Commemorative State Quarters

Who deserves credit for the commemorative state quarters? Was there any one individual who was the first to come up with the idea? No one can really say for sure, but there are a series of public record events that we can trace backward into time, to help us to understand the underlying sentiment that brought the 50 State Quarter program to fulfillment.

Above is an example quarter from the 1992 "Canada 125" project. This particular quarter honored the province of Ontario. The "Canada 125" project proved to be both an inspiration and a working model for our State Quarter program.

In 1992, the Royal Canadian Mint commenced their "Canada 125" project. In commemoration of the 125th anniversary of Canadian confederation, 13 special coins -- one 25 cent coin for each province and territory plus a $1 coin honoring the entire nation -- were released by the Canadian government. Proud Canadians readily accepted the new circulating coinage.

The March 1993 COINage magazine featured a proposal by veteran numismatist and author Q. David Bowers for a United States program similar to that of our northern neighbor. Bowers opined "... a program such as this would foster state pride, as well as greater interest in numismatics...". The Bowers proposal specified the 50 state designs should appear on the reverse of the Kennedy half dollar.

Nothing happened for more than two years. In July, 1995, U.S. Rep. Michael Castle (R-Del) held a House subcommittee hearing in Washington D.C. on commemorative coinage abuses. As the hearing droned on, witness Harvey G. Stack caught everyone off guard by suggesting that a circulating commemorative coin program, perhaps something to pay homage to each of the fifty states.

As a member of the House, US Rep. Michael Castle of Delaware was the sparkplug who ignited the circulating State Quarters idea.

Another witness at the hearing, coin writer David L. Ganz, agreed with Stack's remark and followed up by convincing subcommittee chairman Castle to initiate legislation authorizing a series of commemorative state quarters. Philip Diehl, the Mint Director at the time, was skeptical of the notion, but after listening to Ganz' reasoning, became a believer, and put the weight of his office behind the measure.

Diehl later wrote "From my vantage point, the lion's share of the credit for making the 50 States program a reality goes to David Ganz, for his persistence as an advocate, and Congressman Michael Castle for championing the proposal through Congress." The former Mint Director went so far as to claim "...the hobby owes a debt of gratitude to Congressman Castle and Mr. Ganz."

To be sure, a number of individuals can rightfully claim a share of the credit for getting the Commemorative State Quarters program off the ground, but apparently it was Castle and Ganz who finally forced the issue onto the public stage.

In 1996, Congressman Castle submitted legislation to authorize the 50 state quarter program. Castle's legislation was later combined into H.R. 1776, a bill that dealt with a number of commemorative coinage issues. Eventually, both houses of Congress approved a commemorative coinage bill. Public Law 104-329, better known as the United States Commemorative Coin Act of 1996, became law on October 26.

Congressman Castle observed "Through the years, our nation's currency has symbolized the great leaders and historic moments of our nation. And now by passing this legislation we can prepare to pay tribute to the states and people that make our nation what it is today."

Page 1 of the Commemorative Coin Act of 1996. In addition to authorizing and providing guidelines for a feasibility study on circulating state quarters, the Act deals with a host of commemorative coinage issues.

So now the program was ready to roll, right? Wrong! This was just the first hurdle to clear. The 1996 law, as it pertained to state quarters, merely authorized a study to be conducted by the Department of the Treasury. The purpose of the study was to look at all the factors needed to make the circulating commemorative state quarters program successful. The law specified the study had to be completed by June 1, 1997. The Treasury Secretary would then be given 60 days to decide whether or not to go forward with the implementation of the program. Before a big change in pocket change was made, Treasury had to be prepared and confident to make the switch.

The government awarded the feasibility study contract to Coopers & Lybrand, for addressing certain issues specified by the Commemorative Coin Act of 1996. The language in the Act permitted Coopers & Lybrand to base their study on the following assumptions:

• The Mint would strike statehood quarters only during the life of the program. When the program ends, the Eagle reverse returns.
• No change to physical specifications of the quarter.
• Five quarters each year for ten years.
• State quarter designs go on reverse. Minimal changes only to obverse.

The Act required the study to:

• Assess likely public acceptance of and consumer demand for the different coins which many be issued under the Program, taking into account the length of the Program.
• Compare the costs of producing the Statehood coins and the revenue that the Program would generate.
• Assess the impact on coin distribution systems.
• Note other factors which the Secretary may consider appropriate in deciding upon the feasibility of the Program.
  
  

Coopers & Lybrand conducted telephone surveys with 2032 adults from March 17 to March 30, 1997. Twelve 2-hour focus groups held in six geographically diverse cities were held April 7-16. Some of the results forwarded to the Treasury Secretary bode well for the a Commemorative State Quarter program:

• 51% of respondents viewed the program favorably. 38% were indifferent.
• 11% thought the program was the wrong thing to do.
• 40% said there was a good or fair possibility they would save the quarters. A full 35% said saving the commemorative quarters was very likely or certain.
• 25% had little or no interest in saving the quarters.
• When percentages were projected to the population as a whole, it was estimated that as many as 98 million people would be interested in collecting at least one full set of coins.
• The program would earn the US government anywhere from $2.6 billion to $5.1 billion because of seigniorage. Explanation: It costs around 4.5 cents [in 1997] to produce a quarter at the Mint (material, labor, etc.). The quarter enters circulation by "selling" it to a Federal Reserve Bank for 25 cents, whereupon the FRB distributes it to the population. When quarters are set aside by the public as souvenirs, more quarters are necessarily produced at the Mint ( to fulfill the needs of commerce) and subsequently "sold" at a profit of more than 20 cents per quarter.
• The 50 State Quarters program would gain broader acceptance and publicity if individual citizens within the various states participated in developing and selecting their state quarter design.
• The concepts of celebrating state pride by displaying topics of historical, cultural, and heritage significance, and potential uses as an educational tool for teaching young people about geography and a wide range of other subjects were prevalent in the survey.
  
  

Telephone surveys and focus groups both indicated that nature, scenery, and state landmarks were most popular subjects.

The feasibility study reached the Treasury Secretary's desk on May 30, 1997. In summary, the Coopers & Lybrand study indicated that if executed properly, the Commemorative State Quarters concept had an excellent chance for success.

Treasury Secretary Robert E. Rubin authorized the program to move forward. The center of attention once again shifted back to Congress.

The primary thrust of the United States Commemorative Coin Act of 1996 was to initiate a study to test the feasibility of a circulating state quarter program, plus general guidelines around which to build the framework of the study, and to report findings back to the Treasury and Congress in a timely manner. These objectives were met as specified, all redounding in favor of proceeding forward with the state quarter plan. However, before the program could become official Treasury policy, yet another act of Congress was necessary.

Once again, it was Delaware Congressman Mike Castle who skillfully steered legislation through Congress. The 50 States Commemorative Coin Program Act, also known as Public Law 105-124, was passed by the House and Senate, and signed into law by President Clinton on December 1, 1997. The general provisions of the law:

• An acknowledgment that it is appropriate and timely to honor the 50 states, and to promote the diffusion of knowledge among the youth of the United States about the individual sates, their history and geography, and the rich diversity of the national heritage.
• Codified the redesign and issuance of designs for each state. The design to be placed on the "tails" side of Washington quarter, and to be emblematic of a state.
• Five new state quarters every year for ten years, in the order in which the states ratified the Constitution or were admitted to the Union.
• Design selection procedures.
• Manufacturing stipulations.
  
  

Coin supply distributor Whitman Publishing leapt into the commemorative 50 State Quarter fray with coin display folders.

What was a dream for so long was now a reality. Excitement reverberated throughout the coin collecting class, many of whom had clamored for new coinage for years.

Network news broadcasts to the generally uniformed population that the familiar "workhorse" quarter denomination would soon take on a strangely different look. Retailers rushed to get their distribution systems in place. Coin display manufacturers vied to see who could develop the best eye-catching holder. Surely millions of people will collect these quarters, they reasoned. One of the top selling folders, produced by Whitman Publishing, is shown at left.

One question often overlooked amongst all this buzzing: could the Mint overcome manufacturing and logistical challenges in time to strike the first State Quarter by January 1999?

Treasury Secretary Rubin provided details on the design selection process to all 50 governors on January 9, 1998. The Secretary defined the selection process as follows:

• Each governor will provide the U.S. Mint with a minimum of three and a maximum of five design concepts or themes representative of the state. The governor will decide the process for identifying these concepts.
• The Mint will review the concepts for appropriateness and coinability. No head and shoulders portrait or bust of any person, living or dead, and no living person may be included in the design. George Washington's portrait will remain on the obverse (heads) side of the quarters. The artists at the Mint will then develop actual candidate designs based on the concepts sent by the state.
• The Fine Arts Commission will be consulted on the candidate designs and the Citizens Commemorative Coin Advisory Committee (CCCAC) will provide its review.
• Candidate designs will then be sent to the Treasury Secretary for his review and approval.
• The Mint will then return the Treasury Secretary's approved designs to the governor for the state's final design selection.
• The governor will determine the state's final design selection process. Once chosen, the state will return its final design to the Treasury Department for the Treasury Secretary's approval.
  
  

To make space on the reverse side to accommodate the state design, the words "United States of America", "Quarter Dollar," "Liberty," and "In God We Trust" would have to be moved to the obverse side.

December 7, 1998 first State Quarter strike ceremony at Philadelphia Mint. Those in attendance included Mint Director Phil Diehl, US Treasurer Mary Ellen Withrow, Governor Thomas Carper and US Rep Michael Castle, both of Delaware. 5th grade students from St. Mary's Parochial school also participated. Image courtesy of United States Mint.

The five states to have their commemorative quarters issued in 1999 were, in this order, Delaware, Pennsylvania, New Jersey, Georgia, and Connecticut. The first state to ratify the U.S. Constitution, Delaware, had the least amount of time to prepare their state design, but negotiated the process in ample time. Their state design takes us back to July 1776, featuring an image of Caesar Rodney rushing on horseback to reach the Continental Congress in Philadelphia, arriving just in time to cast the deciding vote declaring American independence from Britain.

On December 7, 1998, a ceremony was held at the Philadelphia Mint for the symbolic strike of the first Commemorative State Quarter. Dignitaries from the Treasury Department and the Mint attended, joined by Delaware state officials, Congressman Castle, and others who worked so diligently to make this day come to fruition. Millions of the Delaware quarters were released into circulation on January 4, 1999.

The very first State Quarter shows Caesar Rodney of Delaware rushing to sign the Declaration of Independence in Philadelphia. United States Mint image.

Despite the fanfare, a sizeable portion of the citizenry didn't expect to see a new quarter showing up in pocket change. Questions such as "What's this weird quarter?", and "Who's this guy riding the horse?" dominated conversations around the cash register in early 1999. The general public was interested in the change, and actively sought more information.

Numismatic publishers reported a surge of phone calls, e-mails and letters shortly after the first State Quarter release, many of them from non-collectors anxious to learn about the coins. General circulation periodicals, television spots, and other media outlets ran stories.

One weekly hobby magazine, Coin World, debated how to cover the new 50 State Quarter program. They thought a column appearing once a month would satiate the thirst of State Quarter collectors, but they underestimated the level of interest.

They were surprised when huge volumes of correspondence flooded their "IN" box with all sorts of questions and comments about the coins; general information requests, display holder options, scheduled release dates, design contests, and more.

Because so much of the public wanted news on the State Quarters, the Coin World editors decided a regular weekly column was justified. The weekly column continues to run to this day, a clear indicator that the State Quarter initiative still has a strong fan base.

The Commemorative State Quarter program reached its halfway mark with the release of the Arkansas coin on October 20, 2003. A ceremony was held at the US Philadelphia Mint to celebrate the most popular commemorative coin program ever produced in the United States. Mint Director Henrietta H. Fore welcomed a number of distinguished guests, including Delaware representative Michael Castle. Director Fore commented "Congressman Castle was the catalyst, authoring the legislation that launched this remarkable program, the most popular in United States Mint history".

Hundreds of millions of state quarters have been removed from circulation by collectors. For each of these quarters, the government benefits more than 20 cents. United States Mint image.

Popular indeed! The Mint estimated that about 130 million Americans are collecting the 50 State Quarter coins, to some degree. This shouldn't come as a major revelation, because we all know someone who's setting aside some of these quarters, don't we?

From a pure financial perspective, the State Quarter program is helping out with the nation's bottom line. Thanks to seigniorage and numismatic sales, the State Quarters delivered more than $4 billion in earnings to the government after its first five years of production. The $4 billion was for all quarters. No estimate was given as to how much of this was due to increased demand from State Quarter collectors.

The "Lessons Learned" category of the first five years yielded a new design evaluation process, announced by the Mint on March 11, 2003. The revisions were made to enhance the program's educational value and promote the historical accuracy and artistic beauty of the designs.

Stage 1: The United States Mint will initiate the formal state design process by contacting the state governor approximately 24 months prior to the beginning of the year in which the state will be honored. The governor, or such other state officials or group as the state may designate, will appoint an individual to serve as the state's liaison to the United States Mint for this program.

Stage 2: The state will conduct a concept selection process as determined by the state. The state will provide to the United States Mint at least three, but no more than five, different concepts or themes emblematic of the state; each concept or theme will be in narrative format. The narrative must explain why the concept is emblematic of the state and what the concept represents to the state's citizens. A narrative that merely describes a particular design is not acceptable. 

Stage 3: Based on the narratives, the United States Mint will produce original artwork of the concepts, focusing on aesthetic beauty, historical accuracy, appropriateness and coinability. If the state has not provided at least three concepts, the United States Mint may produce additional concepts for the state.

Stage 4:  The United States Mint will contact the state to collaborate on the artwork. The state will appoint an historian, or other responsible officials or experts, to participate in this collaboration to ensure historical accuracy and proper state representation of the artwork. The United States Mint will refine the artwork before forwarding it to the advisory bodies.

Stage 5: The Citizens Coinage Advisory Committee and the U.S. Commission of Fine Arts will review the candidate designs and make recommendations, and the United States Mint may make changes to address such recommendations.

Stage 6: The United States Mint will present the candidate designs to the Secretary of the Treasury for review and approval.

Stage 7: The United States Mint will return to the state all candidate designs approved by the Secretary of the Treasury.

Stage 8: From among the designs approved by the Secretary, the state will recommend the final design through a process determined by the state, within a time frame specified by the United States Mint.

Stage 9: The United States Mint will present the state's recommended design to the Secretary for final approval.

If there were a report grading the progress of the Commemorative State Quarters at mid-term, we estimate the program would have deserved somewhere between a B+ and A-, which is very good, especially when one considers everything that could have misfired.

The District of Columbia quarter reverse features native son Duke Ellington, the internationally renowned composer and musician, seated at a grand piano with the inscriptions, DISTRICT OF COLUMBIA, DUKE ELLINGTON and JUSTICE FOR ALL, the District's motto. US Mint image.

The final issue of the 10 year program, as originally prescribed by law, was the Hawaii State Quarter, released in November 2008.

However, additional legislation was enacted to similarly honor in 2009 the District of Columbia and the five U.S. territories: the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

The 2009 State Quarter program extension again shows President George Washington on the obverse. The reverse commemorates the history, geography or traditions of the District of Columbia and each territory, in a manner of the State Quarters.

In 2010, a new quarter program launches.  The Mint will issue coins featuring national parks and other national sites. Approximately every 10 weeks, a new design emblematic of a national site is to be depicted on the reverse of the quarter. The sites chosen for depiction will come from each of 50 states, plus the District of Columbia and five U.S. territories. In all, 56 reverses are to be featured. As with the State Quarters, the familiar image of George Washington remains on the front.