PANAMA: CANAL ZONE: U.S. Concession, 10 cents, ND (1919), KM-Tn3, Palo Seco Leprosarium issue; PALO SECO / CANAL ZONE // REDEEMABLE FOR / TEN CENTS / IN MERCHANDISE, PCGS graded XF40, ex Dr. Robert A. Rosenfeld Collection. In 1907, the Palo Seco Leper Colony officially opened on the Canal Zone's rocky Pacific shore. In 1919, the administrators set up a system to compensate people according to their "efficiency" or "physical" ratings based on their disabilities. Levels A, B, C, and D earned 10, 8, 6, and 4 cents per hour, respectively, money the residents could use to buy small items for themselves. The money the residents were issued had limitations as well. Starting in 1919, Palo Seco had its own brass and aluminum coins, which are coveted among collectors today. These reinforced the administrators' patronizing attitude: unlike a system of ledgers, the simulated currency was supposed to make Palo Seco's residents feel more independent. The special tokens also quelled the public's fears about money being handled by people with Hansen's disease, and they were supposed to prevent the residents from buying rum or using their small savings to escape, either temporarily or permanently. The tokens, struck in 1919, served until 1952 and were largely destroyed in 1955 after demonetization.

Estimate: USD 400 - 500