"Overcharging for Proofs at the Mint? $1.60 for a Trade Dollar?!" July 1876 0

[RWB]

Collector RKKay started the above thread on another message board, and posted a couple of pages from the NARA US Mint archives on the subject.

[https://forums.collectors.com/discussion/1086261/overcharging-for-proofs-at-the-mint-1-60-for-a-trade-dollar]

One thing that was not mentioned is that it was common in the post-Civil War economy for items to have a price in paper (greenbacks) and a different price in specie. This could vary daily or with the seller's perception of demand. Resumption of specie payments in 1879 didn't change things very much for at least a year or two. Proof coin purchases were further confused because the Mint paid postage but charged the customer for registration. Treasury also had specific requirements for banks that needed coins. In 1878 silver dollars were initially sold only for gold at par, with silver bullion only paid in silver dollars or an equivalent certificate. Subsidiary silver coins were only sold for silver bullion and later silver certificates. By 1880 banks still had to pay for silver coins in silver certificates, gold or equivalent silver bullion sales to the Mints.

[RWB]

It was not until the Gold Act of 1934 that a "dollar" was a "dollar." Prior to that, it was common to see prices in currency (state notes and later Federal greenbacks), silver coin, gold coin and gold certificates. Gold was at the top of the preference ladder most of the time, although the California discoveries depreciated gold in terms of silver for about 12 years. Gold Certificates were at the very top since they represented an exact sum and amount of gold and were immune to wear. Next came gold bullion bars, then gold coins, then floating rate silver bars, silver dollars and silver certificates, subsidiary silver, and finally base metal token coins.

Businesses liked to buy with the cheapest "money" and sell for the "dearest" money. Wages were paid in cheap money, but retail stores charged in dear money or ran personal accounts that had to be paid in specie or gold.

[numisport]

Isn't that how it works now ? Law makers spend huuuuge amouts of money that doesn't exist, print money to cover it then sell their assets at inflated prices and die wealthy only to pass along their bounty to the next generation who'll do it again to us sorry pawns because we just don't care.

 

[RWB]

On 1/14/2023 at 5:13 PM, numisport said:

Isn't that how it works now ?

No. All dollars are the same and are of equal value at any time. A century ago that was NOT the case although it was much better than ii the latter 19th century.

[numisport]

Is that anything similar to todays asking price for let's say fuel one price cash and another price for credit ?

After all everything local is paid in dollars.

[GoldFinger1969]

It's interesting to see how the value and use of gold and silver coins changed as the California Gold Rush hit and then later the Comstock Silver Mine and other silver supplies came on the market.

The San Francisco Mint had the option of taking in gold OR silver for gold coins but other Mints and assay offices (on the East Coast mostly) accepted only gold.