Thursday, January 21, 2010

Introductory Page

Forward
While the internet has been upon us for many years, specific information about currency issued by national banks in Arizona remains almost as scarce as the banknotes themselves. Hopefully, this blog will in a small way change that. Relevant information on the banknotes, as well as other information such as the buildings (then & now), ephemera, signers, and related history will be displayed. While the goal will be accuracy, it is understood that this will not always be the case and feedback\corrections are welcome.

What Are National Banknotes?
National banks were authorized by Congress in 1863. One of the provisions within the enabling legislation provided for currency issuing privileges. Once chartered, a bank could buy certain bonds of the U.S. government, deposit them with the Treasury, and receive up to 90% of that amount in currency printed with the banks name. The bank then circulated the currency locally thru loans and other transactions.

In response to a serious financial downturn resultant from the Panic of 1907, "Other Securities" were as well additionally accepted for backing national banknotes between 1908 and 1916.

The note-issuing privilege was withdrawn (suspended) in 1935, primarily due to the Federal Reserve System (Est. 1913) having assumed primary responsibilty for the issuing of currency.

Charter Periods
First Charter Period : 1863-1882 (Also known as Original Series)
Second Charter Period : 1882 - 1902 (AKA Series of 1882)
Third Charter Period : 1902 - 1922* (Series of 1902)
Fourth Charter (So-Called) Charters initially granted or renewed from late 1921 through June 30th, 1922, when Congress passed an act extending the Third Charter to 99 years. Later, the term would change to "in perpetuity". This term is not official, and many do not understand what actually would constitute a "Fourth Charter" note. In Arizona, it is believed that only #12198, The First National Bank of Holbrook, would qualify.

If a bank was chartered (or rechartered) within one of these charter periods, that was the series of national banknotes they would issue until their charter was renewed. After 1922, all notes were of the 1902 series. When currency designs were standardized in 1929, small-size notes were issued.


List of Issuing Banks from Arizona (Click on links at left)
Over 12,000 national banks nationwide issued curreny at one time or another during the note-issuing period (1863-1935), including the following from Arizona.

I
2639 : The First National Bank of TUCSON (1882-1885)
3054 : The First National Bank of PHOENIX (1883-1884)
3122 : The First National Bank of PRESCOTT (1884-1885)
3728 : The National Bank of Arizona at PHOENIX (1887-1926)
3728 : First National Bank of Arizona at PHOENIX (1926-1935)
4287 : The Consolidated National Bank of TUCSON (1890-1935)

II
4440 : The Arizona National Bank of TUCSON (1890-1928)
4729 : The PHOENIX National Bank (1892-1935)
4851 : The PRESCOTT National Bank (1892-1916)
5720 : The TEMPE National Bank (1901-1935)

III
5821 : The First National Bank of CLIFTON (1901-1923)
6439 : The First National Bank of TOMBSTONE (1902-1926)
6579 : The First National Bank of GLOBE (1903-1924)
6591 : The Sandoval National Bank of NOGALES (1903-1904)
6591 : The First National Bank of NOGALES (1903-1935)

IV
6633 : The First National Bank of DOUGLAS (1903-1935)
7182 : The First National Bank of BISBEE (1904-1908)
7591 : The First National Bank of YUMA (1905-1929)
8193 : The GLOBE National Bank (1906-1910)
9608 : The YUMA National Bank (1909-1929)
10998 : The First National Bank of FLORENCE (1917-1933)
11012 : The NOGALES National Bank (1917-1931)
11020 : The First National Bank of FLAGSTAFF (1918-1931)
11030 : The First National Bank of MESA (1918-1932)

V
11159 : The TUCSON National Bank (1918-1923)
11559 : The Commercial National Bank of PHOENIX (1919-1931)
12198 : The First National Bank of HOLBROOK (1922-1935)
12581 : The First National Bank of WINSLOW (1924-1935)
13262 : First National Bank in PRESCOTT (1928-1932)

Appendices \ References & Acknowledgements

2639 The First National Bank of TUCSON

1882
   Chartered, succeeding the Pima County Bank
1885
   Voluntarily liquidated Jan 31, capital 100k.
   Succeeded by the Bank of Tucson

Post
1887
   Merged with Bank of D. Henderson to form Consolidated Bank of Tucson (See #4287)

This bank was chartered late in the first charter period, and as such issued "First Charter" AKA "Original Series" notes, the only Arizona bank (state or territory) to do so. Surprisingly,at least three notes have survived. As shown on the photographs, there is no territorial seal. Instead, the eagle on the right is duplicated. The placement of jurisdictional seals was often an inconsistent practice. For example, seals were applied from the territories of Colorado, Idaho, and Utah, On the other extreme, the state seal of Oklahoma state was never placed on brownbacks issued even after it's admission to the union. To this contributors knowledge, The Arizona Territorial seal was never applied to any issues.


Territorial Issues (Only)
First Charter, Series 1875
$5-$5-$5-$5 #1 - 2120

(B)
Total Circulation = $42,400
Outstanding at Close = $28,100
Outstanding in 1910 = $335

Total notes issued = 8480
Notes Known as of 2018 = 4
Last Known Sale: $218,500 in June 2008 (Above Note)

3054 The First National Bank of PHOENIX

This unique note (issued Oct. 24, 1883) was exhibited at the Memphis Paper Money Show in 2011 (Huntoon).

Prior to this, no photographs or proofs had been observed on Phoenix' first national bank. All notes were of the very popular brown-back $5 variety. The above-pictured note had been most likely kept by a bank officer.

A now broken-link internet article stated that soon after its chartering, the principals began loaning money primarily to a limited circle of associates.
 
These actions drew the scrutiny of national bank examiners. Resultingly, the bank officers decided to reorganize under a looser territorial charter, resuming business as The Valley Bank of Phoenix, which would survive until 1914 before failing. A new Valley Bank was then founded by principals of The Gila Valley Bank and Trust Company, and both banks later merged into what was eventually chartered as Valley National Bank of Phoenix as, #14324, coming just after the currency-issuing era.


.


September 21st, 1883:
Chartered with capital of $50,000

November 22nd, 1883:
Bank opens its doors.

March 7th, 1884
Placed in voluntary liquidation, capital of $50,000
Succeded by The Valley Bank

Territorial Issues (Only)
Series 1882 - Brown Back
$5-$5-$5-$5 #1 - 562 = 2248

Total Circulation = $11540
Outstanding in 1910 = $85

Notes known as of 2011 = 1

3122 The First National Bank of PRESCOTT

The quest for a banknote from Prescott's first national bank is now the "Holy Grail" for Arizona collectors, as it is the only charter (state or territory) that remains undiscovered. If a 1910 report is correct, only between 5 and 9 notes were outstanding as of that date. While hope may spring eternal, the odds of a discovery note are remote at best. Information on this bank is almost non-existent. Predecessor Blake & Company, is pictured, along with proofs from the Smithsonian.


1884
Chartered with $50,000 capital, succeeding Blake & Co.
1885
Voluntarily liquidated, $50,000 capital. Succeeded by The Bank of Prescott


Scarce check originally printed for The First National Bank of Prescott

Territorial Issues
Series 1882 - Brown Back
10-10-10-20 #1 - 225 = 900

Total Circulation  $11,250

Outstanding at close  $11,250

Outstanding in 1910  $90



Unknown as of 2018

3728 The National Bank of Arizona at PHOENIX

1887 - Chartered June 18th, capital of $100,000
              Succeeded Kales & Lewis
1926 - Title changed to "First National Bank of Arizona at PHOENIX"

The earliest charter on which notes can be reasonably obtained.



Original building 1887-1910 located on SE corner of Center (Now Central) & Washington.



After acquiring the entire building in 1910, the bank chose to demolish it and build this modern, 4 story building (shown here in 1914)









Pre-1926 bank bag






















Territorial Issues
Series 1882 - Brown Back
10-10-10-20 # 1 - 5105
10's = 15315
20's = 5105
-------------
Total = 20,415
                                  Early "Vertical Charter" from pre 1890







Series 1902 - Red Seal
10-10-10-20 # 1 - 1000
10's = 3000
20's = 1000
-------------
Total = 4,000
                From the Smithsonian Proof Sheet, Dated June 5, 1907

Series 1902 - Date Back (1 known)
10-10-10-20 # 1 - 5300
           1902 Date Back $10 (from the proof sheet) - Prepared 8/11/1908



10's = 15,900
20's = 5,300
--------------
Total = 21,200

Statehood Issues
Series 1902 Date Back
10-10-10-20 # 1 - 7000
10's = 21,000
20's = 7,000
--------------
Total = 28,000




Series 1902 - Plain Back
10-10-10-20 # 7001-29700
10's = 68,100
20's = 22,700
--------------
Total = 90,800


3728 First National Bank of Arizona at PHOENIX

1926
Jul 17 - Title changed from The National Bank of Arizona at PHOENIX

                                                    October, 1938

Post note issuing period:
1937 - Acquired by Transamerica Corporation along with Phoenix National Bank #4729 and other out of state banks. Arizona operations new title: "First National Bank of Arizona"
1955 - Bank headquarters moved - building remains as branch
1956 - Acquired Bank of Arizona, Prescott*
1957 - Spun off from Transamerica as part of Firstamerica Corporation
1961 - Firstamerica changes name to Western Bancorp
1963 - Building demolished - Replaced by modern branch (also now demolished)
1981 - Rebranded as "First Interstate Bank of Arizona", N.A.
1996 - Acquired by Wells Fargo
1999 - Wells Fargo acquired by Norwest, retaining Wells Fargo name.

*Acquiring this bank allowed "First National Bank of Arizona" to adopt "Since 1877" (Remembering the billboards)






This unused stock certificate from after the title change.






                                                                                                                                                                         

As seen in a now-deleted web article, The bank had plenty of original-titled currency sheets remaining at the time of its title change, and so elected to keep issuing them until 1929, when it ordered large-sized notes with the new title. As this was only about 4 months before the nationwide changeover to small-size, they did not circulate for very long, and accordingly are scarce, with only 7 known, at least six of which are tens. Small size, on the other hand, are very common in type 1, far less so in type 2.

A technical error exists on all large-size notes I've seen on this title. The plate date should read February 14, 1912, not June 4, 1907. Whoever designed the modified plate from the first title failed to realize the plate date should have reflected the date of Arizona's admission to The Union.

Series 1902 - Plain Back
10-10-10-20 # 1 - 5298
$10's = 15,894
$20's = 5298



Series 1929, Type 1
$10 x 6 #1 - 8780 = 52,680
$20 x 6 #1 - 2576 = 15,456




Series 1929, Type 2
$10 #1 - 12687 = 12,687
$20 #1 - 3052 = 3,052


Total Large = 21,192
Total Small = 84,055
Total Issue = 105,247
Total Outstanding July 1935 = $300,000
Large Outstanding July 1935 = $7,675

                                           Early 1960's (foreground)

4287 The Consolidated N.B. of TUCSON

1890 - Chartered, succeeding the Consolidated Bank of Tucson
1928 - Absorbed The Arizona National Bank of Tucson August 4th
1934 - Acquired by Valley Bank & Trust, Phoenix
1935 - Valley Bank & Trust -> Valley National Bank of Phoenix (#14324)

                                               Coastal Banker (1917)

While territorials are rare, the supply of plain backs and small-size notes is the most plentiful in the state, with the exception of type 2 $5's and $10's. A hoard of uncirculated (or nearly so) type 2 $20's make them the preferred note for state sets.

                                       Looking north on Stone @ Congress

                                        Lobby at 1929 opening
                                    
Territorial Issues
Series 1882 - Brown Back
10-10-10-20 # 1 - 2400
50-100 # 1 - 240

 $10 & $20 Brownbacks were not issued until after December 1903

Per Huntoon, the bank's $50 & $100 Brownbacks were all redeemed.
10's = 7,200
20's = 2,400
50's = 240
100's = 240

Series 1882, Dated Back
10-10-10-20 # 1 - 569
10's = 1,707
20's = 569


Series 1902 - Dated Back
10-10-10-20 # 1 - 1000

50-100 # 1 - 740
Last seen in an auction in the 1980's, this is one of but two $50's from Arizona Territory (No $50's or $100's issued with state designation)
$100's are represented by only proof sheets, as none are known from territorial days, and none were issued during statehood.

10's = 3000
20's = 1000
50's =   740
100s =  740
Total Issue = 17,836 = $345,450 (Territory)

Statehood Issues
Series 1902 - Dated Back
10-10-10-20 # 1 - 2400
10's = 7200
20's = 2400
---------------
       =  9600

Series 1902 - Plain Back
5-5-5-5 # 1 - 7470
10-10-10-20 # 2400 - 26,473



  5's   =   29,880
10's   =   72,219
20's   =   24,073
-----------------
Total = 126,172


Series 1929 - Type 1
6 x $5 # 1 - 15,412 = 92,472
6 x 10 # 1 - 7,838 = 47,028
6 x 20 # 1 - 2,826 = 15,756





Series 1929 - Type 2
$5's # 1 - 12,388 = 12,388
10's # 1 - 5,859 = 5,859
20's # 1 - 2,099 = 2,099




State Large = 135,772 = $1,473,050
Grand Total = 153,608 = $1,818,500 (Territory & State)

State Small = 175,602 = $1,410,270
Grand Total = 175,602 = $1,410,270 (Territory & State)

State Total = 311,374 = $2,883,320
Grand Total = 329,210 = $3,228,770 (Territory & State)