HAWAII NOTES IN THE HERITAGE 2012 FUN CURRENCY AUCTION

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V15 2012 INDEX E-SYLUM ARCHIVE

The E-Sylum: Volume 15, Number 53, December 23, 2012, Article 20

Here are a couple items that caught my eye in the upcoming Heritage FUN Currency auction. These are rare and interesting notes. -Editor

The reference, Hawaiian Money, by Donald Medcalf and Ronald Russell is the most comprehensive resource for Hawaiian numismatics. Still, little is known about the earliest currency issues of the islands and the rarity of the 1879 issue cannot be understated. According to Medcalf and Russell, discussion of government issued currency is known as early as 1845. Coinage of the United States and other governments filled the needs of commerce as well as a few private scrip issues. In 1859, the Hawaiian Government issued certificates of deposit, though only a lone survivor is known today. It is a $50 note that looks more like a check than a currency issue.

According to Medcalf and Russell, 200 of the $500 notes were printed and issued. They were all redeemed and no print runs were published in their book for the other denominations. Serial number ranges for the other notes indicate they were likely printed and released in quantities of 8,000 to 12,000, though the number of survivors is minuscule. The book's census of the 1879 issue shows only three uncancelled notes in private hands. A $50 example is listed by serial number, and a $10 and $100 are reported in private hands, but without confirmation by serial number. The only other uncancelled note is a $10 listed by serial number and resides in the Bishop Museum in Honolulu. Cancelled examples are much more common and likely number between 14 and 20. However, 10 of those examples are all locked up in the Hawaii State Archives.

After a breakdown of the research provided in Hawaiian Money, we estimate there are likely six to ten cancelled notes in private collectors hands, only three of them of the $20 denomination.

Hawaii Republic of Hawaii $5 Silver Certificate of Deposit 1895 (1897) Series C Pick 11

Years of political turmoil preceded Hawaii becoming a Republic on July 4, 1894. In 1895 the minister of finance was given the authority to issue currency under the auspices of the Republic. Currency issued was to be "payable to the bearer on demand without interest upon setting apart as a special deposit an equal amount of Gold Coin of the United States of America and Silver Coin of the Hawaiian Islands or the United States of America as security for the redemption of such certificates respectively."

A 100% metal backed issue was a rarity for most governments of the day, let alone a small enclave like the Republic of Hawaii. By 1897, notes in denominations of $5, $10, $20, $50, and $100 were printed by the American Bank Note Co. and ready for issue. The $5 and $10 silver-backed notes were issued in the largest but still paltry quantities of 10,000 for each denomination. Three years later, the islands became a territory of the United States and by 1905, all the currency issued under the Republic of Hawaii was demonetized.

According to Donald Medcalf and Ronald Russell's reference, Hawaiian Money, the last note presented for redemption in 1916. The Treasury records indicated just 15 of the $5 notes remained outstanding. As of the 1990 release of the second edition of their book, Medcalf and Russell recorded just eleven uncancelled survivors and two cancelled examples. The two cancelled examples were part of the Hawaii State Archives.