Want to propose a commem? Be prepared to make sausage

As a comment on my post about the selection design for my 2014 Baseball Hall of Fame Commemorative coin a reader commented with a simple question: Can you offer a suggestion as to who I can approach to offer an idea for a commemorative dollar?

Winning design for the obverse of the 2014 Baseball Hall of Fame commemorative

National Baseball Hall of Fame Commemorative was introduced by Rep. Richard Hanna (R-NY) whose district includes Cooperstown, NY

The easy answer is to say “write to your member of congress.” But as anyone who has written or called their representative in congress, your proposal has as much chance as being considered as the various factions have for working together. Neither your proposal nor congress working together will happen without help.

While I cannot fix the fractious nature of congress, I can offer suggestions as to how to get a commemorative coin recognized as a good idea.

As you read this post, let me remind you that former German Chancellor Otto von Bismarck once said, “Laws are like sausages, it is better not to see them being made.” What follows is a look into what it takes to make the sausage in order to propose a commemorative coin and have it become law.

First, rather than starting with congress talk with organizations in the area of interest. After all, commemorative coin programs are fundraising vehicles for the organizations. It helps congress know who will receive the money. In this case, my correspondent wants to see a commemorative coin to be issued in 2017 commemorate the 50th anniversary of the first ever heart transplant.

“My hope is to get more people aware of the need of people to sign up for the donor list to make more organs available,” my correspondent writes. “A donor sign up card could be included with each order. Proceeds could fund awareness program….”

The problem is that this is a good and noble idea but the first question a congress person would ask is what organization would receive the money? Unfortunately, congress is not into creative thinking and would like to know who could receive the money, how the money would be used, and what guarantees that the money earned from the commemorative program would be used for its intended purposes.

Do not expect the representative to do all of the work. In fact, do not expect the congress person to do much of the work until the bill is written and submitted. Even though congress will be in session fewer hours this year than in recent recorded memory, the members will tell you they are too busy to work on this issue. The nature of modern politics is that unless you are going to cut them, the party, their political action committee, or one of their other campaign committees a check, your chance for success is diminished.

However, you can cut through the fog of politics by working with a credible non-profit organization—or a coalition of non-profit organizations—with your interest.

I'm just a bill Yes, I'm only a bill And I'm sitting here on Capitol Hill

I’m just a bill
Yes, I’m only a bill
And I’m sitting here on Capitol Hill

If I wanted to propose a commemorative coin program to honor the first ever heart transplant that would be used to raise money and awareness, I might first talk with the American Heart Association. I would either try to talk with whomever is involved with their legislative affairs office (maybe out of their Greater Washington, DC-area office) or try to contact CEO Nancy Brown and other members of the AHA Board to pitch the idea.

When contacting these people, I would have an elevator-speech ready. An elevator speech is one that pitches your idea in the time it would take to ride an elevator. In other words, keep it short and to the point. Make sure your pitch includes something compelling to want them ask for more information and make sure you anticipate any questions.

The nice part about partnering with the AHA is that they are very experienced with legislative affairs. I have no doubt that they either have a full-time lobbyist on staff or have hired a lobbying firm to represent their interests before congress. This is one area where you do not have to answer questions. However you should know a little about commemorative coin bills that congress has considered. These issues are as follows:

Q: After a commemorative coin bill is introduced, which committee will it be assigned?
Q: How does the organization make money from a commemorative coin?
A: Congress sets a surcharge over and above the cost to produce the coin that will be given to the sponsoring organization. Usually, the surcharges are $35 for gold coins, $10 for silver dollars, and $5 for clad 50-cent coins.
Q: Are limits set for the number of coins sold?
A: There are no pre-set limits unless written into the law. Usually, congress has set the limits to be not more than 100,000 $5 gold coins, 500,000 $1 silver coins, and 750,000 50-cent clad coins. The number of uncirculated versus proof issues is determined by the U.S. Mint as long as they remain within these limits. Coins are produced and sold by the U.S. Mint only during the year of issue.
Q: Who designs the coins?
A: The U.S. Mint Sculptuor-Engravers and/or members of the Artistic Infusion Program will take the description that was written into the law and work with the sponsoring organization to come up with a few design samples. Those design samples will then be submitted to the Citizens Coinage Advisory Committee and U.S. Commission of Fine Arts for a recommendation. The Secretary of the Treasury will then make the final determination.
Q: How do we request that heart health and transplant awareness be inserted into the coins with the Certificate of Authenticity?
A: Make sure that the information is added to the law. Unless the sponsoring organization can compel the U.S. Mint to add it, you are better off making sure the law requires that the U.S. Mint does this.
Q: Can you give me an example of how one of these bills is written?
A: Most of the time, when you read the bills submitted to congress, you will see text that calls for editing of the law, which is called the United States Code (U.S.C.). It may say to strike words, replace words, add paragraphs, add sections, and all sorts of other editing that does not make sense unless you know what the U.S.C. says when the bill was written.

Since most commemorative coin bills are additions to the law, they are usually added to Title 31, Section 5112 of the United States Code (31 U.S.C. § 5112). Many times, the bill does not mention where the new law will be inserted when it is introduced. It will be corrected before passage.

If you want to provide the member of congress with the text of a bill, which many times is helpful, you may want to use something that has already been introduced as an example to write your own text. Two good examples are as follows:

When visiting the website, look on the right side in the lower half for the link marked “Read Bill Text.”

Both bills specify gold, silver, and clad coins. Your proposal does not have to include all three. In fact, to raise awareness, you might want to consider just a silver dollar and a clad half-dollar.

Too bad there's so much dysfunction in such a beautiful building.

Too bad there’s so much dysfunction in such a beautiful building.

To help raise awareness, you should visit congress. Make an appointment, come to your nation’s capitol, and avail your rights as a citizen to speak with your representative. In fact, if you work with an organization like the AHA, maybe they will help you talk with your representative to get the bill introduced. Even though you are probably not going to be donating a lot of money to their various campaigns, a story and picture with a constituent does look good in the campaign. If they know you are passionate about the cause, they can expect that you will campaign for the cause and mention that the member introduced the bill. It makes for good press coverage for a congress whose approval ratings are worse than horrible.

Once you convince a member of congress to submit the bill and get the member’s support, a professional legislative affairs person would know how to convince other members to sign up as co-sponsors. While having a lot of co-sponsors does not guarantee success, it helps with the bill’s awareness and make it more attractive to pass.

There are other political maneuvers that can be used to have the bill passed, such as convincing a member to bring up the bill under a procedure called “suspension of the rules.” In the House of Representatives, a bill brought to a floor vote under the suspension of the rules are usually non-controversial measures that have no objections—or no objections that would be voiced on the floor. The bill would then pass by unanimous consent or a voice vote.

The procedure is similar in the Senate.

Once the bill passes one chamber, it is sent to the other for it to work on passage.

House of Representatives

House of Representatives

Since commemorative coin bills are considered “money bills” and the constitution requires all money bills to begin in the House of Representatives, it is likely better for the bill to be submitted to the House first. A companion bill may be submitted to the Senate with the same wording but it is not necessary. The only reason to submit a bill like this in the Senate first is when there is no support in the House and you hope to gain support before the session ends on January 2, 2015.

While the bill is in congress it does not mean you have to sit on your hands and wait. One of the best things you can do is to tell your friends, relatives, and anyone else who will listen to call or email their representative to support the bill. If they are not a co-sponsor, tell their staff that they member should be and why. If they are a co-sponsor, thank them for their support and ask if they could get other members signed on as co-sponsors. If you can find people whose representatives are a member of the House Financial Services Committee or the Senate Banking Committee, then they should modify their support by saying to please help get the bill passed through the committee.

The United States Senate

The World’s Most Deliberative Body, the United States Senate

If the bill is passed and sent to the other chamber, the work starts again. If the bill is in the Senate, you have to remember it is not called the ’world’s most deliberative body” for nothing. Unless there is an impending disaster or something politically charged, a bill in the Senate would lose a race with the tortoise and a glacier!

But that does not mean to stop your efforts. Citizen lobbying efforts in the Senate are doubled because each state has two senators. Make sure you and your supporters contact both of your senators. Remember, it is your right as a citizen to meet with your representatives and this includes senators. You can make an appointment to let your senators know how your feel. If your senator is a member of the Senate Banking Committee, then they should be asked to help move the bill out of committee and to the floor for a vote.

The work is not done until the bill is passed or congress is adjourned for the last time on January 2, 2015. Bills not acted upon when congress adjourns for the last time in the session will be considered to have “died in committee.” If the bill dies in committee, you can do this all over again and try to convince a member of congress to submit the bill in the 114th congress that would open its session at noon on January 3, 2015.

If the bill passes both chambers it is likely it will be signed by the president. As far as I know there has never been a commemorative coin bill to have been vetoed by any president.

Although there are a lot of good ideas, many of them are not properly introduced to congress. The few that do make it do not receive enough support to move beyond introduction. Even fewer are passed by one chamber and not both. Those that make it past congress to the president’s desk had some effort behind them besides being just a good idea. After all, with only two commemorative coin programs allowed per year, congress has to be convinced to believe your commemorative idea is better than another for that same year.

Sausage anyone?

Baseball Hall of Fame Commemorative coin courtesy of the U.S. Mint.
Images of congress and the capitol courtesy of the Architect of the Capitol.
Image from School House Rock’s “I’m Just a Bill” can be found all over the interwebs.

Seven score and a decade ago

Thursday, November 19, 1863, at the dedication of the Soldier’s National Cemetery in Gettysburg, Pennsylvania, following the the two-hour speech by Edward Everett, President Abraham Lincoln gave short, yet profound address:

Fourscore and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war, testing whether that nation or any nation so conceived and so dedicated can long endure. We are met on a great battlefield of that war. We have come to dedicate a portion of that field as a final resting-place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this. But in a larger sense, we cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead who struggled here have consecrated it far above our poor power to add or detract.

The world will little note nor long remember what we say here, but it can never forget what they did here. It is for us the living rather to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us—that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion—that we here highly resolve that these dead shall not have died in vain, that this nation under God shall have a new birth of freedom, and that government of the people, by the people, for the people shall not perish from the earth.

Obverse of the 2009 Abraham Lincoln Commemorative proof coin

Obverse of the 2009 Abraham Lincoln Commemorative proof coin

Ironically, everyone was not enamored with Lincoln’s brief speech. The Patriot-News of Harrisburg, Pennsylvania did not like the speech. In an editorial published a week after the speech on Tuesday, November 24, 1863, The Patriot-News editorial board added the following paragraph about the ceremony:

We pass over the silly remarks of the President. For the credit of the nation we are willing that the veil of oblivion shall be dropped over them, and that they shall be no more repeated or thought of.

On November 14, 2013, almost 150 years later, The Patriot-News published a retraction to their editorial:

In the editorial about President Abraham Lincoln’s speech delivered Nov. 19, 1863, in Gettysburg, the Patriot & Union failed to recognize its momentous importance, timeless eloquence, and lasting significance. The Patriot-News regrets the error.
Obverse of the 2013-S Lincoln proof cent. Lincoln's portrait, designed by Victor D. Brenner in 1909,  is the longest running design of any United States coin.

Obverse of the 2013-S Lincoln proof cent. Lincoln’s portrait, designed by Victor D. Brenner in 1909, is the longest running design of any United States coin.

Coin images courtesy of the U.S. Mint.

11/11/2013

2013 Five-Star Generals Commemorative Coins

To us in America, the reflections of Armistice Day will be filled with solemn pride in the heroism of those who died in the country’s service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of the nations.
—U.S. President Woodrow Wilson proclaiming November 11, 1919 the national holiday Armistice Day

To all that have served…
To all that have given the ultimate sacrifice…
To the families of these honored service members…
THANK YOU!

Veterans Day 2013

Kids can do the best work

Last week, the U.S. Mint announced the winners of the Kid’s Baseball Coin Design Challenge from their website and on YouTube. The announcement was made by U.S. Treasurer Rosie Rios, who has been the most active Treasurer with the collector community.

Since children 13 and under were not allowed to compete for the National Baseball Hall of Fame commemorative coin, a program was set up to allow youngsters to participate. Here is the announcement video from Treasurer Rios:

Frankly, forgetting the fact that these are children and their drawing is not refined, some of these kids had better concepts for coins than some of the adults. Considering the winner of the adult contest was a college student (or a recent graduate) maybe younger designers are the future of coin design. Judge for yourself, here are the three winners of each age group:

I wonder if the winners could be introduced to Heidi Wastweet, medal artist who is also a member of the Citizens Coinage Advisory Committee. I visit her website to admire Wastweet’s work and wonder why she’s on the CCAC and not designing coins and medals for the U.S. Mint. Can you imagine if any of these kids can get lessons from Wastweet? We would be looking at great future for coin design if this could happen.

One can only dream.

Winning coin images courtesy of the U.S. Mint.

Play Ball!

After canceling the announcement of the winning design for the 2014 Baseball Hall of Fame Commemorative Coin competition because of the government shutdown, the U.S. Mint posted the information on their website yesterday with little fanfare.

Cassie McFarland

Cassie McFarland

The winning design was submitted by Cassie McFarland of San Luis Obispo, California. McFarland, who is from the Sacramento area, holds a Bachelor of Fine Arts degree from California Polytechnic State University told The Sacramento Bee that she stumbled upon the competition while researching coins for another art project. McFarland found the U.S. Mint’s call for design two days before the deadline and submitted a drawing.

Winning design for the obverse of the 2014 Baseball Hall of Fame commemorative

Winning design for the obverse of the 2014 Baseball Hall of Fame commemorative

Reverse design of the 2014 Baseball Hall of Fame commemorative

Reverse design of the 2014 Baseball Hall of Fame commemorative

In sperate meetings, the U.S. Commission of Fine Arts and Citizens Coinage Advisory Committee both recommended McFarland’s design for the coin. These recommendations were forwarded to Secretary of the Treasury Jacob “Jack” Lew for the final decision. It is being reported that the selection was made on September 4, 2013.

The baseball glove that inspired Cassie McFarland's winning entry.

The baseball glove that inspired Cassie McFarland’s winning entry.

For submitting the winning design, McFarland will receive $5,000 as authorized by the “National Baseball Hall of Fame Commemorative Coin Act” (Public Law 112-152 [PDF] Section 4(c)(4)). McFarland’s prize will be included in the price of the coins as per the requirements of the law.

U.S. Mint Sculptor-Engraver Don Everhart will do the engraving of McFarland’s winning design. Everhart created the reverse design.

Originally, the U.S. Mint had scheduled this announcement at the capital on October 8, 2013. The event was cancelled because of the shutdown of the government. Even though the U.S. Mint is fully operational because it is funded by the seignorage earned by the sales of the coins it produces, support services necessary for the U.S. Mint to make the announcement elsewhere were not available. A local suggestion to hold a ceremony at Nationals Park was quickly discounted since security services could not support the event. Remember, the Washington, D.C. budget is held hostage by congress because of antediluvian laws preventing the United States citizens living in the nation’s capital from governing themselves.

This was not my favorite design. My favorite was “The Big Three,” an image of a left-handed better swinging at a pitch with the catcher ready to catch the ball and the umpire behind him. In fact, I though could be improved, so I did a mock-up of “The Big Three” portrait with the elements around the image from the coin “The proud American classic” to come up with something I liked better.

Candidate Design: The Big Three

Candidate Design: The Big Three

Candidate design: The Proud American Classic

Candidate design: The Proud American Classic

My idea combining design elements from two of the design candidates.

My idea combining design elements from two of the design candidates.

Admittedly, McFarland’s design works better on the curved coin where other designs would look better on a flat coin. While the renderings makes the coins intriguing, it will be interesting to see how the coin looks in hand. Hopefully, the government will be open for the launch ceremony which is likely to be held at the National Baseball Hall of Fame and Museum.

All images courtesy of the U.S. Mint. To use the images, the U.S. Mint requires the following statement: The images of the coins shown are line art renderings, and not photography of the coins. The illustrations are not actual size or in proportion. The appearance of the coins may have minor differences due to the coin production processes.

Summary of September coin-related legislation

H.R. 3146: Savings, Accountability, Value, and Efficiency (SAVE) II Act
Sponsor: Rep. Patrick Murphy (D-FL)
• To take steps to reduce the deficit of the Federal Government.
• Sec. 8. Prohibition On Non-Cost Effective Minting and Printing Of Coins and Currency
• Introduced: September 18, 2013
• Referred to many committees including the Committee on Ways and Means

Track this bill at http://www.govtrack.us/congress/bills/113/hr3146

H.R. 3186: Hank Aaron Congressional Gold Medal Act
Sponsor: Rep. Ron Kind (D-WI)
• To award a Congressional Gold Medal to Hank Aaron, in recognition of his contributions to the national pastime of baseball and his perseverance in overcoming discrimination and adversity to become a role model for all Americans.
• Introduced: September 26, 2013
• Referred to the House Financial Services Committee

Track this bill at http://www.govtrack.us/congress/bills/113/hr3186

I usually do not include bill for congressional gold medals. As a fan of Hank Aaron, I am including it to show my support. If congress should ever get its act together, it would be nice if they would immediately pass this by unanimous consent.

Twelve years ago

Twelve years ago, I was a few miles away from the Pentagon when a plane crashed into its side. I remember driving to work hearing about the plan crashes in New York originally thinking that what I predicted many years ago finally came true, a small plane crashed into the World Trade Center. The reports turned grim as I kept driving toward my office.

When I arrived, I sat in the car a while listening to the radio and trying to call friends I knew who worked in lower Manhattan. I remember one was working in the World Financial Center across the street from the Twin Towers. I later found out that he had taken a job on the other side of the river in New Jersey a year earlier.

Another friend was working in 6 WTC, a 40 story building next to 2 WTC or Tower 2. Thankfully, he and his coworkers were able to escape before the second tower collapsed onto that building.

Just after the plane crashed into the Pentagon we were sent home.

I came home to the empty house my late first wife and I bought. She had died five months earlier and this time, the quiet of the house was deafening. I tuned on the television just before the second tower collapsed.

Although it was twelve years ago, I remember the day like it happened yesterday. Those who were around when President Kennedy was assassinated say the same thing about that day. It is difficult to forget these traumatic events, which is good. We should not only remember them but remember what happened after in order to do better next time. We need to learn from history rather than repeat it.

Medal images and descriptions courtesy of the U.S. Mint.

Summary of July 2013 Coin-Related Legislation

H.R. 2633: Thirteenth Amendment Commemorative Coin Act
Sponsor: Rep. Danny Davis (D-IL)
• To require the Treasury to mint coins in commemoration of the Sesquicentennial Anniversary of the adoption of the Thirteenth Amendment to the United States Constitution, which officially marked the abolishment of slavery in the United States.
• Introduced: July 9, 2013
• Referred to the House Committee on Financial Services

Track this bill at http://www.govtrack.us/congress/bills/113/hr2633

H.R. 2754: Collectible Coin Protection Act
Sponsor: Rep. George “G.K.” Butterfield, Jr. (D-NC)
• To amend the Hobby Protection Act to make unlawful the provision of assistance or support in violation of that Act
• Introduced: Jul 19, 2013; Referred to House Energy and Commerce Committee
• Passed in the House of Representatives: Jul 30, 2013 (voice vote)
• Received in the Senate: July 31, 2013; Referred to Senate Committee on Commerce, Science, and Transportation

Track this bill at http://www.govtrack.us/congress/bills/113/hr2754

H.R. 2760: Panama Canal and Pan-Pacific Exhibition Centennial Celebration Act
Sponsor: Rep. Nancy Pelosi (D-CA)
• To require the Secretary of the Treasury to mint coins in commemoration of the centennial of the Panama-Pacific International Exposition and the Panama Canal
• Introduced: July 19, 2013
• Referred to the House Committee on Financial Services

Track this bill at http://www.govtrack.us/congress/bills/113/hr2760

Can we fix the U.S. Mint?

United States MintLast March, three members of the Citizens Coinage Advisory Committee met with Rep. Andy Barr (R-KY), a freshman member of the House Financial Services Committee that oversees the U.S. Mint, to pitch the idea of Liberty-themed coins.

Initially, the proposal was to issue a series of Liberty-themed coins for the five silver-colored circulating coins but dropped the 5-cent coins after Barr said that there must be no cost to the taxpayer. Currently, the U.S. Mint reports that it costs 10.9-cents to produce the Jefferson nickel and was removed from discussion. What the politicians fail to grasp is that coin production does not cost the U.S. taxpayer anything because all of the money used to operate the U.S. Mint comes from the seigniorage collected on all coins, commemoratives, and tokens sold including circulating coinage to the Federal Reserve. Since the Federal Reserve does not use taxpayer money in its operation, the purchase of circulating coins generates a profit for the government.

Although removing the 5-cent coins from consideration is a wise political move, it demonstrates the illogic and dysfunction of the politics. It also illustrates why the current system of how congress controls the U.S. Mint is unsustainable and needs to be changed.

No other mint in the world is under the same legislative control as the U.S. Mint. Every other major mint are autonomous entities running under the authority of the government required to produce circulating coinage for the country’s central bank and must obtain approval from the central bank to create any legal tender coin. A government can decide that it should produce certain denomination or stop producing a denomination and the autonomous entity must comply.

People who want to discontinue the use and production of the one-cent coin looks to Canada as an example of how a country to stop producing their lowest denomination and be successful. While it is too soon to judge the success and failure of this move, what is lost on people is how the Royal Canadian Mint, a Crown corporation of Canada, is required to comply with the laws passed by the Canadian Parliament. If the Canadian Parliament passes a law that says the Royal Canadian Mint is not to produce any more one-cent coins, than the Royal Canadian Mint does not produce one-cent coins.

The 2004 Poppy Quarter was the Royal Canadian Mint’s first colorized circulating coin.

The 2004 Poppy Quarter was the Royal Canadian Mint’s first colorized circulating coin.

While parliament does prescribe that certain coins be made, the Royal Canadian Mint is free to produce coins of its own designs to sell to the public. They work with the Bank of Canada on the approval of designs and the Bank of Canada allows the Royal Canadian Mint to strike coins with a denomination so that these have legal tender status. Most of these coins are bullion and non-circulating legal tender (NCLT) issues sold to investors and collectors for the sole purpose of generating revenues (seigniorage).

Nearly every mint operates in the same manner. while the Royal Mint is more conservative in their issues, the Perth Mint, the Mint of Poland, and Austrian Mint operate in a similar manner.

Some countries do not operate a mint even as a public corporation. Countries like Niue, Somalia, and Isle of Man that have produced popular NCLT issues contract their minting to other mints, such as the New Zealand Mint, or to private corporations like the family-owned Pobjoy Mint. Even the government of Israel thought it was best to privatize their mint. After being established in 1958 by then Prime Minister David Ben-Gurion, the Israel Coins & Medals Corp was privatized and sold in 2008 where they continue to operate under the authority of the Israeli government and the Bank of Israel.

2007 Somalia Motorcycle Non-circulating Legal Tender Coins

2007 Somalia Motorcycle Non-circulating Legal Tender Coins

Although it could be successfully argued that some of the mints have gone overboard with their bullion and NCLT programs like the Royal Canadian Mint and Perth Mints, it could also be noted that other mints have show great constraint in what they have produced. An example of showing restraint would be the Britain’s Royal Mint and Australian Mint who have concentrated on producing quality and not quantity. These are all models to learn from for the future.

Those who would be against privatizing the U.S. Mint immediately point to Article I, Section 8 of the U.S. Constitution that says “The Congress shall have Power… To coin Money, regulate the Value thereof,” as the reason not to privatize the U.S. Mint. While the Constitution gives congress this authority, it does not say that the government has to own the means of production nor does it say that congress has to dictate the design of that money. In its most basic term, “to coin money” means to authorize production of and make legal tender of coins used in commerce (for a full description based on case law, see this section).

2013 Niue Monopoly Coins struck by the New Zealand Mint. Is this too much?

2013 Niue Monopoly Coins struck by the New Zealand Mint. Is this too much?

An argument used against privatizing the U.S. Mint is to compare what could happen to the U.S. Postal Service. However, the Postal Service is not a government-owned corporation. According to 39 U.S.C. § 201, it is “an independent establishment of the executive branch of the Government of the United States.” While it has many independent powers, it still regulated by congress and subject to insipid rules no private company could ever meet.

In a huff, those who argue against government-owned corporation point to Freddie Mac and Fannie Mae as examples of the dangers of making critical government functions private. Unfortunately, these people are reading the headlines and not the reasons for Freddie and Fannie’s problems caused by the recent fiscal crisis. While both companies can be blamed for their parts in the failure of the markets, a lot of their blame can be traced to the laws that congress passed giving them a complicated deregulated environment from which to try to accomplish their goals. Rather than find a way to fix the issues, congress wants to end the programs Freddie and Fannie support and close those entities even though new regulations have been working.

The problem with making the U.S. Mint a government-owned corporation would be the 535 member board of directors (congress) whose knowledge of what it would take to do this right is suspect. This is the same congress that has forced the Postal Service to over pay into its pension fund while forgetting that it has to the power “to pay the Debts and provide for the common Defence and general Welfare of the United States” by shutting down the government or preventing the payment of debt by manipulating the artificial debt ceiling.

It would be possible to make the U.S. Mint a government-owned corporation using the lessons learned from the governance of the Postal Service, Fannie Mae, Freddie Mac, and any number of other world mints. A charter would be established to make the government-owned Mint corporation the sole provider of circulating coins to the federal reserve and that its operations would be managed by a board with representation from the executive branch, legislative branch, and the Federal Reserve. The board would have oversight power over the Mint corporation and work within the parameters set up by the charter.

Provisions of the charter would be that congress would regulate coinage in that nearly every part of 31 U.S.C. § 5112 would be eliminated except for paragraph (a) that describes the denominations and their size specifications. All laws regarding weights, composition, and design with the exception of the first sentence of paragraph (d), would be eliminated.

2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.

2013 American Eagle West Point Two-Coin Silver Set with reverse proof and enhanced uncirculated coins.

So that coin series are maintained, all current programs like the American Eagle, Presidential dollar, National Parks quarters, and Native American dollars would be maintained until they are completed as described in the current law.

A new charter would allow congress to designate two commemorative coins per year with a surcharge to be paid to an organization as it does today, but the Mint corporation could create additional non-circulating legal tender coins with its own designs that are made legal tender by following the specifications of the law (e.g., 31 U.S.C. § 5112(a)(10) allows for “A five dollar gold coin that is 16.5 millimeters in diameter, weighs 3.393 grams, and contains one-tenth troy ounce of fine gold.”) and approved by the design board, the Mint charter board, and the Federal Reserve.

The design board would be the Citizens Coinage Advisory Committee. Rather than have two design groups, one that whose purpose outside of reviewing coins is to review architecture, only the CCAC would continue as the approved design board. This way, the Mint corporation would have artistic oversight by a dedicated organization and not have to worry about whether the U.S. Commission of Fine Arts, whose purpose is to oversee the architecture of Washington, understands design and the issues with striking those designs.

We should keep the 24-karat gold Buffalo coins, too!

We should keep the 24-karat gold Buffalo coins, too!

This charter can be written in a way to create a special inspector general that would work with the Department of the Treasury to help the executive branch maintain oversight over the new corporation.

Freeing the U.S. Mint to be more autonomous and provide them the ability to create new products will not cost the taxpayer anything. In fact, it has the potential for the new corporation to earn more than it does now with new products on the market because if you notice, I never said to get rid of the U.S. Mint Public Enterprise Fund (31 U.S.C. § 5136). On the contrary, the new Mint corporation should be required to set an operations budget and leave the budget plus 25-percent in the Public Enterprise Fund for emergencies. The rest should be deposited in the account of the company’s shareholders: the General Treasury of the United States of America.

In this scenario, it will not matter that it costs more than face value to manufacture the cent and 5-cent coins. The losses can be made up by selling other products to a world that trusts the U.S. Mint—a world that buys more bullion and collectibles from the U.S. Mint than any other country. Imagine how much the new Mint corporation could help reduce the deficit if allowed to be run more like a commercial enterprise than an over regulated government agency.

If it is said that the private sector can do better than the government, here is one way to put that rhetoric to a test!

Today’s Poll

What do you think? In addition to writing a comment below, how about participating in a poll. Do you think that the U.S. Mint should become a government-owned corporation?

Should the U.S. Mint become a government-owned corporation?







View Results

Loading ... Loading ...
U.S. Mint logo courtesy of the U.S. Mint.
Image of the 2004 Canadian Poppy Quarter courtesy of Talisman Coins.
2013 Niue Monopoly Coin images courtesy of the New Zealand Mint.
All other images are property of the author.

Pin It on Pinterest