Crossposted at Politicook.net
Last time we were beginning to enter the "modern" era of US coinage. We shall complete that transition this time, and put us into the early modern era, which I define as until 1933. Next time we shall try to get to the present. Even though coin design is similar to the early modern era, many things have changed and this diary would be much too long if we tried to take it in one chunk.
The next significant coinage act in Congress after the Act of 1864 was the Act of 1871. This Act really did not do too much except declare that token coins (1, 2, 3, and 5 cent) could be traded on par with silver in lots of $20 dollars face value. It mainly was for the relief of merchants who had small coins running out of their ears that were not considered fully legal tender. It had little effect in the grand scheme of commerce, just opened up storage space in shops.
Unlike the Act of 1871, the Act of 1873 had huge ramifications in commerce. The Act of 1873 was a revolutionary change in how US monetary policy worked, and the effects were wide and long lasting. The Act eliminated the silver dollar (remember that the silver dollar had been designed to be pegged to gold, and the smaller silver coins were subsidiary), and replace it with what was called the "Trade Dollar". The Trade Dollar was intended to be used for overseas commerce, especially in Asia, and had actually more silver than the US silver dollar had had, but just by a fraction. Due to that oversight, that caused Trade Dollars to be worth more than an equivalent face value of gold, and so market instability once again occurred. In fact, the Trade Dollar is the sole US coin ever to have its legal tender status revoked within the US borders, although it still was used for foreign trade.
Another consequence was that, with the demonetization of silver, gold became the absolute single standard, since silver was no longer pegged to gold. You have to remember that people did not trust the government to do right thing in those days (sounds familiar, huh?) and wanted "specie", real precious metal, in their coins of a known value. Commerce was immediately affected adversely, because there simply was not enough gold available and silver coins had an actual value less than their face value, so the big money interests had no interest in silver. A general depression followed as deflation ensued. Actually, this was a no-win situation as was discussed in previous installments because of the market fluctuations in the difference in price in gold and silver. The situation rapidly deteriorated. The silver content in subsidiary coins was increased by a tiny amount, and the the 2 cent, and the silver 3 and 5 cent coins were discontinued.
Things got so bad that a new Act, the so called "Bland-Allison Act" was passed in 1878. This once again monetized silver, and mandated the coinage of silver dollars at a 16:1 gold:silver value ratio at the rate of 2 to 4 million dollars a month. The problems discussed in previous installments began all over again. The silver dollar became very unpopular, in part because of their large size, and went back to the Treasury as people did not want to carry them, but rather preferred gold. At this time, the first issue of paper silver certificates was made. This was the first time that Americans began to become comfortable with paper money since the debacle after the Civil War.
This approach sort of quieted the markets for a while, and in 1890 the approach was expanded by the so called "Sherman Act" which provided that the Treasury could buy silver for notes redeemable in either gold or silver. Well, the large silver producers promptly traded silver for notes, then traded the notes for the same face value in gold, and sent it out of the country, again reducing the number of coins in circulation. That provision was repealed, but the effect was to replace much of the circulating gold with silver. It amounted to a bailout for the big silver producers, and as most bailouts do, it had unintended consequences, this time removing gold from circulation. Even though the Congress repealed that part pretty quickly, speculators move at warp speed compared with Congress.
In 1900 Congress once again put the United States on the gold standard, but there was a curious provision that the silver dollar was a standard coin. No one believed it, and silver dollars were then thought of as a subsidiary coin, like dimes, quarters, and half dollars. As a result, not many silver dollars were coined since no one really wanted them. As a matter of fact, none were minted from 1905 until their return in 1921. Dimes, quarters, and halves were coined and used for normal business change operations, with either gold or paper money for higher denominations.
Coin design rapidly evolved during this era. The old "Indian Head" cent was replaced by the familiar Lincoln cent in 1909. (Actually, both were struck in 1909, is it is not uncommon to have more than one design struck in the same year). According to the designer, the "Indian Head" was actually a depiction of Liberty with a feathered headdress. The Lincoln cent was intended to be a commemorative coin to celebrate his 100th birthday, but it caught on and became very popular. It was also the first US regular strike coin to feature an actual person, and this set a precedent that only very recently has been excepted . Here are pictures of the old and the new. Both are the same size, weight, and composition as pre-1952 cents: 19 mm diameter, 3.11 grams, 95% copper, 3% tin, and 2% zinc (in 1952 the alloy was changed to 95% copper and 5% zinc). A pre 1982 cent is worth (neglecting the tin and zinc) 2.096 cents at today's copper price.
1 cent,
Liberty in a
feathered Headdress,
designed by James B. Longacre
1864 - 1909
1 cent,
Lincoln Wheat Ear,
designed by Victor D. Brenner
1909 - 1958
The nickel five cent piece has been of the same size, weight, and composition since it started in 1866, and our current ones are the same specifications. They are 20.5 mm diameter, 5 grams, 75% copper and 25% nickel. The Shield variety was first, and both Shield and Liberty pieces were struck in 1883.
By a horrible accident (some say contrived), a few Liberty pieces were struck with a 1913 date, and the latest figures that I have show one selling for $3 million in 2001. The first part of the issue in 1883 (the picture here) did not have the word "CENTS" on the reverse, just the Roman numeral "V". A deaf mute swindler gold plated some of them, since they were very close to the size of the current $5 gold piece. He was tried and acquitted of theft because his attorney argued that he only used them to purchase items worth less than five cents, and if the merchant chose to give him change for five dollars he could not speak to protest. The jury agreed. The Mint immediately added the word "CENTS" under the apex of the "V" later in 1883, so both varieties exist.
The Indian Head (often referred to as the "Buffalo") five cent piece began in 1913 and was the first non-gold US coin to have neither a representation of Liberty or a specific person featured on it. (The Indian Head quarter and half eagles that first were struck in 1908 were the first US coins with this distinction). The designer indicated that images of three different native Americans were composited for the rendering. Whilst it is a very attractive coin, it was poorly designed from a technical standpoint, because the date is very prone to wear. A modern coin with a worn off date is worth exactly face value, with the notable exception below. Both this coin and the Jefferson piece were minted in 1938, but we cut this discussion at 1933, so no picture.
All nickel five cent pieces are worth almost as much in metal now than face value. They are 21.2 mm in diameter, weigh 5 g, and are 25% nickel and 75% copper. At today's metal prices, that works out to 2.105 cents in nickel and 2.661 in copper, for a total of 4.766 cents. Here are some pictures of them:
5 cent Shield,
designed by James B. Longacre,
1866 - 1883
5 cent piece,
Liberty Head,
designed by Charles E. Barber,
1883 - 1912
5 cent Indian Head,
designed by James E. Fraser,
1913 - 1938
Ten cent pieces, or dimes, evolved a great deal from 1873 to 1933. For the Seated Liberty one, the size and weight varied slightly over the years per our discussions here and in previous posts due to the gold/silver situation. By 1873 the specifications were the same for modern silver dimes.
In 1892 the Liberty Head design was adopted, often called the "Barber" dime after its designer. There was no overlap between the two designs, so there are no 1892 Seated Liberty dimes.
The Winged Liberty Head dime was adopted in 1916, as the Liberty Head design was being decommissioned. There are specimens of both designs for 1916, unlike the five cent piece situation of 1913. This design is often called the "Mercury" dime because of the resemblance of Liberty in a winged cap to the Roman god. The designer indicated that the wings were to indicate freedom of thought. Interestingly, on the the reverse is a fasces, a symbol from ancient Rome to indicate unity. Not too many years later Benito Mussolini would adopt that symbol for his new nationalist movement, and now the word "fascist" has taken on a whole new meaning.
Since 1873 all of these coins are 17.9 mm in diameter, have a mass of 2.5 grams, and are 90% silver and 10% copper, giving a silver content of 0.07234 ounces Troy of pure silver. According to Bloomberg.com, that was worth 99.8 cents today. Here are some pictures:
Dime,
Seated Liberty,
designed by Christian Goldbrecht
1837 - 1891
Dime,
Liberty Head
designed by Charles E. Barber
1892 - 1916
Dime,
Winged Liberty Head
designed by Adolph A. Weinman
1916 - 1945
Quarter dollars are likely the most popular current coin, and they have always been popular, if people could get them. The Seated Liberty one was coined from 1838 until 1891, with variations in size and silver content. By 1873 the modern size, weight, and composition was used.
In 1892 the Liberty Head quarter was adopted, just like the dime. There was no overlap in design over 1891 and 1892.
In 1916 the Standing Liberty design was adopted, but some Liberty Head ones were minted with that date as well. The original design (the one in the picture) was extremely controversial, because Liberty had a bare breast. By 1917 she got covered up (reminds me of John Ashcroft for some reason), but there are both varieties in 1917. I personally find this to be a very attractive design, in either variety.
In 1932 a commemorative quarter was authorized to recognize the bicentennial of George Washington’s birthday. This was the second coin to feature an individual person on US coins. This proved to be a popular coin, and, with a few modifications, is still the one that we use. After the 50 States series is done, the original plan was to revert to the traditional design, but who knows? Just as long as there is not a Reagan one I will be OK with it.
All quarters since 1873 are the same in size, weight, and composition (remember, we are only going up to 1933 here). They are 24.3 mm in diameter, have a mass of 6.25 grams, and are 90% silver and 10% copper, which works out to 0.18084 ounces Troy of fine silver. Once again, Bloomberg says that, as of today, that is worth about $2.47 in silver.
Here are some pictures of the evolution of the quarter:
Quarter,
Seated Liberty,
designed by Christian Goldbrecht
1838 - 1891
Quarter,
Liberty Head,
designed by Charles E. Barber,
1892 - 1916
Quarter,
Standing Liberty,
designed by Herman A. MacNeil,
1916 - 1930
Quarter,
Washington,
designed by John Flanagan,
1932 - present with variations
The half dollar was never very much a popular coin, and many specimens in excellent condition are available, since many of them were just sewn into bags and used for bank transactions. The Seated Liberty one was used, in different weights and sizes, from 1839 to 1891.
In 1892 that design was replaced with the Liberty Head one, and that one was struck until 1915. There was no overlap in design in 1892.
In 1916 the fabulous Walking Liberty design became current. In my opinion, this was the most beautiful silver coin ever minted in the United States. It is a striking coin, both in heft and artistic expression. This is the only picture that I am posting large, and it does not do it justice. Go to a coin shop and see a nice one for yourself. The obverse design is now used on the dollar bullion strikes. It is truly a classic. Just beautiful.
Since 1873, all half dollars are the same in specifications. They are 30.6 mm in diameter, have a mass of 12.50 grams, and are 90% silver and 10% copper. That works out to 0.36169 ounces Troy of fine silver, which is worth, again according to Bloomberg, $4.94 in silver. Please do not let me catch you melting down one of these beauties!
Here are some pictures of half dollars:
Half dollar,
Seated Liberty,
designer Christian Goldbrecht,
1839 - 1891
Half dollar,
Liberty Head,
designer Charles E. Barber,
1892 - 1915
Half dollar,
Liberty Walking,
designed by Adolph A. Weinman,
1916 - 1947
As I indicated in the text of the this and the past few posts, the silver dollar has a very brutal history in the United States, and I think that this historical memory may have something to do with why we hate dollar coins. Nevertheless, some of them are pretty.
The Seated Liberty dollar is representative of similar designs. It changed size and weight several times depending on the whims of Congress and the market. By 1873, it had the same composition that other silver dollars had until the end.
The Morgan dollar was of the same specifications as the Seated Liberty one. There is no possibility of overlap in design years, since there was a break in minting silver dollars between the two.
The Peace silver dollar is another beautiful US coin. The Morgans were minted into 1921, and the Peace ones began there, so there is overlap. Many more Morgans were minted than Peace ones in 1921, so a 1921 Peace is rather unusual. Interestingly, several hundreds of thousands of them were struck in 1965, dated 1964. They were decommissioned and melted, and even the Smithsonian does not have a specimen. There are rumors that some were stolen and so still exist, but anyone in possession of one likely will go to Gitmo if found.
Since 1873, all standard silver dollars are the same in specifications. 38.1 mm in diameter (they are BIG coins), 26.73 grams in mass, and 90% silver/10% copper alloy. This amounts to 0.77344 ounces Troy of pure silver, worth about $10.56 today. Note that a silver dollar has more silver than two fifty cent pieces, and so is worth more than twice as much. That is because silver dollars were "standard" money, pegged to gold in theory, whilst smaller coins were subsidiary.
Here are some pictures of silver dollars:
Dollar,
Seated Liberty,
designed by Christian Goldbrecht,
1840 - 1873
Dollar,
Liberty Head (Morgan),
designed by George T. Morgan,
1878 - 1921
Dollar,
Peace,
designed by Anthony Di Francisci,
1921 - 1935 (with caveat above)
Finally, there is the Trade Dollar. It was just a little larger in silver content than the domestic one, and is the only coin in US Mint history to carry a guarantee as to content struck on it. It was the experiment by the Administration, along with the Congress, to dominate world trade. Like most schemes, it backfired. Not a whole lot of them were made, and this issue has the dishonor of being the only legal coin ever renounced by the government. It was minted to compete in Asia with the Mexican "dollar", which had a bit more silver in it than ours did. Even in 1873 we were trying to replicate the Spanish dollar, the model for ours. This did not end well. There is more upthread about it in the diary. It was 38.1 mm in diameter, weighed 27.22 grams, and was 90% silver and 10% copper, making it have 0.7874 ounces Troy of fine silver. Today it is worth $10.76 in silver.
Here is a picture of a representative sample. Many existing ones are heavily mutilated with Chinese characters on them, as they were used essentially as ledgers for account in Asia.
Dollar,
Trade,
designed by William Barber,
1873 - 1885
Well, that pretty much catches us up until 1933. Hold on to your hats if you want more. No poll tonight, just will wait for comments.
Questions, comments, slings and arrows, and tips and recs are always welcome.
Warmest regards,
Doc
Update: Our friend, mariachi mama, commented. I believe that everyone in the community will agree that is nice to see that she is well and contributing.
Update, again. The next installment will be about gold coins. I have held off on them because they are just not seen except in coin shops and in the private collections of only a few people. However, they are important, and a logical topic to take us fully to 1933, where the current diary ends. Please look for it in the next couple of days. There is quite a little research to do, so please do not expect it tomorrow night. Besides, I have to get Pique the Geek ready for Sunday. It is about forensic science.
Warmest regards,
Doc