v , Amefie^ter^tic Socie^y^, the Museum of American Financial History F S I Will the Recording Industry Turn a Deaf Ear Again? New Trading Center of the World $100,000 Bill to Debut in “High Notes” Exhibit Issue 76 ~ Summer 2002 ~ $4.00 Extremely Rare UNITED STATES CURRENCY Gem Superb UncirculatedFederal Reserve Notes Legal Tender I'VfiTO.N.D.C. 145U G0022 , a®ssss»s;r^ w7^s^s$§B 9> frr-VGTo,v, An extraordinary opportunity to own a piece of history. Each one-of-a-kind note is individually mounted in an exclusive display case, and includes a certificate ol authenticity and historical guide. In any condition, these high denomination notes are extremely rare. In gem crisp uncirculated grade they become major rarities. Limited quantity available. For more information contactAlain Michael at (310) 278-0712 Fax: (310) 278-2065 or call toll-free 1-877-US-NOTES. Write to: POB 63, Beverly Hills, CA 90213-0063 [email protected] ww.iinitcdslatcscurrenq.com Thirtydayno-riskguarantee Visa& Mastercard Accepted Fred Holabird Americana's 2002 Auctions Auction July 2002 #14, Rare Mining-Related Books and References and Mining Hard Goods Auction August 2002 #15, Tokens, Post Cards and Checks Auction #16, September 2002 Mining Prospectuses... includes over 800 different western mining prospectuses Auction November 2002 #17, Western Americana... includes a rare bank signature collection and a variety of other important financial documents Auction December 2002 #18, Collection of Nevada Fine Art Quality consignments of rare Western Americana now being accepted. For more information or to receive a free catalog for one or more of our upcoming sales, please contact Fred Holabird Americana 3555 Airway Dr., #308, Reno, NV 89511 Tel: (775)852-8822, Fax: (775)852-8866 email: [email protected] website: www.holabird.org WWW.FINANCIALHISTORY.ORG Financial History ~ Summer Z002. Financial History Financial HISTORY The magazine ofthe Museum of American Financial History inassociation with the Smithsonian Institution Issue 76- Summer 2002 Features (ISSN 1520-4723) Kristin Aguilera 12 A Dark Day on Black Wall Street Editor Tulsa’s Greenwood District, a thriving African-American EditorialAdvisoryBoard business community, is destroyed by the race riot of 1921. Howard A. Baker, Esq. By Claudia La Rocco Howard Baker Associates Brian Grinder 16 Big Bucks for Big Business Eastern Washington University The history ofAmerica’s first underwriting syndicates. R.M.DiSamnyathEe. H&erCzoo.g, Inc. By John C. Burch, Jr. & Bruce S. Foerster Gregory D.L. Morris Executive Editor, 20 A Tale of Two (Thousand) Companies Bank Investment Marketing Magazine and One Old Shoe Thomson Media Group Wells Fargo grows up alongside small-town America. Douglas Parrillo Parrillo Communications, Inc. By Andy Anderson Arthur W. Samansky The Samansky Group 24 Carlson Launches American Bank Note Into the Space Age Bob Shabazian American Stock Exchange (ret.) The high-tech art ofmaster bank note vignette painter Richard Sylla, Ph.D. S. Ohrvel Carlson. Henry Kaufman Professor of By Mark D. Tomasko the History of Financial Institutions and Markets, New York University 30 Trading Center of the New World Jason Zweig Senior Writer, Money Magazine A photo essay on four centuries ofinnovation and entrepreneurship in lower Manhattan, on the one-year ArtDirection Alan Barnett, Inc. anniversary ofthe terrorist attacks ofSeptember 11, 2001. Museum Staff Brian C. Thompson, Executive Director Jennifer C. Hirschowitz, Q Development Director MegVentrudo, AssistantDirector for n the Cover Exhibits and Education Kristin Aguilera, Communications Director Thomas Alva Edison Copyright 2002 by the Museum of By Abraham Archibald S.A./Corbis American Financial History, publisher, 26 Anderson, 1930. Broadway, New York, NY 10004.Telephone: 212-908-4519; fax: 212-908-4601; toll-free Iconografico, 877-98 finance. All rights reserved. Financial Flistory is the official membership magazine of the Museum of American Archivo Financial Flistory. Annual individual mem- © bership is $40. Payment must be made in dollars, by credit card or check payable to the Museum of American Financial History. Letters to the Editor are welcome. Please send themtoFinancialFlistoryattheaboveaddress or e-mail [email protected]. financialhistory.org Financial History ~ Summer 2002 2 WWW.FINANCIALHISTORY.ORG Trustees Molly G. Bayley ExecutiveVice President, The X-Change Corporation Stephen A. Cooper President, Nemco Brokerage, Inc. pippn.rtme.nts David N. Deutsch President, 5 Founder’s Letter David N. Deutsch & Company LLC By John E. Herzog John E. Herzog, Chair Founder, 6 Message to Members Museum ofAmerican Financial History By Brian C. Thompson m George M.Jones, President, Members’ News TheManhattan Group On October i, the $100,000 bill will make its public debut in the Museum's "High Notes exhibit, guest curated by RoJsoehbnroGo.kLCaaypnigtal former U.S. Treasurer Mary Ellen Withrow. William M. Pinzler, Esq. Attorney at Law 10 Educators’ Perspective Will the Recording Industry Turn a Deaf Ear...Again? WilburL. Ross,Jr. By Brian Grinder 8c Dan Cooper Chairman and ChiefExecutiveOfficer, WL Ross 8c Co. LLC 34 Book Review Richard Sylla, Ph.D. A Thread Across the Ocean: The Heroic Story of HenryKaufman ProfessoroftheHistory the Transatlantic Cable, by John Steele Gordon. ofFinanSctiearlnISncshtoiotultioofnsBuasnidneMssarkets, Reviewed by Gregory D.L.. Morris NewYorkUniversity Brian C. Thompson, Secretary (ex-officio) Executive Director, Museum of American Financial History' Every Issue David M. Taylor, Treasurer ExecutiveVicePresident(ret.), Federated SecuritiesCorp. 35 Trivia Quiz Paul Underwood, Vice Chair 37 Summer/Fall 2002 Events Calendar ViceChairman, Salomon Smith Barney Inc. 38 Marketplace Jason Zweig SeniorWriter, Money Magazine 40 Museum Information Martin E. Zweig, Ph.D. Chairman, The Zweig Funds Stock certificate vignette painting by S. Obrvel Carlson. WWW.FINANCIAL.HISTORY.ORG Financial History - Summer 1001 3 Risk Management A Give Us Try Saperston Asset Management A Full Service Brokerage. Member: NASD, SIPC, MSRB. Your localsourcefor investmentplanning. 716-854-7541 In the searchforproperty, it’s Saperston Real Estate & Serving The Industrial Commercial Real Estate Markets. 716-847-1100 In thepursuit ofbetter business, it’s Saperston Management For Tax Assistance, Payroll Services, & Bookkeeping Financial Reporting. 716-854-7541 “The Dollar Doctor” Answers To YourMoney Questions Everyday aperston r§\ 1-800-879-7541 237 MAIN STREET • BUFFALO Visit Our Website: www.saperston.com Financial History ~ Summer 2002 WWW.FINANCIALHISTORY.ORG * * It is not our affluence that grips the imagina- Founder’ upon which tion of others, it is the values Letter When we depart from our system is built. these values, we do so at our peril, j } By John E. Herzog. Chair _lIS. Senator], William Fulbright (1961) One of our favorite observers The situation is not entirely of the economic scene conjectured at unlike the mood of the nation in a Museum program last November the wake ofthe 1987 market collapse, that the generous public-mindedness which stunned investors and sent we saw on Wall Street in the imme- ripple effects through the economy. diate aftermath of September 11 The Museum got its start in direct might go far to bolster the sagging response to the need back then reputation of American business and for an independent platform able the capital markets. How quickly to provide historical context and We was that momentary, optimistic out- objective interpretation. a—re look entirely overtaken by calamitous getting those calls again now' news out of the business sector. from Museum members, journalists, The months leading up to the researchers, and from government physical attack on lower Manhattan agencies in Washington, all search- had witnessed the explosive charge ing for meaning and understanding that some of the big financial between the lines of today’s business houses were skewing advice to headlines. They recognize that in the investors. If 9-1 1 briefly distracted gallery, in our speakers programs, us from these criticisms, today, and here in Financial History we the shock value of these allegations have illuminated the controversial pales alongside the havoc wreaked tactics of the Robber Barons, the by more recent developments. origins and watchdog responsibility Escalating charges of conflict and of the SEC! and the stabilizing role corruption, of insider trading and of the Fed, and the long-term health accounting fraud, have made their of the market. It is enormously grat- way up the chain of command ifying to me, as 1 hope it is to you to the front offices of some of as a member, that today the Museum — — the country’s best-known companies still unique in the nation can — and to the feet of some of Amer- help meet the public’s need for ica’s best-known businessmen and answers with a 15-year track record women. The market is reeling, con- under its belt. sumer confidence is down, and Americans want to know whether they can keep faith in institutions. WWW.FINANCIALHlSTORY.ORG Financial History - Summer :ooi 5 : mzwa.2/ -&' mi/s i Message Members to By Brian C. Thompson, Executive Director With costs rising and competition We haven’t been quite so aggressive increasing, many museums are chal- in diving for donors, but that’s about lenged to go to great lengths when it to change. By now you are accus- comes to staying in front of donors. tomed to reading in these pages how At a science museum near the Great the Museum of American Financial Lakes, the private curator’s tour for History is being called upon to top givers has given way to all-night meet a rapidly growing demand. sleepovers before the opening of new We know it will take more to do exhibits. (Just imagine awakening it: more volunteers, more staff, more in the Hall of Reptiles at morning programs in the gallery, more presence feeding time!) An institution here in our community and beyond. And in the city keeps its researchers on more money. We call to staff a perpetually incomplete are thrilled that Jenny demonstration project during donor Hirschowitz has joined our able, — walk-throughs not unlike the old streamlined staff as the Museum’s first FBI building in Washington where full-time Development Director. Jenny for decades, the same well-worn holds a law degree and comes to suspended carpet was beaten by club- us from the Museum of the City of wielding agents to shake loose New York, where she supervised the Honorary Trustee Peter Quick American , “fiber evidence” for VIP visitors. major gifts program. She impressed Stock Exchange president, ata recent donor reception hosted by Board Major benefactors of an aquarium us with her strong enthusiasm for member Marty Zweig. in Louisiana recently got the scare building purposeful community ties. of their lives when a rickety steel Her first and foremost task will be to catwalk collapsed during a behind- help us continually remind all of you tributors in the magazine, on the web, the-scenes tour, collectively plunging who have contributed to our growth and in the gallery, that vital support is the top tier of the donor roll feet during our first 15 years of just how helping us do meaningful work on a first into the shark tank. For several important and productive your sup- bigger scale. We are deeply grateful, terrifying minutes, as contributors port has been. As we go forward, and encouraged to do more. were plucked from the icy water, she will play a key role in bro—adening As a Museum member, I hope you aquarium keepers feared that the the Museum’s financial base build- will stop to say “hello” to Jenny and violent commotion on the surface ing new support relationships, and call on any of us here during your next would incite the sharks to bite. managing donor services. As we work visit. We’d love to see you. And we Thank goodness no one was injured. to give greater recognition to our con- don’t bite. E33 The Museum would like to thank these members for their generous recent gifts Sponsor-$i,ooo+ Smithsonian Membership-$i50+ Mr. Mark M. Carhart Mr. Andrew M. Blum The Museum thanks all contributors, Mr. Randy Cepuch Mr. John Cioffi old and new, for their continued Ms. Gail M. Dudack Mr. Michael Delaney support. To learn how you or your organization can participate Ms. Bobye List Mr. E. John Finn Mr. Louis Rukeyser Mr. 8c Mrs. Warren Hanscom in the Museum’s program, educational, and service mission, Mr. &c Mrs. Ted Theodore Ms. Diana Henriques Mr. Martin Packouz please call Jenny Hirschowitz Alexander Hamilton Society-$500+ Mr. William M. Pinzler at 212-908-4519. Mr. 8c Mrs. Allan M. Keene Mr. Kevin Shine Mr. Richard L.N. Weaver Financial History Summer zooi 6 www.financiai.history.org “High Notes” Museum To Display Top Dollars in Former U.S. Treasurer to curate exhibit of high denomination currency By Meg Ventrudo, Assistant Director for Exhibits and Education On October i, 2002, the Museum will unveil an exhibition of high Collection, denomination currency guest curated by former Treasurer of the United Numismatic States Mary Ellen Withrow. “High Notes” will be the first public exhi- National bition to showcase rare high denomi- photographer nation bills from the Smithsonian Institution, Institution’s National Numismatic Mudd Collection, including a $100,000 gold Smithsonian Douglas certificate from 1934 that was used to transfer funds between the Federal This Si00,000 gold certificate, issued in 1934- w'dbe displayed in "High Notes. Reserve Banks and a 1934 series $10,000 gold certificate. Presently, the largest U.S. note in circulati—on is the $100 bill. Larger notes in denominations of $500, $t,oo—o, $5,000, $10,000, and $100,000 were eliminated in 1969 due to declining demand. The exhibit will also feature several examples of inflationary currency from around the world, most of which resulted from wars and unstable economic policies. Histori- cally, the most famous example German currency from the era is between the first and second world wars. Illustrations of the time depict people exchanging wheelbarrows of reichsmarks for a loaf of bread. Examples ofinternational inflationary In some cases, new denominations 4 p.m. in the Museum gallery, which currency. Clockwise from top left: were printed over the existing curren- members and their guests are invited <j1ooombiilllliioonnYHuugnogsalraiviaannpdeinngaor;a; cies to save the expense of starting to attend. During her tenure as one million Nicaraguan cordobas; from scratch. Examples of interna- U.S. Treasurer, Withrow’s signature and one trillion German reichsmarks tional inflationary money, such as appeared on more currency than that (“billion” in German translates to “trillion” in English). a note for 300,000,000 German of any of her predecessors. She also reichsmarks from 1923 and a modern- holds the distinction of being the only day 10,000,000 Turkish lira note, person to hold the treasurer position will also be on display. at the city, state, and national levels. Withrow will lead a curator’s tour “High Notes” will be on display of “High Notes” on October 16 at through February 28, 2003. HD WWW.FlNANCIALHISTORY.ORG Financial History ~ Summer 2002 Gold Rushes and Campfire Songs Wells Fargo exhibit and events bring the Wild West to Wall Street By Kristin Aguilera, Editor The Museum’s summer exhibit, interns, who greeted gallery visitors Members toured the Federal Reserve “Born in New York,” traced Wells with stories of Wells Fargo’s role in Bank of New York’s gold vaults, Fargo’s history back 150 years to its the country’s westward expansion participated in a campfire sing-along founding just a few blocks from the and assisted in the creation of exhibit- with their children aboard the ship Museum at 16 Wall Street. Many visi- related educational materials. Museum Peking at the South Street Seaport, tors were surprised to learn of the intern Erica Borgese, a senior at and listened to a lecture by Wells company’s place of origin, as most Loyola College in Maryland, mounted Fargo’s chief historian, Andy Ander- assumed it was founded out West an exhibit sidebar on Wells Fargo’s son, on his new book, Stagecoach: where Wells Fargo branches dominate survival through the San Francisco Wells Fargo and the American West. the banking landscape. Others were earthquake of 1906, a story of “Born in New York” will be on more intrigued by the fact that the endurance that is especially poignant display through September 14. Mem- company’s founders, Henry Wells and since September 11, 2001. bers are invited to join assistant William Fargo, also founded the For the Museum’s members, espe- director Meg Ventrudo at noon that American Express Company two years cially those who reside in New York, day in the Museum’s gallery for the to the day earlier at the same location. the exhibit and its associated events final exhibit-themed event, “Pioneer- The exhibit also provided a learning provided the flavor ofthe West without ing Business: Lessons and Reflections experience for the Museum’s summer having to venture outside the city. from Wells Fargo’s History.”Ba Top: Dr. Andy Anderson, Wells Fargo’s chiefhistorian, gives a talk on his new book, Stagecoach. Museum intern Erica Borgese, a history Right: Folk singer Michael Power leads majorat Loyola College in Maryland, children and theirparents in a campire prepares a case for the Wells Fargo exhibit. sing-alongaboard the Peking ship at the South Street Seaport. The program brought the western theme ofthe Wells Fargo exhibit to a wideraudience. Financial History - Summer zooz 8 WWW.FINANCIALHlSTORY.ORG