Silver Coinage

The silver dollar formed one of the cornerstones of the American monetary system as the highest silver denomination. As such it has been viewed with great importance by the United States Mint as well as collectors. Perhaps the most popular series in all of coin collecting is the Morgan Dollar issued from 1878 to 1921. While many issues can be acquired without much difficulty, there are some key dates that make completion of a set an impossible task for collectors of limited means.

An alternative series to collect is the Peace Dollar issued from 1921 to 1935. The more limited run of the series means that a full set can be completed with 35 different coins. A year set with one example from each date is even more limited. Although the series does contain some significant key dates, in lower uncirculated grades, these coins still remain accessible.

The series was created as a way to commemorate the Peace following the conclusion of the Great War. The design is a dramatic display of the talents of sculptor Anthony De Francisci. The obverse is said to have been based on his wife’s visage, while the reverse presents an eagle in an uncharacteristic pose. Rather than heraldic form or flight, it is at rest on a rock, as if at peace.

Challenges are available for the advanced collectors. Besides the few key dates, there are many issues which are significant conditional rarities. This means they are relatively available in lower grades, but extremely rare in higher uncirculated grades. This is due to the production quality of some issues and the tendency for the coins to garner heavy marks while in transportation. A full set of gem Peace Dollars is a wonder to behold for those up to the task.

Out of reach for most average coin collectors is the realm of the earliest silver dollars produced by the United States Mint. This generally encompasses the flowing hair and draped bust types, each of which include one extreme rarity. Although not everyone has the funds or motivation to purchase these coins, they represent a very important part of history. Thus, they are worth knowing about and studying to better appreciation of the hobby of collecting.

The early Mint in Philadelphia would strike the very first silver dollars in 1794. The quantity minted was about 2,000, but a mere 1,758 were deemed acceptable and released to the public for circulation. Of this limited number, it is estimated that just 130 or so pieces survive to the current day. These are highly prized and among the most expensive United States coins available.

Because of the portrayal of liberty on the coin with her hair flowing over her shoulders, the first silver dollar is known as the Flowing Hair dollar. This design was issued from 1794-1795 and the Draped Bust silver dollar followed from 1975-1804. The extreme rarity of this series is for the coins dated 1804. These were actually struck many years later as diplomatic gifts, providing a special status and very limited number of coins struck.

When buying one of these early silver dollars it is essential to remember that there are only a few of them around which means getting them certified is extremely important. It is recommended to look for existing accreditation from one of the finest grading services or have one of these services: NGC, PCGS, ANACS, or ICG, grade your coin.

The production of Morgan dollar which was named after George T. Morgan, who was U.S Mint assistant engraver, started in 1878 and ended in 1921. Actually, for a period of 17 years starting 1904, silver dollars were not minted. Congressional on again-off again acts governed acquisition of silver and production of coins for the currency supply.

Although the coins were not produced for sometime, 1918 Pittman Act brought back the precious silver dollar.  This Act stipulated that 270 million silver dollars in existence should be melted down; each silver coin was to be minted into a new peace dollar.

The major setback was, Morgan dies had already been destroyed and peace dollar dies were actually not ready. The dies and the 1921 Morgan dollar were redesigned by Morgan, featuring an eagle with outstretched wings at one side and Lady Liberty on the other side. Three mints were used to produce over 86 million coins.

During the 1930s, money supply was endangered by hoarding of gold and silver coins and this threatened to worsen the Great Depression. An executive order that forbade hoarding of coins was passed and it was also agreed to extend issuance of paper based currency instead of coins.

The Coinage Act of 1792 officially created the dollar as the unit of currency for the United States of America. It was passed on April 2, 1792 and provided that the dollar or unit would have 371 and 4/16 grains of standard silver. This yielded 416 grains of pure silver. Ultimately, the initial composition would be slightly changed, but the silver dollar remained an important unit within currency for many decades to come.

The first design featured Liberty with Flowing Hair, as designed by Robert Scot. There were also fifteen stars on the obverse, which represented the number of states in the Union. Eventually, this idea of stars for states was abandoned as the country rapidly expanded. Instead, there were 13 stars used for the original states.

Mintages at the early mint were quite low. There were just 1,758 acceptable pieces minted and released for the 1794 silver dollar. In the second year, there would be 160,295 pieces.

Especially for the first year, examples are highly prized by collectors and fetch steep prices when they are available for sale.

The next designs for the dollar would feature Liberty with a Draped Bust, Seated Liberty, and eventually the better known Morgan and Peace Silver Dollars.