Q. David Bowers
"The design of the coin looked great when drawn on paper in huge size, but when reduced to actual coin size it is not so hot. The obverse bears the five-pointed star, insignia of the Lone Star State; the eagle is for decorative purposes and certainly unnecessary. Reverse: the two portraits are of Stephen F. Austin and Sam Houston. What the winged female figure is for I don't know. Instead of the space it occupies, more space should have been given to the reproduction of the Alamo. Forgot to mention that the six flags on the reverse represent the six countries under which Texas served: Spain, France, Mexico, Republic of Texas , Confederate States, and United States. At any rate, it is an interesting coin .... "
Celebrating the Centennial Early The Centennial Committee intended to use the profits to help finance the 1936 Centennial Exposition, which eventually was held in Dallas on a 186-acre site at a cost of $25 million, attracting about seven million visitors. The idea of profits to be made from multiple issues was not lost on the Texas entrepreneurs. They began celebrating the centennial two years early, with the first issues produced in Philadelphia during October and November 1934 to the extent of 205,113 pieces.
Examples were offered for sale for $1 each through the Centennial Committee. Distribution, which according to advance announcements was to commence in November, began in December 1934, primarily through Texas banks. (Testimony by Robert M. Jackson (secretary to Texas Senator Connally) before the Senate Committee on Banking and Currency, March 11, 1936, told of distribution by other banks as well: "The Texas commemorative coin is on sale by 314 banks in Texas, as well as by banks outside of Texas. And we had the Riggs National Bank here in Washington selling them for some time, and finally they sent back their unsold supply. They sold them for a dollar to anyone who wanted to come down to the bank and get it.") At the outset sales were much lower than anticipated, and before additional varieties could be struck the Treasury Department insisted that the 1934 issue be paid for. This was not possible, so 143,650 coins were sent to the melting pot, perhaps indicating that the world did not need any more Texas Centennial half dollars.
The Centennial Committee felt differently, however, and in November 1935 10,000 coins were struck at each of the Philadelphia, Denver, and San Francisco mints, plus a few additional specimens for assay purposes. The issue price was raised to $1.50 per coin, equivalent to $4.50 per set. In the meantime the Centennial Committee still had some unsold 1934 coins on hand and offered them at a slightly raised price of $1.15 each.
Exploring Possibilities for Profit In correspondence with dealer Walter P. Nichols, dated October 12, 1935, A. Garland Adair, chairman of the American Legion Texas Centennial Committee, gave the appearance of having nothing but the highest altruistic motives and noted in part:
"It has all along been a source of concern to me to keep our program on such a plane that we would have the cooperation and friendship of our citizens who are interested in collecting commemoratives. Unfortunately, when we secured the passage of our bill in Congress we pledged every cent of the premium of 50 cents on each coin for the Texas Memorial Museum. This left us without funds with which to publicize our campaign or for any other expenses in connection therewith.
"To meet this problem, it has been my idea that we secure a very limited number from now on, so that their value would become more apparent even to people who are not collectors. It was further in my mind that we charge $1.50 for the coins bearing the 1935 date and that we would enable us to have a fund with which to do business the rest of the campaign. We are committed to the program of not allowing any of the coins to go into circulation and that we will send all that are unsold back to the Mint for remelting.
"There is a heavy demand for the 1935 coins at $1.50, and I feel sure that they will all be taken up in one week after we have them from the mints. I have not yet been informed by the Mint as to just when the 1935 issue will be ready for us. The growth of the Texas Centennial idea with the development of plans for the Exposition at Dallas and other celebrations over the state also have stimulated interest in Texas coins. They are on sale in over 300 Texas banks."
Nichols, who was very active in buying and selling half dollars in the numismatic market and who in 1936 would become the distributor of the York County (Maine) half dollars, wrote back to Adair with some marketing suggestions, to which Adair replied:
"Indeed happy am I to have your most recent communication. I thank you for the suggestion that we should not change the prices in after years should $1.50 be made the basis of distribution of the 1935 coins. It had occurred to me that through the sale of the 30,000 from the three silver mints that the 50 cents additional would raise for us a fund of $15,000, which economically used and wisely expended would prove adequate for future use and needs. The sale has progressed most marvelously considering the fact that we have never had a dime with which to operate.
"I am going to ask a favor of you; will you please write Miss Mary M. O'Reilly, assistant director, U.S. Mint, Washington, D.C., and ask whether or not a new design could be made for commemorative coins after the first design has been made and adopted, but I am now under the impression that this cannot be done without changing the law. I am fearful of undertaking to change our bill since there is a disposition on the part of Congress not to issue any more commemorative silver coins. When you get this information will you please transmit same to me? We have ordered the dies for the 1935 issue to be sent from Philadelphia to Denver and San Francisco."
Mary M. O'Reilly replied to Walter Nichols stating that no change could be made in the design once it has been authorized by Congress, thus ending the matter, at least for the moment. Not stated by Miss O'Reilly was that the secret was to have Congress pass a new bill authorizing a design change, as was later done with the 1935 "small 1934" Boone half dollars and the 1936 Robinson-Arkansas issue. In 1936 this procedure was attempted by Senator Connally of Texas, who introduced S. 3721 "To provide for a change in the design of the 50-cent pieces authorized to be coined in commemoration of the one-hundredth anniversary of independence of the State of Texas." (The House version of the bill, H.R. 10317, proposed that the director of the Mint be "authorized and directed to provide for a series of not more than five different designs to be placed on the reverse side of the 50-cent pieces.... ")
Testimony given by Robert M. Jackson (secretary to Sen. Connally) before the Senate Committee on Banking and Currency, March 11, 1936, (As printed in Coinage of Commemorative 50-Cent Pieces, the transcript of the hearing, published in 1936.) told of the Texas ha1f dollar situation: "The purpose, of course, is to raise money to help build a memorial museum on the campus of the State University at Austin. This is backed by the American Legion of Texas. The American Legion has spent a considerable amount of money on the present project, and started the coin sale. After they had progressed to a certain point with it they ran into some difficulties, but they kept on with the work, and they have now perfected an agreement with the regents of the University of Texas , and the entire sale of coins is now being handled by a board of the board [sic] of the regents of the University of Texas .... They have made elaborate plans to continue the campaign in Texas to try to sell all of those coins. It is their hope to sell one to every family in Texas as a souvenir of the Texas Centennial..."