[Congressional Record Volume 154, Number 78 (Tuesday, May 13, 2008)]
[House]
[Pages H3719-H3722]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ORIGINAL SAINT-GAUDENS DOUBLE EAGLE ULTRA-HIGH RELIEF PALLADIUM BULLION
COIN ACT
Mr. GUTIERREZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 5614) to authorize the production of Saint-Gaudens Double
Eagle
[[Page H3720]]
ultra-high relief bullion coins in palladium to provide affordable
opportunities for investments in precious metals, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5614
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act shall be known as the ``Original Saint-Gaudens
Double Eagle Ultra-High Relief Palladium Bullion Coin Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) the Augustus Saint-Gaudens $20 gold pieces of 1907 with
ultra-high relief are considered by many in the numismatic
community to be the most beautiful coins ever produced;
(2) two separate ``pattern'' versions of the ultra-high
relief Double Eagle were produced in 1907;
(3) a 34-millimeter version was hand-struck on a standard
Double Eagle planchet using a medal press and, because
manufacturing and technical limitations prevented mass
production of these pieces, this production resulted in low
mintage, with fewer than two dozen specimens of the 34-
millimeter version known to be in existence today;
(4) a second, 27-millimeter, version was struck using two
stacked $10 Eagle planchets;
(5) these experimental ``pattern'' 27-millimeter pieces
were deemed to be illegal to produce and all specimens were
destroyed except for 2 that reside in the Smithsonian's
National Numismatic Collection;
(6) the 27-millimeter pattern pieces are ranked by
numismatists as among the most beautiful coins ever produced,
but none are in private hands and none have ever come up for
sale;
(7) the ultra-high relief Double Eagles are representative
of the greatest period of American coinage, the so-called
``Golden Age of Coinage'' in the United States, initiated by
President Theodore Roosevelt, with the assistance of noted
sculptors and medallic artists James Earle Fraser and
Augustus Saint-Gaudens;
(8) the introduction of this famous piece as a numismatic
proof coin would not only give collectors an opportunity to
own a version of a legendary coin that has never before been
available for private ownership, but also inaugurate a neo-
renaissance in United States coin design and demonstrate the
technological advances that the United States has achieved
over the last century;
(9) the modern coin version of the $20 gold piece would be
updated with the addition of the inscription ``In God We
Trust'' and would include the date of minting or issuance, to
distinguish it from the originals and prevent counterfeiting;
(10) palladium is a rare silver-white metal, and is
considered a precious metal because of its scarcity;
(11) palladium is one of 6 platinum group metals that
include ruthenium, rhodium, osmium, iridium, and platinum; it
is the least dense and has the lowest melting point of the
platinum group metals;
(12) the major nations mining palladium are in order of
volume: Russia, South Africa, United States of America, and
Canada;
(13) the major mine producing palladium in the United
States is located in Montana;
(14) palladium is fabricated into a wide range of
applications that includes its extensive use as an industrial
catalyst and a key component in the manufacturing of
automotive catalytic converters;
(15) palladium is also used in dentistry, jewelry, and in
the production of surgical instruments and electrical
contacts;
(16) the demand for precious metals is driven not only by
their practical use, but also by their role as a store of
value;
(17) a variety of investment options are available to
palladium investors that includes coins, bars, and exchange-
traded funds;
(18) palladium coins have been issued by several countries,
mainly as commemorative coins, but also as bullion investment
coins (bullion is the form of palladium traded for investment
purposes and is a reference to its purity);
(19) Tonga commenced issuing palladium coins in 1967 and
other issuing countries have included Canada, the Soviet
Union, France, Russia, China, Australia, and Slovakia;
(20) today, only Canada mints palladium bullion coins;
(21) during the period 2003 through 2007, the price of
palladium ranged between $148 and $404 per troy ounce, and
the average price in 2007 was $355 per troy ounce;
(22) by contrast, during the same period, the price of
platinum ranged between a low of $603 and a high $1,544, and
the average price in 2007 was $1,303 per troy ounce;
(23) thus, platinum bullion coins have become too expensive
for the average investor;
(24) The Royal Canadian Mint minted platinum bullion coins
for 14 years (between 1988 and 2001), but ceased production
in the face of high metal prices and declining sales;
(25) when the United States Mint's American Eagle Platinum
Bullion Coin was launched in 1997, the average price for the
metal that year was $395 per troy ounce; and
(26) over the past decade, the price has more than tripled,
which has caused a dramatic decline in demand for these
coins, from 80,050 ounces sold in 1997 to 9,050 in 2007.
SEC. 3. ORIGINAL SAINT-GAUDENS DOUBLE EAGLE ULTRA-HIGH RELIEF
BULLION COIN.
Section 5112 of title 31, United States Code, is amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(12) A $20 coin that--
``(A) is 27 millimeters in diameter;
``(B) weighs 1 ounce;
``(C) is of an appropriate thickness, as determined by the
Secretary; and
``(D) bears, on the obverse and reverse, the designs of the
famous 27-millimeter version of the 1907 Augustus Saint-
Gaudens Double Eagle gold piece, as described in subsection
(t).''; and
(2) by adding at the end, the following new subsection:
``(t) Original Saint-Gaudens Double Eagle Ultra-High Relief
Numismatic Coins and Bullion Investment Coins.--
``(1) In general.--Beginning January 1, 2009, the Secretary
shall commence minting and issuing for sale--
``(A) such number of $20 bullion investment coins as the
Secretary may determine to be appropriate, that bear the
design described in paragraph (2); and
``(B) not more than 15,000 of the numismatic $20 coins that
bear the design and meet the requirements of paragraph (3).
``(2) Design and requirements for bullion investment
coins.--
``(A) In general.--Except as provided under subparagraph
(B), the obverse and reverse of the coins minted and issued
pursuant to paragraph (1)(A) shall bear a close approximation
of the original obverse and reverse designs by Augustus
Saint-Gaudens which appear on the famous 27-millimeter
version of the 1907 Double Eagle ultra-high relief gold
piece.
``(B) Variations.--The coins referred to in subparagraph
(A) shall--
``(i) have inscriptions of the weight of the coin and the
purity of the alloy in the coin raised on the edge of the
coin;
``(ii) bear the nominal denomination of the coin;
``(iii) bear the date of issue of the coin on the obverse,
expressed as a Roman numeral as in the original design; and
``(iv) bear such other inscriptions, including `In God We
Trust', as the Secretary determines to be appropriate and in
keeping with the original design.
``(C) Mint facility.--Any facility of the United States
Mint may be used to strike coins minted pursuant to paragraph
(1)(A) other than the United States mint at West Point, New
York.
``(3) Design and requirements for ultra-high relief
numismatic coins.--
``(A) In general.--Subject to subparagraph (B), the obverse
and reverse of the coins minted and issued pursuant to
paragraph (1)(B) shall bear exact replicas of the original
obverse and reverse designs by Augustus Saint-Gaudens which
appear on the famous 27-millimeter version of the 1907 Double
Eagle ultra-high relief gold piece and the edge of the coin
shall have all appropriate raised lettering in the same
manner as the original coin.
``(B) Variations.--The coins referred to in subparagraph
(A) shall--
``(i) bear a single finish that most closely approximate
the finish of the original gold 1907 ultra-high relief gold
piece as is practicable;
``(ii) bear the nominal denomination of the coin;
``(iii) bear the date of issue of the coin on the obverse,
expressed as a Roman numeral as in the original design; and
``(iv) bear such other inscriptions, including `In God We
Trust', as the Secretary determines to be appropriate and in
keeping with the original design.
``(C) Mint facility.--Coins minted pursuant to paragraph
(1)(B) may only be struck at the United States mint at West
Point, New York.
``(D) Fractional coins prohibited.--No coins issued
pursuant to paragraph (1)(B), shall be made available as so-
called `fractional' coins.
``(4) Distribution in sets and other coordination
requirements.--If the Secretary chooses, in accordance with
subsection (i), to mint and issue a gold bullion coin that
bears the same design as the ultra-high relief numismatic
coins described in paragraph (1)(B)--
``(A) each palladium coin issued under paragraph (1)(B) may
only be issued in a set containing 1 of each such coins;
``(B) each set of coins described in subparagraph (A) shall
be provided in a presentation case of appropriate design;
``(C) the set described in subparagraph (A) may only be
issued and sold in 2009;
``(D) gold coins issued in any set described in
subparagraph (A) may only be struck at the United States mint
at West Point, New York and no other gold coin issued by the
Secretary that bears the same design as the ultra-high relief
numismatic coins described in paragraph (1)(B) may be struck
at such mint at West Point; and
``(E) no gold coin that bears the same design as the ultra-
high relief numismatic coins described in paragraph (1)(B)
shall be made available as so-called `fractional' coins.
``(5) Composition.--
``(A) In general.--The coins minted under this subsection
shall contain .995 pure palladium.
``(B) Source of bullion.--
[[Page H3721]]
``(i) In general.--The Secretary shall acquire bullion for
the palladium coins issued under this subsection by purchase
of palladium mined from natural deposits in the United
States, or in a territory or possession of the United States,
within 1 year after the month in which the ore from which it
is derived was mined.
``(ii) Price of bullion.--The Secretary shall pay not more
than the average world price for the palladium under
subparagraph (A).
``(6) Sale of coins.--Each coin issued under this
subsection shall be sold for an amount the Secretary
determines to be appropriate, but not less than the sum of--
``(A) the nominal denomination of the coin;
``(B) the market value of the bullion at the time of sale;
and
``(C) the cost of designing and issuing the coins,
including labor, materials, dies, use of machinery, overhead
expenses, marketing, distribution, and shipping.
``(7) Legal tender.--The coins minted under this title
shall be legal tender, as provided in section 5103.
``(8) Treatment as numismatic items.--For purposes of
section 5134 and 5136, all coins minted under this subsection
shall be considered to be numismatic items.
``(9) Quality.--The Secretary may issue the coins described
in paragraph (1)(A) in both proof and uncirculated versions.
``(10) Protective and anti-counterfeiting cover.--
``(A) In general.--The Secretary shall give strong
consideration to making the coins described in this
subsection available only in protective covers that preserve
the coins in the condition in which they are issued, allow
clear and easy viewing of the obverse, reverse, and sides of
the coin and protect it from movement within the holder, and
also protect against counterfeiting of such coins or of the
container.
``(B) Acquisition.--The Secretary may elect to comply with
subparagraph (A) by producing and assembling such protective
covers within the United States Mint or by contracting for
the installation of such covers.
``(11) Further anti-counterfeiting measures.--
``(A) Report required.--In an attempt to forestall the
counterfeiting or marketing of the coins described in this
section, including this subsection, and of collectible,
numismatic and rare coins in general, the Comptroller General
shall, after consulting with the Director of the United
States Secret Service and the Federal Trade Commission, and
in consultation with hobbyists, numismatists, law enforcement
agencies, and the Citizens Coinage Advisory Committee, shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, before the end of the 9-month
period beginning on the date of the enactment of the Original
Saint-Gaudens Double Eagle Ultra-High Relief Bullion Coin
Act, a report detailing the extent of counterfeiting of rare,
collectible or numismatic coins made available for sale in
the United States, regardless of the country where the
original of such coin was produced or of the country in which
the counterfeiting takes place, or sales overseas if such
counterfeit coins are unauthorized copies of coins originally
produced by the United States Mint.
``(B) Contents of report.--The report submitted under
subparagraph (A) shall describe the following:
``(i) The extent of such counterfeiting of coins and
numismatic items.
``(ii) The source of such counterfeiting, if known,
including which countries may be the origin of such
counterfeits if they are produced outside the United States.
``(iii) The distribution and marketing channels for such
counterfeits within and without the United States.
``(iv) The effect of any such counterfeiting on hobbyists,
numismatists and on the investment opportunities for bullion
or numismatic coins produced by the United States Mint.
``(v) Whether such counterfeiting extends to the
counterfeiting of coin-grading or protective materials in
such a way that might imply that the counterfeit inside had
been examined and authenticated by a reputable coin-grading
firm.
``(vi) Such recommendations for legislative or
administrative action as the Comptroller General may
determine to be appropriate to curtail or forestall any such
counterfeiting.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Gutierrez) and the gentleman from Delaware (Mr. Castle)
each will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
General Leave
Mr. GUTIERREZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. GUTIERREZ. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, today I rise in strong support of H.R. 5614, the
Original Saint-Gaudens Double Eagle Ultra-High Relief Palladium Bullion
Coin Act, of which I am an original cosponsor.
H.R. 5614 instructs the Secretary of the Treasury to mint and issue
$20 coins in memory of Augustus Saint-Gauden Double Eagle gold pieces
of 1907. The issuing of this coin will begin on January 1, 2009.
The introduction of this famous piece as a collectors' proof coin
would not only give collectors an opportunity to own a version of a
legendary coin that has never before been available for private
ownership but also inaugurate a neo-renaissance in United States coin
design. The coin will also demonstrate the technological advances in
engraving and minting the U.S. has achieved over the last century.
I congratulate my friend from the Financial Services Committee, Mr.
Castle, for introducing this bill and urge all Members to support its
passage.
Mr. Speaker, I reserve the balance of my time.
Mr. CASTLE. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, this is simple legislation, as Mr. Gutierrez has said,
that directs the creation of an investment-grade coin of palladium made
available to those who seek to invest in precious metals as a hedge
against inflation.
I'm happy to be a sponsor of this bill, along with Mr. Gutierrez, the
chairman of the Domestic and International Monetary Policy, Trade, and
Technology Subcommittee that I once chaired.
With the spike in value of precious metals, investors who recently
may have bought gold to put in IRAs have nothing in the standard 1-
ounce size investor coin between $18 or so and about $1,000, with gold
having jumped in the last couple of years from maybe $400 an ounce to
more than $900.
Palladium, known as the fourth precious metal and approved as an
investment vehicle by Congress a decade ago, along with gold, silver
and platinum, would fill that gap.
{time} 1615
Yesterday it was trading at about $422 an ounce. Palladium is also
mined in quantity in the United States. I'm told that more than 400
people work in the Palladium mine in Montana.
Mr. Speaker, investors do want a choice in their precious metals. And
while gold may always be king, if the Mint is going to have a bullion
program, it needs to present alternatives. Unfortunately, for many
investors, platinum, once valued at nearly the same as palladium, has
leapt to nearly $2,000 an ounce, and once-healthy sales of platinum
bullion coins shrank to a mere 9,000 ounces last year.
Creating a palladium bullion coin will offer investors another
option. Additionally, Mr. Speaker, this legislation calls for a limited
number of the palladium coins to be made with the exact design as the
famous gold 1907 Saint-Gaudens Double Eagle Ultra-High Relief coin, of
which only about a dozen were made because of technical limitations at
the time. I understand Mint Director Moy plans to make gold replicas of
that coin, and if so, this bill provides that a limited number be sold
in a special presentation case with numismatic versions of the
palladium coin.
Mr. Speaker, I want to call Members' attention to a report required
at the end of the bill. For some time now we've been hearing of the
import and sale into the United States of high-quality fakes of both
collectible and investor coins, and more recently of counterfeiting of
the special containers that certify a coin's quality as set by an
independent grading firm. Mr. Speaker, counterfeiting must be stopped,
whether it's of U.S. $100 bills, ancient Greek coins, or high-quality
fashion ware.
The report required in this bill will, I hope, focus the various
parts of the government with jurisdiction over this crime so we can
determine the scope and source of the problem and begin taking
appropriate action to stop it.
I urge quick passage of the bill.
Mr. Speaker, I reserve the balance of my time.
Mr. GUTIERREZ. Mr. Speaker, I yield back the balance of my time.
[[Page H3722]]
Mr. CASTLE. Mr. Speaker, I ask support of the legislation.
I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Illinois (Mr. Gutierrez) that the House suspend the
rules and pass the bill, H.R. 5614, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. SIMPSON. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
The point of no quorum is considered withdrawn.
____________________