What is a Commemorative Coin and How Does the Program Work?
A 1996 U.S. Mint report titled "Commemorative Coins Could Be More Profitable," described the issuance of commemorative coins as follows: "Every commemorative coin program is authorized by an act of Congress. Congress authorizes commemorative coins primarily as a means of honoring certain events and individuals and raising funds for the coins' sponsors. On occasion, the proceeds from commemorative coin sales are applied to the national debt. Commemorative coins are legal tender but are purchased and retained by collectors, rather than used as a circulating medium of exchange." The first commemorative coin, authorized by Congress in 1892, was the Columbian Exposition silver half dollar, commemorating Columbus's first voyage to the new world. These coins, priced at twice their face value, did not sell well, and many of them ended up being put into circulation by the banks that held them as collateral against unpaid loans taken out by the Exposition. Over fifty other commemorative coin programs were authorized between 1892 and 1951, and for the first few decades they were all to recognize anniversaries of major historical events or to raise money for legitimate memorial projects. But, of course, any program where money is involved is subject to abuse. By the 1920s things were already getting out of control. At that time, coins issued to fund a particular project were simply minted and then sold by the government to the recipient organization, which would then resell them for a profit, with the selling price set by the organization. This led to a flood of coins commemorating events that were only of local rather than national interest, organizations charging exorbitant prices for their coins, and even instances of coin dealers fabricating anniversaries to obtain a product to sell. In 1936, for example, a group of Ohio coin dealers formed the "Cincinnati Music Center Commemorative Coin Association" and applied to have a coin issued commemorating Cincinnati's "contribution to the art of music for the past 50 years." This coin was authorized by Congress despite the fact that the Commission of Fine Arts found that nothing of musical significance had occurred in Cincinnati in 1886 to make 1936 a 50th anniversary of anything. In 1939, Congress passed legislation severely limiting commemorative coins, and following the issue of the George Washington Carver - Booker T. Washington half dollar, which was sold from 1951 to 1954, the program was suspended for nearly three decades. The program was revived in 1981 with the authorization of a George Washington 250th Anniversary half dollar to be issued in 1982, the profits from which were applied to the national debt. By 1984, Congress was once again authorizing coins to raise funds for private organizations, but new legislation required that the coins be sold directly to the public by the U.S. Mint, with a fixed surcharge to be paid to the recipient organization. The minting of many of these coins resulted in a loss to the government, although the sponsoring organizations always made a profit. The problem was that the organization received its surcharge beginning with the very first coin sold, before the mint had recovered its set-up and other costs. If a coin sold so poorly that its sales didn't cover these costs, it was the government that took the hit. On the 1994 World Cup Tournament coins, for example, the government lost over $4 million, while the sponsor received over $9 million. Current law requires that the mint ensure that it will not lose any money before transferring any surcharges to the recipient organization, and limits commemorative coin programs to two per year. The Unconstitutionality of Issuing a Commemorative Coin for the Boy Scouts This should be obvious, but apparently it isn't to the overwhelming majority in our House of Representatives, who just passed H.R. 5872 by a vote of 403 to 8. (Kudos to Tammy Baldwin (D-WI), Barney Frank (D-MA), Luis Gutierrez (D-IL), Dennis Kucinich (D-OH), Barbara Lee (D-CA), Jim McDermott (D-WA), Pete Stark (D-CA), and Lynn Woolsey (D-CA) -- the eight who voted no.) While much has been written about the disputes and court cases resulting from establishment clause issues raised by government support of the Boy Scouts, the organization's actual statements and policies are usually only vaguely described or briefly quoted. To leave no doubt as to why Congress, without question, should be prohibited from passing legislation to raise money for this organization, here are some of the statements and policies from official Boy Scout publications and websites. First, there's the "Declaration of Religious Principle," found in the organization's bylaws. This declaration must be subscribed to by every member of the Boy Scouts, from the youngest scout to the adult leaders, volunteers, and employees. Declaration of Religious Principle Then there are the policies governing volunteers and employees. Youth and Adult Volunteers And, according to BSALegal.org, a website "created on behalf of the Boy Scouts of America to inform the public about the legal issues that confront Scouting," religious beliefs and activities are required for every level of advancement from Cub Scouts through Eagle Scouts.
On the FAQ page of BSALegal.org, the discriminatory policies of the Boy Scouts are defended through questions and answers like the following. "Q. What allows the Boy Scouts of America to exclude atheists and agnostics from membership? This is absolutely correct. A private organization can have whatever beliefs and religious requirements it chooses to. That's their constitutional right. But Congress can absolutely not financially aid the Boy Scouts in the promotion of their beliefs and enforcement of their religious requirements by legislating a fundraiser for them!
Congress's $3.5 million "Bake Sale" for the Boy Scouts | 0 comments (0 topical, 0 hidden)
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