Getting Into General Circulation : Coins: American Numismatic Assn. president suggests new commemoratives be put out with regular money.

If, as many people believe, most Washington policy is made on the cocktail-party circuit, then Edward C. Rochette picked the proper forum to float a proposal for revamping the U.S. commemorative-coin program.

It’s no secret that many coin collectors are unhappy with the program, citing the plummeting values of recent commemoratives and the eagerness of Congress to funnel millions in coin surcharges to their favorite projects. So when Rochette, president of the American Numismatic Assn., one of the largest collector organizations, spoke at a recent reception in the nation’s capital, his idea commanded attention.

Why not, Rochette argued, place uncirculated versions of new commemorative coins, typically clad half-dollar coins, in general circulation, instead of selling these coins to collectors? Commemorative coin sales should be restricted to proof-quality coins, typically gold and silver coins that sell for much higher prices, he said.

Placed in circulation, Rochette declared, the clad coins would become “billboards in miniature, promoting the cause of issue far better” than the mint’s advertising campaigns have done. This would spur interest in coin collecting among the general public, which often is unaware of the variety of new commemoratives coming from the mint.

Another plus, Rochette said, is that the cost of producing the clad commemoratives would be far less than the coins’ face value. That difference--known as seigniorage --could provide as much funding as would the loss of surcharges on the sales of the coins to collectors, he said.

As radical as the idea sounds, it is not without precedent. During the national Bicentennial in 1976, the reverses of quarters, half dollars and silver dollars were changed to mark the event and those coins were placed in general circulation.

This year Canada is using its circulating coins to highlight the nation’s 125th anniversary. A dozen quarters were struck, one for each of the country’s provinces and territories, and a commemorative dollar was produced to replace temporarily the “Loonie” dollar, a coin that depicts a loon.

The project, called Canada 125, has been judged a huge success by the Royal Canadian Mint. “In fact, it has been so popular that a common question expressed to me is, ‘Where are these coins?’ ” said Paul Dick, the Canadian minister of supply and services.

The Canadian mint has produced more than 100 million of the commemorative coins and the new coins are being stashed away as quickly as they are being released. Based on the demand for complete sets, Dick has announced that the mint would sell complete sets of the coins, in brilliant, uncirculated condition and mounted on a map of Canada, for $17.25 (Canadian).

With the cooperation of Canadian bankers, schools are being offered the coin sets at discount prices to resell to the public as a fund-raising project. The sales through school groups are expected to begin in January, a month after the last quarters in the series are released.

Part of the success of the Canadian program has been the national design competition for the coins and the introduction of each province’s quarter in special ceremonies. Each winning artist gets a $5,000 prize, plus the honor of having his or her initials engraved on the design.

The Canadian project seems to validate what Rochette was suggesting as a way of boosting sales of U.S. commemoratives and expanding coin collecting. In August, the American Numismatic Assn., citing the falling prices for U.S. commemoratives, cautioned that the new U.S. commemoratives should not be purchased as “investments.”

“The investment potential of current commemorative coins will be best realized when they become family heirlooms to be cherished by future generations as evidence of support of a meaningful cause,” Rochette declared.

The ANA official was careful not to clash directly with Congress, which has expanded the number of commemorative-coins issues in recent years.