The history of the 1933 Double Eagles. Super condensed version of "Illegal Tender" book

xbob · April 11, 2005 2:03PM

I just finished reading “Illegal Tender” by David Tripp. The book is primarily about “The” 1933 Gold Double Eagle, but it was truly a fascinating book of some U.S. history surrounding gold, the depression, and the coins that would be of particular interest to forum members.

I took notes to help me follow the story and thought I would share them here.

Keep in mind; this is an extremely condensed version of the history. I found the people involved to be very interesting and thought some forum members may even know, have known, or possibly were involved in this history. For the full story, I would strongly advise reading the book. I’ll try to keep this to the main details.

1905 - Teddy Roosevelt asks Augustus St. Gaudens to design new U.S. Coins.
1906 - St. Gaudens does designs and Henry Hering creates the carving for the $20 double eagle. (and the $10 eagle, also St. Gaudens’ design)
1907 – St. Gaudens dies. High relief concept coins minted. Barber modifies the carving to a flattened relief so they could stack better and be minted easier.
…St. Gaudens’ $20 double eagle minted until 1933
1933 - FDR outlaws gold “hoarding”, which gradually becomes more defined and less vague and in…
1934 - becomes a government recall of all gold.

…The 1933 is never released for circulation and they are “all” melted with the exception of 2 specimens sent to the Smithsonian (which they still have). Mint cashier George McCann manages to steal a few. Exactly how many is uncertain. They were presumed all sold (or some type of deal negotiated) to dealer Israel “Izzy” Switt.

Sometime around 1937, the ‘33s begin to appear in the hands of collectors. The sales all begin with Israel Switt to those listed below… (U.S. Secret Service seizures took place from 1944-1946):
1. James MacAllister -> B.Max Mehl -> Col. James Flanagan -> U.S.S.S. (Seized)
2. James MacAllister -> Max Berenstein -> U.S.S.S.
3. Abe Kasoff -> Hammell -> Ira Reed -> J.F. Bell (Jake Shapiro) -> U.S.S.S.
4. Fred C.C. Boyd -> U.S.S.S.
5. Ira Reed -> T.James Clarke -> U.S.S.S.
6. Ira Reed -> James A. Stack -> U.S.S.S.
7. James MacAllister -> B.Max Mehl -> C.F. & C.M. Williams -> U.S.S.S.
8. Ira Reed -> J.F. Bell -> L.G. Barnard -> U.S.S.S.
9. Ira Reed -> Louis Eliasberg -> U.S.S.S.
10. Ira Reed -> B.Max Mehl -> King Farouk of Egypt - overthrown by Free Officers (1952) -> more to come about this one….
11. Abe Kasoff -> Sol Kaplan -> C.F. Williams -> ?
12. Ira Reed -> J.F. Bell -> B.L. Taylor -> ?

These are all that the U.S.S.S. had notes about. #11 Could be a misdirected lead of coin #7. #12 Could be #8. These coins were not seized and not mentioned again by the author. The seized coins were all melted.

#10 was put up for sale in 1954 in Egypt. The U.S. Govt asked the sale be stopped, which it was, but the coin was not returned and disappeared. Cut to present…..

1994 - Unnamed Egyptian jewler negotiates sale of the 1933 Saint, presumed to be from Farouk's collection, to Andre deClermont for British dealer of U.S. Coins, Stephen Fenton who in
1995 - calls Marc Emory of Heritage (Europe) who calls Jasper "Jay" Parrino who calls Jack Moore, a buyer that expressed serious interest in a ’33 many times. Moore calls the U.S.S.S. and becomes an informant and helps set up the sting.
(Note: David Hall was also called but knew enough about the legality of the coin to stay clear of it.)
1996 - NYC, Fenton, Parino, and Fenton’s cousin are taken into custody for selling the coin.
Over the next few years…Barry Berke (attorney for Fenton) gets criminal charges dropped. Why? The U.S. Govt. did not make it known that the ‘33s were all stolen property + Egyptian law that even if it had been stolen it becomes the “thieves” property after a number of years.
2000 - Continued negotiations with Jane Levine, Asst. U.S. Atty about legality/sale of coin.
2001 – Agreement signed that coin would be sold with Fenton & the U.S. Govt. splitting the proceeds (+ $20 to the Govt.). Since word was now “out” that the ‘33s were all stolen, it was declared that this coin, would be the only ’33 to ever be made legal.
2002 – Sold at auction for $6.6 Million. 15% buyers fee + $20 to the Govt (to make it legal) = $7,590,020. The buyer is anonymous. The owner has allowed it to be displayed in the Federal Reserve Building in New York City where it still remains.

Rumors:
- Izzy Switt had more than 25 1933’s, and sold only 14.
- In the 70’s or 80’s, Switt said he could get one from Ira Reeds relatives and the deal would be done in Switzerland. The deal never happened.
- Q. David Bowers has handled 4 1933’s, in the 40’s and 50’s, one of which ended up in Switzerland.
- In Oct. 1980 a photo surfaces of a 1933 with no marks matching the 3 known.
- The 2002 buyer of the coin is or was also a baseball team owner.
- I have one.

Ha! I Hope you enjoyed this post.

Links:
U.S. Mint site - Timeline of the 1933
The book Illegal Tender

PreTurb · April 11, 2005 9:21PM

If anyone wants a nice new Stack's/Sotheby's 7/30/2002 auction catalog of the "legalized" 1933 Saint, pm me - $14 postpaid for Forum members.

xbob · April 11, 2005 10:54PM

One more interesting side note: in 1945, a B-52 hit the Empire State Building and completely destroyed Henry Hering's studio. Damage was estimated around $80K but his work was considered priceless by some. The Army didn't consider it priceless, and gave him $25K for his trouble.

Some say the 1933 carries a curse to all involved. This is just one example.

saintguru · April 11, 2005 10:55PM

Izzy Swift was some piece of work. Melting a bag of 1929 Saints in his basement with the Feds on his trail.

Longacre · April 11, 2005 11:30PM

Good summary! I plan to read that book eventually. Thanks

saintguru · April 11, 2005 11:32PM

PRead it sooner than later...VERY fascinating and every collector will enjoy some of the chicanery!!

Gotta go liook at my 1933 now.

Julian · April 12, 2005 12:34AM

Q. David Bowers has handled 4 1933’s, in the 40’s and 50’s, one of which ended up in Switzerland

This statement is not at all accurate. Absolutely no validity.

jom · April 12, 2005 12:58AM

I reasonably certain David Bowers was NOT in the coin business in the 1940s.

jom

xbob · April 12, 2005 12:59AM

<< Q. David Bowers has handled 4 1933’s, in the 40’s and 50’s, one of which ended up in Switzerland

This statement is not at all accurate. Absolutely no validity. >>

Maybe that's why it was a rumor?

It was stated in the book and the author apparently spoke to Bowers when compiling material. Perhaps he didn't get confirmation on this one. I have no way of knowing for sure if it's true or not.

What's your connection with it Julian? I was hoping some forum members would know some inside info and could elaborate on the story.

TheRaven · April 12, 2005 2:48AM

This was an excellent book that any/every coin collector should enjoy reading.

Did not recall seeing the blurb about the owner of the coil being a baseball owner.

It does surprise me that after all this time word has not gotten out who the owner of the coin is.

I wonder what the secret service thinks about that Oct 1980 picture of a 33 Double Eagle. For those that don't know there is a date stamp on the photo with that date.

Julian · April 12, 2005 2:59AM

I know both Dave Bowers and David Tripp. They know each other very well. There should be no ambiguity on the four coin issue.

This coin has always been one that has held keen interest for me.

I have read the book and Tripp makes an excellent case for the governments position, but others have had real life experiences.

I feel that the 1933 $20 should be legal to own, period, end of story, regardless of anything that happened in the past. It is a genuine coin, no question, and there is probably no one alive that may have been involved with any questionable transactions.

I can state that there is at least one other coin in existence, outside of the SI and the Farouk (?) specimens. I am not absolutely convinced that the coin sold in 02 was the Farouk specimen.

coinguy1 · April 12, 2005 3:16AM

<< I am not absolutely convinced that the coin sold in 02 was the Farouk specimen. >>

Ahhhh, I have heard similar sentiments echoed elsewhere. And, if the example that sold in 02 was not the Farouk specimen, it makes a mockery of the government's stated reasoning in legitimizing/legalizing the sale of (just that one) specimen.

msch1man · April 12, 2005 3:51AM

I thought this book sounded fascinating when I heard about it...I'll have to read it. Thanks for the good report.

It got me to wondering...assuming that there are a handful of "other" 1933s (let's say there are 5 floating around outside of the 1 legalized and the 2 Smithsonian examples)...how much do you think one of these "other" 1933's would sell for (remembering of course that it would have to be a private dealer to collector transaction)?

xbob · April 12, 2005 4:39AM

Who knows what the others would sell for. It's anyone's guess. Timing of their appearances could also effect price since nobody knows for sure how many there are.

I agree with Julian that they should all be made legal at this point. The government made it public knowledge that they were stolen, but at this point, who cares? Their value as historic collectibles far outweighs the fact that it's not legitmate currency. The book also mentioned that many of the pattern coins out there were released in questionable transactions between mint employees and coin dealers.

The mint seems to be attracting new collectors all the time with State quarters, new nickels, etc... but maybe someday when they need a publicity boost, they can convice the feds to legalize the 33's. It would make for some good news!

TheRaven · April 12, 2005 4:53AM

That is the reason that the government does not call that coin the Farouk coin, because they where not 100% positive about that.

You say if it is not that coin it makes a mockery, the government did it this way because there was a chance that they would lose in court so this way they made a deal.

saintguru · April 12, 2005 5:35AM

{i]I know both Dave Bowers and David Tripp. They know each other very well. There should be no ambiguity on the four coin issue.

Julian...the DeVry Tech Institute can straighten technical shortcomings like this out in just 24 months! It's almost Pollak-esque.

I'd bet there are a FEW 1933's that are being held. Izzy Swift...they didn't name him Swift for nothing...

lloydmincy · April 12, 2005 6:05AM

Jay, you're a character. Can't wait to have another one show up. You know some ecclectic secret old coin family, mint related or something like - still sit at the fire place and look at their 1933 once in a while...

If I had one in my hand, I would run as fast as I could, get a big shot lawyer and complain that ANOTHER one was made legal tender, and call CNN. WHY NOT???

pharmer · April 12, 2005 6:14AM

Found the discussion with the author on the Dennis Prager show today interesting in that had the govt. not gotten the 1954 auction cancelled, it could have bid and gained possession.

Julian · April 12, 2005 6:16AM

I am pretty sure that Izzy died in the 90's, although there are some current Philadelphia dealers that knew him.

As for my gobldeygook on my original post, I tried to clean it up, but the message board would not do so. My apologies.

It should have read:

I know both Dave Bowers and David Tripp. They know each other well. There should be no ambiguity on the four coins.

GOLDGUY · April 12, 2005 6:18AM

Q. David Bowers has handled 4 1933’s, in the 40’s and 50’s, one of which ended up in Switzerland.

That's one rumor with NO basis in fact.

I am not absolutely convinced that the coin sold in 02 was the Farouk specimen.

Was ANYBODY "absolutely convinced" besides a couple U.S. Attorneys?

coinguy1 · April 12, 2005 6:21AM

"I am not absolutely convinced that the coin sold in 02 was the Farouk specimen"

<< Was ANYBODY "absolutely convinced" besides a couple U.S. Attorneys? >>

Todd, shame on you - you are assuming facts not in evidence - who said that even THEY (The U.S. Attorneys) were convinced?

TommyType · April 12, 2005 6:26AM

Question:

When some of you say, "I'm not convinced it is the Farouk specimen", is it:

a) It certainly COULD be, but it wasn't proven anywhere.

or,

b) There is actually evidence that indicates it really wasn't.

Just wondering if it's just a sceptical point of view, or a matter of evidence to the contrary.....

coinguy1 · April 12, 2005 6:33AM

<< When some of you say, "I'm not convinced it is the Farouk specimen", is it:

a) It certainly COULD be, but it wasn't proven anywhere.

or,

b) There is actually evidence that indicates it really wasn't.

Just wondering if it's just a sceptical point of view, or a matter of evidence to the contrary

>>

Tommy Type, one or two individuals to whom I have spoken, supposedly had heard from others (who, in one way or another were familiar with the Farouk specimen ) that the piece sold in 1902 was possibly/likely a different coin.

Edited: Make that 2002, not 1902 - thanks TDN.

tradedollarnut · April 12, 2005 6:39AM

Tommy Type, one or two individuals to whom I have spoken, supposedly had heard from others (who, in one way or another were familiar with the Farouk specimen ) that the piece sold in 1902 was possibly/likely a different coin.

I'm personally convinced that any $20 sold in 1902 was a completely different coin!

northcoin · April 12, 2005 8:58AM

I read parts of the book including the final chapters that included the "rumors" which I found most interesting. I was disappointed though in the author having come to the conclusion that any of the coins still out there are illegal contraband from original "theft." One would think some type of statute of limitations would have run on the "crime" of "receiving stolen property," especially when the original "receivers" are apparently all now dead. I would rate the book as legally very weak and it was almost embarrasing to see how the author bought hook, line, and sinker the government's position without submitting it to journalistic scrutiny or short of that having failed to at least have engaged expert assistance to lodge an argued legal challenge. I see the government finally conceeded this month - after a reasoned legal challenge - that holding gold certificates predating 1934 is now no longer illegal and they are no longer continuing in their efforts to confiscate same.

xbob · April 12, 2005 12:27PM

I see the government finally conceeded this month - after a reasoned legal challenge - that holding gold certificates predating 1934 is now no longer illegal and they are no longer continuing in their efforts to confiscate same.

If you are refering to the coin world article of this month, it was an historical account about the ban being lifted in 1964. It was an interesting story.

saintguru · April 12, 2005 10:37PM

There wasn't a shred of logic with the way the Treasury or the Secret Service acted from the first day they found out about the existence of the 1933's. If they would have allowed them special status and left them alone the coin would be anothe extremely col rarity, buy certainly not the "holy grail" that it is today. Has anything changed with these guys? I agree with the post that this coin should NOW be allowed to emerge legally...then we would know how many they are, and be able to better establish a value. Frankly, I think the 1930-S should be a bargain with only 32 graded by PCGS if they allowed the "speculated" dozen 1933's to emerge.

Of course, I have NO knowledge of any of these except for the nice "lacquered and polished" Farouk coin and the 2 in the Smittysonian.

I have to go to my vault now.......

mrfred · April 12, 2005 11:01PM

I have read the book, and I found it to be very interesting. It cries out to become a movie. There was a thread a few years ago, in which I proposed a title for a movie about the '33 double eagle: "The Last Saint". (Somebody -- I don't recall who -- chimed in with a proposed title about the 1964 silver dollars: "Peace in '64".)

I think Tripp does a fairly good job at keeping his prose moving along, particularly since he has to manage such a complex cast of characters.

I did not get the impression that he bought the government story as completely as some (on this thread) state. But he is definitely slanted that way. One thing that bothered me is his extremely short mention of the evidence of an export license for a 1933 double eagle to go to Egypt. As I recall the coin papers' treatments (around the time of the 2002 auction), proof of existence of that license was the key deciding factor in the settlement that allowed sale of the coin. It allowed the government to get rid of it without losing face and admitting -- as many here are pointing out -- that the ban on ownership of 1933 double eagles is unsupportable.

On that point, an interesting line of argument that Tripp does cover -- in better detail than the matter of the export license -- is the argument that the government never really advertised the illegality of 1933 Saints.

Finally:

<<In Oct. 1980 a photo surfaces of a 1933 with no marks matching the 3 known.>>

This was a very intriguing bit of Tripp's book. For those who have not read the book, he includes a black-and-white copy of the photo in question. What dates it is a Kodak processing stamp.

That photo could, of course, be a forgery.

The saga continues.

Julian · April 12, 2005 11:28PM

The photo is NOT a forgery. I am certain about that. There are other photos of the same coin.

mrfred · April 12, 2005 11:42PM

I was just trying to stir the pot!!

saintguru · April 12, 2005 11:54PM

Izzy stirred the pot...with a bag of stolen 1929 Saints in it...as the Feds knocked on his door.

I grew up in Philly, and I can picture exactly the kind of slimy South Philly guy that he must have been. Those guys were not "hitters" but they could steal your windpipe and you would just think the room was a tad stuffy.....

Ed62 · April 13, 2005 12:02AM

For those of you presently holding 1933 double eagles who think they 'shoud be' declared legal to own. Be advised that one of the collectors took the USG to federal court on this very issue after the SS seized his. The collector lost his case as well as his coin. The case was not appealed so it remains the law. It was a federal district court in Tennessee, I believe. You lawyers can look it up . . . . .

saintguru · April 13, 2005 12:33AM

That was DECADES ago....

oreville · April 13, 2005 12:45AM

<< Q. David Bowers has handled 4 1933’s, in the 40’s and 50’s, one of which ended up in Switzerland >>

Heck, Dave Bowers was known as the "Boy Wonder of Numismatics" in the 1950's.

Did he use the 1933 Double Eagle as a pacifier (as a baby) in the 1940's?

northcoin · April 13, 2005 5:27PM

Actually, if the case was not appealed it would most likely not be "the law." A lower court ruling usually does not set precedent. Not knowing about the specific case or its jurisdiction I am of course speaking only in general terms. Assuming it was a federal case and had been appealed to one of the major circuits it would even then only be "the law" in that circuit.

I'll have to go back and recheck that Coin World article. Looks like I bought it "hook, line and sinkcer" without recognizing it was an historical piece rather than a news item. Ah, well, a nice April Fool's joke on me. At least now I know why I had no problem picking up a gold certificate without any repercussions years ago.

mademan · April 13, 2005 8:30PM

WHAT A BOOK!!!!!!!- I couln not put it down- I got mine at my local library-This is astounding considering the the most recent coin book my library got before Illegal Tender was the Red Book for 1997. Please read "Illegal Tender" You will which you lived in the 1920-30-

Taikonaut · April 14, 2005 4:16AM

I've just ordered Illegal Tender. The law on banning people from owning gold coins after 1933 reminds me of how pathetic the US government can be, some say little has changed and I kind of agree. Gold is plentiful in the US with massive reserve and the gold standard was in place for a century. It almost seems Rooselvelt was envious of Stalin's dictatorial style and wanted a bit of autocracy for himself, anyone caught owning a gold coin was an affront to US government and probably considered a Kommie. If it hadnt been the reserves of foreign banks holding US gold coins and then releasing them for collectors I bet the US government have melted every gold coins ever made.

mrfred · April 14, 2005 4:20AM

The book makes an argument for the gold recall related to the Great Depression. The recall was intended to help restart the economy, and gold hoarding was thought to prevent such a restart. I don't fully understand that argument; perhaps others on this board can articulate it better.

Taikonaut · April 14, 2005 4:34AM

Mr Fred, who do you propose to be in this film about the 1933 Saint? I like to see Harrison Ford in it since this come across as a bit of Indiana Jones type mystery and maybe Kiera Knightley head the female cast. I think "Illegal Tender" is a good title for the film.

mrfred · April 14, 2005 4:37AM

We need some names, that's for sure.

Key roles to cast: Farouk, Teddy Roosevelt, Franklin Roosevelt, some of the key investigators, some of the wonderful 1950s coin dealers (e.g. Kosoff, Switt).

Hm... not many female roles!

The thing would be: to develop and market the movie as having the coin -- itself -- as the star. Kind of like that wonderful old western about a rifle 'Winchester 73'.

mrfred · April 14, 2005 4:39AM

p.s. I agree - I think "Illegal Tender" is a better name than "The Last Saint". For one thing, we still have Saints -- the modern Eagle bullion gold coin carries the St. Gaudens design. Plus, "Illegal Tender" has several good plusses going for it -- short and memorable, inherently controversial or striking in tone and implication, and best of all: Adjective plus Noun. There have been many movies that use that trick --
"Double Indemnity" for instance.

Taikonaut · April 14, 2005 4:53AM

Perhaps Teddy Rooselvelt great grandson can play the role of his great grandfather since they look alike. We can have Ben Kingsley as Farouk. I dont know what the other characters look like but they dont need to look like the people exactly, this is Hollywood based on fact and not a documentary and I am sure there is a way of adding a few female casts.
Do you know anyone who is big enough to have a shot at making this film?

streeter · April 14, 2005 5:23AM

Danny Devito as Swift.

denga · April 14, 2005 11:52AM

There has been, over the past several days, a discussion of the 1933 $20 gold piece. The sale was held in July 2002 and on
October 1, 2002, a 6,000 word article appeared in Numismatic News dealing with the events of 1933 in particular.
This article was based on the original Secret Service reports (1,000 pages, more or less) as well as documents discovered in
March 1996 in the Archives. Until the August 2004 release of the book by David Tripp, the Numismatic News article was the
only detailed discussion to appear in print and be based on unpublished documents. (The Sotheby catalogue was written
using only those documents that the government authorized to be released to the auction house.)

The Numismatic News article was reprinted by Coins Magazine in January 2003.

Based on the above documents, as well as other information obtained privately, the following can be stated:

1) Philadelphia Mint officials had the legal right to pay out gold coins, including double eagles, throughout March 1933.
This right was not abrogated until early April. (The Federal Reserve also paid out gold during March 1933, except during
the Bank Holiday early in the month.)

2) There is no record of $20 pieces paid out during March 1933 but a collector could have taken, for example, a dozen
1928 double eagles of full weight to the superintendent and these could have been privately switched for the 1933s.
This would have been a technical violation of the law but not its spirit.

3) The Secret Service records make it clear that, as Joe Friday used to say on Dragnet, the government had 10 pounds
of hot air in trying to prove theft by anyone of the 1933s.

4) The 1947 trial, in which L.G. Barnard tried to get his coin back, has often been quoted as strengthening the government
contention that the coins were stolen. However, the government "forgot" to mention that the coins could have been legally
issued in March 1933, thus making a mockery of justice for Barnard.

5) No one has yet proven that the piece recently sold in fact belonged to Farouk.

6) The Tripp book illustrated a dated photograph of another 1933 $20 piece but it is known that a third piece was
photographed by a well-known numismatist/photographer 20 odd years ago, a point noted in the Numismatic News article.
The present location of these photos is not known, however.

denga

Julian · April 15, 2005 2:47AM

Although Denga is not known to the board, he is known to me, and is an extremely competent numismatist and researcher.

His post has very valuable info. Please read his imput, if you are interested in this coin.

Longacre · April 15, 2005 2:55AM

I wonder if Denga will want to disclose his identity. As Julian indicates, if he is a very accomplished numismatist and researcher, it would be great to know who he is and to ask him some interesting questions. Pretty exciting.

xbob · April 15, 2005 3:23AM

2) There is no record of $20 pieces paid out during March 1933 but a collector could have taken, for example, a dozen
1928 double eagles of full weight to the superintendent and these could have been privately switched for the 1933s.
This would have been a technical violation of the law but not its spirit.

Speaking of a switch....
According to the book: There were other mint employees that witnessed cashier McCann running his hands through the 1933 Double eagles on several occasions, before they were bagged. The speculation is that he had a palmed double eagle and did a switcharoo for a 1933. That way the weights and counts would match up perfectly and nobody would be the wiser.

I suppose it couldn't be proven but it seems like a likely scenario.

edit: Forgot to add, WELCOME Denga and thanks for your input!!

Taikonaut · April 15, 2005 4:19AM

Is Denga Fenton by any chance?

northcoin · April 17, 2005 8:24AM

ttt

Hendrixkat · December 2, 2012 1:44AM

I just finished reading this book that I received by Musky and it is Autographed by the author. I could not put it down and read it in 1 week. I found it fascinating. There are 100% indeed other 1933 double eagles that exist. Anyone care to guess how many honestly may be in existance today? I thought it may be interesting to speculate as the coin is alluring and mysterious. Nobody will drop any names of potential owners because of the legality which is understandable and wise.

The history of the 1933 Double Eagles. Super condensed version of "Illegal Tender" book

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The history of the 1933 Double Eagles. Super condensed version of &quot;Illegal Tender&quot; book

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The history of the 1933 Double Eagles. Super condensed version of "Illegal Tender" book