuring entertainment and historical commentary from local dignitaries. The event is followed by a coin exchange that is generally popular with attendees. Names of the local, state, or federal officials and representatives who have been invited to attend or speak at the ceremony have not yet been announced. Given the remote location and sparse population of Healy and its surrounding areas, it is a good bet that this will not be a typical event. However, at least four people have indicated they will be attending on the U.S. Mint's Facebook page for the event, and two do appear to be from out of state.

    Before a design was selected for the 2012 Denali National Park Quarter, five candidates were created by United States Mint artists. These were submitted to several entities, including the Citizen's Coinage Advisory Committee (CCAC) and the Commission of Fine Arts (CFA) who are tasked to review all American coinage and medal designs. Eventually, all of the design candidates for the 2012 America the Beautiful Quarters were given to the Secretary Treasury who made the final selection.

    The selected design was created by Susan Gamble and then sculpted by Jim Licaretz. It features a Dall sheep with Mount McKinley rising in the background. Inscriptions are DENALI, ALASKA, 2012 and E PLURIBUS UNUM. Design candidates were developed in consultation with representatives of Denali National Park and Preserve.

    Denali National Park was first established as a national site to protect wildlife populations on February 26, 1917. In 1980, the park was expanded from 2 to 6 million acres, including preserve lands, and the name changed from Mount McKinley National Park to Denali National Park and Preserve. The park's dynamic glaciated landscape supports a diversity of wildlife but is perhaps most well known for the awe-inspiring 20,320 - foot Mount McKinley, the tallest mountain in North America.

    In 2010, the United States Mint began to issue the quarters in the America the Beautiful program. By the time the program ends in 2021, there will be a total of 56 quarter-dollar coins released. Each design on their flip sides will focus on a different national site in each state, territory, and the District of Columbia. Although each reverse will be different, each obverse will be the same, featuring the portrait of George Washington by John Flanagan, used on the quarter-dollar coin since 1932. The standard inscriptions are included: "United States of America," "Liberty," "In God We Trust," and "Quarter Dollar."

Denali Quarter




    Just another reminder to invite all members, family and friends to the Anchorage Coin Club's annual holiday potluck party on Thursday December 13 at 6pm. The club will be providing ham, turkey and mashed potatoes and gravy. We encourage people attending to please bring a side dish or dessert.

    The featured event will be a Coin Auction so if you are submitting coins and numismatic items to sell, bring your list to our next club meeting (on Nov 7th) and we will make sure the lots are listed in the newsletter. The club is need of coins to be donated and for members to actively sell raffle tickets so the club can continue on with great events like this one. The club is looking to increase membership and participation to restart the Young Numismatist program.

    The Anchorage Coin Club has recently set up a Facebook page - 
Currently, we have nine "likes" and would like to build this as a place to notify folks about events and numismatic news relevant to the club.

    We are currently looking for someone to help with editing the newsletter and/or update the Facebook page. These are very easy tasks and all members in the club would appreciate the assistance to continue the newsletter and the growth of the Anchorage Coin Club. As always we encourage all positive feedback, ideas, articles and materials to be submitted for the newsletter.

    Finally, there will be a coin show on Saturday and Sunday December 8 & 9 at the University Center. Tables are limited and a great deal at $10 so reserve them now if you are interested. This is a great place to buy and sell for everyone.

Your Friend in Numismatics, Carl




ADDRESS :_________________________________________________

CITY:________________________ STATE:_______ ZIP:___________

TELEPHONE (HOME):________________________________


MY COLLECTING INTERESTS ARE:________________________________




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          $25 / Year Regular Membership

          $10 / Year Youngsters & School Aged Kids up to Grade 12

          $10 / Year for Seniors, Handicapped Members,
                    and Associate Members Living Outside Anchorage

Send application and dues to :

Anchorage Coin Club
P.O. Box 230169
Anchorage, Alaska 99523



Tickets $5 each, 5 tickets for $20, or 11 tickets for $40. Purchase at a meeting or from Carl's University Center 1pm - 6pm Tuesday - Saturday

First Prize: 1926 $2 & 1/2 U.S. Gold Indian PCGS AU55

Second Prize: 1899 U.S. $1 Silver Certificate (Black Eagle) PCGS F12

Third Prize: 1944-S Mercury Dime Certified ICG MS-65

Drawing will be at our Dec 13th Christmas Party



President: Carl Mujagic

Vice President: Robert Hughes

Secretary: Larry Nakata

Treasurer: Stan Mead

Board Seat #1: Loren Lucason

Board Seat #2: John Larson

Board Seat #3: Tim Burke

ACCent Editor: Carl Mujagic