Bon Scrip of early North American traders

Started by brandm24, October 17, 2021, 12:39:26 PM

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brandm24

This exceedingly rare example of what's known as Bon Scrip was described by its owner, Eric P. Newman, as "an element in the circulating medium, particularly in the Missouri River fur trade. Bons were given to suppliers by fur trappers and traders to be paid on the return from an expedition. Some were promissory notes and others were bearer obligations."

Newman, now deceased, had five examples of Bon Scrip in his collection when it was auctioned in 2017 / 2018. Apparently, no others have survived as none have ever appeared in public auctions or in the holdings of other currency collectors. Even the massive collection of famed numismatist F.C.C. Boyd had no examples. These five were owned by Newman for decades.

This particular example is written on laid paper (early manufacture textured paper) and measures approximately 12.1 cm. x 8.3 cm. The small size made it easy to carry and later redeem. It was issued by Registre Loisel, a French-Canadian trader who arrived in St. Louis in 1798 and entered into a partnership with Pierre Chouteau and Jacques Clamorgan. Loisel would later establish a trading post on Cedar Island in the Missouri River near present day Bismarck, North Dakota.

The note reads "Bon [Scrip] for 3 Livres 10 Sols to bearer / current money [deerskins or other furs] St. Louis, June 1, 1803, [signed] Reg. Loisel." the back is marked "No. 12" and is likely a control number used by Loisel.

Though I've had an interest in colonial currency, broken banknotes, and private scrip of early America for years, I wasn't aware of this form of exchange until recently. I find it very interesting and am amazed that even these few examples have survived.

(images courtesy of the Newman Numismatic Portal, St. Louis)

Bruce
Always Faithful

SC


Figleaf

The text is:

-- Bon pour Trois Livre dix sols
-- Argent Courant. St. Louis
-- Le 1ier Juin 1803

Reg. Loisel

Good for 3 livres 10 sols (that's 3½ livres in French money) in current money.

Saint Louis, June 1, 1803

Régis Loisel

The financial instrument is a sight draft. It would somehow have been accompanied with (possibly oral) instructions on who, possibly one of his partners, would pay the money to the bearer of the draft. One scenario is that Loisel bought furs e.g. at his HQ in what is now North Dakota with these drafts and the promise to pay the draft in some big city. This may well have been a security measure in case the Indians turned against him. Settling on an easy to defend island goes into the same direction. In other words, this paper is not currency.

At the time of dating of the draft, the area was nominally under Spanish control, though a French possession until the Louisiana purchase in July 1803.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

brandm24

These were issued by Loisel after his brief partnership with Chouteau and Clamorgan ended. By 1803 he was trading on Cedar Island alone so would have been responsible for payment. This was a promissory note payable to anyone who presented it along with the proper amount of furs and skins.

The Newman collection included at least one example of a bearer note issued by Samuel Solomon to a trapper named Francoise Liberge in the amount "twelve dollars money [or] two and a half pounds of deerskin per dollar." This one is dated March 2, 1805. I'll post the details of this example as soon as I can complete my research. So far I haven't been able to trace the other three Bons from Newman's collection.

Bruce
Always Faithful

brandm24

I found nothing else about the Samuel Solomon Bon I spoke of in the last post. The information below is from the Heritage Auctions website.

It's also printed on laid paper and measures 9.0 cm x 6.5 cm, even smaller than the first example. It reads "Good for twelve dollars money [equal to] two and a half pounds of deerskin per dollar at St. Louis on March 2, 1805. On behalf off Frs. [Francois] Liberge. [signed] Sam'l Solomon.

I haven't been able to trace the other three Bons from Newman's collection.

Bruce
Always Faithful

Figleaf

The text on this paper is also in French:

Bon pour douze piastre
argent à raison de deux
livres et demi de peaux
Chevreuille per piastre
à St Louis le 2 Mars 1805
            per frs Liberge
            Sam Solomon

It contains some spelling errors. There are also some translation errors. Notably, piastre does not refer to dollar but to a Spanish colonial peso de a ocha. Also, but less important, chevreuil (this is the correct spelling) is a roe, a type of deer that does not occur naturally in the US but is well known in France.

Good for 12 silver pesos, of 2½ pounds of roe skin for each piastre. In St. Louis on 2nd March 1805 in the name of François Liberge (by) Sam Solomon.

The transaction is clear to me. Trapper/hunter X has sold 30 ponds of roe skins to Sam Solomon, a fur trader's agent somewhere deep in the jungle, for 12 pesos. Solomon carries no money, so he writes a sight draft on the account of François Liberge. Mr. X accepts the draft, becoming the bearer.

Mr. X now has the choice of going to St. Louis to cash the draft or selling it. The draft is worth 12 pesos in St. Louis, but not in the darkest jungle of a French colony. The buyer of the draft will collect as many drafts as he can and travel to St. Louis. He will charge a fee for this service, effectively discounting the paper and operating as a bank, discounting a bill of exchange (which is not anonymous) today. Mr. X has little choice, as the only alternative is to go to St. Louis himself, a costly proposition.

Again, this is not currency, but commercial paper. This one is clearer because of the second name, the person who will pay hard cash for the paper.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.