From: "MPCgram" To: Subject: newsletter 1091 Date: Thursday, January 22, 2004 8:27 PM ============================================= MPC GRAM ============================================= Covering the entire World of Military Numismatics Series 005 - Number 1091 Friday January 23, 2004 Adjusted Service Bonds & The WWI Bonus By David Klinger I recently found a scan of an Adjusted Service Bond (ASB). I had never even heard of such a bond before so this opened up an interesting story for me about the military bonus program of The Great War (WWI). The Adjusted Service Bonds are unusual in many respects. First, they were issued on 15 June 1936, and matured nine years later on 15 June 1945. They were only issued in one denomination ($50.00). They were printed by the Bureau of Engraving and Printing, and have a Andrew Jackson vignette at the top which is similar to the vignette used on the $20 bill of the era. They payed 3% per annum simple interest, but could be cashed at face value as soon as they were received. The amount due on 15 June 1945, was $63.50 per Bond. This particular bond was sold online within the last year for $750.00. You can view the bond at the following web address: www.antiqnet.com/search/images.jsp?id=78551 The full story starts at the end of the First World War (11 November 1918). Several veteran groups, and many US Congressmen were already lobbying for a "soldiers bonus". Some wanted military scrip issued as happened after previous wars - to be exchanged for land. Others wanted a simple cash bonus. The debate went on for several years, and finally in 1924 the World War Adjusted Compensation Act was passed, over the veto of President Coolidge. It provided for the payment of a "bonus" with interest aimed to adjust the pay of armed forces members during World War I, in compensation for lost wages in the private sector during their service. The payment was not to be made until 1945. The mechanism used to pay the bonus was to issue Adjusted Service Certificates (ASC). I have not been able to find a picture of an ASC. In effect, Adjusted Service Certificates were 20-year endowment insurance policies maturing on 15 June 1945. They earned 3% simple interest over this period. To qualify for the bonus, a veteran had to have at least 60-days service between April 15, 1917, and November 11, 1918. The bonus paid was $1 a day for Stateside service and $1.25 a day for overseas service. They (ASC) could not be used as collateral, so the money was out of circulation until 1945. The average payment due in 1945 was more than $1000.00. In 1931 an ammended bill was passed over President Hoover’s veto that gave soldiers the right to borrow against bonus certificates for as much as 50 percent of their value. President Hoover warned against this in his 1931 State of the Union Address when he said: "The law enacted last March authorizing loans of 50 per cent upon adjusted-service certificates has, together with the loans made under previous laws, resulted in payments of about $1,260,000,000. Appropriations have been exhausted. The Administrator of Veterans' Affairs advises that a further appropriation of $200,000,000 is required at once to meet the obligations made necessary by existing legislation. There will be demands for further veterans' legislation.... But our present expenditure upon these services now exceeds $1,000,000,000 per annum. I am opposed to any extension of these expenditures until the country has recovered from the present situation." It was also President Hoover who signed an Executive Order to establish the Veteran's Administration, possibly to put some of these events in order. The Bonus March - In the spring of 1932, more than 20,000 veterans, most of them unemployed and in desperate financial straits, spontaneously made their way to Washington, D.C. They demanded passage of a bill providing for immediate payment of their World War I bonus. Calling themselves the Bonus Expeditionary Force (BEF), they camped in vacant government buildings and in open fields. One headline dubbed the event: "The Shame of Anacostia Flats". The veterans conducted themselves in a peaceful and orderly way, but when the Senate defeated the Pittman Bill (June 17, 1932) the marchers refused to return home. On July 28, President Herbert Hoover ordered the army, under the command of GEN Douglas MacArthur, to evict them forcibly. One of MacArthur's unit commanders was LTC George Patton. The Army had their camps set on fire, and the army drove the veterans from the city. Hoover was much criticized by the press and the general public for the severity of his response. In 1935, Congress passed a bill providing for the immediate cash payment of the war bonuses. Franklin Delano Roosevelt vetoed it. In 1936, FDR vetoed the same bill again. But on Jan. 27, 1936, the veto was overridden. The next day's Washington Post headline read: "Soldier Bonus Becomes Law as Senate Crushes Veto, 76-19; Full Payment Sped for June 15." The payment method used was to issue Adjusted Service Bonds - so the story comes full circle. The Bureau of Public Debt, US Department of Treasury reported in 1999 that there was $300,600.00 in unpaid Adjusted Service Bonds for the Veterans of The Great War. Since all the bonds were of $50.00 denomination, this means that in 1999, 6012 of these bonds were "still out there". The bonds can still be redeemed at the same office as can the Armed Forces Leave Bonds. That office says that only a "very few" ASBs have been redeemed since 1999. Also, just as in the case of the AFLBs, remainder amounts due were paid by check. One account I found (on a genealogy web site) was of a soldier who in 1936 was due to receive $973.00. He received his Adjusted Service Bonds and a check. There was no date on the notice. He received: 19 bonds with serial numbers 32,410,751 – 32,410,759 in the amount of $950.00. The check (No. 969,717) from the US Treasury was for $23.00. I wondered if any Gramsters have examples of these Adjusted Service Certificates or Bonds? MPC @ PCNS By Dean Neald Just wanted to inform you and the Gram readers about an upcoming talk. At the next Pacific Coast Numismatic Society (PCNS) meeting Wed Jan 28/04 (8 pm) there is going to be a talk on "Brief History of Military Payment Certificates" by Elliot Wehner. The location is Fort Mason, Building C in San Francisco. I found it very interesting that a talk on military money would take place on a military (ex-military?) base. I am a member of PCNS (correspondence/newsletter type member) but will not be able to attend the talk because of the great distance involved. ============================================= Editorial/opinion ============================================= I finally received a Series 2004 $20 (what else?) star note in circulation (SN EE00198375*). I suppose that it is extremely fine. It certainly has circulated. It is hard for me to let these things go so I will put it aside. I received a report that the February Bank Note Reporter is in the mail. This is the annual MPC issue. The report is that it is better than last year with respect to news, features and advertising. Of course it goes without saying that it could/should be better. Indeed, I know of two mistakes (of omission) that were made this year that we can correct for next year. Still, every one of these issues is a milestone in the history of MPC collecting. Thank you KP and BNR. Of course we would like to have some reader comments on the issue when it arrives in your mail box. ============================================= MAIL CALL ============================================= Dear Steamed (and Pressed) Editor, Regarding the "Nice picture of you in the newest issue of Paper Money...Page 75," I am in awe of your sartorial elegance. Where can I get a nifty, I say nifty, sports jacket like that? Warner Dear Warner, You should be careful of what you wish for. If you stop to think about it, you probably will not be surprised to learn that I still have that jacket. It is sort of the black hole effect. Heck, I might put it in the Fest Auction. Editor Dear Gram, So what happened to grams 1086 and 1087? The Dutch tokens were not in the 1978 book because that book listed only paper currencies. I mentioned the show I was at specifically - "the Boeing Employees Coin Club annual show." Paymaster must not like Boeing and skipped that line. Joe Dear Joe, It is rather amazing that I have to give this discussion in response to a letter from you. I appreciate the straight man set up. The 1978 Schwan/Boling World War II Military Currency featured paper money, but it did include tokens and to an even more limited extent coins. The best example of tokens included are the NAFFI pieces. Ironically, these tokens were even included in the 1973 (and possibly earlier) WWII Allied Military Currency. In 1973 I did not understand that the word currency includes paper money AND coins (a sad misconception that is still widespread in collecting). By 1977 I understood this and we attempted to include coins in the first SB. Editor Dear Editor: I didn't make it to the office on Wednesday, and am now caught up on reading Grams. I received #1084 and #1085 both dated Tuesday. Then #1088 dated Wednesday. I know I'm in a time warp, but did I miss something. Richard Dear Richard, In your subsequent email you asked that I disregard this one, but I could not do that for two reasons. First, references to time warps cannot go unused and secondly, the Gram does not like to pass on letters to the editor. Editor ============================================= CALENDAR OF EVENTS ============================================= 2004 CPMX February 26-28, Lyn Knight auction. March 5-7, MPCFest V, reservations now being accepted. Reservations entered in order received: Roger Urce#$$, John Cheney#$, David Seelye, Harold Kroll, Gail Baker#, Leo May$$$, Kevin Neidy, Cuneyd Tolek, Warner Talso$$, Cameron Bueschel, Wendell Wolka, John V. Craig#, Steve Swoish, Joe Bissell#, Sparky Watson$, Nick Schrier, Loretta Freyser, Dick Freyser, Ron Waddell$, Robert Drew, Ed Arrich#, Neil Shafer#$, Kathy Freeland#$, Dan Freeland#$, Bill McNease, Doug Bell, Bob Olson$$, Ed Beaman, Sam Feeback, Jack Hunter#, Gary Hicks, Larry Smulczenski$, Wes Hardy˘˘, Jim Downey#, Ian Marshall$ George Fitzgerald, Bill Haines, Al Glaser$$, Fred Schwan$. # new Fester, $ paid. $$ paid single (˘˘ unpaid single) occupancy. Running totals: total 39, new festers 11. Standard rate $148, single occupancy $198, payments may be made by mailing paper instruments of any kind to BNR Press (or MPCFest or even Fred Schwan) at 132 E. Second St., Port Clinton, OH 43452. Payments may also be sent via PayPal (fredschwan@yahoo.com). Once you have sent your payment, monitor the above list to ensure that it has been received and posted). Show n tell: Gail Baker (education@money.org) Travel coordination: Sparky Watson (mcwatson@yahoo.com) Auction items: Larry Smulczenski (skifla@prodigy.net) Exhibits: Joe Boling (joeboling@aol.com ): bourse David Seelye coinman@rochester.rr.com March 26-28. The Portland, Oregon, ANA is sponsored by the Willamette Coin Club with Larry Gaye as the show chairman. Howard Sarg Daniel will be manning a NI/NBS/IBNS club table at this show, and moderating meetings for NI and IBNS. As always, Gramsters are welcome at the NI and IBNS meetings and at the club table. Masstricht April 23-25, Valkenburg, The Netherlands, contact Jos Eijsermans, Box 3240, NL 5930 Tegelen Netherlands June 11-13 Memphis Paper Money Show, Memphis, TN. Nov 18-21 Pcda Convention, St. Louis, Mo. 2005 date tba, MPCFest VI, reservations now being accepted. Reservations entered in order received: John Cheney$, Danny Bingham$, Fred Schwan. # new Fester, $ paid. $$ paid single occupancy. Running totals: total 3, new festers 1. ========================================== 2004 scholarship fund Donations of cash and numismatic material will be gladly accepted. Generally the numismatic material is auctioned at MPCFest, but might be sold via ebay or other places. Your scholarship donations help the hobby by sending qualified individuals to the ANA summer seminar military money class. Except for unavoidable charges like ebay fees, 100% of your donation goes to scholarships. Al Glaser RA Medina Warner Talso David Seelye Russ Walsh Joe Boling Harold Kroll Pam West Ed Hoffman Ron Wadell Wes Hardy Dick Freyser Robert Drew Brett Irick Kevin Neidy Brian Giese John & Nancy Wilson John Cheney Neil Schafer Joel Shafer Arlen Sheldon 2003 Scholarship Donors Ed Hoffman - RA Medina - Dick Freyser -Larry Smulczenski - David Seelye - Howard Daniel - Steve Feller - Warner Talso - Pam West - Mr. 691 - Leo May - John & Nancy Wilson - Max Spiegel - Gail Baker - Chris Connell - Bill Haines - Joel Shafer - Mikhail (Misha) Istomin - Gary Hicks - Robert Drew - Tom Warburton - Larry Lee - Fred Schwan - Mark Watson - Harold Kroll - Ian Marshall - Marcus Turner - Neil Shafer - Keith & Sue Bauman Contact me at: "Marcus Turner" mail to: maturner@indy.rr.com Checks should be made out to the "Military Numismatists Scholarship." or Marcus Turner 8103 East US Highway 36 Suite 163 Avon, Indiana 46123 USA IMPORTANT SCHOLARSHIP INFORMATION Additional information can be found at the link below. We encourage everyone to print copies of this information and distribute it to those who might be interested. Further you are encouraged to e-mail the pdf document to anyone you see fit. Thank you http://www.papermoneyworld.net/news/Military Numismatists Scholarship Fund 2003.pdf Marcus Turner Scholarships from the ANA: See the following location for an application for financial aid to the summer seminar: http://www.money.org/sumsemfin.html ============================================= MPC ANA Museum Project ============================================= ANA collection of MPC: Thanks to donations from Douglas Bell, Dick Fryser, Ed Beaman, Bruce Peacock, David Seelye, Michael Cummings, Ray Czahor, David Pitchford and Mr 691the ANA MPC collection is current as follows: Series 100 - [50 sen], [1Y, 5Y, 10Y, 20Y all A underprint] Series 461 - 5, [10] cents, [$1] Series 471 - [5, 10, 25, 50 cents, $10] Series 472 - [5, 10 cents], [$1, $10] Series 481 - 5 cents, [10, 25 cents], 50 cents, $1, [$5] $10 Series 521 - 5, 10, 25, 50 cents, [$10] Series 541 - 5, 10, 25 cents Series 591 - [5, 10, 25, 50 cents, $1] Series 611 - [5, 10, 25 cents, $1] Series 641 - 5, 10, 25, 50 cents, $1, $5, $10 Series 651 - [$1] Series 661 - [10, 25, 50c], [$5], [$1, $5] $10 Series 681 - 5, 10, 25, 50 cents, $1, [$5], [$20] Series 691 - [$1, $5, $10, $20] Series 692 - 5, 10, 25, 50 cents, $1 Series 701 - [$1, $5, $10, $20] [50c etc.] = notes donated by Gramsters –Chris Connell ============================================= RESEARCH ============================================= New modification to the database you can now retrieve your password if you have forgotten at the main logon screen. Keep in mind syntax is important. The mpc database has changed its name it now going to be referred as, WW II P a p e r M o n e y D a t a B a s e This is just a hint of things to come If you are having trouble logging on please inform Doug Bell At doug@papermoneyworld.net Papermoneyworld maintains an innovative interactive data base of all military payment certificates. Everyone is invited to enter notes in their possession or that they have observed. Visit the site at: http://www.papermoneyworld.net/user/default.asp this project is financially supported by David Seelye http://www.thempcman.net/ , mailto: coinman@rochester.rr.com ============================================= Subscription information: ============================================= You can enter an email address to receive the gram by using the link below. Use this to change your address (add the new one), add a friend or enemy. http://www.papermoneyworld.net/WebMailList/Default.asp =========================================== HOT CONTACT LIST - DEALER & RESOURCE LIST Below is the BNR Press Hot Contact List. This list serves several functions. Obviously it is an outreach by the dealers listed for your business. Most of them buy and sell MPC. Others organize shows or publish periodicals, or furnish information dedicated to this field. They have supported the new Comprehensive Catalog of Military Payment Certificates with their advertising. They deserve your support and patronage! Name phone fax / cell email Allens (614) 882-3937 (614) 882-0662 info@allens.com American Coins & Collectibles (800) 865-3562 American Numismatic Ass'n (800) 367-9723 ana@money.org Guy Araby (562) 945-7891(310) 508-0018 guyaraby@earthlink.net Bob Baker(713) 864-3122 Ken Barr (408) 272-3247 ken@kenbarr.com Fred Bart (810) 979-3400 Dick Balbaton (508) 699-2266 (508) 643-1154 RBalbaton@aol.com Keith and Suzanne Bauman (248) 647 8938 tnaksbauman@earthlink.net Joe Bissell (602) 440-0442 (602) 494-9103 BNR Press (419) 732-6683 (419) 732-6683 fredschwan@yahoo.com Remy Bourne (800) 789-7070 (763) 789-4747 Ed Carne (614) 882-3937 (614) 882-0662 info@allens.com Champion Stamp (212) 489-8130 (212) 581-8130 Cookie Jar Collectibles (301) 604-9225 cjcpi@comcast.net Guido Crapanzano [39] 2-8056228 [39] 2-4459856 Currency Dealer Newsletter (310) 515-7369 David F. Cieniewicz (205) 852-7015 CGC (602) 493-4758 (602) 494-9103 sales@gradedcurrency.com Mike Cummings (863) 603-9899 (863) 603-9880 mpccoin@hotmail.com Cygnet Charters (419) 734-2422 Ray Czahor (301) 604-9225 cjcpi@comcast.net Denlys of Boston (617) 482-8477 denlys@aol.com Doric Coins & Currency (508) 699-2266 (508) 643-1154 FUN (407) 321-8747 Great Lakes Bank Note Company (419) 732-6683 IBNS joeboling@aol.com Essie Kashani (909) 627-3996 (909) 627-2776 kashani10@aol.com Lowel Horwdel (765) 583-2748 (765) 583-4584 horwdel@inshightbb.com Lyn Knight (800) 243-5211 Krause Publications (715) 445-2214 bnr@krause.com Harold Kroll(251) 649-5134 HARBONS@aol.com Leo May (305) 720-0659 LeoMayEnt@aol.com Ian Marshall (416) 445-0286 (416) 445-0286 iam@total.net Memphis Coin Club (901) 757-2515 MPCGram (419) 732-6683 MPCGram@yahoo.com Pomexport Ltd. 1-201-641-6641 / Fax: 1-201-641-1700 E-Mail: Info@pomexport.com // website: http://www.Pomexport.com Bob Reed(504) 361-5684 bobreed@rrcoins.net Fred Schwan (419) 732-6683 (419) 732-6683 FredSchwan@yahoo.com David Seelye (585) 594-1987 (585) 594-2311 coinman@rochester.rr.com Richie Self (318) 868-9077 R. M. Smythe (800) 622-1880 (212) 908-4047 www.smytheonline.com Mel Steinberg & Son (415) 897-1654 (voice and fax) melsteinberg@mindspring.com Military Trader (800) 334-7165 Scott Winslow Associates (603)472-7040 (603) 472-8773 scott@scottwinslow.com George Warner(307) 672-3700 Pam West [44] 0208 641 3224[44] 0208 641 3224 pamwestbritnotes@compuserve.com ========================================= POST / BASE EXCHANGE(PX/BX/NEX) Dump your dupes! Your classified advertisement for items for sale, purchase or trade will be run here for free. Send your ads to the gram. This service is for everyone, most humble dealer or most advanced collector. The point is to make the gram more interesting. In all cases confirm your order via email first. WANTED SECTION: Collectors may submit lists of items wanted for their collections for listing here. Dealers and collectors who have these items, are then encouraged to list them for sale in the above section as a reply. Wanted listings will run for a period of 1 month. WANTED 01; ============================================= MPC Gram Staff: Publisher, editor: Fred Schwan - MPCGram@yahoo.com Subscription Manager:Doug Bell- doug@papermoneyworld.net Tuesday Columnist : JoeBoling- JoeBoling@aol.com Friday Columnist: Warner Talso: wtalso@aol.com Fest Auctioneer: Larry "Ski"Smulczenski - skifla@prodigy.net Critic:Harold Kroll - HARBONS@aol.com Scholarship Coordinator: Marcus Turner- maturner@indy.rr.com Webmaster & Technical Advisors:Doug Bell "Wiz" - doug@papermoneyworld.net Russ Walsh - russ.walsh@gte.net Fact Checker: Warner Talso -Calendar Coordinator: John & Nancy Wilson -The Boss: Judy Schwan ===== MPC Gram is published by BNR Press and papermoneyworld.com as a free service to the community of military money collectors. Your suggestions, criticisms, complaints, editorial contributions, letters, and even praise are very welcome. The entire contents including linked illustrations are copyright protected by the publishers. In the case of contributors, the copyright is protected on behalf of the creators. Please send all correspondence regarding the gram to MPCgram@yahoo.com. Thank you very much for your participation. __________________________________ Do you Yahoo!? Yahoo! SiteBuilder - Free web site building tool. Try it! http://webhosting.yahoo.com/ps/sb/