March 2010

BILL PROPOSES REAGAN ON $50 FEDERAL RESERVE NOTE

Representative Patrick McHenry, (R-N.C.) has introduced H.R. 4075 which, if enacted, would replace the portrait of Ulysses S. Grant on the $50 Federal Reserve Note with one of Ronald Reagan. McHenry has called Reagan "a modern day statesman, whose presidency transformed our nation's political and economic thinking" and issued a statement that reads in part "One decade into the 21st century, it's time to honor the last great president of the 20th and give President Reagan a place beside Presidents Roosevelt and Kennedy." Franklin Roosevelt's portrait has been on the obverse of U.S. dimes since 1946, and John F. Kennedy has appeared on the obverse of the U.S. half dollar since 1964.

McHenry's proposal has predictably received mixed reviews. Noting the divide between Reagan's supporters and critics, Rep. Brad Sherman (D-OK) said "Our currency ought to be something that unites us." Admirers of Grant, who led the Union army during the Civil War and served as the nation's 18th President, have also objected. Keya Morgan, a New York-based Grant scholar said "I have all the respect in the world for Reagan, but what he accomplished is not anywhere as important as what Ulysses S. Grant accomplished."

Reagan was the 40th President of the United States, serving two terms from 1981-89. The 100th anniversary of his birth will occur during 2011. Separate earlier bills to put Reagan's portrait on the dime and the $20 bill were unsuccessful. A 2005 effort to put Reagan on the $50 bill never advanced from the House Financial Services Committee, despite Republicans having a majority at the time. McHenry's bill has been sent to the same committee for consideration.

GRADING CIRCULATED COINS

Last month we noted that the ability to evaluate the condition of coins and paper money is an essential skill for those who collect them. Standards for grading have been published in various books, with detailed descriptions and pictures for specific coin series. Here we are necessarily limited to a brief overview. The most widely used grading standards for coins in the U.S. are those published by the American Numismatic Association (ANA).

Coins with no wear at all are considered to be "uncirculated" which we'll discuss in our next issue. Grading circulated coins is generally not difficult, as it's primarily is a matter of the extent to which the design details are worn. A grading guide, a 4x to 7x magnifier, a good light source and practice are all you need to become proficient.

A coin with very little wear (meaning it may have been spent a few times and went it into a few pockets and purses before being set aside) is considered to be About Uncirculated or AU. AU coins have small flat spots on the highest design points and usually still have much of their original mint luster. The next highest circulated grade is Extremely Fine - EF and XF are used interchangeably as abbreviations. These coins may still have some mint luster. Flat spots are readily apparent on the highest details but the major design elements remain well defined.

As a coin actively circulates longer, the wear increases. It's evident on all design details in the next highest grade, Very Fine or VF. For example, if the design includes a portrait, the distinction between hair and face is still obvious, but most of the hair details are flat. In Fine (F) condition some of the major details are worn completely smooth. When only a few design details are left, a coin may be graded Very Good (VG). When only outlines of the major design elements remain, it may be graded Good (G). Even more heavily worn coins may be graded About Good (AG), fair or poor.

Other factors besides wear should be observed and noted, particularly for coins in the higher circulated (and uncirculated) grades. These include any harsh cleaning, major scratches, edge bumps or other significant damage.

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