Mint Bureau pulled rare coins from coins turned in - 1935

[RWB]

Excerpt from instructions by Mint Director Ross to the mints.

 

 

The Mints actively looked for rare and unusual gold coins that were sent to them by the FRBs in the 1930s. The coins were used in FRB coin and currency displays, and in the National Collection.

 

There is nothing to suggest that the coins already in mint custody were examined or retained.

 

{An article on this subject is being prepared.]

[KeyMan64]

Interesting find. More than 2 years had passed from the initial declaration though and all gold was supposed to be turned in by May 1, 1933 I think. Most was missed certainly and of course many people did not abide by the order thankfully.

[RWB]

Reviewing of coins did not begin until early 1935. The coins came from FRBs most of which held the coins until 1934 or later. (Reviewing was normal for all gold coming from outside the mints. The coins were quickly checked for excess wear and authenticity. Here, Ross adds a check for unusual coins and pieces of pre-Saint-Gaudens types. Mints had commercial coin premium lists available.)

[DWLange]

I wonder if the mints had coin boards to fill.

[johnny9434]

wow, thats an interesting find for sure.

[RWB]

From the other materials located, it appears they could have filled quite a few coin boards....all the way from 1799....

[BillJones]

In what might be an urban legend, it was claimed that a mint employee spotted Pan-Pac $50 gold among a group of gold pieces that were headed for the "Fort Knox gold bar holocaust."

[RWB]

There are no PPIE $50 slugs on any of the lists. But there are USAOG $20s, Kellog & Co $20s, several $50s, and many scarce dates in the 1850s and 60s - all mints. Also 1801,1803, 1808 $5 and more California gold.

[tommy44]

Read about how Karl Stecher Jr. pulled coins from the "gold room" of the C&S Bank in Atlanta at the following link.....

 

http://www.coinraritiesonline.com/index.php?page=search&task=det_item&item_id=667

[KeyMan64]

Read about how Karl Stecher Jr. pulled coins from the "gold room" of the C&S Bank in Atlanta at the following link.....

 

http://www.coinraritiesonline.com/index.php?page=search&task=det_item&item_id=667

Wow.

[leeg]

Very nice find Roger.

 

 

(thumbs u

[RWB]

Nice story, but I'm skeptical that many rare gold coins came through a relatively small southern bank. Commercial bankers were "scared shi*less" (to quote a Breen phrase) that Treasury would close them down for the most minor infraction. Of course, the story helps sell the coin and would be difficult and of little value to disprove.

 

There are other tales of FRB or Mint employees exchanging special gold coins after April 1933, but not one fits the details of how the coins were accepted and reviewed, or tracked internally.

[Conder101]

I wonder if the mints had coin boards to fill.

Sure, they used them for counting.

[WoodenJefferson]

About the Karl Stecher Jr. story...I find it odd that he only had to pay 'face value' for the US gold minted coins as I was told, that during that era of the gold forfeiture, there were representatives from the government at major banks redeeming the gold for like $33 per oz. (well above face value) and paying in certificate of deposits, not cash for large amounts.

[RWB]

What is the source of the "redeeming gold for $33 per oz" story?

 

All gold coins were paid for at $20.67 (face value) when they were delivered to banks. After September, when the Treasury began setting market prices, all gold brought to mints was paid at the market rate -- certainly not $33 -- but internal to banking the face value prevailed. (Everything turned in to banks was handled at face value. Only after Treasury accepted it was the market value increment applied in Feb 1 1934.)

 

Treasury tracking was by denomination and count. During review by the mints, lightweight and damaged coins were pulled and the shipping bank was credited only for weight of gold @$20.67 not face value. (This was normal procedure in use for decades.)

 

I suspect that most of the stories are fact-less concoctions. All that I have heard ignore actual operations of banks, FRBs and mints.

 

****

To be clear, after Sept. gold taken directly to the mints was paid at 20.67 until Feb 1, 1934 when $35 was the fixed price. However, if the same gold were taken to a licensed gold dealer, they paid close to market price because they were allowed to resell to the Government at market price.

[tommy44]

One of the highlights of the Stecher collection sale that was purchased at face value according to his records.....

 

http://coins.ha.com/itm/three-dollar-gold-pieces/three-and-four-dollar-gold/1879-3-pr63-cameo-pcgs-the-guide-book-reports-a-proof-mintage-of-just-30-pieces-for-the-1879-this-figure-is-much-sma/a/432-1877.s

 

and another.....

 

http://coins.ha.com/itm/classic-quarter-eagles/quarter-eagles/1839-c-2-1-2-au55-pcgs-three-different-die-varieties-are-known-for-the-1839-c-classic-head-quarter-eagles-the-obverse-of/a/432-1681.s

 

It may not have happened often but it did happen. Looking over the results of this 2007 Heritage sale it looks like over $500 face value in gold coins came from the "gold room" at C&S bank, a handsome sum back in the day.

[RWB]

Where are Stecher's original records? The material quoted so far is second/third hand and not very useful.

[#]

Done

[RWB]

When the article is complete, I'll submit it to one of the hobby publications.