National Post from Toronto, Ontario, Canada • 23

he Financial Post' Vol. LIV Publication Office Toronto, February 13, 1960 No. 7 Hoiv Just Plain oney Can ore oney Al AT Make 'Mr-Si. a- WW'" cw. I -s' Is i SADLER CAR workshop, St.

Catharines, Ont. Ca Auto nadia aker in coins, and an ad in the numismatic journals, puts them in business. Essential equipment is ability to judge the "condition" of coins and familiarity with market prices. A favorite gimmick of collectors is to put away a bag of uncirculated coins the year they are issued, then sell them to a dealer a few years later at a profit. The coins are bought from a branch of a chartered bank in "mint-sealed" bags at face value.

Within two years, according to James, they are likely to be worth a minimum of 15 over face value. Small cents of 1957 in mint-sealed bags are now selling at three times face value, and dealers are paying 60 over face value for some uncirculated 1958 coins already. This market has to be watched, of course, just like the securities market. Canadian silver dollars, which had been rising rapidly until recenth-, have been slow over the past three months owing to profit-taking. Mint-sealed bags are usually sold to growing earlier, and is growing at about the same rate.

Interest in collecting Canadian coins is growing even faster, since many U. S. collectors are switching to "Canada's" as a specialty. James offers several reasons for the upsurge in coin collecting. All hobbies are gaining ground with the increase in leisure time.

Coin collecting has the same appeal as stamp collecting, but is a little newer. The difficulties of handling and displaying a coin collection (both sides of the coin must be displayed, and weight is a problem) have been overcome by the introduction of polyethylene coin envelopes, display cases, and other accessories. A 50c folder is all a youngster needs to begin collecting coins. Since people are handling coins all the time, once they begin to take an interest in date, condition and rarity, it's easy to build a collection. Coin clubs have spread interest rapidly, since they offer social contacts and an Market So in vadrnff JjiZZ Sadler of St.

Catliarincs, makes custom racing cars and plans to export to the U. S. in a big way By LARRY PERKS ST. CATHARINES, Ont. Sell Canadian cars to the U.

Bill Sadler, St. Catharines, racing car driver and sole proprietor of Sadler ar says it's possible and he intends to prove it on a grand scale. In a small, compact plant alongside the Queen Elizabeth Way just outside St. Catharines, he's forging ahead with his plan to build custom cars at a price competitive with better-known racing cars from Europe, and the small go-kart racing machines, rapidly gaining popu-. 1 a i in Mr.

invested $500 in coins in 195 1: He bought (in mint-sealed bags) Five bags of pennies (10,000) 100.00 Two bags of nickels (2,000) 100.00 One bag of dimes (1,000) 100.00 One bag of quarters (400) 100.00 One bag of half-dollars (100) 50.00 One bag of silver dollars (50) 50.00 Total face value of 1954 coins 500.00 Cost of investment at 5 per year 125.00 Storage and depreciation nil Cost 625.00 In 1959 he sold the coins to a dealer for 3 catalogue value: Uncirculated 1954 pennies 30c each $3,000.00 nickels 40c each 800.00 dimes 60c each 600.00 quarters $1.35 each 540.00 half-dollars $2 each 200.00 silver dollars $4.50 each 450.00 Total catalogue value in 1959 $5,590.00 Received from dealer 1,863.32 Less cost 625.00 Profit $1,238.32 The catch: North America. Success will mean another Sadler's big ambition: Manufacturing custom sports cars on a pro-d i line basis. I 5 44 SADLER By J. K. EDMONDS Six years ago, Theater Poster Services a Winnipeg advertising firm, was looking for a new way to help its clients lure more children into Saturday movies.

On the basis of a small item in a trade magazine, they decided to try foreign coins. Each child got a map on his first visit, and a foreign coin on each subsequent visit to the movies, with a prize for collecting all 15 coins offered. As a result, the firm now has a second business (International Coin Co.) with a volume more than equal to its original lines, and wTith customers all over the world. Through a subsidiary (Canadian Numismatic Publishing Institute) it has published a Guide Book of Canadian Coins, Currency and Tokens which has sold more than 55,000 copies since April, 1959, and is in use in the British Museum, the Library of Congress, the Royal Danish Museum, and' other major reference institutions. Canadian firms in Winnipeg and Toronto, are now making, for International Coin, half a dozen items of coin-collectors' supplies formerly imported from the U.

S. "We didn't have any idea what we were getting into," recalls Somer James, vice president of Theater Poster Services and president of International Coin. "All we wanted was some low-denomination foreign coins to hand out to the kids. But the promotion caught on. "Odeon used it in 45 theaters, and a number of independents used it.

We found we needed more and more coins. "We had to start ordering bulk quantities from the larger coin dealers in the U. S. "Then we got to the point where they couldn't supply us, but instead we were supplying them with Canadian coins. "To get our supplies of foreign coins, we took to dealing directly with foreign mints in quantities of coins at a time, and the next thing we knew, we were coin wholesalers." Getting coins from foreign mints required salesmanship in some cases.

The large Irish penny has a metallic value greater than the face value of the coin. The Irish government lost money every time it sold pennies abroad. Theater Poster had to enlist the aid of the Irish Tourist Board to persuade the government to release pennies on the ground that their wide-spread circulation in Canada would promote interest in Ireland. Another hazard was encountered in Jamaica, which coined only enough currency for internal use and had a regulation against export of coins. This was waived by the Colonial Currency Board in London, which at that time controlled circulation of Jamaican coins.

By 1956, the coin business had grown to the point where International Coin Co. had to be set up to handle it. A brisk market had developed for coin collectors' supplies (folders, coin envelopes, coin bags, acetate paper-money holders). International Coin imported these to distribute to other dealers, then began designing new, items to be made in Canada. One item they felt the trade needed very badly was a new coin catalogue suitable for use by the novice.

Existing catalogues had limited distribution and were soberly wrritten for the expert collector. With the aid of H. C. Taylor, a coin collector of over 25 years' experience, International Coin prepared a 152-page illustrated Coin Guide. More than a catalogue, the book contains a brief history of Canadian currency, a "how-to-do-it" section for the new collector, and an illustrated guide to Canadian paper money as well as tokens and coins.

The book was distributed through news dealers on a fully-returnable basis, and was handled by other coin dealers as well. To avoid giving International Coin any advantage in handling coin sales generated by the book, the subsidiary "Canadian Numismatic Publishing Institute" was created to publish it. Collectors from California to Maine, as well as Canadians, bought the book; 15,000 of the 55,000 copies distributed so far have gone to the U. S. "Without knowing it, we happened into the coin business just when it was undergoing a big expansion," James explains.

"For years coin collecting had been an unusual hobby it's rare to find a collector with the long experience of Mr. Taylor. "Now it's a very big thing. Membership in the Canadian Numismatic society is growing at the rate of 20 per year and is now over 2,000." There are about 40 coin clubs in Canada. In the U.

coin collecting started Mr. had to do this in 1954. If every reader of FP tried to do it now, the mint would respond by striking more coins, and dealers in 1965 would be less eager to buy five-year-old mint-sealed bags of coins. But dealers point out that interest in collecting Canadian coins is still growing rapidly, especially in the U. suggesting a continued bull market in uncirculated Canadian coins.

And of course, they add, you can always spend them. sells for $3,750, and Italy's Stanguilini for $4,250. Total weight will be 792 slightly lighter than English and Italian cars of similar design. "We'll build batches according to sales," Sadler told TP. "I'm sure there'll be about 300 of this type in use by next year, and I want a share of the market." He also has plans for an unlimited class racing model based on the general concept of Formula Junior but with Chevrolet V8 engine and a potential of 200 mph.

Negotiations are under way with a group of businessmen interested in forming a marketing group with exclusive rights to market all items produced on a production basis by the Sadler Car Co. Sadler is now building his Mark IV, a custom car for Dave Greenblatt, Montreal businessman. It will be a more economical version of Mark III, and will have a solid axle instead of rear suspension. Components will cost $3,500 including engine, and the model will sell for $6,000. Although this is a special order, it is to Sadler's design and can be made for other customers.

Mark also is just emerging. Sadler has completed preliminary negotiations with a Miami man for the racing car, to be lighter, more powerful and 4 in. lower than the Mark III. "This should be the ultimate in road-racing machinery," Sadler says. The Mark is expected to cost $15,000.

It has taken Sadler some time to get going. To sustain the firm in the early period, he did custom work such as chassis construction for self-builders, and specialized repairs and conversions of racing cars. The go-kart his is called the Sadler Sportskart is another business-booster. "Sales in the U. S.

have reached fabulous proportions, and some manufacturers are turning out 1,000 a month," said Sadler. "Now organized go-karting is being promoted in Canada, and is catching on fast." He's now in the midst of a production run of 25 he has already sold nine and a marketing scheme for Sadler Sports-k a is being negotiated in Toronto. The small bodyless cars have room for one person, and most are by 4 -hp motors. Sadler is producing a range from 2.2 hp to 15 hp (two engines), and prices start at $185.50 for the 2.2-hp model, going up to $350 for 15 hp. Present dealer margin is 159p, but this probably will be increased.

Sadler expects to produce the sportskart in batches of 50, and predicts he will have a special department for them by spring, when official racing starts. With $5,000 worth of equipment already installed in his one-story plant, Sadler thinks he will have to expand upwards, putting offices and storeroom on the second floor and using existing space for showroom and workshop. In fact, he's already watching for a new location. a special aluminum body to the Mark II (paid for in part with the .75 prize money from Brighton), plus new brakes and carburetors. Two weeks later, Mark II won a small race at Nassau (Bahamas) Speed Week.

In winter 1957 58, Sadler completely rebuilt the Mark II and later won the Watkins Glen Classic, outstripping Italian models. Earl Nisonger, president of a U. S. automotive import business, commissioned Sadler to build a completely new car for him, for professional racing. Sadler's Mark III, smaller and lighter and with new-style chassis and more powerful engine, was built in seven weeks.

Cost: More than $10,000. While this car was being built, Mark II was sold to a friend of Nisonger for $5,000. It had cost $2,000 to build, plus engine. Sadler toured as mechanic with Marks II and III, and returned to Canada last spring to form his company and get to work on his production car. A road-equipped sports car using Chevrolet components, it has a unitized steel chassis.

Prototype of the body will be aluminum, although the finished product will be fibreglass. It will sell for about $4,000. Several sports car dealers in Canada and the V. S. have asked to sell it.

A Toronto dealer expects several businessmen to be interested in buying, and a Spokane, dealer has asked for the West Coast franchise. "The car will fill the gap between the popular English sports cars such as Jaguar and Austin-Healey and the Chevrolet Corvette," says Sadler. Suspension, for good road-holding, is a direct result of Sadler's racing experience. A low, streamlined model, it will be about 6 in. narrower than the Corvette.

The body will feature clean, aerodynamic lines, and the car will be suitable for normal road use and sports car racing. "I think I could sell 10 a week once efficient production has been achieved," Sadler says. This project has now reached the chassis completion stage, but when finances ran low Sadler began work on his Sadler Sprite Single Seater built to Formula Junior specifications set by the SCCA for a new class of racing. Based on Austin Healey Sprite components (with the Austin company's full approval and encouragement), the car uses everything Sprite, with modifications, except for Sadler's own narrow chassis and aluminum body, with low central driving position and wraparound windscreen. Wheels are exposed for minimum drag.

The prototype has been completed, and already three orders have been received following initial promotion. Six will be built by April and more on a limited production basis until methods and profit margin are established. The car sells for $2,995 (components cost $1,400) on a factory-to-consumer scheme. The English Elva, of this type, When he formed his company nine months ago, he had one employee. Now he has four.

By midsummer he expects 12 on the payroll, and will start a plant expansion program. Then it depends on demand for his cars, but this doesn't worry Sadler. Right now he has $15,000 worth of business to be completed by April. Crew-cut, 28-year-old William G. Sadler built his first racing car, the Sadler Special, in 1954 when working as a cuided missile technician with Canadian Westinghouse.

He bought a Javelin car for $350. used the mechanical components and built his own chassis and aluminum racing-style body. "It cost less than $1,000," Sadler told FP. "It was my own design and allowed rne to get my feet wet. in car-building, although I had fooled around with jalopies before then." He fitted a Triumph TR2 engine to the same car.

That, plus his own fuel injection system, was enough to win several races. In late 1956 he installed a Chevrolet V8 engine and won the first of the Watkins Glen, N.Y., classic trophy races against stiff competition. In the 1956-57 winter, he designed his Mark II around the Chevrolet engine. Completely built by him, it included independent rear suspension and rear-mounted pre selective gearbox. With the fibreglass body from the Mark Sadler took the Mark II to the U.

K. for six months in 1957. In the U. he worked (for 10 weekly plus use of facilities for his own work) for John Tojeiro, racing car builder and original designer of the Ace-Bristol. He raced his Mark II on many circuits and won fastest time (25.44 sec.) for the standing kilometre in the Brighton Speed Trials.

He returned home and fitted easy introduction to the refinements of collecting. The popularity of Canadian coins with U. S. collectors is partly the result of the fact that denominations are the same (making it easy for the novice) and that Canadian coins are in circulation in the border states. But more important, Canadian coins have a world-wide reputation for beauty and fine execution, and U.

S. collectors like the royal symbols on the coins. Experts as well as novices have taken up "Canadians" as a specialty, James says. As soon as interest in Canadian coins began to grow, U. S.

collectors began investing in scarce items like the 50c piece of 1932. Only 19,000 of these were minted, and a little arithmetic with the growth of population in North America and the proportion of collectors in the population suggested that these would soon become very valuable. (Current catalogue price: $3 each if in "good" condition; $75 if in "extra fine" condition.) As U. S. collectors bid up the prices of Canadian coins, more Canadians became interested.

"Every few weeks there's a story in the paper about someone getting a big price for a Canadian coin," says James. "That always starts a flurry of interest in coin collecting here." Besides the ordinary run of novice and expert collectors, there are also "vest-pocket dealers" usually men who travel around a good deal, and can buy coins in out of the way places, then bring them to a major dealer for sale. "Retired railway-men often become vest-pocket coin dealers," James says. "It keeps them busy, gives them a reason for traveling, and occasionally makes them some money." An investment of from $3,000 to $8,000 dealers at a third to a half of catalogue value, James says. The coins must be fed into the market slowly, over two or three years, and part of a dealer's skill comes in judging how many of a given denomination the market will be able to absorb within a period of time.

But even at that, a coin collector who put away a bag of pennies (2,000 to a bag) to celebrate his son's birth in 1939 was able to get $3,000 from a dealer for them last year enough to pay the boy's university expenses. What does the mint think of all this? According to James, the collectors and dealers are probably a nuisance to the mint, but are treated with great courtesy and co-operation. The mint does make a small profit on the coins it issues and of course the tribute paid by collectors to the Canadian standard of coinage is a source of pride. Like the Post Office, the mint does cater to collectors by producing "mint sets" of each year's coinage. These are coins struck by the usual machinery, but then placed by hand in cardboard holders, not subjected to the abrasion that occurs in bags.

Face value of the coins is The mint charged $3 for this year's mint sets, for which dealers are now offering $4.25. "Proof which are occasionally produced, are made from specially polished dies. According to the Coin Guide, the last year in which proof sets were offered to the public was 1937 (current catalogue value, In the works now, at International Coin, is another edition of the Coin Guide, and two new publications, one of them a special guide to Canadian silver dollars. "With everyone from bankers to school-boys setting up coin collections, says James, "we figure we're, in the coin business to stay.".