Treasury Secretary Paul H. O'Neill won't be exercising his statutory prerogative to unilaterally change the designs on circulating U.S. coin denominations. O'Neill believes such a decision requires extensive consultation with Congress, something he doesn't have to do under the law, as well as checking with his boss, President Bush.
O'Neill made his position known Oct. 24 during a press conference preceding his speech before a joint meeting of the Kiwanis and Rotary clubs in Bellefontaine, Ohio. O'Neill's appearance was at the behest of Rep. Mike Oxley, who is seeking re-election for a 12th two-year term from the reapportioned Fourth Congressional District.
Oxley is chairman of the House Financial Services Committee. One of the subcommittees, Domestic Monetary Policy, Technology, and Economic Growth Subcommittee, has oversight concerning the U.S. Mint and Bureau of Engraving and Printing. Oxley says he anticipates the subcommittee will hold oversight hearings on the Mint, and possibly the BEP, early in 2003.
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THE TREASURY SECRETARY said he does not have an answer to getting the Sacagawea dollar to circulate more widely than it now is used. Paul H. O'Neill answered questions from Coin World in Ohio Oct. 24.
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O'Neill's primary remarks during his speech focused on the unpredictable economy, world terrorism and the effects of the Sept. 11, 2001, terrorist attacks on American life. At the preceding press conference, O'Neill answered Coin World's inquiries concerning the Mint's initiative to redesign the nation's coinage, the failure of the Sacagawea dollar to widely circulate, counterfeiting, and Mint and BEP security.
O'Neill was asked point blank if he will take the plunge and change coin designs on his own.
Although O'Neill said he wouldn't approve changes to circulating coinage designs without conferring with Congress, he has full legal authority to so act on all of the coins currently in circulation except for one. Under provisions of the Mint Act of Sept. 26, 1890, the Treasury secretary possesses the authority to change coin designs without congressional approval after designs have been employed for at least 25 years. O'Neill, if he wishes, can change the designs for the Lincoln cent (in circulation since 1909), the Jefferson 5-cent coin (used since 1938), the Roosevelt dime (since 1946), and the Kennedy half dollar (since 1964). The Sacagawea dollar was introduced in January 2000 and the State quarter dollars were introduced in 1999 under special legislation.
Disinclined to act alone
"They tell me I can change all the currency as well with my own discretion," O'Neill says, "but I think I am not inclined to take such actions without careful consultation with the Congress. The Congress has an important role to play, I think, in making the decisions of this kind that so many people care about. I can't image that we would make a unilateral decision without consultation.
"In the same sense, while the secretary of the Treasury under the law has certain authorities, I can't imagine making a unilateral decision without talking to the president and getting his views on it as well."
O'Neill says the numismatic community is keenly interested in coinage redesign efforts.
"In the spirit of how things ought to be done in this country, it's worthwhile to pay attention to people who have a view about these things," O'Neill says. "I can't imagine my telling people we're not interested in their opinions. I don't expect to exercise my statutory authority without consulting with the appropriate people." O'Neill says he has not been approached to change coin designs on his own.
United States Mint Director Henrietta Holsman Fore has stated publicly that the Mint would like to change designs on all of the circulating coins eligible for redesign, possibly beginning as early as 2003 with the 5-cent coin. However, her proposal to use to 5-cent coin to commemorate the bicentennial of the Louisiana Purchase and Lewis and Clark expedition beginning in 2003 met with opposition from the Virginia delegation in Congress. The coin depicts Virginian Thomas Jefferson and his home in that state, Monticello, considered a prime tourist attraction by the state.
The Virginia delegation has introduced legislation in Congress seeking to mandate a depiction of Monticello on the reverse of the coin. The House of Representatives has approved the legislation, but the Senate did not before it recessed for the November elections.
O'Neill agrees the Sacagawea dollar has not circulated as well as projected, but does not have the answer currently to address those concerns.
"I think the only way to force circulation [of the Sacagawea dollar] is to maybe give them away, which doesn't seem to be a great idea to me."
Before leaving for a tour of the Lima Tank Plant, O'Neill responded generally to anti-counterfeiting and security measures concerning the Mint and BEP.
"The counterfeiting work is an endless, on-going process," O'Neill says, referring to the Next Generation of U.S. paper money that will incorporate latent inks as part of the anti-counterfeiting devices. "We have new materials in the works that I'm sure you know. Security is tight, and tighter [at the production facilities] and we continue to make sure we are protected - our people and our products as well."
Oxley says a schedule will have to be worked out with the Domestic Monetary Policy, Technology and Economic Growth Subcommittee as to when to hold oversight hearings, their focus and direction. Rep. Peter T. King, R-N.Y, currently chairs the subcommittee. The chairmanship may change next year, and who that person will be has not been forecast, Oxley said.
"First we have to win an election," Oxley said. "It's premature to say what will be on the agenda. We will have to sit down and work out plans for the committee and start in January. It's just a question of how broad the agenda is going to be when it occurs. We don't even know who the subcommittee chair is going to be. There are issues we have to work through first."
Those issues are currently under discussion by congressional committee staff, Oxley said.
