US Trade Dollar

In the late 1850s, a big vein of silver ore was discovered on the slope of a mountain in part of [what is now] the US state of Nevada. It was referred to as the "Comstock Lode" ^[1] and was a big boost to the mining industry. However, so much silver began to flood the market over subsequent years that the price of silver dropped in the 1860s and folks were wondering what to do with the excess precious metal.

A new piece of legislation was introduced in 1873 that affected coinage, and in that year the US Mint began to strike special coins called "Trade Dollars" consisting of 90% fine silver. Initially, the idea was to use these coins principally for foreign trade, and many were, indeed, sent to China in exchange for goods. This, plus the declining value of silver, caused the Trade Dollars to be disliked for domestic use and they were often traded for less than the face-value of one dollar within the US. ^[2]

Another reason that the Trade Dollar might have been viewed suspiciously within the US is that other nations in the past had debased some coinage during times of war. ^[3] One example was a coin minted under the Kingdom of Prussia:

Such debased "trade coins" were occasionally minted during times of war, e.g. the Prussian ephraimiten, silver-clad copper coins minted during the Seven Years' War. If these were ever accepted or approved as legal tender, they would be valued far below the regular coins, their value being calculated according to a specified formula. ^[2]

The US Trade Dollar coins were officially demonitized in 1876. Coins continued to be struck for commercial export until 1878, although collectible "proof" coins were minted until 1883. ^[4]

The obverse (front) of the coins featured Lady Liberty, seated, holding an olive branch out towards the sea. Around her are thirteen stars which represent the original thirteen colonies of the US. There is a lovely circle of beading just inside the rim.


The reverse (back) of the coin features an eagle holding arrows in one talon and an olive branch in the other. Above the eagle's head is a banner with the de facto motto of the US at the time: "E Pluribus Unum" ("Out of many, one"). Beneath the eagle is the lettering: "420 grains, 900 Fine" and "Trade Dollar."


The edge is reeded, with a series of vertical lines around the circumference.


Now, to be honest, this item is a replica, not a genuine Trade Dollar, but I still like it! The appearance is very pleasing, the "feel" of the coin in the hand is nice, and it has a balanced weight to it. I know it is a reproduction because the seller said it was "brand new," with "alloy electroplating" material, and described it as "commemorative." Plus, it only cost USD $1.50 with free shipping, so it can't be the genuine article. 😏 Still, I don't care!


If this were a genuine Trade Dollar, a few requirement would need to be met. First, it would be seriously more expensive than I paid. Genuine Trade Dollars cost hundreds of dollars, minimum, to thousands of dollars. Secondly, it would weight almost exactly 420 grains on a good scale; I don't have such a scale, so I have no clue what this weighs. Thirdly, only "proof" quality coins were struck between 1879 and 1883, and this item (stamped 1881) is not "proof" quality, although it is still quite nice.


Again, I am pleased with this purchase, as silly as it might seem to some folks, as it isn't solid silver. Yet, it is another lovely example of the Goddess Libertas, the personification of the concept of liberty, to add to my collection. And, if nothing else, the research I did on this piece has given me a bit more knowledge, and I hope my readers have learned something, too!