Numismatic Topic In 1934

[leeg]

Something to get our Numismatic minds thinking:

 

Resolution Regarding Commemorative Coins

The following resolution was passed at a meeting of the Heart of America Numismatic Association, Kansas City, Mo., at its meeting October 8, 1934:

 

"Resolved, That any organization contracting with the Government for the issuance of commemorative coins should be compelled by the government to offer the coins for sale on the open market to the general public at an agreed stipulated price; that no such organization should be permitted to favor any one or more particular dealers by allotting them an unusally large number of coins, thus enabling them to charge an excessive price to the coin collectors; that such organization should be pemitted to sell not to exceed ten coins to any one individual and not more than one hundred coins to any one firm or corporation, whether coin dealers or not; that the President of the Ameican Numismatic Association, through that organization, should take the matter up with the Government for the purpose of having proper safeguards to the buying public placed in all future contracts for commemorative coins." (The Numismatist, November, 1934)

 

 

Any thoughts on why they felt the need to do this?

[Scott Gardener-migration]

Too bad the America the Beautiful 5 oz. bullion coins aren't being held to the same standard. The Mint sold them only to a handful of distributors, who in turn cranked up the price, making them hit the market already in a price bubble.

[physics-fan3.14]

As we recently saw with the ATB fiasco, I think its pretty clear why they wanted to push for this.

[cpm9ball]

 

 

Any thoughts on why they felt the need to to this?

 

Greed knows no boundaries of time and space!

 

Chris

[leeg]

Thanks for sharing.

 

 

At its August meeting the Bronx Coin Club (New York City) passed a resolution opposing the issuing of any more Oregon Trail commemorative half dollars unless a change was made on either the obverse or reverse. (There have been four issues of these coins, dated 1926, 1928, 1933 and 1934.)

 

At its October meeting the Heart of America Numismatic Association (Kansas City) passed a resolution condemning the practice of organizations for whose account commemorative coins are struck in placing an unusually large number of any issue in the hands of any one dealer. The resolution urged that certain restrictions be placed on the sale of such coins, and that the American Numismatic Association take up the matter with the Government.

 

Following this suggestion, Nelson T. Thorson, President of the ANA sent the following letter to the Director of the Mint:

 

October 13, 1934

 

The Honorable Director of the Mint, U.S.A.,

Washington, D. C.

 

Honorable Sir,

May we take this opportunity of calling to your attention a matter pertaining to coin collectors of commemorative half dollars.

 

Sincere protests and complaints have come to our attention regarding the monopoly, or rather exclusive acquisition, of the late commemorative isues by others than the original association for which they were struck. We appreciate that business is involved to make the transaction profitable to a third party. However, the objection seems to center on the fact that the mint sells the coins to the memorial association for 50 cents. The association, in turn, sells it for $1. At this point the collectors wish to have the privilege of acquiring the coin at $1, as intended, and no more.

 

We object to the issuing association disposing of the entire output to a third party, which is disposed to advance the price to $2.50, or over double that amount, at the expense of collectors, and no doubt contrary to all good intentions.

 

Thanking you in advance for your opinion on this matter, that we may with intelligence answer further complaints.

 

Very truly yours,

 

Nelson T. Thorson,

President of the ANA

 

"The Numismatist," December, 1934

[leeg]

To this letter the following reply was received by the Acting Director of the Mint:

 

October 18, 1934

 

Dear Sir,

Receipt is acknowledgeed of your letter of October 13th, relative to the purchase of commemorative coins.

 

The acts passed authorizing the issue of commemorative coins provide, as you are aware, that the coins shall be paid upon the request of the organization bringing about the legislation. These coins are turned over at face value to the agent named in the act or to the agent named by the association to which the act directed the coins should be delivered.

 

These coins have face value in circulation and are carried on the books of the Treasury as any other coins are so far as their face value is concerned. We have no jurisdiction over the rates charged for these coins once they are delivered to the agency authorized to receive them.

 

Very truly yours,

M.M. O'Reilly

Acting Director of the Mint

 

 

[BillJones]

Any thoughts on why they felt the need to do this?

 

Back in the 1930s the organizations that were fortunate enough to get a commemorative half dollar made for their fund raisers were very prone to playing games with the distribution to get high, unfair prices. For example the Hudson, Cincinnitti and Oregon Trail coins all had scandals connected with their distribtution, they were far from the only ones.

 

Gatta run to the Baltimore show, but check any of the newer books on commemorative coins, you will know what I mean.