In article <r26q4p$sfs$
1...@dont-email.me>,
"Adam H. Kerman" <
a...@chinet.com> wrote:
> BTR1701 <
atr...@mac.com> wrote:
> >"Adam H. Kerman" <
a...@chinet.com> wrote:
> >>What Roosevelt did was make it illegal for creditors to demand gold,
> >>and for individuals to hoard gold.
>
> >With 'hoard' being defined as merely possessing it. It was an appalling
> >overreach of government power.
>
> I agree with you. I remember being told as a kid that Americans couldn't
> own gold and having no idea why, but that didn't go away till Nixon
> finally took us off the gold standard.
Roosevelt's order also led to the fascinating caper and saga of the
stolen gold double eagle coins:
The order (and subsequent ratification by Congress) 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 eagle $20 coins 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 and 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.
These two coins should have been the only 1933 double eagle coins in
existence. However, unknown to the mint, a number of the coins (20 have
been recovered so far) were stolen, possibly by the U.S. Mint cashier,
and found their way via Philadelphia jeweler Israel Switt into the hands
of collectors. The coins circulated among 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 he had spotted in an upcoming
Stack's Bowers coin auction and contacted the Mint as part of his
research. As a result, an official investigation into the matter was
launched by the Secret Service in March 1944. Prior to the
investigation, a Texas dealer sold one of the coins to a foreign buyer,
and it left the U.S. on February 29, 1944.
During the first year of the investigation, seven coins were seized or
voluntarily turned in to the Secret Service and were subsequently
destroyed at the Mint; an eighth coin was recovered the following year
and met the same fate. In 1945, the investigation identified the alleged
thief and his accomplice, Switt, who admitted to selling the nine
(located) coins, but said he could not recall how he obtained them. The
Justice Department tried to prosecute, but the statute of limitations
had passed. A ninth coin was recovered and destroyed in 1952.
The one missing double eagle was acquired by King Farouk of Egypt, who
was a voracious collector of many things, including imperial Faberge
eggs, antique aspirin bottles, paperweights, postage stamps and coins,
of which he had a collection of over 8,500.
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. 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, the coin disappeared and
was not seen again in Egypt.
In 1996, a double eagle surfaced again after over 40 years of obscurity,
when British coin dealer Stephen Fenton was arrested by U.S. Secret
Service agents during a sting operation at the Waldorf-Astoria Hotel in
New York. 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 come from the collection of
King Farouk, though this could not be verified. Charges against Fenton
were subsequently dropped, and he defended his ownership of the coin in
court. The case was settled in 2001 when it was agreed that ownership of
the double eagle would revert 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 a
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 2001, only two months before the
Trade Center was destroyed, the coin was transferred to Fort Knox for
safekeeping.
On July 30, 2002, the 1933 double eagle was sold to an anonymous bidder
at a Sotheby's auction held in New York for $6.6 million, plus a 15%
buyer's premium, and an additional $20 needed to "monetize" the face
value of the coin so it would become legal currency. This brought the
final sale 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 auction took less than nine minutes.
(Note: the article says the coin was taken to the WTC upon seizure, but
it actually spent about six months at Secret Service headquarters
undergoing forensic tests to verify its authenticity. I was allowed to
briefly hold it-- with gloves, of course-- during that time.)