Status: U Return-Path: Received: from web12708.mail.yahoo.com ([216.136.173.245]) by bissell.mail.mindspring.net (Earthlink Mail Service) with SMTP id tudf6q.jpl.37kbi66 for ; Mon, 5 Nov 2001 11:22:49 -0500 (EST) Message-ID: <20011105162248.19854.qmail@web12708.mail.yahoo.com> Received: from [64.12.104.43] by web12708.mail.yahoo.com via HTTP; Mon, 05 Nov 2001 08:22:48 PST Date: Mon, 5 Nov 2001 08:22:48 -0800 (PST) From: MPCgram Subject: MPCGram 478/3 To: mpcgram@yahoo.com MIME-Version: 1.0 Content-Type: text/plain; charset=us-ascii ============================================== MPC Gram ============================================== Covering the Entire World of Military Numismatics ----------------------------------------------- Series 002-Number 478 Monday, November 5, 2001 Conversion Office Information by Jim Downey I have recently acquired a $1000.00 German Government International Loan 1930 Bond that may shed some additional light on the Certificates of the Validation Board and the Talons that appear on pages 308 – 311. The text of the bond is quite extensive. I tried to make a scan of it but the text is not readable on the scan because it is in a very small cursive font. The bond is dated 1953 at Bad Homburg just as the Talons are. It is identified as an obligation of the Federal Republic of Germany. It was issued in exchange for "a Bond of the original Dollar Issue of the German Government International 5½% Loan 1930 that was validated and legally outstanding on the date of the exchange." The maturity date was June 1, 1980. There are provisions for earlier redemption of the bonds. It has been punch cancelled through the signatures. The bond indicates that there were interest coupons attached but there is no indication of the frequency of payment. The text of the bond explains the purpose of the talons. It states: In the event of the reunification of Germany, the bearer of the Talon hereto attached, upon surrender thereof (and upon presentation of this bond unless previously redeemed) and subject to the provisions contained therein, shall be entitled to be furnished with Bonds as specified in the aforesaid London Agreement and Annex I thereto, payable in like coin or currency of the United States of America, for the funding of arrears of interest matured between December 2, 1944, and December 1, 1952, to the extent that such arrears are due in respect of the Bond of the same principal amount of the original Dollar Issue of the German Government International 5½% Loan 1930 surrendered in exchange. In the event of the redemption of this Bond prior to the reunification of Germany, the Talon, if then remaining attached hereto, shall be detached and returned to the bearer duly authenticated. I have a $1,000.00 Konversionkasse bond of the 1936 issue. Attached are interest coupons for January and July 1945 and January 1946. This suggests that the Reich continued to make interest payments on its bonds until almost the end of the war. The Talons and this bond bear that out and explain why the Talons represent interest from the end of 1944 until the date of the London Agreement. You can find a copy of the London Agreement at http://www.austlii.edu.au/au/other/dfat/treaties/1954/17.html#fnB8. The State Department’s Treaties in Force indicates that there are two side agreements between the United States and Germany that relate to this treaty. Unfortunately, I have been unable to locate the text of those agreements. There are also a couple of IRS Rulings dealing with these bonds. They can be found at http://www.taxlinks.com/rulings/1954/revrul54-501.htm, http://www.taxlinks.com/rulings/1958/revrul58-397.htm, and http://www.taxlinks.com/rulings/1963/revrul63-59.htm. The first one of these recites the history of these bonds. A search on the internet shows that there are papers dealing with the Validation Board at the National Archives and Record Administration, in the papers of Rogers Williams at the Eisenhower Library in Abilene, and in the papers of Thomas McKittrick at the Baker Library at Harvard Business School. Rogers Williams was Deputy Attorney General and later Attorney General under President Eisenhower. Thomas McKittrick was an international financier and a member of the Bank of International Settlements. I have not had the opportunity to follow up on the material at these locations. The purpose of the validation of these obligations was to allow the Federal Republic of Germany to enter the international financial markets and issue bonds of their own to assist in the reconstruction of Germany. Under principals of international law, successor governments are responsible for the bond issues of their predecessors. The international bond markets insist upon this in order to provide confidence for investors and stability on the world markets. Banks will not underwrite bond issues for governments who have repudiated debts of their predecessors. This kept the Soviet Union and the People’s Republic of China out of the international bond markets for years because they refused to honor the bonds of their pre-Communist governments. The West German government assumed the obligations of the wartime and prewar governments and agreed to pay the interest after the date of the London Agreement. The curious part of all this is why would they have delayed the payment of the interest arrears for the period up to the agreement until after unification? It would have made more sense to reallocate those amounts over the life of the replacement bonds. Perhaps the London Agreement would shed some light on this. I also have a specimen of the Validation Certificates that is unlisted. It is for $1,000.00 for the External Loan of 1926 6½% Sinking Fund Gold Bond Due September 15, 1951 from the Free State of Prussia. The prefix on the serial number is 3. ============================================== Editorial ---------------------------------------------- Guest editorial: Dear Esteemed Editor, The Marcus Turner article about the Scholarship Program and Young Numismatists (YN), Gail Baker from the ANA, and the editor was excellent an excellent discussion. I have printed it and filed it with many other materials about YN programs worldwide. The IBNS is creating a YN program with Rachel Feller as the chair. Several other IBNS members and myself are on her committee, and I will use the material to enhance our discussions. YN programs and their results are often frustrating in the short term, but I have seen that in the long term, that they are somewhat successful. When I walk around bourses, look at exhibits, attend and speak at meetings, and enter a numismatic business, I see former YNs. From my experience, these former YNs are about 10-15% of those I saw when they were YNs. This 10-15% is also about the same results from my working on adults to become numismatists, and this part of my work is mostly with veterans to collect MPC and other military stuff from "their" war and/or active duty, but also from their locality, family, ethnic background, etc. And when there is no eligible YN for a YN scholarship program, I especially like the idea of using it for a worthy adult. And it makes me think we might consider changing our programs from Young Numismatist (YN) to New Numismatist (NN). But the NN programs should be have separate activities for children, teens, and adults because each must be approached differently in order to successfully attact them to numismatics. We are never going to achieve 100% success in bringing non-numismatists into the numismatic ranks (no pun intended), so please do not listen to the many naysayers that speak about YN or NN programs being a waste of our time. What if we did nothing and we did not acquire the 10-15% of the children (and adults) we try to convince to become numismatists? We would rapidly become even more a hobby of "gray hairs" and die out. Howard A. Daniel III P.S. I am fascinated with my continued automatic use of "esteemed" when addressing the editor. Is there anyone out there who can explain my repeating it when addressing this person? Can you imagine me always being polite, having good manners, and to stop acting like my days in uniform? ============================================== Mail Call ---------------------------------------------- Dear Marcus and Gramsters: I appreciate the question regarding the YN Scholarships. Serving on the CSNS Board for a long time at times the YN scholarship wasn't used. In order to even have a chance to win a CSNS scholarship you must be a member. Dues for adults is $8, Juniors $1. An adult LM is only $125 a real bargain - as is the Junior membership for the $1. If you want to join CSNS contact by e-mail the Secretary/Treasurer Jerry Lebo at: csns@cqc.com and he will send you the necessary forms for joining. Incidentally, their next convention will be in Columbus, OH, April 25 (PNG Day), 26, 27 and 28, 2002. When you mention scholarships for YN's. Yes, scholarships are out there for YN's. I don't think there is an abundance of them though. ANA does give out YN scholarships and I will let Gail Baker answer the Gramsters on that. I will e-mail my response to the question, and the actual Gram to her (I'm sure she gets the Gram though). I know that Michigan State gives out a Sr and Jr scholarship for BIS winners at their two annual conventions. FUN also awards YN's scholarships as do other organizations such as the Milwaukee Numismatic Society. Whether the Gram wants to send a junior is up to the committee. If one is qualified and gets the Gram you I think that most would want the Junior to get the scholarship. They have to take the Military course though and that has to be explained up front. Just remember one thing though that the sponsor takes the liability for the Junior when they take the course. I will let Gail explain that though. We will get some money in soon for the scholarship. I would suggest that you post an address where to send the money for the scholarship once and a while. In any instance we love the Gram and hope all of you look at the show schedules. Yours in Numismatics, John and Nancy Wilson Dear Editor, Having collected coins for many years, I didn't agree with the grading service for coins, but it came along to help all those who didn't want to lean how to grade their purchase. I still take the same stand on paper money that I took on coins. If you are going to collect, then learn how to grade. If in doubt, ask! I haven't seen too many dealers or collectors who won't spent a few minutes with you explaining how to grade. I always considered this part of leaning the hobby. The Indiana State Numismatic Association (ISNA) just completed its state show. It was held in Indy, with many exhibits. I am looking forward to Marcus Turner giving a report to the GRAM readers on his exhibit! Marv' Mericle Dear Gram, I am considering encapsulating a few notes that I have by having them graded. It will protect them and yes, I know, then I won't be able to feel it. Everyone is correct about grading standards. I have purchased a number of notes that have not be graded in the same way that I grade my notes. I tend to be more conservative when I sell rather than buy but I would imagine that we are all like that. Bill McNease ================================================ Departments ------------------------------------------------- Calendar of events for Gramsters maintained by Howard Daniel, Nancy and John Wilson and Gram staff, last updated September 7, 2001 show reports are requested on all events. Even if it was not a great show, there must be something to report. What and whom did you see? Market activity? Share your observations and thoughts with Gramsters everywhere. ---------------------------------------------------- Special "MPC" events March 2002 8-10 - MPCFest III - reservations in order received: Guido Crapanzano, Harold Kroll, Larry Smulczenski, Gary "Got any fours" Hicks, Tom Warburton, David Seelye, Jack Lippincot, Phil Goldstein, Warner Talso, Nick Schrier, Richard Freyser, Tom Koch, Mark Watson, Bill Yanchick, Doug Bell, Sam Feeback, Bruce Potter, Elmer Smith, Marv Mericle, Wes and Rod Hardy, Fred Schwan {running total 22}] W.W.II numismatics seminar at ANA Summer Seminar, July 2002 Session I (Sunday, June 30 through Thursday, July 4, 2002) Session II (Sunday, July 7 through Thursday, July 11, 2002) general events will return soon --------------------------------------------------- Donations are now being accepted for scholarships to the 2002 "Military Money" course at the 2002 ANA Summer Seminar. Inquiries and donations should be sent to: Military Numismatists c/o Marcus Turner 8103 East US Highway 36 Suite 163 Avon, IN 46123 Donors to 2002 Scholarship Fund Steve Feller Harold Kroll R. A. Medina Guido Crapanzano David Seelye Leo May Warner Talso Marv Mericle Mark Watson Gail Baker ==================================================== Post/Base Exchange (PX/BX/NEX) Dump your dupes! Your classified advertisement for items for sale 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. Send in a list of items for sale and we will list them here in the gram. In all cases confirm your order via email first. FOR SALE Spectacular Nazi anti English-American handbill featuring a color illustration of a 5 franc AMC note (face and back). This is SB 161 as illustrated on page 280 of WWII Remembered. In addition to other amazing and wonderful things, somehow the Nazis knew about the Forbes mark on the notes and removed it from the version on this leaflet! AU if there is such a thing as a grade for leaflets like this: $295. Confirm with fredschwan@yahoo.com. All types of payment accepted, paypal preferred using the above email address. WANTED 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 or sale in the above section. This is a trial, if you like it, send your list. =================================================== Staff: publisher and editor: Fred Schwan - MPCGram@Yahoo.com; assistant editor - Phil Goldstein IWANTMYMPC@aol.com distribution manager - Brad Peacock bp22@swbell.net Tuesday columnist Joe Boling – JoeBoling@aol.com Thurski columnist Larry “Ski” Smulczenski –skifla@prodigy.net critic: Harold Kroll - MPCKid@AOL.com; index manager: Ed Beaman webmaster & technical advisor: Doug Bell - (Wiz): doug@papermoneyworld.net; 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. 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