Since its inception in 1792, the US Mint has produced several coins that are no longer in circulation. With the exception of gold coins nearly all were small denominations that fell out of favor for practical reasons. And all were made primarily for domestic use—except one, the Trade Dollar.
Why a Trade Dollar?
In the years following the Civil War US trade with Asia blossomed. But Asian merchants, especially in China, were skeptical of foreign money, preferring gold or silver bullion coins that were easy to value. Although by law US silver dollars were 90% silver at that time, they were half a gram lighter in weight than Mexican silver pesos which became the dominant currency in Asian trade.
To counter the trend, which required most US businesses to convert their money to pesos for Asian markets, the government decided to produce a US dollar coin to compete.
The Trade Dollar is Born
In 1866 Emperor Maximillian of Mexico decreed that the country’s coins should carry his portrait. While the silver content stayed the same, Chinese merchants became skeptical of the coins causing their popularity to fall.
US Treasury and Mint officials saw that as an opportunity to create a new US silver coin specifically for foreign commerce. It would conform to the standards of the Mexican peso in the hope it would replace it as the favored coin of commerce in China. To avoid confusion, it would not be released for circulation in the US.
After considerable debate in Congress and several design changes, the United States Trade Dollar was approved and went into production at Philadelphia in July of 1873. It carried a Charles Barber design of Liberty seated facing left (supposedly in the direction of the Orient) in front of a shock of wheat and extending an olive branch in her right hand. An American eagle was depicted on the reverse along with the coin’s weight and purity. “Trade Dollar” was inscribed along the bottom of the field.
396,635 coins were struck for commercial use at Philadelphia that year along with 865 proofs. The Carson City Mint struck 124,500 coins in the first year and 703,000 were minted in San Francisco. As was customary, Philadelphia coins had no mint mark while “S” and “CC” marks appeared between the purity statement and “Trade Dollar” inscriptions on the coins’ reverse.
East Meets West—And Back Again
Most of the Trade Dollars were exported to China that year. The Chinese Emperor promptly had them assayed and with the US consul issued a proclamation of its quality so that merchants would “not look upon it with suspicion.” It included a warning to “rogues, sharpers, and the like” that counterfeiters would be arrested and punished.
The coins circulated well in southern China but were not as popular in the north. Inevitably Trade Dollars found their way back into the US, especially in California, and since they were deemed legal tender by Congress, fluctuations in silver prices caused confusion as businesses debated whether to accept them and some companies paid their workers with them because of a favorable exchange rate. An estimated seven million trade dollars were in US circulation at one point. That led to the coin’s demonetization in 1876 but production continued for foreign trade.
Due to a drop in silver price that caused the coins to have less than a dollar’s worth of silver while still having a dollar’s face value, many of the coins were wholesaled and ended up in the hands of speculators.
The End of the Trade Dollar
Production of Trade Dollars for commercial use ended in 1878, but limited numbers of proof coins continued to be made until 1883 when 979 coins were struck at Philadelphia. Nearly 35 million Trade Dollars were struck at the three mints over the course of its brief five-year life.
Rarity and Value
Since many of the coins ended up in private hands, examples in circulated condition are not hard to find. Most circulated coins from large mintages at Philadelphia and San Francisco can be bought for around $150. Fewer coins were minted in Carson City, and many of them were melted before being released, so circulated CC coins sell for $400-500. Uncirculated and proof coins sell in the thousands, and some Carson City coins can top $100,000 in mint condition.
1884 and 1885 Philadelphia proofs are the rarest—only 10 and 5 coins were made, respectively. They have sold for over $1 million.
Collecting Trade Dollars
Serious collectors won’t have much difficulty assembling date and mint sets, but top-quality rare coins require considerable investment. Because of this, Trade Dollars are frequently counterfeited or altered to increase their value. As with any high-value collectibles, always have the coin authenticated by a reputable coin dealer or third-party grading service before buying.
