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| ![](media/image1.png)                                                 |
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| UNITED STATES MINT                                                    |
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***Quarterly Financial Report of the United States Mint***

***Commemorative Coin Program,***

***P. L. 104-208, as of June 30, 2000***

***INTRODUCTION 1***

#### **PROGRAM-WIDE ISSUES 2** 

#### **FINANCIAL REPORTING 2**

***YELLOWSTONE NATIONAL PARK . 2***

## LIBRARY OF CONGRESS BICENTENNIAL . 3

***LEIF ERICSON MILLENNIUM 5***

***U.S. CAPITOL VISITOR CENTER -- FY 2001 6***

***CONCLUSION .6***

***[INTRODUCTION]{.underline}***

Public Law 104-208, the *Commemorative Coin Reform Act of 1996*,
requires the Mint to report the quarterly status of commemorative coin
programs. In general effect, the law makes coin program beneficiaries
partners in bearing the risks and marketplace realities of commemorative
coin programs, and it assures that the U.S. Mint recovers its costs of
operating coin programs. In addition, the law requires beneficiaries to
file audited financial statements, and it requires the Mint to report
quarterly on the status of commemorative coin programs. In compliance,
this---the Mint's fourteenth quarterly commemorative coin
report---discusses programs reporting significant program activity April
1 through June 30, 2000.

***[PROGRAM-WIDE ISSUES]{.underline}***

Commemorative coin sales through our web catalog continue to increase.
Revenues generated, as of June 30, 2000, through Internet orders for the
Yellowstone National Park and Library of Congress Commemorative Coin
Programs comprise over twenty percent of each program's sales. Given the
growing number of people with Internet access worldwide, we anticipate
online sales will play an

ever-increasing role in future commemorative coin sales. We are
directing our efforts accordingly, and plan an upgrade of our
commemorative coin web pages within the near future.

Sales for the Dolley Madison Commemorative Coin Program ended December
31, 1999, generating slightly over \$10 million in revenues. A final
surcharge payment of \$1,032,567 was made on May 30, 2000, to the
National Trust for Historic Preservation, the designated recipient
organization, bringing total surcharges paid to \$3,134,570.

The enactment of Public Law 104-208 on September 28, 1996, mandated
several provisions reforming the U.S. Mint Commemorative Coin Program.
Among these is the requirement to restrict the number of commemorative
coin programs to no more than two per calendar year. An ambitious layout
of suggested commemorative coin programs for the next few years has
prompted a note of warning from the Citizen's Commemorative Coin
Advisory Committee

(CCCAC) regarding the number of proposed programs. The CCCAC cautioned
against a weakening of congressional commitment to support restrictions
imposed by Congress in the Committee's annual report to Congress
released March 21, 2000.

***[FINANCIAL REPORTING]{.underline}***

![](media/image2.bmp)The attached financial statements provide quarterly
and cumulative program data. The *Commemorative Coin Reform Act of 1996*
requires us to withhold surcharges until all program costs are recovered
and beneficiaries submit audited financial statements indicating funds
raised privately equal maximum possible surcharges. We, again, report
that the U.S. Black Revolutionary War Patriots Commemorative Coin
Program closed December 31, 1998, with a deficit. The beneficiary has
not submitted the required documentation and therefore does not qualify
to receive surcharges. The Foundation has not told us of its plans for
meeting these requirements.

***[YELLOWSTONE NATIONAL PARK]{.underline}***

## Program Highlights

In commemoration of the 125^th^ anniversary of Yellowstone as the first
U.S. National Park, Public Law 104-329 authorized the issuance of
500,000 silver dollars. Product options included individual proof and
uncirculated coins and a two-coin set containing both. Surcharges will
be divided equally between the National Park Foundation and Yellowstone
National Park.

## Marketing Activities 

## 

The Yellowstone National Park Commemorative Coin was unveiled July 15,
1999, at the Department of Interior Museum. Program sales will continue
through July 15, 2000. A promotion with Unilever, launched in April,
features Yellowstone two-coin sets as prizes for purchases of Snuggle®
Fabric Softener. Unilever purchased over 400 two-coin sets for this
promotion.

## Analysis of Financial Position

On June 30, 2000, sales exceeded 264,000 coins, generating revenues over
\$8.5 million including surcharges of \$2,623,290. Estimated profits of
\$ 1.3 million exceed potential unrecovered expenses of roughly
\$67,000. Cost of goods sold totaled \$2,446,78 and selling, general &
administrative expenses were \$2,162,199.

## Manufacturing/Packaging Operations

A total of 1,695 acceptable silver proof coins and 3,733 acceptable
silver uncirculated coins were produced during the quarter ending June
30, 2000, representing reject rates of 15% and 3% for the proof and
uncirculated coins respectively.

***[LIBRARY OF CONGRESS BICENTENNIAL]{.underline}***

# 

## Program Highlights

![](media/image3.png){width="3.2in" height="2.1805555555555554in"}

To commemorate the bicentennial of the Library of Congress on April 24,
Congress authorized the production of 500,000 silver dollars and 100,000
gold \$5 coins. Legislation permits substituting 200,000 \$10
gold-and-platinum coins for the gold \$5, and we exercised the option to
strike the Nation's first bimetallic commemorative coin. Designs
finalized and reviewed by the Citizens Commemorative Coin Advisory
Committee (CCCAC) and the Commission of Fine Arts depict the Library's
Thomas Jefferson Building. Surcharges will be paid to the Library of

Congress Trust Fund Board for bicentennial programs, educational
outreach and other activities of the Library of Congress.

## Marketing Activities 

Available April 24, 2000, the Library of Congress silver dollar and
bimetallic ten-dollar commemorative coins offer collectors the
opportunity to enhance their collection with "The Coin of Many Firsts".
So titled, this program introduces the first U.S. Mint commemorative
coins of the 21^st^ century as well as the first commemorative coins to
honor a library. The ten-dollar coin is the first gold and platinum
bimetallic coin struck by the United States Mint. Promotional mailings
targeted high potential customer segments identified within the U.S.
Mint customer database. Additional mailings were directed towards
affinity listings provided by the Library of Congress including donors
to the Library, recipients of the monthly *Calendar of Events,* and the
Music Division's annual concert season program. A mailing of 3.5 million
inserts with IRS refund checks generated an additional \$225,000 in
revenue.

The bimetallic coin was featured on the "Rosie O'Donnell Show" along
with American Eagle platinum coins. A follow-up contact is planned for
this fall to pursue featuring the Library of Congress coins on the show
once more. The Mint staffed two sales locations at the April 24 launch
event at the Library. Record-breaking on-site sales included a total of
2,764 silver dollars and 336 bimetallic \$10 coins. Additional
promotional support was provided through the distribution of 15,000
posters of the coins at the annual American Library Association (ALA)
conference in July. Brochures were developed for distribution at the
launch event, for Library mailings and for the Library's Visitors'
Center. In addition, the coins will be prominently featured within the
Mint's fall catalog and at the annual American Numismatic Association
(ANA) conference in August.

## Analysis of Financial Position

As of June 30, 2000, sales of nearly 249,000 coins were realized
generating revenues exceeding \$13.4 million, including surcharges of
nearly \$2 million. Estimated profits of \$2.2 million exceed potential
unrecovered expenses of \$309,128. Cost of goods sold totaled
\$6,284,286. Selling, general & administrative expenses equaled
\$2,925,074.

## Manufacturing/Packaging Operations

A total of 27,350 acceptable bimetallic proof coins and 8,246 acceptable
bimetallic uncirculated coins were produced during the quarter ending
June 30, 2000, representing reject rates of 40% and 11% for the proof
and uncirculated coins respectively. A total of 168,535 acceptable
silver proof coins and 44,124 acceptable silver uncirculated coins were
produced during the quarter ending

June 30, 2000, representing reject rates of 6% and 4% for the proof and
uncirculated coins respectively. The unusually high reject rate for the
bimetallic proof coins can be attributed to difficulties encountered in
the production of a bimetallic coin, which represents a new minting
technology for the U.S. Mint.

***[LEIF ERICSON MILLENNIUM]{.underline}***

## 

## Program Highlights

The second and final U.S. commemorative coin program of 2000, the Leif
Ericson Millennium Commemorative Coin Program commemorates the 1000-year
anniversary of Leif Ericson's voyage to the New World in 1000 A.D.
Public Law 106-126 authorizes the issuance of up to

500,000 U.S. silver dollars in conjunction with the issuance of an
Icelandic 1000 krónur

silver coin. Surcharges will be paid to the Leifur Eiriksson Foundation
for the purpose of funding student exchanges between students of the
United States and students of Iceland.

![](media/image4.png){width="4.166666666666667in" height="3.125in"}This
program represents an historic "first of its kind" for the U.S. Mint
commemorative coin program -- providing collectors with the opportunity
to purchase jointly issued domestic and foreign commemorative coins. The
silver dollar and 1000 krónur silver coin, designed by the U.S. Mint and
the Republic of Iceland respectively, each portray a heroic
representation of Leif Ericson on the obverse. The reverse of the U.S.
coin depicts his Viking ship under full sail. The reverse of the
Icelandic 1000 krónur portrays the eagle, dragon, bull and giant from
the Icelandic Coat of Arms. By request, the U.S. Mint will produce and
market the Icelandic 1000 krónur silver coin on behalf of the Governors
of the Central Bank of Iceland. A mintage limit of 500,000 was
established for the U.S. coin, which will be available in both proof and
uncirculated condition. A mintage limit of 150,000 coins was established
for the Icelandic krónur, available in proof silver only.

## Marketing Activities 

## 

## The Leif Ericson Millennium Commemorative Coins became available by mail June 21, and online at [***www.usmint.gov***](http://www.usmint.gov/) on June 26.

## 

## Analysis of Financial Position

This commemorative coin program was launched June 21, ten days prior to
the end of the third quarter. Normal program start-up costs of
approximately \$500,000 were incurred in the third quarter, which we
fully expect will be offset by revenues from sales beginning in the
fourth quarter FY 2000.

## Manufacturing/Packaging Operations

A total of 17,021 acceptable proof silver dollars and 3,481 acceptable
uncirculated silver dollars were produced during the quarter ending June
30, 2000, representing reject rates of 3% and 2% for the proof and
uncirculated coins respectively. A total of 6,827 acceptable Icelandic
proof 1000 krónur were produced during the quarter, representing a
reject rate of 11%. The proof 1000 krónur design proved difficult in its
production. In addition to problems with metal flow, the higher reject
rate for the Icelandic coin can be attributed to production errors not
commonly encountered in the production of U.S. commemorative coins.

***[U.S. CAPITOL VISITOR CENTER -- FY 2001]{.underline}***

Authorized by Public Law 106-126, the ***U.S. Capitol Visitor Center
Commemorative Coin Program*** commemorates the first convening of the
Congress in the Capitol building. Mintages of 100,000 gold or 200,000
bimetallic coins; 500,000 silver dollar coins; and 750,000 clad
half-dollar coins have been established. Surcharges from the sale of the
coins will go toward the construction, maintenance and preservation of a
Capitol Visitor Center. The program is scheduled to launch in January
2001.

***[CONCLUSION]{.underline}***

The third quarter has experienced a number of numismatic "firsts" within
the Mint's Commemorative Coin Program. This quarter witnessed the
introduction of the first U.S. Mint bimetallic commemorative coin with
the issuance of the Library of Congress gold and platinum ten-dollar
proof coin. In addition, the launch of the final commemorative coin
program for 2000 took place late in the quarter with the introduction of
the Leif Ericson Millennium Commemorative Silver Dollar and 1000 Krónur
Silver Coin. This program represents another historic first -- the joint
issue of a domestic and a foreign commemorative coin. Commemorative Coin
Program revenues of nearly \$22 million were reported through the third
quarter of FY 2000.