She had lived in Newtown, Wellington, for many years, so decided to rebind the book and send it back to New Zealand.
In a letter to the library, Schmelzer wrote the book was of "no great monetary value" and was partially out of its cover so was "destined for the recycling bin".
But she believed the library might appreciate the book's return for "historic/sentimental reasons".
Thomas said it wasn't clear when the book had been withdrawn from the library, so couldn't say how long it had been overdue for - but the "penny a day" overdue fees were being waived.
If the book went missing in 1910, based on today's daily overdue fees of 80 cents, the fee in 2020 would be around $32,000.
"Particularly for a public library that has such a long history, it's always fascinating to get this kind of material come back to us," Thomas said.
"It tells us some things about the history of our own library system that actually most of us don't know anymore."
Stamps and slips inside the book outline the old overdue fees from 1902.
"A fine will be levied of one penny per day for the first week, and twopence per day thereafter," the slip states.
"It's just a lovely memory of our history and heritage that we had in our libraries at the time," Thomas said.
"It's actually been just a really nice thing to happen during the middle of everything that's happening with Covid, and yeah, I think we all kind of appreciate the thought and the lightness that's come with that sentiment."
The book will be left at the Newtown library branch for a week for people to look at, then it will be assessed to see whether it should be added to the rare book collection.
There was also a chance the book could be added to the general distribution list again so library members could once again borrow it.