Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1908-01-24
A CURIOUS CURRENCY
Notes That Were Issued by the
Mormons In Early Days.
MONEY BASED ON GOLD DUST

MONEY BASED ON GOLD DUST
An Issue Of Scrip In Denver Which Was
Unique In the Financial History Of
America-Some of 1t Redeemed In
Gold When Gold Was Above Par.
The need Of a circulating medium
brought into existence curious cur
rency among the Mormons of Utah in
the early days. They had fairly abun.
dant supply Of gold dust, but no form
Of money. When taxes were collected,
for instance, they were paid in gold
dust. The tax collector was often un.
able to give fractional change and had
to issue due bills for small amounts.
Finally SO great became the need for
a convenient circulating medium that
the suggestion was made by some Of
the leaders that the circulation Of the
Kirkland notes be authorized, the COM
munity to stand sponsor for them. And
this was adopted.
The Kirkland notes were the product
Of bank Of the wildcat species which
was in operation in 1887 at Kirkland,
O., where under the leadership Of Jo-
seph Smith the Mormons had settle
ment The institution was known as
the Kirkland Safety Society bank and
issued notes in the denominations of
81, So, SIS and $40.
Fully $4,000 worth Of these notes
yro coi1 10 4 TYyS,
the bank failed. not having at the
time Of suspension more than $4,000
with which to redeem its issue. The
result was that the notes became alb
solutely worthless. Many of the Nor
mons kept their notes, regarding them
as curiosities, while others retained
possession of them in the faith that
the prediction of Smith would one day
be realized, he being reputed to have
said that the notes one day would be
as good as gold.
The action of the Mormon leaders in
Utah in 1S49 made this prediction
come true. for the Kirkland notes at
once went into general circulation and
were placed on par with gold. Each
and every one of them was redeemed
at the Mormon headquarters in gold
dust, of which there seemed to be d
greater supply than Of representations
Of money.
There were two issues Of paper mon
ey or script in Denver, which were re-
deemed In gold, Some Of them were re-
deemed at time when gold was at d
premium and SO deserve to be ranked
among the curious currency represents
tons Of which this country has seen
many examples. 8
In September, 1861, the firm of G.. A.
Cook & Co. Of Denver issued notes OF
the denominations Of 10, % and 90
cents and 81. This firm conducted g
large general merchandise business, In
the course Of which they handled great
quantities Of gold dust, the latter at
the time being the only circulating
medium in Colorado or Kansas terri.
tory, as it was then called
| Later the firm dropped the merchan-
| disc business and took up banking.
Great need was felt for fractional
currency which would be worth as
much as gold and at the same time
save the Inconvenience of handling the
| gold dust. To supply the prevailing
need, Cook & Co. issued these notes,
which were all finely engraved on
steel and bore the promise Of the firm
| to be redeemed in gold dust.
The notes were snapped up by every.
body, but more particularly the mer.
chants, and it was not long before
Cook & Co.'s notes were In general cir.
culation in Denver and the contiguous
mountain regions. They were prompt
~ redeemed whenever presented and
being redeemable in gold dust, were
preferred to the regular United States
currency. They were the smallest gold
notes ever issued.
Some time after the banking house
caught fire and was entirely consumed.
i At great risk the senior member Of the
firm entered the burning building and
rescued the stock of gold dust, which
amounted to something like $4,000.
The following day the holders of the
notes, fearing possible loss on &C.
count Of the fire, asked for the redemp.
ton of their notes, which was granted
in every instance. But this seeming
want of confidence SO provoked Mr.
Cook that after the last note had been
redeemed and Cancelled he determined
never to issue another, and thus ended
an issue unique in Americas financial
history. 1t is not probable that q
specimen of this interesting series OF
notes is in existence today.-Wasking
ton Post