An illustration of the U.S. ‘Bullion 'Depository, Tort Knox, Kentucky, where most oj the U.S. gold stock is stored, appears on the Co\>er.
r
a
J
oj the T)irector of the Mint
Tiscal Jear “Ended
June 30, 1975
Department oj the Oreasury “Bureau oj the Mint
DEPARTMENT OF THE TREASURY
DOCUMENT NO. 3268 Director of the Mint
U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1976
For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $3.05 (paper cover)
Stock No. 048-005-00019-5
LETTER OF TRANSMITTAL
Department of the Treasury,
Bureau of the Mint, Washington, D.O. , May 3 , 1976.
Sir : I have the honor of submitting the One Hundred and Third Annual Report of the Director of the Mint, since the Mint became a Bureau within the Department of the Treasury in 1873. The first Annual Report, in this series, for the fiscal year ended June 30, 1873, was presented to the Honorable William A. Richardson by H. R. Linderman, Director of the Mint. Annual reports of Mint activities have been made to the Secretary of the Treasury since 1835, pursuant to the act of March 3, 1835 (4 Stat. 774). Annual reports of the Mint have been made since it was established in 1792.
This report is submitted in compliance with Section 345 of the Revised Statutes of the United States, 2d Edition (1878), 31 U.S.C. 253. It includes a review of the operations of the mints, assay offices, and bullion depositories for the fiscal year ended June 30, 1975. For the calendar year 1974 this document includes reports on the U.S. gold, silver, and coinage metals and the world’s monetary stocks of gold, silver, and coins.
Mary Brooks, Director of the Mint.
Hon. William E. Simon,
Secretary of the Treasury.
in
CONTENTS
MINT OPERATIONS, FISCAL YEAR 1975
Page
Organization 3
Coinage Activities 5
Technology 9
Production 9
Public Services 10
Administration and Management 17
Field Installations 20
EXHIBITS
1. Statement by the Director of the Mint, July 16, 1974, concerning
selection of a site for the new Denver Mint, Denver, Colorado 27
2. Statement by the Director of the Mint, July 17, 1974, concerning
meeting on July 23, 1974, on penny redemption 28
3. Remarks by Assistant Secretary of the Treasury (Enforcement, Opera-
tions, anil Tariff Affairs) Macdonald, July 23, 1974, on the National Business Campaign for Penny Redemption 28
4. Statement by the Director of the Mint, July 23, 1974, on the National
Business Campaign for Penny Redemption 29
5. Press release, August 6, 1974, announcing the first trial strikes of the
Bicentennial coinage 31
6. Press release, August 7, 1974, concerning U.S. Mint’s offer of America’s
first medals series 31
7. Press release, August 8, 1974, concerning Mrs. Brooks’ oath of office
for a second term as 28th Director of the Mint 32
8. Excerpts from remarks by the Director of the Mint, August 17, 1974,
at the 83d Annual Convention of the American Numismatic Associa- tion Bal Harbour, Florida 33
9. Press release, September 20, 1974, concerning inspection of gold at the
Fort Knox Bullion Depository 34
10. Press release, September 26, 1974, announcing discontinuance of accept-
ance of orders for 1974 uncirculated Eisenhower dollars 39
11. Excerpts from remarks by the Director of the Mint, September 27,
1974, before the Mayor’s Bicentennial Meeting, Denver, Colorado. 39
12. An act to authorize the Secretary of the Treasury to change the alloy
and weight of the one-cent piece and to amend the Bank Holding Company Act Amendments of 1970 to authorize grants to Eisen- hower College, Seneca Falls, New York 40
13. Press release, October 25, 1974 concerning Bicentennial coins and
medals available for ordering during 1975 41
14. Press release, November 13, 1974, concerning presentation of first
strikes of silver Bicentennial proof coins to President Ford by the Director of the Mint 42
15. Press release, December 2, 1974, announcing the opening of the film
“The Granite Lady” and a new gold display at the Old Mint 43
16. An act amending the National Housing Act to clarify the authority of
the Federal Savings and Loan Insurance Corporation with respect to the insurance of public deposits, and for other purposes 43
17. Press release, January 13, 1975, concerning Mint Director’s comments
on deceptive advertising by a Connecticut store 44
18. Press release, January 19, 1975, announcing lower price for three-
coin silver Bicentennial proof sets 45
19. Press release, February 10, 1975, concerning 1975 Annual Assay
Commission meeting 46
20. Press release, February 26, 1975, announcing acceptance of orders
for 1975 uncirculated coin sets 48
v
VI
CONTENTS
Page
21. Press release, March 25, 1975, announcing Mint offering of America’s
First Medals 48
22. Press release, April 10, 1975, concerning the first strikes of the three
40-percent silver Bicentennial coins 49
23. Statement by the Director of the Mint, April 15, 1975, before the
Senate Subcommittee of the Committee on Appropriations 49
24. Statement of Assistant Secretary David R. Macdonald, May 6, 1975,
before the Subcommittee on Public Buildings and Grounds of the House Committee on Public Works 53
25. Statement of the Director of the Mint, May 6, 1975, before the Sub-
committee on Public Buildings and Grounds of the House Com- mittee on Public Works 54
26. Press release, May 12, 1975, concerning coinage study contract 57
27. Documents pertaining to the regulation of the acquisition of, holding
of, or other transactions in gold 57
TABLES
1. U.S. coins manufactured, fiscal year 1975 65
2. Subsidiary clad coins manufactured under the Coinage Act of 1965,
1970- June 1975 66
3. Production of Kennedy half dollars, fiscal years 1964-1975 67
4. Specifications, metallic composition, and designs of U.S. coins cur-
rently manufactured 67
5. Consumption of metals in the manufacture of U.S. coins, fiscal year
1975 69
6. Shipments by the Bureau of the Mint of newly manufactured U.S.
coins for circulation, fiscal years 1973, 1974, and 1975 70
7. Inventories of U.S. coins, June 30, 1974, and June 30, 1975 70
8. Location of U.S. fractional coins on selected dates, June 1970-June
1975 71
9. Location of U.S. clad dollars, fiscal years 1972-75 72
10. Summary of uncurrent U.S. coins withdrawn from circulation, fiscal
years 1974 and 1975 73
11. Medals produced by the Philadelphia Mint, fiscal years 1973-75 73
12. Medals produced by the Denver Mint, fiscal years 1973-75 78
13. Medals produced by the San Francisco Assay Office, fiscal years
1973-75 79
14. Medal produced by the Old San Francisco Mint, fiscal years 1973-75.. 79
15. Foreign coins manufactured by U.S. mints, fiscal year 1975 80
16. Gold transactions of the Bureau of the Mint, fiscal year 1975 82
17. Gold transactions of the Bureau of the Mint, fiscal year 1975, dollar
value 83
18. Summary of silver receipts, issues, and balances of the Bureau of
the Mint, fiscal years 1934-75 84
19. Silver bullion transactions of the Bureau of the Mint, fiscal year
1975 85
20. Monetary metals operated on and operating gains and losses of the
mints and assay offices, 1975 86
21. Refined gold and silver produced by the electrolytic process at the
New York Assay Office, fiscal year 1975, by months 88
22. Stocks of unrefined gold and silver bullion held at the mints and
assay offices, June 30, 1975 88
23. Detail of revenues deposited into the general fund of the Treasury by
the Bureau of the Mint, fiscal year 1975 89
24. Analysis of monetary assets and liabilities of the Bureau of the Mint,
June 30, 1975 90
25. Number of employees of the Bureau of the Mint, fiscal year 1975 91
26. U.S. coins manufactured, calendar year 1974 92
27. Consumption of metals in the manufacture of U.S. coins, calendar
year 1974 93
28. Foreign coins manufactured by U.S. mints, calendar year 1974 94
29. Summary of foreign coinage by the U.S. mints, by country, through
Dec. 31, 1974 96
30. Summary of foreign coinage by the U.S. mints, by calendar year,
through Dec. 31, 1974 96
CONTENTS VII
Page
31. Gold transactions of the Bureau of the Mint, calendar year 1974 97
32. Gold transactions of the Bureau of the Mint, calendar year 1974,
dollar value 98
33. Silver bullion transactions of the Bureau of the Mint, calendar year
1974 99
34. Analysis of monetary assets and liabilities of the Bureau of the Mint,
Dec. 31, 1974 100
U.S. GOLD, SILVER, AND COINAGE METALS
U.S. mine production of gold and silver, 1974 103
Gold and silver issued for nonmonetary use 104
Prices of gold, silver, and coinage metals 104
THE WORLD’S MONETARY STOCKS OF GOLD, SILVER, AND COINS
IN 1974
Government Coinage Mints of the World 122
Summary-Coinage of Nations, 1974 124
Coinage of Nations and World Coins, 1974:
Explanatory notes on tables 127
Details on Coinage: Country tables 128
World monetary units, 1974 222
Silver coins withdrawn from circulation, 1974 228
Gold and silver consumed for industrial, professional, and artistic purposes,
1974 229
World production of gold, 1972-74 230
World production of silver, 1972-74 231
World monetary stocks of gold bullion and coin at the end of 1974 232
World monetary stocks of silver bullion and coin at the end of 1974 234
FAO national coin issues, through Dec. 31, 1974 236
INDEX 243
Note. — Title V of the Congressional Budget Act of 1974 (Public Law 93-344) changed the fiscal year from July 1 through June 30 to Oct. 1 through Sept. 30, beginning with the fiscal year 1977 (Oct. 1, 1976-Sept. 30, 1977). The act also established a 3-month transitional period from July 1, 1976, through Sept. 30, 1976, between fiscal years 1976 and 1977. The 1976 Annual Report of the Director of the Mint will cover the fiscal year 1976 and the 3-month transitional quarter, that is, the 18-month period from July 1, 1975 through Sept. 30, 1976.
Secretaries of the Treasury, 1834-1975
The U.S. Mint was under the supervision of the Secretary of State from its establishment in 1792 to 1799. It then became an independent agency reporting directly to the President of the United States. The act of March 3, 1835 (4 Stat. 774) stated that the Director of the Mint was to direct the business of the Mint “ — subject to the approbation of the Secretary of the Treasury — .” Later the Director was authorized to report to the President of the United States and to the Secretary of the Treasury. The act of February 12, 1873 (31 U.S.C. 251, 253) established the Mint as a bureau within the Department of the Treasury.
Term of service From— To —
Secretaries of the Treasury
Served under— President
July 1,1834 Mar. 3,1841 Levi Woodbury, New Hampshire— Jackson, Van Buren.
Mar. 6,1841 Sept. 11,1841 Thomas Ewing, Ohio Harrison, Tyler.
Sept. 13, 1841 Mar. 1,1843 Walter Forward, Pennsylvania.— Tyler.
Mar. 8,1843 May 2,1844 John C. Spencer, New York *. ...Tyler,
July 4,1844 Mar. 7,1846 Geo. M. Bibb, Kentucky. _ Tyler, Polk.
Mar. 8,1845 Mar. 6,1849 Robert J. Walker, Mississippi Polk.
Mar. 8,1849 July 22,1860 Wm. M. Meredith, Pennsylvania Taylor, Fillmore.
July 23,1860 Mar. 6,1853 Thos. Corwin, Ohio Fillmore.
Mar. 7,1863 Mar. 6,1857 James Guthrie, Kentucky Pierce.
Mar. 7,1857 Dec. 8,1860 Howell Cobb, Georgia Buchanan.
Dec. 12,1860 Jan. 14,1861 Philip F. Thomas, Maryland .Buchanan.
Jan. 15,1861 Mar. 6,1861 John A. Dix, New York ...Buchanan.
Mar. 7,1861 June 30, 1864 Salmon P. Chase, Ohio.. Lincoln.
July 5,1864 Mar. 3,1865 Wm. P. Fessenden, Maine ..Lincoln.
Mar. 9,1865 Mar. 3,1869 Hugh McCulloch, Indiana 1 2 Lincoln, Johnson.
Mar. 12, 1869 Mar. 16, 1873 Geo. S. Boutwell, Massachusetts Grant.
Mar. 17,1873 June 3,1874 Wm. A. Richardson, Massachusetts Grant.
June 4,1874 June 20, 1876 Benj. H. Bristow, Kentucky Grant.
July 7,1876 Mar. 9,1877 Lot M. Morrill, Maine. Grant, Hayes.
Mar. 10,1877 Mar. 3,1881 John Sherman, Ohio ..Hayes.
Mar. 8, 1881 Nov. 13, 1881 Wm. Windom, Minnesota 3 Garfield, Arthur.
Nov. 14, 1881 Sept. 4,1884 Chas. J. Folger, New York Arthur.
Sept. 25, 1884 Oct. 30,1884 Walter Q. Gresham, Indiana Arthur.
Oct. 31,1884 Mar. 7,1885 Hugh McCulloch, Indiana 2__ Arthur, Cleveland.
Mar. 8,1885 Mar. 31,1887 Daniel Manning, New York Cleveland.
Apr. 1,1887 Mar. 6,1889 Chas. S. Fairchild, New York Cleveland, Harrison.
Mar. 7,1889 Jan. 29,1891 Wm. Windom, Minnesota 3 Harrison.
Feb. 25,1891 Mar. 6,1893 Chas. Foster, Ohio _ Harrison, Cleveland.
Mar. 7,1893 Mar. 6,1897 John G. Carlisle, Kentucky Cleveland, McKinley.
Mar. 6,1897 Jan. 31,1902 Lyman J. Gage, Illinois McKinley, Roosevelt.
Feb. 1,1902 Mar. 3,1907 L. M. Shaw, Iowa Roosevelt.
Mar. 4,1907 Mar. 7,1909 George B. Cortelyou, New York Roosevelt.
Mar. 8,1909 Mar. 6,1913 Franklin MacVeagh, Illinois. Taft.
Mar. 6,1913 Dec. 15,1918 W. G. McAdoo, New York Wilson.
Dec. 16,1918 Feb. 1,1920 Carter Glass, Virginia Wilson.
Feb. 2,1920 Mar. 3,1921 David F. Houston, Missouri.. Wilson.
Mar. 4,1921 Feb. 12,1932 Andrew W. Mellon, Pennsylvania Harding, Coolidge, Hoover.
Feb. 13,1932 Mar. 3,1933 Ogden L. Mills, New York Hoover.
Mar. 4,1933 Dec. 31,1933 William H. Woodln, New York Roosevelt.
Jan. 1,1934 July 22,1945 Henry Morgenthau, Jr., New York.. Roosevelt, Truman.
July 23,1945 June 23, 1946 Fred M. Vinson, Kentucky Truman.
Juno 25, 1946 Jan. 20,1953 John W. Snyder, Missouri Truman.
Jan. 21,1953 July 28,1957 George M. Humphrey, Ohio Elsenhower.
July 29,1957 Jan. 20,1961 Robert B. Anderson, Connecticut Elsenhower.
Jan. 21,1961 Apr. 1,1965 Douglas Dillon, New Jersey Kennedy, Johnson.
Apr. 1, 1965 Dec. 20, 1968 Henry H. Fowler, Virginia Johnson.
Dec. 21,1968 Jan. 20,1969 Joseph W. Barr, Indiana. Johnson.
Jan. 22,1969 Feb. 10,1971 David M. Kennedy, Illinois Nixon.
Feb. 11,1971 June 12, 1972 John B. Connally, Texas Nixon.
June 12,1972 May 8, 1974 George P. Shultz, New York Nixon.
May 8, 1974 William E. Simon, New Jersey Nixon, Ford.
1 Spencer resigned as Secretary of the Treasury May 2, 1844; McCUntock Young (Chief Clerk), was ad
interim Secretary of the Treasury from May 2 to July 3, 1844.
3 Hugh McCulloch was Secretary from Mar. 9, 1866, to Mar. 3, 1869, and from Oct. 31. 1884, to Mar. 7, 1885. 3 William Windom was Secretary from Mar. 8, 1881, to Nov. 13, 1881, and also from Mar. 7, 1889, to Jan. 29. 1891.
VI n
Directors of the United States Mint 1792-1975
The Director of the Mint is appointed by the President of the United States, and with the advice and consent of the Senate. The length of the term of office was not fixed by law from 1792 to 1873. The Act of February 12, 1873, fixed the term of the Director at 5 years. However, there is no restriction on the reappointment of Directors.
Term of service |
Directors of the Mint |
||
From— |
To- |
||
Apr. 1792 |
June |
1795 |
David Rittenhouse, Pennsylvania. |
July 1795 |
Oct. |
1795 |
Henry William de Saussure, South Carolina. |
Oct. 1795 |
July |
1805 |
Elias Boudlnot, New Jersey. |
Jan. 1806 |
July |
1824 |
Robert Patterson, Pennsylvania. |
July 1824 |
July |
1835 |
Samuel Moore. Pennsylvania. |
July 1835 |
July |
1851 |
Robert Maskcll Patterson, Pennsylvania. |
July 1851 |
Apr. |
1853 |
George N. Eckert, Pennsylvania. |
Apr. 1853 |
May |
1853 |
Thomas M. Pettit, Pennsylvania.1 |
June 1853 |
Apr. |
1861 |
James Ross Snowden, Pennsylvania. |
May 1861 |
Sept. |
1866 |
James Pollock, Pennsylvania. |
Oct. 1866 |
Apr. |
1867 |
William Millward, Pennsylvania.2 |
Apr. 1867 |
Apr. |
1869 |
Henry Richard Linderman, Pennsylvania. |
May 1869 |
Mar. |
1873 |
James Pollock, Pennsylvania. |
Apr. 1873 |
Dec. |
1878 |
Henry Richard Linderman, Pennsylvania. |
Feb. 1879 |
June |
1885 |
Horatio C. Burchard, Illinois. |
July 1885 |
Oct. |
1889 |
James P. Kimball, Pennsylvania. |
Oct. 1889 |
May |
1893 |
Edward O. Leech, District of Columbia. |
Nov. 1893 |
Feb. |
1898 |
Robert E. Preston, District of Columbia. |
Feb. 1898 |
July |
1907 |
George E . Roberts, Iowa. |
Sept. 1907 |
Nov. |
1909 |
Frank A. Leach, California. |
Nov. 1909 |
Juno |
1910 |
A. Piatt Andrew', Massachusetts. |
July 1910 |
Nov. |
1914 |
George E. Roberts, Iowa. |
Mar. 1915 |
July |
1916 |
Robert W. Woolloy, Virginia. |
Sept. 1916 |
Feb. |
1917 |
F. J. H. von Engelken, Florida. |
Mar. 1917 |
Mar. |
1922 |
Raymond T. Baker, Nevada. |
Mar. 1922 |
Sept. |
1923 |
F. E. Scobey, Texas. |
Nov. 1923 |
May |
1933 |
Robert J. Grant, Colorado. |
May 1933 |
Apr. |
1953 |
Nellie Tayloe Ross, Wyoming. |
July 1954 |
Jan. |
1961 |
William H. Brett, Ohio. |
Oct. 1961 |
Aug. |
1969 |
Eva Adams, Nevada. |
Sept. 1969 |
Mary Brooks, Idaho. |
1 Died in office.
2 President Andrew Johnson appointed William Millward Director in October 1866 while the Senate was in recess. The President forwarded his nomination for the position of Director in a letter to the Senate dated Jan. 2, 1867. The Senate rejected the nomination on Jan. 26, 1867. However, William Miliward re- mained in the Mint until the confirmation of Director Linderman.
IX
MINT OPERATIONS, FISCAL YEAR 1975
Mint Operations
Introduction
The Mint became an operating bureau of the Department of the Treasury in 1873, pursuant to the Coinage Act of 1873 (31 U.S.C. 251) . All U.S. coins are manufactured at Mint institutions. The Bureau of the Mint distributes the coins to and among the Federal Reserve banks and branches, which in turn release them, as required to com- mercial banks. In addition, the Mint maintains physical custody of Treasury monetary stocks of gold and silver ; handles various deposit transactions including inter-Mint transfers of bullion; refines and processes gold and silver bullion ; and, moves, places into storage, and releases them from custody for such purposes as authoi'ized. Func- tions performed by the Mint on a reimbursable basis during fiscal year 1975 included: The manufacture and sale of numismatic Eisen- hower dollars (through December 1974) ; the production and sale of proof coin sets and uncirculated coin sets; the manufacture and sale of medals of a national character ; the production and sale of medals commemorating the Bicentennial, including America’s First pewter medals and the ARB A medals ; and, as schedules permitted, the manu- facture of foreign coins.
Organization
The headquarters of the Bureau of the Mint is situated in Wash- ington, D.C. The operations necessary for the conduct of the business of the Mint are performed at seven field facilities. Mints are located in Philadelphia, Pa. and Denver, Colo. ; assay offices are in New York, NY Y. and San F rancisco, Calif. ; bullion depositories are situated at Fort Knox, Ky. (for gold) and West Point, N.Y. (for silver) ; the Old Mint, San Francisco, houses the Mint Data Center, the Mint Mu- seum, and the Special Coinage and Medals Division (order processing facility). The U.S. Assay Office, San Francisco, operates as a mint. The West Point Depository, an adjunct of the New York Assay Office, assumed the additional work of producing coins during fiscal 1975.
The number of employees in the headquarters and field installations ranged from 2,654 on June 30, 1974, to 3,092 on June 30, 1975.
The inherent advantages of the decentralization of the Mint Inter- nal Audit Staff during fiscal 1974 were underscored in fiscal 1975 by improved results in the wider range of areas audited and more fre- quent reviews in established areas, in accordance with the Bureau’s Long Range Audit Plan. During the year a resident auditor was as-
3
4 1975 REPORT OF THE DIRECTOR OF THE MINT
signed to New York to service both the New York Assay Office and the West Point Bullion Depository.
Audits were made of controls over coinage dies, storeroom and pur- chasing activities, data processing operations, disbursement vouchers, payroll operations, appropriation and monetary accounting, and nu- mismatic activities.
An audit of the gold stored at the U.S. Bullion Depository, Fort Knox, Ky., was performed beginning September 24, 1974.1 The Com- mittee included auditors from the General Accounting Office (GAO), the Office of the Secretary of the Treasury, the U.S. Customs Service, the Bureau of Government Financial Operations, as well as the Mint. In addition, Mint technicians experienced in assaying and weighing gold bullion were on the Committee. Audit procedures and guidelines developed by auditors from the Mint and GAO were designed to deter- mine the reliability of the recorded values stored at Fort Knox. The final GAO audit report submitted to the Congress concluded that the gold stored at the Fort Knox Bullion Depository agreed with the records of the Depository.
The Mint security program provides appropriate and continuous protection of all employees and assets under the jurisdiction of the Bureau of the Mint. This is accomplished through the operation of the Mint Security Force, protective electronic and mechanical alarm systems, vaults, and sophisticated locking devices, security surveys and internal inspections, as well as a personnel security clearance program.
During fiscal 1975 a new, highly sophisticated perimeter fence alarm system was installed at the Fort Knox Bullion Depository. This equipment has greatly enhanced the outside security at this important installation.
On September 23, 1974, a significant and extraordinary security exercise took place at the U.S. Bullion Depository, Fort Knox, Ky. Extensive security measures were employed inasmuch as the occur- rence constituted a rare change from the existing “no visitor” policy. For additional data, see “Fort Knox Bullion Depository” pages 23-4.
During the fiscal year 1975 a new police-type basic training school was initiated in cooperation with the Department of the Treasury’s Consolidated Law Enforcement Training Center. Fifty-two Mint security officers completed the 5-week course during the year.
A security survey was conducted of the Museum at the Old Mint, San Francisco, in preparation for the public display of the multimil- lion dollar exhibit of gold bars. Extensive security devices including closed circuit video equipment and special doors were installed. In October 1974 the gold was moved from the U.S. Assay Office, San Francisco, to the Museum Exhibit Area under armed escort.
1 See exhibit 9.
MINT OPERATIONS
5
Protective equipment was installed, following a security survey, at a warehouse leased by the Mint in South San Francisco. This build- ing’, which was used primarily as the Bicentennial Proof Coin Dis- tribution Center, was guarded by Special Police personnel on a 24- hour basis, 7 days a week.
A protective alarm system was installed within the newly expanded Mint Sales Area in the Main Treasury Building in Washington. The Mint Security Staff coordinated with the Treasury Security Force for protective support.
The required pistol marksmanship proficiency program for Mint security personnel was updated to conform with modern police stand- ards. A combat-type course was added to the basic requirements, which served to improve the training program as well as to provide the offi- cers with additional confidence and experience in the use of their weapons.
Coinage Activities
Study of coinage requirements
In recent years the growth in demand for U.S. coins has surpassed all forecasts. The sharp and unexpected increase in coin requirements appears to be the result of a complex of forces, including population growth, changing economic patterns, expanded use of coin-operated equipment, and an unpredictable response to expectations of coinage changes. During part of 1974 the temporarily high price of copper caused extensive hoarding of pennies.
Faced with high coin demand and questions about the availability and cost of raw materials, the Bureau of the Mint decided to contract for a comprehensive review of all aspects of U.S. coinage requirements to the year 1990. While problems of coin demand and production have been studied in the past, this study is to be the most comprehensive overview undertaken. It is intended to both update and synthesize past work and develop new, innovative approaches to solving Mint coin- age problems.
In May 1975 a contract was awarded to Reseai’ch Triangle Institute, an independent contractor in North Carolina, to conduct the coinage study.1
The coinage review was to be approached in two phases. The first phase, which was to assume the current U.S. denominational system and alloys, was to review and recommend changes in the existing fore- casting system, production facilities, production scheduling, inven- tory distribution, and logistics. It was to cover any economic effects of the recommended changes.
The second phase of the study was to develop an “ideal” coinage system. This phase was to explore denominational and alloy changes
1 See exhibit 26.
6
19 75 REPORT OF THE DIRECTOR OF THE MINT
and recommend a total system of forecasting, production, scheduling, and distribution. The contractor was directed to consider all elements of society which might be affected by changes, contact such elements, and make recommendations for a system that would be as acceptable as possible to all concerned.
Findings of the report, which is scheduled for completion in May 1976, will be included in the next Annual Report.
Bicentennial coinage
Production of dollar, half dollar, and quarter dollar coins bearing reverse designs emblematic of the Bicentennial 1 and the years 1776- 1976 on the obverse was begun during the fiscal year 1975, although legislation precluded their release before July 5, 1975. Public Law 93-127, the Bicentennial Coinage Act, was amended on December 26, 1974, by Public Law 93-541, 2 to permit the minting of the 40-percent silver-clad Bicentennial coins prior to July 4, 1976, rather than requir- ing their production prior to July 4, 1975.
By June 30, 1975, 602 of the silver clad proof Bicentennial coin sets and 594 sets of the uncirculated variety had been minted at the U.S. Assay Office, San Francisco. In addition, 22,792,710 dollars, 200,674,000 half dollars, and 28,196,000 quarter dollars commemorative of the Bicentennial had been produced for general issue after July 4, 1975.
Other domestic coinage
During fiscal 1975 U.S. mints produced, for general circulation, cupronickel clad dollars, half dollars, quarters, and dimes, cupro- nickel 5-cent pieces, and 1-cent coins composed of 95 percent copper, 5 percent zinc. The Philadelphia Mint manufactured 6,464,997,000 coins with a face value of $448,746,330; the Denver Mint produced 5,710,432,210 coins with a face value of $302,420,921 ; the San Francisco Assay Office made 69,740,588 dimes and 299,142,922 1-cent pieces with a combined face value of $9,965,488 ; and 833,347,027 1-cent coins were manufactured at the recently activated coinage facility at the West Point Bullion Depository. During the fiscal year Mint installations produced a total of 13,377,659,747 coins for general issue (an increase of 2,939,474,601 from 1974) with a face value of $769, 466, 209. 3
All traditional proof coin sets, both types of silver-clad Bicentennial coin sets, as well as both varieties of the 1974-dated silver-clad Eisen- hower dollars were minted at the San Francisco Assay Office and bore the “S” mint mark. A total of 11,195,369 numismatic coins with a face value of $5,750,317 were manufactured during the year.
1 For details on the designs, see 1974 Annual Report of the Director of the Mint. See
also Special Coinage and Medals, below.
3 See exhibit 16.
3 See table 1.
MINT OPERATIONS
7
1975 Annual Assay Commission
The Act of April 12, 1792, which established* the United States Mint, also provided for the Annual Assay Commission. It, is believed that the Assay Commission lias met almost every year since 1792. The law provides that the Annual Assay Commission shall bo composed of the Judge of the District Court for the Eastern District of Pennsyl- vania, the Comptroller of the Currency, the Assayer of the New York Assay Office, and such other persons as the President shall designate.1 The Commission meets on the second Wednesday in February at the Philadelphia Mint for the purpose of verifying the quality of U.S. coins. Coins reserved from each mint’s regular production of the previous calendar year are examined and tested. From the cupronickel clad coins one piece was selected at random from every 100,000 pieces or fractional part thereof. The coins selected are sealed in envelopes and forwarded for the annual assay of coins.
The following table indicates the annual assay coins that were reserved during the calendar year 1974 for the February 12, 1975, meeting of the Annual Assay Commission. The Commission reported at the conclusion of the pi’oceedings that the trial was satisfactory in all respects.
Annual assay coins reserved at various mints during the calendar year 197J/.
Denomination |
Philadelphia Mint |
Denver Mint |
San Francisco Assay |
||
Office |
|||||
Pieces |
Value |
Pieces |
Value |
Pieces Value |
|
Cupronickel clad dollars Uncirculated silver clad dollars |
367 |
$367. 00 |
464 |
$464.00 . |
80 $80. 00 |
Cupronickel half dollars Cupronickel quarter dollars Cupronickel dimes |
2. 550 7,037 9,415 |
1, 275. 00 1, 759. 25 941. 50 |
1,296 4,388 11,378 |
648.00 . 1,097.00 1, 137. 80 . |
|
Total |
19, 369 |
4, 342. 75 |
17, 526 |
3, 346. 80 |
80 80. 00 |
As a token of the Government’s appreciation to the members of the Assay Commission for their services, a 2% -inch bronze medal designed and executed by Frank Gasparro, the Mint’s Chief Sculptor and Engraver, was presented to each commisisoner. The 1975 Annual Assay Medal, as shown below, bore the likeness of President F ord on the obverse and, on the reverse, a metallic rendition of the 1914 Dunsmore painting “Inspecting the First Coins.”
Stock and distribution of U.S. coinage
The face value of the stock of U.S. fractional coins outstanding on June 30, 1975, 2 was $8,217,205,000, of which $195,857,040 was held by the Treasury, $340,503,927, was held by the Federal Reserve banks,
1 See exhibit 19.
2 See table 8.
207-953 0 - 76 -2
8
19 75 REPORT OF THE DIRECTOR OF THE MINT
1975 Assay Commission medal
and $7,680,844,033 was in circulation. On the same date $380,649,000 worth of cupronickel clad dollars were outstanding.1 Of these, $28,167,243 were held by the Treasury, $18,697,096 were held by the Federal Reserve Banks, and $333,784,661 were in circulation.
Standard silver dollars outstanding remained at $481,781,898 throughout the fiscal year.
The Mint distributes coins for general circulation through the facilities of the 12 Federal Reserve banks and their 25 branches and the U.S. Treasury, Washington, D.C. During the fiscal j?ear the Mint shipped approximately 12,596,377,200 newly manufactured U.S. coins with a face value of $607 ,047, 622, 2 to these facilities for distribution. The total included almost 118 million Bicentennial coins for release after July 4, 1975.
Due primarily to preparations for the Bicentennial coin distribu- tion, Mint inventories on June 30, 1975, 3 exceeded those of June 30, 1974, by approximately 713 million coins.
Foreign coinage
U.S. Mint facilities produced coinage for six foreign countries dur- ing the fiscal year 1975: The Republic of China (Taiwan), Honduras, Liberia, Nepal, the Republic of Panama, and the Philippines.4 The Denver Mint manufactured 45,239,040 foreign coins, the Philadelphia Mint produced 99,380,000, and the San F rancisco Assay Office minted 95,527,297 coins for other countries.
Through December 31, 1974, U.S. mints had produced a total of 9,789,627,893 coins for 42 foreign countries.5
1 See table 9.
3 See table 6.
3 See table 7.
* See table 15.
3 See tables 29 and 30.
MINT OPERATIONS
9
Technology
The coining facilities experienced a smooth transition to the newly- dated coining dies in January 1975, which was partially attributed to extensive development work, including simulated production runs, performed during the latter part of 1974.
The Mint through the facilities of its Laboratory in Washington continued to serve as technical authority on the authenticity of U.S. coins. During the fiscal year laboratory examination of 2,680 ques- tioned coins relative to 196 cases were performed for the U.S. Secret Service. A member of the Mint’s Technical Staff testified in one court case pertaining to the authenticity of U.S. coins.
In October 1974 a comprehensive report, “One Cent Coinage,” was issued. It is a summary of the 1973-74 Treasury-Federal Reserve Committee studies on our lowest denomination coin. Items covered include calculations of the size of the circulating pool and its rate of loss, suggested means for reducing cent demand, a summary of long range forecasting methods, and a discussion of inventory, distribution and storage of cents.
Public Law 93-441, approved October 11, 1974, 1 authorized the Secretary of the Treasury to change the alloy and weight of the 1-cent piece whenever in his judgement such action is necessary to assure an adequate supply of such coins to meet the national needs.
Production
During fiscal year 1975, Mint installations produced 2,923,474,601 more coins than were manufactured in the previous year.
The mintwide April 1975 monthly production of 1,262,736,000 coins exceeded the previous record established in June 1974 by 124,540,000 pieces. Production at the Philadelphia Mint exceeded 30 million coins on a number of days during the year, setting single Mint production records of 30,634,000 on October 2, 1974, and 30,884,000 on February 11, 1975, with a monthly maximum of 610,959,000 reached in October. Annual production totals at both the Philadelphia Mint and the Denver Mint exceeded previous annual totals at each facility.
The West Point Depository began production of 1-cent coins on July 29, 1974, and by the fiscal yearend was producing over 7 million cents per day. The coins bore no mint mark. The San Francisco Assay Office, while concentrating on Ricentennial and regular numismatic coin programs, produced approximately 299 million 1974-dated 1-cent pieces, as well as about 70 million 1975-dated 10-cent coins for general
1 See exhibit 12.
10
1976 REPORT OF THE DIRECTOR OF THE MINT
circulation. Like the West Point cents, no mint mark designation is on the San Francisco circulating dimes.
Production of the one dollar, half dollar, and quarter dollar circu- lating coins with the Bicentennial design reverses and obverses bear- ing the dates 1776-1976 was begun during fiscal 1975. The distribution of these coins was to be made after July 4, 1975.
In addition to the production of domestic coinage for general circu- lation, the Mint was engaged in manufacturing foreign coinage, vari- ous numismatic items including Bicentennial proof and uncirculated coin sets, the American Revolution Bicentennial medals, America’s First Medals (pewter alloy), as well as the national “List” medals. A significant increase in demand for the various medals increased pro- duction requirements.
At the Philadelphia Mint, 12 four-strike coin presses were added, as nine lesser-production presses were retired from service. Four im- proved type upset mills were delivered.
At the Denver Mint culmination of planning coordinated over the previous 2 years resulted in the sale and removal of obsolete 1-cent. coinage strip fabrication equipment. This move made space available for new manufacturing equipment, the installation of which was expected to be accomplished in the fall of 1975. Coin storage facilities were expanded by the modification and use of an auxiliary on-site facility. A 35,000 square foot warehouse at Rocky Mountain Arsenal was acquired from the Department of Defense.
Continuing improvements incorporated in clad coinage strip manu- facturing have resulted in an increase from 140,000 pounds per week to 250,000 pounds per week of quality clad strip, at a significant reduc- tion in the unit cost. Production of bronze strip for 1-cent coinage was similarly increased to 500,000 pounds per week.
The Mint-wide standard coinage die and coin press tooling program was fully implemented during the fiscal year. The results include major economies in die manufacturing, coin press tooling fabrication, inventory systems, and capability for interchange between coining fa- cilities. Parameters for the standardization of blanking die sets were developed.
Public Services Liaison with Federal Reserve banks
The Mint’s primary mission is to assure the availability of domestic coins in quantities sufficient for the conduct of public commerce. To achieve this goal, the Mint continued its close liaison with the Federal Reserve in determining coinage requirements. U.S. coins, manufac- tured by the Mint, are shipped to the Federal Reserve banks and their 25 branches, and the United States Treasury. During the fiscal year
MINT OPERATIONS
11
1975 the Mint, shipped approximately 2.1 billion more coins to these facilities than in the previous year. Coin balances held by the Federal Reserve banks and the Treasury totaled about 2.892 billion coins on June 30, 1975, 1 an increase of more than 60 percent from 1974.
Penny Redemption Campaign
On July 23, 1974, Assistant Secretary of the Treasury David R. Macdonald and the Director of the Mint held a meeting with 28 execu- tives of the Nation’s largest mass merchandisers, supermarkets, and fast food chains to discuss a campaign to keep pennies in circulation.2 Mrs. Brooks announced that the Treasury Department citation, first made available in fiscal year 1974, would continue to be available through December to anyone turning in $5 or more in pennies to a bank or retail establishment. The Director suggested a number of ways business establishments might encourage the public to put their hidden pennies back in circulation. It was emphasized that the careless habit of diverting these low-denomination coins from circulation was not in the public interest, it caused an undue hardship on businesses and banks, which need them for change, and wasted the taxpayers money by causing the Mint to utilize a major portion of its production ca- pacity to manufacture increasing numbers of pennies.
Special coinage and medals
The Eisenhower dollar 'program. — The manufacture and sale of the 40-percent silver-clad proof and uncirculated Eisenhower dollars to the public at premium prices was continued through December 1974. During this first half of the fiscal year 1975, 1,306,071 proof coins and 1,900,052 of the uncirculated variety were produced. Public Law 93- 441, October 11, 1974, 3 authorized the transfer of 10 percent of the moneys derived from the sale of Eisenhower proof dollars to Eisen- hower College, Seneca Falls, N.Y.
Coin sets. — As is customary, the Mint offered sets of proof coins which included one coin of every U.S. denomination from the dollar through the penny for sale to the public. During the fiscal year 1,330,909 proof coin sets dated 1974 were manufactured, packaged in self-standing cases, and sent by registered mail from the U.S. Assay Office, San Francisco. In addition, 34 proof sets of the 1975 variety with Bicentennial designs and dates on the three higher denomina- tion coins had been produced for issue after July 4, 1975.
The regular uncirculated coin sets annually contain one specimen of each demonimation produced at each Mint for general circulation. The 1974 sets contained 13 coins bearing the year 1974 (one of each
1 See table 7.
3 See exhibits 2. 3, and 4.
3 See exhibit 12.
July 23, 1974, meeting at Treasury Department on Penny Redemption Campaign
MINT OPERATIONS
13
denomination made at the Denver Mint and the Philadelphia Mint, as well as a San Francisco cent). The 1975 regular uncirculated sets contained 12 coins: A dime, nickel, and penny dated 1975 and 1776- 1976 dated dollars, half dollars, and quarters from both Denver and Philadelphia. No cents were manufactured at the San Francisco Assay Office for general issue in 1975, so none were available for inclu- sion in the uncirculated sets.
Bicentennial coin sets. — The 40-percent silver-clad proof and un- circulated Bicentennial coin s