Trade Dollars…the name says it all. It originally isn’t meant for the United States.
In a time that the United States is going through a major depression, the Panic of 1873, a new Silver Dollar is in consideration by Chief Engraver William Barber in hopes of trading with the Far East.
The United States is going through a Reconstruction period after the Civil War. By 1873, North America and Europe go through a Great Depression, similar to the one in 1929. With the hoarding of silver during these tough times, the US government decided to go from a bimetallic standard of silver and gold to just a gold standard. This stops production of some silver coins including Half Dimes, the Three Cent Silver, and the Seated Liberty Dollar.
Brief History Of Trade Dollars
With these coins eliminated from the Coinage Act of 1873, a new coin comes out, known as the Trade Dollar. It is created in an effort to improve the United States’ relations with China and the Far East. With some of eastern Asia controlled by European counties including the United Kingdom, France and Spain, the United States wanted to trade with them while going through tough times and to compete with the Mexican Peso.
Trade Dollars are minted in Philadelphia, Carson City and San Francisco. Being on the Pacific coast, San Francisco produces more than the other mints. To compete with the Mexican Peso, the Trade Dollar weighs 420 grains or 27.2 grams, which is 8 grains bigger than the typical US silver dollar. Though it is 4 grains heavier than the Mexican Peso, the peso has slightly more silver at 90.3% vs. the 90% Trade Dollar. Chinese businessmen add chop marks to the Trade Dollars to verify their correct weight and value.
Most of these dollars would go across the sea in 1873, but by 1874, some of them make it in American’s hands. By 1876, Congress considers making Trade Dollars worth five dollars, but instead demonetizes them. The act doesn’t affect the Trade Dollar much as mintage reaches a high in 1877 with over 9.5 million.
Trade Dollars Lack Support
Reviewing how the Trade Dollar is doing in China, it isn’t as successful in the northern portion as it is in the south. It also isn’t popular at US banks and businesses and would stop being produced for circulation in 1878. Proof Trade Dollars will continue until 1885.
With the high mintages in San Francisco, you can get a circulated Trade Dollar between 1873-S and 1878-S for $300 or less. Even the 1873, 1874, 1876, 1877 and 1878 dollars from Philadelphia can go for $300 or less. Uncirculated Trade Dollars start at around $1,000.
Be Careful When Purchasing A Trade Dollar
Many counterfeits have come out of China. One of the most common fakes is dollars without silver. Check it with a magnet. Silver coins will not attract to a magnet. Also some of the Trade Dollars don’t have as good of detail as the authentic ones. Make sure you purchase from a reliable dealer.
Trade Dollars Are Not Popular To Collect
The short lived Trade Dollar is not as popular as the Morgan or Peace Dollars, but makes a great addition to a Type Set, like I have been building. Would you consider purchasing Trade Dollars?