What Do You Consider to Be the Most Important US Coin-Related Legislation?

[astrostu]

I'm thinking of adding some important legislation to my Timeline of US Coins, but I'm not really sure what to consider as the most important ones. My impression is that coins weren't very regulated until very recently, and so it's somewhat easier to point out important legislation before, say, 1950.

 

Anyway, what would you consider the most important coin-related legislation for me to fit onto my Timeline?

[World Colonial]

Here some events that I consider relatively imporatant though I know nothing about the legislation behind these decisions. I only assume that there is any.

 

The removal of legal tender status for foreign coins which ended in 1857;

The creation of the clad coinage in 1965;

The end of the gold standard in 1933;

The creation of the various mints;

The authorization of the Columbus half dollar as the first classic commemorative;

 

 

These are probably obvious but I believe them to be among the most significant.

[RWB]

Coinage act of 1965, and coinage act of 1873

[TomB]

Establishment of the first US Mint.

[GAB]

Undoubtedly Andrew Jacksons order that all banks had to have enough silver and gold

on hand to cover their paper. That's probably why we have so many nice CBH's still today!

I am not sure which year that law was made, but it was the during his tenure.

[jgrinz]

Bland - Allison 1878 ( arrgghhh )

[BillJones]

Undoubtedly Andrew Jacksons order that all banks had to have enough silver and gold

on hand to cover their paper. That's probably why we have so many nice CBH's still today!

I am not sure which year that law was made, but it was the during his tenure.

 

I don't recall that Andrew Jackson ever issued that order. He did require that purchases of western lands that were owned by the Federal Government had to be made with gold or silver. That caused a lot of hard currency to flow out of the eastern states and into the west, which made the Panic of 1837 worse.

 

Still, there were no reserve requirements for the state chartered banks, at least on the Federal level, when it came to the currency the banks issued. This situation would destabilize the U.S. economy for many years. It only got better when the Lincoln Administration introduced national bank notes during the Civil War. Subsequently a 10% tax was placed upon privately issued bank notes, which effectively ended their use.

 

As for the most important coinage acts, aside from the Coinage Act of 1792, which started it all, others in my view would be the Coinage Acts of 1873 and 1965, and FDR's gold surrender order. FDR's gold surrender order REALLY got The United States off the gold standard because U.S. citizens could only own the metal under special circumstances. For better and for worse that’s where our monetary system is today.

 

[World Colonial]

FDR's gold surrender order REALLY got The United States off the gold standard because U.S. citizens could only own the metal under special circumstances. For better and for worse that’s where our monetary system is today.

 

Its unquestionably for worse except to the proponent's of the existing "system". That's why the USD has lost 95% of its purchasing power and what made this recent disaster possible. The recent collapse has made the false debt based prosperity obvious as the blatant lie that it always was. Without going off the gold standard, it would have been impossible to blow a credit bubble to such stupendous hights. It would have collapsed long ago just as it did in the Great Depressionand in other economic contractions before it.

[BillJones]

Without getting into an argument, the problem with the modern monetary system, which is no longer constrained by the superficial appeal of the gold standard, lies in the application of policy. If the leadership of the capitalist world had listened to the teachings of economists like Milton Friedman instead of siren song of Karl Max we would not be in the position where we are now.

[astrostu]

Please do not start to debate politics here or the lack of a gold standard in our currency. I don't care about that here. Go somewhere else to argue that stuff. I just want to know what you consider the major legislation.

[BillJones]

Please do not start to debate politics here or the lack of a gold standard in our currency. I don't care about that here. Go somewhere else to argue that stuff. I just want to know what you consider the major legislation.

 

 

This post is out of line. No one said anything about politics here. History has shown us that there have been mistakes with respect to monetary policy not only in the U.S. but many other countries though out the world. If you can’t discuss history here, then this site will be of little use.

 

If you want to be a censor, get a job across the street. They have some real pips over there who have done more than their share to make that site less than enjoyable.

 

[astrostu]

Bill - I'm not being a censor on this forum. I explicitly stated that I was interested in coin legislation. In other words, "Just the facts, please!" I have been on these boards long enough to know that many members are fairly conservative and will jump at opportunities to discuss the merits of certain political decisions. I know that many forum members posted several months ago that they were afraid Obama would repeat FDR's move to prohibit private ownership of gold - there were many threads about that.

 

But on this thread, I don't care about that. World Colonial's post had nothing to do with what coin legislation he considered important, it had to do with his views on what has happened as a result of some coin legislation. And I was afraid that his comment would spur a large digression into inflation and monetary policy, and, to be frank, your post that was made JUST BEFORE I made mine somewhat confirmed that worry.

 

Hence I made my post to request people just stick to important coin legislation on this thread, and hold the debates for another thread. I don't want to wade through a debate here when I asked a very pointed question.

[BillJones]

The 1933 gold surrender order was a major piece of coin legislation. It resulted in the massive melt of millions of collector gold coins. Its influence remains today over the issue of those 1933 double eagles that are now on so many collectors’ minds. It prevented the coinage any commemorative gold coins for almost 50 years. A part of that resulted in a less than spectacular set that commemorated our country’s Bicentennial in 1975-6. All of these events had an impact on coin collectors.

 

FDR issued the order for three major reasons. First he wanted people to “spend the money that they were hiding under their mattresses” to get the economy moving. Second he wanted to de-value the dollar, which would make U.S. exports more attractive. Third he wanted to expand the money supply which would result in higher prices and he hoped increased economic activity. That was the reason why he set the gold value at the then unreasonable high price of $35.00 an ounce. FDR did not want those who were holding gold to gain a windfall profit from that artificial gold price increase. For a variety of reasons, FDR’s plan did not work. World War II, not the New Deal, ended The Great Depression. Those are FACTS, not speculation or a political position. Even historians who love FDR admit that.

 

If you are going to pose a question about the significance of coinage legislation, you can expect an analysis and statement of why people took that position. That was the way I answered essay questions when I took history and economics in college. Those who were unable to answer them that way got the low grades. Examining these issues in a way that goes beyond time lines requires something more than a sterile list of facts. And the line between "facts" and "opinion" is not nearly as well defined as you seem to think it is.

 

[Revenant]

I'm with Bill on this one.

[physics-fan3.14]

Obviously, the 1933 gold act mentioned above is very important. I would definitely include the Crime of 1873, and the removal of silver in 1965. Don't know which legistlation it was, but the one where they required "In God We Trust" is important.

[BillJones]

Don't know which legistlation it was, but the one where they required "In God We Trust" is important.

 

I'm not sure when Congress REALLY put the hammer down on that one, but they forced the issue in 1908 after Teddy Roosevelt preferred that it was omitted on his “pet crime” St. Gaudens gold coins. Roosevelt thought that is was blasphemy to name the deity on coinage because coins could be used for “immoral purposes” like gambling.

 

Mid way though 1908 “In God we trust was added” to the Indian $10 and St. Gaudens $20 gold. It also was added to the original design of the Lincoln cent. Patterns of that coin did not have the motto running above Lincoln’s head. For whatever reason the Buffalo nickel escaped the requirement, but that was the last coin to go “godless.”

 

[Jeffrey Cardona]

I think small...1982...beginning year of the modern commemoratives...I love those coins! (thumbs u

 

Just my humble opinion.

[RWB]

Re: Undoubtedly Andrew Jacksons order that all banks had to have enough silver and gold on hand to cover their paper. That's probably why we have so many nice CBH's still today! I am not sure which year that law was made, but it was the during his tenure.

 

There was no such executive order or law. Jackson’s policies were the direct cause of the Panic of 1837.

 

Re: 1933.

The Thomas Amendment delegated certain additional powers to the executive, put the primary pieces of numismatic-related legislation were the Gold Reserve Act of 1934 and the Silver Purchase Act. These nationalized the respective metals and continued President Roosevelt’s authority to set above-market prices for metal purchases.

 

Re: Religious motto

IGWT was not required on the cent or nickel, but mint director Leach added it to fill the space above Lincoln's head., when the bust was lowered on the tondo.

 

[GAB]

There was no such executive order or law. Jackson’s policies were the direct cause of the Panic of 1837.

 

After reading up on my history "facts", you are right, there was not any such law.

I was thinking about the Species Circular, issued in 1836 stating that the government could only accept gold or silver for land sales. (Many would argue the cause of the panic of 1837, just as they will argue the cause of the panic of 2008!)

Though technically there was no legislation, one big result of Jackson's "species doctrine"

was that tons of capped bust halves were made, bagged and stored in the banks for many years - much to the delight of thousands of CBH enthusiasts today! (thumbs u