December 2018 Numismatic Legislative Review — End of the 115th Congress
It should come as no surprise to anyone that the 115th Congress left unfinished business. As we start the new year, 25-percent of the executive branch does not have the legal funding to operate. Those with leftover funds operated as long as they could but are now closed pending congressional action.
As with previous shutdowns, the U.S. Mint and the Bureau of Engraving and Printing are not affected. Both agencies are self-funded from their profits (seigniorage) which is held in their respective Public Enterprise Funds.
The 115th Congress is constitutionally scheduled to end at 12:00 noon on January 3, 2019, when the 116th Congress will begin. Congress will take up the new funding bills as part of the opening session.
When the new Congress gavels into session, any bill pending from the 115th Congress will be removed from the docket. It will be said that these bills will die in committee.
In reviewing December’s legslation update, there was the passage of one bill:
H.R. 1235: Naismith Memorial Basketball Hall of Fame Commemorative Coin Act
The Naismith Memorial Basketball Hall of Fame Commemorative Coin Act was sent to the White House for presidential signature on December 19, 2018. The president has ten days to act on the bill. He can sign the bill, which there is no indication that he has, and it becomes law. He could veto the bill to prevent it from becoming law.
But what if he does not sign the bill? If Congress was still in session then the bill automatically becomes law. If Congress adjourned then the bill does not become law. That is called a pocket veto.
Because of the shutdown, Congress did not adjourn while trying to resolve the issue. There were pro forma sessions, meaning that a representative gaveled in the House and Senate only to adjourn for the day. If the president did not sign or veto the bill, it has become public law. However, since the Government Printing Office (GPO), the official publisher of the U.S. government, is closed because of the shutdown, they cannot publish the results of legislation passed or vetoed. Therefore, we do not know whether this bill is now the law.
Previous administrations would announce bill signings in their regular news streams. This White House has chosen to discontinue that practice leaving us at the mercy of the currently closed GPO.
In December, the Senate passed the National Law Enforcement Museum Commemorative Coin Act by a voice vote. Although the bill was sent to the House for consideration it never left the committee and will die in committee when the 116th Congress is gaveled into session.
S. 2863: National Law Enforcement Museum Commemorative Coin Act
Finally, Rep. Bruce Poliquin (R-ME), whose district includes Kennebunkport, introduced the President George H. W. Bush and Barbara Bush Dollar Coin Act. Essentially, this would have extended the Presidential $1 Coin program to include President George H.W. Bush and First Lady Barbara Bush. This bill, like many others, died in committee.
H.R. 7257: President George H. W. Bush and Barbara Bush Dollar Coin Act
A full review of the 115th Congress will be published shortly after the government reopens and the GPO resumes its publishing operations.
Presidential $1 Coin Act Also Commemorates Lincoln
Over my last few entries, I have been covering the various components of the Presidential $1 Coin Act of 2005 that President George W. Bush signed last Thursday. Title I creates the Presidential $1 circulating commemorative coin that will honor each past, deceased president, four per year, until all have been honored. As part of Title I, there will be a corresponding First Spouse gold bullion coin and a bronze counterpart. Title II creates a $50 gold bullion coin using the original (Type 1) design of the Buffalo Nickel created by James Earle Fraser. Today’s entry will discuss Title III, Abraham Lincoln Bicentennial 1-Cent Coin Redesign.
In commemoration of the 200th Anniversary of the birth of Abraham Lincoln, the United State’s 16th President, congress authorizes the minting of 1-cent coins during the year 2009, where the obverse uses the likeness of Lincoln as designed by Victor David Brenner in 1909 and the reverse to have four different designs to represent different aspects of Lincoln’s life. With 2008 being the end of the 50-State Quarter Program (unless extended for the District of Columbia and territories), the 2009 Lincoln Cent can help perpetuate the interest in collecting creating a new, one-year collectibles.
During the last 20 years, the Mint has lowered the relief of the coins in an attempt to make the dies last longer and save money. As a result, there have been design decisions that many feel has detracted from the beauty of the coins. For example, the likeness of George Washington on our current quarters seems to have “spaghetti hair” in an attempt to make up for the lower relief. To answer the critics, this law requires “that the original Victor David Brenner design for the 1-cent coin was a dramatic departure from previous American coinage that should be reproduced, using the original form and relief of the likeness of Abraham Lincoln, on the 1-cent coins issued in 2009.” (emphasis added) A much needed change to preserve the beauty of Brenner’s original design.
An interesting provision of the law requires the Mint to issue the coins using the same metallic content as when the first Lincoln Cent was issued in 1909. The 1909 Lincoln Cents weighed 3.11 grams and was 95-percent copper and 5-percent zinc and tin. Since 1982, the coins were changed to a copper-plated zinc coin of 99.2-percent zinc and 0.8-percent copper plating. These coins weigh 2.5 grams. Using more copper and the higher relief may make the coins more expensive to manufacture than the 1-cent face value. The Mint will probably make up the loss in seigniorage with the collectibles it will generate during the year.
I am looking forward to the new collectibles and hope that they are as beautiful as the Westward Journey Nickels were in 2005!
Bush Signs Presidential $1 Coin Act Bill
The White House issued a press release announcing that President George W. Bush signed the Presidential $1 Coin Act of 2005. This act will create a new series of numismatic collectibles and hopefully revive the circulating dollar coin. In my previous entry, I wrote about the Presidential $1 circulating commemorative coin and the corresponding First Spouse gold bullion coin. Today, I will write about Title II that authorizes the minting of a $50 bullion coin of 99.99 percent pure gold bought from at fair market value from US sources using the original design of the Buffalo Nickel by James Earle Fraser.
Fraser’s design has been a favorite of many. It is the only design that represents unique aspects of American history or culture. Unlike other circulating coins where the image was of Liberty wearing a headdress, Fraser created his design using real Native Americans as models. The reverse image is that of “Black Diamond” who was a popular resident of the Bronx Zoo. Fraser’s original design, known to collectors at the 1913 Type 1 variety, has the buffalo standing on a grassy mound. The Type 2 variety changed the design to a straight line because of wearing problems.
This law mandates the use of the Type 1 design. The law requires that the nominal value and the weight of the coin incused on the reverse. By making this area incused, the Mint will avoid any wearing issues that caused the original changes to Fraser’s design. While that may not be a problem with a bullion issue, is may allow the coin to better fit a proof set capsule.
But temper your excitement. The law allows the Commission of Fine Arts and the Citizens Coinage Advisory Committee to change the design after the first year. Considering the popularity of the 2001 Buffalo Coin Commemorative, this design has the potential to make this a popular coin for those in the gold bullion market making it unlikely that the design will change. Unfortunately, given the rising price of gold and that the current $20 one-ounce bullion proof coin sells for over $700, a speculative price of this coin may make it too expensive for most collectors.
The Presidential $1 Circulating Commemorative
On December 13, 2005, the Senate passed S.1047, the Presidential $1 Coin Act of 2005, and on December 15th, sent it to the White House for President George W. Bush‘s signature. The main component of the bill is to create a $1 coin to commemorate the Nation’s past Presidents and an accompanying $10 gold coin to commemorate the President’s spouse (First Lady). Title II creates the minting of a $50 gold bullion coin using the original design of the Buffalo Nickel by James Earle Fraser. Finally, Title III is the Abraham Lincoln Bicentennial 1-Cent Coin Redesign that calls for four different design representing different aspects of Lincoln’s life honoring Lincoln’s 200th birthday. President Bush has not signed the bill as I write this entry.
Since each section is interesting in its own right, I will cover one at a time.
Starting in January 2007, the Mint will issue circulating $1 coins commemorating each past President. The obverse must include the President’s name and likeness, dates or years of the term, and the number order which the president served. The reverse will have “a likeness of the Statue of Liberty extending to the rim of the coin and large enough to provide a dramatic representation of Liberty while not being large enough to create the impression of a ‘2-headed’ coin” and include the denomination and “United States of America.”
Interestingly, the bill says that the word Liberty does not have to appear on the coin since the appearance of the Statue of Liberty satisfies established law. Also, to provide more room for artistic impression, the mottos “E Pluribus Unum” and “In God We Trust” will be incuse on the edge of the coin. The edge lettering requirements is an interesting twist on US coinage and should make for an interesting coin.
There will be only one coin design per president and one coin for all terms and one coin issued for each non-consecutive terms. So Franklin D. Roosevelt will have only one coin in the program and Grover Cleveland will have two coins, each with different inscriptions of his terms (1885-1889 and 1893-1987). No living current and former president can appear in this program and two years have to pass after a president dies to be eligible. Currently, all presidents since Gerald Ford are ineligible, although President Ronald Reagan will be eligible by the time it is his turn. And as we have seen with recent circulating commemoratives, only four coins will be issued each year until all presidents have been honored.
Along with the presidential coin, a First Spouse $10 Bullion Coin will be issued on the same schedule as the Presidential coin. The First Spouse coin will be the same diameter of the $1 coin and contain one-half ounce of 99.99 percent pure gold purchased at fair market value from US sources. The obverse will have the name and likeness of the President’s spouse and with the year and order of term, just like the President’s coin. On the reverse will be “images emblematic of the life and work of the first spouse” and the inscription United States of America.
In the case of no first spouse, the image will be emblematic of the concept of Liberty. The reverse will represent themes of the corresponding president. The exception will be for President Chester A. Arthur, the 21st President who was widowed when he took office in 1881. The first spouse coin will honor Alice Paul, suffragist, who was born during Arthur’s term. The reverse will represent the suffrage movement.
As someone who believes that a $1 coin should replace paper currency, having a circulating commemorative is wonderful. The only downside to this bill is that the Sacagawea Dollar will continue to be minted and must make up one-third of the circulating issues. This will dilute the population and impact of the circulating commemoratives and probably lessen its impact.
My next entry will look at the $50 Buffalo gold bullion coin.
My Day In Baltimore
As I attend coin shows I begin to notice how there seems to be a theme that appears across the many vendors. This is where a few coin types just seems more prevalent than others. This past Baltimore show was no different. As I walked through the aisles on Friday, I noticed the recent mainstay 50 State Quarters,™ the increase in competition amongst the grading services along the back wall, certified gold coins, and Morgan dollars.
It is difficult to argue against the display of the 50 State Quarters. The program is credited with raising the profile of numismatics and have made collectors out of many people. The program has sparked an interest in coins in many different areas including with the kids, who are the hobby’s future. It has also raised the profile of the numismatic industry for those who see this as a hobby and those who just invest. The investors are accused of driving up prices. Only time will tell if this is good for the hobby.
At my first Baltimore show, only PCGS and NGC were present. This past show also included ANACS, ICG, PCI, and PMG. There was so much competition that one of the services announced “show specials” while I was walking around the floor. I always believe competition is good and hope that these grading services keep up the good work as they compete for our business.
Nowadays, it is rare to walk up to a table and find a raw gold coin. The only raw gold coins I see are sealed in Mint packaging or uncirculated American Eagle bullion coins. What I saw at the show appears to be similar to what I read in the trade press. There is a demand for Saint-Gaudens double eagles and Indian head eagles, Indian double eagles, the Bela Lyon Pratt Indian Head half-eagle, and the “odd denomination” $3 gold coin and I saw a few $4 Stellas. I was impressed with the crowds looking and what I saw was buying these coins.
For other circulation coins, I saw a lot of Morgan Dollars. While Morgan Dollars have always been very popular, there seemed to be an overwhelming appearance of top and mid-grade Morgans. I was able to pick up a number of good pieces at good prices to add to my collection. A few friends also noticed the availability of quality Morgans at this show.
As I patrolled the floor, I was looking for some key coins without much success. While I cannot afford high grades, I would be happy to find some nice mid-grade key coins with some nice eye appeal. For example, I am looking for all three 1921 Walking Liberty Half Dollars but found either high grades that were beyond my budget or low grade coins that were affordable but did not appeal to me. I know there is a compromise that has to be made for low grade coins, but much of what I saw did not even make my compromise grade.
Is the market for key coins going to shut out those of us who have to stick to a budget? Although many dealers will work with you at their tables, from what I saw at the Baltimore show, it may start happening.
The Baltimore Show is fun. Aside from being Baltimore, the dealers I meet at the show are good folk and nice to meet. Although I have my favorites, I like to buy and trade with many different dealers just to meet them, talk with them about the market from their perspective, and just see the variety. I highly recommend anyone attending any one of the big shows to meet the people who go. I also recommend you come to Baltimore and enjoy your experience in Charm City.
My New Collectible
I know I need to write a report on my trip to Baltimore, but something happened this evening that I want to share. I am a member of the Montgomery County Coin Club (MCCC). The club holds its monthly meetings on the second Tuesday of each month. For this meeting, Joe Fitzgerald was our speaker. Mr. Fitzgerald is the artist and a member of the US Mint‘s Artistic Infusion Program. He is the designer of the 2005 obverse portrait on the Westward Journey Nickel and the reverse of the 2005 “Ocean in view!” reverse.
Mr. Fitzgerald’s spoke about how he applied for the Artistic Infusion Program and the process that he experienced in creating the new designs. His talk included slides that showed the different designs he submitted and how the design evolved from concept to the final coin. He also explained his thoughts in the design. What I found interesting was that while designing the obverse of the nickel, Mr. Fitzgerald explained that the design was something that he wanted to try but did not think it would be accepted. He said that as part of the design, he wanted to position the word “Liberty” in a way where it looks like Jefferson was speaking. Mr. Fitzgerald also wanted to have Liberty in Jefferson’s handwriting in order to give it life in Jefferson’s character, giving it more meaning.
It has always been my opinion that this portrait of Jefferson has had the most character of any presidential portrait that has appeared on any coin. It was a bold move to suggest this design and it was executed with such care that it visually gives Jefferson character and strength to heighten its stature. I wish this design would have been made the permanent design. Unfortunately, the Mint has other ideas.
Following the meeting I was able to speak with Mr. Fitzgerald. He is a delightful person and all of the accolades he has received are well deserved. When we finished talking, He pulled an “Ocean in View!” nickel from his pocket and autographed it in front of me. I was so impressed I put it in my wallet between two credit cards to ensure that his autograph would not rub off. At home, I carefully removed the coin and placed it in an AirTite holder. I scanned and offer the image here for anyone to see. Sorry, this coin is not for sale. It will be in my collection until it is time for be to pass it on to my heirs!
Thank you, Mr. Fitzgerald for a delightful talk and a wonderful memento of this evening.
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