Replacements

By Fred Schwan

   Military payment certificates (MPC) and especially MPC replacements are HOT! This means that there is treasure in those dealer junk boxes, flea markets, and garage sales!

  Collectors all over the United States, Europe, Asia, and all of the United States are looking for interesting if not rare and desirable pieces. The attention has been building for decades, but has been heightened by three factors. First, MPC is just downright interesting. It has been attracting a relatively modest but enthusiastic and ardent number of collectors for a many years. The second factor is the general boom in collecting paper money. Finally we have the third factor making its impact felt for the first time. Collectors are using the Internet to expand their spheres of search and influence.

You probably recall that MPC was used by United States and a few allied countries from 1946 through 1973 for military personnel stationed overseas. Mostly MPC was used in Europe and Asia. Thirteen series were issued (see accompanying chart for list of series numbers) in that time with one being replaced by another on a frequent and unannounced basis. Initially denominations were 5, 10, 25, 50˘, $1, 5 10. During Vietnam a $20 denomination was added (total of three issues of this denomination.)

This system created a wonderful array of 90 pieces that constitute the traditional complete collection of MPC. For many years the four Series 651 fractional denominations were thought to have been unissued and therefore not collectible. Now they are included in advanced collections boosting the number to 94, but these pieces remain mysterious.

There are a few varieties that add some spice to a collection. By far the most important of these is replacement certificates. Just as with “regular” United States paper money, replacements were created during the manufacturing process to, well, replace certificates spoiled during the regular printing run. These replacements have separate numbering and are identifiable so that tellers, clerks, and, unintentionally, collectors can identify them!

With modern United States paper money replacements are indicated by use of a star in the serial number. The indication for MPC is more subtle: the suffix is simply omitted from the serial number. Examples: A12345678A for a regular issue and A00123456 for a replacement.

Replacements double the number of pieces for a collection from 90 (94) to 180 (188)! Unfortunately, it is not that simple. Although it is virtually certain that replacements were printed for all 94 issues, not all of these replacements are reported to exist in collections! At this time the following issues are not reported in any collection: Series 472 and 591 25˘, Series 481, 541, and 651 $5.

This is a tantalizing list. None of these issues is common as a regular issue so it is not surprising that their replacements are rare. On the other hand only the Series 541 $5 regular issue is a real key to MPC collecting so the others ought to be there waiting to be found.

The situation with the Series 651 is particularly interesting even though it was the last series retired in 1973! This series is always the exception! The fractional denominations may well not exist. The relatively few regular issues that are known in collections seem to be from one or two small groups of notes rather than from a random group of survivors. This seems to reduce the likelihood of survival of any replacements.

Even the higher denominations are rare with only one and six pieces reported respectively for the $1 and $10 denominations. Furthermore the unreported $5 denomination has the smallest total printing of any regular issue MPC at 1.6 million pieces (1% of this is only 16,000 likely pieces issued). Finally, a few collectors were in Korea during the protracted time of use of Series 651. They actively searched for replacements and found only a few pieces and obviously none of the $5 notes. In one of those interesting twists of collecting, the last issued series may have the rarest replacements!

No official records were kept on how many replacements were printed, much less how many were issued. We do however know how many pieces were printed for each regular issue MPC. We can use these numbers as a guide for how many replacements were probably printed and issued. Furthermore, we know that replacements were issued at a rate of about 1%. Far less than 1% of certificates are actually spoiled, but because most replacing was done by sheet or entire bundle in the name of efficiency, far more were replaced than were actually spoiled. Obviously this  made replacement patterns far from uniform.

To answer some of these questions, we started a survey of MPC replacements in collections about twenty five years ago. More than 2100 replacements have been reported by hundreds of collectors from around the world. This is where you come in. You can help us find new reports thereby enhancing the research and perhaps enriching your collection or your bank account at the same time! The current results of the survey are summarized in the accompanying table. Many collectors and dealers carry a copy of this chart with them.

Many replacements have been found in out of the way places. Edwin Meidam was the king of garage sales. He visited thousands or perhaps tens of thousands of these events as well as flea markets, antique malls and similar venues. Even if no paper money was evident, he asked if there might be some old scrap books or photo album. If such items were available he went through them page by page. In this way Meidam completed two 90-piece regular issue MPC sets! Just think of the odds! He also assembled a formidable replacement collection. The highlight of the replacement collection was a series 471 50c which was the first reported in any collection! As you can imagine, he was thrilled with this discovery. In one of those quirks of fate, after years of reports, within a month of Meidam’s discovery, a second 471 50˘ replacement was found by a collector in a Colorado coin shop.

Ian Marshall found a nice series 471 25˘ replacement in a coin shop in Paris (where the series was used). At the time it was the third such piece reported in collections. Of course he bought the piece and sold it to Meidam!

Very recently a collector in Florida visited a coin shop. He selected a few notes for his type collection. As an afterthought he looked in the dealer’s junk box. He picked out a worn MPC series 481 50˘ certificate. The dealer volunteered to throw it in on the deal.

You guessed it, this was a replacemen! It was only the second such replacement reported! The collector in question does not seriously collect replacements so he sold it to a dealer who has since placed it with a serious replacement collector. At least three people were very happy from this deal!

Dick Mark was a part time paper money dealer. At a local show he bought a series 591 $5 MPC from a dealer. It was a well-worn example, but this is a scarce piece so Dick was happy to have it for inventory. It was only when he got home that he realized that the certificate was a replacement! Not only was it a replacement, but it was and continues to be the only such replacement reported in collections! In a very long and twisted tale, the whereabouts of the piece was later lost for several years in spite of intense efforts to locate it. Ultimately it was found and sold by auction as part of the Karl Zuhlke MPC replacement collection where it realized $5000! At the very show where this great replacement was sold, another collector found a minor replacement misattributed in the inventory of a dealer who regularly deals in MPC replacements! The collector pointed it out to the dealer who was of course a little embarrassed. He said “O.K., you can buy it at that price, but no discount!”

These three examples are extreme cases to be sure. In several decades of searching, I have never found any of the great replacements in the ways described above. I have however, found many less valuable replacements. I can guarantee that you can do the same and that every report of a new serial number is important to our research and even more common replacements can be financially rewarding.

The Internet is the stay-at-home garage sale! Replacements are being found on the Internet! Thus far the most common route has been via on-line auctions such as www.ebay.com, but I think that other and more innovative ways will be found and the finders will be rewarded.

The last time that we had a story on military payment certificates for a paper money supplement, I recommended the Professional Currency Dealers’ Association (Pcda) pamphlet Collecting Military Payment Certificates. I still recommend it and make the same offer that I did that time, I will be happy to send a copy to anyone interested who will send $3. This compact source provides much information on MPC and MPC replacements. All regular issue MPC and many replacements are illustrated. It even includes a collection checklist for your use.

I am also very interested in hearing about your replacement finds so that we can add the data to the survey. Please send complete information (series, denomination, serial number, and position number (the other numbers that appear on the face of each certificate) to me. The easiest method is to send a photocopy of the pieces.  Please write me at 132 E. Second Street, Port Clinton, Ohio 43452 or FredSchwan@aol.com for a pamphlet or to report your finds! I look forward to hearing from you.

MPC replacements reported in collections

Series                    10˘             25˘          50˘             $1               $5        $10          $20     Tot

461       21                 21                 7               5               19                 9             9                         91

471         6                   9                 7               4               12                 3             3                         44

472       34                 25                 0               7               19                 1             3                         89

481       24                 38               21               2               11                 0             4                       100

521       26                 18               12               9               10                 8             6                         89

541       45                 70               24             89               20                 0             8                       256

591       31                   6                 0               3                 7                 1             5                         53

611     127               145                 7               1             170               10          19                       479

641       83                 22               27             17               16                 7          52                       224

651         *                   *                 *               *                 1                 0             5                           6

661       16                 59               19               5               66               14             9             14     202

681       38                 24                 4             32               27               11          17             45     198

692       86                 75               29             20               32                 3             6             23     274

                                                                                                         Grand total                 2105

 

*Possibly not issued, unlikely to be found.

 

 

regular issue printings in millions

                          10˘         25˘        50˘         $1           $5         $10          $20             Total

461         7.6           8.1          4.7         4.0        14.6          5.4        40.8                            85.2

471         8.3           7.6          4.5         4.0        14.6          5.4        13.6                            58.0

472         8.0           8.0          4.8         4.2        11.8          4.2        11.6                            52.5

481       24.0         23.1         14.8        10.0         25.5           8.6        24.8                          130.7

521       27.2         26.9         14.4        11.1         28.0           6.4        24.4                          138.4

541       18.8         18.8         12.1          8.1         20.2           6.0        21.2                          105.2

591         7.4           8.4          4.7         3.7        10.1          2.4          6.8                            43.5

611         9.4         10.1           5.4         4.7        10.6          2.8          8.4                            51.4

641       22.8         23.5         12.1        11.4         33.0           6.8        20.4                          130.1

651         4.0           4.0          2.7         2.0          6.7          1.6          3.6                            11.9

661       23.5         23.5         13.4        10.1         33.0           7.2          4.8           8.0         123.6

681       14.1         14.1           8.7         6.7        22.4          4.8          3.2           6.4           80.5

692       14.1         14.1           8.7         6.7        22.4          4.8          3.2           6.4           80.5

 

This chart gives the total number of regular issue MPC printed for each issue in millions. Approximately 1% of the total should be replacements. Multiply the number in the table by 10,000 for an estimate of the number of replacements issued. Take the Series 461 5˘ certificate for example. Approximately 76,000 replacements were issued (7.6 x 10,000).