Central States Numismatic Society

Serving the Numismatic Community since 1939

"The year 1873 was pivotal..."

The year 1873 was pivotal and prolific...

The year 1873 was pivotal and prolific for United States coinage. It saw the birth of the trade dollar and the death of such issues as the two-cent piece, the half-dime and the three-cent silver coin. A complete variety set of 1873 coinage would require 54 coins.

The vintage was so intriguing that the late Harry X Boosel came to be known as "Mr. 1873" for his research into coinage of that year.

Some critics have called the year's coinage legislation the "Crime of '73" because of problems that ensued, especially with the trade dollar.

The law effectively took the United States off a bimetallic standard (gold and silver), creating a gold standard instead. The trade dollar replaced the traditional silver dollar that had seen only limited circulation, and it would be 1878 before silver miners and other proponents were able to convince Congress to resume production of the traditional silver dollar.

The trade dollar contained slightly more silver than did the old silver dollar. Its purpose was to circulate in the Orient in competition mainly with Mexican silver coinage of the same weight. The Mexican peso was favored by Chinese business interests, putting American businessmen at a disadvantage in many cases (unless they had pesos.)

Congress gave the trade dollar legal tender status up to $5 for any transaction within the United States, but repealed that provision in 1876 because of abuses that followed a drop in the price of silver. More abuses were to follow.

With silver prices down, miners began producing more silver in hopes of increasing profits. An abundance of trade dollars couldn't be absorbed in the Orient and wound up being dumped in the domestic market. By 1876 the amount of bullion silver in the trade dollar fell as low as 80 cents.

Congress, which never intended for the trade dollar to circulate domestically, repealed that provision. Meanwhile, savvy businessmen bought millions of dollars worth of trade dollars at or near bullion value and began paying their employees with the coins, but at face value. The workers were caught in the middle. Many merchants wouldn't accept the dollars, or if they did, it was often at discounted values.

Despite repeal of the legal tender status, trade dollars continued to be struck for circulation into 1878 and in proof-only for collectors through 1883.

The trade dollar is the only United States coin to ever lose its legal tender status. The coinage act of 1965 apparently restored the legal tender status, but the point is moot because trade dollars today are worth more than face value both from a numismatic view and a bullion value standpoint.

So how did we wind up with a 1873 variety set that would require 54 coins to complete?

As mentioned earlier, the law eliminated the minting of the half-dime, which duplicated the nickel five-cent coin, and the three-cent silver piece, whose nickel counterpart continued in production until 1889. Also knocked out was the two-cent coin that had been introduced just nine years earlier in 1864.

However, there was overlapping. For example, you'd need three coins of the three-cent denomination - the one made of silver and two made of nickel because of the "open 3" and "closed 3" varieties.

There are also mint marks to consider and whether silver coins contain arrows or not at the date.

The 1873 law also increased the weight of circulating silver coins ever so slightly. Arrows were placed at the date to signify coins produced under the new law.

Breen also notes that many silver coins from earlier years were subsequently melted, creating numismatic rarities of today.

Arrows remained on silver coins through 1874.

The 1873 law also mandated that all minor coinage be struck at the Philadelphia mint. It wasn't until 1908 that a minor coin would carry a mint mark (s on the Indian Head cent).

One final note. The 1873 law also moved the mint directorship from Philadelphia to Washington where it remains today.

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