An auction for a rare 1974 aluminum penny in Chicago on 23rd April 2014 has been postponed because the US Federal government want it back. The letter from US Treasury Department lawyer, says the US government owns the penny because it was never issued as legal tender, meaning it was never been issued as money for public circulation.
The rare 1974-D Aluminum Lincoln Cent coin owned by California rare coin dealer Michael McConnell, owner of the La Jolla Coin Shop. McConnell purchased it in September 2013 from realtor Randy Lawrence who inherited the coin decades ago from his late father, Harry Edmond Lawrence who served as Deputy Superintendent of the Denver Mint.
In 1973, the aluminium penny composed of an alloy of aluminum and trace metals was proposed by the United States Mint to replace the predominantly copper–zinc cent due to the rising costs of coin production in the traditional bronze alloy. Examples were passed out to US Congressmen in a bid to win favor in switching to the new alloy. The proposal was rejected, the Mint recalled and destroyed most of the examples.
The owner has filed a lawsuit to prevent the U.S. government from taking the rare 1974 aluminum penny from them.
The auction suppose to be held in the Heritage Signature Auction during the Central States Numismatic Society convention near Chicago, April 23 - 27, 2014. Lawrence plans to donate as much as $100,000 of his share to homeless programs. The auction has been postponed while the lawsuit is pending.
There are other non legal tender coin in private collection including a 1974 aluminum cent found by a police officer who picked up the coin in the basement of the Rayburn Office Building, after a congressman dropped the coin. The coin is graded MS-62 by PCGS and is still owned by the Toven family.
