History of U.S. Coinage

The history of United States coinage officially starts with the establishment of the U.S. Mint in 1792. In that year, there was a humble output of what many collecting experts consider to be “pattern” or “experimental” coins. Then, in the following year of 1793, the U.S. Mint in Philadelphia officially began cranking out coins for public circulation – namely, thousands of cents and half cents. The United States Mint, including all its branches, have been making coins ever since.

But the history of COINS in the United States goes back to the 1500’s! Of course back then, this country was centuries away from being known as the “United States.” Instead, the ground we walk on was known as Spanish “Florida” or British “Virginia.”  A good-sized book could be written about the entire history of coinage in the United States, but for our purposes, here is a century-by-century thumbnail breakdown of our nation’s coinage past:

16th Century
The Spanish are the first coin-using peoples to establish a foothold in what is today the United States. From 1513 to 1565, the Spanish have been exploring and setting up abortive settlements from the Carolinas down to Florida. But finally, in 1565, the Spanish establish the first permanent European settlement in the United States: St. Augustine. Did they bring coins with them? Undoubtedly. And these coins would probably have been a mixture of 16th century coins from Spain, copper 4 and 8 maravedis struck for the Caribbean settlement of Santo Domingo, and silver coins struck in Mexico City beginning in 1536. Later in the 1500’s, the British attempt to settle Roanoke Island in North Carolina. As they are today known as the “Lost Colony,” you can guess how this venture turns out. But from excavations near the site, we know that these British settlers brought over a few coins, mainly Elizabethan silver.

17th Century
The Spanish are still firmly entrenched in the southern United States, from about South Carolina down into Florida. Not only are there a few Spanish villages by this time, but there are Jesuit missions as well. The Spanish settlers probably use a mixture of copper coins from Spain, and silver coins from Mexico. The British, meanwhile, have finally gained a permanent foothold in the United States with the establishment of Jamestown in 1607. The British settlers of “Virginia” (a territory MUCH larger than the present state) are not allowed to strike their own coins. What little coinage they have is a mixture of British coins that filter over (from the reigns of Elizabeth I and James I) as well as a smattering of Spanish and Dutch silver coins. Later in the century, Massachusetts will become the first and ONLY British colony to strike their own coinage. They learn after the fact that the British crown frowns on such activity, so the Massachusetts Colony feigns ignorance by dating ALL their silver coins from 1652 to 1687 as “1652,” just so they could claim, “these coins were struck BEFORE the King told us not to!” But mainly, throughout the 1600’s, the British colonists use a mixture of whatever foreign coins come their way—mostly Spanish, British, French and Dutch coins.

18th Century
A BUSY century for United States coinage! From 1700 through 1776, the colonial coinage situation continues much as it was in the 1600’s, the biggest difference being a huge influx of counterfeit copper British coins, struck both in England and America! On occasion, a British or Irish token would be exported to America for use in the colonies. In 1773, England would even finally strike an official coin for the Colonies—namely, the Virginia halfpenny. Then, once the American Colonies declare their independence in 1776, they hopefully begin striking a small amount of experimental “American” coins, such as the 1776 Continental Dollar, even though full independence had not yet been won from England. When the Colonies at last DO win independence, they continue to mostly use British and Spanish coins. That is, until 1785, when the states are given the right to strike their own coins. And they do—Connecticut, New Jersey, Massachusetts, New York and Vermont all strike their own copper coins from 1785 to 1788. But this chaotic situation cannot last, so finally, in 1787, the newly-formed United States Congress authorizes the first coin of the United States: the 1787 Fugio Cent. But the Fugio Cent production is botched by private contractor, James Jarvis, who is hired to strike them. Therefore, it becomes clear that an official United States Mint is needed. In 1792, the United States Mint is established. In 1793, the Mint officially begins striking coins for circulation. Copper coins only are struck in 1793. In 1794, the U.S. Mint begins striking silver coins as well: half dimes, half dollars and dollars. By 1796, dimes, quarters and gold coins are added to the Mint production slate.

19th Century
A myriad of U.S. coin denominations and coin designs are struck in the 1800’s by the United States Mint. In addition, there are more U.S. branch mints than at any other time in U.S. history — besides Philadelphia, the 1800’s would see U.S. Mints established at New Orleans, Charlotte, Dahlonega, San Francisco and Carson City! As for coin denominations, 19th century U.S. coin issues would include half cents, cents, two-cent pieces, three-cent silver pieces, three-cent nickels, half dimes, nickel five-cent pieces, dimes, twenty-cent pieces, quarters, half dollars and dollars, not to mention gold coins of $1, $2.50, $3, $4, $5, $10 and $20 denominations!

20th Century
In this century, U.S. coinage output generally goes up from hundreds of thousands of each coin struck, to multi-millions of each coin struck. But in the 1900’s, the U.S. Mints would be scaled-back to just Philadelphia and San Francisco, with Denver being added in 1914. Odd denomination coins like half cents, two-cent coins, three-cent coins and twenty-cent pieces, vanished from the Mint production slates. Huge changes in U.S. coinage in this century would include the huge explosion of Commemorative coins, mostly struck in the 1920’s through 1936. Perhaps the biggest change, however, is the disappearance of precious metals from circulating U.S. coinage starting in 1965. No more would our nation’s dimes, quarters, half dollars, or even dollar coins, contain 90% silver (though half dollars would at least contain 40% silver from 1965-70). Another huge change in U.S. coinage occurred in the very last year of the 1900’s, namely the unprecedented State Quarter program, which kicked off with five state quarter designs in 1999.

21st Century
As we just now are starting into the 21st century, here is the state of U.S. coinage today. The Lincoln cent is still with us, though it is now approaching its 100th year of productions. Not only that, the Lincoln cent is in the news today, in that it now costs about TWO cents for the U.S. Mint to make ONE cent—so many wonder if the cent’s days are numbered. The Jefferson nickel is still going strong, and has even recently gone through design changes in the last three years, with four reverse designs honoring the Lewis and Clark Expedition, as well as a new front-facing Jefferson portraits in 2005 and again in 2006. The Roosevelt dime remains the same as it was in 1946, save for going from silver to clad in 1965. The Washington state quarter program continues to crank out five new state designs per year, and will continue to do so through 2008. The Kennedy half dollar sees virtually no circulation these days, but is still struck in the millions by the U.S. Mint. Similarly, the golden-colored (but not gold) Sacajawea dollar has been struck since 2000, but only the 2000-dated dollars have seen real circulation. There is a purposed dollar coin program in the works that will honor each U.S President AND their wives! Commemerative half dollar, silver dollar, $5 gold and $10 gold coins continue to be struck. In addition, the U.S. Mint ALSO now strikes silver, gold and platinum bullion coin as precious-metals commodities.