Commems Collection Modern: 1983-84 Los Angeles Olympics - The House Hearing - Part D

Sit back in a comfy chair, lots and lots of interesting (IMO) testimony here!


The fourth session of the Hearing of the Subcommittee on Consumer Affairs and Coinage (under the House Committee on Banking, Finance, and Urban Affairs), regarding the Los Angeles Olympic coin proposals, focused on testimony from the numismatic community.

As would be expected, Chairman Annunzio opened the Hearing session defending his position and his coin bill, while casting aspersions on the bill of Representative St Germain. I include one statement by Annunzio here, as it addresses the humorous exchange of the previous Hearing session:

"Finally, let me address a concern that bothers Mr. St Germain with regard to criminals getting involved in the coin program. Mr. St Germain feels that my legislation could result in criminals of all types buying the coins and making questionable profits on the coins.

"Certainly, that is not the intention of my legislation, just as I know that while the same scenario would apply to the St Germain bill, it is not his intention that his bill become a criminal vehicle.

"I would urge Mr. St Germain, if he has such strong anti-crime feelings, to amend his bill as I am willing to amend my bill, to make it clear that no company or individual who has been convicted of a crime, or is subject to an order prohibiting it from violating Federal law, can be involved directly or indirectly in the resale of
the coins.

"I have no problem with such an amendment being included in my bill, and the inclusion of an amendment in both of the bills would make it clear that the authors of the legislation are not soft on crime and criminals."

St. Germain did not respond to Annunzio's 'offer', offering, instead, a supportive statement regarding the numismatic community:

"The coin dealers and collectors of America are, indeed, a very important element to success of any coin program. Certainly this is true of any Olympic coin program that may be finally authorized by this Congress.

"The numismatic community, I feel sure, would agree that a successful Olympic coin program depends on a variety of markets, domestic and foreign, which stretch well beyond normal distribution channels employed by the U.S. Mint.

"Norman Stack of Stacks of New York - which I understand is a widely respected numismatic firm - wrote me a few days ago:

"'Based on my 36-year association with this firm, I can state conclusively that in my opinion, a Government.run marketing program simply will not reach beyond collectors in the marketplace and more significantly,will not result in sufficient,broadly based revenues to meet tIe stated need of the Olympic Committee.'"

Following his opening comments, St Germain excused himself from the coin Hearing to meet his obligations to chair a meeting to discuss/markup a housing bill - the meeting was being held at the same time as the coin Hearing and required St Germain's attendance.

And with that, the day's witnesses:

First up, Mary Brooks, the Former Director of the US Mint:

"I appear here today as a former mint Director who has had some experience with these massive coinage programs. We issued the Eisenhower dollar and the change in the coinage that was called the Bicentennial coinage. And I also come as an indignant American citizen."

[...]

"This consortium, made up of Lazard Freres and Occidental Petroleum plus the two Olympic committees, is probably the most high-powered group ever unleashed upon Congress.

"They seem to think the U.S. Mint is a gigantic money machine or goose that lays the golden eggs by the millions and it is the most ambitious program in the history of the modern world.

"We all know there are many ways that legislature is influenced in Washington and I quote you, Congressman Annunzio, you put it beautifully.

'Could there be secret deals, under-the-table payments, special contracts, the hiring of favorite law firms, or even out-and-out bribes?'

"The spectacle of the greatest Nation in the world with the strongest currency in the world allowing its money to be consigned to a-private group for sale and profit is outrageous."

Aspersions were cast with a wide net!

Brooks continued,

"Having attended a number of world mint meetings, I am very proud of the esteem the U.S. Mint holds throughout the world internationally.

Long after the 1984 Olympics fade into history, I hope we will still have a worldwide respect for the U.S. dollar. We should maintain the integrity and control of our own national coinage."

It was quite clear from her testimony, that Ms. Brooks was not a supporter of St Germain's approach to an Olympic coin program, and believed in the Mint'a ability to deliver on Annuzio's approach.

A panel of hobby leaders was then called to testify: Neil Berman, Q. David Bowers, Adna Wilde, Jr. , Margo Russell and Chester Krause, plus several invited collectors, comprised the panel.

Neil Berman, First Federal Coin Corp., was the first to speak.

"First Federal Coin Corp. supports the position that the U.S. Treasury should manufacture one 90-percent silver coin, the same weight and size of the Morgan-type silver dollar. We believe one, or perhaps two coins, if compromise is necessary, is all that should be manufactured.

"We believe that the basic purposes of the Olympic coins are to commemorate the Olympic games and raise money for the Olympic committee. These purposes can be fulfilled by producing one or two silver coins, and selling either business strikes and/or proofs."

"We support the view that these coins should be sold by the U.S. Treasury directly to the public. We believe, based on the previous promotions of Olympic coins of other nations, that a private marketing plan would tend to lessen the importance of the coins and add unnecessarily to their cost."

Q.David Bowers, vice president, American Numismatic Association (" ANA"), was the next to offer testimony. He clearly came at the issue from the collector's perspective:

"I feel that the [Representative Annunzio's silver and gold coin bill] is the best compromise that I have seen, and I have no basic problems with it. I think it is an excellent bill and is quite consonant with the ANA's position."

[...]

"Coin collectors aspire to own a complete set of everything. Everybody will want to have a complete set. If you price these coins at $7,000, $8,000, $9,000 a set, you are going to alienate a large portion of the coin collecting population, which amounts to 8 million to 10 million people who feel that here is another program for the elite, for possibly the people associated with these oil companies, and so forth, who can spend $8,000 from their personal checkbook
that the average collector cannot."

Bowers was followed by Adna Wilde, Jr., president of the American Numismatic Association. (Wilde spoke as a representative of the ANA, not as an individual.)

"The official position of the American Numismatic Association, the Board of Governors, meeting February 18, 1982, passed the following resolution:

'Resolve that the members of the American Numismatic Association recommend to the Members of the U.S. Congress that the Olympic commemorative coin issue be limited to uncirculated and proof specimens of one gold and one silver, and that the sale thereof be conducted by the United States Mint or other appropriate governmental agency.'

"It is the opinion of the ANA board of governors that a total of four coins would be an acceptable quantity to be broadly purchased by the numismatic collectors."

Wilde then reviewed successful and unsuccessful prior Olympic coin programs, including the then-recent, large Munich, Montreal and Moscow coin programs in the 'unsuccessful' category.

"The reasons for failures in Olympic coin sales programs are four: too many designs, mintage is too large, coin sold over too great a period of time, and sets too costly.

"The reasons for successful Olympic coin sales are small numbers of designs, lower mintages, short time period of issues, and lower total costs."

[...]

"Recommendations: [The silver and gold coin Annunzio bill] is very close to the Board of Governors' approved recommendations for an Olympic Coin Act. Therefore, as president of the ANA, I recommend approval of Congressman Annunzio's proposed Olympic Commemorative Coin Act, which provides for four silver dollars and two gold $10, all legal tender.

"This recommendation incorporates the reasons for successful Olympic coin sales and deletes the reasons for failures in these Olympic coin sales programs."

With that, Margo Russell, Editor Coin World was called to testify. She wasted no time in stating Coin World's position.

"Like that very wise woman that I respect so much, Mary Brooks, and my colleagues here, we support your bill [directed to Annunzio]. I think Congressman St Germain is to be commended for the time he has spent on this project, and I will bet when the Olympic coin legislation reaches his Banking Committee, members will certainly be equipped with enough facts and figures to make a wise decision."

"All of us have one thing in common. We want to commemorate the very best in athletic excellence and we want an Olympic coin program, and the coin collectors support a Los Angeles Olympic coin program almost 100 percent. They did so about 5 years ago, and they wanted to work wIth the Los Angeles Committee but for some reason it appears that the Olympic officials were sold on the advice of private marketers bent on their own profits instead of seeking collector counsel."

Ms. Russell was not pulling any punches!

"I would say that ignoring the advice of coin collectors and dealers is unfortunate, especially since the General Accounting Office has identified the US collectors as a prime market for Olympic coins."

Ms. Russell then reviewed the results of the poll conducted by Coin World. Chairman Annunzio had already "stolen Russell's thunder" and presented the results earlier in the Hearing to support his position. (The results can be found here: 1983-84 Los Angeles Olympics - The House Hearing - Part B.

Ms. Russell concluded he remarks with:

"It is our earnest hope that in your deliberations as you act on the Olympic coin program you will be influenced by three words in the Olympic motto translated from the Latin. One word is faster. Everyone wants an Olympic coin program and soon. The second word is, higher.You in your wisdom must decide which program will yield the higher returns for the Olympics and the athletes., And the third word is stronger. Seventeen coins and 33 editions will disillusion the coin collector, but he will support strongly a modest program with all his heart and his dollars. Of this you can be certain.".

Chester Krause, Publisher, Numismatic News was the last of the hobby leaders to appear.

"I would like to emphasize before I go further that we in the numismatic community support fully the Idea of using commemorative coinage as a vehicle for raising funds to help finance the staging of the Los Angeles games in 1984 and the training of American athletes for participation in them. We would like to see as much money raised for this worthy goal as possible, but it must be done in a manner that will safeguard the interests of taxpayers and citizens who will buy Olympic coinage."

"The reason I am here, and the reason I testified last July at the Hearing of the Senate Banking Committee, is to try to point out for Congress the pitfalls encountered by previous Olympic coinage programs. These programs were conducted on behalf of Canada and the Soviet Union by a private marketing organization that is in most aspects, essentially the same one that could be given the same responsibility for the United States.

"This organization seems determined to give the United States the same kind of program It gave to Canada and the Soviet Union, and that should make any thinking person shudder because the two programs are out and out failures, littered with unmet projections.

"Both Canada and the Soviet Union concluded their massive Olympic programs with just small fractions of their projected revenues."

[...]

"I am, quite frankly tired of this debate. When Congress requires expert testimony on law, it consults lawyers. When it needs financial data, it consults economists and bankers. Why, then, in matters of national coinage would the opinions of those who have worked and studied in this area for decades seem to count so little, when the opinions of marketers mean so much?"

[...]

"Having 30 years of experience in the publishing field and more than 40 years as a collector, I urge you, Mr. Chairman, and members of your subcommittee, to consider the facts I have brought to your attention; read my extended remarks. I believe the facts speak for themselves and I strongly urge you to vote in favor of the 6-coin program [of Representative Annunzio]."

Krause's statements were very powerful!

(For those keeping score at home, that's Annunzio 6, St Germain 0.)

Before wrapping up the day's session, Annunzio called a series of collectors to offer their thoughts on the proposed Olympic coin programs:

Joseph Clarke

"I strongly urge everyone that I talk to and strongly urge the Congress of the United States to support your bill [directed to Annunzio] for the simple reason that, knowing what collectors want and talking to them, they want a coin that they can afford, most collectors are not in a position where they can collect expensive coins."

Mrs. Clarke
There is no way the average group can support a large collection or a large number of Olympic coins for the young people. I would like to say one thing against Mr. St Germaln: Coin collecting is a hobby. It is a big business to some people btitto us little folks it is a hobby, just like collecting dolls, just like philately and antiques."

Wilfred W. Groleau
"I appreciate the opportunity to say a few words in support of a reasonable Olympic coin program which will meet the objective of providing adequate funds to the 1984 Olympic program, yet not fill the coffers of a merchandising conglomerate with excess profits; indeed, with any profits.

"Please don't misunderstand me. I support the free enterprise system of this country, but I firmly believe that the minting and distribution of U.S. coinage is and should remain the responsibility of the Treasury Department."

John J. Tinnney
"To make this program a success, it is of utmost importance that the number of coins issued and the cost of those coins be kept within the reach of the average citizen. While some collectors will purchase these coins regardless of the cost, to ensure that enough coins are sold to accomplish their purpose, that of financing the Olympics and training our athletes, they must appeal to the small collector and the general public as well. While some may purchase a corn or two as souvenirs of the Olympics, the coins purchased will be those of a lesser cost and moot likely will not generate the revenues expected or needed. Many, if not most, will not purchase any of the coins if they cannot afford them all."

"I cannot stress too much that if the public feels that private interests are receiving substantial amounts from this program, they will not purchase the coins. Also, as a coin collector, I do not want to see anything happen which could result in a discontinuance of commemorative coinage again, now that we are seeing a resumption of such programs with the pending issuance of the George Washington commemorative half-dollar later this year."

Carl Shrader
The Senate bill coins would have little numismatic or collector value because of their numerous designs and high cost to the purchaser. As reported in a recent coin hobby paper, "too many profits go to marketers * * * this could cause a backlash of resentment toward the Government and Congress."

(The collector testimony ups the score to Annunzio 11, St Germain 0. A stacked deck?)

I wonder how differently the Hearing proceedings would have gone if St Germain was present to "cross exam" the various witnesses?


See "TBD" - 1983-84 Los Angeles Olympics - The House Hearing - Part E to continue the story of the Olympic Coin Act for the 1984 Los Angeles Olympics.


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