Health's Counterfeit Detectors: An Extraodinarily Successful Comedy of Errors

66 Pages·4.8 MB·English

by  Newman, Eric P.

Heath’s Counterfeit Detectors:
An Extraordinarily Successful Comedy of Errors
by Eric P. Newman
Heath's two sizes of editions were bound in a rain-
Introduction
bow of beautiful colors. They are replete with errors
A highlight in American numismatic literature is the and confusion so that many mistakes continued un-
myriad of editions of Laban Heath's counterfeit de- corrected year after year. To study the intricacies of
tectors. These books gained great popularity by the a numismatic book which must have sold about
simple technique of complimenting the intelligence 100,000 copies in various editions compares in fasci-
and ability of members of the public to recognize nation to the study of the paper money the book
counterfeit paper money and by the appeal of spec- describes.
tacular illustrations. The series of editions from 1864
through 1889 carried a transition of text and a develop-
Predecessors of Heath
ment of pictorial content by a masterful huckster and
a skilled political maneuverer. He was the first per- The first presently known evidence of Heath being
son to promote a numismatic book into a best seller. connected with counterfeit detection came from The
Heath's patented and creative ideas enabled him to United States Bank Note Detecter at Sight, the Only Infal-
obtain permission to use many illustrations from offi- liable System Detecting Counterfeit & Altered Bank Bills
cial sources. His political influence was so strong he as taught by A. S. Gear. That pamphlet was compiled
had private bank note companies and the United and published in 1860 by J. W. Whittemore of Ash-
States Treasury’s Printing Bureau (later the Bureau of land, Massachusetts, who, according to that pam-
Engraving and Printing) doing work for his personal phlet, was a teacher of counterfeit currency detection.
benefit, and also at least 53 members of the U.S. Con- It was copyrighted by Gear & Fiske in the U.S. Dis-
gress recommending his publications. Heath was al- trict Court in New Hampshire in 1859. On some of
most deprived of a source for currency illustrations these pamphlets there was pasted over the publisher's
by the interpretation of an 1869 law passed to stop name at the bottom of the front of the yellow paper
freeloaders from using the government's engraving wrapper a matching paper label reading “Portland,
and printing facilities. He was almost bankrupted by Me./For sale by Laban Heath/For $1.00.” Pasted over
sabotage arising in the Treasury Department because the ordering instructions in the center of the back of
of the dismissal of the Chief of the U.S. Treasury Print- the yellow wrapper is another paper label reading
ing Bureau.
Finding Key
Page
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PeRseaPECEREESIOR oe tes ste: Ene t 8 ak Oe te oc Pe ded Cres 244 A DORAC EOL TEIN CLOCUOE arse 5 earns os clspass d amiainre'o g shatas Saas e ieee 2550)
Deut ica ecIOmCO nase. Peres ten Pl erchere oh oS a veav while ae ea iy»? 245 BOrtet Detector "AMENOIBIIp ess Fe. Soa cet. SIF Fate Fs vine Fee Tele bobo Sats2 56 |
Preserve DAHL ORE PLING so. aco gs «2 tysipl nie' as oe oie+ ons afte oo o.aye2 47 Copying: Snowderne <35 ciate isa osh- sonde. chose ews agers ere 256 |
Heath's Patents........... Heide Ee ra e PasctIo a ieeh g 249 PIGUSeHA NP CIEAOKE ais oto hi oaks ears kee ae eo er) vie & ae 258 |
NojBimse Banlang HouseiEditionyit Ac... tiv. 2k... Ladi. ast 249 ee a | gS Age mene ) Miaanyd irhe ch ag ts2 58 |
(BREESE OSTA Ee eee ee Pn ee 251 Presentationiand Special? Editions)s72 300) 20388 2 Sole. ree 258° |
SU eG Rc eevee e Ace cceac sees leees Sia 251 RIS NC! NORE arate Sees ere ie ee ne Sar eee dsr eine ected 258 |
PE EUS AWY Deore che. Pca SR Se the hem deta celek See et AS 252 Variety Table Classification Method..................0.0eeeee eee e2 59 |
Delay atid Shortage: ProDlems ei.!o )3)- 6.006.068 Sid aisre sieo 15:0 icieios'ere weiss » 252 Variety Table aint bi base is\ doecwls «ae Peon pitas oe) arn. Sumepigals 260 |
Cyn Ls RE Sees ae ee eer ee en 253 PCIGTIGIN NORE NN ad rn cist Ve ae ge ale sol ine aige os ao a Spa 270
241
Spyen ! eaw‘o e
Avy at
Eric P Newman
“Persons desirous of obtaining this work can do so/by edition of Peyton expanded it into a 54-page third edi-
enclosing one dollar by mail to/ LABAN HEATH, Port- tion with SIXTH THOUSAND on the title page. Har-
land, Me”! vey Gridley Easton taught counterfeit detection as a
course in Eastman’s Commercial Colleges with the use
The Whittemore pamphlet was pocket size and 25
of his Eastman’s Treatise on Counterfeit Altered and Spu-
pages long. It contained a preface followed by 9 num-
rious Bank Notes with Unerring Rules for the Detection
bered rules explaining the engraving and printing
of Frauds in the Same (St. Louis 1858 and 1859) and had
process used in the preparation of state bank notes.
his data expanded by Edwin J. Wilber and E. P. East-
There are 16 crude wood cuts comparing genuine and
man in 1865 with 4 thick paper currency plates, 3 of
counterfeit portions of bank notes. It states that there
which contain genuine designs, counters, lettering
is an “exhorbitant amount of spurious money now in
and panels prepared by the New York Bank Note
circulation.” It contains explanations and representa-
Company and 1 of which contains both genuine and
tions of the manner in which bills are engraved and
counterfeit designs, counters, and lettering by W. L.
altered. It is critical of the effectiveness of Thompson’s
Ormsby. There were many other bank note publica-
Bank Note Reporter (N.Y. 1842 et seq.) which was indi-
tions which devoted portions of their content to
cated to be the only available source which the pub-
counterfeit detection.
lic has for counterfeit bill information. There are 16
Thus in June 1864 when Heath published his first
testimonials dated from February 16, 1859 onward
written by New Hampshire and Massachusetts bank counterfeit detector, it seemed that he had produced
officials and other money handlers. It contains nine nothing unusual and had extensive competition. He
extracts from the New Hampshire and Massachusetts had made a successful effort to obtain 8 impressions
press. from combination plates of state bank note vignettes,
designs, counters, and lettering from the American
It is obvious that Heath adopted many of his con-
Bank Note Company. But events had almost made his
cepts and expressions for his subsequent publications
project obsolete. The War between the States had
from the Whittemore publication. Its use of the words
forced the Union to introduce Demand Notes, United
“Infallible’ and “At Sight” are reincorporated in
States Notes, and National Currency (National Bank
Heath's future titles. The description of the methods
Notes). The issue of fractional or postage currency had
of preparation of bank notes was revised and used
also commenced and some already had been coun-
by Heath. The 9 rules set out by Whittemore were re-
terfeited, a fact which Heath mentioned in his first
worked and expanded into 11 rules when Heath be-
edition.
gan. The headings for the first 4 rules in both Whitte-
more and the subsequent work by Heath are Heath’s Introduction pointed out that the new Na-
bracketed as “inimitable” in Whittemore and as “can- tional Currency would probably take the place of all
not be successfully imitated”i n Heath. The pattern other issues except United States Notes. He politely
of testimonials was followed by Heath as well as the states that “greenbacks” are rarely counterfeited or al-
use of favorable excerpts from the press. tered. He states that the new National Currency is
supposed by some to be secure against counterfeit-
Just as ideas for the structure of Heath's publications
ing so that no care will be required. Then he firmly
on counterfeit detection came from Whittemore, those
states “such, however, is not the case.” He points out
of Whittemore, in turn, had followed many elements
that a counterfeit of a United States Note can be
from prior publications, such as H.C. Foote’s Univer-
passed in any geographical area and that if a count-
sal Counterfeit and Altered Bank Note Detector at Sight
erfeit note of one National Bank is discovered and
(New York 1848 et seq.) which contained similar rules
publicized, all the counterfeiter needs to do is to
described as “infallible when imitated.” Waterman
change the name of the bank by altering a word or
Ormsby’s graphic engraving art publication in 1852
two on the counterfeit plate and thus create a count-
was more for banks than for public usage and was
erfeit on another national bank. He skillfully used an
very complex in its explanatory detail. Wheeler M.
effective fear technique.
Gillet had written The Infallible Bank Note Expositor and
None of the issues of Heath’s first edition had an
Detector (Ohio, 1854) which included instructions and
illustration of any portion of any federally-sponsored
rules, logically complaining that merely listing the ex-
istence of counterfeit notes was insufficient. George paper money and it wasn’t until two years later (1866)
M. Peyton wrote How to Detect Counterfeit Bank Notes, that federal designs were first included. At least his
or an Illustrated Treatise on the Detection of Counterfeit, illustrations of state bank note designs were prepared
by the skilled artisans of the American Bank Note
Altered, and Spurious Bank Notes (N.Y. 1856) with 45
pages of text and 4 steel plate impressions of vignettes, Company which was participating in the preparation
designs, counters, and lettering prepared by the firm of the federally-sponsored paper money.
of Rawdon Wright Hatch and Edson with copious ex- His fertile brain took advantage of an opportunity
planation of the detection of counterfeits.2? An 1861 after a few of the first edition of his books were sold.
242
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Laban Heath’s first bank note style advertising sheet was engraved and printed by the American Bank Note Company and contained
in the center of the lower part a 5 counter on each side of a farm scene. After its use in some Pocket counterfeit detector editions, it
was overprinted with ‘Plate 15’’ by letter press. It featured his counterfeit detection teaching.
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Laban Heath’s second bank note style advertising sheet was a revision of his first sheet by changing the center of the lower part so
as to eliminate the design in that area and to add advertising for his detectors. ‘Plate 15’’ was originally present on early impressions
but was eliminated by modification of the engraved plate for subsequent impressions.
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Face and back impression from captured counterfeit plates of the 1862 first issue $100 United States Notes dated March 10, 1862, printed
by the Bureau of Engraving and Printing of the U.S. Treasury Department for Laban Heath and used in some of his Banking House
counterfeit detectors.
A captured counterfeit plate of a $5 Bank of Orleans, exaggeration a modest one. It is possible, however,
New York was available and he arranged for impres- that there could have been very little exaggeration as
sions on bank note paper to be made from that plate. SEVENTEENTH THOUSAND (a common variety)
Such an impression was too large to insert in his book could have been used for a much longer run, as
normally, so in his FOURTH THOUSAND and there- changing the book production count on the title page
after he folded it once and tipped it in sidewways, was neglected from time to time in prior runs (see Va-
adding a page 27 to describe it. He also prepared and tiety Table).
inserted a bank note style advertising sheet on simi-
That the book sales of his first edition were so out-
lar paper promoting his expertise as a teacher of
standingly successful is a tribute to Heath's astuteness
counterfeit detection. His sales skyrocketed to about
in convincing the public that it was an opportunity
25,000 copies of the first edition. No other detector
they couldn't refuse. He satisfied a few bank officers
publication had illustrated a print directly made from
and the press that his detector book was useful, hav-
a counterfeit plate theretofore, even though some had
ing those officers sign recommendations which he ad-
included wood cuts of counterfeits to point out differ-
ded to the book, and by so doing convinced money
ences between the counterfeit and the genuine. Heath
handlers that his publication was essential to their
had seized upon an idea he would later rely and build
welfare. His formula was set. Then the problem was
upon.
how to promote it and sell it extensively.
Heath’s statement, in his second edition Introduc-
tion, that he sold 25,000 copies of his first edition may
Federal Permission
have been somewhat of a puff since SEVENTEENTH
THOUSAND was the highest printed number on the Illustrations of federally-sponsored paper money
title page of the first edition. That would make any would naturally have been a major problem to obtain
244
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Heath s Countertert Detectors
for a counterfeit detection book. Publishing a On May 6, 1867 Hugh McCulloch authorized Ciark
standard-size print of genuine federal paper money to make for Heath another 20,000 prints (reduced to
would not be permitted because the book might be 12,000 on May 15, 1867) from the same plates. On Mav
purchased for the purpose of removing and passing 10, 1867 Heath telegraphed Clark to engrave on the
the paper money impression. Publishing a vignette margin of the $100 plate the designation of “Plate 12,”
or any other portion from federally-sponsored paper making it the only captured counterfeit plate to be
money, as Heath had already done with state bank identified by an engraved plate number, except the
notes, might not be dangerous, but would require fed- fractional currency plate as a whole. Heath then sent
eral approval. the plate paper to the Treasury Department to print
On April 4, 1866 Laban Heath wrote to Hugh the impressions on and had the $100 note printing
McCulloch, Secretary of the Treasury, requesting per- take precedence over the fractional currency printing.
mission to have the Treasury and the bank note com- Heath, on June 7, 1867, said the demand for the Bank-
panies under contract to the Treasury furnish prints ing House edition exceeds expectations as the 400 cop-
from “the different dies and devices used on the ies received are “a mere morsel” to supply 20 or 30
Greenbacks and National Currency, together with the agents. He needed 3000 to 4000 more at that time. By
prints of portraits, vignettes, titles, etc., employed in June 20, 1867 Clark shipped 500 frontispieces, 1000
making the paper money issued by the U.S. Govern- of the counterfeit $100 National Bank notes, and 3000
ment.” The use of thick plate paper was suggested. fractional currency prints for the Banking House
The request was referred to Spencer Morton Clark, edition.
chief of the Printing Bureau, First Division, of the
Treasury Department who immediately objected and
Political Influence
said it would aid counterfeiters. Heath replied on
April 13, 1866 that “a counterfeiter would prefer a nice
Heath's ability to obtain permission from so many
new Bank Note in preference to my book as on the parties was remarkable. He had to obtain permission
note he would get all the work together while in my
from the United States Treasury Department to have
book it would be in separate parts.” A small portion
reproductions made of portions of current United
of each note is all Heath wanted. The Continental
States Notes, of portions of National Bank Notes, of
Bank Note Company also objected in a July 14, 1866 full faces of United States Fractional Currency, and
letter to the Treasury.’
of full impressions from each captured counterfeit
On September 3, 1866 McCulloch wrote Heath ap- plate. He had to see that the American Bank Note
proving the idea. This letter was so important to Company, the National Bank Note Company and the
Heath that he had a large copy of most of it engraved Continental Bank Note Company could be sufficiently
for the Banking House editions and a small copy of urged to cooperate as those institutions produced and
most of it engraved for the Pocket editions, and in- had possession of many of the plates from which they
serting it printed on tissue, in the beginning of many printed currency under government contract.
editions of his books. McCulloch, who was very help-
Heath needed the cooperation of the Printing Bu-
ful to Heath, promptly asked Heath to designate
reau of the Treasury and of the Secret Service for his
which cuts (impressions) Heath desired and the num-
undertaking. His project was to deter counterfeiting
ber of each. McCulloch also wrote that the bank note
and passing counterfeit currency by educating the
companies would print them at Heath’s expense. On
public on detection. A meritorious cause of that type
September 4, 1866 McCulloch authorized the Con-
might have been enough to secure the help of others
tinental Bank Note Company to print such designs,
to reach his goal even though a personal profit from
but no designs of an entire note, and to mutiliate them
its success was sought.
slightly. Heath promptly ordered 20,000 prints from
the right vignette on the face of the $5 National Cur- Political influence, however, would speed the un-
rency Note, the right-half of the back of the same note, dertaking and give Heath more assurance that it
the vignette on the face of the $500 National Currency would not bog down or be blocked after it had com-
Note, and the left-half of the back of that same note. menced. The politician on whom Heath's success de-
He added an order for fractional currency imprints pended seems to have been Nehemiah George Ord-
which was approved January 15, 1867. He also way. In the Banking House editions of Heath’s books,
provided that for the Banking House size Clark was Ordway’s name leads the parade of many important
authorized to mutiliate the head of Hamilton and the political figures recommending Heath’s books. Ord-
50 counter without spoiling them and to leave the way was presented with a special copy of Heath’s sec-
fractional currency unmutiliated. On May 2, 1867 ond Banking House edition with Ordway’s name
Heath ordered 4,000 prints from the captured count- stamped in gold lettering on an elaborate cover. Ord-
erfeit $100 First National Bank of Boston plates for his way cooperated with Heath for over 10 years on de-
Banking House book.
tector matters.
245
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