1933 Double Eagle

From Freepedia

Image:1933 double eagle.JPG


1933 Double Eagle
Value: 20.00 US dollars
Mass: unknown
Diameter: unknown
Thickness: unknown
Edge: milled
Composition: Gold
Obverse
Design: Lady Liberty holding a torch and olive branch, backed by a glory
Designer: Augustus St. Gaudens
Design Date: 1907
Reverse
Design: Bald eagle in flight, backed by a glory, with motto
Designer: Augustus St. Gaudens
Design Date: 1907

The 1933 US 20 dollar gold coin (known as the double eagle) exists only in very small numbers. Over 450,000 were minted, but never officially circulated, because of the end of the use of gold dollars in 1933.

Contents

Production of the 1933 Double Eagles

In order to end the 1930s general bank crisis, U.S. president Franklin D. Roosevelt issued an executive order and, with the Emergency Bank Relief Act (March 1933) and the Gold Reserve Act (January 1934), outlawed the circulation and private possession of United States gold coins for general circulation, with an exemption for collector coins. This act declared that gold coins were no longer legal tender in the United States, and people had to turn in their gold coins for other forms of currency. The 1933 gold double eagles were struck after this executive order, but because they were no longer legal tender, most of the 1933 gold coins were melted down in late 1934--some were destroyed in tests. Two of the $20 double eagles were presented by the United States Mint to the U.S. National Numismatic Collection, and they were recently on display in the "Money and Medals Hall" on the third floor of the National Museum of American History.

These two coins should have been the only 1933 double eagle coins in existence. However, unbeknownst to the Mint, a number of the double eagle coins (20 have been recovered so far) were apparently stolen, possibly by the U.S. Mint Cashier, George McCann. At least nine of these double eagle coins, which were illegal to possess, found their way via Philadelphia jeweler Israel "Izzie" Switt, into the hands of collectors. (Switt's family recently disclosed an additional ten coins, see below.)

The double eagle coins made their way through the hands of collectors for several years before the Secret Service became aware of their existence. The matter came to the attention of Mint officials when an investigative reporter looked into the history of the coins and contacted the Mint as part of his research. The officials then became aware that a number of the coins had escaped to the public, and in 1944 an official investigation was begun by the Secret Service. Seven of the coins were discovered and turned over to federal agents (or seized) within the first year of the investigation, with one coin remaining in public possession until 1952. However, at least one double eagle coin had found its way overseas.

The Egyptian Double Eagle

One of the missing double eagles was acquired by King Farouk of Egypt, who was known for being playboy and a spendthrift. He was also a voracious collector of many things, including Imperial Faberge eggs, antique aspirin bottles, postage stamps - and coins. In 1944 Farouk purchased a 1933 Double Eagle, and in strict adherence with the law, his ministers applied to the United States Treasury Department for an export license for the coin. Mistakenly, just days before the Mint theft was discovered, the license was granted. The Treasury Department attempted to work through diplomatic channels to request the return of the coin from Egypt, but World War II delayed their efforts for several years. In 1952 King Farouk was deposed in a coup d'etat, and many of his possessions were made available for public auction (run by Sotheby's) -- including the double eagle coin. The United States Government requested the return of the coin, and the Egyptian government stated that it would comply with the request. However, at that time the double eagle coin disappeared and was not seen again in Egypt.

A double eagle surfaced again after over forty years of obscurity, when Stephen Fenton was arrested by US Secret Service agents during a sting operation at the Waldorf-Astoria hotel in New York, and the British coin dealer was questioned. Although he initially told investigators he bought the coin over the counter at his shop, he later changed his story. Under sworn testimony, he insisted the double eagle had originated with the collection of King Farouk, though there was no way to be absolutely certain of this. Charges against Fenton were subsequently dropped, and he defended his ownership of the coin in court, and in 2001 the case was settled. The terms of the agreement included: ownership of the double eagle was returned to the United States Government, and the coin could then legally be sold at auction. The United States Treasury issued a document to "issue and monetize" the coin, thereby making it the only legal tender gold coin in the United States.

When the coin was seized, it was transferred to a holding place believed to be safe: the Treasury vaults of the World Trade Center. When the court settlement was reached in July of 2001, the coin was transferred to Fort Knox for safekeeping. Less than two months later, the World Trade Center was destroyed in the September 11, 2001 attacks.

On July 30, 2002, the 1933 double eagle was sold to an anonymous bidder at a Sotheby's auction for $6.6 million, plus a 15 percent buyer's premium, and an additional $20 needed to “monetize” the face value of the coin so it would become legal currency, bringing the final sales price to $7,590,020.00, almost twice the previous record for a coin. Half the bid price was to be delivered to the United States Treasury, plus the $20 to monetize the coin; while Stephen Fenton was entitled to the other half. The whole auction took less than nine minutes.

Ten More Coins

In August 2005, the U.S. Secret Service announced the "recovery" of 10 1933 Double Eagle gold coins from the family of Philadelphia jeweler Israel Switt, the man who admitted selling the first nine double eagles recovered a half century earlier. In September 2004, the coins' owner, Joan S. Langbord, surrendered the 10 coins to the United States Secret Service.

After the announcement that the US Secret Service had recovered the coins and that they had been authenticated, Ms. Langbord claimed that she inherited the coins from her father via legal means, and is planning a federal suit to recover the seized coins. To that effect, Langbord has retained the services of the attorney that represented Fenton with the only Monetized 1933 Double Eagle (Barry Berke).

According to various accounts, Israel Switt had many contacts and friends within the Philadelphia Mint, and reportedly had access to many points of the minting process. It's speculated that Switt might've obtained examples of the 1933 Double Eagle during a narrow time period before the coins would've been ordered destroyed. (One theory would be that Switt swapped regular Double Eagles for the 1933 examples by mint employees, thereby not compromising accounting books and inventory lists.)

The discovery of these 10 pieces (with a estimated guess of maybe 5 more unaccounted examples) in addition to the two held by the Smithsonian Institute and the one example sold for $7.59 Million has cast a serious light on these fabled coins in many ways. With the 10 coins, the population of known 1933 Double Eagles skyrocketed 300% overnight.

If the coins were sold on the open market other than the United States (a point some collectors have wondered, as to why Switt's heirs didn't seek the advice of independent coin experts rather than wantonly surrendering all of the coins to the US Goverment), estimated prices could've topped around $10 Million per coin. Basing on the one sold specimen alone, the 10 coins would've commanded at least $76 Million as a group.

The Mint has stated an intention to save the coins for display. Until the early 1970s, when President Nixon took the Nation off the gold standard and President Ford signed legislation that again made it legal for the public to own gold bullion, any recovered 1933 Double Eagle, as gold bullion, was destined to be melted, so while Double Eagles recovered prior to 1974 were melted down, any Double Eagle recovered now can be spared from this fate. It has been argued that the double eagle coin can not be the legal possession of any member of the public as they were never issued, hence they remain the property of the US government. Also, by melting them, the US Mint might be put into a serious legal quagmire if Switt's heirs should with their case against the goverment.

It also puts the only monetized 1933 Double Eagle in a serious legal question as well: was that coin the true Farouk Specimen (which had no proof it was the Exported Coin; Fenton has only provided proof that it came from a source closely related to King Farouk), or is the real one hidden somewhere with all the original paperwork intact?

In the Novemeber 2005 issue of COINage, another legal issue also has arisen from the seizure: Could the US Mint and the US Secret Service go after the owners of such "suspicious" rarities as the 1804 Silver Dollar, the 1913 Liberty Head Nickel, and the 2000 $1.25 Mules? All three were allegedly made illegally and/or under suspicious circumstances, and all could theoretically be considered to be "stolen" US Property. The issue also puts error coins and "waffle" coins also in possible legal limbo.

See also: Double eagle

Unauthorized replicas

In 2004, National Collectors Mint released gold-plated replicas of the 1933 Double Eagle, ostensibly under the authority of the Northern Mariana Islands, a U.S. territory. NCM advertised and certified the coins as "legal tender of the CNMI", a bogus designation.

The replica coins did not include any "REPLICA" or "COPY" indications on their faces. The design of the replica coins match the original coins in concept of design, though were not physical replicas; the only difference in basic design between the NCM replicas and the original double eagle was the addition of the CNMI territorial seal under the U.S. motto on the reverse.

After some controversy over the nature and marketing of these replicas, the coins were reissued with the word "COPY" stamped across the eagle's stomach.

Further Reading

External links

Retrieved from "http://en.freepedia.org/1933_Double_Eagle.html"


Views
Personal tools
Similar Links