GovernmentExecutive.com

Rep. Frank Lucas, R-Okla., has launched a crusade to free some the world's most valuable coins.

Lucas has sponsored legislation that would mandate that any coin manufactured by the U.S. Mint before 1933 -- but not properly issued -- will no longer be declared the property of the federal government. The cutoff date in the Lucas bill has real-world implications, gaining tremendous support among numismatics.

More than 400,000 gold Double Eagle coins were struck by the Mint in 1933, but almost all were destroyed when President Roosevelt took the country off the gold standard, which in effect outlawed the possession of gold coins. But an unknown number still exist-- coins some believe to be stolen from the Mint before they were destroyed -- and they have become incredibly valuable.

In 2002, a 1933 Double Eagle gold coin was auctioned off for $7.6 million, ending a protracted legal battle between the Mint and a coin dealer over ownership of the coin. Both parties split the proceeds of that sale. In 2005, the Mint seized 10 Double Eagle coins from the family of a Philadelphia jeweler.

Lucas argues that other coin collectors could be put in legal jeopardy, especially over rare coins such as the 1804 silver dollar and the 1913 Liberty head nickel, both of which have been bought and sold dozens of times. Lucas, who started his coin collection as a child, said the Mint has selectively targeted owners of rare U.S. coins and its efforts have clouded the rare coin market.

"The Mint has gone after any 1933 Double Eagle that has been found, but has ignored other coins such as the 1913 Liberty head nickels," he said.

Lucas said he does not intend his bill to be only a boon to rich collectors, noting that it also would require the Mint to preserve the rare coins that come into its possession under provisions of his bill, instead of destroying them as the agency has done in the past.

The bill would allow the Mint to sell off excess rare coins, with the proceeds going to the Smithsonian for its national coin collection.

But the Mint opposes Lucas' efforts. During a House Financial Services Monetary Policy Subcommittee hearing last Wednesday, acting Mint Director David Lebryk testified that while he recognizes the desire of collectors for a clear title for coins and medals sold in the secondary market, courts have repeatedly held that the title of U.S. public property belongs to the federal government.

"We are particularly concerned that this bill would protect the title to rare antiquities and other national treasures, currently owned by the public, from the government [for] a person who happens to possess it -- regardless of whether he knew it was public property, knew it might be illegal to own, or worse, played a role in its illegal production or distribution," Lebryk said.

But Lucas noted some inconsistency in the Mint's stance in the 2002 auction of the 1933 Double Eagle nickel. Still, some lawmakers were not persuaded by Lucas' effort.

"I see no reason to reward collectors who happened to have acquired coins illegally taken from the Mint," said House Financial Services Monetary Policy Subcommittee ranking member Carolyn Maloney, D-N.Y. "Courts are perfectly well-suited for this task."

COMMENTS

• Render unto Ceaser that which is Ceaser's. I don't believe the government is dealing in good faith here. I.E. In 2002, a 1933 Double Eagle gold coin was auctioned off for $7.6 million... Both parties split the proceeds of that sale. In 2005, the Mint seized 10 Double Eagle coins from the family of a Philadelphia jeweler. What's to keep the government from seizing the coin they shared the profits in? Why were the 10 coins seized and not the 1? The mint is missing out on a real money maker by destroying these coins. If they destroyed the 10 seized coins thats over $70 million we wouldn't have had to shell out on 15 Apr. Seems we're possibly missing out on billions in revenue by destroying these old coins, not to mention tax revenue their resale would generate with collectors. Allan Posted August 29, 2007 12:00 PM
• I take issue with the government (the Mint) stating that all rare coins, particularly the 1933 Gold Double Eagle, were obtained illegally. I do not believe that. Many people are coin collectors and may not realize they are considered as such because they have coins that were handed down through the family. My grandfather used to put aside a newly minted coin because he liked it, not because he thought that it would one day be valuable. It is unknown what he had in his possession because when he died, my mother spent the coins she found put away by my grandfather. One of those could have been the 1913 nickel. Was my grandfather a thief? He was not; he was a prominent physician. Was my mother a thief? No; she did not know the coins had any value. I currently have several silver dollars dating from 1878 that my grandfather had put aside (he was born in 1880). Are they truly valuable? Maybe or maybe not. I keep them because they are part of my family keepsakes. To my way of thinking, the government has to prove without a doubt that the coins were stolen. After all this time, i doubt that is possible. The coins should not be confiscated. If the coins are sold, I agree that the Smithsonian should receive part of the proceeds AFTER the individual has paid the resulting federal (and state) taxes. It needs to be remembered that the person selling the coins needs to be paying taxes on the proceeds of the sale. If the government PURCHASES the coins, they should NEVER be destroyed as they are a part of our American heritage. They should be displayed at the Smithsonian for all to enjoy viewing. Jo Ann Posted August 10, 2007 9:24 AM
• I think that the mint should release the coins, or at least allow people who possess them to keep them, if all the mint is going to do is destroy them. If the person in possession of the coin decides to get rid of it they should donate part of the proceeds to the Smithsonian as mentioned in the article. GovExec.com reader Posted July 25, 2006 2:19 PM