Q. David Bowers
Seeking a profit opportunity for the issuer, or, more charitably, seeking to desire to remove any confusion that might result from having a date other than the anniversary on the coin, new legislation introduced in Congress and approved on August 26, 1935, read as follows: "That, inasmuch as the annual change in coinage date required by law has caused the removal of the commemorative date of 1934 from the design Originally approved and in use for the coinage of the 50-cent pieces commemorating the two hundredth anniversary of the birth of Daniel Boone .. .it is hereby authorized to supplement said design so that the reverse of said 50-cent piece will show the figures' 1934' immediately above the words 'PIONEER YEAR.'"
Although 1935 Boone sets of three coins had already been produced during the year, in October 1935 at the Philadelphia Mint 10,008 more 1935-dated Boone half dollars were made but with the addition of the date 1934 in small numerals on the right side of the reverse. In November the Denver and San Francisco mints produced this new variety in the very small quantities of just 2,003 and 2,004, respectively. News releases calling attention to the rare issues were sent out by C. Frank Dunn. New York City newspapers, among others, carried the information that a pair of low mintage Boone half dollars had been created at the Denver and San Francisco mints and could be ordered for $3.70 by sending remittances to Dunn.
In a quarter-page advertisement on page 905 of the December 1935 issue of The Numismatist, Dunn offered the new issues for sale at $1.10 for the Philadelphia coin ("will advance December 21 to $1.60 ... if any are left") and a new high price of $ 3.70 for the rare Denver and San Francisco pair, for a total of $4.80 (although they were never sold as a set of three). The 1935-D and S coins with "small 1934" were sold only as a separate pair. Collectors who thought that their collections were complete were greeted with the news that they weren't.
The exact story of what happened after that will probably never be resolved to everyone's satisfaction, but Dunn stated that so many orders had been received as a result of advance newspaper notices that by the time collectors were generally aware of the coins through advertisements in The Numismatist and elsewhere, the entire limited issue had been sold out. So far as is known, not a single person who responded to the advertisement in The Numismatist was able to secure a set at the issue price of $3.70.
Indeed only a few collectors obtained the coins from any source. Writing in the Numismatic Scrapbook, May 1936, editor and owner Lee F. Hewitt commented:
"Many collectors do not believe that all the 'famous 2,000 issue Boones' were distributed. Most of the correspondents on the subject have placed the number mailed between 500 and 1,000 sets. New York and Chicago represent approximately 20% of the nation's collectors. Twenty-eight sets have been located in New York and 11 sets here in Chicago."
On the market the low-mintage Boone pair immediately jumped to $25, then to the $50 level! In the $50 range some sets just happened to be available through dealers, and C. Frank Dunn just happened to be able to "buy some sets from earlier purchasers who wanted a profit," so the story went. Less charitable was the allegation that Dunn had secretly reserved many 1935 with "small 1934" pairs, quite possibly the majority of them, which he later sold privately under the guise that he had purchased them on the aftermarket. Veteran dealer Abe Kosoff stated in later years that Dunn's scheme consisted of having two offices on the second floor of the Phoenix Hotel, one being the official Boone sales office and the other being his private office down the hall, the latter place being the location for many special deals.
Collectors who had endeavored to order the 1935 "small 1934" pair for $3.70 to complete their sets-but who had their remittances returned-were angered when they found that their only alternative was to pay dealers $50 or even up to $100. Never before had anything like this hap-pened, although many had been burned earlier in 1935 when they endeavored to buy Hudson commemorative half dollars at the issue price (see later listing) and had their remittances returned, but Hudsons jumped in price to $5 or $6, not to $50 or more.
Frankensteins
The Numismatist, January 1936, printed a two-page letter from Dunn, dated December 16,1935, in which he endeavored to explain away the situation by stating that he Simply had received more orders than he could handle. He referred to the coins as "Frankensteins" (monsters of one's own making). In June 1936 the firm of Anderson & Steffen published a mail bid sale of commemoratives in The Numismatist. Coins were listed under the heading of "Commemoratives," except for the 1935 Denver and San Francisco Boone rarities, which had a separate heading of their own captioned "Frankensteins." As ample commentary in the present book indicates, certain individuals whose cupidity led them to do unethical or even dishonest things spent a great deal of time and effort stating how public-minded, fair, impartial, etc., they were, how they were victims of circumstances, etc. Of course, this may be just a part of the human way of doing things.
Addressing the subject of the 1935 "small 1934" Boone half dollars several years later, B. Max Mehl confirmed that distributor Dunn, despite his "sold out" notices, kept many sets for himself: "Whether or not very many of them were distributed to original subscribers, I do not know, but I do know that as much as $100 per pair was paid for them and that later the distributor offered and supplied the sets in lots of ten sets at greatly reduced prices. Also understand that single sets were offered later to collectors at about twenty times the original advertised prices."
Contemporary Correspondence
Walter P. Nichols, active as a dealer in the commemorative market, sought to buy a group of the new 1935 issues with "small 1934" and received the following sold-out letter from C. Frank Dunn, dated December 9, 1935: "Regret to return your remittance herewith. The new D & S limited issues are so small there will not be enough for one set to each of my regular customers who have the complete collection and need these issues. "
However, Dunn further suggested that Nichols reorder, buying 10 examples of the common Philadelphia issue for $10.50 the lot, and when this was done "include, $3.70 for one set D & S for yourself." Obviously, by that time the Denver and San Francisco issues with "small 1934" were indeed still on hand, despite "sold out" letters! Nichols was known as a dealer and hobby leader, and, to head off criticism by those in the trade, Dunn was "nicer" to him than to the typical person who tried to order the rare Denver and San Francisco coins.
On January 8, 1936, Dunn wrote to Nichols stating that none of the scarce Denver and San Francisco Boone pieces had been shipped, "but I understand orders will begin rolling within the next five days."