Cancelled and Redeemed Postal Cards

Cards and stationery exhibiting "cancelled" markings are very interesting and intriguing items. The markings are popular with, but misunderstood by many collectors. We see items with these markings described in auctions as "cto's", "specimens", and even "precancels". In actuality, they are redeemed cards, cancelled by officials to prevent their subsequent postal use. They have a very important history, especially for postal cards.

Since the earliest days of postal cards thru the present day, firms purchase individual or sheets of cards for imprinting with business forms of all sorts. Often, cards are spoiled thru printing errors, or the imprinted matter becomes obsolete for one reason or another. Until July of 1902, the holder's of spoiled but unused cards could not get even partial credit from the Post Office Department for this stock. Instead of redemption, the POD authorized users to cover undesirable imprinted information on these cards with either an enamel or bronze coating, thereby enabling their re-use. Thrifty postal card users promptly took advantage of this POD regulation and soon, in the spirit of private enterprise, businesses sprang up which specialized in providing coating services to the holders of spoiled cards. Furthermore, some firms began to offer to purchase large quantities of cards at deep discount rates, coat them, and then offer the product at a discount still below face value. Coated cards used during this period are scarce. They can be found with Gold, Silver, Bronze, and Clay coatings.

Coated cards were big business in cities like Chicago at this time. The POD generally frowns upon any stamped securities being sold at a discount, and this no doubt contributed to the change in regulations which allowed cards to be redeemed for credit. The discovery and subsequent elimination of the counterfeiting operation of Louis Smith in connection with the coating of postal cards, is perhaps ultimately responsible for amended POD regulations invalidating this process. At the time, it was said that millions of postal cards were counterfeited by Smith in Chicago during the years of his operation, but surviving examples are all extremely rare.

Cards exhibiting "Cancelled", or "Redeemed" markings did not appear with any frequency until the demise of the penny post card rate. This was the first time where large quantities of preprinted cards suddenly became obsolete, with many more to follow over the years. There are several styles of the "Cancelled" marking, and the marking has even been applied as a machine "cancellation".

To this day, postal cards may still be redeemed for credit against stamp and stationery purchases.