Bank Note Reporter Article “Smythe Auction Beats $1 million”

First sale of Schingoethe obsoletes nets $608,692

Obsolete notes from the Herb and Martha Schingoethe Collection joined other bank notes, stock certificates and more in R.M. Smythe and Company’s Oct. 22 sale.

This initial offering of Schingoethe material filled 608 lots, and the selling price of these lots with the 15 percent buyers’ fees was $608,692. The rest of the sale’s 1,713 lots realized $532,295, which includes the 15 percent, for a full sale realization of $1,140,987.

The sale was held in conjunction with the ninth Strasburg Currency and Stock and Bond Show, Oct. 22-24, at the Netherlands Inn and Spa (formerly the Historic Strasburg Inn) in Strasburg, Pa.

We received the Smythe sale catalogs several weeks before the auction was held. One catalog, 237 pages contained 1,713 lots of paper money, stocks and bonds and other related items. A second catalog, part of the same sale, contained Part One of the celebrated Herb and Martha Schingoethe Obsolete Currency Collection, with 142 pages, 16 color plates and 606 notes from 26 states, emphasizing notes from the eastern United States.

We were positive before the sale that prices would soar for the Schingoethe holdings, and as you will see we were right. Breathtaking is the only word to describe this fabulous collection of obsolete notes.

We checked into the Netherlands Inn and Spa on Thursday and immediately went to the bourse area where dealers were wheeling and dealing. Auction lot viewing started in the midafternoon. Most of the seats were taken during the early viewing period. After looking at lots, we set up the table for the American Numismatic Association.

The first sale session contained items from both catalogs. The auctioneer was Robert Polito, himself a collector and dealer. He did one heck of a great job calling his first auction for the Strasburg show. The room had close to 50 in attendance with several holding multiple bidder cards. Session A started at 6 p.m.

Individual lot selling prices reported here include the 15-percent buyers’ fees.

Leading off were 165 stock certificates, of which 119 sold. Lot 1037, an 1855 American Express Type II certificate, signed by William Fargo as secretary and Henry Wells as president, along with Alexander Holland as treasurer, was estimated at $1,000-$2,000, cataloged as being in very fine condition. This item opened and sold to the book for $1,437.50. Lot 1168, a Rocky-Bar Mining of California 1850 two shares in very fine+, was described as “an extraordinary California Gold Rush certificate.” It opened at $1,000 and after furious floor bidding sold for $2,760 on a presale estimate of $750-$1,250.

A collection of 12 Eliphalet Remington autographs and other interesting lots included several from the Ilion Bank in New York. Highlighting the section was Lot 1109, 20 drafts from the Ilion Bank, New York (1853-1855), in VF. It opened at $800 and sold to the floor for $1,552.50. Estimate was $1,000-$2,000. Just about all the autographed Remington lots went between estimates with a few above. It was an interesting section that had great information on how the Remington family was involved in running the Ilion Bank, which later became the First National Bank of Ilion. We have noticed many Ilion Bank items for sale at auctions, online and at dealers tables in past months. It is evident a hoard came on the market in the past year or so.

Fifteen pages containing 91 lots of Continental and Colonial Currency did fairly well, with around 60 percent selling. The high-ticket items (over $4,000) didn’t sell. This is probably due to the recent sale of the John Ford collection which had many rare notes from this period cross the auction block. The items that did sell fared pretty well and went close to the estimates. Highlighting the section was Lot 1242, a North Carolina Nov. 21, 1757, £5 “Proclamation Money” in VF or so. It opened at $2,200 and sold to a North Carolina dealer for $3,105. A choice extremely fine-about uncirculated Georgia 1778 $30 “Boar Charging a Spear” note in Lot 1215 sold for $2,300 after opening at $1,950. The estimate was $2,500-$3,500. Finding uncirculated Georgia Colonial notes is very difficult. Even the Ford holdings had few uncirculated notes.

With the exception of two lots, all 50 of the Confederate States of America notes and bonds sold. Most trended between estimates with some going above. With a strong book, floor bidders were only able to get about half these lots. Lot 1314 contained an AU $500, T-64, Cr. 489B. Estimated at $400-$600, it sold to the book for $603.75. One page of CSA miscellaneous items was highlighted by Lot 1344, a print of Upham’s storefront by Adalbart J. Volck, which opened at $500 and went for $1,495, double its estimate of $500-$750.

The 279 lots of obsolete notes following covered 35 states and only about 19 lots didn’t sell. The book was strong so floor bidders had to fight for material - lots of highlights to cover in this section which saw bidding from many in attendance at the sale. Lot 1456, from Lowell, Mass., a Railroad Bank $500 proof from the early 1860s (MA-765-G-80 SENC), probably unique, saw heavy bidding. Estimated at $2,500-$4,500, it opened at $1,500 and after several floor bid jumps sold to South Carolina dealer Hugh Shull for $5,175.

From New York City, a Fulton Bank $2 from the 1830s-1840s (NY-1620 G-12), proof, Haxby plate note and ex Western Reserve Historical Society Collection, estimated at $500-$750, opened at $350 and sold to a phone bidder for $1,610.

This section contained several Santa Claus bank notes, which were highlighted by Lot 1541, a New York City Saint Nicholas Bank $1 dated May 14, 1862 (NY-1900 G2b), in about fine. It opened at $650 and sold to a floor bidder for $1,265. The estimate was $900-$1,200.

A spectacular group of nine Long Island Bank Notes all did well, selling around estimates. Lot 1504, a Brooklyn Long Island Bank $2 of March 1, 1862 (NY-325 G38b SENC), in fine, estimated at $400-$800, sold to a floor bidder for $1,150 after opening at $350.

Obsoletes continue their popularity and did well in this sale. Session One of the Schingoethe collection started at 9 p.m. Herb had a prominent seat at the front and received a round of applause. Nancy helped him keep track of selling prices. This first part of the Schingoethes’ wonderful collection saw 309 lots cross the auction block. Material from 17 states was included in this section. Only three lots didn’t sell. Everyone wanted part of the Schingoethe collection.

Lot 1665 contained a Hartford, Conn., Hartford Bank $5 from the 1830s (CT-165 unlisted) in AU, estimated at $800-$1,200. After opening a $1,000, it sold to the book for $2,530. A phone bidder was successful on Lot 1695. The “very rare” Marianna, Fla., Bank of West Florida $2, 1820s (FL-45 G-4), proof, choice AU, opened at $1,900 and sold to a phone bidder for $2,760.

An Eastern collector was bound and determined to get the Dover, N.H., note from the 1850s, a $1,000 from the Strafford Bank, 1850s (NH-75 G104a), in XF/AU. Estimated at $1,200-$1,600, it opened low at $725 and saw accelerated jump bids from several areas of the floor. After what seemed like forever it sold for $7,475 to a round of applause. We don’t know when the Schingoethes purchased this rarity, but it probably realized thousands more than they paid.

The 56 lots of New Jersey obsolete notes had about a half dozen serious collectors going after them. What a phenomenal group of notes it was, commanding high bids. Lot 1791, a City Bank $1 from Cape Island, dated Sept. 15, 1851 (NJ-75 G2a and Wait-365), Haxby plate note, fine+, estimated at $600-$900, opened at $600 and sold to a collector Tom O’Mara for $2,530.

Another super seller was Lot 1816, a Lambertville Bank $1 of Jan. 1, 1864 (NJ-275 G2a), in fine, Haxby plate note, estimated at $400-$600. After opening at $300, it quickly went up and up and sold to a floor bidder for $3,450 - an astounding price for a lower graded bank note. New Jersey was very hotly contested and everyone was shaking their heads when the section was finished. Not many notes from New Jersey fell below estimates with most going between.

New York followed and had one part sell this evening, the other part on Saturday. Like New Jersey and most of the other states from the Schingoethe collection, the 61 New York obsolete notes also did very well. Many went between or above estimates. A Cortland, N.Y., H.J. Messengers Bank $2 from 1864 (NY-1325 unlisted) in fine+, ex Muscalus 1988, was estimated at $800-$1,200 and opened at $900. It sold to a floor bidder for $2,530. Another great New York note was in Lot 1916. The Bank of Malone $2 dated Sept. 1, 1851 (NY-1320 G4a SENC), in choice fine, estimated at $600-$800, opened at $500 and sold to a floor bidder for $2,415.

The 33 uncut sheets that closed out this first part of the Schingoethe collection did well, some exceeding almost twice the price that the family had paid for when originally purchased. A District of Columbia sheet, Alexandria Bank of Potomac $6-$7-$8-$9, 1830s (DC-30 unlisted), purchased in 1990 (ex ABNCo sale by Christie’s Lot 177 for $2,530) opened at $2,250 and sold to a book bidder for $6,325. It was a nice selection of choice sheets that sold very well. It took roughly two hours to sell this first group of Schingoethe items.

After a short break, the session continued with lots from the other catalog. The time was 11:10 p.m.

Large-size paper money saw almost all 49 notes sell between estimates, most to floor bidders. Circulated large-size type is popular and in demand. The 167 National Bank Notes from 30 states all sold except 12 lots. Lot 2059, a Quincy, Mass., First Charter $1 from the National Mount Wollastan Bank, VF, opened at $3,000 and sold for $5,290. The estimate was $1,750-$2,500. Lot 2111 was a serial No. 1 Yonkers, N.Y., Central National Bank Series 1929 Type 1 $5 in gem uncirculated. It was estimated at $3,000-$4,000, opened at $1,800 and sold to a floor bidder for $3,795. Lot 2129 a Claysburg, Pa., First National Bank 1902 $10 Plain Back in VF opened and sold to the book for $2,300. Estimate was $750-$1,250. The last National we will cover was Lot 2186. The Soldiers Grove, Wis., First National Bank Series 1929 Type 1 $20 in very good, estimated at $1,250-$1,750, opened at $2,200 and sold to a phone bidder for $2,760.
This ended the first session.

Saturday evening’s session had about the same number of people as Friday. Saturday led off with 105 stock and bond certificates. All but 19 sold. Though not a stock or bond item, Lot 2239 was an 1870 Erie Rwy annual pass signed by Jay Gould as president, issued to Honorable D. Boardman, graded XF. Estimated at $4,000-$6,000, it opened at $4,250 and sold to the book ($4,887.50). Another Erie pass followed from 1872, signed by Gould and issued to W.C. Pierrepont, XF. With the same estimates, it also opened and sold to the book at $4,250 ($4,887.50). Lot 2244, a Florida Rail Road certificate, 1858, 250 shares, VF, estimated $300-$500, had dueling phone bids. After opening at $425, it sold for $1,322.50 to a phone bidder.

Lot 2415 contained an exceptional group of Gould and Erie Railroad items (including his autograph). Estimated at $2,000-$3,000, it opened at $1,400 and sold to a floor bidder for $1,897.50. A neat lithographic specimen book in Lot 2418 saw spirited bidding. This unusual book from circa 1880 held specimens of lithographic work by Snyder, Black & Sturn, 92 William St., New York, N.Y. With over 600 vignettes, it opened at $200 and sold to a collector for $1,437.50 on an estimate of $350-$450.

Seven of 17 offered U.S. Treasury certificates sold. A 1918 Fourth Liberty Loan $100 4-1/4 percent Gold Bond of 1933-1938 VF+ (Lot 2318), estimated at $1,000-$1,500, sold for $1,150 to the book. All the rest of these certificates that sold went below estimates.

Small-size type notes had 120 lots cross the block with about 27 not selling. The items that did sell saw pretty strong prices around or between estimates. One we would like to cover is Lot 2530. We looked at this Series 1928 $500 Federal Reserve Note from the St. Louis district. Catalogers graded it choice AU, and we couldn’t find very much wrong with it. The tiny tip fold could barely be seen. It was very attractive with a lot of crispness. Estimated at $2,000-$3,000, it sold for $1,782.50. We have seen notes like this in dealer cases at prices hundreds more. Aalways look at notes in auctions!

Two pages of U.S. small-size autographed notes saw most of them go to the strong book around estimates. Lot 2576C, a 1934 $5 FRN (Kansas City district) autographed by Henry Morgenthau, choice AU, estimated at $200-$400 sold for $402.50.

Small-size error notes were similar in price to the small-size type, with most going around estimates.

The 64 lots of U.S. Postage Currency and Fractional Currency saw some strong prices. These appear to be getting more popular in the sales we track. Lot 2686, a 50-cent KL-3292, Fr. 1340, Type II in gem uncirculated, estimated at $750-$1,250, opened at $500 and sold to a floor bidder for $1,437.50. Lot 2658, face and back specimens of a three cents, KL-3252SP and 3253SP, Fr. 1227-SP, in choice AU, estimated at $125-$175, opened at $250 and sold to a strong book at $690. Lot 2679, a 25 cents, KL-3274, Fr. 1300, fiber paper, ex Rocky Rockholt Collection NASCA Sept. 12, 1981, uncirculated, sold to the book for $2,932.50. The book was $2,500-$4,000. Finally in this section Lot 2706 a Stanton 50 cents, KL-3345, Fr. 1376, gem uncirculated, estimated at $250-$350, opened at $300 and sold to the book for $431.25.

Two U. S. postal notes sold very well and twice the high estimates. One was for two cents, Danville, Ill., 1892 in VF selling for $546.25, and the other a Type V for three cents, Norwich, N.Y., 1894, XF, selling for $632.50.

Of great interest to us were two groupings of documents and checks with the signature of F.E. Spinner. When we first looked at this material, it was hard to believe so many checks could be found made out to Spinner and autographed on the back by him. It probably was part of the Illion, N.Y., hoard mentioned earlier in this coverage. As great collectors of Spinner documents, etc., we had to bid. The first lot contained eight items. With an estimate of $150-$200, it sold for $373.75. The other one was even more interesting. With 38 documents and checks, it was estimated at $500-$750. It sold for $1,092.50. We have now added some fresh Spinner items to our collection.

There was a stop in the sale from this catalog, switching to the second portion of the Schingoethe collection.

Close to 300 lots of Schingoethe notes remained. More New York obsoletes notes led off. The sale was going great and Herb seemed to be enjoying himself. Besides New York, nine other states were represented in this session, along with Bank of the United States notes and obsolete proof sheets. About nine lots didn’t sell in this portion.

Leading off was a superb 1890s Bank of America $10,000 specimen in choice uncirculated. Estimated at $2,000-$3,000, it opened at $2,450 and after determined floor action it sold for $6,612.50. This section started out with a bang.

Lot 2713, a New York, N.Y., City Bank $10 proof from the 1830s (NY-1515 G106), Haxby plate note, in uncirculated, opened at $700 and sold for $2,300 after two floor bidders fought for the note. The estimate was $600-$800. An incredible high-grade set of $11, $12, $13 and $14 proofs from the Commercial Bank of the City of New York all went over their high estimates. The $11 sold for $2,530, the $12 for $2,645, the $13 for $3,565 and the $14 for $4,025. If you missed the sale of these scarce denominations, Herb and Martha purchased another set of these same denominations from the 1996 WRHS sale by Spink. They were in Lot 671 on New York’s Phoenix Bank. They paid $3,850 for that lot.

A Skaneateles, N.Y., Lake Bank $5 dated Aug. 16, 1863 (NY-2585 G-10a), Haxby plate note, VG-F, estimated at $500-$750, opened at $300 and sold to a floor bidder for $1,380. A scarce Philadelphia, Pa., Patterson Dubois three-cent Jan. 1, 1850-1860s printers proof (ex Spink November 1996 sale) in Lot 2883 sold for $1,035 after opening at $300. The estimate was $200-$300. An impressive Philadelphia Bank of Pennsylvania $5,000 proof, 1830s (PA-480 G212 SENC), (ex Christie’s ABNCo archives sale 1990, Lot 1685, $1,430) was in Lot 2903. Opening at $1,000, it sold to a floor bidder for $2,760. The estimate was $1,500-$2,500.

Vermont had a “Gorgeous ABN Imprint Green Protector Proof” $10 on the Rutland County Bank, July 15, 1862 (VT-205 G8a SENC). This choice uncirculated note was estimated at $1,250-$1,750. After opening at $1,050, it had several jump bids and finally sold to a floor bidder for $2,530. A Farmers Bank of Two Rivers, Wis., $10 dated Feb. 15, 1859 (WI-800 G8a), uncirculated (ex Lot 2081 ABNCo sale where it realized $2,200, and two other similar lots in this sale sold for $1,420 and $1,980) went for the book for $1,725. This was probably one of the few items in this first Schingoethe sale that sold for less than Herb and Martha paid for it. Since it was the last single note in this first sale of their vast holdings, we can only think that people ran out of money.

This first Schingoethe sale ended with Lot 2997. The fine Bank Coffee House - Back of the United States Bank 6-1/4 cents (circa 1837 no date) satire on the Bank of the United States was estimated at $300-$600, opened at $750, and the book finally was successful in purchasing the note for $1,955.

Obsolete sheets finished out this first sale of the Schingoethe collection. The 22 sheets went very well, most going between and several above estimates. Highlighting was Lot 3015. The Philadelphia Bank of Pennsylvania $500-$500-$1000-$1000 proof sheet (ex Christie’s ABNCo archives sale, September 1990, Lot 1684, $4,400), gem uncirculated, opened at $4,000. A fierce floor battle took place with several jumps in price. Auctioneer Bob Polito encouraged more. It finally was concluded at $8.912.50.

After the hammering down of only a few more lots, the first sale of Schingoethe notes ended at 9:40 p.m. Many more sales from will take place in the future. Everyone who thought that Herb and Martha overpaid in the past can now see that for the most part they didn’t. The book, phone and floor bidders all came prepared to pay what it took to get the notes.

Hats off to Smythe for preparing a wonderful catalog for the Schingoethe family. We will dub this “Another Start of the Sale of the Century.” It is a catalog that belongs in every paper money collector’s library. We would like to suggest to the Smythe firm that a hard-bound catalog be prepared for every two sales of Schingoethe material. We are sure many would subscribe for this.

The Saturday sale session still wasn’t over, though, as we had to finish out catalog one.

Four pages of obsolete group lots went for estimates, some going over. They were hotly contested by several dealers and collectors. Four pages of engraving and security printing items also fared well and saw interest from several in attendance. Most went around estimates.

A four-volume set of the Standard Catalog of U.S. Obsolete Bank Notes, 1782-1866, in XF, opened and sold to the book at $1,207.50. The set’s issue price was about $190.

The near 230 lots of world currency trended a little below estimates, with about 106 not selling. We think that because so many tens of thousands of notes came out of the ABNCo in the early 1990s, it will take a while before demand catches up to supply. Proof examples sometimes are unique. This is one area of the hobby that newcomers can get into and spend minimal amounts of money. We think that in about 10 years prices could rise to levels that would have you smiling.

Thus ended a very diverse and interesting Smythe sale that saw a strong book, excellent floor and phone bidding. This sale had to have something for even the most discriminating collector. The first part of the Schingoethe collection was very successful. Collectors and dealers probably spent as much money as they thought they would but only came away with half the lots they wanted. Bidders we talked to the next day were very happy and thought the auction and show were successful. We like to jump in on certain items for our collections and found the prices to be a little higher then we wanted to pay.

Of the 595 bidders who registered, 352 were successful in obtaining lots.