6c Documentary Proprietary revenue stamp approved die proof

In 1862, Congress instituted, among other taxes, a tax on proprietary items such as patent medicines and matches. It directed the issuance of revenue stamps in 1-cent, 2-cent, 3-cent, 4-cent, 5-cent, and 10-cent denominations to pay the proprietary taxes. However, the tax on patent medicines provided for a six-cent tax on patent medicines with a retail price of $1.01 to $1.50. In addition, the tax on a package of 501-600 matches was also six cents Although a 6-cent Inland Exchange revenue stamp had been issued, this documentary stamp could not be used to pay the tax on proprietary items.

The manufacturers of several proprietary items paid to have their own 6-cent private die proprietary stamps prepared.

By letter dated March 10, 1871, Charles Osgood & Co. wrote to Joseph Carpenter & Co., the company then holding the printing contract for revenue stamps, to request that a 6-cent proprietary stamp be issued. Osgood manufactured a patent medicine known as India Cholagogue, which sold for $1.50, and was unwilling to incur the expense of preparing his own private die stamp. Carpenter quickly prepared a model of the 6-cent proprietary stamp and sent it to Commissioner of Internal Revenue Alfred Pleasonton for approval. As can be seen on the model, Commissioner Pleasonton approved the design on March 21, 1871, just eleven days after the date of Osgood's letter. This is the only known proof of the 6c proprietary.

While Carpenter suggested that the stamp be issued in orange, Deputy Commissioner of Internal Revenue J. W. Douglas requested that the stamps be issued in black. Carpenter's recommendation prevailed, and 89,348 6-cent proprietary stamps were printed in orange and were issued on April 13, 1871. Just four and one-half months later, however, the 6-cent green and black 1871 issue proprietary stamp replaced the 6-cent orange proprietary stamp.

Although a number of first issue revenue stamps had smaller print runs, the 6-cent proprietary is generally considered the rarest of the first issue perforated stamps. The reason for its scarcity is its short period of use and the fact that proprietary stamps generally have a much lower survival rate than documentary stamps. While financial instruments tend to be retained for long periods, users often discard an empty patent medicine bottle or a matchbox quickly.

References:

Toppan, G.L., H.E. Deats and A. Holland. 1899. An Historical Reference List of the Revenue Stamps of the United States. Boston: Boston Philatelic Society. Reprinted as The Boston Revenue Book. Lawrence, MA: Quarterman Publications, 1979.

West, Christopher (Elliot Perry), The Revenue Stamps of the United States, 1979: Castenholz and Sons, Pacific Palisades, CA.