1933 Double Eagle
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The 1933 US 20 dollar gold coin (known as the double eagle) exists only in very small numbers. Over 450,000 were minted, but never officially circulated, because of the end of the use of gold dollars in 1933.
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Production of the 1933 Double Eagles
In order to end the 1930s general bank crisis, U.S. president Franklin D. Roosevelt issued an executive order and, with the Emergency Bank Relief Act (March 1933) and the Gold Reserve Act (January 1934), 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 eagles were issued after this executive order, but because they were no longer legal tender, most of the 1933 gold coins were melted down in late 1934--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, and they were recently on display in the "Money and Medals Hall" on the third floor of the National Museum of American History.
These two coins should have been the only 1933 double eagle coins in existence. However, unbeknownst to the Mint, a number of the double eagle coins (Mint officials give the number of coins as ten) were stolen by the U.S. Mint Cashier, George McCann. These double eagle coins, which were illegal to possess, found their way into the hands of collectors.
The double eagle coins made their way through the hands of 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 and contacted the Mint as part of his research. The officials then became aware that a number of the coins had escaped to the public, and in 1944 an official investigation was begun by the Secret Service. Seven of the coins were discovered and turned over to federal agents (or seized) within the first year of the investigation, with one coin remaining in public possession until 1952. However, the last double eagle coin had found its way overseas, and its recovery was not effected until half a century later.
The Egyptian Double Eagle
One of the ten missing double eagles was acquired by King Farouk of Egypt, who was known for being playboy and a spendthrift. He was also a voracious collector of many things, including Imperial Faberge eggs, antique aspirin bottles, postage stamps - and coins. 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. Mistakenly, 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 -- 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, at that time the double eagle coin disappeared and was not seen again in Egypt.
The Egyptian double eagle surfaced again after over forty years of obscurity, when Stephen Fenton purchased a 1933 Double Eagle, along with other US gold coins, in London. Fenton was arrested by US Secret Service agents and the British coin dealer was questioned. Under sworn testimony, he insisted the double eagle had originated with the collection of King Farouk, though there was no way to be absolutely certain of this. Charges against Fenton were subsequently dropped, and he defended his ownership of the coin in court, and in 2001 the case was settled. The terms of the agreement included: ownership of the double eagle was returned 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 the only 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 of 2001, the coin was transferred to Fort Knox for safekeeping. Less than two months later, the World Trade Center was destroyed in the September 11, 2001 attacks.
On July 30, 2002, the 1933 double eagle was sold to an anonymous bidder at a Sotheby's auction for $6.6 million, plus the 15 percent seller's premium, and an additional $20 was needed to “monetize” the face value of the coin so it would be legal to own, bringing the final sales price to $7,590,020.00, almost twice the previous record for a coin. Half the $7.56 million was delivered to the United States Treasury, plus the $20 to monetize the coin; while Stephen Fenton was entitled to the other half. The whole auction took less than nine minutes.
See also: Double eagle
Further Reading
- Illegal Tender : Gold, Greed, and the Mystery of the Lost 1933 Double Eagle by David Tripp (http://www.simonsays.com/content/content.cfm?sid=33&pid=498701)
External links
- AmericanHistory.si.edu (http://americanhistory.si.edu/csr/nnc/doubleea/doubleea.htm)
- United States Mint: The Story of the 1933 Gold Double Eagle (http://www.usmint.gov/auction/index.cfm?flash=yes&action=theStory)