Boy Scout Coin Collecting Merit Badge

Worksheet and Handouts

(based upon the 2004 Edition BSA Merit Badge book)

To download this Worksheet in Adobe .pdf format, click here

1.  Do all of these:

Tell about the various grades of coins (hint: poor, fair, good, very good, fine, very fine, extremely fine and uncirculated). Show five examples of the same coin type. You can use coins of different years and/or mints, and coins you find in general circulation.

Explain the term "proof" and why it is not a coin grade. Learn what MS-60, MS-62 and MS-65 are.

Tell what "encapsulated" coins are. Hint: to "encapsulate" is to "encase in or as if in a capsule." (And we’re not talking time capsules here!)

Know 3 different ways to store a coin collection. Describe the benefits, drawbacks and expense of each method. Pick one to use when completing these requirements.

Identify the people on the following denominations of current U.S. paper money: $1, $2, $5, $10, $20, $50 and $100 bills. Who are they? Why are their faces on our money? Hint: see the information below.

Explain "legal tender." Hint: Legally valid currency that may be offered in payment of a debt and that by law a creditor must accept; something used as an official medium of payment.

Describe generally the role the U.S. Federal Reserve System plays in the distribution of U.S. money. Hint: http://www.federalreserve.gov/  See the information below.

Demonstrate to your merit badge counselor that you know generally how to use 3 U.S. or world coin reference catalogs. You can look at such catalogs at the library or any bookstore.

Read a numismatic ("coin collecting") magazine or newspaper, and tell your merit badge counselor about what you learned.

Describe the 1999-2008 50 State Quarters Program. Collect and show your counselor 5 different state quarters which you have acquired from general circulation.

Understand how coins are made and where the active U.S. Mint facilities are located.

2.  Explain all of these collecting terms:

Obverse

Reverse

Reeding

Clad

Type set

Date set

 

3.  Do ONE of the following two:

Tell how to detect counterfeit coins; or

Tell what "buffed" and "whizzed" coins are. Tell how to detect them, and tell how to properly clean coins.

 

4. Do these three:

A) Collect a type set of US coins (cent, nickel, dime, quarter, half-dollar, & dollar) of any date currently being minted or in circulation. Have a least one coin from each mint in your type set. Expensive or rare coins are not needed.

B) In your type set, point out and identify the mint mark (if any) on each coin. Tell when each Mint facility first started making coins. Hint: http://www.ushistory.org/tour/tour_mint.htm 

C) For each coin in your set, point out the location of the coin designer’s initials, if any.

 

5.  Do any TWO of the following:

A) Make enlarged sketches of both sides of five different kinds of U.S. coins minted from 1792 through today. Make sketches of both sides of five different colonial or state coins minted before 1792. Show all designs, dates & lettering clearly.

B) Collect, classify and mount 50 different foreign coins of 10 or more different countries.

C) Collect, classify, describe and mount 10 medals, tokens, or a combination of both. Have 3 different sized medals or tokens, and 3 different metals or compositions in the collection.

D) Tour a U.S. Mint facility, the Bureau of Engraving and Printing, or a Federal Reserve Bank, and describe what you learned to your merit badge counselor.

E) With your parent’s permission, attend a coin show or coin club meeting, or view the website of the U.S. Mint or a coin dealer, and report on what you learned.

F) Give a talk about coin collecting to Troop 94, your Patrol, or your class at school.

G) Collect and identify 20 bank notes from at least 5 different countries.

H) Collect a type set of U.S. coins minted during the 20^th Century (except rare, proof, gold, expensive or commemorative coins).

I) Collect a date set of some U.S. series of coins beginning with your birth year (except rare or expensive coins) or any later year.

J) Show the location of and explain the following on a current piece of U.S. paper money:

the Federal Reserve Bank and letter,

serial number,

series,

check letter,

face plate number,

back plate number,

seal and seal color,

signatures, and

denomination.

 

6.  Describe three (3) things to look for in detecting counterfeit money.

ANSWERS:

The Federal Reserve System, often referred to as the Federal Reserve or simply "the Fed," (not to be confused with "the Feds" – the FBI, CIA, Secret Service, etc.) is the central bank of the United States. After many small and great financial depressions (think the Depressions of the early and late 1800s, ending in the Great Depression starting in 1929) caused by unsafe business practices and banking scandals, it was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Like many government programs, over the years its role has evolved and expanded.

The Federal Reserve System was created on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. During and after the Great Depression, which began in 1929 and didn’t end until the beginning of World War II in 1940, the Fed’s role in regulating the nation’s money supply and our monetary and financial systems has steadily grown and expanded.

Today, the Federal Reserve's responsibilities duties fall into four general areas:

a) conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices. In other words, controlling how much money is put into or taken out of the national and world economy;

b) supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers. In other words, preventing banking failures, runs on banks, etc.;

c) maintaining the stability of the financial system and containing systemic risk that may arise in financial markets. In other words, putting the brakes on risky government and business schemes and in financial instruments – stocks, bonds and mutual funds; and

d) providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation's payments systems. In other words, the Fed loans cash money to its member banks, sets caps on interest rates which the Fed charges member banks that borrow money, and caps on rates that banks can charge each other when they borrow money (money which is later borrowed by you).

The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It looks at the overall picture – how the total national economy is doing. It is a federal system, composed basically of a central agency – the Board of Governors – in Washington, D.C., and twelve regional Federal Reserve Banks located in major cities throughout the nation (Dallas, New York, Chicago, etc.). These components all share responsibility: 1) for supervising and regulating certain financial institutions and activities within their regions and the nation overall; 2) for providing banking services (check routing & cashing, money lending, etc.) to depository institutions and to the federal government; and 3) for ensuring that consumers receive adequate information and fair treatment in their business with the banking system.

A major component of the System is the Federal Open Market Committee (FOMC), which is made up of the members of the Board of Governors, the president of the Federal Reserve Bank of New York, and presidents of four other Federal Reserve Banks, who serve on a rotating basis. The FOMC oversees open market operations by setting interest rates and determining how much money to print, which are the main tools used by the Federal Reserve to influence money market conditions and the growth of money and credit.

The Federal Reserve System is not "owned" by anyone. It is not a private, profit-making institution like your local banks. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branches of government. It does not receive funding appropriated by Congress (the power to fund is the power to control), and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to some oversight by Congress, which periodically reviews its activities and could alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent but within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations – possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; and unlike a regular business, which sets its own dividend rates, Fed dividends are set by law at 6 percent per year.

$1.00 -- George Washington (born 1732, died 1799) -- The premier American Revolution military leader and the first President of the United States (from 1789 to 1797). Washington set the example for all future Presidents by, first, refusing to be crowned King, and later by refusing his country’s call to serve more than two terms as President. Because of Washington’s example, no President after him (until Franklin Roosevelt in the 1930's) ever served more than two terms as President. Because of Washington’s example (and Roosevelt’s breach of that example) the 22^nd Amendment was ratified in 1951, limiting presidents to not more than two terms in office. Washington was the Commander of all American forces in the Revolutionary War from 1775 until 1783; he also presided over the Second Constitutional Convention in 1787, and he signed the Declaration of Independence. Elected President of the fledgling country in 1789, he shunned partisan politics and sought to heal the deep divisions between the pro-British and anti-British sides of the Revolutionary War. In his farewell address in 1796 Washington warned the voters against letting any future leader get our nation involved in "foreign entanglements" (i.e., the numerous wars between Spain, England, Germany, Russia and France). George Washington’s face has also been on the 1899 series $2 bill, the 1905-1922 series $20 bills, the 1863 series $100 bill, and the 1861 series $500 and $1,000 bills.

$2.00 bill – Thomas Jefferson (1743-1826) – The third President of the United States (1801-1809). As a member of the second Continental Congress in 1776, Jefferson was the chief drafter of the Declaration of Independence. His presidency was marked by the purchase of the Louisiana Territory from France in 1803 (he sent the Lewis and Clark expedition to explore it), and the Tripolian War from 1801-1805. A political philosopher, educator and architect, Jefferson designed his own estate (Monticello) and buildings for the University of Virginia. Having seen how they destroyed small businesses and farmers, he hated banks – especially large ones – and his enormous influence cast a pall over the entire American banking system. Jefferson devised the world’s first decimal currency system, an idea that has now spread to every other country on the globe. He even coined the word dime for the 10-cent piece.

$5.00 bill – Abraham "Honest Abe" Lincoln (1809-1865) – The 16th President of the United States (from 1861 to 1865), who led the Union during the Civil War. Lincoln was born in Hardin County (now Larue County), Kentucky. He started his career as a lawyer. He served in the Illinois State House of Representatives from 1834 to 1841, was a U.S. Representative from Illinois from 1847 through 1849, and was elected the 16th President of the United States in 1860. Lincoln's policies and his election resulted in the secession of the Southern States from the Union and the onset of the Civil War. He signed the Emancipation Proclamation in 1863, which emancipated the slaves who were then in the Rebel portions of the South (but not in parts controlled by the North). He was assassinated shortly after the end of the civil war by the actor John Wilkes Booth. His face has also been on the U.S. 50 cent bill (yes, a 50¢ bill), the 1899-1918 series $5 bills, the 1861 series $10 bill, the 1863 series $20 bill, the 1869-1880 series $100 bill, and the 1879-1922 series $500 bill.

$10.00 – Alexander Hamilton (1755? To 1804) – the country’s first Secretary of the Treasury. Born in the Caribbean, Hamilton is one of three people pictured on small-sized U.S. currency who was not a President of the United States. Called "the illegitimate son of a Scottish peddler" by his political rivals, after coming to America Hamilton was able to "rise to the top" and serve as the new United States’ chief financial officer. As Secretary of the Treasury from 1789 to 1795 he established the national bank and a public credit system. Hamilton was mortally wounded in a duel with his political rival Aaron Burr, and he died one day after the duel. His death led to Burr’s national disgrace. Hamilton’s face has also been on the 1862 series $2 bill, the 1861-63 series $5 bills, the 1862-63 series $20 bill, the 1862-63 series $50 bill, the 1879-1922 series $500 bill, and the 1882-1922 series $1,000 bills.

$20.00 bill – Andrew Jackson (1767-1845) – Known as "Old Hickory" for his strength as a war time general. He was a genuine war hero from the War of 1812 who went on to become the seventh President of the United States (from 1829 to 1837). As a general in the War of 1812 defeated the British at the Battle of New Orleans in 1815, along with the French pirate Jean Lafitte. As President Jackson killed the Second Bank of the United States in 1836 because it was controlled by corrupt Northern bankers who were cheating Southern and Western farmers, small land owners, and businessmen. Unfortunately, the resulting lack of a federal bank caused the American business cycle to have a much larger amplitude than in other countries, producing a 20-year cycle of euphoric booms and disastrous crashes: in 1837, 1857, 1873, 1893, 1907 and 1929. These crashes often led to deep and protracted depressions like the Great Depression of the 1930s. As President Jackson also objected to the ten-claimed right of individual states to nullify disagreeable federal laws, and he increased presidential powers. Jackson’s face has also been on the 1869-1907 series $5 bill, the 1914-1923 series $10 bills, the 1928-29 series $20 bills, the 1861 series $50 bill, the 1870-1900 series $10,00 bill, and the 1861 series $1,000 Confederate bill.

$50.00 bill – Ulysses S. Grant (1822-1885) – Originally named Hiram Ulysses Grant, he later changed his name to Ulysses Simpson Grant. He was the 18^th President of the United States, from 1869 to 1877. In 1864, after his victorious Vicksburg campaign (1862-1863), Grant was made commander in chief of the Union Army by President Lincoln. Grant personally accepted the surrender of Confederate General Robert E. Lee at Appomattox, Virginia, on April 9, 1865, ending the Civil War. As a presidential candidate Grant was wildly popular in the North (and the Scout was not permitted to vote), so both political parties were willing to run him on their ticket. An alcoholic, Grant's two-term presidency was marred by widespread graft and corruption. His face has also been on the 1899 series $1 bill, the 1886-1896 series $5 bills, and the 1913-29 series $50 bills.

$100.00 bill – Benjamin Franklin (1706-1790) – Famous American public official, writer, scientist, and printer, in the USA he was surpassed in influence only by George Washington. After the success of his Poor Richard's Almanac (published from 1732 to 1757), Ben entered politics and played a major part in the American Revolution. Franklin negotiated critically-needed French support for the colonists, and as Ambassador to France he signed the Treaty of Paris in 1783 whereby the American Revolutionary War was financed with $6 million francs borrowed from the King of France, and fought with arms & munitions bought from France. Franklin helped draft the new U.S. Constitution in 1787-1789. His numerous scientific and practical innovations include the lightning rod, bifocal spectacles and other medical devices, and a widely used colonial era heating & cooking stove (the Franklin stove) that was very efficient and beautiful. He is attributed with the invention of the Public Library, the Post Office, the glass harmonica, and the fire engine (among many other things). He was known world-wide as the man who had "discovered" electricity (or more accurately confirmed that storm lightening was a form of electricity) with the help of a kite, a key and a lightning storm. He was America’s first meteorologist, geographer, oceanographer, and parapsychologist. He invented the "blind protocol" scientific research/clinical trial methodology still used today. Franklin’s face has also been on the 1874-1880 series $50 bill, and the 1879 series $10 "refunding certificate."

$500 bill – William McKinley (January 29, 1843 - September 6, 1901) – William McKinley, Jr. was born in Nile, Ohio. He started his career as a lawyer and was elected to the U.S. Representative from Ohio (in 1877-1884 & again in 1885-1887). He served as the Governor of Ohio from 1892 to 1896, and was then elected President of the United States. He was assassinated in office in 1901. His face was also on a series of the U.S. $10 bill, and since 1928 it has been on all of the different series of U.S. $500 bills.

$1,000 bill – Grover Cleveland (March 18, 1837 to June 24, 1908) – Stephen Grover Cleveland (known as "Grover") was born in Caldwell, Essex County, New Jersey. His father was a Presbyterian clergyman. After his father's death Grover became a clerk and assistant teacher in the New York Institution for the Blind, but in 1855 he settled in Buffalo, N.Y., with his uncle. He studied law in the office of Rogers, Bowmen & Rogers and was admitted to the bar in 1859. From 1863 to 1866 he was district attorney of Erie County, N.Y. He became the law partner of Isaac V. Vanderpool, and in 1869 he was a member of the law firm of Lanning, Cleveland & Fulsom. He practiced law until 1870, when he was made sheriff of Erie County. Then a new firm of Bass, Cleveland & Bissell was formed in 1873, and in 1881 Cleveland was elected mayor of Buffalo. In 1882, favored by a factional fight in the Republican party, he was made governor of the State of New York. In 1884 the Democratic party nominated him for President of the United States. He was elected the 22nd President on a platform of tariff reform. He was defeated for a second term by Republican candidate Benjamin Harrison, but in 1892 he in turn defeated Harrison and became our 24th President. This made him the only person to serve non-consecutive terms as President of the United States. He was married in the White House in 1886 to Miss Frances Folsom, daughter of his former law partner. During Cleveland's second term, the country suffered a severe financial slump, so Cleveland found himself under considerable pressure to convert to a silver standard. His face has also been put on the 1914 and 1918 series $20 bills.

$5,000 bill – James Madison (March 16, 1751 to June 28, 1836) – James Madison was born in Port Conway, Virginia. He graduated from Princeton College in 1771. He was a member of the Continental Congress from 1780 through 1783, and from 1787 through 1788. He became Secretary of State under President Thomas Jefferson in 1801 and served until 1809, when he was elected to be the fourth President of the United States. He served two consecutive terms in that office. Madison was President during the war of 1812, when the British army occupied Washington, D.C. and partially burned the President’s home. Afterwards, the home was painted white to cover those burn marks; it is now called "The White House." Madison opposed on constitutional grounds Alexander Hamilton's idea of having a national bank (the first Bank of the United States) issuing U.S. currency. Despite his opposition, government-issued bonds were used to help pay for the war effort. Since $5,000 bills were first issued in 1878 Madison’s face has been only on that denomination.

$10,000 bill – Salmon P. Chase (January 13, 1808 to May 7, 1873) – Salmon Portland Chase was Secretary of the Treasury and a Chief Justice of the Supreme Court. As Secretary of the Treasury under Lincoln, Chase oversaw the issue of "greenbacks." Before Chase’s term as Treasurer U.S. money was not colored green, but to foil counterfeiters Chase had all U.S. notes made of paper that was tinted green by natural fibers (because green printers ink did not exist at the time). Chase led the fight for passage of the National Bank Acts of 1863 and 1864. This was the first time in over 50 years that the federal government had gotten involved in issuing currency (since before the War of 1812), which made it quite a controversial proposition for those Jeffersonians who hated banks and who especially distrusted a central bank. From 1812 to 1863 private banks issued the paper money, some of which was good but some of which became worthless in the reoccurring financial depressions. Later, as Chief Justice of the Supreme Court Chase wrote the majority opinion stating that the federal currency was unconstitutional, and fought tooth and nail when a year later the court outvoted him on the issue. His face has also been on the 1861 and 1863 series $1, $10, $50 and $1,000 bills.

$100,000 bill – Woodrow Wilson (December 28, 1856 to February 3, 1924) – Thomas Woodrow Wilson was born in Staunton, Virginia. He graduated from Princeton University and earned a doctorate from Johns Hopkins University. He was Governor of New Jersey from 1911 through 1913, then he was elected President in 1912, and reelected in 1916. His legacy includes the League of Nations, U.S. involvement in World War I – Wilson’s "crusade to make the world safe for democracy" after running on the 1912 platform "he kept us out of war" – the Federal Reserve System, the federal Fair Trade Commission, and federal prohibition of then widespread child labor. Since $100,000 bills were first issued in 1934 Wilson’s face has been only on this denomination.

Other persons who at one time or another have been on American currency are: John Quincy Adams, Judah P. Benjamin (Confederate Currency), Thomas H. Benton, John C. Calhoun (Confederate Currency), Spencer M. Clark, William Clark, Clement Claiborne Clay (Confederate Currency), Henry Clay, DeWitt Clinton, Christopher Columbus, William H. Crawford, Jefferson Davis (Confederate Currency), Commodore Stephen Decatur, Samuel Dexter, Edward Everett, Admiral David G. Farragut, William P. Fessenden, Robert Fulton, Albert Gallatin, James A. Garfield, General Winfield S. Hancock, Benjamin Harrison, Thomas A. Hendricks, Michael Hillegas, R.M.T. Hunter (Confederate Currency), General "Stonewall" Jackson (Confederate Currency), John J. Knox, Meriwether Lewis, Daniel Manning, General Joseph K. Mansfield, William L. Marcy, John Marshall, Hugh McCulloch, General James B. McPherson, General George G. Meade, C.G. Memminger (Confederate Currency), William M. Meredith, James Monroe, Robert Morris, Samuel Morse, Lucy Pickens (Confederate Currency), George W. Randolph (Confederate Currency), Sioux Indian Chief Running Antelope, General Winfield Scott, William H. Seward, General Philip H. Sheridan, John Sherman, General William T. Sherman, Edwin M. Stanton, Alexander H. Stephens (Confederate Currency), Charles Sumner, General George H. Thomas, Robert J. Walker, Martha Washington, Daniel Webster, William Windom and Silas Wright.

For more information on U.S. notes, bills, coins and certificates, and to see pictures of all these, go to:

http://www.currencygallery.org/index.htm

http://aes.iupui.edu/rwise/

http://www.meritbadge.com/mb/035.htm

http://www.ronscurrency.com/ronef.htm

http://americanhistory.si.edu/csr/nnc/faqpages/virtexh.htm

http://www.amnumsoc.org/

http://www.money.org/index.shtml

http://esty.ancients.info/numis/

http://www.ancientcoins.com/

http://www.celator.com/cws/index.html

http://www.symbolicmessengers.com/

http://www.sweetcollectibles.com/sitemap.htm