1796 $2 1/2 Stars on Obverse, BD-3, High R.5, MS63+ PCGS....

Description

1796 Capped Bust Right Quarter Eagle, MS63+
Popular First Year of Denomination
Stars on Obverse, BD-3 Variety
Registry-Grade Example

1796 $2 1/2 Stars on Obverse, BD-3, High R.5, MS63+ PCGS. Ex: Harry W. Bass, Jr. Collection. Bass-Dannreuther Die State e, with a die crack connecting obverse stars 3 through 8, another from the left side of the B in LIBERTY, through the cap, and another connecting stars 10 through 13. The 1796 Capped Bust Right quarter eagle, with 16 stars on the obverse, represents a rare major design type from the first year of the denomination. Both John Dannreuther and PCGS CoinFacts estimate fewer than 50 examples survive in all grades, including three coins in the National Numismatic Collection at the Smithsonian Institution. Mint State pieces are especially elusive. PCGS and NGC have combined to certify 18 Mint State coins between them (3/23), including an unknown number of resubmissions and crossovers. Heritage auctions is privileged to present this spectacular Plus-graded Select specimen, the second-finest certified example of this sought-after early gold rarity.

Mintage and Dies for 1796 Quarter Eagles
Although the quarter eagle was authorized by the Mint Act of 1792, none were actually struck until 1796. In fact, no precious-metal coinage took place until late in 1794, due to stringent bonding requirements for key Mint personnel. Both Chief Coiner Henry Voigt and Assayer Albion Coxe were required to post exorbitant surety bonds ($10,000 each) before they could work with gold or silver bullion at the Mint. Neither Coxe nor Voigt could afford to post such a bond. Fortunately, Congress lowered the requirement to more reasonable levels in March of 1794 ($1,000 for the Assayer and $5,000 for the Chief Coiner), and the two men were able to post those bonds with some assistance from their friends. Coinage of silver dollars, half dollars, and half dimes commenced in 1794, and gold half eagles and eagles were struck in 1795, as there was much more demand for the larger denominations in international trade, and half dimes were useful in everyday exchanges. Dimes, quarters, and quarter eagles were all struck for the first time in 1796.

Two major design types (No Stars and With Stars) and three die varieties of quarter eagles are known for 1796. Most numismatists believe the three die varieties correspond with the three deliveries of quarter eagles that took place in late 1796 and early 1797. Because the dies used to strike the coins all show signs of terminal breaks in later die states, it makes sense to assume all the coins in each delivery were struck from the same pair of dies and that production was halted after each delivery, due to die failure. The surviving population of each variety corresponds well proportionately with the size of the deliveries, reinforcing this theory. It must be acknowledged that this theory has not been confirmed by documentary evidence, but it is plausible and conforms well to the known facts.

The No Stars BD-1 variety is the rarest of the three known die marriages, with a surviving population of 4-6 examples in all grades. It is believed these coins are from the first delivery of 66 quarter eagles that took place on September 21, 1796. Although Edgar Adams discovered this variety in the early 20th century, it was largely forgotten by the numismatic community until Harry Bass rediscovered it in 1971. The BD-1 shares the same No Stars obverse die with the BD-2 variety, but it has extended arrows on the reverse.

The No Stars BD-2 variety is the most "available" variety of 1796, but it is still an elusive issue, with a surviving population of 100-125 examples in all grades. This small group probably constitutes the survivors of the 897-piece delivery of quarter eagles that took place on December 8, 1796, after a new "regular arrows" reverse die was prepared.

The BD-3 is the only variety with 16 stars on the obverse. As a type, it is much more difficult to locate than its No Stars counterpart, with only 40-50 examples extant in all grades. The BD-3 coins are probably survivors from the 432 pieces delivered under Warrant 80 on January 14, 1797.

The dies for the 1796 BD-3 quarter eagle were probably designed by Chief Engraver Robert Scot (obverse) and Assistant Engraver John Smith Gardner (reverse). Heritage Chief Cataloger Mark Van Winkle remembers a conversation about the dies with Harry Bass, one of the foremost students of early U.S. gold coin varieties. Bass noted that the BD-3 obverse die was not produced by simply adding 16 stars to the older No Stars die. The letters in LIBERTY are more widely spaced on the BD-3 obverse, and the date is more closely spaced and more curved. This is the only quarter eagle die with 16 obverse stars, an important consideration for type purposes. The 16th star was added to commemorate the admission of Tennessee to the Union, on June 1, 1796. Gardner's reverse also features a short-lived design, with his "Tall Neck" on the eagle that was only seen in 1796 and 1797. There are also eight vertical stripes in the shield and 16 stars around the eagle's head vs. six stripes and 13 stars on later dies. The eagle has three visible claws, clutching eight arrows on the Reverse of 1796, compared to one claw and 10 arrows on the Reverse of 1798. Some parallel die lines are seen on all known examples, above and through the tops of the letters TATE in STATES. John Dannreuther notes that these interesting design characteristics have largely been overlooked over the years, because the overall rarity of the 1796 quarter eagle makes it a "stopper" for most collectors, who tend to acquire just a single No Stars example for their type sets.

Auction Data and History of This Coin
The 1796 Capped Bust Right quarter eagle was a favorite issue among early collectors, and the two obvious major design types were recognized at an early date. Examples began appearing at auction by the 1860s, with an especially nice specimen of the BD-3 variety described in lot 2790 of the Sixth Semi-Annual sale (W. Elliot Woodward, 3/1865):

"1796 With Stars; perfectly uncirculated, almost proof impression, undoubtedly the finest existing specimen of this variety, excessively rare."

The lot realized a strong price of $40, to Baltimore collector Mendes I. Cohen. Of course, prices for rare coins have risen astronomically in recent years and high-grade examples of the 1796 With Stars quarter eagle routinely sell for hundreds of thousands of dollars in today's market. The record price realized for the issue is $1,380,000, brought by the MS65 PCGS specimen in lot 3039 of the FUN Signature (Heritage, 1/2021).

Harry W. Bass, Jr. purchased the present coin privately from Kansas dealer Fred Sweeney on October 24, 1972. We have not been able to discover any prior provenance for this piece. Bass retained this coin, along with the rest of his magnificent collection, throughout his life. This coin was retained as part of the Harry Bass Core Collection after his death, in 1998, and was exhibited at the Edward C. Rochette Money Museum at the headquarters of the American Numismatic Association, in Colorado Springs, from 2001-2022.

Physical Description
This Plus-graded Select specimen offers well-preserved yellow and greenish-gold surfaces, with a mix of vibrant mint luster and prooflike reflectivity in the fields. A few tiny planchet flakes are evident below the bust, to the right of the date. On close inspection, some faint, vertical planchet adjustment marks show on Liberty's hair. This piece exhibits strongly impressed design elements throughout, but both sides show prominent clash marks and some loss of detail is evident on Liberty's lower curls, due to lapping. The always-seen heavy parallel die lines are present at the tops of the letters in TATE. Overall eye appeal is terrific. This coin has been off the market for more than 50 years and it may be years before a comparable example becomes available, once this offering has passed. We expect intense competition from series specialists, advanced type collectors, and Registry Set enthusiasts when this lot is called. This coin is pictured on PCGS CoinFacts and is the plate coin in Early U.S. Gold Coin Varieties 1795-1834. Population: 1 in 63 (1 in 63+), 0 finer (3/23).

1796 With Stars Quarter Eagle, BD-3, Breen 2 (the only 1796 With Stars variety), Rarity 5+
A Roster of Significant Examples provided by Ron Guth of the Numismatic Detective Agency
1. MS65 PCGS. CAC. Byron Reed Collection, Durham Western Heritage Museum (Spink America, 10/1996), lot 41, realized $231,000; FUN Signature (Heritage, 1/2007), lot 3382, realized $862,500; Madison Collection (Heritage, 1/2008), lot 3059, realized $1,006,250; Bob R. Simpson Collection, Part III (Heritage, 1/2021), lot 3039, realized $1,380,000.
2. MS63+ PCGS. Fred Sweeney, sold privately on 10/24/1972; Harry W. Bass, Jr.; Harry Bass Core Collection (HBCC# 3003), exhibited in the Edward C. Rochette Money Museum at ANA headquarters in Colorado Springs until 2022. The present coin.
3. MS63 PCGS. Harlan P. Smith Collection (S.H. & H. Chapman, 5/1906), lot 237, realized $63; H.O. Granberg Collection; Adams, Morley et al Collections (Superior, 5/1992), lot 2470, realized $44,000; John Whitney Walter, purchased privately in 3/1995; John Whitney Walter Collection (Stack's, 5/1999), lot 1790, realized $115,000; Logan, Steinberg and Roe Collections (Bowers and Merena, 11/2002), lot 3063; Swan and Sweet Collections (Bowers and Merena, 3/2004), lot 2512, not sold; Pre-Long Beach (Goldberg Auctions, 9/2010), lot 2758, not sold; MikeByers.com, offered for $500,000 at the 2/2012 Long Beach Show; ANA Signature (Heritage, 8/2012), lot 5282, realized $329,000.
4. MS63 Uncertified (grade per Jeff Garrett). Josiah K. Lilly Jr. Collection -- National Numismatic Collection at the Smithsonian Institution (ID# NU.68.159.0048)
5. MS63 Uncertified. Prior provenance unknown.
6. MS62+ PCGS. CAC. John Whitney Walter Collection (Stack's, 5/1999), lot 1791, realized $115,000; ANA Convention Sale (Bowers and Merena, 8/2009), lot 4310, realized $163,875; Chicago ANA (Stack's Bowers, 8/2011), lot 7593, realized $287,500; Murray Hill Collection (Stack's Bowers, 11/2017), lot 10115, realized $324,000; Early Aurum Collection.
7. MS62 PCGS. CAC. George H. Earle, Jr. Collection (Henry Chapman, 6/1912), lot 2496, realized $215; S.H. Chapman (per the priced and named catalog of the Earle Collection on the Newman Portal); possibly the Waldo C. Newcomer Collection (inventory #673), "Proof, finest known specimen"; B. Max Mehl, sold privately; "Colonel" E.H.R. Green Collection; Dr. J. Hewitt Judd Collection; Winter Collection (Stack's, 2/1974), lot 495; Dr. Herbert Ketterman Collection, sold privately in the late 1970s; James A. "Jimmy" Hayes Collection (Stack's, 7/1984), lot 1365, realized $74,250; Auction '89 (David W. Akers, 7/1989), lot 1356, realized $176,000; D. Brent Pogue Collection, Part I (Stack's Bowers & Sotheby's, 5/2015), lot 1117, realized $440,625.
8. MS62 PCGS. Elmer Sears, sold privately in 8/1926; Herman Englehardt (Montrose, CA dealer), sold privately; anonymous doctor in La Canada, CA, sold privately "in the 1970s"; ANA Auction (Stack's Bowers, 8/2021), lot 4165, realized $456,000.
9. MS62 NGC. Dallas Signature (Heritage, 11/2005), lot 2363, realized $219,650; Rarities Night (Stack's Bowers, 8/2020), lot 1248, realized $175,001.
10. MS62 PCGS. John H. Clapp Collection, sold intact via Stack's in 1942; Louis E. Eliasberg, Sr. Collection (Bowers and Ruddy, 10/1982), lot 80, realized $26,400; Rarities Sale (Bowers and Merena, 8/1999), lot 337, realized $74,750; Cincinnati Collection (Heritage, 1/2005), lot 8761, realized $207,000; Ed Price Collection (Heritage, 7/2008), lot 1452, realized $207,000; Baltimore Signature (Heritage, 3/2009), lot 2568, realized $172,500; Los Angeles Signature (Heritage, 7/2009), lot 1205, realized $172,500.
From The Harry W. Bass, Jr. Core Collection, Part III.

Coin Index Numbers: (NGC ID# BFVN, Variety PCGS# 45502, Base PCGS# 7647, Greysheet# 213447)

Weight: 4.37 grams

Metal: 91.67% Gold, 8.33% Copper

Note for clients in the European Union: This lot is considered by the European Union to be “investment gold”. We believe that it meets the criteria established in Article 344(1), point (2) of Council Directive 2006/112/EC and thus should be exempt from import VAT regardless of the selling price. Any questions or concerns about VAT should be addressed to your accountant or local tax authority.

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