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Lot 1074: [ Coins ] Trade Dollars 1878-CC T$1 MS65 PCGS. The Coinage Act of 1873 damned the silver dollar by omission rather than commission, removing it from the list of authorized coinage denominations and effectively denying its legal tender status.

Est: $0 USD - $0 USDSold:
Heritage AuctionsJanuary 03, 2007Dallas, TX, US

Item Overview

Description

[ Coins ] Trade Dollars 1878-CC T$1 MS65 PCGS. The Coinage Act of 1873 damned the silver dollar by omission rather than commission, removing it from the list of authorized coinage denominations and effectively denying its legal tender status. Powerful Western silver interests, however, supported the unlimited coinage of silver, and the Crime of '73 propelled the formation of the Free Silver movement. Among the factions who aligned to support increased silver coinage were the Western silver mining interests, farmers who hoped that an expanded currency would increase crop prices, and debtors who hoped they could repay their debts in depreciated currency. While anyone could purchase Trade dollars from the Mint by exchanging 378 grains of silver, that amount in 1873 was worth $1.022 in gold. A coining fee was levied in addition, making Trade dollars no bargain. As silver prices continued to trend downward, however, Trade dollars gained in attractiveness to bullion depositors. Others protested the then- overvalued Trade dollars, and in 1876 the Treasury revoked their legal tender status for domestic commerce. Rusty Goe's The Mint on Carson Street continues the story thusly: This stripped bullion depositors of their domestic profit-making opportunities, although there were still advantages from exportation. In general, the public was baffled by trade dollars, and exploitation permeated the country. Unwary merchants and consumers were assured by licentious brokers that trade dollars were worth one dollar in gold, or close to it. Then, upon attempting to use them for payment, merchants and retail customers alike were subject to losses due to discounting. Finally, in October of 1877 a proposal was made to discontinue further issuance of trade dollars; but since orders were pending for more trade dollars to be exported to China, the authorization to cease production did not come until

Auction Details

Coins

by
Heritage Auctions
January 03, 2007, 06:00 PM CST

2801 W. Airport Freeway, Dallas, TX, 75261, US