Colonial Coin Collectors Club Hosts November 2013 Convention in Baltimore

The Colonial Coin Collectors Club (C4) held its 19th consecutive annual convention at the Baltimore Convention Center, November 6-9, in conjunction with the Whitman Coin & Collectibles Winter Expo.

“Our latest convention was one of the best we have ever had in terms of activity and attendance,” said Jim Rosen, president of C4. “This is the second year we have collaborated with Stack’s Bowers Galleries, and we couldn’t be happier. They are just wonderful to work with.”

The C4 convention featured a large gathering area on the bourse floor with a club informational table, a large colonial Red Book Type Exhibit in addition to three other exhibits, and an area where members could join together, discuss coins, and view and photograph coins. Thursday night of the convention was the social evening where members enjoyed a buffet dinner, a donated-lots auction, and two educational lectures by members of the club. The Friday night auction, a co-sponsored event by C4 and Stack’s Bowers Galleries as part of their Official Auction, was a Massachusetts Silver collector’s delight, with 34 lots offered. During this sale, a number of very rare coins crossed the block, such as a New England Shilling in AU 55, a Willow Tree Shilling, a Willow Tree Sixpence in AU 53, wonderful Oak Tree coinage in shillings, sixpence, threepence and twopence, plus a wide array of Pine Tree coinage. In addition, there was a large offering of Fugio Coppers and a wide array of various state coinages, as well as Machins Mills and Washington pieces. “The auction had a great selection of coins for the advanced and novice collector alike. Kudos to Stacks Bowers Galleries on this wonderful sale,” Rosen added.

C4 is a national, non-profit organization whose mission is to enhance the education and research of colonial coins, currency and other colonial era related numismatic material. The club publishes a quarterly newsletter with informative articles written by its members and guests. The annual convention is held in Baltimore at the autumn Whitman show in association with Stack’s Bowers Galleries, Official Auctioneer of the Whitman Baltimore Expo. The convention offers members a forum for camaraderie and a venue to show their coins to interested parties, and also a weekend to discuss almost anything colonial to those interested in Colonial history. This year a book signing of the highly anticipated ANS-C4 co-published book, “New Jersey State Coppers,” was held, which lead to highly successful book sales. For more information about C4 and colonial numismatics, please visit the C4 website at www.colonialcoins.org. To order the book, please contact the American Numismatic Society at 212.571.4470.

From the Desk of Q. David Bowers: Gold: Good news and bad news

Written by Q. David Bowers, Chairman Emeritus

If you are a “gold bug,” which I have never been, then you may have a tear in your eye as the price of bullion today in December 2013 is less than it has been in recent times. It was not unusual a year ago to have certain dealers and others sell gold in quantity, predicting a price of $5,000 per ounce in the near future. Indeed, at a gathering at a major convention, a program of this type was given, and the audience was asked to show their hands as to believed such a prediction would come true. The majority did.

That said, for a long time gold has remained an excellent store of value on an international basis, a hedge against inflated or weak currencies, and a commodity that finds ready sale. In my own mind I treat gold bullion as one subject and numismatic gold as another. The two do not necessarily move in parallel. As to bullion gold, with inflation being what it is, with international uncertainty not getting any better and the like, the future is probably bright. Whether it will go to $5,000 per ounce in the next few years is a matter of debate. However, it will still remain popular with a large number of people.

On a numismatic plane, the subject of today’s discussion, gold has always been one of the most popular pursuits. Gold dollars, $2.50 quarter eagles, $3 gold coins, $5 half eagles, $10 eagles and $20 double eagles all have a large following. Double eagles in particular are popular, the largest regular American gold denomination and the coin used to convert more than 75% of incoming gold deposits to coin form. It was much easier and more efficient to coin a single double eagle than two $10 pieces, four $5 pieces or eight $2.50 coins.

Today the attractive (in comparison to recent times) gold price prompts a consideration of the double eagle series. Certainly it is a more favorable time than it was a year ago to put together a collection of twenties.

There are several ways to do this. One of the most interesting is to form a type set. There are only six designs:

Liberty Head without motto -- 1850 to 1866. Because of certain treasure finds such as the S.S. Brother Jonathan, S.S. Central America (in particular), and S.S. Republic, beautiful Mint State double eagles of this type are available -- a situation that would not have been dreamed of in the 20th century. The 1857-S in particular, of which there were over 5,500 found on the S.S. Central America is a prime object of desire -- combining high grade and rich history.

Liberty Head with motto, TWENTY D. -- 1866 to 1876. This design, made only for 11 years, adds the motto IN GOD WE TRUST on the reverse, while the denomination remains as TWENTY D. There were no significant treasure finds of double eagles in this date range, and overseas bank hoards yielded relatively little in the way of high grade Mint State examples. Accordingly, most opportunities involve double eagles graded from EF to lower Mint State ranges, with such grades as MS-62 and MS-63 satisfying most desires.

Liberty Head with motto, TWENTY DOLLARS -- 1877 to 1907. Design as preceding, but with the denomination spelled out in full. Double eagles of this design were exported in quantity in the late 19th and early 20th centuries. When Franklin Roosevelt demanded that citizens surrender gold coins in 1933 and 1934, foreign governments and banks held onto their double eagles more tightly than ever before! Beginning in the late 1940s, many of these were repatriated, as detailed in my Whitman book, A Guide Book of Double Eagle Gold Coins. Today, Mint State coins are very common, including such ranges as MS-64 and MS-65. The price now, in December 2013, is considerably more attractive than it was last year at this time.

MCMVII (1907) High Relief. This is the masterpiece of Augustus Saint-Gaudens, a triumph of coinage art. Slightly over 12,000 were made. When they were released there was so much publicity and so much desire to own them that many were saved. Today I estimate that perhaps 6,000 or so exist, many of which are impaired or in low grades. However, there are enough Mint State pieces that examples can be easily found, although the price does cross the five-figure line. Many people feel this is the most beautiful motif ever made for a circulating American coin. It would be hard to disagree.

Saint-Gaudens without motto -- 1907 to 1908. Revised style in lower relief, with Arabic date and without motto. These were made for a very short time, only in December of 1907 and the first part of 1908. However, the marvelous Wells Fargo Hoard brought to market by Ron Gillio, nearly 20,000 beautiful Mint State pieces, has made this type quite available and at a reasonable price. How lucky we all are.

Saint-Gaudens with motto -- 1908 to 1933. IN GOD WE TRUST was added to the reverse of the double eagle in the summer of 1908, a type continued through 1933. While certain issues of the 1920s and all of the 1930s range from scarce to rare, there are many common dates and mintmarks, affording the opportunity to acquire a beautiful example at reasonable cost.

Apart from building a type set as preceding, another pursuit for those enjoying gold is to acquire one of each date and mint of double eagle that is affordable. Believe it or not, this involves over 90% of the issues! Early examples from the 1850s through the 1880s can be acquired in grades such as EF, AU and MS-60 for prices that are quite low, after which Mint State coins are available, many times at a modest premium over bullion value.

That’s it for now. Enjoy your week.

Paper Money of the Week: Rare 50 Escudos Note to be Offered in our New York International Sale

By Matt Quinn, Assistant Director of Currency

Stack’s Bowers and Ponterio is pleased to present a rare Angola Pick 54 1920 dated 50 Escudos note in our upcoming January auction to be held in conjunction with the New York International Numismatic Convention. The very large format note is among the most important offerings in the sale and is one we have never seen before. It is from the "Porto" series of 1920 where the denominations are interestingly the lowly 10, 20, 50 Centavos and then this high 50 Escudos denomination. Angola was one of the first Portuguese overseas territories to have notes circulating under the Banco Nacional Ultramarino, an institution established during 1864 in Lisbon. Most notes of this issuer were produced by London printing companies making this Portuguese printed type all the more important.

The note displays the bank name in large arched lettering at center with large "50" counters at the corners in dark blue and with light blue-green under-printing. The back design is brown with light orange under-prints and features a central vignette of a lake and trees within a vertically oriented oval at center with ornate birds flanking. The note retains nice overall body at the central left and right; the technical grade of Very Good is due to tape removal at the margins and vertically at center. Some thinning has resulted from the tape removal along with splits. These drawbacks however are of little consequence when considering the rarity, which we believe to be in the realm of two to three known. This item will certainly be a highlight in any collection it enters.

United States Coin of the Week: Rare 1802 Half Dime

By James Matthews, Senior Numismatist and Consignment Director, U.S. Coins

The first 1802 half dime to sell at public auction is believed to be the William A. Lilliendahl Collection specimen sold in December 1863. At that time the piece was described as the finest of the three known specimens, although Harold P. Newlin noted the coin was in only "Very Good condition". It sold for $340, a record price that stood for a generation until Newlin's own finer specimen of this rarity was sold at auction. In comparison, one of the finest known 1794 silver dollars brought a comparable $285 in another 1863 auction, confirming the nascent American numismatists already had a firm grasp on the true rarity of the 1802 half dime. The original mintage is believed to be only 3,060 pieces, and these small silver coins suffered more than the usual indignities of circulation; they simply did not survive intact.

Well-known researcher and numismatist David J. Davis studied this issue extensively. With the assistance of numismatic organizations and other well-known numismatists, he concluded that no more than 35 distinct examples existed (published in his extensive listing of all known auction appearances in the 1999 reference Federal Half Dimes 1792 - 1837 by Russell J. Logan and John W. McCloskey). Since that time David Davis has passed away, but shortly before his death he told me he believed that perhaps as few as 25 distinct examples exist, as a few of those previous auction offerings were found to be counterfeits -- or repaired and straightened coins previously listed as bent or damaged. Remarkably the 1802 half dimes in the National Numismatic Collection at the Smithsonian and the American Numismatic Association Museum are both coins of altered dates and thus not included in the census.

Much has been written about this particular issue. The first such research was conducted by leading numismatist of his era Harold P. Newlin, in 1883, when he published his work titled A Classification of the Early Half-Dimes of the United States soon after he sold his collection of half dimes through J.W. Haseltine on April 10, 1883. In that publication Newlin enumerated most of the known auction appearances -- a total of 16. In 1931 Daniel W. Valentine published his work on the entire half dime series The United States Half Dimes in a pamphlet issued by the American Numismatic Society, later reprinted with additional notes by various numismatists in 1975. Valentine confirmed the rarity of the 1802 half dime but did not give a listing of individual specimens. In the 1975 Valentine reprint additional information on this date was provided by Walter Breen, and included a list of several known specimens. Currently the best reference on this particular date is the David J. Davis research published in Federal Half Dimes 1792-1837.

Comparable to the 1823 Capped Bust quarter in rarity, the 1802 half dime is indeed one of the rarest United States silver coins that actually circulated. The low mintage likely reflected the lack of demand in that particular year, as both the 1801 and 1803 half dimes are certainly far more plentiful by comparison. With the pursuit of these great rarities staying a major numismatic focus, it is likely that demand will simply keep rising.

Listed as #61 in the Jeff Garrett and Ron Guth 100 Greatest U.S. Coins reference, the 1802 half dime is highly desirable as it was not an unauthorized midnight project, but simply a low mintage date that served its intended purpose in the channels of commerce. Very little attention was paid for a few generations after these half dimes were struck, so survival was entirely random. Hence, the vast majority are well worn and many are damaged, unlike the present offering which is rather wholesome on balance. To date PCGS lists just 11 examples certified by that service, the finest is AU-55. Over the years 1802 half dimes have been available for a price; in more recent times the supply has pretty much dried up and offerings may be years apart. We are pleased to offer collectors the opportunity to take this desirable example home in our New York Americana Sale in February 2014.

Answers for the Avid Collector: Liberty Seated Silver Dollars

Answers for the Avid Collector

Do you have a question about anything numismatic? Want to know what’s going on here at Stack’s Bowers Galleries? If so, send your inquiries to AnswersfortheAvidCollector@StacksBowers.com and get a response to your important questions from our team of experts!

Question:  Why were no Liberty Seated silver dollars minted for circulation in 1858? I understand that only Proofs were made, to the extent of several hundred pieces. In looking at other 1858 silver coins, from the three-cent piece to the half dollar, I find that there are no rarities. It seems unusual that dollars weren’t struck while the other denominations were. –P.T.

Answer:  Liberty Seated silver dollars of this era were not made on speculation or for the account of the government, but in direct response to silver bullion deposits made by banks, silver refiners, and others, who specifically requested that payment be made in silver dollars. At the time, freshly minted Liberty Seated dollars contained over $1 worth of silver and thus traded at a premium. The dollar denomination was not included in the Act of February 21, 1853, which reduced the authorized weights of silver issues from the half dime through the half dollar. Probably, most people making silver deposits in 1858 requested smaller coins of the type that circulated readily, pieces of lighter weight made under the 1853 act. In any event, no one called for Liberty Seated dollars and that’s why no pieces were struck.

World Coin of the Week: Extremely Rare 1710 Bolivian “Heart” 8 Reales

By Kent Ponterio, Senior Numismatist and Consignment Director, World and Ancient Coins and Chris Chatigny, Cataloger

There seems to be no shortage of incredible highlights for our approaching Stack’s Bowers and Ponterio January New York International coin show and auction. To date we have featured the Pattern Grano and Half Grano, and the unique 1755 Nuevo Reino “Milled” 8 Escudos. To continue our streak of amazing Spanish Colonial rarities, this week we preview a coin which may not visually conform to a coin’s standard dimensions, but nonetheless stands as a true numismatic rarity.

This extremely rare piece has a slightly mysterious background, as its exact purpose is uncertain. One predominant theory is that since the heart shape is similar to “The Most Sacred Heart of Jesus” or simply “Sacred Heart,” they could have been created for special religious purposes. As the religious demographic of Latin America is predominantly Roman Catholic, it seems to be indicative of their religious nature. Regardless of their true purpose, these extraordinary “Heart”-shaped pieces were carefully crafted with special planchets and were carefully aligned to give the piece a medallic die axis. In addition to this special preparation, they are nearly always found pierced for suspension and are often gilt to be worn on display.

The obverse (cross side) prominently displays the Cross of Jerusalem, with the castles and lions of Castille and Leon in the quadrants. The “8” above the cross represents the denomination of 8 Reales, and the first of three full dates “710” is visible below the cross. A good-sized portion of the legend “D.G. HISPAN” is visible. The mintmark “P” for Potosi is to the left of the cross, while the assayer’s mark “Y” is shown at the right. The reverse (pillar side) contains the Pillars of Hercules, located at the Straits of Gibraltar, indicating the gateway out of the Mediterranean and into the Atlantic. The center Latin legend “PLVS VLTRA” means ‘more beyond’ and most likely refers to the vast uncharted territory beyond the Pillars which the Spanish explored and colonized. The “P” mintmark appears in the upper left and lower right, and the “Y” assayer’s mark appears in the lower left and upper right. The “8” denomination appears in the area above the central legend, with a “710” representing the date below. Waves are represented underneath the Pillars as well. A large portion of the outer legend appears on this side, including the date in the seven o’clock region. Overall this is a well-struck example with near full legends, three full dates and three clear assayer’s letters. A hint of contemporary gilding is still present in the protected areas giving the piece a lovely marigold tone. This extremely attractive piece is sure to greatly enhance its new owner’s cabinet. We here at Stack’s Bowers are only aware of one other example of a 1710 “Heart” 8 Reales piece, which was lot #193 in our Sale #42 of the 1990 Paul Karon Collection.

Preview this impressive coin along with the rest of our New York International auction this December at the Stack’s Bowers and Ponterio office located in Irvine, California. For details please refer to the Auction Schedule/Details link under Current Auctions at www.StacksBowers.com. To schedule an appointment, please call 800.566.2580. While our Stack’s Bowers and Ponterio January New York International sale is closed for further consignments, we are currently taking consignments of world and ancient coins for our April 2014 Hong Kong and August ANA sales. If you are interested in consigning your coins and paper currency (whether a whole collection or a single rarity) be sure to contact one of our consignment directors.

Remember When: Old Time Collections Part 2

By Harvey G. Stack, Senior Numismatic Consultant

The Make Up of the Milton A. Holmes Collection

The collection of Milton A. Holmes was offered by Stack’s at public auction March 5-8, 1960 in six sessions! The collection was very diverse and presented a "treasure trove" for collectors trying to add choice and rare coins to their collections. Stack’s received mail bids from all over the world and there was bidding by phone when callers could get through -- remember this was 1960 when phones were not as plentiful as they are today. The auction room for each session attracted standing room only audiences of collectors, dealers and representatives; the huge response showed what a rare opportunity this was.

The Milton A. Holmes Collection was extremely diverse. He collected some ancient coins, no great rarities, but as examples of currency used during that period. That's how his interest began, learning about how coins were used through the centuries. He had a vast (for the time) collection of foreign gold coins, about 1,500 pieces, which spanned the Byzantine period through the Middle Ages to the 20th century. 

He specialized in Latin and South American coins, (as these were coins that circulated in the United States) and then had a sampling of other gold coins from Asia and Africa. The coins represented the gold that circulated along with United States coins in America and illustrated the similarities of one country’s gold coinage to another. Hence he had examples that were used to facilitate world trade. If available today, the Holmes coins would have constituted a foreign gold auction by itself!

The balance of the collection, about 2,500 coins, were from the United States. As noted in Part 1, being a collector when Milton A. Holmes collected was not easy. The coins were not offered for sale in any great numbers and collectors held on to them in their holdings. This added to the fun of finding missing links.

Mr. Holmes colonial coins contained just a small representative selection of the series. However, his early copper collection was formidable. His half cents started with 1793, had a good date assemblage. For those dated 1831 to 1857 he had 28 different Proof examples (in those days they were termed "specimen strikings" as that was what the Mint used on their billings of the coins). His large cents made up a more concentrated collection, starting with 1793, moving on to some 60 varieties of 1794 (he had the Hays book as a guide), 1798 (16 varieties from the Newcomer sale), a superb 1799 (sold to him by Macallister) and many other early dates. He also had an outstanding collection of late date cents 1816-1857. It was evident he had the "copper fever" that Dr. Sheldon wrote about, and he used both the Sheldon and Newcomb books in his variety collecting.

The Holmes Collection also had a vast offering of small cents, two- and three-cent pieces, and five-cent pieces, mostly complete with circulated to Mint State and Proof examples. We believed the many of the Mint State examples came from change in circulation, while the Proof coins came from original Proof sets sold by the Mint each year.

Next week I will tell more about the silver coins in the Milton Holmes Collection.