WWII Proposal for the Mint to Strike $10 Million of One Ounce “Eagle Variant Coins” For China
JCH22
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The history of U.S. Wartime relations with Nationalist China, led by Chiang Kai-shek was complex, and has spawned numerous books and studies.
Relevant here is a novel proposal for the mint to strike $10 million in unusual one ounce gold coins. In 1943 the US authorized the transfer of $200 million in gold to China. China, occupied by Imperial Japan, and with a fragile truce between Nationalists and Mao’s Communists in effect, was experiencing runaway inflation at that point in the War.
The following proposal was made in relation to a portion of the gold:
Memorandum by the Assistant Chief of the Division of Far Eastern Affairs (Vincent)
[Washington,] September 17, 1943.
Gold Coins for China
In connection with the two hundred-million-dollar gold sale to China, Mr. Friedman of the Treasury Department telephoned to inform me that Treasury was proposing to mint approximately $10,000,000 (US) of the gold into coins which he described as follows: Profile of Sun Yat-sen on one side; American eagle on the other. On the face with the American eagle would be the inscription “United States Mint”, or words to that effect, and a statement of the gold content of the coin (one ounce). On the other face of the coin there would be Chinese characters giving the same information. Mr. Friedman said that the Chinese Government had not agreed to this proposal but that it was hoped that an agreement could be obtained in as much as the Government’s original objection to coins was based on the fact that it would be necessary to state a value in terms of currency which the Chinese Government desired to avoid.
Mr. Friedman said that it was anticipated that these coins would circulate more widely than gold bars by furnishing the small investor with a savings or hoarding medium, thus widening the area of effectiveness in retarding inflation.
Mr. Friedman asked me whether I thought there would be any objection in the Department to the idea. I told him I thought it a good one and that I would speak to Mr. Hornbeck and Mr. Feis. Mr. Hornbeck approved and Mr. Feis interposed no objection. When Mr. Friedman called back, I told him of the attitude of Mr. Hornbeck and Mr. Feis.
J[ohn] C[arter] V[incent]
The proposal, after numerous back and forth between diplomats and other officials, ultimately came to naught.
Is an interesting “what might have been”—a quasi new trade coin —but in gold.
Comments
How in the world could we have delivered it? Burma Road? Over the Himalayas?
The original post is a fascinating topic in numismatics.
At that time some countries still relied on gold coins. The United States did strike gold coins for Saudi Arabia in 1945 and 1947 but they did not have any Arabic inscriptions on them.
The Mysterious Egyptian Magic Coin
Coins in Movies
Coins on Television
Coin diplomacy!
From Dean Acheson
The Acting Secretary of State to the Chargé in Saudi Arabia (Sands)
restricted
Washington, April 26, 1946—7 p.m.
Acheson
14.Not printed; it transmitted the Minister of Finance’s inquiries as to whether the United States would be willing to sell up to $2,000,000 of gold to Saudi Arabia during 1946 and would mint silver for his country (890F.51/4–1546).↩
USPS, of course. "Neither snow nor rain nor heat nor gloom of night stays nor world war these couriers from the swift completion of their appointed rounds."
Interesting. I would assume these proposed coins would have resembled something like the US-Saudi gold sovereign on one side, and something like the obverse of the Junk Dollar on the other.
Roman emperor Marcus Aurelius, "Meditations"
Apparently I have been awarded one DPOTD.