Sunday, September 12, 2021

Exhibition : From Peking to Hankow

Train World is the official museum of the NMBS/SNCB, the National Railway Company of Belgium. It is situated in the old but renovated Schaerbeek railway station in the Brussels-Capital Region.

Until 10 October 2021, the museum hosts an interesting temporary exhibition about the history of one of China's most remarkable railways, the Peking–Hankow railway. The exhibit includes several antique government railway bonds.




From Peking to Hankow : a Belgian adventure in China tells the surprising story of China’s longest railway line, from Peking (Beijing) to Hankow (today Wuhan), connecting the North to the South in the early 20th century.

Thousands of people laboured on this immense operation for seven years. This feat was achieved by engineers, technicians and workmen, and Western and Chinese diplomats and financiers. Jean Jadot, a Belgian engineer coordinated and implemented this massive project.




During your visit, the main players in the saga, embodied by talking figures, will tell you some fascinating tales and take you back in time so that you can relive grand moments in the history of the railway.

The exhibition also showcases the impressive development of China’s current high-speed railways. Original works relating to the construction of the Peking-Hankow line and created by artists Li Kunwu (China) and François Schuiten (Belgium) add a contemporary artistic touch to the exhibition. 




Train World is over 8,000 square metres and displays 22 locomotives, royal train carriages, 1/10 scale models and 1,200 other railway related objects, including an original 19th century railway bridge. One of the principal objects to see is the oldest preserved locomotive (1845) in Continental Europe.

A large format hardcover catalog has been published in French and Dutch. The volume counts more than 270 pages and depicts some large illustrations from antique securities. The museum has these scripophily objects on loan from various lenders such as the National Bank of Belgium and BNP Paribas-Fortis. A small number of bonds and shares are actually on display.

Practical info :
  • Opening hours : 10:00 - 17:00, but closed on Mondays, the Peking-Hankow exhibition runs till 10 October 2021
  • Location : Princess Elisabeth place 5, Schaerbeek
  • More info here in English, in Dutch, in French and in German  

F.L.


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Monday, September 6, 2021

HWPH stars Shanghai Stock Exchange predecessor in double session sale

Historisches Wertpapierhaus AG (HWPH) has scheduled its next international event for 18 and 19 September 2021. Specialist Matthias Schmitt and his team brought together over 2,300 lots of historic securities and related documents for this special occasion. 

The first leg of the auction is both a live and an online event and takes place in Zorneding, near Munich. The second part is an online only sale and happens the next day. 

The offerings are peppered with German rarities but also includes many desirable antique stock certificates from states like Russia, Sweden, Italy, and much more.

A dedicated 50 Highlights catalog has been compiled for the top lots in the sale. One of the highlights in the auction is a share in the Shanghai Securities and Commodities Exchange  Company Ltd from the 1920s. 



After the first turbulent years of the Republic of China, "Father of the Nation" Sun Yat-sen wanted to develop a stable national economy. A stock exchange, headed by Chinese people, was part of that plan. Together with Zhu Zhixin and Yu Qiaqing, he proposed in 1916 the formation of the Shanghai Securities and Commodities Exchange. But the military regime at Beijing blocked the initiative. When at the end of 1918 Japanese businessmen started their Share Co. Ltd in Shanghai in order to control the exchange market, the founding of the Shanghai Securities and Commodities Exchange Co. Ltd was reproposed and approved in 1919. The new exchange was inaugurated on July 1, 1920, and Yu Qiaqing was its first chairman. Shanghai became the financial center of the Far East. The exchange merged with the Shanghai Chinese Merchant Exchange to form the Shanghai Stock Exchange in 1929. This rare stock certificate, 100 shares of 50 yuan, was issued in 1925. Its vignette shows the exchange building and features early microprinting in the underprint. L(ot) 702 in the auction is expected to realise at least €9000.


The lion's share of the sale involves German securities. The auction's online catalog allows searching for your interests by means of country as well as thematic indexes. A keyword search using the word Nürnberg yields more than twenty lots, including a stunning share, interesting from an art history perspective as well, in the Tiergarten Nürnberg.



Hermann Gradl used to design Art Nouveau decorations for the Nymphenburg porcelain works in Munich. In 1907 he became a teacher at the Nuremberg School of Applied Arts. He designed the share of the newly founded Tiergarten Nürnberg AG in 1911. The zoo received 800,000 visitors in 1918. By then Gradl was as a succesful painter of German landscapes. 
Tiergarten Nürnberg survived the hyperinflation years but after the Nazis seized power, the zoo had to make way for the Nazi party rally grounds in Feb 1939. Two years earlier Adolf Hitler saw several Gradl paintings in the studio of architect Franz Ruff. The latter finished the Party Congress Hall on the new party rally grounds. Hitler arranged a meeting with Gradl and ordered six huge landscape paintings for the New Reich Chancellery in Berlin. 70,000 Reichsmarks were paid as an advance. After delivery of the works in 1941, Gradl was "asked" to join the NSDAP and he received the remainder of his fee totalling 120,000 RM. 
The Nuremberg Zoo was almost entirely destroyed during World War II. By the late 1950s it was rebuilt and today it is one of the largest zoos in Europe. L365 in the sale  



The auctioneer provided a dedicated catalog - in Russian - for the more than 200 Russian offerings : 59-й аукцион антикварных ценных бумаг. Some examples from this category :
  • L704,  a share in the Gesellschaft der Anstalt für künstliches Mineralwasser in St. Petersburg, the first company traded on the Saint Petersburg bourse, issued to and signed by Baron Ludwig von Stieglitz, court banker of Tsars Alexander I and Nicolas I. Large vignette of the building, 1834, reportedly unique 
  • L709, Moskau-Yaroslav-Archangelsk-Eisenbahn-Gesellschaft, 4% 1000 Rubel bond, 1895, 2nd emission 
  • A coat of arms, showing Archangel Michael with sword and shield and the Tsar crown on top of it, adorns a pink and black printed 5000 Rubel specimen bond from the Société du Crédit Foncier de la Ville de Kief, L765
  • L902, Trans-Alaska-Siberian Railway Company, stock certificate, 1906, issued to and signed by the French Baron Léon Loicq de Lobel known for his proposal to build a bridge-and-tunnel link between Siberia and Alaska. The project was authorized by Tsar Nicholas II of Russia.



The sale includes more than 40 Italian lots. To name a few : Banco di Roma, L1055, Fabbrica Automobili "Nazzaro", L149, and shipping company La Polare, L184. The certificate illustrated here is a 1925 share in the Industria della Maglia Dott. Francesco Floris, a textile company from Florence. Gaetano Spinelli, an Italian painter, made the wonderful monochromic print for the certificate's central vignette. Spinelli's works are displayed in the Uffizi Gallery, Florence, and Rome's Galleria Nazionale d'Arte Moderne e Contemporanea, among others. L167. 


The auction offers historic and beautiful antique stocks and bonds from all continents spanning 5 centuries of financial history. There is much more to tell, but the best way is to see for yourself. Here are the auction details:
  • Dates and place : 
    • 18 September 2021, live (and online) auction, Zorneding, followed by a meeting for EDHAC members 
    • 19 September 2021, online auction
  • Further info, catalogs and search tools, see here on HWPH. Live bidding is possible through Invaluable.com, see there, where you can find high quality images of the lots. 
F.L.


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Saturday, August 14, 2021

Watermarks in Scripophily - part 2 Paper manufacturers

In Watermarks in Scripophily – part 1 I introduced you into the world of watermarks specifically on bonds and shares. This time we’ll talk about watermarks created by the paper makers themselves, perhaps the most obvious category of watermarks in scripophily. 

The first watermarks appeared in Italy during the 13th century. They were used to identify the papermaker or the trade guild that manufactured the paper. An interesting question is whether watermarks were invented, or just a side effect in the production process?



images 1a and 1b: When viewed against a light source, this Nira Valley Sugar Co share reveals a watermark pattern of bold vertical and faint horizontal lines. This is an example of laid paper. A detail of the pattern is shown here below. Click images to enlarge. The actual company and its share was described and illustrated in part 1 of this series, see here



European paper was initially made by dipping a wooden-framed screen, a lattice of metal wires, into a tub of warm water and cellulose fibers, scooping up this pulp, and then letting the water drain out. The cellulose came from cotton linters or recycled cloth (rag), and only much later wood fibers were used too. 

The cellulose fibers subsequently matted into a thin layer against the screen. For hundreds of years these screens had a rectangular design with widely-spaced vertical “chain” wires and closely-spaced horizontal “laid” wires tied on top of the chain wires.

In the process the wires in the screen compress the pulp fibres and reduce their thickness. The resulting patterned portion of the paper is thinner and lets more light through than the surrounding paper. 

The laid wires yield faint lines in the watermark. Chain wires have a greater impact and are responsible for the bolder lines. This type of paper is known as laid paper. A nice example can be seen above in images 1a and 1b.



images 2a and 2b: The Swedish immigrant Willgodt T. Odhner invented the Arithmometer, a pinwheel calculator. Following the Russian revolution, his company moved from St. Petersburg to Göteborg, Sweden. This 1918 share’s watermark reveals a coat of arms of the paper manufacturer Lessebo, a crowned beehive with the date 1719. The words ‘Handgjord Post’ translate as ‘handmade post’. Image courtesy Wilhelm Leiter 



Paper makers found out that they could add special designs to the watermark by sewing wire designs to the screen frame. A paper maker could now incorporate its coat of arms, a logo, or its name into the watermark. The product could now be identified and became difficult to counterfeit. An interesting example is the Original-Odhner share, see images 2a and 2b.

Often paper makers have a remarkable history. The Original-Odhner’s share’s paper manufacturer is Lessebo Paper. The paper mill was originally an iron mill established in the 17th century. In the 1690s the mill started making heavy paper for paper cartridges used for containing a bullet and gunpowder. In 1719 the mill gained permission to manufacture paper, a date that you see in the company’s coat of arms (image 2a). Lessebo Paper still manufactures hand-made paper today.

Over time, the production of watermarks became mechanized. During manufacture paper pulp is passed through rolls with a raised design. The designs applied on the rolls cause density variations in the produced paper. In turn, these density variations make an image or a pattern appear in the paper in the form of various shades of lightness and darkness. We speak of multi-tonal watermarks.

A relevant example can be seen in part 1, see there, namely the Indian Post Office 5-Year Cash Certificate. That paper shows light, dark and even multi-tonal watermarks giving the viewer an impression of depth. Another fine example can be seen on a Olivetti bond, see images 3a and 3b.



Images 3a and 3b: Ing. C. Olivetti & C. was founded in 1908 as a typewriter manufacturer and evolved into computers and smartphones. This certificate, issued 1948, has a watermark pattern, a repeating design that is applied all over the surface of the paper. Watermark patterns can be seen on many Russian railway bonds. In most cases it is not possible to detect whether patterns like these were designed by the paper manufacturer, or by commission of the certificate’s printer or issuer. The pattern on this Olivetti bond consists of diagonally placed geometrical figures. The multi-tonal shade gives you an impression of depth and the pattern appears as a structure of ‘buttons’, looking like bubble wrap plastic, something I usually cannot resist popping! 



In the 1700s James Whatman started a paper making business in Maidstone, Kent. He experimented with the wire screen used in the process. Whatman replaced the lattice of laid and chain wires with a screen of a much finer woven mesh of wires. As a result, the paper was formed on a much more uniform surface and showed no watermark pattern of lines, unless a wire design had been sewn to the screen. This type of handmade paper is called wove paper, and its invention led to what we know as modern paper today.

Whatman was probably the first paper company that added a year to its watermark, see image 4b. You may discover on your certificates watermarks by other paper makers incorporating a year as well. The shares in the United Commercial Bank, Calcutta, issued in the 1960s, show the T H Saunders (or parts of it) name with the year 1946. That company was founded by Thomas Harry Saunders. Famous for its diversity in watermark designs used on stamps, bills of exchange, securities, and the like, Saunders won medals at international exhibitions for his light and shade watermarks that were used to prevent frauds.



Images. 4a and 4b: Established in the 1840s as the Auckland Hotel, Kolkata’s Great Eastern Hotel, today known as the LaLiT Great Eastern, hosted many notable persons like Nikita Khrushchev, Elizabeth II, Dave Brubeck and M K Gandhi. This 1937 share was printed on wove paper. Its watermark shows the WHATMAN name, ‘HAND MADE’ and the year ‘1916’. 



You cannot interpret a year in a watermark as the year of paper production or as a print date. It should be seen as “paper produced not earlier than” because mills did not always update their watermarks.

Besides their name and coat of arms, paper mills sometimes added to the watermark an indication of the paper brand and the paper quality. That made it easy for stationery businesses and printers to look up the right type of paper in their inventory. As an example, I show here an American paper, see images 5a and 5b.



Images 5a and 5b: The Q1 Corporation was a pioneering microcomputer company. In 1972 they delivered the world’s first personal computer based on an 8-bit general purpose microprocessor, the Intel 8008. The share bears the watermark of the Strathmore Paper Co, founded in 1892, West Springfield, Massachusetts. The watermark shows the brand ‘Strathmore Script’ and its quality ‘100% Cotton Fibre’. Cotton fibres are strong yet soft and create a uniform paper surface that is strong and flexible. 100% cotton paper is often used for banknotes. 



In some cases, paper makers add to their watermark the location where the paper was made. Some examples from Indian shares: The Rajnagar Spg. Wvg. & Manufacturing Co Ltd, preference share, 1945, was ‘MADE IN ENGLAND’ and a 100 Rupees share in The Birla Mills Ltd, 1920, reveals ‘MADE IN CANADA’.

More of a surprise is a 100 Rs share from The Gold Mohur Mills Ltd, 1926, Bombay, telling us ‘MADE IN AUSTRIA’. Another example that illustrates the export of quality paper products is shown in images 6a and 6b.



Images 6a and 6b: From Egypt, the shares from the Alexandria Pressing Company that were issued in the 1950s have a watermark showing the name of the Norwegian company ‘BORREGAARD’, the paper type ‘TUB SIZED LEDGER’ and the location of the paper mill ‘MADE IN NORWAY’.



I conclude this part in the series with one of my favorites: a share in The Dahramsi Morarji Chemical Co Ltd, Bombay (DMCC). Its watermark shows the line LUCKY PARCHMENT, a design of a jockey racing a horse, and the words RAG CONTAINING underneath. See images 7a and 7b below.

Parchment paper is not to be confused with “parchment”. The latter is a writing material made from animal skin. The former is a type of cellulose-based paper (made from wood pulp and cotton fibers) which has been treated chemically to make the paper stronger, more heat resistant and above all non-sticky.

You’ll find the words PARCHMENT also in the watermarks of shares from McLeod and Co, Ltd (1940s) and many other scripophily examples. In my example, LUCKY PARCHMENT is a parchment paper brand from the Indian paper company Ballarpur Paper and Straw Board Mills, Ltd.

RAG CONTAINING is another line of text in the DMCC watermark. Rag paper or cotton paper is primarily made of cotton linters or from used cloth (rags). Cotton paper may last many decades without any sign of deterioration, see also images 5a and 5b before.



Images 7a and 7b: This share in The Dahramsi Morarji Chemical Co Ltd was issued in 1968. The company's headquarters were located at Dr Dababhoy Naoroji Road in Mumbai. The certificate shows the coat of arms of the company, including a tiny map of India, and has a watermark of a racing jockey. 



The DMCC’s remarkable jockey watermark seems unrelated but it is not. I learned from scripophily expert Sayeed Cassim (see also here) that the Ballarpur paper company was founded by Karam Chand Thapar, who headed the Thapar Group of companies. The Thapar family was involved in race horse ownership, hence the jockey.

Time for a quick review. The first watermarks were formed, likely unexpectedly, in the production process of what we now call laid paper. Paper makers then added a logo, their coat of arms, or their name to the watermark design. Some of them further added a year, a paper type or brand, and also a location where the paper was made. If you haven’t done so already, you might start viewing your certificates against a window.

In part 3, I’ll show that paper manufacturers start adding watermark elements on behalf of one of their important customer segments: security printers.


F.L. 

This article was initially published in Scripophily magazine No. 114, December 2020. 
You might be interested to read : Watermarks in Scripophily - part 1 Introduction