Despite the many unsold 1926-S half dollars still in the government's hands, the Association sought the issuance of 1927-dated half dollars; this was refused by the Treasury Department (of which the Bureau of the Mint was a part) due to the backlog.
The Association sought to have 1927-dated half dollars issued despite the government holding unsold 1926-S half dollars, and the Treasury Department's refusal was due to a backlog in their operations.