News from the US Mint: 10 Famed 1933 Double Eagles

[ccr-migration]

I saw this from across the street and not sure whether to post it here or in the US Coin Forum. So, I`ll put it here. The link is: http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=607

 

The story is ( directly from the press release from the US Mint website ):

 

 

United States Mint Recovers 10 Famed Double Eagles

 

 

WASHINGTON – The United States Mint has recovered ten more of the fabled 1933 Double Eagle gold pieces. These numismatic artifacts were illegally removed from the United States Mint at Philadelphia more than 70 years ago.

 

 

“These Double Eagles were never lawfully issued, but instead, were taken from the United States Mint at Philadelphia in an unlawful manner more than 70 years ago,” said United States Mint Acting Director David Lebryk. “They are, and always have been, public property belonging to the United States. We are pleased that these 10 Double Eagles have been recovered.”

 

 

To ensure that they are properly secured, the recovered 1933 Double Eagles will be held in the United States Bullion Depository at Fort Knox. The United States Department of the Treasury does not intend to monetize, issue or auction them. The United States Mint will assess the best way to use these historical artifacts, including possible public exhibits, to educate the American people.

 

 

With the assistance of the U.S. Secret Service and the Department of Justice, the United States Mint recovered the 10 gold pieces in Philadelphia in September 2004, after being approached by an attorney whose client allegedly possessed the Double Eagles. With the help of the Smithsonian Institution, the United States Mint authenticated the gold pieces on June 21, 2005, as genuine 1933 gold Double Eagles. They were produced at the United States Mint at Philadelphia in 1933, but they were never issued as coinage.

 

 

The United States Mint’s Eagle gold coin was first produced in 1795 with a $10 denomination. When the United States Mint first struck $20 gold pieces in 1850, they were popularly called “Double Eagles.”

 

 

About 445,500 Double Eagle gold pieces were minted in 1933. However, President Franklin Roosevelt took the United States off the gold standard in an effort to help the struggling American economy recover from the Great Depression. As a result, none of the Double Eagles was ever issued at that time; instead, all but two of the 1933 Double Eagles were ordered destroyed. However, in addition to these two, which were transferred to the Smithsonian Institution, the Government has now recovered a total of 20 specimens that were stolen from the United States Mint at Philadelphia. Nine of the 20 Double Eagles were seized by, or relinquished to, the U.S. Secret Service in the 1940s and 1950s, and were subsequently returned to the United States Mint and destroyed.

 

 

One 1933 Double Eagle surfaced in 1996 and was seized by the U.S. Secret Service. The gold piece was returned to the United States Mint, and following a legal settlement, was issued and auctioned in New York City for $7 million on July 30, 2002.

 

 

“The 2002 auction was the result of a legal settlement. At the time, the United States Mint declared that it would not monetize or sell future 1933 Double Eagles that might be recovered,” said Acting Director Lebryk. “We do not intend to monetize, issue, or auction the recovered Double Eagles.”

 

 

The 1933 Double Eagle obverse features “Liberty,” a figure reminiscent of a Greek goddess. The image was designed by famed sculptor Augustus Saint-Gaudens. The reverse features a majestic eagle. The United States Mint, the world’s largest coin manufacturer, produces about 13 billion coins annually for trade and commerce. The 213-year-old Federal agency, with about 2,000 employees and facilities in six locations, also makes coins for collectors and investors.

 

 

Contact: Press inquiries: Michael White (202) 354-7222

Customer Service information: (800) USA MINT (872-6468)

[cladking]

The mint frequently has accidently mixed new date coin with the older date late in the year because they start minting them early. It's surprising no one has suggested the mint prove that wasn't the case with any of these.

[midwest]

According to this they said they would melt any more of them.

 

 

 

link

[jtryka]

The mint frequently has accidently mixed new date coin with the older date late in the year because they start minting them early. It's surprising no one has suggested the mint prove that wasn't the case with any of these.

 

I believe that FDR's executive order was issued before any of the 1933 double eagles were released into circulation. In addition, all gold coinage was supposed to be turned into the banks for surrender to the treasury shortly after the executive order was issued, so there would have been very little opportunity for these coins to slip out into circulation. Finally, these coins really did not circulate much at all, as most were held by banks and the Fed as backing for paper notes issued against them, so the idea that someone might have picked up a roll from the mint that contained some 1933s is very slim indeed. It's certainly not like the mint releasing a Sacagawea in 1999, which could have happened, and would have been meant for general circulation. Keep in mind also that there were a number of 1933 $10 Indians that were released into circulation, and although the vast majority were melted, any still out there are perfectly legal to own under current law.

 

Personally, I thought that after the auction, the mint would have "found" a few bags of 33 double eagles and sold them for $100,000 each by now!

[gmarguli]

According to this they said they would melt any more of them.

 

link

 

If the Mint melts these down, whoever orders it done should be slowly tortured to death. It's bad enough that they steal these from people, but to destroy them would be despicable.

[Leothelion]

One 1933 Double Eagle surfaced in 1996 and was seized by the U.S. Secret Service. The gold piece was returned to the United States Mint, and following a legal settlement, was issued and auctioned in New York City for $7 million on July 30, 2002.

 

Gee! I wonder what that sucker is worth now?

It's almost criminal with these developements!

Leo

[midijab-migration]

To destroy these pieces would be downright un-american! We're talking about part of our nation's history here. I doubt if they were really stolen as they alleged. Back in those days, one could go to the mint and trade one double eagle for another. Some unknowing mint worker would have traded the coins without the proper authority. Outright theft, no. Anauthorized transfer at best. I wonder if they gave the person they confiscated the coins from "returned monetized value for them"? Say $200, as that what it would've cost that person in trade back in the day. If not, and it was taken from that person with no compensation, THAT is thievery!

 

jb

[jtryka]

To destroy these pieces would be downright un-american! We're talking about part of our nation's history here. I doubt if they were really stolen as they alleged. Back in those days, one could go to the mint and trade one double eagle for another. Some unknowing mint worker would have traded the coins without the proper authority. Outright theft, no. Anauthorized transfer at best. I wonder if they gave the person they confiscated the coins from "returned monetized value for them"? Say $200, as that what it would've cost that person in trade back in the day. If not, and it was taken from that person with no compensation, THAT is thievery!

 

jb

 

While it's true that collectors could purchase double eagles from the mint prior to 1933, the transactions were typically done by mail for face value plus postage. There would have been no need to exchange one double eagle for another since FRNs were all redeemable at the Treasury for gold. The Mint's stand on the 33 double eagles is that none were ever monetized and none were ever issued for circulation, hence any that are out there are nothing more than stolen government property. It's been well known since the 1930s that at least 10 were illicitly taken from the mint and sold to collectors, but most were subsequently recovered. If one could somehow prove that they or their ancestor walked up to the US Mint in Philadelphia and exchanged $20 for a 1933 double eagle, then they would have a very interesting court case. As for your charge of thievery, the real crime did not just happen, but what the crime perpetrated by FDR in his executive order, which forced all Americans to surrender their gold at the official price of $20.67/oz., only to subsequently raise the official price to $32/oz. after the confiscation was complete!

[midijab-migration]

As for your charge of thievery, the real crime did not just happen, but what the crime perpetrated by FDR in his executive order, which forced all Americans to surrender their gold at the official price of $20.67/oz., only to subsequently raise the official price to $32/oz. after the confiscation was complete!

 

Yep, I'd have to agree. FDR and the maker of the RAW. . . er. . . NEW DEAL! I think that whole thing even biased me to the point where I refuse to collect Roosies. Teddy should've been on the dime!

 

jb

[BankNote1]

I agree!

[RobertB]

I think the owner of these should be treated the same as the '33 previously auctioned. They set the precedent.

[midijab-migration]

I think the owner of these should be treated the same as the '33 previously auctioned. They set the precedent.

 

Here, here!

 

Where's the ANA's team of lawyers!

 

jb

jb's gold country sets

[midwest]

According to this they said they would melt any more of them.

 

link

 

If the Mint melts these down, whoever orders it done should be slowly tortured to death. It's bad enough that they steal these from people, but to destroy them would be despicable.

 

 

What kind of torture

 

anyway I see them selling these followed by over the top sensationalized media reports

 

what say you

[jtryka]

Well, they did set the precedent, and although I am not a lawyer, I never really understood why they treated the Farouk specimen any differently than the others confiscated over the years. A half roll of 33 Saints would certainly put a dent in their overall value. I would suggest it would put them down at least to the level of the 27-D, which is still a $2 million coin, but quite a drop from $7 million. I wonder if there was something in the legal settlement on the Farouk coin that requires the mint to destroy and subsequent examples found? That would throw a wrinkle in things. On a more pragmatic note, with a tenfold increase in the population of these coins, I wonder if we'd get to see how the others would grade!

[cpm9ball]

My understanding of the legal settlement is that the U.S. Treasury would not monetize any other specimens, but rather than destroy them, they would be used solely for exhibits, historical research, etc.

 

I would not be at all surprised if, one day, we learn that the parties involved in "repatriating" the Farouk specimen reached this settlement by providing information as to the whereabouts of the other specimens. I would imagine that the negotiations for the transfer of ownership of a multi-million dollar coin was years in the making, but as long as it was held overseas, the U.S. Gov't. could do little about it. If someone ever writes a factual account of the 1933 St. Gaudens, perhaps we will learn about "who ratted on who"!

 

Chris

[RWB]

The mint has a long, disappointing history of destruction of pieces of American history. Sometimes this was done on the whim of a mint director, other times as "standard" procedure, and other times in the guise of "security." The only established way to protect our numismatic history - coins, models, dies, documents - is to put them in the Smithsonian or National Archives. Both of these organizations are pledged to protect our heritage, not melt it.

 

A prime example - May 1910. Mint director A. Piatt Andrew ordered the destruction of more than 200 pattern and circulating coin hubs and incomplete dies. No consideration was given to the original American art, dating from the early 1870s through Saint-Gaudens' 1907 designs, that was being destroyed. The recently discovered inventory suggests that several now-lost designs were included.

 

The bottom line is that the US Mint and Treasury Dept cannot be trusted to preserve and protect historical artifacts.

[EZ_E]

<< WASHINGTON DC The United States Mint has recovered ten more of the fabled

 

1933 Double Eagle gold pieces. These numismatic artifacts were illegally

 

removed from the United States Mint at Philadelphia more than 70 years ago. >>

 

I just don't buy this lie. The 10 coins in question were legally issued and

legally possessed by American citizens prior to March 9, 1933 as the American

people traded their goldbacks for gold. On March 6, 1933 all FDR issued an

edit demanding that all gold be returned to the Treasury under penalty of law.

(A $10,000 fine and up to ten years in prison). Almost all coins were returned.

 

By no stretch of the imagination do I believe the government that these coins

were stolen. I am absolutely convinced the 10 coins in question were simply

never surrendered back to Uncle Sam, and are the legal property of those from

whom they were seized.

 

<< There was actually a small window where

 

they could have been released legally. But once Uncle Sam gets a notion in

 

his head, he ain't backing down none. >>

 

There was a shipment released just about the time FDR called them in, and two

additional stampings. The reason I know their story is phony is because for

75 years they claimed that no coins were shipped because they couldn't find a

record. Thenk they claimed that 10 coins were stolen by George McCann (a

manager in the Mint) because he apparently did steal some old silver coins.

McCann denied the allegations. He was not prosecuted for theft since the

statute

of limitations expired when three coins turned up in 1944--11 years after the

coins were seized by FDR and 7 years after they were melted down.

 

One of the men arrested in 1944 said the guy he bought it from said he had 9

coins and had sold a tenth coin to King Farouk. So the government concocted a

story that 10 coins were stolen by McCann. In reality, the government seized

the coins because Roosevelt's illegal Proclamation declared it a crime to

possess it--backed up by the Emergency Banking Relief Act of 1933 that did make

it a crime to own them.

 

THAT WAS THE CRIME, not the purported theft, but the government couldn't say

that when they seized the coins. Nine coins were seized and melted down.

That left one, in the possession of King Farouk. I expect that coin IS STILL IN

THE POSSESSION OF the Saudi family. Another coin showed up in 1996. Since

Uncle Sam was convinced they melted down the other nine, they called it the King

Farouk coin. They seized it, but the rightful owner filed suit. Rather than

air the dirty laundry in public, the government agreed to auction off the

coin and split the money with the guy they stole it from. That should have been

the end of the story, but in September, 2004 a lawyer hired by a woman in

Philadelphia reported to the Treasury Dept. that he had been retained to sell

ten

1933 Double Eagles (the story you sent). The government is using the old

McCann story to claim ten double eagles were stolen, etc. etc.

 

We actually now have 21 of these ten never-issued coins that have turned up

since 1944. I see a flaw in the "guv'mint's" story. What really ticked me

off what David Lebryk's straight-faced, bald-faced lie when he explained that

these were the ten double eagles stolen in 1933. Once again Big Brother has

stolen the assets of its rightful owner. Only this time, Uncle Sam won't melt

them down. Not when those ten coins are woth some $80,000,000.

[DaveG]

EZ_E:

 

Not to disturb your rant, but the Mint's website has a chronology of the 1933 double eagles - they weren't struck until after the order was issued to cease paying out gold coins.

 

Also, the book "Illegal Tender" has a very good explanation of how the coins came to leave the Mint.

 

 

 

(By the way, King Farouk was Egyptian, not Saudi.)

[EZ_E]

Dave,

 

A buddy of mine wrote that. My words were in quotes but it sounded good to me.

 

[DaveG]

EZ_E:

 

Sorry to hear that.

 

It does make a good "tall tale", though.

[EZ_E]

EZ_E:

 

Sorry to hear that.

 

It does make a good "tall tale", though.

 

 

I can't intelligently comment one way or the other on this topic but I don't necessarily believe everything that the gov't tells us either. Do you?

[Techno_mike-migration]

Never quite understood the difference between the '33 gold $20s (which were minted "legally" and subsequently not released) and the 1913 Liberty Head Nickels...The '13s were not supposed to be minted at all, but...

Why do they trade hands almost monthly without fear of confiscation?

Mike

[EZ_E]

Never quite understood the difference between the '33 gold $20s (which were minted "legally" and subsequently not released) and the 1913 Liberty Head Nickels...The '13s were not supposed to be minted at all, but...

Why do they trade hands almost monthly without fear of confiscation?

Mike

 

 

I totally agree but once Uncle Sam gets a notion in his head, he ain't backing down none.

[DaveG]

EZ_E: All I can say is "You don't know who you're talking to!"

 

techno_mike: The only even somewhat rational explanation is that no one's ever complained about the 1913 nickels (or 19th century patterns), but an official complaint (from the Mint to the Secret Service) was made, and, apparently, the Secret Service is composed of elephants (who never forget). And, I suppose, once an agent got assigned to the case, you had someone who had a vested (career) interest in pursuing it.

[michael]

wild!!! well if these confiscated coins are truly melted

 

then the ownder of the 7 million dollar 1933 has a coin worth at least 12 million if not more as it is and will be the only 1933 thsat can be legally owned as it was officially released by the feds and hence a biz strike that is needed for a complete set of saint gaudens double eagles

 

wild!!!!

[jtryka]

wild!!! well if these confiscated coins are truly melted

 

then the ownder of the 7 million dollar 1933 has a coin worth at least 12 million if not more as it is and will be the only 1933 thsat can be legally owned as it was officially released by the feds and hence a biz strike that is needed for a complete set of saint gaudens double eagles

 

wild!!!!

 

While you are technically correct michael, most collectors view the 33 like the 1913 Liberty Nickel, there's a place for it, but not really required for a complete set (though my nickel folder still has a space for it!). I think most Saint collectors would have enough trouble getting a 1927-D and 1921 let alone a 1933! Even so, I wouldn't be surprised if there are more out there, but held in very private hands!

[Morgannut]

The only reason the 1933 are illegal today is the Mint claimed to the Secret Service they were stolen. As everyone knows, under the Coinage Act of 1965, all Mint Made pre-1965 coins--of any origin--are legal to own, buy , sell or trade, unless stolen.

 

The Farouk coin was special on 2 counts: 1st) He happened to be an friend of the US during WWII and people were slightly more worried about our occupation of North Africa and beating Hitler than one stupid coin, 2nd) As the coin was given a legal export permit to Eygpt and to the lawfull government of that country--if the US now said permits didn't matter, all US owned Egyptian national antiquities--valued in the billions--could have their ownership called into question.

 

The last point is the MInt is full of it: they never issued letters saying on this day at this time this coin is "monitized"--the branches got the gold one day and just issued it when they got around to it.

[TomG]

Just finished reading the book "Illegal Tender" several months ago and the belief of additional examples as noted in the book turns out to be true. Based on speculation in the book it is possible that additional examples are still out there.

[jom]

Not to disturb your rant, but the Mint's website has a chronology of the 1933 double eagles - they weren't struck until after the order was issued to cease paying out gold coins.

 

OK, when did the Mint come up with this one? I've heard for YEARS the coins were made at the beginning of the year hence they should have been available to the public...like the $10s were.

 

In fact, one might ask WHY the coins were made AFTER the issue was ordered. What would be the point?

 

jom

[gmarguli]

Got this off of a mailing list I'm on:

David Tripp, author of "Illegal Tender: Gold, Greed, and the

Mystery of the Lost 1933 Double Eagle" writes: "As it happens

I was at Sotheby's on something else when the news broke.

 

It's the story that won't stop; the gift that keeps on giving.

(I've already been on to my editor!).

 

The coins are clearly Israel Switt's hoard that he spoke of

to James Macallister (who related it to the Secret Service in

1944: Switt said he had 25 and had only sold 14.....which

would have left him with eleven....and ten are now in this

group.)

 

The Secret Service doesn't appear to have ever followed

up on this lead (which was mentioned in both the 2002

auction catalogue...and repeatedly in my book).

 

Even better, these don't even appear to be the one (from

the 1980 snapshot) illustrated in the back of my book as

the Mystery Coin!

 

And the controversy will continue!"

 

So, where are the other 15 coins? Is the so-called Farouk coin one of them - as some people say the coin sold as the Farouk coin wasn't actually his.

 

 

 

 

NY Times Story

By GLENN COLLINS

Published: August 12, 2005

 

The United States Mint announced yesterday that it had recovered 10 more of its fabled 1933 double eagle $20 gold pieces and stored them in Fort Knox. But the family that sought to authenticate them at the Mint claims that the government had no right to take them.

 

Beth Deisher, the editor of Coin World, said that "it has been rumored for years that more of these coins were being held by private citizens." The Mint's announcement on its Web site caused a sensation in coin circles yesterday.

 

A 1933 double eagle that surfaced in 1996 is on exhibition at the Federal Reserve Bank of New York, at 33 Liberty Street in Manhattan. The Treasury declared it a coin as part of a legal settlement, and in 2002 it was sold at Sotheby's for $7.59 million - the most ever publicly paid for a coin.The anonymous buyer has lent it for display.

 

"We are pleased that these 10 double eagles have been recovered," David Lebryk, the Mint's acting director, said in the statement. "These Double Eagles were never lawfully issued, but instead, were taken from the United States Mint at Philadelphia in an unlawful manner more than 70 years ago. They are, and always have been, public property belonging to the United States."

 

The Mint said that the Treasury would not declare them legal coins, or auction them. They came to light last September when, the Mint said, the government was approached by a lawyer for the family of a Philadelphia jeweler.

 

The lawyer, Barry H. Berke of Manhattan, said the gold pieces were "voluntarily" revealed to the government by Joan Langbord, the daughter of the jeweler, Israel Switt, who died in the early 1980's. He added: "The Mint has responded to their good-faith efforts to amicably resolve any issues relating to their coins by seeking to keep the coins. The Langbord family fully expects that their coins will be returned to them so they can be freely traded like every other numismatic treasure with a colorful history. I expect that if they are not returned there will be litigation."

 

When the United States came off the gold standard in 1933, President Franklin D. Roosevelt ordered the destruction of all but two of the pieces - called double eagles because they were twice the value of a $10 eagle gold piece. But some left the Mint under murky circumstances.

 

In 2002, "the Mint guaranteed that no other double eagles would be monetized, and that none other could be sold," said Ute Wartenberg Kagan, executive director of the American Numismatic Society.

 

Of the possibility of a lawsuit, Dr. Wartenberg Kagan said: "The family has to come up with an argument about why United States law doesn't apply in this case, since the government holds that these coins cannot be legally owned."