Why Penny Press Machines Are Legal While Defacing US Currency Isn't
Have you ever wondered why it is unlawful to deface US currency but it’s perfectly acceptable to use penny press machines? This intriguing question delves into the legal distinctions between coins and paper money, exploring the reasons why one act is prohibited while the other is not. Let’s dive into the details.
Understanding the Legal Distinction
The key lies in how US law defines and treats coins versus paper money. Unlike paper currency, which is subject to specific laws against defacement that prohibits any alteration that renders it unfit for reissue, coins are treated differently. There’s no explicit ban on altering coins, provided you aren’t attempting to defraud anyone through the process.
Legal Provisions and Penalties
US Code 18 U.S. Code § 331: This section of the US code specifically prohibits the defacing of Federal currency. The law states that ‘Whoever defaces, mutilates, cuts, disfigures, counterfeits, or alters any bank bill, draft, note, or other security or Federal currency, whether or not the same isregistered or a bearer security, so as to render the same unfit to be reissued, shall be fined under this title or imprisoned not more than one year, or both.’
It is important to note that the language of the law includes the word ‘fraudulently.’ This means that unless you are attempting to defraud someone by altering and using the currency, you won’t face legal repercussions. Altering a coin, however, is not directly mentioned under this statute. Instead, it falls under a broader set of regulations that allow for almost any alteration of coins, as long as you do not melt them down.
Historical Legal Interpretations
There have been very few cases where individuals have been prosecuted for defacing US coins. In fact, the notion that only one case has been prosecuted throughout US history suggests that this issue does not often come to legal attention. This indicates that, while altering coins is not illegal, the practice remains rare due to the lack of enforceable laws against it. The concept of defacing coins and concealing their altered state is not as straightforward as altering paper money.
Practical Implications of Alterations
While it is technically legal to alter coins through penny press machines, the practical implications of doing so must be considered. For instance, hammering a nickel until it becomes thin, or punching out a dime-sized core, is a form of alteration. However, unless you try to pass this altered nickel as a dime, you haven’t broken any laws.
Similarly, pressing a penny with your lover’s name is also allowed, provided you do not attempt to use it as money. Altering a coin for artistic or sentimental purposes is perfectly legal, but attempting to use such coins in commerce could lead to legal trouble.
Why Penny Press Machines Aren't Prohibited
The key reason penny press machines are legal is that they do not involve melting the coins. The machines create novelty coins by reducing the thickness of the original coins, but they do not alter their intrinsic value in a way that would make them unfit for reissue. This aligns with the existing legal framework that allows for such alterations as long as the coins are not melted down.
It’s worth noting that the ability to melt down various coin types varied at different points in US history. Prior to 1968, it was illegal to melt down silver coins. However, this law was repealed in 1968, making it easier to create novelty coins without running afoul of melting laws.
Conclusion
The legal distinction between defacing US currency and altering coins lies in the wording and specific provisions of US code. While altering coins is legal as long as it’s not carried out with fraudulent intentions, the same does not hold for paper money. Penny press machines, which create novelty coins without melting them, are perfectly legal under current US law.