Article on coin circulation in early 19th century America 0

[RWB]

My article titled "Circulation of Foreign Gold and Silver Coins in the United States, 1826" is on pages 155-172 of the current issue of American Journal of Numismatics. This issue was just released. Copies are available from the American Numismatic Society in New York.

Hope members will find it interesting.

Edited December 19, 2023 by RWB

[RWB]

Excerpt....

After surviving multiple attempts to abolish the national mint, Congress finally accepted its broader responsibility, and began learning about the current circulating coin situation.[1] This offered the possibility of understanding how much American coinage was needed to fuel commercial enterprises, and what equipment and facilities would be required for the future. On May 9, 1826 the Senate approved a resolution of the Committee on Finance from Sen. Woodbury.

  " Resolved, That the President of the United States be requested to cause an assay to be made of all the gold and silver coins of all foreign nations, whose coins are known to circulate, or be in use in any part of the United States; and to cause a report, distinguishing the respective dates of their coinage, to be made to Congress at their next session, of the actual weight of each of those coins; the fineness, alloy, and component parts of each; the current and nominal value of each; the actual value of each according to the standard and denomination of the coins of the United States, and the rate at which each might justly be made a legal tender.[2]"

---

[1] Congress had long required routine assays of circulating gold coins and publication of intrinsic values. But these were made using samples from specie traders in Philadelphia and other Eastern cities. They were technically compliant but did not reflect in-situ values within local economies scattered across the nation. Here we find mint director Moore’s implied charter was to determine the local value of foreign gold and silver, and how much of it was in circulation,

[2] Journal of the Senate of the United States, Vol 15, p113. May 9, 1826.

Edited December 19, 2023 by RWB

[VKurtB]

Did this coincide with the end of the expectation that the Mint’s role was to coin bullion as a government service?

[RWB]

Not really. Gratuitous coinage remained until the Act of 1873. US Treasury charged only a refining and alloy fee for coinage. (This was a messy and inconsistent approach, but minimized loss on the owner's deposit. The British/Canadian approach put all expense on the miner/bullion depositor, which is partially why Canadian miners preferred to send their bullion to US Assay Offices or Mints. Australians also found better deals in San Francisco than Perth, Melbourne, Kolkata, Mumbai, or South Africa.)

1826 coincided with Congress finally dropping the fiction of moving the Mint to Washington.

[VKurtB]

On 12/18/2023 at 6:22 PM, RWB said:

Not really. Gratuitous coinage remained until the Act of 1873. US Treasury charged only a refining and alloy fee for coinage. (This was a messy and inconsistent approach, but minimized loss on the owner's deposit. The British/Canadian approach put all expense on the miner/bullion depositor, which is partially why Canadian miners preferred to send their bullion to US Assay Offices or Mints. Australians also found better deals in San Francisco than Perth, Melbourne, Kolkata, Mumbai, or South Africa.)

1826 coincided with Congress finally dropping the fiction of moving the Mint to Washington.

Boy, they sure knew how to party at the 50th anniversary, didn’t they?

[l.cutler]

Just got the journal and am looking forward to reading it, thanks!

[Zebo]

Sounds interesting. What about Sydney?

[RWB]

On 12/19/2023 at 10:56 AM, Zebo said:

Sounds interesting. What about Sydney?

Hmmmm.....I think Sydney had gone to lunch when I wrote that so he didn't get mentioned.

The various British crown mints followed the London/Bank of England approach toward mined gold. This was to accept only refined gold from depositors, thereby sticking the miner will all the expenses. In the US' mid- to latter-19th century approach, the Mint Bureau paid the full gold content (and silver when present) value less the actual cost of refining. Gold coinage was a government responsibility and expense. These "mint charges" were in constant flux because Congress  did not want to be seen a profiting from refining, assaying, etc.

[RWB]

Also -- If the deposit was foreign coin or refined bars from established companies, the NYAO and Mints could waive the refining charges, etc. To confuse things even more, if the deposit was high in silver and looked like silver, even if over 50% gold, it might be entered in the books as a silver deposit for which there was no refining charge. That could take months to straighten out....

[GoldFinger1969]

On 12/18/2023 at 2:32 PM, RWB said:

My article titled "Circulation of Foreign Gold and Silver Coins in the United States, 1826" is on pages 155-172 of the current issue of American Journal of Numismatics. This issue was just released. Copies are available from the American Numismatic Society in New York. Hope members will find it interesting.

What made you focus on 1 particular year and that year in particular....as opposed to a wider time period, like say 1900-1914 or 1919-1933 or something like that ?

Isn't focusing on 1 year sort of difficult ?

 

[RWB]

That's the year for which Congress requested the data, and is the only set of data known. Even with that, we have less than half of the reports.

Added to post ----

"Inquiries were sent to all nineteen Branch Offices of the Bank [of the United States] July 6 under the postal frank of Mint Treasurer Benjamin Rush. Other documents indicate letters were sent to large banks, such as Girard Bank, Bank of Michigan, or Bank of North America, Registers of Land Offices, and to Receivers’ of Public Moneys. We have complete or partial returns from fourteen locations:"

Edited December 20, 2023 by RWB

[Henri Charriere]

[For the "kids" defined by one member as being under the age of 35, Kolkata and Mumbai, both cities in India once known for their squalor and abject poverty, were once known as Calcutta and Bombay, respectively.]

[RWB]

On 12/27/2023 at 10:28 PM, Henri Charriere said:

[For the "kids" defined by one member as being under the age of 35, Kolkata and Mumbai, both cities in India once known for their squalor and abject poverty, were once known as Calcutta and Bombay, respectively.]

They are now known for solidified air pollution, streets lined with cattle poo, and the haven of those people named "Jim" speaking barely intelligible English who call your phone 50 times a day trying to scam access to your bank account.

(There are good people and magnificent structures, too. But we seldom hear of them.)

[RWB]

On 12/18/2023 at 2:32 PM, RWB said:

"Circulation of Foreign Gold and Silver Coins in the United States, 1826"

I must also mention that these data would not have been available for research without the work of R. W. Julian, supported by a grant from Central States Numismatic Society, and the NNP supported by EPNNES.

THANK YOU!

[RWB]

I now have digital offprints of this article and will send one to any individual for their personal use. Send me a PM with your email if you want a copy.