An Introduction to the 1936 Proof Set
BillJones
Posts: 34,056 ✭✭✭✭✭
I write an article for my local club's newsletter every month. Since few numismatic publications would be interested in publishing these pieces, I've decided to post some of them here from time to time. Here is one on the 1936 Proof coins.
Collector’s Note: The 1936 Proof set has been at the fringes of my collecting radar since the mid-1960s. I became interested in Proof sets in 1964 when the mint system introduced the Kennedy Half Dollar. I dabbled with some of the sets dated in the 1960s, but when I saw the prices for the “really old” sets in the early 1950s and before that, in the ‘30s and ‘40s, I knew there was no way that my teenager’s budget could handle them. The 1936 set listed for $1,200 in 1966 edition of The Red Book, which may have well have been a million dollars from my perspective.
As an adult collector my interests were in other areas. I collected type coins and gold pieces. Still the 1936 Proof set stood out there as an interesting product of The Great Depression when most people didn’t have much money.
Recently Roger W. Burdette, who is one of the leading numismatic researchers of our time, published a book, United States Proof Coin 1936 – 1942, Eightieth Anniversary Edition. It contains a wealth of information about these interesting Proof coins which have been out of mainstream of coin collecting for a number of years.
The term “Proof” refers to the method of manufacture for a coin, not a state of preservation. The term originated with the concept of testing a new set of dies to see if they were producing good impressions of a given design. Collector interest grew for these coins, and they became a collecting specialty for some hobbyists. The first U.S. coins that experts officially designate as Proofs were struck in 1817. Although the Philadelphia Mint made efforts to strike special coins before that date, all of those pieces are now classified as “Specimens.” “Specimen” coins are not quite good enough to be Proofs, but their surfaces and sharpness indicate that a special effort was made to make them better than the regular issue coins. After 1817 the Philadelphia Mint continued to make Proof coins on a sporadic basis. The few collectors there were in the early days occasionally assembled complete Proof sets, but the mint did not issue those coins on an organized basis until 1858. By that time the collector community had grown, thanks to the end of the end of the large cent series. The Proof coin sets were officially offered into three segments, although single coins were sometimes issued. The minor coins consisted of the cent plus the Two Cent Piece, the Nickel Three Cent Piece and the Nickel Five Cent Pieces, depending upon which pieces were minted in a given year. The silver sets included the Silver Three Cent Piece, the half dime (when they were issued) plus the dime through the silver dollar. The gold sets included all of the gold pieces (when issued) from the gold dollar to the twenty dollar gold piece. Many collectors ordered the minor coin and silver sets, but the sales of the gold Proofs were very limited, sometimes as few as 20 sets a year. This first run of Proof sets ran until 1916. Ironically the coins that marked the “Renaissance of American Coinage” would also bring a suspension in the production of Proof coins. When the Lincoln Cent was introduced in 1909, the mint announced that concave surfaces between the fields of the design and the rim made it impossible for mint personnel to polish the dies to the brilliant Proof surfaces of the past. The new coins had the duller Matte Proof surfaces. The same change occurred when the Buffalo Nickel was introduced in 1913. Another factor, which may have had more influence over the discontinuance of the brilliant Proofs may have been artistic. None of the outside artists, who provided the designs for the “Renaissance” coins, liked brilliant surface format. They viewed it as “garish” and as a distraction their artwork. They much preferred the duller Matte or sandblasted format.
Proof Coin Production is Suspended
Collectors were not pleased with the Matte Proof coins. To many, these pieces appeared to be no different from the business strike coins they could get at the bank or draw from circulation at face value. The tipping point came in 1916 when the mint introduced Mercury Dime, Washington Quarter and Walking Liberty Half Dollar. The mint stated that none of those coins could be issued as brilliant Proofs. Since the production of the Matte Proof cents and nickels had been in decline because of a lack of collector demand, the mint decided to end production of all of the regular issue coin designs in the Proof format. Although there were occasional issues of commemorative coins, which are all rare today, and a few Matte Proof Peace Dollars in 1921 and ’22, virtually no Proof coins were available to collectors.
For the next two decades, some collectors contacted the mint each year to see if Proof coins would be available. The answer was always, “No.” The times got especially difficult for collectors when the Herbert Hoover administration ended the coinage of all commemorative coins as well. Hoover and his treasury secretary, Andrew Mellon, viewed the production of coins for collectors as a waste of public resources.
A New Administration and a New Beginning
Franklin D. Roosevelt was an avid stamp collector. He also had a modest collection of coins. His first secretary of the treasury, William Wooden, was a well-known numismatist who had co-authored the first major reference on U.S. pattern coins in 1913. Before those gentlemen could make any changes to the U.S. Mint Proof coin policies, they had to address another issue that would change American numismatics forever.
The Gold Surrender Orders of 1933 and ’34 called upon all citizens to turn in their U.S. gold coins except those which were rare or had historical significance. Citizens were permitted to retain $100 in gold, but those last two details went over the heads of most people. Most people turned in their gold coins as they were ordered to do.
Government officials noted that some rare coins that had numismatic value were mixed in with the pieces that had been collected. In 1936, Lewis Howe, who was the personal secretary to Franklin Roosevelt, proposed selling those coins to collectors to raise some revenue for the treasury. Treasury officials pointed out that the agency had no authority to sell those coins for more than their face value. Furthermore, they stated that it would be a public relations disaster if they sold those coins at premium prices soon after they had forced citizens to turn in their gold coins at face value. In the end, all of those coins were melted and tuned into gold bars.
After the rejection of his first plan, Howe proposed a resumption of the Proof coinage. Howe was not a coin collector, but he understood the collector mentality. Howe was terminally ill with heart and lung problems at the time he made his proposal. He lived long enough to see a Proof quarter that was struck for his approval, but he passed on before any other Proof coins were could be shown to him.
Following Howe’s death, some administration officials opposed any further steps toward resuming the production of Proof coins for collectors. Treasury secretary, Henry Morgenthau, overruled them and saw to it that the mint completed the project. The mint released the first complete Proof set in late April, and the coins went on sale in May. The 1936 Proof set was notable because it marked in the introduction of the Mercury Dime, Standing Liberty Quarter and the Walking Liberty Half Dollar in the Proof format.
Mint officials made it clear that no Proof silver dollars would be struck unless there was an issue of business strike dollars to coincide with the special collector coins. Unfortunately the mint system issued the last Peace Dollars in 1935. It would have been interesting to have seen the Peace Dollar in the Proof format.
Collectors did not have to purchase complete sets. They could buy individual coins which were priced as follows:
Cent $0.16
Nickel .20
Dime .20
Quarter .50
Half Dollar .75
-----------
Total Set $1.81
Proof coins were struck on select quality planchets, with specially prepared dies, on a press that was used to strike medals. The dies were inspected frequently and were either refurbished or discarded far more often than they were for ordinary business strikes. The coins were carefully inspected and damaged or lower quality coins were rejected and melted.
Collectors could buy the coins at the U.S. Mints, or they could have their coins delivered through the mail for an eight cent postage fee. Anecdotal accounts have indicated that Proof coins purchased at the mint were wrapped in tissue paper. Coins that were sent through the mail were placed in cellophane envelopes that were wrapped in tissue paper. If the purchaser bought more than one coin, the cellophane envelopes were stapled together at one corner at the top. Shipping boxes varied with the size of the order. They were not the limited to the small gray boxes that were used to house Proof sets from 1950 to 1955.
Collector Dissatisfaction with the Coins
The first Proof cents and nickels that the mint produced in 1936 had satin surfaces that were similar to the finish on the Matte Proof coins that were issued two decades earlier. Many collectors were unhappy with these pieces, which to some, looked no better than business strike coins that anyone could draw from circulation or obtain from a bank. In response Philadelphia Mint personal developed methods to polish the dies and improve the quality of the planchets (coin blanks) to produce brilliant Proof coins. This created two varieties for the cent and nickel, the satin and brilliant finishes. Numismatists have not recognized such distinctions for the silver coins, perhaps because of the naturally reflective properties of silver which makes all of those coins brighter.
The Brilliant Proof cents and nickels have strongly mirrored surfaces. Researcher, Roger Burdette, has noted that the Brilliant Proof cents and nickels have slightly less design detail than their satin surface counterparts. This loss in detail is due to the die polishing which removed a small portion of the die surface.
1936 Satin Finish Nickel
1936 Brillant Finsh Nickel
Limited Mintages in 1936
Although the collector response was greater than it had been in the 19th and early 20th centuries, it was somewhat disappointing. Here are the total 1036 Proof mintages:
Cent 5,569
Nickel 4,420
Dime 4,130
Quarter 3,837
Half Dollar 3,901
The total number of possible 1936 Proof sets is listed as 3,837. That number does not reflect the number of sets that were issued, but is based upon the number of quarters that were issued. The total number of sets is limited by the quarter which had the lowest mintage.
These mintages were a reflection of the times. The Great Depression was continuing in 1936 although the worst years had passed. Still while collectors felt that they could afford to buy a cent or a nickel, the half dollar seemed like a larger investment to set idly aside.
The low mintage for the Washington Quarter reflected collector apathy toward the design. A fair number of collectors viewed the Washington Quarter design as dull and uninteresting. If a collector decided not to buy a complete 1936 Proof set, the quarter with its comparatively high face value and cost and less interesting design, was the most likely coin he would choose to skip.
Proof coin mintages increased steadily in subsequent years. As a result, the 1936 Proof set soon became the “key year” in the modern Proof set series.
One of the great concerns for past generations of collectors was that ALL of the coins in the high priced 1936 Proof set they purchased were, in fact, Proofs. Less than honest individuals created fake Proof coins by polishing business strike pieces or plated ordinary coins with chromium or even mercury to simulate the mirrored Proof surface. Fake Proof cents have been created by coating business strike coins with copper. Walter Breen noted these problems in his pioneering work Walter Breen’s Encyclopedia of United States and Colonial Proof Coins 1722 – 1977.
Today legitimate third party grading services have essentially eliminated these abuses, but collectors should still exercise caution whenever they consider the purchase of any uncertified (raw) Proof coin. Similar caution should be excised when considering the purchase of a Proof piece when certified by one of the lowest level grading services that may lack ethics or expertise. It is better to be safe than be sorry.
If there is any interest, I could post more information which I gave at the club meeting.
Comments
Wish we had more posts like this. Thanks Bill.
Thanks - a nice read on a snowy day in Maine.
Nice write up!
Thanks for the really great article! I don't wish to be a critic but Is this part correct? The 1936 Proof set was notable because it marked in the introduction of the Mercury Dime,** Standing Liberty Quarter** and the Walking Liberty Half Dollar in the Proof format.
RE: "Recently Roger W. Burdette, who is one of the leading numismatic researchers of our time, published a book, United States Proof Coin 1936 – 1942,"
Thank you. Very humbling comment and certainly not worthy of it.
(PS: I don't use the Breenism "business strike." ALL coins are part of the Mint's "business." I prefer to separate them by function: "circulation" "proof" "pattern," etc.
)
uscoinguy - Typo for "Washington quarter."
Thanks- I kind of figured that was the case
If George had been born a couple of years earlier, it might have been the SL quarter --- and a $5 gold GW commemorative.
Great post! I learned a number of things. Here is my 1936 Satin Proof Cent (PCGS PR64RB).
My Coin Blog
My Toned Lincoln Registry Set
Yes, I did mess up on the Standing Liberty Quarter thing. The last Standing Lib. was issued in 1930.
I suppse this was wishful thinking. It would have been interesting to have seen the Standing Liberty Quarter and the Peace Dollar in Proof. With all of its production faults, the Staniding Liberty Quarter was much more appealing than the Washing Quarter.
Mirror finish 1916 SL quarter patterns were made and are in the NNC. Check out my old article and photos on uspatterns.com for details. Same for 1916 dimes and halves of the initial designs.
Thank you Bill for this post, a great read.
I vote "yes" for more info on this topic and/or other presentations you have.
Thank you @BillJones !
My current "Box of 20"
Thanks for your post.
It's astonishing that these sets have increased in value so slightly. 2017 Red Book says $7000 for an annualized return just over 3.5%.
Alex Relyea
The real "market action" for these coins is with the very high grade pieces. "Red Book" prices are based upon sets in the PR-63 - 64 range.
Thanks!
POST NUBILA PHOEBUS / AFTER CLOUDS, SUN
Love for Music / Collector of Dreck
Completely understand, but was it different in 1966?
BIG Kudos to you, Bill. Proofs from 1936 to 1942 are an excellent short set for collectors, and there was mintage to support many collections. Nothing particularly rare. But rarity exists with nicely toned examples as most are still RD. And the rd ones have a special luster that you do not see on modern proofs. Nice going back in time. thanks bill.
OINK
The emphasis on high grades was not nearly as important in 1966. Ugly messed up coins and "bad penny Proofs" were avoided, but "perfect coins" were not the big deal that they are now. Pleasant coins that were all really Proof pieces (See my comments about fake Proof coins) were the larger collectors concerns.
Very interesting read. I learned a few things.
Excellent article Bill ..... Thanks for the information. Cheers, RickO