1796 $2 1/2 No Stars on Obverse, BD-2, R.4, MS63 PCGS....

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1796 BD-2 No Stars Quarter Eagle, MS63
Iconic First and Single-Year Type
Second on the Condition Census

1796 $2 1/2 No Stars on Obverse, BD-2, R.4, MS63 PCGS. Ex: Harry W. Bass, Jr. Collection. Bass-Dannreuther Die State c/b. The 1796 No Stars quarter eagle ranks among the most sought-after and important types in the entire United States series. Indeed, it ranks firmly within the 100 Greatest U.S. Coins compiled by Jeff Garrett and Ron Guth with the input of many of the hobby's top experts. Not only is the 1796 quarter eagle the first two and a half dollar gold issue manufactured in this country, this variant without stars around the obverse was struck only for a few months before being replaced by a modified version with stars. Walter Breen adds in his 1988 Complete Encyclopedia:

"This coin has three distinctions: It is the first precious-metal coin without stars issued for circulation by the USA prior to 1836; it is the first ever to show the heraldic eagle, which would become standard on all silver and gold denominations 1798-1807; it is the earliest made showing 16 rev. stars honoring Tennessee's admission."

Origins and Production
The quarter eagle was one of three gold denominations authorized under the Mint Act of April 2, 1792 along with the half eagle and eagle. While smaller denominations in copper and silver were struck early on, the prohibitively high bond that Mint officials were required to post before gold coinage could commence delayed output for five and ten dollar pieces until 1795. It was not until 1796 that two and a half dollar gold coins (and silver quarters) were finally struck.

Chief Engraver Robert Scot was responsible for the design of the 1796 No Stars quarter eagles. Scot designed the other silver and gold pieces then in circulation as well, and so his omission of stars around the obverse of this singular issue has long perplexed numismatists. Garrett and Guth write:

"The reason for [the lack of stars] remains uncertain. Some have suggested that the star punch used to engrave the dies broke. Another theory is that the Mint employees were reluctant to engrave the stars because new states were in the process of being admitted. With some states still in limbo, perhaps the Mint did not want to put an inaccurate number of stars on the coin."

Dave Bowers has even suggested that Robert Scot may simply have thought the design looked better starless. Whatever the actual reason, we know that this one obverse was paired with two different reverses in the production of 963 No Stars quarter eagles in 1796. The reverse dies are distinguished by the placement of the eagle's left (facing) claw relative to the U in UNITED. The claw is close to the U on BD-1, while it is farther from the U on BD-2, as here. It is believed that the BD-1 coins comprised the 66 pieces struck on September 21 and delivered on September 22 (Warrant 76), while BD-2 coins represented the 897 quarter eagles struck on November 8 and delivered exactly one month later on December 8 (Warrant 77), which, according to Breen, went to the Bank of the United States. It has long been suspected that the additional 432 quarter eagles struck in late 1796 and delivered on January 14, 1797 were of the With Stars variety (BD-3). Those figures are in line with the surviving populations for each variety.

Availability of the 1796 No Stars Quarter Eagle
The 1796 No Stars two and a half dollar is not simply a sought-after single-year type. It is a genuine rarity in all grades. Naturally, its low total mintage of 963 coins provides an excellent starting point in explaining its rarity today. It is also important to realize that these coins represented a considerable amount of money at the time -- about a week's wages, per Garrett and Guth -- and they were intended for commercial purposes. Prior to the boom in numismatics about mid-way through the 19th century, and possibly after, the 1796 quarter eagles, as well as other early gold pieces, were subject to extensive circulation, export in international trade, and melting, significantly reducing their availability in the numismatic market.

John Dannreuther estimates in Early U.S. Gold Coin Varieties (2006) that just four to six examples of the BD-1 marriage exist. By contrast, there are believed to be 100 to 125 BD-2 representatives extant, though figures as low as a dozen have been suggested in the past, constituting the vast majority of the known population of this famous type.

The PCGS Population Report lists 78 total problem-free grading events for the 1796 No Stars quarter eagles, including both BD-1 and BD-2 varieties. At least two of those submissions represent the BD-1 variety (one in AU55 and the other in XF45), but the rest were struck from the BD-2 die marriage. The two most frequently awarded grades at PCGS are AU55 and AU58 with 19 and 16 submissions, respectively. We presume a number of those are duplications. Nearly all of the remaining coins at that service are in lower grades. Just eight entries have qualified for a Mint State assessment: two in MS61, three in MS62, one in MS62+, this Select example, and the finest known 1796 No Stars quarter eagle in MS65. It is entirely possible that those numbers are slightly inflated, especially in MS61 and MS62. The NGC Census data is similar in that the most frequently awarded grade is AU58, followed by a majority of certified representatives in lower circulated condition. The Mint State population is clearly inflated, with two submissions in MS60, three in MS61, three in MS62, two in MS63, and one in MS65 (the Parmelee example and undoubtedly the same MS65 as represented on the PCGS Population Report).

Given their widespread popularity and absolute rarity, it is unsurprising to find that 1796 No Stars quarter eagles are tightly held. Auction appearances are generally limited to only one or two sales a year, if that, and seldom in high grades. The Pogue, Simpson, Paramount, and now Bass sales have perhaps presented a few more opportunities to obtain the 1796 No Stars two and a half dollar in the finest known grades, but those opportunities remain scarce when one considers the thousands of rare and important United States coins sold on an annual basis. The most recent sale of a comparable example was lot 3780 in our sale of the Bob. R. Simpson Collection, Part VII. The coin was graded MS62+ PCGS CAC and realized $2.16 million. The Harry W. Bass Core Collection coin takes second place on our roster of high-grade 1796 No Stars BD-2 quarter eagles, which was compiled with the help of Ron Guth of Numismatic Detective Agency, ahead of that Simpson example. It has been impounded at the ANA Money Museum for the past 22 years and is offered here publicly for the first time since at least 1974, when Harry Bass purchased it from dealer Abner Kreisberg.

Physical Description
Dave Bowers called this particular coin one of "the nicest examples we have seen" in his remarks for the 2001 Bass Museum Sylloge. That comment certainly squares with our years of experience in handling these fabulous rarities, and with the roster below. The obverse is struck from die state c with a thin die crack running through the base of LIBER(TY) and another that extends from the rim at 9 o'clock up into the upper portion of the left field. Liberty's curls have been ever so slightly lapped. Reverse die state b shows a small die lump above the tip of the eagle's right (facing) wing.

Whereas the vast majority of surviving 1796 No Stars quarter eagles exhibit moderately worn, lackluster surfaces, this Select Mint State offering is razor-sharp with remarkable vibrancy. The obverse exhibits partial contrast between Liberty's nearly fully detailed portrait and the semireflective fields that deliver almost jet-black look at certain angles. To be sure, the minimalist No Stars design enhances the effect, appearing quite literally like a carved stone cameo. A hint of softness occurs over the ear, but the design is otherwise razor-sharp. The reverse is more traditional in appearance -- fully lustrous with uniform yellow-gold color. Central definition is just a touch soft on the eagle's neck feathers and the middle of the shield below the horizontals, similar to the obverse. The stars, legends, wing feathers, and tail, however, are impressively strong. Faint mint-made adjustment marks are also noted. Bowers suggests that the slight dark spots left of the hair curls "are likely the result of minor impurities in the planchet." They have no effect whatsoever on the eye appeal, nor do the trivial marks that are expected not just for the grade, but for any early gold piece. Actually, marks are far less significant than expected.

The 1796 No Stars quarter eagle is an icon of American coinage -- a singular first-year, low-mintage key date and one-year type that curiously, enigmatically lacks a device found on all other gold and silver coinage of the era. This particular example from the fabled Harry W. Bass, Jr. Collection, which will undoubtedly go down as one of, if not the greatest, sets ever put together is second to a single extant Gem. The chance to add this spectacular trophy coin to a fine set of United States gold rarities represents a monumental opportunity, a once in a generation (or two) event. We expect it will be met with a corresponding degree of enthusiasm and we await excitedly for the moment it crosses the block.

Roster of Mint State 1796 No Stars BD-2 Quarter Eagles
1. MS65 PCGS. Lorin G. Parmelee Collection (New York Coin & Stamp Co., 6/1890), lot 719, $18; "C" (per a priced/named catalog on the Newman Numismatic Portal); Col. Robert C.H. Brock Collection; Philip H. Ward, Jr. Collection (Stack's, 5/1964), lot 1660, $7,750; University of Pennsylvania Collection; Lelan Rogers Collection (Stack's/RARCOA/Akers "Numisma '95", 11/1995), lot 1498, $605,000; Cardinal Collection (American Numismatic Rarities, 6/2005), lot 1002, $1,380,000; FUN Signature (Heritage, 1/2008), lot 3058, $1,725,000.
2. MS63 PCGS. Abner Kreisberg, sold privately on 2/27/1974; Harry W. Bass, Jr. Foundation Collection (HBCC# 3002). The present coin.
3. MS63 NGC. Ft. Lauderdale ANA (Superior, 3/2000), lot 712, $178,250; Freedom Collection / FUN Signature (Heritage, 1/2007), lot 3380, $287,500.
4. MS63 NGC. FUN Signature (Heritage, 1/2004), lot 3004, $138,000; offered by MikeByers.com at the 2/2012 Long Beach show for $750,000; Philadelphia Signature (Heritage, 8/2012), lot 5281, $252,625; Warshaw Family Collection (Heritage, 1/2020), lot 4325, $300,000.
5. Brilliant Uncirculated. Lester Merkin, sold privately in 5/1970; John Whitney Walter Collection (Stack's, 5/1999), lot 1788, $86,250; Marvin Taichert Collection (Stack's, 5/2001), lot 34, $92,000.
6. MS62+ PCGS CAC. James Swan Collection; Oliver Jung Collection (American Numismatic Rarities, 7/2004), lot 82, $345,000; Samuel Berngard and S.S. New York Collections (Stack's, 7/2008), lot 2324, $488,750; Bob R. Simpson Collection, Part VII (Heritage, 1/2022), lot 3780, $2,220,000.
7. MS62 PCGS. Harold P. Newlin, sold privately on 10/31/1884; Robert Garrett Collection; T. Harrison Garrett Collection; Robert Garrett Collection; John Work Garrett Collection, Part II (Bowers and Ruddy, 3/1980), lot 732, $125,000; Ed Hipps, sold privately; John Whitney Walter Collection (Stack's, 5/1999), lot 1787, $299,000; D. Brent Pogue Collection, Part I (Stack's Bowers & Sotheby's, 5/2015), lot 1116, $822,500.
8. MS62 PCGS. John Story Jenks Collection (Henry Chapman, 12/1921), lot 5784, $140; James A. Stack, Sr. Collection (Stack's, 10/1994), lot 829, $82,500; Denver Signature (Heritage, 8/2006), lot 5417, $322,000; Werner Family Collection (Stack's Bowers, 8/2012), lot 11174, $411,250; Cardinal Collection Educational Foundation (Stack's Bowers & Sotheby's, 10/2015), lot 55, $352,500; earlyAurum Collection (PCGS Set Registry).
9. MS62 NGC. FUN Signature (Heritage, 1/1999), lot 7942, $138,000; Ft. Lauderdale ANA (Superior, 3/2000), lot 713, $103,500; Paramount Collection (Heritage, 2/2021), lot 3735, $276,000.
10. MS62 NGC. FUN Signature (Heritage, 1/2007), lot 3379, $253,000; Baltimore Auction (Stack's Bowers, 3/2012), lot 4258, $258,750.
From The Harry W. Bass, Jr. Core Collection, Part II.

Coin Index Numbers: (NGC ID# 25F2, Variety PCGS# 45501, Base PCGS# 7645, Greysheet# 213446)

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.

View Certification Details from PCGS