Commemorative Coins of the United States

Market Plans and Problems

The Arkansas Centennial Commission, as it came to be known, wanted to market coins as soon as possible. Plans were made for the production of coinage at the earliest possible date. (The Arkansas Centennial Commission was an official department of the State of Arkansas and maintained offices in the War Memorial Building, Little Rock (earlier address: Arkansas Honorary Centennial Celebration Commission, P.O. Box 1300, Little Rock). A.W. Parke served as secretary and signed most of the correspondence and advertisements and was the central figure in coinage distribution. Honorary chairman was J.M. Futrell, governor of the state; chairman of the Executive Committee was H.C. Couch; director of the centennial celebration was Albert R. Rogers. Early orders (those received at least up to April 23, 1935, per correspondence with Walter P. Nichols) were handled by Robert E. Wait, chairman of the Coin Committee, who wrote on Arkansas Bankers Association stationery.) In May 1935, 10,008 pieces were struck in Philadelphia and, apart from the eight pieces reserved for assay, the coins were shipped to Arkansas, where they were sold during the next several months. In November of the same year 5,505 pieces were struck in Denver and 5,506 in San Francisco. An additional group of 3,000 Philadelphia Mint coins was ordered. The original offering price was $1 per coin. It developed that many 1935 Philadelphia Mint coins were sold at that price but that only a few Denver and San Francisco coins were, for B. Max Mehl purchased nearly all of the branch mint coins in a bulk transaction and soon raised the "issue price" to $2.75 each.

B. Max Mehl, in his monograph, The Commemorative Coins of the United States, 1937, told of his personal involvement with the 1935-dated Arkansas coins: "Another coin which 'beat the gun.' Arkansas was admitted to the Union in 1836 and this coin commemorates that important event, important to Arkansas. However, the first issue was coined in 1935 at which time 10,000 coins were struck at the Philadelphia Mint. These were practically all sold out in the first eight or nine months of 1935. The Committee in charge continued to receive requests for the coins and decided to coin an additional small quantity. They communicated with the writer and upon his suggestion it was decided to coin 3,000 more at the Philadelphia Mint and 5,500 more at each of the branch mints, Denver and San Francisco, the major portion of which was purchased by the writer .... I don't think the coin would win any beauty prize, but with its limited coinage it is becoming a member of the 'rare family." Mehl could not have paid much more than face value for the 1935 Arkansas coins, for he retailed them for just $1 each for a short time during the year of issue.

David M. Bullowa related the following concerning the sale of the early pieces: "The 1935 Philadelphia Mint pieces were sold by the Commission directly, but the bulk of the branch mint issues was handled by a dealer [Mehl]. The Arkansas Centennial Commission of Little Rock, Arkansas, did not care to handle the retail sale of these coins after 1936, and as a result, as early as 1935 the Commission was traveling about the country, prepared to sell its rights to the highest bidder. Because of this unsettled situation, the Arkansas series has been nicknamed the 'orphan issue,' as they were available anywhere except Arkansas."

Early in January 1936, by which time the commemorative craze had been fanned from a spark into a flame by the unavailability and subsequent skyrocketing value of the low-mintage 1935 with "small 1934" Boone issues, Mehl felt that the market could stand a higher price for the Arkansas issues, so he offered his supply of 1935 coins at the advanced price of $ 2 for the Philadelphia pieces and $2.75 each for the branch mints. A special offer enabled a buyer to acquire a pair of branch mint pieces for $5.

By January 20, 1936, Mehl had raised his prices again on 1935-dated Arkansas half dollars. A brochure made this offer: "NOW your opportunity for ... numismatic investments is again 'knocking at your door.' Last month 5,500 Arkansas Centennial half dollars were minted at the Denver and San Francisco mints. I have a limited number of this very limited coinage and offer them to you until February 20th, subject to prior sale, at these special low prices: 1935 Arkansas Centennial half dollars. Denver and San Francisco mints, $2.95 each; 1935, Philadelphia Mint, $2.25; Special price for the set of three coins, only $7.65. (If you already have the Philadelphia Mint coin, I'll let you have the pair of rare San Francisco and Denver coins for only $5.75 for the two.)

"This special offer is good only until February 20th. Not more than 10 coins of each will be sent to anyone party. If any of my limited supply of these rare coins are unsold on February 20th, the price will advance to $3.50 or more each. After that date positively no orders will be accepted at the above special prices. If you will stop to consider that 10,000 Hudson half dollars were issued, and only a few months later they were selling at $8.50 each; that the 10, 000 Spanish Trail coins issued just three or four months ago are selling for $6 each; it is not necessary for me to tell you just when or how high these Arkansas half dollars will go, since only 5,500 of each of the branch mints and only 13,000 of the Philadelphia Mint were coined. Maybe you are not buying coins for investment, but it does make you feel darn good to know that the coins you buy are worth a great deal more than you paid for them. Your purchase of the above coins will certainly be a better investment-with greater profit-than you could have in any other line .... "

Notwithstanding all of the enthusiasm he expressed in his advertising, apparently Mehl was less than satisfied with the deal, for he did not seek to handle as an original distributor the next Arkansas coins, those dated 1936. During 1936, the actual centennial year, the Arkansas Centennial Commission handled the bulk of sales. A.W. Parke, secretary of the Commission, first offered each of the three Philadelphia, Denver, and San Francisco coins for $1 apiece, (Letter from A. W. Parke to H.J. McCloskey, February 12, 1936. Bowers and Merena Galleries Reference Collection. In a transaction involving four coins 21¢ additional for postage was charged.) but on February 1, 1936 he raised the price to $1.50 per coin, later to $4.50 offered only as a set of three. Still later Parke decided that unsold sets should be sold for $6.75, which was equal to $2.25 per coin. Sales were sluggish, particularly after the crash in the commemorative market which occurred in late summer, and thousands of unsold pieces were wholesaled to dealers (including B. Max Mehl) at little if anything over face value.

In correspondence from B. Max Mehl to Walter P. Nichols, April 6, 1937, Mehl discussed the Arkansas design: "I think it is a horrible monstrosity, yet 1 have received quite a number of letters saying that it is one of the most beautiful coins of the series. In the likes and dislikes of designs of coins, it is no different than the likes and dislikes in other matters. Some of us like to wear red neckties and others like blue, and so it goes."