Week # 186 - Face this question...

[Danielle C.]

QUESTION:

 

Why were coin collectors of the 1890's able to buy USA trade dollars for less than face value?

 

Good luck!

 

Our first place winner will receive an October Census Report. A prize will be given to a randomly selected participant with the correct answer.

 

 

REMINDER: The Numisma-Quest ends/ended on Saturday at midnight EST. Entries after that time will not be valid. See the Trivia Info post for more details.

When you post your answer, only the administrators can see it. Stop back each Monday. We will make all the posts visible and announce the winners .

[Weather11-migration]

The trade dollars had less silver in them then their face value of a dollar. Some companies would buy trade dollars at less then face value and then pay them to their workers at face value.

[jayjay2789]

in 1876, congress declared the coin valid only for export and demonetized it as legal tender

[IGWT]

The drop in silver prices -- along with the revocation of legal tender status -- permitted collectors to acquire Trade Dollars at less than face value.

[Hoot]

The coins had been demonitized and their silver content was less than an ounce (0.78 oz.). They sold for bullion value in the 1890s.

 

Hoot

[jesse barton-migration]

During the 1890's trade dollars were not legal tender. Because of the decline of silver prices, they could be bought for less than face value. Sadly, thats not the case today, though

[midwest]

they were demonitized

[cpm9ball]

They were no longer legal tender.

 

Chris

[koincollector]

Just a guess..they were bullion coins and the price of silver crashed at that time.

[JamminJ]

Trade dollars were not legal tender so they traded on the basis of thier silver content, which was less than one dollar.

[Oldtrader3]

Because they only had .787 oz. of silver and were worth less than $1.00.

[BankNote1]

Because the coins were meant for foreign trade and wern't legal tender in the U.S. They were only worth their silver content which was less than $1!

[EZ_E]

Because silver was seriously devalued at the time and only worth c. 40 cent/oz, since the trade dollar was demonetetized, it was only worth bullion value.

[mhardin2413]

they weren't legal tender in the united states, and if they were chopped, there was even less desire to own one.

[mark]

Because they were not legal tender and the silver in them was worth than $1.00.

 

Mark

[CarolinaCollector]

The coins were not legal tender. Due to drop in the price of silver, the bullion value of a U.S. Trade dollar was worth less than a dollar.

[Elbesaar]

They were demonitized and therefore had no value but for their bullion content, which was less than a dollar.

[Danielle C.]

QUESTION:

 

Why were coin collectors of the 1890s able to buy USA trade dollars for less than face value?

 

ANSWER:

 

They contained less than a dollar's worth of silver and had no legal tender value.

 

Congratulations Weather11!! You will be receiving a copy of the 2005 October Census Report.

 

OldTrader3 is our runner up winner, you will be receiving a display box.

 

 

Thanks for playing and stop back next week for another question. Keep up the good work!!