Weekly World Numismatic News for August 4, 2019
Congress is nothing if not full of shallow people who would pander to their own mothers if it meant winning a vote or two. Their shallowness is on display just before they go on an extended break when members drop bills into the virtual hopper for consideration.
In the old days, members of Congress would write have the bills printed on paper and dropped into a physical hopper. The Clerk of the House would empty the hopper and enter new bills into the Congressional Record and add it to the calendar. The bills are sent to the Government Printing Office (GPO) for publications. Nowadays, the hopper is virtual. The submittal process is all by the press of the button — however, the still prints the bills and the Congressional Record causing delays in reporting.
Members of Congress know this and can milk a story for days while they travel back to their districts for their summer break.
It is excellent public relations for these people whose approval rating is lower than drain cleaner. So in between the bills to rename Post Offices, federal buildings, and sections of highway are bills to create commemorative coins. Congress gets a nice writeup about these bills that they hope their constituents will remember knowing most people have short attention spans.
The numismatic media is no different than any other press sectors. Every numismatic-related bill that is introduced gets banner headline coverage even though very few will receive a hearing. The only difference in their reporting is that the numismatic media will bury the term “if it passes” somewhere in its reporting.
Then, when a bill passes one chamber and sent across to the other, someone is breaking out the champagne. Except someone forgot that we are talking about Congress where nothing is easy. Sure, the Women’s Suffrage Centennial Commemorative Coin Act (S. 1235) and the Christa McAuliffe Commemorative Coin Act of 2019 (S. 239) passed the Senate, but the House has not accepted these bills. Members of the House will not let these bills in the front door because they are revenue-generating bills, which constitutionally must be introduced in the House.
It was particularly interesting when a Tennessee newspaper lauded Sen. Marsha Blackburn (R-TN) for S. 1235 without noting that the bill introduced by this one-time member of the House is blocked for violating the constitution.
I find this stuff fascinating. Then again, I used to work for the federal government!
And now the news…
July 28, 2019We’ve had a whole host of new currency introduced recently, but what should you do if you still have old coins or notes knocking about? The answer depends on what kind of currency you have, and how long ago it went out of date – while you can still exchange the recently changed notes and coins, you may be out of luck if you find any half-pence or farthings. 
→ Read more at simplybusiness.co.uk
July 30, 2019A Vancouver Island man has spent the last 10 years uncovering thousands of items using his metal detector — many of which are historic and valuable, he says. → Read more at cbc.ca
July 30, 2019Nearly two years after they stopped being legal tender, 145 million old-style £1 coins are still missing. → Read more at bbc.com
July 30, 2019Collectors are only too happy to share the history of their collections with visitors → Read more at gulfnews.com
July 30, 2019KANSAS CITY, Mo. — From Satchel Paige to Jackie Robinson and Buck O’ Neil, several of baseball’s iconic players began their professional careers with the Negro Leagues in Kansas City. Now those legends, along with countless others, could be honored with a special, commemorative coin. → Read more at fox4kc.com
August 1, 2019Twin Cities coin dealer Barry R. Skog has been sentenced to 30 months in prison by U.S. District Judge Wilhelmina Wright for perpetrating a counterfeit coin fraud scheme. → Read more at startribune.com
August 2, 2019The PIL filed by the National Association for the Blind (NAB) sought directions to the RBI to include distinctive features in coins and in currency notes, so visually-challenged persons can easily identify the same. → Read more at hindustantimes.com
Follow Me at the ANA: TXT AND PIX
In addition to following CoinsBlog on Twitter to see my 160-character or less reports from the World’s Fair of Money, you may also follow the pictures I hope to post on a new Photobucket account I set up today. Since my iPhone includes a 2 megapixel camera, why not take advantage of it and bring you images from Baltimore.
There are a few test pictures posted to Photobucket sent from my iPhone for testing. Those pictures will be deleted this evening.
To follow me during the day, just tune into the user coinsblog on both Twitter and Photobucket. I hope all of this works!
Up Next: ANA World’s Fair of Money
There does not seem to be much going on as the numismatic world concentrates in Baltimore. As I continue to recover from surgery I am considering my plan of attack for this week. For now, I will be in Charm City for the opening of the World’s Fair of Money—after all, I am the president of one of the sponsoring clubs. Sure, it will be a shlep, but it is a job I am looking forward to doing!
For this show, I’m going to try something different. I will try to file reports from the bourse floor. Using my newly purchased iPhone 3G and software called Twitterific, I will post messages (called Tweets) to the blog’s Twitter account. You can read my announcement about the use of Twitter in this post.
You can either follow the user coinsblog on Twitter or visit the blog often and refresh the page to see the last five posts on the left side of this page.
My ability to post messages to Twitter will depend on my ability to find a wireless connection to the Internet from the bourse floor. If I cannot find a signal, I will try to post updates when I am in wireless range. I hope this works because I think it will be fun!
Stay tuned!
Image courtesy of the ANA.
Now This Is Good Common Cents
Last December, I reported on the Penny Harvest Field that was installed in the plaza at Rockefeller Center in New York City. The Penny Harvest Field was 165-foot long and 30-foot wide “box” filled with pennies. Pennies donated to school children from all over New York City.
I received a note this evening from Common Cents, the organizer of the Penny Harvest, to announce that last year’s harvest raised $677,955.99, including $20,000 from passers-by in Rockefeller Plaza.
The announcement went on to say:
This past December, millions of people from around the world witnessed the astonishing collective effort of hundreds of thousands of children. But, the story doesn’t end there. After the pennies left Rockefeller Center, Penny Harvesters got to work deciding how to reinvest these funds back into their communities. This year, we are pleased to announce that New York City Penny Harvesters made 1,513 community grants and performed 345 neighborhood service projects with their precious funds.
New York is certainly a better place to live because of the hard-work and compassion of these children.
We hope you will continue to support Common Cents’ efforts to teach children the importance of giving back, and work with us to build the next generation of informed, capable, and caring young people.
CONGRATULATIONS to Common Cents and the school children of New York City whose efforts should be applauded!
Paper v. Coin Dollars
Since the introduction of the Presidential $1 Coin, many numismatic venues have discussed how to make the program more successful. Reports are being made that Gallup has been calling people asking questions that lead to the impression they are researching the circulation of dollar coins.
When asked about how to increase the circulation of the dollar coin, the dominant suggestion has been to remove the one dollar federal reserve note from circulation. It is thought that the move would force people to use the coin when the paper currency is no longer available.
There are many emotional arguments on both sides of the issue. Whether one is for or against the printing of the one-dollar note, the US may be the only nation to print its unit currency in paper. Looking beyond the emotional arguments, each side has dominant arguments to support their positions.
Those who want to eliminate the one-dollar note use at the cost of is production as the dominant reason. The Bureau of Engraving and Printing reports that 95-percent of all notes printed are used to replace notes that are taken out of circulation. Using BEP’s 2007 production numbers, 4,147,200,000 one-dollar notes were printed. With 95-percent being replacement notes, 3,939,840,000 notes were printed just to maintain circulation levels. With it costing 4½ cents to produce one note of any denomination, the cost to just replace notes removed from circulation was $177,292,800 in 2007.
Rather than printing paper dollars, if the US Mint strikes coins the cost to replace those 3.9 billion notes would cost 15.9-cents (according to the Mint’s 2007 Annual Report [PDF]) per coin. The total production cost would be $626,434,560.
But do not let the 353-percent increase fool you. The BEP predicts the life of a one-dollar paper note is three years while the US Mint predicts the life of any coin is 30 years. To help with the calculation, let’s assume the price of printing notes will stay constant. In order to keep the $3.9 billion of one dollar notes in circulation for 30 years, it will cost the BEP $1.77 billion dollars. Since the Mint will be striking new coins for circulation and (theoretically) not replacement coins, the US government would save about $1.15 billion over 30 years. The following table illustrates these costs:
| Denomination | Production Total | Number of Replacement Notes | Cost of Production for Replacements | Cost of Replacements over 30 years |
|---|---|---|---|---|
| Paper Dollar | 4,147,200,000 | 3,939,840,000 | $177,292,800 | $1,772,928,000 |
| Coin Dollar | N/A | 3,939,840,000 | $626,434,560 | $626,434,560 |
While this might be a compelling argument to stop printing one dollar notes, such a move has political ramifications for some powerful members of congress. With over 1500 people working in the Eastern Currency Facility in downtown Washington, DC, they are represented by several leaders of both parties. Amongst the protectors of the employees in the facility include House Majority Leader Stenny Hoyer (D-MD), House Campaign Finance Leader Christopher VanHollen (D-MD), Former Chairman of the Government Reform Subcommittee Tom Davis (R-VA), Del. Eleanore Holmes Norton (D-DC), and the well respected Senator John Warner (R-VA). These powerful members of congress will not allow anything that will reduce the production capacity of the Bureau of Engraving and Printing and where constituents could lose jobs.
This does not take into consideration that the President of the United States is from Texas, location of the Western Currency Facility.
Before congress changes the law to stop the printing of the one-dollar note (31 U.S.C. §5115(a)(2)), the BEP will have to supplement production in order to protect jobs. The way this could be done would be to print foreign currency. However, it seems that the BEP is having problems selling their services to foreign governments.
While there are no official statements from the US or foreign governments, the dominant request is for the printing of polymer notes. According to unconfirmed reports, BEP is experimenting with different types of polymer substrate without notable success. If the BEP can adjust their equipment to print on polymer paper, they can solicit business from other countries to produce their currency. Once the BEP builds its portfolio, they are prepared to go to congress to recommend discontinuing production of the one-dollar note. Until then, the BEP will continue to produce one-dollar notes in order to keep workers employed in key congressional districts.
If BEP starts to use polymer notes, it would raise the eyre of Senator Edward M. (Ted) Kennedy, the powerful senior Democrat from Massachusetts. Amongst Sen. Kennedy’s constituents are the employees of Crane & Company from Dalton, Massachusetts. Crane & Comapny has been the exclusive supplier of currency paper to BEP since 1879. Although BEP tried to open the competition for purchasing currency paper used in printing currency (see GAO Report GAO-05-368 [PDF]), the cost of entry into the market has prevented other manufacturers from competing for the business. If BEP would stop printing over 4 million one dollar notes without replacing it with similar paper production, the Massachusetts-based company could lose significant business.
Regardless of the measures taken by the US Mint to increase the circulation of the one-dollar coin, public perception is that the one-dollar paper note is easier to use than the coin. Unless key congressional leaders agree that ending the printing of the one-dollar note is in the best interests of everyone, including their political careers, the political reality is that printing of the one-dollar note is here to stay until a significant event causes a change in policy.
DGS Making Progress
Last February, the owners of David Lawrence Rare Coins bought the assets of PCI, the fledgling grading service from suburban Atlanta, Georgia in an absolute sale auction. DLRC then packed up the assets and moved the service to their location in Virginia Beach, Virginia.
Rather than trying to rescue the PCI name, DLRC President John Feigenbaum later announced that the service would be rebranded as Dominion Grading Service (DGS) and begin accepting grading submissions in May. Feigenbaum said that DGS would work to earn the trust of collectors and add new innovations to their service.
As part of the announcement, Feigenbaum said that as submission are processed, two services will be available from the DGS web site. Both are now online. One was AuthentiVIEW.™ AuthentiVIEW is a free imaging service for all coins DGS grades valued at over $100. Coins imaged by AuthentiVIEW will be announced on the label and the image will be saved on the DGS website. DGS says that the purpose is to help those trading DGS slabs identify the coin that is supposed to be in the slab. It is DGS’s attempt to fight the counterfeiting of grading holders.
The other service is a Visual Population Report using the images from the AuthentiVIEW service and Net Grading of problem coins. The Visual Population Report is a standard table format that shows the population for each coin graded by DGS. Coins that have AuthentiVIEW images can be seen by clicking on the link in the table.
Imaging and the Visual Population Report are great ideas. The images are of varying sizes with nice clarity. It is an impressive service. The only complaint I have with the Visual Population Report is that there are too many popup windows. One windows opens when the link in the Visual Population Report is clicked and another for viewing larger images of the coins. I think they should eliminate the first popup window.
On May 21, 2008, as part of a press release, DGS announces that they will be adding a “D” to the serial number of the coins they grade that were submitted by DLRC. Feigenbaum explains, “In this manner collectors can judge for themselves whether we been careless in grading our own material.” I have no experience with purchasing DLRC coins graded by DGS so I cannot comment whether they have been careless or not. I have purchased other coins from DLRC in the past and see no reason why I wouldn’t buy from them in the future.
Last week, Feigenbaum wrote on his blog that DGS has graded 2,000 coins. It is quite an accomplishment in 2½ months for a company taking over a damaged brand and trying to break into a market with two dominant forces. While Feigenbaum wrote, “[w]e’re doing this the hard way… one collector coin at a time,” there was no indication as to how many of these coins were submitted by DLRC versus collectors and dealers.
I wrote, “DGS has a long way to go to reach the reputation of the recognized second-tier services. I wish them luck and look forward to see how the industry receives their service.” DGS appears to be on their way to contending in this market. Let’s see if they have the announcement at the ANA’s World’s Fair of Money® starting July 30 in Baltimore.
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