Q. David Bowers
The Commemorative Market
1926-1930
The five-year period ending in December 1930 saw a continuing increase in interest in commemoratives and a consequent price rise for nearly all earlier issues. By now the typical numismatist included commemorative coins (especially the silver varieties; interest in gold was limited) in his collection. Albums and holders had not yet been made for commemoratives, although there had been a beginning in this direction in the late 1920s when M.L. Beistle, a Pennsylvania maker of cardboard boxes and other goods, created album pages with celluloid slides and later licensed them to Wayte Raymond, who in the 1930s published albums for commemoratives.
The period 1926-1930 included the release of several new commemoratives including the 1926 Sesquicentennial of American Independence half dollar and quarter eagle (both of which were greeted with yawns; the designs were not felt to be attractive, and the Exposition itself was a flop), the 1927 Vermont-Bennington half dollar, and, especially, the limited edition (just 10,008 were made) 1928 Hawaiian Sesquicentennial half dollar, which every-one wanted but few were able to obtain for the $2 issue price, despite this being the most charged for a commemorative half dollar up to that time. It turned out that most Hawaiian half dollars were sold to residents of the Hawaiian Islands with relatively few going to mainlanders.
In 1926 Oregon Trail half dollars were first released, heralding a controversial series that would extend, with interruptions, until 1939. Shortly after Herbert Hoover moved into the White House in 1929, he declared there would be no more commemorative coins, and not even Oregon Trail half dollars were made during his administration. A businessman, Hoover thought that the past practice of coining vast quantities of commemorative coins and then melting most of them was extremely wasteful and that further abuses of this nature would not be tolerated. Just about anyone contemplating that, of the 1,000,528 half dollars struck for the 1926 Sesquicentennial Exposition, 859,408were shipped back to the Mint to be melted would have come to the same conclusion. It was for this reason that Oregon Trail half dollars were not minted during the Hoover administration and that the creation of new varieties had to await the presidency of Franklin Delano Roosevelt in March 1933. (Hoover specifically cited this in a message to Congress (see later text). However, an ancillary reason why Oregon Trail halves were not minted was that as late as 1933 large quantities of 1928-dated Oregon Trail coins remained in storage with the Treasury Department because the issuing commission was either unable or unwilling to pay for them (also see later text).)
While it is popular to mention the exploitation of collectors by commemorative issuers and while the situation is a matter of historical fact (and was delineated month-by-month in the pages of The Numismatist as it happened), it is important to pause and reflect that the result was a series of coins which, irrespective of the motives of the issuers, became increasingly interesting to collect. Today the heritage of commemoratives is a rich one, and yesterday's scandals contribute to the fascination.
The Commemorative Market
1931-1935
Although the stock market experienced a setback in October 1929 and by the early 1930s the United States was in a severe economic depression, this did not materially affect the prices of earlier-issued commemorative coins. Sales volume slowed, and values eased slightly, but by and large the commemorative coins of recent decades maintained their values.
President Roosevelt was a collector-of stamps, not coins-and under his administration Postmaster James Farley produced all sorts of "special" stamps (including those without gum on the back or lacking the usual perforations) to create rarities. Thus the Roosevelt years provided the ideal arena for commemorative exploitation, and, as will be seen, this happened to an extent that no one would have dreamed possible in 1930. It should be noted that at one point Roosevelt was against the issuance of commemorative coins and suggested that medals should be issued instead. Of course, most collectors wanted legal tender coins.
While unemployed stockbrokers were selling apples and pencils on street comers, interest in numismatics increased sharply. No doubt had the economy been healthy the hobby would have grown even more than it did. As it was, the growth was spectacular. The expanded activity was primarily due to these factors:
(1) B. MAX MEHL: This well-known Texas dealer greatly expanded his nationwide campaign to sell his Star Rare Coin Encyclopedia. In an era when an income of a few additional dollars was appreciated by just about anyone in dire financial straits, the prospect of finding a rare 1799 cent in the attic or a 1913 Liberty Head nickel in pocket change was very enticing, and hundreds of thousands, or perhaps even millions, of Mehl's booklets were sold. Mehl purchased full-page advertisements in Sunday newspapers and even had his own nationwide radio program. While Mehl's primary purpose was to sell books and his secondary aim was to buy 1799 large cents and other rarities, each Encyclopedia offered packets and starter collections of coins for sale, and many people started in the numismatic hobby this way. The American Numismatic Association congratulated him on all he was doing to popularize interest in coin collecting.
(2) THE AVAILABILITY OF ALBUMS: Albums for displaying and storing coins were aggressively marketed by Wayte Raymond and others, thus making it possible to enjoy viewing coins while owning them. Previously the main way to store coins was in small paper envelopes. Just as the crossword puzzle enthusiast is not content until the last square is filled in, the coin collector could not endure the sight of an empty hole in the 1928 Hawaiian half dollar space. The desire for completion spurred many to buy scarce and rare varieties of commemoratives. Of course, commemoratives were just one of many series to benefit from the advent of these albums. Indian cents, Liberty Head nickels, and other sets were avidly collected as well.
(3) THE AVAILABILITY OF INFORMATION: More information was available in print about coins. Wayte Raymond launched his Standard Catalogue of U.S. Coins in 1934. Now, at long last, pricing information was available on a current basis, for Raymond continued to update the listings with new editions. Earlier there had been no regularly-issued coin price reference available (although the Scott Stamp & Coin Co. had produced price lists, sold as general reference works, at widely separated intervals). Before the Standard Catalogue came on the scene, a collector desiring to know the value of an 1893 Isabella quarter, 1918 Illinois Centennial half dollar, or 1915-S Panama-Pacific octagonal $ 50 piece had to look through dealer advertisements, prices realized at auction sales, or ask someone in order to find what they were worth. Now it was all in one book, easy to use and fascinating to contemplate. One could gaze wistfully at the Standard Catalogue and dream of what to collect next.