Did you hear about the Aggie who was caught counterfeiting currency? He was caught erasing the zeroes off of $20 bills!
Counterfeit money is coin or currency that is produced outside the province of the government to resemble some official form of money closely enough that it may be confused for genuine money. Producing or using counterfeit money is a form of fraud. We read about store clerks who are handed counterfeit bills, even in Brownwood! These are federal offenses, and for some reason, the defense of our printed and coined money falls under the jurisdiction of the Secret Service.
For the coin or currency collector, there are two categories of counterfeits. The more egregious these days are those who manufacture to defraud for the purposes of ill-gotten gain. This would be someone who uses a fancy printer and computer to make up some of his own cash. Another example of this is the Chinese. Reporters have been to factories in China where they manufacture many rare date coins for the express purpose of ripping people off. If I knew that a brand-spanking-new looking 1916 D Mercury dime is worth $15,000, why I would spend $20 on 5 or 6 of them from China? Dealers are careful not to sell these, but folks who work flea markets and garage sales, or plain old crooks, are not.
Of course, greed plays a part in this, too. Who wouldn’t be tempted for buy a $1,000 coin when offered for $300? Never forget this: If something sounds too good to be true, it probably is.
The Hobby Protection Act of 1973 requires replica coins to be stamped with “copy” someplace on the coin. All of these coins from China would be legal if this was done; the vast majority is not, though. Their sole intention is to make money through deception.
Another category that is more acceptable to collectors is that of “contemporary counterfeits.” These are coins that were made in the distant past with the intention of defrauding merchants when they were made. Some of these are very collectible and desired by collectors. One of these that might show up locally, if you know what to look for, are Frances Henning’s fake nickels from 1944! He actually produced dies and stamped out his own version of the Jefferson nickel! Experts believe that he produced at least 100,000 of them. Why didn’t he produce coins with more value? Maybe he marched to his own drumbeat; that sure seems like a lot of work for $5,000 worth of nickels! Today, these are very collectible. An authentic 1944 nickel can be had all day for a buck or two, while a Henning nickel is worth $10-$50!
Counterfeiting doesn’t include changing or altering coins, as long as the changes are not intended to deceive. So your colorized quarters, your cut-out Walking Liberty half dollar necklace, and your coins with Elvis painted on them are all legal for you to possess!
Want to learn more about the fascinating hobby of coin collecting? The Brown County Coin Club meets on the second Tuesday of each month, at 6:30 pm, at the Family Center of the Austin Avenue Church of Christ. There’s probably at least one club member who shares an interest with you and would encourage you. Get involved in making your own unique coin collection!
The Brown County Coin Club hopes to see you on January 10 for their next meeting. Call Bill Cooper at 325-642-2128 or me at 325-217-4129 for more information.