an unknown coin. The Act of February 21, 1853, in effect demonetized silver and committed the country to gold as a single standard. The silver-mining interests came to realize what had occurred in the 1870s, and the ensuing quarter century of political and monetary history was filled with their voluble protests. There was a constant bitter struggle for the return to bimetallism.
From an economic point of view, the abundant supply of gold was responsible for a steady decline in gold prices worldwide. This brought about a gradual business depression in the United States, particularly in the South and Midwest. Private silver interests influenced great sections of the West for bimetallism as a remedy for the failing price level. Worldwide adoption of bimetallism might have improved economic conditions; but, had the United States alone proceeded to place its money on a double standard at the old 16-to-1 ratio, the situation would only have worsened.
Of particular importance to collectors were those features of the Law of 1873 that affected the statuses and physical properties of the individual coins. The weights of the half dollar, quarter, and dime were slightly changed, and arrows were placed at the date for the ensuing two years to indicate the differences in weight. Silver three-cent pieces, half dimes, and two-cent pieces were abolished by the act, and the manufacture of minor coins was restricted to the Philadelphia Mint.
The short-lived twenty-cent piece was authorized March 3, 1875. It was created for the Western states, where the Spanish “bit” had become equivalent to a U.S. dime. The five-cent piece did not circulate there, so when a quarter was offered for a “bit” purchase, only a dime was returned in change. The so-called double dime was frequently confused with the quarter dollar and was issued for circulation only in 1875 and 1876.
On February 28, 1878, Congress passed the Bland-Allison Act, which restored coinage of silver dollars. It required the Treasury to purchase at market price two to four million dollars’ worth of silver each month and to coin it into silver dollars at a ratio to gold of 16 to 1. Proponents of “free silver” contended that with more money in circulation, workers would receive higher wages. Business leaders argued for the gold standard and against free silver because they believed that inflation would cheapen the value of money. The act was called by some “a wretched compromise.”
The North and East so avoided the silver dollars that the coins did not actively circulate there and eventually found their way back to the Treasury, mostly through tax payments. Treasury Secretary Daniel Manning transferred ownership to the people and the coins were specifically earmarked as backing for Silver Certificates.
The Bland-Allison Act was repealed in 1890 and the Sherman Silver Purchase Act took its place. Under this new law, 4,500,000 ounces of silver per month could be paid for with Treasury Notes that were to be legal tender, and redeemable in gold or silver dollars coined from the bullion purchased. Important in this case was the fact that the notes were constantly being redeemed for gold that mainly was exported. The measure was actually a government subsidy for a few influential silver miners, and as such it was marked for failure. It was hastily repealed. The Bland-Allison Act and the Sherman Act added a total of 570 million silver dollars to the nation’s monetary stocks.
The Gold Standard Act of 1900 again gave the country a single standard, but reaffirmed the fiction that the silver dollar was a standard coin. It still enjoyed unlimited legal-tender status, but was as much a subsidiary coin, practically speaking, as the dime, for its value in terms of standard gold, even before the gold-surrender executive order several decades later, was far below its face value.
The silver dollar struck from 1878 to 1921 is named for its designer, U.S. Mint engraver George T. Morgan.
The lapse in silver dollar coinage after 1904 and until 1921 was due to lack of silver. Legislation authorizing further metal supplies for silver dollars was not forthcoming until 1918, when the Pittman Act provided silver for more dollars.
Prior to March 1933, the metallic worth of U.S. gold coins was equal to their face value. In order to encourage a steady flow of gold to the mints, the government (with the exception of the period 1853–1873) had adopted a policy of gratuitous coinage. The cost of converting gold into coin had generally been considered an expense chargeable to the government.
In practice, the Mint made fine bars for commercial use, or mint bars for coinage, at its discretion. The bars in later years were stored in vaults and Gold or Silver Certificates issued in place of the coins.
On April 5, 1933, President Franklin Roosevelt issued an order prohibiting banks from paying out gold and Gold Certificates without permission, and gold coins were thus kept for reserve purposes. The law was intended to stabilize the value of gold. In effect, it removed all gold from circulation and prevented it from being hoarded. Gold imports and newly mined domestic gold could be sold only to the government. Today, gold bullion and coins may be collected and saved by anyone, as all restrictions were removed on December 31, 1974.
Under the Coinage Act of 1965, the compositions of dimes, quarters, and half dollars were changed to eliminate or reduce the silver content of these coins because the value of silver had risen above their face values. The replacement “clad” dimes and quarters were composed of an outer layer of copper-nickel (75%-25%) bonded to an inner core of pure copper. Beginning in 1971 the half dollar and dollar compositions were changed to that of the dime and quarter. All silver clad coins have an outer layer of 80% silver bonded to an inner core of 21% silver, for a total content of 40% silver.
By the Law of September 26, 1890, changes in designs of United States coins cannot be made more often than once every 25 years without congressional approval. Since that date, there have been design changes in all denominations, and there have been many gold and silver bullion and commemorative issues. In 1999, programs were started to honor each of the individual states and territories, and various national parks, by using special designs on the reverse of the quarter. The one-cent, five-cent, and dollar coins have also undergone several design changes. These factors, and a growing awareness of the value and historical importance of older coins, are largely responsible for the ever-increasing interest in coin collecting in the United States.
MINTS AND MINTMARKS
Mintmarks are small letters designating where coins were made. Coins struck at Philadelphia before 1979 (except 1942–1945 five-cent pieces) do not have mintmarks. Starting in 1979, a letter P was used on the dollar, and thereafter on all other denominations except the cent. Mintmark position is on the reverse of nearly all coins prior to 1965 (the cent is an exception), and on the obverse after 1967.
C—Charlotte, North Carolina (gold coins only; 1838–1861)
CC—Carson City, Nevada (gold and silver coins only; 1870–1893)
D—Dahlonega, Georgia (gold coins only; 1838–1861)
D—Denver, Colorado (1906 to date)
O—New Orleans, Louisiana (gold and silver coins only; 1838–1861; 1879–1909)
P—Philadelphia, Pennsylvania (1793 to date; P not used in early years)
S—San Francisco, California (1854 to date)
W—West Point, New York (1984 to date)
Prior to 1996 all dies for United States coins were made at the Philadelphia Mint. Some dies are now made at the Denver Mint. Dies for use at other mints are made with the appropriate mintmarks before they are shipped to those mints. Because this was a hand operation prior
