Dear Dave:
Weighing gold coins at the Philadelphia Mint in an early 20th-century postcard.
Here are three topics related to U.S. gold coinage that I have always been curious about. Perhaps you will find them worthy of being discussed based upon your knowledge.
We have all seen the historical comments regarding "stacking" of gold coinage. I have never seen any information on how gold coinage was actually handled by banks (other than the obvious bagging of coinage) during the period when the U.S. was on the gold standard. Did banks use horizontal trays for gold (similar to the trays found in most banks today for coinage) or did they use any type of vertical tray? Or, were the coins simply handled one at a time? Were gold coins ever handled in rolls as is done today with coinage?
It is clear to me that the U.S. government has always conducted a "vendetta" regarding the 1933 $20 gold coin. Based upon extensive reading I am still not sure that I understand the genesis of this government desire to confiscate this issue, particularly when there are many coins that were clearly produced or distributed without any documentation at all, and available to collectors with no government interest in confiscating them.
Firstly, in 1933 if someone had removed a quantity of 1933 $20's from the Philadelphia Mint by substituting an equal number of earlier $20's would anyone have cared? The books would balance and it is even debatable if this would constitute any type of "theft". Secondly, the government has now introduced the concept of "monetization" regarding the 1933 $20's. I believe that the 1933 $20's were lawful and legal coinage of the U.S. once they were judged by the appropriate authorities to meet all the legal requirements for that coinage (fineness, weight, etc). Whether they were issued by the cashier or "monetized" (whatever that means in the context of 1933 activities) is immaterial.
Obviously, today there are issues regarding this so called "monetization" since coins are not specie (and have no essential intrinsic value or value of any kind) until they are released for circulation by the mint and the seignorage is placed on the books. This is a modern concept and one that is not applicable for gold and silver coinage, which had an inherent value near actual face value.
Here is another question for you that might be interesting. The Nevada casinos were probably the biggest user of Morgan and Peace dollars (in slot machines). Although I consider it to be improbable due to the high value of the coinage, are you aware of any coin-operated devices that were designed to accept gold coinage?
Thanks for your consideration.
Sincerely,
Jeff S.
Dear Jeff S.:
Thank you for your e-mail letter. I have not come across any specific information about banks handling gold coins, other than seeing some cast iron trays in which large denomination gold coins could be arranged or stored along with silver coins. These seem to have been in common use toward the end of the 19th and in the early 20th century. I have never seen a paper-wrapped roll of gold coins and do not know if these were used. I imagine that due to their value they would need to be carefully inspected when transferred in quantity, and perhaps rolls would not have been ideal.
With regard to the 1933 $20, as I am the expert witness for the owners of this, I cannot comment in detail (although I do appreciate your thoughts), other than to say that they make sense to a lot of people. R.W. Julian has written extensively on this, and you might consult his commentaries. In fact, the Professional Numismatists Guild has filed a brief supporting the legality of the 1933 double eagle. Did you know that at least 90% of all pattern coins struck at the Philadelphia Mint from 1859 to 1885, and now in the hands of collectors, were produced without detailed records being kept at the Mint, and privately sold by Mint officials and insiders?
Concerning your last question, I have never seen an antique slot machine that would handle gold coins, or, for that matter, silver dollars. The highest I have seen among antique (say, pre-1940) is half dollars, and those are exceedingly rare. The very early classic machines by Mills, Caille, and others, circa 1898 to 1910, typically were fitted for nickels (the favorite) or quarters, hardly ever for cents, dimes (their lightness of weight caused problems with the mechanisms), or half dollars.
Jeff, thanks again. Best wishes.
Sincerely,
Dave