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The Hobby Protection Act – United States

Saturday, August 1st, 2009

The recent rash of counterfeit coins reaching the United States from the Orient has prompted a few questions about the “Hobby Protection Act” here in the United States of America. I thought that it might be a good idea to add the text of the “Hobby Protection Act” as an article.

Here are the “RULES and REGULATIONS” as written in the Act which was originally approved in 1973 and subsequently ammended. NOTE: “Sec. 304.6 Marking requirements for imitation numismatic items”.

[Code of Federal Regulations]
[Title 16, Volume 1, Parts 0 to 999]
[Revised as of January 1, 1998]

From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR304]

TITLE 16–COMMERCIAL PRACTICES

CHAPTER I–FEDERAL TRADE COMMISSION

PART 304–RULES AND REGULATIONS UNDER THE HOBBY PROTECTION ACT–Table of Contents

Sec.
304.1 Terms defined.
304.2 General requirement.
304.3 Applicability.
304.4 Application of other law or regulation.

304.5 Marking requirements for imitation political items.
304.6 Marking requirements for imitation numismatic items.

Authority: 15 U.S.C. 2101 et seq.

Source: 40 FR 5496, Feb. 6, 1975, unless otherwise noted.

Sec. 304.1 Terms defined.

    (a) Act means the Hobby Protection Act (approved November 29, 1973;
Pub. L. 93-167, 87 Stat. 686, (15 U.S.C. 2101 et seq.)).

    (b) Commerce has the same meanings as such term has under the
Federal Trade Commission Act.

    (c) Commission means the Federal Trade Commission.

    (d) Imitation numismatic item means an item which purports to be,
but in fact is not, an original numismatic item or which is a
reproduction, copy, or counterfeit of an original numismatic item. Such
term includes an original numismatic item which has been altered or
modified in such a manner that it could reasonably purport to be an
original numismatic item other than the one which was altered or
modified. The term shall not include any re-issue or re-strike of any
original numismatic item by the United States or any foreign government.

    (e) Imitation political item means an item which purports to be, but
in fact is not, an original political item, or which is a reproduction,
copy or counterfeit of an original item.

    (f) Original numismatic item means anything which has been a part of
a coinage or issue which has been used in exchange or has been used to
commemorate a person, object, place, or event. Such term includes coins,
tokens, paper money, and commemorative medals.

    (g) Original political item means any political button, poster,
literature, sticker, or any advertisement produced for use in any
political cause.

    (h) Person means any individual, group, association, partnership, or
any other business entity.

    (i) Regulations means any or all regulations prescribed by the
Federal Trade Commission pursuant to the Act.

    (j) United States means the States, the District of Columbia, and
the Commonwealth of Puerto Rico.

    (k) Diameter of a reproduction means the length of the longest
possible straight line connecting two points on the perimeter of the
reproduction.
[40 FR 5496, Feb. 6, 1975, as amended at 53 FR 38942, Oct. 4, 1988]

Sec. 304.2 General requirement.

Imitation political or numismatic items subject to the Act shall be
marked in conformity with the requirements of the Act and the
regulations promulgated thereunder. Any violation of these regulations
shall constitute a violation of the Act and of the Federal Trade
Commission Act.

Sec. 304.3 Applicability.

Any person engaged in the manufacturing, or importation into the
United States for introduction into or distribution in commerce, of
imitation political or imitation numismatic items shall be subject to
the requirements of the Act and the regulations promulgated thereunder.

Sec. 304.4 Application of other law or regulation.

The provisions of these regulations are in addition to, and not in
substitution for or limitation of, the provisions of any other law or
regulation of the United States (including the existing statutes and
regulations prohibiting the reproduction of genuine currency) or of the
law or regulation of any State.

Sec. 304.5 Marking requirements for imitation political items.

    (a) An imitation political item which is manufactured in the United
States, or imported into the United States for introduction into or
distribution in commerce, shall be plainly and permanently marked with
the calendar year in which such item was manufactured.

    (b) The calendar year shall be marked upon the item legibly,
conspicuously and nondeceptively, and in accordance with the further
requirements of these regulations.

    (1) The calendar year shall appear in arabic numerals, shall be
based upon the Gregorian calendar and shall consist of four digits.

    (2) The calendar year shall be marked on either the obverse or the
reverse surface of the item. It shall not be marked on the edge of the
item.

    (3) An imitation political item of incusable material shall be
incused with the calendar year in sans-serif numerals. Each numeral
shall have a vertical dimension of not less than two millimeters (2.0
mm) and a minimum depth of three-tenths of one millimeter (0.3 mm) or
one-half (1/2) the thickness of the reproduction, whichever is the
lesser. The minimum total horizontal
dimension for the four numerals composing the calendar year shall be six
millimeters (6.0 mm).

    (4) An imitation political button, poster, literature, sticker, or
advertisement composed of nonincusable material shall be imprinted with
the calendar year in sans-serif numerals. Each numeral shall have a
vertical dimension of not less than two millimeters (2.0 mm). The
minimum total horizontal dimension of the four numerals composing the
calendar year shall be six millimeters (6.0 mm).

Sec. 304.6 Marking requirements for imitation numismatic items.

    (a) An imitation numismatic item which is manufactured in the United
States, or imported into the United States for introduction into or
distribution in commerce, shall be plainly and permanently marked
“COPY”.

    (b) The word “COPY” shall be marked upon the item legibly,
conspicuously, and nondeceptively, and in accordance with the further
requirements of these regulations.

    (1) The word “COPY” shall appear in capital letters, in the
English language.

    (2) The word “COPY” shall be marked on either the obverse or the
reverse surface of the item. It shall not be marked on the edge of the
item.

    (3) An imitation numismatic item of incusable material shall be
incused with the word “COPY” in sans-serif letters having a vertical
dimension of not less than two millimeters (2.0 mm) or not less than
one-sixth of the diameter of the reproduction, and a minimum depth of
three-tenths of one millimeter (0.3 mm) or to one-half (\1/2\) the
thickness of the reproduction, whichever is the lesser. The minimum
total horizontal dimension of the word “COPY” shall be six millimeters
(6.0 mm) or not less than one-half of the diameter of the reproduction.

    (4) An imitation numismatic item composed of nonincusable material
shall be imprinted with the word “COPY” in sans-serif letters having a
vertical dimension of not less than two millimeters (2.0 mm) or not less
than one-sixth of the diameter of the reproduction. The minimum total
horizontal dimension of the word “COPY” shall be six millimeters (6.0
mm) or not less than one-half of the diameter of the reproduction.

[40 FR 5496, Feb. 6, 1975, as amended at 53 FR 38942, Oct. 4, 1988]

Posted in "Roll Searchers' Newsletter", Collecting, Request for Information | Comments Off

Storing Rolls of Uncirculated Coins!

Saturday, April 18th, 2009

Rolls of Presidential Dollar Coins

The QUESTION: I purchased a few mint rolls of the New Presidential Dollars and would like to know the best way to store them, so the end coins on the rolls do not tarnish or become oxidized over the years while in storage.

The ANSWER:What may appear to be a simple and short question actually has an interesting but more complex answer than you might think.

The first thing to mention is that the paper that the coins are rolled in can actually pose a threat to your coins so it is not only those coins on the ends of each roll that might tarnish, but all the coins may, over time become toned or spotted by virtue of being in contact with the paper wrapper that surrounds the coins.

Paper must be acid and lignin free. By virtue of the manufacturing process and the types of materials used, the paper may be acidic in nature. Paper used to wrap coins is a wood pulp based paper that still contains the lignin. Lignin is the material found in a tree that naturally binds the wood together. When Lignin decomposes, it forms acidic compounds that will then destroy the cellulose in the paper. That degredation to an acidic compound then effects the paper which can and often does, damage coins.

The storage of coins can best be accomplished by placing them in plastic tubes that are made to be safe when in contact with coins. In the hobby, we call these “coin safe” tubes. These tubes are sold in different sizes to accommodate the different sizes of coins and the number of coins per roll. You would need coin tubes for “Small Sized Dollar Coins” such as the Susan B. Anthony dollars, the Sacagawea dollar coins and of course, the New Presidential Dollars.

The type of plastic used to manufacture the tubes is extremely important as some types of PVC plastics that contain plasticizers (softeners) use compounds that can leach out of the plastic and damage your coins.
Chemicals used as softeners and found in PVC (Poly Vinyl Chloride) holders can react with the metals in coins and cause a form of corrosion to take place, resulting in the creation of an ugly green substance that will be visible on the surface of the coin. It is not unusual to see, what is known as PVC damage on copper and silver coins that have been stored in plastic “flips” made of PVC. You might even see a white colored haze on some coins.

Coin Safe - Plastic Storage Tubes

Your local coin dealer can steer you toward coin tubes made of plastics that are safe for the storage of your New Presidential Dollars. I find that for convenience and safety, good quality, square shaped tubes work well. They are made of a safe plastic. The interior size is closer to the size of the coin and this creates a nice seal around the coins as there is a minimal amount of air trapped inside the tube with your coins. The fact that the seal is very tight in the square shaped tubes would mean that you would have to remove the paper from around the coins. The round shaped tubes have a little more clearance on the inside and although you might be able to do it, rolls still wrapped in the paper may get stuck inside the tube.

The next thing to mention is that the “coin safe tubes” are only the beginning. Although they are extremely important, you want to be sure that the environment the tubes are placed in is “coin friendly”.

Temperature, Humidity and Light are all important factors when protecting coins. Steady moderate to low temperatures are the best. Humidity should be as low as possible. Packets of silica gel, can be placed in the area that you store your coins. Do not place the silica gel in the tubes with the coins. Avoid light altogether and keep your coins in a safe, dark place. A small safe would be great for storage of your coins.

Whether or not you keep the coins wrapped or unwrapped is up to you. There are collectors of Uncirculated Rolls that like the coins to remain in their original wrappers. Those collectors understand that there may be some spotting or tarnishing of the coins.

There are other collectors that are more interested in the overall condition of the coins and how much luster is retained after years of storage. Those collectors are not too worried about the wrappers being there.

There are some collectors that keep the coins safely in the storage tubes after they carefully remove them from the wrappers and then keep the wrappers as well.

If you would like to keep your coins in the wrappers, I would first find appropriately sized, “coin safe tubes” to store the coins in. I would then obtain some Brilliant Uncirculated quarter dollars from the same source you obtained the Presidential dollar coins. I would then carefully place quarter dollars down inside the ends of each roll to act as an extra seal. I would then place the rolls inside the tubes and store them as described above.

I hope this helps!

Posted in Coin Care, Found in Rolls, Request for Information | Comments Off

A Question About an Un-Plated Lincoln Cent

Saturday, April 18th, 2009

I found a penny (cent) dated 1991 D that should have the copper plating on it. This one seems to have the plating missing. Did I find a valuable coin?

Part way through 1982, The United States Mint changed the composition of cents to a copper-plated zinc. The core of the coin is composed of 98.2% zinc and 0.8% copper. The core is plated with pure copper. While it is possible for a coin before it was struck (in this case the blank) to have missed the process that involves the copper plating, it does not happen too often. For the production of cents, the Mint purchases the blanks that are manufactured by outside sources. The Mint however, does supply the outside sources with the zinc and the copper used for the manufacture of the blanks. It is unusual for the blanks to arrive at the Mint without having been plated.

Many science experiments in middle schools and high schools involve the removal of copper from the copper-plated zinc composition cents. Some experiments involve the use of nitric acid on the surface of the coin. The nitric acid will remove the layer of copper from the zinc core. Because there is some copper in the zinc core, the core will also be effected with the result being a slightly rough surface appearing on the coin. The nitric acid does not effect the zinc.

Your coin also exhibits remnants of the copper on the surface and on the edges that indicate that the copper that was once on the coin had been removed.

Unplated Lincoln cent

I placed a picture of your coin next to a genuine coin that missed the plating process. You can see the rough surface on the 1991 D dated coin as opposed to the smooth undamaged surface of the 1987 D dated coin.

Since your coin has been damaged by acid, it does not have any numismatic value.

Posted in Collecting, Error Coin, Novelty Coin, Request for Information | Comments Off

The Compositions of United States Coinage

Saturday, April 18th, 2009

Here is a list of the compositions of regular issue United States Coins! This list does not take into consideration coins produced for special sets that were composed of Silver or Silver issue States Quarters. The compositions listed here would be for the coins intended to circulate in every day commerce.

1857 and earlier – Large Cents – 1.00 (100%) Copper
1856 – 1864 – Flying Eagle/Indian Head Cents – .880 Copper + .120 Nickel
1864 – 1909 Indian Head Cents – .950 Copper + .050 Tin + Zinc — (Bronze cent)
1909 – 1942 Lincoln Cents – .950 Copper + .050 Tin + Zinc
1943 Lincoln Cent – Steel coated with Zinc
1944 – 1946 Lincoln Cents – .950 Copper + .050 Zinc
1947 – 1958 Lincoln Cents – .950 Copper + .050 Tin + Zinc
1959 – 1962 Lincoln Cents – .950 Copper + .050 Tin + Zinc
1962 – 1982 Lincoln Cents – .950 Copper + .050 Zinc
1982 – present Lincoln Cents – .975 Zinc + .025 Copper (99.2% Zinc, 0.8% Copper core coated by 100% Copper)

1864 – 1873 Two-Cent Pieces – .950 Copper + .050 Tin + Zinc

1851 – 1873 Silver Three-Cents – .750 Silver + .250 Copper – (Trime)
1865 – 1889 Nickel Three-Cents – .750 Copper + .250 Nickel

1866 – 1942 Five-Cent Pieces – .750 Copper + .250 Nickel
1942 – 1945 Silver WarTime Alloy – .560 Copper + .350 Silver + .090 Manganese
1946 to Present – Five-cent Pieces – .750 Copper + .250 Nickel

1794 – 1837 Half Dimes – .8924 Silver + .1076 Copper
1837 – 1873 Half Dimes – .900 Silver + .100 Copper

1794 – 1837 Ten-Cents – .8924 Silver + .1076 Copper
1837 – 1964 Ten Cents – .900 Silver + .100 Copper
1965 to present – .9167 Copper + .0833 Nickel

1875 – 1878 Twenty Cents – .900 Silver + .100 Copper

1796 – 1807 Quarter Dollar – .8924 Silver + .1076 Copper
1815 – 1838 Quarter Dollar – .8924 Silver + .1076 Copper
1838 – 1964 Quarter Dollar – .900 Silver + .100 Copper
1965 to present – Quarter Dollar – .9167 Copper + .0833 Nickel

1796 – 1836 Half Dollars – .8924 Silver + .1076 Copper
1836 – 1964 Half Dollars – .900 Silver + .100 Copper
1965 – 1970 Half Dollars – .400 Silver + .600 Copper – ( 40% silver )
1971 to present – Half Dollars – .9167 Copper + .0833 Nickel

1794 – 1804 Dollars – .8924 Silver + .1076 Copper
1840 – 1935 Dollars – .900 Silver + .100 Copper
1971 – 1999 Dollars – .9167 Copper + .0833 Nickel

2000 to present – Dollars – .770 Copper + .120 Zinc + .070 Manganese ( Golden Dollars )

NOTE : Gold coins and bullion issues will be addressed in another article.

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Ask About Coins … Found In Rolls

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The Hobby Protection Act – United States

Storing Rolls of Uncirculated Coins!

A Question About an Un-Plated Lincoln Cent

The Compositions of United States Coinage