Commems Collection Classic: Quick Bits 100 - Treasury Department Objections

In many of my What If? posts, I referenced the Treasury Department's objections to the proposed commemorative coin being discussed, but limited my Treasury comments so as not to take away from the focus on the proposed coin. For this 100th edition of Quick Bits, I thought I'd present a more complete look at the Treasury's position via a letter prepared by Gaspard D'Andelot Belin, Treasury General Counsel, in response to a proposed 1963 commemorative half dollar for the 100th anniversary of Lincoln's Gettysburg Address (HR 1611). (You can read about the coin proposal here: 1963 Gettysburg Address Half Dollar.)

In my previous Quick Bits post (#99), I discussed how the Treasury Department's objections dated back to at least 1925 and coin bills presented to President Calvin Coolidge. (See it here: Quick Bits #99 - President Coolidge And Commemorative Coins.)

Here, I present the Department's main points of objection as presented at a House Committee Hearing in May 1963:

The Treasury Department has consistently opposed legislation authorizing the minting of commemorative coins. The opposition of the Department stems mainly from the fact that commemorative coins conflict with the basic purpose for which the coinage system was established, that Is, to serve as a medium of exchange. Past experience has shown that the issuance of special coins introduces confusion into our coinage system. Commemorative coins are seldom absorbed into general circulation, and they have often been refused in trade because of the general public's unfamiliarity with them.

Aside from the undesirability of diverting coinage from Its original purpose, the minting of commemorative coins imposes an unnecessary and wasteful burden upon the mints. Prior experience has demonstrated that the enactment of legislation providing for the coinage of one commemorative coin results in the opening of a Pandora's box for other special issues. As an example, during the period of 1934 to 1936, 26 new half-dollar coins were authorized. Experience has also shown that a great many commemorative coins have not been as readily salable as their sponsors had hoped, and large numbers of special coins have been returned to the mint to be melted. Special commemorative coins disrupt the regular operations of the mint. All departments are adversely affected from the engraving department involved in the intricate artwork and cutting of master and working dies, to the delivery department involved in the recording, bagging, and shipping of the coins.

Another undesirable effect that results from legislation authorizing commemorative coins is the extent to which the coins are exploited for private gain. Special coins in the past have usually been sold by interested organizations through the use of agents or dealers, with the greater percentage of the profits inuring to the salesmen rather than to the organization. Granting that individuals may pay any margin they desire above the face value of the coins, it would appear that the intent of Congress In authorizing such coins was for the coins to be sold at a reasonable price with the profit being applied toward the cost of the memorial or celebration being commemorated.

Mindful of the dangers and confusion which would arise from a multiplicity of designs of coins, the Congress in 1890 amended section 3510 of the Revised Statutes to limit the power of the Director of the Mint to cause new designs of coins. The pertinent portion of this section provides as follows :

"But no changes in the design or die of coins shall be, made oftener than once in twenty-five years from and Including the year of the first adoption of the design, model, die, or hub for the same coin."

A strict adherence to this general policy previously enunciated by Congress would prevent the many abuses described herein which result from the Issuance of commemorative coins.

In view of the foregoing reasons, the Department is opposed to the enactment of H.R. 1611.

Though these views were expressed in 1963, they are essentially the same objections the Treasury raised for roughly 40 years prior - mostly to no avail. Things are very different in the modern era!


For other of my posts about commemorative coins and medals, including other Quick Bits stories, see: Commems Collection.