Ths casual letter to a Canadian banker indicates what happened to many seated Liberty dollars.
August 9, 1869
W. Weir, Esq.
Banker
Montreal, Canada
Sir,
In reply to you letter of the 5th inst., I can only say that it is certain we are coining but little silver, and do not know what becomes of it after it leaves the Mint. The whole dollars, however, are chiefly melted up by silversmiths.
Any person sending silver to the Mint, can have it coined, or it can be made into fine bars, stamped; which is now frequently done.
The silver coins of the United States have no gold value fixed by law; unless it may be said that the gold dollars and silver dollars (whole) are equal, as having equally legal tenders. In the market the silver dollars is of greater value. The pieces of half dollars and less are only a legal tender to the amount of five dollars.
The enclosed circulars may interest you somewhat.
Respectfully yours,
James Pollock, Director