Showing posts with label counterfeiting. Show all posts
Showing posts with label counterfeiting. Show all posts

Monday, November 24, 2014

Newton versus the Counterfeiter

Intended for a general readership, this book rests on an extraordinary foundation of careful scholarship.  Newton and the Counterfeiter: The Unknown Detective Career of the World’s Greatest Scientist by Thomas Levenson (Boston/New York: Houghton Mifflin Harcourt, 2009).
Thomas Levenson teaches science journalism at MIT. He has been granted special recognition for his Public Broadcasting Service (PBS) documentaries. Among those is a Westinghouse award from the American Association for the Advancement of Science, which he shared with co-producer Paula Apsell, for the 1992 PBS “Nova” presentation, Eclipse of the Century. In 2005, the National Academies honored Levenson with a Communications Award for his PBS mini-series production, “Origins: Back to the Beginning,” about evidence for the ontology of life. He knows science; and he knows how to present its difficult facts and complex theories.
            This lively historical narrative of criminology and jurisprudence animates Sir Isaac Newton’s career as a detective and prosecutor. Levenson delivers to print the videographer’s impact of sight and sound. Levenson introduces us to Newton in a series of establishing shots, pan-and-zoom vignettes that sketch and detail the events spotlighting the intellectual and emotional development of the man easily nominated as the greatest scientist. You walk down the alleys and into the pubs where Sir Isaac Newton investigated crimes against the British Royal Mint which he served as warden and master.
            Levenson opens the book by outlining Newton’s intellectual and emotional development. Complementing his work in mathematics, astronomy and optics, Newton also experimented with alchemy, performing purifications and alloys of metals. Emotionally, Newton’s isolation was rooted in self-abnegation. The hint of a homosexual dalliance comes as an instantaneous action, the lifelong reaction to which only distanced his social relations to ethereal planes. You could get no closer to Newton the man than you could to the Man in the Moon. Thus, this combination of unflinching pursuit of difficult theoretical and empirical truths, bulwarked by a stellar disregard for other people’s feelings made Newton the perfect prosecutor.
Newton portrait
by Enoch Seemar 1726

            The counterfeiter, William Chaloner, was Newton’s opposite. A runaway apprentice whose first lawful skill was making nails, Chaloner found London to be a probabilistic cloud of moral relativity whose potentials suited his self-indulgence. For William Chaloner, counterfeiting coins was only one craft in a wider enterprise. In the language of the day, Chaloner called his swindles “funning”. He funned the Mint with counterfeit coins, and the Bank of England with fake paper, both bank notes and drafts. When his counterfeit notes were discovered, he turned informant, not only avoiding prosecution and prison, but being granted £200 in reward. Accused by informants of counterfeiting, Chaloner won the first courtroom skirmish, humiliating Newton. Consequently, Chaloner erroneously considered himself Newton’s equal; and his complex, long-range plans were but moves in a game designed to give him access to the Mint in order to coin for his own profit.

            Before Newton, the posts of warden and master were only sinecures for the favored who then further stocked their own larders at public expense. They were not exceptions. Married to sisters, the master smelter and the assay master were brothers-in-law, living beyond the limits of their official salaries, inferentially guilty of conspiring to pass debased silver into the official coining operation. The vector that impelled Newton’s trajectory was the sale of dies from the Mint to counterfeiters on the outside.
            Whether Newton’s career as a detective and prosecutor is “unknown” is putative. While most readers here probably know of his Three Laws of Motion, his work at the British Royal Mint is less often taught. Biographer David Berlinksi (Newton’s Gift: How Sir Isaac Newton Unlocked the System of the World, New York: The Free Press, 2000) called Newton’s tenure at the mint uninteresting. Numismatists, who study the forms and uses of money, feel differently. 

Levenson acknowledges the works of Sir John Craig. Craig’s book, Newton at the Mint (Cambridge, 1946) is catalogued by the libraries of both the American Numismatic Society and the American Numismatic Association. Levenson also cites two other Craig monographs, "Isaac Newton—Crime Investigator", Nature 182, 149-52; and Isaac Newton and the Counterfeiters, 18 Notes and Records of the Royal Society 2, 136-45 (1963). When I proposed a review of the Levenson book to the Numismatic Bibliomania Society, editor Wayne Homren shot back: “How does it compare to Craig?” Levenson draws on the same sources as Craig: Newton’s papers, the mint archives, court records, a biography of Chaloner, Chaloner’s own petitions and letters. Where numismatist John Craig presented the facts, videographer Thomas Levenson brings them to life.
Merchant Token 1791 Middlesex
1penny; size larger than
US quarter dollar.

            Nonetheless, graphical animation can be dangerous. Of Newton’s meeting in a pub with an informant, Levenson says, “The detective swallowed his irritation.” (P. x.) Did he?  Was that recorded?  “For Newton’s part, this first encounter with Chaloner did not register very deeply.” (P. 157.) The storyteller’s power depends on many such inferences and inventions. The salient question is: Does the poetic license that is extended to creative non-fiction jeopardize the truth? 
            Of course, we have the compiled confessions of the accused and the accusations of informers whom Newton interrogated. Yet, those folios are decidedly incomplete. We know that many were burned. To explain why official records were destroyed, Levenson leaves the main narrative to establish a historical context for the use of torture in interrogation, a subject of some immediacy to us. Newton could not resort to extreme methods, but the actual tactics are lost because the documents were burned according to the reports of Sir Isaac Newton’s secretary.
            Whether William Chaloner was factually guilty may never be known. It is accepted that William Chaloner did not get a fair trial. “Chaloner was sentenced to death, very fairly on his record, unjudicially on the evidence …” (Craig, 1963; P. 143.) Levenson concurs. William Chaloner was accused of crimes committed in London. “And yet Chaloner faced charges brought by a Middlesex grand jury, being heard by a Middlesex trial jury. How could such a court, Chaloner asked, address crimes committed outside its jurisdiction?.” (P. 231.)
            Our modern experience with wrongful convictions throws a harsh light on the testimonies of jailhouse snitches, casting shadows of doubt. Yet, those informants were the only source of Newton’s evidence against Chaloner. Prima facie evidence is easy to accept. Chaloner probably was guilty, but certainly did not get a fair trial by modern standards. Moreover, our sociological context also condemns much else of that time and place. We do not horribly execute counterfeiters. Chaloner was drawn and quartered.

            As a casual read, the book can be enjoyed in a couple of hours. No reference numbers or inline citations encumber the text. The Notes are all in the back with concordance by page number and key words. Some readers will find profitable cause to linger there and reflect.

PREVIOUSLY ON NECESSARY FACTS

Saturday, February 5, 2011

Counterfeiting and the Tragedy of the Commons

It does not take much research to read far too much about the glut of counterfeit numismatic materials manufactured in China and sold on eBay.  Chinese counterfeit factories purchased old U.S. Mint equipment, old dies, and other tools.  Their work destroyed the markets in Seated Liberty coins and Trade Dollars, but any coin, even the most common, is a potential target.  Not surprisingly, some have faked the certifcation holders of PCGS and NGC. At conventions and shows, numismatists display educational exhibits of counterfeit coins in real holders and bogus coins in  bogus holders.  The federal government does nothing. 

On the other hand, ahead of the Super Bowl, enforcement against phony NFL gear is vigorous.
So far this year, Immigration and Customs Enforcement (ICE) and other agencies participating in "Operation Interception" have confiscated 36,273 counterfeit trademarked items nationwide, with more expected through the weekend. The value of the haul thus far: more than $3.56 million.   (Full story from CNN.com for February 5, 2011, is here.)
This is an example of the tragedy of the commons.  The NFL trademarks belong to someone.  Those someones are also wealthy.  So, they get the government to pay attention when they are victimized, and rightfully so.  With collectible numismatic material, no one owns the images and designs.  (One exception is the Sacagawea Dollar, owned by artist Glenna Goodacre, and licensed to the U.S. Mint.)

Of course, counterfeiting an old silver dollar is also a federal offense: money is money; and all federal money is the lawful obligation of the U.S. Treasury, no matter how old it is.  With some exceptions, such as Gold Notes, all U.S. money is legal tender.  But, of course, no one spends rolls of 1872 Seated Dollars or even 1922 Morgans.  So, the actual threat to the govenment is minimal: individual collectors take the losses.  The real threats are from counterfeit paper money; and the Federal Reserve is a private institution.  By comparison, the Bank of England is also like our Fed, nominally private, with a government-appointed board of governors.  Bank of England money carries a copyright notice.  Counterfeiting is a crime, not so much because it wrong to defraud people - though there is that - but mostly because it transgresses the intellectual property of the banks.  Since no banks issue Bust Dollars or Capped Bust Half Dollars, enforcement is lax.

This story from About.Com exposing a Chinese counterfeiting factory dates to April 2, 2008.  The Collectors Universe message board (NASDAQ symbol CLCT) for September 27, 2009, carried a summary (read here) of Dr. Gregory V. DuBay's talk at that summer's ANA convention in Philadelphia, revealing more about the depth and breadth of numismatic counterfeits from China.  His system for classifying Chinese dies was included as an appendix in the first edition of the  Red Book Professional Edition, but was deleted from the second edition.  I spoke on the same subject at the ANA convention in Pittsburgh in 2004.  The information I presented was not new or original with me: I only gathered examples from others... and all too easily... 

This is a known problem.  Nothing is done because no one owns it.