Beautiful Contagious Scripophily at AIA's 45th Sale

Spread over two sessions, Archives International Auctions 45th Sale features banknotes, coins, security printing ephemera, historic documents and autographs. Over 180 lots of U.S., Chinese & worldwide scripophily are included. One of many fascinating lots is a proof Contagious Disease Hospital Bond of the City of Detroit. Unknown to the collector's market, only one hundred of these bonds were issued in 1908 as part of a $100,000 loan. This unique proof is likely the only remaining scripophily from this part of Detroit's modern history. 

Contagious Disease Hospital Bond of the City of Detroit 

$1000 3.5% Coupon Bond, 1908, printer proof 

large vignette of boats out on lake
seal of the city of Detroit (left) and of the state of Michigan (right)

A printer proof, which is basically a printed prototype, 
usually bears  the original notes from the printing company 
regarding specifications of certificate.

Despite an attractive interest rate and the full guarantee by the city of Detroit, the hospital loan was not popular. The Detroit Free Press, May 21, 1908 reports : 

"A healthy tone in the local money market was indicated by the bids opened yesterday by Controller Doremus for the $249,000 of public school bonds and the $100.000 of contagious disease hospital bonds. The school bonds, paying interest at the rate of 3.5 per cent, were over subscribed, ... . A feature of the bidding was that there were practically no offers for the hospital bonds except one made by the city sinking fund commission at par, although the full credit of the city of Detroit is pledged equally in both cases, and one bond as good as the other in point of security, rate of interest and every other respect. "It is all in the name," said Matthew Finn, representing one of the bidders. "A public school bond has a good reputation and is easy to sell, while a contagious disease hospital bond makes one think of the smallpox and other disagreeable things. Some people might even be afraid of catching the measles by handling one of the documents." 

Mr. Finn's statements may sound bizarre but were relevant to Detroit at the time. Smallpox plagued the city since the 1830s. A city hospital, operated by the Sisters of Charity to care for patients with contagious diseases, was destroyed by fire in 1892. To continue the care for patients the city's Health Board leased a steamboat, the Milton D. Ward Contagious Disease Hospital, for two years until a small hospital building was erected to treat smallpox patients. Due to more outbreaks of smallpox, tuberculosis and other diseases, construction of a more suitable facility started in the 1900s. In 1911 the first two pavilions of a new Contagious Disease Hospital were opened which became known as the Herman Kiefer Hospital for Contagious Disease.

U.S., Chinese & Worldwide 
Banknotes, Coins, Scripophily and 
Security Printing Ephemera and Autographs

Auction details

• Location : Fort Lee, New Jersey
• Dates : 16 November 2017
• Further info : see AIA , online catalogue here and PDF version there 

F.L.