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MPC GRAM
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Covering the entire World of Military Numismatics

Series 003 - Number 632         Sunday - 26 MAY 2002
___________________
__278 days to Fest IV__


FEATURED ARTICLE


1948 Currency Reform (Germany)
(The following appeared in the July 26, 1948 edition of Pravda and is translated from the Russian.)
submitted by Jim Downey

'General Clay's Marks'


       From Pravda's special correspondent in Berlin Exactly a week ago, the high commander of the American occupied troops, General Clay, and the high commander of English troops, General Robertson, announced in writing to Soviet Union Marshal Sokolsky that separate monetary reform will not be extended to Western sectors of Berlin.

       Today on the streets of the Western sectors of the German capital, it was easy to learn the value of their official declarations.

       The English and American occupation authorities are circulating a new currency, fabricated in the United States. Germans already nicknamed them "General Clay's Marks." It became known recently that four days before Clay and Robertson's declaration, "General Clay's Marks" were secretly brought into Berlin in bags on planes.

       Already, the divisive actions by the authorities of the Western occupation zones have made life extraordinarily painful in Berlin. I drove through empty streets of the Western regions of the German capital. Everywhere, stores, pharmacies, shops were closed. From conversations with inhabitants of the city I was able to deduce what kind of measures were taken to attempt to tie them to "General Clay's Marks." All the inhabitants of the Western sectors are obliged to have stamps in their passports certifying receipt of those Marks. The occupying authorities warned that people who do not have stamps in their passports in the following month will not get their ration cards.

       But this is not all; the governments of the Western countries are seeking, in all possible ways, to prohibit the process of exchanging the old currency bills to the new money from the Soviet zone and the Greater Berlin region. This exchange is being carried out in defense of the interests of the German inhabitants, who lose out as a result of the flow of worthless money from Western Germany.

       In the Soviet sector of occupied Berlin, about 1,300 exchange points are open, which could be used by all city dwellers without exception. However, Western sector police were ordered to destroy all posters that announced the terms of exchanging the old currency bills for the new ones -- Reichsmarks and Rentmarks with specially glued coupons -- and that displayed the location of exchange points in the Soviet sector of occupied Berlin. Policemen carefully tore those posters off the walls and arrested the employees of the advertising company that was appointed to display them.

       It has come to such a point that on Thursday, English patrols tried to stop pedestrians who were walking to the exchange points. In order to intimidate inhabitants of the Western sectors of Berlin and at the same time prevent them from obtaining the new currency of the Soviet zone, American occupational authorities send their armored cars to the city streets. ... The desire of the rulers of the Western countries to cause financial and economic chaos in the capital of Germany is met by serious anger from Berlin's working people.

       Just recently, delegations from Berlin's major factories appeared at City Council, urging the introduction in Berlin of the currency that is already available in the Soviet zone. Delegates sneaked into the council's meeting room, handed out more than 40 resolutions of protest against the introduction of "General Clay's Marks" in the Western sectors of Berlin, and demanded that the council should declare single currency reform for all Berlin.

       Near the council building, a spontaneous demonstration arose in which thousands of Berlin's workers took part. Delegates of factories and businesses waited until late evening for the council's statement. It is hard to report how deeply they were angered when they learned that factions of Social Democrat and bourgeois parties, bowing to Western occupying countries, passed a decision demanding that the occupying authorities admit as official currency in Berlin not only the new money of the Soviet occupation zone but also "General Clay's Marks."

       Today on Potsdamerstrasse in the American sector, I had a chance to see how police, fulfilling the requests of American authorities, violently treated those who act in defense of single currency reform, in defense of the unity of Germany. I saw how they dispersed a group of pedestrians who took the liberty to say a few uncomplimentary words about the separate reform undertaken in the Western occupation zones. This is how the German policemen, who hurried in an American car to "the scene of crime," acted:

       They twisted the hands of people they arrested, beat them and threw them into the car. Among the arrested was a young girl, nearly a teen-ager, a newspaper salesman, and even a cameraman who came to photograph the incredible scene of intimidation of innocent people. The news about tough treatment of working people is coming from the Western zones of occupied Germany. For example in Nuermberg, at the City Council, a crowd of 2,000 assembled and waited a few hours for a currency exchange. Police started to disperse the crowd. The operation was commanded by the police chief of Nuremberg. A few wounded people in critical condition were taken to a hospital.

       The facts are telling that the currency separation, carried out by order of the rulers of the Western countries, has sharpen the already difficult situation in Bizonia. Bavarian state parliament member Max Drexel had to admit that as a result of the separate reform, the number of unemployed in Western Germany rose to 6 million or 7 million. In Hamburg, businesses laid off more than 2,000 people during first three days after the introduction of the separate currency reform. Within the next month, further layoffs of about 20,000 people are expected.

       In Nuermberg, (sic) the "Konrad" factory, which manufactured carbon electrodes, is closed. Here, and in other major cities of Western Germany, construction work has ceased, home-building has ceased -- the city councilors do not have the financial means to pay the workers. To minimize the catastrophic size of unemployment, the Bavarian labor minister has directed that working hours be cut in half.

       The situation of Western Germany's inhabitants remains hopeless. Some time ago, the press in the Western occupation zones reported the arrival of a load of textile goods from the U.S.A. as an unusual "American blessing." Soon, some details became clear. Those goods were destined to western Africa, but it turned out to be of poor quality and did not find any buyers.

       Then brave American entrepreneurs redirected those goods from African colonies to a European one -- Bizonia. So, after the separate currency reform, textiles rejected by modest Africans appeared in Bizonia. Western German economists foresee an increase in economic tensions. This is already clear because prices started to climb just after currency reform. In Munich, for example, the price of butter and cigarettes doubled in four days. Similar news is coming from Frankfurt. Not only are prices of mass consumption goods rising. Also of concern is the price of coal: it may rise, and if it does, it will be a significant increase. Prices for briquettes will rise by 35 percent, and prices for brown coal by 50 percent. It should also be mentioned that economic chaos, which had sharpened in Bizonia after the introduction of separate reform, hit hardest for mid-sized and small businesses, which lack capital. As a result of separate currency reform, their owners had to close or sell to bigger industrialists, which is putting the concentration of capital in the hands of big German monopolists in the West. Simultaneously acting through covert agents, American concerns are even more actively purchasing factories and businesses they find interesting.

       This is the role played by "General Clay's Marks" in Western Germany. American monopolists would like to use the same weapon in the region of Greater Berlin, which also appeared to be part of the Soviet occupation zone in terms of economics. The democratic society of Berlin is expressing its belief that, regardless of all the maneuvers of those who would divide Berlin, in the end the currency of Berlin will be the money of the Soviet zone.

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MAIL CALL


Do I write you re: wanted items? Would you see that the following is published? Wanted: Philippine Guerilla Currency. There have been some really great articles the past couple of weeks! Thank everyone for me. Thanks again,
Jack                           

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EDITORIAL


       The above article on the West German Currency Reform of 1948, is in interesting read. Not so much for the numismatic standpoint, but the propaganda. Since the Cold War has ended, I feel that the majority of the general population has conveniently forgotten the measures both sides took to belittle the opposite side. The above article is a classic case. In conclusion, after reading the article submitted by Jim Downey, I only had one thought. We, the United States of America, with all our faults, foilables, and embarrasing political situations did not crumble into a selection of seperate states and countries bickering over terrotories and governments.

We won the Cold War. Thanks to the countless veterans who sacrificed thir lives. Remember them, come tomorrow: Memorial Day. A day that many view as a "day off" to go shopping, visiting yard sales and flea markets.. lighting up the bar-b-que... In the local towns by me, the posts of the VFW, DAR, American Legion, all come together to march up Main Street, in full uniform, rain of shine. May I suggest a little drive to a small town, and watch the veterans? That my fellow readers, is what Memorial Day is all about. And that I believe is what won the Cold War.
Editor   

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CALENDAR OF EVENTS

2002

ANA Seminar:   29 June to 5 July
W.W. II numismatics seminar at ANA Summer Seminar, July 2002
Session I
(Saturday, 29 June through Friday, 5 July, 2002)
Session II
(Sunday, 7 July through Thursday, 11 July, 2002)
general events will return

WESPMEX:   27 - 28 July
Westchester Paper Money Exposition - 175 Dealers
Westchester County Center, White Plains, NY

WESPMEX:   11 - 13 October
Westchester Paper Money Exposition - 100 Dealers
Westchester County Center, White Plains, NY

WESPMEX:   29 November - 1 December
Westchester Paper Money Exposition - 160 Dealers
Westchester County Center, White Plains, NY

2003

CPMX 9:   20 - 23 February,
MPC Fest IV:   28 Feb - 2 March, Port Clinton, OH
Fest Registrants: Doug Bell,  Joe Boling,  Guido Crapanzano,  Dick Freyser,  Philip M. Goldstein,  Gary Hicks,  Harold Kroll, 
Jack Lippincot,  Kevin Maloy,  Leo May$$,  Fred Schwan,  David Seelye,  Nick Shrier,  Larry Smulczenski,  Warner Talso,
Marcus Turner,  Tom Warburton

$$ = Paid          Running total: 17



ANA:   19-22 March, Charlotte, NC

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SCHOLARSHIP DONATIONS

FILING IS CLOSED FOR 2002 SCHOLARSHIP APPLICATIONS

Donations now being accepted for 2003 scholarships.


For further information, please contact:


Military Numismatists
c/o Marcus Turner
8103 East US Highway 36
Suite 163
Avon, IN 46123

maturner@indy.rr.com

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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               RJBalbaton@aol.com

Keith and Suzanne Bauman                (248) 262-1514                                               tnaksbauman@earthlink.net
Joe Bissell                                              (602) 440-0442       (602) 494-9103
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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

Doric Coins & Currency                      (508) 699-2266       (508) 643-1154
FUN                                                        (407) 321-8747

Larry Gibbs                                            (308) 635-7900                                               oth@prairieweb.com
Philip M. Goldstein                               (845) 254-MPC1 [6721]                                iwantmympc@aol.com  or  MPC Website
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
Peter Huntoon                                       Smithsonian Research
                                peter.huntoon@att.net
Lyn Knight                                            (800) 243-5211
Krause Publications                             (715) 445-2214       (715) 445-4087  
             bnr@krause.com
Harold Kroll                                           (251) 649-5134                                               HARBONS@aol.com
Leo May                                                 (305) 271-8391      (305) 720-0659                LeoMayEnt@aol.com or Wide World of Banknotes
Ian Marshall                                          (416) 445-0286       (416) 445-0286               iam@total.net
Memphis Coin Club                             (901) 757-2515
MPCGram                                               (419) 732-6683                                               MPCGram@yahoo.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) 453-9750       (415) 457-4432               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


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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.

FOR SALE SECTION:
For Sale ads will run for a period of up to 5 issues, or until sold.


Series 541 $5         front: vf+ / back: vf                                                            $2250
SN F02031284F      PN 4

Series 541 $10       xf / xf                                                                                 $1250
SN F11420626F      PN 28

Series 591 $5         f / f - with hole in center from folding                                    $400
SN G01590625G           PN 49

Series 591 $10       unc - with 1/8" tear top dead center -                                  $3000
SN G02225825G           PN 29
cannot be seen when in holder - sharp square corners, the unc in Lyn Knights auction sold for 6k+, this is an affordable alternative                 
                                                                                                      
Series 611  $5        vf+ / vf+                                                                             $1300
SN H02336122H   PN 43

Series 611 $10       xf+ / xf+ gorgeous note. 3 light folds, but looks au               $450
SN 04598956H      PN 25

scans available upon request!
reply to Phil:  iwantmympc@aol.com



Comprehensive Catalog of Military Payment Certificates - 4th Edition
by Fred Schwan

Standard Edition (400 pages!)                                                               $  50
Collectors’s Edition (432 pages!)                                                          $  95
Researcher's Edition (432 page, 46 produced, limited to availability)      $125
All orders plus $4 shipping per order (NOT per book). Send snail mail payment to:


BNR Press
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or PayPal using email:
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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 - Fancy Series 641 fractional notes - any condition. (5/18)
WANTED - Philippine Guerrila Money (5/26)



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MPC CATALOG CORRECTIONS & ENHANCEMENTS


Page 18, Bottom - Users of Military Payment Certificates
Check marks were omitted from production copies of books. Please check off the following:
Australia:           641, 661, 681, 692
Canada:            461 through and including 591
Korea:              641, 661, 681, 692
New Zealand:   641, 661, 681, 692
Thailand:           641, 661, 681, 692
United States:    All
(date listed: 02 APRIL 2002)

Page 201, Bottom Right - Very last sentence on this page
Two serial numbers listed for the second printing of
Series 472 .50 cent notes.  The first serial number listed is obviously in error as a nine digit number: C040351392C   
Correct Serial Number is: C04035139C
D Freyser (date listed 10 April 2002)

Page 207, #833/4  - Series 481 .25 4th Printing  (table listing serial number breakdowns)  line 5
Start Number is incorrect. It appears as:
(start) D14784001D   (end) D14784000D
Correct start number should be: D09408001D
PK6 (date listed: 03 APRIL 2002)

Page 214, #855/r2 - Series 541 $1 Replacements,
Ending serial number is incorrect
Correct number is F1112000
(date listed: 02 APRIL 2002)

Page 220, #884/2r - Series 641 .50 Replacements

On page 284, it is broken down into 2 printings. That's correct, BUT, on page 220 he lists only (1) printing reported. It should "list" both first and second printings. 
Guy Araby (date listed 04 APRIL 2002)

Page 287, Series 661 Series Summary, 25 cent note: the "list" shows "#CU as 10(7) . It should read, 8(7). As only 8 are known in CU. Just recount P.289. 
Guy Araby (date listed 08 APRIL 2002)

Page 398, Series #541 $10 on  "UNC." price is $2500, on P.214 the UNC. price is $3500. Also the rest of the prices don't match all the way to "VG" on this issue. They should be the same price.
Guy Araby (date listed 08 APRIL 2002)

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MPC Gram Staff:


Publisher:                                               Fred Schwan -                              MPCGram@yahoo.com

Editor:                                                     Philip M. Goldstein -                   IWANTMYMPC@aol.com
Subscription Manager:                        Doug Bell -                                   doug@papermoneyworld.net
Tuesday Columnist :                            Joe Boling -                                   JoeBoling@aol.com
Thurski Columnist:                               Larry "Ski" Smulczenski -           skifla@prodigy.net
Friday Columnist:                                 Fred Schwan -                               MPCGram@yahoo.com
Critic:                                                      Harold Kroll -                                HARBONS@aol.com
Distribution Manager:                         Brad Peacock -                              bp22@swbell.net

Scholarship Coordinator:                    Marcus Turner -                           maturner@indy.rr.com
Index & Back Issue Manager:            Ed Beaman -                                  ebeaman@sprynet.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 -