From National Archives, RG-185-G, Volume 20, Image 84 (edited).
pc265-01
pc265-01
History of the Tokens
In 1919 it was decided that because it was necessary for the Palo Seco patients to handle money to issue a special currency which would be good only at Palo Seco. Outstanding Palo Seco currency was covered by deposits of actual United States currency in the custody of the superintendent. A 1965 letter from Dr. Ezra Hurwitz, Superintendent of the Palo Seco Leprosarium gave the reasons as follows:
1. The idea of money that has been handled by patients having leprosy was repugnant and the possibility of contagion by this means was thought to be by no means absent;
2. Patients having ordinary money could buy rum or other prohibited articles from bootleggers, or by other illegal means;
3. Not being able to accumulate money that is legal outside of the institution was considered to be a deterrent to those wishing to escape.
The tokens have a simple design which says "PALO SECO CANAL ZONE" on the obverse. In view of the name changes over the years, choosing to simply say "PALO SECO" on the tokens this was an excellent choice! The reverse says "REDEEMABLE FOR xx CENTS IN MERCHANDISE". The denomination appears both written out (e.g. "FIVE") and as a number (e.g. "5"). The one cent and five cent denominations are made of brass and have a center square hole. The other four denominations (10 cents, 25 cents, 50 cents and one dollar) are made of aluminum and have a round center hole. Each token is approximately the same size as the equivalent United States coin. Mintage was 2000 of the one cent denomination, and 1000 of each of the other denominations.
Below are some recollections of the daughter of the paymaster who visited Palo Seco:
"My Dad told me that the lepers would carry a string that had a button on one end and a loop on the other that they threaded through the hole in the center of the coins so they could keep them under control. Most of the lepers had horribly disfigured and missing fingers which made handling of the coins difficult for them.
There was a Catholic church at the colony and the lepers would put coins into the collection basket. The nuns that keep the church and linens clean would also clean the coins in alcohol and then present them to the paymaster for U.S. currency on the colony payday."
In 1952 the Palo Seco tokens were withdrawn from circulation. On November 28, 1955 most of the tokens were destroyed by the Maintenance Division in Balboa. Of the $1800.00 in tokens issued, $1492.75 were recorded as being destroyed at that time. Quoting Dr. Ezra Hurwitz again, the reasons were as follows:
1. It became recognized that leprosy is very mildly contagious and is not likely to be transmitted by the handling of money;
2. There had been great improvement in the condition of the patients since the introduction of sulfones in treatment;
3. Silver money is thought to be in itself "self-sterilizing."
The dies used to mint the Palo Seco tokens are still extant. The obverse dies are in one private collection, and the reverse dies in another.
Links for More Information
The University of Virginia has an interesting document describing the early history of Palo Seco in their Philip S. Hench Walter Reed Yellow Fever Collection. Markchestnut.com has photos and short personal stories from patients at Palo Seco (and other institutions).
Alonsoroy.com has medical history articles of Panama written in Spanish. I found the Palo Seco articles very informative. There are two articles related to Palo Seco. The first article is the history of Dr. Hurwitz (quoted above) and his wife and their work at Palo Seco. The second article is the general history of the Palo Seco Hospital.
In 1919 it was decided that because it was necessary for the Palo Seco patients to handle money to issue a special currency which would be good only at Palo Seco. Outstanding Palo Seco currency was covered by deposits of actual United States currency in the custody of the superintendent. A 1965 letter from Dr. Ezra Hurwitz, Superintendent of the Palo Seco Leprosarium gave the reasons as follows:
1. The idea of money that has been handled by patients having leprosy was repugnant and the possibility of contagion by this means was thought to be by no means absent;
2. Patients having ordinary money could buy rum or other prohibited articles from bootleggers, or by other illegal means;
3. Not being able to accumulate money that is legal outside of the institution was considered to be a deterrent to those wishing to escape.
The tokens have a simple design which says "PALO SECO CANAL ZONE" on the obverse. In view of the name changes over the years, choosing to simply say "PALO SECO" on the tokens this was an excellent choice! The reverse says "REDEEMABLE FOR xx CENTS IN MERCHANDISE". The denomination appears both written out (e.g. "FIVE") and as a number (e.g. "5"). The one cent and five cent denominations are made of brass and have a center square hole. The other four denominations (10 cents, 25 cents, 50 cents and one dollar) are made of aluminum and have a round center hole. Each token is approximately the same size as the equivalent United States coin. Mintage was 2000 of the one cent denomination, and 1000 of each of the other denominations.
Below are some recollections of the daughter of the paymaster who visited Palo Seco:
"My Dad told me that the lepers would carry a string that had a button on one end and a loop on the other that they threaded through the hole in the center of the coins so they could keep them under control. Most of the lepers had horribly disfigured and missing fingers which made handling of the coins difficult for them.
There was a Catholic church at the colony and the lepers would put coins into the collection basket. The nuns that keep the church and linens clean would also clean the coins in alcohol and then present them to the paymaster for U.S. currency on the colony payday."
In 1952 the Palo Seco tokens were withdrawn from circulation. On November 28, 1955 most of the tokens were destroyed by the Maintenance Division in Balboa. Of the $1800.00 in tokens issued, $1492.75 were recorded as being destroyed at that time. Quoting Dr. Ezra Hurwitz again, the reasons were as follows:
1. It became recognized that leprosy is very mildly contagious and is not likely to be transmitted by the handling of money;
2. There had been great improvement in the condition of the patients since the introduction of sulfones in treatment;
3. Silver money is thought to be in itself "self-sterilizing."
The dies used to mint the Palo Seco tokens are still extant. The obverse dies are in one private collection, and the reverse dies in another.
Links for More Information
The University of Virginia has an interesting document describing the early history of Palo Seco in their Philip S. Hench Walter Reed Yellow Fever Collection. Markchestnut.com has photos and short personal stories from patients at Palo Seco (and other institutions).
Alonsoroy.com has medical history articles of Panama written in Spanish. I found the Palo Seco articles very informative. There are two articles related to Palo Seco. The first article is the history of Dr. Hurwitz (quoted above) and his wife and their work at Palo Seco. The second article is the general history of the Palo Seco Hospital.
Rarity
Palo Seco tokens are rare due to the destruction of the majority of the tokens as well as 33 years of circulation. Examples known were probably kept as souvenirs by the few visitors and administrative personnel. They are much sought after by Panama specialists, leprosy specialists and others.
Collecting Palo Seco Tokens
The good news is that the series is small - only six coins. The bad news is rarity and price. I know of at least ten complete sets that have been put together. With patience, luck and about $2000, it can be done. With a smaller budget, you may need to be satisfied with an example of either the one cent or five cent denominations.
Pricing
Pricing is based on several factors, which ultimately are supply and demand. How many specimens are available and how many collectors want them. With the Palo Seco tokens, the supply is low and the demand is higher than usual for Panama tokens. So a Palo Seco token with 12 examples known is priced higher than another Panama token with 12 examples known. Due to the nature of auctions, similar specimens will sell at very different prices depending on the demand of the moment. This makes it hard to develop an "accurate" catalog value. The values below are my best effort at balancing the various factors.
Numbering System
All the Panama tokens have been designated with the letters "PT", and grouped by issuer and then by type. Each group is given a unique number. Within each group, each piece is given a unique number based on its denomination in cents. I have selected group number 500 for the Palo Seco tokens. Permission is hereby granted to anyone to use the numbers below in referring to these tokens, in print or electronic media, by calling them Plowman's PT-500.xx at least once, or referencing www.coins-of-panama.com.
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