[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.

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