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You might be wondering about this check as I first was when looking it over. The “RED STAMP” on upper left hand side and the “PERFERATIONS CUT-OUTS” Keep scrolling down and it will all be explained.
The check was made on Sept 21st, 1898 and processed Dec 15th, 1898. 3 months later. Check number of 4460 in 1898 shows the company was quite active financially when prior to the mine reaching maximum production. Frank Sager signed the check. At the time he was the cashier for the Exchange bank, so obviously he was an authorized signer for Old Abe Company. Since we was related to Hewitt, this Is not unexpected Jefferson Reynolds served as President of the Exchange Bank, the First National Bank of Las Vegas and the bank in Albuquerque that this check was made payable to. From the date issued till the date paid was over three months. Mayer. Canning and Sager’s signatures can be seen, which adds a personal touch. The rear stamp states can be presented in White Oaks, or Las Vegas.
The check has the Spanish American war funding stamp attached. See note below.The local vendors and the miners would not to wait three months for a check to ultimately be paid, so it us likely funds were in place in the Exchange Bank for these type transactions. Mayer got his money once Canning certified it was good. At the Exchange Bank. It was important for Reynolds bank in Albuquerque to show increasing assets as that town was the fastest growing. Most likely Old Abe main deposits were kept in the Albuquerque bank. Keep in mind this check physically moved to Albuquerque . To be marked paid. Inherent is a built in three month float which should not be under valued.
John Canning, the cashier of the exchange Bank signed the back of the check as long with Paul Mayer.
THE RED STAMP
As you can make out maybe, on the 2 cent postal stamp attached to the check, it’s stamped with, “OLD ABE COMPANY” and the date, ” SEP 21 1898″. The large printed “I.R.” stands for Internal revenue. Why would a stamp be placed on a check in the first place?
ANSWER: On June 13, 1898, Congress passed the War Revenue Act of 1898 to provide badly needed funding for the Spanish–American War. The law was to become effective on July 1, 1898, leaving only seventeen days to produce the badly needed revenue stamps. In anticipation of the law’s passage the Bureau of Engraving and Printing had already commenced work on the dies and printing plates for the new revenue stamps, however they were unable to issue the stamps when the law went into effect. To meet the demand for revenue stamps, existing stocks of standard postage stamps (issued in 1895–1898) were overprinted with the initials I.R. (i.e., Internal Revenue) for use as revenue stamps. Initials are faint on issues with denominations of 8, 10 and 15-cents.
The tax on checks was 2 cents, but it was so profitable that guess what? It was extended numerous times until roughly 1900, around the end of the Spanish-American War. There
were two ways to pay; you could stick a stamp on the check, or you could have printers produce checks with a revenue stamp already positioned in the center; these are, in general, called revenue stamped paper.
Because there was a 2 cent charge on cashing a check in 1898 to help fund the Spanish American war most people would put a 2 cent stamp on a check instead.
