Q. David Bowers
Text of the 1937 Congressional Study
On July 28, 1937, Mr. Cochran of the House of Representatives Committee on Coinage, Weights, and Measures submitted the following report titled "Prohibiting Issuance and Coinage of Certain Commemorative Coins," to accompany the bill known as H.R. 8036. (This report was reprinted in The CongressionalRecord, July 29, 1937, with an introduction by Cochran. ) As the text gives an excellent overview of the commemorative situation at the time and as it had a pro-found influence on further congressional actions, extensive excerpts are given here.
"The Committee on Coinage, Weights, and Measures, to whom was referred the bill (H.R. 8036) prohibiting the issuance and coinage of certain commemorative coins, and for other purposes, having considered same, authorize me to report the bill to the House with the recommendation that the bill be passed. The purpose of this bill is to stop a racket in the issuance of commemorative coins that has developed in recent years.
"This bill will, from and after the date of its enactment, prohibit the further coinage and issuance of such coins under any act of Congress enacted prior to the Seventy Fifth Congress, with one exception. I have been advised that coins have been ordered and issued under every such authorizing act. The bill is worded so as not to affect those bills which recently were passed by the present Congress. In all fairness to the sponsors of those measures, it is the committee's feeling that they should be afforded an opportunity to place their orders and receive their coins. In any event, those acts themselves contain express limitations as to time, that is, they expire one year from the date of their enactment. The Texas Centennial is still being celebrated and is going on for another year according to the reports that the committee has received. For that reason the committee felt that it would be justified in permitting the coinage of a commemorative coin during 1938.
"The President of the United States, in several communications to the Congress, has deplored the abuses and other ill effects resulting from the coinage of commemorative coins and strongly recommended the consideration of legislation which would authorize the coinage of medals in lieu of coins, thus preserving inviolate the coinage system of the United States. Congress, many years ago, being cognizant of the dangers and confusion which flow from a multiplicity of designs in our coins, wisely enacted Section 3510 of the Revised Statutes of the United States, which reads as follows: ' ... no change in the design or die of any coin shall be made oftener than once in 25 years from and including the first adoption of the design, model, die, or hub for the same coin .... '
"With the flood of commemorative coin authorizations, this statute, while still on the books, has in recent years been more honored in the breach than in the observance. It is believed that in the enactment of Section 3510, Congress enunciated a wise general public policy. Adherence to such a policy would have prevented the present abuses which result from numerous authorizations for the coinage of commemorative coins. The effect of such authorizations has been to encourage trafficking in such issues for private profit, to increase possibilities of counterfeiting, (Although by 1937 a half dozen or more varieties of commemoratives had been counterfeited, this was never a major problem when considered in relation to the number of pieces issued. Counterfeits were identified as such, and their characteristics were published in The Numismatist and elsewhere.) and, in general, to detract from the fundamental purpose for which money is issued, namely, to provide a medium of exchange.
"From 1892, when the first issue of commemorative new design half dollars was approved, through 1928, a period of 36 years, 18 new-design half dollars were authorized. From 1934 to 1936, inclusive, a period of 3 years, 26 new half dollar coins were authorized. In other words, in the last 3 years we passed more commemorative coin bills than during the entire 36-year period from 1892 through 1928. Surely this must end sometime, and I think you will agree that that time has arrived.
"Besides orders for new coins recently approved, continuing orders are received at the mints for coins authorized as far back as 10 years ago-mind you, coins are still being ordered under acts passed over 10 years ago. Under the terms of an act passed in 1926 (Act of May 17, 1926, sec. 3, 44 Stat. 559), which authorized the issue of 6,000,000 [Oregon Trail] pieces, the Mint is required to fill orders from the interested organization or, as a matter of fact, from a coin dealer, (Coin dealers L.W. Hoffecker, Thomas G. Melish, and the Scott Stamp & Coin Co., are examples.) in any amount, large or small, and they may be called for at anytime, until this vast quantity is absorbed or until the act is repealed or suspended. Annual orders of coins in situations like this naturally are small, since the fewer coins minted in a given year, the higher the price may go. The change of date each year or, in fact, the slightest change gives the coins a new status to collectors and dealers. This also applies to the minting of the same coin at each mint.
"In 1933 one act (Act of June 15, 1933, 48 Stat. 149) authorized the coinage of 1,500,000 pieces; in 1934 another (act of May 26, 1934, 48 Stat. 807) authorized the issue of 600,000 pieces; another act passed in 1934 (May 14, 1934, 48 Stat. 776) authorized the issue of 500,000 pieces; and a second act in 1936 for the same organization and commemorative purpose (June 26, 1936, 49 Stat. 1981) authorized an additional coinage of not less than 25,000 nor more than 50,000 pieces with the change of design on one side. One act passed in 1936 (act of May 15, 1936, 49 Stat. 1277) provides that the interested organization shall not take less than 25,000 pieces, leaving the case open for any number above that amount. Consequently, the organization can demand delivery of any number that it can pay for, provided that not less than 25,000 be ordered. It can issue coins forever unless this law is repealed.
"By the Act of May 3, 1935 (49 Stat. 174), a new coin was authorized for an exposition [California-Pacific International Exposition in San Diego]. The act authorized 250,000 pieces, and the organization requested the entire number. At the close of the exposition 180,000 pieces, bearing date of 1935, were returned to the mint to be melted and additional legislation was enacted (Act of May 6, 1936,49 Stat. 1262) permitting the recoinage of the 180,000 pieces, bearing date of 1936.
"The most casual review of these conditions will indicate the amount of special work imposed upon the already overburdened mints. Such special work diverts the use of machinery, manpower, and consumable supplies from regular channels of operation when every facility of the mints is needed to meet the demands of the business of this country. Special commemorative orders affect every department of the mints from the engraving department, including intricate and ex-acting engraving and die cutting, down to the delivery department. Last year the Mint had to displace regular coinage while the necessary facilities were being diverted to the manufacture of 734,464 pieces of this special-interest coinage. The total coinage [consisting primarily of regular issue coins, not commemoratives] in 1926 amounted to about 315,000,000 pieces; coinage in 1936 amounted to about 723,000,000 pieces. The country's demands for coinage are being attempted to be met with the same number of mints now that were in use 27 years ago. It is frequently necessary, therefore, to operate the mints on a 24-hour basis for long periods.