Trade Dollar

In all, fewer than 36 million trade dollars were struck during the coin's 13-year lifespan, including about 11,000 proofs.

Specifications

 * Designer: William Barber
 * Obverse Design: Left-facing seated Liberty, who extends her hand, bearing an olive branch, over the sea.
 * Reverse Design: Bald eagle
 * Edge: Reeded
 * Weight: 27.2 grams
 * Diameter: 38.1 millimeters
 * Composition:  Silver (90%), Copper (10%)
 * Dates Minted: 1873-1885

Background
The U.S. Trade Dollar of 1873-85 is unique for a number of reasons. It’s the only U.S. silver dollar to be struck during a period when U.S. legislation had officially revoked provision for a silver dollar coin! It’s the only U.S. coin struck primarily for use outside of the United States, namely the Orient. It’s the only U.S. coin to have its legal tender status revoked. It’s the only U.S. coin to indicate how many grains it weighed, as well as indicating the fineness of the silver it contained. And it’s the only U.S. coin that’s immediately associated with the term, “chop marks.”

History
The curious story of the Trade dollar began in 1873, when new legislation placed our nation’s money on the gold standard. By doing this, the new coinage law effectually outlawed the regular-issue silver dollar. These new coinage laws became known as the “Crime of ‘73.” But while the new 1873 law revoked provision for a regular-issue silver dollar for the United States, it DID make provision for a heavier silver dollar to be used in foreign trade. Specifically, the new law was enacted because a heavier silver dollar was needed to compete with the heavier Mexican 8 reales coin (or peso) in the Orient. This new law was the death knell for the Seated Liberty silver dollar of 1840-73, and the impetus for the creation of the Trade dollar, beginning in 1873.

The Trade dollar design was actually quite attractive, and an improvement over the Seated Liberty dollar. This new silver dollar showed a thinner, more graceful Miss Liberty (facing completely to the left now) seated atop wheat and cotton, her arm stretched out (to the West?) holding an olive branch. The reverse featured a spread-winged eagle, but differing with earlier U.S. silver coins, no U.S. shield adorns the eagle’s breast. Over the eagle is a banner that reads, “E Pluribus Unum.” And in an unprecedented move, the U.S. Mint placed an inscription of, “420 GRAINS” and “.900 FINE” below the eagle. Incidentally, the “420 grains” is important, because that meant the Trade dollar was 7 and ½ grains heavier than the standard U.S. silver dollar. In other words, it was actually worth $1.05 in gold.

The Trade dollar made its first appearance in 1873, with relatively healthy numbers struck at three different mints: 397,500 in Philadelphia, 124,500 in Carson City, and 703,000 in San Francisco. For the next four years, mintages went even higher, with mintages– depending on the mint– ranging from around 500,000 to 9 million or so. From 1873-77, the highest mintage Trade dollar was the 1877-S with 9.5 million minted.

The Trade dollar did indeed circulate in the Far East, as evidenced by so many Trade dollars coming down to us today bearing “chop marks.” Chop marks were administered by merchants in China and the Far East, who stamped Chinese characters on the silver dollar to indicate the coin had been tested, and its weight and fineness verified. The chop marked silver dollar could now be confidently accepted in transactions at face value. Today there is a dispute amongst silver dollar collectors as to whether chop marked Trade dollars add to the coin’s value or detract from it. One camp says the chop marks add an element of history to the coin, giving it added character. In the other camp, condition purists say the chop marks constitute “damage.” Basically, it’s up to you, the collector, to decide if a chop marked Trade dollar is more or less valuable to you.

Initially, the Trade dollar was indeed legal-tender– at least up to five dollars. But when the price of silver dropped in the late 1870's, that legal tender status was officially revoked in 1876. In fact, the Trade dollar became the only U.S. coin one could purchase for LESS than face value from banks, if you brought in silver. Banks wouldn’t accept Trade dollars for deposit at face value, so merchants themselves began discounting the value of the Trade dollars tendered to them. By 1876, the Trade dollar the equivalent gold value of silver contained in the Trade dollar was only 86 cents!

In 1878, the fortunes of the Trade dollar sunk further. The standard U.S silver dollar had been legislated back into existence, and in 1878, the Morgan dollar appeared. Though the San Francisco mint churned out some 4 million Trade dollars in 1878, the Philadelphia mint only struck 900 Proof only pieces, while the Carson City mint managed just 97,000 Trade dollars.

From 1879 to 1885, only minuscule mintage Proof issue Trade dollars were struck. All are rare today. Actually, there weren’t even supposed to be any Trade dollars struck in 1884 or 1885, special Proof issues or not! Still, apparently some sneaky individual (or individuals) working for the Mint did an inside job, and churned out ten 1884-dated Proof Trade dollars, and five 1885-dated Proof Trade dollars. Both dates are exceedingly rare.

Collecting
As for the Trade dollars that ARE collectible, the most common dates would be the 1875-S, 1876, 1876-S, 1877, 1877-S, and 1878-S. These dates retail $60 in Good, $85-$100 in Fine.

Some dealers may discount for chop marks, some may not. Sad to say, if you happen to see any Trade dollars being sold by way of Singapore, you should probably run the other direction. Far FAR too many counterfeit silver dollars, particularly counterfeit Trade dollars, have come out of Singapore in recent years. Which is a shame, because some dealers over there may well be selling the real deal for decent prices– but it’s too risky to fork over your money.

All in all, prices are still quite reasonable for such a classic, short-lived 19th century silver dollar. Especially one so unique, and with such history behind it. The Trade dollar is kind of the “forgotten” silver dollar– but don’t YOU make the mistake of forgetting about it!

Mints

 * Philadelphia Mint (No mintmark)
 * Carson City Mint (CC mintmark)
 * San Francisco Mint (S mintmark)