‘NMI did not authorize anyone to mint legal tender coins’

The CNMI government is looking into reports that a U.S. company is widely advertising a silver coin commemorating the World Trade Center in a manner that may mislead the public that the coin can be used for legal tender.

The CNMI government maintained that it has no authority to mint legal tender coins.

The National Collectors Mint Inc., which has been marketing the “2004 ‘Freedom Tower’ Silver Dollar,” is the same company that previously made a misleading advertisement on 1933 Gold Double Eagle mint coins bearing the name and seal of the CNMI.

This time, National Collectors Mint Inc. claimed that the Freedom Tower coin was created using silver from Ground Zero, the site where the World Trade Center towers fell Sept. 11, 2001.

Steven Newman, Gov. Juan N. Babauta’s legal counsel, said he had tasked SoftSky, the company it had authorized to mint commemorative coins bearing the name or representation of the Commonwealth, to look into National Collectors Mint’s misleading advertisement.

SoftSky had subcontracted National Collectors Mint to manufacture the 1933 Gold Double Eagle coins. Newman said the CNMI government was still uncertain if National Collectors Mint has a similar role in advertising the Freedom Tower coins.

“It’s [SoftSky’s] responsibility to ensure that the party he contracts…abide by our agreement,” Newman said. “They [SofySky representatives] can’t go beyond the scope of our agreement.”

Newman said he sent an electronic mail to SoftSky president Joseph Hartman to possibly correct a misleading advertisement by National Collectors Mint.

National Collectors Mint has been marketing the Freedom Tower coin as the first “legally authorized government issue silver dollar…to commemorate the World Trade Center and the new Freedom Tower.”

The advertisement prompted the U.S. Mint to issue a public statement disclaiming the advertisement of National Collectors Mint, saying that the company is not connected with it.

U.S. Mint is the only government entity authorized to mint legal tender coins in the United States.

In a recent news release, the U.S. Mint said advertisements for the Freedom Tower product appear confusing because the company uses phrases such as “legally authorized government issue,” “U.S. territorial minting,” and “silver dollar.” The product itself also may be confusing because it bears the inscription, “In God We Trust,” which Congress requires on all United States coins, and the inscription, “One Dollar.”

The U.S. Mint stressed that Congress has the exclusive power to coin money. It said Congress has delegated its authority to mint and issue coins to the Secretary of Treasury, and that Congress requires the Secretary to carry out these duties at the U.S. Mint.

The CNMI government had earlier issued a similar statement, saying that even the Commonwealth government does not have the authority to mint legal tender coins.

The CNMI has been earning royalties from its agreement with SoftSky, which had already given the local government at least $50,000 from proceeds of manufacturing and sale of commemorative coins using the name of the Commonwealth.

Hartman earlier said the CNMI government would receive royalty fees from time to time, as his company plans on expanding the market of the CNMI commemorative coins.

Besides advertising the Double Eagle coins in the U.S., Hartman had said SoftSky would market the coins in Europe—particularly Germany, which has historical ties with the Northern Marianas—Japan, and China.

Sometime in July, Hartman said his company has manufactured some 5,000 CNMI coins so far. He said SoftSky plans to manufacture not only 1933 Gold Double Eagle mint coins bearing the name and seal of the CNMI, but also other emblems.