The State of New York Stock Transfer Tax stamp
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Different Styles of Stamped and Punched cancellations
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New watermarked paper was used beginning in 1916 with the repeating phrase "State of New York Stock Transfer Tax Stamp" which can be either forwards, reverse, or inverted.

The watermark begins at a different spot on each line, but the entire pattern repeats every five lines.
digitally enhanced photo of watermark: "State of New York Stock Transfer Tax Stamp"  

The entire length of the full phrase is about 19.5 cm (or 7.7 inches) in a font which is about 6mm (or .25 inch) tall.
another enhanced photo of the NYSTT watermark: "State of New York Stock Transfer Tax Stamp"  

1916 - new design - The vertical hatching above the value numeral panels is incomplete and also the vertical ends of the rectangle panels below "CENTS" have thinner ends for both of the 1916 series - overprint of numeral of value in checkered pattern of 5 - (perf. 12x11)
olive  olive brown  brown  yellow orange  olive green  deep green  black  orange yellow  olive yellow  close-up of the original 1916 design of the "1" Dollar - wide top serif and shade lines that don't fade at the base  orange red  rose carmine  pale red orange  light tan  deep red with green overprint close-up of the original 1916 design of the "2" Dollar - shallow tip in elbow corner and base top shade line not interrupted by curvegrey orange brown  deep violet brown  greyish purple  blue  green