Commems Collection Modern: What If? Circulating Liberty Commemorative Coins - Part I

In June 2013, Andy Barr (R-KY), for himself and Dave Loebsack (D-IA), Steve Stivers (R-OH), Mark Meadows (R-NC) and Ted Yoho (R-FL), introduced a coin bill in the House of Representatives ("House") that proposed the creation of a perpetual commemorative coin program involving the dime, quarter dollar and half dollar with circulation and collector coin options included. The bill's Title was "American Liberty Coinage and Deficit Reduction Act of 2013".

The coins were to commemorate and celebrate "American Liberty, "The Union", and the American values and attributes of freedom, independence, civil governance, enlightenment, peace, strength, equality, democracy, and justice."

The proposal was intended to create a coin program that would help reduce the Federal deficit on an ongoing basis through circulating coin seignorage and collector/numismatic coin proceeds.

Upon its introduction, the bill was referred to the House Committee on Financial Services.

An important aspect of the coin bill was its provision that required the Secretary of the Treasury to "carry out a study on the estimated effect" of the new commemorative coins "on the Federal budget deficit over the 10-year period beginning on January 1, 2015." The proposed coins would only be struck/issued if the Study's results indicated that the deficit would be reduced by at least $100 million over a ten-year period beginning on January 1, 2015. If the deficit wouldn't be reduced by $100 million, the coin program would not move forward.

The bill included an extensive "Findings" section of data in support of the proposed new coins:

"The Congress finds as follows:

"(1) The 50 State Quarters Program showed that a circulating commemorative coinage program that incorporates recurring design change dramatically increases seigniorage--the profit realized by the Mint from the amount that the face value of coins produced by the Mint exceeds the costs of production and distribution.

"(2) Pursuant to the President's 1967 Commission on Budget Concepts, seigniorage proceeds are used to reduce the amount the government would otherwise borrow from the public to finance the budget deficit. Thus, programs that increase seigniorage provide a means to reduce the budget deficit without increasing taxes or cutting spending.

"(3) During the 10 years of the 50 State Quarters Program, the cumulative production of quarter dollars exceeded 34,000,000,000 [34 billion], representing a 136 percent increase in quarter dollar production as compared to the cumulative 10-year period immediately preceding the program. This enhanced production level of quarter dollars resulted in increased seigniorage revenues of approximately $3,000,000,000 [$3 billion] and, therefore, an equal reduction in the budget deficit.

"(4) The Mint has estimated that 147,000,000 Americans became collectors of 50 State quarters, demonstrating that the demand for circulating coins--for purposes beyond the needs of commerce--increases significantly when frequent and systematic design changes are made through a multiyear commemorative design series.

"(5) Similar to the collector interest and resulting seigniorage generated by the 50 State Quarters Program, the Westward Journey Nickel Program, which issued a series of 5-cent coins between 2004 and 2006 bearing new obverse and reverse designs commemorating the 200th anniversary of the Lewis and Clark Expedition and honoring President Thomas Jefferson, saw average annual nickel production increase by 593,200,000 units as compared to nickel production during the 2 years immediately preceding the program and the 2 years immediately following it.

"(6) From the early 1790s through the early to mid 20th century, allegorical depictions of "Liberty" dominated the designs of circulating United States coins. Coinage from this time period served as a constant reminder to Americans and the world of a defining and distinctive value of American life and culture--Liberty. These coins also provided some of the most inspiring, uplifting, and beautiful coin designs ever created. In numismatics, "Liberty" themed coins are among the most sought after collectibles.

"(7) Given the potential that a new series of "Liberty" coins would be highly collectible, if produced, such a program would likely provide the means through which to significantly increase seigniorage thereby reducing budget deficits.

"(8) A new "Liberty" themed coinage series would allow the Nation to continue to honor the past presidents currently depicted on United States coins by providing for the continued and concurrent production and distribution of such coins annually along with the new "Liberty" coins.

"(9) A new "Liberty" themed coinage series would revitalize the design of United States coinage and return circulating coinage to its position as not only a necessary means of exchange in commerce but also as an object of aesthetic beauty and symbol of core American values.

"(10) In order to increase the seigniorage produced by the United States Mint thereby reducing deficits to be financed by the United States it is appropriate to introduce a new series of circulating commemorative "Liberty" themed coins that would alternate annually between the dime and quarter dollar as 1-year issues. Additionally, introduction of a new "Liberty" themed half dollar produced for noncirculating numismatic purposes would further enhance seigniorage.

"(11) Beginning in 2015, the Act provides for the introduction of a 1-year circulating commemorative "Liberty" themed dime that would be produced and distributed concurrently with the existing dime depicting the image of President Franklin D. Roosevelt. After 2015, the image of President Roosevelt would continue to be utilized on the standard issue circulating dime. Subsequently, in 2016, the Act provides for the introduction of a 1-year circulating commemorative "Liberty" themed quarter dollar that would be produced and distributed concurrently with the existing quarter dollar depicting the image of President George Washington. The Washington design would continue to be used in future years. In 2017, the process would begin again with the introduction of a new 1-year "Liberty" themed dime, bearing a new "Liberty" design that would be co-issued alongside the regular issue Roosevelt Dime. In 2018, a new 1-year "Liberty" themed quarter would be co-issued and the process would continue on a perpetual basis into future years.

"(12) Sequencing a new "Liberty" design each year is an important aspect of the program designed to continually renew collector interest and, therefore, promote demand for the coins in a manner to maximize seigniorage realized by the United States Mint.

"(13) A "Liberty" themed program would also include a new "Liberty" half dollar bearing a design to be utilized for a 10-year term, to be issued as an ongoing annual noncirculating numismatic collector's series. The "Liberty" half dollar would be issued along with the noncirculating Kennedy half dollar. At the end of each 10-year term, a new "Liberty" design would be implemented with designs continuing thereafter in a recurring 10-year cycle.

"(14) Providing collectors with a new "Liberty" half dollar series will provide an increase in the Mint's numismatic profits and bolster the objectives of the program to annually reduce budget deficits.

"(15) A series of circulating commemorative "Liberty" themed coins will provide a new platform for the advancement of American medallic art through a medium where Americans commonly encounter public art—the Nation's pocket change."

Note: Findings #11 and #13 provide the basics of the proposed coin program.


See Part II for the rest of the story. (Say it like the late, great Paul Harvey for the best effect!)


For other of my posts about commemorative coins and medals, including other Modern Commemorative coin stories, see: Commems Collection