What was $20 worth in 1908?

[stinkycheese1]

I wonder what the hourly/daily wage was in 1908. I wonder how much $20 was worth in 1908, and if people could afford a $20 gold piece. Does anyone know how much people made in these times?

 

 

[123cents]

I found the average hourly salary in 1909 was 19 cents a hour so it would take about 12.5 days for a worker to make $20.00.

[astrostu]

So if we assume 19 cents was an effective "minimum" wage for purposes here, or for round numbers we'll say 15 cents, then we can compare it with the minimum wage a century later of around $7.25 (right?). This gives you a factor of ~50 in inflation, meaning a $20 gold piece would be "worth" around $1000.

 

I've never taken an economics course, so the above could be completely off-base, but it'll do unless someone more knowledgeable in this area posts a rebuttal.

[MunkyMan95]

And, those numbers are right around what a nice $20 gold piece would cost you today

[DaveG]

According to "Victorian America: Transformations in Everyday Life" by Thomas J. Schlereth, the average wage for a manufacturing worker in 1900 was $435/year or $8.37/week, while a middle-class family (with one person working) might have an annual income of $1,000 or so.

 

When the Federal Income Tax began, in 1913, it was aimed at only the top earners - the tax rate was 1% on taxable income above $3,000 for individuals or $4,000 for married people.

 

If you're interested, you can find reproduction copies of Sears catalogs from around the turn of the century that will give you an idea of what prices were like back then.

[TomB]

$20.

[RWB]

Here's what some of the employees of the Philadelphia Mint earned in 1910:

 

Elizabeth M. Laws, sewing woman, $1.75/day;

Stella Barclay, Forewoman of seamstresses, $3.00/day;

James D. Parker, Gatekeeper, $3.00/day;

Warren C. Weaver, Laborer, $3.00/day

Hibbert Ott, Asst. Weigher, $4.00/day

Selectors (women who checked blanks and coins for correct weight), $2.50/day

Most male employees $3.00 to $4.00/day, except Laborers, $2.50/day

 

Clinton D. Hoyt, Assayer, $6.00/day

George T. Morgan, Asst. Engraver, $10.00/day

Charles E. Barber, Engraver, $4,000 per year

John C. Beatty, Die-sinker, $4.50/day

John H. Landis, Superintendent, $4,500 per year

[Dcoin]

Maybe that's why there are so few circ pieces available. It was a trophy coin even back then, not really meant for everyday transactions.

[stinkycheese1]

Maybe that's why there are so few circ pieces available. It was a trophy coin even back then, not really meant for everyday transactions.

 

Good observation.

 

[Revenant]

The purchasing power of the currency has fallen about 95% to 99% in the last century. Carrying around a Morgan 100 years ago was kinda like having a $100 bill in your pocket today. I'll let you make the logical corollary with the $20 gold..

[astrostu]

Maybe that's why there are so few circ pieces available. It was a trophy coin even back then, not really meant for everyday transactions.

 

Good observation.

 

 

And hence why they were mainly used in large bank transactions, including those overseas.

[michael]

a weeks salary for a skilled laborer

 

and that is 10 hours a day for 5-6 days

[just-john]

$0.88 in the year 1908 has the same "purchase power" as $20 in the year 2006.So

$4.50 would be like $36,000 per year with - 1% for taxes not to bad

[just-john]

Six Ways to Compute the Relative Value of a U.S. Dollar Amount, 1790 - 2005

Send us feedback

 

The authors would like to find out why you are using this calculator and your impression of it. The link above will take you to a form where you can tell us the context of your question, what answer you are going to use and for what purpose. We thank you for your feedback.

Another Computation?

 

In 2005, $1,170.00 from 1908 is worth:

$112,148.78 using the unskilled wage

 

If you need help determining which result is most appropriate for you, see Measures of Worth.

 

For construction of the Indicators, go to CPI | GDP | Consumer Bundle | Unskilled Wage series.

[drwstr123]

In 1908, you could go into a store, and with a $20.00 goldpiece buy a new Colt Revolver. Today, you still can! Mike

[jtryka]

Remember that Henry Ford came out with that radical idea of $5/day wage, so a double eagle was 4 days wages at the Ford plant, what can you make today for 4 days wages at the Ford plant?

[MAULEMALL]

Remember that Henry Ford came out with that radical idea of $5/day wage, so a double eagle was 4 days wages at the Ford plant, what can you make today for 4 days wages at the Ford plant?

If you are thinking of the one in Norfolk Va...Nothing...They just shut down.

[astrostu]

In 2005, $1,170.00 from 1908 is worth:

$112,148.78 using the unskilled wage

 

So that's a factor of ~100, so $20 would've had the purchasing power of $2000 ... only a factor of 2 different from my guesstimate .

[just carl]

So easy to look up statistics and say that is what things were like back then. However, unless you were really there, those statistics are usually like the ones we hear about today. Now I wasn't there in 1908 or even close but my parents were. I was around in the 30's though. I still remember my parents sending me to a neighboring store. Bread was only .02 a loaf and I don't know why I remember that except that is what I always seamed to be buying. We had milk delivered, ice blocks for the ice box also delivered, no refrigerator back then you know. Postage was .01 for a letter and we used a lot of that sending in box tops from cereal for secret items such as decoder rings. I remember a box of cereal was .20 and that was for the expensive stuff because of the box top offers.

As to coins I started collecting when my Dad came home with this shinny penny that looked like Silver and gave it to me. He began finding more and more of them and since they just came out they were everywhere. 1943 Steel Cents. I still have 30 rolls of them. One thing I still remember clearly was the coin shop a few blocks away. I used to buy coins there and can not figure out where I got the money from since I was in grade shool by then. The one thing my parents yelled at me for was when I bought 10 Mercury Dimes from that store for $1.50 each. They were 1916D's and back then not worth much you know.

[TJ'S Coins]

$20 Gold Double Eagles were often used as reserves for banks and in foreign exchange which accounts for many of them not seeing much circulation other than the handling of them in bags, counting machines and rolls.

 

It is hard to directly equate the purchasing price from one year to another as many commodities have come down in price over the years. Long distance telephone calling, televisions, computers and other electronic equipment are some examples. Features have increased and cost has decreased relative to income for many of these commodities.

[Mirrored Morgan]

Here's what some of the employees of the Philadelphia Mint earned in 1910:

 

Elizabeth M. Laws, sewing woman, $1.75/day;

Stella Barclay, Forewoman of seamstresses, $3.00/day;

James D. Parker, Gatekeeper, $3.00/day;

Warren C. Weaver, Laborer, $3.00/day

Hibbert Ott, Asst. Weigher, $4.00/day

Selectors (women who checked blanks and coins for correct weight), $2.50/day

Most male employees $3.00 to $4.00/day, except Laborers, $2.50/day

 

Clinton D. Hoyt, Assayer, $6.00/day

George T. Morgan, Asst. Engraver, $10.00/day

Charles E. Barber, Engraver, $4,000 per year

John C. Beatty, Die-sinker, $4.50/day

John H. Landis, Superintendent, $4,500 per year

 

Nice research RWB, very interesting statistics.

[stinkycheese1]

So easy to look up statistics and say that is what things were like back then. However, unless you were really there, those statistics are usually like the ones we hear about today. Now I wasn't there in 1908 or even close but my parents were. I was around in the 30's though. I still remember my parents sending me to a neighboring store. Bread was only .02 a loaf and I don't know why I remember that except that is what I always seamed to be buying. We had milk delivered, ice blocks for the ice box also delivered, no refrigerator back then you know. Postage was .01 for a letter and we used a lot of that sending in box tops from cereal for secret items such as decoder rings. I remember a box of cereal was .20 and that was for the expensive stuff because of the box top offers.

As to coins I started collecting when my Dad came home with this shinny penny that looked like Silver and gave it to me. He began finding more and more of them and since they just came out they were everywhere. 1943 Steel Cents. I still have 30 rolls of them. One thing I still remember clearly was the coin shop a few blocks away. I used to buy coins there and can not figure out where I got the money from since I was in grade shool by then. The one thing my parents yelled at me for was when I bought 10 Mercury Dimes from that store for $1.50 each. They were 1916D's and back then not worth much you know.

 

Justcarl, that is a very interesting and fasinating story. I'm very intrigued by it!

Please write more.

[stinkycheese1]

I'm very happy people like this thread. Conder101 told me he found this thread interesting, I think munkeyman did too. I myself, find it very interesting.

 

 

Never would've knew 20 dollars coins were only used in bank transactions.

 

Justcarl, was 1916 mercury dimes a key date? Also, back in the 1930's, were there alot more 1908 and 1800's coins in better condition? What can you remember about the coins in the coin store you went to?

[MunkyMan95]

I'm very happy people like this thread. Conder101 told me he found this thread interesting, I think munkeyman did too. I myself, find it very interesting.

 

 

Never would've knew 20 dollars coins were only used in bank transactions.

 

Justcarl, was 1916 mercury dimes a key date? Also, back in the 1930's, were there alot more 1908 and 1800's coins in better condition? What can you remember about the coins in the coin store you went to?

 

16-D Mercury dimes are key dates, yes.

 

And I do find this thread very interesting

[cladking]

Life is so much different today than it was in 1908 that comparing values is about akin to comparing apples and oranges. Many things we take for granted were simply unavailable and some of the things thought important then are no longer used or too costly for the average person. There's very little which hasn't been stood on its head.

 

$20 was a lot of money but you couldn't buy even a couple minutes on the net and we have little interest in the current cost of buggy whips.

[Conder101]

While you can't make a direct comparison of prices of 1908 and today because like has been said we don't buy the same things and advances in technology has resulted in the prices of many staples being lower than they would have been from inflation over the years. But a relative comparison of value or purchasing power should be possible through average annual wages of unskilled or semi-skilled workers. I would imagine that the typical unskilled or semi-skill laborer in 1908 worked all year, paid his bills, and his income covered his needs without a whole lot left over. This is also fairly true today as well. I think if you do that you will come up with a factor of about 33 times or the double eagle would have in a comparitable purchasing power of between what 600 and 700 dollars has today.

[cladking]

While you can't make a direct comparison of prices of 1908 and today because like has been said we don't buy the same things and advances in technology has resulted in the prices of many staples being lower than they would have been from inflation over the years. But a relative comparison of value or purchasing power should be possible through average annual wages of unskilled or semi-skilled workers. I would imagine that the typical unskilled or semi-skill laborer in 1908 worked all year, paid his bills, and his income covered his needs without a whole lot left over. This is also fairly true today as well. I think if you do that you will come up with a factor of about 33 times or the double eagle would have in a comparitable purchasing power of between what 600 and 700 dollars has today.

 

 

It might have always been true that the average Joe didn't have a lot left over from his pay.

 

But today Joe incurs a lot of expenses that would have left people early in the last century aghast. I'm thinking of the voluntary expenses of credit and interest costs. Not only were people generally unwilling to take on such costs but interest rates were rarely more than a couple percent and the government protected people fropm themselves with usury laws that capped even the riskiest loans at six or seven percent.

 

Some things are up very dramatically since 1908 and these involve almost all services. But there are others which are actually down dramatically. A cross country phone call would have been tedious and required yelling very clearly but would cost a couple dollars a minute while today companies can reach all across the world to bother people in their homes for no cost at all so long as it lasts less than 45 sec. A good quality compass would cost a couple dollars in 1908 but the same quality today is virtually disposable and might cost less. An alarm clock was around $3 but a clock radio is little more. Sirloin steak should have been around 20c and until recently was only a couple dollars (now $2.69). Bread was a nickel and was probably better quality. It certainly wasn't loaded with chemicals.

 

I can't believe that we've experienced the loss of buying power that many have suggested. Yes wages are up many fold but most people are living much better and incurring unnecessary expenses additionally. I would maintain that however much wages are up they need to be divided by increased standards of living.

 

But then how are decreases in food quality or changes in medical care included?

 

I think the "real" number might be closer to 10x or a 90% reduction in dollar value.

 

At the risk of turning this into a political discussion, I think the primary cause of this inflation came just a few years later and was the income tax.

[PerryHall]

People in 1908 didn't have to pay income tax, social security, medicare tax, sales tax, etc.

[jtryka]

I agree that the income tax was one of the major problems that lead to where we are today, however the bigger problem was the creation of the Federal Reserve in that same year. Even current Fed Chairman Ben Bernanke admitted that the Fed rather than the gold standard was the chief reason for the Depression and especially the length and depth of the Depression. The Fed created way too much money and credit in the 1920s leading to the stock market excesses and the crash and then responded by tightening during the Depression making it worse than it would have been! And they've never learned that lesson, as even in the last two decades they created way too much money and credit leading to the stock market rise in the 1980s and then tightening to precipitate the crash in 1987, then only to inflate again in the 1990s to create the tech stock bubble, then tightening to crash that market, then reinflating again to create the housing bubble, then tightening again to create the current housing slump. That is the price we pay for having humans, and particularly politicians intimately involved in our currency.

[Zoins]

Here's what some of the employees of the Philadelphia Mint earned in 1910:

 

Elizabeth M. Laws, sewing woman, $1.75/day;

Stella Barclay, Forewoman of seamstresses, $3.00/day;

James D. Parker, Gatekeeper, $3.00/day;

Warren C. Weaver, Laborer, $3.00/day

Hibbert Ott, Asst. Weigher, $4.00/day

Selectors (women who checked blanks and coins for correct weight), $2.50/day

Most male employees $3.00 to $4.00/day, except Laborers, $2.50/day

 

Clinton D. Hoyt, Assayer, $6.00/day

George T. Morgan, Asst. Engraver, $10.00/day

Charles E. Barber, Engraver, $4,000 per year

John C. Beatty, Die-sinker, $4.50/day

John H. Landis, Superintendent, $4,500 per year

Great info RWB.

 

If we take $4/day as a generic male employee wage for comparison, that means a $20 coin would cost a work week's wages (pre-tax). For comparison today, if we take $35,000 salary, that means the person is making $135 pre-tax per day or $673 for a 5 day work week which can get you a 1oz AGE. While there were no taxes back then, I still think the comparison is interesting.