Low-mintage silver coins of the 1860s

[DWLange]

ATS someone wrote the following:

 

Was just reading the Red Book about Silver 3-cent pieces and ran across the last sentence. Nearly the entire production of non-Proof coins from 1863 to 1872 was melted in 1873. I'm not up on my 3-cent history but was the circulation strikes just kept at the mint without ever being released.

 

There were several explanations offered up by respondents, but I believe the correct one was not included. With silver and gold coins trading at a premium to their equivalent face value in paper money, there were only limited requests for silver coins below the half dollar. The smaller pieces were thus struck primarily to pay depositors of bullion. Whether these depositors requested bars or coins, the Mint paid them to the exact cent value of their deposits. Any amount that was not in whole dollars was paid in fractional silver coins, and this required that small numbers of these pieces be struck annually to keep on hand for such payments. When the trime became obsolete in 1873, the Mint could no longer pay them out, so the remaining pieces were melted.

 

It is true that the Philadelphia Mint liked to produce small mintages of currency strikes to discourage what otherwise would have been proof-only issues, but this was a secondary consideration to accurate payments in gold and silver coin.

 

 

[CaptHenway]

This is true, but since payments for depositors did not have to be paid in current year coins it would have been more efficient to make one large batch and pay out of it for years.

 

[RWB]

Good info. Thanks!

[DWLange]

This is true, but since payments for depositors did not have to be paid in current year coins it would have been more efficient to make one large batch and pay out of it for years.

 

Did you forget that we're talking about the government?

[RWB]

Mint directors of the time (Pollock) rarely knew what to expect for the future or how to plan production. The two mints and NYAO operated for different purposes during the Civil War, and the vast continental distances made coordination difficult and direct shipment of precious metals nearly impossible.