The dollar coin is a United States coin with a face value of one dollar. Dollar coins have been minted in the U.S. in silver, gold, and base metal versions. Dollar coins have almost never been popular in circulation since their inception. Despite efforts by the U.S. government to promote their use to save the cost of printing one-dollar bills, modern coins are seldom seen in circulation, since most Americans prefer to use paper bills.
Dollar coins were first minted in 1794 and were struck in 90% silver; these variants are commonly called a silver dollar. The Morgan dollar and Peace dollar were the most widely produced silver dollar series of the 19th and 20th centuries. Gold dollars were also produced from 1849 to 1889. Modern dollar coins are composed of clad metals, including the Eisenhower dollar and Susan B. Anthony dollar; the latter was the first circulating U.S. coin to depict a historical woman. Introduced in 2000, the Sacagawea dollar established the golden-colored manganese-brass composition used for subsequent issues. Other modern series include Presidential dollars, which honored former U.S. presidents, and American Innovation dollars, which highlight innovations from each U.S. state.
Due to their unpopularity, the United States Mint has not produced dollar coins for general circulation since 2011, and all dollar coins produced after that date have been specifically for collectors. These collector coins can be ordered directly from the Mint, while pre-2012 circulation dollars can be obtained from most U.S. banks.
History The original dollar traces back to a silver coin called "Joachimsthaler", originating in 1520 in the mining town of Joachimsthal, today known as Jáchymov in the Czech Republic. That coin's name was shortened to "thaler", which became "daler" in Dutch. Dutch "dalers" circulated in New Amsterdam and the English colonies, where English speakers started calling such coins "dollars".
Before the American Revolutionary War, coins from many European nations circulated freely in the American colonies, as did coinage issued by the various colonies. Chief among these were the Spanish silver dollar coins, also called pieces of eight or eight reales, minted in Mexico and other colonies with silver mined from North, Central and South American mines. These coins, along with others of similar size and value, were in use throughout the colonies, and later the United States, and were legal tender until 1857.
In 1776, several thousand pewter Continental Currency coins were minted. Although unconfirmed, many numismatists believe these to have been pattern coins of a proposed silver dollar coin authorized by the Continental Congress to prop up the rapidly failing Continental Currency—the first attempt by the fledgling U.S. at paper currency. Several examples were also struck in brass and silver, but a circulating coin was not produced, in large part because of the financial difficulties of running the Revolutionary War. The Continental Currency dollar coin bears the date 1776, and while its true denomination is not known, it is generally the size of later dollars, and the name has stuck. The failure of the Continental Currency exacerbated a distrust of paper money among both politicians and the population at large. The letters of Thomas Jefferson indicate that he wished the United States to eschew paper money and instead mint coins of similar perceived value and worth to those foreign coins circulating at the time.
Silver dollar coins
The Coinage Act of 1792 authorized the production of dollar coins from silver. The United States Mint produced silver dollar coins from 1794 to 1803, then ceased regular production of silver dollars until 1836. The first silver dollars, precisely 1,758 of them, were coined on October 15, 1794, and were immediately delivered to Mint Director David Rittenhouse for distribution to dignitaries as souvenirs.
Thereafter, until 1804, they were struck in varying quantities. There are two obverse designs: Flowing Hair (1794–1795) and Draped Bust (1795–1804). There are also two reverse designs used for the Draped Bust variety: small eagle (1795–1798) and heraldic eagle (1798–1804). Original silver dollars from this period are highly prized by coin collectors and are exceptionally valuable, and range from fairly common to incredibly rare. Because of the early practice of hand engraving each die, there are dozens of varieties known for all dates between 1795 and 1803.
It is also one of only two denominations (the other being the cent) minted every year from its inception during the first decade of mint operation. Though a new Spanish dollar or 8-real minted after 1772 theoretically contained 417.7 grains of silver of fineness 130/144 (or 377.1 grains fine silver), reliable assays of the period confirmed a fine silver content of for the average Spanish dollar in circulation.
The new US silver dollar of therefore compared favorably and was received at par with the Spanish dollar for foreign payments. In 1803, President Thomas Jefferson halted new silver dollars made out of the US Mint's limited resources since it failed to stay in domestic circulation. The less-exportable half dollar therefore became the largest US-made silver coin in domestic use for the next several decades. It was only after Mexican independence in 1821 when their peso's fine silver content of 377.1 grains was firmly upheld, which the US later had to compete with using a heavier Trade dollar coin of fine silver.
1804 dollar
The 1804 dollar is one of the rarest and most famous coins in the world. Its creation was the result of a simple bookkeeping error, but its status as a highly prized rarity has been established for nearly a century and a half. Only 16 silver dollars with the date of 1804 are known to exist; in 1999, one of them sold at auction for more than $4 million.
Seated Liberty dollar (1836–1873)
Seated Liberty dollars were introduced in 1836 and were minted in lesser quantities than the sparsely minted Gobrecht dollar that preceded it. The dollars were used in general circulation until 1873. Each Seated Liberty dollar is composed of 0.77344 troy oz of silver. They were minted at Philadelphia, New Orleans, Carson City, and San Francisco. A silver dollar would be worth $1 in silver if the price of silver is . The current silver price (January 29, 2021) is so a silver dollar is worth, in melt value of about .
The production of large numbers of U.S. gold coins from new California mines lowered the price of gold, thereby increasing the value of silver. By 1853, the value of a U.S. silver dollar contained in gold terms, $1.04 of silver, equal to $ today. With the Mint Act of 1853, all U.S. silver coins, except for the U.S. silver dollar and new 3-cent coin, were reduced by 6.9% as of weight with arrows on the date to denote reduction. The U.S. silver dollar continued to be minted in very small numbers mainly as a foreign trade coin with the Orient.
The international trading partners did not like the fact that U.S. coins were reduced in weight. The use of much more common half dollars became problematic since merchants would have to separate higher value pre-1853 coins from the newer reduced ones. From 1853 onward, trade with Asia was typically done with Mexican coins that kept their weight and purity in the 19th century. This ended in 1874 when the price of silver dropped so that a silver dollar had less than $1.00 worth of silver in it (because of huge amounts of silver coming from the Nevada Comstock Lode mines). By 1876, all silver coins were being used as money and by 1878, gold was at par with all U.S. paper dollars.
Trade dollar (1873–1885)
The trade dollar was produced in response to other Western powers, such as Great Britain, Spain, France, and particularly Mexico, to compete with these trade coins for use in trade in Asia. While the previous Spanish dollar of contained less fine silver than the standard dollar coin of , Mexican pesos minted after Mexican independence contained a full of fine silver.
The American trade dollar therefore had to contain more silver, at 420 grains of 90% fine silver, fine content , or 0.44 g more fine silver than the regular circulation silver dollars. Most trade dollars ended up in China during their first two years of production, where they were very successful. Many of them exhibit holes or chopmarks which are counterstamps from Asian merchants to verify the authenticity of the coins.
Trade dollars did not circulate in the United States initially, but were legal tender for up to . Production of the trade dollar was officially discontinued for business strikes in 1878, and thereafter from 1879 to 1885, produced only as proof examples of the coin. The issues of 1884 and 1885 were produced surreptitiously and were unknown to the collecting public until 1908. In February 1887, all non-mutilated, non-chopmarked outstanding trade dollars were made redeemable to the United States Treasury for , and approximately 8 million of them were turned in.
Morgan dollar (1878–1904, 1921, 2021–present)
Morgan silver dollars, all composed of 90% silver and 10% copper (slightly less silver than sterling silver, 92.5%) weighing 412.5 grains total (0.859375 ozt), and thus 0.7734375 ozt pure silver, were struck between 1878 and 1904, with a minting in 1921 and a commemorative minting in 2021. The 1921-dated coins are the most common, and there exists a substantial collector market for pristine, uncirculated specimens of the rarer dates and mint marks.
Morgan dollars are second only to Lincoln Cents in collector popularity. The coin is named after George T. Morgan, its designer. Morgan dollars were minted at Philadelphia (no mint mark), New Orleans ("O" mint mark), San Francisco ("S" mint mark), Carson City ("CC" mint mark), and (in 1921 only) Denver ("D" mint mark). The mint mark is found on the reverse below the wreath, above the "O" in "DOLLAR". Production of the Morgan Dollar began again in 2021 as collectors' items and US Mint officials announced an intention to continue producing them in 2023 and beyond.
Peace dollar (1921–1928, 1934–1935, 2021–present)
Introduced in December 1921 and having the same ratio of silver-to-copper as the Morgan dollar, the Peace dollar, designed by medalist Anthony de Francisci, was promulgated to commemorate the signing of formal peace treaties between the Allied forces and Germany and Austria. These treaties officially ended the Allies' World War I hostilities with these two countries. In 1922 the Mint made silver dollar production its top priority, causing other denominations to be produced sparingly if at all that year. Production ceased temporarily after 1928. Original plans called for only a one-year suspension, but this was extended by the Great Depression. Mintage resumed in 1934, but for only two years.
In May 1965, 316,000+ Peace dollars were minted, all at the Denver Mint and dated 1964-D. Plans for completing this coinage were abandoned, and most of those already minted were melted, with two known trial strike specimens being preserved for assay purposes until 1970, when they too were melted, and none released either for circulation or collection purposes.The '64 Dollar Question . Retrieved August 27, 2010.
It is rumored that one or more pieces still exist, most notably any examples obtained by key members of Congress, the president, or mint officials. However, this coin, much like the 1933 $20 gold double eagle, aside from the "exception", sold in 2002 for over $7 million and the 10 found later, is illegal to own and would be subject to confiscation.The '64 Dollar Question . Retrieved August 27, 2010.
Minting of the Peace Dollar began again in 2021 for collectors. US Mint officials have announced an intention to continue minting Peace Dollars in 2023 and beyond.
GSA dollars