Commems Collection Modern: What If? 1978 Founding Fathers Gold Coins

Before the American Arts Gold Medallions program (see 1980-84 American Arts Gold Medallions), and before the American Gold Eagle ("AGE") program, there was a proposal for a collection of bullion-based gold coins that would honor Thomas Jefferson, Alexander Hamilton, James Madison and Benjamin Franklin.

(I've written about another Gold coin program of the time, check it out here: 1978 Gold Commemorative "Coins" - A Similar But Different Program.)

The bill for the Founding Fathers gold coins was introduced in April 1978 by George Vernon Hansen (R-ID) in the United States ("US") House of Representatives ("House"); the bill was immediately referred to the House Committee on Banking, Finance, and Urban Affairs.

The bill specified an annual production that included a minimum of one million troy ounces (0.900 Fine Gold, 0.100 TBD alloy) evenly divided among the proposed four coins; at least 50% of the gold to be used was to have been mined in the US. The coins represented a group of atypical weights: 1-1/2 ounces, 3/4 ounces, 3/8 ounces and 3/20 ounces. (Whar was wrong with the more traditional 1, 1/2, 1/4 and 1/10 ounce coins?)

The bill's proposed coins were to be referred to as

- Jeffersons in honor of Thomas Jefferson, primary author of the US Declaration of Independence and the third US President (1-1/2 ounce).
- Hamiltons in honor of Alexander Hamilton, Constitutional Convention Delegate and the first Secretary of the US Treasury (3/4 ounce);
- Madisons in honor of James Madison, primary author of the US Bill of Rights and the fifth US President (3/8 ounce);
- Franklins, in honor of Benjamin Franklin, a Founding Father who, among many other roles, served as the US Minister to France and Sweden, the first US Postmaster and a key negotiator of the 1783 Treaty of Paris that formally ended the American Revolution (3/20 ounce);

Each of the coins was to feature its troy-ounce weight designation, but was NOT to carry a denomination - they were definitely to be considered as bullion pieces.

Coin design themes were presented in the proposed legislation rather than specific design details being mandated. The namesake Founding Father of each coin was to guide design choices.

The coins were to be sold via public auction (presumably in bulk quantities), with single coins to be available for purchase via auction as well. The sales price of each of the coins was to be based on the prevailing market price of gold. To add a layer of fiscal protection for the Government, a maximum of 1 million ounces of the coins could be sold for a price lower than 105% of the market prices (no minimum was specified in the bill), but all additional coins would have to be sold at a 105% (or higher) price point.

The bill also would have repealed Section 5 of the Gold Reserve Act of 1934 (31 25 U.S.C. 315b). The Section concerned US Gold coins:

"Sec. 5. No gold shall hereafter be coined, and no gold coin shall hereafter be paid out or delivered by the United States: Provided, however, That coinage may continue to be executed by the mints of the United States for foreign countries in accordance with the Act of January 29, 1874 (U.S.C., title 31, sec. 367). All gold coin of the United States shall be withdrawn from circulation, and, together with all other gold owned by the United States, shall be formed into bars of such weights and degrees of fineness as the Secretary of the Treasury may direct."

Note: The private ownership of gold in the US was allowed beginning December 31, 1974 via legislation (Public Law 93-373) signed by US President Gerald Ford Sections 3 and 4 of the Gold Reserve Act of 1934 were repealed via Public Law 93-110 on September 21, 1973 - signed by US President Richard Nixon. Section 3 gave the US Secretary of the Treasury significant authority over gold ownership and handling in the US; Section 4 enabled the US' seizure of any illegally held gold in the US. The 1978 bill added clarity via the repeal of Section 5t.

The bill did not go beyond its Committee referral, and thus its journey in Congress ended.

IMO, these four gold pieces would have made for an interesting set due to the historical significance of their subjects and their status as the US' first gold bullion pieces (post the Public Law enactment allowing such).


For more of my topics on commemorative coins and medals, including more What If? stories, see: Commems Collection.