The Infamous ‘Folsom Prison Nickel’

What follows is the text of an article which appeared in San Francisco’s The Call newspaper, March 10, 1898. 

Outside of California residents, most of the rest of the world was to first hear the name Folsom Prison in the 1955 hit song “Folsom Prison Blues” by Johnny Cash. In 1968, Johnny Cash performed live at the prison to the delight of inmates and jailers. 

BOGUS MONEY IS MADE RIGHT IN FOLSOM PRISON

Guards Surprise Convicts Busily Engaged in Coining Nickels in the Engine-Room.

SACRAMENTO, March 10. 

A counterfeiter’s layout has been discovered at Folsom within the State prison walls, the last spot on earth where one would look for the illegal minting of Uncle Sam’s coin. If there is a place in the broad universe where neither the opportunity nor demand of money arises it is within the walls of the State prison; at least such is the general impression of people who are without experience with criminals. To those who have had dealings with me sentenced to long terms of imprisonment for the commission of crime it is known that there is no passion or desire stronger than the predilection of a prisoner to carry upon his person some small amount of money. On the part of many it becomes a mania, and they will resort to all sorts of devices and any kind of a subterfuge to withhold a few pieces of coin from the Warden upon entering the prison. Secretary Smith, in speaking of this peculiarity on the part of prisoners, once said to The Call correspondent: 

You would be surprised to know what difficulty we have in securing money from the prisoners who are brought here. No second termer ever comes without an endeavor to conceal upon his person some bit of money. I have known them to have five-dollar pieces covered with cloth and sewed upon their vests as buttons. They conceal money in their hair and in their ears, and we are not always successful in obtaining possession of it. Not long ago I brought $75 worth of books for our library with money found around the prison grounds — money that had been hidden by convicts or carried in, notwithstanding the precaution we take to relieve all the prisoners of every cent they have upon their person when entering for registration .” 

But while it may not be astonishing to find this overwhelming desire on the part of convicts to conceal their spare change, there is probably no prison in the United States where the criminals successfully operated and circulated bogus coin, manufactured within the prison walls under the very eyes of the officers. For some time past Officer Charles Jally. whose station is at the rock crushing plant, has had his suspicions aroused by the peculiar conduct of some at the prisoners under his control At first he thought these whisperings and signals were carried on in the planning of some scheme to smuggle in opium. This is a very common matter at the prison, and only last week Guard Lamphry burned ten pounds of the drug which had been surreptitiously brought within the confines. After three or four days of watching Jally informed Superintendent Taylor, and both became convinced that some deeper plot was being laid, and they became more determined than ever to ascertain the cause of so much suppressed excitement among the convicts. 

Yesterday they were rewarded. Some time during the morning Jally informed Taylor  that there was something wrong in the engine room. Taylor gathered about him Guards Jally and Silak. and the three made a rush for the engine room. Convicts Cayne(sic) and Brown were encountered, and as the officers rushed in both convicts leaped through a window in the engine room and ran to the tank of the canal, which was within a short distance of the engine house. One of the guards followed them, while the others proceeded to Inspect the engine room.

As the convicts reached the edge of the canal there was a splash of muddy water. The crucible and dies they had used were forever beyond the possession of those in pursuit. The quick sands and murky waters of the American River were safe custodians of their guilt.

There were other evidences, however, and they consisted of a pile of nickels which were captured by the guard who entered the engine room. These nickels were splendid specimens of workmanship. The material out of which they were made consisted of babbiting, which is a white soft metal which forms the inside rim of the axle box found on a locomotive. This substance was taken from the engine which runs through the prison grounds and hauls the trains of crushed rock which are shipped from the prison rock crusher.

The nickels are seemingly as perfect and complete as any ever made by Uncle Sam. Many of them have been given circulation and The Call correspondent found no difficulty in procuring one of them in the town of Folsom.

How the dies and crucibles were ever made will perhaps remain a mystery. Plaster of parts molds were used, and in the engine room were found many fragments of this material.

Captain Murphy was rather reticent when asked about the affair.

It amounts to nothing,” the captain said, “and if it did I would not talk about it in the absence of the warden. I do not deem it to be best for the prison discipline to take such matters up and give them undue publicity in the papers.”

When shown one of the spurious coins the captain admitted that he had seen them, but beyond the admission he preferred to say nothing.

It is not supposed that Cayne and Brown are the prisoners who made the molds, but as there are several counterfeiters doing time in Folsom, it is probable that the devices used were made by some of them, and the coining of the counterfeit left to Cayne and Brown.

A very extensive traffic has for a long time been going on among the prisoners, and the officers have been at a loss to know where the convicts obtained the money which had been so freely circulated. The cigarette paper among the convicts is a very choice article, and they will give almost anything: to obtain a package of it. On the other hand, there has been a great quantity of opium smuggled in lately, and there is no doubt that these coins ; were being made for the purpose of paying those who sent it in from the outside, as well as exchanging them for cigarette papers.

It is a matter of some regret that the entire layout was not captured, as it no doubt would have given the officers some clew (sic) as to the means employed in obtaining it. Some of the officers think that the dies were smuggled in from the outside, while others hold that the entire apparatus was made within the prison walls. As there are many tools and furnaces available around the quarries, it is very probable that the latter theory is the correct one.

The ladle used appeared similar to those used around assaying establishments, while the crucible was crude in form, and appeared as though it had been melted into shape from railroad couplings.

There are many cars arriving every day in the yard, and it is from these that the prisoners are supplied with opium from the outside. The most wonderful devices are employed in this prohibited traffic. Opium has been found in the axle boxes of the cars, or fastened to the inside of a brake beam; in fact there is no place about a flat car that has not been used in concealing the drug.

The impression prevails among the officers that it was the intention of the convicts to coin a great quantity of nickels and then ship them out on the freight cars, where their friends on the outside could receive them in exchange for opium.

It is probable that nothing but nickels were attempted to be made for the reason that the convicts could not obtain the metal necessary to manufacture silver coins.

An 1898 Liberty “V” Nickel

The most expensive coin ever sold at auction

In June 2021 a gold coin with a face value of $20 became the most expensive coin ever sold at auction when it sold for a record $18.9 million in New York. The 1933 gold double eagle is arguably the most notorious coin in the world because, with just this one exception, it is actually illegal to own one. It is therefore, quite literally, a coin that money can’t buy.

The 1933 gold double eagle (Picture courtesy of Sotheby’s)

Added to its appeal is the fact that the design is a beautiful work of art. It was the brainchild of President Theodore Roosevelt, who was determined to put an end to coinage that was, in his words, “artistically of atrocious hideousness”. In January 1905 he invited the acclaimed sculptor Augustus Saint-Gaudens to a private dinner at the White House where the two men spoke enthusiastically about their love of the high-relief coins of ancient Greece.

President Theodore Roosevelt

The President asked the artist to design the gold double eagle, and Saint-Gaudens depicted a standing Liberty with a torch representing enlightenment in one hand and an olive branch symbolising peace in the other. Behind her is the Capitol building and rays of sunlight symbolising a new dawn. The name ‘LIBERTY’ appears above her head and the year of issue at her side. The reverse shows a side view of a majestic eagle in flight with the rays of the rising sun behind it. Above the eagle is the inscription ‘UNITED STATES OF AMERICA TWENTY DOLLARS’ and below it the motto ‘IN GOD WE TRUST’ which the public demanded to be added after Saint-Gaudens left it off his original high-relief version in 1907. A low-relief version was issued into circulation from 1907 to 1932.

Augustus Saint-Gaudens

It is ironic that the first President Roosevelt helped to create the beautiful double eagle, while the second President Roosevelt made it illegal to own one. In April 1933, President Franklin Roosevelt took radical action to stabilize the economy following the Great Depression by taking America off the gold standard. Gold was withdrawn from circulation and people were ordered to hand in any gold coins and bullion that they owned. The Mint had already struck 445,000 double eagles dated 1933. None went into circulation. Two were sent to the Smithsonian Museum and the rest were believed to have been melted down in 1937.

However, it soon transpired that a small number of 1933 dated double eagle coins had been illegally removed from the Mint. In early 1944 a Philadelphia coin dealer named Israel Switt sold ten to individual collectors. Treasury officials were alerted and tracked down the new owners to reclaim their stolen property. They retrieved nine, which were destroyed and no compensation was offered to Switt’s unlucky customers. However, they were too late to stop one from leaving the country bound for King Farouk of Egypt because it had been granted an export licence in error.

King Farouk of Egypt

Unwilling to cause a diplomatic incident by demanding the return of a coin that had been granted an official export licence, the U.S. Government waited until the Egyptian king was overthrown in 1952 before they attempted to retrieve it. However, by then it had gone missing, and it did not resurface until 1995 when a London coin dealer Stephen Fenton brought it to New York to sell to a private collector. The prospective purchaser turned out to be a government agent, and the coin was seized. A long legal battle followed. In court, Fenton argued that the Government had provided written permission for the coin to be sold when they granted the export licence in 1944.

In 2001 the courts ruled that the coin should be sold at auction with the profits split between Fenton and the Government. This particular specimen was declared legal tender, and the winning bidder had to pay a fee of $20 for its face value along with their winning bid of $6.6 million. Together with the auctioneer’s fee, this added up to a total sale price $7.6 million.

Twenty years later, the coin was sold for $18.9 million by Sotheby’s in New York, making it the most expensive coin ever sold at auction. As a result of the official export licence granted in error, it remains the only 1933 double eagle that can be legally owned by a private individual.

The world’s most expensive coin

There is a further twist to the tale. In 2003, Israel Switt’s grandson Roy Langbord found a safe deposit box that had belonged to his grandfather, which hadn’t been opened for fifty years. Inside he found a large number of gold coins, including another ten 1933 double eagles. When Langbord asked the Mint to authenticate them, they were promptly confiscated, and so he sued the government demanding their return.

Following a lengthy legal battle and appeals process, the court ruled that the coins were the property of the U.S. Government. The Langbord family appealed to the Supreme Court but in April 2017 they declined to reopen the case. Today, the ten double eagles reside in a secure government facility, most likely Fort Knox, while their ultimate fate is determined.

The ten 1933 Double Eagles are now the property of the US Government