Illegal Tender: Gold, Greed, and the Mystery of the Lost 1933 Double Eagle

Overview

It is one of America's treasures — the most valuable ounce of gold in the world, the celebrated, the fabled, the infamous 1933 double eagle. It shouldn't even exist but it does, and its astonishing, true adventures read like "a composite of The Lord of the Rings and The Maltese Falcon" (The New York Times). Illegal to own and coveted all the more, it has been sought with passion by men of wealth and with steely persistence by the United States government for more than a half ...

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Illegal Tender: Gold, Greed, and the Mystery of the Lost 1933 Double Eagle

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Overview

It is one of America's treasures — the most valuable ounce of gold in the world, the celebrated, the fabled, the infamous 1933 double eagle. It shouldn't even exist but it does, and its astonishing, true adventures read like "a composite of The Lord of the Rings and The Maltese Falcon" (The New York Times). Illegal to own and coveted all the more, it has been sought with passion by men of wealth and with steely persistence by the United States government for more than a half century.
In 1905, at the height of the exuberant Gilded Age, President Theodore Roosevelt commissioned America's greatest sculptor, Augustus Saint- Gaudens — as he battled in vain for his life — to create what became America's most beautiful coin. In 1933 the hopes of America dimmed in the darkness of the Great Depression, and gold — the nation's lifeblood — hemorrhaged from the financial system. As the economy teetered on the brink of total collapse, Franklin Delano Roosevelt, in his first act as president, assumed wartime powers while the nation was at peace and in a "swift, staccato action" unprecedented in United States history recalled all gold and banned its private ownership.
But the United States Mint continued, quite legally, to strike nearly a half million 1933 double eagles that were never issued and were deemed illegal to own. In 1937, along with countless millions of other gold coins, they were melted down into faceless gold bars and sent to Fort Knox. The government thought they had destroyed them all — but they were wrong.
A few escaped, purloined in a crime — an inside job — that wasn't discovered until 1944. Then, the fugitive 1933 double eagles became the focus of a relentless Secret Service investigation spearheaded by the man who had put away Al Capone. All the coins that could be found were seized and destroyed. But one was beyond their reach, in a king's collection in Egypt, where it survived a world war, a revolution, and a coup, only to be lost again.
In 1996, more than forty years later, in a dramatic sting operation set up by a Secret Service informant at the Waldorf-Astoria, an English and an American coin dealer were arrested with a 1933 double eagle which, after years of litigation, was sold in July 2002 to an anonymous buyer for more than $7.5 million in a record-shattering auction. But was it the only one? The lost one?
Illegal Tender, revealing information available for the first time, tells a riveting tale of American history, liberally spiced with greed, intrigue, deception, and controversy as it follows the once secret odyssey of this fabulous golden object through the decades. With its cast of kings, presidents, government agents, shadowy dealers, and crooks, Illegal Tender will keep readers guessing about this incomparable disk of gold — the coin that shouldn't be and almost wasn't — until the very end.

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Editorial Reviews

From the Publisher
Ben Mezrich, author of the New York Times bestseller Bringing Down the House Illegal Tender is an excellent read — the first book I've ever read where the protagonist is a coin, the 1933 double eagle. It's a first-rate adventure story, and I was instantly hooked. Anyone who as a kid dug for treasure in his backyard will love this book. It made me want to get my metal detector out of the closet and go on a quest of my own.

Linda Fairstein, author of the New York Times bestseller The Kills A solid-gold spellbinder. David Tripp's Illegal Tender has all the elements of a classic thriller — foreign intrigue with Egyptian royalty and American presidents, a government sting, a rare object with a multimillion-dollar price tag — and most amazing of all, the story he so deftly weaves together is all true.

Neal Bascomb, author of The Perfect Mile and Higher Dazzling history....Tripp compellingly unravels the mystery behind the rarest of rare coins. Entertaining and illuminating!

Simon Winchester author of Krakatoa and The Professor and the Madman I was dazzled and mesmerized by this wonderful, exciting story. The oddballs and villains who populate the world of numismatics — King Farouk most notably among them—are matched only for interest by the thin-lipped zealots who, for decades, have tried to track down the missing gold coins that lie at the heart of this extraordinary tale. David Tripp has added vaults-full of absorbing details, and in living color, to the ancient notion that the love of money — or coin — is the root of all evil.

Ben Mezrich
"Illegal Tender is an excellent read — the first book I've ever read where the protagonist is a coin, the 1933 double eagle. It's a first-rate adventure story, and I was instantly hooked. Anyone who as a kid dug for treasure in his backyard will love this book. It made me want to get my metal detector out of the closet and go on a quest of my own."
Linda Fairstein
"A solid-gold spellbinder. David Tripp's Illegal Tender has all the elements of a classic thriller — foreign intrigue with Egyptian royalty and American presidents, a government sting, a rare object with a multimillion-dollar price tag — and most amazing of all, the story he so deftly weaves together is all true."
Neal Bascomb
"Dazzling history....Tripp compellingly unravels the mystery behind the rarest of rare coins. Entertaining and illuminating!"
Simon Winchester author of Krakatoa and The Professor and the Madman
"I was dazzled and mesmerized by this wonderful, exciting story. The oddballs and villains who populate the world of numismatics — King Farouk most notably among them—are matched only for interest by the thin-lipped zealots who, for decades, have tried to track down the missing gold coins that lie at the heart of this extraordinary tale. David Tripp has added vaults-full of absorbing details, and in living color, to the ancient notion that the love of money — or coin — is the root of all evil."
The New York Times
“The definitive history”
Entertainment Weekly
“Meticulous research adds a stamp of authenticity to what unspools like a Hollywood Blockbuster.”
ANS Magazine
“More like an Agatha Christie mystery than a history book…
an enthralling, convincing and, best of all, page turning account”
Numismatist
“The book delivers. It reads like a historical thriller… Informative and provocative.”
Publishers Weekly
In July 2002, a very rare U.S. gold Double Eagle coin sold for a record $7,590,020 at Sotheby's, making it by far the most valuable coin in the world. First-time author Tripp, former head of Sotheby's coin department, traces the peripatetic career of this Double Eagle, minted in 1933. FDR took the U.S. off the gold standard soon after a million $20 Double Eagles were minted. Never circulated, the coins were melted into gold bricks -save for two sent to the Smithsonian. Or such was the belief. In fact, mint workers purloined several Double Eagles, which were eventually seized by the Secret Service-all except one. Over the next 60 years, it was illicitly traded by various shady coin merchants and finally retrieved in 1996 during a much publicized sting at New York's Waldorf-Astoria Hotel. The coin later spent time in a vault at the World Trade Center, but was removed just a month before the September 11 attacks. Several courtroom skirmishes later, the federal government finally allowed the gold coin to be auctioned at Sotheby's. Tripp's entertaining narrative is made more so by the many dramatic, sometimes nefarious characters of the coin trade, whom he paints in all their seediness. But covetous human nature-which always makes for an interesting read-stands center stage. B&w photos. Agent, Scott Waxman. (Sept. 9) Copyright 2004 Reed Business Information.
Library Journal
A 1933 $20 double-eagle gold coin was auctioned in 2002 for $7.5 million, the largest sum ever for a U.S. coin. Like all other 1933 double eagles, it was produced by the U.S. Mint as President Franklin Roosevelt responded to a national banking crisis by declaring that private ownership of gold was illegal. These coins were never legally issued, but a number of them slipped into collectors' hands. In time, all but one were tracked down by the Secret Service, confiscated, and melted. That one, spared because its owner had been abroad and it was at times unaccounted for, was returned to the United States in a Secret Service sting and embroiled in contentious legal proceedings before its record-setting auction. Tripp, the former head of Sotheby's coin department, provides an exhaustively researched narrative that focuses primarily on the quest to reclaim all extant 1933 double eagles but also includes informative sections about the design and creation of this style of double eagle. This engaging record of an important numismatic saga has the suspense of a whodunit. Recommended for public and academic libraries. David Van de Streek, Pennsylvania State Univ. Libs., York Copyright 2004 Reed Business Information.
Kirkus Reviews
The former head of Sotheby's coin department tracks one of the most coveted American coins from its Depression-era minting to a spectacular auction in July 2002, when one example sold for more than $7.5 million. Debut author Tripp rightly begins his story of the 1933 Double Eagle, a $20 gold piece, with its designer, celebrated sculptor Augustus Saint-Gaudens. Commissioned (if not outright bullied) by Theodore Roosevelt in 1905 to restore mythic grandeur to US coinage, Saint-Gaudens created the beautiful Double Eagle. But as the incoming Roosevelt administration faced economic catastrophe in 1933-gold was fleeing the country, and banks were toppling like tenpins-his quick-thinking Treasury Secretary convinced FDR to take the country off the gold standard, recall all gold tender, and make ownership of it illegal. But wait: somebody forgot to tell the US Mint in Philadelphia, which stamped out thousands of brand-new 1933 $20 Double Eagles before finally getting the word just as the coins were about to be issued. Except for two placed on display at the Smithsonian, all Double Eagles were remelted into gold bars-supposedly. But in 1944, agents for Egypt's King Farouk applied for-and, astonishingly, obtained-an export license for a '33 Double Eagle, destined for the king's prodigious coin collection. Hearing that Farouk paid more than $1,500 for his, coin dealers scattered across the US began running ads soliciting Double Eagles. A newspaper editor finally buzzed the Secret Service (first responders in counterfeit cases) and reminded them that the coin was not supposed to exist. For Agent Strang of the Secret Service, the game was afoot, and Tripp's account of the tortuous recapture of allknown "escaped" coins makes for exciting reading. A true-life thriller-and, yes, there just might be more Double Eagles out there. Agent: Scott Waxman/Scott Waxman Agency
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Product Details

  • ISBN-13: 9780743245746
  • Publisher: Atria Books
  • Publication date: 9/9/2004
  • Pages: 384
  • Product dimensions: 6.38 (w) x 9.22 (h) x 1.11 (d)

Meet the Author

David Tripp is a numismatic and fine art consultant, writer, and cartoonist. He has degrees in classical archaeology, was an actor, photographer, and formerly the director of Sotheby's coin, tapestry, and musical instrument departments. He is married and lives in Columbia County, New York.

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Read an Excerpt


Prologue

Wednesday, March 22, 1944.

1500 Pennsylvania Avenue, Washington, D.C.

Dr. F. Leland Howard had been stumped; now he was unhappy.

A narrow-eyed career bureaucrat with a reputation for playing it strictly by the book, Howard was Assistant Director of the United States Bureau of the Mint. The gray early-spring day was warming with the threat of rain as Howard sat in his spartan office on the second floor of the Treasury Building across the street from the White House. He carefully read a long memo from the Philadelphia Mint. In it was the answer to a question he had posed four days earlier, and it was not the answer he wanted.

On that Saturday, Howard had been at work, filling in, according to government protocol, for Nellie Tayloe Ross, the director, who was away. The standard work week was still five and a half or six days. As Acting Director, the most senior Mint employee present, he was checking into a seemingly minor inquiry from a New York journalist, who had asked how many twenty-dollar gold pieces, made in 1933, had been issued. The writer was curious, because an example was appearing at auction in the coming week. The description in the catalogue stated that only eight or ten existed. Could the Mint help verify the accuracy of this claim?

Similar requests for information were received from time to time, and for the most part they were easily answered by consulting the Mint's Annual Report. Checking the 1933 report, Howard learned that almost half a million twenty-dollar gold pieces had been struck. But in 1933, the same year -- and month -- that the coins had first been made, the government had begun the recall of privately owned gold -- primarily coins and gold-backed currency. That historic event muddied the waters seriously.

Unsure of the answer, Howard had dictated a telegram to the superintendent of the United States Mint at Philadelphia: "Does your record show that double eagles minted in 1933 were ever paid out. Your institution only one to manufacture double eagles 1933. Reported sale of same in New York scheduled for next week. Please get information by Tuesday if possible."

The first response had come by telephone directly to Mrs. Ross on Tuesday evening, followed up the next day by the extremely detailed memo Howard was now reading. The answer was unequivocal. According to the Mint's own records, no 1933 twenty-dollar gold pieces -- double eagles -- had ever been released to the public. If there was one in New York offered for sale, it was either a fake or it belonged to the United States Government.

Either way, it was a case for the United States Secret Service.

Thursday, February 8, 1996. Park Avenue, New York City.

A soaring forty-two-story, Art Deco palace on Park Avenue, the Waldorf-Astoria is renowned for having hosted kings, presidents, movie stars, men of wealth, and men of passion. If the Waldorf-Astoria was good enough for heads of state, it was good enough for the United States Secret Service. A suite on the twenty-second floor was wired and ready for a sting, which had been set up by a retired truck driver turned small-time coin dealer -- Confidential Informant 324-15.

The informant had called in the Feds for not entirely altruistic reasons. He was planning to bank some reward money at the very least. CI 324-15 had baited the trap by offering one and a half million dollars to his mark, Jay Parrino, an American coin dealer, for a twenty-dollar gold piece, a 1933 double eagle -- an elusive, mythic treasure that was illegal to own and so coveted all the more. Parrino himself didn't own the coin but was acting as middleman. The owner of the coin was an English coin dealer, Stephen Fenton. Fenton came with the golden object of the sting in his pocket accompanied by his cousin. It was not yet 9 A.M., clear and not too cold for February.

Everyone involved was anxious, some more than others. The suite was wired, and a tape recorder was running in the room next door.

At first just the three coin dealers and an innocent were assembled in the suite: the informant who had set up the sting; his mark, Jay Parrino, who had negotiated the deal; the owner of the coin, Stephen Fenton; and Fenton's bystander cousin. They were joined minutes later by two undercover United States Secret Service agents. One posed as a coin expert, the other as the informant's millionaire client -- the buyer.

The scene was not quite high drama. It was awkward and poorly paced. The informant was verbose, asking leading questions and occasionally answering them himself. Parrino was agreeable, at first offering nothing but succinct replies. Soon, led on, he opened up with nervous bursts of telling information. Fenton exercising English reserve, was polite and said little -- but what he said betrayed him too. The undercover men said next to nothing. Within minutes, the deal was agreed.

The next thing Jay Parrino and Stephen Fenton knew, they had been arrested and were making sworn statements to the authorities. It was barely noon.

Just over an ounce in weight and just under an inch and a half in diameter, this double eagle had been made a lifetime ago, sixty-three years before -- legally. But the United States Government contended that it was stolen property -- stolen from the United States itself -- and it had laid claim. It was not the first 1933 double eagle the government had seized. Nor, if another ever surfaced, would it be the last.

Tuesday, July 30, 2002.

Sotheby's, 1334 York Avenue, New York City.

The art auction season had been over for a month. The two behemoths, Sotheby's and Christie's, were still staggering from accusations of collusion, which had cost them a combined half-billion dollars in legal settlements and the purity of their brand names. 2002 had been a tough year.

The mid-afternoon sun was fierce, the air sultry and close. A few stray green-gray clouds failed to organize themselves into a thunderstorm to relieve the city of a week-long heat wave. Sotheby's headquarters, a ten-story cracker box of steel covered in a planned misalignment of glass panels, stood largely empty except for the lobby and seventh floor, where a cumulus of the curious was assembling for the unprecedented exhibition and auction of a single coin -- the 1933 double eagle, the coin seized from Stephen Fenton by the Secret Service. It had been decreed by the government the only legal one of its kind, an amazing rarity, a relic of the nation's past glories, challenges, and victories. Now the sole legitimate survivor of the near half-million that had been struck, it could at long last be displayed and admired in the light of day, without fear of confiscation by the long arm of the Secret Service. Government agents now acted as guardians, not predators.

The visitors were for the most part new to Sotheby's. They had made the pilgrimage for one reason only -- to see history made. A growing host of reporters armed with stenopads, tape recorders, and video cameras diligently patrolled and interviewed the same few people.

Within the massing crowd was a handful of real bidders. Only twelve had registered and been approved by Sotheby's. Each, for his own reasons, hoped to come away with the glittering prize. Each was alone with his thoughts, calculating his odds. Some would bid from the saleroom floor. Others would relay their bids by telephone, either from a private box at Sotheby's or from the comfort of their home or office. Some had presale jitters, others were cool professionals, others still had never bid at auction before and were about to dive in at the deep end of the pool, willing -- hoping -- to spend millions of dollars.

The object of their desire was neatly settled within a recess made from a series of movable blue walls surmounted by two nineteenthcentury American flags at either end. A single freestanding display case with sliding doors and double locks, flanked by nattily uniformed, wellarmed officers of the United States Mint Police, was drenched in the luminosity of carefully aimed spotlights. Within the vitrine, perched on a carefully styled cascade of black velvet, was an oblong piece of plastic that encased a disk of gold -- shimmering, glowing, waiting.

The 1933 double eagle is the most highly coveted, famous -- or infamous -- coin in the world. Likened to the Mona Lisa and the Holy Grail, beautiful and unattainable, it has been on the United States Secret Service's Most Wanted list for sixty years. Although it was legally made, it shouldn't exist. Its very survival is due to an unlikely convergence of luck, timing, and greed.

In 1933, in the most mournful days of the Depression, twenty dollars could support a married couple living in expensive New York City for a week or employ a farmhand lucky enough to find work for a month. Nearly half a million 1933 double eagles had come ringing off the presses at almost exactly the moment that President Franklin Roosevelt, in an effort to lift a crippled economy back to its feet, banned private ownership of gold. Millions upon millions of gold coins that had been circulating for decades were recalled.

Four years later, according to the records of the United States Government, all the 1933 double eagles were consigned to the fires of the Mint's crucibles and rendered into faceless gold bars destined for storage in the newly sanctified repository of Fort Knox. None was ever released to the public, according to these documents. But, as if by magic, within days of their supposed destruction, a few examples escaped and found their way into the hands of wealthy collectors. But how? From whom? In spite of common talk about the coins' existence in the coin world, the government was none the wiser until fully seven years later.

And so began an odyssey, a crime story, a tale of political will and international intrigue, which weaves through nearly three-quarters of a century of America's history. At times the coins have touched upon great events as well as small.

The auction that was held on that sweltering New York evening before a boisterous crowd of well over five hundred was just one chapter, and the most public, of an extraordinary saga that has been veiled in secrecy, mystery, and misunderstanding. Few who have dallied with this forbidden coin have come away richer for the experience. But rumors persist of other sister coins, cloistered in shadowy collections, and they testify that a mortal once bedazzled by its immutable rays finds it hard to turn away -- whatever the consequences.

For the same enigmatic reasons that men have sought the coin, legally and illegally, for three quarters of a century I was compelled to devote more than two years of my life to investigating, unraveling, and narrating the epic of this golden disk's astonishing and, at times, unlikely tale of survival against the odds. Only one person can legally own the 1933 double eagle, but its story belongs to us all.

Forbidden, it lures, captures with its history, and captivates with its beauty. Its creation was the union of a visionary's dream with a dying artist's last supernova brilliance.

It is in 1904, just after Christmas, that the story begins.

Copyright © 2004 by David Enders Tripp

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Table of Contents


CONTENTS

Prologue

Part I: Life and Death

Chapter 1

The Artist, the President, and the S.O.A.B.

Chapter 2

Swift and Staccato Action: The Great Depression

Chapter 3

Gold Rush in Reverse

Chapter 4

Just a Factory: Making Money

Chapter 5

The Great Melt and the Great Escape

Part II: On the Law

Chapter 6

A Double Eagle Flies to Cairo

Chapter 7

A Routine Inquiry

Chapter 8

Assistance, Resistance, and Stalemate

Chapter 9

The Crooked Cashier

Chapter 10

Working the List

Chapter 11

Wondering about Woodin

Chapter 12

The Red-Headed Philadelphia Sucker and the Deacon

Chapter 13

Grounds for Recovery

Chapter 14

A Clumsy Liar

Chapter 15

Seizures, Suits, and Surrender

Chapter 16

A Modern Day Aladdin's Cave: The Coin Escapes Again

Part III: Legitimacy

Chapter 17

A Double Eagle Reappears

Chapter 18

The Homecoming Deal

Chapter 19

Put 'Em Up

Chapter 20

In Rem

Chapter 21

Auction and Absolute Anonymity

Epilogue

The 1933 Yeti

Author's Note

Abbreviations

Notes

Selected Bibliography

Acknowledgments

Index

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Sort by: Showing all of 2 Customer Reviews
  • Anonymous

    Posted August 2, 2008

    Deep Sinister Story About A Rare Coin & People Involved

    Extremely good read, keeps you informed in a techincal way, yet has you wondering who, what, where, when & how all through the book. Interesting profiles about the investigation, the players and the deep secrets of the coin. Very well researched and authored. While specifically people interested in the numismatic field will thrive on a volume like this, the general public will find it fascinating! Hopefully the next edition might have some color plates of the rare 1933 Double Eagle coin, the B/W while nice, don't do the rarity justice. Since the book came out, I believe 9 more have surfaced from one of the main persons involved estate. I highly recommend this book!

    2 out of 2 people found this review helpful.

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  • Anonymous

    Posted August 8, 2011

    No text was provided for this review.

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