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The Queen and her philatelic assets

The Queen has been on postage stamps since 50 years and going strong. Her reign on England and Postage Stamps is quite remarkable. This linkage further entwines into her own personal wealth, so as to speak of.

As of 2015, she is worth £300million but is “asset rich and cash poor”, claims the most comprehensive analysis of her wealth in decades.

Some of her most valuable possessions are kept under wraps, or rather protective sheets.

She inherited the Royal Philatelic Collection, the world’s most comprehensive collection of postage stamps of Britain and the Commonwealth, from her father, George VI.

Many of the most prized pieces were assembled by his father, George V.

With just one set of penny blacks valued at £4million, the Queen’s total collection must be worth £10million although some estimates put the figure at £100million.

The Queen also owns a valuable art collection worth many millions.

Spanish stamp fraud

On May 9, 2006, Spanish police raided 21 homes and offices of Afinsa Fienes Tangibles SA, the world’s largest postage-stamp dealer, and rival firm, Forum Filatélico. They charged eleven men with running a $6.4 billion pyramid scheme that took in some 343,000 investors – 1 percent of Spain’s entire population, making the fraud one of the largest in Spanish history.

An economy either is in trouble or has lost its sense of balance when investors shy away from tangible capital formation in favor of buying postage stamps and similar collectibles. Unlike machinery and technology, stamps do not produce real goods and services. They have long since been printed and sold by the government, and will never be used actually to mail letters. However, stamps have shown themselves to be a great vehicle to attract savers who think that buying them can produce an exponential earnings growth – or more technically, “capital” gains, if we can stretch economic terminology far enough to call a stamp collection “capital.”

If value resulted merely from scarcity, then postage stamps, coins and master paintings all would seem to increase almost automatically over time, just like most land does. But these trophies of wealth do not promote rising production, consumption or living standards. As stamps do not earn money by employing labor to produce goods and services, their price gains are neither profit nor capital gains as classically understood. They are what economists call a windfall.

The Spanish postage-stamp scheme seems to have taken off in 2003, the year in which Spain’s free-market conservative government deregulated public insurance and oversight for non-financial investment funds. Afinsa Group bought two-thirds control of the New Jersey stamp and coin auction house Greg Manning and merged it with the Spanish auctioneer Auctentia to create Escala as the world’s third largest auction house (after Sotheby’s and Christie’s). Escala moved its operations to New York City and listed its stock on the Nasdaq over-the-counter market. Despite the stock market’s lethargic trend, the company’s earnings showed such rapid growth that in just three years its share price soared from under $5 to $35, tripling in 2005 alone.

Afinsa’s purchases accounted for 70 percent of Escala’s profits, thanks largely to the fact that as its Spanish parent’s sole supplier, Escala marked up its stamps by a reported 1,150 percent, out of all proportion to the usual 25 percent. Afinsa thus was carrying stamps for which it paid 58 million euros on its books at €723 million, over ten times their catalog values – which are fictitiously high in any case, being published mainly for the benefit of stamp dealers to give their customers the idea that they are getting a good buy. But as Forum Filatélico’s chairman, Francisco Briones, explained to a reporter from London’s Financial Times: “It was ‘normal’ to charge clients such inflated prices because of the services provided . . . including the custody and conservation of stamps.”

Afinsa paid its stamp investors an annual rate of 6 to 10 percent interest, beating most competing yields as the global financial bubble was pushing interest rates steadily downward. (Spanish government bonds paid only 3.5 percent.) To build up trust, Afinsa gave its clients post-dated checks for the gains that were promised. It also promised to buy back the stamps it sold, at the original price. This gave an appearance of liquidity to the normally illiquid market in stamps, fine arts and other collectibles, where 25 percent commissions to auction houses are normal. These ploys convinced the majority to simply re-invest the money to buy yet more stamps, which the company held in its offices ostensibly for safekeeping and preservation.

Money poured in, giving stock-market investors in Escala much higher returns than the stamp-buying customers nominally were receiving. As one news report remarked, why buy stamps and coins when you can invest in companies dealing in them? But within a week of the arrests, Escala’s stock plunged below $4 a share.

The denouement came shortly after Lloyd’s of London withdrew from a €1.2 billion policy to insure Afinsa’s stamps. One of its experts noticed that if $6 billion really had been invested, it would have bought up all the investment-grade stamps in the world many times over. The fact that stamp prices did not reflect any such extraordinary buying implied that few bona fide stamp transactions occurred at all, and there had been a massive over-billing.

Victims of Afinsa’s stamp con protest in front of the Spanish National Court in San Fernando de Henares, Spain, Nov. 19, 2015. EPA-EFE FILE/FERNANDO VILLAR

Afinsa often bought the stamps from Guijarro at 8 percent of their value listed in philately catalogs and re-sold them at a monstrous profit of up to 1,150 percent. Just between 2000-02, it spent 57.88 million euros on the stamps and sold them for 723.55 million euros.

As matters turned out, most of Afinsa’s stamps had no investment value. This explained why there were no receipts for transactions with Escala. The police found €10 million in €500 banknotes (worth about $650 each at the exchange rate of $1.30 per euro) by breaking open a newly plastered wall at the Madrid home of Afinsa’s main stamp supplier, Francisco Guijarro. What they could not find were any receipts for the stamps that he allegedly bought. And despite the remarkably high markups charged for curating the stamp collection, it was rife with phonies, as Lloyd’s had suspected. Concluding that the bills Senor Guijarro had sent to Afinsa were just a cover for a money laundering operation, the prosecutors charged the family members and officers who controlled Afinsa with embezzlement, money laundering, tax evasion, fraudulent bankruptcy, breach of trust and forgery.

After a lengthy trial that stretched for almost a decade, Afinsa’s executives were convicted by the national court in July 2016 and sentenced to up to 12 years in prison, although the Supreme Court later reduced Cano’s sentence to only eight years.

The arrests recalled memories of a more famous U.S. fraud involving postage stamps some 86 years earlier, in 1920, by Charles Ponzi – the man who bequeathed his name to history in the form of Ponzi pyramid scheme. He is reported to have arrived in Boston in 1903 with only $2.50. Not speaking much English, he took menial jobs. Fired as a waiter for shortchanging customers, he moved up to Montreal and became an assistant teller in an Italian immigrant bank. It grew rapidly by paying double the normal 3 percent rate of interest on savings accounts, but failed when its real estate loans began to go bad. The bank’s attempt to give the impression of solvency seems to have given Ponzi the idea of paying interest out of new deposit inflows rather than actual earnings.[3] As long as clients felt they were receiving interest regularly, they tended to be calm about the principal balance.

Ponzi was sent to a Canadian prison for forgery, and then was jailed in Atlanta for trying to smuggle Italian immigrants into the United States. After his release he moved back to Boston and got a job selling business catalogs. A Spanish customer sent him a postal reply coupon, which allowed its holder to buy stamps in foreign countries for return mail rather than using domestic currency to buy a stamp.

Prices for these coupons were long out of date, having been set in 1907 by the International Postal Union. World War I drastically shifted exchange rates, enabling buyers to pay a small amount in Britain – or even less in Germany with its depreciated currency – and obtain a return stamp order that was good in the United States.

The markup on these tiny postal orders was large. An American penny could buy foreign stamp orders that could be converted into six cents in U.S. stamps, for a 500 percent profit. The problem was that it would take a truckload of such postal orders to make serious money. A million-dollar investment would involve a hundred million penny coupons – which then would have to be converted into stamps and sold in competition with the U.S. Post Office, presumably at a discount, mainly in immigrant neighborhoods.

Focusing on the principle of arbitrage rather than such laborious implementation, Ponzi explained that he could make a 400 percent gain after expenses. He promised that investors could double their money in 90 days, pretending to take due account of the costs and shipping time from Europe to America. When his Securities Exchange Company paid early investors the high returns he had described, they spread the word to others. Ponzi’s inflow of funds rose from $5,000 in February 1920 to $30,000 in March, and $420,000 by May. By July an estimated $250,000 a day was flowing into his firm, mainly from small investors who let their book credits build up rather than taking out their money. Some people put their life savings into the plan, and even borrowed against their homes.

Ponzi spent most of the money on himself, buying a mansion and bringing his mother over from Italy. The financial reporter Clarence Barron (publisher of Barron’s) noted that if he really had invested the money as he told his investors he had done, Ponzi would have had to purchase 160 million postal reply coupons. Yet the post office reported that few were being bought at home or abroad, and only 27,000 were circulating in the United States.

Federal agents raided Ponzi’s offices in August, but did not find any postal reply coupons, just as Spanish police did not find investment-grade postage stamps in the scheme’s 2006 replay. Ponzi was sentenced to prison yet again, but jumped bail and tried to make some quick money selling Florida real estate. He soon was recaptured, and was deported back to Italy upon his release in 1934.

What Ponzi sold was hope, pandering to peoples’ unrealistic desire to believe that a new way to make easy gains had been discovered, with no visible upper limit as to how long gains can persist in excess of the economy’s own rate of growth. It is a measure of how much harder it is to make returns in today’s world – and hence, how little hope needs to be excited – that whereas Ponzi promised to double his investors’ money every three months, the Spanish stamp scheme paid only a 6 to 10 percent annual return. Neither fraud actually made any trading gains or profits, but simply paid investors out of new money coming in from fresh players. New inflows were treated as earnings. That’s how pyramid schemes work.

It was almost as if the Spanish operators had read one of the biographies of Ponzi that began to appear as observers noticed the common denominators between the global financial bubble of the 1990s and earlier bubbles. These bubbles provide a classic contrast between the real wealth of nations and what the business press these days calls “wealth creation” that simply takes the form of rising asset prices – “capital gains,” most of which are land-price gains.

No doubt stamp collectors would have viewed the bidding up of stamp prices as wealth creation if it actually had occurred. But all it would have achieved was to inflate the price of old stamps, much as the world’s growing ranks of billionaires were bidding up prices for master paintings and modern art, designer furniture and beachfront homes. If all the economy’s savings went into Rembrandts and Picassos, their price obviously would soar, just as putting $6 billion into postage stamps would have established higher plateau levels for stamp prices.

The flow of funds into any category of assets bid up their prices. This is true most of all for land, one of the most universal economic needs and conspicuous-consumption status measures. But does this really “create wealth”? Do market prices reflect use values, living standards and the progress of civilization?

The requisite characteristic for such price gains is indeed scarcity, but not so much that there is not enough for large numbers of buyers to make a market. If psychological utility is the key, “scarcity” has value only as a compulsive acquisitive character – wealth addiction. It means having what other people lack, with connotations of denial.

Today’s balance sheets confuse bubble wealth with real capital formation. “Investment” has become whatever accountants say they are. So have asset and debt values, given today’s leeway for financial fiction. The practice of “marking to market” permits accountants to project hypothetical gains at astronomical rates of interest, or trivializing by discounting, applying purely mathematical functions that have lost all connection to realistic rates of growth. The result is that the financial sector itself has become decoupled from the “real” economy.

The tragedy of our time is that saving today is being diverted in ways that are decoupled from real capital formation, but merely add to the economy’s debt and property overhead. To distinguish wealth from overhead, this book starts with real estate, and then reviews the stock market, advance saving for pensions and health care via a flow of funds into the stock market to create capital gains. My aim is to show how different the actual economy is from what economic textbooks teach. Economic statistics have been hijacked to the cause of special-interest pleading. All but lost from sight is the common weal.

Suppose that Ponzi actually had bought International Postal Orders, and that the Spanish stamp companies actually had invested $6 billion in rare philatelic items and coins, driving up their price to create paper gains for the investors. To whom would they sell, in order to take their gains? (This is the proverbial “greater fool” problem.) More to the point, how positive would have been the broad economic effect of such asset-price inflation?

The recent stock market and real estate bubbles are much like pyramid schemes in the sense that what is bidding up stock and property prices is an exponential inflow of new money from pension plans and mutual funds (for shares) and bank credit (for real estate). Venture capitalists are “cashing out” while corporate managers exercise their stock options.

Suppose that mortgage-packaging companies are honest in their appraisals of current price trends. The real estate bubble is nonetheless speculative and postindustrial. The analogy is found when financial managers endorse government policies that encourage the inflation of price for stocks and bonds, stamps and coins, Rembrandts and modern art by claiming that this creates wealth and hence, by definition, pulls living standards and culture onward and upward.

What is wrong with this picture? For starters, it fails to define value as distinct from price, windfall and capital gains as distinct from earned income. It also neglects the fact that market prices rise and fall, but the debts remain in place. And when debts cannot be paid, savings are wiped out.

On May 9, 2006, the price of Escala shares fell by half as news of the police raids spread. By Friday its stock was down almost 90 percent. On Monday it jumped by 50 percent, from $4.34 at Thursday’s close to $9.45 a share. Hedge funds were making and losing money hand over fist, dwarfing the gains and losses made from stamp trading. A veritable market in crime, punishment and beating the rap was in play.

What does this have to do with true capital formation? Individuals are getting rich while the economy is polarizing between creditors and debtors, property owners and rent-payers. Unproductive investment occurs when it takes the form of windfall “capital” gains, and when it involves going into debt for real estate, stocks or bonds, or “collectibles.” Unproductive credit occurs when commercial banks make loans that merely finance the purchase of property, companies or financial securities already in place.

Two centuries ago, French followers of Count Henry St. Simon outlined an industrial system that was to be based mainly on equity financing (stocks) rather than debt (bonds and bank loans). Their idea was to make industrial banking a kind of mutual fund, so that claims for payment (and hence, the value of savings) would rise and fall to reflect the economy’s earning power. The industrial banking that developed largely in Germany and central Europe differed from the short-term Anglo-American collateral-based trade credit and mortgage lending. But since World War I, global financial practices have been more extractive than productive.

The consequence has been that debts on the economy-wide level have grown more rapidly than the ability to pay. Instead of reducing this debt overhead by earning their way out of debt, economies have sought to inflate their way out of debt. However, the mode of inflation is not the familiar rise in consumer prices, much less wage inflation. Rather, it is asset-price inflation, emanating largely from the United States. Since the gold-exchange standard gave way to the paper dollar standard in 1971, the U.S. economy has become unique in being able to create credit – and foreign debt – without constraint. The result has been an unparalleled growth in debt relative to income, production and wages. This “debt pollution” has been likened to environmental pollution. It is the financial equivalent of global warming.

We have entered an era in which financial markets resemble the stamp-buying funds. Governments have replaced industrial growth with purely financial wealth creation in the form of a real estate and stock market bubble. This has turned the economic universe upside-down relative to what the classical writers expected to result from the technological progress unleashed by the Industrial Revolution and its parallel agricultural, commercial and financial revolutions. Property and credit have become costs instead of a benefit, institutional forms of rent- and interest-extracting overhead rather than helpful inputs.

The entire collection of Indian Miniature Sheets (M/S)

Stamps of India: Miniature Sheets: chronological order, if you happen to like any stamp and would like to buy or trade, do not hesitate to get in touch !

Coded Messages of Love

Postal deliveries were such a celebration in yonder years by one and all– so it was practically impossible to get mail to someone without the entire household knowing about it. At a time when ‘Victorian morals’ were central and privacy wasn’t, this made personal, private messaging between couples very difficult.

So, how did they speak their feelings without writing it?

They coded it into the positioning of their stamps.

Apparently the ‘secret stamp code’ actually emerged back in the ‘receiver pays’ mail era as a way to dodge exorbitant postal fees. The sender could encode a simple answer into the placement of their stamp on the envelope – perhaps ‘yes’, ‘no’, or ‘come at once’. The receiver could then examine the envelope, extract the message and then refuse to pay the delivery fee for the unopened letter.

Obviously, this became redundant in the ‘penny post’ era but later couples adopted the system for their own needs. Here’s an example.

Will writes to Miss Laura Leech

The postcard above appears perfectly innocent to anyone scanning it. Will is asking Laura if “Bob is having some dainty dishes“. A little oblique – perhaps an ‘in-joke’ – but nothing improper.

In reality, the stamp tells another story. Will was telling Laura: “I’m longing to see you“.

This stamp messaging system was used across the postal systems of the world although there was significant variation between countries. Some system relied on where the stamp was placed on the postcard while others were concerned only its orientation to the page.

The system was remarkably subtle and sophisticated. Messages could be as simple as ‘Yes’ or ‘No’ but also as complex as:

  • “May I ask for your portrait?”
  • “Take care. We’re being watched.”
  • “I think you are very ungrateful.”
  • “My heart is another’s”
  • “I have discovered your deceipt.”

Of course, postcard companies often saw the code as a great opportunity to sell more postcards. They printed millions of these stamp messaging guides from the 1890s onward, though there was never a centralized body standardizing the code from region to region. Variation and mutation happen naturally.

As a consequence, some guides prescribe that a 90º right-turned stamp means a hopeful “Reply at once!“, while other guides would interpret the same stamp as “I wish for your friendship, but no more“.

I suspect there must have been thousands of star-crossed lovers who’s dreams were dashed by a misread coded message from a potential partner. Who would have thought that the mundane act of attaching a stamp to a letter could be loaded with such social danger?

Yet, the mystery and the wait was worth it in those times. The Instant world of today cannot phantom this evolution!

Did you know ? Fun facts on philately

Guinness World record for HM QEII

In April 2001 Gibraltar achieved a Guinness World Record by issuing the fastest stamp in history. A photograph of HM Queen Elizabeth II was taken that morning at Buckingham Palace for the Gibraltar stamps,. The photo was emailed immediately to the Bureau’s office in Gibraltar where the sheet was designed by Stephen Perera and then sent to the printers who commenced printing at 10.00am that same day. At midday, a representative of the Crown Agents flew to Gibraltar with the printed stamps and the stamps were put on sale that same afternoon (exactly 624 minutes after the photograph was taken.) The media published the story as follows; “Gibraltar gives a World Record to HM Queen Elizabeth II for Her Birthday!

Abdul Rasul’s trove of 5,915 mosque stamps sets a world record

Mr. Rasul, a 41-year-old IT professional who has entered the Guinness Book of Records for the largest collection of 5,915 stamps featuring mosques. The oldest stamp in his possession was released by the Afghanistan government in 1892. Mr. Rasul also has a rare stamp with inverted centre — printed upside down — released in Somalia in 1902. 

There have been postage stamps that are records

Bhutan, an Asian nation in the Himalayan Mountains, issued a group of postage stamps that were actually phonograph records. These stamps, issued in 1973, had native folk songs recorded on one side and could be played on a record player. 

Products were advertised on the back of stamps? 

Sometime before 1883 advertising for various products was printed on the back of U.S. three-cent stamps. 

Candles were once used to determine the postage rates? 

In 1693, letters were held in front of a candle to determine the postage rate. The less the light shone through, the more costly the rate. This was known as candling. 

An undersea post office actually did exist! 

It was established in 1939 as part of a scientific facility on the sea bed off the Bahamas. They used a special oval postmark that was inscribed “SEA FLOOR/BAHAMAS”. Here you can see the post office depicted on Bahamas 5 shilling stamp issued in 1965. 

A stamp was created on the Moon! 

In 1969 during the Apollo 11 moon flight, the astronauts took with them a die of a postage stamp which they pulled an impression of when they touched down on the moon. Thus, creating the moon’s first postage stamp! Once the die was returned to earth it was used to produce the 10 cent airmail stamp issued in September of 1969. 

The world’s largest; smallest and Oldest post offices

Chicago – biggest post office

Ochopee, Florida – smallest post office

Sanquhar Post Office (Scotland) – oldest working post office

The world’s largest post office is the head post office in Chicago, Illinois. The smallest post office in the world is located in Ochopee, Florida. 

Sanquhar Post Office (Scotland) has the exclusive title of oldest working post office in the world. Having been in continuous operation since 1712, the tiny post office has more than a 300-year history.

Can you believe Cats were used to deliver the mail! 

I’ve heard of many different types of animals being used to deliver mail – camels, reindeer, horses, dogs, pigeons, but CATS? Well it’s true. In 1879 Liege, Belgium employed 37 cats to carry bundles of letters to villages. This service didn’t last long as cats proved to be thoroughly undisciplined. 

Great Britain is the only country which issues stamps without its name printed on them. 

Instead the profile of the monarch appears on British stamps. The Universal Postal Union allows this because Britain was the first country to issue stamps. 

The first post offices in America were bags hung in taverns. 

The mail was handled by captains of ships. 

When stamps were first issued, they had no gum on the back. 

And if paste was not available, mailers sometimes pinned or even sewed stamps to envelopes. 

The first touch of humor did not appear on a U.S. stamp until 1963. 

The 5-cent City Mail delivery stamp was issued for the 100th anniversary of free city mail delivery. The design, by Norman Rockwell, featured a letter carrier holding an umbrella, followed by a smiling boy and a little dog.

10 Agents of Deterioration of stamps

Knowing the Agents of Deterioration and preventing them is important for private collectors as well so they might preserve family treasures for future generations. Below is a basic summary of the 10 Agents of Deterioration in no particular order:

Theft and Vandalism is willful damage to artifacts that is either premeditated or a “crimes of opportunity”. At home, similar precautions can be made based on the value of your collection, but locking high value artifacts away is an easy step to prevent theft or vandalism.

Fire can cause smoke damage, partial or total loss of the artifacts. As a result, it is important that fire prevention be given the highest priority possible. Fire suppression systems are advisable, at home it is important to have a fire extinguisher accessible. If some artifacts are of very high value it would be worth looking into acquiring a fire-proof safe.

Water damage can result from natural occurrences, technological hazards, or mechanical failures. Water leaks and floods are the most common causes of water damage, but can also simply be caused by spilling a beverage. Water damage causes warping and tidelines to your artifacts. It’s advisable that such precious collections are stored at least six (6) inches off the floor and inside cabinets in anticipation of a leak or flood. Storing artifacts off the floor and not placing drinks near your most treasured artifacts will drastically cut down on the danger of water damage at home.

Light damage is caused by overexposure to natural or artificial light. A loss of historical and monetary value can occur when artifacts fade from exposure to excessive light. The best method to prevent light damage is to store artifacts away from direct light.

Incorrect Humidity can cause more damage than temperature. Large fluctuations in humidity can cause the artifacts to warp or grow mold. Attempt to keep humidity between 35% and 55%. It is important to keep artifacts out of basements and attics where the biggest shifts in humidity can occur.

Incorrect Temperatures that are too low or too high can damage artifacts adversely based on the material of the artifact, often accelerating deterioration. Attempt to keep temperatures between 65°F and 72°F. It is important to keep artifacts out of basements and attics where the biggest shifts in temperature can occur.


Pollutants
 can be natural or man-made gases, aerosols, liquids, dust or dirt that are known to accelerate decay of artifacts. Aerosols and liquids that are commonly seen around artifacts are household cleaners, bug sprays, and detergents. The chemicals within these sprays can attach to the artifact and will slowly cause it to decay. When cleaning near an artifact, spray directly onto the cloth, away for the object and then wipe down the surface.

Pests, such as microorganisms, insects, and rodents, can make a feast out of artifacts. They are attracted to artifacts made from plants and animals, such as paper and fabrics. They especially enjoy cardboard boxes, so best not to store any family treasures in them. Having a regular pest inspection to check for infestation is vital to preventing any damage.

Physical Force can damage artifacts directly by causing rotation, deformation, stress, breakage and pressure. Examples of force: impact; shock; vibration; pressure; and abrasion. Most physical force is caused by general use but also by accident. At home, artifacts can be placed in cabinets or out of reach.


Neglect
 is the loss of the artifact or the information associated with the artifact, such as names, dates or locations. Also, not providing proper preservation is another form of neglect since the collections will continue to deteriorate. Most sophisticated collectors keeps thorough paper and electronic records pertaining to every artifact in its collection relating to its history and provenance. This is equally important for individuals trying to preserve and track family heirlooms.

ABSOLUTELY STUCK ON STAMPS

This article is from The Vault – dated August 23, 1971. BY Robert Boyle.

It’s the exact replica of Robert’s article. It’s so beautifully written – I wish to always go back to reading it so I copied it on my blog ( lest they remove the link). I have added my touch with the pictures 🙂

………

Not long ago Herman Herst Jr., who may be the world’s leading enthusiast of the hobby of stamp collecting, discovered that Dr. Irving Keiser, an entomologist who specializes in stamps with insects on them, had the 1939 U.S. baseball issue in his collection.

“What does this stamp have to do with insects?” asked Herst.

“Look at it,” said Dr. Keiser.

Herst peered at the stamp through a magnifying glass and said, “All I see is a guy ready to catch a fly.”

https://en.m.wikipedia.org/wiki/Herman_Herst_Jr.
The original layout of the article

“You’ve got it!” exclaimed the doctor.

At this point a less understanding and dedicated man might have turned to collecting entomologists, but Herst, the author of Stories to Collect Stamps By and other works, was enthralled. Plunging ahead in search of further funnies, he found in the doctor’s collection a copy of the 1945 Turkish stamp showing the battleship Missouri. When Herst asked (hopefully) what relation that stamp had to insects, the doctor replied, “She’s in the mothball fleet.”

It takes no more than this to put Herst in heaven. Seven days a week, every day of the year, Herst looks at stamps, writes about stamps, talks about stamps and even dreams about stamps. “In color,” he says. To Herst, no hobby, sport or pastime can compare with philately. There is, he says, the thrill of the chase after an elusive stamp, to say nothing of the absolute joy of unexpected discovery. Just looking at stamps can give Herst a sense of pure esthetic bliss. Furthermore, there are the friendships to be found in philately, “friendships that transcend race, religion and nationality,” says Herst, a gregarious sort who has been to Europe 40 times in search of stamps.

Then there is the knowledge to be acquired from stamps. Heist’s mind is stuffed full of information, 99% of it gleaned from studying stamps. He can talk at length about the membership of the Confederate cabinet (the Confederate post office made such a profit that after the Civil War the North tried to get the postmaster general to take the job in Washington), dwell on the history of whaling or the settlement of South Africa. Mention sports, and Herst is off on a gallop about Ira Seebacher’s collection of sports on stamps, pausing to throw out the fact that the former British Colony of St. Kitts-Nevis in the West Indies once issued a set of stamps to raise money for a cricket field or that the Bahama Islands not only issued stamps with game fish on them but used a postmark of a hooked sailfish. He will tell how Fred Mandell sold the Detroit Lions so he could go into the stamp business in Honolulu or recount how a bunch of kids once made hockey pucks out of bundled sheets of the very rare Providence postmaster’s provisional of 1846.

Continuing in the sporting vein, Herst is fond of relating a racetrack incident that took place in Havana in 1940 when the American Air Mail Society held its convention there. The collectors just wanted to stand around the hotel lobby talking about stamps, and they were dismayed to learn that their Cuban hosts had scheduled an afternoon at the track. When a couple of collectors suggested no one would be interested in going to the races, the Cubans said, “They’ll be interested in this.” Out of politeness the collectors went to the track and picked up a list of the entries. To their astonishment, there was a horse named Stanley Gibbons running in the first race and Stanley Gibbons was the name of a well-known British stamp dealer. The horse was an improbable long shot, but the collectors bet him on the hunch. Stanley Gibbons won. The collectors looked at the second race entries. There was another long shot named Perforation. They bet; Perforation won. So it went through the rest of the card. In every race there was a long shot with a philatelic name that paid off handsomely.

“No one in the stands except the philatelists realized what was happening,” Herst says. “The American Air Mail Society convention was one of the few stamp meetings from which attendants were privileged to go home with more money than they had come with.” The Cuban government, which apparently had arranged the whole deal to make the Americans happy, was so pleased that it surcharged a stamp commemorating the convention.

Now 62 years old, Herst has been a stamp dealer and auctioneer since 1936. His slogan is, “If it’s U.S.A., see Herst first.” His home and office are in Shrub Oak, N.Y., and outside the driveway is an enormous painting of a postage stamp. The stamp is Barbados, Scott’s Catalog No. 109, the so-called “olive blossom” because it was issued in three colors. The stamp intrigued Herst as a boy, and he has adopted it as his trademark, painting out Barbados and substituting Herst.

Herst ordinarily arises at 8 and puts in a full day exuberantly examining stamps, cataloging lots for sale at auction (he has sold more than $10 million in stamps at auction since 1936) and trotting to a bank vault in Peekskill to examine his philatelic treasures. The workday ends at midnight, but around 4 in the afternoon Herst takes a break. He pours himself a small nip and relaxes by talking about stamps or writing letters about stamps to friends and acquaintances at home or abroad. Every day Herst dispatches 50 to 100 letters to philatelic pen pals, and it does not bother him that many of his correspondents haven’t bought a stamp from him in years. “I just love it,” Herst says. Indeed, one need not write a letter to Herst to get a letter. A recent visitor was astounded to get four letters in one week. “Thought you’d be interested,” Herst explained.

Herst has such a compulsion to write that when he goes off on a trip with his wife Ida, he pecks away at a typewriter on his lap in the front seat of the car while she drives. Besides Stories to Collect Stamps By, he has written a couple of other books, Nassau Street and Fun and Profit in Stamp Collecting, and co-authored the scholarly Nineteenth Century U.S. Fancy Cancellations and The A.M.G. Stamps of Germany. Several times a year he writes and publishes his own periodical, Herst’s Outbursts, copies of which are sent gratis to anyone sending in six stamped self-addressed envelopes. So far, more than 6,000 people have written in to subscribe, and recent issues include a photograph of Herst kissing the Blarney Stone on a trip to Ireland and a long piece on the infamous Jean Sperati of Paris, “one of the most dangerous stamp counterfeiters ever to wield stamp tongs.” Sperati, Herst told his readers, was a genius who even made his own paper, duplicating that of original stamps. Fortunately, Sperati’s American counterfeits were few, limited mostly to Confederate stamps, and, although the counterfeits were superbly done, Sperati tripped himself up by using the faked postmark of Middlebury, Vt.

Above and beyond writing his own magazine and books, Herst serves as an untiring correspondent for any number of philatelic publications. Last February he and Ida took a two-week vacation in the Bahamas and, as Herst reported to readers of the 1971 spring issue of Herst’s Outbursts, “Aside from the fishing, swimming and just relaxing, we spent the time producing this issue of Outbursts; 14 of our weekly columns for Mekeel’s Weekly Stamp News; 16 of our monthly columns on ‘Stamps’ for Hobbies; feature articles for Western Stamp Collector; a series of articles for First Days; two articles for Philatelic Magazine of London and one for Stamp News of Australia, for each of which we are American correspondent.”

Philatelically, Herst has received honor after honor. He is one of only five persons to receive the gold medal of the New Haven Philatelic Society, and in 1961 he won the John A. Luff Award of the American Philatelic Society, the most coveted in the country, for his exceptional contributions to stamp collecting. Herst himself is not only a member of the APS but one of its five accredited experts qualified to pass on U.S. stamps submitted for authenticity. He was the stamp consultant for the radio program The Answer Man. He is a member of the American Stamp Dealers Association, the Oklahoma Philatelic Society, the Royal Philatelic Society of Canada, the British Philatelic Association, the Texas Philatelic Association and five dozen other stamp organizations. He is a founder-member of the Cardinal Spell-man Philatelic Museum, and he was once pleased to hear the late prelate remark that it was easy to be a cardinal but difficult to be a philatelist.

Stamps aside, Herst is a rabid joiner and do-gooder. “I’m everything!” he exults. “I’m a Kiwanian, a 32nd degree Mason, a Shriner! I’m in the Baker Street Irregulars where I’ve been invested as Colonel Emsworth, V.C.” Herst is also a member of the American Civil Liberties Union, the Manuscript Society, the American Feline Society (he feeds stray cats), the Bancroft Library of the University of California and various other organizations, including the Boy Scouts, for whom he is a merit badge examiner in stamp collecting. “I just can’t say no,” Herst says of his multitudinous memberships.

When it comes to memberships or honors, he is rivaled only by his dog Alfie, a gigantic German shepherd. Alfie is mascot of the destroyer Alfred, an honorary citizen of West Germany, an honorary postman of the Italian post office and recipient of a commendation promulgated by the German Shepherd Squad of Scotland Yard. Alfie’s honors have come about through the efforts of his energetic master. Back in the 1950s Herst discovered that federal law permits private carriers to issue “local” stamps in delivering mail to and from post offices that do not offer home delivery or pickup. Herst issued his own Shrub Oak local stamp, and in 1967 he put Alfie on a second issue. The stamp shows Alfie carrying a letter in his mouth.

Herst’s discovery of the local loophole in federal law has prompted several persons elsewhere to print their own stamps. A narrow-gauge railroad buff on Long Island issued a triangular stamp for local mail on his midget line, but the Federal Government confiscated his stamps and suppressed the mini-service because he had put the prohibited words “United States” on the stamp. Similarly, federal authorities seized the local stamps used for delivery to Rattlesnake Island in Lake Erie because they were “in similitude” to government issue. In Walpole, Mass. the members of the “906 Stamp Club,” all inmates of the Massachusetts Correctional Institution, operate a local post carrying letters from cells to the prison post office. Requests to have the route extended have been denied, says Herst, who is a patron of the prisoners and goes there once a year to speak and judge the inmate stamp show.

In the course of a year Herst gives 30 to 40 speeches before all sorts of groups. “I am the most in-demand speaker in philately,” Herst says. “That’s because I don’t charge.”

Before a staid audience of stamp collectors, Herst is fond of posing as a collector of tea tags. With a straight face, he solemnly talks about the pleasures of collecting tea tags, especially from unusual varieties of tea bags. Using philatelic jargon, Herst will hold up a tea bag and say, “This is the double string variety. Note the misprint, ‘TOOO-LONG.’ ” If the audience is receptive he will go on about tea bags all night. Several years ago Herst was paying a hotel bill in Portland, Ore. when a woman in front of him dropped her purse and the contents spilled all over the floor. “I’m terribly embarrassed,” she said to Herst. “You must think I’m crazy, but I collect tea bags.” Herst shouted, “So do I!”

A self-confessed screwball, Herst comes by his quirks naturally. His father was a somber lawyer who died when Herst was 4, but his mother was an individualist. A concert violinist, she played in an all-girl band that John Philip Sousa once organized and served as Lillian Russell’s accompanist. During World War II she was founder, president and sole member of IRCED, otherwise known as the Issue Ration Cards for Dogs society, and as such was the author of innumerable letters to the editor of The New York Times. Whenever Mrs. Herst was accosted by a panhandler, she would not give him a dime but would invite him home for chicken noodle soup.

Herst, who has been known from childhood as Pat because he was born on March 17, began collecting stamps when he was 8 and early on developed affinities for certain stamps and countries. He started collecting the Barbados “olive blossom”; the very name Straits Settlements smacked of romance to him; and he developed a deep love for Nepal. “Nepal is one of my countries,” he will confide to a fellow collector.

When not engrossed in stamps, Herst was an unruly youngster. Once a cop collared him for stealing apples from a grocery store and Mrs. Herst exclaimed, “Really! And I can’t even get him to eat fruit.” At the age of 12 Herst was shipped off to Portland, Ore. to live with an aunt. He attended high school in Portland and then went to Reed College, where he was graduated in 1931. He got a job as a reporter on the Morning Oregonian but, as he wrote in Nassau Street, his autobiography, “the increasing shadows of Depression fell across the lumber capital of the nation, and unfortunately I found my services dispensed with. I was given a letter to The New York Times calling attention to my abilities.” Bumming east on freights, Herst duly presented himself to the editors of the Times. He worked there briefly selling classified advertising and then moved to the Newark Star Ledger. But two days in Newark introduced Herst to two facts of life he had not previously encountered: first, commuting from New York to Newark was “a somewhat reverse form of existence,” and second, “people in Newark in 1932 did not believe in classified advertising.

Taking another job, Herst labored for two weeks like a busy elf, cutting imitation leather into fancy letters for theater marquees. Unfortunately, his rate of production slowed noticeably after using a razor-sharp knife to cut the letters “G” and “S,” and he left joyfully with bandaged fingers for a position in a Wall Street firm, Lebenthal and Company, dealers in municipal bonds.

Paid only $12 a week, Herst was not long in supplementing his income (and that of his fellow workers at Lebenthal’s) by forming a syndicate to buy up stamps and sell them at a profit to dealers on nearby Nassau Street. Talk around the office dealt less with bonds and more with stamps, and the head of the firm decreed that there was to be no more mention of stamps. Herst, falling back on what sociologists call collective representation, said, “Let’s call them worms,” and the Worm Syndicate at Lebenthal’s continued to do business. Given an hour for lunch, Herst spent four minutes wolfing down orange juice, coffee and a doughnut and the remaining 56 minutes discussing the finer points of philately with dealers and collectors. At Lebenthal’s Herst worked furiously because he believed in giving value for money received (“When Pat works,” says Ida, “things fly in all directions”), and he was promoted to cashier. Despite an assured future on the Street, Herst quit in 1935 to become a stamp dealer.

From the start, he loved being in stamps full time, and the saddest part of each day came when he had to lock the door to his office at 116 Nassau Street, an ancient, narrow thoroughfare as rich in characters as a Moroccan souk. To begin with, there were the “satcheleers,” little men, mostly East European Jews, who, with no overhead and no capital except their wits, made the rounds of dealers and collectors, toting stamps in voluminous satchels on speculation and consignment. Adhering to their cultural milieu, they spoke a rich patois that has surcharged stamp collecting with soul-felt Yiddish expressions. For Herst, deskbound, serving collectors during the day, the satcheleers were as necessary as bees to a flower, since they pollinated philatelically all over town.

Satcheleers still exist in stamps, and although Herst now lives 45 miles out of New York City he lets them know in advance when he is about to visit the metropolis so they may open their satchels and spread their wares before his eyes. For several years, Herst has been making notes on the satcheleer subculture, and he is particularly taken by the exploits of one known as Morris (“I wouldn’t kill a fly”) Coca-Cola, a diminutive Russian who wore oversized secondhand coats that cascaded off his birdlike shoulders and gathered in rich drapery around his ankles.

In Herst’s first heady days on Nassau Street satcheleers were not the only characters. At 90 Nassau Street lurked the Burger brothers, Gus and Arthur, elderly Germans who moved into the building in 1886 and hadn’t dusted a thing since. Their premises were awash with all sorts of papers and stamps, many of them rarities, including discoveries made by the brothers themselves when they bicycled through the South in the 1890s looking up Confederate veterans with “old letters.” The building that housed the Burgers was equally ancient. Five stories high, it had no elevator, and the rest rooms were marked “For Males” and “For Females.”

Despite the Victorian clutter around them, the Burgers knew the exact location of every stamp, and when they had finally fetched forth, amid clouds of dust and cobwebs, a superb sheet-corner margin copy of, say, the U.S. 3$ 1851 (Scott No. 11), their price was outrageous. Arthur would say to Gus, “What should we ask for this?” Gus would answer, “Twenty dollars.” Arthur would then tell the collector, in earshot all the while, “Just what I was thinking. Forty dollars.”

In Heist’s time, outfoxing the brothers, dubbed the Burglars, became a sport for experts. Anyone who outwitted them was elected to the Fox Club, which made its headquarters in the office of Percy Doane, an auctioneer. “The rules were simple,” Herst says. “One had to visit the offices of the Burger brothers, buy a stamp from them at retail and then put it in one of Doane’s auctions. If the buyer netted a profit on the deal after paying Doane the commission, he was in. But simple as the rules were, the attainment of membership was fraught with certain difficulties. In the first place, the stamp would have to be bought sufficiently below its value to permit a profit when sold at auction. Since the Burgers were usually anticipatory in their prices, asking a figure at which an item might be expected to sell 10 years hence, this made a profitable sale more than unlikely. The only way would be by finding the Burgers uninformed on the true value of something—and these Joves hardly ever nodded.”

One character Herst knew well, Y. Souren, was out of a Peter Lorre-Sydney Greenstreet movie. Souren, whose real name was Souren Yohannasiants, was a Georgian who had fled Russia during the revolution with a $100,000 collection of clocks hidden under the hay in a donkey cart. In the late 1930s Souren occupied a fancy office on Park Avenue, and visitors were admitted only after scrutiny, as though suspected members of a spy ring. He kept a private dossier on stamp dealers, collectors and those stamps that had passed through his hands. He had X-ray machines, ultraviolet apparatus and cameras at hand, and he was fond of bringing forth, with appreciative Near Eastern chuckles, photographs of what Herst describes as “unquestionably the same item, perhaps with a straight edge [of a stamp] reperforated [to make it more valuable], a fancy cancel added or other stamps added to the cover.” Souren also had photographs of ads by stamp dealers offering items that were misleading. “Comes in handy whenever I want something from someone who doesn’t want to cooperate,” Souren told Herst.

Years ahead of the FBI, Souren had a camera hidden in the ceiling of his front door, “He was always afraid of being robbed,” Herst recalls in Nassau Street, “and with good reason, for in his heyday it is doubtful whether any premises short of the Bureau of Printing and Engraving and the stamp vaults in Washington held a more valuable accumulation of stamps. He showed me photographs of every person who had passed through that door in recent days. I saw my photograph several times.”

With Herst, Souren unveiled his treasures, including his gem of gems, a block of the U.S. 24¢ 1869 inverted center, which went with him everywhere. Souren had the block mounted between glass panels in a small holder that he secreted in a special coat pocket. “Several times over a sandwich or a meal he would take it out and admire it,” Herst says.

Always a keen student of stamps as well as a collector, Herst was not long in putting his knowledge to profit. While examining some minor purchases one day, he happened to notice that a copy of the U.S. 30¢ 1869 looked a bit odd. The flags were on top of the stamp instead of the bottom. It was a rare error, Scott No. 121b, which then cataloged at $4,500. Herst had paid $3 for it, and he sold it for $3,300. He bought a car and steamship tickets for himself and his mother for a trip to Europe, where he made several coups. In London, Herst learned the Coronation issue of Southern Rhodesia had suddenly become scarce because it was withdrawn from sale. The set had a face value of about 30¢, but a British dealer offered Herst $4.03 for a set. Herst called New York, where the set was selling for only 40¢, and asked a dealer to ship as many sets as possible. Herst wound up selling some for $5 each. In Paris, Herst made a find at one of the bookstalls along the Seine, an old album containing at least 500 copies of the U.S. 50¢ Omaha, Scott No. 291. He bought the collection for $20 and within six weeks had disposed of all the stamps for almost $1,000.

Back home on Nassau Street, Herst also prospered. On Pearl Harbor Day he reacted with philatelic foresight. The minute he heard news of the attack, he addressed five envelopes to fictitious addresses in Tokyo. When Germany declared war on the U.S., Herst sent five envelopes to fictitious addresses in Berlin. Eighteen months later all the envelopes came back to Herst with a series of unusual postmarks and censor stamps, and they have been in his World War II collection ever since.

Over age for service, Herst talked about stamps to wounded veterans at hospitals. He believes stamps are excellent therapy. He also asked any servicemen he knew to remember him wherever they went. Most did, and Herst now has the first letter mailed by the Marines from Guadalcanal, a collection of stamps used for espionage purposes, copies of Hitler’s personal mail and the only propaganda leaflets dropped on the Japanese on Kiska and Attu.

“I don’t collect the conventional things,” says Heist. “Philately has no limits. There’s nothing in life that philately doesn’t cross.” To prove his point, Herst once made a bet with a collector that he, Herst, could start a specialist collection that would win a prize at a major stamp show, and that he would assemble the collection at a total cost of less than $5. Herst won the bet with a collection of wanted notices sent out on postcards by sheriffs in the 1870s and 1880s. “In those days, mail service was faster than criminals,” says Herst, who has scant regard for the present U.S. postal system.

In 1946 Herst moved from Nassau Street to Shrub Oak. “I had to get away,” he says. “I couldn’t get any work done. My office had become a lounge. There were all sorts of people there. One guy and his wife wanted to spend their honeymoon there.”

In Shrub Oak the bane of Herst’s existence is getting common stamps from people who send in a “rarity.” Herst will run to his stock, pick out a copy and send both back with the reply, “Now you have two of them!” He is often called in by estates to appraise collections, and from time to time genuine rarities do come his way. A 10-year-old boy in New Brunswick, N.J. discovered a copy of the 5¢ Kenya stamp showing Owen Falls Dam with Queen Elizabeth upside down. Herst acted as agent for the youngster and sold the stamp, the only copy known, to the Maharajah of Bahawalpur for $10,000. The money was set aside for the boy’s education.

When Herst pays a bill he often mails out a mimeographed sheet headed, “My hobby is philately” in which he notes that stamp collecting can not only be fun but a profitable hobby if one collects intelligently. In Herst’s opinion, too many neophytes and collectors buy foolishly. “Age does not make value” is one of Herst’s favorite sayings. Other Herst commandments are, “Cheap stamps never become rare,” “Condition is a factor only in relation to value,” “Demand is a more important factor than supply,” “Beware of pitfalls that trap the unwary” and “There is no substitute for knowledge.”

Herst is the first to admit he doesn’t know absolutely everything about everything philatelic. Several years ago in one of his auctions he offered a cover (the collecting term used for an envelope) postmarked Harrisburgh, Alaska. A collector in Chicago called up and told Herst that he wanted to bid $400 for it. Flabbergasted, Herst asked why, and the collector said, “Harrisburgh is the original name for Juneau. When Alaskans chose the name Harrisburgh, post office officials in Washington said they already had enough Harrisburghs and to change the name. This is the only cover I know postmarked Harrisburgh.” Herst says, “The collector got the cover for $40 and he was overjoyed. You treat collectors fairly, and you’ll never lose.”

A couple of months ago Herst was in Albany, N.Y. to judge the show put on by the Fort Orange Stamp Club. As he walked by the exhibit panels his enthusiasm appeared to flag. Was Herman Herst Jr. beginning to falter? Then he came upon a display of the intricate and seemingly boring regular U.S. issues of 1908 and 1921. “Ah,” said an acquaintance, “don’t bother with those.” Herst stopped short. “Don’t say that,” he said. “They’re exciting.” Peering closely at them, he scribbled a high mark on his scorecard and said, “I can talk to these stamps—and they answer.”

Herman “Pat” Herst, Jr

And he continues to inspire……!

Mail missiles ;)

It was a cold day in January of 1959 when United States Postmaster General, Arthur E. Summerfield, thought he had stumbled upon a stroke of genius. Not one to dilly dally with such a mental feat, he hastily made a bold and proud statement promising tax-paying citizens that before man reached the moon, “your mail will be delivered within hours from New York to California, to England, to India or to Australia by guided missiles.” He nearly made his prediction a reality. Just six months later, on June 9, he launched a Regulus I guided missile carrying 3,000 pieces of souvenir mail. High-ranking officials such as President Eisenhower and Supreme Court justices were among the lucky recipients.

On June 8, 1959, the U.S. Navy submarine USS Barbero launched a nuclear-capable turbojet cruise missile towards a naval base in Mayport, Florida. And after 100 miles and just over 20 minutes in the air, it would deliver its payload. Not a 4,000-pound warhead like it was designed to hold, but rather letters, performing the the United States’ first and last official missile mail delivery.

“This peacetime employment of a guided missile for the important and practical purpose of carrying mail is the first known official use of missiles by any post office department of any nation,” Summerfield claimed.

Summerfield’s missile was fired from the U.S.S. Barbero submarine 100 miles off the Atlantic coast to a naval air station near Jacksonville, FL. Navy planes guided the missile by radio control to its parachute landing in just 22 minutes. The Postmaster said this novel way of sending birthday cards, pen pal letters, and unwanted junk mail was “of historic significance to the peoples of the entire world.”

Cost-efficiency doomed Summerfield’s plan. But expenses weren’t the only criticism of the high-flying Missile Mail. The day after the launch, the Los Angeles Times observed that the real need for speed was in handling mail before and after transport: “We hopefully look forward to the time when the lines in front of post office windows are jet propelled. Or when rocket belts are issued to those who manage to take a week to deliver a letter mailed within the same city.”

Who is the controversial postage stamp inventor ?

Postage can reveal more than the history of a letter, it can reveal the history of a nation.

“Philately” is the proper term coined in 1865 by Georges Herpin for the studying of stamps and stamp collecting. He, who very well may have been the first stamp collector, from the Ancient Greek φιλο (philo), meaning “love of” and ἀτέλεια (atelīa), meaning “without tax.” Of course, because the ancient Greeks didn’t have postage stamps, there was no proper Greek word for the idea.

Georges Herpin

Before adhesive paper stamps came along, letters were hand-stamped or postmarked with ink. Postmarks were invented by Henry Bishop and were at first called “Bishop mark.” Bishop marks were first used in 1661 at the London General Post Office. They marked the day and month the letter was mailed.

350 Years of the Postmark Generic Sheet

James Chalmers was born in Arbroath, Scotland in 1782 and later worked as a bookseller and printer in Dundee. It is claimed Mr Chalmers thought of the idea of an adhesive stamp in about 1834 and passed his plans to parliament in 1839.

But it was only with the publication of a pamphlet Post Office Reform: its Importance and Practicability by Rowland Hill in 1837. In it he proposed a single rate of postage, tied to the use of adhesive stamps. The result was the penny post, introduced in 1840 alongside the world’s first adhesive postage stamp, the Penny Black, the credit went to Kidderminster man Rowland Hill.

Sir Rowland Hill himself designed the first stamp which cost one penny and bore the profile of Queen Victoria. Because the stamp was printed in black, the 1-cent stamp soon became known as the “Penny Black” — the world’s most popular stamp. These first stamps were imperforate, meaning that people had to cut apart the sheets of stamps. The first perforated stamps did not appear until 1854 (1857 in the United States, 1854 in Great Britain).

Rowland Hill went on to achieve great acclaim, considerable wealth and a knighthood. “It’s always the winners that write history.”

Robert Murray, who owns a stamp shop in Edinburgh, said: “Rowland Hill wasn’t very keen on the idea of adhesive postage stamps; James Chalmers was one person who strongly put forward the idea.

“It seems Rowland Hill only wanted to take the claim for it once they had become popular with the public.

Sir Rowland has since been honored over and over again by postal services throughout the world, in particular on the centenary of his death (1979), the bicentenary of his birth (1995) and the 150th anniversary of the invention of the postage stamp (1990). Among the most beautiful commemorative issues printed on those various occasions are a truly magnificent one from Portugal and others from Chile, Ghana and the United Kingdom.

James’ son, Patrick Chalmers, worked tirelessly throughout his life to have his father’s role in the invention of the adhesive postage stamp recognised. The substance of his campaign is told in the inscription on the gravestone he erected over his father’s grave in 1888: “Originator of the adhesive postal stamp, which saved the penny postage scheme of 1840 from collapse, rendering it an unqualified success, and which has been adopted throughout the postal systems of the world.”

As of 2013 the value of one penny in 1840 ranges from 32p (GBP) to 4.89 (GBP); the latter based on mean income. It would appear that the cost to an established semi-skilled man of sending a letter in 1840 can be represented by approximately 1.00 (GBP) in 2013 values (http://www.measuringworth.com/)

Postage stamps quickly spread from England to the rest of the world. In 1843, they were adopted in Brazil and in the Swiss cantons of Zurich and Geneva, and in 1845 the canton of Basel issued its famous Basel Dove – the first stamp to be printed in three colors. France, Belgium and Bavaria started putting out stamps in 1849, and other countries soon followed suit.

The first stamps were imperforate: perforated stamps, which are easier to detach, were only invented in 1851. The originator of this idea was Henry Ascher – an Englishman as well.

Sources

• Patrick Chalmers, Robert Wallace MP and James Chalmers, the Scottish Postal Reformers, published by Effingham Wilson & Co, 1890

• Leah Chalmers, How the adhesive postage stamp was born, London, P S King & Son Ltd, 1939, 33pp

• William J Smith & J E Metcalfe, James Chalmers Inventor of the adhesive postage stamp, David Winter & Son Ltd, 1971, 148pp

https://en.m.wikipedia.org/wiki/Rowland_Hill

The 10 highly valued stamps in the world

In 1967, a stamp enthusiast went to his local post office in the north England town of Rochdale to buy a pair of Great Britain stamps. He paid one shilling and nine pence (less than 10 US cents) for a pair that celebrated the invention of the television and featured a silhouette of Queen Elizabeth II.

What he didn’t realise until later was that one of the stamps was missing the queen’s head. It was a lucky purchase. In 2014, he sold the stamp, known as SG 755b, at auction for £23,600 ($36,260).

Although the advent of email has hurt postal mail service in recent years, stamp collecting remains a passionate hobby as well as a valuable business and investment strategy in many countries. Billions of stamps have been issued since the British Penny Black, the world’s first adhesive stamp, debuted in 1840, and many are laced with romance and lore — transporting collectors to exotic destinations, critical moments in history and, for some, elusive future fortunes.

Mauritius postage – two pence

In 2014, the one-cent magenta — an unassuming magenta octagon with handwritten black script released in British Guiana in 1856 — set the record for the most money ever paid for a postage stamp. The sum was $9.5m, nearly a billion times its original penny value.

Though numerous collectors have deep pockets and decades of knowledge, anyone can become a rare stamp aficionado.

And even if you aren’t as lucky as the Rochdale collector, you can quickly become knowledgeable about a range of topics and geographic locations as you build a stamp collection. Knowing what and how to buy is key.

If you think stamp collecting is just for hobbyists and not something a shrewd investor would consider, you may want to think again. Mint condition specimens have appreciated by up to 45.5% over the past 10 years, according to a recent analysis by Forbes, easily beating typical returns on real estate, gold, fine wine and the broad stock market. And the rarest philatelic treasures can sell for millions. Feast your eyes on the 30 most valuable stamps of all time.

The beauty of rare stamps and coins is their complete lack of market correlation, which is driven by the passion of high-end collectors spending money on their hobby.

During the height of the financial crisis in 2008, the GB30 index [which tracks the prices of Britain’s 30 most expensive stamps available on the open market] went up by 38% in one year.

1. British Guiana 1-cent Magenta, 1856

Value: $9,500,000 
Country: U.K.

Printed in black on magenta paper, it features a sailing ship and the colony’s Latin motto “Damus Petimus Que Vicissim” (We Give and We Seek in Return). The one-cent issue was intended to be used on local newspapers. Only a single copy has been discovered to date, which is in used condition and cut into an octagonal shape.
It was sold in 2014 to shoe designer Stuart Weitzman for just under $9.5 million (£7.4m).



‘British Guiana One-Cent Magenta’ stamp dating from 1856, on June 2, 2014 in London, England.
The stamp was initially discovered in 1873 by a 12-year old Scottish boy living in British Guiana, South America who sold it to a local stamp collector for several shillings.

2. Penny Black, 1840

Value: $5,000,000 
Country: U.K.

A British cultural icon, the stamp depicted a portrait of Queen Victoria against a black background. It was the first adhesive postage stamp in the world. Only two pieces of the early issue are found today. The 1d Black is the world’s first adhesive postage stamp – as such the 1840 stamp and all of Britain’s subsequent stamps do not include the country’s name.

Rowland Hill is credited with inventing the postage stamp after issuing a pamphlet on postal reform, he described the idea as ‘…a bit of paper just large enough to bear the stamp, and covered at the back with a glutinous wash’.

‘Treasury Competition’ was run in the lead up to the stamp issue, asking members of the public to design the new labels. None of the designs were deemed good enough and a portrait of Queen Victoria was used.

The authorities also issued a postal stationery lettersheet at the same time as the Penny Black. Called ‘Mulreadys’ after the artist whose illustration was used on them, the sheets were expected to be more popular than stamps, but were widely ridiculed by the public and often mocked by other illustrators. The lettersheets were withdrawn within months.

A reported 68,808,000 copies of the stamp were printed, meaning the Penny Black is not a rare stamp. However, examples in mint condition and with neat margins can command very high prices. The only known complete sheets are owned by the British Postal Museum. Penny Blacks can be highly collectible, with one set of four unused 1840 stamps available on the market for a whopping £140,000, while used versions can still sell for around £870.

With no perforations, each Penny Black stamp was cut from the sheets of 240 using scissors, meaning the margins of each stamp can vary greatly, depending on the dexterity of the postal worker.

The Penny Black went on sale on to the public on 1 May 1840, although it was not valid for use until 6 May, 1840. Despite this, some examples of the Penny Black stamp were used before 6 May; such covers are extremely rare and most desirable.

The letters in the bottom corners of the Penny Black stamp refer to the position of the stamp within the sheet of 240. The very top left stamp in the sheet would have the letters ‘AA’, moving right, the next stamp would have ‘AB’, moving down, the stamp would have ‘BB’ and so on.

The second adhesive postage stamp was the 2d Blue, which followed on 8 May, 1840.

The black ‘Maltese Cross’ cancellation used on the Penny Black stamps proved difficult to see and prompted the introduction of the 1d Penny Red stamp, which replaced the Penny Black in 1841.

The Penny Black was the world’s first postage stamp and Great Britain is the only country to not include the country name in the design. The Penny Black was included in the redesign of the 2016 British Passport.

3. The Two Penny Blue, 1841

Value: $4,000,000
Country: U.K.

Issued after the Penny Black, it depicted Queen Victoria against a blue background. The Two Penny Blue or The Two Pence Blue was the world’s second official postage stamp, produced in the United Kingdom of Great Britain and Ireland and issued after the Penny Black.

Initial printing took place from 1 May 1840, and in all 6,460,000 were printed from two plates until 29 August. Officially the stamps were valid for postage from 6 May but were only available from 8 May. Except for its denomination, the design is exactly the same as the penny black and was struck from the same die.


The largest known surviving block of the Plate 1 printing of the 1840 Twopenny Blue. In mint condition, the 38-stamp block was purchased by King George V in the 1920s.


4. Benjamin Franklin, 1867

Value: $3,000,000
Country: U.S. 

The Benjamin Franklin Z Grill, or simply “Z-Grill”, is a 1-cent postage stamp issued by the United States Postal Service in February 1868 depicting Benjamin Franklin. While stamps of this design were the common 1-cent stamps of the 1860s, the Z-Grill is distinguished by having the so-called “Z” variety of a grill pressed into the stamp, creating tiny indentations in the paper. Although the 1-cent Z-Grill is generally cited as the rarest and most valuable of all US postage stamps, the 15-cent Lincoln Z-Grill is just as rare and the 10-cent Washington Z-Grill scarcely less so. All three of these stamps were produced at the same time, along with more common Z-grill versions of the contemporary 2-cent, 3-cent, 5-cent and 12-cent stamps.

The purpose of grilling was to permit the canceling ink to be better absorbed into the stamp paper, thus preventing reuse of stamps by washing out the cancellation marks. The use of grills was found to be impractical and they were gradually discontinued after 1870.

There are currently only two known 1-cent 1868 Z-Grills, both with cancellation marks. One is owned by the New York Public Library as part of the Benjamin Miller Collection. This leaves only a single 1-cent 1868 Z-Grill in private hands.

Late October 2005, Sundman traded his Z-Grill to financier Bill Gross for a block of four Inverted Jenny stamps worth nearly $3 million. By completing this trade Gross became the owner of the only complete collection of U.S. 19th century stamps.

Benjamin Franklin 1¢ – Blue 1,000 – Z Grill – 1867 2 copies still survive

5. The Treskilling Yellow, 1855

Value: €2.6 Million
Country: Sweden

The Treskilling Yellow is considered one of the most expensive postage stamps in the world due to the fact it should be printed in a blue-green colour with the three-skilling print, but it was actually printed in yellow. This Swedish misprinted stamp issued in 1855 is believed to be the only surviving copy to exist, which is why it is worth over €2.1 million. The stamp has been sold more than once, each time climbing with value.

Upon its release, five different stamps were issued including 3 and 8-skilling ones. The three-skilling stamp was green. The eight-skilling one was of yellow-orange color. One day, for unknown reasons, the three-skilling stamp of yellow color was issued. Experts suggest that employees forgot to change the paint and issued a sheet of yellow stamps, which were successfully sold later. Despite the fact that a whole sheet of yellow rare stamps was printed, at present, only one yellow stamp has been found. Therefore, the value of the three-skilling stamp is determined by its color.

This stamp was discovered in 1885 by a young man who saw it among old letters and papers. A year later, he sold it for 7 kronor, which was a large sum of money at that time. The person who acquired the stamp was Heinrich Lichtenstein. He could not determine the authenticity of the item so he decided to ask for expert opinion. Experts confirmed that the stamp was genuine. After that, several people owned the Treskilling Yellow. Finally, in 1894, a well-known collector bought the stamp for $3,000. Since no other Treskilling Yellow stamps were found since 1885, it became clear that this stamp was unique.

The owner of the stamp, Philippe Ferrari died in 1917, and the French government confiscated his collection. Interestingly, his collection was sold in parts despite the will he left. After the death of the stamp owner, its lifecycle became volatile. Here’s what happened to the Treskilling Yellow after Philippe Ferrari died:

• 1992 – The stamp was sold to Baron Eric Leijonhufvud. He bought it for $4,300-$5,000.

• 1923 – Claes A. Tamm acquired the stamp at a price two times greater than the previous one.

• 1928 – Johan Ramberg tracked the lifecycle of the stamp and bought it at an auction. Its price rose to $15,000.

• 1937 – King Carol II acquired the stamp in his collection. The price of the yellow stamp was doubled. The Treskilling Yellow became one of the most expensive stamps ever printed.

• 1950 – Rene Berlingen acquired the three-skilling stamp. The price is still unknown.

• 1971 – The stamp was put up for auction on behalf of the owner for $500,000. Despite the unusual story of the stamp, no one dared to buy it.

• 1974 – A scandal was brewing around the item. The Swedish Postal Museum planned to purchase the unique item for $1,000,000, but during the evaluation experts claimed that the stamp might be fake. A year later, another examination dispelled all the rumors and confirmed the authenticity of the Treskilling Yellow.

• 1978 – Edgar Mohrmann bought the unique stamp. The price was 1 million deutsche mark.

• 1984 – The Treskilling Yellow was acquired by a secret buyer from Scandinavia for almost $500,000.

• 1990 – A successful businessman buys the unique item for $1,3 million. However, the contradictions between the buyer and the seller led to the cancellation of the deal.

• 1996 – The price of the item reached a record value at all the subsequent auctions. A Swedish stamp dealer purchased it for $2,3 million, but again the buyer could not pay for the stamp.

• 1998 – A secret buyer from Copenhagen acquired the yellow stamp. The price has not been disclosed yet.

• 2010 – A group of people bought the Treskilling Yellow for $2,3 million.

• 2012 – A scandal erupted. The Andre family tried to file a lawsuit against a bank, claiming that their Treskilling Yellow stamps (which they allegedly kept there) were missing. Their claim was rejected.

• 2013 – A well-known Swedish politician has bought the unique stamp and continues keeping it in his collection.



The Treskilling Yellow
Count Gustaf Douglas, a Swedish nobleman and politician, bought the unique 1855 error of colour by private treaty in May 2013, and included it in a display to the Royal Philatelic Society London on October 31, 2013.
Douglas, the owner of the firm Securitas, is the 423rd richest person in the world, according to Forbes magazine.

6. The Sicilian Error Of Color Stamp , 1859

Value: €2.6 Million
Country: Italy

The stamp depicting King Ferdinand II is known as the “Error of Color,” because it was mistakenly printed in blue instead of orange. The original exemplar of this stamp was yellow, but a small run of 1859 was released in a blue color for some reason. Today, philatelists know about two exemplars of this stamp existing in the world. It goes down in history as the most expensive Italian postage stamp when it was sold at Galerie Dreyfus’ international stamp auction in Basel to an anonymous US bidder for $2.6Mn in Nov 2011. 

Only two such stamps are known to exist. 


The Sicilian Error Of Color Stamp , 1859

7. The First Two Mauritius, 1847

Value:  € 2,000,000
Country: U.K.

The Mauritius “Post Office” stamps were issued by the British Colony Mauritius in September 1847, in two denominations: an orange-red one penny (1d) and a deep blue two pence (2d). Their name comes from the wording on the stamps reading “Post Office”, which was soon changed in the next issue to “Post Paid”. They are among the rarest postage stamps in the world.
With only 26 known copies known to still exist and being the first British Commonwealth Stamps to be produced outside of Great Britain, it is no wonder that the Mauritius stamps hold a value of over €1 million each.

The words “Post Office” appear in the left panel, but on the following issue in 1848, these words were replaced by “Post Paid”. A legend arose later that the words “Post Office” had been an error.

The sale of two of philately’s most prized items took place in Geneva on Dec. 1, 2016, when the famous Mauritius “Post Office” copper printing plate was hammered down by David Feldman for €1.1 million, and the famous Bombay cover franked with two rare 1-penny “Post Office” Mauritius stamps realized €2 million. The new owners, who remain anonymous, are reported to be private collectors.

Mauritius was the first British Empire territory (outside of Great Britain itself) to issue postage stamps. The tiny Indian Ocean colony was just the seventh country in the entire world to introduce stamps for the prepayment of postage, after Great Britain, Brazil, three Swiss cantons and the United States.

The issue was undertaken locally on the initiative of the governor, Sir William Gomm, who commissioned the engraving of the plate by Joseph Osmond Barnard, an Englishman who was said to have stowed away on a ship to the island in 1838. Just 500 examples were printed before the plate was retired.

Many of the stamps were used up by the governor’s wife for invitations to a ball. Just 27 are thought to have survived. The rare remaining “Post Office” covers are considered among the greatest treasures in all of philately.

 


The First Two Mauritius Post Office stamps,
Issued in 1847 in Mauritius during the British Colony, these stamps were modelled on the British stamps with an image of Queen Victoria.

Franked with two rare 1847 1-penny “Post Office” Mauritius stamps, the 1850 Bombay cover was auctioned Dec. 1 by David Feldman in Geneva, Switzerland, for more than $2.5 million.

The piece de resistance of the sale was the famous Bombay cover. Discovered in a street market in India in 1895, the cover bears two large-margined examples of the 1d “Post Office” stamp, tied by barred cancels on a cover addressed to Bombay.

The cover was bought by Raymond Weill in H.R. Harmer’s 1968 sale of the Dale-Lichtenstein collection for $380,000, then a world-record price for any philatelic item.

It had changed hands only privately since then, and had been exhibited at the Interphil exhibition in Philadelphia in 1976, where its contents, a letter about a shipment of scriptures to the island, were revealed for the first time. The cover has now gone to a new owner for $2,548,000. 

8. The Whole Country Is Red, 1968

Value: $2,000,000
Country: China

The Whole Country is Red is the most wanted stamp in the burgeoning Chinese philately market, which has helped to raise the price to a seven-figure sum in recent years. It is the most expensive stamp ever have sold in China, beating a record set in 2012 of 7.3 million Chinese Yuan by the sale of another Big Red stamp. 

The Whole Country is Red is a Chinese postage stamp, issued on 24 November 1968
during Chairman Mao’s Cultural Revolution, the stamp features an image of China in red , which contained a design error. The stamp featured a map of China with the words “The Whole Country is Red” , with a worker, farmer, and soldier standing below with copies of Quotations from Chairman Mao. The face value of the stamp is 8 fen.

The stamp features Communist slogans such as “Long live the total victory of the Cultural Revolution without the bourgeoisie” and “All mountains and rivers across the country are a sea of red”.

There are only nine of them remaining in circulation. It was issued by the Communist Government to celebrate the “full victory of the Great Proletarian Culture Revolution” and the establishment of 29 Revolutionary Committees across China.

Taiwan was not shaded red as at the time of printing, it was under the control of the Republic of China instead of the PRC. The official reason given for the withdrawal of the stamp was that the Spratly and Paracel Islands were missing from the map, as well as the borders with Mongolia, Bhutan, and Myanmar being incorrectly drawn. The stamp had been distributed for less than half a day when an editor at SinoMaps Press noticed the mistake and reported it to the Ministry of Industry and Information Technology. As a result, all Chinese post offices had to stop selling the stamp and return all copies, with only a small quantity making it to private collectors.[ The designer of the stamp, Wang Weisheng, said in an AFP interview, “For a long time I was really worried that I would be jailed”.

9. Baden 9 Kreuzer Error Stamp, 1851

Value: $1,545,000 
Country: Germany

The Baden 9 Kreuzer Error is a postage stamp error produced by the historical German state of Baden in 1851. Baden’s first postage stamps were issued on 1 May 1851. The “9 Kreuzer Green” stamp was a color misprint of the 9 Kreuzer denomination that was printed in green instead of pink. Green color was planned to use while making 6 Kreuzer stamps. The 9 Kreuzer error was not discovered until 44 years after the stamp was issued. Two letters initially were in the collection of Baron von Türckheim.

Only 4 copies of Baden 9 Kreuzer Error are known to exist. The only one of them is unused and it was auctioned on April 3, 2008 for 1,314,500 euro by David Feldman.

10. Inverted Jenny, 1918

Value: $1,350,000
Country: U.S. 

The Inverted Jenny is a 24 cent United States postage stamp first issued on May 10, 1918 in which the image of the Curtiss JN-4 airplane in the center of the design is printed upside-down; it is probably the most famous error in American philately. Only 100 copies managed to make it through printing, which is why the Inverted Jenny is valued so highly.

Initial deliveries went to post offices on Monday, May 13, 1918. Aware of the potential for inverts, a number of collectors went to their local post offices to buy the new stamps and keep an eye out for errors. Collector William T. Robey was one of those; he had written to a friend on May 10 mentioning that “it would pay to be on the lookout for inverts”. On May 14, Robey went to the post office to buy the new stamps, and as he wrote later, when the clerk brought out a sheet of inverts, “my heart stood still”. He paid for the sheet, and asked to see more, but the remainder of the sheets were normal.

In a 2016 auction in New York City, one of the stamps sold for a whopping $1.35 million. The Jenny invert is so famous in the philatelic community—and the general public as well—that the complete history of all sales have been publicly documented.

There are numerous publications and memorabilia dedicated to this historic stamp. a good reference to start with would be a published articles call the Books of the Times.

The U.S. Postal Service on September 22, 2013 issued The Inverted Jenny souvenir sheet featuring a new version of perhaps the most famous error in the history of U.S. The sheet includes six Inverted Jenny stamps, reprinted with an updated denomination and surrounded by an illustration that includes the National Postal Museum in Washington, D.C.; the route of the first regularly scheduled airmail service between Washington, Philadelphia, and New York; and aviation pioneer Reuben H. Fleet, who was in charge of the first group of airmail pilots. The intaglio printing plates for the new stamps were created using proofs made in 2013 from the original Inverted Jenny dies. Issued to commemorate the start of the first regular airmail service in the United States, the original Jenny stamp was designed to show a Curtiss JN-4H, or “Jenny,” the biplane used to deliver the mail.

The Inverted Jenny celebrated its 100 years milestone last year. U.S. Postal Service began the celebration of the 100th anniversary of U.S. scheduled airmail service by issuing a U.S. Airmail Anniversary stamp in Washington, D.C. The nondenominated (50¢) horizontal blue forever stamp shows a Curtiss JN-4H “Jenny” biplane similar to the first planes used by U.S. Army pilots to move the mail by air. A curved banner across the top reads “United States,” while a second banner along the bottom reads “Air Mail.” A ribbon inscribed “Est. 1918” is positioned just below the vignette, which shows the front of the Jenny biplane with its propeller turning.


1 Sheet of 6 Inverted Jenny officially issued USPS Unused Fresh Bright US Postage Stamps – 2013
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