New Bill Would Authorize Uncirculated and Proof Silver Eagle Coins

The United States Congress could help the United States Mint strike 2010 American Eagle Silver Proof Coins and 2010 American Eagle Silver Uncirculated Coins.

One part of a multifaceted bill recently introduced in the U.S. House of Representatives authorizes the U.S. Mint to produce the collector versions of the Silver Eagles even if that cut into the supply of bullion silver coins.

Current law only requires the U.S. Mint to manufacture sufficient bullion American Eagles to meet public demand, but it overlooks collector demand for numismatic versions.

[Editor’s update: The bill, described below, passed in the House September 29, 2010, and is now in the Senate.]

The bill, the Coin Modernization, Oversight, and Continuity Act of 2010, or H.R. 6162, was introduced by Rep. Mel Watt (D-NC). The legislation’s foundation was partly derived from U.S. Mint Director Edmund Moy and others who testified during the July 2010 hearings on "The State of U.S. Coins and Currency" before the House Subcommittee on Domestic Monetary Policy and Technology. The Subcommittee is chaired by Rep. Watt.

As reported in last month’s 2010 Proof Eagle Coins Update, Director Moy encouraged the current law to be amended so that the Secretary of the Treasury could authorize production of American Eagle Silver Proof and Uncirculated Coins. He went on to testify:

"We can mint 200,000 per month, and if we can begin by September, we will be able to produce about 830,000 one-ounce silver American Eagle coins to meet collector demand for this product in the remaining months of 2010."

In H.R. 6162, a change is called for in Section 5112 of title 31 of the United States Code. The bill would replace "quantities" with "qualities and quantities" when it came to meeting public demand. The Secretary of Treasury could then have the Mint produce collector American Eagles even when there is an unprecedented calling for bullion coins. Last year’s uncirculated and proof American Eagles were canceled due to a strained supply of coins blanks. Available supplies were allocated to bullion Silver Eagles only. Demand for those is even higher this year, again jeopardizing collector eagle production unless some change occurs.

The Coin Modernization, Oversight, and Continuity Act of 2010 was introduced on September 22, 2010, and has been referred to the House Committee on Financial Services. It must pass in the House and the Senate, then it must be signed by the President in order to become law. All of that takes time, so an October passage would be optimistic. Yet, if it happened, several hundred thousand numismatic Silver Eagles could still be minted this year, based on Moy’s figures.

H.R. 6162 has other provisions, including changes to the America the Beautiful Silver Bullion Coins, coin composition research and development authority for the Mint, and new reporting requirements for the Treasury Secretary.