Modern U.S. Commemorative Coins|
May 27, 2011
Congress has authorized a myriad of commemorative coin series since 1982. Commemorative coins honor events, people, organizations, or other things, and are authorized by law. They are official U.S. government issues and legal tender, but they are not intended to circulate. Instead, the U.S. Mint—at a premium above face value—sells them directly to collectors. Laws authorizing commemorative coins usually mandate that a certain amount of the purchase price benefit a group or event related to the coin’s theme.
In terms of cost, collecting modern commemoratives is a step up from collecting coins from circulation at face value or buying them at shops or shows for a few dollars each. But focusing on one or more collecting strategies, as outlined earlier, can keep purchases within a budget.
The Story Behind The Coins
The first U.S. commemorative coin was an 1892 half dollar for the Columbian Exposition. The exposition was held May 1-Oct. 30, 1893, in Chicago to commemorate the 400th anniversary of Columbus’ arrival in the New World. The U.S. Mint struck 950,000 Columbian half dollars dated 1892 and more than 1.5 million dated 1893.
The Columbian half dollar opened the door to many other commemorative coins from the 1910s and continuing into the 1950s. Most were silver half dollars, but there was also an 1893 quarter (also for the Columbian Exposition), a number of gold dollars, two gold $2.50 coins, and two gold $50 coins.
The coins were sold by the Mint at a premium above face value with a portion of the proceeds benefiting some organization or event related to the coin’s theme. Some of the coins commemorated state anniversaries or national themes, such as the U.S. Sesquicentennial in 1926.
There were no less than 18 commemorative half dollars issued in 1936 alone. Among them was an issue commemorating the 75th anniversary of the Battle of Gettysburg. Others, however, were of little national importance, such as issues for the Cincinnati Music Center and the centennial of Elgin, Ill.
Congress grew weary of U.S. coinage being used as local fundraisers, and the flow of commemorative coins slowed in the 1940s and ’50s. The last issue among what are commonly called “early” commemoratives was a 1954 half dollar honoring Booker T. Washington and George Washington Carver.
A 28-year hiatus on commemorative coinage ensued until Congress authorized a half dollar in the traditional 90-percent-silver composition to honor the 250th anniversary of George Washington’s birth in 1982. Thus began what are commonly called “modern” commemoratives.
The Washington coin was a winner in many respects: First, its theme was of truly national significance and worthy of commemoration. Second, its design by Mint engraver Elizabeth Jones featured a striking depiction of Washington on horseback, a departure from the staid busts used for portraiture on coins since the Lincoln cent of 1909. The reverse, also designed by Jones, features a view of Washington’s Mount Vernon home.
These factors, combined with the long break in commemorative coinage, made the coin popular with collectors. The Mint sold more than 2.2 million uncirculated versions (“D” mintmark) and almost 4.9 million proof versions (“S” mintmark).
Like the Columbian half dollar 90 years earlier, the George Washington half dollar opened the door to more commemorative coinage, and like the commemorative coinage of the 1930s, an undesirable proliferation resulted. The coins’ themes in the 1990s weren’t as localized as many of those in the 1930s, but commemorative coinage became an easy mark for senators and U.S. representatives looking to do a favor for a constituency or a favor for a fellow lawmaker by offering their vote for a commemorative coin program. Commemorative coins could raise funds for a pet cause through surcharges on the Mint’s sales of the coins, and a vote for a program went largely unnoticed by the general public.
The year 1994 alone brought five commemorative coin programs: World Cup soccer, National Prisoner of War Museum, U.S. Capitol Bicentennial, Vietnam Veterans Memorial, and Women in Military Service Memorial. Although each theme had its virtues, the market for commemorative coins couldn’t keep up with all the issues, and sales plummeted from the highs of the Washington half dollar and other early issues in the modern era.
In response, Congress passed the Commemorative Coin Reform Act of 1996. Among other provisions, it limits the number of commemorative themes to two per year. In addition, congressional proposals for commemorative coins must be reviewed by the Citizens Coinage Advisory Committee, which reports to the Treasury secretary. The 10-person committee consists of members from the general public and those with credentials in American history, sculpture, and numismatics.
This article is a selection from the book, The Instant Coin Collector, by Arlyn G. Sieber. Click here for more information about this and other informative references. Also, check out our Collect Coins series for more information for beginning collectors.
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