Q. David Bowers
" .. Another disturbing feature of this whole policy, which has developed in the last two years, is the appalling extent to which the coins have been exploited for private gain, when coins are intended to be made on government account. One set of com-memorative coins which the wording of the act permitted to be made at each mint, consisted of five types, all made in 1935; one from each mint, two [actually three] bearing double dates and separate mint marks. This set of five [actually six; the 1935 Boone coins are being referred to] pieces is advertised by a dealer for $93 (five 50-cent pieces worth the face value of $2.50). Another dealer offers two of these coins for $100. Still another issue [1936 Cincinnati] limited by the act to 15,000 pieces with provision for having them made at 'the mints' is advertised at $45 for three 50-cent pieces.
"In all cases the coins are delivered by the mint to the agent named in the act. Practice on the part of the interested organizations appears to have grown up of delivering a large number of such coins to dealers for disposal to the public. There is no control over the charge which dealers may make. It is conceded that individuals may pay what they please for a coin, but attention is called to the fact that it is the intention of Congress when the coins are authorized that the proceeds of the sale of such coins at a reasonable profit shall be applied to the cost of the celebration which they are intended to memorialize. When coins are gathered up by dealers and offered at such absurd premiums, the profits do not go to the organization but to individual merchants. No country in the world permits such abuse of its coinage as has been permitted in this country. The practice of issuing commemorative coins is so entrenched that determined resistance seems called for. Every time the importunities of an organization for special coins are yielded to, the defense against the whole pernicious policy is weakened.
"Upon a vigorous appeal having been made in 1927 before the Committee on Coinage, Weights, and Measures, when the bill was pending for the issue of the Bennington [Vermont Sesquicentennial half dollar] coin, the committee agreed to cooperate with the Treasury in discourag-ing the issue of special coins. The committee went on record, in its report on the Bennington coin, in the following terms: 'The committee desires at this time to go on record as not favoring legislation of this class because of the great number of bills introduced to commemorate events of local and not national interest and because such quantities of the coins so authorized have had to be taken back by the government, melted, and reminted.'
The Commission, however failed to call for them, and they were left in the Mint until April of 1933. Undoubtedly it was because of this, that Mr. Hoover, then president of the United States, vetoed all coin bills presented. (Hoover was also upset with the wastage he observed when vast quantities of 1926 Sesquicentennial of American Independence commemorative half dollars and quarter eagles were melted.) The President could veto bills, but he could not repeal this law and more were issued. At that time, in 1933, 44,000 of the 50,000 were remelted, leaving a limited issue of only 6,000. These were offered for sale by a coin and stamp distributor [Scott Stamp & Coin Co.] of New York, who at the same time advertised 'Sole distributors of the Oregon Trail commemorative half dollars.' At the same time, this company announced that there would be available 5,250 1933 Denver Mint half dollars. One year later, in September of 1934, this company announced 7,000 Denver Mint 1934 coins.
"In April of 1936 this same company announced 5,000 San Francisco Mint half dollars, saying then there would be no more from that mint in that year. Later 10,000 were issued at the Philadelphia Mint, and these were not advertised publicly but to their customers by mail. In February this year there were coined 12,000 at the Denver Mint, and it seems that the Commission finally woke up to the fact that they themselves could make some money off the poor coin collector. They are distributing them themselves. Thus we have eight issues in 11 years, all commemorating the Oregon Trail, the only difference being the date and mint mark, but coin collectors must buy all.... The 1937 half dollar is still being distributed by the Commission. At the rate these coins are being minted, we will have Oregon Trail coins for the next 300 years, unless Congress repeals this law.
"The Texas Centennial was held in 1936 but has been continued this year. In 1934 their bill was passed authorizing the issuance of 1,500,000 pieces. In that year, they had coined at Philadelphia 205,000 pieces. No doubt they are still obtainable from the Commission. In 1935 they had coined at each of the three mints, 10,000. The small number raised the price from $1 to $1.50. Again in 1936, 10,000 from each mint. A notice has just appeared in a local paper that they expect to have their 1937 coins available shortly. The coins can be issued until the full 1,500,000 pieces are exhausted unless the law is repealed.... The total coined to date is 289,000 out of an authorized 1,500,000. The price on the 1937 coins is not available as they have not been distributed, but will be in a few weeks. It is but proper to state that the money raised from the sale of commemorative coins under the Texas act is being used entirely for the purpose of constructing a memorial building on the grounds of the Texas University. This building is partly completed, $300,000 of the amount appropriated by Congress to celebrate the centennial being used to start the structure. The board of regents of the university supervise the distribution of the coins.
"This law has developed into a racket, the extent of which no one dreamed of. The Daniel Boone Bicentennial Act authorized 600,000 pieces in 1934. That year they coined 10,000 at the Philadelphia Mint. In 1935, 10,000 from the Philadelphia Mint and 5,000 from each of the other mints were made. Keep in mind each half dollar has a special value-the smaller the issue the greater the graft. It was about this time that the groaning and muttering of the coin collectors, who were footing the bill, began to be heard. They protested that the coins were being issued from year to year with no change except date and mint. In other words, they did not even go to the expense in changing the design, which would have been the honorable thing to do at least, but they simply changed the date, pocketing the cost of the new design. Was it any reason [sic] the coin collectors complained?
"Mr. Dunn, the distributor of this Daniel Boone half dollar, took it upon himself to issue what he termed a 'bonus issue' of 2,000 from each of the Western mints. He claimed these were only for those who had stuck with him, by ordering all of the previous issues. But the worst is yet to come. The coins were issued but not all distributed. Coin collectors have always defied this distributor to produce a list of 2,000 names of the people who got these sets. I have heard the cost of this issue is now about $100. In Decemberof1935 Mr. Dunn claims to have assigned all the entire issue, yet there is a case of distribution late in April of the next year by him. In July of 1936 this same distributor offered a set of these rare coins to anyone who would purchase 500 of the 1936 Philadelphia coins for $510, express collect. In the same advertisement he says, 'From some sets-as far as they go-made available to the Daniel Boone Bicentennial Commission approved by Congress.' Evidently he was trying to deceive the collectors into believing that more had been coined.
"In 1936 there were coined at Philadelphia 10,000, and then 5,000 from each of the branch mints. Now Mrs. Dunn, his wife, advertises 15,000 1937 coins from the Philadelphia Mint. Late in 1935 we have Mr. Dunn's word that he wanted to sell only 300,000 more coins, and now it is stated they expect to continue for 5 years. My bill will end his racket.. .. A total of 13 coins [have been made so far in the Boone series], the only difference being the date and mint. Remember coin collectors are like stamp collectors, they must buy each issue.
"Arkansas secured a late start, but they are evidently making up for lost time. The act authorized 500,000 in 1935. The first were coined at the Philadelphia Mint, 10,000. Then they began to get more orders than they had coins. I understand they consulted a coin dealer [B. Max Mehl] and acting on his advice, coined an additional 3,000 at the Philadelphia Mint and 5,500 at each of the branch mints. This dealer later admits having practically complete control of the branch mint coins. These coins were originally sold by the Commission at $1, but very few collectors got the branch mint coins. The dealer immediately raised the price to $2.75 each.