Notes and Rare Coins Banned in U.S.

Rare coins banned in the U.S. include those that were never officially released or recalled from circulation. Notable examples are the 1933 Double Eagle, which was never legally issued and most were melted down, and the 1964 Peace Dollar, all of which were recalled and destroyed before circulation. These coins are highly prized by collectors due to their rarity and the unique legal histories that surround them. Continue reading to learn more about the notes and rare coins banned in U.S.

Hawaii Overprint Notes

While not coins, these notes were issued during World War II for use in Hawaii and North Africa, respectively. They were designed to be easily identified and demonetized in case of enemy capture. Although they are not banned, they are a part of the numismatic history of currency specifically marked for potential demonetization.

During World War II, American money saw a few changes, most notably how pennies were struck out of steel in 1943. After the attack on Pearl Harbor however, the United States decided to take measures to protect the money on the Hawaiian Islands. On August 15th, 1942 the US Government declared that only Emergency Silver Certificates would be circulated in Hawaii. These Silver Certificates have "Hawaii" running vertically on both the right and left ends of the face side, with large letters outlined across the back.

Silver Certificates typically had a blue seal at the time, so the brown seal on the Hawaii issues as well as the HAWAII overprint made sure that the notes on the Hawaiian Islands could be instantly recognized and devalued in the event of enemy occupation or if they captured large quantities of cash. This note is an incredibly unique piece of World War II history that collectors love! These notes get harder to find as the decades go by, so don't miss your chance to add this 1935-A $1 Hawaii Silver Certificate to your collection.

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1933 Double Eagle

One of the most famous banned coins, the 1933 Double Eagle was never officially released into circulation. Most were melted down after the U.S. abandoned the gold standard. However, a few escaped and were later deemed illegal to own. A legal battle in the early 2000s led to the sale of one coin, making it one of the most expensive coins ever sold.

In 1933, to address the banking crisis of the 1930s, U.S. President Franklin D. Roosevelt issued Executive Order 6102. This order mandated:

Section 2: By May 1, 1933, all individuals were required to surrender gold coin, gold bullion, and gold certificates to a Federal Reserve bank, branch, or member bank, except for the following:

(a) Gold needed for legitimate and customary industrial, professional, or artistic use, including gold before refining and stockpiles for regular trade requirements.

(b) Up to $100 worth of gold coin and gold certificates per person, and gold coins with recognized collector value.

(c) Gold coin and bullion held in trust for foreign governments, central banks, or the Bank for International Settlements.

(d) Gold coin and bullion licensed for specific transactions, including import for re-export or pending export license applications.

In addition, the Gold Reserve Act of 1934 was passed, which prohibited the circulation and private possession of U.S. gold coins, with exceptions for collector coins. This act declared gold coins no longer legal tender, requiring individuals to exchange them for other forms of currency. Most of the 1933 gold double eagles, minted after this executive order, were melted down or destroyed, as they were no longer legal tender. However, two of these $20 double eagles were presented to the U.S. National Numismatic Collection, with one currently displayed at the National Museum of American History in "The Value of Money" exhibit.

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1964 Peace Dollar

Minted but never released, the 1964 Peace Dollar was recalled and melted down before it could be circulated. None are known to exist legally, and it is illegal to own one.

On August 3, 1964, Congress passed legislation to mint 45,000,000 silver dollars due to a shortage caused by hoarding, as the rising price of silver made these coins more valuable as bullion than as currency. The new coins were intended for use in Nevada casinos and other Western areas where "hard money" was popular. Critics in the numismatic community argued that these new silver dollars would only serve a small niche and would not address the broader coin shortage.

Much of the push for this coinage came from Senate Majority Leader Mike Mansfield (Democrat–Montana), who represented a state where silver dollars were widely used. The Mint Bureau, though reluctant, began preparations. While some dies from the 1937 designs survived, they were in poor condition, so Mint Assistant Engraver Frank Gasparro was tasked with creating new ones. The Mint had considered using the Morgan Dollar design but ultimately decided to replicate the Peace Dollar dies. The reverse dies were marked with Denver mintmarks since the coins were intended for circulation in the West.

Treasury Secretary C. Douglas Dillon opposed the Peace Dollar restrike, predicting that the coins would be hoarded rather than circulated. However, under pressure from Senator Mansfield, Dillon agreed to proceed with the minting. Dillon resigned on April 1, and his successor, Henry H. Fowler, assured Mansfield that the issue would be resolved to his satisfaction. Mint Director Eva Adams also opposed the strike but hoped to retain the $600,000 allocated for it. Despite opposition and the desire to cancel or delay, Mansfield's insistence led to the Denver Mint beginning trial strikes of the 1964-D Peace dollar on May 12, 1965. The Mint had received authorization to continue minting 1964-dated coins into 1965.

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Gold Coins Post-1933

Following the Gold Reserve Act of 1934, private ownership of most gold coins was prohibited in the U.S. until 1974. Coins minted after 1933 were recalled and melted down.

In the early 1930s, the United States was grappling with the Great Depression, and the financial system was in turmoil. As part of a sweeping set of reforms to stabilize the economy and prevent further economic collapse, President Franklin D. Roosevelt took drastic measures to curb the hoarding of gold, which was exacerbating the financial crisis.

In 1933, Roosevelt issued Executive Order 6102, which required all citizens to surrender their gold coins, gold bullion, and gold certificates to the Federal Reserve. The only exceptions were for small amounts of gold needed for industrial, artistic, or legitimate business purposes, and for certain gold coins with recognized collector value. The Gold Reserve Act of 1934 reinforced these restrictions by outlawing the private ownership of gold coins, making them no longer legal tender.

For many Americans, this order was a shock. Gold coins, once symbols of wealth and financial stability, suddenly became contraband. The U.S. government rapidly recalled and melted down most gold coins to prevent their use or hoarding. The decision aimed to stabilize the economy by controlling the gold supply and boosting confidence in the U.S. dollar.

Trade Dollar

Minted from 1873 to 1885 for trade in Asia, Trade Dollars were initially legal tender but were later demonetized in the U.S. in 1876 due to their extensive counterfeiting and abuse.

In the late 19th century, the United States was expanding its influence across the Pacific, and American merchants were increasingly active in Asia. To facilitate trade and bolster American economic interests in the region, Congress authorized the production of the Trade Dollar in 1873.

The Trade Dollar was designed to be a powerful tool in international commerce, especially in China, where silver was widely used and valued. It was a large, silver coin with a weight and silver content designed to be competitive with the existing trade coins used in the Asian markets.

The coin's design was crafted by William Barber, the Chief Engraver of the U.S. Mint. The obverse featured a seated Liberty holding a branch of olive and a shield, symbolizing peace and strength, while the reverse displayed an eagle perched on a rock, surrounded by a wreath of laurel. The coin’s denomination was prominently displayed, and its design was meant to convey both American stability and financial power.

The Trade Dollar was minted from 1873 to 1885, and initially, it was well-received in Asia. American traders and merchants found it useful for conducting business, and the coin's weight and silver content made it attractive in the region’s markets. However, the coin’s popularity was short-lived. By the late 1870s, the U.S. Mint started receiving complaints from merchants in the U.S. that the Trade Dollar was being returned from China, often worn down or clipped, and causing losses.

To address the issue, Congress passed legislation in 1876 to demonetize the Trade Dollar for use within the U.S. However, it continued to be used in Asia until it was officially withdrawn from circulation in 1885. Despite its limited use domestically and its eventual demonetization, the Trade Dollar had left a significant mark on American numismatic history.

Today, the Trade Dollar is a fascinating relic of American economic expansion and international trade. Its story reflects both the ambition of the United States during its period of rapid growth and the complexities of global commerce. Collectors prize the Trade Dollar not only for its historical significance but also for its striking design and the tale of its brief but impactful role in international trade.

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