Law in Your Pocket

The Legal Underpinnings of u.s. Circulating Coinage

By Benjamin J. Keele U.S. Constitution vested authority over
coinage to the federal government. I

!b
aws affect virtually all Coins are manufactured by the United
Itl societal activities. One States Mint, an agency in the Treasury
example is circulating Department. \10st circulating coins
coins. For numismatists, legal sanction are produced at mints in Philadelphia
by a government is a necessary and Denver. but mints also exist in
characteristic of coins. If a stamped bit San Francisco and West Point. NY. All
of metal is issued
by a private
entity and is not
recognized by a
government for
use in commerce,
it is not a coin.
but a token or
medal. A quick
look at some
laws relating to
circulating coins
(as opposed to
non-circulating
bullion and "Scelle at the Signillg of the Constill/tioll of the U"ited States"
commemorative
coms. which, The Constitution. shown being signed ill this Howard
while legal Chandler Christy painting. gives the federal government
tender, are never authority over coinage.
spent) will
show that coins serve as long-lasting coins generally are marked 'with their
reminders of the subjects they depict year of mintage and the mint that pro­
and the laws that made their creation duced them. but the date is not always
possible. perfectly accurate. When circumstanc­
es warrant (such as a coin shortage in
Under the Articles of the Confeder­
1964). the Mint can choose to use one
ation. each state had authority to mint
date for multiple years. =
coins. This resulted in a hodgepodge
of coins issued by states and foreign The denominations and composi­
nations with differing values based tions of coins are prescribed by statute.
on metallic composition. To foster a , Authorized circulating denominations
standardized, national currency, the ha\e not changed since gold coins were

42 The Cmttnc/l SUvl:V1ER 2010

 discontinued in 1933, but the metallic
compositions have changed as certain
metals have bccome more expensive.
For example, dimes. quarter dollars.
and half dollars were mostly silver un­
til 1964, but the Coinage Act of 1965
.j changed them to cupro-nickel clad
the billions of coins the Fed purchases
for distribution to banks). The coins are
sold at face value. So. if metal prices
are not a problem. the Mint makes a
profit. called seigniorage. which is then
transferred to the Treasury.f'

(a copper core sandwiched between a While the composition of most

thin copper-nickel alloy -- you can see
the copper on the edges of post-1964
coins). In 1982. copper became too
expensive to justify making one-cent
coins (despite popular opinion. "pen­
ny" has never been an official U.S.
denomination). So, since 1982. thosc
ubiquitous coins with Lincoln's visage
have been mainly zinc.
The Mint is almost certainly look­
ing into alternatives to copper and nick­
el. which have become costly enough
that one-cent and five-cent coins (many
people call five-cent coins '·nickels."
but they are actually only 25 percent
nickel) have become worth more in
metal than their face value. This lead
the Mint to promulgate regulations for­
bidding people to amass coins and send
them abroad for melting.
The Mint sells almost all its coins to
the Federal Reserve (collectors can buy
some coins, too, but nothing close to
U.S. coins has not changed very much
in decades. the images on thcm have
changed quite a bit. especially in the
last decade. Only the dime and half dol­
lar have been left unchanged for a long
time. John F. Kennedy appeared on
the half dollar in 1964. and the reverse
was changed for the bicentennial. The
Franklin D. Roosevelt design for the
dime design has not been altered since
1946. Nothing is stopping the Mint
from redesigning these coins. Without
congressional directive. the Mint can
change coin designs after 25 years.- so
perhaps the dime and half dollar will be
modified in the ncar future.
Coin designs are meticulously
craned and, to a degree. standardized
by law. In addition to identifying data.
such as date and denomination. gener­
ally all coins minted today must bear
the legends "In Clod We Trust." "Liber­
ty" and "E Pluribus Unum.'" The faces
depicted on coins are usually those of

the author
Benjamin 1. Keele has enjoyed numismatics since he was
12 years old. He earned a law degree from the Indiana Uni­
versity Maurer School of Law Bloomington in 2009 and
is pursuing a Master of Library Science from the Indiana
University School of Library and Information Science. He
hopes to be an academic law librarian. His collecting interests
include Franklin half dollars, fantasy currencies and coins
depicting famous attorneys. lawmakers. and composers.
Bel/jamill J. Keele

fh,' Cf'ltillf/! SL\[\!ER ~010 43

personifications of Liberty and for­ the \flint commissions an outside art­
mer presidents. But some deviations ist. For the 50 States quarters. each
from the Liberty/president motif have state was allowed to procure its own
emerged. design, subject to the Mint's approval
(designing a coin is tricky in that metal
The dollar coin, despite its supe­ flow, die v\ear. and other technical de­
rior durability over paper money tails have to be considered). Some
and the government's efforts, designs were also quashed
has failed to gain currency by the rule that no living
(pun intended) with the persons be featured. The
public. After Dwight 10-year program was
Eisenhower was hon­ so successful that an­
ored on the one dollar other year was added
coin, Susan B. Anthony to include Washington.
appeared on a smaller D.C .. and the territories. I:
coin. It took nearly 20 Quaners will continue
years for the supply of dol­ to hav'e ne\\ designs each
lars struck between
Neither the large Eisenhower year: this
1979 and 1981 to
dollar nor the small Sacagawea year. the quarters
run low enough that
dollar proved popular with the per year will honor
the Mint had to make national parks and
public.
more. In an etlbrt to monuments..
boost the public acceptance
of the dollar coin, Congress Finally. the one-cent and
decided to try changing the five-cent coins recently had
composition to manganese­ refreshing new designs. Be­
brass-clad copper and com­ fore these changes. they had
memorate Sacagawea. Lewis been rather stale: the onc­
and Clark's guide.') Now dollar cent had not had a sll1ce
coins memorialize past presidents 1959. and the the-cent had not
and significant contributions of Native been modified at all since the 1938 Jef­
Americans. 1O The dollar coin has be­ terson/Monticello theme. In 2009. new
come more a vehicle for commemorat­ rev erse designs were released on the
ing important historical figures than a one-cent to commemorate the bicen­
popular part of cash transactions. tennial of Lincoln's birth.14 In 20 10.
a Union shield replaced the Lincoln
The quarter dollar has also had a Memorial on the reverse. [n 2004 and
great deal of variety the past few years. 2005. two dit1erent reverses each year
With the 50 States Qllarters Act, Con­ for the nickel marked the bicenten­
gress established a new program to nial anni\ersaries of the Louisiana Pur­
honor all 50 states on the reverse (tails) chase and the Lewis and Clark expedi­
of the quarter dollar. II The design pro­ tions. In 2006. Monticello returned to
cess for the quarters was more involved the reverse. but the obverse saw a new
than for other coins. Csually the \flint's version of Jefferson's portrait. I '
in-house engravers make a design. or

44 thr C'/It;II,,1 i SU,l~lER 201U

 Since 2003, before a coin design
can be selected (usually by the Sec­
retary of the Treasury), the Citizens
Coinage Advisory Committee (a group
representing the general public) and
the U.S. Commission of Fine Arts must
be consulted, thereby weeding out the
least aesthetically appealing designs.
Given that millions, if not billions, of
each circulating coin will be made,
a rigorous selection process is quite
understandable. Proposals to funda­
mentally change circulating coins are
rare; proposals to abolish the cent have
cropped up from time to time. but nev­
er seem to attract much political sup­
port. What legal and political factors
have historically influenced the course
of U.S. coinage (and currency) war­
rants further investigation, but for the
moment, simply recognizing the role
of law in our pocket change is enough.
I:'. Conslllidated Appropriations Act. ~O()R.
Pub. L. '\0.110-161. 121 Stat. 2016 (2007).
J America's Beautiful '\,nional Parks Quar­
kr [)"llar Act of200i<. Pub. L '.;0.110-457.
122 Stat. 5038 (200/{).
14. Prcsidential S I Coin Act of 20()5. Pub. L
1'\0. \09-145. (302.119 Stat. 2673 t2005i
15. Al11~rican 5-Cent Coin Design Continuit~
Act of 2003. Pub. L. '\0. J 08-15. I J 7 Stat. 615
(:'003). 0
This work is licensed lInder
the Creat;\'e COlllmons Aftribll­
lion 3. 0 Cnited States Licel1se.
To view a copr this license.
\'isit hf1p:!lcreativecoll1mol1s.
or sel1d (I
letter to Creati,'e COmIl70IlS, 171
Second Street, Suite 300, Sail
Fral1cisco, CA, 94105.

As you can see, coins are legal crea­ Best offer

tures. Laws dictate their design, com­

position, and even their status as legal I've ever made!

tender. Despite the inereasing preva­

lence of electronic payment mecha­
Bird Points
nisms, coins are likely to continue to For over 60 years I've hunted
have a role in commerce for some time. arrowheads. I've picked up thousands
of \1ississippian and Woodland bird
Footnotes points. I've selected and framed my
I. l.s. Const. alt. I. 8. favorites, but still have hundreds of i
2. 31 lJ.S.c. ~ 5112(d) (2006) undamaged points in various styles
3. 31 l.S.c. ~ 5112(a)(2006). and colors that I now wish to sell and
4. Pub. L 1\0. 8C)-~ I. 79 Stat. 254 (1965).
buy a new piekup.
5. 31 CF.R. ~ ~2.1 (2007).
6. 31 U.S.C ~ 5111(b)(2006)
7. 31 U.Sc. ~ 5112(d)(2)(2006). My offer is:
8.31 U.S.c. ~ 5112(d) (2006).
9. United States S I Coin Act (,I' 1997. Pub. L
I'll send lOaf my best tor only S30,
No. 105-124. ~ 4. III Stat. 2536 (1997).
post paid, I'll include an extra one if
Ill. Presidential S 1 Coin Act of 2005. Pub. L
you help with postage.
No. 109-145. Ill) SIaL 2664 (2005): Native

American S 1 Coin Act. Pub No. 110-82.

Richard C. Brown
121 Slat. 777 (2007).

19390 Brownville Rd.

II. 50 States Commemorativc Coin Program
Act. Pub. L '.;0. 105-124. III Stat. 2534 \Vaynesville, MO 65583
(1997).

71;e Cmf!>le!1 Sl'\L\!ER 2010 45