Nov 12, 2016 | BEP, legislative, news, policy, US Mint
Rhett Jeppson, nominated to be the 39th Director of the U.S. Mint
The immediate impact of the election results is that Rhett Jeppson will not be confirmed to become the Director of the U.S. Mint. Even though the Senate Banking Committee held a hearing for his nomination on March 15, the chance of the GOP-led Senate confirming any of President Obama’s appointment nominations are non-existent.
Jeppson was hired in January 2015 as Principal Deputy Director. Jeppson was hired as a member of the government’s Senior Executive Service (SES) program. In July, it was announced that Jeppson would be nominated as the Director. Since the nomination will likely die in committee, Jeppson will remain on the U.S. Mint staff as a government employee. Although he has not announced his intentions, Jeppson is likely to continue as Principal Deputy Director.
It is unlikely that the next administration will nominate Jeppson or anyone in the near future. Considering that there has not been political appointee running the U.S. Mint since January 2011, maybe President Obama could use his power to convert the term appointment into a permanent government employee. This way, the U.S. Mint can be run by competent managers rather than a pol who might do something like not ordering enough planchets to maintain a major bullion program.
The Bureau of Engraving and Printing is not affected by a change in administrations because the position of the director is a permanent government employee. Len Olijar will remain Director of the BEP as long as he is a government employee in good standing.
As for any of the pending legislation, do not count on anything being passed. Given the results of the election, sources say that the partisan rancor is so fervent that even the most cordial relationships have turned icy. These feelings are not limited to cross-party relationships. There is a growing divide between ideological members in both parties that could almost split the congress into four parties.
To suggest that the partisan bickering to escalate during the lame duck session would be an understatement. Remember, congress passed a continuing resolution, not a real budget, in late September that will expire on December 9. If a budget is not passed by December 9 then the government will have to be shutdown.
The 114th congress will adjourn being one of the most ineffective congress on record.
For the 115th congress that will convene on January 3, 2017, there will be 239 Republicans and 193 Democrats with three runoffs pending (two in Louisiana). Although the Republicans lost 7 total seats, they continue to hold a majority. Currently, Rep. Jeb Hensarling (R-TX) is the Chairman of the House Committee on Financial Services. Although it is not known if Hensarling will remain as chair of this committee, it is likely the new leadership will continue the previous policies. If the attitudes of this committee do not change, there may be very few commemorative coin programs that get through this committee.
Although revenue generating bills are required to be introduced in the House of Representatives (U.S. Constitution, Article I, Section 4), the Senate has been known to introduce commemorative coin bills without argument from their House counterparts. For the 115th congress, the Senate will have 51 Republicans and 48 Democrats with a runoff in Louisiana scheduled for December 10. However, Senate rules make the composition somewhat irrelevant because of their ability to filibuster.
Under the Senate’s filibuster rules (Senate Rule XXII), a senator can inform the presiding member that they intend to filibuster the debate. At that point, the presiding member will set the bill aside to allow other business to continue because the Senate can only work on one item at a time. This means that a filibuster stops all other floor actions. By setting the bill aside and not bringing it to the floor, this allows for other senate business to continue while the leadership tries to gather support for a cloture vote.
Cloture, or closure, is the act to end the free-flow debate of the senate and apply restrictions, such as a 30 hour limit on debate. Cloture requires a three-fifths vote of the senate (60 votes) to agree on cloture. Anyone who remembers some of the past discussions on the composition of the senate, when one party controls 60 seats, they called that a “filibuster-proof majority.” Otherwise, any senator can threaten a filibuster and have that measure buried.
Although it is unlikely that the senate would filibuster the vote on a commemorative coin bill, but it would be obstructed by the another bill ahead of it in the queue.
Even though I would like for the Apollo 11 50th Anniversary Commemorative Coin Act (H.R. 2726 and S. 2957) to pass, I will not be holding my breath during the lame duck session this year or a new version introduced anytime next year.
Oct 13, 2016 | coins, news, US Mint
Hello from Philadelphia!
I am in Philadelphia to attend the U.S. Mint’s Numismatic Forum. According to the U.S. Mint, “The purpose of the event is to gather leaders and stakeholders of the numismatic community to explore ways to stimulate and revitalize the hobby. As we approach the U.S. Mint’s 225th anniversary next year, we hope this unique opportunity to examine and discuss the Mint’s past, present and future will help move all the elements of the numismatic industry forward.”
I do not know who will be there but I am sure that I will see many of the regulars of the numismatic community. From the U.S. Mint, we will probably hear from the current Principal Deputy Director Rhett Jeppson and others from the Mint’s staff. Here is an overview of the schedule:
- Arrival and welcome from the U.S. Mint along with introductions.
- Recognizing the past:
- U.S. Mint Heritage Assets overview
- Smithsonian Numismatic Collection overview
- The Present:
- Mint product update and marketing initiatives update
- “Invigorating the Coin Collecting Hobby” panel discussion
- The Future: Workgroup discussions with reports from the workgroups
- Visit to the Philadelphia Mint
For those of you who will not be there and would like to follow along, you can follow @coinsblog on Twitter as I send out periodic updates. The widget on the upper-right side of the page can also be used to follow the progress. Also, when I can post pictures, they will be copied to the Pinterest on the board “Numismatic Forum” or watch the widget below.
Of course, there will be a report posted over the weekend!
Oct 9, 2016 | medals, silver, US Mint, values, video
Finding coins in pocket change can be a lot of fun. Then there are those who find hoards of coins buried in the ground or just stored somewhere that people forgot. From shipwrecks to treasure hunts, we all dream of finding the next jackpot somewhere.
On your great grandfather’s farm, a worker was plowing the field and found a silver medal. It has the image of President James Madison on one side and what looks like a peace medal on the other. Rather than letting go, great grandpa traded three hogs for the medal.
The medal gets handed down from generation to generation until one of his ancestors takes the medal to Antiques Roadshow to find out what it is worth.
You are told that it is a silver James Madison Indian Peace Medal. The 1809 medal was designed by assistant engraver John Reich and struck at the U.S. Mint in Philadelphia. It is not the largest of the medals but at 2½-inches, it is a fairly significant medal.
What is it worth? See what Jason Preston of Jason Preston Art Advisory & Appraisals of Los Angeles said about the medal on Antiques Roadshow:
Did you guess right?
Image and video courtesy of
WGBH and the Antiques Roadshow
Sep 29, 2016 | charity, Federal Reserve, news, US Mint, YN
Mrs. Janas of Juniata Park Academy in
Philadelphia, PA (Grades 6-8)
The project can be funded for a paltry sum of $512.92. With the donations matched by the Dottie Lutz Foundation, we can send underprivileged students to visit the Mint and the Fed for $256.46!
As I said in my original post, maybe a few would become interested in numismatics. Seeing the exhibits and learning how money is made can inspire these children to become collectors. And as inner-city students in a minority community, adding this diversity to the hobby is one of the best gifts we can give the hobby.
There is ONE MONTH to go on this project.
Previously, I asked to see if nine readers of the Coin Collectors Blog would step in with a $25.00 donation. Thankfully, it appears that only one person did step up. This effort now needs $413.00 to be funded meaning it will take is $206.50 in donations for this to be funded!
I am asking for everyone to
give any amount to fund this project.
It would be wonderful if the numismatic community stepped up to help fund the visits to the Mint and Fed for these students. Let’s see if we can influence some students to become numismatists.
Will you please join me?
Sep 10, 2016 | coins, commentary, news, US Mint
The U.S. Mint announced that they will hold a one-day forum to “share perspectives on the past, present, and future of the numismatic hobby.” It is part of their preparation for the U.S. Mint’s 225th anniversary in 2017. The agenda will be the future of the Mint and the numismatic environment as a whole.
“It seems only appropriate that, while we as a bureau are celebrating our history, the Mint is also looking for ways to improve the way we engage our customers and invigorate our relevance into the future,” said United States Mint Principal Deputy Director Rhett Jeppson.
It will be interesting to hear the discussion and to observe the outcome of this forum because of the limited things the U.S. Mint can do without an act of congress. Although the U.S. Mint can create medals without an act of congress many of the medals they produce are required by law such as the duplicates of the awards to congressional gold medal recipients. As for legal tender coins, most of what the U.S. Mint does is governed by legislation. Although there is some leeway in areas like special finishes for proof and other non-circulating legal tender (NCLT) coins, what the U.S. Mint is allowed to produce is governed by law (see 31 U.S. Code §5112).
One area that they U.S. Mint has had a lot of freedom is the with the 24-karat gold special issue coins. As part of the bill that created the Presidential $1 Coins, there was a section (31 U.S. Code §5112(q))) that allowed the U.S. Mint to string $50 gold bullion coins of .9999 purity (24-karat). The law says that only the first issue must resemble the 1913 Type 1 Buffalo Nickel. Subsequent designs are at the discretion of the Secretary of the Treasury with designs reviewed by the Citizens Coinage Advisory Committee and the U.S. Commission of Fine Arts.
Subsequently, the U.S. Mint used this law to issue the 2009 Saint-Gaudens Ultra High Relief Gold Coin, 2014 Kennedy Half Dollar 50th Anniversary Gold Coin, 2015 American Liberty High Relief Gold Coin, and the 2016 Centennial Gold Coins. Even though the coins are popular and their low mintage does help generate interest, these coins are not affordable to the ordinary collector.
One way to make these available to the average collector is to strike a version as a medal, similar to the First Spouse medals that resemble their gold counterparts without a denomination. First Spouse medals are struck on the same planchet as the modern dollar coins.
The U.S. Mint does not have the freedom other world mints have. It is highly regulated by a congress with a parochial view on its constitutional obligation to coin money (Article I, Section 8). Remember, the U.S. Constitution says that “The Congress shall have Power… To coin Money, regulate the Value thereof, and of foreign Coin,” not micro-manage the process.
From a collector’s perspective, I am not sure what the U.S. Mint can do. They can take notes and recommendations from this forum and ask congress to make changes. However, given the behavior of the members of congress does anyone really think that they will craft any reasonable legislation?
Shortly after the press release landed in my Inbox I responded to the U.S. Mint expressing my interest in attending.
Those interested in attending should submit requests to USMintNumismaticForum@usmint.treas.gov by no later than Sept. 15, 2016. Individual requests to attend should include the person’s affiliation (e.g., hobbyist, coin dealer, coin grader, etc.). Seating is limited and submitting a request does not guarantee admission. Attendance will be at the cost of the participant. Detailed information will be provided to confirmed attendees. For those unable to attend or who do not receive an invitation, any formal presentations made by the Mint during the forum will be made available online as soon as practicable after the event.
Aug 23, 2016 | coins, gold, legal, news, US Mint
One of the ten 1933 Saint-Gaudens $20 Double Eagle gold coins from the Longbord Hoard confiscated by the U.S. Mint
This is a case that has been ongoing for ten years following the “discovery” of ten 1933 Saint-Gaudens $20 gold Double Eagle coins by Joan Langbord, the daughter of Philadelphia jeweler Israel Switt. Following the auction in 2002 of the only legal Double Eagle for a single coin record of $7,590,020 (since broken), Langbord claims that she found ten 1933 Double Eagles in a safe deposit box where Switt stored the coins.
Langbord reported the find to the Mint to “attempt to reach an amicable resolution of any issues that might be raised.” When Langbord gave the coins to the Mint to be authenticated, the Mint confiscated the coins. Langbord retained Barry H. Berke, the attorney who represented the plaintiffs in the case that resulted in the sale of the King Farouk coin.
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Reverse of the iconic 1933 Saint Gaudens
$20 Double Eagle gold coin
After adding her sons Roy and David as plaintiffs to protect the property since Joan is elderly, the case is finally heard in July 2011. The court handed down an unanimous decision against the Langbords. The coins are moved to the United States Bullion Depository at Fort Knox, Kentucky.
Langbords appeal the trail to the Third Circuit where a three-judge panel vacated the forfeiture and order the government to return the coins.
The government appeals and asks that the return order be vacated in order to appeal the decision. Rather, the Chief Judge of the Third Circuit will stay the order and ruled that the appeal will be en banc, meaning that the appeal will be heard before the entire bench of judges.
In this round the government did not file in the proper time-frame and the Longboards appealed all rulings. The Third Circuit order the return of the coins but the government appealed the ruling again.
On August 1, 2016, in a 9-3 vote, a full Third Circuit panel of judges ruled that they agreed with the government who argued that forfeiture laws were not applicable because the coins were already U.S. property and could only be surrendered. The majority also ruled against granting a new trial noting that the errors of the 2011 trial were harmless even though a previous three-judge panel ruled differently.
In writing the dissenting opinion, Judge Majorie Rendell said that the majority based its opinion “mainly on its buy-in to the Government’s audacity—the Government’s say—so that it owned the 1933 Double Eagles and had no intention of forfeiting them.” She noted that the Civil Asset Forfeiture Reform Act was designed to prevent the government from forcefully seizing civilian property and that the ruling sets an “incorrect and dangerous precedent.”
A part of the government’s argument that is disturbing is that the they claim the Langbords are “the family of a thief” and should not benefit. Switt was never charged or convicted of a crime. While there is significant circumstantial evidence that Switt was the private seller of the coins and probably worked with the Mint’s cashier, his role has not been legally proven in any of the cases regarding any of the Double Eagle coins. Although this sounds like a legal arm-twist, it is important not only for this case but for any possible case the government can levy against any citizen. It is not right, fair, or legal and a violation of rights.
Berk told Reuters, “The Langbord family fully intends to seek review by the Supreme Court of the important issue of the unbridled power of the government to take and keep a citizen’s property.”
It is likely that the case will be filed to the U.S. Supreme Court for hearing in its next session beginning in October. Hopefully by then a ninth justice will be seated before hearing this case.
Image courtesy of U.S. Mint
Aug 8, 2016 | coin design, coins, commemorative, legislative, US Mint
Thanks to congressional lawmaking, the U.S. Mint is holding competition for the two commemorative coin programs that will be issued in 2018. Earlier this year, the competition was opened for designs of the 2018 World War I Centennial Commemorative silver dollar. Now, the U.S. Mint has begun a competition for the 2018 Breast Cancer Awareness Commemorative Coins.
Signed into law on April 20, 2016 by President Obama (Public Law 114-148), the law requires the U.S. Mint to have an “juried competition” for a design “emblematic of the fight against breast cancer.” As part of the design, the law says that “The Secretary shall encourage three-dimensional designs to be submitted as part of the proposals.”
There is a caveat: you have to be an artist of some type and a U.S. citizen 18 years of age or older. You can read the Official Rules on the U.S. Mint website, but in summary Phase I of the competition is the evaluation of three-to-five examples of your work submitted digitally to the U.S. Mint. You have to be able to submit a digital portfolio. Even if your work is good and you think you can be part of the competition, you either have to be able to take a good picture of your work or find a photographer who can help.
An “expert” will review the submissions and select no more than 20 artists for the second phase.
In Phase II, those selected artists will be asked to submit one design along with a plaster model of both the obverse and reverse for the proposed coin that includes all of the necessary elements required of a coin. Only one artist’s design will be selected. The winning artist will receive “not less than $5,000.” If your design is selected, you will have your name etched in numismatic lore for being the designer of the coin. For this, your initials will appear on the coin, the Certificate of Authenticity, and in places like the Red Book!
Full details can be found on the U.S. Mint website.
Summary of the Breast Cancer Awareness Commemorative Coin Program
- Commemorative coins issued in 2018
- Design, emblematic of the fight against breast cancer, selected from a juried competition with no less than $5,000 going to winning design
- “The Secretary shall encourage three-dimensional designs to be submitted as part of the proposals”
- 50,000 $5 “pink gold” coins with an alloy of at least 75-percent gold with a $35 surcharge
- 400,000 one-ounce silver dollars made with not less than 90-percent silver with a $10 surcharge
- 750,000 clad half-dollar coins with a $5 surcharge
- Surcharges will be distributed to the Breast Cancer Research Foundation of New York, to further breast cancer research funded by the Foundation.
Pink gold can has been more commonly described as “rose gold.” Rose gold is an alloy of 75-percent gold with 20-percent copper and 5-percent silver. The color can be adjusted by changing the ratio of copper and silver.
Aug 1, 2016 | celebration, legislative, policy, US Mint
As we do every month, we look back at the previous month’s activity in congress that will affect us numismatically. July started with congress on their 4th of July break coming back for a one week session before leaving to attend their respective conventions.
Prior to leaving, congressed passed the United States Semiquincentennial Commission Act (Public Law 114-196). The law authorizes the formation of a commission to organize the national celebration of the 250th anniversary of the founding of the United States on July 4, 2026. It was signed by President Obama on July 22, 2016. Section 5, Paragraph (c)(2)(F) of the new law recommends that the commission encourages “Federal agencies to integrate the celebration of the Semiquincentennial into the regular activities and execution of the purpose of the agencies through such activities as the issuance of coins, medals, certificates of recognition, stamps, and the naming of vessels.”
Those of us who are old enough to remember, this was the first time in the modern era that circulating commemoratives were issued. The quarter, half-dollar, and dollar coins all had special reverse designs that were issued in 1975 and 1976. These coins remain popular amongst collectors and an interesting curiosity when non-collectors find the quarter with the drummer boy reverse in their pocket change. Although circulating commemoratives are not a new concept since the advent of the 50 State Quarters series, there is an opportunity to consider something interesting to celebrate on all U.S. coinage rather than just certain denominations.
The only other piece of legislation legislation of concern was that the Financial Services and General Government Appropriations Act of 2017 passed the House on July 7, 2016. The bill authorizes the U.S. Mint to withdraw up to $30 million from the Public Enterprise Fund for its operations. This is an increase of $10 million from when the bill was originally submitted in June.
If you missed my previous explanation on the funding of the U.S. Mint, you can read “No Taxpayer Money Is Used by the US Mint” at your leisure.
Jul 28, 2016 | commentary, dollar, US Mint
Like almost every business and government agency, the U.S. Mint has been leveraging social media to engage collectors and possibly attract new collectors to purchase coins. One of the places that the U.S. Mint engages the public is on Facebook.
During the last few weeks the U.S. Mint has been appropriately promoting their products but interspersed between their posts are quite a number of posts have been several posts talking about the history of the president featured on the last coin issued in the Presidential $1 Coin program.
2016 Ronald Reagan dollar & 2016-W Nancy Reagan $10 gold coin
Aside from their over promotion of Reagan on social media, the U.S. Mint has a special section about Reagan’s life on their website. The information rivals something that would appear something on a history-related website or the Reagan Library.
Regardless of how one feels about Reagan, a federal agency should never favor one president over another. If the U.S. Mint has done the same for each of the presidents, then this would not be a problem. But to single out Reagan is counter to the nonpartisan mission of the U.S. Mint.
Why did the U.S. Mint pick Reagan for this type of treatment? Aside from the partisan issues, Reagan’s presidency would not be considered the most historic of those honored on dollar coins released in 2016. Gerald Ford was appointed Vice President in 1973 upon the resignation of Spiro Agnew. This was the first time that someone was appointed Vice President under the terms of the 25th Amendment to the U.S. Constitution. Prior to becoming Vice President, Ford was the House Minority Leader at the time and was well respected by both sides of the aisle.
Ford became the 38th president following the resignation of Richard Nixon marking the first time a president rose to the office without being elected to a national office. Using the 25th Amendment, Ford appointed Nelson Rockefeller (R-NY) as the Vice President.
Aside from presiding over the nation’s bicentennial, his transition from House Minority Leader to President not only tested the constitution but helped prove its strength in society. Although it was a difficult period for economic and world history, Ford was a significant figure in maintaining the union during this time.
Political rhetoric and correctness may have been a driver for the U.S. Mint to single out Reagan. Reagan was just another president compared to the tumultuous rise of Ford. If one president had to be honored for 2016, Ford’s presidency was more historic and deserves recognition.
2016 Presidential Dollar Releases
2016 Richard M. Nixon dollar coin
2016 Gerald R. Ford dollar coin
2016 Ronald Reagan dollar coin
All images courtesy of the U.S. Mint.
Jul 8, 2016 | BEP, news, US Mint
Former Treasurer of the United States Rosie Rios
“Rosie Rios joined the Treasury team nearly eight years ago, during the presidential transition. Since then, she has been a thoughtful steward of two important Treasury bureaus — the Bureau of Engraving and Printing and the Mint — and has been an advocate for women and girls including, for example, her leadership of the Treasury Women in Finance symposium.
“I am particularly grateful for her creativity and leadership in the effort to redesign our paper currency and to ensure that future notes reflect, for the first time in 120 years, the important role of women in shaping our democracy. I thank her for her service and wish her all the best in her future endeavors.”
As the 43rd Treasurer, Rios has been an advocate for everything regarding her oversight of the U.S. Mint and Bureau of Engraving and Printing including her participation at shows. Aside from her signature appearing on every Federal Reserve Note since the 2009 Series, she continued to autograph notes for collectors at conventions. She jokingly calls them “Rosie Dollars.”
Series 2009 Federal Reserve Note autographed by Treasurer of the U.S. Rosa Gumataotao Rios
Rios has worked as a business executive prior to working on the Obama campaign in 2008 in Virginia. She was hired to work with the transition team on matters concerning the Treasury Department and then was nominated as Treasurer. Rios has been serving as Treasurer since August 8, 2009.
Her future plans were not announced.
Aside from being a tough act to follow, the position may stay vacant for a while. Given the hyper-partisan nature of congress and that we are heavy into this election cycle, it is highly unlikely that the Senate would consider confirming an Obama appointment. Currently, Rhett Jeppson is waiting for a vote to confirm his appointment to be the 39th Director of the U.S. Mint. Jeppson’s nomination was sent to the Senate for “advise and consent” on July 9, 2016. A hearing about his nomination was held on March 15, 2016. The nomination remains in committee waiting for the Senate to do their job and hold a vote.
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